Document:

AGREEMENT OF PURCHASE AND SALE

 Exhibit 10.7 
  
 AGREEMENT OF PURCHASE AND SALE 
  
 THE STANDARD LIFE ASSURANCE COMPANY OF CANADA (the “Purchaser”) hereby offers to purchase the Property and the Movables
from STOCKERYALE CANADA INC. (the “Vendor”) at the Purchase Price and upon and subject to the terms and conditions hereinafter set forth. 
  

	1.	DEFINITIONS 

  
 In this Agreement, including the Schedules attached hereto, the words, phrases and expressions defined in this section 1 shall have the meanings hereinafter set forth: 
  

	 	(a)	“Acceptance Time” means 5:00 p.m. (Montréal time) on the 24th day of November, 2005; 

  

	 	(b)	“Additional Deposit” intentionally deleted; 

  

	 	(c)	“Agent(s)” means Avison Young Quebec Inc with reference to a Leasing Fee only; 

  

	 	(d)	“Agreement” means this agreement of purchase and sale and the use of the words “hereto”, “hereof, “herein”, “hereunder” or other
similar expressions as used with reference to this Agreement mean or refer to this Agreement and all schedules attached to it; 

  

	 	(e)	“Assignment of Contracts and Warranties” means the assignment agreement in respect of the Contracts and Warranties in the form attached hereto as Schedule
“G” to be executed by the Vendor and Purchaser upon Closing; 

  

	 	(f)	“Assignment of Leases” intentionally deleted 

  

	 	(g)	“Authority” means any government authority, body, agency or department, whether federal, provincial or municipal (and including any board of fire underwriters),
having jurisdiction over the Property; 

  

	 	(h)	“Building” means the building(s) and all other structures, fixtures, equipment and ancillary improvements located on the Immovable but specifically excluding all
fixtures, movables, improvements and equipment which are and remain the property of the Tenants under their respective Leases; 

  

	 	(i)	“Business Day” means any day other than a Saturday, Sunday, statutory, civic or bank holiday either in the City of Montreal; 

  

	 	(j)	“Closing” or “Closing Date” means the first Business Day that is thirty (30) days following the expiry of the Inspection Period, or such other
date and time as the parties may mutually agree upon; 

  

	 	(k)	“Contamination” shall mean the presence of Hazardous Substances at or under the Property that may require remedy or reporting under any applicable law including,
without limitation, Environmental Laws; 

  

	 	(l)	“Contracts” means the agreements, contracts and other commitments (other than the Leases) relating to the use, operation, servicing, maintenance, repair, or
cleaning of the Property or the furnishing of supplies or services thereto from time to time; 

  

	 	(m)	“Deposit” means the Initial Deposit - together with all interest earned thereon; 

  

	 	(n)	“Documents for Inspection” has the meaning ascribed to it in section 5(b) hereof; 

  

	 	(o)	“Environmental Laws” means the Civil Code of Québec and all statutes, by-laws, regulations, rules, orders, permits and requirements concerning discharge to
the air, soil, surface water or groundwater and concerning the refining, generating, handling, storing, treating, transferring, releasing, producing, processing, transporting or disposing of any waste or any Hazardous Substances;

  

	 	(p)	“Estoppel Certificate” intentionally deleted; 

	 	(q)	“Hazardous Substances” shall mean, but is not limited to, any soil, liquid, gas, odour, heat, sound, vibration, radiation or other substance or emission which is a
contaminant, pollutant, dangerous substance, liquid waste, industrial waste, toxic substance, hazardous waste or hazardous substance; 

  

	 	(r)	“Immovable” means all and singular the land and premises municipally known as 275 Kesmark Street Montreal (Dollard-des-Ormeaux), Quebec being more particularly
described in Schedule “A” attached hereto together with any servitudes, easements, rights-of-way or privileges appurtenant or belonging thereto; 

  

	 	(s)	“Inducements” means any lease take-over costs, landlord’s work, allowances, unpaid leasing commissions (excluding commissions related to future renewal or
expansion rights under a Lease unless such renewal or expansion rights have are exercised by a Tenant on or before Closing), obligations for tenants’ improvements, and other inducements payable in respect of a Lease; 

 

	 	(t)	“Initial Deposit” means the deposit to be made by the Purchaser pursuant to section 2(a)(i) hereof; 

  

	 	(u)	“Inspection Period” means the thirty (30) Business Day period commencing on the day following receipt by the Purchaser of all of the Project Documents and the
Documents for Inspection; 

  

	 	(v)	“Lease” means the lease executed between StockerYale Canada Inc and The Standard Life Assurance Company of Canada as required as part of this Sale Leaseback
transaction and attached to this Agreement as Schedule “C”. 

  

	 	(w)	“Movables” means the movables and equipment owned by the Vendor located on, incorporated or situated in, on, around or upon the Building or upon the Immovable being
purchased in accordance with this Agreement, and includes, without limitation, all equipment, devices, or any other movables owned by the Vendor and located on the Immovable or in the Building and used exclusively in the operation and maintenance of
the Property, excluding any movables and equipment owned by persons other than the Vendor, including the Tenants under their respective Leases; 

  

	 	(x)	“Permitted Encumbrances” means: 

  

	 	(i)	usual public utility or service servitudes or easements for the supply of public utilities or services to the Immovable or adjacent property, provided such servitudes or easements
have been complied with and do not, in the opinion of the Purchaser, materially adversely affect the use or value of the Property; 

  

	 	(ii)	restrictions and covenants that run with the land provided the same have been complied with, but excluding any servitude which restricts the use which the Purchaser or a Tenant may
make in respect of the Property; 

  

	 	(iii)	the Lease; 

  

	 	(iv)	the Contracts; and 

  

	 	(v)	those title matters set forth in Schedule “B” attached hereto; 

  

	 	(y)	“Project Documents” means, to the extent they are in the actual possession or control of the Vendor, 

  
 (i) a plan of survey or Certificate of Location for the Property prepared by
a qualified surveyor which was prepared within the last two (2) years and which shows the building(s) and other improvements on the Immovable in their current configuration; 
  
 (ii) all “as built” plans, specifications, and drawings for the Property, including all architectural, structural,
electrical and mechanical drawings, plans and specifications, and test results or reports from engineers, architects and others related to the Property; 
  
 (iii) copies of all of the leases; if any 
  

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 (iv) intentionally deleted 
  
 (v) copies of all material agreements with, and permits and licences from, federal, provincial or municipal governments or
owners of adjoining immovables relating to the development or operation of the Property and the construction of the Building other than those registered on title to the Immovable; 
  
 (vi) a list of and copies of all Contracts and Warranties; 
  
 (vii) copies of all environmental and building condition reports, audits, permits, orders and directives with respect to the
Property; 
  
 (viii) a list of any Movables included in the
Purchase Price located on the Property and leased or owned by the Vendor (or the manager of the Property) together with details of such ownership or lease; 
  
 (ix) a list of and copies of outstanding work orders, notices, directives and letters of non-compliance issued by any governmental or other authority
affecting the Property, and copies thereof; 
  
 (x) copies of all
fire and health inspection reports related to the Property; 
  
 (xi) intentionally deleted 
  
 (xii) - detailed
annual operating statements for the Property for the most recent three (3) fiscal years and audited financial statements for the Property for the most recent three (3) fiscal years; 
  
 (xiii) intentionally deleted 
  
 (xiv) a detailed schedule showing all income other than rental income with
respect to the Property; 
  
 (xv) intentionally deleted

  
 (xvi) a list of all outstanding monetary and material
non-monetary defaults under - the Contracts that are known to the Vendor; 
  
 (xvii) a list of all outstanding amounts payable by the Vendor with respect to any of the Leases, including unpaid real estate or leasing commissions (whether payable now or potentially payable in the future upon
renewal or expansion), tenant inducements, tenant allowances, rent-free periods, rent abatement periods, lease take-over obligations and landlord performance of tenant improvement work; 
  
 (xviii) the budget for the Property for the current year and the next year, if available; 
  
 (xix) copies of any current property tax assessment notices and tax bills
relating to the Property and details of any outstanding tax appeals and reassessments; 
  
 (xx) a detailed schedule showing all deferred expenses, current and past amortizing capital projects; 
  
 (xxi) any agreements with the Vendor’s suppliers; and 
  
 (xxii) intentionally deleted 
  

	 	(z)	“Property” means collectively the Immovable and the Building; 

  

	 	(aa)	“Purchase Price” has the meaning ascribed thereto in section 2(a) hereof; 

  

	 	(bb)	“Purchaser’s Solicitor” means the law firm of Fraser Milner Casgrain; 

  

	 	(cc)	“Requisition Date” means the date which is ten (10) days prior to Closing; 

  

	 	(dd)	“Tenants” means the tenants of the Property under the Leases and “Tenant” means any one of the Tenants; 

  

	 	(ee)	“Tenancy Schedule” intentionally deleted 

  

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	 	(ff)	“Warranties” means the existing warranties and guarantees, if any, remaining in existence, for the initial construction or subsequent additions to or upgrading of
the Immovable or the Building. 

  

	2.	PURCHASE PRICE 

  

	 	(a)	The purchase price for the Property shall be the sum of FOUR MILLION, ONE HUNDRED AND FIFTY THOUSAND CANADIAN DOLLARS ($4,150,000 Canadian) (the “Purchase Price”).
The Purchase Price shall be payable as follows: 

  

	 	(i)	upon the Vendor’s acceptance of this offer, the sum of ONE HUNDRED THOUSAND CANADIAN DOLLARS ($100,000 Canadian) payable by certified cheque or bank draft to the
Purchaser’s Solicitor, in trust, as a deposit (the “Initial Deposit”); and 

  

	 	(ii)	the balance of the Purchase Price to be paid by certified cheque or bank draft (if permitted by the Canadian Payments Association) drawn on one of the five largest Canadian
chartered banks on the Closing Date, subject to adjustments as expressly provided herein. 

  

	 	(b)	The Deposit shall be placed in an interest bearing trust account until completion or other termination of this Agreement and the Deposit shall be held pending completion or other
termination of this Agreement and will be credited toward the Purchase Price on Closing or otherwise disposed of as provided herein. If the transaction contemplated by the Agreement is not completed for any reason other than the breach or default of
the Purchaser, the Deposit will immediately be refunded to the Purchaser. 

  

	3.	REPRESENTATIONS AND WARRANTIES 

  
 (a) Representations and Warranties of the Vendor 
  
 The Vendor represents and warrants to the Purchaser that, as of the date of this Agreement and as of the Closing Date: 
  

	 	(i)	Status and Authority The Vendor is a corporation duly existing under the laws of its incorporating jurisdiction and has the necessary corporate authority, power and capacity
to own the Property and to enter into this Agreement and to carry out the transaction contemplated by this Agreement in the manner contemplated by this Agreement. 

  

	 	(ii)	Authorization The agreement of purchase and sale constituted on the execution and delivery of this Agreement and the obligations of the Vendor hereunder and the documents and
the transaction contemplated herein have been duly and validly authorized by all requisite corporate proceedings and constitute legal, valid and binding obligations of the Vendor. 

  

	 	(iii)	No Default under Other Agreements Neither the execution of this Agreement nor its performance by the Vendor will result in a breach of any term or provision or constitute a
default under the co stating documents or by-laws of the Vendor or any indenture, mortgage, hypothec, deed of trust or any other agreement to which the Vendor is a party or by which it is bound which has not been delivered to the Purchaser.

  

	 	(iv)	No Litigation The Vendor has not received any written notice of any actions, suits or proceedings pending or threatened against or affecting the Vendor in relation to the
Property or the occupancy or use of the Property by the Vendor or by the Tenants which could affect the validity of this Agreement or any transaction provided for in this Agreement or the right of the Purchaser from and after the Closing Date to
own, occupy and obtain the revenue from the Property. 

  

	 	(v)	No Employees after Closing There are no employees employed in connection with the Property in respect of which the Purchaser will incur any liabilities whatsoever as a result
of the completion of the transaction contemplated by this Agreement. 

  

	 	(vi)	No Trademarks There are no registered or unregistered logos, trademarks or trade names used in connection with the Property that are owned by the Vendor or of which the
Vendor is a registered user. 

  

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	 	(vii)	Compliance with Laws The Vendor has not received any work order, deficiency notice, notice of violation or other notice of non-compliance or notice requiring compliance
regarding the Property or any part of the improvements thereon with any federal, provincial or municipal laws, by-laws, regulations, ordinances, codes and/or restrictions. 

  

	 	(viii)	No Consents to Transfer There are no consents necessary for the transfer, assignment and conveyance of the Property or the Movables to the Purchaser.

  

	 	(ix)	Movables The Movables constitute all of the equipment, furnishings and fixtures used by the Vendor in connection with the Property and are free and clear of all liens and
encumbrances. 

  

	 	(x)	Title to the Property The Property is legally owned by the Vendor with good and marketable freehold title. Such title is now, or will on Closing be, free and clear of all
mortgages, hypothecs, liens, charges, encumbrances, restrictions, security interests, conditional sale agreements, leases and any other claims and interests whatsoever except for the Permitted Encumbrances. 

  

	 	(xi)	No Expropriation The Vendor has not received any notice of any proceeding with respect to or in connection with the expropriation or rezoning of the Property or any part
thereof. 

  

	 	(xii)	No Options There are no options to purchase or rights of first refusal to purchase with respect to the Property or any part thereof that have not expired or been waived.

  

	 	(xiii)	Disclosure of Environmental Reports Except as set out in the Project Documents, there are no environmental investigations, assessments or audit reports relating to the
Property (including any Phase I, II or III environmental assessment reports) undertaken by the Vendor or any other reports of which the Vendor has knowledge which are in the possession or control of the Vendor. 

  

	 	(xiv)	Compliance with Environmental Laws 

  

	 	(A)	To the best of its knowledge and belief, the Property and all activities and conditions at the Property are in compliance with Environmental Laws. 

  

	 	(B)	The Vendor has not been notified by any Authority as to any contravention or possible contravention of Environmental Laws with respect to the Property or any adjoining property nor
has the Vendor received any notice from any Authority requiring the Vendor to take any action in respect of a Hazardous Substance with respect to the Property. 

  

	 	(C)	The Vendor has not and will not up to the date of Closing engage in any activity or conduct, or cause or permit any condition, that would not be in compliance with Environmental
Laws. 

  

	 	(D)	To the best of its knowledge and belief, no Contamination is present on the Property and the Vendor has not engaged, and is not aware of any other person who has engaged in, any
activity or conduct that would cause or create any Contamination to the Property or any adjoining property. 

  

	 	(E)	None of the following are present at the Property and the Vendor has not engaged in any activity or conduct to cause any of the following to be present at the Property:

  

	 	(aa)	polychlorinated byphenyls (“PCB’S”) or substances containing PCB’S; 

  

	 	(bb)	asbestos or materials containing asbestos; 

  

	 	(cc)	radon at levels deemed unacceptable by any health, labour or environmental authority of the Province of Quebec or the municipality where the Property is located or the Government of
Canada; 

  

	 	(dd)	urea formaldehyde foam insulation; or 

  

	 	(ee)	underground storage tanks; 

  

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	 	(F)	To the best of its knowledge and belief, the Property is not now and never has been insulated with urea formaldehyde foam insulation and that the Property does not now contain and
never has contained friable asbestos materials. 

  

	 	(G)	The Vendor covenants to promptly advise the Purchaser if any notice of a Hazardous Substance on or under the Property or any claim alleging non-compliance with Environmental Laws is
received after acceptance of the Offer. 

  

	 	(xv)	Residence The Vendor is a resident of Canada within the meaning of Section 116 of the Income Tax Act (Canada). 

  

	 	(xvi) 	Not Bulk Sale The sale of the Property and Movables pursuant to this Agreement does not constitute a sale in bulk for the purposes of any provincial bulk sales legislation.

  

	 	(xvii) 	Permitted Encumbrances in Good Standing To the best of the Vendor’s knowledge and belief, there is no material default nor is there any event that with the passage of
time or the giving of notice would constitute a default existing in the performance or observance of the terms and provisions of the Permitted Encumbrances, each of which has been complied with in all material respects and is in good standing. The
Vendor will use its reasonable efforts to obtain all consents, approvals and assumptions required under the Permitted Encumbrances in connection with the transaction contemplated by this Agreement on or before the Closing Date.

  

	 	(xviii) 	No Unregistered Agreements There are no unregistered agreements in respect of the Property or the Immovable other than the Leases, the Contracts and the other documents and
agreements comprising the Project Documents. 

  

	 	(xix) 	Taxes and Assessments All municipal taxes, charges, rates, development charges, special levies and assessments, school, water and garbage rates and charges that, if unpaid,
would create a lien or charge on the Immovable are paid in full and will, if necessary, be adjusted as of the Closing Date. 

  

	 	(xx) 	Local Improvement Charges As of the Closing Date, there will be no unpaid local improvement charges, development charges or special levies outstanding against the Property.

  

	 	(xxi) 	Construction Liens All amounts for labour and materials relating to the construction or repair of the Building or improvements of the Tenants undertaken by the Vendor have
been fully paid and no one has a right to file a lien under any applicable construction lien legislation in respect of such construction or repair. 

  

	 	(xxii) 	Leases On the Closing Date, the only lease-affecting the Property shall be the Lease-, executed between StockerYale Canada Inc. and The Standard Life Assurance Company of
Canada as required as part of this Sale Leaseback transaction. 

  

	 	(xxiii) 	Particulars of Leases intentionally deleted 

  
 (b) The Purchaser hereby represents and warrants to the Vendor that, as of the date of this Agreement and as of the Closing Date: 
  
 (i) Status and Authority The Purchaser is duly constituted and has
the necessary corporate authority, power and capacity, to own the Property and to enter into this Agreement and to carry out the transaction contemplated by this Agreement in the manner contemplated by this Agreement. 
  
 (ii) Authorization Subject to Section 9(a), the agreement of
purchase and sale constituted on the execution and delivery of this Agreement and the obligations of the Purchaser hereunder and the documents and the transaction contemplated herein have been duly and validly authorized by all requisite proceedings
and constitute legal, valid and binding obligations of the Purchaser. 
  
 (iii) GST Registration The Purchaser shall on Closing be a GST registrant under the Excise Tax Act (Canada) and shall receive title to the Property on Closing on its own account and not as agent for any other person.

  

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 (c) If either party learns of any change in circumstances or that any of the representations or warranties or any of the
factual statements in this Agreement are untrue in any material respect, it will promptly notify the other party in writing of the foregoing. If, after the receipt of such written notice, any party completes the transactions contemplated by this
Agreement, such party shall be deemed to have waived its right in respect of such representation or warranty or other such statement, the breach of which was known to it. 
  
 (d) The representations and warranties contained in this Agreement shall not merge on Closing but shall continue in full force and effect
for the benefit of the party entitled thereto for a period of one (1) year following the Closing Date or three (3) years following the Closing Date if the representation or warranty is in respect of a Lease. The representations and
warranties contained in this Agreement will cease to have effect one (1) year following the Closing Date or three (3) years following the Closing Date in respect of a Lease except to the extent that a claim has been made in writing to the
other party in respect thereof prior to that date. 
  

	4.	VENDOR’S CONSENT TO RELEASE OF INFORMATION 

  
 The Vendor consents to the Purchaser making applications at the Purchaser’s sole expense for all requisite clearances, searches and enquiries to any Authority in
respect of the Property and the Movables and the Vendor shall provide, at the request of the Purchaser, such reasonable written authorizations as may reasonably be required. 
  

	5.	REVIEW OF DOCUMENTS 

  
 (a) By no later than five (5) Business Days following the execution of this Agreement by both parties, the Vendor shall deliver the Project Documents to the Purchaser at the Purchaser’s offices for its
examination, inspection and review. 
  
 (b) By no later than five
(5) Business Days following the execution of this Agreement by both parties, the Vendor shall make available to the Purchaser for inspection (the “Documents for Inspection”) the following: 
  

	 	(i)	all certificates and other documents prepared by quantity surveyors or space planners with respect to the net rentable area of the Building and all leased premises comprised within
the Building, setting forth the method of measurement and calculation; 

  

	 	(ii)	copies of all development permits, building permits, occupancy permits and other operating permits and licenses relating to the Property; 

  

	 	(iii)	current floor plans for the Building, showing the net rentable area of all leased premises comprised within the Property; 

  

	 	(iv)	all plans, specifications, drawings and other documents in connection with any possible future expansion or development of the Property; 

  

	 	(v)	copies of all insurance policies affecting the Property; 

  

	 	(vi)	intentionally deleted 

  

	 	(vii)	a list of any outstanding or threatened litigation, arbitration or mediation affecting the Property to which the Vendor is a party or in respect of which it has received notice.

  
 (c) The Vendor shall make or arrange to be made photocopies of
any Documents for Inspection as the Purchaser may reasonably request at the expense of the Purchaser. 
  
 (d) Contemporaneously with the delivery by the Vendor of the last of the Project Documents and Documents for Inspection pursuant to section 5 hereof, the Vendor shall deliver to the Purchaser a certificate signed by a
senior officer of the Vendor confirming that the Project Documents delivered pursuant to section 5(a) and the Documents for Inspection made available pursuant to section 5(b) comprise all of the Project Documents and the Documents for Inspection, as
the case may be. 
  
 (e) If for any reason the transaction is not completed, the
Purchaser shall forthwith return to the Vendor all of the Project Documents and any other files and information made available to the Purchaser and any and all copies in respect thereof made by or on behalf of the Purchaser. 
  

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	6.	PURCHASER’S INSPECTION PERIOD 

  
 (a) The Purchaser shall be allowed the Inspection Period to obtain or satisfy itself in its sole and absolute discretion, by all such investigations as the Purchaser
deems necessary, as to: 
  

	 	(i)	the condition, state of repair, sufficiency of construction, compliance with applicable statutes, regulations, laws and by-laws of any and all Authorities having jurisdiction in
respect of the Property, and all physical, structural, mechanical, electrical and environmental aspects of the Property and Movables; 

  

	 	(ii)	the zoning and all relevant land use planning legislation, by-laws and regulations and other governmental legislation, by-laws, and regulations with respect to the use and
development of the Property; and 

  

	 	(iii)	the Project Documents and the Documents for Inspection, including the Leases and the financial information relating to the Property. 

  
 (b) During the Inspection Period, the Purchaser shall be entitled to conduct all
investigations and inspections in respect of the Property during normal business hours, upon reasonable prior notice to the Vendor and in accordance with the Vendor’s reasonable requirements. Any such investigations or inspections by the
Purchaser shall be commenced and completed during the Inspection Period. Provided, however, and without limiting the foregoing, during the Inspection Period and thereafter until the Closing Date the Purchaser shall be entitled to enter upon the
Property at its own risk and expense upon obtaining the prior approval of the Vendor, and in the presence of a representative of the Vendor and for such purpose the Vendor at its cost and expense shall make itself and its representative available to
the Purchaser at all reasonable times on reasonable prior notice. 
  
 (c) All
inspections, investigations and tests carried out by the Purchaser or its representatives shall be carried out as expeditiously as possible at the Purchaser’s sole cost, expense and risk and in accordance with the inspection rights and notice
provisions contained in the respective Leases for each of the Tenants. The Purchaser covenants that all such investigations and inspections will be conducted at times and in such manner so as to not materially interfere with the operation of the
Property and the Tenants. The Vendor will be entitled to have a representative present during all such tests and inspections. 
  
 (d) Any damage caused to the Property as a result of the Purchaser’s entry upon the Property, or any part thereof, or any activities carried out by the Purchaser or
its representatives in respect of the Property, or any part thereof, shall be promptly repaired by the Purchaser. The Purchaser shall indemnify and save harmless the Vendor from all actions, costs, liabilities and damages resulting from the
Purchaser’s entry and the activities carried out by the Purchaser or its representatives relating to its inspection of the Property pursuant to this or any other section of this Agreement. 
  
 (e) Intentionally deleted 
  
 (f) The Purchaser shall keep all information obtained in respect of the Property and the Vendor’s business thereon in strict confidence
and shall only make the same available to the Purchaser’s employees, agents, professional advisors and prospective financiers in strict confidence and on a “need-to-know” basis. 
  

	7.	PURCHASER’S OPTIONS DURING THE INSPECTION PERIOD 

  
 (a) During the Inspection Period, the Purchaser shall have the option by notice given in writing to the Vendor to: 
  

	 	(i)	terminate this Agreement (notwithstanding any intermediate acts or negotiations) and the Initial Deposit shall be returned to the Purchaser without deduction; or

  

	 	(ii)	notify the Vendor of its dissatisfaction with or disapproval of any of the matters and/or documents referred to in section 6; or 

  

	 	(iii)	notify the Vendor that it is satisfied with all matters and/or documents referred to in section 6. 

  

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 (b) If the Purchaser fails to deliver any notice referred to in section 7(a), the Purchaser shall be deemed to have
delivered the notice referred to in section 7(a)(i) and the Initial Deposit shall be returned to the Purchaser without deduction. 
  
 (c) If the Purchaser delivers the notice referred to in section 7(a)(ii) which: 
  

	 	(i)	the Vendor is unable or, in its sole and absolute discretion, unwilling to remedy, and which the Purchaser will not waive, then this Agreement shall be terminated and the Initial
Deposit shall be returned to the Purchaser without deduction; or 

  

	 	(ii)	the Vendor is willing to undertake to remedy on or before Closing or such other date mutually agreed upon by the parties, or give a credit to the Purchaser with respect thereto on
the statement of adjustments, then the Purchaser shall, subject to such undertaking, be deemed to have agreed to proceed with the purchase and sale transaction in accordance with the terms of this Agreement, to assume on Closing the Vendor’s
obligations under the Contracts. 

  
 (d) If the Purchaser delivers
the notice referred to in section 7(a)(iii), the Purchaser shall be deemed to have agreed to proceed with the purchase and sale transaction in accordance with the terms of this Agreement, to assume on Closing the Vendor’s obligations under the
Contracts. 
  

	8.	DELIVERIES ON CLOSING 

  
 (a) On or before the Closing Date, the Vendor shall deliver to the Purchaser the following: 
  

	 	(i)	A good and valid transfer of the Property from the Vendor in favour of the Purchaser, in register able form (except for any land transfer/mutation tax affidavits, if applicable);

  

	 	(ii)	The certificate referred to in section 9(f); 

  

	 	(iii)	A Statement of Adjustments, which the Vendor shall deliver to the Purchaser at least five (5) Business Days prior to the Closing Date; 

  

	 	(iv)	The Lease executed by the Vendor; 

  

	 	(v)	The Assignment of Contracts and Warranties executed by the Vendor; 

  

	 	(vi)	All master keys (and duplicate keys, if any), for all locks in the Building which are in the Vendor’s possession or in the possession of its property manager;

  

	 	(vii)	A bill of sale for the Movables, if applicable; 

  

	 	(viii)	Original executed copies (to the extent available) of all the Contracts and the Leases as well as the tenant correspondence files and copies of all other Project Documents;

  

	 	(ix)	An undertaking to readjust all of the items contained in the Statement of Adjustments, if necessary; 

  

	 	(x)	A notice to all Tenants and, where required, to the other parties to the Contracts, advising of the sale of the Property; 

  

	 	(xi)	An assumption agreement in the form and as referred to in section 8(d)(iv) hereof; 

  

	 	(xii)	The statutory declaration of the Vendor contemplated by section 14 hereof; 

  

	 	(xiii)	intentionally deleted 

  

	 	(xiv)	Originals of such documents as the Purchaser may reasonably require such as tenant files, warranties and contracts related to the Property, to the extent they are in the
Vendor’s possession or control; and 

  

	 	(xv)	Such further and other documentation relative to the completion of this transaction as may reasonably be required by the Purchaser and/or the Purchaser’s Solicitor.

  

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 (b) All documents to be executed and delivered by the Vendor to the Purchaser on Closing shall be in form and substance
satisfactory to the respective solicitors for the Purchaser and the Vendor, both acting reasonably. 
  
 (c) On Closing, the Vendor will deliver to the Purchaser the Movables and vacant possession of the Property, subject to the rights of the Tenant- under his respective Lease-. 
  
 (d) On the Closing Date, the Purchaser shall deliver to the Vendor the following: 

 

	 	(i)	A certified cheque or bank draft payable to the Vendor (or as the Vendor may in writing otherwise direct) in the amount of the balance of the Purchase Price in accordance with
section 2(a)(ii); 

  

	 	(ii)	The Lease executed by the Purchaser; 

  

	 	(iii)	The Assignment of Contracts and Warranties executed by the Purchaser; 

  

	 	(iv)	An assumption agreement in form reasonably satisfactory to the Vendor, its solicitors and any other party entitled to or required to approve the form thereof, pursuant to which the
Purchaser assumes the obligations of the Vendor contained in the Contracts, Leases and other agreements or contracts entered into in accordance with section 21 hereof and which contains the indemnities referred to in section 13 hereof;

  

	 	(v)	The certificates referred to in sections 8(e)(iii) and 10(b); 

  

	 	(vi)	An undertaking to re-adjust all of the items contained in the Statement of Adjustments, if necessary; and 

  

	 	(vii)	Such further documentation relative to the completion of this transaction as the Vendor or its solicitors may reasonably require. 

  
 (e) With respect to goods and services tax (“GST”) payable pursuant to the
Excise Tax Act (Canada) and Québec sales tax (“QST”) payable pursuant to the Taxation Act (Québec) [collectively, the “Acts”] the parties covenant and agree that, if on Closing, the Purchaser shall be
a registrant for purposes of the Acts, then: 
  

	 	(i)	the Vendor shall not collect GST or QST from the Purchaser in respect of this transaction and the Purchaser shall file returns and remit such GST and/or QST to the applicable
governmental authority(ies) when and to the extent required by the Acts; 

  

	 	(ii)	the Purchaser shall indemnify the Vendor and hold the Vendor harmless from any liability under the Acts arising because of breach of the obligations of the Purchaser set out in this
section or arising under the Acts, together with all loss, costs and expenses resulting from such breach; and 

  

	 	(iii)	the Purchaser shall provide a certificate and indemnity in the form set out in Schedule “D” on Closing confirming its GST and QST registration number under the Acts;

  
 failing which, the Purchaser shall pay to the Vendor on Closing
the GST and QST payable by the Purchaser with respect to this transaction and the Vendor shall remit such GST and QST to the applicable governmental authority(ies) in accordance with the Acts. The obligations of the Purchaser and the Vendor under
this section 8(e) shall survive the Closing of this transaction and shall not merge. 
  
 (f) All documents to be executed and delivered by the Purchaser to the Vendor on Closing shall be in form and substance satisfactory to the respective solicitors for the Purchaser and the Vendor, both acting reasonably. 
  

	9.	PURCHASER’S CONDITIONS PRECEDENT TO CLOSING 

  
 The obligation of the Purchaser to complete the transaction contemplated by this Agreement on Closing shall be subject to the conditions set forth in this section 9.
These conditions are for the sole benefit of the Purchaser and may be waived in whole or in part by the Purchaser, in its sole discretion, by written notice to the Vendor. 
  

 - 10 - 

 (a) On or before the expiration of the Inspection Period, the applicable senior officers of the Purchaser shall have
approved the transaction contemplated by this Agreement. 
  
 (b) Intentionally
deleted 
  
 (c) On or before the Closing Date, all consents, approvals and
assumptions required under the Permitted Encumbrances or under any other agreement affecting the Property in connection with the transaction contemplated by this Agreement shall have been obtained and delivered to the Purchaser or entered into by
all necessary parties. 
  
 (d) On the Closing Date, the title to the Property
shall be a good and marketable freehold title, free and clear of all hypothecs, mortgages, liens, charges, encumbrances, restrictions, leases and any other claims and interests whatsoever except for the Permitted Encumbrances. 
  
 (e) On the Closing Date, all of the terms, covenants and conditions of this Agreement to be
complied with or performed by the Vendor shall have been complied with or performed at the times contemplated herein. 
  
 (f) On the Closing Date, the representations and warranties of the Vendor set out in section 3(a) hereof shall be true and accurate with the same effect as if made on and
as of the Closing Date and the Vendor shall have delivered to the Purchaser a certificate of the Vendor executed by a senior signing officer of the Vendor dated as of the Closing Date to this effect. 
  
 (g) No adverse change shall have occurred with respect to the Property or the Movables,
including the legal, physical and financial aspects of the Property and/or the Movables since the date of last inspection thereof by the Purchaser. 
  
 (h) No notice has been received and remains outstanding from any Authority advising of any defects in the construction of the Building or relating to non-compliance with
any applicable building restriction, by-laws or other regulations or ordinances, and no work order or active file shall be outstanding from any department of government requiring repairs, alterations, modifications or demolition of the Building or
with respect to fire protection or prevention devices in the Building, except as has been disclosed to and expressly accepted in writing by the Purchaser. 
  
 (i) On or before the Closing Date, the Lease shall be executed between the Vendor and the Purchaser as required as part of this Sale Leaseback transaction. 
  
 (j) Any existing management agreement with respect to the Property between the Vendor and the
manager of the Property shall be terminated by the Vendor on or before the Closing Date at the sole cost and expense of the Vendor and evidence of such termination shall be provided by the Vendor to the Purchaser on the Closing Date. 
  
 (k) If so required, the parties shall have either obtained an Advance Ruling Certificate
under Section 102 of the Competition Act (Canada) or shall have filed all notices and information required under Part IX of the Competition Act (Canada) and have satisfied any outstanding requests for additional information from
the Director of Investigation and Research appointed under the Competition Act (Canada) (the “Director”), and the applicable waiting periods and any extensions thereof shall have expired and the parties shall have received written
notice from the Director to the effect that he is of the view that there are not sufficient grounds to initiate proceedings before the Competition Tribunal. 
  

	10.	VENDOR’S CONDITIONS PRECEDENT TO CLOSING 

  
 The obligation of the Vendor to complete the transaction contemplated by this Agreement on Closing shall be subject to the conditions set forth in this section 10. These
conditions are for the sole benefit of the Vendor and may be waived in whole or in part by the Vendor, in its sole discretion, by written notice to the Purchaser. 
  
 (a) All of the terms, covenants and conditions of this Agreement to be complied with or performed by the Purchaser shall have been complied
with or performed at the times contemplated herein. 
  
 (b) On Closing, the
representations and warranties of the Purchaser set out in Section 3(b) hereof shall be true and accurate with the same effect as if made on and as of the Closing Date and the Purchaser shall have delivered to the Vendor a certificate of the
Purchaser dated as of the Closing Date to this effect. 
  
 (c) If so required, the
parties shall have either obtained an Advance Ruling Certificate under Section 102 of the Competition Act (Canada) or shall have filed all notices and information 

  

 - 11 - 

 
required under Part IX of the Competition Act (Canada) and have satisfied any outstanding requests for additional information from the Director, and
the applicable waiting periods and any extensions thereof shall have expired and shall have received written notice from the Director to the effect that he is of the view that there are not sufficient grounds to initiate proceedings before the
Competition Tribunal. The legal costs and disbursements and the fees associated with compliance with the Competition Act (Canada) shall be borne entirely by the Purchaser. 
  

	11.	NON-SATISFACTION OF CONDITIONS 

  
 If by 5:00 p.m (Montréal time) on the applicable date referred to in Sections 9 and 10, the party having the benefit of the condition has not given notice to the
other party that the condition has been satisfied or waived, such condition shall be deemed not to have been satisfied or waived and this Agreement and the respective obligations of the parties shall be terminated but without prejudice to any right
or remedy which either party may have resulting from a breach of this Agreement. All conditions to be satisfied on Closing shall be deemed to be satisfied or waived if Closing occurs. The waiver of any condition hereunder shall not remove or
diminish the obligations, covenants, representations or warranties of the Vendor and the Purchaser. 
  

	12.	EXAMINATION OF TITLE 

  
 Title to the Property and the Movables included in the Purchase Price shall be examined by the Purchaser at its sole expense and the Purchaser is not to call for the production of any title deeds or abstracts of title
other than those in the Vendor’s possession or under its control. 
  

	13.	INDEMNITY 

  
 (a) The Vendor shall indemnify and save the Purchaser harmless from any and all claims, costs, disputes or other actions arising pursuant to the Leases, Contracts or any other agreements or contracts entered into in
accordance with section 21 of this Agreement in respect of any matter therein which has occurred or relates to a period prior to the Closing Date. 
  
 (b) The Purchaser shall indemnify and save the Vendor harmless from any and all claims, costs, disputes or other actions arising pursuant to the Leases, Contracts or any
other agreements or contracts entered into in accordance with section 21 of this Agreement in respect of any matter therein which occurs or relates to a period from and after the Closing Date. Any security deposits delivered by the Vendor to the
Purchaser on the Closing Date pursuant to section 8(a)(iv) hereof shall be held in trust by the Purchaser for the benefit of the Tenants to whom such security deposits are allocated by the Vendor and the Purchaser shall indemnify the Vendor
therefore, which indemnity shall survive the Closing Date of this transaction. 
  

	14.	INCOME TAX ACT (CANADA) 

  
 The Purchaser shall be credited towards the Purchase Price with the amount, if any, which it shall be necessary for the Purchaser to pay to the Canada Revenue Agency in
order to satisfy the Purchaser’s liability or obligation in respect of tax payable or monies subject to being withheld by the Vendor under the non-residency provisions of the Income Tax Act by reason of the transactions contemplated
hereunder. The Purchaser shall not claim such credit if the Vendor delivers, on Closing, the prescribed certificate or its statutory declaration that it is not then a non-resident of Canada. 
  

	15.	TITLE TO THE IMMOVABLE 

  
 The Purchaser shall be allowed until the Requisition Date to investigate the Vendor’s title to the Property, to satisfy itself that there are no outstanding work
orders or deficiency notices affecting the Property, that its present use may be lawfully continued and that the Building may be insured against risk of fire and to submit any valid objections to title. If within that time any valid objection to
title, work orders, deficiency notices, unlawful use or insurability is made in writing to the Vendor, which the Vendor shall be unwilling or unable to remove and which the Purchaser will not waive, this Agreement shall, notwithstanding any
intermediate acts or negotiations in respect of such objections, be null and void and the Deposit and interest accrued thereon shall be returned to the Purchaser forthwith without deduction. Except for any valid objections so made on or before the
Requisition Date and except for any objection going to the root of title, the Purchaser shall be deemed to have accepted the Vendor’s title to the Property, provided that the Purchaser shall retain the right to make valid objections to title
and shall not be deemed to have accepted the Vendor’ s title to the Property to the extent that any document or instrument is registered against title to the Property after the Purchaser has completed its search of title or to the extent that
any work order or deficiency notice is issued with respect to the Property before the Closing Date. 
  

 - 12 - 

	16.	CLOSING OF THE TRANSACTION 

  
 (a) This transaction shall be completed at the offices of the Vendor’s Solicitor at 10:30 a.m. (local time where the Property is located) on the Closing Date on
which date possession of the Property is to be given to the Purchaser, subject to the Leases and the Contracts, and the Purchaser shall be entitled to receipt of the rents and profits thereafter except as herein otherwise provided. 
  
 (b) In the event that the Closing Date is on a date on which the Registry Office in respect
of which the Property is located is not open for registration of documents, the Closing Date shall be the next day on which such office is open for such purposes. 
  
 (c) Monies payable upon Closing by the Purchaser shall be made payable to the Vendor’s Solicitor, in trust. Such monies together with
the Deposit shall be held in trust for the Vendor by the Vendor’s Solicitor until confirmation of the registration of the deeds of sale in the Index of Immovables at the relevant Registry Office without intervening entries. The said monies will
be invested on a daily interest basis and the interest will accumulate from the Closing Date in favour of the Vendor. If, following the Closing, there is an adverse intervening entry, the Purchase Price shall be withheld until such entry is
discharged and cancelled to the Purchaser’s satisfaction. If such discharge and cancellation has not occurred within thirty (30) days of the Closing Date, the Purchase Price shall be returned to the Purchaser with interest and the Property
shall be retroceded to the Vendor. 
  

	17.	ADJUSTMENTS 

  
 (a) The Vendor and the Purchaser shall adjust the Purchase Price as of the Closing Date in respect of the following items (including GST, where applicable), insofar as such items are applicable to the Property, with
the intent that the Vendor shall be responsible for all expenses and entitled to all revenues derived from the Property for the period prior to the Closing Date and the Purchaser shall be responsible for all expenses and shall be entitled to all
revenues in respect of the Property as of and after the Closing Date: 
  

	 	(i)	all current monthly rents (including minimum, percentage (if any) and additional rent) and other monthly recoveries and operating expense recoveries, if any, payable under the
Leases; 

  

	 	(ii)	security deposits and prepaid rents (and interest earned thereon or due to Tenants, if any) paid to and held by the Vendor pursuant to the Leases; 

  

	 	(iii)	municipal taxes and local improvement rates and charges; 

  

	 	(iv)	utility and fuel accounts; 

  

	 	(v)	any amounts payable under the Contracts; 

  

	 	(vi)	accrued liabilities and accounts payable relating to the ownership, operation and management of the Property; and 

  

	 	(vii)	unless otherwise expressly provided for or set out in this Agreement, all other items reasonably capable of, and usually the subject of, adjustment in connection with the ownership,
operation and management of properties similar to the Property. 

  
 (b) Rental arrears and other recoveries, which have accrued prior to the Closing Date, shall remain the property of the Vendor. In the event that any current rents for the month of Closing have not been paid by a Tenant who has not
previously been in default and such rental arrears do not exceed the current month rental payment, then the Vendor shall be credited with the amount of such current rent to the Closing Date, which amount shall be held by the Vendor’s Solicitor
in an interest bearing account for a period of no more than forty-five (45) days and such amount and interest accrued shall be released to the Vendor if such rental arrears are paid to the Purchaser by the Tenant within such period of time and
if not, such amount and accrued interest shall be paid to the Purchaser and the Purchaser shall assign its rights to the rental arrears to the Vendor. Any payments received from the Tenants of the Property after the Closing Date by the Purchaser
shall be applied first to any rents or other recoveries accruing or owing after the Closing Date, and secondly, as to any excess, to the arrears of rent or other recoveries which have accrued and are outstanding prior to the Closing Date.

  
 (c) If the final cost or amount of any item which is to be adjusted under this
section 17 cannot be determined as of the Date of Closing, then, an initial adjustment for such item made at the Closing shall be estimated by the Vendor acting reasonably and bona fide on the basis of 

  

 - 13 - 

 
the best evidence available to the Vendor at Closing as to what the final cost or amount of such item will be. In each case, when the actual cost or amount
is finally determined, the Vendor or the Purchaser, as the case may be, shall, within thirty (30) days of determination, provide a complete written statement thereof to the other and within thirty (30) days thereafter the parties shall
make a final adjustment as of the Closing Date in respect of the item in question. Provided, in any event, all re-adjustments in respect of the Purchase Price pursuant to this section 17 shall be completed by no later than one year following the
Closing Date. 
  
 (d) All right, title and benefit to any municipal tax appeals
and reassessments and any rebates or reassessment of municipal taxes for the Property shall be transferred and assigned by the Vendor to the Purchaser on Closing. 
  
 (e) For any post-Closing rental receipts, the Vendor shall receive and hold all rental cheques for the Property in respect of the period
after Closing in trust for the Purchaser and shall endorse in favour of the Purchaser and deliver to the Purchaser all such rental cheques forthwith upon receipt. 
  
 (f) Insurance premiums shall not be adjusted as of the Closing Date, but insurance shall remain the responsibility of the Vendor until the
Closing Date, and thereafter the Purchaser shall be responsible for placing its own insurance. 
  
 (g) The Vendor shall not be entitled to any adjustment for any Inducements, if any, pursuant to any Leases entered into prior to the date of execution of this Agreement and the Vendor shall be responsible for the
payment of all such Inducements and completion of any work relating thereto, at the Vendor’s expense. To the extent that any amount payable in respect of any such Inducements remain unpaid as of Closing or in the event that a Tenant under a
Lease is entitled to a rent-free period or a rent abatement period during a period after Closing, an adjustment shall be made in favour of the Purchaser in respect of such amounts in the Statement of Adjustments. The Purchaser shall permit access to
the Building to the Vendor at all reasonable times so as to allow the Vendor to complete any work respect of any Inducements; this covenant shall survive the Closing. All payments and obligations in respect of any such Inducements arising or
incurred pursuant to any Leases entered into after the date of execution of this Agreement and approved or deemed approved by the Purchaser in accordance with section 21 hereof shall be borne by and shall be the responsibility of the Purchaser.

  

	18.	BUILDING RISK 

  
 Until Closing, the Building shall be and remain at the risk of the Vendor and the Vendor shall hold all policies of insurance, if any, in trust for the parties hereto, as their interests may appear. In the event of
damage to the Building before Closing with proceeds of insurance in excess of ONE HUNDRED THOUSAND DOLLARS ($100,000.00), the Purchaser shall have the right to elect to either (a) complete the transaction without regard to such damage
and the insurance proceeds shall be payable to the Purchaser as a credit against the Purchase Price (with adjustment for the deductible, if any) or (b) or cancel this Agreement, whereupon the Purchaser shall be entitled to the return of the
Deposit and this Agreement shall be null and void. If the proceeds of insurance shall be ONE HUNDRED THOUSAND DOLLARS ($100,000.00) or less, the transaction shall be completed without regard to such damage and the insurance proceeds shall be
payable to the Purchaser as a credit against the Purchase Price (with adjustment for the deductible, if any). 
  

	19.	TAXES AND FEES 

  
 The Purchaser shall be responsible for the payment of all provincial sales taxes, all registration fees and all land transfer or mutation taxes, if applicable, payable in connection with the transaction contemplated
herein and the cost of registration of the transfer. Subject to the foregoing, each party shall pay its own legal fees with respect to this transaction. 
  

	20.	TIME OF THE ESSENCE 

  
 Time shall be of the essence of this Agreement. Any tender of documents or money hereunder may be made upon the solicitors acting for the party on whom tender is desired and it shall be made by a negotiable, certified
cheque (where permitted by the Canadian Payments Association) drawn on one of the five largest Canadian chartered banks or by wire transfer. 
  

	21.	OPERATION OF PROPERTY 

  
 The Vendor shall operate and manage the Property to the Closing Date in the normal course, as would a prudent owner of a comparable property located in the municipality
where the Property is located. The Vendor shall not after the execution of this Agreement by both parties, enter into or give commitments either verbally or in writing with respect to any lease, renewal of lease, 

  

 - 14 - 

 
agreement to lease, option to lease, licensing agreement, assignment, sublease or surrender of lease relating to the Property without the prior written
approval of the Purchaser, such approval not to be unreasonably withheld or unduly delayed. The Purchaser shall be deemed to have given such approval if it does not respond to the Vendor’s request therefor within four (4) Business Days.
The Vendor shall advise the Purchaser of any material change in respect of any of the matters relating to the representations and warranties made by the Vendor in this Agreement, as soon as reasonably possible after it becomes aware of it.

  

	22.	ENTIRE AGREEMENT 

  
 It is agreed that there is no representation, warranty, collateral agreement or condition affecting this Agreement, the Property, the Leases, the Contracts, or the Tenants or in respect thereto or supported hereby
other than as expressly provided herein in writing. This Agreement embodies and constitutes the entire understanding between the parties with respect to the transaction contemplated herein, and all prior or contemporaneous agreements,
understandings, representations, warranties and statements, oral or written, whether made by the Vendor, Purchaser or any agent of either party, are merged into this Agreement. Neither this Agreement nor any provision hereof may be waived, modified,
amended, discharged or terminated except by an instrument in writing signed by the party against which the enforcement of such waiver, modifications, amendment, discharge or termination is sought, and then only to the extent set forth in such
instrument. 
  

	23.	ASSIGNMENT OF AGREEMENT 

  
 This Agreement shall endure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. The Purchaser may, by notice
in writing to the Vendor given at least ten (10) days prior to Closing, direct the Vendor to convey title to the Property on Closing to a nominee of the Purchaser. 
  

	24.	NOTICES 

  
 Whenever any notice, approval or consent is required to be given hereunder, it shall be in writing and personally delivered or sent by fax as follows: 
  

					
	If to the Purchaser at:	  	The Standard Life Assurance Company of Canada
	 	  	 2045 Stanley St.
 12th Floor
 Montreal, Quebec

H3A 2V4

	 	  	Attention:	  	Gary Aggett
	 	  	Fax Number:	  	(514) 925-7325
		
	If to the Vendor at:	  	StockerYale Canada Inc.
	 	  	 275 Kesmark Street

	 	  	 Dollard-Des-Ormeaux, Quebec

	 	  	 H9B 3J1

	 	  	Attention:	  	Controller
	 	  	Fax Number:	  	(514) 685-4143

  
 Any such notice sent by fax shall be
deemed to have been received on the first Business Day following the date of transmission (provided confirmation of transmission was received by the sender of the fax). Each of the Purchaser and the Vendor may by notice in writing to the other from
time to time designate any other address or fax number to which the notices to it may be sent. 
  

	25.	BUSINESS DAY 

  
 In the event that any date established by or in accordance with this Agreement or any date of termination of a period of time set forth or referred to in this Agreement shall fall upon a non-Business Day, then such
date shall be deemed to be the next following Business Day. 
  

	26.	APPLICABLE LAW 

  
 This Agreement is to be governed by the laws of the Province where the Property is located and the laws of Canada applicable therein. 
  

 - 15 - 

	27.	EXECUTION IN COUNTERPARTS 

  
 This Agreement may be executed in several counterparts, each of which will be deemed to be an original and all of which, once executed and delivered, will together
constitute one and the same instrument. 
  

	28.	EXTENSION OF CLOSING 

  
 In the event any valid issue is raised with respect to the Vendor’s title or the Agreement, the Purchaser may, at its option extend the Closing Date for a period or periods of time not exceeding thirty
(30) days, in total in an attempt to resolve such issue. If the Vendor is unable to resolve any such issue by the expiry of the extension period or periods and the Purchaser is not prepared to waive the resolution of the issue, the Purchaser
may terminate this Agreement. 
  

	29.	COMMISSION 

  
 The Purchaser represents and warrants that no agent or broker (other than the Agent) has a mandate to act on behalf of the Purchaser in respect of this transaction, that no agent or broker (other than the Agent)
negotiated or was instrumental in negotiating or consummating the Offer, and that no agent or broker (other than the Agent) introduced the Purchaser to the Property. 
  

	30.	ACCEPTANCE BY VENDOR 

  
 This offer must be accepted by the Vendor by the Acceptance Time. Such acceptance must be delivered to the Purchaser on or before the Acceptance Time otherwise this Agreement shall be null and void. This offer may be
accepted by fax at the following number: (514) 925-7325 provided a duly executed original follows by overnight courier. 
  

	31.	English Language 

  
 This Offer has been prepared in the English language by the mutual consent of all parties involved. The deed of transfer and all other documents relating to the transaction contemplated by this Offer shall also be
prepared in the English language. Cette offre a été rédigéé en anglais avec le consentement mutuel de toutes les parties en cause. L’acte de vente et tous les autres documents prévus par ce contrat
devront également étre rédigés en anglais. 
  
 DATED this 22nd day of November 2005. 
  

			
	 THE STANDARD LIFE ASSURANCE COMPANY OF
 CANADA

		
	 Per:
	 	/s/    MICHELINE
FREDETTE        
	 Name:
	 	Micheline Fredette
	 Title:
	 	Senior Legal Counsel
		
	 Per:
	 	/s/    DENNIS WONG        
	 Name:
	 	Dennis Wong, authorized Officer of Standard Life
		
	 	 	 We have authority to bind the corporation

  
 ACCEPTED this
         day of November 2005 
  

			
	 STOCKERYALE CANADA INC.

		
	 Per:
	 	/s/    MARK W. BLODGETT        
	 Name:
	 	Mark W. Blodgett
	 Title:
	 	President
		
	 Per:
	 	 
	 Name:
	 	 
	 Title:
	 	 
		
	 	 	 I/We have authority to bind the corporation.

  

 - 16 -LEASE AGREEMENT

 Exhibit 10.8 
  
 LEASE entered into at the City of Montreal, as of the Twentyth (20th) day of December
two thousand five (2005). 
  

			
	BETWEEN:	  	THE STANDARD LIFE ASSURANCE COMPANY OF CANADA, a body politic and corporate, duly incorporated having its Canadian head office at 1245 Sherbrooke Street West, in the City and District
of Montreal, Province of Quebec, and having a place of business at 2045 Stanley Street, Suite 1200, in the City and District of Montreal, Province of Quebec, herein acting and represented by Dennis Wong, duly authorized for all purposes
hereof,
		
	 	  	(hereinafter called the “Landlord”),
		
	AND:	  	STOCKERYALE CANADA INC. a body politic and corporate, duly incorporated according to law and having its head office at 275 Kesmark Street, in the City of Montreal, Province of Quebec,
H9B 3J1, herein acting and represented by Marianne Molleur, duly authorized for the purposes hereof as she so declares;
		
	 	  	(hereinafter called the “Tenant”),

  
 THE PARTIES HERETO MUTUALLY AGREE AS
FOLLOWS: 
  
 PART 1.    INTENT OF LEASE 
  
 PART 1.1 Intent of Lease 
  
 It is the intent of the parties to this lease (the “Lease”) that, subject to
the terms hereof, it be totally net to the Landlord. The Landlord shall therefore not be liable for any costs or expenses of any nature whatsoever relating to the Land, Building or the Leased Premises (as those terms are hereinafter defined) or
the use and occupancy thereof, or the contents thereof, or the business carried on therein, and the Tenant shall be solely responsible for any such costs, charges, expenses and outlays, as well as for the Operating Expenses and Real Estate Taxes to
the same extent as if the Tenant was the owner of the Leased Premises, except as expressly otherwise provided herein. Any obligation which is not expressly declared herein to be that of the Landlord shall be deemed to be the obligation of the Tenant
who must perform same at its expense. 
  
 PART 2.    LEASE
AND POSSESSION OF THE LEASED PREMISES 
  
 PART 2.1 Lease of Leased
Premises 
  
 The Landlord hereby leases to the Tenant, present and
accepting, the immoveable known and designated as: 
  
 “Lot number ONE
MILLION SEVEN HUNDRED SIXTY THREE THOUSAND SIXTY-EIGHT (1 763068) of the Cadastre of Quebec, registration division of Montreal (the “Land”), with the building erected thereon bearing civic number 275 Kesmark Street, in the City of
Montreal, Province of Quebec, (the “Building”) (the Land and the Building are hereinafter collectively referred to as the “Leased Premises”).” 
  
 The parties hereto accept and agree that the rentable area of the Building for the purposes hereof is approximately fifty-nine thousand and
four hundred and thirty-three square feet 

  

													
	 	 	 	 	 	  	 	 	LANDLORD	 	 	 	TENANT
							
	  	 	 	 	  	  	 	 	/s/ PC	 	 	 	/s/ MM
	 	 	 	 	 	  	1	 	 	 	 	 	 

 
(59,433 sq.ft.) which will be measured in accordance with the rules of measurement known as ANSI / BOMA Z.65.1-1996 at the cost of the Landlord, which
measurements shall be final and shall bind all parties herein, retroactively as of the Commencement Date of the Lease. 
  
 PART 2.2 Possession 
  
 The Tenant being already in possession of the Leased Premises, acknowledges having inspected them and declares same satisfactory. Furthermore, the Tenant acknowledges
that the Landlord has made no promises, declarations nor any undertakings regarding any modifications, changes or additions to the Leased Premises or the installation of any kind of equipment, and that it accepts the Leased Premises on an “as
is” basis. 
  
 PART 3.    TERM OF LEASE

  
 PART 3.1 Commencement Date 
  
 The present Lease shall commence on the first (1st) day of December
2005 (the “Commencement Date”) and shall terminate the thirtieth (30th) day of November 2015,
unless terminated earlier in the manner hereinafter set forth (the “Term”). 
  
 PART 4.    MINIMUM RENT 
  
 PART 4.1
Rental 
  
 During the Term of the Lease, the Tenant shall pay to Landlord
the following minimum rent without any reduction, deduction or compensation of any nature whatsoever (the “Minimum Rent”): 
  
 PART 4.1.1 
  
 During the period commencing on December 1, 2005 and terminating on November 30, 2006, an annual Minimum Rent calculated on a net rate for the
rentable area of the Building of seven dollars per square foot ($7.00 per sq.ft.) per year, payable in advance in monthly instalments of approximately thirty-four thousand six hundred sixty-nine dollars and twenty-five cents ($34,669.25)
each, on the first day of each month of said period; 
  
 PART 4.1.2

  
 During the period commencing on December 1, 2006 and
terminating on November 30, 2007, an annual Minimum Rent calculated on a net rate for the rentable area of the Building of seven dollars and ten cents per square foot ($7.10 per sq.ft.) per year, payable in advance in monthly instalments of
approximately thirty-five thousand one hundred sixty four dollars and fifty-three cents ($35,164.53) each, on the first day of each month of said period; 
  

PART 4.1.3 
  
 During the period commencing on December 1, 2007 and terminating on November 30, 2008, an annual Minimum Rent calculated on a net rate for the
rentable area of the Building of seven dollars and twenty cents per square foot ($7.20 per sq.ft.) per year, payable in advance in monthly instalments of approximately thirty-five thousand six hundred fifty-nine dollars and eighty cents
($35,659.80) each, on the first day of each month of said period; 
  
 PART
4.1.4 
  
 During the period commencing on December 1,
2008 and terminating on November 30, 2009, an annual Minimum Rent calculated on a net rate for the rentable area of the Building of seven dollars and thirty cents per square foot ($7.30 per sq.ft.) per year, payable in advance in monthly
instalments of approximately thirty-six thousand one 

  

													
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hundred fifty-five dollars and eight cents ($36,155.08) each, on the first day of each month of said period; 
  
 PART 4.1.5 
  
 During the period commencing on December 1, 2009 and terminating on November 30, 2010, an annual Minimum Rent
calculated on a net rate for the rentable area of the Building of seven dollars and forty cents per square foot ($7.40 per sq.ft.) per year, payable in advance in monthly instalments of approximately thirty-six thousand six hundred fifty
dollars and thirty-five cents ($36,650.35) each, on the first day of each month of said period; 
  
 PART 4.1.6 
  
 During the
period commencing on December 1, 2010 and terminating on November 30, 2011, an annual Minimum Rent calculated on a net rate for the rentable area of the Building of seven dollars and fifty cents per square foot ($7.50 per sq.ft.) per year,
payable in advance in monthly instalments of approximately thirty-seven thousand one hundred forty-five dollars and sixty-three cents ($37,145.63) each, on the first day of each month of said period; 
  
 PART 4.1.7 
  
 During the period commencing on December 1, 2011 and terminating on November 30, . 2012, an annual Minimum Rent
calculated, on a net rate for the rentable area of the Building of seven dollars and sixty cents per square foot ($7.60 per sq.ft.) per year, payable in advance in monthly instalments of approximately thirty-seven thousand six hundred forty
dollars and ninety cents ($37,640.90) each, on the first day of each month of said period; 
  
 PART 4.1.8 
  
 During the
period commencing on December 1, 2012 and terminating on November 30, 2013, an annual Minimum Rent calculated on a net rate for the rentable area of the Building of seven dollars and seventy cents per square foot ($7.70 per sq.ft.) per
year, payable in advance in monthly instalments of approximately thirty-eight thousand one hundred thirty-six dollars and eighteen cents ($38,136.18) each, on the first day of each month of said period; 
  
 PART 4.1.9 
  
 During the period commencing on December 1, 2013 and terminating on November 30, 2014, an annual Minimum Rent
calculated on a net rate for the rentable area of the Building of seven dollars and eighty cents per square foot ($7.80 per sq.ft.) per year, payable in advance in monthly instalments of approximately thirty-eight thousand six hundred
thirty-one dollars and forty-five cents ($38,631.45) each, on the first day of each month of said period; 
  
 PART 4.1.10 
  
 During the
period commencing on December 1, 2014 and terminating on November 30, 2015, an annual Minimum Rent calculated on a net rate for the rentable area of the Building of seven dollars and ninety cents per square foot ($7.90 per sq.ft.) per
year, payable in advance in monthly instalments of approximately thirty-nine thousand one hundred twenty-six dollars and seventy-three cents ($39,126.73) each, on the first day of each month of said period. 
  
 PART 4.2 Management Fee 
  
 In addition to the Minimum Rent, the Tenant will pay to the Landlord a
management fee equal to two percent (2%) of the Minimum Rent, for each year of the Term, payable in advance in monthly instalments in the same manner as the Tenant pays its the Minimum Rent. 
  

	PART	4.3 Place of payment 

  
 The Minimum Rent and the Management Fee shall be paid by the Tenant to the Landlord at the address indicated in Part 21 of this Lease or at any other
location in Quebec indicated by written notice of the Landlord to the Tenant, or to any agent or representative of the Landlord in the Province of Quebec, as may be designated from time to time by written notice of the Landlord to the Tenant.

  

													
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	PART	4.4 Late Payment 

  
 Unless otherwise stipulated herein, should the Tenant default in the payment, when due, of any amount whatsoever due under this Lease to the Landlord such as Minimum Rent
and Management Fee, the overdue amount shall bear interest at the prime rate of the bank of the Landlord plus two and a half percent (2.5%) per annum, calculated from the due date thereof until full payment is made, without prejudice to
the other rights of the Landlord to this Lease. 
  
 PART 5.
    OPERATING EXPENSES 
  
 PART 5.1 Operating
Expenses 
  
 During the Term of this Lease or its renewal, the Tenant
alone shall assume all of the Operating Expenses with respect to the Leased Premises. 
  
 PART 5.2 Definition 
  
 “Operating Expenses”
means all costs, disbursements and expenses of whatever nature whatsoever, relating to the operation, maintenance, repair, replacement, operating, surveillance, supervision and management of the Leased Premises, and without limiting the generality
of the foregoing, includes the following: 
  
 PART 5.2.1

  
 the costs of all goods and services furnished, employed
or used in the operation, maintenance, repair, surveillance and supervision of the Leased Premises; 
  
 PART 5.2.2 
  
 the costs related to the maintenance of a public order and security service, if applicable; 
  
 PART 5.2.3 
  
 the costs related to the regular fumigation of pesticides and other such
substances, in accordance with the maintenance of good sanitary conditions; 
  
 PART 5.2.4 
  
 the costs
related to the lay-out, maintenance, repair and decoration of the Building including the cleaning of the Leased Premises, snow removal, garbage disposal, the installation, rental and maintenance of garbage compactor containers as well as
landscaping; 
  
 PART 5.2.5 
  
 the cost of all repairs, replacements and maintenance of the Leased Premises
including major repairs and those of a structural nature, as well as the repairs, maintenance and replacement of the Leased Premises’ equipments, apparatus, machineries, roof and roof’s components or other property of the Leased Premises.
Repairs and replacements of a capital nature will be amortized as agreed between the parties in accordance with Part 7.4 hereof and the unamortized portion to be paid back to the Tenant at the end of the Term, if applicable; 
  
 PART 5.2.6 
  
 the cost of any modification and improvement to the Leased Premises
including the machinery and equipment situated therein as well as the cost of all modifications, additions of equipment and specialized services whenever such equipment, modifications, materials or improvements are required by law; 
  

													
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 PART 5.2.7 
  
 the cost of energy to ensure: 
  

	 	•	 	the lighting and the operation of the equipment and systems of the Leased Premises; 

  

	 	•	 	the heating, ventilation and air conditioning of the Leased Premises; 

  

	 	•	 	the supply of hot domestic water; 

  

	 	•	 	condensation water for chilling units for the heating, ventilation, air conditioning and refrigeration machinery and equipment, if need be; 

  
 PART 5.2.8 
  
 the actual cost of all insurance policy premiums with respect to the Leased
Premises to which the Landlord or the Tenant may subscribe in accordance with the provisions of Part 9 hereof or as may be required by the Landlord’s creditors; 
  
 PART 5.2.9 
  
 any goods and services tax (GST and QST) and any other similar tax which may take effect before or during the Term of the Lease or, as the case may be,
during any renewal thereof, imposed by virtue of any federal, provincial, municipal, school or other legislation or regulation and paid by the Landlord or the Tenant with respect to any of the items comprising the Operating Expenses; and 

 
 PART 5.2.10 
  
 that portion of any new tax or levy imposed or levied on the Building and/or
owner thereof and/or the revenues therefrom in substitution for or in addition to all taxes presently levied or imposed upon immoveables; and the Tax on Capital excluding all taxes on income and profit. 
  
 For the purposes hereof “Tax on Capital” means any amount,
taxes on capital, taxes on large corporations or any other tax or excise of similar nature imposed on the Landlord by the Province of Quebec or by the Government of Canada which shall be calculated by multiplying the aggregate book value to the
Landlord of the Building and the Land (and all equipment used in connection therewith) by the applicable Tax on Capital rate imposed from time to time by the taxing authorities having jurisdiction. Aggregate book value shall be calculated before
depreciation and amortization determined as at the end of each fiscal year. If the rate or basis of calculation of Tax on Capital, as currently defined by the governments changes, then the Landlord may adjust the rate or basis of such amount to
reasonably reflect such change. The Tax on Capital shall be established as if the Building were the only building owned by the Landlord in the Province of Quebec, notwithstanding its acquisition of any other buildings, a financing or any corporate
reorganisation of the Landlord. If, following changes in the legislation, the criteria used for imposing the Tax on Capital are modified, the Landlord, acting reasonably, shall be entitled to make the necessary adjustments to the Tax on Capital.

  
 For the purposes hereof, as long as the Landlord is
THE STANDARD LIFE ASSURANCE COMPANY OF CANADA, “Tax on Capital” shall only include the tax on large corporation imposed by the Government of Canada in virtue of Part 1.3 of the Income Tax Act or any other tax or excise
replacing same which tax, at the time of signing this Lease, is being phased out as follows: (i) 0.175% of carrying value of the Leased Premises for 2005; (ii) 0.125% for 2006; (iii) 0.0625% for 2007; and (iv) zero percent for 2008.

  

													
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 PART 5.3 Exclusions 
  
 The following items shall be, however, the responsibility of the Landlord to the complete exoneration of the Tenant: 
  
 PART 5.3.1 
  
 the Landlord’s income tax and personal taxes, the principal of payments of hypothecs charging the Leased Premises,
financing charges, interest, fees and penalties attributable to the Landlord’s tardiness; and 
  
 PART 5.3.2 
  
 damages,
interest, fees, fines and penalties imposed on the Landlord and resulting from its fault, gross negligence or from the non-performance by the Landlord of any obligation which it undertook under the terms of any agreement concluded in respect
of the Leased Premises. 
  
 PART 5.4 Payment of the Operating Expenses

  
 The Tenant shall pay directly to any suppliers the Operating Expenses
for which it is responsible under the terms hereof. The Tenant shall, within ten (10) days of a written request by the Landlord to this effect, provide the Landlord with proof of payment. In the event that the Landlord directly
pays certain Operating Expenses that are overdue after having sent a ten (10) day written notice requesting the payment from the Tenant, the Tenant shall reimburse the Landlord for the amount so paid, in lieu of the Tenant, plus an
amount equal to fifteen percent (15%) of such cost representing the Landlord’s administration fees, within ten (10) days of a request to this effect accompanied by supporting documentation. 
  
 PART 6.    TAXES 
  
 PART 6.1 Real Estate Taxes 
  
 The Tenant shall pay, when due, throughout the Term of the Lease, all property taxes
including municipal taxes, school taxes, taxes on non-residential immoveables, levies for local improvements, snow removal taxes, extraordinary and special assessments and any other levies, contributions, assessments and charges, whether of the same
kind as the preceding or not, which may be levied, charged, imposed or assessed by any governmental authority on the Leased Premises (hereinafter called the “Real Estate Taxes”) directly to the competent authorities, subject to the express
condition that such payment shall be made without subrogation and that the Tenant shall provide the Landlord, within ten (10) days of its due date, with the receipts evidencing such payment. If the Real Estate Taxes remain unpaid
following the expiration of the ten (10) day delay, the Landlord may pay same, upon ten (10) days notice to the Tenant and, in this case, shall have the right, upon presentation of a written request to the Tenant to this effect accompanied
by supporting documentation, to be immediately reimbursed for the amount so paid and to receive an amount equal to fifteen percent (15%) of such cost representing the Landlord’s administration fees and the Tenant shall also hold
the Landlord harmless from all costs, interest or expenses, of any kind whatsoever, which may be related thereto. 
  
 PART 6.2 Other Taxes 
  
 The Tenant shall pay, when due, all taxes, duties, impositions and fees other than the Real Estate Taxes and, in particular, the water tax, business tax, garbage tax and
any tax presently or subsequently imposed on the business, improvements, equipment and facilities in the Leased Premises, as well as any tax, permit duty or any other imposition with respect to the business carried on therein or by reason of the use
or occupation of the Leased Premises. If such taxes, duties, impositions or fees are imposed on the Landlord and paid by the latter, after having sent a ten (10) day written notice requesting payment from the Tenant, then the Landlord shall be
entitled to be reimbursed immediately by the Tenant for such amounts so paid and to receive an amount equal to fifteen percent (15%) of such cost representing the Landlord’s administration fees upon written demand from the Landlord
to this effect accompanied by supporting documentation, and the Tenant must also hold the Landlord harmless from all costs, interest or expenses, of any kind whatsoever, which may be related thereto. 
  

													
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 Furthermore, should the Tenant be capable of obtaining an exemption or other tax relief for any Real Estate Taxes, water
tax, business tax, garbage tax and any tax presently or subsequently imposed on the business, improvements, equipment and facilities in the Leased Premises, the Landlord hereby authorizes and mandates the Tenant to negotiate for such exemption
and/or tax relief with the City of Laval or other appropriate taxing authorities regarding same. 
  
 PART 6.3 Taxes on Goods and Services 
  
 The Tenant agrees and undertakes to pay to the Landlord the goods and services tax (GST and QST) and/or any other similar tax which may be due during the Term of the Lease or, as the case may be, during any renewal thereof, imposed
by virtue of any federal, provincial, municipal, school or other legislation or regulation which the Landlord must collect or could be called upon to collect with respect to any rent paid or payable or any other amounts payable to the Landlord or
for the benefit of the Landlord by virtue of this Lease or any property, services and/or supplies which the Landlord may furnish to the Tenant by virtue of this Lease or otherwise required by any governmental authority. Without limiting the
generality of the foregoing, the Tenant undertakes to pay any goods and services tax (GST and QST) and/or any other similar tax at the prescribed rate(s). 
  
 PART 6.4 Tax Contestation 
  
 The Landlord shall not be required to undertake or to continue any contestation regarding the evaluation of the Leased Premises or the imposition of Real Estate Taxes by
a governmental authority, whether through judicial means or otherwise. In the event that the Landlord decides to undertake such contestation, it may, with the Tenant’s consent, which consent shall not be unreasonably refused or delayed, settle,
compromise, consent, renounce or otherwise decide regarding any contestation of the evaluation of the Leased Premises or any claim, present or future, with respect to any Real Estate Taxes. 
  
 All costs and expenses incurred by the Landlord in attempting to obtain a reduction of any
evaluation of the Leased Premises or of any Real Estate Taxes shall be at Landlord’s cost. If, as a result of such contestation, the Landlord obtains a refund, it shall then, at its option, pay or credit such refund to the Tenant
after having deducted the reasonable contestation costs. 
  
 Subject to the
consent of the Landlord, which consent shall not be withheld without good reason, the Tenant may, at its expense, contest the evaluation of the Leased Premises or the imposition or the payment of the Real Estate Taxes provided Tenant forthwith pays
the same under protest or furnishes to Landlord sufficient security by bond or otherwise to ensure the payment of same (together with Landlord’s reasonable expenses and costs, on a solicitor and client basis) in the event such appeal or
application is unsuccessful. The Tenant shall keep the Landlord informed at all times of the progress of such contestation and the Tenant shall obtain the Landlord’s approval for the final assessment value. 
  
 PART 6.5 Change of Taxation System 
  
 If the system of real estate taxation presently in force is altered on varied or if in
replacement of or in addition to the Real Estate Taxes presently imposed on the Leased Premises a new tax, assessment or imposition is levied or imposed upon the Leased Premises or if such tax is imposed on the Landlord or on income from the rental
of the Leased Premises, then the term “Real Estate Taxes” shall include such new tax, assessment or imposition. Should any competent authority, at any time whatsoever, eliminate any tax, assessment or imposition forming part of the Real
Estate Taxes, the Landlord shall eliminate such tax, assessment or imposition from the Real Estate Taxes. 
  

													
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 PART 7.    USE AND MAINTENANCE OF LEASED PREMISES 
  
 PART 7.1 Use 
  
 The Tenant shall use and occupy the Leased Premises solely as office and warehouse for a distributor including manufacturing, packaging,
processing and distribution purposes and for no other purpose. 
  
 PART 7.2
ENVIRONMENTAL COVENTANTS 
  
 PART 7.2.1 “Definitions”

  
 « Environment » includes air, land,
groundwater and surface water; 
  
 « Environmental Laws
» means all applicable federal, provincial and municipal laws, regulations, by-laws, standards, requirements, ordinances, codes, policies, guidelines, orders, notices, permits or directives, or parts thereof, pertaining to protection,
conservation, utilization, impairment or degradation of the Environment in effect as of the date hereof and as may be brought into effect or amended at a future date; 
  
 « Governmental Authority » means any federal, provincial or municipal government, parliament legislature,
or any regulatory authority, agency, ministry, department, commission or board or other representative thereof, or any political subdivision thereof, or any court or (without limitation to the foregoing) any other law, regulation or rule-making
entity, having or purporting to have jurisdiction of the relevant circumstances, or any person acting or purporting to have jurisdiction of the relevant circumstances, or any person acting or purporting to act under the authority of any of the
foregoing (including, without limitation, any arbitrator) or any other authority charged with the administration or enforcement of Environmental Laws; 
  

« Hazardous Substance » means any substance or material whose discharge, Release, use, storage, handling or disposal is
regulated, prohibited or controlled, either generally or specifically, by any Governmental Authority pursuant to or under any Environmental Laws, including, but not limited to, any contaminant, pollutant, deleterious substance, material which may impair, petroleum and other hydrocarbons and their derivatives and by-products,
dangerous substances or goods, asbestos, gaseous, solid and liquid waste, special waste, toxic substance, hazardous or toxic chemical, hazardous waste, hazardous material or hazardous substance, either in fact or as defined in or pursuant to any
Environmental Laws; 
  
 « Notice »
means any citation, directive, Order, claim, litigation, investigation, inspection, report, proceeding, judgment, letter or other communication, written or oral, actual or threatened; 
  
 « Order » means any order, decision, directive,
declaration, decree, injunction, writ, judgment, ruling, award, request, claim or the like from or by any Governmental Authority pursuant to or under any Environmental Laws; 
  
 « Permit » means any permit, consent, waiver,
certificate, approval, authorization, registration, license, franchise, right, privilege or exemption or the like issued or granted by any Governmental Authority pursuant to or under any Environmental Laws; 
  
 « Release » includes any release, spill, leak, pumping,
pouring, emission, emptying injection, escape, leaching, migration, disposal or dumping into or within the Environment. 
  

													
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 PART 7.2.2 “Covenants” 
  
 In addition to and without restricting any other obligations or covenants herein, the Tenant covenants that: 
  

	 	(i)	Compliance with Environmental Laws: 

  
 The Tenant shall comply, and cause any other person acting under its authority or control to comply, in all material respects, with all Environmental
Laws (including, but not limited to, obtaining any required Permits or similar authorizations) relating to the Leased Premises or the use of the Leased Premises by the Tenant or those acting under its authority or control; 
  

	 	(ii)	Inspection: 

  
 Without relieving the Tenant of any of its obligations hereunder, the Tenant shall permit the Landlord, its officers, employees, consultants, authorized representatives and agents to: 
  

	 	a)	visit and inspect the Leased Premises and the Tenant’s operations; 

  

	 	b)	conduct tests and environmental assessments or appraisals; 

  

	 	c)	remove samples from the Leased Premises; 

  

	 	d)	examine and make abstracts from and copies of any documents or records relating to the Leased Premises; and 

  

	 	e)	interview the Tenant’s employees; 

  
 all at such reasonable times and intervals as the Landlord may desire; 
  

	 	(iii)	Use of Hazardous Substances: 

  
 The Tenant shall not use the Leased Premises or permit them to be used, to generate, utilize, manufacture, refine, treat, transport, store, handle,
transfer, produce or process Hazardous Substances except such Hazardous Substances as are permitted in writing by the Landlord to be brought into the Leased Premises and except in compliance with all Environmental Laws;

  

	 	(iv)	Removal of Hazardous Substances: 

  
 The Tenant shall, upon expiration or termination of the Lease or any renewal thereof, promptly remove all Hazardous Substances used or Released
by the Tenant or brought onto the Leased Premises by the Tenant or those acting under its authority or control. For greater certainty, the foregoing obligation of the Tenant shall include, without limitation, the responsibility during the Term
to remove any Hazardous Substances which have as a result of the operations of the Tenant or any other person acting under its authority or control become affixed to, permeated within or accumulated on or within any buildings or other
structures forming part of the Leased Premises. The undertaking provided for in this section shall survive the termination or expiration of the Lease or any renewal thereof. 
  
 PART 7.2.3 “Environmental Indemnification” 
  
 The Tenant shall indemnify and hold the Landlord harmless at all times from and against any and all losses, damages,
penalties, fines, costs, fees and expenses (including legal counsels and consultants fees and expenses) resulting from (i) any breach of or non-compliance with the foregoing environmental covenants of the Tenant, and (ii) any legal or
administrative action commenced by, or claim 

  

													
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made or Order or Notice from, any third party, including, without limitation, any Governmental Authority, to or against the
Landlord and pursuant to or under any Environmental Laws or concerning a Release or alleged Release of Hazardous Substances at the Leased Premises, and related to or as a result of the operations of the Tenant or those
acting under its authority or control at the Leased Premises. The indemnification provided for in this section shall survive the termination or expiration of the Lease or any renewal thereof. 
  
 PART 7.3 Expenses with Respect to Leased Premises 
  
 The Tenant shall assume and shall pay all expenses with respect to its use and
maintenance of the Leased Premises. 
  
 PART 7.4 Condition of Leased
Premises 
  
 The Tenant undertakes, at its expense, to keep and maintain
in good state of repair and in good condition the Leased Premises, alterations, improvements, facilities, additions, electrical and mechanical systems, structure, and any other apparatus or services in use in the Leased Premises. The Tenant has the
obligation to pay and to provide for the replacements and repairs to the structure (including the roof) or to the electrical and mechanical systems of the Leased Premises in accordance with Part 5.2.5 and the following paragraph of this Lease. The
Tenant undertakes to make use of the Leased Premises as a prudent administrator and to effect, without delay and at its expense, all repairs necessary to keep and maintain the Leased Premises in a good state of repair and in good condition, and, at
the expiration of the Lease, to surrender the Leased Premises to the Landlord in the same condition, except for reasonable wear and tear. 
  
 Each year the Landlord and the Tenant will consult with each other on due and timely basis and prepare a schedule of repairs, replacements and preventive maintenance
(together with an estimate of the cost thereof) which should be effected in the following year in accordance with prudent industry practice for properties comparable to the Leased Premises, taking into consideration the age of the Building, and for
those repairs and replacements that are of a capital nature both parties will agreed upon the amortization period. Without limiting the generality of any other provisions herein contained, the Tenant undertakes and agrees to diligently carry out and
pay for such repairs, replacements and maintenance. 
  
 PART 7.5 Garbage

  
 The Tenant undertakes to maintain the Leased Premises in sanitary
condition, reasonably free of refuse or garbage that might increase the risks of fire, cause unpleasant or nauseous odors or obstruct passageways. 
  
 PART 7.6 Default by Tenant 
  
 Should the Tenant fail to keep and maintain the Leased Premises in a good state of repair and in good condition, or to maintain the Leased Premises in sanitary condition,
free of refuse as described above, and should the Tenant not conform, within thirty (30) days in the given circumstances, to a written notice to that effect given to the Tenant by the Landlord, the Landlord, and the
Landlord’s officers, employees, agents, contractors, workers and other representatives, shall be entitled, without any other prior notice, to enter the Leased Premises and to carry out, in the place of the Tenant and at the Tenant’s
expense, any repairs or other necessary action. The amount of such expenses plus a fifteen percent (15%) administration fee thereon shall be due and payable immediately by the Tenant upon presentation of an invoice, without
prejudice to the Landlord’s other rights and recourses hereunder. 
  
 The
Tenant hereby waives any claim against the Landlord, the Landlord’s officers, employees, agents, contractors, workers and other representatives, and renounces to any compensation, indemnification, reduction of the rent or damages resulting
directly or indirectly from any act of the Landlord or the Landlord’s representatives performed under this Part save and except for fault or gross negligence on the part of the Landlord or the Landlord’s representatives. 

 

													
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 PART 7.7 Nuisance 
  

The Tenant shall not commit any act of a nature to be injurious to the rights of the Landlord and of the Landlord’s other tenants if any. The Tenant shall cease
such acts or activities upon receipt of written notice from the Landlord to this effect. 
  
 PART 7.8 Occupation of Leased Premises 
  
 From and after the Commencement Date, the Tenant shall physically occupy the Leased Premises and shall not leave same vacant except if the Tenant maintains its insurance in conformity with the provisions of the Lease and notifies its
intent to vacate the Leased Premises to its insurer and to the Landlord as hereinafter mentioned. During the Term of the Lease, the Tenant will actively and diligently conduct its business in the Leased Premises in an up-to-date, high class and
reputable manner, consistent with past practice. 
  
 Notwithstanding the
preceding, it is understood and agreed that during the Term, the Tenant shall not be obliged to physically occupy the Leased Premises, in whole or in part, provided that it respects all the terms and conditions of the Lease. The Tenant shall
notify the Landlord, in writing, of its intention to vacate the Leased Premises within a period of no more than two (2) months and not less than fifteen (15) days of the date it intends to vacate same. 
  
 PART 8.    ALTERATIONS, REPAIRS, IMPROVEMENTS INSTALLATIONS AND
ADDITIONS 
  
 PART 8.1 Consent of Landlord 
  
 The Tenant shall not, without the prior written consent of the Landlord carry out any
change, repair, replacement, alteration, improvement, installation or addition to the Leased Premises, excluding any cosmetic works as hereinafter defined (the “Work”), either prior to or throughout the Term of the Lease. Any such
Work shall be made in compliance with the following conditions: 
  
 PART 8.1.1

  
 any Work affecting the Building’s structure or
mechanical, electrical, plumbing and heating-ventilating and air conditioning systems shall be done by contractors approved by the Landlord which approval shall not be unreasonably withheld and contractors shall be coordinated by the Tenant at the
expense of the Tenant; 
  
 PART 8.1.2 
  
 all plans and specifications related to any Work must be approved by the
Landlord, and, if required by law, the Quebec Department of Labour as well as any other authority having jurisdiction in this matter (the “Approved Work Plans”); 
  
 PART 8.1.3 
  
 all Work shall be completed in a good and workmanlike manner, using licensed and qualified contractors; shall comply with the Approved Work Plans; and
shall be free of all Hazardous Substances; and 
  
 PART 8.1.4 

 
 all necessary steps and procedures will be taken by the Tenant in order
to obtain from the appropriate authorities, all permits and site plan approvals and all other necessary approvals and consents required to perform the Work in conformity with the Approved Work Plans. 
  
 For the purposes hereof “cosmetic works” means minor works such
as painting, replacing floor coverings, etc. 
  

													
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 PART 8.2 Connections 
  
 Any connection to the electrical, plumbing or air-conditioning systems shall be considered as Work within the meaning of this Part 8.

  
 PART 8.3 Insurance and Waiver of Hypothec 
  
 The Tenant shall demand of any contractor or subcontractor for work of more than fifteen
thousand dollars ($15,000.00), increasing by two thousand dollars ($2,000.00) per lease year, not to commence any Work whatsoever in the Leased Premises before submitting to the Landlord a waiver and an undertaking to release any
hypothecs which may exist or arise as a result of any Work performed or materials supplied. Should such waiver or undertaking to release hypothecs not be furnished as required, the Landlord shall be entitled to order the immediate cessation of any
Work in progress or to be performed by such contractor or subcontractor in the Leased Premises save and except if the contractor or subcontractor remits to the Landlord a labour and material payment bond issued by an insurance company acceptable to
the Landlord acting reasonably. 
  
 Should, however, a notice of legal hypothec be
registered against the Leased Premises, the Tenant shall without delay obtain the discharge thereof or undertake the necessary steps or procedures to do same. Should said legal hypothec not be discharged within thirty (30) days of its
registration, the Tenant shall immediately deposit with the Landlord an amount sufficient to cover the payment of such legal hypothec, capital, costs and interest, including costs and expenses incurred by the Landlord in respect of the legal
hypothec. Should the Tenant fail to deposit the required amount within five (5) business days following notice, the Landlord may pay to the hypothecary creditor the amount claimed and obtain the discharge of the legal hypothec,
notwithstanding any contestation or proceedings undertaken by the Tenant with regard thereto. The Tenant shall then repay to the Landlord such payment, capital, costs and interest, upon demand, with interest at the prime lending rate of the banker
of the Landlord plus five percent (5%) per annum, calculated from the date of payment by the Landlord. Any deposit made by the Tenant to the Landlord as described hereinabove shall be held by the Landlord in trust until proof of the
total discharge of such legal hypothec has been delivered to the Landlord, with all interest to be for Tenant’s account. 
  
 The Landlord shall also be entitled to require that any contractor or subcontractor performing any Work in the Leased Premises take out an insurance policy covering all
public liability and property damage, of at least two million dollars ($2,000,000.00) in respect of its activities in the Building. 
  
 PART 8.4 Changes Belonging to Landlord 
  
 During the entire Term of the Lease, the Tenant may not remove any Work made in or to the Leased Premises without the prior written consent of the Landlord. All such Work
shall form part of the Leased Premises, become the property of the Landlord, and be returned by the Tenant along with the Leased Premises at the expiration of the Lease, with no compensation or indemnification whatsoever owed by the Landlord to the
Tenant. However, the Tenant shall, at the expiration of the Lease, remove the Work the Landlord had requested it to remove at the time of giving its approval as provided in Part 8.1. 
  
 The Tenant shall have the right, at the expiry of this Lease, to remove from the Leased
Premises all its equipments, trade fixtures and other movable effects provided it repairs any damages caused by such removal. The parties specifically agree that the Tenant shall be permitted to remove its clean room, measuring
approximately                     square feet. 
  
 Any property left in the Leased Premises which belongs to the Tenant or to any other person which are left in the Leased Premises at the end of the Term shall be deemed
to have been abandoned in favour of the Landlord and the Landlord shall, at its discretion, dispose of such property without owing any compensation or indemnity whatsoever. 
  

													
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 PART 9.    INSURANCE 
  
 PART 9.1 Tenant’s Insurance 
  
 Throughout the Term of the Lease and any period of renewal thereof, the Tenant shall take out and keep in force the following insurance policies with insurance companies
authorized to carry on business in the Province of Quebec: 
  
 PART 9.1.1

  
 Insurance against destruction or damage by fire and such
other perils as the Landlord shall deem advisable and as would be taken by a prudent owner or as may be required by the Landlord’s mortgagees from time to time including but not limited to standard extended perils or all risk coverage to
the extent of the full replacement value thereof; 
  
 PART 9.1.2

  
 Boiler and pressure vessel insurance in the form of a
comprehensive boiler policy to the extent of the full replacement of the Leased Premises; 
  
 PART 9.1.3 
  
 All risk
coverage in an amount sufficient and to cover the cost of replacement of all contents, alterations, decorations, fixtures, additions and improvements made, installed or brought by the Tenant onto the Leased Premises; 
  
 PART 9.1.4 
  
 Rental income insurance for an amount equal to the rent, as defined pursuant to Part 4 of this Lease, due and payable for a
twelve (12) month period; 
  
 PART 9.1.5 
  
 Comprehensive insurance against bodily injury and property damage, general
liability coverage arising out of the use, maintenance or repair of the Leased Premises and/or the business of the Tenant or any sub-tenant, licensees or occupiers of the Leased Premises; such insurance shall be for a limit of no less than
$5,000,000 inclusive for any one occurrence; 
  
 PART 9.1.6 
  
 Coverage for the replacement of all plate glass, broken, cracked or damaged
in, on or about the Leased Premises. Tenant may self-insure for this risk provided it so notifies the Landlord in writing; 
  
 PART 9.1.7 
  
 Tenant’s legal liability insurances for the actual cash value of the Leased Premises indicating loss of use thereof; 
  

	PART 	9.1.8 

  
 Business interruption insurance; and 
  
 PART 9.1.9 
  
 Such other insurance as the Landlord or the Landlord mortgagee considers reasonably advisable. 
  

													
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 PART 9.2 Conditions of Insurance Policies 
  
 Such insurance policy or policies shall be in forms and in amount satisfactory to the Landlord, and shall be placed in the names of the
Tenant, the Landlord and every mortgagee of the Leased Premises of which Tenant has been notified and be with an insurance company or companies reasonably satisfactory to the Landlord and every such mortgagee. The Tenant shall promptly
furnish to the Landlord and every such mortgagee certificates of such policies and their renewals. The Tenant shall instruct its insurers to endorse all such policies to provide that in the event of any change in them which would effect the
Landlord, or and such mortgagee or in the event of their cancellation, the insurer will give notice to the Landlord and every such mortgagee of which Tenant has been notified to that effect, pursuant to Part 20 of this Lease, thirty
(30) days prior to the effective date of such cancellation. 
  
 Notwithstanding anything contained in the Lease, all insurance policies taken out by the Landlord or the Tenant pursuant to the Lease shall contain a waiver of any subrogation rights which the insured’s insurer may have against the
Tenant of the Landlord and against those for whom either party is responsible in law, whether such damage is caused by the act, omission or negligence of the other party or those for whom it is in law responsible and all public liability and legal
liability policies of the insured will include the other party and those for whom it is responsible in law as additional insured with a cross liability and severability of interest clause. 
  
 PART 9.3 Reconstruction of Leased Premises 
  
 Subject to Part 11.4 and to any cancellation of the Lease as provided for in this Lease,
the insurance indemnities payable in the event of a casualty to the Building shall be used to rebuild and repair the damages, as provided herein. The Landlord undertakes to use its best efforts so that every hypothec given by the Landlord
contain a provision to this effect. 
  
 PART 10.    ACCESS
BY LANDLORD TO LEASED PREMISES 
  
 PART 10.1 Inspection and Repairs

  
 Provided that it is effected with minimal interference to the
Tenant’s business operations, taking into consideration the reasons for which the Landlord wishes to enter the Leased Premises, and further provided that reasonable notice is given by the Landlord to the Tenant, except in case of emergency, the
Landlord shall have access to the Leased Premises at any time, without liability toward the Tenant, except for damages caused to the Leased Premises by the fault or the gross negligence of the Landlord or its representatives to examine and
verify the Leased Premises or for the purpose of curing a Tenant’s default under this Lease, the whole subject to the provisions of this Lease. 
  
 In the event of an emergency, if the Tenant shall not be personally present to open and permit an entry into the Leased Premises at any time
when for any such reason an entry therein shall be necessary, or if it cannot be reached at the number(s) given to the Landlord, the Landlord or the Landlord’s agent may forcibly enter the same, without rendering the Landlord or such
agents liable therefore, except in case of fault or gross negligence, and without any manner effecting the covenants, obligations and agreements under this Lease. 
  
 PART 10.2 Visiting the Leased Premises 
  
 During the Term of this Lease and any renewal terms, the Tenant shall permit the Landlord or any other person designated by the Landlord to
visit the Leased Premises during normal business hours. The Tenant shall also permit the Landlord, at any time during normal business hours, to show the Leased Premises to any broker, purchaser or assessor of the Leased Premises. In both instances,
the Landlord shall provide the Tenant with reasonable notice. 
  

													
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 PART 11.    DAMAGE AND DESTRUCTION 
  
 PART 11.1 Destruction of Leased Premises 
  
 Should the Building be destroyed or damaged by fire or other casualty insured against by the
Landlord, then: 
  
 PART 11.1.1 
  
 if the Landlord is of the reasonable opinion, supported by appropriate
expertises (1) that the damage or destruction is such that the Building has been rendered wholly unfit for
occupancy and / or for Tenant’s operation, and if the Landlord is of the opinion (which the Landlord shall signify to the Tenant in writing within thirty (30) days following the damage or destruction) that the damage cannot
be repaired with reasonable diligence within one hundred and eighty (180) days following the casualty, either party may, within five (5) business days following the receipt of such an opinion, terminate the Lease by written notice
to that effect, in which case the Lease shall terminate on the day of the damage or destruction, and the Minimum Rent and all other amounts payable by the Tenant under the Lease shall be calculated and paid in full up to the date of the damage or
destruction. In the event that neither the Landlord nor the Tenant terminates this Lease, the Minimum Rent shall abate from the date of the damage until the date on which the Building has been repaired to the extent of enabling Tenant to use and
occupy same; 
  
 PART 11.1.2 
  
 if the damage be such as to render the Building wholly unfit for occupancy,
or if it is impossible or unsafe to use or occupy it, but if, in either case, the Landlord is of the opinion (which the Landlord shall signify to the Tenant in writing within thirty (30) days following the damage) that the damage can be
repaired with reasonable diligence within one hundred and eighty (180) days following the casualty, the Minimum Rent shall abate from the date of the damage until the date on which the Building has been repaired to the extent of enabling Tenant
to use and occupy same; 
  
 PART 11.1.3 
  
 if the Landlord is of the reasonable opinion, supported by appropriate
expertises that the damage can be repaired as described above within one hundred and eighty (180) days following, the casualty and that the nature of the damage is such as to render the Building only partially fit for occupancy for the
purpose for which it was leased, the Minimum Rent shall abate in the proportion that the Tenant’s operation is affected until the damage has been repaired. 
  
 PART 11.2 Proceeds of Insurance 
  
 In the event of a termination of this Lease as described above, all proceeds of insurance policies, except for those amounts pertaining to the Tenant’s
property shall be and remain the sole property of the Landlord. 
  
 PART
11.3 No Obligation to Rebuild 
  
 No provision of this Lease shall oblige
the Landlord to repair or rebuild the Tenant’s alterations, improvements or other property. Landlord will diligently repair and reconstruct the Leased Premises within the delay estimated by Landlord’s architect. Notwithstanding anything
contained in this Lease to the contrary, and without limiting the Landlord’s right or remedies hereunder, if the Term of the Lease which remains is less than twenty-four (24) months (unless both parties come to an early agreement in
writing pertaining to the exercise of the Option to Renew pursuant to section 2. of Schedule A of the Lease), then the Landlord shall be entitled, without obligation or liability to the Tenant, to terminate this Lease on one hundred and eighty
(180) days written notice to the Tenant and all 

	1	The Landlord will appoint a certified architect to which the Tenant shall agree, to obtain such expertise. 

  

													
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 rents shall be adjusted consequently up to the first day following the date of such damage or destruction.

  
 PART 11.4 Destruction Caused by Tenant 
  
 If any damage or destruction is caused to the Building, in whole or in part, by fire or
other casualty due to the fault or negligence of the Tenant or the Tenant’s officers, agents, employees, servants or authorized persons, in such case, without prejudice to the Landlord’s other rights and recourses or to any subrogation
rights of the Landlord’s Insurer: 
  
 PART 11.4.1 
  
 the Tenant shall be liable for all costs and damages to the extent not
covered by insurance; 
  
 PART 11.4.2 
  
 the Tenant shall forfeit its right to terminate the Lease as provided for
under Part 11.1.1; and 
  
 PART 11.4.3 
  
 the Tenant shall not be entiltled to any abatement or postponement of the
Minimum Rent in virtue of this Part. 
  
 PART
12.    EXPROPRIATION 
  
 PART 12.1 Termination of
Lease 
  
 In the event the whole or any part of the Leased Premises
shall be expropriated or taken possession of by any competent authority, so that it is no longer feasible for the Landlord or Tenant to continue to operate the Leased Premises, the Landlord or Tenant may
terminate the Lease from the date of said expropriation or taking of possession, by notifying the other party in writing to this effect, and the Landlord or Tenant, as the case may be shall have no liability toward the other
party for any reason whatsoever. 
  
 PART 12.2 No Obligation to Contest

  
 The Landlord and the Tenant hereby reserve all their rights to claim
future damages against the expropriating authority. The Tenant acknowledges that the Landlord shall have no obligation to contest any expropriation proceedings. Both parties shall cooperate to get the maximum indemnity possible.

  
 PART 13.     INDEMNIFICATION 
  
 PART 13.1 Non-Liability of Landlord 
  
 The Landlord shall not be liable for any material or bodily damage occurring in the Leased
Premises or in the Building at any time and for any reason whatsoever, except when such damage or injury results directly from the fault or gross negligence of the Landlord or those for whom it is in law liable. The Landlord
shall not be liable for any material or bodily damage in the Leased Premises or in the Building at any time, and the Tenant shall have no right to any abatement or reduction in the rent, nor any recourse against the Landlord in the case of partial
or total interruption of services or in case of damage caused by the slowdown or stoppage of the heating, air conditioning, electricity for lighting or the operation of machines, water, plumbing, sewers, elevators or any other service, nor in the
case of damages or inconvenience attributable to the leakage or presence of water, snow or ice on the roof, skylight, traps, windows or otherwise, or to a defect or breakage of pipes, reservoirs, movables or other apparatus or devices causing the
escape, infiltration or leakage of steam, water, snow, smoke or gas, nor in the case of damages or inconvenience attributable to the condition or layout of electrical wires or other wires, or caused by any act, omission or negligence of owners or

  

													
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occupants of adjacent or contiguous properties, nor attributable to the performance of major repairs, changes, improvements or transformations to the
structure of the Building, or to any other thing or service inside, outside or contiguous to the Leased Premises, the whole except where due to the Landlord’s fault or gross negligence, or that of persons for whom it is in law
liable. Moreover, the Tenant undertakes to hold the Landlord harmless against any claim brought by anyone arising out of any such damages. 
  
 PART 13.2 No Reduction 
  
 The Tenant acknowledges that it shall not be entitled to any abatement or reduction of any of the various amounts payable hereunder, nor to terminate the Lease nor to any
indemnification out of any amount whatsoever payable hereunder, save as specifically set out in Part 11 and Part 12 hereof. 
  
 PART 13.3 Notice of Defect 
  
 The Tenant shall notify the Landlord without delay of any accident, defect or fault in the pipes for water or gas, heating or air-conditioning equipment, lighting or
electrical conduits, electrical wiring or other services in the Building. 
  
 PART 14.     SIGNS AND ADVERTISING 
  
 PART 14.1 Consent of Landlord 
  
 The Tenant shall not
install, exhibit, place or distribute any notice, advertisement, print, sign or other writing outside the Building and on the Land, or in the Building in such a manner as to be visible from outside the Building, without first obtaining the prior
written consent of the Landlord, which consent shall not be unreasonably withheld, failing which the Landlord shall be entitled to demand that the Tenant removes such notice, advertisement, print, sign or writing, and the Tenant shall comply with
such notification within at least twenty-four (24) hours following receipt of the notice. Should the Tenant not comply with the Landlord’s written request, the Landlord shall be entitled to remove, at the Tenant’s expenses, any such
notice, advertisement, print, sign or writing, without recourse by the Tenant against the Landlord. Subject to its compliance with current municipal by-laws, the Landlord accepts existing signage at the signing of this
Lease. 
  
 PART 15.    COMPLIANCE WITH
LAWS AND INDEMNIFICATION 
  
 PART 15.1 Compliance with Laws

  
 The Tenant shall, at its own expense and without delay, comply with
the requirements of all laws, regulations, ordinances, orders and by-laws in effect for the City of Montreal, the provincial and federal governments and each of their respective departments, commissions and agencies, as the case
may be, and any other governmental authority having jurisdiction over the Leased Premises, the occupancy of said Leased Premises by the Tenant, or the conduct of the Tenant’s business in the Leased Premises or any demand from same. Furthermore,
the Tenant waives any claim for reduction of the amounts payable hereunder or for any damage the Tenant may suffer by reason of the application to the Tenant of such legislative or regulatory provisions. 
  
 Without limiting the generality of the foregoing, the Tenant shall carry out all alterations
or changes to the Leased Premises or to the Tenant’s conduct of business in or utilization of the Leased Premises which may be required by the above-mentioned authorities, and prior to effecting such alterations or changes shall submit to the
Landlord plans and specifications for the Landlord’s written approval. 
  
 Should the Tenant fail to effect within the required time the alterations or changes required by the authorities having jurisdiction, the Landlord, following written notice to the Tenant requiring the Tenant to carry out the required work
within a reasonable period of time, may effect said 

  

													
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work of alteration or change required by the authorities having jurisdiction and shall immediately be entitled to claim repayment from the Tenant, plus an
amount equal to fifteen percent (15%) of the costs of such alteration or change representing the Landlord’s administration fees. 
  
 PART 15.2 Indemnification of Landlord 
  
 The Tenant agrees to indemnify the Landlord and to hold it harmless against any fine, penalty, indictment or damage whatsoever resulting from any violation by the Tenant
or the Tenant’s employees, agents or mandataries of the laws, ordinances or regulations in force. The Tenant also agrees to indemnify the Landlord and hold it harmless against any damage and/or any expense resulting from any failure by the
Tenant to comply with any of the terms and conditions of the Lease and shall repay the Landlord all the reasonable expenses, including reasonable legal fees, which the Landlord shall have incurred in order to enforce its rights and
recourses. 
  
 PART 16.    SUBLET AND ASSIGNMENT 
  
 PART 16.1 Consent of Landlord 
  
 The Tenant shall not at any time have the right to sell, give, assign or otherwise dispose of the Lease nor to sublet the Leased Premises or any part thereof, directly or
indirectly, nor to allow the Leased Premises or any part thereof to be used by another, without prior written consent of the Landlord, which consent shall not be unreasonably withheld, conditioned nor delayed. Landlord’s consent shall not be
required for a sublease, assignment, disposition if the transferee is a parent, subsidiary or affiliate of Tenant (as such terms are defined in the Canada Business Corporations Act) or if the Tenant is sold to an entity of an equal or greater
financial strength as determined by the enterprise value (value enterprice = share price X number of outstanding shares). 
  
 PART 16.2 Presumed Sublet and Assignment 
  
 Subject to the provisions of Part 16.1 above, any of the following shall be deemed to be a sublet or assignment of this Lease: 
  
 PART 16.2.1 
  
 any transfer, sale or issuance involving, in the aggregate, fifty percent (50%) or more of the voting shares of the
Tenant’s share capital, where the Tenant is a company whose shares are not listed on any recognized stock exchange; 
  
 PART 16.2.2 
  
 any transfer, sale or assignment involving, in the aggregate, fifty percent (50%) or more of the interest in the partnership, where the Tenant is
a partnership; 
  
 PART 16.2.3 
  
 the exercising of a right of occupancy, management or control with respect
to the whole or to any part of the Leased Premises, or with respect to the business conducted therein, by any person other than the Tenant, whether or not said person is directly under the control or supervision of the Tenant; and 
  
 PART 16.2.4 
  
 the acquisition or exercise of effective control of the Tenant’s business by any other person not having such effective
control on the date of signature of the Lease. 
  

													
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 PART 16.3 Offer to Landlord 
  
 Before assigning this Lease or before subletting the whole or any part of the Leased Premises, the Tenant shall fulfill and observe the
following conditions: 
  
 PART 16.3.1 
  
 the Tenant shall offer to sublet or to assign, as the case may be, the
Leased Premises or applicable portion thereof to the Landlord, on the same terms and conditions as those of this Lease; 
  
 PART 16.3.2 
  
 the Tenant must inform the Landlord of the precise conditions of the proposed sublet or assignment and of the name and address of the subtenant or
assignee proposed and provide a copy of the offer to assign or sublet; and 
  
 PART 16.3.3 
  
 the Tenant shall inform the
Landlord of the nature of the business and credit references of the proposed subtenant or assignee as well as all information relating to the proposed sublet or assignment, which the Landlord deems necessary. 
  
 The Landlord shall then have a period of twenty (20) days following receipt of a notice
from the tenant complying with the conditions stated above, to accept or refuse the offer of assignment or sublet by the Tenant or to cancel this Lease as of the effective commencement date of such sublet or assignment. Following receipt of a
second notice from Tenant, the Landlord will have an additional period of ten (10) days to accept or refuse the assignment or sublet failing which the Landlord will have deemed to have accepted the Tenant’s request pursuant to this section.

  
 PART 16.4 Time Limit for Sublet and Assignment 
  
 Should the Tenant not sublet or assign the Leased Premises or any part of the Leased
Premises within ninety (90) days after obtaining the authorization of the Landlord, such authorization shall from that time be considered null and of no further legal effect, and in such case the Tenant may not sublet or assign the Leased
Premises without once again complying with all provisions of this Part. 
  
 PART 16.5 New Lease 
  
 The Landlord, rather than give
its authorization for a sublet or an assignment of the Lease within the period of twenty (20) days described in Article 16, shall be entitled to require the proposed subtenant or assignee to sign a new lease according to and on the same terms
and conditions as contained in the offer to sublet or assign, and in such case, the Tenant agrees and undertakes to guarantee to the Landlord the performance of all obligations of such subtenant or assignee under the new lease for the remaining Term
of this Lease only. 
  
 PART 16.6 Joint and Solidary Liability

  
 Notwithstanding any sublease or assignment, the Tenant shall remain
solidarily liable with the assignee or subtenant for the performance of all the obligations set out in this Lease and every assignee or subtenant shall assume the execution of said obligations of the Tenant towards the Landlord. The Tenant and each
assignee or subtenant shall, by the sole fact of the assignment or sublet, be solidarily responsible towards the Landlord for the performance of all the obligations evidenced by this Lease. 
  
 PART 16.7 Approval of Advertising 
  
 The Tenant may not, in any manner whatsoever, advertise his intention to, nor otherwise
assign the Lease or sublet the Leased Premises, and may not authorize a real estate broker or other person to do so, without the prior written consent of the Landlord, which consent shall not be unreasonably withheld. In particular, the rental rate
applicable to the Leased Premises may not in any way appear in any advertisement. 
  

													
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 PART 16.8 Exceeding Rent 
  
 The Tenant shall never sublease the Leased Premises or assign the Lease at a rent exceeding the Minimum Rent. Any Exceeding Rent shall be
to the Landlord’s own benefit. “Exceeding Rent” means any amount by which the total amounts to be paid by an assignee or a subtenant following an assignment or a sublease, be it as rent or otherwise, exceeds the total Minimum Rent
that the Tenant is to pay to the Landlord in accordance with the Lease. Provided the Tenant remits to the Landlord the documentation evidencing such expenses, the Tenant shall be entitled to deduct from the Exceeding Rent any expenses, allowances,
brokerage fees, etc. arising with respect to such subletting or assignment. In calculating the amount to be substracted from Exceeding Rent for each period of monthly payment, the expenses will be depreciated without interest on a straight-line
basis over the term of such sublease or assignment. 
  
 PART 16.9 Fee

  
 If the sublease or the assignment is accepted by the Landlord, the
Tenant shall pay to the Landlord for the related administrative expenses, a fee of $750.00 which shall be payable by certified cheque and shall be remitted at the time of signature of the agreement of sublease or of assignment. 
  
 PART 17.     SUBORDINATION AND ATTORNMENT 
  
 PART 17.1 Assignment by Landlord 
  
 In the event of the sale, lease or other transfer of the Building or any part of the
Building by the Landlord, or the assignment by the Landlord of this Lease or any interest of the Landlord hereunder, to the extent that the purchaser, tenant or assignee assumes the obligations of the Landlord hereunder, the Landlord shall,
thereupon and without further agreement, be freed of all liability with respect to such obligations. 
  
 PART 17.2 Status Statement 
  
 Within ten (10) days following the Landlord’s written request thereof, the Tenant shall execute and deliver to the Landlord or to any other person designated by the Landlord a status statement setting out: (i) whether the
Lease is in full force and effect, (ii) whether it has been modified or assigned, (iii) confirming the Rent and the state of accounts between the Landlord and Tenant, (iv) to the best of its knowledge, the existence of any defaults, and
(v) any other reasonable information which is requested. 
  
 PART 17.3
Subordination 
  
 All of the Tenant’s rights under this Lease shall
be subject and subordinate to the rights of any hypothecary creditor or other holder of any real charge against the Leased Premises or any other assignee of the Landlord’s rights under this Lease, and the Tenant shall attorn to any such
hypothecary creditor or assignee as if such hypothecary creditor or assignee were the Landlord under this Lease, all of which constitutes an essential condition of this Lease. The Landlord undertakes to see that such subordination or attornment
shall not have the effect of infringing the Tenant’s right to enjoyment of the Leased Premises under this Lease, for as long as the Tenant is not in default hereunder and shall do its best efforts to obtain from any such hypothecary creditor
or other holder of any real charge who requests a subordinator, a non disturbance agreement pursuant to which such party, should it realize Its security and become the effective Landlord of the Tenant, shall provide peaceful enjoyment
of the Leased Premises to the Tenant. 
  
 PART 17.4 Signature of
Documents 
  
 The Tenant agrees to execute and sign any act or document
deemed necessary or desirable by the Landlord in order to subordinate the Lease to any hypothec or other charge, at the Landlord’s expenses. 
  

													
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 PART 18.    DEFAULT AND RECOURSE 
  
 PART 18.1 DEFAULTS 
  
 The occurrence of any of the following events shall constitute a default by the Tenant:

  

	 	(a)	if any item of Rent is not paid on its due date and after five (5) business days notice from the Landlord; 

  

	 	(b)	if the Tenant fails to perform any of its other obligations under the Lease and fails to cure the default within thirty (30) days after the Landlord gives the Tenant notice
specifying the nature of the default. 

  
 PART 18.2
LANDLORD’S RECOURSES 
  
 If the Tenant defaults hereunder, in
addition to its other rights and remedies available to it under this Lease or the laws, the Landlord is entitled to any one or more of the following recourses, the Tenant hereby accepting that all recourses pursuant to this Lease and the laws are
cumulative and may be exercised separately or in combination: 
  

	 	(a)	enter the Leased Premises, if necessary, and proceed to cure the default, on forty-eight (48) hours prior written notice to the Tenant, except in case of emergency. The
Tenant will reimburse the Landlord for the Landlord’s costs of so remedying or attempting to remedy. The Landlord will not be liable to the Tenant for any act or omission in so entering the Leased Premises unless such act or omission amounts to
intentional misconduct or gross negligence. 

  

	 	(b)	terminate this Lease upon giving notice of such termination to the Tenant. The Tenant hereby accepts and consents that the Lease shall then by such notice terminate
ipso facto without the necessity of any other “mlse en demeure” or legal process whatsoever and no payment or acceptance of Rent subsequent to such default shall give the Tenant the right to
continue occupancy of the Leased Premises or in any way affect the rights of the Landlord herein. The Tenant shall thereupon within three (3) days quit and surrender the Leased Premises to the Landlord and the Landlord shall have the right to
enter the Leased Premises and dispossess the Tenant and remove any persons or property thereupon without the necessity of any legal proceedings whatsoever. 

  
 PART 18.3 Accelerated Rent 
  
 In the event of an occurrence of an event of default, the current month’s rent plus the next ensuring six (6) month’s rent shall immediately become due and
payable and, as indicated above, the Landlord may without prejudice to any other rights and recourses it may have, terminate the present Lease and take immediate possession of the Leased Premises and the Term of this Lease will forthwith become
forfeited and determined and no payment or acceptance of rental subsequent to such termination will give the Tenant the right to continue occupancy of the Leased Premises or in any way affect the rights of the Landlord herein. 
  
 PART 18.4 Re-Letting 
  
 If the Landlord is entitled to re enter the Leased Premises under this Lease or if the
Tenant gives possession of the Leased Premises to the Landlord or abandons them, the Landlord, in addition to its other rights and remedies, may enter the Leased Premises, as the Tenant’s agent, and re-let them and receive the minimum rent and
additional rent (if applicable) from that re-letting, and, as the Tenant’s agent, take possession of any personal property in the Leased Premises, and sell it at public or private sale without notice to the Tenant, and apply the proceeds and
any minimum 

  

													
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rent or additional rent (if applicable) received from the re-letting on account of the Rent due or to become due, and the Tenant will be liable to the
Landlord for any deficiency. 
  
 PART 18.5 Method and Waiver on Re-Entry

  
 If the Lease is terminated pursuant to the provisions set
forth in this Lease, then, in addition to its other rights and remedies, it may, by appropriate legal proceedings, expel any occupant claiming through or under the Tenant, remove any property in the Leased Premises, and force or change the locks,
without being guilty of trespass. 
  
 PART 18.6 Bankruptcy or Insolvency

  
 If the Tenant becomes bankrupt or insolvent or takes steps, or allows
an order to be made, to end its corporate existence then, in any such case, the Landlord may (i) at its option, terminate this Lease by leaving notice of termination in the Leased Premises and/or, (ii) recover the full amount of Rent due
together with accelerated rent for a minimum period of 3 months or any other longer period permitted by law and any other amount the Landlord has the right to recover under this Lease and by law. 
  
 PART 18.7 Cumulative Remedies 
  
 The Landlord may use any or all of the rights and remedies available to it under this Lease
or at law if the Tenant defaults in observing or performing its obligations or if the Landlord is entitled to terminate the Lease. Those remedies will be cumulative and not alternative. 
  
 PART 18.8 Waiver and Condoning 
  
 Only written waivers of Tenant’s defaults will bind the Landlord. No condoning, excusing, or overlooking by the Landlord of any default by the Tenant will operate as
a waiver of the Landlord’s rights or remedies on any subsequent default. 
  
 PART 18.9 Legal Fees 
  
 If the Landlord exercises any of
its rights or remedies as a result of the Tenant’s default, the latter will pay the Landlord’s reasonable costs and out-of-pocket expenses of so exercising, including complete legal costs. 
  
 PART 19.    INFORMATION 
  
 PART 19.1 Information 
  
 The Tenant authorizes the Landlord to obtain information relevant or necessary to the
execution of this Lease and, in particular, those relating to the Tenant’s solvency and to establish a file in respect of such information. For these purposes, the Tenant authorizes any financial institution, agent of personal information,
contractors and suppliers, and any other person with such information to communicate such information to the Landlord during the Term of the Lease. 
  

													
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 PART 20.    NOTICE 
  
 PART 20.1 NOTICES 
  
 Any notice, request, or demand required or permitted to be given must be in writing and will be sufficiently given if personally served or mailed by prepaid registered
post as follows: 
  
 (a) to the Landlord: 
  
 THE STANDARD LIFE ASSURANCE COMPANY OF CANADA 
 2045 Stanley Street 
 Suite 1200 

Montreal, Quebec 
 H3A 2V4 
  
 Attention: Asset Manager 
  
 (b) to the Tenant 
  
 At the Leased Premises  
  
 Attention: General Manager 
  
 Any notice, request, or demand will be presumed, if mailed, to have been received 5 business
days after the day on which it is mailed and, if delivered, upon receipt if before 5:00 p.m. (otherwise shall be deemed received the next business day), except that if, between the time of mailing and actual receipt, there is an actual or
reasonably anticipated mail strike, slowdown, or labour dispute which might affect delivery, the notice will be effective only if actually delivered. Either the Landlord or Tenant will give notice to the other changing its address for service.

  
 PART 21.    EXPIRATION OF LEASE 
  
 PART 21.1 Termination of Lease 
  
 The occupancy by the Tenant of the Leased Premises beyond the date contemplated in the
present Lease shall not have the effect of extending the Term of the Lease nor of renewing the Lease for any period of time, notwithstanding any other provision of the law, and the Tenant shall be deemed to be occupying the Leased Premises against
the wishes of the Landlord, who may exercise all recourses available in law to evict the Tenant and claim damages from the Tenant. The Landlord may, however, at its option, if the Tenant continues to occupy the Leased Premises, give the latter
written notice at any time that the Tenant may continue to occupy the Leased Premises from month to month, in consideration of a Minimum Rent equal to (i) fifty percent (50%) more than the rent stipulated in Part 4 or (ii) an
amount agreed to by both parties within 10 days of the Landlord notice falling which the Minimum Rent shall be the one stipulated in (i) above, payable in advance in monthly instalments, subject to the same conditions as those in the present
Lease. 
  
 PART 21.2 Notice of Termination 
  
 Notwithstanding the foregoing, the Tenant shall give the Landlord, at least six
(6) months prior to the date of expiration of the Term of this Lease, a notice in writing of its intention to vacate the Leased Premises, failing which the Landlord shall have the option to give the Tenant, at least ninety (90) days before
the date of expiration of the Term of the Lease, a written notice to the effect the tenancy of the Tenant shall be from month to month only, and shall be subject to all the terms, covenants, obligations and agreements of this Lease, except as to
duration, any renewal thereof, and the amount of Minimum Rent payable pursuant to Part 4.1.3 of this Lease shall be increased by fifty percent (50%) 
  
 PART 21.3 Heating and Air-Conditioning Units 
  
 The Tenant covenants and agrees that sixty (60) days prior to the date of expiration of the Term of this Lease it will provide Landlord with a certificate from
heating and air-conditioning contractor designated by the Landlord that the heating and air-conditioning units contained in the Leased Premises are in good working order, reasonable wear and tear excepted. In the event such certificate is not
provided, the Landlord will obtain its own report and the Tenant will pay for any repairs necessary to put the heating and air-conditioning units in good working order in accordance with this report. 
  

													
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 PART 22.    UNAVOIDABLE DELAY 
  
 PART 22.1 Unavoidable Delay 
  
 Except for the payment of an amount of money, each time that the Lease provides for the performance of an obligation, the obligation shall be performed subject to any
delay caused by an act of God, superior force, strike, lockout, labour conflict, inability to procure materials, restrictive government restrictions or orders, bankruptcy of a contractor or any other condition of a like nature or not (except for the
financial situation of either one of the parties), which is reasonably beyond the control of the Landlord or the Tenant, as the case may be (an “Unavoidable Delay”). The Tenant and the Landlord shall be deemed not to be in default in the
performance of any obligation under this Lease if they are prevented from so doing by Unavoidable Delay, and any period of time for the performance of such obligation shall be extended accordingly. The Tenant and the Landlord shall notify each other
respectively without delay at the outset of the cause, the duration and the effect, to their knowledge, of any Unavoidable Delay. 
  
 PART 23.    MODIFICATION OF LEASE AND PERFORMANCE BY THIRD PARTY 
  
 PART 23.1 Modification of Lease 
  
 Any alteration, waiver or modification of the terms and conditions of the Lease shall be valid only if expressly provided in writing, subject to the Landlord’s right
to establish rules and regulations for the orderly operation of the Leased Premises. 
  
 PART 23.2 Performance by Third Party 
 The Tenant, including any person claiming to be a subtenant or assignee of the Tenant, agrees
that the payment of Minimum Rent or the performance of any obligation by any person other than the Tenant shall not constitute an acknowledgement of rights other than those expressly granted hereunder or a waiver of any of the Landlord’s rights
and recourses. 
  
 The Landlord may at any time accept the Minimum Rent from the
Tenant or from any physical person or moral person occupying the Leased Premises, without in any way waiving any of the Landlord’s rights and recourses under this Lease. 
  
 PART 24.    MISCELLANEOUS 
  
 PART 24.1 Successors and Assignees 
  

This Lease shall bind the successors and assignees of the Landlord and those of the Tenant. 
  
 PART 24.2 No Partnership 
  
 The parties to this Lease expressly declare that no provision of this Lease and no act on
their part shall be intended or shall be interpreted as establishing between them a relationship other than that of Landlord and Tenant. 
  
 PART 24.3 Cancellation of Previous Agreements 
  
 This Lease contains all of the mutual commitments and obligations of the parties with respect to the leasing of the Leased Premises, and cancels, for all legal purposes,
any previous representations, negotiations or agreements of any nature whatsoever. 
  
 PART 24.4 Liability 
  
 If two or more persons,
corporations, partnerships, or other business associations execute this Lease as Tenant or as Guarantor, as the case may be, the liability of each to observe or perform the Tenant’s obligations will be deemed to be joint and solidary without
the benefit of discussion 

  

													
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and division. If the Tenant or Guarantor, as the case may be, named in this Lease is a partnership or other business association, the members of which by law
are subject to personal liability, the liability of each such member will be deemed to be joint and solidary without the benefit of discussion and division. The Tenant will cause the Tenant’s employees, invitees, licensees, and other persons
over whom the Tenant may reasonably be expected to exercise control to comply with the Tenant’s obligations under this Lease, and any failure to so comply will be deemed to be a default by the Tenant. The Tenant will be liable to the Landlord
for the negligent or wilful acts or omissions of any such employees, invitees, licensees, or other persons over whom the Tenant may reasonably be expected to exercise control. 
  
 PART 24.5 Publication 
  
 The Tenant shall, at its cost, have the right to register the Lease by notice, the whole in conformity with article 2999.1 of the Civil Code of Quebec. Such notice shall
not contain any mention of the Rent or other financial conditions contained in the Lease and shall be submitted to the Landlord for approval, which approval shall not be unreasonably withheld or delayed. At the end of the Term, the Tenant shall
cancel at its expense the registration of such notice. In the event the Tenant fails to cancel the said registration, the Tenant hereby expressly and irrevocably appoints the Landlord as attorney for the Tenant with full power and authority to
cancel such notice and to execute and deliver in the name of the Tenant any instruments or certificates required for such purpose. The Tenant hereby undertakes to forthwith sign and deliver to the Landlord any further power of attorney or document
which the Landlord may request to confirm the foregoing. 
  
 PART 24.6
Brokerage Commission 
  
 The Landlord is responsible for any
fees/commissions owing to its agents/brokers. The Tenant is responsible for any fees/commissions owing to its agents/brokers. 
  
 PART 24.7 Governing Laws 
  
 This Lease shall be interpreted in accordance with the laws of the province of Quebec and the laws of Canada applicable therein. 
  
 PART 24.8 Metric Conversions 
  
 The parties to this Lease agree to the following metric conversion factors: 
  

							
	 1 meter
	  	= 3.2808 feet
	 1 square, meter
	  	=10.7639 square feet
	 1 foot
	  	= 0.3048 meters
	 1 square foot
	  	= 0.0929 square meters

  
 PART 24.9 Headings and Numbers

  
 The headings, captions, article numbers, part numbers, section
numbers, subsection numbers, and table of contents appearing in this Lease are inserted only as a matter of convenience, and in no way define, limit, construe or describe the scope of intent of the parties to this Lease nor in any way affect this
Lease. 
  
 PART 24.10 Interpretation 
  
 The words “hereinabove”, “herein”, “above-mentioned”,
“hereunder” and similar expressions used in any part, article, section or subsection of this Lease refer to the whole of the Lease and not to that part, article, section or subsection only, unless otherwise stipulated. Where required by
the context hereof, the singular shall include the plural and the neuter gender the masculine and feminine. 
  

													
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 PART 25.    SPECIAL PROVISIONS 
  
 PART 25.1 Schedules 
  
 The Tenant and the Landlord agree that Schedule “A” attached hereto forms an integral part of this Lease as if it was contained in this Lease. 
  
 PART 25.2 English Language 
  
 The Parties specifically declare that they have requested that the present Lease and all
writings relating thereto to be drawn up in the English language. Les Parties declarant qu’alles ont demandé que le présent Bail et toute correspondance ’sy relatant soient rediges en anglais. 
  
 IN WITNESS WHEREOF the Tenant acknowledges that, notwithstanding that the Lease was
drawn up and submitted by the Landlord, the Tenant has negotiated the Lease, that it understands all of its provisions and that it was given adequate explanations as to the nature and extent of the Lease. The Tenant has signed these presents in
                     this
                     day of
                     2005. 
  

									
	 STOCKERYALE CANADA INC.
	 	 	 	 
	 (Tenant)
	 	 	 	 
					
	 	 	/s/    MARIANNE MOLLEUR        	 	 	 	 	 	/s/    MARIA RICCIO        
	Per:	 	Marianne Molleur	 	 	 	 	 	 Maria Riccio
 Witness

  
 IN WTTNESS WHEREOF the Landlord
has signed these presents in Montreal, this Twentyth day of December 2005. 
  

									
	 THE STANDARD LIFE ASSURANCE COMPANY OF CANADA
	 	 
	 (Landlord)
	 	 	 	 
					
	 	 	/s/    PETER CUTHBERT        	 	 	 	 	 	 
	Per:	 	Peter Cuthbert	 	 	 	 	 	Witness

  

													
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 SCHEDULE “A” - ADDITIONAL PROVISIONS 
  

	1.	Security Deposit and Pre-Paid Rental 

  
 The Landlord requires and the Tenant undertakes to remit to the Landlord at the latest upon execution of this Lease an amount of five hundred two
thousand nine hundred fifteen dollars and twenty-three cents ($502,915.23) by certified cheque (the “Security Deposit and Pre-Paid Rental”). The Security Deposit and Pre-Paid Rental equates to twelve (12) months of Rental, nine
(9) months of which are applied to Pre-Paid Rental and three (3) months of which are to be applied to the Security Deposit. The Landlord shall retain the last three (3) months of Rent payable as a “Security Deposit” which
security for due performance by the Tenant of all the terms, obligations and covenants of this Lease. 
  
 If the Tenant is in default under the Lease, for which the delay to cure has expired as the case may be, during the Term, the Landlord may at its
option and without notice to the Tenant, appropriate and apply all of the Security Deposit or so much thereof as may be necessary to cure such default without prejudice to the Landlord’s other rights and recourses against the Tenant.

  
 In such case, the Tenant shall, within ten
(10) business days following the Landlord’s written request to this effect, pay to the Landlord an amount sufficient to restore the Security Deposit to the original amount then held by the Landlord failing which, the Tenant
shall be deemed in default under the Lease. The Landlord’s right towards the Security Deposit shall survive the termination of the Lease associated to the declaration of bankruptcy by the Tenant. 
  
 Notwithstanding the foregoing, provided that the Tenant is not in
default under the Lease for which the delay to cure has expired, the Pre-Paid Rental shall be applied against the payment of the Rent (including applicable taxes) during the Term, as follows: 
  

	 	•	 	October and November 2006; 

  

	 	•	 	October and November 2007; 

  

	 	•	 	October and November 2008; 

  

	 	•	 	October and November 2009; 

  

	 	•	 	November 2010; and the Security Deposit shall be applied against the payment of Rent during the months of: 

  

	 	•	 	September, October and November 2015. 

  
 Should the Rental be renegociated or should the taxes changes during the Term, the Security Deposit and the Pre Paid Rental shall be adjusted accordingly.

  
 The Landlord may transfer the Security Deposit and
Pre-Paid Rental to any assignee of the rights or interests of the Landlord in the Lease or in the Leased Premises provided such party effectively becomes the Landlord, and thereupon the Landlord shall be freed and discharged from any
further liability in connection with the Security Deposit and Pre-Paid Rental. 
  
 The Security Deposit and Pre-Paid Rental is an essential condition to the Landlord without which the Landlord would not have signed this Lease. 
  

													
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	2.	Option to Renew 

  
 Provided the Tenant is not and has not been in recurring default under the terms of this Lease, the Tenant shall have the option to renew the Term of the
Lease for an additional period of five (5), at the same terms and conditions stipulated herein, except for: 
  
 i) the Minimum Rent which shall be determined at the time of renewal by the Landlord based on the then prevailing market rates but in no
event shall the Minimum Rent be lower than the last Minimum Rent paid by the Tenant for the last year of the Term; and 
  
 ii) the present option to renew the Term shall not form a part hereof during the term as extended in virtue of the present paragraph and
that there shall be no other kind of inducement with regards to this option to renew. 
  
 The Tenant must notify the Landlord in writing of its intention to exercise this option which written notice must be received by the Landlord six (6) months prior to the expiry date of the Term, failing which the
present option shall be null and void for all legal purposes. 
  
 The parties shall have a period of sixty (60) days following Landlord’s receipt of Tenant’s notice (the “Delay”), in which to negotiate the Minimum Rent applicable to the renewal term, failing which said Minimum
Rent shall be established by arbitration in accordance with the provisions of the Civil Code and Code of Civil Procedure of the Province of Quebec. If either the Landlord or the Tenant did not notify the other party of its intend to submit the
determination of the Basic Rent to arbitration within ten (10) business days following the expiry of the Delay, the present option to renew shall be null and void for all legal purposes. 
  

	3.	Offer to Purchase 

  
 During the Term and any renewal term if the Landlord wishes to bring the Building on market to sell it, Landlord will notify the Tenant of such intent.
The Tenant may present an unsolicited offer to purchase the Building within ten (10) days of its receipt of the Landlord’s notice that the Landlord will seriously consider without any obligation on its part it is understood and agreed that the
Landlord’s sole obligation on under this article is to notify the Tenant. 
  

													
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