Document:

Exhibit
10.48 

 

EXECUTION

Second
Floor - Corporate Centre

310
Hunt Club Road, Ottawa, Ontario

 

SUB-sublease

 

THIS
SUB-SUBLEASE made as of the 1st day of September, 2014.

 

B
E T W E E N:

 

IOGEN
CORPORATION,

(hereinafter
called the “Sub-sublandlord”),

 

-
and -

 

VARIATION
BIOTECHNOLOGIES INC.

(hereinafter
called the “Sub-subtenant”).

 

WHEREAS
pursuant to a ground lease (the “Ground Lease”) made as of January 31, 1997 between Her Majesty the Queen in
Right of Canada, as landlord, and the Ottawa Macdonald-Cartier International Airport Authority (“OMCIAA”),
as tenant, the OMCIAA has leased, among other things, that certain parcel of land (the “Land”) more particularly
described in Schedule A hereto and situated at the Ottawa Macdonald-Cartier International Airport, Gloucester, Ontario (the “Airport”),
all upon the terms and conditions set forth in the Ground Lease;

 

AND
WHEREAS pursuant to a lease (the “Head Lease”) dated July 22, 2005 between OMCIAA, as landlord, and Aeroterm
Ottawa Corporate Centre Corporation (the “Sublandlord”), as tenant, the OMCIAA leased to the Sublandlord the
Land and all the Leasehold Improvements (as defined therein) thereon, including the building located on the Land and municipally
known as 310 Hunt Club Road, Ottawa, Ontario (the “Building”), all as more particularly described in the Head
Lease and all upon the terms and conditions set forth in the Head Lease;

 

AND
WHEREAS pursuant to a lease made as of July 22, 2005 between the Sublandlord, as landlord, and the Sub-sublandlord, as tenant,
as amended by an amendment of agreement of lease dated September 22, 2005 between the Sublandlord and the Sub-sublandlord (as
the same may be further amended, restated, supplemented and/or otherwise modified from time to time, collectively, the “Sublease”),
the Sublandlord leased to the Sub-sublandlord the Land and the Building, all upon the terms and conditions set forth in the Sublease;

 

AND
WHEREAS the Sublandlord, the Sub-sublandlord and General Electric Canada Real Estate Finance Inc./Financement Immobilier Generale
Electrique Canada Inc. (the “Lender”) entered into a subordination, non-disturbance, attornment and tenant-landlord
estoppel agreement (the “Subordination Agreement”) made as of October 21, 2005 with respect to the Sublease;

 

    	 

    	-2-

    

 

AND
WHEREAS the Sub-sublandlord has agreed to sub-sublease to the Sub-subtenant certain laboratory and office space on the second
floor of the Building having a total current area of approximately 6,473 square feet (the “Rentable Area”),
as more particularly described and identified in blue and yellow hatching on the plan attached hereto as Schedule B (the “Premises”),
all on the terms contained in this Sub-sublease; 

 

NOW
THEREFORE in consideration of the mutual covenants contained herein, the sum of $2.00 now paid by each party to the other and
other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by the parties), the Sub-sublandlord
and the Sub-subtenant agree as follows:

 

Article
1

INTERPRETATION

 

	1.1	Interpretation

 

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

 

	1.2	Number,
    Gender, Liability

 

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

 

	1.3	Headings
    and Captions

 

The
Article numbers, Article headings, Section numbers and Section headings are inserted for convenience of reference only and are
not to be considered when interpreting this Sub-sublease.

 

	1.4	Obligations
    as Covenants

 

Each
obligation or agreement of the Sub-sublandlord or the Sub-subtenant expressed in this Sub-sublease shall be a covenant for all
purposes.

 

	1.5	Governing
    Law

 

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

 

	1.6	Currency

 

All
Rent and other amounts of money in this Sub-sublease are expressed in and refer to Canadian dollars and shall be paid in the lawful
currency of Canada.

 

    	 

    	-3-

    

 

	1.7	Severability

 

If
any provision of this Sub-sublease is illegal or unenforceable, it shall be considered severable from the remaining provisions
of this Sub-sublease, which shall remain in force.

 

	1.8	Successors
    and Assigns

 

This
Sub-sublease and everything herein contained shall benefit and bind the successors and assigns of the Sub-sublandlord and the
permitted successors and assigns of the Sub-subtenant.

 

	1.9	Schedules

 

The
Schedules shall form part of this Sub-sublease and are as follows:

 

	 	Schedule
    A	-	Description
    of Land
	 	 	 	 
	 	Schedule
    B	-	Premises,
    Common Areas and Facilities
	 	 	 	 
	 	Schedule
    C	-	Parking
    Spaces
	 	 	 	 
	 	Schedule
    D 	-	Insurance

 

	1.10	Time
    of the Essence

 

Time
is of the essence of this Sub-sublease and every part thereof.

 

	1.11	Statutory
    References

 

Any
reference in this Sub-sublease to any act, statute or any other applicable laws or any section thereof shall be deemed to be a
reference to such act, statute, other applicable laws or section as amended or re-enacted from time to time except as otherwise
expressly provided herein or therein.

 

Article
2

GRANT
OF SUB-SUBLEASE

 

	2.1	Demise

 

The
Sub-sublandlord hereby sub-subleases the Premises to the Sub-subtenant, upon and subject to the provisions of this Sub-sublease,
to have and to hold during the Term (as hereinafter defined). The Sub-subtenant hereby sub-subleases the Premises from the Sub-sublandlord
for the Term and covenants to pay the Rent and to observe and perform all the covenants and obligations to be observed and performed
by the Sub-subtenant pursuant to this Sub-sublease.

 

    	 

    	-4-

    

 

	2.2	Examination
    of Premises

 

The
Sub-subtenant acknowledges that: (i) it has examined the Premises and is accepting the Premises in their present condition on
an “as is” basis, without reservation or qualification, including, without limitation, the office furniture, lab benches
and other furniture, fixtures and equipment (the “Landlord’s FF&E”) existing in the Premises as of
the Commencement Date; and (ii) the Sub-sublandlord shall have no obligations, express or implied, to perform any work in the
Premises at any time before, during or after the term of the Sub-sublease.

 

	2.3	Demising
    Walls

 

The
Sub-subtenant hereby acknowledges and agrees that the Sub-sublandlord reserves the right to, in its sole and absolute discretion
and at its sole cost and expense, install demising walls and doorways and conduct any other work (collectively, the “Demising
Work”) necessary for complying with all Applicable Laws in connection with physically separating the Premises from the
remainder of the premises situated on the second floor of the Building. The Sub-subtenant agrees that (a) it will use commercially
reasonable efforts to cooperate with the Sub-sublandlord to facilitate the Demising Work and not interfere with such Demising
Work; and (b) the Sub-subtenant will not have the right to request any changes to the Sub-sublandlord’s Demising Work that
would require the Sub-sublandlord to conduct any additional work other than the Demising Work that is strictly required pursuant
to Applicable Laws.

 

	2.4	End
    of Term Restoration

 

The
parties hereto agree that the Sub-subtenant shall not be required to restore the Premises to base building condition at the expiry
or early termination of the Term, as applicable, but may (at the option of the Sub-sublandlord exercisable by notice to the Sub-subtenant
in writing given not less than thirty (30) days prior to the expiry or early termination of the Term, as applicable) be required
to restore the Premises and the Landlord’s FF&E to the condition as existing on the Commencement Date hereof, which
restoration is to be conducted in accordance with Section 14.4 of the Sublease and Section 6.1(i) below. For greater certainty,
no improvements existing in the Premises as of the Commencement Date, including the Landlord’s FF&E, will be required
to be removed on expiration or early termination of the Term, as applicable, but any additional improvements made during the Term,
including, without limitation, any dividing walls erected by the Sub-subtenant within the Premises, may be subject to removal
on expiration or early termination of the Term, as applicable, on request by the Sub-sublandlord.

 

Article
3

TERM

 

	3.1	Sub-sublease
    Term

 

The
term of this Sub-sublease (the “Term”) shall commence on the date hereof (the “Commencement Date”)
and, subject to the next following sentence and subject to Section 3.2, shall end at 11:59 p.m. (Toronto time) on December 31,
2017. In no event shall the Term extend beyond the date of the termination of the Sublease. If the Sublease is terminated in accordance
with its terms (whether by expiry or other termination) this Sub-sublease shall be automatically terminated at the same time as
the Sublease is terminated.

 

    	 

    	-5-

    

 

	3.2	Early
    Termination

 

(a)The
Sub-subtenant shall have the right to terminate this Sub-sublease by delivering notice to the Sub-sublandlord after the first
year of the Term and during any Extension Terms (as defined below), if applicable, upon not less than six months’ prior
written notice.

 

(b)The
Sub-sublandlord shall have the right to terminate this Sub-sublease by delivering notice to the Sub-subtenant after the second
year of the Term and during any Extension Terms (as defined below), if applicable, upon not less than six (6) months’ prior
written notice.

 

(c)If
the Sub-sublease is terminated pursuant to either Section 3.3(a) or Section 3.3(b) above and subject to Section 2.4 above, the
Sub-subtenant shall vacate the Premises and remove all of the Sub-subtenant’s property from the Premises by no later than
the date set out in the written notices delivered in accordance with Sections 3.3(a) or 3.3(b). For greater certainty, the Landlord’s
FF&E shall remain at all times the Landlord’s property, as leased to the Sub-subtenant pursuant to this Sub-sublease,
and shall not be removed from the Premises by the Sub-subtenant upon termination of this Sub-sublease.

 

	3.3	Extensions

 

The
Sub-subtenant shall have the option to extend the Term for two (2) periods of three (3) years each (collectively, the “Extension
Terms”, and each an “Extension Term”) upon giving the Sub-sublandlord written notice of its election
to extend the Term or the first Extension Term, as applicable, no more than twelve (12) months and no less than six (6) months
prior to the expiration of the Term or any renewal or extension thereof. Each Extension Term shall be upon the same terms and
conditions as are contained in the Sub-sublease, except that:

 

	 	(a)	during
    the first Extension Term, there shall be only one (1) option to extend left and during the second Extension Term there shall
    be no further option to extend pursuant to this Section 3.3;
	 	 	 
	 	(b)	the
    Sub-subtenant shall accept the Premises on an as-is basis;
	 	 	 
	 	(c)	there
    shall be no fixturing period or other period of rent-free occupancy, or requirement on the Sub-sublandlord’s part to
    do any Sub-sublandlord’s work or pay to the Sub-subtenant any improvement allowance, inducement, loan or other amount
    in connection with this Sub-sublease or improvements installed in the Premises;

 

    	 

    	-6-

    

 

	 	(d)	if
    the Sub-sublandlord requires, the Sub-subtenant will promptly execute an extension agreement prepared by the Sub-sublandlord,
    at the Sub-subtenant’s expense, giving effect to the applicable Extension Term; 
	 	 	 
	 	(e)	for
    each Extension Term, the Basic Rent shall be mutually agreed upon between the Sub-sublandlord and the Sub-subtenant, each
    acting reasonably and in good faith, based upon the then current fair market rate for premises of comparable type, age, location
    and condition (without taking into consideration the value of any leasehold improvements installed by the Sub-subtenant at
    its cost). If the parties cannot agree on the new Basic Rent not less than three (3) months prior to the commencement of the
    applicable Extension Term, the new Basic Rent shall be determined by binding arbitration in accordance with the Arbitrations
    Act, 1991 (Ontario). If the Basic Rent has not been determined by the commencement of the applicable Extension Term, the
    Sub-subtenant shall pay Basic Rent at the rate applicable to the immediately preceding year of the Term or the first Extension
    Term, as applicable, and within ten days after the Basic Rent for the then current Extension Term is determined, the parties
    shall adjust any amount retroactively owing from the commencement of the applicable Extension Term. Under no circumstances
    shall the Basic Rent in any Extension Term be less than the Basic Rent in the year immediately preceding the commencement
    of such Extension Term; and
	 	 	 
	 	(f)	for
    each Extension Term, the Additional Rent Cap (as defined below) shall be mutually agreed upon between the Sub-sublandlord
    and the Sub-subtenant, each acting reasonably and in good faith, based upon the then actual operating costs referenced in
    Section 4.2(a) for premises of comparable type, age, location and condition (without taking into consideration the value of
    any leasehold improvements installed by the Sub-subtenant at its cost). If the parties cannot agree on the new Additional
    Rent Cap not less than three (3) months prior to the commencement of the applicable Extension Term, the parties agree that
    there shall not be an Additional Rent Cap applicable to such Extension Term until such time as the parties agree, each acting
    reasonably and in good faith, on the new Additional Rent Cap. 

 

Article
4

RENT

 

	4.1	Basic Rent

 

Subject
to Section 4.3 below, for the period beginning on the Commencement Date and ending on December 31, 2017, the Sub-subtenant shall
pay to the Sub-sublandlord, without any deduction, set-off or abatement whatsoever, except as may be otherwise provided herein,
a basic rent (the “Basic Rent”) for the Premises in the amount of $14.50 per square foot of Rentable Area of
the Premises per year. The Basic Rent shall be payable monthly in advance in equal, consecutive instalments, on the first day
of each and every calendar month, from and after the Commencement Date, the first such payment to be made on the Commencement
Date, together with all HST (as defined below) thereon. If any year of the Term commences on any day other than the first day,
or ends on any day other than the last day, of a calendar month, all Rent and other sums payable by the Sub-subtenant for the
fractions of a month at the commencement or expiration of the applicable year of the Term, as the case may be, shall be calculated
on a per diem basis based on a period of three hundred and sixty-five (365) days. The parties hereby acknowledge that the
Rentable Area includes a maximum non-negotiable gross-up factor of 17%. For greater certainty, monthly Basic Rent shall be:

 

	 	(a)	for
    the period between September 1, 2014 and August 31, 2015, inclusive: $5,191.00/month (net of the free rent referenced in Section
    4.3); and
	 	 	 
	 	(b)	for
    the period between September 1, 2015 and December 31, 2017, inclusive: $7,821.54/month.

 

    	 

    	-7-

    

 

	4.2	Additional
    Rent

 

(a)The
Sub-subtenant shall also pay on a monthly basis to the Sub-sublandlord as additional rent in respect of the Premises (“Additional
Rent”), the Sub-subtenant’s share (the “Sub-subtenant’s Share”), based on the Rentable
Area of the Premises as a proportion of the total leaseable area of the Building, of those costs (a) identified in Article 8 of
the Sublease, which includes the Sub-subtenant’s Share of Operating and Maintenance Costs and Real Estate Taxes in respect
of the Premises and the Common Areas and Facilities pursuant to the Sublease, and (b) related to the general maintenance, operation
and repair of the Building, to the extent not paid or payable by the Sub-sublandlord to the Sublandlord under Article 8 of the
Sublease, including electrical, water and sewer utilities, mechanical maintenance, heating, ventilation, and air conditioning
maintenance (whether as a result of a service contract or otherwise), electrical and plumbing repair and maintenance, fire extinguisher
services, security, garbage removal, elevator maintenance, janitorial cleaning, window cleaning, snow removal and parking lot
maintenance, insurance, professional fees and other maintenance services. The Additional Rent for the year 2014 is estimated at
$16.33 per square foot of the Rentable Area of the Premises. The parties hereto acknowledge and agree that such amount is an estimate
and the amount payable for Additional Rent may exceed such amount. The Additional Rent shall be adjusted annually based on the
actual amounts determined at the end of each calendar year, up to a maximum of $18.00 per square foot of the Rentable Area of
the Premises (the “Additional Rent Cap”). Annual reconciliation shall be provided within 120 after each calendar
year-end.

 

(b)Notwithstanding
Section 4.2(a) above, the Sub-sublandlord and the Sub-subtenant hereby agree that the Sub-subtenant’s Share of Additional
Rent shall not include the following costs attributable only to the Sub-sublandlord’s occupancy of the Building:

 

	(i)	 	Coffee
    and vending services;
	 	 	 
	(ii)	 	Professional
    fees (legal, accounting); and
	 	 	 
	(iii)	 	Insurance
    paid directly by the Sub-sublandlord.

 

    	 

    	-8-

    

 

	4.3	Rent
    Free Period

 

The
Sub-sublandlord and the Sub-subtenant hereby agree that, for a period of twelve (12) months commencing on the Commencement Date,
the Sub-subtenant shall not have the obligation to pay Basic Rent with respect to 2,177 square feet of the Premises, being the
area identified in yellow hatching on the plan attached hereto as Schedule B (the “Rent Free Premises”), provided
that the Sub-subtenant shall be subject to all the other covenants, terms and conditions as are contained in this Sub-sublease,
mutatis mutandis, including, without limitation, the payment of the Additional Rent related to the Rent Free Premises.

 

	4.4	Payments
    Generally

 

Payments
by the Sub-subtenant to the Sub-sublandlord of whatsoever nature required or contemplated by this Sub-sublease shall:

 

	 	(a)	be
    made when due hereunder, without notice or demand therefor and without any abatement, set-off, compensation or deduction whatsoever
    except as may be otherwise provided herein at: 310 Hunt Club Road, Ottawa, Ontario, K1V 1C1, Attention: Accounts Receivable
    or at such other place as the Sub-sublandlord may designate from time to time to the Sub-subtenant; no event, act, circumstance,
    change of laws, political, constitutional or governmental change, or any other matter whatsoever, whether foreseen or unforeseen,
    ordinary or extraordinary, and whether or not within the contemplation of the parties at the commencement of the Term shall
    relieve the Sub-subtenant of the obligation to pay all Rent payable hereunder; without limiting the generality of the foregoing,
    the Sub-subtenant agrees that it shall not have any right of deduction, set-off or abatement whatsoever with respect to any
    claims that it may have against the Sub-sublandlord pursuant to or in respect of any other agreement with the Sub-sublandlord
    (unless Additional Rent has been overpaid in any calendar year, in which case the Sub-sublandlord shall issue a credit note
    in favour of the Sub-subtenant to set-off the overpaid amount against the next Rent payment);
	 	 	 
	 	(b)	be
    applied towards amounts then outstanding hereunder in such manner as the Sub-sublandlord reasonably determines; and
	 	 	 
	 	(c)	bear
    interest at the rate specified in Section 7.6 of the Sublease from the due date to the date of payment, calculated daily,
    before and after demand, default and judgment.

 

For
purposes of this Sub-sublease, “Rent” means Basic Rent, Additional Rent, and all other monies (save and except
goods and services taxes) payable by the Sub-subtenant hereunder, whether to the Sub-sublandlord or otherwise.

 

	4.5	Harmonized
    Sales Tax

 

In
addition to all amounts payable by the Sub-subtenant under this Sub-sublease as Rent, the Sub-subtenant shall pay, at the same
time as the Basic Rent is payable hereunder, all harmonized sales taxes (“HST”) exigible under the Excise
Tax Act (Canada) and any similar legislation calculated on or in respect of amounts payable by the Sub-subtenant as Rent under
this Sub-sublease or otherwise payable as a result of this Sub-sublease or services or supplies provided hereunder. Notwithstanding
any other provision of this Sub-sublease, any amounts payable by the Sub-subtenant in respect of HST shall not be deemed to be
consideration for the supply of space under this Sub-sublease or for the provision of any other service by the Sub-sublandlord.
Notwithstanding that HST is not Rent under this Sub-sublease, the Sub-sublandlord shall have the same rights and remedies for
the recovery of such amounts payable as HST as it has for other amounts payable as Basic Rent under this Sub-sublease.

 

    	 

    	-9-

    

 

	4.6	Net
    Sub-sublease

 

The
Sub-subtenant acknowledges and agrees that it is intended that this Sub-sublease shall be a completely carefree and absolutely
net lease for the Sub-sublandlord, except as is otherwise expressly provided in this Sub-sublease, including, without limitation,
Section 4.2(b), and that the Sub-sublandlord shall not be responsible during the Term for any costs, charges, taxes, levies, impositions,
expenses or outlays of any nature whatsoever arising from or relating to the Premises, this Sub-sublease, the use of the Premises
or any services or supplies provided by the Sub-sublandlord hereunder, whether foreseen or unforeseen, ordinary or extraordinary
and whether or not within the contemplation of the parties at the commencement of the Term, except as is otherwise expressly provided
in this Sub-sublease. Any amount and any obligation relating to the Premises or this Sub-sublease which is not expressly declared
in this Sub-sublease to be the responsibility of the Sub-sublandlord shall be the responsibility of the Sub-subtenant to be paid
or performed by or at the Sub-subtenant’s expense.

 

	4.7	Unavoidable
    Delay

 

Whenever
and to the extent that the Sub-sublandlord or the Sub-subtenant shall be unable to fulfill or shall be delayed or restricted in
the fulfilment of any obligation hereunder during the period of such unavoidable delay hereunder in respect of the supply or provision
of any service or utility or the doing of any work or the making of any repairs by reason of being unable to obtain the material,
goods, equipment, service or labour required to enable it to fulfil such obligation, or by reason of any statute or order-in-council
or regulation or order passed or made pursuant thereto or by reason of the order or direction of any administrator, controller,
board, governmental department or officer or other authority or by reason of not being able to obtain any permission or authority
required thereby or by reason of any other cause beyond its control whether of the foregoing character or not, then either the
Sub-sublandlord or the Sub-subtenant, as the case may be, shall be deemed not to be in default in the performance of such covenant
or obligation and any period for the performance of such obligation shall be extended accordingly and the other party to this
Sub-sublease shall not be entitled to compensation for any loss, inconvenience, nuisance or discomfort thereby occasioned, provided
that the foregoing shall in no event be construed so as to relieve the Sub-subtenant of its obligation to pay Rent as it becomes
due.

 

	4.8	Deposit

 

(a)The
parties hereto acknowledge and agree that the Sub-subtenant shall deliver, upon execution of this Sub-sublease, a deposit (the
“Deposit”) in an amount equivalent to the first and last months of Basic Rent and Additional Rent, plus HST,
payable to the Sub-sublandlord, specifically the last month’s rent will be rounded to $18,800 and held until the end of
the Term. A portion of the Deposit shall be applied to the Basic Rent and Additional Rent payable by the Sub-subtenant for the
first month of the Term, and the balance is to be held by the Sub-sublandlord, without interest, as security for the faithful
performance and observance by the Sub-subtenant of all of the terms, covenants and conditions in this Sub-sublease on the Sub-subtenant’s
part to be observed and performed (the “Security Deposit”).

 

    	 

    	-10-

    

 

(b)In
the event of a default on the part of the Sub-subtenant including, without limitation, a default on the part of the Sub-subtenant
with respect to the payment of Basic Rent and/or Additional Rent and/or HST, which is not cured within the applicable cure period,
the Sub-sublandlord, at its option, in addition to any of its other rights and remedies provided for in this Sub-sublease or at
law, may apply the Security Deposit, in whole or in part, on account of any monies becoming due in accordance with the terms of
this Sub-sublease. If the Sub-sublandlord applies the Security Deposit, in whole or in part, the Sub-subtenant shall within 24
hours thereafter remit to the Subtenant an amount, by certified cheque, sufficient to replenish the Security Deposit. If the Sub-sublandlord
transfers or assigns its interest in the Premises, the Sublease and this Sub-sublease, the Sub-sublandlord will be discharged
from any liability to the Sub-subtenant with respect to the Security Deposit if the same is transferred to such transferee or
assignee, provided that such transferee or assignee agrees in writing with the Sub-subtenant that the Security Deposit shall be
held by the transferee or assignee in accordance with the terms of this Sub-sublease. If the Sub-subtenant has faithfully performed
and observed all of the terms, covenants and conditions in this Sub-sublease on the Sub-subtenant’s part to be observed
and performed, the Security Deposit, or any remaining portion thereof, shall be applied to the Basic Rent and the Additional Rent,
plus applicable HST, payable for the last month of the Term.

 

Article
5

common
areas, utilities and services

 

	5.1	Use
    of Common Areas and Facilities

 

In
connection with this Sub-sublease and the ongoing and continuous use and occupation by the Sub-subtenant of the Premises, but
subject to the terms and conditions of the Sublease and this Sub-sublease, the Sub-subtenant shall also be entitled to (and, accordingly,
the Sub-sublandlord shall provide and deliver to the Sub-subtenant) the non-exclusive access to and benefit and use of the common
areas and facilities (the “Common Areas and Facilities”) located on the first and second floors of the Building,
as more particularly described and identified in grey hatching on the plan attached hereto as Schedule B, including, without limitation
and for greater certainty, the patio located outside of the Building identified by area number 5 on the plan of the first floor
of the Building attached hereto as Schedule B. The Sub-subtenant shall have the right at any time during the Term to the use of
the Common Areas and Facilities of the Land and the Building for itself and its officers, agents, employees, servants, contractors,
customers, clients and invitees in common with the Sub-sublandlord, the Sublandlord, other tenants, and their officers, agents,
employees, servants, contractors, customers, clients and invitees. Such use shall be for the purpose of access to the Premises
while using the Premises and such other purposes as may be necessary for the operation of the business of the Sub-subtenant, and
such use shall be subject to and in accordance with this Sub-sublease, the Sublease, the confidentiality agreement made as of
June 10, 2014 between the Sub-sublandlord and the Sub-subtenant (the “Confidentiality Agreement”) and any applicable
laws and regulatory requirements. The regulation, management and general maintenance of the Common Areas and Facilities shall
be under the exclusive control of the Sub-sublandlord. The Sub-subtenant acknowledges and agrees that the Sub-sublandlord reserves
the right to, in its sole and absolute discretion and at its sole cost and expense, change, from time to time, the location, the
size, the purpose and/or the configuration of some or all of the Common Areas and Facilities (the “Common Areas Work”).
The Sub-subtenant agrees to use commercially reasonable efforts to cooperate with the Sub-sublandlord to facilitate the Common
Areas Work and not interfere with such Common Areas Work. Upon written notice from the Sub-sublandlord enclosing a copy of the
revised plan of the Common Areas and Facilities, this Sub-sublease will be automatically amended to refer to such plan for the
purpose of describing the Common Areas and Facilities instead of to the grey hatching on the plan attached hereto as Schedule
B.

 

    	 

    	-11-

    

 

	5.2	Parking

 

Subject
to the Sub-sublandlord’s obligations under Section 24.1 of the Sublease, the Sub-subtenant shall have the exclusive right
at all times during the Term to use for itself and its officers, agents, employees, servants, contractors, customers, clients
and invitees, any 26 parking spaces, determined on a first-come, first-served basis, in the parking area located on the Land outside
of the Building designated as “Parking Spaces” and identified in pink hatching on the plan attached hereto
as Schedule C, the whole free of any additional rent or charge. The Sub-sublandlord agrees to be responsible for the maintenance
of the Parking Spaces.

 

	5.3	Utilities

 

The
Sub-subtenant hereby acknowledges and agrees that, if a significant increase in electricity consumption is identified as a result
of the Sub-subtenant’s use of the Premises, the Sub-sublandlord shall have the option, exercisable in its sole and absolute
discretion by written notice to the Sub-subtenant, to install, at the Sub-subtenant’s sole cost and expense, separate meters
or other measuring devices in the Premises or elsewhere to measure the Sub-subtenants electricity consumption (the “Electricity
Consumption Measuring Work”). The Sub-subtenant agrees to use commercially reasonable efforts to cooperate with the
Sub-sublandlord to facilitate the Electricity Consumption Measuring Work and not interfere with such Electricity Consumption Measuring
Work. The parties agree that, upon notice from the Sub-sublandlord to the Sub-subtenant of the completion of the Electricity Consumption
Measuring Work, the Additional Rent payable by the Sub-subtenant pursuant to Section 4.2 shall include the full cost of the electricity
consumption measured by the meters or other measuring devices installed pursuant to the Electricity Consumption Measuring Work
and shall exclude the Sub-subtenant’s Share of the general electricity cost for the Building.

 

	5.4	Hazardous
    Substances 

 

(a)The
Sub-subtenant agrees to comply with the Sublease, the Sub-sublandlord’s protocols and procedures as the same may be amended
from time to time, and all the applicable laws and regulatory requirements relating to fisheries, the preservation or protection
of the environment and the manufacture, processing, distribution, use, treatment, storage, disposal, discharge, transport or handling
of any substances, materials or waste regulated or prohibited by such laws or regulatory requirements, including pollutants, contaminants,
deleterious substances, dangerous goods or hazardous wastes (collectively, “Hazardous Substances”) through,
in or on the Land.

 

    	 

    	-12-

    

 

(b)The
Sub-sublandlord agrees to comply with the Sublease, the Sub-sublandlord’s protocols and procedures and all the applicable
laws and regulatory requirements relating to fisheries, the preservation or protection of the environment and the manufacture,
processing, distribution, use, treatment, storage, disposal, discharge, transport or handling of any Hazardous Substances through,
in or on the Land.

 

(c)Without
limiting Section 6.1(l) below, if the Sub-subtenant or those for whom it is at law responsible causes or permits a spill or other
release of a Hazardous Substance on, in or under the Land, the Sub-subtenant shall be responsible, at its sole cost and expense,
for the investigation and remediation of the affected area(s) and the Sub-subtenant agrees to indemnify and save harmless the
Sub-sublandlord, its officers, directors, employees and those for whom it is at law responsible, from any and all damages, losses,
costs, orders, fines, charges, expenses, claims, demands, liabilities and obligations with respect to such spill or release of
the Hazardous Substance, except as may be caused by or incurred due to the gross negligence or willful misconduct of the Sub-sublandlord.

 

Article
6

SUB-SUBTENANT’S
COVENANTS

 

	6.1	Sub-subtenant’s Covenants

 

The
Sub-subtenant covenants and agrees with the Sub-sublandlord as follows:

 

	 	(a)	to
    pay the Rent hereby reserved including, without limitation, Basic Rent and Additional Rent, on the days and in the manner
    aforesaid, without deduction or set off, except as may be otherwise provided herein;
	 	 	 
	 	(b)	to
    insure in respect of the Premises for the benefit of the Sub-sublandlord as well as the Sublandlord in respect of those coverages
    listed in Schedule D hereto, all of such insurance shall be as required to be placed by the Sub-sublandlord as tenant under
    the Sublease and shall name the Sublandlord and the Sub-sublandlord; 
	 	 	 
	 	(c)	to
    observe and perform all of the covenants, provisos, conditions and agreements which are to be observed and performed by the
    Sub-sublandlord as tenant under the Sublease as they relate to the Premises, except the Sub-sublandlord’s requirement
    to pay Base Rent and Additional Rent (as such terms are defined in the Sublease) under the Sublease, in which case the obligations
    of the Sub-subtenant are limited to the payment of the Rent as provided in this Sub-sublease;
	 	 	 
	 	(d)	to
    allow the Sublandlord and its agents, servants, invitees and contractors to exercise all rights of entry and inspection and
    rights to carry out works afforded under the provisions of the Sublease;

 

    	 

    	-13-

    

 

	 	(e)	not
    to assign, sublet or part with possession of all or any part of the Premises, including, without limitation, the Sub-sublandlord’s
    FF&E, without the prior written consent of the Sub-sublandlord, which consent (i) shall not be unreasonably withheld or
    delayed, (ii) may be subject to the Sub-sublandlord’s reasonable conditions of compliance by the assignee, sublessee
    or other transferee, as applicable, with the Sublease and this Sub-sublease, and (iii) shall be further subject to obtaining
    the prior written consent of (A) the Sublandlord in accordance with, and subject to the terms of, the Sublease and (B) the
    Lender in accordance with, and subject to the terms of, the Subordination Agreement;
	 	 	 
	 	(f)	not
    to use the Premises for any purpose other than as laboratory and business offices and uses ancillary thereto permitted by
    Applicable Laws and the terms of the Sublease;
	 	 	 
	 	(g)	that
    the Premises shall only be occupied by the Sub-subtenant, its employees and others engaged in carrying on the business of
    the Sub-subtenant, including, without limitation, affiliates, partners and others operating pursuant to contractual terms
    with the Sub-subtenant;
	 	 	 
	 	(h)	that
    all of the provisions of the Sublease to the extent that they relate to the Premises are deemed to be incorporated into this
    Sub-sublease, mutatis mutandis, to the same extent as if all of the covenants to be observed and performed by the Sub-sublandlord
    thereunder as they relate to the Premises (other than the covenants of the Sub-sublandlord to pay Base Rent and Additional
    Rent (as such terms are defined in the Sublease)), were contained in this Sub-sublease as covenants to be observed and performed
    by the Sub-subtenant for the benefit and advantage of the Sub-sublandlord;
	 	 	 
	 	(i)	not
    to make any improvements or modifications to the Premises except in accordance with the provisions of the Sublease and to
    perform, at the Sub-subtenant’s sole cost and expense, all of the obligations of the Sub-sublandlord pursuant to the
    Sublease, including without limitation, pursuant to Section 14.4 thereof, to remove any and all improvements or modifications
    made to the Premises by or on behalf of the Sub-subtenant, to repair and restore all damage caused by such removal and to
    compensate the Sublandlord for any costs incurred and damages suffered by the Sublandlord, all in accordance with the Sublease.
    Notwithstanding the foregoing, the Sub-subtenant shall be allowed to make non-structural and cosmetic alterations to the Premises
    as may be required by the Sub-subtenant without prior approval of the Sub-sublandlord, provided that the same is in compliance
    with the Sublease, and subject to Sublandlord consent;
	 	 	 
	 	(j)	to
    leave the Premises at the end of the Term or the earlier expiry of this Sub-sublease in the condition required pursuant to
    Sections 2.4 and 6.1(i) above; 
	 	 	 
	 	(k)	that
    all of the remedies, rights and powers of the Sublandlord under the provisions of the Sublease are deemed to be incorporated
    into this Sub-sublease, mutatis mutandis, and shall, for the purposes of this Sub-sublease, be the remedies, rights
    and powers of the Sub-sublandlord in the event of any default or breach by the Sub-subtenant of its obligations under this
    Sub-sublease; and

 

    	 

    	-14-

    

 

	 	(l)	except
    with respect to any fraudulent, negligent or unlawful act or omission or wilful misconduct of the Sub-sublandlord or those
    for whom it is at law responsible, to indemnify and save harmless the Sub-sublandlord, its officers, directors, employees
    and those for whom it is at law responsible, from any and all damages, losses, costs, charges, expenses, claims, demands,
    liabilities and obligations, whether under the Sublease or otherwise, with respect to the Premises and the Common Areas and
    Facilities including, without limitation, as a result of a failure by the Sub-subtenant to observe and perform its obligations
    under this Sub-sublease.

 

Article
7

SUB-SUBLANDLORD’S
COVENANTS

 

	7.1	Sub-sublandlord’s
    Covenants

 

Subject
to the Sub-subtenant paying the Rent hereby reserved and observing and performing all of its obligations hereunder and subject
to the terms of the Sublease, the Sub-sublandlord hereby covenants and agrees with the Sub-subtenant as follows:

 

	 	(a)	to
    pay to the Sublandlord the rent and other monies reserved by and in the manner provided for under the Sublease;
	 	 	 
	 	(b)	to
    observe and perform the obligations of the Sub-subtenant under the Sublease (except to the extent that the Sub-subtenant is
    required to observe and perform such obligations in respect of the Premises);
	 	 	 
	 	(c)	to
    enforce its rights as tenant under the Sublease in respect of all of the covenants, provisos, conditions and agreements which
    are to be observed and performed by the Sublandlord pursuant to the provisions of the Sublease if the Sub-subtenant provides
    its written approval to such enforcement as same relates to the Premises, provided that the Sub-subtenant will pay to the
    Sub-sublandlord on demand all of the Sub-sublandlord’s reasonable costs, expenses and disbursements incurred in doing
    so as same relate to the Premises only;
	 	 	 
	 	(d)	that
    upon the Sub-subtenant paying the Rent hereby reserved and observing and performing all of its obligations hereunder and subject
    to the terms of the Sublease, the Sub-subtenant shall peacefully and quietly enjoy the Premises for the Term without any interruption,
    hindrance or disturbance by the Sub-sublandlord or any other person or persons claiming under it;
	 	 	 
	 	(e)	except
    with respect to any fraudulent, negligent or unlawful act or omission or wilful misconduct of the Sub-subtenant or those for
    whom it is at law responsible, to indemnify and save harmless the Sub-subtenant from and against all actions, proceedings,
    damages, losses, costs, charges, expenses, claims, demands, liabilities and obligations arising from any omission by the Sub-sublandlord
    to pay when due the Sub-sublandlord’s rent reserved under the Sublease (unless the Sub-subtenant has failed to pay the
    Rent then due to the Sub-sublandlord under this Sub-sublease) or arising from a breach of any of the Sub-sublandlord’s
    covenants as tenant under the Sublease (other than those required to be performed and observed by the Sub-subtenant with respect
    to the Premises pursuant to the terms of this Sub-sublease);

 

    	 

    	-15-

    

 

	 	(f)	not
    to restore the Premises to base building condition at the expiry or early termination of the Term, except to the extent required
    by the Sublandlord pursuant to the terms of the Sublease; and 
	 	 	 
	 	(g)	to
    promptly provide the Sub-subtenant with a copy of all notices received by the Sub-sublandlord from the Sublandlord to the
    extent that such notices affect the Premises.

 

Article
8

SUBLEASE

 

	8.1	Sublease

 

The
Sub-sublandlord and the Sub-subtenant acknowledge and agree that in relation to the Premises all of the provisions of the Sublease
except as expressly modified or amended by this Sub-sublease are deemed to be incorporated herein, mutatis mutandis, as
if all of the covenants to be observed and performed by the Sub-sublandlord as tenant thereunder were covenants to be observed
and performed by the Sub-subtenant. For greater certainty, the parties agree that for purposes of the covenants to be observed
and performed by the Sub-sublandlord as tenant under the Sublease that are deemed to be covenants to be observed and performed
by the Sub-subtenant hereunder, references to the “Commencement Date” in the Sublease shall be deemed to be references
to the Commencement Date as defined herein. If there is any conflict between a provision of this Sub-sublease and a provision
of the Sublease which would permit the Sub-subtenant to do or cause or be done or suffer or permit any act or thing to be done
which is prohibited by the Sublease, then the provisions of the Sublease shall prevail. The Sub-sublandlord shall have no duty
to perform any obligations of the Sublandlord and shall not be responsible or liable to the Sub-subtenant for any defaults, failure
or delay on the part of the Sublandlord in the performance of any of its obligations to the Sub-subtenant under this Sub-sublease.
However, in the event of any default or failure of performance by the Sublandlord, the Sub-sublandlord shall, upon notice from
the Sub-subtenant and in accordance with subsection 7.1(c), enforce its rights as tenant under the Sublease to cause the Sublandlord
to perform its obligations under the Sublease. The Sub-subtenant acknowledges receipt of a copy of the Sublease. The Sub-sublandlord
hereby represents and warrants to the Sub-subtenant that, as of the date hereof, to the best of the Sub-sublandlord’s knowledge
and without enquiry: (a) the Sub-sublandlord is in good standing under the Sublease and it has not committed any default under,
or breach of, any provision thereof, and (b) the Sublandlord is in good standing under the Sublease and it has not committed any
default under, or breach of, any provision thereof.

 

    	 

    	-16-

    

 

Article
9

NOTICES

 

	9.1	Notice

 

(a)Any
notice, demand, statement or request (in this Section referred to as “notice”) herein required or permitted
to be given under this Sub-sublease shall be in writing and shall be deemed to have been sufficiently and effectually given if
signed by or on behalf of the party giving the notice and delivered in person, transmitted by fax or by email or delivered by
a major international courier company, for next day delivery with charges prepaid, addressed as follows:

 

	 	(i)	if to the Sub-sublandlord:
	 	 	 
	 	 	310 Hunt Club Road East
	 	 	Ottawa, ON K1V 1C1
	 	 	 
	 	 	Attention:
    	Brian
    Foody
	 	 	Fax:
    	613.482.2398
	 	 	Email:
    	brian.foody@iogen.ca

 

	 	(ii)	if to the Sub-subtenant:
	 	 	 
	 	 	Variation Biotechnologies Inc.
	 	 	200 rue Montcalm, Suite 400,
	 	 	Gatineau, Québec, J8Y 3B5
	 	 	 
	 	 	Attention:
    	Egidio
    Nascimento
	 	 	Fax:
    	888-391-2579
	 	 	E-mail:
    	enascimento@vbivaccines.com

 

(b)Any
such notice, if delivered: (i) by fax or email, shall be deemed to have been given on the day on which it was transmitted if transmitted
on a business day prior to 5:00 p.m., Toronto time, at the place of receipt or, otherwise, on the next following business day;
(ii) by personal delivery, shall be deemed to have been given when delivered in fact; or (iii) by courier, shall be deemed to
have been given on the next business day following the date it was sent.

 

(c)Any
party hereto may at any time change its address for service from time to time by giving notice to the other party in accordance
with this Section 9.1.

 

Article
10

miscellaneous

 

	10.1	Registration
    of Sub-sublease

 

Neither
the Sub-subtenant nor anyone on the Sub-subtenant’s behalf or claiming under the Sub-subtenant shall register this Sub-sublease
or any other instrument or notice pertaining to this Sub-sublease against the Land without the prior consent of the Sublandlord.

 

    	 

    	-17-

    

 

	10.2	Waiver

 

If
either the Sub-sublandlord or Sub-subtenant excuses or condones any default of the other of any obligation under this Sub-sublease,
no waiver of such obligation shall be implied as a result of any continuing or subsequent default.

 

	10.3	Partial
    Payment of Rent

 

Acceptance
by the Sub-sublandlord of a lesser amount than the monthly payment of Rent herein stipulated and any endorsement or statement
on any cheque or documentation accompanying any payment of Rent shall not be deemed an acknowledgement of full payment or an accord
and satisfaction, and the Sub-sublandlord may accept such payment without prejudice to the Sub-sublandlord’s right to recover
the balance of such Rent or to pursue any other remedy provided in this Sub-sublease.

 

	10.4	Brokers

 

Each
party shall be responsible for the payment of any and all brokerage fees, consulting fees, commissions or finder’s fees
due to any broker or agent that it retained in connection with this Sub-sublease, each pursuant to such party’s agreement
with its respective broker or agent, and hereby agrees to save harmless the other party in connection therewith. 

 

	10.5	Power
    and Authority

 

The
Sub-sublandlord represents and warrants that the Sub-sublandlord has full power and authority to enter into and grant this Sub-sublease
subject only to the consent of the Sublandlord to be obtained in accordance with Section 10.9 below and the terms of the Sublease.

 

	10.6	No
    Partnership

 

Notwithstanding
any provisions of this Sub-sublease, nothing in this Sub-sublease shall be construed as constituting any partnership, joint venture
or any other relationship other than the relationship of Sub-sublandlord and Sub-subtenant.

 

	10.7	Entire
    Agreement

 

This
Sub-sublease, the Sublease and the Head Lease incorporated herein, the Subordination Agreement, and the Confidentiality Agreement
contain all the terms and conditions of the agreement between the Sub-sublandlord and the Sub-subtenant relating to the matters
herein provided and supersede all previous agreements or representations of any kind made by either party in reference thereto.

 

	10.8	Counterparts

 

This
Sub-sublease may be executed in several counterparts and by facsimile transmission of an originally executed document, each of
which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

 

    	 

    	-18-

    

 

	10.9	Sublandlord’s
    Consent

 

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

 

	10.10	Lender’s
    Consent

 

The
entering into of this Sub-sublease and the agreement resulting therefrom is expressly conditional upon the Sub-sublandlord obtaining
the Lender’s written consent to the granting of this Sub-sublease by the Sub-sublandlord to the Sub-subtenant in accordance
with Section 3 of the Subordination Agreement. Should the preceding condition not be met on or before the Commencement Date, this
Sub-sublease shall be null and void and of no further force or effect and the parties shall have no further obligations hereunder.

 

	10.11	Confidentiality

 

The
parties hereto agree that they are bound by the term and condition of the Confidentiality Agreement which continues to be in full
force and effect.

 

	10.12	Signage

 

If
the Sub-sublandlord chooses, in its sole discretion, to install a multi-tenant sign outside the Building, it will offer the Sub-subtenant
the option to contribute to such sign.

 

[Remainder
of page left intentionally blank]

 

    	 

    	-19-

    

 

 

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

 

	 	IOGEN
    CORPORATION
	 	 
	 	by 	/s/ Brian Foody
	 	Name:	Brian Foody
	 	Title:	President and Chief Executive Officer
	 	 	 
	 	I have authority to bind the Corporation

 

	 	VARIATION
    BIOTECHNOLOGIES INC.
	 	 
	 	by	/s/ J. R. Baxter
	 	Name:	J. R. Baxter
	 	Title:	CEO
	 	 	 
	 	I have authority to bind the Corporation

 

Signature
Page – Corporate Centre Sub-Sublease

 

    	 

    	-20-

    

 

Schedule
A

 

DESCRIPTION
OF LAND

 

Part
of Lot 6, Concession 2 (Rideau Front), Geographic Township of Gloucester, City of Ottawa, designated as Part 1 on Plan 4R-20416.

 

Being
the whole of PIN 04055-0683 (LT)

 

Land
Titles Division of Ottawa (No. 4).

 

    	 

    	-21-

    

 

Schedule
B

 

PREMISES,
Common Areas and Facilities

 

See
attached plan.

 

 

    	 

    	-22-

    

 

Schedule
C

 

PARKING
SPACES

 

See
attached plan.

 

    	 

    	-23-

    

 

Schedule
D

 

REQUIRED
INSURANCE COVERAGE

 

1
Throughout the Term, the Sub-subtenant shall take out and keep in force, at his own cost, the following insurance policies with
insurance companies authorized to carry on business in the Province of Ontario and having an AM Best rating of A- or better:

 

1.1
Commercial General liability insurance covering the business operated in the Premises or with respect to the Premises as well
as their occupation and use, including coverage for property damage, bodily injury including death in an amount of $5,000,000
per occurrence and any other higher amount reasonably required by the Sub-sublandlord from time to time. This policy shall include
blanket contractual liability, severability of liability and cross liability, non-owned automobile and Sub-subtenants’ legal
liability insurance in an mount of a minimum of $2,000,000 per occurrence;

 

1.2
Property insurance on an all-risks form. The policy shall be on a replacement cost basis and include coverage for damage arising
from flood and earthquake for the full replacement value of the machinery, furniture and other movable effects, equipment, inventory,
fixtures and leasehold improvements located in the Premises, including $250,000 of Sub-sublandlord’s property in your care.
The Sub-sublandlord shall be included as a loss payee as their interest may appear. The policy shall contain a waiver of subrogation
rights which the insurers of the Sub-subtenant may have against the Sub-sublandlord, Sub-Landlord, the Landlord and the persons
under the care and control of the Sub-sublandlord, Sub-Landlord, the Landlord;

 

1.3
Business Interruption and extra expense coverage with sufficient limits for Sub-subtenant to sustain its business operation at
this location for a period of twelve (12) months;

 

1.4
Comprehensive boiler and machinery insurance policy to cover damage to property, on a replacement cost basis and Business interruption
covering all pressure, mechanical, electrical and electronic equipment.

 

1.5
Environmental impairment liability insurance with limits of not less than two million ($2,000,000) dollars per claim and annual
aggregate.

 

2
The Sub-subtenant shall not do or commit any act upon the Premises or bring into or keep upon the Premises any article which shall
affect the fire risk or increase the rate or premium of insurance or other insurance on the Building.

 

3
Should the rate or premium of any type of insurance on the Improvements be increased by reason of any violation of this Agreement
by the Sub-subtenant, the Sub-Landlord, in addition to all other remedies, may pay the amount of such increase, and the amount
so paid shall become due and payable immediately by the Sub-subtenant and collectible as Additional Rent.

 

4
Should any insurance policy be canceled by the Sub-sublandlord’s insurer by reason of the use and occupation of the Premises
or any part thereof by the Sub-subtenant, unless the Sub-subtenant shall have replaced such insurance prior to the effective date
of its termination, the Sub-sublandlord may at its option (in addition to any other remedies hereunder) terminate the lease by
leaving at the Premises a notice in writing of its intention so to do and thereupon rent and other payments for which the Sub-subtenant
is liable hereunder shall be apportioned and paid in full to the effective date of termination under such notice and the Sub-subtenant
shall forthwith deliver up vacant possession of the Premises to the Sub-sublandlord and/or the Sub-sublandlord may at its option
and at the expense of the Sub-subtenant enter upon the Premises and rectify the situation causing such cancellation.

 

    	 

    	-24-

    

 

5
Other Requirements:

 

5.1
The Commercial General Liability policy shall name each of the Sub-sublandlord, Sub-Landlord, the Landlord, the Crown, and the
mortgage creditor of the Landlord as an additional insured person. Each insurance policy will state that 30 calendar days’
written notice shall be given to the Sub-sublandlord in the event of cancellation of the insurance coverage during the term on
this Agreement.

 

5.2
The Sub-subtenant shall furnish to the Sub-sublandlord certificates attesting to the issuance and maintenance in force of all
insurance policies required hereunder as well as prior to the expiration of a policy, the renewals thereof.

 

5.3
The Sub-subtenant is responsible for deciding if additional insurance coverage is necessary to fulfill its obligations under the
Agreement and to ensure compliance with any applicable law; any additional insurance coverage is at the Sub-subtenant’s
expense.

 

    	 

    	-25-Exhibit 10.1

 

COMBIMATRIX CORPORATION

 

SERIES E 6% CONVERTIBLE PREFERRED STOCK REPURCHASE AGREEMENT

 

THIS SERIES E 6% CONVERTIBLE PREFERRED STOCK REPURCHASE AGREEMENT (this “Agreement”) is made as of February 4, 2016 (the “Effective Date”), by and between CombiMatrix Corporation, a Delaware corporation (the “Company”), and the holders of Series E Preferred Stock set forth on signature pages hereto (each, a “Preferred Stockholder” and collectively, the “Preferred Stockholders”). The Company and the Preferred Stockholders are referred to, each as a “Party,” and collectively as the “Parties.”

 

RECITALS

 

A.            As of the date of this Agreement, the Preferred Stockholders hold an aggregate of 2,185.76925 shares of Series E 6% Convertible Preferred Stock of the Company (the “Shares”).

 

B.            The Company has filed a registration statement (“Registration Statement”) with the Securities and Exchange Commission for an underwritten public offering (the “Public Offering”), part of the proceeds of which the Company intends to use to fund the Payment (as defined below).

 

C.            The Preferred Stockholders now desire and voluntarily agree to (i) sell all of their Shares to the Company at the Closing (as hereinafter defined) and (ii) consent to the Public Offering and waive certain restrictive and anti-dilution rights in connection therewith, and the Company desires to purchase such Shares from the Preferred Stockholders at the Closing.

 

AGREEMENT

 

For good and valuable consideration, the receipt and sufficiency of which are acknowledged by the Parties, the Parties agree as follows:

 

1.             Consideration for Repurchase Right, Consent and Waivers.  As consideration for the repurchase right, consent and waivers granted hereunder, within three (3) business days after this Agreement is fully executed, the Company will pay each Preferred Stockholder, by cash, check or wire transfer of immediately available funds, a dollar amount equal to (x) the number of Shares held by such Preferred Stockholder multiplied by (y) $300.00.

 

2.             Sale and Purchase.  At the Closing, the Preferred Stockholders agree to sell, and the Company agrees to buy, the Shares at a price of $1,000.00 per Share.

 

3.             Closing and Delivery.  The closing of the sale and purchase of the Shares under this Agreement (the “Closing”) shall take place within one (1) business day after the closing of the Public Offering (the date of the Closing, the “Closing Date”).  If the Closing does not occur by the earlier of May 1, 2016 and 15 Business Days following the effective date of the Registration Statement (or, in the event of an SEC review of the Registration Statement after the Company’s Annual Report on Form 10-K is filed with the SEC, by the earlier of June 15, 2016 and 15 Business Days following the effective date of the Registration Statement), this Agreement shall terminate and have no further force and effect or liability to any of the Parties.

 

4.             Delivery.  At the Closing, (i) the Preferred Stockholders will deliver all of their Shares to the Company in consideration of, and in exchange for, the Company’s payment to the Preferred

 

 

Stockholders of $1,000.00 per Share, or an aggregate of $2,185,769.25, by wire transfer in United States dollars and immediately available funds (the “Payment”) for the Shares and (ii) the each Preferred Stockholder shall execute an Assignment Separate from Certificate, the form of which is attached hereto as Exhibit A.  Immediately following the Closing, the Company shall cancel the Shares and none of the Preferred Stockholders will have any rights as a Company stockholder with respect to the Shares, including without limitation, any right to receive any dividends or other distributions with respect to the Shares.

 

5.             Preferred Stockholders’ Representations and Warranties. Each of the Preferred Stockholders represents and warrants to the Company, as of the date hereof and as of the Closing Date, as follows:

 

(a)           Right, Title, and Interest. Such Preferred Stockholder is the lawful owner, beneficially and of record, of the Shares held by it, has good and marketable title to such Shares, and has all right, title and interest in and to such Shares. Such Preferred Stockholder has full right and authority to deliver such Shares in connection with this Agreement. Such Shares are free and clear of all liens, encumbrances, equities, security interests, and any other claims whatsoever except for the Company’s repurchase option and securities law transfer restrictions on certain of such Shares. Such Shares are not subject to any agreement, understandings, trusts, or other collaborative arrangements or understandings with any other party. No third party has any right to prevent such Preferred Stockholder from transferring such Shares as contemplated by this Agreement, and no third party has any right to receive notice of transfer of such Shares as contemplated by this Agreement. Such Preferred Stockholder’s delivery of such Shares in accordance with the terms of this Agreement will pass full and valid title to such Shares free and clear of any security interests, claims, liens and any other encumbrance. Such Preferred Stockholder is not aware of any basis for any disputes or challenges regarding such Preferred Stockholder’s ownership of such Shares or regarding such Preferred Stockholder’s sale of such Shares to the Company, and no such disputes or challenges are pending or alleged.

 

(b)           Authority. Such Preferred Stockholder has sole dispositive and voting authority over the Shares held by it, and has all requisite legal authority to execute and deliver this Agreement, to sell and deliver such Shares, and to carry out and perform all of such Preferred Stockholder’s obligations under this Agreement.  This Agreement has been duly executed and delivered by such Preferred Stockholder, constitutes such Preferred Stockholder’s valid and binding obligation, and is enforceable in accordance with its terms.  Such Preferred Stockholder has the capacity to act on such Preferred Stockholder’s own behalf and on behalf of all who might claim through such Preferred Stockholder to bind them to the terms and conditions of this Agreement.  Such Preferred Stockholder has never filed any petition under applicable bankruptcy laws, no such petition has ever been filed involuntarily against such Preferred Stockholder, no custodian or receiver has ever been appointed with respect to such Preferred Stockholder’s assets, and such Preferred Stockholder is not now insolvent (before giving effect to the sale of such Shares).  The execution, delivery and performance of this Agreement by such Preferred Stockholder will not result in a violation of, or constitute a default under, any will, trust, agreement or other instrument to which such Preferred Stockholder is a party or is bound.  There is no pending or threatened litigation involving such Preferred Stockholder’s Shares or to which such Shares may be subject.

 

(c)           Value of Shares. Such Preferred Stockholder acknowledges that the purchase price of the Shares has been established by negotiation between the Company and the Preferred Stockholders.  There is no assurance that the purchase price reflects the current value of the Shares.  Such Preferred Stockholder acknowledges that the market value of the Shares held by it could, in the future and depending on the success of the Company’s business, become worth substantially more than the price at which the Company is purchasing such Shares from such Preferred Stockholder.  The Company has not

 

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made any representation to such Preferred Stockholder about the advisability of this decision or the potential future value of the Shares.  SUCH PREFERRED STOCKHOLDER ACKNOWLEDGES THAT, BY SELLING SUCH SHARES TO THE COMPANY PURSUANT TO THIS AGREEMENT, SUCH PREFERRED STOCKHOLDER WILL NOT BENEFIT FROM ANY FUTURE APPRECIATION IN THE MARKET VALUE OF SUCH SHARES.

 

(d)           Adequacy of Payment. SUCH PREFERRED STOCKHOLDER IS AN “ACCREDITED INVESTOR” AS SUCH TERM IS DEFINED UNDER REGULATION D OF THE SECURITIES ACT OF 1933, AND HAS SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND BUSINESS MATTERS AS TO BE CAPABLE OF EVALUATING THE MERITS AND RISKS OF SELLING SUCH SHARES TO THE COMPANY AT THE PRICE AND ON THE TERMS SET FORTH IN SECTION 2 HEREOF, AND THAT THE COMPANY HAS MADE NO REPRESENTATION OR WARRANTY TO SUCH PREFERRED STOCKHOLDER WITH RESPECT TO THE FAIR MARKET VALUE OF SUCH SHARES.  SUCH PREFERRED STOCKHOLDER AGREES THAT THE AMOUNT OF THE PAYMENT IS FAIR AND EQUITABLE TO SUCH PREFERRED STOCKHOLDER.  SUCH PREFERRED STOCKHOLDER ACKNOWLEDGES THAT ARM’S-LENGTH NEGOTIATIONS BETWEEN THE COMPANY AND THE PREFERRED STOCKHOLDERS RESULTED IN SUCH PREFERRED STOCKHOLDER AGREEING TO THE SUFFICIENCY OF THE PAYMENT IN EXCHANGE FOR THE COMPANY’S PURCHASE OF SUCH SHARES.

 

(e)           No Legal, Tax, or Investment Advice. Such Preferred Stockholder has had an opportunity to review the federal, state, local, and foreign tax consequences of such Preferred Stockholder’s sale of the Shares held by it to the Company.  Such Preferred Stockholder understands that nothing in this Agreement or in any other materials presented to such Preferred Stockholder in connection with the Company’s purchase of such Shares or such Preferred Stockholder’s other agreements under this Agreement constitutes legal, tax, or investment advice.  Such Preferred Stockholder has consulted such legal, tax, and investment advisors as such Preferred Stockholder, in such Preferred Stockholder’s sole discretion, has deemed necessary or appropriate in connection with the sale of such Shares under this Agreement.  SUCH PREFERRED STOCKHOLDER ACKNOWLEDGES THAT SUCH PREFERRED STOCKHOLDER WILL BE RESPONSIBLE FOR SUCH PREFERRED STOCKHOLDER’S OWN TAX LIABILITY THAT MAY ARISE AS A RESULT OF SUCH PREFERRED STOCKHOLDER’S SALE OF SUCH SHARES TO THE COMPANY AND THE OTHER TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

(f)            Information.  Such Preferred Stockholder has been given full and adequate access to information relating to the Company, including its business, finances and operations as such Preferred Stockholder has deemed necessary or advisable in connection with such Preferred Stockholder’s evaluation of the sale of the Shares held by it to the Company.  Such Preferred Stockholder has not relied upon any representations or statements made by either the Company or its agents, officers, directors, employees or stockholders in regard to this Agreement or the basis thereof.

 

6.             Company’s Representations and Warranties. The Company hereby represents and warrants to the Preferred Stockholders, as of the date hereof and as of the Closing Date, as follows:

 

(a)           Power and Authority.  The Company has the requisite corporate power and authority to enter into and perform this Agreement and the transactions contemplated herein in accordance with the terms hereof and the execution, delivery and performance of this Agreement by it and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action and no further consent or authorization of it, its board of directors or stockholders is required.

 

(b)           Valid and Binding Obligation.  The Agreement constitutes the Company’s valid and legally binding obligation, enforceable in accordance with its terms except (a) as limited by

 

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applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)           Power and Authority/Good Standing.  The Company is a company incorporated, validly existing and in good standing under the laws of the State of Delaware with full power and authority to enter into and perform all of its obligations under this Agreement.

 

(d)           No Violation. The execution, delivery and performance of the Agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not and will not violate or conflict with any provision of the Company’s certificate of incorporation or bylaws, each as amended to date.

 

(e)           Actions Pending.  There is no action, suit, claim, investigation, arbitration, alternate dispute resolution proceeding or other proceeding pending which questions the validity of this Agreement or any of the transactions contemplated hereby. There are no outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator or governmental or regulatory body against the Company which, individually or in the aggregate, could reasonably be expected to question the validity of this Agreement or any of the transactions contemplated hereby.

 

7.             Consent and Waivers.

 

(a)           Reference is made to those certain Securities Purchase Agreements dated as of September 28, 2012, March 19, 2013, May 3, 2013 and February 13, 2015, respectively, by and among the Company, Alpha Capital Anstalt and the other parties thereto (collectively, the “SPAs”), those certain Registration Rights Agreements dated as of September 28, 2012 and May 3, 2013, respectively, by and among the Company, Alpha Capital Anstalt and the other parties thereto (collectively, the “RRAs”), those certain Warrants issued by the Company on October 1, 2012, March 20, 2013, May 6, 2013, June 28, 2013, February 20, 2015 and April 29, 2015 (collectively, the “Warrants”) and that certain Certificate of Designation of Preferences, Rights and Limitations of Series E 6% Convertible Preferred Stock filed with the Delaware Secretary of State on February 13, 2015 (the “Certificate of Designation” and, together with the SPAs, the RRAs and the Warrants, the “Transaction Documents”).  Capitalized terms used in this Section 7 and not otherwise defined in this Agreement shall have the meanings assigned to them in the SPAs, RRAs, Warrants and Certificate of Designation.

 

(b)           The Preferred Stockholders acknowledge that the Company has filed a Registration Statement (SEC File No. 333-208704) on Form S-1 (including any amendments, supplements or prospectuses thereto filed or to be filed, or any communications made in connection therewith, the “Registration Statement”) for a public offering of units, with each unit consisting of (i) one share of Series F preferred stock convertible into a number of shares of common stock at a conversion price that will be below both the exercise price of the Warrants and the conversion price of the Shares and (ii) one warrant exercisable for a number of shares of common stock at an exercise price per share that will be below both the exercise price of the Warrants and the conversion price of the Shares.  The agreements and transactions contemplated by the Registration Statement (including the filing with the State of Delaware of the Certificate of Designation of Preferences, Rights and Limitations of Series F Convertible Preferred Stock, the issuance of securities of the Company thereunder and under the Registration Statement and the issuance of securities of the Company upon conversion or exercise of the Series F convertible preferred stock and warrants) are collectively referred to herein as the “Offering”.  Alpha Capital Anstalt acknowledges that it continues to hold Warrants to purchase 27,323 shares (on a post-split basis) of common stock that were issued on May 6, 2013 and Warrants to purchase 27,323 shares (on a post-split basis) of common stock that were issued on June 28, 2013.

 

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(c)           The Preferred Stockholders hereby (i) consent to any and all filings of the Registration Statement; (ii) consent to and approve the Offering; (iii) agree that this Agreement, such Offering and the filings of the Registration Statement do not constitute a breach or default under the SPAs, RRAs, Warrants or Certificate of Designation; (iv) waive any restrictions set forth in Section 4.13 of the SPAs with respect to the Offering and the filings of the Registration Statement; (v) waive any “most favored nation” rights (including any right to notice with respect to the Offering) set forth in Section 4.18 of the SPAs solely with respect to the Offering and this Agreement; (vi) waive any antidilution rights or rights to price adjustments or share adjustments set forth in the Certificate of Designation, solely in connection with the Offering; (vii) waive any rights set forth in the RRAs to be included in the Registration Statement; (viii) waive any other prohibitions in the SPAs, RRAs, Warrants and Certificate of Designation against this Agreement, the Offering and the filings of the Registration Statement; and (ix) agree that the consent and waivers contained herein shall continue to apply to the Offering and the filings of the Registration Statement notwithstanding any change to the structuring, terms or pricing of the Offering after the date hereof, provided that the Offering does not constitute a Variable Rate Transaction as defined in Section 4.13(b) of the SPA dated February 13, 2015.

 

(d)           Except as specifically set forth herein or in any other waivers provided by the Parties prior to the date hereof, all of the terms, provisions and conditions of the Transaction Documents (as amended prior to the date hereof), shall remain in full force and effect and the rights and obligations of the parties with respect thereto shall, except as specifically provided herein or in any other waivers provided by the Parties prior to the date hereof, be unaffected by this Agreement and shall continue as provided in such documents.  The waivers provided for under this Agreement only apply to the Offering and Registration Statement, and any other offering of securities of the Company (other than a modification of the terms of the Offering that does not result in the Offering constituting a Variable Rate Transaction, and other than Exempt Issuances as defined in the Transaction Documents) shall require a separate waiver agreement from the Preferred Stockholders if so required by the terms of the Transaction Documents.

 

8.             Obligation Absolute.  Subject to Section 3 hereof, the Company’s obligation to repurchase the Shares in accordance with the terms hereof is absolute and unconditional, irrespective of any action or inaction by a Preferred Stockholder to enforce the same, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by such Preferred Stockholder or any other Person of any obligation to the Company or any violation or alleged violation of law by such Preferred Stockholder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to repurchase such Shares.  The Company may not refuse to repurchase the Shares based on any claim that such Preferred Stockholder or anyone associated or affiliated with such Preferred Stockholder has been engaged in any violation of law, agreement or for any other reason, unless an injunction from a court, on notice to Preferred Stockholder, restraining or enjoining such repurchase shall have been sought and obtained, and the Company posts a surety bond for the benefit of such Preferred Stockholder in the amount of 150% of the Stated Value of such Shares which are subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the underlying dispute and the proceeds of which shall be payable to such Preferred Stockholder to the extent it obtains judgment.

 

9.             Disclosure. The Company shall file a current report on Form 8-K on or before 4:30 p.m., New York City time, on the fourth Business Day after the date hereof, in the form required by the Securities Exchange Act of 1934, relating to the transactions contemplated by this Agreement.

 

10.          No Representations. None of the Parties has relied upon any representations or statements made by the other Parties that are not specifically set forth in this Agreement.

 

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11.          Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined in accordance with the provisions of the SPA dated February 13, 2015.

 

12.          Entire Agreement. This Agreement constitutes the full and entire understanding among the Parties with regard to the Shares. With respect to the Shares, none of the Parties will be liable or bound to the other Parties in any manner by any representations, warranties, or covenants except as specifically set forth in this Agreement.

 

13.          Counterparts. This Agreement may be executed in counterparts, each of which will be enforceable against the Parties actually executing such counterparts and all of which together will constitute one instrument. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

14.          Section Headings. The section headings, titles, and subtitles contained in this Agreement are for convenience only and are not to be relied upon in construing the terms of this Agreement.

 

15.          Severability. If any provision of this Agreement, or the application of any such provision, becomes or is declared by a court of competent jurisdiction to be illegal, void, or unenforceable, then the remainder of this Agreement will continue in full force and effect and the application of such provision to other persons or circumstances will be interpreted so as reasonably to effect the intent of the Parties as expressed in this Agreement. The Parties further agree to replace any such illegal, void, or unenforceable provision with a legal, valid, and enforceable substitute provision that will achieve, to the greatest extent possible, the economic, business, and other purposes of the illegal, void, or unenforceable provision.

 

16.          Successors and Assigns. This Agreement and the Company’s rights, duties, benefits, and obligations under this Agreement will inure to the benefit of, and be enforceable by, the Company’s successors and assigns. This Agreement and the Preferred Stockholders’ rights, duties, benefits, and obligations under this Agreement will inure to the benefit of, and be enforceable by, the Preferred Stockholders’ successors and assigns.

 

17.          Voluntary Execution of Agreement. This Agreement is executed voluntarily, without any duress or undue influence on the part of any Party or on behalf of any Party. Each Party acknowledges that it (i) has read this Agreement, (ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of its own choice or that it has voluntarily declined to seek such counsel, (iii) understands the terms and consequences of this Agreement; and (iv) is fully aware of the legal and binding effect of this Agreement.

 

18.          Independent Nature of Preferred Stockholder’s Obligations and Rights.  The obligations of the Preferred Stockholder under this Agreement are several and not joint with the obligations of any other Preferred Stockholder, and the Preferred Stockholder shall not be responsible in any way for the performance of the obligations of any other Preferred Stockholders under any this Agreement.  Nothing contained herein, and no action taken by the Preferred Stockholder pursuant hereto, shall be deemed to constitute the Preferred Stockholders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Preferred Stockholders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement and the Company acknowledges that, to the best of its knowledge, the Preferred Stockholders are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement. The Company and each Preferred Stockholder confirms that such Preferred Stockholder has

 

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independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. Each Preferred Stockholder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Preferred Stockholder to be joined as an additional party in any proceeding for such purpose.

 

(Signature pages follow)

 

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IN WITNESS WHEREOF, the parties have executed this Series E 6% Convertible Preferred Stock Repurchase Agreement as of the date first set forth above.

 

	
 
    	
COMPANY
    
	
 
    	
 
    
	
 
    	
COMBIMATRIX CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
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Mark McDonough
    
	
 
    	
 
    	
President and Chief   Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
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EXHIBIT A

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns, contributes, and transfers unto CombiMatrix Corporation (the “Company”) a total of:            shares of the Company’s Series E 6% Convertible Preferred Stock, standing in the undersigned’s name on the books of said Company, represented by Certificate No.        and does hereby irrevocably constitute and appoint the Company’s Secretary to transfer the said securities on the books of the Company with full power of substitution in the premises.

 

 

	
Dated:                ,   2016

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