Document:

ex10-1.htm

Exhibit 10.1

 

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

 

B E T W E E N:

 

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

 

- and -

 

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

 

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

 

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

 

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

 

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

 

1.                             Amendments to Sub-sublease

 

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

 

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

 

 

 

 

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

 

“1.1     Interpretation

 

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

 

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

 

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

 

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

 

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

 

“3.1     Sub-sublease Term

 

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

 

 

 

 

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

 

“3.4     Fixturing Period

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“3.5     New Area Leasehold Improvement Costs

 

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

 

 

 

 

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

 

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

 

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

 

“4.1     Basic Rent

 

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

 

 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

“10.12     Signage

 

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

 

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

 

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

 

2.                             Sublandlord’s Consent

 

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

 

 

 

 

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3.                             Affirmation of Sub-sublease

 

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

 

4.                             Paramountcy

 

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

 

5.                             Number, Gender, Liability

 

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

 

6.                             Headings and Captions

 

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

 

7.                             Further Assurances

 

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

 

8.                             Successors and Assigns

 

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

 

9.                             Time of the Essence

 

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

 

 

 

 

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10.                           Governing Law

 

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

 

11.                           Counterparts

 

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

 

12.                           Registration

 

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

 

 

[Remainder of page intentionally left blank]

 

 

 

 

 

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

 

	
 
	
IOGEN CORPORATION
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	 	 	/s/ Brian Foody	 
	
 
	
by: 
	
 
	
 

	
 
	
 
	
Name:Brian Foody
	
 

	
 
	
 
	
Title:President & Chief Executive Officer
	
 

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

 

 

 Signature Page - Amendment to Sub-sublease

 

 

EXHIBIT A

 

Outline of Responsibilities for Renovation of New Area

 

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

 

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

 

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

 

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

 

d)     Review all engineering field reports;

 

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

 

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

 

 

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

 

a)    Design costs and engineering costs;

 

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

 

c)    Obtain all permits;

 

d)   Construction management and schedule;

 

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

 

f)    Project close out 

 

 

 

 

 

EXHIBIT B

  

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT C – SUB-SUBTENANT’S WORK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

EXHIBIT D –SUB-SUBLANDLORD’S WORK

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT E - SCHEDULE C – Parking Spacesex4-2.htm

 

Exhibit 4.2

 

	
CANADA BUSINESS

CORPORATIONS ACT

 

FORM 7

 

RESTATED ARTICLES

OF INCORPORATION

(SECTION 180)

	
LOI CANADIENNE SUR LE

SOCIÉTÉS PAR ACTIONS

 

FORMULE 7

 

STATUS CONSTITUTIFS

MIS À JOUR

(ARTICLE 180)

	
1.

	
Name of corporation - Dénomination de la société

	
Corporation No.- N° de la société

	  	
SIERRA WIRELESS, INC.

	
292543-5

	
2.

	
The place in Canada where the registered office is situated

	
Lieu au Canada où est situé le siège social

	  	
City of Vancouver, Province of British Columbia

	
3.

	
The classes and any maximum number of shares that the corporation is authorized to issue

	
Catégories et tout nombre maximal d’actions que la société est autorisée à émettre

	  	
The Corporation is authorized to issue an unlimited number of common shares having the rights, privileges, restrictions and conditions set out in Schedule A attached hereto and an unlimited number of preference shares issuable in one or more series, having the rights, privileges, restrictions and conditions set out in Schedule B attached hereto.

	
4.

	
Restrictions, if any, on share transfer

	
Restrictions sur le transfer des actions, s’il y a lieu

	  	
None.

	
5.

	
Number (or minimum and maximum number) of directors

	
Nombre (ou nombre minimal et maximal) d’administrateurs

	  	
A minimum of 1 and a maximum of 9.

	
6.

	
Restrictions, if any, on business the corporation may carry on

	
Limites imposées à l’activité commerciale de la société, s’il y a lieu

	  	
None.

	
7.

	
Other provisions, if any

	
Autres dispositions, s’il y a lieu

	  	
Authorization to Appoint Additional Directors

	  	
The directors may, within the maximum number permitted by the articles, appoint one or more directors, who shall hold office for a term expiring not later than the close of the next annual meeting of the shareholders, but the total number of directors so appointed may not exceed one-third of the number of directors elected at the previous annual meeting of shareholders.

	
The foregoing restated articles of incorporation correctly set out, without substantive change, the corresponding provisions of the articles of incorporation as amended and supersede the original articles of incorporation.

	
Cette mise à jour des statuts constitutifs démontre exactement, sans changement substantiel, les dispositions correspondantes des statuts constitutifs modifiés qui remplacent les statuts constitutifs originaux.

	
Signature

	
Date

	
D -J

	
M

	
Y - A

	
FOR DEPARTMENTAL USE ONLY - À L’USAGE DE MINISTÈRE SEULEMENT

	/s/ David Sutcliffe	  1	4	
0

	
5

	
9

	
9

	
Title – Titre

President

	
Filed - Déposée    May 14, 1999

  

  

 

SCHEDULE A

 

PROVISIONS ATTACHING TO COMMON SHARES

 

The common shares (the “Common Shares”) shall have attached thereto the following rights, privileges, restrictions and conditions:

 

	
1.1

	
Dividends

 

Subject to the prior rights of the holders of the Preference Shares and any other shares ranking senior to the Common Shares with respect to priority in the payment of dividends, the holders of Common Shares shall be entitled to receive dividends and the Corporation shall pay dividends thereon, as and when declared by the board of directors of the Corporation out of moneys properly applicable to the payment of dividends, in such amount and in such form as the board of directors of the Corporation may from time to time determine, and all dividends which the board of directors of the Corporation may declare on the Common Shares shall be declared and paid in equal amounts per share on all Common Shares at the time outstanding.

 

	
1.2

	
Dissolution

 

In the event of the dissolution, liquidation or winding-up of the Corporation, whether voluntary or involuntary, or any other distribution of assets of the Corporation among its shareholders for the purpose of winding-up its affairs, subject to the prior rights of the holders of the Preference Shares and any other shares ranking senior to the Common Shares with respect to priority in the distribution of assets upon dissolution, liquidation, winding-up or distribution for the purpose of winding-up, the holders of the Common Shares shall be entitled to receive the remaining property and assets of the Corporation.

 

	
1.3

	
Voting Rights

 

The holders of the Common Shares shall be entitled to receive notice of and to attend all meetings of the shareholders of the Corporation and shall have one vote for each Common Share held at all meetings of the shareholders of the Corporation, except meetings at which only holders of another specified class or series of shares of the Corporation are entitled to vote separately as a class or series.

 

  

  

  

SCHEDULE B

 

PROVISIONS ATTACHING TO THE PREFERENCE SHARES

 

The preference shares (the “Preference Shares”), as a class, shall have attached thereto the following rights, privileges, restrictions and conditions:

 

	
1.1

	
Directors’ Authority to Issue in One or More Series

 

The board of directors of the Corporation may issue the Preference Shares at any time and from time to time in one or more series.  Before the shares of a particular series are issued, the board of directors of the Corporation shall fix the number of shares in such series and shall determine, subject to the limitations set out in the articles, the designation, rights, privileges, restrictions and conditions to be attached to the shares of such series including, without limitation, the rate or rates, amount or method or methods of calculation of dividends thereon, the time and place of payment of dividends, whether cumulative or non-cumulative or partially cumulative and whether such rate, amount or method of calculation shall be subject to change or adjustment in the future, the currency or currencies of payment of dividends, the consideration and the terms and conditions of any purchase for cancellation, retraction or redemption rights (if any), the conversion or exchange rights attached thereto (if any), the voting rights attached thereto (if any), and the terms and conditions of any share purchase plan or sinking fund with respect thereto.  Before the issue of shares of a series, the board of directors of the Corporation shall send to the Director (as defined in the Canada Business Corporations Act) articles of amendment containing a description of such series including the designation, rights, privileges, restrictions and conditions determined by the board of directors of the Corporation.

 

	
1.2

	
Ranking of Preference Shares

 

No rights, privileges, restrictions or conditions attached to a series of Preference Shares shall confer upon a series a priority in respect of dividends or return of capital over any other series of Preference Shares then outstanding.  The Preference Shares shall be entitled to priority over the Common Shares and over any other shares of the Corporation ranking junior to the Preference Shares with respect to priority in the payment of dividends and the distribution of assets in the event of the liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary, or any other distribution of the assets of the Corporation among its shareholders for the purpose of winding-up its affairs.  If any cumulative dividends or amounts payable on a return of capital in respect of a series of Preference Shares are not paid in full, the Preference Shares of all series shall participate rateably in respect of such dividends, including accumulations, if any, in accordance with the sums that would be payable on such shares if all such dividends were declared and paid in full, and in respect of any repayment of capital in accordance with the sums that would be payable on such repayment of capital if all sums so payable were paid in full; provided, however, that in the event of there being insufficient assets to satisfy in full all such claims to dividends and return of capital, the claims of the holders of the Preference Shares with respect to repayment of capital shall first be paid and satisfied and any assets remaining thereafter shall be applied towards the payment and satisfaction of claims in respect of dividends.  The Preference Shares of any series may also be given such other preferences, not inconsistent with sections 1.1 to 1.4 hereof, over the Common Shares and over any other shares ranking junior to the Preference Shares as may be determined in the case of such series of Preference Shares.

 

  

  

  

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1.3

	
Voting Rights

 

Except as hereinafter referred to or as otherwise required by law or in accordance with any voting rights which may from time to time be attached to any series of Preference Shares, the holders of the Preference Shares as a class shall not be entitled as such to receive notice of, to attend or to vote at any meeting of the shareholders of the Corporation.

 

	
1.4

	
Approval of Holders of Preference Shares

 

The rights, privileges, restrictions and conditions attaching to the Preference Shares as a class may be added to, changed or removed but only with the approval of the holders of the Preference Shares given as hereinafter specified.

 

The approval of the holders of Preference Shares to add to, change or remove any right, privilege, restriction or condition attaching to the Preference Shares as a class or to any other matter requiring the consent of the holders of the Preference Shares as a class may be given in such manner as may then be required by law, subject to a minimum requirement that such approval shall be given by resolution passed by the affirmative vote of at least two-thirds of the votes cast at a meeting of the holders of Preference Shares duly called for that purpose.  The formalities to be observed in respect of the giving of notice of any such meeting or any adjourned meeting and the conduct thereof shall be those from time to time required by the Canada Business Corporations Act (as from time to time amended, varied or replaced) and prescribed in the by-laws of the Corporation with respect to meetings of shareholders.  On every poll taken at a meeting of holders of Preference Shares as a class, each holder entitled to vote thereat shall have one vote in respect of each Preference Share held by him.

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