Document:

LEASE AGREEMENT, DATED AS OF MARCH 8, 2004

 EXHIBIT 4.8 
  
 Commercial Park West 
  
 Realmark–Commercial, LLC 
  
 Lease 
  

			
	 Date:
	  	March 10, 2004
		
	 To:
	  	John Stubbs
	 	  	Corporate Realty Advisors
	 	  	5511 Capital Center Drive, Suite 320
	 	  	Raleigh, NC 27606
	 	  	(919) 851-9111
		
	 From:
	  	Douglas Marshall
	 	  	Property Manager
	 	  	Commercial Park West
	 	  	2327 Englert Drive, Suite 101
	 	  	Durham, NC 27713
	 	  	(919) 361-8838
		
	 Landlord:
	  	Realmark–Commercial, LLC (“Landlord”)
	 	  	2350 N. Forest Road
	 	  	Getzville, NY 14068
	 	  	(716) 636-0280
		
	 Tenant:
	  	Adherex Technologies, Inc. (“Tenant”)
	 	  	Dr. William Peters, Dr. Robin Norris, & Eric Karl
	 	  	2530 Meridian Parkway, Suite 200
	 	  	Durham, NC 27713
		
	 Premises:
	  	Commercial Park West
	 	  	2300 Englert Drive, Suite G
	 	  	Durham, NC 27713

 Commercial Lease Agreement 
  
 BETWEEN 
  

			
	                                Realmark-Commercial,
LLC	  	Lessor
		
	                                AND	  	 
		
	                                Adherex, Inc.	  	Lessee

  
 TABLE
OF CONTENTS 
  

					
	 PARAGRAPH
 NUMBER

	  	 DESCRIPTION

	  	PAGE

			
	1.	  	Premises	  	3
	2.	  	Term	  	3
	3.	  	Rent	  	4
	4.	  	Signs	  	6
	5.	  	Usage and Insurance	  	6
	6.	  	Services to the Premises	  	6
	7.	  	Utilities	  	6
	8.	  	Relocation	  	7
	9.	  	Repairs and Maintenance	  	7
	10.	  	Compliance with Laws, Rules and Regulations	  	8
	11.	  	Hazardous Substances – General	  	9
	12.	  	Lessor Improvements	  	10
	13.	  	Alterations and Improvements	  	10
	14.	  	Condemnation	  	11
	15.	  	Fire and Casualty	  	11
	16.	  	Insurance by Lessee	  	12
	17.	  	Waiver of Subrogation	  	12
	18.	  	Insurance by Lessor	  	13
	19.	  	Indemnification	  	13
	20.	  	Quiet Enjoyment	  	14
	21.	  	Lessor’s Right of Entry	  	14
	22.	  	Assignment or Sublease	  	14
	23.	  	Landlord’s Lien	  	15
	24.	  	Uniform Commercial Code	  	15
	25.	  	Default by Lessee	  	15
	26.	  	Remedies for Lessee’s Default	  	16
	27.	  	Waiver of Default or Remedy	  	16
	28.	  	Lessor’s Liability	  	16
	29.	  	Election of Arbitration	  	17
	30.	  	Acts of God	  	17
	31.	  	Attorney’s Fees	  	17
	32.	  	Holding Over	  	17
	33.	  	Rights of First Mortgagee	  	17
	34.	  	Estoppel Certificates	  	18
	35.	  	Financial Information	  	18
	36.	  	Cost of Living Increase	  	18
	37.	  	Successors	  	19
	38.	  	Rent Tax	  	19
	39.	  	Definitions	  	19
	40.	  	Miscellaneous	  	19
	41.	  	Notice	  	20
	42.	  	Entire Agreement and Limitation of Warranties	  	20
	43.	  	Other Provisions	  	20

  

 2 

 Commercial Lease Agreement 
  
 THIS LEASE AGREEMENT is made and entered into as of the 
  
 1st day of April 2004 
  

by and between 
  
 Realmark-Commercial LLC 
  
 hereinafter referred to as “Lessor” 
  
 AND 
  
 Adherex, Inc.

  
 hereinafter referred to as “Lessee”. 

 
 WITNESSETH: 
  
 1. PREMISES: In consideration of the mutual covenants and agreements
herein stated, Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the following described premises (the “Premises”), together with the appurtenances thereto: 
  
 5,700 rentable square feet (RSF) of space situated at Commercial Park West, 2300 Englert Dr., Suite G; Durham, NC
27713 (sometimes referred to as the “building” or the “project”). Within sixty (60) days after the Commencement Date, Lessee shall have the right to have its architect remeasure the Premises in accordance with BOMA
Standards. If Lessee’s measurements discloses a different square footage than that set forth above, the parties hereto shall amend the Lease to reflect the change in square footage and the rental amounts and Lessee’s proportionate share of
shared expenses hereunder shall likewise be amended to reflect the correct rental of square footage of the Premises in which case measurements shall be from the center of each demising wall between tenants and to the glass line on any
exterior walls or outside of the exterior wall if a glass line dose not exist. In the event the Lessee remeasures the space the Lessor will have the right of reasonable review. 
  
 The location of the Premises within the building shall be as shown on Exhibit A attached hereto and made a part hereof by this reference.

  
 Lessor acknowledges and agrees that Lessee shall have the non-exclusive
right to use free of charge, any and all Common Areas, as hereinafter defined, but not limited to, all parking areas. With respect thereto, Lessor acknowledges and agrees that it shall maintain at all times during the Lease term parking serving the
building, at a ratio of not less than five (5) parking spaces per 1,000 square feet of rentable area within the building. 
  
 For purposes of prorating various expenses, the Premises represent 5.76% percent of the building or project. 
  
 2. TERM: (a) Subject to and upon the conditions set forth
below, the term of the Lease shall commence on                                 
March 1, 2004 (the “commencement date”) and shall expire on February 28, 2010 (which shall be that date which is the later of (i) the date of substantial completion of the
Lessor’s Work as defined in Exhibit D or (ii) June 1, 2004 (the “Commencement Date”) and shall expire on the last day of the seventy-second (72nd) full calendar month thereafter, unless sooner
terminated as hereinafter provided. Lessor shall use its reasonable efforts to establish the “completion date” as March 1, 2004 or sooner. Notwithstanding any other provision contained herein to the contrary, Lessor
acknowledges and agrees that it has assured Lessee that it shall achieve substantial completion the Lessor’s Work and deliver possession of the Premises to Lessee on or before June 1, 2004 (the “Completion Date Deadline”).
Accordingly, in the event Lessor fails to deliver possession of the Premises to Lessee having substantially completed such Lessor’s Work on or before said Completion Date Deadline for any reason other than Lessee caused delays or Act of God
events, then, in such event, Lessee shall be entitled to a credit equal to two (2) days base rent (at the monthly rental rate applicable to the 7th through 12th months of Lease term) for each day beyond the Completion Date Deadline that
Lessor has failed to deliver possession of the Premises to Lessee with Lessor’s Work having been substantially completed. Furthermore, Lessor acknowledges and agrees that in the event it has failed to deliver the Premises to Lessee having
substantially completed the Lessor’s Work on or before September 1st, 2004 for any reason other than Lessee caused delays or Act of God, Lessee shall be entitled to terminate this Lease by providing written notice of such election to Lessor any time on or before September 10th, 2004. 
  
 (b) If the Premises are not available for occupancy on the “commencement date” or “completion date”, the Lease
shall not be affected thereby and Lessee shall have no claim against Lessor as a result of the postponement of such date. 
  

 3 

 3. RENT: (a) Lessee agrees to pay monthly as base rental during the term of this
Lease (as shown on the in accordance with the base rental schedule attached rent schedule) hereto which amounts shall be payable to Lessor at the address shown below on the first day of the
month. One monthly installment of rent shall be due and payable on the date of execution of this Lease Commencement Date by Lessee for the first month’s rent and a like monthly installment shall be due and payable
on or before the first day of each calendar month succeeding the “Commencement Date” during the demised term; provided, that if the “Commencement Date” should be a date other than the first day of a calendar month, the monthly
rental set forth above shall be prorated to the end of that calendar month, and all succeeding installments of rent shall be payable on or before the first day of each succeeding calendar month during the demised term. Lessee shall pay, as
additional rental, all other sums due under this Lease. All rent and sums to be paid under this Lease are to be paid without demand, set-off, abatement or deduction, except as specifically provided in the Lease. If the Lease terminates on a day
other than the last day of a calendar month, the rent for said month will be prorated. 
  
 (b) On the date of execution of this Lease by Lessee, there shall be due and payable by Lessee a security deposit in an amount equal to Six Thousand Dollars 00/100 ($6,000.00) monthly rental installment(s) to
be held as security for the performance by Lessee of Lessee’s covenants and obligations under this Lease, it being expressly understood that the deposit shall not be considered an advance payment of rental or a measure of
Lessor’s damage in case of default by Lessee. Upon the occurrence of any event of default by Lessee or breach by Lessee of Lessee’s covenants under this Lease, Lessor may, from time to time, without prejudice to any other remedy, use the
security deposit to the extent necessary to make good any arrears of rent and/or damage, injury, expense or liability caused to Lessor by the event of default or breach of covenant, any remaining balance of the security deposit to be returned by
Lessor to Lessee upon termination of this Lease. 
  
 (c) If any increase in the
fire or other insurance premiums paid by Lessor for the building in which Lessee occupies space is caused solely by Lessee’s use and occupancy of the Premises, including without limitation Lessee’s use, storage, production or
handling of any Hazardous Material (as hereinafter defined in Paragraph 11), or if Lessee vacates the Premises and causes an increase in such premiums, the Lessee shall pay as additional rent, upon demand, the amount of such increase to Lessor.

  
 (d) Other remedies for nonpayment of rent notwithstanding, if the monthly
rental payment is not received by Lessor on or before the tenth day of the month for which rent is due, or if any other payment due Lessor by Lessee is not received by Lessor on or before the tenth day following the date it was due, a late charge of
five percent (5%) of such past due amount shall become due and payable in addition to such amounts owed under this Lease. 
  
 (e) Beginning with the Commencement Date, Lessee agrees to pay to Lessor, as additional rental each year, Lessee’s proportionate share (5.76%) of any direct
expenses (as defined below) incurred by or accrued as an expense of Lessor or its agents on account of the operation or maintenance of the building (and all appurtenances thereto) in which the Premises are situated and including a portion of any
charges attributable to the Common Areas. (“Common Areas” shall mean all areas, improvements, space, equipment, signs and special services provided by Lessor for the common or joint use and benefit of all of the occupants of the
building, their employees, agents, servants, customers, and other invitees, including, without limitation, parking areas, entranceways, exits, walkways, service roads, driveways, retaining walls, landscaped areas and truck serviceways.)
Of which is estimated at One Dollar 85/100 ($1.85) With respect to the foregoing, Lessor represents and warrants that its good faith estimate of the direct expenses for the year 2004 shall be $1.85 per rentable square
foot. In no event shall the direct expenses charged to Lessee exceed $1.90 per square foot for 2004. Such additional rental shall be paid on the first day of each calendar month throughout the term, without deduction or set-off, in equal monthly
installments of an amount based on Lessor’s projections of direct expenses for the applicable calendar year, and all such monthly payments shall be credited to Lessee’s rental account for such calendar year. Lessor shall, within nine
months following the close of each calendar year during the term of the Lease, invoice Lessee for the additional rental. The invoice shall include in reasonable detail all computations of the additional rental. If this Lease shall terminate on a day
other than the last day of a year, the amount of any additional rental payable by Lessee applicable to the year in which such termination shall occur shall be prorated on the ratio that the number of days from the commencement of such year to and
including such termination date bears to 365. If such invoice shows an amount owing by Lessee that is less than the sum of the monthly payments made by Lessee in the previous calendar year, Lessor shall credit such excess to installments of rent
(both base and additional) next due from Lessee until such has been exhausted, or if this Lease shall expire prior to the application of such excess, Lessor shall pay Lessee the balance not theretofore applied against rent. If such invoice shows an
amount owing by Lessee, which is more than the sum of the monthly payments made by Lessee in the previous calendar year, Lessee shall pay such deficiency to Lessor within ten days after receipt of the invoice. Lessee shall have the right, at its own
expense and at a reasonable time, to audit Lessor’s books relevant to the additional rentals under this Paragraph 3. In the event an audit by Lessee discloses that Lessee has been overcharged by ten percent (10%) or more in any given year,
Lessor shall reimburse Lessee for the reasonable cost of such audit. Furthermore, Lessor acknowledges and agrees that should Lessor or any other tenant of Lessor perform an audit of direct expenses which discloses that Lessee was overcharged then,
in such event Lessor shall be obligated to provide Lessee a credit in the amount of the overcharge as disclosed by such audit. The provisions herein shall survive the expiration or sooner termination of the Lease. 
  
 (f) The term “direct expenses” as used above includes all reasonable and
customary direct costs of operation and maintenance of the building and/or project of which the Premises are a part, including, but not limited to, utility and service charges attributable to Common Areas or
and paid by Lessor, the costs of building supplies, repairs, maintenance and service contracts for the building, Common Areas and all related mechanical equipment, property management charges, the costs of grounds maintenance,
landscaping, parking maintenance and striping, all real property taxes and installments of special assessments, including special assessments due to deed restrictions and/or owner’s associations which accrue against the building and/or project
of which the Premises are a part during the term of this Lease, as well as all insurance premiums Lessor is required to pay or deems necessary to pay, including all risk property, general liability and sign insurance. The term “direct
expenses” shall also include capital improvements (amortized on a basis reasonably determined by Lessor) that are required by governmental law, rule or regulation, which law, rule or regulation was not applicable to the building at the time it
was originally constructed, or that result in cost savings in connection with the operation or maintenance of the building, but only to the extent of such expected cost savings. The term “direct expenses” does not include any
capital 
  

 4 

 improvements to the building and/or project of which the Premises are a part, other than as specifically provided
hereinabove, nor shall it include income and franchise taxes of Lessor, expenses incurred in leasing to or procuring of tenants, leasing commissions, advertising expenses, expenses for the renovation of space for new tenants, interest or principal
payments on any mortgage or other indebtedness of Lessor, compensation paid to any employee of Lessor above the grade of building superintendent, nor any depreciation allowance or expense, legal expenses, expenses for services
provided by Lessor’s affiliates to the extent in excess of what would have been incurred in an arm-length’s transaction. 
  
 (g) Lessee shall pay all taxes or assessments of any nature imposed or assessed upon its trade fixtures, equipment, machinery, inventory, merchandise or other personal
property located on the Premises and owned by or in the custody of Lessee as promptly as all such taxes or assessments may become due and payable without delinquency. 
  
 (h) For the purposes of this subsection, (h) direct expenses are comprised of “controllable expenses” and
“non-controllable expenses”. Controllable expenses are those components of direct expenses that are not related to taxes or insurance. Non-controllable expenses are those components of direct expenses that are not controllable expenses.
Notwithstanding any other provision to this Lease to the contrary, during the Term of this Lease, for the purpose of calculating Lessee’s proportionate share of direct expenses each year, the items of controllable expenses shall be deemed not
to increase by more than three percent (3%) per calendar year for each calendar year from and after calendar year 2004. There shall be no cap on non-controllable expenses. 
  
 4. SIGNS: Any signs or advertising to be used in connection with the Premises shall be first submitted to Lessor for approval
before installation of same, and all signs, advertising or markings on the Premises shall be permitted only in the area designated by Lessor. Lessor will provide reasonable signage on the building, subject to all governmental approvals and an
allowance of $3,000.00. Any cost for such building signage in excess to the allowance shall be paid for by the Lessee. Signage will be the same as the current exterior signage for 2300 Englert Dr. 
  
 5. USAGE AND INSURANCE: The Premises are to be used by the Lessee for the
purpose of general office, lab, design, testing and developing cancer focused therapy and Tumor vascular targeting platforms and developing non-cancer related applications for such technology and for no other purpose without the prior
written consent of the Lessor which approval will not be unreasonably withheld or delayed. Lessor hereby represents and warrants that the foregoing permitted use of the Premises is permissible under applicable zoning ordinances governing the use
of the Premises. Lessee shall have the right to access the Premises twenty-four (24) hours a day, seven (7) days a week throughout the term of this Lease. 
  

Lessee shall not use the Premises (or fail to maintain them) in any manner constituting a violation of any ordinance, statute, regulation or order of any governmental
agency, including, but not limited to, zoning ordinances, nor will the Lessee maintain or permit any nuisance to occur on the Premises, or make void or voidable any insurance then in force on the Premises. 
  
 Lessee covenants and agrees that the Lessee will use, maintain and occupy the Premises in a
careful, safe and proper manner and will not commit waste thereon. 
  
 6.
SERVICES TO THE PREMISES: Lessor shall, subject to interruptions which are normal and to the scheduling of repairs by providers of such services, cause to be furnished to the Premises in common with other lessees, the following
connections: water and sewer connections, phone line connections providing access to the local public telephone company, T-1 connections and normal electrical connections and natural gas connections. 
  
 7. UTILITIES: Lessee agrees that it will pay all charges for gas,
electricity or other illumination used on the Premises, and will pay in addition directly to Lessor all water and sewage charges described hereafter. With respect to the foregoing, Lessor represents and warrants to Lessee that the Premises are
separately metered for gas and electricity services. If the Premises are recognized as part of a building containing a number of tenants, the Lessee agrees to pay its proportionate share of the total water and sewage bill for the entire building
based upon the ratio of the number of square feet demised herein to the total square footage contained in the entire building as set forth hereinabove Paragraph 1. It is expressly agreed that all water and sewage charges are considered as rent as
defined in this Lease. Should any of the above described charges herein provided for at any time remain due and unpaid for a period of five (5) days after the same shall have become due, Lessor may, at its option, consider Lessee a tenant at
sufferance, and immediately re-enter upon the Premises, and the entire rental for the rental period shall at once be due and payable and may forthwith be collected by distress or otherwise. Notwithstanding any other provision contained
herein to the contrary, Lessor acknowledges and agrees that in the event utility services to the Premises are interrupted as a result of the negligence of Lessor, its agents or contractors for a period in excess of two days, then, from and after
such time, Lessee shall be entitled to an abatement of all rental amounts due hereunder until such time as such interrupted utility service is restored. Furthermore, in the event such interruption continues for a period in excess of 20 consecutive
days, then, in such event, Lessee shall be entitled to terminate this Lease by providing written notice of such election to Lessor. If the Premises consist of an entire building, Lessee shall pay the full cost of water and sewage charges
applicable to said building directly to the utility providing the same. In the event Lessee’s use of any utilities on a common meter is irregular or disproportionate, either Lessor or Lessee shall have the option as to future charges to have
installed at its expense separate meters for the utilities in question. 
  
 8.
RELOCATION: In the event Lessor determines to utilize the Premises for other purposes during the term of this Lease, Lessee agrees to relocate to other space in the building and/or project designated by Lessor, provided such other
space is of equal or larger size than the Premises and has at least the same number of windows. Lessor shall pay all out-of-pocket expenses of any such relocation, including the expenses of moving and reconstruction of all Lessee furnished and
Lessor furnished improvements. In the event of such relocation, this Lease shall continue in full force and effect without any change in the terms or other conditions, but with the new location substituted for the old location set forth in Paragraph
1 of this Lease. 
  

 5 

 9. REPAIRS AND MAINTENANCE: (a) Unless otherwise expressly provided, Lessor shall not be required to make
any improvements, replacements or repairs of any kind or character to the Premises during the term of this Lease. Notwithstanding the foregoing, Lessor acknowledges and agrees that it shall be solely responsible for the repair and maintenance of
all structural elements of the building, including, but not limited to the floor slab, exterior and all other load bearing walls and roof thereof as well as the underground components of all utility systems serving the Premises. In addition, Lessor
acknowledges and agrees that it shall maintain such components of the building for which it is responsible hereunder and all Common Areas in accordance with the standards then applicable to other similarly situated first-class office buildings in
the Durham, North Carolina area. Lessor shall not be liable to Lessee, except as expressly provided in this Lease, for any damage or inconvenience, and Lessee shall not be entitled to any abatement or deduction of rent by reason of any repairs,
alterations or additions made by Lessee under this Lease, provided same are conducted in such a manner so as to minimize any interference with Lessee’s business operations. Lessee will be required to maintain and repair all damage to
each and every part of the Premises, which are not the responsibility of Lessor hereunder including without limitation, the water apparatus, HVAC, electric lights or any other fixtures, appliances or appurtenances of the Premises such as
walls, doors, corridors, windows and other structures and equipment within and serving the Premises, unless the same are necessitated by Lessor’s negligence or the negligence of its agents or contractors (in which event Lessor shall be
responsible for the repair thereof). Lessee shall enter into and keep in force throughout the term of the Lease a maintenance/service contract with respect to the HVAC system and, at Lessor’s request, shall submit proof of such contract.
Notwithstanding the foregoing, or any other provision contained herein to the contrary, Lessor acknowledges and agrees that Lessee’s responsibility with respect to the HVAC system serving the Premises shall be limited to the
maintenance of the required service contract and for repairs required thereto costing less than $750.00 per occurrence. Lessor acknowledges and agrees that it shall be solely responsible for any repairs or replacements required to the HVAC system
costing in excess of $750.00 per occurrence. Lessee agrees to keep the Premises trash-free and to pay the cost of trash and debris removal as related to Lessee’s operation. Lessee agrees to use a trash removal service designated by Lessor
(provided same is competitively priced) and Lessee shall be billed directly for such service. Lessee shall remove all liens of record that may result from Lessee’s performance of any repairs or maintenance required under this Paragraph 9
and shall make all such repairs and perform all such maintenance in a good and workmanlike manner. Lessee agrees that all such repair and maintenance work shall be in compliance with federal, state and local law, including, but not limited to, the
Americans with Disabilities Act (the “ADA”). Notwithstanding any other provision contained herein to the contrary, Lessor represents and warrants to Lessee that as of the Commencement Date and for a period of sixty (60) days thereafter,
all utility systems serving the Premises, including, but not limited to the HVAC system shall be in good working order. In addition, Lessor represents and warrants that as of the Commencement Date the building and Premises shall comply in all
material respects with all laws, rules and regulations governing the same including, but not limited to the ADA. Furthermore, in addition to Lessor’s obligations elsewhere in this Lease, Lessor shall at Lessor’s sole cost and expense, and
with reasonable diligence perform all the following repairs or improvements: (a) repairs which are required as a result of latent or hidden defects present in the Premises as of the Commencement Date, (b) any repairs or improvements which are
necessary to comply with any law, ordinance, order or restriction now or hereafter imposed by any federal, state or local government or governmental body, exclusive of any repair or improvement made necessary solely as a result of Lessee’s use
of the Premises. 
  
 (b) Lessee shall, at its own cost and expense, repair or
replace any damage or injury to all or any part of the Premises caused by Lessee or Lessee’s agents, employees, invitees, licensees or visitors; provided, however, if Lessee fails to make the repairs or replacements promptly following its
receipt of notice from Lessor, Lessor may, at its option, make the repairs or replacements and Lessee shall pay Lessor the cost thereof plus an overhead charge equal to ten percent (10%) of the cost of such repairs or replacements; and payment
of such cost and overhead shall be made on demand. 
  
 (c) Lessee shall not allow
any damage to be committed on any portion of the Premises by Lessee, its employees, agents, contractors or invitees, and at the termination of this Lease, by lapse of time or otherwise, Lessee shall deliver the Premises to Lessor in as good
condition as existed at the commencement date or completion date of this Lease, casualty ordinary wear and tear excepted. The cost and expense of any repairs necessary to restore the condition of the Premises shall be borne by Lessee, and if Lessor
undertakes to restore the Premises, it shall have a right of reimbursement against Lessee. 
  
 (d) All requests for repairs or maintenance that are the responsibility of Lessor pursuant to any provision of this Lease must be made in writing to the Lessor at the address set forth below. With respect to the
foregoing, Lessor agrees to make all such repairs as are Lessor’s responsibility hereunder with a commercially reasonable time frame following its receipt of notice of the need thereof and in a manner designed to minimize any interruption with
Lessee’s business operations. 
  
 10. COMPLIANCE WITH LAWS, RULES
AND REGULATIONS: Lessee, at Lessee’s sole expense, shall comply with all laws, rules, orders, ordinances, directions, regulations and requirements of federal, state, county and municipal authorities now in force or which may
hereafter be in force, with respect to its use of the Premises, and with any lawful direction of any public officer or officers, which shall impose any duty upon the Lessor or Lessee with respect to the
Lessee’s use, occupation or alteration of the Premises, including without limitation, all applicable federal, state and local laws, regulations or ordinances pertaining to air and water quality, Hazardous Materials (as hereinafter
defined), waste disposal, air emissions and other environmental matters, all zoning and other land-use matters, and utility availability. Lessee shall, at Lessee’s sole expense, shall also comply with any governmental
authority imposed recorded covenants, conditions and restrictions, regardless of when they become effective, which shall impose such a duty upon Lessor or Lessee. Lessee shall use all reasonable efforts to fully comply with the
Americans with Disabilities Act. ADA; provided, however, in no event shall Lessee have any obligation to make any alterations, additions or improvements to the Premises unless same are required as a direct result of Lessee’s
use of the Premises. Lessor shall be required to make any alterations, additions or improvements to the Premises necessary to comply with the ADA to the extent same are not imposed as a direct result of Lessee’s specific use of the Premises
prior to commencement. Lessee will comply with the rules of the building adopted by Lessor which 
  

 6 

 are set forth on a schedule attached to this Lease and with all commercially reasonable recommendations or
requirements of Lessor’s insurance carrier relating to prevention of fires or other hazardous conditions. Lessor shall have the right at all times to change the rules and regulations of the building or to amend them in any reasonable
non-discriminatory manner as may be deemed advisable for the safety, care and cleanliness, and for the preservation of good order, of the Premises. All changes and amendments in the rules and regulations of the building will be sent by Lessor
to Lessee in writing and shall thereafter be carried out and observed by Lessee. 
  
 11. HAZARDOUS SUBSTANCES – GENERAL: The term “Hazardous Substances”, as used in the Lease, shall mean pollutants, contaminants, toxic or hazardous wastes, or any other substances the use and/or removal of
which is required or the use of which is restricted, prohibited or penalized by any “Environmental Law”, which term shall mean any federal, state or local law, ordinance or other statute of governmental or quasi-governmental authority
relating to pollution or protection of the environment. The term “Hazardous Substances” as used in this Lease shall also mean any petroleum products or byproducts, including crude oil or any fraction thereof and any other liquid
hydrocarbon, which are not specifically designated, defined, listed, or have no characteristics identified in, under or pursuant to any Environmental Law. Lessee hereby agrees that (i) no activity will be conducted on the Premises that will use or
produce any Hazardous Substance, except for such activities that are part of the ordinary course of Lessee’s business activities (the “Permitted Activities”) provided said Permitted Activities are conducted in accordance with all
Environmental Laws and have been approved in advance in writing by Lessor which will not be unreasonably withheld or delayed; Lessee shall be responsible for obtaining any required permits and paying any fees and providing any testing
required by any governmental agency; (ii) the Premises will not be used in any manner for the storage of any Hazardous Substances, except for the temporary storage of such materials that are used in the ordinary course of Lessee’s business (the
“Permitted Materials”) provided such Permitted Materials are properly stored in a manner and location meeting all Environmental Laws and approved in advance in writing by Lessor which will not be unreasonably withheld or delayed;
Lessee shall be responsible for obtaining any required permits and paying any fees and providing any testing required by any governmental agency; (iii) no portion of the Premises will be used as a landfill or a dump; (iv) Lessee will not install any
underground tanks of any type; (v) Lessee will not allow any surface or subsurface conditions to exist or come into existence that constitute, or with the passage of time may constitute, a public or private nuisance; (vi) Lessee will not permit any
Hazardous Substances to be brought onto the Premises, except for Permitted Materials provided such Permitted Materials are properly handled in a manner meeting all Environmental Laws and approved in advance in writing by Lessor which will not be
unreasonably withheld or delayed, and if so brought or found located thereon, the same shall be immediately removed by Lessee, with proper disposal, at Lessee’s sold cost and expense, and all required cleanup procedures shall be diligently
undertaken pursuant to all Environmental Laws. Lessor or Lessor’s representative shall have the right but not the obligation to enter the Premises after providing Lessee at least twenty-four (24) hours prior written notice for the
purpose of inspecting the storage, use and disposal of Permitted Materials to ensure compliance with all Environmental Laws. Should it be determined, in Lessor’s sole reasonable opinion, that said Permitted Materials are
at any time being improperly stored, used or disposed of, then Lessee shall immediately take such corrective action as requested by Lessor. Should Lessee fail to take such corrective action within 24 hours, Lessor shall have the right to perform
such work and Lessee shall promptly reimburse Lessor for any and all costs associated with said work. Lessor shall use its best efforts to minimize interference with Lessee’s business while performing such work but shall not be liable for any
interference caused thereby. If at any time during or after the term of this Lease the Premises are found to be so contaminated or subject to said conditions, Lessee shall diligently institute proper and thorough cleanup procedures at Lessee’s
sole cost. 
  
 Upon the expiration or termination of this Lease, Lessee shall
render the Premises in clean condition free and clear of any actual or threatened presence of, or contamination, pollution, damage or injury by, any Hazardous Substance caused by Lessee, its employees, agents, contractors or invitees.
Lessor hereby represents and warrants to Lessee, to the best Lessor’s knowledge and belief, that as of the date of this Lease, there exists no violations of Environmental Laws with respect to the building or the Premises, nor are the Premises
contaminated with toxic mold. If any of the Permitted Activities involves storage, production or use of a Hazardous Substance or if Lessor has evidence that Lessee has stored, produced or used a Hazardous Substance on the Premises or has brought
onto the Premises such a substance, then at the request of Lessor, Lessee shall provide to Lessor, at Lessee’s sole cost and expense, a report (an “Environmental Report”) conducted and prepared by a competent licensed environmental
engineer or consultant acceptable to Lessor which affirms, based on reasonable, rigorous and detailed testing, that no adverse, detrimental or harmful condition occurred or is present in, at, on, under, about or surrounding the
Premises or otherwise in connection with Lessee’s (or others at Lessee’s sufferance or with Lessee’s permission) operations thereon or use or occupancy thereof and that the Premises are free and clear of any actual or threatened
contamination, pollution, damage, injury or harm by any Hazardous Substance and any threat or risk to human health, safety and welfare attributable to Lessee’s (or others at Lessee’s sufferance or with Lessee’s permission) operations
thereon or use or occupancy thereof. Such Environmental Report shall be provided to Lessor within sixty (60) days of request of Lessor or otherwise at least four (4) weeks prior to the expiration or sooner
termination of this Lease. In the event such indicates that there is no such condition, Lessor shall reimburse the cost of obtaining such report to Lessee. with the investigation upon which such Environmental Report is based
occurring no earlier than eight (8) weeks prior to the expiration or sooner termination of this Lease. 
  
 For the purposes of applying the covenants provided under this Paragraph 11, the Premises shall also mean, refer to and include the building, the project, the land on
which the building or project is situated including all common areas (hereinafter, the “land”), and the soil, ground water, and surface water of the land. Lessee agrees to indemnify and hold Lessor harmless from and against any and all
claims, demands, actions, liabilities or losses (including, without limitation, those arising from any diminution in value of the Premises, damages for the loss or restriction on use of rentable or usable space or of any amenity of the Premises,
damages arising from any adverse impact on marketing, selling, financing or leasing of space, and sums paid in settlement of claims), costs, expenses (including, without limitation, attorneys’ fees and environmental engineers’ or
consultants’ fees), damages and obligations of any nature arising from or as result of the use of the Premises by Lessee. The foregoing indemnification and the responsibilities of Lessee under this Paragraph 11 shall survive the termination or
expiration of this Lease. 
  

 7 

 12. LESSOR IMPROVEMENTS: If construction to the Premises is to be performed by Lessor prior
to Lessee’s occupancy, Lessor will, at its expense, commence and/or complete the construction of improvements constituting the Premises in accordance with the floor plan (attached Exhibit A), attached work letter and specifications, which plan,
letter and specifications shall be approved and signed by the parties upon execution of this Lease and are Lessor agrees to make improvements to the Premises (the “Lessor’s Work”) in accordance with the Work Letter
attached hereto as Exhibit ”D”, which Work Letter is hereby made a part hereof by this reference. Any changes or modifications to the approved plan and specifications shall be made and accepted by written change order signed by Lessor
and Lessee and shall constitute and amendment to this Lease. Upon substantial completion of the Lessor’s Work in accordance with the Plans building and other improvements in accordance with the plans and
specifications, Lessee agrees to execute and deliver to Lessor a letter accepting delivery of the Premises, subject only to latent defects All Lessor’s Work contemplated under this paragraph shall constitute improvements to the
Premises which shall remain part of the Premises upon expiration of the term of this Lease. If no improvements are to be made or construction to be done to the Premises, Lessee hereby accepts the Premises in the condition they are in at the
beginning of this Lease. 
  
 Lessor hereby reserves the right at any time and from
time to time to make alterations or additions to, and build additions on the building in which the Premises are contained and to build adjoining the same, and to install, maintain, use and repair and replace pipes, ducts, conduits and wires leading
through the Premises in locations serving other parts of the building which provided such alterations or additions will not (i) materially interfere with Lessee’s use of the Premises. or (ii) materially detract
from the aesthetics of the Premises. Lessor also reserves the right to construct other buildings or improvements from time to time and to make alterations thereof or additions thereto and to build additional stories on the building or on other
buildings and to build adjoining same and to construct such parking facilities as may be necessary or desirable. 
  
 13. ALTERATIONS AND IMPROVEMENTS: Lessee at its own cost and expense shall fully equip the Premises with all lighting fixtures, furniture,
operating equipment, and any other equipment necessary for the proper operation of Lessee’s business. All fixtures installed by Lessee shall be new or completely reconditioned. Lessee shall not do any alternations or construction work or
install any equipment without first obtaining Lessor’s written approval and consent, such consent not to be unreasonably withheld or delayed. Lessee shall present to Lessor plans and specifications for such work at the time approval is sought.
Lessor reserves the right before approving such work to require Lessee to furnish Lessor with evidence satisfactory to Lessor of financial arrangements made by Lessee to promptly pay for any work Lessee causes to be done in or on the Premises.
Lessor’s approval of any plans, specifications or work drawings shall create no responsibility or liability on the part of the Lessor for their completeness, design sufficiency or compliance with all laws, rules and regulations of governmental
agencies or authorities. Lessee shall be entitled to make interior, non-structural alterations, additions or improvements to the Premises without Lessor’s consent, provided such alterations, additions or improvements do not adversely affect
the utility systems serving the Premises. Lessee shall remove all liens of record that may result from the performance of any alternations or additions. Lessee agrees that all alternations, physical additions or improvements to the Premises made
by Lessee shall be completed in a good and workmanlike manner and shall be in compliance with the Americas with Disabilities Act (the “ADA”) ADA and, upon the request of Lessor, Lessee shall provide Lessor with
evidence reasonably satisfactory to Lessor that such work was performed in compliance with the ADA. 
  
 Any alternations, physical additions or improvements to the Premises made by Lessee shall at once become the property of Lessor and shall be surrendered to Lessor upon the termination of this Lease, except that the
forgoing shall not apply to moveable equipment or furniture owned by Lessee which may be removed by Lessee at any time during the Lease term or the end of the term of this Lease if Lessee is not then in default and if such
equipment and furniture is not then subject to any other rights, liens and interests of Lessor. Lessor, at its option, may require Lessee to remove any physical additions and/or repair any alternations in order to restore the Premises to
the condition existing at the time the Lessee took possession, all costs of removal and/or alternations to be borne by Lessee. Notwithstanding the foregoing, under circumstances where Lessor has an approval right over the
alterations or additions being made by Lessee hereunder and if Lessor has approved same, Lessee shall not be obligated to so remove any such alterations or additions unless and except under circumstances where Lessor advised Lessee of such removal
requirement at the time of its approval of the subject alterations or additions. If Lessee does not remove moveable equipment or furniture or other personal property not owned by Lessor from the Premises after Lessor’s written request at
the end of the term of the Lease, such property will be deemed abandoned by Lessee and Lessor may dispose of such property as Lessor sees fit and, if Lessor disposes of such property, Lessor shall recover its costs incurred for the removal and
disposal thereof. The provisions of this Paragraph 13 shall survive the expiration or sooner termination of this Lease. 
  
 14. CONDEMNATION: (a) If, during the term (or any extension or renewal) of this Lease, all or a substantial part of the Premises or the building
(other than the Premises) or the Common Areas is taken for any public or quasi—public use under any governmental law, ordinance or regulation, or by right of eminent domain or by purchase in lieu thereof, and the taking would
prevent or materially interfere with the use of the Premises for the purpose for which they are then being used, this Lease shall terminate and the rent shall be abated during the unexpired portion of this Lease effective on the date physical
possession is taken by the condemning authority. Lessee shall have no claim to the condemnation award. Notwithstanding the foregoing, Lessee shall be permitted to maintain a separate action against the condemning authority for loss of business,
moving expenses and unamortized cost of any improvements or trade fixtures made by Lessee to the Premises. In no event shall Lessor be liable to Lessee for any business interruption or diminution in the use or the value of any unexpired term of
this Lease. 
  
 (b) If possession of a portion of the Premises is taken or
condemned by public authority for public use so as not to make the remaining portion of the Premises unusable for the purpose leased, this Lease will not be terminated but shall continue. In such case, the rent shall be equitably and fairly reduced
or abated for the remainder of the term in proportion to the amount of the Premises taken. Lessee shall have no claim to the condemnation award. Notwithstanding the foregoing, Lessee shall be permitted to maintain a separate action against the
condemning authority for loss of business, moving expenses and unamortized cost of any improvements or trade fixtures made by Lessee to the Premises. In no event shall Lessor be liable to Lessee for any business interruption or diminution in the
use or the value of any unexpired term of this Lease. 
  

 8 

 15. FIRE AND CASUALTY: (a) If the Premises or a portion of the building other than the Premises
should be totally destroyed by fire or other casualty, or if the Premises or a portion of the building other than the Premises should be so damaged so that rebuilding cannot reasonably be completed within one hundred and twenty
(120) fifty (150) working days after the date of written notification by Lessee to Lessor of the destruction, this Lease shall terminate and the rent shall be abated for the unexpired portion of the Lease,
effective as of the date of the written notification. 
  
 (b) If the Premises
should be partially damaged by fire or other casualty, and rebuilding or repairs can reasonably be completed within one hundred twenty (120) working fifty (150) days from the date of written notification by Lessee to Lessor
of the destruction, this Lease shall not terminate, but Lessor shall at its sole risk and expense proceed with reasonable diligence to rebuild or repair the building or other improvements (other than improvements which Lessor is not obligated
to insure pursuant to Paragraph-18) to substantially the same condition w\in which they existed prior to the damage. If the Premises are to be rebuilt or repaired and are untenantable in whole or in part following the damage, and the damage
or destruction was not caused or contributed to by act or negligence of Lessee, its agents, employees, invitees or those for whom Lessee is responsible, the rent payable under this Lease during the period for which the Premises are
untenantable shall be adjusted to such an extent as may be fair and reasonable under the circumstances. In the event that Lessor fails to complete the necessary repairs or rebuilding within one hundred twenty (120) working fifty
(150) days from the date of written notification by Lessee to Lessor of the destruction plus the number of days by which such repairs or rebuilding are delayed by reason of acts of God or force majeure, Lessee may at its option terminate this
Lease by delivering written notice of termination to Lessor, whereupon all rights and obligations under this Lease shall cease to exist. 
  
 16. INSURANCE BY LESSEE: Lessee shall, during the term of the Lease, procure at its expense and keep in force the following insurance: 
  
 (a) Commercial general liability insurance naming the Lessor as an additional insured
against any and all claims for bodily injury and property damage, occurring in or about the Premises, arising out of Lessee’s use and occupancy of the Premises. Such insurance shall have a combined single limit of not less than One Million
Dollars (1,000,000) per occurrence with a Two Million Dollar ($2,000,000) aggregate limit and excess umbrella liability insurance in the amount of Two Million Dollars ($2,000,000). If the Lessee has other locations that it owns or leases, the policy
shall include an aggregate limit per location endorsement. Such liability insurance shall be primary and not contributing to any insurance available to Lessor and Lessor’s insurance shall be in excess thereto. In no event shall the limits of
such insurance be considered as limiting the liability of Lessee under this Lease. 
  
 (b) Personal property insurance insuring all equipment, trade fixtures, inventory, fixtures and personal property located on or in the Premises for perils covered by the causes of loss – special form (all risk) and in addition,
coverage for flood, earthquake and boiler and machinery (if applicable). Such insurance shall be written on a replacement cost basis in an amount equal to one hundred percent (100%) of the full replacement value of the aggregate of
the foregoing, subject to a commercially reasonable deductible. 
  
 (c)
Worker’s compensation insurance in accordance with statutory law and employers’ liability insurance with a limit of not less than $100,000 per employee and $500, 000 per occurrence. 
  
 (d) Such other insurance as Lessor deems necessary and prudent in its reasonable
discretion or is reasonably required by Lessor’s beneficiaries or mortgages of any deed of trust or mortgage encumbering the Premises and which are available at a commercially reasonable premium. 
  
 The policies required to be maintained by Lessee shall be with companies rated AVII or
better in the most current Issue of Best’s Insurance Reports. Insurers shall be licensed to do business in the state in which the Premises are located and domiciled in the USA. Any deductible amounts under any insurance policies required
hereunder shall not exceed $1,000 a commercially reasonable amount. Certificates of Insurance (certified copies of the policies may be required) shall be delivered to Lessor prior to the commencement date and annually
thereafter at least thirty (30) days prior to the expiration date of the old policy. Lessee shall have the right to provide insurance coverage, which it is obligated to carry pursuant to the terms hereof in a blanket policy, provided such blanket
policy expressly affords coverage to the Premises and to Lessor as required by this Lease. Each policy of insurance shall provide notification to Lessor at least thirty (30) days prior to any cancellation or modification to reduce the insurance
coverage. 
  
 17. WAIVER OF SUBROGATION: Lessor and Lessee
hereby mutually waive their respective rights of recovery against each other for any loss of, or damage to, either party’s property, to the extent that such loss or damage is insured by an insurance policy issued by its insurer whereby
the insurer waives its rights of subrogation against the other party. The provisions of this clause shall not apply in those instances in which waiver of subrogation would cause either party’s insurance coverage to be voided or otherwise made
uncollectable or is required to be insured hereunder. Lessor and Lessee will cause their respective insurance companies to endorse their respective insurance policies to permit a waiver of subrogation rights. 
  
 18. INSURANCE BY LESSOR: Lessor shall, during the term of this Lease,
procure and keep in force the following insurance, the cost of which shall be deemed as Additional Rent payable by Lessee pursuant to Paragraph 3 hereinabove: 
  

(a) Property insurance insuring the building and improvements and rental value insurance for perils covered by the causes of loss – special form (all risk) and in
addition, coverage for flood, earthquake and boiler and machinery (if applicable). Such coverage (except for flood and earthquake) shall be written on a replacement cost basis equal to ninety percent (90%) of the full insurable replacement value of
the foregoing, subject to a commercially reasonable deductible and shall not cover Lessee’s equipment, trade fixtures, inventory, fixtures or personal property located on or in the Premises. 
  
 (b) Commercial general liability insurance against any and all claims for bodily injury and
property damage occurring in or about the building or the land. Such insurance shall have a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence per location with a Two Million Dollar ($2,000,000) aggregate limit.

  

 9 

 (c) Such other insurance as Lessor in its reasonable discretion deems necessary and prudent or is required by
Lessor’s beneficiaries or mortgages of any deed of trust or mortgage encumbering the Premises. 
  
 19. INDEMNIFICATION: The Lessee will indemnify and hold harmless the Lessor from and against any and all claims arising from or caused by (i) Lessee’s occupancy of the Premises (including, by
not limited to, statutory liability and liability under workers’ compensation laws, (ii) any breach or default in the performance of any obligation on the Lessee’s part to be performed under the terms of this Lease, (iii) to the extent
caused by Lessee, its employees, agents, contractors or invitees, the buildings and improvements located on the Premises becoming out of repair, or the leakage of gas, oil, water or steam, or the occurrence of electricity emanating from the
Premises, or any cause whatsoever and (iv) any act or negligence of the Lessee, or any officer, agent, employee, guest, or invitee of the Lessee. The Lessee will indemnify and hold harmless the Lessor from and against any and all
costs, attorneys’ fees, expenses and liabilities incurred with respect to any such claim or any case, action or proceeding brought against the Lessor by reason of any such claim. The Lessee upon notice from the Lessor will defend the same at
the Lessee’s expense by counsel approved in writing by the Lessor. The Lessor will indemnify and hold harmless the Lessee from and against any and all claims arising from or caused by (i) any breach or default in the performance of any
obligation on Lessor’s part to be performed under the terms of this Lease and (ii) any act or negligence of Lessor, or its employees, agents, contractors or invitees. The Lessor will indemnify and hold harmless the Lessee from and against any
all reasonable and necessary costs, attorney’s fees, expenses and liabilities incurred with respect to any such claim or any case, action or proceeding brought against the Lessee by reason of any such claim. The Lessor upon notice from the
Lessee will defend the same at Lessor’s expense by counsel approved in writing by the Lessee. 
  
 The Lessee, as a material part of the consideration to the Lessor, assumes all risk of damage to property or injury to persons, in, upon or about the Premises (except that the Lessee does not assume any risk of damage
to the Lessee resulting from the willful misconduct of the Lessor or its authorized representatives) from any cause whatsoever except that which is caused by either (i) the failure of the Lessor to observe any of the terms and conditions of
the Lease if such failure has persisted for an unreasonable period of time after written notice of such failure or (ii) the negligence of Lessor, its employees, agents, contractors or invitees. 
  
 The Lessor is not liable for any claims, costs or liabilities arising out of or in connection
with the acts or omissions of any other lessees in the building. The Lessee waives all of its claims in respect thereof against the Lessor. 
  
 20. QUIET ENJOYMENT: Lessor warrants that it has full right to execute and to perform this Lease and to grant the estate demised and that Lessee,
upon payment of the required rents and performing the terms, conditions, covenants and agreements contained in this Lease shall peaceably and quietly have, hold and enjoy the Premises during the full term of this Lease as well as any extension or
renewal thereof, subject to the provisions of this Lease. Lessor shall not be responsible for the acts or omissions of any other lessee or third party that may interfere with Lessee’s use and enjoyment of the Premises. Notwithstanding the
foregoing, Lessor acknowledges and agrees that in the event any other tenant of Lessor defaults with respect to its obligations under such tenant’s lease and such default materially adversely interferes with Lessee’s use and enjoyment of
the Premises, then, if requested by Lessee, Lessor shall, at no out-of-pocket cost or expense to Lessor, take such commercially reasonable actions as may be necessary to require the subject tenant to comply with the terms of its lease so as to
eliminate such interference with Lessee’s use and enjoyment of its Premises. 
  
 21. LESSOR’S RIGHT OF ENTRY: Lessor shall have the right upon providing 24 hours prior written notice to Lessee (except in the event of an emergency where no such prior notice shall be required), at
all reasonable hours, to enter the Premises for the following reasons: cleaning or making repairs; making alternations or additions as Lessor may deem necessary or desirable provided same do not adversely affect Lessee’s business operations
or materially detract from the aesthetics of the Premises; determining Lessee’s use of the Premises, determining if an act of default under this Lease has occurred, or for the purpose of showing the Premises to prospective purchasers,
mortgagees and, during the last six (6) months of the Lease term only, tenants. The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alternations or additions that do not conform to this Lease or to
the rules and regulations of the building. In relation to the foregoing, Lessor acknowledges and agrees that all entries by Lessor or its agents or contractors into the Premises shall be conducted at such times and in such a manner so as to
minimize any interference with Lessee’s business operations. 
  
 22.
ASSIGNMENT OR SUBLEASE: Lessor shall have the right to transfer and assign, in whole or in part, its rights and obligations in the building and property that are the subject of this Lease. Lessee shall not assign this Lease or
sublet all or any part of the Premises without Lessor’s prior written consent which consent will not be unreasonably withheld or delayed. The transfer of a majority of shares, or partnership interests, or any other
beneficial interests in the Lessee in Lessee will be deemed an assignment in violation of this Lease. Without limiting the generality of the foregoing, Lessor shall have the option, upon receipt from Lessee of written
request for Lessor’s consent to subletting or assignment, setting forth the date that the requested subletting or assignment is to be effective, to cancel this Lease as of such date. The option shall be exercised, if at all, within fifteen (15)
days following Lessor’s receipt of such written request by delivery to Lessee of written notice of Lessor’s intention to exercise the option. Notwithstanding the foregoing or any other provision contained herein to the
contrary, Lessor acknowledges and agrees that Lessee may assign its interest under this Lease or sublet all or any portion of the Premises to any entity controlling or controlled by or under common control with Lessee or any successor to Lessee by
purchase, merger, consolidation or reorganization (hereinafter, collectively referred to as a “Permitted Transfer”); provided (i) Lessee is not then in default under this Lease beyond any applicable notice and cure 
  

 10 

 period, (ii) the Premises are not in any way adversely affected by the assignment or subletting. In the event of
any assignment of subletting, Lessee shall nevertheless at all times remain fully responsible and liable for the payment of the rent and for compliance with all of its other obligations under the terms, provisions and covenants of this Lease. In the
event of any sublease or assignment of all or any portion of the Premises where the rent in the sublease or assignment exceeds the rent or pro rate portion of the rent, as the case may be, for such space in the Lease, Lessee shall pay the Lessor
monthly, as additional rent, at the same time as the monthly installments or rent hereunder, one-half (1/2) of the excess rent paid for the sublease or assignment over the rent in this Lease applicable to the subleased or assigned space.
Lessor’s approval of any subtenant or assignee is conditioned upon there being no additional compliance required with all laws, rules and regulations of any governmental authority required of either the Lessor or the Lessee and such approval
shall create no responsibility or liability on the part of the Lessor for any non-compliance with laws, rules and regulations of any governmental authority. Upon the occurrence of an “event of default” as defined below, if all or any part
of the Premises are then assigned or sublet, Lessor, in addition to any other remedies provided by this Lease or provided by law, may at its option, collect directly from the assignee or subtenants all rents becoming due to Lessee by reason of the
assignment or sublease, and Lessor shall have a security interest in all properties on the Premises to secure payment of such sums. Any collection directly by Lessor from any assignee or subtenant shall not be construed to constitute a novation or a
release of Lessee from the further performance of its obligations under this Lease. 
  
 23. LANDLORD’S LIEN: As security for payment of rent, damages and all other payments required to be made by this Lease, Lessee hereby grants to Lessor a lien upon all property of Lessee now or subsequently
located upon the Premises. If Lessee abandons or vacates any substantial portion of the Premises or is in default in the payment of any rentals, damages or other payments required to be made by this Lease or is in default of any other provision of
this Lease. Lessor may enter upon the Premises, by picking or changing locks if necessary, and take possession of all or any part of the personal property, and may, on behalf of Lessee, sell all or any part of the personal property at a public or
private sate, in one or successive sales, with or without notice, to the highest bidder for cash, delivering to the highest bidder all of Lessee’s title and interest in the personal property sold to him. The proceeds of the sale of the personal
property shall be applied by Lessor toward the reasonable costs and expenses of the sale, including attorney’s fees, and then toward the payment of all sums then due by Lessee to Lessor under the terms of this Lease; any excess remaining shall
be paid to Lessee or any other person entitled thereto by law. Lessor acknowledges and agrees that Lessee shall have the right at any time to encumber all or any portion of its interest in and to any furniture, trade fixtures or
equipment located in the Premises with a lien to secure financing, and Lessor agrees to execute such Lessor’s lien waiver or other agreement as Lessee’s lender may reasonably require in connection with such financing. 
  
 24. UNIFORM COMMERCIAL CODE: This Lease is intended as and
constitutes a security agreement within the meaning of the Uniform Commercial Code of the state in which the Premises are situated and, Lessor, in addition to the rights prescribed in this Lease, shall have all of the rights, titles, liens and
interests in and to Lessee’s property now or hereafter located upon the Premises which are granted a secured party, as that term is defined under the Uniform Commercial Code, to secure the payment to Lessor of the various amounts provided in
this Lease. Lessee will on request execute and deliver to Lessor a financing statement for the purpose of perfecting Lessor’s security interest under this Lease or Lessor may file this Lease or a copy thereof as a financing statement.

  
 25. DEFAULT BY LESSEE: The following shall be deemed to
be events of default by Lessee under this Lease: 
  

	(a)	Lessee shall fail to pay when due any installment of rent or any other payment required pursuant to this Lease; within ten days of the due date and any such failure to pay shall
continue for a period of at least five (5) days after the date Lessor provides Lessee written notice of such failure to timely pay such amounts due (however, Lessor shall not be required to send written notice more than two (2) times in any one
calendar year and in such, no notice shall be required). 

  

	(b)	Lessee shall abandon any substantial portion of the Premises; 

  

	(c)	Lessee shall fail to comply with any term, provision or covenant of this Lease, other than the payment of rent, and the failure is not cured within five (5) days after
written notice to Lessee; fifteen (15) days after written notice to Lessee; provided, however, if any such failure by Lessee to comply with this Lease cannot reasonably be corrected within such fifteen (15) day period as a
result of non-financial circumstances outside of Lessee’s control, and if Lessee has commenced substantial corrective actions within such fifteen (15) day period and is diligently pursuing such corrective actions, such fifteen (15) day period
shall be extended for such additional time as reasonably necessary to allow completion of actions to correct Lessee’s noncompliance. 

  

	(d)	Lessee shall file a petition or be adjudged bankrupt or insolvent under federal bankruptcy law or any similar law or statue of the United States or any state; or a receiver or
trustee shall be appointed for all or substantially all of the assets of Lessee or Lessee shall make a transfer in fraud of creditors or shall make an assignment for the benefit of creditors; or 

  

	(e)	Lessee shall do or permit to be done any act, which results in a lien being filed against the Premises or the building and/or project of which the Premises are a part and such
lien is not released or bonded off within fifteen (15) days of the date Lessee is notified of the filing of such lien. 

  
 26. REMEDIES FOR LESSEE’S DEFAULT: Upon the occurrence of any event of default set forth in this Lease, Lessor shall have the option to pursue
any one or more of the following remedies without any notice or demand: 
  
 (a)
Terminate this Lease, in which event Lessee shall immediately surrender the Premises to Lessor, and if Lessee fails to surrender the Premises, Lessor may, without prejudice to any other remedy which it may have for possession or arrearages in rent,
enter upon and take possession of the Premises, by picking or changing locks if necessary, and lock out, expel, or remove Lessee and any other person who may be occupying all or any part of the Premises without being liable for prosecution of any
claim for damages. Lessee agrees to pay on demand the amount of all loss and damage which Lessor may suffer by reason of the termination of the Lease under this subparagraph, whether through inability to relet the Premises on satisfactory terms or
otherwise. 
  

 11 

 (b) Enter upon and take possession of the Premises, by picking or changing locks if necessary, and lock out, expel or
remove Lessee and any other person who may be occupying all or any part of the Premises without being liable for any claim for damages, and relet the Premises on behalf of Lessee and receive directly the rent by reason of the reletting. Lessee
agrees to pay Lessor on demand any deficiency that may arise by reason of any reletting of the Premises; further, Lessee agrees to reimburse Lessor for any commercially reasonable expenditures made by it for remodeling or repairing in order
to relet the Premises. 
  
 (c) Enter upon the Premises, by picking or changing
locks if necessary, without being liable for prosecution of any claim for damages, and do whatever Lessee is obligated to do under the terms of this Lease. Lessee agrees to reimburse Lessor on demand for any expenses which Lessor may incur in
effecting compliance with Lessee’s obligation under this Lease; further, Lessee agrees that Lessor shall not be liable for any damages caused by the negligence of Lessor or otherwise resulting to Lessee from effecting compliance with
Lessee’s obligations under this subparagraph. 
  
 Notwithstanding any other provision contained herein to the contrary, Lessor acknowledges and agrees that in the event of a Lessee default hereunder; Lessor shall use commercially reasonable efforts to mitigate its damages.

  
 27. WAIVER OF DEFAULT OR REMEDY: Failure of
Lessor either party hereunder to declare an event of default immediately upon its occurrence, or delay in taking any action in connection with an event of default, shall not constitute a waiver of the default, but
Lessor such non-defaulting party shall have the right to declare the default at any time and take such action as is lawful or authorized under this Lease. Pursuit of anyone or more of the remedies set forth in
Paragraph 26 above any section of this Lease shall not preclude pursuit of any one or more of the other remedies provided elsewhere in this Lease or provided by law, nor shall pursuit of any remedy provided constitute
forfeiture or waiver of any rent or damages accruing to Lessor the non-defaulting party by reason of the violation of any of the terms, provisions or covenants of this Lease. Failure by Lessor either
party to enforce one or more of the remedies provided upon an event of default shall not be deemed or construed to constitute a waiver of the default or of any other violation or breach of any of the terms, provisions and covenants contained in
this Lease. 
  
 28. LESSOR’S LIABILITY: In the event of
any liability of Lessor, Lessee agrees to look solely to Lessor’s interest in the building or the project, the leases of the building or of the project, and the Premises for the satisfaction of any right or remedy of Lessee including the
collection of a judgment (or other judicial process) requiring the payment of money by Lessor, and no other property or assets of Lessor shall be subject to levy, execution, attachment or other enforcement procedure for the satisfaction of
Lessee’s remedies under or with respect to the Lease, the relationship of Lessor and Lessee hereunder, or Lessee’s use and occupancy of the demised premises, or any other liability of Lessor to Lessee. 
  
 29. ELECTION OF ARBITRATION: Lessor shall have the right to elect that
any controversy or claim arising out of or relating to this Lease, or the breach thereof, be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and judgment upon the award rendered in
such an arbitration may be entered in any court having jurisdiction thereof. 
  
 30. ACTS OF GOD: Lessor shall not be required to perform any covenant or obligation in this Lease, or Neither party shall be liable in damages to Lessee the other party, so long
as the performance or non-performance of the covenant or obligation is delayed, caused by or prevented by an Act of God or force majeure; provided, however, in no event shall an Act of God or force majeure be deemed to excuse the failure of the
payment of sums of money by one party to the other party due hereunder. 
  
 31. ATTORNEY’S FEES: In the event Lessee either party defaults in the performance of any of the terms, covenants, agreements or conditions contained in this Lease and Lessor
the non-defaulting party places in the hands of an attorney the enforcement of all or any part of this Lease or the collection of any rent due or to become due or recovery of the possession of the Premises, then in any of such events,
Lessee the defaulting party agrees to pay Lessor reasonable attorney’s fees actually incurred for the services of the attorney, whether suit is actually filed or not. In no event shall the
attorney’s fees be less than fifteen percent of the outstanding balance owed by Lessee to Lessor. 
  
 32. HOLDING OVER: In the event of holding over by Lessee after the expiration or termination of this Lease, the hold over shall be as a tenant at will and
all of the terms and provisions of this Lease shall be applicable during that period except that Lessee shall pay Lessor as rental for the period of such hold over an amount equal to one and one-half fourth the rent
which would have been payable by Lessee had the hold over period been a part of the original term of this Lease. Lessee agrees to vacate and deliver the Premises to Lessor upon Lessee’s receipt of notice from Lessor to vacate. The rental
payable during the hold over period shall be payable to Lessor on demand. No holding over by Lessee, whether with or without consent of Lessor, shall operate to extend this Lease except as otherwise expressly provided. 
  
 33. RIGHTS OF FIRST MORTGAGEE: This Lease is and shall be subject and
subordinate to all ground or underlying leases which may now or hereafter affect the building and to all mortgages and deeds of trust which may now or hereafter affect such leases or the building, and to all renewals, refinancings, modifications,
replacements and extensions thereof (each, a ‘superior instrument’), and to any lien created thereby. Lessee shall promptly execute and deliver any certificate that the holder of a superior instrument (the “Holder”) may
reasonably request to confirm the subordination and Lessor is hereby irrevocably designated as attorney-in-fact for Lessee to deliver any such certificate to the Holder in the name, place and stead of Lessee. .
Notwithstanding the foregoing, Lessor shall use reasonable efforts in obtaining from the holder any or future mortgage an agreement in writing reasonably satisfactory to Lessee providing that for so long as the Lessee is not in default under
this Lease 
  

 12 

 beyond any applicable notice and cure period, the Holder of such superior instrument shall not disturb Lessee’s
use and occupancy of the Premises. In the event the Holder succeeds to the interest of Lessor under this Lease, it shall not (i) have any liability for refusal or failure to perform or complete any work required to be done by Lessor under this
Lease or any work letter attached hereto, to prepare the Premises for Lessee’s occupancy, or otherwise to prepare the Premises for occupancy in accordance with the provisions of this Lease, or have any liability under any guaranty of
indemnification with respect to such work, (ii) be liable for any act, omission or default of any prior Lessor under this Lease provided, however, the foregoing shall not be deemed to release such party from any obligation it might otherwise have
to cure defaults of a continuing nature, (iii) be subject to any offsets, claims or defenses which shall have theretofore accrued to Lessee against any prior Lessor, (iv) be bound by any rent or additional rent which Lessee might have paid to
any prior Lessor for more than one month in advance, (v) be bound by any modification, amendment, abridgment, cancellation or surrender of this Lease to which the Holder shall not have consented in writing. In the case of any foreclosure or
conveyance by deed in lieu of foreclosure under any superior instrument, the rights and remedies of Lessee in respect of any obligations of any successor Lessor under this Lease shall be nonrecourse as to any assets of such successor Lessor other
than its equity in the building. In the event the Holder shall succeed to the interest of Lessor under this lease, whether through possessory or foreclosure action or deed in lieu of foreclosure, this Lease shall, at the option of the
Holder, not be terminated or affected by such foreclosure or any of such proceedings and Lessee shall attorn to and recognize the Holder as its Lessor upon the terms, covenants, conditions and agreements contained in this Lease to the same
extent and in the same manner as if this Lease was a direct lease between the Holder and Lessee, except as otherwise provided above. 
  
 34. ESTOPPEL CERTIFICATES: Lessee agrees to furnish promptly, from time to time, upon request of Lessor or any mortgagee, an estoppel certificate to
Lessor, any person designated or any mortgagee, in the form attached hereto as Exhibit B, with such modifications thereto as are required to make the same true and correct. Likewise, Lessor agrees that upon written request by Lessee, Lessor shall
deliver to Lessee an estoppel certificate covering such matters of fact with respect to the Lease as are reasonably requested by Lessee. 
  
 35. FINANCIAL INFORMATION: If then requested by Lessor, Lessee agrees to submit to Lessor, within 160 days from Lessee’s fiscal year end,
audited annual financial statements of its parent company for the previous fiscal year. If Lessee does not have annual financial statements which are audited, Lessee agrees to submit to Lessor unaudited annual financial statements within the same
time frame. With respect to the foregoing, if requested by Lessee, Lessor shall execute and deliver such commercially reasonable form of confidentially agreement as Lessee may require as a condition to its release of any financial statements,
which are not otherwise publicly available. 
  
 36. COST OF LIVING
INCREASE: At the end of each calendar year of the term hereof, the monthly rent to be paid by Lessee for the upcoming calendar year will increase in accordance with the cost of living, as follows: 
  
 An estimate of the cost of living will be made by calculating the percentage of
variation of the current year from the previous calendar year, as indicated by the Consumer Price Index – U.S. City Average – Clerical and Wage Earner (1967 = 100), published by the Bureau of Labor Statistics from September to September.
Said percentage will be multiplied by the existing monthly rent, as illustrated in the sample formula below: 
  

			
	 2005 CPI – 2004 CPI

	 	x 2004 monthly rent = estimated adjustment in 2005 rent
	 2004 CPI
	 	 

  
 The resulting figure will be
the amount of increase in the upcoming year’s monthly rent. In no event shall the rent ever be reduced by reason of this Paragraph 36 and in no event be less than three percent. 
  
 Within 90 days after the first day of the new calendar year, Lessor shall provide
Lessee with a notice of actual rental adjustment for the previous year, as indicated by the CPI for that year. If said notice is above the amount prepaid by Lessee, the remainder shall be due and payable with the next month’s rent.

  
 In the event that (A) the Consumer Price Index ceases to use the 1967
base of 100, or (B) a substantial change is made in the number of items used in determining the Consumer Price Index such that Lessor and Lessee agree that the Consumer Price Index does not accurately reflect the purchasing power of the dollar, or
(C) the Consumer Price Index shall be discontinued for any reason, Lessor shall reasonably designate a new index or base that measures the cost of living, with appropriate adjustment in such base or index to make the same comparable to CPI (1967)
– U.S. City Average – All Items – Urban Wage Earners and Clerical Workers. 
  
 37. SUCCESSORS: This Lease shall be binding upon and inure to the benefit of Lessor and Lessee and their respective heirs, personal representatives, successors and assigns. It is hereby covenanted
and agreed that should Lessor’s interest in the Premises cease to exist for any reason during the term of this Lease, then notwithstanding the happening of such event this Lease nevertheless shall remain unimpaired and in full force and effect
and Lessee hereunder aggress to attorn to the owner of the Premises. 
  
 38.
RENT TAX: If applicable in the jurisdiction where the Premises are situated, Lessee shall pay and be liable for all rental, sales and use taxes or other similar taxes, if any, levied or imposed by any city, state, county or
other governmental body having authority, such payments to be in addition to all other payments required to be paid to Lessor by Lessee under the terms of this Lease. Any such payment shall be paid concurrently with the payment of the rent upon
which the tax is based as set forth above. 
  

 13 

 39. DEFINITIONS: The following definitions apply to the terms set forth below as used in this Lease:

  
 (a) “Abandon” means the vacating of all or a substantial portion of
the Premises by Lessee, whether or not Lessee is in default of the rental payments due under this Lease. 
  
 (b) An “act of God” or “force majeure” is defined for purposes of this Lease as strikes, lockouts, sit-downs, material or labor restrictions by any governmental authority, unusual transportation
delays, riots, floods, washouts, expulsions, earthquakes, fire, storms, weather (including wet grounds or inclement weather which prevents construction), acts of the public enemy, wars, insurrections and any other cause not reasonably within the
control of Lessor the applicable party and which by the exercise of due diligence Lessor of the applicable party is unable, wholly or in part, to prevent or overcome. 
  
 (c) The “commencement date” shall be the date set forth in Paragraph 2. The
“commencement date” shall constitute the commencement of this Lease for all purposes, whether or not Lessee has taken possession. 
  
 (d) Subject to the provisions of Paragraph 4(d) of the Work Letter Agreement attached hereto, the “completion date” shall be the date on which the
improvements erected and to be erected upon the Premises shall have been substantially completed in accordance with the plans and specifications described in Paragraph 12. Lessor shall use its reasonable efforts to establish the “completion
date” as the date set forth in Paragraph 2. In the event that the improvements have not in fact been completed as of that date, Lessee shall notify Lessor in writing of its objections. Lessor shall have a reasonable time after delivery of the
notice in which to take such corrective action as may be necessary, and shall notify Lessee in writing as soon as it deems such corrective action has been completed so that the improvements are completed and ready for occupancy. Taking of
possession by Lessee shall be deemed to establish conclusively that the improvements have Lessor’s Work has been substantially completed and that the Premises are in good and satisfactory condition, as of the date
possession was so taken by Lessee, except for latent defects and incomplete punch list items, if any. 
  
 (e) “Real property tax” means all school, city, state and county taxes and assessments, including special district taxes or assessments. 
  
 (f) “Square feet” or “square foot” as used in this Lease includes the area contained within the space occupied by Lessee
together with a common area percentage factor of Lessee’s space proportionate to the total building area. 
  
 (g) “Lessor” as used in this Lease means only the owner, or the Mortgagee in possession, for the time being of the building or the land on which the building is situated (the “land”) (or the owner
of a lease of the building or of the land and the building), so that in the event of any transfer of title to said land and building or said lease, or in the event of a lease of the building, or of the land and building, upon notification to Lessee
of such transfer or lease the said transferor Lessor shall be and hereby is entirely freed and relieved of all existing or future covenants, obligations and liabilities of Lessor hereunder. 
  
 40. MISCELLANEOUS: The captions appearing in this Lease are inserted
only as a matter of convenience and in no way define, limit, construe or describe the scope or intent of such paragraph. If any provision of this Lease shall ever be held to be invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provision of this Lease, and such other provisions shall continue in full force and effect. 
  
 41. NOTICE: (a) All rent and other payments required to be made by Lessee shall be payable to Lessor at the address set forth below. 
  
 (b) All payments required to be made by Lessor to Lessee shall be payable to Lessee shall be payable at the address set forth below, or at
any other address within the United States as Lessee may specify from time to time by written notice. 
  
 (c) Any notice or document required or permitted to be delivered by this Lease shall be deemed to be delivered (whether or not actually received) five (5) days after the date being deposited in the United
States Mail, or hand delivered, postage prepaid, certified mail, return receipt requested, at the time of delivery if hand delivered or one (1) day following the day same is deposited with a reputable overnight courier service
for next day delivery, addressed to the parties at the respective addresses set out below: 
  

			
	Lessor:	 	Lessee:
		
	Realmark-Commercial LLC	 	Adherex, Inc.
	c/o Realmark Properties, Inc.	 	2300 Englert Dr., Suite G
	2350 N. Forest Road	 	Durham, NC 27713
	Getzville, NY 14068	 	Att: Legal Department

  
 42. ENTIRE AGREEMENT AND
LIMITATION OF WARRANTIES: IT IS EXPRESSLY AGREED BY LESSEE, AS A MATERIAL CONSIDERATION FOR THE EXECUTION OF THIS LEASE, THAT THIS LEASE, WITH THE SPECIFIC REFERENCES TO WRITTEN EXTRINSIC DOCUMENTS, IS THE ENTIRE AGREEMENT OF THE PARTIES;
THAT THERE ARE AND WERE NO VERBAL REPRESENTATIONS, WARRANTIES, UNDERSTANDINGS, STIPULATIONS, AGREEMENTS OR PROMISES PERTAINING TO THIS LEASE OR THE EXPRESSLY MENTIONED WRITTEN EXTRINSIC DOCUMENTS NOT INCORPORATED IN WRITING IN THIS LEASE. LESSOR AND
LESSEE EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED WARRANTIES, UNDERSTANDINGS, STIPULATIONS, AGREEMENTS OR PROMISES PERTAINING TO THIS LEASE OR THE EXPRESSLY MENTIONED WRITTEN EXTRINSIC DOCUMENTS NOT INCORPORATED IN WRITING IN THIS LEASE.
LESSOR AND LESSEE EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED WARRANTIES OF MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OF ANY OTHER KIND ARISING OUT OF THIS LEASE AND THERE ARE NO WARRANTIES WHICH EXTEND BEYOND
THOSE EXPRESSLY SET FORTH IN THIS LEASE. IT IS LIKEWISE 
  

 14 

 AGREED THAT THIS LEASE MAY NOT BE ALTERED, WAIVED, AMENDED OR EXTENDED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY
BOTH LESSOR AND LESSEE. THE FOLLOWING DOCUMENTS ARE ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCES: 
  
 43. OTHER PROVISIONS: “See attached Exhibit C.” 
  
 Signed at
                                    , this 1st day of April, 2004. 
  

			
	Lessor: REALMARK – COMMERCIAL, LLC	 	Lessee: ADHEREX, INC.
		
	 /s/ David Shipston

	 	 /s/ William P. Peters

		
	By:	 	By:
	(Name and Title) David Shipston, Vice President	 	William P. Peters, Chief Executive Officer
		
	Attest:	 	Attest:

  

 15 

 Exhibit A 
  

Floor Plan 

 Exhibit B 
  

Form of Estoppel Certificate 
  
 The undersigned
                                        
                                        
         (“Lessee”), in consideration of One Dollar ($1.00) and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby certifies to
                                        
                 (“Lessor”), [the holder or prospective holder of any mortgage or deed of trust covering the property] (the “Mortgagee”) and [the
vendee under any contract of sale with respect to the Property] (the “Purchaser”) as follows: 
  

	1.	Lessee executed and exchanged with Lessor a certain lease (the “Lease”), dated
                            , 20        , covering the
                                        
floor shown attached on the plan annexed hereto as Exhibit A (the “leased premises”) in the building located in the
                                        
         known as and by the street number
                                        
     (the “Property”), for a term to commence (or which commenced) on
                                    ,
20        , and to expire on
                                        
    . 

  

	2.	The Lease is in full force and effect and has not been modified, changed, altered or amended in any respect. 

  

	3.	Lessee has accepted and is now in possession of the leased premises and is paying the full rental under the Lease. 

  

	4.	The base rental payable under the Lease is
$                                        
                     per month. The base rental and all additional rent and other charges required to be paid under the Lease have been paid for
the period up to and including
                                        
            . 

  

	5.	No rent under the Lease has been paid for more than thirty (30) days in advance of its due date. 

  

	6.	All work required under the Lease to be performed by Lessor has been completed to the full satisfaction of Lessee. 

  

	7.	There To Lessee’s current actual knowledge, there are no defaults existing under the Lease on the part of either Lessor or Lessee.

  

	8.	There To Lessee’s current actual knowledge, there is no existing basis for Lessee to cancel or terminate the Lease. 

  

	9.	As of the date hereof, there exists no valid defense, offsets, credits, deductions in rent or claims against the enforcement of any of the agreements, terms, covenants or conditions
of the Lease. 

  

	10.	Lessee affirms that any disputes with Lessor giving rise to a claim against Lessor is a claim under the Lease only and is subordinate to the rights of the holder of all
mortgages or deeds of trust of the fee or leasehold of the building and shall be subject to all the terms, conditions and provisions thereof. Any such claims are not offsets to or defense against enforcement of the Lease.

  

	11.	Lessee affirms that any dispute with Lessor giving rise to a claim against Lessor is a claim under the Lease only and is subordinate to the rights of the Purchaser pursuant
to any contract of sale. Any such claims are not offsets to or defense against enforcement of the Lease. 

  

	12.	Lessee affirms that any claims pertaining to matters in existence at the time Lessee took possession and which are known to or which were then readily ascertainable by Lessee shall
be enforced solely by money judgment and/or specific performance against Lessor named in the Lease and except as otherwise specifically set forth in the Lease, may not be enforced as an offset to or defense against enforcement of the Lease.

  

	13.	There are no actions, whether voluntary or otherwise, pending against Lessee under the bankruptcy laws of the United States or any state thereof. 

  

	14.	There has been no material adverse change in Lessee’s financial condition between the date hereof and the date of execution and delivery of the Lease.

  

	15.	Lessee acknowledges that Lessor has informed Lessee that an assignment of Lessor’s interest in the Lease has been or will be made to the Mortgagee and that no modifications,
revision or cancellation of the Lease or amendments thereto shall be effective unless a written consent thereto of the Mortgagee is first obtained, and that until further notice payments under the Lease may continue as heretofore.

  

	16.	Lessee acknowledges that Lessor has informed Lessee that Lessor has entered into a contract to sell the Property to Purchaser and that no modification, revision or cancellation of
the Lease or amendments thereto shall be effective unless a written consent thereto of the Purchaser has been obtained. 

  

	17.	This certification is made to induce Purchaser to consummate a purchase of the Property and to induce Mortgagee to make and maintain a mortgage loan secured by the Property and/or
to disburse additional funds to Lessor under the terms of its agreement with Lessor, knowing that said Purchaser and Mortgagee rely upon the truth of this certification in making and/or maintaining such purchase or mortgage or disbursing such funds,
as applicable. 

  

	18.	Except as modified herein, all other provisions of the Lease are hereby ratified and confirmed. 

  

			
	 
	 By:
	 	  

	 	 	Lessee
		
	 	 	

	 	 	Date
	 	 	 

  
  

 Exhibit C 
  

Other Provisions 
  

	1.	RENEWAL OPTION. (a) Provided the Lessee is not then in uncured default under this Lease beyond applicable notice and cure periods, Lessee shall have the option to renew this
Lease as to the entire Premises for one (1) successive three (3) year terms, each of such terms commencing upon the expiration of the then current term hereof (the “Renewal Options”). If Lessee exercises a Renewal Option, Lessee agrees to
pay rent during the respective Renewal Option period at the Fair Market Rental Rate (as hereinafter determined and defined) per month under the same terms and conditions as set forth in the Lease. 

  

	 	(b)	As used in this Lease, the term “Fair Market Rental Rate” shall mean the then prevailing monthly rental rate per square foot of space comparable in use, area and
location to the space for which the Fair Market Rental Rate is being determined and being leased for a duration comparable for which such space is leased for periods commencing on or about the commencement of the term of such space. The Fair Market
Rental Rate shall be determined by taking into consideration comparable fact situations during the prior 12-month period or any more recent relevant period in comparable buildings in Durham, North Carolina. 

  

	 	(c)	Lessor shall notify Lessee of Lessor’s determination of the Fair Market Rental Rate within fifteen (15) days after receipt of Lessee’s written request therefore (which
shall be made by Lessee no later than one hundred eighty (180) days prior to the expiration of the Term or any previous Renewal Option term exercised by Lessee). If Lessee agrees with Lessor’s determination of the Fair Market Rental Rate, then,
Lessee may exercise its Renewal Option by providing Lessor written notice thereof within fifteen (15) days of its receipt of Lessor’s notice of determination of the Fair Market Rental Rate. If Lessee disagrees with Lessor’s determination
of the Fair Market Rental Rate, Lessee shall notify Lessor of Lessee’s disagreement within fifteen (15) days after Lessee’s receipt of Lessor’s notice of its determination of the Fair Market Rental Rate. If Lessee so notifies Lessor,
that Lessor’s determination of the Fair Market Rental Rate is not acceptable to Lessee, Lessor and Lessee shall, during the fifteen (15) day period after Lessee’s notice, attempt to agree on the Fair Market Rental Rate. If Lessor and
Lessee are unable to agree, then the Fair Market Rental Rate shall be determined as provided below: Lessor and Lessee shall each select an expert (as hereinafter described) within fifteen (15) days after the expiration of the aforementioned fifteen
(15) day period. Such expert shall be independent and experienced in leasing similar-class space in the Durham, North Carolina, and shall be instructed to form their opinions based on the criteria specified above. Both experts so selected shall
within ten (10) days after their selection, select a third (3rd) expert who shall also meet the same qualifications. The
three (3) experts so selected shall within fifteen (15) days after the selection of the third (3rd) expert each
independently formulate their opinion of the Fair Market Rental Rate for the space and period in question. The three (3) opinions shall then be averaged and such average shall be the Fair Market Rental Rate; provided, however, that if any experts
opinion is more than ten percent (10%) greater or less than the middle opinion, then such greater or lesser opinion (or both if each is more a variance from the middle opinion than ten percent (10%)), shall be disregarded and the remaining number of
opinions shall be added together with the sum thereof divided by the remaining number of opinions and the quotient thereof shall be the Fair Market Rental Rate. The determination of the Fair Market Rental Rate by the three (3) experts (or such
lesser number of experts as may be applicable in accordance with the above provisions) shall be binding upon Lessor and Lessee; Lessor and Lessee shall each pay for the services of its expert and shall share equally in the cost of the third expert.
In the event Lessee fails to timely exercise its Renewal Option, the Renewal Option of Lessee shall lapse unexercised. 

  

	2.	RIGHT OF FIRST REFUSAL ON ADJACENT SPACE. Lessee shall have a right of first refusal to rent all or any portion of the building lying adjacent to the Premises (the “Adjacent
Space”) subject to the terms of this Section 2. Accordingly, provided no uncured event of default then exists with respect to Lessee, Lessor will provide Lessee written notice (the “Adjacent Space Notice”), in the event Lessor either
issues a proposal to a third party to lease space within the building which includes all or any portion of the Adjacent Space or in the event Lessor receives a written third party proposal acceptable to Lessor for lease of any space which includes
all or any portion of the Adjacent Space. Such Adjacent Space Notice shall set forth the terms of the subject third (3rd)
party proposal. The party to whom Lessor issues the subject proposal to lease or from whom Lessor has received a proposal to lease which is acceptable to Lessor shall be referred to herein as the “Proposed Adjacent Space Lessee”. Lessee
shall have ten (10) days following its receipt of such Adjacent Space Notice to provide Lessor written notice of Lessee’s acceptance or rejection to lease the area, which is the subject of the third (3rd) proposal (the “Adjacent Space Right of Refusal Space”) in accordance with all the terms and provisions of the subject third (3rd) party proposal. In the event Lessee fails to provide Lessor notice of its election to lease the Adjacent Space Right of
Refusal Space within said ten (10) day period, then, Lessor shall be free to execute a lease for the subject Adjacent Space Right of Refusal Space with the Proposed Adjacent Space Lessee under the terms set forth in the Adjacent Space Notice. In the
event Lessee provided the Lessor timely notice of its election to lease the subject Adjacent Space Right of Refusal Space, 

 then, in such event, Lessee shall enter into a lease with Lessor within fifteen (15) days thereafter
upon the terms and conditions set forth in such third (3rd) party proposal. The form of such Lease shall be the same form
of this Lease except to the extent inconsistent with the terms and conditions of the Adjacent Space Notice. 
  

	3.	EXPANSION OPTION. Lessee shall have a right at anytime during the term of the Lease to expand into any portion of the building lying adjacent to the Premises which is not then
occupied and not subject to any lease or active lease proposal then being negotiated by Lessor and a prospective tenant (“Expansion Space”). Lessee’s lease of such Expansion Space shall be upon the same terms and conditions as
Lessee’s lease of the original Premises hereunder, except that Lessee shall take such Expansion Space and it’s then “as is” condition without any obligation on part of Lessor to make improvements thereto. In the event Lessee so
desires to take any such Expansion Space, Lessee shall provide Lessor thirty (30) days prior written notice of its election to take such Expansion Space. Accordingly, the rent commencement for such Expansion Space shall be that date which thirty
(30) days is following the date of Lessee’s notice to Lessor of its election to take such Expansion Space. Upon Lessee’s election to so take such Expansion Space, Lessor and Lessee shall enter into an amendment to this Lease acknowledging
the incorporation of the subject Expansion Space into the Premises. Following such time as Lessor and Lessee enter into such amendment acknowledging the incorporation of the Expansion Space into the Premises, Lessor shall make the Expansion Space
available to Lessee for its build out of such Expansion Space. Lessee’s lease of the Expansion Space shall be coterminous with the lease of the original Premises. 

  

	4.	LIMITED SELF HELP RIGHT. Notwithstanding any other language contained herein to the contrary, Lessor acknowledges and agrees that in the event either (i) Lessor fails to perform
any of its maintenance obligations under this Lease within thirty (30) days of its receipt of notice from Lessee, or (ii) Lessor, after commencing such performance, thereafter fails to diligently and continuously pursue the completion of same, then,
in either such event, Lessee shall have the right to cure Lessor’s nonperformance and charge Lessor for Lessee’s reasonable actual out of pocket cost thereof. Furthermore, in addition to the rights set forth above, in the event emergency
repairs are needed to elements of the Premises for which Lessor is responsible under the Lease in order to prevent imminent damage to Lessee’s property or business operations, then, under such circumstances, if Lessor has failed to commence and
thereafter diligently pursue such repairs within a reasonable period following its receipt of Lessee’s notice of the need thereof (the reasonableness of said period to be determined based upon the attendant facts and circumstances), Lessee
shall have the right to cure Lessor’s nonperformance and charge Lessor Lessee’s reasonable actual out of pocket cost thereof. In relation to the foregoing, Lessee acknowledges and agrees that even as to emergency repairs; Lessee’s
notice to Lessor shall be in writing. 

 EXHIBIT D 
 Work Letter 
  

	1.	The “Plans” consist of the following described items, which are hereby approved by Lessee and Lessor: 

  

	 	A.	The floor plan attached hereto as Exhibit D-1 showing Lessor’s required build out of the Premises. 

  

	 	B.	the list of improvements attached hereto as Exhibit D-2, which is to be made as part of Lessor’s required build out of the Premises. 

  
 2. Lessor shall promptly begin construction of the improvements described and shown in
the Plans (the “Lessor’s Work”), and shall pursue such construction with reasonable diligence to completion. Construction of Lessor’s Work shall be accomplished by contractors selected and employed by Lessor. 
  
 3. Lessor shall be solely responsible for all costs and expenses incurred in connection
with the construction of Lessor’s Work in accordance with the Plans. 
  
 4. Lessor acknowledges and agrees that Lessee shall have the right to change the scope of Lessor’s Work in accordance with the provisions of this Section 4 with the approval of the Lessor which approval will not be unreasonablely
withheld or delayed. In the event Lessee requests any changes to the scope of Lessor’s Work, Lessee shall submit revised drawings and/or revised specifications, as applicable, to Lessor for approval. Upon its receipt thereof, Lessor shall
incorporate such changes into the Plans and they shall thereafter become a part of Lessor’s Work. However, Lessee acknowledges and agrees that Lessee shall be solely responsible for any and all increases in cost incurred in completing the
Lessor’s Work which are attributable to Lessee’srequested changes in the scope of the Lessor’s Work. With respect thereto, Lessor acknowledges and agrees that Lessee shall have a right to amortize up to $28,500.00 of any such
increases in costs over the term of the Lease by an increase in the monthly base rental amounts due hereunder as necessary to so amortize such excess over the term of the Lease at an interest rate of six percent (6%). An example of the foregoing
would be where Lessee requests change orders to the scope of Lessor’s Work which have the effect of increasing the cost of Lessor’s Work by $35,000.00, Lessee would be responsible to pay $6,500.00 of such cost to Lessor on or before the
Commencement Date and would have the right to amortize the remaining $28,500.00 of such cost over the initial six (6) year term of the Lease at said six percent (6%) interest rate, which would result in each monthly base rental payment of Lessee
hereunder during the initial six (6) year term being increased by $472.34. 
  
 5. Substantial completion of Lessor’s Work shall be deemed to occur on the earlier of (i) the date the Lessor’s Work is substantially completed in all material respects in substantial compliance with the Plans (including any
Lessee requested changes thereto) excepting only minor finish and touch-up work that does not interfere in any material respect with the occupancy of the Premises by Lessee (ii) the issuance of a Certificate of Occupancy or, (iii) the issuance of a
Temporary Certificate of Occupancy. After the date of substantial completion, Lessor shall proceed with reasonable promptness to complete any minor finish and touch-up work and any other work required to finally complete the Lessor’s Work.

  
 6. Lessor acknowledges and agrees that Lessee shall be entitled to
access the Premises for purposes of installation of its trade fixtures and wiring for a two (2) week period prior to the date Lessor achieves substantial completion of the Lessor’s Work. Accordingly, Lessor shall provide Lessee written notice
of its target substantial completion date approximately three (3) weeks prior to the date it anticipates substantial completion shall be achieved to enable Lessee to schedule such fixturing and wiring activities. Further related thereto, Lessor
acknowledges and agrees that it shall provide Lessee temporary storage space for the full thirty (30) day period proceeding the date it substantially completes the Lessor’s Work for purposes of storage by Lessee of trade fixtures and/or
equipment. 

 EXHIBIT D-2 
  
 -Paint seven (7) poles around entrance on perimeter of building 
  
 -Entrance: general touch-ups at suite entry 
  

-Repair cracked soffit 
  
 -Cove base - carpet throughout 
  
 -Microscope room 
  
 -Flip door to server/phone room to swing out to open instead of in 
  
 -Add vent to server/phone room 
  
 -Wallpaper with building standard ($8.00 per sq. yd. Including installation): conference room, reception area, hallway, and first three offices to left of reception area (shown on plan) 
  
 -Chair rail: conference room, reception area, hallway, and first three offices to left
of reception area (shown on plan) 
  
 -Conference room to have two (2) sets
of can lights, on separate dimmers [lights over table separate from perimeter lights] 
  
 -Building standard carpet borders for conference room, reception area, hallway, and first three offices to left of reception area (shown on plan) 
  
 -New carpet with building standard and rubber base board ($14.00 per sq. yd including installation and rubber base board) throughout,
except as stated above 
  
 -New paint throughout 
  
 -New building standard VCT throughout 
  
 -Restrooms within suite (Men’s room with toilet and urinal; Women’s with one
toilet, where shown on plan) 
  
 -Hoods - repaired and in operating
condition 
  
 -Fix all blinds (all matching) 
  
 -Replace all ceiling tiles (other than in the lab) with Armstrong Ultima acoustic
ceiling tiles 
  
 -Refinish doors as required 
  
 -Replace/refinish hardware as required 
  
 -Electrical: five (5) 220 volt electrical outlets, location TBD 
  
 -Storage as shown on drawing 
  
 -Fix sidewalk 
  
 -Signage - Landlord shall provide exterior building signage agreed upon by Landlord and Tenant 
  
 -Replace upper and lower cabinets in kitchenette as shown on plan 
  
 -New wall with door in kitchenette/proposed conference room area, as shown on plan

  
 -Convert lab area to area for cubes; carpet, paint, electrical for
cubes with building standards 
  
 -Take wall out between offices as shown
on plan 

 -Create one large conference room as shown on plan 
  
 -Remove sink as shown on plan 
  
 -Provide a 1 1/2 ton
dedicated HVAC unit of which the tenant allowance is $6,000.00 

 Exhibit C 
  

Rent Schedule 
  
 Monthly Lease Payments 
  

				
	 1 – 6
	  	$	1,007.63
	 7 – 12
	  	$	4,868.75
	 13 – 24
	  	$	5,014.81
	 25 – 36
	  	$	5,165.26
	 37 – 42
	  	$	5,320.21
	 43 – 60
	  	$	5,479.82
	 61 – 72
	  	$	5,644.22

 Rules and Regulations 
  

	1.	Lessor agrees to Lessee two twenty-five (25) keys without charge. Additional keys will be furnished at a nominal charge. 

  

	2.	Lessee will refer all contractors, contractor’s representatives and installation technicians rendering any service on or to the leased premises for Lessee, to Lessor for
Lessor’s approval and supervision before performance of any contractual service. This provision shall apply to all work performed on or about the leased premises or project, including installation of telephones, telegraph equipment, electrical
devices and attachments and installations of any nature affecting floors, walls, woodwork, trim, windows, ceilings and equipment or any other physical portion of the premises or project. Lessor may charge a supervisory fee equal to ten percent (10%)
of the cost of all such services contractual services under circumstances where the total cost of the contractual service is in excess of $10,000.00. 

  

	3.	Lessee shall not at any time occupy any part of the leased premises or project as sleeping or lodging quarters. 

  

	4.	Except to the extent necessary for the conducting of Lessee’s business operations, Lessee shall not place, install or operate on the leased premises or in any
part of the building, any engine, stove or machinery, or conduct mechanical operations or cook thereon or therein, or place or use in or about the leased premises or project any explosives, gasoline, kerosene, oil, acids, caustics, or any flammable,
explosive or hazardous material without written consent of Lessor. Notwithstanding the foregoing, Lessee shall be entitled to utilize microwave ovens in the Premises. 

  

	5.	Lessor will not be responsible for lost or stolen personal property, equipment, money or jewelry from the leased premises or the project regardless of whether such loss occurs when
the area is locked against entry or not. 

  

	6.	No dogs, cats, fowl or other animals shall be brought into or kept in or about the leased premises or project. 

  

	7.	Employees of Lessor shall not receive or carry messages for or to any Lessee or other person, not contract with or render free or paid services to any Lessee or Lessee’s
agents, employees or invitees. 

  

	8.	None of the parking, plaza, recreation or lawn areas, entries, passages, doors, elevators, hallways or stairways shall be blocked or obstructed, or any rubbish, litter, trash or
material of any nature will be placed, emptied or thrown into these areas or such area be used by Lessee’s agents, employees or invitees at any time for purposes inconsistent with their reasonable designation by Lessor.

  

	9.	The water closets and other water fixtures shall not be used for any purpose other than those for which they were constructed, and any damage resulting to them from misuse, or by
the defacing or injury of any part of the building shall be borne by the person who shall occasion it. No person shall waste water by interfering with the faucets or otherwise. 

  

	10.	No person shall disturb occupants of the building by the use of any radios, record players, tape recorders, musical instruments, the making of unseemly noises, or any unreasonable
use. 

  

	11.	Nothing shall be thrown out of the windows of the building or down the stairways or other passages. 

  

	12.	Lessee shall notify the Building Manager when safes or other heavy equipment are to be taken into or out of the Building. Moving of such items shall be done under the supervision of
the Building Manager, after receiving written permission from him. Lessor agrees that there will be no charge for such supervision if such moving occurs during normal working hours. 

  

	13.	Lessor shall have the power to prescribe the weight and position of safes or other heavy equipment, which may overstress the floor. All damage done to the Building by the improper
placing of heavy items that overstress the floor will be repaired at the sole expense of Lessee. 

  

	14.	No additional locks shall be placed upon any doors without the prior written consent of Lessor. All necessary keys shall be furnished by Lessor, and the same shall be surrendered
upon termination of this Lease, and Lessee shall then give Lessor or his agent an explanation of the combination of all locks on the doors or vaults. 

  

	15.	Corridor doors, when not in use, shall be kept closed. 

  

	16.	Lessee shall comply with reasonable parking rules and regulations as may be posted and distributed from time to time. 

  

	17.	Vending machines or dispensing machines of any kind will not be placed in the leased premises by Lessee unless prior written approval has been obtained from Lessor.

  

	18.	Prior written approval, which shall be at Lessor’s sole discretion, must be obtained for installations of any solar system material, window shades, blinds, drapes, awnings,
window ventilators, or other similar equipment and any window treatment of any kind whatsoever. Lessor will control all internal lighting that may be visible from the exterior of the Building and shall have the right to change any unapproved
lighting, without notice to the Lessor, at Lessee’s expense. 

  

	19.	Lessee shall be required to furnish and install a chair mat for each desk chair in the leased premises. 

  

	20.	The building shall be closed for the following legal holidays: New Year’s Day, the Fourth of July, Labor Day, Thanksgiving Day and Christmas Day, however, Lessee shall still
be entitled to access and utilize the Premises on such dates. 

  
 It is Lessor’s desire to maintain in the building or project the highest standard of dignity and good taste consistent with comfort and convenience for Lessees. Any action or condition not meeting this high standard should be reported
directly to Lessor. Your cooperation will be mutually beneficial and sincerely appreciated. Lessor reserves the right to make such other and further reasonable rules and regulations as in its judgment may from time to time be necessary, for the
safety, care and cleanliness of the leased premises, and for the preservation of good order therein. 

 GUARANTY OF LEASE 
  

			
	 LESSOR:
	 	Realmark – Commercial LLC
		
	 LESSEE:
	 	Adherex, Inc.
		
	 LEASE DATED:
	 	

		
	 GUARANTOR:
	 	Adherex Technologies, Inc
	 	 	

	 	 	

	 	 	

		
	 GUARANTY DATE:
	 	

  
 Lessee wishes to enter into a lease
with Lessor. Lessor is unwilling to enter into the Lease unless Guarantor assures Lessor of the full performance of Lessee’s obligations under the Lease. Guarantor is willing to do so. 
  
 Accordingly, in order to induce Lessor to enter into the Lease with Lessee and for good and
valuable consideration, the receipt and adequacy of which are acknowledged by Guarantor: 
  

	1.	Guarantor unconditionally guarantees to Lessor, its successors and assigns, Lessee’s full and punctual performance of Lessee’s obligations under the Lease, including
without limitation payment of rent and all other charges due under the Lease. Guarantor waives notice of any breach or default by Lessee under the Lease. If Lessee defaults in the performance of its obligations, upon Lessor’s demand, Guarantor
will perform Lessee’s obligation under the Lease. 

  

	2.	Any act of Lessor, its successors and assigns, consisting of a waiver of any of the terms and conditions of the Lease, or the giving of consent to any matter related to or thing
related to the Lease, or granting of any indulgences or extensions of time to Lessee, may be done without notice to Guarantor and without affecting the obligations of Guarantor under this guaranty. 

  

	3.	The obligations of Guarantor under this guaranty will not be affected by Lessor’s receipt, application, or release of security given for the performance of Lessee’s
obligations under the Lease nor by any modification of the Lease including without limitation, the alteration, enlargement or change of the premises described in the Lease except in the case of any modification, the liability of Guarantor will be
deemed modified in accordance with the terms of such modification. 

  

	4.	The liability of Guarantor under this guaranty will not be affected by: 

  

	(a)	release or discharge of Lessee from its obligations under the Lease in any creditors’ receivership, bankruptcy or other proceedings, or the commencement or pendency of such
proceedings; 

  

	(b)	the impairment, limitation of the liability of Lessee or the estate of Lessee in bankruptcy, or any remedy for the enforcement of Lessee’s liability under the Lease resulting
from the operation of any future bankruptcy code or other statute or from the decision of any court; 

  

	(c)	the rejection or disaffirmance of the Lease in any such proceedings; 

	(d)	the assignment or transfer of the Lease or sublease of all or part of the premises described in the Lease by Lessee; 

  

	(e)	any disability or defense of Lessee; 

  

	(f)	the cessation from any cause whatsoever of the liability of Lessee under the Lease. 

  

	5.	Until all of the Lessee’s obligations under the Lease are fully performed, Guarantor: 

  

	(a)	waives any right of subrogation against Lessee by reason of any payments or acts of performance by Guarantor in compliance with the obligations of Guarantor under this guaranty;

  

	(b)	waives any other right that Guarantor may have against Lessee by reason of any one or more payments or acts in compliance with obligations of Guarantor under this guaranty; and

  

	(c)	subordinates any liability or indebtedness of Lessee held by Guarantor to the obligations of Lessee to Lessor under this Lease. 

  

	6.	The guaranty will apply to the Lease, any extensions or renewal of such Lease and any holdover term following the term of the Lease or any such extension or renewal.

  

	7.	This guaranty may not be changed, modified, discharged or terminated orally or in any manner other than by written agreement signed by Guarantor and Lessor.

  

	8.	Guarantor is directly obligated under the Lease. Lessor may at its option, proceed against Guarantor without proceeding against Lessee or anyone else obligated under the Lease or
against any security for any of Lessee’s or Guarantor’s obligations. 

  

	9.	Guarantor will pay on demand the reasonable attorney’s fees and costs incurred by Lessor, its successors or assigns, in connection with the enforcement of this guaranty.

  

	10.	Guarantor irrevocably appoints Lessee as its agent for service of process related to this guarantee. 

  

	11.	Guarantor agrees to provide Lessor with the same information and on the same terms as required of Lessee under Section 35 of the Lease. 

  

			
	
 Guarantor, Adherex Technologies,
Inc.

		
	 byREGISTRATION RIGHTS AGREEMENT, DATED AS OF DECEMBER 19,2003

 EXHIBIT 4.9 
  

REGISTRATION RIGHTS AGREEMENT 
  
 This Agreement is made as of December 19, 2003. 
  

			
	BETWEEN:	 	 
		
	 	 	Adherex Technologies Inc. (the “Company”), a company existing under the laws of Canada
		
	 	 	- and -
		
	 	 	HBM BioVentures (Cayman) Ltd. (the “Investor”)

  
 RECITALS: 
  

	A.	On the date hereof, the Company and the Investor entered into a subscription agreement (the “Subscription Agreement”) in connection with the issuance and sale by the
Company of Common Shares and Warrants (each as hereinafter defined) to the Investor. 

  

	B.	In order to induce the Investor to enter into the Subscription Agreement, the Company has agreed to enter into this Agreement. 

  
 THEREFORE, the parties agree as follows: 
  
 ARTICLE 1 
 REGISTRATION RIGHTS 
  
 1.1 Definitions 
  
 In this Agreement: 
  

	(a)	“1933 Act” means the United States Securities Act of 1933, as amended; 

  

	(b)	“1934 Act” means the United States Securities Exchange Act of 1934, as amended; 

  

	(c)	“Affiliate” is defined in Rule 12b-2 of the General Rules and Regulations under the 1934 Act; 

  

	(d)	“Business Day” means a day that is not a Saturday, Sunday or a statutory or legal holiday in Ottawa, Ontario or New York, New York; 

  

	(e)	“Canadian Public Offering” means a public offering of Common Shares by the Company pursuant to a prospectus filed with any applicable securities regulatory authority in
Canada; 

  

	(f)	“Canadian Securities Laws” means all applicable securities laws, the respective regulations, rules and orders made thereunder, and all applicable policies and notices
issued by the securities regulatory authorities in the Qualifying Jurisdictions; 

  

	(g)	“Common Shares” means the common shares in the capital of the Company; 

	(h)	“Form S-1”, “Form F-1”, “Form S-3”, “Form F-3”, “Form S-4”, “Form F-4”, “Form S-8”, “Form F-8”,
“Form F-10” and “Form F-80” mean such respective forms under the 1933 Act, as in effect on the date of this Agreement or any successor registration forms to such forms under the 1933 Act subsequently adopted by the SEC;

  

	(i)	“Holder” means the Investor or any assignee to whom Registrable Securities (or securities or rights convertible into Registrable Securities) are assigned in accordance
with section 11.1; 

  

	(j)	“Initiating Holders” means Holders making a request to the Company for registration or qualification of Registrable Securities pursuant to sections 2.1, 4.1 or 5.1, where
such Holders hold 30% or more of the Registrable Securities outstanding at that time; 

  

	(k)	“Investor” is defined on the first page of this Agreement; 

  

	(l)	“Notes” means, at any given time, the then outstanding notes convertible into Common Shares pursuant to the subscription agreement dated December 3, 2003;

  

	(m)	“Qualifying Jurisdictions” means the province of Ontario and each of the other provinces of Canada; 

  

	(n)	“Permitted Transferee” means, with respect to any Holder, (i) any transferee or assignee of Registrable Securities which controls, is controlled by or is under common
control with such Holder within the meaning of the 1933 Act and the 1934 Act, (ii) any transferee of not less than 30% of the Registrable Securities (as appropriately adjusted from time to time for stock splits and the like), or (iii) any other
transferee or assignee of all Registrable Securities held by such Holder if transferred to a single entity and with the prior written consent of the Company; provided that such transfer may otherwise be effected in accordance with applicable
securities laws; and provided further, that the Company is given written notice by such Holder at the time of or within a reasonable time after such transfer, stating the name and address of such transferee or assignee and identifying the securities
with respect to which such registration rights are being assigned; 

  

	(o)	“Recognized Stock Exchange” means the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange or the Nasdaq National Market;

  

	(p)	“register”, “registered”, and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in
compliance with the 1933 Act, and the automatic effectiveness or the declaration or ordering of effectiveness of such registration statement or document; 

  

	(q)	“Registrable Securities” means: 

  

	 	(i)	any Common Shares issued or issuable pursuant to the Subscription Agreement; 

  

	 	(ii)	any Common Shares issued or issuable upon exercise of the Warrants or as a dividend or other distribution with respect to, in exchange for, or in replacement of the Warrants;

  

	 	(iii)	any Common Shares issued or issuable upon conversion of the Notes or as interest or other distribution with respect to, in exchange for, or in replacement of the Notes; and

  

 2 

	 	(iv)	any Common Shares issued as a dividend or other distribution with respect to, in exchange for, or in replacement of any of the Common Shares that are Registrable Securities pursuant
to (i) or (ii) above; 

  
 but excludes: 

 

	 	(i)	other than for purposes of Article 2, Common Shares registered pursuant to an effective registration statement and Common Shares that may be sold pursuant to Rule 144 of the 1933
Act if the Holder is able to sell under Rule 144(k) all of the remaining Registrable Securities issued or issuable to such Holder; and 

  

	 	(ii)	any Common Shares held by Holders who are subject to applicable Canadian Securities Laws, if such Holders have the right (subject to any contractual commitments to the contrary) to
freely sell such Common Shares without a prospectus or resort to a prospectus exemption under applicable Canadian Securities Laws (other than an exemption relating to a control block distribution) and without registration under the 1933 Act;

  

	(r)	“SEC” means the United States Securities and Exchange Commission; 

  

	(s)	“U.S. IPO” means the Company’s first public offering of Common Shares pursuant to a registration statement on Form S-1, Form F-1 or Form F-10 filed with the SEC; and

  

	(t)	“Warrants” means, at any given time, the then outstanding warrants to purchase Common Shares issued or issuable pursuant to the Subscription Agreement.

  
 ARTICLE 2 
 CANADIAN QUALIFICATION RIGHTS 
  
 2.1 Demand Canadian Qualification Rights 
  
 At any time after the date hereof, if the Company receives a written request from Initiating Holders that the Company file a prospectus under Canadian Securities Laws
qualifying for distribution all or part of the Registrable Securities held by such Initiating Holders, then the Company will, within 10 Business Days following receipt of the request, give written notice of the request to all Holders and will afford
each Holder an opportunity to include in such prospectus all or any part of the Registrable Securities held by such Holder. Each Holder other than Initiating Holders that wishes to include in any such prospectus all or part of the Registrable
Securities held by it must send a written notice to the Company within 15 days after receipt of the Company’s notice, stating the number and intended manner of disposition of the Registrable Securities to be included in the prospectus.
Following this 15-day period, the Company will, subject to the limitations of sections 2.2 and 2.3: 
  

	(a)	as soon as practicable and in any event within 90 days of the end of such 15-day period, prepare and file in the Qualifying Jurisdictions a prospectus in order to qualify the
distribution of all of the Registrable Securities of the Initiating Holders specified in the request from the Initiating Holders and all of the Registrable Securities of the Holders other than the Initiating Holders specified in the notices from the
Holders other than the Initiating Holders; 

  

	(b)	use its commercial best efforts to resolve any regulatory comments and satisfy any regulatory deficiencies in respect of the preliminary prospectus and, as soon as reasonably
practicable after 

  

 3 

 such comments or deficiencies have been resolved or satisfied, will prepare and file, and use its
commercial best efforts to obtain a receipt (or an equivalent document) in the Qualifying Jurisdictions for, the (final) prospectus, and will take all other steps and proceedings necessary in order to qualify the distribution of the Registrable
Securities to the public as freely tradable securities in the Qualifying Jurisdictions; 
  

	(c)	ensure that the prospectus contains the disclosure required by, and conforms in all material respects to the requirements of, the applicable provisions of Canadian Securities Laws;

  

	(d)	prepare and file with the securities regulatory authorities in the Qualifying Jurisdictions any amendments and supplements to the prospectus that may be necessary to comply with
Canadian Securities Laws with respect to the distribution of all securities qualified by such prospectus; 

  

	(e)	in the case of an underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of
such offering; and 

  

	(f)	keep each Holder whose Registrable Securities are being qualified reasonably advised of the status of such qualification. 

  
 2.2 Number of Demand Qualifications 
  
 The Company is only obligated to file a number of prospectuses under section 2.1 equal to
(x) three minus (y) the number of registrations previously effected pursuant to section 4.1 which were not effected in conjunction with a concurrent Canadian Public Offering in which Holders exercised their rights pursuant to section 2.1, but no
filing pursuant to section 2.1 is deemed to be a filing for purposes of this section if: 
  

	(a)	the number of Registrable Securities included in an underwriting of the Registrable Securities qualified under such prospectus is less than 50% of the number of Common Shares
proposed by the Holders to be distributed through such underwriting, and the Holders pay all expenses of such filing, including those otherwise payable by the Company in accordance with section 8.1; or 

  

	(b)	the registration is withdrawn in accordance with section 8.2, unless such registration was withdrawn at the request of the Holders in circumstances other than those described in
section 8.2(b). 

  

	2.3	Exceptions 

  
 If the Company is requested to file a prospectus pursuant to section 2.1: 
  

	(a)	the Company is not obligated to effect the filing of such prospectus if the number of Registrable Securities to be qualified comprises less than 20% of the Registrable Securities
outstanding at that time; 

  

 4 

	(b)	the Company is not obligated to effect the filing of such prospectus: 

  

	 	(i)	for a period of up to 135 days after the date of a request for qualification pursuant to section 2.1 if: 

  

	 	(A)	at the time of such request, the Company is engaged, or has fixed plans to engage, within 90 days of the time of such request, in a firm commitment underwritten public offering of
Common Shares in which the Holders of Registrable Securities are entitled to include Registrable Securities pursuant to sections 3.1 or 3.3; or 

  

	 	(B)	at the time of such request, the Company is currently engaged in a self-tender or exchange offer and the filing of a prospectus would cause a violation of the 1934 Act or applicable
Canadian Securities Laws; 

  

	 	(ii)	during the 90-day period following the completion by the Company of a firm commitment underwritten public offering of Common Shares in which the Holders of Registrable Securities
were entitled (subject to underwriter cutbacks) to include Registrable Securities pursuant to sections 3.1 or 3.3; 

  

	 	(iii)	if the anticipated aggregate net proceeds of the offering to such Holders is less than U.S.$7,500,000 in the case of a long-form prospectus or U.S.$1,000,000 in the case of a
short-form prospectus; 

  

	 	(iv)	if the Company, in connection with a previously completed Canadian Public Offering, filed a prospectus qualifying all of the Registrable Securities including those issuable upon
exercise of the Warrants and conversion of the Notes, and such prospectus is effective to qualify the distribution of the Registrable Securities for which qualification is otherwise requested pursuant to Section 2.1, at the time such Registrable
Securities are intended to be distributed; or 

  

	 	(v)	in the case of a request for the filing of a short-form prospectus, if the Company has already effected the filing of a prospectus pursuant to section 2.1 within the previous
nine-month period; 

  

	(c)	the Company may defer such filing for a period of not more than 90 days, but only if: 

  

	 	(i)	the Company furnishes to the Holders requesting the filing of such prospectus a certificate signed by the President and Chief Executive Officer of the Company stating that, in the
good faith judgment of the Board of Directors, effecting the filing would materially impede the ability of the Company to consummate a significant transaction (the 90-day deferral period beginning on the date that such certificate is sent to the
Holders); and 

  

	 	(ii)	the Company has not deferred a filing in reliance on this section 2.3(c) during the previous 12-month period; and 

  

	(d)	the Company may defer such filing if the Company determines that such filing would require the disclosure of material information that the Company has a bona fide business purpose
for preserving as confidential, until the earlier of: 

  

	 	(i)	5 days following the date upon which such material information is disclosed to the public or ceases to be material; and 

  

	 	(ii)	60 days after the Company makes such determination. 

  

 5 

 ARTICLE 3 
 SECONDARY OFFERING RIGHTS 
  
 3.1
Company Registration 
  
 If the Company proposes to file a preliminary
prospectus under any Canadian Securities Laws in connection with a Canadian Public Offering, the Company will give each Holder written notice of the proposed filing at least 45 days prior to such filing. If the Company receives a written request
from one or more Holders within 30 days of the Company’s notice specifying the number of Registrable Securities the Holder or Holders wish to sell in a secondary offering, the Company will use its commercial best efforts to cause the
Registrable Securities so specified to be included in and sold pursuant to the prospectus. The Company’s obligations under this section are subject to the provisions of section 9.1. The Company is not required to include any Holder’s
Registrable Securities in such secondary offering if and to the extent that such inclusion prevents the Company from receiving sufficient proceeds from the Canadian Public Offering for its own needs (in the opinion of the Board of Directors of the
Company, acting reasonably), but no Registrable Securities will be excluded from the secondary offering unless all Common Shares, other than Registrable Securities and Common Shares to be issued and sold by the Company, are also excluded. Any such
secondary offering must be entirely underwritten on a firm commitment basis. 
  
 3.2 Secondary Offering on U.S. IPO 
  
 If the Company proposes to
file a registration statement in connection with its U.S. IPO, the Company will give each Holder written notice of the proposed filing at least 45 days prior to such filing. If the Company receives a written request from one or more Holders within
30 days of the Company’s notice specifying the number of Registrable Securities the Holder or Holders wish to sell in a secondary offering, the Company will use its commercial best efforts to cause the Registrable Securities so specified to be
included in and sold pursuant to the registration statement. The Company’s obligations under this section are subject to the provisions of section 9.1. The Company is not required to include any Holder’s Registrable Securities in such
secondary offering if and to the extent that such inclusion prevents the Company from receiving sufficient proceeds from the U.S. IPO for its own needs (in the opinion of the Board of Directors of the Company, acting reasonably), but no Registrable
Securities will be excluded from the secondary offering unless all Common Shares, other than Registrable Securities and Common Shares to be issued and sold by the Company, are also excluded. Any such secondary offering must be entirely underwritten
on a firm-commitment basis. 
  
 3.3 Company Registration 
  
 If the Company proposes to register, on a date that is 180 or more days following a U.S. IPO
(including for this purpose a registration effected by the Company for shareholders other than the Holders), any of its Common Shares or other equity securities (or securities convertible into equity securities) under the 1933 Act in connection with
the public offering of such securities solely for cash (other than a registration on Form S-8, Form S-4, Form F-4, Form F-8 or Form F-80), the Company will, at all such times, promptly give each Holder written notice of such proposed registration.
Upon the written request of any Holder, given within 20 days after mailing of such notice by the Company, the Company will, subject to the provisions of section 9.1, use its commercial best efforts to cause a registration statement covering all of
the Registrable Securities that each such Holder has requested to be registered to become effective under the 1933 Act. 
  

 6 

 3.4 No Obligation to Complete Offering 
  
 The Company is under no obligation to complete any offering of its securities it proposes to make and will incur no liability to any Holder
for its failure to do so. 
  
 ARTICLE 4 
 REQUEST FOR REGISTRATION 
  
 4.1 Demand Registration 
  
 At any time after the date that is 180 days after the closing of a U.S. IPO, if the Company receives a written request from Initiating Holders that the Company file a registration statement under the 1933 Act covering
the registration of all or part of the Registrable Securities held by such Initiating Holders, then the Company will, within 10 Business Days following receipt of the request, give written notice of the request to all Holders and will afford each
Holder an opportunity to include in such registration statement all or any part of the Registrable Securities held by such Holder. Each Holder other than Initiating Holders that wishes to include in any such registration statement all or part of the
Registrable Securities held by it must send a written notice to the Company within 15 days after receipt of the Company’s notice, stating the number and intended manner of disposition of the Registrable Securities to be included in the
registration statement. Following this 15-day period, the Company will, subject to the limitations of this Article 4, use its commercial best efforts to effect such a registration as soon as practicable and in any event to file within 90 days of the
end of such 15-day period, a registration statement under the 1933 Act covering all the Registrable Securities that the Holders request in writing to be registered and to use its commercial best efforts to have such registration statement become
effective. 
  
 4.2 Number of Demand Registrations 
  
 The Company is only obligated to effect a number of registrations pursuant to section 4.1 on
Form S-1, Form F-1 or Form F-10 (in the case of a long-form Canadian prospectus) equal to (x) three minus (y) the number of prospectuses previously filed pursuant to section 2.1 which were not filed in conjunction with a concurrent U.S. public
offering in which Holders exercised their rights pursuant to section 4.1, but no registration pursuant to section 4.1 is deemed to be a registration for purposes of this section if: 
  

	(a)	the number of Registrable Securities included in an underwriting of the Registrable Securities distributed under such registration is less than 50% of the number of Registrable
Securities proposed by the Holders to be distributed through such underwriting, and the Holders pay all expenses of such registration, including those otherwise payable by the Company in accordance with section 8.1; or 

  

	(b)	the registration is withdrawn in accordance with section 8.2, unless such registration was withdrawn at the request of the Holders in circumstances other than those described in
section 8.2(b). 

  
 4.3 Exceptions 
  
 If the Company is requested to file a registration statement pursuant to section 4.1:

  

	(a)	the Company is not obligated to effect the filing of such registration statement if: 

  

	 	(i)	the number of Registrable Securities to be registered comprises less than 20% of the Registrable Securities outstanding at that time; or 

  

 7 

	 	(ii)	the Registrable Securities that the Initiating Holders wish to have registered may be immediately registered on Form S-3, Form F-3 or Form F-10 pursuant to a request made under
Article 5; 

  

	(b)	the Company is not obligated to effect the filing of such registration statement: 

  

	 	(i)	for a period of up to 135 days after the date of a request for registration pursuant to section 4.1 if: 

  

	 	(A)	at the time of such request, the Company is engaged, or has fixed plans to engage, within 90 days of the time of such request, in a firm commitment underwritten public offering of
Common Shares in which the Holders of Registrable Securities are entitled to include Registrable Securities pursuant to sections 3.1 or 3.3; or 

  

	 	(B)	at the time of such request, the Company is currently engaged in a self-tender or exchange offer and the filing of a registration statement would cause a violation of the 1934 Act
or applicable Canadian Securities Laws; 

  

	 	(ii)	during the 90-day period following the completion by the Company of a firm commitment underwritten public offering of Common Shares in which the Holders of Registrable Securities
were entitled to include Registrable Securities pursuant to sections 3.1 or 3.3; or 

  

	 	(iii)	the anticipated aggregate net proceeds of the offering to such Holders is less than [U.S.$7,500,000]; 

  

	(c)	the Company may defer such filing for a period of not more than 90 days, but only if: 

  

	 	(i)	the Company furnishes to the Holders requesting such registration statement a certificate signed by the President and Chief Executive Officer of the Company stating that, in the
good faith judgment of the Board of Directors, effecting the registration would materially impede the ability of the Company to consummate a significant transaction (the 90-day deferral period beginning on the date that such certificate is sent to
the Holders); and 

  

	 	(ii)	the Company has not deferred a filing in reliance on this section 4.3(c) during the previous 12-month period; and 

  

	(d)	the Company may defer such filing if the Company determines that such filing would require the disclosure of material information that the Company has a bona fide business purpose
for preserving as confidential, until the earlier of: 

  

	 	(i)	5 days following the date upon which such material information is disclosed to the public or ceases to be material; and 

  

	 	(ii)	60 days after the Company makes such determination. 

  

 8 

 ARTICLE 5 
 FORM S-3, FORM F-3 OR FORM F-10 REGISTRATION 
  
 5.1 Form S-3, Form F-3 or Form F-10 Registration 
  
 If the
Company receives a written request from Initiating Holders that the Company file a registration statement on Form S-3, Form F-3 or Form F-10 (in the case of a short-form Canadian prospectus) (and any related qualification or compliance) covering the
registration of all or part of the Registrable Securities held by such Initiating Holders, then the Company will, within 10 Business Days following receipt of the request, give written notice of the request to all Holders (and any related
qualification or compliance) and will afford each Holder an opportunity to include in such registration statement all or any part of the Registrable Securities held by such Holder. Each Holder other than Initiating Holders that wishes to include in
any such registration statement all or part of the Registrable Securities held by it must send a written notice to the Company within 15 days after receipt of the Company’s notice, stating the number and intended manner of disposition of the
Registrable Securities to be included in the registration statement. Following this 15-day period, the Company will use its commercial best efforts to effect, as soon as practicable, a registration on, at the Company’s option, Form S-3, Form
F-3 or Form F-10 (in the case of a short-form Canadian prospectus) (and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, to keep such registration effective for the lesser of six months and such
earlier time at which all Registrable Securities covered by such registration statement have been sold) and such qualification or compliance as may be so requested and as would permit or facilitate the sale and distribution of all or such portion of
the Registrable Securities as specified by the Holders. 
  
 5.2 Exceptions

  
 If the Company is requested to effect any registration, qualification or
compliance pursuant to section 5.1: 
  

	(a)	the Company is not obligated to effect any such registration, qualification or compliance if: 

  

	 	(i)	none of Form S-3, Form F-3 or Form F-10 is available for such offering by the Holders; 

  

	 	(ii)	the aggregate net offering price (after deduction of underwriting discounts and commissions) of the Registrable Securities specified in such request is less than
[U.S.$1,000,000]; or 

  

	 	(iii)	the Company has already effected (i) a registration on Form S-3, Form F-3 or Form F-10 pursuant to section 5.1 or (ii) a registration on Form S-1, Form F-1 or Form F-10 pursuant to
section 4.1 within the previous nine-month period; 

  

	(b)	the Company may defer any such registration pursuant to section 5.1 for a period of not more than 90 days after receipt of the request of the Holder or Holders under section 5.1 if:

  

	 	(i)	the Company furnishes to the Holders requesting such registration statement a certificate signed by the President and Chief Executive Officer of the Company stating that, in the
good faith judgement of the Board of Directors, effecting the registration, qualification or compliance would materially impede the ability of the Company to consummate a significant transaction (the 90-day deferral period beginning on the date that
such certificate is sent to the Holders); and 

  

 9 

	 	(ii)	the Company has not deferred a filing in reliance on this section 5.2(b) during the previous 12-month period; and 

  

	(c)	the Company may defer any such filing pursuant to section 5.1 if the Company determines that such filing, qualification or compliance would require the disclosure of material
information that the Company has a bona fide business purpose for preserving as confidential, until the earlier of: 

  

	 	(i)	5 days following the date upon which such material information is disclosed to the public or ceases to be material; and 

  

	 	(ii)	60 days after the Company makes such determination. 

  
 ARTICLE 6 
 REPORTS UNDER SECURITIES
EXCHANGE ACT OF 1934 
  
 6.1 Resales Under Rule 144 
  
 With a view to making available to the Holders the benefits of Rule 144 promulgated under
the 1933 Act (“Rule 144”) and any other rule or regulation of the SEC that may at any time permit a Holder to sell Common Shares of the Company to the public without registration, and with a view to making it possible for Holders to have
the resale of the Registrable Securities registered pursuant to a registration statement on Form S-3 or Form F-3, the Company will: 
  

	(a)	use its commercial best efforts to make and keep adequate current public information available, as such term is understood and defined in Rule 144, at all times after 90 days
following the effective date of the first registration statement filed by the Company under the 1933 Act for the offering of its Common Shares to the general public; 

  

	(b)	use its commercial best efforts, after a U.S. IPO, to file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934
Act; and 

  

	(c)	furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request: 

  

	 	(i)	a written statement by the Company as to its compliance with the reporting requirements of Rule 144 (at any time after 90 days following the effective date of the first registration
statement filed by the Company under the 1933 Act for the offering of the Common Shares to the general public), the 1933 Act and the 1934 Act (at any time after it has become subject to such reporting requirements), or as to its qualification as a
registrant whose securities may be resold pursuant to Form S-3, Form F-3 or Form F-10 (at any time after it so qualifies); 

  

	 	(ii)	a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company with the SEC; and 

  

	 	(iii)	such other documents as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such Common Shares without
registration or pursuant to such form. 

  

 10 

 ARTICLE 7 
 OBLIGATIONS OF THE COMPANY 
  
 7.1
Effecting a Registration 
  
 If the Company is required under this Agreement
to use its commercial best efforts to effect the registration of any Registrable Securities, the Company will, as expeditiously as reasonably possible, prepare and file with the SEC a registration statement with respect to such Registrable
Securities and use, subject to the other provisions of this Agreement, its commercial best efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable Securities registered
thereunder, keep such registration statement effective for the lesser of (x) 6 months (in the case of a short-form registration statement) or 90 days (in the case of a long-form registration statement) and (y) such earlier time at which all
Registrable Securities covered by such registration statement have been sold (such period, the “Effectiveness Period”). Before filing such registration statement, or any amendment or supplement thereto, the Company shall provide counsel
selected by Holders holding a majority of the Registrable Securities (“Holders Counsel”) being registered in such registration with an adequate and appropriate opportunity to review and comment on such registration statement and any
prospectus included therein (and any amendment or supplement thereto). 
  
 7.2
Additional Obligations for Registrations 
  
 In addition to its obligations
under section 7.1, if the Company is required under this Agreement to use its commercial best efforts to effect the registration of any Registrable Securities, the Company will: 
  

	(a)	prepare and file with the SEC such amendments and supplements to the registration statement and the prospectus used in connection with such registration statement, and use its
commercial best efforts to cause each such amendment and supplement to become effective, as may be necessary to comply with the provisions of the 1933 Act with respect to the disposition of all Common Shares covered by such registration statement
during the Effectiveness Period; 

  

	(b)	furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the 1933 Act, and such other documents,
including a copy of any filed registration statement, as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 

  

	(c)	use its commercial best efforts to register or qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such United States
states and jurisdictions as are reasonably requested by the Holders, except that the Company is not required in connection therewith or as a condition thereto to qualify to do business, subject itself to taxation or file a general consent to service
of process in any such state or jurisdiction; 

  

	(d)	upon any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the lead underwriter(s) of such
offering. Each Holder participating in such underwriting will also enter into and perform its obligations under such an underwriting agreement, including furnishing an opinion of counsel and entering into a lockup agreement in accordance with
Article 13; 

  

	(e)	in the case of an underwritten offering, furnish, at the request of any Holder requesting registration of Registrable Securities pursuant to this Agreement, on the date that such
Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Agreement, if such securities are being sold through underwriters, or, if such securities are 

  

 11 

 not being sold through underwriters, on the date that the registration statement with respect to such
securities becomes effective: 
  

	 	(i)	an opinion or opinions, dated such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given by company
counsel to the underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities; and 

  

	 	(ii)	a letter dated such date, from the auditors of the Company, in form and substance as is customarily given by auditors to underwriters in an underwritten public offering, addressed
to the underwriters, if any, and to the Holders requesting registration of Registrable Securities, provided that such Holders have made such representations and furnished such undertakings as such accountants may reasonably require therefor;

  

	(f)	apply for listing and use its commercial best efforts to list the Registrable Securities being registered on any securities exchange on which a class of the Company’s equity
securities is listed or, if the Company does not have a class of equity securities listed on a national securities exchange, apply for qualification and use its commercial best efforts to qualify the Registrable Securities being registered for
inclusion on the Nasdaq National Market; 

  

	(g)	without in any way limiting the types of registrations to which this Agreement applies, if the Company effects a “shelf registration” on Form S-1, Form S-3, Form F-1 or
Form F-3 under Rule 415 promulgated under the 1933 Act, take all necessary action, including the filing of post-effective amendments, to permit the Holders to include their Registrable Securities in such registration in accordance with the terms of
this Agreement; 

  

	(h)	comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable but not later than 15 months after the
effective date of the registration statement, an earnings statement covering a period of 12 months beginning after the effective date of the registration statement, in a manner which satisfies the provisions of Section 11(a) of the 1933 Act and Rule
158 thereunder; 

  

	(i)	keep Holders Counsel advised in writing as to the initiation and progress of any registration pursuant to this Agreement; 

  

	(j)	notify Holders Counsel and each seller of Registrable Securities of any stop order issued or threatened by the SEC and take all action necessary to prevent the entry of such stop
order or to remove it if entered; 

  

	(k)	make available at reasonable times for inspection by any seller of Registrable Securities, any lead underwriter participating in any disposition of such Registrable Securities
pursuant to a registration statement, Holders Counsel and any attorney, accountant or other agent retained by any such seller or any managing underwriter, all financial and other records, pertinent corporate documents and properties of the Company
and its subsidiaries as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and cause the Company’s and its subsidiaries’ officers, directors and employees, and its external auditors, to supply all
information reasonably requested by any such person in connection with such registration statement; 

  

 12 

	(l)	cooperate with each seller of Registrable Securities and each underwriter participating in the disposition of such Registrable Securities and their respective counsel in connection
with any filings required to be made with the National Association of Securities Dealers, Inc.; and 

  

	(m)	take all other steps reasonably necessary to effect the registration of the Registrable Securities contemplated hereby. 

  
 7.3 Furnish Information 
  
 The obligations of the Company to take any action pursuant to this Agreement in respect of the Registrable Securities of any selling Holder
is conditional upon such selling Holder furnishing to the Company such information regarding itself, the Registrable Securities and the intended method of disposition of such securities, as is required to effect the registration or qualification of
its Registrable Securities. 
  
 ARTICLE 8 
 EXPENSES 
  
 8.1 Expenses of Demand Registration 
  
 Subject to section 8.2 and section 8.4, all reasonable expenses relating to Registrable Securities incurred in connection with (x) the first three filings of a prospectus pursuant to section 2.1 or the first three registrations, filings or
qualifications on Form S-1, Form F-1 or Form F-10 pursuant to section 4.1 or (y) any registration filing or qualification on Form S-3, Form F-3 or Form F-10 pursuant to section 5.1, including reasonable legal fees and expenses of counsel to the
Holders (up to U.S.$75,000 per registration or qualification, for the Holders’ counsel), all registration, filing and qualification fees and printing and accounting fees will be borne by the Company. 
  
 8.2 Limitation on Expenses 
  
 The Company is not required to pay for any expenses pursuant to section 8.1 of any filing of
a prospectus begun under section 2.1 or any registration begun pursuant to section 4.1, if the registration or filing request is subsequently withdrawn at any time at the request of the Holders of a majority in interest of the Registrable Securities
to be registered or qualified (in which case all participating Holders will bear such expenses), unless: 
  

	(a)	the Holders of a majority in interest of the Registrable Securities agree to forfeit their right to one demand registration or one qualification right pursuant to the section under
which the registration or qualification was initiated; or 

  

	(b)	at the time of any such withdrawal, the Holders have learned of a material adverse change in the condition, business or prospects of the Company (other than a change in market
demand for its Common Shares or in the market price thereof) from that known to the Holders of a majority of the Registrable Securities then outstanding at the time of their request that makes the proposed offering unreasonable or impracticable in
the good faith judgement of a majority in interest of the Holders of the Registrable Securities to be registered or qualified (in which case the qualification right pursuant to section 2.1 or the right to one demand registration pursuant to section
4.1, as the case may be, is not forfeited). 

  

 13 

 8.3 Expenses of Company Registration 
  
 Subject to section 8.4, the Company will bear and pay all reasonable expenses incurred in connection with any registration, filing or
qualification of Registrable Securities with respect to any registration pursuant to section 3.2 or 3.3 and any qualification of Registrable Securities pursuant to section 3.1 for each Holder including, without limitation, reasonable legal fees and
expenses of counsel to the Holders (up to U.S.$75,000 per registration, for the Holders’ counsel), all registration, filing and qualification fees and printing and accounting fees. 
  
 8.4 Underwriting Discounts and Commissions 
  

All underwriting discounts and selling commissions relating to Registrable Securities included in any registration or qualification effected pursuant to this Agreement
will be borne and paid ratably by the Holders of such Registrable Securities. 
  
 ARTICLE 9 
 UNDERWRITING 
  
 9.1 Underwriting Requirements 
  

	(a)	In connection with any offering pursuant to section 2.1, section 4.1 or Article 3 involving an underwriting of Common Shares being issued by the Company, the Company:

  

	 	(i)	is not required to include any of the Holders’ Registrable Securities in such underwriting unless such Holders accept the terms of the underwriting as agreed upon between the
Company, the Holders and the underwriters; and 

  

	 	(ii)	is only required to include such quantity as in the opinion of the underwriters, marketing factors allow. 

  

	(b)	In connection with any offering pursuant to sections 3.1 and 3.3, the Company shall select and retain the lead underwriter(s) thereof, provided that such selection shall also be
approved by the Initiating Holders, such approval not to be unreasonably withheld. In connection with any offering pursuant to sections 2.1 and 4.1 the Holders shall select and retain the lead underwriter(s) thereof, provided that such selection
shall also be approved by the Company, such approval not to be unreasonably withheld. 

  

	(c)	If the lead underwriter(s) for the offering pursuant to section 2.1 or section 4.1 advises the Company in writing that the total amount of Common Shares requested to be included
therein (including Registrable Securities requested by Holders to be included in such offering) exceeds the amount of Common Shares to be sold other than by the Company that marketing factors allow, then the Company is required to include in the
offering only that number of such Common Shares (including Registrable Securities) that the lead underwriter(s) believes marketing factors allow. 

  

 14 

 9.2 Allocation of Cutback 
  

	(a)	If the amount of Common Shares to be included in a registration or secondary offering, as applicable, is to be reduced in accordance with section 9.1, the Common Shares that would
otherwise be included will be reduced in the following order: 

  

	 	(i)	all Common Shares that shareholders other than the Company and the Holders seek to include in the offering will be excluded from the offering to the extent limitation on the number
of Common Shares included in the underwriting is required; and 

  

	 	(ii)	if further limitation on the number of Common Shares to be included in the underwriting is required, then the number of Common Shares held by the Holders that may be included in the
underwriting will be reduced so that the number of Common Shares included in the underwriting are pro rata in accordance with the number of Registrable Securities held by each such Holder. 

  

	(b)	For purposes of section 9.1(a), for any selling shareholder that is a Holder of Registrable Securities and is a partnership, a limited liability company or a corporation, the
partners, retired partners, members, retired members and shareholders of such Holder, or the estates and family members of such partners, retired partners, members and retired members and any trusts for the benefit of any of the foregoing persons
are collectively deemed to be a “selling Holder”, and any pro rata reduction with respect to such “selling Holder” is based upon the aggregate amount of Common Shares carrying registration rights owned by all entities and
individuals included in such “selling Holder”. 

  
 ARTICLE 10 
 INDEMNIFICATION 
  

10.1 Indemnification by Company 
  

	(a)	If any Registrable Securities are included in a registration statement or prospectus under this Agreement, the Company will indemnify and hold harmless each Holder, the officers,
directors, partners, members, agents and employees of each Holder, any underwriter (as defined in the 1933 Act or applicable Canadian Securities Laws) for such Holder and each person, if any, who controls such Holder or underwriter within the
meaning of the 1933 Act or the 1934 Act or applicable Canadian Securities Laws, against any losses (other than loss of profit), claims, damages or liabilities (joint or several) to which they may become subject under the 1933 Act, the 1934 Act,
Canadian Securities Laws or any other U.S. or Canadian federal, state or provincial law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions
or violations (each a “Violation”): 

  

	 	(i)	any untrue statement or alleged untrue statement of a material fact contained in such registration statement (including any preliminary prospectus or final prospectus contained
therein) or prospectus or any amendments or supplements thereto; 

  

	 	(ii)	the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading; or 

  

	 	(iii)	any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any state securities law or any rule or regulation promulgated under the 1933 Act, the 1934 Act, any
state securities law or any applicable Canadian Securities Laws in connection with the offering covered by such registration statement or prospectus. 

  

 15 

	(b)	The Company will reimburse each such Holder, officer, director, partner, member, agent, employee, underwriter or controlling person for any legal or other out-of-pocket expenses
reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action. 

  

	(c)	The Company is not liable under the indemnity contained in this section 10.1: 

  

	 	(i)	in respect of amounts paid in settlement of any loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent will not be
unreasonably withheld); 

  

	 	(ii)	to the extent that it arises out of or is based upon a Violation that occurs in reliance upon and in conformity with written information furnished expressly for use in connection
with such registration or prospectus by or on behalf of such Holder, underwriter or controlling person; or 

  

	 	(iii)	in the case of a sale effected directly by a Holder of Registrable Securities (including a sale of such Registrable Securities through any underwriter retained by such Holder
engaging in a distribution solely on behalf of such Holder), where: 

  

	 	(A)	such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary prospectus and corrected in a final or amended prospectus; and

  

	 	(B)	such Holder failed to deliver a copy of the final or amended prospectus at or prior to the confirmation of the sale of the Registrable Securities to the person asserting any such
loss, claim, damage or liability in any case in which such delivery is required by the 1933 Act or applicable Canadian Securities Laws. 

  
 10.2 Indemnification by Holder 
  

	(a)	Each Holder that includes any Registrable Securities in any registration statement or prospectus will indemnify and hold harmless the Company, each of its directors and each of its
officers and directors who have signed the registration statement or prospectus, each person, if any, who controls the Company within the meaning of the 1933 Act or applicable Canadian Securities Laws, each employee, agent, and any underwriter for
the Company, and any other Holder or other shareholder selling securities in such registration statement or prospectus or any of its directors, officers, partners, members, agents or employees or any person who controls such Holder or such other
shareholder or such underwriter within the meaning of the 1933 Act or the 1934 Act or applicable Canadian Securities Laws, against any losses, claims, damages, or liabilities (joint or several) to which the Company or any such director, officer,
controlling person, employee, agent, or underwriter or controlling person, or other such Holder, shareholder, director, officer or controlling person may become subject, under the 1933 Act, the 1934 Act, Canadian Securities Laws or any other U.S. or
Canadian federal, state or provincial law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case only to the extent that such Violation occurs in reliance
upon and in conformity with written information furnished by or on behalf of such Holder expressly for use in connection with such registration or prospectus. 

  

	(b)	Each such Holder will reimburse any legal or other expenses reasonably incurred by the Company or any such director, officer, controlling person, agent or underwriter or controlling

  

 16 

 person, other Holder or other shareholder, officer, director, partner, member, agent, employee, or
controlling person in connection with investigating or defending any such loss, claim, damage, liability or action. 
  

	(c)	The liability of any Holder under this indemnity is limited to the amount of net proceeds (after deduction of all underwriters’ discounts and commissions paid by such Holder in
connection with the registration or prospectus in question) received by such Holder in the offering giving rise to the Violation. 

  

	(d)	A Holder is not liable under the indemnity contained in this section 10.2: 

  

	 	(i)	in respect of amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder (which consent will
not be unreasonably withheld or delayed); 

  

	 	(ii)	in the case of a sale effected directly by the Company of its Common Shares (including a sale of such Common Shares through any underwriter retained by the Company to engage in a
distribution solely on behalf of the Company), where: 

  

	 	(A)	such untrue statement or alleged untrue statement or omission or alleged omission was contained in a preliminary prospectus and corrected in a final or amended prospectus; and

  

	 	(B)	the Company failed to deliver a copy of the final or amended prospectus at or prior to the confirmation of the sale of the securities to the person asserting any such loss, claim,
damage or liability in any case in which such delivery is required by the 1933 Act or applicable Canadian Securities Laws. 

  

	(e)	The obligations of the Holders under this indemnity are several, not joint or joint and several. 

  
 10.3 Indemnification Procedure 
  

	(a)	Promptly after receipt by an indemnified party under this Article 10 of notice of the commencement of any action (including any governmental action), such indemnified party will, if
a claim in respect thereof is to be made against any indemnifying party under this Article 10, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party may participate in, and, to the extent the
indemnifying party so desires, jointly with any other indemnifying party similarly noticed, assume and control the defense thereof with counsel mutually satisfactory to the parties. 

  

	(b)	An indemnified party may retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained
by the indemnifying party would be inappropriate due to actual or potential differing interests, as reasonably determined by either party, between such indemnified party and any other party represented by such counsel in such proceeding; provided
however that the indemnifying party shall only be able to pay the fees and disbursements of one firm of separate counsel in any one jurisdiction for all indemnified parties. 

  

	(c)	The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action,
will relieve such indemnifying party of any liability to the indemnified party under this Article 10 to the 

  

 17 

 extent of such prejudice, but the omission to deliver written notice to the indemnifying party does not
relieve it of any liability that it may have to any indemnified party otherwise than under this Article 10. 
  

	 	(i)	No indemnifying party shall, without the consent of an indemnified party, effect any settlement of any pending or threatened proceeding in respect of which such indemnified party is
a party and indemnity has been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability for claims that are the subject matter of such proceeding.

  
 10.4 Contribution 
  
 If the indemnification provided for in this Article 10 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, will contribute to the
amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party
on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified
party is determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party
and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission; provided that the liability of any Holder hereunder is limited to the amount of net proceeds (after deduction
of all underwriters’ discounts and commissions paid by such Holder in connection with the registration or prospectus in question) received by the Holder in the applicable offering. 
  
 The parties hereto agree that it would not be just and equitable if contribution pursuant to this section 10.4 were determined by pro rata
allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
  
 10.5 Survival of Indemnities 
  
 The obligations of the Company and the Holders under this Article 10 shall survive the exercise, if any, of the Warrants, the conversion, if any, of the Notes, and the
completion of any offering of Registrable Securities in a registration statement or prospectus whether under this Agreement or otherwise. 
  
 ARTICLE 11 
 ASSIGNMENT OF
REGISTRATION RIGHTS 
  
 11.1 Assignment 
  
 The rights of the Holders under this Agreement may be assigned by any Holder to a Permitted
Transferee, and by such Permitted Transferee to a subsequent Permitted Transferee upon notice to the Company and in accordance with this Agreement. 
  

 18 

 11.2 Conditions to Transfer 
  
 Any transferee to whom rights under this Agreement are transferred: 
  

	(a)	as a condition to such transfer, will promptly deliver to the Company a written instrument by which such transferee agrees to be bound by the obligations imposed upon Holders under
this Agreement to the same extent as if such transferee were a Holder under this Agreement; and 

  

	(b)	is deemed to be a Holder under this Agreement. 

  
 ARTICLE 12 
 MISCELLANEOUS PROVISIONS

  
 12.1 Limitations on Subsequent Registration Rights 
  
 From and after the date of this Agreement, the Company will not, without the prior written
consent of the Holders of a majority in interest of the Registrable Securities then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company relating to registration rights unless such agreement
includes: 
  

	(a)	to the extent such agreement would allow such holder or prospective holder to include such securities in any prospectus or registration statement filed under Articles 2, 3, 4, 5 or
6 of this Agreement, a provision that such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of its securities will not reduce the amount of the Registrable Securities of the
Holders that would otherwise be included; 

  

	(b)	no provision that would allow such holder or prospective holder to make a demand registration or qualification that could result in such registration statement being declared
effective, or a receipt being issued for such prospectus, prior to the date that is 180 days following a U.S. IPO or a Canadian Public Offering; 

  

	(c)	a provision that permits the Holders to include in such registration and in any underwriting involved therewith, Registrable Securities pro rata with the sellers of securities in
such registration based on the number of equivalent shares of Common Shares held by each person (where an equivalent share is either a Common Share held directly or the number of Common Shares receivable upon conversion or exercise of securities
held directly); and 

  

	(d)	a provision requiring that any such registration of securities is subject to the underwriting requirements described in Article 9 of this Agreement. 

  
 12.2 Procedures for Amending or Supplementing Registration Statements 
  
 Whenever a registration statement or prospectus covering Registrable Securities pursuant to
any section of this Agreement is effective and the Company determines that, based upon advice of counsel, such registration statement requires amendment or supplementing, including without limitation upon discovery that, or upon the happening of any
event as a result of which, the registration statement or prospectus contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, the Company will notify all Holders of such fact and will as expeditiously as possible cause such registration statement or prospectus to be amended or supplemented, as the case may be, as

  

 19 

 required pursuant to section 7.2(a) and will notify all Holders when such amendment or supplement has been filed and, as
to any such amendment, declared effective. Upon receipt of the former notice, Holders will not sell any Registrable Securities until such latter notice is provided and such Holders have received copies of such supplemented or amended registration
statement or prospectus. If so directed by the Company, Holders shall deliver to the Company (at the Company’s expense) all copies other than permanent file copies then in such Holders’ possession, of the registration statement or
prospectus covering such Registrable Securities which is current at the time of receipt of such former notice. If the board of directors of the Company determines in its reasonable discretion that it would not be in the best interests of the Company
to so amend or supplement the registration statement or prospectus at such time, the Company is entitled to delay the filing of such amendment or supplement for a period not to exceed 60 days. The Effectiveness Period shall be extended for any
period that the Holders are unable to sell Registrable Securities in accordance with this section. 
  
 12.3 Termination of Registration Rights 
  
 The registration and qualification obligations of the Company pursuant to this Agreement terminate, with respect to any Holder, on the earlier of: 
  

	(a)	the date that such Holder (together with its Affiliates, partners, members and former partners and former members) is able to sell under Rule 144(k) all of the remaining Registrable
Securities issued or issuable to such Holder (without a prospectus or resort to a prospectus exemption under applicable Canadian Securities Laws); 

  

	(b)	if such Holder is a resident of Canada and subject to applicable Canadian Securities Laws, the date on which such Holder is able to freely sell (subject to any contractual
commitments to the contrary) all of such Holder’s Common Shares without a prospectus or resort to a prospectus exemption under the 1933 Act or applicable Canadian Securities Laws (other than an exemption relating to a control person
distribution); 

  

	(c)	the date on which counsel to the Company provides the Holder with an opinion, in a form reasonably acceptable to the Holder, that a sale of the Registrable Securities of the Holder
would not be a distribution under the 1933 Act (and such Holder is able to freely sell all of such Holder’s Common Shares on a Recognized Stock Exchange without a prospectus or resort to a prospectus exemption under applicable Canadian
Securities Laws); or 

  

	(d)	the date on which such Holder no longer holds Registrable Securities. 

  
 12.4 Merger, Etc. 
  
 Upon any merger, amalgamation, consolidation, arrangement or other reorganization involving the Company in which Holders receive, in exchange for their Registrable Securities, securities of any entity that are not
freely tradable, the rights of the Holders under this Agreement remain in effect except that such rights relate to the securities received by the Holders upon such exchange. 
  

 20 

 ARTICLE 13 
 LOCK-UP AGREEMENT 
  
 13.1 Lock-up
Agreement 
  
 To the extent (i) requested (A) by the Company or the
Initiating Holders, as the case may be, in the case of a non-underwritten public offering and (B) by the lead underwriter(s) or the Company, as the case may be, in the case of an underwritten public offering, and (ii) all of the Company’s
officers, directors and holders in excess of one percent (1%) of its outstanding share capital executed agreements the same in all material respects to those referred to in this section 13.1, each Holder of Registrable Securities agrees (x) not to
effect any public sale or distribution of any Registrable Securities or of any securities convertible into or exchangeable or exercisable for such Registrable Securities, including a sale pursuant to Rule 144 under the 1933 Act, and (y) not to make
any request for a demand registration or qualification pursuant to section 2.1 or 4.1 under this Agreement during the 180-day period (in the case of a US IPO) or the 90-day period (in the case of all other offerings) or such shorter period, if any,
mutually agreed upon by such Holder and the requesting party beginning on the effective date of such registration statement (except as part of such registration). No Holder of Registrable Securities subject to this section 13.1 shall be released
from any obligation under any agreement, arrangement or understanding entered into pursuant to this section 13.1 unless all other Holders of Registrable Securities subject to the same obligations are also released. 
  
 Article 14 
 GENERAL 
  
 14.1
Notices 
  
 All notices, requests, consents and demands must be in writing
and must be personally delivered (effective upon receipt), faxed (effective upon receipt of the fax in complete, readable form), or sent via a reputable overnight courier service (effective the following business day), 
  

	(a)	to the Company at: 

  
 ADHEREX TECHNOLOGIES INC. 
 600 Peter Morand Crescent 
 Ottawa, ON K1G 5Z3 
 Facsimile:         (613) 738-9060 
 Attention:        General Counsel 
  

	(b)	to the Investor at: 

  
 HBM BIOVENTURES (CAYMAN) LTD. 
 Eucalyptus Building, Crewe Road 
 Grand
Cayman, Cayman Islands 
 Facsimile:         (345) 946-8003 
  
 or, in any case, as notified in writing to the other parties to this Agreement. 

 

 21 

 14.2 Entire Agreement 
  
 This Agreement, the Subscription Agreement and the documents contemplated in the Subscription Agreement constitute the entire understanding of the parties with respect to
the subject matter of this Agreement and thereof and supersede any and all prior understandings and agreements, whether written or oral, with respect to such subject matter. 
  
 14.3 Amendments, Waivers and Consents 
  
 Modifications or amendments to this Agreement may be made, and compliance with any covenant or provision of this Agreement may be omitted or waived, if the Company agrees
thereto and the Company: 
  

	(a)	obtains the consent in writing from persons holding or having the right to acquire in the aggregate two-thirds in interest of the Registrable Securities then outstanding; and

  

	(b)	in each such case, deliver copies of such consent in writing to any Holders who did not execute the consent, 

  
 but only if no Holder, without its consent, is adversely affected by any such modification,
amendment or waiver in any manner in which the other Holders are not likewise adversely affected. 
  
 14.4 Binding Effect; Assignment 
  
 This
Agreement is binding upon and enures to the benefit of the personal representatives, successors and permitted assigns of the respective parties to this Agreement. The Company may not assign its obligations under this Agreement or any interest in
this Agreement without obtaining the prior written consent (obtained in accordance with section 14.3) of the Holders holding or having the right to acquire in the aggregate two-thirds of the Registrable Securities then outstanding. 
  
 14.5 General 
  
 The headings contained in this Agreement are for reference purposes only and do not affect the meaning or interpretation of this Agreement.
In this Agreement the singular includes the plural, the plural includes the singular, and the masculine gender includes the neuter, masculine and feminine genders. This Agreement is governed by and is to be construed in accordance with the laws of
Ontario and the laws of Canada applicable in Ontario. 
  
 14.6 Severability

  
 If any provision of this Agreement is found by any court of competent
jurisdiction to be invalid or unenforceable, the parties hereby waive such provision to the extent that it is found to be invalid or unenforceable. Such provision may, to the maximum extent allowable by law, be modified by such court so that it
becomes enforceable, and, as modified, will be enforced as any other provision of this Agreement, all the other provisions of this Agreement continuing in full force and effect. 
  
 14.7 Counterparts 
  
 This Agreement may be signed and delivered in separate counterparts by fax or otherwise, each of which when so signed and delivered is deemed an original, and all such
counterparts together constitute one instrument. 
  

 22 

 14.8 Specific Performance 
  
 The Company recognizes that the rights of the Holders under this Agreement are unique, and, accordingly, the Holders will, in addition to
such other remedies available to them at law or in equity, have the right to enforce their rights under this Agreement by actions for injunctive relief and specific performance to the extent permitted by law. This Agreement is not intended to limit
or abridge any rights of the Holders that exist apart from this Agreement. 
  
 [THE NEXT PAGE IS THE SIGNING PAGE.] 
  

 23 

 IN WITNESS WHEREOF, the parties have duly executed this Agreement. 
  

			
	 HBM BIOVENTURES (CAYMAN) LTD.
  

	 Per:
	 	 /s/ John Arnold

	  
 ADHEREX TECHNOLOGIES INC.
  

	 Per:
	 	 /s/ D. Scott Murray

  

 24

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