Document:

ex10_31.htm

    
      

    

    Exhibit
10.31

    
 

    ***Sections
4 and 5 of this Amendment have been omitted pursuant to a request for
confidential treatment and have been filed separately with the U.S. Securities
and Exchange Commission.

    

    Amendment
#5

    to

    License
Agreement 2003-03-0433

    

    

    This
amendment #5 (“Amendment #5”) is made by and between OcuSense, Inc., a Delaware
corporation, having an address at 12707 High Bluff Drive, Suite 200, San Diego,
California 92130 (“LICENSEE”) and The Regents of The University of California, a
California corporation having its statewide administrative offices at 1111
Franklin Street, Oakland, California 94607-5200 (“UNIVERSITY”), represented by
its San Diego campus having an address at University of California, San Diego,
Technology Transfer & Intellectual Property Services, Mail-code 0910, 9500
Gilman Drive, La Jolla, California 92093-0910 (“UCSD”).

    

    This
Amendment #5 is effective on June 29, 2007 (“Amendment #5 Effective
Date”).

    

    RECITALS

    

    WHEREAS, LICENSEE and
UNIVERSITY previously entered into License Agreement #5003-03-0433 (“License”)
as of March 12, 2003 (as amended 6/9/03, 9/5/05, 7/7/06 and 10/9/06) for the
commercial development of UCSD invention disclosure SD2002-180 titled, “Volume
Independent Tear Film Osmometer” (“Invention”);

    

    WHEREAS, in its efforts to
develop market opportunities for the Invention, LICENSEE has requested certain
revisions and/or clarifications to the License so as to facilitate LICENSEE’s
establishment of meaningful distribution channels and strategic partnerships,
furthering the likelihood of realizing broad commercial markets for
Invention;

    

    WHEREAS, UNIVERSITY is
desirous that LICENSEE achieve the broadest possible commercial success with
Invention and therefore UNIVERSITY is amenable to clarifying the terms of
LICENSEE’s agreement via the following amendments to License.

    

    Therefore,
it is hereby agreed that in consideration of a one-time license amendment fee of
seven thousand five hundred dollars (US$7,500.00) payable upon execution of this
Amendment #5:

    

    
      	
               
      

            	
              1.

            	
              A
      new Paragraph 1.2(m) is added to the License to
  read:

            

    

    

    “use and
products for the measurement and/or analysis of biomarkers or other analytes in
tears; for the diagnosis and/or management of diseases, but excluding the fields
described in any of Paragraphs 1.2(a) through 1.2(l).”

    

    
      	
               
      

            	
              2.

            	
              Paragraph
      1.5 of the License is amended in its entirety to read as
      follows:

            

    

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    

    

    “”Patent Rights” shall include
all of the patent rights listed in the table below, and: (i) any conversions or
utility patent applications claiming priority thereto; (ii) any continuing
applications or utility patent applications with respect thereto, including
reissues, extensions, substitutions, continuations, divisions, and
continuation-in-part applications to the extent the claims in such
continuation-in-part applications are supported in the specification; (iii) any
corresponding foreign applications or patents; (iv) and all patents filed by
UNIVERSITY having claims which are supported by specifications of any of the
foregoing.”

    

    

    
      	
              UCSD
      Case #

            	
              Application
      #

            	
              Patent
      #

            	
              Inventor(s)

            	
              Assignee

            	
              Parent

            
	
              2002-180-1

            	
              60/311,198

            	
              NA

            	
              Sullivan

            	
              UC

            	
              NA

            
	
              2002-180-2

            	
              60/401,432

            	
              NA

            	
              Sullivan

            	
              UC

            	
              NA

            
	
              2002-180-3

            	
              10/400,617

            	
              7,017,394

            	
              Sullivan

            	
              UC

            	
              conversion
      dash 1 and 2

            
	
              2002-180-4

            	
              10/722,084

            	
              7,051,569

            	
              Sullivan
      /Donsky

            	
              Joint
      UC/Ocusense

            	
              CIP
      of dash 3

            
	
              2002-180-5

            	
              10/810,780

            	
              7,111,502

            	
              Sullivan
      /Donsky

            	
              UC

            	
              CIP
      of dash 3

            
	
              2002-180-6

            	
              11/358,986

            	
              abandoned

            	
              Sullivan

            	
              UC

            	
              CIP
      of dash 3

            
	
              2002-180-7
      (2006-296)

            	
              60/912,129

            	
              NA

            	
              Sullivan

            	
              UC

            	
              CIP
      of dash 6

            
	
              2002-180-7
      (2006-296)

            	
              11/735,935

            	 
      	
              Sullivan

            	
              UC

            	
              CIP
      of dash 8

            
	
              2002-180-8

            	
              11/327,884

            	
              7,204,122

            	
              Sullivan
      /Donsky

            	
              Joint
      UC/Ocusense

            	
              div
      of dash 4

            
	
              2007-211-1

            	
              60/869,543

            	 
      	
              Sullivan
      /Donsky

            	
              Joint
      UC/Ocusense

            	
              CIP
      of dash 3

            

    

    

    

    
      	
               
      

            	
              3.

            	
              A
      new Paragraph 2.2(e) is added to the License to read as
      follows:

            

    

    

    “For so
long as LICENSEE is licensed by UNIVERSITY under Section 2.1 above, if LICENSEE
grants a license to a third party under its own interest in any of the Patent
Rights licensed hereunder that are jointly owned by the parties, LICENSEE shall
also concurrently grant a sublicense under this Paragraph 2.2 under UNIVERSITY’s
interest in such jointly-owned Patent Rights.”

    

    ***Sections
4 and 5 in their entirety have been omitted pursuant to a request for
confidential treatment and have been filed separately with the U.S. Securities
and Exchange Commission.

    

    6.       A
new Paragraph 7.7 is added to the License to read as follows:

    

    “Notwithstanding
Paragraph 7.1 above, this Agreement will terminate upon written notice given by
UNIVERSITY in its sole discretion, upon the filing of a claim in a court or
government agency seeking a determination that any portion of UNIVERSITY’s
Patent Rights is valid or unenforceable where the filing is by the LICENSEE, a
third party on behalf of the LICENSEE, or a third party at the written urging of
the LICENSEE; provided, however, that if any third party files such a claim on
behalf of LICENSEE (not at the written urging of LICENSEE) and LICENSEE
cooperates reasonably, as requested by the UNIVERSITY, to oppose such claim,
then such filing by the third party shall not be grounds for termination; and
further provided, however, that the right of termination set forth in this
Paragraph 7.7 shall not apply with respect to (i) interference proceedings with
respect to Patent Rights and patents or patent applications of LICENSEE or its
Affiliates, (ii) any good faith correspondence between LICENSEE and the United
States Patent and Trademark Office in the course of LICENSEE’s prosecution of
its interest in the Patent Rights or its prosecution of  Patent Rights
for which UNIVERSITY has granted LICENSEE prosecution rights and/or (ii)
disputes regarding inventorship.  For clarity, the parties acknowledge
that the filing of a claim or counterclaim by a third party in response to a
suit or threatened suit for enforcement of the Patent Rights shall not be
grounds for termination under this Paragraph 7.7.”

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    IN WITNESS WHEREOF, both
UNIVERSITY and LICENSEE have executed this Amendment #5, in duplicate originals,
by their respective and duly authorized officers on the day and year
written.

    

    
      	
              OCUSENSE
      INC.

            	 	
              THE
      REGENTS OF THE

            	 
	 
      	 
      	 	
              UNIVERSITY
      OF CALIFORNIA

            	 
	 
      	 
      	 	 
      	 
      	 
	 
      	 
      	 	 
      	 
      	 
	
              By

            	
              “Eric
      Donsky”

            	 	
              By

            	
              ”Jane
      Moores”

            	 
	
              (signature)

            	 	
              (signature)

            	 
	 
      	 
      	 	 
      	 
      	 
	
              Name:

            	
              Eric
      Donsky

            	 	
              Name:

            	
              Jane
      Moores, Ph.D.

            	 
	
              Title:

            	
              CEO

            	 	
              Title:

            	
              Interim
      Director

            	 
	 
      	 
      	 	 
      	
              Technology
      Transfer & Intellectual

            	 
	 
      	 
      	 	 
      	
              Property
      Services

            	 
	 
      	 
      	 	 
      	 
      	 
	 
      	 
      	 	 
      	 
      	 
	
              Date  7/9/07

            	 	Date  7/2/07	 

    

     

    
3ex10_32.htm

    
      

    

    Exhibit
10.32

     

    MULTI
TENANT OFFICE

    STANDARD
BUILDING LEASE

     

     

     

    PENYORK
PROPERTIES III INC.

     

     

    - and
-

     

     

    OCCULOGIX,
INC.

     

    
      ___________________

       

      LEASE

      ___________________

    

     

     

     

     

    
      	
              Project:

            	
              2600
      Skymark Avenue, Mississauga,
Ontario

            

    

     

    
      	
              Premises:

            	
              Suites
      103 and 201, Building 9

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    TABLE OF
CONTENTS

     

     

    Section

     

     

    
      	
              1.

            	
              LEASE
      SUMMARY

            

    

     

    
      	
              2.

            	
              DEFINITIONS

            

    

     

    
      	
              3.

            	
              INTENT
      OF LEASE

            

    

     

    
      	
               
      

            	
              3.1

            	
              Net
      Lease

            

    

     

    
      	
              4.

            	
              LEASE
      OF PREMISES

            

    

     

    
      	
               
      

            	
              4.1

            	
              Premises

            

    

    
      	
               
      

            	
              4.2

            	
              Term

            

    

    
      	
               
      

            	
              4.3

            	
              Fixturing
      Period

            

    

    
      	
               
      

            	
              4.4

            	
              Acceptance
      of Premises

            

    

    
      	
               
      

            	
              4.5

            	
              Licence
      to Use Common Facilities

            

    

    
      	
               
      

            	
              4.6

            	
              Quiet
      Enjoyment

            

    

    
      	
               
      

            	
              4.7

            	
              Fixturing
      of Premises

            

    

     

    
      	
              5.

            	
              RENT

            

    

     

    
      	
               
      

            	
              5.1

            	
              Tenant
      to Pay

            

    

    
      	
               
      

            	
              5.2

            	
              Basic
      Rent

            

    

    
      	
               
      

            	
              5.3

            	
              Additional
      Rent

            

    

    
      	
               
      

            	
              5.4

            	
              Deemed
      Rent and Allocation

            

    

    
      	
               
      

            	
              5.5

            	
              Monthly
      Payments of Additional Rent

            

    

     

    
      	
              6.

            	
              TAXES

            

    

     

    
      	
               
      

            	
              6.1

            	
              Taxes
      Payable by Tenant

            

    

    
      	
               
      

            	
              6.2

            	
              Determination
      of Tenant’s Taxes

            

    

    
      	
               
      

            	
              6.3

            	
              Business
      Taxes and Sales Taxes

            

    

    
      	
               
      

            	
              6.4

            	
              Tax
      Bills and Assessment Notices

            

    

    
      	
               
      

            	
              6.5

            	
              Contest
      of Realty Taxes

            

    

     

    
      	
              7.

            	
              OPERATION
      OF PROJECT

            

    

     

    
      	
               
      

            	
              7.1

            	
              Operation
      of Project by Landlord

            

    

    
      	
               
      

            	
              7.2

            	
              Tenant’s
      Payment of Operating Costs

            

    

    
      	
               
      

            	
              7.3

            	
              Adjustments
      to Operating Costs

            

    

     

    
      	
              8.

            	
              USE
      OF PREMISES

            

    

     

    
      	
               
      

            	
              8.1

            	
              Use
      of Premises

            

    

    
      	
               
      

            	
              8.2

            	
              Conduct
      of Business

            

    

    
      	
               
      

            	
              8.3

            	
              Tenant’s
      Fixtures

            

    

    
      	
               
      

            	
              8.4

            	
              Signs

            

    

    
      	
               
      

            	
              8.5

            	
              Waste
      Remova

            

    

    
      	
               
      

            	
              8.6

            	
              Pest
      Control

            

    

    
      	
               
      

            	
              8.7

            	
              Waste
      and Nuisance

            

    

    
      	
               
      

            	
              8.8

            	
              Compliance
      with Laws

            

    

    
      	
               
      

            	
              8.9

            	
              Deliveries

            

    

    
      	
               
      

            	
              8.10

            	
              Window
      Coverings

            

    

    
      	
               
      

            	
              8.11

            	
              Prohibited
      Uses

            

    

     

    
      	
              9.

            	
              SERVICES
      AND UTILITIES

            

    

     

    
      	
               
      

            	
              9.1

            	
              Utilities

            

    

    
      	
               
      

            	
              9.2

            	
              Heating
      and Air Conditioning

            

    

    
      	
               
      

            	
              9.3

            	
              Non-Liability
      of Landlord

            

    

    
      	
               
      

            	
              9.4

            	
              Landlord’s
      Suspension of Utilities

            

    

    
      
         

      

      
        - i -

        
          

        

      

      
         

      

    

    10.           MAINTENANCE,
REPAIRS AND ALTERATIONS

     

    
      	
               
      

            	
              10.1

            	
              Maintenance
      and Repairs of Premises

            

    

    
      	
               
      

            	
              10.2

            	
              Approval
      of Repairs and Alterations

            

    

    
      	
               
      

            	
              10.3

            	
              Repair
      According to Landlord’s Notice

            

    

    
      	
               
      

            	
              10.4

            	
              Notice
      by Tenant

            

    

    
      	
               
      

            	
              10.5

            	
              Ownership
      of Leasehold Improvements

            

    

    
      	
               
      

            	
              10.6

            	
              Construction
      Liens

            

    

    
      	
               
      

            	
              10.7

            	
              Landlord’s
      Repairs

            

    

    
      	
               
      

            	
              10.8

            	
              Special
      Services

            

    

     

    
      	
              11.

            	
              END
      OF TERM

            

    

     

    
      	
               
      

            	
              11.1

            	
              Vacating
      of Possession

            

    

    
      	
               
      

            	
              11.2

            	
              Removal
      of Trade Fixtures

            

    

    
      	
               
      

            	
              11.3

            	
              Removal
      of Leasehold Improvements

            

    

    
      	
               
      

            	
              11.4

            	
              Overholding
      by Tenant

            

    

     

    
      	
              12.

            	
              DAMAGE
      AND DESTRUCTION

            

    

     

    
      	
               
      

            	
              12.1

            	
              Insured
      Damage to Premises

            

    

    
      	
               
      

            	
              12.2

            	
              Uninsured
      Damage and Last Two Years

            

    

    
      	
               
      

            	
              12.3

            	
              Damage
      to Project

            

    

    
      	
               
      

            	
              12.4

            	
              Restoration
      of Premises or Project

            

    

    
      	
               
      

            	
              12.5

            	
              Determination
      of Matters

            

    

     

    
      	
              13.

            	
              INSURANCE
      AND INDEMNITY

            

    

     

    
      	
               
      

            	
              13.1

            	
              Landlord’s
      Insurance

            

    

    
      	
               
      

            	
              13.2

            	
              Tenant’s
      Effect On Other Insurance

            

    

    
      	
               
      

            	
              13.3

            	
              Tenant’s
      Insurance

            

    

    
      	
               
      

            	
              13.4

            	
              Landlord’s
      Right to Place Tenant’s Insurance

            

    

    
      	
               
      

            	
              13.5

            	
              Landlord’s
      Non-Liability

            

    

    
      	
               
      

            	
              13.6

            	
              Indemnity
      of Landlord

            

    

    
      	
               
      

            	
              13.7

            	
              Landlord’s
      Employees and Agents

            

    

     

    
      	
              14.

            	
              ASSIGNMENT,
      SUBLETTING AND CHANGE OF CONTROL

            

    

     

    
      	
               
      

            	
              14.1

            	
              Consent
      Required

            

    

    
      	
               
      

            	
              14.2

            	
              Obtaining
      Consent

            

    

    
      	
               
      

            	
              14.3

            	
              Landlord’s
      Option

            

    

    
      	
               
      

            	
              14.4

            	
              Terms
      of Transfer

            

    

    
      	
               
      

            	
              14.5

            	
              Effect
      of Transfer

            

    

    
      	
               
      

            	
              14.6

            	
              No
      Advertising of Premises

            

    

    
      	
               
      

            	
              14.7

            	
              Mortgage
      of Lease

            

    

    
      	
               
      

            	
              14.8

            	
              Corporate
      Tenant

            

    

    
      	
               
      

            	
              14.9

            	
              Assignment
      by Landlord

            

    

     

    
      	
              15.

            	
              STATUS
      AND SUBORDINATION OF LEASE

            

    

     

    
      	
               
      

            	
              15.1

            	
              Status
      Statement

            

    

    
      	
               
      

            	
              15.2

            	
              Subordination

            

    

    
      	
               
      

            	
              15.3

            	
              Tenant’s
      Failure to Comply

            

    

    
      	
               
      

            	
              15.4

            	
              Registration

            

    

     

    
      	
              16.

            	
              DEFAULT
      AND REMEDIES

            

    

     

    
      	
               
      

            	
              16.1

            	
              Default
      and Remedies

            

    

    
      	
               
      

            	
              16.2

            	
              Interest
      and Costs

            

    

    
      	
               
      

            	
              16.3

            	
              Bankruptcy
      and Insolvency

            

    

    
      	
               
      

            	
              16.4

            	
              Distress
      and Tenant’s Property

            

    

    
      	
               
      

            	
              16.5

            	
              Intentionally
      Deleted

            

    

    
      	
               
      

            	
              16.6

            	
              Rent
      Deposit

            

    

    
      	
               
      

            	
              16.7

            	
              Remedies
      to Subsist

            

    

    
      	
               
      

            	
              16.8

            	
              Impossibility
      of Performance

            

    

    
      
         

      

      
        - ii -

        
          

        

      

      
         

      

    

    17.           CONTROL
OF PROJECT

     

    
      	
               
      

            	
              17.1

            	
              Landlord’s
      Control

            

    

    
      	
               
      

            	
              17.2

            	
              Alterations
      of the Project

            

    

    
      	
               
      

            	
              17.3

            	
              Use
      of Common Facilities

            

    

    
      	
               
      

            	
              17.4

            	
              Rules
      and Regulations

            

    

    
      	
               
      

            	
              17.5

            	
              Access
      to Premises

            

    

    
      	
               
      

            	
              17.6

            	
              Expropriation

            

    

    
      	
               
      

            	
              17.7

            	
              Landlord’s
      Consent

            

    

     

    
      	
              18.

            	
              MISCELLANEOUS

            

    

     

    
      	
               
      

            	
              18.1

            	
              Notices

            

    

    
      	
               
      

            	
              18.2

            	
              Complete
      Agreement

            

    

    
      	
               
      

            	
              18.3

            	
              Time
      of the Essence

            

    

    
      	
               
      

            	
              18.4

            	
              Applicable
      Law

            

    

    
      	
               
      

            	
              18.5

            	
              Severability

            

    

    
      	
               
      

            	
              18.6

            	
              Section
      Numbers and Headings

            

    

    
      	
               
      

            	
              18.7

            	
              Interpretation

            

    

    
      	
               
      

            	
              18.8

            	
              Successors

            

    

    
      	
               
      

            	
              18.9

            	
              Monetary
      Amounts

            

    
      	 	
              18.10

            	
              Demolition or
      Substantial Alterations

            

    

     

    
      
        
          
            19.          
PRIVACY
POLICY

          

        

      

    

     

    

     

    Schedules

     

    
      	
              "A"
      

            	
              LEGAL
      DESCRIPTION OF PROJECT

            

    

     

    
      	
              "B"
      

            	
              OUTLINE
      PLAN OF PREMISES

            

    

     

    
      	
              "C"
      

            	
              SECURITY
      AGREEMENT - intentionally deleted

            

    

     

    
      	
              "D"
      

            	
              SPECIAL
      PROVISIONS

            

    

     

    
      	
              "E"
      

            	
              EXCLUSIVE
      USES OF OTHER TENANTS

            

    

     

    
      	
              "F"
      

            	
              RENT
      DEPOSIT AGREEMENT

            

    

     

    
      	
              "G"
      

            	
              ENVIRONMENTAL
      QUESTIONNAIRE

            

    

     

    
      	
              "H"
      

            	
              TENANT
      WORK

            

    

    

      
        
           

        

        
          - iii -

          
            

          

        

        
           

        

      

    

     

    THIS LEASE is dated October
17, 2005 and is made,

     

    BETWEEN:

     

    PENYORK
PROPERTIES III INC.

     

    (hereinafter
called “Landlord”)

     

    OF
THE FIRST PART

     

    -and-

     

    OCCULOGIX,
INC.

     

    (hereinafter
called “Tenant”)

     

    OF
THE SECOND PART

     

    1.   
         LEASE
SUMMARY

     

    The
following is a summary of some of the basic terms of this Lease, which are
elaborated upon in the balance of this Lease. This Section 1 is for convenience
and if a conflict occurs between the provisions of this Section 1 and any other
provisions of this Lease, the latter shall govern.

     

    
      	
               
      

            	
              (a)

            	
              Premises:

            	
              being
      comprised of:

            

    

     

    
      	
            	
              (i)

            	
              Suite 103 (“Suite 103
      Premises”) being a portion of the first (1st) floor of Building 9, as shown
      outlined on the floor plan annexed hereto as Schedule “B-1”;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Suite 201 (“Suite 201
      Premises”), being a portion of the second (2nd) floor of Building 9, as
      shown outlined on the floor plan annexed hereto as Schedule
      “B”,

            

    

     

    (collectively,
the “Premises”), of the project municipally known as 2600 Skymark Avenue, Mississauga,
Ontario.

     

    
      	
               
      

            	
              (b)

            	
              Term:
      One (1) year and Six (6)
      months;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Commencement
      Date: February 1,
      2006;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Expiry
      Date: July 31,
      2007;

            

    

     

    
      	  
    	
              (e)

            	
              Basic
      Rent: Subject
      to adjustment in accordance with Section 5.2 and, further, subject to
      Section 3 of Schedule “D”: 

            

    

     

    
      	
              RENTAL
      PERIOD

            	
              RATE
      PER SQ.FT. PER ANNUM OF RENTABLE AREA

            
	
              February
      1, 2006 to July 31, 2007

            	
              $10.00

            

    

    

    
      	
               
      

            	
              (f)

            	
              Rentable
      Area of Premises:

            

    

     

    
      	
               
      

            	
              (i)

            	
              Suite 103 Premises
      containing approximately 1,363 square feet;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Suite 201 Premises
      containing approximately 5,237 square
      feet;

            

    

     

    (collectively
approximately 6,600
square feet) (subject to determination in accordance with Section
2.24);

     

    
      	
               
      

            	
              (g)

            	
              Rent
      Deposit: Twenty Four
      Thousand Six Hundred and Thirty-Four Dollars and Sixty Two Cents
      ($24,634.62), to
      be held by the Landlord in accordance with the provisions of the Rent
      Deposit Agreement;

            

    

     

    
      	
               
      

            	
              (h)

            	
              Use
      of Premises: General business offices for an ophthalmic therapeutic
      company, to the extent permitted by all Laws and to the extent in
      keeping with the standards of a first-class office building, under the
      name Occulogix, Inc. and by no other name whatsoever without the
      Landlord’s prior written consent;

            

      
        
           

        

        
          - 1
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (i)

            	
              Address for Service of
      Notice on Tenant:

            

    

     

    at the
Premises

     

    Address for Service of
Notice on Landlord:

     

    PenYork
Properties III Inc.

    c/o
Bentall Investment Management

    55
University Avenue, Suite 300

    Toronto,
Ontario

    M5 V
2H7

     

    Attention:    
Investment Manager

     

    With a
copy to the Landlord at:

     

    PenYork
Properties III Inc.

    c/o
Bentall Real Estate Services L.P.

    10
Carlson Court, Suite 500

    Etobicoke,
Ontario

    M9W
6L2

     

    Attention:         Vice-President,
Operations

     

    
      	
               
      

            	
              (j)

            	
              Special
      Provisions: See Schedule “D

            

    

     

    
      	
              2.

            	
              DEFINITIONS

            

    

     

    Where
used in this Lease, the following words or phrases shall have the meanings set
forth in the balance of this Article.

     

    2.1                      “Additional
Rent” shall have the meaning given to it in Section 5.3.

     

    2.2                      “Architect”
means an architect, engineer, surveyor or other qualified person appointed by
the Landlord from time to time.

     

    2.3                      “Basic
Rent” shall have the meaning given to it in Section 5.2.

     

    2.4                      “Building”
means the building in which the Premises are located.

     

    2.5                      “Business
Hours” means normal business hours for the Project as determined by Landlord
from time to time and which, unless otherwise determined by Landlord, shall be
from 8:00 a.m. to 6:00 p.m., Monday through Friday, excluding holidays, and
subject to applicable Laws.

     

    2.6                      “Commencement
Date” shall have the meaning given to it in subsection 1(c).

     

    2.7                      “Common
Facilities” means: (a) the Project, excluding only Leasable Areas, Storage
Areas, and premises at or below grade whether leased or not, used for sports,
fitness or other recreational purposes, and including, without limitation: (i)
all areas, facilities, systems, improvements, furniture, fixtures and equipment
in or on the Project; (ii) the lands forming part of the Project; and (iii)
parking areas and facilities, if any, and other service areas and facilities, if
any; and (b) all lands, areas, facilities, systems, improvements, furniture,
fixtures and equipment serving or benefiting the Project, whether or not located
within the Project, to the extent that the same are designated or intended by
Landlord to be part of the Common Facilities from time to time.

     

    2.8                      “Environmental
Legislation” means all statutes, laws, ordinances, codes, rules, regulations,
orders, notices and directives, now or at any time hereafter in effect, made or
issued by any municipal, provincial or federal government, or by any department,
agency, board or office thereof, or by any board of fire insurance underwriters
or any other agency or source whatsoever, regulating, relating to or imposing
liability or standards of conduct concerning any matter which may be relevant to
the use or occupancy of the Project or any part thereof or the conduct of any
business or activity in, on, under or about the Project or any part thereof, or
any material, substance or thing which may at any time be in, on, under or about
the Project or any part thereof or emanate therefrom.

     

    2.9                      “Expiry
Date” shall have the meaning given to it in subsection 1(d).

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

     

    2.10           
“Fiscal Year”
means the period used by Landlord for fiscal purposes in respect of the Project.
Unless otherwise determined by Landlord by written notice to Tenant at any time
or times, each Fiscal Year shall be a calendar year. In the event of a change in
the Fiscal Year, or with respect to a partial Fiscal Year at the beginning or
end of the Term, all appropriate adjustments resulting from a Fiscal Year being
shorter or longer than twelve (12) months shall be made.

    

    2.11           
“Hazardous Materials” means any substance or thing or mixture of them which
alone, or in combination, or in concentrations, are flammable, corrosive,
reactive or toxic or which might cause adverse effects or be deemed detrimental
to living things or to the environment (including, but not limited to, any
pollutant, contaminant, toxic or hazardous substance, such as by way of example,
urea formaldehyde, asbestos, polychlorinated biphenyl, pesticides, mold, mildew,
mycotoxins or microbial growths or any other substance the removal, manufacture,
preparation, generation, use, maintenance, storage, transfer, handling or
ownership of which is subject to applicable Laws.

     

    2.12           
“Landlord’s Work” - intentionally deleted.

     

    2.13           
“Laws” means all statutes, regulations, by-laws, orders, rules, requirements and
directions of all governmental authorities having jurisdiction.

     

    2.14           
“Lease” means this Lease including all of the schedules attached
hereto.

     

    2.15           
“Lease Year” means each consecutive period of three hundred sixty-five (365)
days (or three hundred sixty-six (366) days in the case of a Lease Year which
includes the month of February in a leap year), except that the first Lease Year
shall commence on the Commencement Date and end on the day before the
anniversary of the first day of the first full month of the Term; each
successive Lease Year shall commence on the anniversary of the first day of the
first full month of the Term.

     

    2.16           
“Leasable Areas” means all areas and spaces of the Project to the extent
designated or intended from time to time by Landlord to be leased to tenants,
whether leased or not, but excluding any parking areas and facilities, Storage
Areas, and premises at or below grade.

     

    2.17

     

    
      
        	
              	
                (a)

              	
                “Operating
      Costs” means the aggregate of all expenses and costs of every kind for
      each fiscal period designated by Landlord, as determined in accordance
      with reasonable principles and without duplication, incurred by or on
      behalf of Landlord with respect to the operation, maintenance, repair,
      replacement and management of the Project, including structural repairs
      and replacements, and all insurance relating to the Project, provided that
      if the Project is less than one hundred (100%) percent completed or
      occupied during the whole of any fiscal period, Operating Costs shall be
      adjusted to mean the amount obtained by adding to the actual Operating
      Costs during such fiscal period such additional costs as would have been
      incurred, as determined by Landlord acting reasonably, if the Project had
      been one hundred (100%) percent completed and occupied. For clarification,
      Landlord shall be entitled to adjust upward only those amounts which may
      vary depending on occupancy and in no event shall this provision entitle
      Landlord to recover more costs than Landlord actually incurs in respect of
      any adjusted item or require Tenant to pay in respect of such adjusted
      item more than Tenant would have had to pay had the Project been one
      hundred (100%) percent completed and occupied. Without in any way limiting
      the generality of the foregoing, Operating Costs shall include all costs
      in respect of the following:

              

      

    

     

    
      
        	
              	
                (i)

              	
                all
      remuneration, including wages and fringe benefits, of employees directly
      engaged in the operation, maintenance, repair, replacement and management
      of the Project;

              

      

    

     

    
      	
            	
              (ii)

            	
              heating,
      ventilating, air conditioning and humidity control of the Project and fire
      sprinkler maintenance and monitoring, if any, of the
    Project;

            

    

     

    
      	
            	
              (iii)

            	
              cleaning,
      janitorial services, window cleaning and waste
  removal;

            

    

     

    
      	
            	
              (iv)

            	
              operation,
      maintenance, repair and replacements of elevators and escalators, if
      any;

            

    

     

    
      	
            	
              (v)

            	
              all
      utilities supplied to the Project including, without limitation, water,
      gas, electricity and sewer charges, excluding those charged directly to
      tenants of the Project;

            

    

    

      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

    

     

    
      
        	
              	
                (vi)

              	
                landscaping
      and maintenance of all outside areas, including snow and ice clearing and
      removal and salting of driveways and parking areas and of sidewalks
      adjacent to the Project;

              

      

    

     

    
      
        	
              	
                (vii)

              	
                depreciation
      or amortization, over a reasonable period of time in accordance with
      reasonable principles, of the costs, including capital costs, of all
      improvements, furnishings, fixtures, equipment, machinery, systems and
      facilities constructed or installed in or used in connection with the
      Project and interest on the undepreciated cost of all items in respect of
      which depreciation or amortization is included herein at two (2%) percent
      in excess of the prime rate of interest charged by Landlord’s bank at
      Toronto as of the first day of each Fiscal
Year;

              

      

    

     

    
      
        	
              	
                (viii)

              	
                all
      insurance which Landlord obtains and the cost of any deductible amounts
      payable by Landlord in respect of any insured risk or
    claim;

              

      

    

     

    
      
        	
              	
                (ix)

              	
                policing,
      supervision, security and traffic
control;

              

      

    

     

    
      
        	
              	
                (x)

              	
                the
      cost of repairs and replacements to, and maintenance of, the Project
      including structural maintenance, repairs, improvements and replacements
      (with replacements of a capital nature being treated in accordance with
      the provisions hereof applicable to capital costs), and the cost of all
      supplies, machinery, equipment, facilities, systems and property installed
      therein or used in connection therewith, and all repairs and replacements
      to and maintenance thereof;

              

      

    

     

    
      
        	
              	
                (xi)

              	
                all
      costs in the nature of Operating Costs in respect of areas, services and
      facilities outside the Project, such as sidewalks and boulevards, off-site
      utilities and other service connections, and in respect of areas, services
      and facilities shared by users of the Project and users of any other
      property, to the extent Landlord performs or contributes to the same as a
      result of its ownership of the
Project;

              

      

    

     

    
      
        	
              	
                (xii)

              	
                engineering,
      accounting, legal and other consulting and professional services related
      to Common Facilities;

              

      

    

     

    
      
        	
              	
                (xiii)

              	
                business
      taxes, if any, on Common
Facilities;

              

      

    

     

    
      	
            	
              (xiv)

            	
              capital
      taxes in respect of Landlord’s ownership or other interest in the Project,
      namely any tax or taxes exigible under any provincial or federal
      legislation based upon or computed by reference to the paid-up capital or
      place of business of Landlord as determined for the purposes of such tax
      or based upon or computed by reference to the taxable capital employed in
      Canada, or any similar tax levied, imposed or assessed in the future in
      lieu thereof or in addition thereto by any governmental
      authority;

            

    

     

    
      
        	
              	
                (xv)

              	
                Sales
      Taxes payable by Landlord on the purchase of goods and services included
      in Operating Costs (excluding any such Sales Taxes which are available to
      and claimed by Landlord as a credit or refund in determining Landlord’s
      net tax liability on account of Sales Taxes, but only to the extent that
      such Sales Taxes are included in Operating
  Costs);

              

      

    

     

    
      
        	
              	
                (xvi)

              	
                the
      fair rental value of space occupied by Landlord for management,
      supervisory or administrative purposes relating to the Project;
      and

              

      

    

     

    
      
        	
              	
                (xvii)

              	
                a
      management fee of five (5%) percent of gross amounts received or
      receivable by Landlord in respect of the Project for all items, including
      all such items as are included in the Lease as Rent, assuming full
      occupancy and disregarding any reduction, limitation, deferral or
      abatement of any amounts in the nature of
Rent.

              

      

    

     

    
      
        	
                (b)

              	
                Operating
      Costs, however, shall be reduced by the following to the extent actually
      received by Landlord:

              

      

    

     

    
      	
               

            	
              (i)

            	
              proceeds
      of insurance and damages received by Landlord from third parties to the
      extent of costs otherwise included in Operating
  Costs;

            

    

     

    
      	
            	
              (ii)

            	
              contributions
      from parties other than tenants of the Project, if any, in respect of
      Operating Costs, such as contributions made by parties for sharing the use
      of Common Facilities, but not including rent or fees charged directly for
      the use of any Common Facilities such as parking fees and rent for Storage
      Areas; and

            

      
        
           

        

        
          - 4
-

          
            

          

        

        
           

        

      

    

     

    
      	
            	
              (iii)

            	
              amounts
      in the nature of Excess Costs, as defined in subsection 7.3(a), to the
      extent received by Landlord from tenants of the
  Project.

            

    

     

    
      
        (c)                     
Operating
Costs, however, shall exclude the following:

      

    

     

    
      	
               
      

            	
              (i)

            	
              expenses
      incurred by Landlord in respect of other tenants’ leasehold improvements;
      and

            

    

     

    
      	
            	
              (ii)

            	
              repairs
      or replacements to the extent that the cost of the same is recovered by
      Landlord pursuant to original construction
  warranties.

            

    

     

    
      	
              2.18

            	
              “Premises”
      shall have the meaning given to it in Section
  4.1.

            

    

     

    
      	
              2.19

            	
              “Project”
      means those lands described in Schedule “A” hereto and all buildings,
      structures, improvements, equipment and facilities of any kind erected or
      located thereon from time to time, as such lands, buildings, structures,
      improvements, equipment and facilities may be expanded, reduced or
      otherwise altered by Landlord in its sole discretion from time to
      time.

            

    

     

    
      	
              2.20

            	
              “Proportionate
      Share” means a fraction which has as its numerator the Rentable Area of
      the Premises and which has as its denominator the aggregate Rentable Area
      of Leasable Areas within the Project, or such portion or portions of the
      Leasable Areas within the Project to which Landlord, acting reasonably
      shall allocate such cost of which Tenant is to pay its Proportionate
      Share, subject to adjustment pursuant to subsections 7.3(b) and
      7.3(c).

            

    

     

    
      	
              2.21

            	
              “Realty
      Taxes” means all taxes, rates, duties, levies, fees, charges, local
      improvement rates, levies and assessments whatever (“Taxes”), whether
      municipal, provincial, federal or otherwise, which may be levied, assessed
      or charged against or in respect of the Project or any part thereof or any
      fixtures, equipment or improvements therein, or against Landlord in
      respect of any of the same or in respect of any rental or other
      compensation receivable by Landlord in respect of the same, and including
      all Taxes which may be incurred by or imposed upon Landlord or the Project
      in lieu of or in addition to the foregoing including, without limitation,
      any Taxes on or in respect of real property rents or receipts as such (as
      opposed to a tax on such rents as part of the income of Landlord) any
      commercial concentration levy in respect of the Project, and any licence
      fee measured by rents or other charges payable by occupants of space in
      the Project.

            

    

     

    
      	
              2.22

            	
              “Rent”
      shall have the meaning given to it in Section
  5.1.

            

    

     

    
      	
              2.23

            	
              “Rent
      Deposit Agreement” means the rent deposit agreement, if any, attached
      hereto.

            

    

     

    
      	
              2.24

            	
              “Rentable
      Area” of premises shall be the Usable Area of such premises plus the
      relevant proportion, as determined by Landlord, of all areas not leased to
      any one tenant such as, without limitation, hallways, elevator lobbies,
      ground floor lobbies, washrooms, mechanical and service rooms. Every
      Rentable Area shall be as determined by Landlord from time to time and
      each such determination shall be binding upon the parties
      hereto.

            

    

     

    
      	
              2.25

            	
              “Sales
      Taxes” means all business transfer, multi-stage sales, sales, use,
      consumption, value-added or other similar taxes imposed by any federal,
      provincial or municipal government upon Landlord, or Tenant, or in respect
      of this Lease, or the payments made by Tenant hereunder or the goods and
      services provided by Landlord hereunder including, without limitation, the
      rental of the Premises and the provision of administrative services to
      Tenant hereunder.

            

    

     

    
      	
              2.26

            	
              “Storage
      Areas” means all areas, if any, designated by Landlord from time to time
      to be used by tenants exclusively or primarily for storage
      purposes.

            

    

     

    
      	
              2.27

            	
              “Tenant’s
      Work” shall have the meaning as set out on Schedule “H” attached
      hereto.

            

    

     

    
      	
              2.28

            	
              “Term”
      shall have the meaning given to it in Section
  4.2.

            

    

     

    
      	
            	
              2.29

            	
              “Usable
      Area” when applied to the Premises or any Leasable Areas means the area
      measured from the interior face of glass in exterior walls and windows,
      from the exterior face of all walls and windows dividing any Leasable
      Areas from Common Facilities, and from the centre line of all interior
      walls separating any Leasable Areas from other Leasable Areas, all without
      deduction for any space occupied by structures, columns, beams, conduits,
      ducts or projections of any kind, and all without deduction for the
      recessing of any entrance way or boundary wall from the lease line, but
      excluding therefrom the area occupied by elevator shafts and building
      standard stairwells, and their enclosing walls, which do not serve
      exclusively a tenant occupying premises on more than one
      floor.

            

      
        
           

        

        
          - 5
-

          
            

          

        

        
           

        

      

    

     

    
      	
              3.

            	
              INTENT OF
      LEASE

            

    

     

    3.1       Net Lease

     

    It is the
intent of the parties hereto that, except as expressly herein set out, this
Lease be absolutely net to Landlord and Landlord not be responsible for any
expenses or obligations of any kind whatsoever in respect of the Premises or the
Project.

     

    
      4.              
 LEASE OF
PREMISES

    

     

    4.1                       Premises

     

    Landlord
hereby leases to Tenant and Tenant hereby leases from Landlord those premises
(“Premises”) being part of the Project and shown outlined on the plans attached
hereto as Schedules “B” and “B-1”. The purpose of Schedules “B” and “B-1” is to
show the approximate location of the Premises and its contents are not intended
as a representation as to the precise size or dimensions of the Premises or any
other aspects of the Project. The Premises shall extend from the upper surface
of the structural subfloor to the lower surface of the structural ceiling within
the boundaries of the Usable Area of the Premises. The Premises shall exclude
the exterior faces of all perimeter walls, windows and doors of the Premises,
notwithstanding the manner in which Rentable Area is measured.

     

    4.2                     
 Term

     

    The term
of this Lease (the “Term”) shall be for the period described as the Term in
subsection 1(b) hereof, commencing on the Commencement Date and ending on the
Expiry Date, both dates as described in subsections l (c) and (d).

     

    4.3                       Fixturing
Period

     

    From the
later of: (i) Tenant’s execution and delivery to Landlord of this Lease; (ii)
Tenant’s delivery to Landlord of insurance certificate(s) evidencing the
requisite insurance coverage under this Lease, (the “Commencement Date of the
Fixturing Period”), the Tenant shall be entitled to possession of Suite 103
Premises until the date preceding the Commencement Date in order to fixture
Suite 103 Premises for the Tenant’s business and, thereafter, if Tenant has
completed its fixturing, Tenant may be permitted continued occupancy of Suite
103 in order to commence carrying on business in Suite 103 Premises (“Fixturing
Period”). During the Fixturing Period, Tenant shall not be obligated to pay
Basic Rent, Operating Costs including utilities, or Realty Taxes but shall be
liable for all other costs and obligations including the costs of any additional
services in accordance with this Lease for which Tenant will continue to be
obligated to pay, and Tenant shall be subject to all the other terms and
conditions of this Lease insofar as they are applicable including, without
limitation, the obligation to maintain insurance, and the provisions relating to
the liability of Tenant for its acts and omissions, and the acts and omissions
of its servants, employees, agents, contractors, invitees, concessionaires and
licensees and the indemnification of Landlord and others under this
Lease.

     

    For
clarity, as of the date hereof, the Tenant occupies the Suite 201 Premises under
a sublease agreement with the current tenant of the Suite 201 Premises and until
the Commencement Date hereof shall be bound by the lease
thereunder.

     

    4.4                       Acceptance
of Premises

     

    Tenant
shall accept the Premises in the state and condition in which they are received
from Landlord and Tenant’s entering into possession of the Premises shall be
conclusive evidence of the acceptance by Tenant of the condition and state of
repair of the Premises.

     

    4.5                       Licence
to Use Common Facilities

     

    Subject
to all other relevant provisions of this Lease, Landlord grants to Tenant the
non­exclusive licence during the Term to use for their intended purposes, in
common with others entitled thereto, such portions of the Common Facilities as
are reasonably required for the use and occupancy of the Premises during
Business Hours and such other hours as the Common Facilities are open for use,
as determined by Landlord from time to time.

     

    
      
        
           

        

        
          - 6
-

          
            

          

        

        
           

        

      

    

     

    4.6                      Quiet
Enjoyment

     

    Subject
to Tenant’s complying with all of the terms of this Lease, Tenant may peaceably
possess and enjoy the Premises for the Term without interruption by Landlord or
any person claiming through Landlord.

     

    4.7                      Fixturing
of Premises

     

    By not
later than the Commencement Date, Tenant shall fully finish, furnish, fixture
and staff the whole of the Premises and shall commence its business upon the
whole of the Premises.

     

    
      	
              5.

            	
              RENT

            

    

     

    5.1                       Tenant
to Pay

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      shall pay in lawful money of Canada at such address as shall be designated
      from time to time by Landlord Basic Rent and Additional Rent (all of which
      is herein sometimes referred to collectively as “Rent”) as herein provided
      without any deduction, set-off or abatement whatsoever, Tenant hereby
      agreeing to waive any set-off rights it may have under any statute or at
      law. Subject to subsection 5.1(b), on the Commencement Date and the first
      day of each Fiscal Year thereafter and at any time during any Fiscal Year
      when required by Landlord, Tenant shall deliver to Landlord as requested
      by Landlord post-dated cheques for all payments of Basic Rent and
      estimates by Landlord of Additional Rent or any portions thereof payable
      during the balance of such Fiscal
Year.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      anything contained in this Lease to the contrary, provided Tenant in
      actual physical occupation of and actively and diligently conducting
      business in the whole of Premises is Occulogix, Inc., Tenant shall not be
      required to submit post-dated Rent cheques to Landlord in accordance with
      the provisions of the preceding paragraph until the earlier to occur of:
      (i) Landlord’s issuance of a notice of default to Tenant in accordance
      with the provisions of this Lease; and (ii) the third (3rd) instance of
      Tenant becoming late with the payment of Rent during the Term, whereupon
      Tenant shall immediately deliver to Landlord post-dated Rent cheques for
      each month then remaining in the Rental Year (and thereafter Tenant shall
      deliver twelve (12) post-dated cheques to Landlord at the beginning of
      each subsequent Rental Year).

            

    

     

    5.2
                      Basic
Rent

     

    Subject
to Section 3 of Schedule “D” to this Lease, commencing on the Commencement Date,
Tenant shall pay to Landlord a fixed minimum annual rent (‘Basic Rent”) for each
Lease Year of the Term in the annual amount(s) described as Basic Rent in
subsection 1(e), to be paid in equal monthly instalments, as described as Basic
Rent in subsection 1(e), in advance on the first day of each month during the
Term. On the Commencement Date, if it is other than the first day of a calendar
month, Tenant shall pay to Landlord for such partial month Basic Rent computed
on a per diem basis. If an amount per square foot is specified in the
description of Basic Rent in subsection 1(e), then the Basic Rent is intended to
be such amount per square foot of Rentable Area of the Premises per annum, and
the Basic Rent shall be subject to adjustment based upon the Rentable Area of
the Premises determined pursuant to Section 2.24. Within thirty (30) days after
such adjustment, if any, being made, Tenant shall pay to Landlord any deficiency
in previous payments of Basic Rent and Additional Rent and, if Tenant is not in
default under the terms of this Lease, the amount of any overpayment by Tenant
of Basic Rent and Additional Rent shall be paid to Tenant or credited to the
account of Tenant.

     

    5.3
                      Additional
Rent

     

    In
addition to Basic Rent, Tenant shall pay to Landlord, or as Landlord shall
direct, all other amounts as and when the same shall be due and payable pursuant
to the provisions of this Lease or pursuant to any other obligation in respect
of the Premises, all of which shall be deemed to accrue on a per diem basis; all
of such amounts are herein sometimes referred to as “Additional Rent”. Tenant
shall promptly deliver to Landlord upon request evidence of due payment of all
payments of Additional Rent required to be paid by Tenant
hereunder.

     

    5.4
                      Deemed
Rent and Allocation

     

    If Tenant
defaults in payment of any Rent (whether to Landlord or otherwise) as and when
the same is due and payable hereunder, Landlord shall have the same rights and
remedies against Tenant upon such default as if such sum or sums were rent in
arrears under this Lease. Landlord may allocate payments received from Tenant
among items of Rent then due and payable by Tenant. No acceptance by Landlord of
payment by Tenant of any amount less than the full amount payable to Landlord,
and no endorsement or direction on any cheque or other written instruction or
statement respecting any payment by Tenant shall be deemed to constitute payment
in full or an accord and satisfaction of any obligation of Tenant.

     

    
      
        
           

        

        
          - 7
-

          
            

          

        

        
           

        

      

    

     

    
      	
              5.5

            	
              Monthly
      Payments of Additional Rent

            

    

     

    Landlord
may from time to time by written notice to Tenant estimate or re-estimate any
amount(s) payable by Tenant to Landlord hereunder including without limitation,
amounts in respect of Operating Costs, Realty Taxes and utilities, for the then
current or next following Fiscal Year, provided that the fiscal period used by
Landlord in respect of any particular item may correspond to a shorter period
within any Fiscal Year where such item, for example Realty Taxes, is payable in
full by Landlord over such shorter period. The amounts so estimated shall be
payable by Tenant in advance in equal monthly instalments over the Fiscal Year
or other fiscal period on the same days as the monthly payments of Basic Rent.
Landlord may, from time to time, alter the fiscal period selected in each case.
As soon as practical after the expiration of each Fiscal Year, Landlord shall
furnish to Tenant an audited statement which sets out the total amount of
Operating Costs and Realty Taxes for the Project, together with a statement
(“Final Statement”) which sets out the Tenant’s Proportionate Share of Operating
Costs, its share of Realty Taxes and the cost of its utilities and other charges
that are payable by it under any other relevant provisions of this Lease for
such Fiscal Year. Upon written request from Tenant (Tenant agreeing to act
reasonably and in a bona fide manner in making a request), Landlord shall, at
Tenant’s expense, provide Tenant with reasonable information within Landlord’s
possession or control in order to assist Tenant in substantiating Tenant’s
Proportionate Share of Operating Costs and its share of Realty Taxes, provided
that Tenant makes its request within sixty (60) days after delivery of the Final
Statement. If the amount determined to be payable by Tenant as aforesaid shall
be greater or less than the payments on account thereof previously made by
Tenant, then within thirty (30) days after delivery of such Final Statement the
appropriate adjustments will be made and Tenant shall pay any deficiency to
Landlord and, if Tenant is not in default under the terms of this Lease, the
amount of any overpayment shall be paid to Tenant or credited to the account of
Tenant. Such Final Statement of Landlord shall be final and binding and Tenant
shall have no right to dispute the accuracy or propriety of any amounts or
calculations included therein, except to the extent that Tenant shall have,
within sixty (60) days after being given such Final Statement, demonstrated to
the satisfaction of Landlord any error in such Final Statement.

     

    
      	
              6.

            	
              TAXES

            

    

     

    6.1                      Taxes
Payable by Tenant

     

    Subject
to Section 3 of Schedule “D” to this Lease, commencing on the Commencement Date,
and thereafter at all times throughout the Term, Tenant shall pay to Landlord or
the relevant taxing authority, as required by Landlord, not later than the time
when they fall due all Realty Taxes levied, confirmed, imposed, assessed or
charged (herein collectively or individually referred to as “charged”) against
or in respect of the Premises and all buildings, furnishings, fixtures,
equipment, improvements and alterations in or forming part of the Premises, and
including, without limiting the generality of the foregoing, any such Realty
Taxes charged against the Premises in respect of:

     

    
      	
            	
              (i)

            	
              the
      land on which the Premises is situate;
and

            

    

     

    
      	
            	
              (ii)

            	
              any
      Common Facilities.

            

    

     

    In
addition, Tenant shall pay, in the same manner as it is required to pay or
contribute to Operating Costs pursuant to Section 7.2 hereof, the Proportionate
Share of Realty Taxes charged against or in respect of Common Facilities, and
that portion allocated to the Project by Landlord, acting reasonably, of the
amount, if any, of Realty Taxes charged against the Project in excess of the
amount of Realty Taxes, in the aggregate, charged against Leasable
Areas.

     

    6.2                      Determination
of Tenant’s Taxes

     

    Whether
or not there is a separate bill for Realty Taxes charged against the Premises or
a separate assessment, the Realty Taxes charged against the Premises shall be
determined by Landlord acting reasonably, the cost of making such determination
to be included in Operating Costs; in making such determination Landlord shall
have the right, without limiting its right to do otherwise, to establish
separate assessments for the Premises and all other portions of the Project by
using such criteria as Landlord, acting reasonably, shall determine to be
relevant including, without limitation:

     

    
      
        
           

        

        
          - 8
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (a)

            	
              the
      then current established principles of assessment used by the relevant
      assessing authorities and on the same basis as the assessment actually
      obtained for the Project as a whole or the part thereof in which the
      Premises are located;

            

    

     

    
      	
               
      

            	
              (b)

            	
              assessments
      of the Premises and any other portions of the Project in previous periods
      of time;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Proportionate Share; and

            

    

     

    
      	
               
      

            	
              (d)

            	
              any
      act, religion or election of Tenant or any other occupant of the Project
      which results in an increase or decrease in the amount of Realty Taxes
      which would otherwise have been charged against the Project or any portion
      thereof.

            

    

     

    
      	
              6.3

            	
              Business
      Taxes and Sales Taxes

            

    

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      shall pay to the relevant taxing authority as and when the same are due
      and payable all taxes charged in respect of any business conducted on, or
      any use or occupancy of, the
Premises.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Tenant
      shall pay to Landlord when due all Sales Taxes imposed on Landlord or
      Tenant with respect to Rent payable by Tenant hereunder or in respect of
      the rental of space under this
Lease.

            

    

     

    6.4                      Tax
Bills and Assessment Notices

     

    Tenant
shall deliver to Landlord forthwith upon Tenant’s receiving the same copies of
all assessment notices, tax bills, receipts and other documents received by
Tenant relating to Realty Taxes on the Premises or the Project.

     

    6.5                      Contest
of Realty Taxes

     

    Landlord
may contest any Realty Taxes and appeal any assessments related thereto and may
withdraw any such contest or appeal or may agree with the relevant authorities
on any settlement in respect thereof. Tenant will co-operate with Landlord in
respect of any such contest and appeal and shall provide to Landlord such
information and execute such documents as Landlord requests to give full effect
to the foregoing. All costs of any such contest and appeal by Landlord shall be
included in Operating Costs. Tenant will not contest any Realty Taxes or appeal
any assessments related thereto.

     

    
      	
              7.

            	
              OPERATION OF
      PROJECT

            

    

     

    7.1                      Operation
of Project by Landlord

     

    
      	
               
      

            	
              (a)

            	
              Landlord
      shall repair, maintain and operate the Project, other than Leasable Areas,
      in a reasonable manner having regard to its size, age, location and
      character.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Landlord
      may at its sole option, provide janitorial and cleaning services to the
      Premises substantially in accordance with prevailing standards for office
      buildings of a similar standard in the area in which the Project is
      located. Landlord shall not be liable for any loss or damage caused in
      performance of any maintenance or cleaning services provided to the
      Premises, no matter how caused, whether by theft and whether or not
      resulting from or contributed to by the negligence of Landlord, its
      servants, agents, employees, contractors or persons for whom Landlord is
      in law responsible. Without in any way limiting or affecting the
      generality or interpretation of the foregoing, Landlord shall in no event
      be liable for any indirect or consequential damages suffered by Tenant or
      any others.

            

    

     

    7.2                      Tenant’s
Payment of Operating Costs

     

    Subject
to Section 3 of Schedule “D” to this Lease, commencing on the Commencement Date
and thereafter at all times throughout the Term Tenant shall pay to Landlord the
Proportionate Share of Operating Costs. Subject to Section 5.5, the amounts
payable by Tenant pursuant to this Section 7.2 shall be paid to Landlord within
ten (10) days after the submission to Tenant of a statement showing the amount
payable by Tenant from time to time. All amounts payable under this Article 7 in
respect of any period not falling entirely within the Term shall be adjusted on
a per diem basis.

     

    
      
        
           

        

        
          - 9
-

          
            

          

        

        
           

        

      

    

     

    
      	
              7.3

            	
              Adjustments
      to Operating Costs

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      by reason of the conduct of business on the Premises outside Business
      Hours, or by reason of the particular use or occupancy of the Premises or
      any of the Common Facilities by Tenant, its employees, agents or persons
      having business with Tenant, additional costs in the nature of Operating
      Costs, such as utility charges, security costs, and costs of heating,
      ventilating and air conditioning, are incurred in excess of the costs
      which would otherwise have been incurred for such items (“Excess Costs”),
      then Landlord shall have the right to determine on a reasonable basis and
      require Tenant to pay such Excess
Costs.

            

    

     

    
      	
               
      

            	
              (b)

            	
              If
      Tenant or any other tenant of the Project, pursuant to its lease or
      otherwise by arrangement with Landlord, provides at its cost any goods or
      services the cost of which would otherwise be included in Operating Costs,
      or if any goods or services the cost of which is included in Operating
      Costs benefit any portion of the Project to a materially greater or lesser
      extent than any other portion of the Project, then either the denominator
      for determining a Proportionate Share, or alternatively the amount of
      Operating Costs, may be adjusted as determined by Landlord acting
      reasonably to provide for the equitable allocation of the cost of such
      goods and services among the tenants of the
  Project.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Further,
      Tenant acknowledges that the Premises may form part of a multi-use project
      comprising various office towers, and Tenant acknowledges that the
      Operating Costs and Realty Taxes may be allocated on a reasonable basis
      between each portion of the Project, based on reasonable cost-sharing
      principles as applied by Landlord.

            

    

     

    
      	
              8.

            	
              USE OF
      PREMISES

            

    

     

    8.1                      Use
of Premises

     

    
      	
               
      

            	
              (a)

            	
              To
      the intent that this covenant shall run with the Premises for the benefit
      for the Project, excluding the Premises, Tenant covenants that it shall
      not use and shall not permit the Premises to be used for any purpose other
      than as described as Use of Premises in subsection 1(h) hereof. Tenant
      acknowledges that Landlord is making no representation or warranty as to
      Tenant’s ability to use the Premises for its intended use and Tenant
      shall, prior to executing this Lease, perform such searches and satisfy
      itself that its use is permitted under all applicable Laws and that Tenant
      will be able to obtain an occupancy
permit.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Tenant
      acknowledges that it is aware of the nature of the exclusive use rights
      granted to certain other tenants of the Building and the Project, more
      particularly described in Schedule “E” attached hereto, and agrees that it
      shall not be permitted at any time during the Term and all extensions or
      renewals thereof to carry out any business in the Premises in such a
      manner as to infringe upon any such exclusive use provisions. Tenant also
      agrees that it shall not be permitted at any time during the Term and all
      extensions or renewals thereof to carry on business in the Premises in
      such a manner as to infringe upon any future exclusive uses which Landlord
      may grant from time to time. Tenant shall indemnify and save Landlord
      harmless from any and all liability, losses, damages and expenses incurred
      or suffered by Landlord in connection with the infringement or alleged
      infringement by Tenant of any of such exclusive use provisions listed or
      in remedying or attempting to remedy such infringement or alleged
      infringement including, without limitation, Landlord’s legal fees and
      expenses on a substantial indemnity
basis.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Tenant
      acknowledges and agrees that in no event will an exclusive use or a
      restrictive covenant be inferred or implied in its favour by reason of any
      restrictions on Tenant’s business or in the foregoing provisions of this
      Section 8.1.

            

    

     

    8.2                      Conduct
of Business

     

    At all
times throughout the Term, Tenant shall continuously and actively and diligently
conduct its business in the whole of the Premises in a first class and reputable
manner.

     

    8.3                      Tenant’s
Fixtures

     

    Tenant
shall install and maintain in the Premises at all times during the Term
first-class trade fixtures including furnishings and equipment adequate and
appropriate for the business to be conducted on the Premises, all of which shall
be kept in good order and condition. Tenant shall not remove any trade fixtures
or other contents from the Premises during the Term except, with the prior
written consent of Landlord, in the ordinary course of business or for the
purpose of replacing them with others at least equal in value and function to
those being removed.

     

    
      
        
           

        

        
          - 10
-

          
            

          

        

        
           

        

      

    

     

    
      	
              8.4

            	
              Signs

            

    

     

    Tenant
shall not erect, install or display any sign or display on or visible from the
exterior of the Premises except for a building standard sign on the main entry
door to the Premises and on the building directory board, if any, both to be
installed by Landlord at Tenant’s cost to be paid forthwith upon
request.

     

    
      	
              8.5

            	
              Waste
      Removal

            

    

     

    Tenant
shall not allow any refuse, garbage or any loose, objectionable material to
accumulate in or about the Premises or the Project and will at all times keep
the Premises in a clean and neat condition. Tenant at its expense shall at all
times comply with Landlord’s rules and regulations regarding the separation,
removal and disposal of waste from the Premises. Notwithstanding the foregoing,
Landlord shall have the option to take over the function of separating, removing
and/or disposing of the waste and the cost to Landlord of same shall be included
in Operating Costs and any proceeds obtained may be retained by Landlord for its
own account. Until removed from the Project all waste from the Premises shall be
kept in appropriate containers within the Premises.

     

    
      	
              8.6

            	
              Pest
      Control

            

    

     

    Tenant
shall co-operate with Landlord and with any contractor(s) engaged by Landlord in
respect of pest extermination in the Premises and the Building.

     

    
      	
              8.7

            	
              Waste
      and Nuisance

            

    

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      shall not cause, suffer or permit any waste or damage to the Premises or
      leasehold improvements, fixtures or equipment therein nor permit any
      overloading of the floors thereof and shall not use or permit to be used
      any part of the Premises for any dangerous, noxious or offensive activity
      or goods and shall not do or bring anything or permit anything to be done
      or brought on or about the Premises or the Project which results in undue
      noise or vibration or which Landlord may reasonably deem to be hazardous
      or a nuisance or annoyance to any other tenants or any other persons
      permitted to be on the Project, and Tenant shall immediately take steps to
      remedy, remove or desist from any activity, equipment or goods or
      conditions on or  emanating from the Premises to which Landlord
      objects on a reasonable basis. Tenant shall take every reasonable
      precaution to protect the Premises and the Project from risk of damage by
      fire, water or the elements or any other
cause.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Tenant
      shall not itself, and shall not permit any of its employees, servants,
      agents, contractors or persons having business with Tenant, to obstruct
      any Common Facilities or use or permit to be used any Common Facilities
      for other than their intended purposes. Without limiting the foregoing,
      Tenant shall not permit any equipment, goods or material whatsoever to be
      placed or stored anywhere in or on the Common Facilities, including
      without limitation on the loading docks and other outside areas adjacent
      to the Premises. Tenant shall not, and shall not permit anyone else to,
      place anything on the roof of the Building or go on to the roof of the
      Building for any purpose whatsoever, without Landlord’s prior written
      consent, which may be arbitrarily withheld in Landlord’s sole
      discretion.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Tenant
      shall not use any advertising, transmitting or other media or devices
      which can be heard, seen, or received outside the Premises, or which could
      interfere with any communications or other systems outside the
      Premises.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Tenant
      shall be solely responsible for any contaminant, pollutant or toxic
      substance at any time affecting the Premises resulting from any act or
      omission of Tenant or any other person on the Premises or any activity or
      substance on the Premises during the Term, and any period prior to the
      Term during which the Premises were used or occupied by or under the
      control of Tenant, and shall be responsible for the clean-up and removal
      of any of the same and any damages caused by the occurrence, clean-up or
      removal of any of the same, and Tenant shall indemnify Landlord in respect
      thereof.

            

      
        
           

        

        
          - 11
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (e)

            	
              Tenant
      agrees to complete the environmental questionnaire attached hereto as
      Schedule “G” and to forthwith advise Landlord in writing of any changes in
      its activities that may alter the information provided
    herein.

            

    

     

    
      	
              8.8

            	
              Compliance
      with Laws

            

    

     

    Tenant
shall be solely responsible for obtaining from all authorities having
jurisdiction all necessary permits, licences and approvals as may be necessary
to permit Tenant to occupy the Premises and conduct its business thereon, as
required by all applicable Laws. Tenant shall comply at its own expense with all
applicable Laws respecting the use, condition and occupation of the Premises,
and all leasehold improvements, fixtures, equipment and contents
thereof.

     

    
      	
              8.9

            	
              Deliveries

            

    

     

    All
deliveries to and from the Premises, and loading and unloading of goods,
merchandise, refuse, materials and any other items, shall be made only by way of
such driveways, access routes, doorways, corridors and loading docks as Landlord
may from time to time designate and shall be subject to all applicable rules and
regulations made by Landlord from time to time pursuant to Section
17.4.

     

    
      	
              8.10

            	
              Window
      Coverings

            

    

     

    Tenant
shall comply with all rules and regulations from time to time made by Landlord
in respect of window coverings on the interior of the Premises, in order to
maximize the efficiency of the climate control equipment in or serving the
Premises or to maintain an attractive uniform appearance of the Project from the
exterior thereof.

     

    
      	
              8.11

            	
              Prohibited
      Uses

            

    

     

    Tenant
shall not cause, suffer or permit the Premises or any part thereof to be used at
any time during the Term for any of the following businesses or
activities:

     

    
      	
               
      

            	
              (a)

            	
              any
      retail or wholesale sales activities or any
  auction;

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      vending machines or other coin operated machines, entertainment or games
      machines or any other mechanical or electrical serving or dispensing
      machines or devices whatsoever or the sale or supply of food or beverages
      (other than food or beverages such as are routinely served in office
      premises without charge to employees such as coffee and soft drinks)
      unless expressly permitted in writing by Landlord, in its sole
      discretion;

            

    

     

    
      	
               
      

            	
              (c)

            	
              any
      sale of tickets for theatre or other entertainment events or lottery
      tickets;

            

    

     

    
      	
               
      

            	
              (d)

            	
              any
      type of business or business practice which would, in the sole opinion of
      Landlord, tend to lower the character or image of the Project or any
      portion thereof;

            

    

     

    
      	
               
      

            	
              (e)

            	
              any
      use which in any way contravenes any restrictive covenants in leases
      granted by Landlord; Tenant covenants and agrees that it will not carry on
      in the Premises any business which will in any way place Landlord in
      breach of any such restrictive covenants and Tenant will indemnify and
      save Landlord harmless from and against all actions, claims, demands and
      costs with respect thereto; this subsection (e) shall not be interpreted
      to prevent Tenant from carrying on in the Premises any business to the
      extent expressly permitted pursuant to Section 8.1
  hereof;

            

    

     

    
      	
               
      

            	
              (f)

            	
              any
      business or activity not in compliance with all
  Laws;

            

    

     

    
      	
               
      

            	
              (g)

            	
              a
      consulate, embassy, trade commission or other representative of a foreign
      government;

            

    

     

    
      	
               
      

            	
              (h)

            	
              a
      governmental agency, service or office, ministry, social services agency
      (including a welfare, immigration office or any other governmental office
      which would result in access to the Premises to the general
      public);

            

    

     

    
      	
               
      

            	
              (i)

            	
              an
      office for any political action, lobbying or for the primary purpose of
      any politically oriented or motivated
  activities;

            

    

     

    
      	
               
      

            	
              (j)

            	
              an
      office for a union;

            

    

     

    
      	
               
      

            	
              (k)

            	
              a
      social services agency;

            

      
        
           

        

        
          - 12
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (l)

            	
              in
      a manner which would result in people waiting in the Common Facilities of
      the Project;

            

    

     

    
      	
               
      

            	
              (m)

            	
              in
      any manner which would result in unemployed or homeless people or those in
      need of social assistance attending at the
  Project;

            

    

     

    
      	
               
      

            	
              (n)

            	
              for
      a call centre; or

            

    

     

    
      	
               
      

            	
              (o)

            	
              for
      a school or training centre of any
kind.

            

    

     

    The
inclusion of the foregoing provisions of this Section 8.11 shall not be deemed
to be a representation or warranty of Landlord that any of the foregoing
activities will not be authorized by Landlord to be conducted on any part of the
Project.

     

    Tenant
shall forthwith, upon the request of Landlord, discontinue any business, conduct
or practice carried on or maintained in or about the Premises which, in
Landlord’s sole opinion, may damage or reflect unfavourably upon Landlord, the
Project, or any other tenants or occupants thereof.

     

    If, in
the opinion of Landlord, Tenant is in breach of any of the provisions of this
Section 8.11, Tenant shall immediately discontinue such use upon Landlord’s
written request.

     

    
      	
              9.

            	
              SERVICES AND
      UTILITIES

            

    

     

    9.1                      Utilities

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      shall promptly pay for, as and when they fall due, to Landlord or as
      Landlord shall from time to time direct, all costs of supplying water,
      electricity, gas, and any other utilities which are available and supplied
      to or in respect of the Premises, and all costs for all fittings,
      connections and meters and all work performed in connection with any
      services or utilities provided to the Premises. Tenant shall promptly
      execute and deliver any agreements required by Landlord or by utilities
      suppliers in respect of the supply of any utilities to the Premises.
      Tenant’s use of any such utilities shall not exceed the available capacity
      of the existing systems from time to
time.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Should
      there be no individual meters for the measurement of the consumption of
      any utilities supplied to the Premises then Landlord, acting reasonably,
      may allocate the cost of such utilities among the various users thereof.
      If required by Landlord, Tenant shall install at its expense a separate
      meter or meters to measure the consumption of any or all utilities in the
      Premises. The cost of any utilities which are not charged to tenants of
      the Building individually shall be included in Operating
      Costs.

            

    

     

    9.2                       Heating
and Air Conditioning

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      shall be responsible for and promptly pay for as and when due, to Landlord
      or as Landlord shall from time to time direct, all costs of heating,
      ventilating, air conditioning and humidity control in the Premises. The
      said costs payable by Tenant shall be as determined by separate meters, if
      any, and otherwise as determined by Landlord acting reasonably. Tenant
      shall install at its expense such meters and in such locations as shall be
      required by Landlord to measure the supply of or costs to be charged for
      heating, ventilating, air conditioning and humidity control in the
      Premises.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Tenant
      shall operate the heating, ventilating, air conditioning and humidity
      control equipment within or serving the Premises in such manner as to
      maintain such reasonable conditions of temperature, air circulation and
      humidity within the Premises as determined by Landlord and, in any event,
      in such manner that there shall be no direct or indirect use of heating,
      ventilating, air conditioning and humidity control from the Common
      Facilities for the Premises. Tenant shall comply with all rules and
      regulations as Landlord shall make from time to time respecting the
      maintenance, repair and operation of all such heating, ventilating and air
      conditioning equipment.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Landlord
      shall have the right to require Tenant to pay as Excess Costs, pursuant to
      subsection 7.3(a), any increase in Operating Costs caused by: (a) the
      particular use or occupancy of the Premises; (b) above-normal consumption
      of electrical or other power on the Premises; (c) the configuration of
      partitions or other items on the Premises; or (d) the failure of Tenant to
      shade windows.

            

      
        
           

        

        
          - 13
-

          
            

          

        

        
           

        

      

    

     

    9.3    
                  Non-Liability
of Landlord

     

    Landlord
shall not be liable for any damages, direct or indirect, resulting from or
contributed to by any interruption or cessation in supply of any utilities or
heating, ventilating, air conditioning and humidity control. Without limiting
the generality of the foregoing, Landlord shall not be liable for and Tenant
shall indemnify Landlord against any and all indirect or consequential damages
or damages for personal discomfort or illness of Tenant or any persons permitted
by it to be on the Premises, by reason of the suspension or non-operation of any
utilities, heating, ventilating, air conditioning or humidity
control.

     

    9.4      
                Landlord’s
Suspension of Utilities

     

    In order
to effect any maintenance, repairs, replacements or alterations to any of such
utilities, heating, ventilating, air conditioning or humidity control equipment
or systems, or any other part of the Project, Landlord shall have the right to
modify or temporarily discontinue or suspend the operation of any such equipment
or systems as required from time to time.

     

    
      	
              10.

            	
              MAINTENANCE, REPAIRS
      AND ALTERATIONS

            

    

     

    
      	
              10.1

            	
              Maintenance
      and Repairs of Premises

            

    

     

    At all
times throughout the Term, Tenant at its sole expense shall perform such
maintenance (including painting and repair or replacement of any interior
finishings), repairs and replacements as required to keep the Premises, all
contents thereof and all services and equipment located in or primarily serving
the Premises, in first-class appearance and condition, and in accordance with
all Laws and Landlord’s reasonable requirements, subject only to the obligations
of Landlord expressly provided in Section 10.7. For the purposes of this Section
10.1, the Premises shall include, without limitation, all leasehold
improvements, perimeter walls and glass and doors.

     

    10.2                     Approval
of Repairs and Alterations

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      shall not make any repairs, replacements, changes, additions, improvements
      or alterations (hereinafter referred to as “Alterations”) to the Premises
      without Landlord’s prior written consent, which consent shall not be
      unreasonably withheld unless such proposed Alterations might affect the
      demising walls or entrances of the Premises or the structure of the
      Building or the coverage of the Project for zoning purposes, or the
      parking requirements for the Project, or impair the value or usefulness of
      the Premises or the Project, in any of which cases Landlord’s consent may
      be unreasonably withheld in Landlord’s sole
  discretion.

            

    

     

    
      	
               
      

            	
              (b)

            	
              With
      its request for consent, Tenant shall submit to Landlord details of the
      proposed Alterations including plans and specifications prepared by
      qualified architects or engineers, and such Alterations shall be completed
      in accordance with the plans and specifications approved in writing by
      Landlord.

            

    

     

    
      	
               
      

            	
              (c)

            	
              All
      Alterations shall be planned and completed in compliance with all Laws and
      Tenant shall, prior to commencing any Alterations, obtain at its expense
      all necessary permits and licences. Prior to the commencement of any such
      Alterations Tenant shall furnish to Landlord such evidence as reasonably
      required by Landlord of the projected cost of Alterations and Tenant’s
      ability to pay for same, together with such indemnification against costs,
      liens and damages as Landlord shall reasonably require including, if
      required by Landlord, a performance, completion and labour and materials
      bond acceptable to Landlord guaranteeing completion of such
      Alterations.

            

    

     

    
      	
               
      

            	
              (d)

            	
              All
      Alterations shall be performed at Tenant’s cost, promptly and in a good
      and workmanlike manner and in compliance with Landlord’s rules and
      regulations, by competent contractors or workmen who shall be first
      approved in writing by Landlord, which approval shall not be unreasonably
      withheld. Unless expressly authorized by Landlord in writing to the
      contrary, all Alterations which might cost in excess of Ten Thousand
      ($10,000.00) Dollars to complete or which might require a building permit
      or which might affect the structure or any mechanical, electrical,
      utility, sprinkler, communications or other similar systems within the
      Premises or the Project, shall, at Landlord’s option, be performed at
      Tenant’s expense by Landlord or by contractors designated by Landlord and
      under Landlord’s supervision and under the supervision of a qualified
      architect or engineer approved by Landlord, in advance. For all
      Alterations performed by Landlord or at Landlord’s expense or under
      Landlord’s supervision, Tenant shall pay forthwith upon request all
      amounts paid or payable by Landlord to third parties and all reasonable
      charges of Landlord for its own personnel plus fifteen (15%) percent of
      such amounts and charges for Landlord’s inspection and supervision. All
      Alterations, the making of which might disrupt other tenants or occupants
      of the Project or the public, shall be performed outside Business
      Hours.

            

      
        
           

        

        
          - 14
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              (e)

            	
              If
      Tenant performs any such Alterations without compliance with all of the
      foregoing provisions of this Article 10, Landlord shall have the right to
      require Tenant to remove such Alterations
  forthwith.

            

    

     

    
      	
            	
              (f)

            	
              Tenant
      shall pay to Landlord forthwith upon request all of Landlord’s reasonable
      costs including, without limitation, fees of architects, engineers and
      designers, incurred in dealing with Tenant’s request for Landlord’s
      consent to any Alterations, whether or not such consent is granted, and in
      inspecting and supervising any such Alterations and Landlord shall have
      the right to require Tenant to pay Landlord a deposit on account of such
      costs as a precondition to Landlord’s granting such
    consent.

            

    

     

    10.3                    Repair
According to Landlord’s Notice

     

    Landlord
or any persons designated by it shall have the right to enter the Premises at
any time to view the state of repair and condition thereof and Tenant shall
promptly perform according to Landlord’s written notice any maintenance
(including painting and repair or replacement of any interior finishings),
repairs or replacements in accordance with Tenant’s obligations
hereunder.

     

    
      	
              10.4

            	
              Notice
      by Tenant

            

    

     

    Tenant
shall give immediate written notice to Landlord of any accident, defect or
damage in any part of the Premises or the Project which comes to the attention
of Tenant or any of its employees or contractors notwithstanding the fact that
Landlord may have no obligation in respect of the same.

     

    
      	
              10.5

            	
              Ownership
      of Leasehold Improvements

            

    

     

    All
leasehold improvements installed in or about the Premises shall forthwith upon
the installation thereof become the property of Landlord but without Landlord’s
thereby accepting any responsibility in respect of the maintenance, repair or
replacement thereof. The expression “leasehold improvements” where used in this
Lease includes, without limitation, all fixtures, installations, alterations and
additions from time to time made or installed in or about the Premises, and
includes all of the following, whether or not they are trade fixtures or easily
removable: doors, partitions and hardware; mechanical, electrical and utility
installations; carpeting, drapes, other floor and window coverings and drapery
hardware; heating, ventilating, air conditioning and humidity control equipment;
lighting fixtures; built-in furniture and finishings; counters in any way
connected to the Premises or to any utility services located therein. The only
exclusions from “leasehold improvements” are free-standing furniture, trade
fixtures and equipment not in any way connected to the Premises or to any
utilities systems located therein.

     

    
      	
              10.6

            	
              Construction
      Liens

            

    

     

    Tenant
shall make all payments and take all steps as may be necessary to ensure that no
lien is registered against the Project or any portion thereof as a result of any
work, services or materials supplied to Tenant or the Premises. Tenant shall
cause any such registrations to be discharged or vacated immediately after
notice from Landlord, or within ten (10) days after registration, whichever is
earlier. Tenant shall indemnify and save harmless Landlord from and against any
liabilities, claims, liens, damages, costs and expenses, including legal
expenses, arising in connection with any work, services or materials supplied to
Tenant or the Premises. If Tenant fails to cause any such registration to be
discharged or vacated as aforesaid then, in addition to any other rights of
Landlord, Landlord may, but shall not be obliged to, discharge the same by
paying the amount claimed into court, and the amounts so paid and all costs
incurred by Landlord, including legal fees and disbursements, shall be paid by
Tenant to Landlord forthwith upon demand.

     

    
      	
              10.7

            	
              Landlord’s
      Repairs

            

    

     

    Subject
to the provisions of Article 12 herein and subject to Tenant’s obligations
hereunder, to the extent that the failure to do so would materially
detrimentally affect access to or use of the Premises, on reasonable notice from
Tenant Landlord shall repair: (a) defects in the structure of the Project and
exterior walls of the Building; and (b) transportation, electrical, mechanical
and drainage equipment and systems forming part of the Project but not located
within the Premises and not serving exclusively the Premises. Landlord’s costs
of compliance with this Section 10.7 shall be included in Operating Costs to the
extent set out in Section 2.17. Provided that to the extent that such repair is
necessitated directly or indirectly by any act or omission of Tenant or any
servant, employee, agent, contractor, invitee or licensee of Tenant, Tenant
shall be solely responsible for the cost of such repairs in accordance with
Section 10.8 and shall indemnify Landlord in respect thereof.

     

    
      
         

      

      
        - 15
-

        
          

        

      

      
         

      

    

     

    
      	
              10.8

            	
              Special
      Services

            

    

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      shall pay Landlord on demand all charges as determined and allocated by
      Landlord acting reasonably in respect of all special services provided to
      or for the benefit of Tenant beyond building standard services the costs
      of which are included in Operating Costs. Unless otherwise expressly
      agreed between Landlord and Tenant to the contrary in respect of any
      specific matter from time to time, all work performed and materials
      supplied by Landlord for Tenant or otherwise respecting the Premises
      pursuant to the provisions hereof or otherwise shall be paid for by Tenant
      to Landlord forthwith on demand at Landlord’s cost for the same plus
      fifteen (15%) percent of such amounts and charges for inspection and
      supervision.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Landlord
      shall be the exclusive supplier in respect of the Premises, at Tenant’s
      expense, for replacement of tubes, bulbs and ballasts, for any services
      requiring drilling or otherwise penetrating floors, walls or ceilings, and
      for locksmithing and security arrangements. If Landlord, in its sole
      discretion, agrees in writing with Tenant that it shall not be the
      exclusive supplier of any of the aforesaid services, then only persons
      approved by Landlord acting reasonably may supply same to the
      Premises.

            

    

     

    
      	
              11.

            	
              END OF
      TERM

            

    

     

    11.1                     Vacating
of Possession

     

    Forthwith
upon the expiry or earlier termination of the Term, Tenant shall deliver to
Landlord vacant possession of the Premises in such condition in which Tenant is
required to keep the Premises during the Term pursuant hereto and shall leave
the Premises in neat and clean condition and shall deliver to Landlord all keys
for the Premises and all keys or combinations to locks on doors or vaults in the
Premises.

     

    11.2                     Removal
of Trade Fixtures

     

    Provided
Tenant has paid all Rent and is not otherwise in default hereunder, or if
otherwise authorized or requested by Landlord, at the expiry or earlier
termination of the Term Tenant shall remove its trade fixtures and repair all
damage resulting from the installation or removal of such trade fixtures. If at
the expiry or earlier termination of the Term Tenant does not remove its trade
fixtures or any of its other property on the Premises, Landlord shall have no
obligation in respect thereof and may sell or destroy the same or
have  them removed or stored at the expense of Tenant; at the option
of Landlord, such trade fixtures or property shall  become the
absolute property of Landlord without any compensation to Tenant.

     

    
      	
              11.3

            	
              Removal
      of Leasehold Improvements

            

    

     

    
      	
               
      

            	
              (a)

            	
              Notwithstanding
      that the leasehold improvements become the property of Landlord upon
      installation, at the expiry or earlier termination of the Term Tenant
      shall remove any or all of such leasehold improvements made or installed
      in or about the Premises by Tenant, or by  Landlord as Tenant’s
      contractor, as required by Landlord and in so doing shall repair all
      damage resulting from, and shall restore the Premises to their condition
      prior to, the installation and removal of such leasehold
      improvements.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      anything in the foregoing to the contrary, provided Tenant in actual
      physical occupancy of and actively and diligently conducting business in
      the whole of the Premises is Occulogix, Inc., upon the expiry or earlier
      termination or sooner surrender of this Lease, Tenant’s obligation for
      removal of leasehold improvements shall extend only to: (i) those
      leasehold improvements installed by or on behalf of Tenant without
      Landlord’s prior written consent; and (ii) those Non-Standard Leasehold
      Improvements as Landlord shall require to be removed, and Tenant shall
      restore the Premises and the Project to the condition in which they
      existed prior to the installation and removal of such improvements. The
      term “Non-Standard Leasehold Improvements” shall mean: computer rooms
      and/or any other raised-floor environments; non-standard heating,
      ventilating and air conditioning systems installed for the specific use of
      the Premises; internal stairwells; custom lighting and electrical
      installations; dry-wall ceilings; telecommunication equipment (including
      all cabling, wiring, and conduits which have been installed by or on
      behalf of the Tenant); oversized boardrooms; training rooms; safes; vaults
      and, whether located within the Premises or elsewhere in the Project, any
      back-up and/or emergency power supplies, antennae, satellite dishes or
      other communication  facilities including, without limitation,
      creating within the Premises a large number of small offices and corridors
      which change direction or discontinue. Landlord may do or arrange to have
      done the work necessary to remove such improvements from the Premises if
      Tenant fails to do so, and Tenant shall pay for Landlord’s costs of so
      doing, plus an administration fee representing Landlord’s costs to
      supervise and inspect such work, in the amount of fifteen (15%) percent of
      such costs, forthwith upon demand
therefor.

            

      
        
           

        

        
          - 16
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    11.4                     Overholding
by Tenant

     

    If Tenant
remains in possession of all or any part of the Premises after the expiry of the
Term with the consent of Landlord but without any further written agreement,
this Lease shall not be deemed thereby to have been extended and Tenant shall be
deemed to be occupying the Premises as a monthly tenant on the same terms as set
forth in this Lease insofar as they are applicable to a monthly tenancy except
the monthly Basic Rent shall be one hundred and fifty percent (150%) of the
monthly Basic Rent payable during the last twelve months of the
Term.

     

    
      	
              12.

            	
              DAMAGE AND
      DESTRUCTION

            

    

     

    12.1                     Insured
Damage to Premises

     

    
      	
               
      

            	
              (a)

            	
              If
      there is damage to or destruction of the Premises caused by an occurrence
      against which, and to not more than the extent that, Landlord either is
      required to insure pursuant to this Lease or  is otherwise
      insured (“Insured Damage”), then the following provisions of this Section
      12.1 shall apply.

            

    

     

    
      	
               
      

            	
              (b)

            	
              If
      such damage or destruction is such as to render the whole or any part of
      the Premises unusable for the purpose of Tenant’s use and occupancy
      thereof, Landlord shall deliver to Tenant within thirty (30) days
      following the occurrence of such damage or destruction its reasonable
      opinion as to whether or not the same is capable of being repaired, to the
      extent of Landlord’s repair obligations hereunder, within one hundred
      eighty (180) days following such
occurrence.

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      this Lease is not terminated as herein provided, Landlord, to the extent
      of insurance proceeds which it receives or would have received had it
      maintained such insurance as it is required to maintain hereunder, and to
      the extent that any mortgagee(s) entitled to be paid such
      insurance  proceeds consents to the use of the same for repair
      of such damage or destruction, shall diligently proceed to perform repairs
      to the Premises to the extent of its obligations pursuant to Section 10.7
      hereof; and Tenant, commencing as soon as practicable but without
      interfering with Landlord’s repairs, shall diligently perform such repairs
      as are Tenant’s responsibility pursuant
hereto.

            

    

     

    
      	
               
      

            	
              (d)

            	
              If
      in Landlord’s reasonable opinion, the Premises are not capable of being
      repaired as aforesaid within one hundred eighty (180) days following such
      occurrence, Landlord may elect, by written notice to the Tenant within
      thirty (30) days after delivery by Landlord of the
      opinion  provided for in subsection 12.1(b) above, to terminate
      this Lease, whereupon Tenant shall immediately surrender possession of the
      Premises and Basic Rent and all other payments for which Tenant is liable
      pursuant hereto shall be apportioned to the effective date of such
      termination.

            

    

     

    
      	
               
      

            	
              (e)

            	
              If
      the damage is such as to render the whole or any part of the Premises
      unusable in whole or in part for the purpose of Tenant’s use and occupancy
      thereof for a period of five (5) days or more,  then the Basic
      Rent payable hereunder shall abate for the portion of such period in
      excess of five (5) days, to the extent that Tenant’s use and occupancy of
      the Premises is in fact diminished, which determination shall be made by
      Landlord, until the earlier of: (i) the thirtieth (30th) day after the
      Premises are determined by Landlord to be ready for Tenant to commence its
      repairs to the Premises; and (ii) the date on which Tenant first commences
      the conduct of business in any part of the Premises which had been
      damaged.

            

      
        
           

        

        
          - 17
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (f)

            	
              The
      respective obligations of Landlord and Tenant with respect to repair of
      the Premises following any damage or destruction shall be performed with
      all reasonable speed and in accordance with all applicable obligations to
      repair contained herein. Tenant acknowledges that its obligations to
      repair the Premises after such damage or destruction shall be performed at
      its sole cost without any contribution by Landlord whether or not the
      damage or destruction was caused by Landlord’s fault and whether or not
      Landlord had at any time made any contribution to the cost of any
      leasehold improvements in the Premises. In any event, within thirty (30)
      days after Landlord has completed its repairs to the Premises as
      aforesaid, Tenant shall complete its repairs to the Premises and shall
      recommence the conduct of business
thereon.

            

    

     

    
      	
              12.2

            	
              Uninsured
      Damage and Last Two Years

            

    

     

    If there
is damage to or destruction of the Premises and if, in Landlord’s reasonable
opinion, of which notice is given to Tenant within fifteen (15) days after the
later of the date of such damage or destruction and the date upon which Landlord
is notified by Tenant of such damage or destruction, the Premises are not
capable of being repaired to the extent of Landlord’s repair obligations within
thirty (30) days following the giving of such notice and if: (a) such damage or
destruction is not Insured Damage; or (b) such damage or destruction occurs
within the last two (2) Lease Years of the Term and either Tenant has no
remaining rights to renew this Lease or, having the right to renew this Lease
fails to do so within fifteen (15) days after receipt of the said notice, then
Landlord, at its option to be exercised by written notice given to Tenant within
thirty (30) days after the later of the date of such damage or destruction and
the date upon which Landlord is notified by Tenant of such damage or
destruction, may terminate this Lease whereupon Tenant shall immediately
surrender possession of the Premises and Basic Rent and all other payments for
which Tenant is liable hereunder shall be apportioned to the effective date of
such termination. If this Lease is not terminated as aforesaid the parties shall
repair as provided in subsection 12.1(c) hereof and there shall be no abatement
of any Rent unless the damage or destruction is Insured Damage and then only to
the extent expressly provided in subsection 12.1(e) above.

     

    
      	
              12.3

            	
              Damage
      to Project

            

    

     

    If
twenty-five (25%) percent or more of the Rentable Area of Leasable Areas of the
Project is damaged or destroyed by any cause whatsoever, whether or not there is
any damage to the Premises, Landlord may, at its option, by notice given to
Tenant within sixty (60) days after such occurrence, terminate this Lease as of
a date specified in such notice, which date shall be not less than thirty (30)
days and not more than one  hundred eighty (180) days after the giving
of such notice. In the event of such termination Tenant shall surrender vacant
possession of the Premises by not later than the said date of termination, and
Basic Rent and all other payments for which Tenant is liable hereunder shall be
apportioned to the effective date of termination. If Landlord does not so elect
to terminate this Lease, Landlord shall diligently proceed to repair and rebuild
the Project to the extent of its obligations pursuant hereto to the extent of
insurance proceeds which Landlord receives or would have received had it
maintained such insurance as required hereunder, and to the extent that any
mortgagee entitled to be paid such insurance proceeds consents to the use of
same for such purpose.

     

    
      	
              12.4

            	
              Restoration
      of Premises or Project

            

    

     

    If there
is damage to or destruction of the Premises or the Project and if this Lease is
not terminated pursuant hereto, Landlord, in performing its repairs as required
hereby, shall not be obliged to repair or rebuild in accordance with the plans
or specifications for the Premises or the Project as they existed prior to such
damage or destruction; rather, Landlord may repair or rebuild in accordance with
any plans and specifications chosen by Landlord in its sole discretion provided
that Tenant’s use of and access to the Premises and the general overall quality
of the Project are not materially detrimentally affected by any difference in
plans or specifications of the Premises or the Project.

     

    
      	
              12.5

            	
              Determination
      of Matters

            

    

     

    For the
purposes of this Article 12 all matters requiring determination such as, without
limitation, the extent to which any area(s) of the Premises or the Project are
damaged or are not capable of being used, or the time within which repairs may
be made, unless expressly provided to the contrary, shall be determined by
Landlord’s Architect, such determination to be final and binding on the
parties.

     

    
      
         

      

      
        - 18
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              13.

            	
              INSURANCE AND
      INDEMNITY

            

    

     

    
      	
              13.1

            	
              Landlord’s
      Insurance

            

    

     

    Landlord
shall obtain and maintain in full force and effect during the Term with respect
to the Project insurance against such occurrences and in such amounts, on such
terms and with such deductible(s) as would a prudent owner of such a project.
Such insurance may include, without limitation: (a) insurance on the Building
and any improvements therein which Landlord desires to insure, against damage by
fire and other risks covered by extended coverage fire insurance policies or, at
Landlord’s option, all risks insurance; (b) boiler and machinery insurance; (c)
rental income insurance; (d) public liability insurance; and (e) such other
insurance and in such amounts and on such terms as Landlord, in its discretion,
may reasonably determine. Notwithstanding that Tenant shall be contributing to
the costs of such insurance pursuant to the terms of this Lease, Tenant shall
not have any interest in or any right to recover any proceeds under any of
Landlord’s insurance policies.

     

    
      	
              13.2

            	
              Tenant’s
      Effect On Other Insurance

            

    

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      shall not do or permit anywhere on the Premises or Project anything which
      might: (i) result in any increase in the cost of any insurance policy of
      Landlord on the Project; (ii) result in an actual or threatened
      cancellation of or adverse change in any insurance policy of Landlord on
      the Project; or (iii) be prohibited by any insurance policy of Landlord on
      the Project.

            

    

     

    
      	
               
      

            	
              (b)

            	
              If
      the cost of any insurance policies of Landlord on the Project is increased
      as a result of any improvements made by Tenant or anything done or
      permitted by Tenant anywhere on the Premises or Project, Tenant shall pay
      the full amount of such increase to Landlord forthwith upon demand.
      Tenant’s responsibility for any increased cost of insurance as aforesaid
      shall be conclusively determined by a statement issued by the
      organization, company or insurer establishing the insurance rates for the
      relevant policy.

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      there is an actual or threatened cancellation of or adverse change in any
      policy of insurance of Landlord on the Project by reason of anything done
      or permitted by Tenant anywhere on the Premises or Project, and if Tenant
      fails to remedy the situation giving rise to such actual or threatened
      cancellation or change within twenty-four (24) hours after notice from
      Landlord, then Landlord may, at its option, either: (i) terminate this
      Lease forthwith by written notice; or, (ii) remedy the situation giving
      rise to such actual or threatened cancellation or change, all at the cost
      of Tenant to be paid to Landlord forthwith upon demand, and for such
      purpose Landlord shall have the right to enter upon the Premises without
      further notice.

            

    

     

    
      	
              13.3

            	
              Tenant’s
      Insurance

            

    

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      shall, at its sole expense, maintain in full force and effect at all times
      throughout the Term and such other times, if any, as Tenant occupies the
      Premises or any portion thereof, such insurance as would be maintained by
      a prudent tenant of premises such as the Premises, which insurance shall
      include at least all of the
following:

            

    

     

    
      	
               
      

            	
              (i)

            	
              commercial
      general liability insurance on an occurrence basis with respect to any use
      and occupancy of or things on the Premises, and with respect to the use
      and occupancy of any other part of the Project by Tenant or any of its
      employees, servants, agents, invitees, licensees, subtenants, contractors
      or persons for whom Tenant is in law responsible, with coverage for any
      occurrence of not less than Five Million ($5,000,000.00) Dollars or such
      higher amount as Landlord may reasonably require on not less than one (1)
      month’s notice;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              all
      risks insurance covering the leasehold improvements, trade fixtures and
      contents on the Premises, for not less than the full replacement cost
      thereof and with a replacement cost
endorsement;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              if
      applicable, broad form comprehensive boiler and machinery insurance on all
      insurable objects located on or about the Premises or which are the
      property or responsibility of Tenant, for not less than the full
      replacement cost thereof and with a replacement cost
      endorsement;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              business
      interruption insurance and/or extra expense insurance in such amounts as
      necessary to fully compensate Tenant for direct or indirect loss of sales
      or earnings or extra expenses incurred resulting from or attributable to
      any of the perils required to be  insured against under the
      policies referred to in subsections 13.3(a)(ii) and (iii) and all
      circumstances usually insured against by cautious tenants including losses
      resulting from interference with or prevention of access to the Premises
      or the Project as a result of such perils or for any other
      reason;

            

      
        
           

        

        
          - 19
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              (v)

            	
              tenant’s
      legal liability insurance for the full replacement cost of the Premises,
      and the loss of use thereof; and

            

    

     

    
      	
               
      

            	
              (vi)

            	
              any
      other insurance against such risks and in such amounts as Landlord or any
      mortgagee of Landlord may from time to time reasonably require upon not
      less than thirty (30) days’ notice to
Tenant.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Each
      of Tenant’s insurance policies shall name Landlord and Landlord’s
      Mortgagee as an additional insured with Landlord as loss payee, and shall
      be taken out with insurers and shall be in such form and on such terms as
      are satisfactory to Landlord from time to time. Without limiting the
      generality of the foregoing, each of Tenant’s insurance policies shall
      contain:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      standard mortgage clause as may be required by any mortgagee of
      Landlord;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      waiver by the insurer of any rights of subrogation to which such insurer
      might otherwise be entitled against Landlord or any person for whom
      Landlord is in law responsible;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              an
      undertaking by the insurer that no material change adverse to Tenant or
      Landlord or any mortgagee of Landlord will be made and the policy will not
      lapse or be terminated, except after not less than thirty (30) days’
      written notice to Tenant and Landlord and to any mortgagee of
      Landlord;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              a
      provision stating that Tenant’s insurance policy shall be primary and
      shall not call into contribution any other insurance available to
      Landlord;

            

    

     

    
      	
               
      

            	
              (v)

            	
              a
      disputed loss endorsement, where
applicable;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              a
      severability of interests clause and a cross-liability clause;
      and

            

    

     

    
      	
               
      

            	
              (vii)

            	
              a
      waiver, in respect of the interests of Landlord and any mortgagee of
      Landlord, of any provision with respect to any breach of any warranties,
      representations, declarations or conditions contained in the said
      policy.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Tenant
      shall ensure that Landlord shall at all times be in possession of either
      certificates or certified copies of Tenant’s insurance policies which are
      in good standing and in compliance with Tenant’s obligations
      hereunder.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Tenant
      hereby releases Landlord and its servants, agents, employees, contractors
      and those for whom Landlord is in law responsible from all losses, damages
      and claims of any kind in respect of which Tenant is required to maintain
      insurance hereunder or is otherwise
insured.

            

    

     

    
      	
              13.4

            	
              Landlord’s
      Right to Place Tenant’s Insurance

            

    

     

    If Tenant
fails to maintain in force, or pay any premiums for, any insurance required to
be maintained by Tenant hereunder, or if Tenant fails from time to time to
deliver to Landlord satisfactory proof of the good standing of any such
insurance or the payment of premiums therefor, then Landlord, without prejudice
to any of its other rights and remedies hereunder, shall have the right but not
the obligation to effect such insurance on behalf of Tenant and the cost thereof
and all other reasonable expenses incurred by Landlord in that regard shall be
paid by Tenant to Landlord forthwith upon demand.

     

    
      	
              13.5

            	
              Landlord’s
      Non-Liability

            

    

     

    Tenant
agrees that Landlord shall not be liable or responsible in any way for any
injury or death to any person or for any loss or damage to any property, at any
time on or about the Premises or any property owned by or being the
responsibility of Tenant or any of its servants, agents, customers, contractors
or persons for whom Tenant is in law responsible elsewhere on or about the
Project, no matter how the same shall be caused and whether or not resulting
from the negligence of Landlord, its servants, agents, employees, contractors or
persons for whom Landlord is in law responsible. Without limiting the generality
of the foregoing, Landlord shall not be liable or responsible for any such
injury, death, loss or damage to any persons or property caused or contributed
to by any of the following: fire, explosion, steam, water, rain, snow, dampness,
leakage, electricity or gas. Without limiting or affecting the generality or
interpretation of the foregoing, and notwithstanding the foregoing, it is agreed
that Landlord shall in no event be liable for any indirect or consequential
damages suffered by Tenant.

     

    
      
        
           

        

        
          - 20
-

          
            

          

        

        
           

        

      

    

     

    
      	
              13.6

            	
              Indemnity
      of Landlord

            

    

     

    Tenant
shall indemnify Landlord and all of its servants, agents, employees, contractors
and persons for whom Landlord is in law responsible against any and all
liabilities, claims, damages, losses and expenses, including all reasonable
legal fees and disbursements, arising from: (a) any breach by Tenant of any of
the provisions of this Lease; (b) any act or omission of any person on the
Premises or any use or occupancy of or any things in the Premises; (c) any act
or omission of Tenant or any of its servants, agents, employees, invitees,
licensees, sub-tenants, concessionaires, contractors or persons for whom Tenant
is in law responsible on the Premises or elsewhere on or about the Project; or
(d) any injury or death of persons, or any loss or damage to property of Tenant
or any of its servants, agents, employees, invitees, licensees, subtenants,
contractors or persons for whom Tenant is in law responsible, on the Premises or
elsewhere on or about the Project.

     

    13.7                     Landlord’s
Employees and Agents

     

    Every
indemnity, exclusion, release of liability and waiver of subrogation contained
in this Lease for the benefit of Landlord shall extend to and benefit all of
Landlord’s servants, agents, employees, and others for whom Landlord is in law
responsible. Solely for such purpose, and to the extent that Landlord expressly
chooses to enforce the benefits of this section for the foregoing persons, it is
agreed that Landlord is the agent or trustee for such persons.

     

    
      14.        
 ASSIGNMENT, SUBLETTING AND
CHANGE OF CONTROL

    

     

    
      	
              14.1

            	
              Consent
      Required

            

    

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      shall not assign this Lease in whole or in part and shall not sublet or
      part with or share possession of all or any part of the Premises and shall
      not grant any licences or other rights to others to use any portion of the
      Premises (all of the foregoing being hereinafter referred to as a
      “Transfer”; a party making a Transfer is referred to as a “Transferor” and
      a party taking a Transfer is referred to as a “Transferee”) without the
      prior written consent of Landlord in each instance, which consent shall
      not be unreasonably withheld. Notwithstanding the foregoing, Landlord
      shall be entitled to arbitrarily or unreasonably withhold its consent to
      any Transfer in respect of which Landlord exercises its right to terminate
      this Lease, or to take a Transfer of the Premises or any portion thereof,
      pursuant to Section 14.3. The provisions of this Article 14 shall apply to
      any Transfer which might occur by inheritance or operation of
      law.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      and without in any way affecting or limiting the interpretation of the
      foregoing, it is agreed that it shall be reasonable for Landlord to
      withhold its consent to a Transfer unless it is shown to Landlord’s
      satisfaction that: (i) the proposed Transferee has a good business and
      personal reputation; (ii) the proposed Transferee or its principal
      shareholders has not been bankrupt or the holder of twenty (20%) percent or more
      of the issued shares of any class of shares of a corporation or of an
      interest in a partnership, either of which has been bankrupt in the ten
      (10) years preceding the date of the proposed Transfer; (iii) the proposed
      Transferee has good financial strength at least equal to that of Tenant at
      the date of this Lease, and at least sufficient to satisfy all of the
      obligations of Tenant hereunder; (iv) the proposed Transferee is not an
      existing occupant of any part of the Project; (v) the proposed Transferee
      has not then recently been a prospect involved in bona fide negotiations
      with Landlord respecting the leasing of any premises in the Project and is
      not in any way affiliated with such bona fide prospect; (vi) the Transfer
      would not result in a breach of any agreement by which Landlord is bound
      with respect to any part of the Project; and (vii) without affecting the
      interpretation of Section 8.1 or any other provision hereof, the business
      proposed to be carried on by the Transferee on the Premises will not be
      incompatible with the uses of other tenants of the Project, and will not
      be more burdensome on the Project, in terms of parking requirements or any
      other factor, than the business previously carried on by Tenant on the
      Premises.

            

    

     

    
      
         

      

      
        - 21
-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (c)

            	
              If
      Landlord withholds, delays or refuses to give consent to any Transfer,
      whether or not Landlord is entitled to do so, Landlord shall not be liable
      for any losses or damages in any way resulting therefrom and Tenant shall
      not be entitled to terminate this Lease or exercise any other remedy
      whatever in respect thereof except to seek the order of a court of
      competent jurisdiction compelling Landlord to grant any such consent which
      Landlord is obliged to grant pursuant to the terms of this
      Lease.

            

    

     

    
      	
               
      

            	
              (d)

            	
              No
      Transfer may be made where any portion of Rent is lower than that provided
      for herein or otherwise on terms more favourable to the Transferee than
      the terms set forth herein.

            

    

     

    
      	
              14.2

            	
              Obtaining
      Consent

            

    

     

    All
requests to Landlord for consent to any Transfer shall be made to Landlord in
writing together with a copy of the agreement pursuant to which the proposed
Transfer will be made, accompanied by such information in writing as a landlord
might reasonably require respecting a proposed Transferee including, without
limitation, name, business and home addresses and telephone numbers, business
experience, credit information and rating, financial position and banking and
personal references, description of business proposed to be conducted by the
Transferee on the Premises and parking requirements for such business. Tenant
shall promptly pay all costs incurred by Landlord in considering and processing
the request for consent including legal costs and all costs of completing any
documentation to implement any Transfer, which shall be prepared by Landlord or
its solicitor if required by Landlord, and as a prior condition to considering
any request for consent Landlord may require from Tenant payment of a reasonable
deposit, of at least Six Hundred ($600.00) Dollars, on account of Landlord’s
said costs.

     

    
      	
              14.3

            	
              Landlord’s
      Option

            

    

     

    Notwithstanding
the other provisions contained in this Article 14, after Landlord receives a
request for consent to a Transfer with the information and copy of agreement
hereinabove required, it shall have the option, to be exercised by written
notice to Tenant within fifteen (15) days after the receipt of such request,
information, deposit and agreement to: (a) to terminate this Lease as it relates
to the portion of the Premises which is the subject of the proposed Transfer
(“Transferred Premises”) effective as of the date on which the proposed Transfer
was to have occurred; or (b) take a Transfer from Tenant of the Transferred
Premises on the same terms as the Transfer in respect of which Tenant has
requested Landlord’s consent, as aforesaid. If Landlord gives Tenant notice
either electing to terminate this Lease or to take a Transfer of the Transferred
Premises, as aforesaid, Tenant shall have the right, to be exercised by written
notice to Landlord within ten (10) days after receipt of such Landlord’s notice,
to withdraw the request for consent to the Transfer, in which case Tenant shall
not proceed with such Transfer, the Landlord’s notice shall be null and void and
this Lease shall continue in full force and effect. If, pursuant to this Section
14.3, Landlord terminates this Lease as it relates to a portion of the Premises
or takes a Transfer of a portion of the Premises, Tenant hereby grants to
Landlord and any others entitled to use the same, to use for their intended
purposes all portions of the Premises in the nature of common areas (such as
corridors, washrooms, lobbies and the like), or which are reasonably required
for proper access to or use of the Transferred Premises (such as reception
areas, interior corridors, mechanical or electrical systems and ducts and the
like).

     

    
      	
              14.4

            	
              Terms
      of Transfer

            

    

     

    In the
event of a Transfer, Landlord shall have the following rights, in default of any
of which no such Transfer shall occur or be effective:

     

    
      	
               
      

            	
              (a)

            	
              to
      collect a deposit or further deposit to be held as a security deposit
      pursuant to Section 16.6 such that the security deposit held by Landlord
      shall be equivalent to at least the Basic Rent payable for the last two
      (2) months of the Term in respect of the premises which are the subject of
      the Transfer;

            

    

     

    
      	
               
      

            	
              (b)

            	
              to
      require Tenant and the Transferee to enter into a written agreement to
      implement any amendments to this Lease to give effect to Landlord’s
      exercise of any of its rights
hereunder;

            

    

     

    
      	
               
      

            	
              (c)

            	
              to
      require the Transferee to enter into an agreement with Landlord in writing
      and under seal to be bound by all of Tenant’s obligations under this Lease
      in respect of the Transferred Premises, and to waive any right it, or any
      person on its behalf, may have to disclaim, repudiate or terminate this
      Lease pursuant to any bankruptcy, insolvency, winding-up or other
      creditors’ proceeding, including, without limitation, the Bankruptcy and Insolvency Act
      (Canada) or the Companies’ Creditors
      Arrangement Act (Canada), and to agree that in the event of any
      such proceeding Landlord will comprise a separate class for voting
      purposes;

            

    

     

    
      
         

      

      
        - 22
-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (d)

            	
              to
      receive all amounts to be paid to Tenant under the agreement in respect of
      such Transfer less only any consideration which is bona fide being paid to
      Tenant for equipment, furnishings and other property to be conveyed by
      Tenant as part of or together with the transaction of Transfer and which
      is not reasonably attributable to Tenant’s interest in this Lease and
      less, in the case of a sublease, all amounts receivable by Tenant under
      the sublease equal to the amounts payable by Tenant hereunder each month
      during the term of the sublease in respect of the Transferred
      Premises;

            

    

     

    
      	
               
      

            	
              (e)

            	
              to
      require the Transferee to waive any right it, or any person on its behalf,
      may have to disclaim, repudiate or terminate this Lease pursuant to any
      bankruptcy, insolvency, winding-up or other creditors’ proceedings, and to
      waive any rights, pursuant to Sections 21 or 39(2) of the Commercial Tenancies Act
      (Ontario) R.S.O. 1990, c, L7 and any amendments thereto and any
      other statutory provisions of the same or similar effect, to pay Rent less
      than any amount payable hereunder;

            

    

     

    
      	
               
      

            	
              (f)

            	
              to
      require, if the Transfer is a sublease or other transaction other than an
      assignment, that upon notice from Landlord to the Transferee all amounts
      payable by the Transferee each month shall be paid directly to Landlord
      who shall apply the same on account of Tenant’s obligations under this
      Lease;

            

    

     

    
      	
               
      

            	
              (g)

            	
              to
      require that this Lease be amended to delete therefrom any right of
      renewal and any option or right of first refusal to purchase the
      Premises.

            

    

     

    
      	
              14.5

            	
              Effect
      of Transfer

            

    

     

    
      	
               
      

            	
              (a)

            	
              No
      consent of Landlord to a Transfer shall be effective unless given in
      writing and executed by Landlord and no such consent shall be presumed by
      any act or omission of Landlord or by Landlord’s failure to respond to any
      request for consent or by Landlord’s accepting any payment of any amount
      payable hereunder from any party other than Tenant. No Transfer and no
      consent by Landlord to any Transfer shall constitute a waiver of the
      necessity to obtain Landlord’s consent to any subsequent or other
      Transfer.

            

    

     

    
      	
               
      

            	
              (b)

            	
              In
      the event of any Transfer or any consent by Landlord to any Transfer,
      Tenant shall not thereby be released from any of its obligations hereunder
      but shall remain bound by all such obligations pursuant to this Lease for
      the balance of the Term. If this Lease is renewed or extended by any
      Transferee or if any Transferee exercises a right to lease additional
      premises, pursuant to any right of Tenant contained in this Lease, each
      Transferor shall be liable for all of the obligations of Tenant throughout
      the Term as renewed or extended.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Every
      Transferee shall be obliged to comply with all of the obligations of
      Tenant under this Lease, and any default of any Transferee shall also
      constitute a default of Tenant hereunder. If this Lease is ever
      disclaimed, repudiated or terminated by or on behalf of a Transferee
      pursuant to any bankruptcy, insolvency, winding-up or other creditors’
      proceeding, including, without limitation, any proceeding under the Bankruptcy and Insolvency Act
      (Canada) or the Companies’ Creditors
      Arrangement Act (Canada), or if this Lease is ever terminated by
      Landlord as a result of any act or default of any Transferee, Tenant shall
      nevertheless remain responsible for fulfilment of all obligations of
      Tenant hereunder for what would have been the balance of the Term but for
      such disclaimer, repudiation or termination, and shall upon Landlord’s
      request enter into a new lease of the Premises for such balance of the
      Term and otherwise on the same terms and conditions as in this
      Lease.

            

    

     

    14.6                     No
Advertising of Premises

     

    Tenant
shall not advertise this Lease or all or any part of the Premises or the
business or fixtures or contents therein for sale without Landlord’s prior
written consent.

     

    
      
        
           

        

        
          - 23
-

          
            

          

        

        
           

        

      

    

     

    
      	
              14.7

            	
              Mortgage
      of Lease

            

    

     

    The
restrictions on Transfer as aforesaid shall apply to any assigning, subletting,
mortgaging, charging or otherwise transferring of the Premises or this Lease for
the purpose of securing any obligation of Tenant.

     

    
      	
              14.8

            	
              Corporate
      Tenant

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      Tenant or any occupant of the Premises at any time is a corporation, no:
      (I) transfer of the issued shares in the capital stock or transfer,
      issuance or division of any shares of the corporation or of any affiliate
      of the corporation sufficient to transfer control to others than the then
      present shareholders of the corporation (collectively called “Sale”); or
      (II) merger, amalgamation, consolidation or other corporate restructuring
      or reorganization (collectively called “Reorganization”) shall take place,
      without first obtaining the prior written consent of Landlord, not to be
      unreasonably withheld. Upon request, Tenant shall make the corporate books
      and records of Tenant and of any affiliate of Tenant available to Landlord
      and its representatives for inspection in order to ascertain whether or
      not there has been any Sale or Reorganization. Tenant acknowledges that,
      in addition to Landlord’s rights under this Lease and at Law to withhold
      consent to any Transfer, Landlord may withhold consent to any Sale or
      Reorganization unless it is shown to Landlord’s reasonable satisfaction
      that the financial strength of Tenant will not be adversely affected by
      such Sale or Reorganization.

            

    

     

    
      	
               
      

            	
              (b)

            	
              This
      Section shall not apply to a Sale by Tenant if and as long as Tenant is in
      occupancy of the Premises and is a corporation whose shares are listed and
      traded on any recognized public stock exchange in Canada or the United
      States.

            

    

     

    
      	
              14.9

            	
              Assignment
      by Landlord

            

    

     

    If
Landlord sells, leases, mortgages or otherwise disposes of the Project or any
part thereof or assigns its interest in this Lease, to the extent that the
purchaser or assignee agrees with Landlord to assume the covenants and
obligations of Landlord hereunder, Landlord shall thereupon be released from all
liability pursuant to the terms of this Lease.

     

    
      	
              15.

            	
              STATUS AND
      SUBORDINATION OF LEASE

            

    

     

    
      	
              15.1

            	
              Status
      Statement

            

    

     

    Tenant
shall, within ten (10) days after written request from Landlord, execute and
deliver to Landlord, or to any actual or proposed lender, purchaser or assignee
of Landlord, a statement or certificate in such form as requested by Landlord
stating (if such is the case, or stating the manner in which such may not be the
case): (a) that this Lease is unmodified and in full force and effect; (b) the
date of commencement and expiry of the Term and the dates to which Basic Rent
and any other Rent, including any prepaid rent, have been paid; (c) whether or
not there is any existing default by Landlord under this Lease and, if so,
specifying such default; and (d) that there are no defences, counter claims or
rights of set-off in respect of the obligations hereunder of Tenant and (e) full
details of the financial and credit standing and details of the corporate
organization of Tenant, including audited financial statements for such period
of time as Landlord may require, it being intended that any such statement
delivered pursuant hereto may be relied upon by an actual or prospective lender,
purchaser and assignee of any interest of Landlord under this Lease or in the
Premises.

     

    
      	
              15.2

            	
              Subordination

            

    

     

    At the
option of Landlord to be expressed in writing from time to time, this Lease and
the rights of Tenant hereunder are and shall be subject and subordinate to any
and all mortgages, trust deeds and charges (any of which is herein called
“Mortgage”) on the Project or any part thereof now or in the future, including
all renewals, extensions, modifications and replacements of any Mortgages from
time to time. Tenant shall at any time on notice from Landlord or holder of a
Mortgage attorn to and become a tenant of the holder of any such Mortgage upon
the same terms and conditions as set forth herein and shall execute promptly on
request any certificates, agreements, instruments of postponement or attornment
or other such instruments or agreements, including without limitation any short
form or notice of this Lease for the purpose of registration on title to the
Project, as requested from time to time to give full effect to this Article 15.
Provided Tenant is not in default hereunder, Landlord shall use reasonable
efforts to obtain from the holder of any Mortgage, in respect of which tenant
has executed and delivered an instrument of postponement, subordination or
attornment as required hereby, its agreement to permit Tenant to continue to
occupy the Premises in accordance with the terms of this Lease.

     

    
      
        
           

        

        
          - 24
-

          
            

          

        

        
           

        

      

    

     

    
      	
              15.3

            	
              Tenant’s
      Failure to Comply

            

    

     

    If Tenant
fails to execute any certificate, agreement, instrument, or other document as
required by the foregoing provisions of this Article 15 within ten (10) days
after request by Landlord, then Landlord shall have the right, without limiting
any other rights of Landlord hereunder or at law, to terminate this Lease or to
execute any such certificate, agreement, instrument or document on behalf of
Tenant and in Tenant’s
name, for which purpose
Tenant hereby appoints Landlord as Tenant’s attorney pursuant to the Substitute Decisions Act
(Ontario).

     

    
      	
              15.4

            	
              Registration

            

    

     

    Tenant
shall not register on title to the Project this Lease or any short form or
notice hereof except in such form as has been approved by Landlord, acting
reasonably, in writing, provided that Tenant shall pay Landlord’s reasonable
expenses, including legal fees, of such approval. Tenant shall forthwith provide
to Landlord a duplicate registered copy of any short form or notice of this
Lease or other document registered on title.

     

    
      	
              16.

            	
              DEFAULT AND
      REMEDIES

            

    

     

    16.1                     Default
and Remedies

     

    If any of
the following shall occur:

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      fails, for any reason, to make any payment of Rent as and when the same is
      due to be paid hereunder and such default continues for five (5) days
      after notice is given to Tenant;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Tenant
      fails, for any reason, to observe or perform any obligation of Tenant
      pursuant to this Lease other than the payment of any Rent, and such
      default continues for fifteen (15) days, or such shorter period as
      expressly provided herein, after notice thereof to Tenant, provided that
      if the default could not, in the reasonable opinion of Landlord, be
      remedied within fifteen (15) days after notice and provided Tenant has
      commenced to remedy such failure not later than five (5) days after notice
      and proceeds thereafter to diligently and continuously remedy it, the
      number of days shall be extended to that number of days which would in the
      opinion of Landlord, acting reasonably, then suffice for the remedying of
      such default;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Tenant
      shall purport to make a Transfer affecting the Premises, or the Premises
      shall be used by any person or for any purpose, other than in compliance
      with this Lease;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Tenant
      or any other occupant of the Premises makes an assignment for the benefit
      of creditors or becomes bankrupt or insolvent or takes the benefit of any
      statute for bankrupt or insolvent debtors or makes any proposal or
      arrangement with creditors, or Tenant makes any sale in bulk of any
      property on the Premises (other than in conjunction with a Transfer
      approved in writing by Landlord and made pursuant to all applicable
      legislation), or steps are taken for the winding up or other termination
      of Tenant’s existence or liquidation of its
  assets;

            

    

     

    
      	
               
      

            	
              (e)

            	
              a
      trustee, receiver, receiver-manager, or similar person is appointed in
      respect of the assets or business of Tenant or any other occupant of the
      Premises;

            

    

     

    
      	
               
      

            	
              (f)

            	
              Tenant
      attempts to or does abandon the Premises or remove or dispose of any goods
      from the Premises, so that there would not be sufficient goods on the
      Premises subject to distress to satisfy all arrears of Rent and all Rent
      payable hereunder for a further period of at least six (6) months, or if
      the Premises are vacant or unoccupied for a period of five (5) consecutive
      days or more without the prior written consent of
  Landlord;

            

    

     

    
      	
               
      

            	
              (g)

            	
              this
      Lease or any other property of Tenant is at any time seized or taken in
      execution which remains unsatisfied for a period of five (5) days or
      more;

            

    

     

    
      	
               
      

            	
              (h)

            	
              termination
      or re-entry by Landlord is permitted under any provision of this Lease or
      at law;

            

    

     

    
      
         

      

      
        - 25
-

        
          

        

      

      
         

      

    

     

    then the
then current and the next three (3) months’ Rent shall be forthwith due and
payable and, in addition to any other rights or remedies to which Landlord is
entitled hereunder or at law, Landlord shall have the following rights and
remedies, which are cumulative and not alternative, namely:

     

    
      	
               
      

            	
              (i)

            	
              to
      terminate this Lease in respect of the whole or any part of the Premises
      by written notice to Tenant;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              as
      agent of Tenant to relet the Premises and take possession of any
      furniture, fixtures, equipment or other property thereon and, upon giving
      notice to Tenant, to store the same at the expense and risk of Tenant or
      sell or otherwise dispose of the same at public or private sale without
      further notice, and to make alterations to the Premises to facilitate
      their reletting and to apply the net proceeds of the sale of any
      furniture,  fixtures, equipment, or other property or from the
      reletting of the Premises, less all expenses incurred by Landlord in
      making the Premises ready for reletting and in reletting the Premises, on
      account of the Rent due and to become due under this Lease and Tenant
      shall be liable to Landlord for any deficiency and for all such expenses
      incurred by Landlord as aforesaid; nothing done by Landlord shall be
      construed as an election to terminate this Lease unless written notice of
      such termination is given by Landlord to
Tenant;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              to
      remedy any default of Tenant in performing any repairs, work or other
      obligations of Tenant hereunder, and in so doing to enter upon the
      Premises, without any liability to Tenant therefor and without
      constituting a re-entry of the Premises or termination of this Lease or
      breach of Landlord’s covenant of quiet enjoyment, and, in such case,
      Tenant shall pay to Landlord forthwith upon demand all reasonable costs of
      Landlord in remedying or attempting to remedy any such default plus
      fifteen (15%) percent of such amounts and charges for inspection and
      supervision; and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              to
      obtain damages from Tenant including, without limitation, if this Lease is
      terminated, all deficiencies between all amounts which would have been
      payable by Tenant for what would have been the balance of the Term, but
      for such termination, and all net amounts actually received by Landlord
      for such period.

            

    

     

    
      	
              16.2

            	
              Interest
      and Costs

            

    

     

    
      	
               
      

            	
              (a)

            	
              All
      amounts of Rent shall bear interest from their respective due dates until
      the dates of payment at the rate of five (5%) percent per annum in excess
      of the prime rate of interest charged by Landlord’s bank in Ontario from
      time to time.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Further,
      on each occurrence of default in the payment of Rent, Tenant shall pay to
      Landlord on demand in addition to the aforesaid interest an administration
      fee equal to the greater of: (i) Two Hundred ($200.00) Dollars; and (ii)
      two (2%) percent of the amount of Rent in
  default.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Tenant
      shall pay to Landlord forthwith upon demand all costs incurred by
      Landlord, including, without limitation, legal expenses on a substantial
      indemnity basis and reasonable compensation for all time expended by
      Landlord’s own personnel, arising as a result of any default in Tenant’s
      obligations under this Lease.

            

    

     

    
      	
              16.3

            	
              Bankruptcy
      and Insolvency

            

    

     

    Tenant
hereby waives any right it, or any person on its behalf, may have to disclaim,
repudiate or terminate this Lease pursuant to any bankruptcy, insolvency,
winding-up or other creditors’ proceeding, including, without limitation, the
Bankruptcy and Insolvency Act
(Canada) or the Companies’ Creditors Arrangement Act
(Canada), and agrees that in the event of any such proceeding Landlord
will comprise a separate class for voting purposes.

     

    
      	
              16.4

            	
              Distress
      and Tenant’s Property

            

    

     

    Tenant
hereby waives and renounces the benefit of any present or future statute taking
away or limiting Landlord’s right of distress and agrees with Landlord that,
notwithstanding any such statute, all goods and chattels from time to time on
the Premises shall be subject to distress for Rent. All Tenant’s
personal  property on the Premises shall at all times be the
unencumbered property of Tenant.

     

    
      
         

      

      
        - 26
-

        
          

        

      

      
         

      

    

     

    
      	
              16.5

            	
              Intentionally
      Deleted

            

    

     

    
      	
              16.6

            	
              Rent
      Deposit

            

    

     

    In order
to induce Landlord to enter into this Lease, Tenant agrees to execute the Rent
Deposit Agreement attached hereto as Schedule “17”.

     

    
      	
              16.7

            	
              Remedies
      to Subsist

            

    

     

    No waiver
of any of Tenant’s obligations under this Lease or of any of Landlord’s rights
in respect of any default by Tenant hereunder shall be deemed to have occurred
as a result of any condoning, overlooking or delay by Landlord in respect of any
default by Tenant or by any other act or omission of Landlord including, without
limitation, the acceptance of any Rent less than the full amount thereof or the
acceptance of any Rent after the occurrence of any default by Tenant. The waiver
by Landlord of any default of Tenant or of any rights of Landlord, which shall
be effected only by an express written waiver executed by Landlord, shall not be
deemed to be a waiver of any term, covenant or condition in respect of which
such default or right has been waived and shall not be deemed to be a waiver of
any subsequent default of Tenant or right of Landlord. All rights and remedies
of Landlord under this Lease and at law shall be cumulative and not alternative,
and the exercise by Landlord of any of its rights pursuant to this Lease or at
law shall at all times be without prejudice to any other rights of Landlord,
whether or not they are expressly reserved. The Tenant’s obligations under this
Lease shall survive the expiry or earlier termination of this Lease and shall
remain in full force and effect until fully complied with.

     

    
      	
              16.8

            	
              Impossibility
      of Performance

            

    

     

    If and to
the extent that either Landlord or Tenant shall be delayed in the fulfillment of
any obligation under this Lease, other than the payment by Tenant of any Rent,
by reason of unavailability of material, equipment, utilities, services or by
reason of any Laws, or by reason of any other similar cause beyond its control
and not avoidable by the exercise of reasonable foresight (excluding the
inability to pay for the performance of such obligation), then the party being
delayed shall be entitled to extend the time for fulfillment of such obligation
by a time equal to the duration of such delay and the other party shall not be
entitled to any compensation for any loss or inconvenience occasioned thereby.
The party delayed will, however, use its best efforts to fulfill the obligation
in question as soon as is reasonably practicable by arranging an alternate
method of providing the work, services or materials.

     

    
      	
              17.

            	
              CONTROL OF
      PROJECT

            

    

     

    17.1                    
Landlord’s Control

     

    The
Project is at all times subject to the exclusive control and management of
Landlord. Without limiting the generality of the foregoing, Landlord shall have
the right to obstruct or close off or restrict entry to all or any part of the
Project for purposes of performing any maintenance, repairs or replacements or
for security purposes or to prevent the accrual of any rights to any person or
the public or any dedication thereof, provided that in exercising any such right
Landlord shall use reasonable efforts to minimize interference with Tenant’s
access to and use of the Premises. The Project shall be open for access to the
Premises during Business Hours, and at any other time access to premises in the
Building shall be subject to compliance with all applicable rules and
regulations of Landlord, including without limitation those related to
security.

     

    
      	
              17.2

            	
              Alterations
      of the Project

            

    

     

    
      	
               
      

            	
              (a)

            	
              At
      any time or times Landlord shall have the right to make any changes in,
      additions to, deletions from or relocations of any part of the Project
      including the Premises and any of the  Common Facilities (any of
      which are herein referred to as “Changes”) as Landlord shall consider
      desirable, including the construction of additional floors in the
      Building. If Landlord makes any Changes to the Premises, including
      relocation of the Premises, Landlord shall ensure  that the
      Premises, as affected by such Changes, shall be substantially the same in
      size and shall be in all other material respects reasonably comparable to
      the Premises originally demised hereby. If the Premises are relocated as a
      result of such Changes, Landlord shall be responsible for the direct cost
      of moving Tenant to the relocated Premises and constructing
      replacement  leasehold improvements therein, but not for any
      indirect costs or losses of Tenant. Tenant shall not have the right to
      object to or make any claim on account of the exercise by Landlord of any
      of its rights under this Section 17.2, except that Tenant shall be
      entitled to an abatement of Basic Rent for any period of time in excess of
      ten (10) consecutive days that Tenant is unable to conduct business in the
      Premises as a result of the making of such Changes. Landlord shall make
      any such Changes as expeditiously as is reasonably possible and so as to
      interfere as little as is reasonably possible with Tenant’s business on
      the Premises.

            

      
        
           

        

        
          - 27
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (b)

            	
              Tenant
      acknowledges that portions of the Project may be under construction during
      the Term, and that such construction activities may cause temporary noise
      and disturbance to existing tenants of the Project. Landlord will use
      reasonable efforts to minimize interference with Tenant’s occupation of
      the Premises as a result of such construction activities, but Tenant
      acknowledges that in no event shall any noise or other disturbance caused
      by such construction constitute a breach of Tenant’s right to quiet
      enjoyment of the Premises.

            

    

     

    
      	
              17.3

            	
              Use
      of Common Facilities

            

    

     

    Tenant
shall not itself and shall not permit any of its employees, servants, agents,
contractors or persons having business with Tenant, to obstruct any Common
Facilities including driveways, laneways or access routes, or to park vehicles
in any portion of the Common Facilities other than such areas as expressly
authorized by Landlord, and Landlord shall have the right, at Tenant’s expense
payable on demand, to remove any such obstruction or improperly parked vehicles,
without liability for any damage caused thereby.

     

    
      	
              17.4

            	
              Rules
      and Regulations

            

    

     

    Landlord
may from time to time make and amend reasonable rules and regulations for the
management and operation of the Project and Tenant and all persons under its
control shall comply with all of such rules and regulations of which notice is
given to Tenant from time to time, all of which shall be deemed to be
incorporated into and form part of this Lease. Landlord shall not make any rules
or regulations which conflict with any express provision of this Lease unless
and only to the extent required by any applicable Laws. Landlord shall act
reasonably in enforcing such rules and regulations but shall not be liable for
their non­enforcement.

     

    
      	
              17.5

            	
              Access
      to Premises

            

    

     

    
      	
               
      

            	
              (a)

            	
              Without
      limiting any other rights Landlord may have pursuant hereto or at law,
      Landlord shall have the right to enter the Premises at any time for any of
      the following purposes: (i) to examine the Premises and to perform any
      maintenance, repairs or alterations to any part of the Premises or to any
      equipment and services serving the Premises or any other part of the
      Project; (ii) in cases of emergency; (iii) to read any utility or other
      meters; (iv) during the last twelve (12) months of the Term to show the
      Premises to prospective tenants and to permit prospective tenants to make
      inspections, measurements and plans; and (v) at any time during the Term
      to show the Premises to prospective purchasers or
  lenders.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Landlord
      shall have the right to run through the Premises conduits, wires, pipes,
      ducts and other elements of any systems for utilities, heating,
      ventilating, air conditioning and humidity control, telephone and other
      communications systems and any other such systems to serve the Premises or
      the Project.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Landlord
      shall exercise its rights pursuant to this Section 17.5 in such manner and
      at such times as Landlord, acting reasonably but in its sole discretion,
      shall determine. At any time that entry by Landlord is desired in case of
      emergency, and if no personnel of Tenant are known by Landlord to be
      present on the Premises or if such personnel fail for any reason to
      provide Landlord immediate access at the time such entry is desired,
      Landlord may forcibly enter the Premises without liability for damage
      caused thereby.

            

    

     

    17.6                    
Expropriation

     

    
      	
               
      

            	
              (a)

            	
              If
      the Premises or any part thereof shall be expropriated (which for the
      purposes of this Article 17 shall include a sale by Landlord to any
      authority with the power to expropriate) by any competent authority,
      then:

            

    

     

    
      	
            	
              (i)

            	
              Landlord
      and Tenant shall co-operate with each other so that Tenant may receive
      such award to which it is entitled in law for relocation costs, business
      interruption, and the value of leasehold improvements paid for by Tenant
      and the amortized portion, if any, of leasehold improvements paid for by
      Tenant, and so that Landlord may receive the maximum award to which it may
      be entitled in law for all other compensation arising from such
      expropriation including, without limitation, all compensation for the
      value of Tenant’s leasehold interest in the
  Premises;

            

    

     

    
      
         

      

      
        - 28
-

        
          

        

      

      
         

        
          -  -

           

        

      

    

     

    
      	
            	
              (ii)

            	
              except
      for such compensation to which Tenant shall be entitled as aforesaid, all
      Tenant’s other rights in respect of such expropriation are hereby assigned
      to Landlord, and within ten (10) days after request by Landlord Tenant
      shall execute such further documents as requested by Landlord to give
      effect to such assignment, failing which Landlord is hereby irrevocably
      appointed, pursuant to the Substitute Decisions Act
      (Ontario), Tenant’s attorney to do so on behalf of Tenant and in
      its name; and

            

    

     

    
      	
            	
              (iii)

            	
              Landlord
      shall have the option, to be exercised by written notice to Tenant, to
      terminate this Lease, effective on the date the expropriating authority
      takes possession of the whole or any portion of the
    Premises.

            

    

     

    
      	
               
      

            	
              (b)

            	
              If
      the whole or any part of the Project shall be expropriated, then subject
      to the foregoing provisions respecting expropriation of the
      Premises:

            

    

     

    
      	
            	
              (i)

            	
              all
      compensation resulting from such expropriation shall be the absolute
      property of Landlord and all of Tenant’s rights, if any, to any such
      compensation are hereby assigned to Landlord and within ten (10) days
      after request by Landlord Tenant shall execute such further documents as
      requested by Landlord to give effect to such assignment, failing which
      Landlord is hereby irrevocably appointed, pursuant to the Substitute Decisions Act
      (Ontario) Tenant’s attorney to do so on behalf of Tenant and in its
      name; and

            

    

     

    
      	
            	
              (ii)

            	
              if
      the expropriation of part of the Project is such as to render undesirable,
      in Landlord’s reasonable opinion, the continuing operation of the portion
      of the Project in which the Premises are situate, Landlord shall have the
      right to terminate this Lease as of the date the expropriating authority
      takes possession of all or any portion of the
  Project.

            

    

     

    
      	
              17.7

            	
              Landlord’s
      Consent

            

    

     

    If
Landlord withholds, delays or refuses to give consent as provided by the terms
of this Lease, whether or not Landlord is entitled to do so, Landlord shall not
be liable for any losses or damages in any way resulting therefrom and Tenant
shall not be entitled to terminate this Lease or exercise any remedy whatever in
respect thereof except to seek the order of a court of competent jurisdiction
compelling Landlord to grant any such consent which Landlord is obliged to grant
pursuant to the terms of this Lease.

     

    
      	
              18.

            	
              MISCELLANEOUS

            

    

     

    18.1                     Notices

     

    All
notices, statements, demands, requests or other instruments (“Notices”) which
may be or are required to be given under this Lease shall be in writing and
shall be delivered in person or sent by prepaid registered Canadian mail
addressed, if to the Tenant, at the Address for Service of Notice on Tenant, and
if to the Landlord at the Address for Service of Notice on Landlord, all as
provided in subsection 1(i) hereof.

     

    All such
Notices shall be conclusively deemed to have been given and received upon the
day the same is personally delivered or, if mailed as aforesaid, four (4)
business days (excluding Saturdays,  Sundays, holidays and days upon
which regular postal service is interrupted or unavailable for any reason) after
the same is mailed as aforesaid. Any party may at any time by notice in writing
to the other change the Address for Service of Notice on it. If two or more
persons are named as Tenant, any Notice given hereunder shall be sufficiently
given if delivered or mailed in the foregoing manner to any one of such
persons.

     

    
      	
              18.2

            	
              Complete
      Agreement

            

    

     

    There are
no covenants, representations, agreements, warranties or conditions in any way
relating to the subject matter of this Lease or the tenancy created hereby,
expressed or implied, collateral or otherwise, except as expressly set forth
herein, and this Lease constitutes the entire agreement between the parties and
may not be modified except by subsequent written agreement duly executed by
Landlord and Tenant.

     

    
      
        
           

        

        
          - 29
-

          
            

          

        

        
           

        

      

    

     

    
      	
              18.3

            	
              Time
      of the Essence

            

    

     

    Time is
of the essence of all terms of this Lease.

     

    
      	
              18.4

            	
              Applicable
      Law

            

    

     

    This
Lease shall be governed by and interpreted in accordance with the laws of the
Province of Ontario. The parties agree that the Courts of Ontario shall have
jurisdiction to determine any matters arising hereunder.

     

    
      	
              18.5

            	
              Severability

            

    

     

    If any
provision of this Lease is illegal, unenforceable or invalid, it shall be
considered separate and severable and all the remainder of this Lease shall
remain in full force and effect as though such provision had not been included
in this Lease but such provision shall nonetheless continue to be enforceable to
the extent permitted by law.

     

    
      	
              18.6

            	
              Section
      Numbers and Headings

            

    

     

    The table
of contents and all section numbers and headings of this Lease are inserted for
convenience only and shall in no way limit or affect the interpretation of this
Lease. References in this Lease to section numbers refer to the applicable
section of this Lease, unless a statute or other document is specifically
referred to.

     

    
      	
              18.7

            	
              Interpretation

            

    

     

    Whenever
a word importing the singular or plural is used in this Lease, such word shall
include the plural and singular respectively. Where any party is comprised of
more than one entity, the obligations of each of such entities shall be joint
and several. Words importing persons of either gender or firms or corporations
shall include persons of the other gender and firms or corporations as
applicable. Subject to the express provisions contained in this Lease, words
such as “hereof”, “herein”, “hereby”, “hereafter”, and “hereunder” and all
similar words or expressions shall refer to this Lease as a whole and not to any
particular section or portion hereof.

     

    
      	
              18.8

            	
              Successors

            

    

     

    This
Lease shall enure to the benefit of and be binding upon the parties hereto and
their respective heirs, executors, administrators, successors, assigns and other
legal representatives except only that this Lease shall not enure to the benefit
of any of such parties unless and only to the extent expressly permitted
pursuant to the provisions of this Lease.

     

    
      	
              18.9

            	
              Monetary
      Amounts

            

    

     

    Except as
may be otherwise expressly provided herein, all monetary amounts set out in this
Lease are in Canadian currency and are exclusive of Canadian Goods and Services
Tax and any other applicable Sales Taxes.

     

    
      	
              18.10

            	
              Demolition
      or Substantial Alterations

            

    

     

    If
Landlord wishes to demolish or substantially alter or renovate all or a
substantial portion of the Building containing the Premises, Landlord shall have
the right, to be exercised by not less than nine (9) months written notice to
Tenant, to terminate its Lease. Tenant agrees that upon the termination date
specified in such notice, Tenant shall vacate the Premises and deliver up vacant
possession of the Premises in accordance with the terms of this Lease. Tenant
acknowledges that it shall have no claim against Landlord as a result of the
exercise by Landlord of its right hereunder and upon such termination, all Rent
shall be apportioned to the effective date of such termination and upon
compliance by each of the parties with their respective obligations under the
Lease up to and including the termination date, each of the parties shall
thereafter be released from all future obligations arising under this
Lease.

     

    
      
         

      

      
        - 30
-

        
          

        

      

      
         

      

    

    
      	
              19.

            	
              PRIVACY
      POLICY

            

    

     

    Tenant
hereby consents to the collection, use and disclosure of personal information
collected by or on behalf of Landlord by Bentall Real Estate Services Limited
Partnership (`Bentall”) or any of Landlord’s or Bentall’s agents, affiliates, or
service providers for the purposes of: (i) considering this Lease and
determining the suitability of Tenant both for the initial Term and any renewals
or extensions thereafter, if applicable; (ii) taking action for collection of
Rents in the event of default by Tenant; (iii) facilitating the
pre­authorization payment plan, if applicable; and (iv) otherwise complying
with Bentall’s Privacy Policy, a copy of which is available at www.Bentall.com. Consent under
this Lease includes the disclosure of such information to credit agencies,
collection agencies and existing or potential lenders, investors and purchasers.
Tenant also consents to, and confirms its authority to consent to Bentall’s
collection, use and disclosure, for such purposes, of personal information about
employees of Tenant and other individuals whose personal information is provided
to or collected by Bentall in connection with this Lease.

     

    IN WITNESS WHEREOF the parties
have executed this Lease.

     

    
      	 	
              BENTALL REAL ESTATE SERVICES
      LIMITED PARTNERSHIP (By its
      General Partner, Bentall Real Estate Services G.P. Ltd.) As Authorized
      Agent for PENYORK
      PROPERTIES III INC. (Landlord)

            
	 	 
	 	
              Per:   
      

            	
              “Tony Vadacchino”

            
	 	 
      	
              (Authorized
      Signatory)

            
	 	 
      	
              c/s

            
	 	
              Per:

            	
              “Stuart Wanlin”

            
	 	 
      	
              (Authorized
      Signatory)

            
	 	 	 
	 	
              I/We
      have the authority to bind the
Corporation.

            

    

     

    

      
        	 	
                OCCULOGIX, INC.
      (Tenant)

              
	 	 
	 	
                Per:  
      

              	
                “John
      Caloz”

              
	 	 
      	
                Name:  
      

              	
                John
      Caloz

              
	 	 
      	
                Title:

              	
                Chief
      Financial Officer

              
	 	 
      	
                c/s

              
	 	
                Per:

              	
                “William
      G. Dumencu”

              
	 	 
      	
                Name:

              	
                William
      G. Dumencu

              
	 	 
      	
                Title:

              	
                Vice
      President, Finance

              
	 	 	 	 
	 	
                I/We
      have the authority to bind the
Corporation.

              

      

    

    
      
         

      

      
        - 31
-

        
          

        

      

      
         

      

    

    SCHEDULE
"A"

     

    LEGAL DESCRIPTION OF
PROJECT

     

    ALL AND
SINGULAR those lands and premises situated, lying and being in the City of
Mississauga, in the Regional Municipality of Peel, and being those parts of
Block 10 on a Plan of Subdivision registered in the Land Registry Office for the
Land Titles Division of Peel as No. 43M-533 designated as Parts 1 and 2 on a
Plan of Survey deposited in the Land Registry Office as No.
43R-14899.

     

    SUBJECT
TO an easement over the said Part 2, Plan 43R-14899 save and except Parts I and
2, Plan 43R-16904, as more particularly set out by Instrument No. 495246 as
amended by Instrument No. LT 1058959;

     

    SUBJECT
TO an easement in favour of Bell Telephone Company of Canada and Mississauga
Hydro Electric-Commission, over so much of Block 10 on Plan 43M-523 as is
unencumbered by buildings, or other structures, as more particularly set out in
Instrument No. 495241;

     

    Being all
of Parcel Block 10-5, Section 43M-533.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule
"B"

     

    OUTLINE PLAN OF
PREMISES

     

    Building 9, Suite
201

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule
“B-1”

     

    OUTLINE PLAN OF
PREMISES

     

    Building 9, Suite
103

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Schedule
"C"

     

    SECURITY
AGREEMENT

     

    Intentionally
Deleted

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule
"D"

     

    SPECIAL
PROVISIONS

     

    
      	
              1.

            	
              Estimate of Operating Costs and
      Realty Taxes

            

    

     

    The
parties agree that Landlord has estimated that Tenant’s obligations hereunder in
respect of Operating Costs and Realty Taxes for the year 2005 would be
approximately $10.93 per square foot of the Rentable Area of the Premises; it is
understood that this estimate by Landlord is a bona fide estimate made September
21, 2005, but that it is not intended by Landlord to be relied upon by Tenant
and is not binding and does not impose liabilities on Landlord or affect
Tenant’s obligations hereunder.

     

    
      	
              2.

            	
              Conditions to Tenant’s
      Rights

            

    

     

    If:

     

    
      	
               
      

            	
              (a)

            	
              Tenant
      pays the Rent and other sums payable hereunder and performs each and every
      of the covenants, provisos and agreements herein contained on the part of
      Tenant to be paid and performed, punctually and in accordance with the
      provisions of the Lease;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Tenant
      has not become insolvent or bankrupt, and has not made any assignment for
      the benefit of creditors and has not, becoming bankrupt or insolvent,
      taken the benefit of any Act now or hereafter in force for bankrupt or
      insolvent debtors;

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      petition in bankruptcy has not been filed against Tenant and a receiving
      order has not been made against Tenant, and no proceedings have been
      commenced respecting the winding-up or termination of the existence of
      Tenant;

            

    

     

    
      	
               
      

            	
              (d)

            	
              no
      receiver or other person has taken possession or effective control of the
      assets or business of Tenant or a substantial portion thereof pursuant to
      any security or other agreement or by any other means whatsoever, and
      there are no outstanding writs of execution against
  Tenant;

            

    

     

    
      	
               
      

            	
              (e)

            	
              Tenant
      has not assigned the Lease or sublet or permitted a change in occupancy of
      any portion or portions of the Premises, and there has been no change in
      ownership of the majority of the capital stock of Tenant and no change in
      the name under which the business on the Premises is
      conducted;

            

    

     

    
      	
               
      

            	
              (f)

            	
              Tenant
      has continuously, actually physically occupied all of the Premises for the
      active and diligent conduct of business in accordance with the terms of
      the Lease; and

            

    

     

    
      (g)           Tenant
has executed and delivered to Landlord the Lease in a form satisfactory to
Landlord, 

       

      then, and
only then, Tenant shall have the rights conferred under Sections 3, 4 and 6 of
this Schedule “D”.

    

     

    
      	
              3.

            	
              Rent Free
      Periods

            

    

     

    Subject
to the provisions of Section 2 of this Schedule “D”, Tenant shall not be
responsible for the payment of:

     

    
      	
               
      

            	
              (i)

            	
              Basic
      Rent, Operating Costs and Realty Taxes for the first two (2) months of the
      initial Term of the Lease (the “First Rent Free Period”) but the Tenant
      shall be responsible for the payment of all other items of Additional Rent
      during the First Rent Free Period;
and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Basic
      Rent for the third month of the initial Term of the Lease (the “Second
      Rent Free Period”) but the Tenant shall be responsible for the payment of
      all items of Additional Rent during the Second Rent Free
      Period.

            

    

     

    If at any
time during the Term:

     

    
      	
               
      

            	
              (a)

            	
              the
      Lease is terminated by reason of a default of
  Tenant;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              Tenant
      has become bankrupt or insolvent or has taken the benefit of any statute
      for bankrupt or insolvent debtors, or has filed a proposal, or has made an
      assignment for the benefit of creditors or any arrangement or
      compromise,

            

    

     

    
      then in
such event, and without prejudice to any of Landlord’s other rights and remedies
available to it under the Lease and at law, the unamortized portion of the First
Rent Free Period and Second Rent Free Period calculated from the date that
Landlord no longer actually receives payments of Rent under the Lease (whether
by way of Court Order or otherwise) on the basis of an assumed rate of
depreciation on a straight line basis to zero over the Term of the Lease shall
immediately become due and payable to Landlord as Additional
Rent.

    

     

    
      	
              4.

            	
              Right of First
      Offer

            

    

     

    Subject
to the provisions of Section 2 of this Schedule “D, and subject to existing
tenants’ prior rights, Tenant shall have a one time only right of first offer to
lease:

     

    
      	
               
      

            	
              (i)

            	
              any
      space in Building 9 (“First ROFO Space”);
and/or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Suite
      200 in Building 10 (“Second ROFO Space”) (collectively the “ROFO
      Space”)

            

    

     

    whenever
such space becomes available for re-leasing from time to time by the Landlord,
after the termination, surrender or expiry of the existing leases of such space
to occur following the date of the Lease or the leases of tenants relocated to
all or a portion of the ROFO Space (it being hereby acknowledged that, as of the
date hereof, the Second ROFO Space is currently available for lease and that
despite the foregoing, the Landlord shall be entitled to enter into a lease with
a third party for the ROFO Space or any part thereof at any time, from time to
time, until the whole of the ROFO Space is leased, without triggering the within
right of first offer) have expired or been terminated either by the tenant
(pursuant to any rights of termination it may have under its  lease)
or by the Landlord (as a result of an event of default) and after any options to
renew or extend the ROFO  Space granted to such tenant(s) under the
terms of such lease(s) have not been exercised or have expired. Further, if any
such tenant(s) either fail(s), or elect(s) not, to exercise its option to renew
or extend or if such tenant(s) do(es) not have an option to renew or extend
contained in its lease for the ROFO Space, Landlord shall, despite anything
contained in this Section 4 to the contrary, be free to enter into an agreement
with such tenant(s) extending the term of its lease for the ROFO Space without
triggering the within right of first offer.

     

    In the
event that ROFO Space becomes available the Landlord shall provide the Tenant
with written notice (“Landlord’s Notice”), specifying what space is available
(i.e. either the whole or any part of the  ROFO Space, as the case may
be) (“Available ROFO Space”) and the availability date for the Available
ROFO  Space and the Tenant shall have ten (10) business days from
receipt of the Landlord’s Notice within which to deliver written notice (“ROFO
Notice”) to the Landlord of its agreement to lease the whole of the Available
ROFO Space on the same terms and conditions as contained in the Lease for the
Premises save and except that: (a) there shall be no Landlord’s Work, rent free
period or other financial inducements; (b) the basic rent payable for the
Available ROFO Space shall be ROFO Market Rent (“ROFO Market Rent” means the
annual basic rental which could reasonably be obtained by Landlord for the
Available ROFO Space from a willing tenant or willing tenants dealing at arms’
length with Landlord in the market prevailing for a term commencing on the
commencement date of the term of lease for the Available ROFO Space, having
regard to all relevant circumstances including the size and location of the
Available ROFO Space, the facilities afforded, the terms of the lease thereof
(including its provisions for Additional Rent), the terms aforesaid regarding
tenant inducements, the condition of the Available ROFO Space and the use of the
Available ROFO Space, and having regard to rentals currently being obtained for
space in the Building and for comparable space in other buildings comparably
located, and inducements being offered to tenants (including rent free periods,
allowances and other inducements); (c) the commencement date shall be as
specified by the Landlord in the Landlord’s Notice, and (d) the expiration date
shall be coterminous with the expiry date of the Lease, failing which this right
of first offer shall be null and void with respect to the Available ROFO Space
and the Landlord shall be free to lease the Available ROFO Space or any part
thereof to a third party on such terms and conditions as the Landlord, in its
sole discretion, determines and this right of first offer shall only apply to
the balance of the ROFO Space. For greater certainty, if the ROFO Market Rent is
not agreed upon between the parties within thirty (30) days of the delivery of
the Landlord’s Notice, the ROFO Market Rent shall be established in the manner
set out in Section 5 below and, in such event, there shall be no delay to the
commencement date of the Available ROFO Space as set forth in the Landlord’s
Notice and, until such time as the ROFO Market Rent is determined, the Tenant
shall pay to the Landlord the Basic Rent then payable hereunder for the
Premises, as applicable to the Available ROFO Space, and upon determination of
the ROFO Market Rent for the Available ROFO Space, either Landlord shall pay to
Tenant any excess, or Tenant shall pay to Landlord any deficiency, in the
payments of Basic Rent previously made by Tenant with respect to the Available
ROFO Space, without interest.

     

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

     

    The
Tenant shall execute an agreement (to be prepared by the Landlord) amending the
provisions of the Lease in order to incorporate the terms of the
foregoing.

     

    Any
Available ROFO Space which is made available to the Tenant under this Section 4
shall be dealt with as a whole.

     

    
      	
              5.

            	
              ROFO Market
      Rent

            

    

     

    Either
Landlord or Tenant (the “Requesting Party”) shall be entitled to notify the
other party hereto (the “Receiving Party”) of the name of an expert for the
purpose of determining the ROFO Market Rent. Within fifteen (15) days after such
notice from the Requesting Party, the Receiving Party shall notify the
Requesting Party either approving the expert proposed by the Requesting Party or
naming another expert for the purpose of determining the ROFO Market Rent.
Should the Receiving Party fail to give notice to the Requesting Party within
the said fifteen (15) day period, the expert named in the notice given by the
Requesting Party shall perform the expert’s functions hereinafter set forth. If
Landlord and Tenant are unable to agree upon the selection of the expert within
fifteen (15) days after such notice from the Receiving Party to the Requesting
Party, then either party shall be entitled to apply to a court to appoint an
expert in the same manner as an arbitrator may be appointed by a court under the
Arbitration Act, 1991
(Ontario), as amended or replaced. The expert appointed, either by
Landlord and/or Tenant or by a court, shall be qualified by education,
experience and training to value real estate for rental purposes in the Province
of Ontario and have been ordinarily engaged in the valuation of real property in
the municipality in which the Project is located for at least the immediately
preceding five (5) years. Within thirty (30) days after being appointed the
expert shall make a determination of the Market Rent for the ROFO Space, without
receiving evidence from either Landlord or Tenant. The cost of such
determination shall be borne by the Tenant. The determination of the expert as
to the ROFO Market Rent shall be conclusive and binding upon Landlord and Tenant
and not subject to appeal.

     

    
      	
              6.

            	
              Parking

            

    

     

    
      	
               
      

            	
              (a)

            	
              Subject
      to Section 2 of this Schedule “U’, throughout the Term, Tenant shall have
      the right to use:

            

    

     

    
      	
               
      

            	
              (i)

            	
              seven
      (7) reserved underground parking spaces;
and

            

    

     

    
      
        	
              	
                (ii) 

              	
                twelve
      (12) unreserved surface parking spaces (on a “first-come, first-served”
      basis) 

              

      

       

      for
parking automobiles (collectively the “Parking Spaces”) in the parking
facilities at the Project (the “Parking Facility”), in such locations as
designated from time to time by Landlord or the operator of the Parking
Facility, and subject to the terms set out below. For each of such Parking
Spaces, Tenant shall pay to Landlord, whether or not Tenant actually uses the
Parking Spaces or any of them, the prevailing monthly rates charged from time to
time by Landlord or the operator of the Parking Facility for the use of reserved
and unreserved Parking Spaces respectively. Notwithstanding anything to the
contrary contained herein, there shall be no licence fee payable by Tenant to
Landlord or Landlord’s parking operator for Tenant’s use of the Parking Spaces
in the Parking Facility during the initial Term only, but, for greater
certainty, Tenant shall be responsible for payment to Landlord of its
Proportionate Share or share, as of the case may be, of Operating Costs and
Realty Taxes associated with the Parking Facility.

    

     

    
      	
               
      

            	
              (b)

            	
              Tenant
      shall ensure that Landlord is at all times in possession of up-to-date
      information as to the owner, licence plate number and description of each
      automobile authorized to use such Parking
  Spaces.

            

    

     

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (c)

            	
              Landlord
      may from time to time make and amend such rules and regulations for the
      management and operation of the Parking Facility as Landlord shall
      determine and Tenant and all persons under its control, including without
      limitation all users of the Parking Spaces, shall be bound by and shall
      comply with all of such rules and regulations of which notice is given to
      Tenant from time to time and all of such rules and regulations shall be
      deemed to be incorporated into and form a part of the
    Lease.

            

    

     

    
      	
               
      

            	
              (d)

            	
              For
      emphasis only, and without affecting or limiting the meaning of any
      provision of the Lease, it is agreed that the following sections of the
      Lease apply to the rights granted to Tenant hereunder in respect of the
      Parking Spaces, namely Sections 13.5 (“Landlord’s Non-Liability”) and 13.6
      (“Indemnity of Landlord”).

            

    

     

    
      	
               
      

            	
              (e)

            	
              If
      Tenant or any person permitted by Tenant to use any of the Parking Spaces
      fails to comply with the provisions of the Lease in respect of the Parking
      Spaces, including without limitation the rules and regulations from time
      to time applicable to the Parking Facility, then Landlord shall have the
      right to terminate or suspend the privileges of the offending party to use
      the Parking Facility, provided that the exercise of such right by Landlord
      shall not limit or affect the obligation of Tenant hereunder to pay for
      all Parking Spaces.

            

    

     

    
      	
               
      

            	
              (f)

            	
              No
      motor vehicle other than a private passenger automobile, station wagon or
      van shall be parked on or in any part of the Common Facilities of the
      Project, including without limitation the Parking Facility, nor shall any
      repairs other than emergency repairs immediately necessary for operation
      of a vehicle be made to any motor vehicle in or on any of the Common
      Facilities, including without limitation the Parking Facility, and no
      motor vehicle shall be driven on any part of the Common Facilities other
      than on a driveway or in the Parking
Facility.

            

    

     

    
      	
               
      

            	
              (g)

            	
              It
      is understood and agreed that Landlord is not responsible for theft of or
      damage to the vehicle or its equipment or articles left in the
      vehicle.

            

    

     

    
      	
               
      

            	
              (h)

            	
              It
      is understood and agreed that no vehicle powered by propane, hydrogen or
      natural gas are allowed in any underground portion of the Parking
      Facility.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Tenant
      may be required to pay to the Landlord a deposit amount for each parking
      pass issued. Such parking deposit shall be held by the Landlord in the
      event that any of the parking passes so issued are damaged, lost or
      destroyed. Upon the expiry or earlier termination of the Lease, if the
      deposit amounts have not previously been deducted at any time during the
      Term, the deposit amounts shall be refunded to the Tenant in full upon
      presentation to the Landlord of the same number of parking passes
      originally issued to the Tenant, in good condition and
    repair.

            

    

     

    
      	
               
      

            	
              (j)

            	
              If
      requested by Landlord, Tenant shall execute Landlord’s standard form of
      parking agreement to give effect to the
  foregoing.

            

    

     

    
      	
              7.

            	
              Landlord’s
      Conditions

            

    

     

    Concurrently
with Tenant’s execution and delivery of this Lease to Landlord, Tenant shall
deliver to Landlord such information as the Landlord requires (“Information”) to
satisfy itself as to the financial  strength of Tenant and Tenant
hereby consents to Landlord making independent credit inquiries for that
purpose. This Lease is conditional for a period of ten (10) business days after
receipt by Landlord of such Information, together with this Lease and the Rent
Deposit Agreement duly executed by Tenant, for Landlord to (i) satisfy itself as
aforesaid; and (ii) obtain the approval of its senior management.

     

    If
Landlord notifies Tenant in writing within such conditional period that either
condition has not been satisfied, then this Lease and the Rent Deposit Agreement
shall be null and void and of no further force or effect. In the event of such
termination, Landlord shall return any deposits received by it to Tenant without
interest or deduction and Landlord shall not be liable for any losses, damages
or costs whatsoever. These conditions have been inserted for the sole benefit of
Landlord and may be waived by Landlord in its sole and absolute discretion at
any time on notice in writing to Tenant.

     

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

     

    Schedule
"E"

     

    EXCLUSIVE USES OF OTHER
TENANTS

     

    2600 Skymark Avenue,
Mississauga, Ontario

     

    None as
of the date of this Lease.

     

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Schedule
"F"

     

    RENT DEPOSIT
AGREEMENT

     

    THIS RENT DEPOSIT AGREEMENT is
dated October 17, 2005,

     

    BETWEEN:

     

    
      	
               
      

            	
              OCCULOGIX,
      INC.

            

    

     

    
      	
               
      

            	
              (hereinafter
      called “Tenant”)

            

    

     

    OF THE
FIRST PART

     

    
      	
               
      

            	
              -
      and -

            

    

     

    
      	
               
      

            	
              PENYORK
      PROPERTIES III INC.

            

    

     

    
      	
               
      

            	
              (hereinafter
      called “Landlord”)

            

    

     

    OF THE
SECOND PART

     

    WHEREAS:

     

    
      	
              A.

            	
              By
      a lease of even date (“Lease”) between Landlord and Tenant, Landlord
      leased to Tenant premises known as Suites 103 and 201, Building 9 (the
      “Premises”) in the building municipally known as 2600  Skymark
      Avenue, Mississauga, Ontario, as more particularly described in the Lease,
      for a term of One (1) Year and Six (6) Months, commencing on February 1,
      2006 and expiring on July 31, 2007;

            

    

     

    
      	
              B.

            	
              To
      induce Landlord to enter into the Lease, Tenant has agreed to deliver to
      Landlord a rent deposit in the amount of Twenty Four Thousand Six Hundred
      and Thirty-Four Dollars and Sixty-Two Cents ($24,634.62) (the “Rent
      Deposit”), to be held without interest and applied on the terms and
      conditions set out in this
Agreement;

            

    

     

    NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency whereof is hereby
acknowledged by the parties hereto, the parties hereto make the following
agreement:

     

    
      	
              1.

            	
              Tenant
      shall deposit with Landlord the Rent Deposit. Provided Tenant is not then
      in default, the amount of Twelve Thousand Three Hundred and Seventeen
      Dollars and Thirty-One Cents ($12,317.31) shall be applied towards first
      Rent accruing due under the Lease, after expiry of the First Rent Free
      Period and Second Rent Free Period (as both of the foregoing terms are
      defined in the Lease). Landlord shall hold the balance of the Rent
      Deposit, without interest, as a prepayment of the Rent payable by Tenant
      under the Lease during the Term and any renewals or extensions thereof and
      any tenancy resulting from an overholding, and to secure and may be
      applied against the other amounts referred to in paragraph 7
      below.

            

    

     

    
      	
              2.

            	
              If
      at any time any Rent payable under the Lease shall be overdue, all or any
      portion of the Rent Deposit shall, at Landlord’s option, be applied to the
      payment of any Rent then due and owing. Further, if Tenant defaults in the
      performance of any of the terms, covenants, conditions and provisions of
      the Lease as and when the same are due to be performed by Tenant, then all
      or any part of the Rent Deposit shall, at Landlord’s option, be applied on
      account of any losses or damages sustained by Landlord as a result of such
      default.

            

    

     

    
      	
              3.

            	
              If
      all or any part of the Rent Deposit is applied by Landlord on account of
      the payment of Rent or on account of any default or any losses or damages
      sustained by Landlord as aforesaid, then Tenant shall, within three (3)
      days after demand from Landlord, remit to Landlord a sufficient amount in
      cash or by certified cheque to restore the Rent Deposit to the original
      sum required to be deposited as set forth herein plus interest on the
      amount of such default, loss or damages sustained by Landlord at a rate of
      three (3%) percent per annum in excess of the rate of interest known as
      the prime rate of interest charged by Landlord’s bank in Ontario and which
      serves as the basis on which other interests rates are calculated for
      Canadian dollar loans in Ontario from time to time, from the date of
      default to the date the Rent Deposit is restored as
    aforesaid.

            

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
              4.

            	
              If
      Tenant (i) complies with all of the terms, covenants, conditions and
      provisions under the Lease and promptly pays all Rent therein throughout
      the term; (ii) the Lease has not been Disclaimed (as hereinafter defined);
      (iii) the Lease has not terminated for any reason prior to the natural
      expiry date; and (iv) Tenant has complied with all of the obligations
      under the Lease to the extent the same remains in Landlord’s possession
      and is not applied to any of Tenant’s obligations hereunder, Landlord
      shall return the balance of the Rent Deposit to Tenant within thirty (30)
      days after the expiry of the Lease.

            

    

     

    
      	
              5.

            	
              Landlord
      may deliver the Rent Deposit, or such portion thereof remaining on hand to
      the credit of Tenant, to any purchaser, mortgagee or assignee of
      Landlord’s interest in the Premises or the Project under the Lease or in
      the Lease and thereupon Landlord shall be and is hereby discharged from
      any further liability with respect to the Rent
  Deposit.

            

    

     

    
      	
              6.

            	
              In
      the event of any bankruptcy, insolvency, winding-up or other creditors’
      proceeding, the Rent Deposit shall be the absolute property of Landlord
      and shall, at Landlord’s option, be automatically appropriated and applied
      against the Rent and any other amounts referred to in paragraph 7
      below.

            

    

     

    
      	
              7.

            	
              The
      Rent Deposit shall secure and may, at Landlord’s option, be applied on
      account of any one or more of the following: (i) the due and punctual
      payment of all Rent and all other amounts of any kind whatsoever payable
      under the Lease by Tenant whether to Landlord or otherwise and whether or
      not relating to or payable in respect of the Premises, including, without
      limitation, any amount which would have become payable under the Lease to
      the date of the expiry of the Lease had the Lease not been Disclaimed or
      terminated; (ii) the prompt and complete performance of all obligations
      contained in the Lease on the part of Tenant to be kept, observed and
      performed; (iii) the due and punctual payment of all other amounts payable
      by Tenant to Landlord; (iv) the indemnification of Landlord in respect of
      any losses, costs or damages incurred by Landlord arising out of any
      failure by Tenant to pay any rent or other amounts payable under the Lease
      or resulting from any failure by Tenant to observe or perform any of the
      other obligations contained in the Lease; (v) liquidated damages in
      compensation for the money spent by Landlord with respect to the Premises
      to make them ready for Tenant’s use and occupancy; (vi) the reduction in
      value of the Premises as a result of Tenant’s default; (vii) the
      performance of any obligation which Tenant would have been obligated to
      perform to the date of the expiry of the Lease had the Lease not been
      Disclaimed or terminated; (viii) the losses or damages suffered by
      Landlord as a result of the Lease being Disclaimed or terminated or (ix)
      the repayment of the unamortized portion as of the date the Lease is
      disclaimed or terminated of any allowances, inducements or other
      incentives paid by Landlord in conjunction with the
  Lease.

            

    

     

    
      	
              8.

            	
              The
      rights of Landlord hereunder in respect of the Rent Deposit shall continue
      in full force and effect and shall not be waived, released, discharged,
      impaired or affected by reason of the release or discharge of Tenant in
      any receivership, bankruptcy, insolvency, winding-up or other creditor’s
      proceedings, including, without limitation, any proceedings under the
      Bankruptcy and Insolvency Act (Canada) or the Companies Creditors
      Arrangement Act (Canada), or the surrender, disclaimer, repudiation or
      termination of the Lease (individually and collectively referred to herein
      as “Disclaimed”) in any such proceedings and shall continue with respect
      to the periods thereto and thereafter as if the Lease had not been
      Disclaimed.

            

    

     

    
      	
              9.

            	
              Capitalized
      expressions used herein, unless separately defined herein, have the same
      meaning as defined in the Lease unless separately defined
      herein.

            

    

     

    
      	
              10.

            	
              Time
      in all respects shall be of the
essence.

            

    

     

    
      	
              11.

            	
              This
      Agreement shall be binding upon and enure to the benefit of the parties
      hereto and their respective heirs, administrators, successors and
      assigns.

            

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

    

     

    IN WITNESS WHEREOF the parties
hereto have executed this Agreement.

     

    
      	 	
              OCCULOGIX,
      INC.

              (Tenant)

            
	 	 
	 	
              Per:  
      

            	 
      
	 	 
      	
              Name:

              Title:

            
	 	 
      	 
      
	 	
              Per:

            	 
      
	 	 
      	
              Name:

              Title:

            
	 	 
	 	
              I/We
      have the authority to bind the
Corporation.

            

    

    

     

    
      	 	
              BENTALL
      REAL ESTATE SERVICES LIMITED PARTNERSHIP
      (By its General Partner, Bentall Real
      Estate Services G.P. Ltd.) As Authorized Agent for PENYORK
      PROPERTIES III INC. (Landlord)

            
	 	 	 
	 	
              Per:  
      

            	 
      
	 	 
      	
              (Authorized
      Signatory)

            
	 	 
      	 
      
	 	
              Per:

            	 
      	
              c/s

            
	 	 
      	
              (Authorized
      Signatory)

            
	 	 
	 	I/We
      have the authority to bind the
Corporation.

    

    

      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

    

     

    Schedule
"G"

     

    ENVIRONMENTAL
QUESTIONNAIRE

     

    

     

    
      	
              Tenant’s
      Name:

            	
              Occulogix,
      Inc.

            	
              Premises:

            	
              Being
      all of the premises leased from time to time pursuant to the
      Lease

            
	 	 	 	 

    

    
      	
              Address:

            	
              2600
      Skymark Avenue, Mississauga, Ontario

            
	
              Telephone:

            	 
      	
              Fax:

            	 
      
	
              Person
      Responsible:

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

    

     

    
      	
              a)

            	
              Describe
      the business activities carried in the Premises and specify raw materials
      used, goods manufactured and any resulting waste materials or by-products
      that are generated;

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              b)

            	
              Will
      the business activities to be carried on in the Premises entail the use,
      generating or storing of any Hazardous Materials (as hereinafter defined)
      in any quantity? (including but not limited to chemical products,
      degreasers, corrosives, flammable or combustibles, fuels, solvents,
      paints, medication, oil, gas, batteries, extinguisher,
    etc.)

            
	 	 
	 
      	
              NO o  
      YES o (If so,
      describe...)

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              c)

            	
              Indicate
      the approximate amounts of Hazardous Materials which will be used or
      generated, monthly or annually, in the Premises.

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              d)

            	
              How
      do you intend to store the Hazardous Materials described in c)
      ?

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              e)

            	
              How
      will you dispose of the Hazardous Materials generated in the Premises by
      your business and who will be the carrier?

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              f)

            	
              Will
      the business activities to be carried on in the Premises require that you
      obtain any certificate of authorization, permit or environmental
      approvals, or provide environmental data (ie. NPRI or Ontario Reg. 127) to
      government agencies?

            
	 
      	
              NO o  
      YES o  (If
      so, give details and attach your certificate)

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              g)

            	
              Will
      the business activities to be carried on in the Premises entail the
      discharge of Hazardous Materials into the sewer system, water system or
      into the air?  If so, will pollution control equipment be
      required in the Premises to comply with Environmental Legislation and
      applicable Laws?

            
	 	 
	 
      	
              NO o  
      YES o  (If
      so, give details and list standards to be met)

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              h)

            	
              Will
      the business activities to be carried on in the Premises necessitate the
      installation of an underground or surface storage tank in the Premises or
      on the Common Facilities?

            
	 	 
	 
      	
              NO o  YES o  (If
      so, describe in detail the tank to be installed and material to be
      stored)

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              i)

            	
              Do
      you intend to have a prevention training or emergency plan in place to
      prevent an environmental incident or to deal with one if it
      occurs?

            
	 	 
	 
      	
              NO o  
      YES o  (If
      so, give details and attach a copy of the plan and/or training
      procedure)

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              J)

            	
              Does
      your firm have an environmental management program in
    place?

            
	 	 
	 
      	
              NO o  
      YES o  (If
      so, give details and attach a copy of the program)

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
              k)

            	
              Do
      you have appropriate insurance to handle Hazardous
    Materials?

            
	 	 
	 
      	
              NO o  YES  o  (If
      so, give details and attach a copy of the policy)

               

            
	 
      	 
      
	 
      	 
      
	 
      	 
      

    

    

     

    
      	
              DATE:

            	 
      	
              TENANT’S
      SIGNATURE:

            	 
      
	 
      	 
      

    

    All
defined terms where used herein shall have the meaning ascribed to them in the
lease of with this Schedule forms part.

     

    
      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

    

     

    Schedule
"H"

     

    TENANT
WORK

     

    Tenant
shall, at its cost and expense, complete or cause the completion of all
leasehold improvements which are required to complete the Premises for Tenant’s
business operations thereon prior to the Commencement Date (“Tenant’s Work”) in
accordance with the following provisions and those provisions of the Lease
applicable to the completion of Alterations to the Premises and in accordance
with the “Tenant Design
Criteria Manual”, if any, applicable to the Project.

     

    Prior to
commencing any Tenant’s Work on the Premises, Tenant shall deliver to the
Landlord certified copies or certificates of insurance duly executed by Tenant’s
insurers evidencing the placement of insurance coverage in compliance with the
provisions of the Lease. Tenant shall also deliver to Landlord certified copies
or certificates of insurance from its contractors and/or sub-contractors engaged
to perform Tenant’s Work, evidencing insurance coverage satisfactory to
Landlord, acting reasonably.

     

    Any
damage to the Premises, the Building or the Project caused during the
performance of Tenant’s Work by Tenant, its contractors, sub-contractors,
tradesmen or material suppliers shall immediately be repaired by Tenant to the
satisfaction of Landlord, or, at the Landlord’s option, by the Landlord at the
expense of Tenant payable on demand, plus fifteen (15%) percent of such costs
for Landlord’s supervision.

     

    The
opinion in writing of the Landlord’s architect or other qualified consultant
shall be binding on both the Landlord and Tenant respecting all matters of
dispute regarding the Tenant’s Work, including the state of completion and
whether or not work is completed in a good and workmanlike manner and in
accordance with plans and specifications for Tenant’s Work as approved by the
Landlord and with this Schedule.

     

    Tenant
shall furnish to the Landlord forthwith upon demand a statutory declaration or
other evidence satisfactory to the Landlord stating that there are no such
encumbrances, and that all accounts for work, services and materials have been
paid in full with respect to all of Tenant’s Work, together with evidence in
writing satisfactory to the Landlord that all assessments under the Worker’s Compensation Act
have been paid. In addition to the foregoing, Tenant shall also submit to
the Landlord forthwith any other information requested by the Landlord regarding
the supply of work, services and materials in connection with Tenant’s Work,
including without limitation details of the costs actually expended by Tenant in
the performance of Tenant’s Work.

     

    Notwithstanding
anything contained herein, including without limitation the provisions relating
to Landlord’s approval of the plans and specifications pertaining to the
Tenant’s Work and to any rights of Landlord to perform any work or do any other
thing on Tenant’s behalf, and notwithstanding any notice which may be received
by Landlord from any of Tenant’s contractors or sub-contractors, the Landlord
shall not be liable, and no lien or other encumbrance shall attach to the
Landlord’s interest in the Premises, pursuant to the Construction Lien Act, in
respect of materials supplied or work done by Tenant or on behalf of Tenant or
related to Tenant’s Work, and Tenant shall so notify or cause to be notified all
its contractors and sub-contractors and shall indemnify the Landlord from any
liability whatsoever arising out of the performance of Tenant’s Work. Tenant
hereby acknowledges and agrees that the provision of any materials, work or
services performed by the Landlord at Tenant’s expense in respect of any
Tenant’s Work or pursuant to any provision hereof shall be deemed to be provided
by Landlord on Tenant’s behalf as Tenant’s contractor.

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