Document:

Offer to Lease

 Exhibit 10.11 

OFFER TO LEASE 
 February 15, 2010

 Bentall Limited Partnership 
 Suite 90,10451 Shellbridge Way

 Richmond, BC V6X 2W8 
 Attention: Tim Evans 

Dear Sirs: 
 We, AQUINOX PHARMACEUTICALS, INC.
(hereinafter referred to as the “Tenant”), hereby offer to lease certain premises (the “Demised Premises”) located at Part Building 400, 5600 Parkwood Way, Richmond, BC from Sun Life Assurance Company of Canada the
owners thereof, (hereinafter referred to as the “Landlord’), on the following terns and conditions: 
  

	1.	RENTABLE AREA 

 An area of approximately Fifteen
Thousand Seven Hundred Twenty-Nine (15,729) square feet of Rentable Area as shown on the plan attached hereto as “Schedule A”. 
  

	2.	TERM 

 The Term shall be for five (5) years measured from the
Commencement Date. The Commencement Date shall be September 1, 2010. No construction or demolition work shall commence until proof of Tenant’s insurance has been provided to the Landlord. 

 

	3.	BASIC RENT 

 Basic Rent per square foot of Rentable Area
per annum shall be: 
 Years 1 to 2 at $9.75; 

Year 3 at $10.50; and 
 Years 4 to
5 at $11.25. 
 Basic Rent shall be payable in accordance with the Lease. The Tenant shall be responsible for the payment of GST in addition
to Basic Rent. The Landlord shall have the right to measure or survey the Demised Premises. Should the Rentable Area be inconsistent with the estimated Rentable Area set out in Clause 1 hereof, Basic Rent shall be adjusted accordingly. 

	4.	PROPERTY TAXES AND OPERATING EXPENSES 

In addition to Basic Rent, the Tenant shall be responsible for the proportionate share of annual Property Taxes and Operating Expenses.
Estimated figures for 2010 total $4.07 per square foot of Rentable Area per annum. 
 Charges which are estimated shall be subject to
adjustment when actual amounts are available. 
 The Tenant shall be responsible for payment of GST in addition to the above. 

 

	5.	CONDITION OF DEMISED PREMISES 

The Tenant agrees to take the Demised Promises in “as is where is” condition excepting only the following which the Landlord will
provide and install at the Landlord’s expense to its base building standard by August 31, 2010 on a reasonable commercial efforts basis: 
  

	 	a)	As per the Streamline quote (dated November 30, 2009) attached as Schedule “C”. All mechanical, electrical, HVAC and plumbing systems and hot water supplies shall be properly separated from the
adjacent tenancies as part of the demising work undertaken by the Landlord; and 

  

	 	b)	All base building mechanical, electrical, HVAC and plumbing systems shall be in proper working order at the Commencement Date of the Lease. 

 

	 	c)	See Schedule “D”. 

 The Landlord makes no representation or warranty with respect to
the usability of any existing phone lines and/or data cables within the Demised Premises. The Tenant, at its expense, shall be responsible for all modifications required to reuse such phone lines and/or data cables. 

 

	6.	PERMITTED USE 

 Research laboratory with related business
office. 
  

	7.	TENANT IMPROVEMENTS 

 The Tenant shall be responsible for
its own improvements to the Demised Premises. Should the Tenant require additional utilities, heating, ventilation or air conditioning (“HVAC”) because of the nature of its business, in excess of those already provided to the Demised
Premises, then the Tenant shall be responsible for the cost of installing and/or supplying such additional utilities, subject to prior approval from the Landlord. 
  

	8.	OTHER TERMS AND CONDITIONS 

Other terms and conditions shall be applicable as contained in the Landlord’s standard form of Lease, a copy of which is attached as
Schedule “B” and forms an integral part of this Offer to Lease, except where the standard lease terms are contrary to the terms and conditions of this Offer to Lease, in which case the contrary provisions contained herein supersede the
standard lease. 
 The standard lease shall be modified by the Landlord to incorporate the terms of this Offer to Lease and any amendments to
the standard form of Lease agreed to by both the Tenant and the Landlord prior to the removal of the Tenant’s and Landlord’s Conditions 

 
contained herein, provided that no such amendments shall alter the financial terms agreed to herein and shall be delivered to the Tenant for execution within a reasonable period of time after
acceptance of this Offer to Lease and satisfaction of any subject conditions herein contained. The Tenant shall execute and return the Lease to the Landlord within five (5) business days upon receipt thereof. In no event shall the Tenant take
occupancy and commence business operations in the Demised Premises, without the Lease being fully executed. 
 If the Tenant takes occupancy
of the Demised Premises without executing the Lease, the Tenant shall be deemed to have executed the same and shall be bound to the provisions thereof and shall be deemed to hold the Demised Premises in accordance therewith, provided however, the
Tenant shall still be obligated to execute and deliver the Lease to the Landlord forthwith upon demand. Notwithstanding that the Tenant shall be deemed to hold the Demised Premises in accordance with the provisions of the Lease, the Tenant’s
failure to actually execute and return the Lease to the Landlord will be a default under the terms of the Lease. 
  

	9.	PRE-AUTHORIZED PAYMENT PLAN 

The Tenant authorizes the Landlord to withdraw monthly Rent payments from the Tenant’s account by way of direct withdrawals, as may be
arranged from time to time between financial institutions administering the Tenant’s and the Landlord’s accounts. 
 The Tenant
further agrees to execute and provide whatever further documentation, account information, cancelled cheques or otherwise, which are reasonably requested by the Landlord in order to assist the Landlord in the administration of a pre-authorized
payment procedure for monies owing or accruing due as Rent under the Lease. 
  

	10.	FINANCIAL INFORMATION 

 This Offer to Lease is subject to
the Tenant providing necessary financial information about the Tenant in order for the Landlord to conduct the Landlord’s standard credit check. Such information to be provided within three (3) days of the Offer to Lease being accepted by
the Landlord, failing which the Landlord may, in its sole discretion terminate this Offer to Lease and any legal obligations arising from the provisional acceptance hereof by the Landlord. If the Tenant, in the Landlord’s sole discretion,
satisfactorily passes the Landlord’s standard credit check, this subject condition shall be removed by the Landlord in writing within seven (7) days of the Landlord receiving such financial information failing which this Offer to lease and
any obligations arising therefrom shall forthwith be null and void. The subject clause is for the sole benefit of the Landlord. 
  

	11.	DEPOSIT 

 A deposit in the amount of two (2) months gross Rent
plus GST (the “Deposit”) is due within two business days of unconditional acceptance of this Offer to Lease, and shall be held by Bentall Limited Partnership as managing agent on behalf of the Landlord and the Deposit shall be retained
by the Landlord without interest and shall be applied firstly to the first month’s gross Rent payable under the Lease (including G.S.T.), with the balance to be held as security for the due and proper performance by the Tenant of all of the
terms, covenants and conditions of the Lease, including the payment of all Rent due thereunder. Such of the Deposit as then remains outstanding and unapplied by the Landlord shall be repaid to the Tenant within ninety
(90) sixty (60) days of the expiration of the Term of the Lease. Notwithstanding the foregoing, if the Tenant fails to execute and return the Lease to the Landlord in the form attached in accordance with Clause 8, the
Landlord may, at its sole option, terminate this Offer to Lease and/or the Lease, if applicable, whereupon the Deposit shall be retained by the Landlord as liquidated damages on account of the Tenant’s default and not as a penalty. 

 If the Landlord does not accept this Offer to Lease, the Deposit will be returned to the Tenant
without Interest. If the Tenant fails to deliver the Deposit described herein to the Landlord, the Landlord at its option may terminate this Offer to Lease and the Landlord’s obligations arising from the provisional acceptance hereof by the
Landlord, whereupon the same shall be null and void. 
  

	12.	TENANT’S CONDITIONS 

 This Offer to
Lease is subject to the following conditions precedent, all of which are for the sole benefit of the Tenant: 
  

	 	a)	The approval of the Tenant’s board of directors; 

  

	 	b)	Review and approval of the Lease; 

  

	 	c)	The Tenant finalizing a round of financing in an amount not less than Fourteen Million Five Hundred Thousand dollars ($14,500,000.00) by February 15, 2010 March 9, 2010;

  

	 	d)	The Tenant approving the scope of any work required to the Demised Premises to meet any applicable building, fire safety or handicap accessibility codes; and 

 

	 	e)	The Tenant approving the scope of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy; 

  

	 	f)	The Tenant’s review and approval of the costs associated with the acquisition and restoration (if any) of the existing Tenant’s Business and Trade Fixtures. 

(the “Tenant’s Conditions”). The Tenant’s Conditions shall be removed or waived by notice in writing to be given by the
Tenant to the Landlord, within fifteen (15) business days of the Landlord’s acceptance hereof, failing which this Offer to Lease shall be null and void and of no force or effect and the Deposit shall be forthwith returned to the Tenant.

  

	13.	LANDLORD’S CONDITION 

 This Offer to
Lease is subject to the following condition precedent, which is for the sole benefit of the Landlord: 
  

	 	a)	The Landlord’s senior executive’s final approval; 

  

	 	b)	The Landlord reviewing and approving the cost of any work required to the Demised Premises to meet any applicable building, fire safety or handicap accessibility codes; and 

 

	 	c)	The Landlord reviewing and approving the cost of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy; 

(the “Landlord’s Condition”). The Landlord’s Condition shall be removed or waived by notice in writing to be given by the
Landlord to the Tenant within fifteen (15) business days of the Landlord’s acceptance hereof, failing which this Offer for Lease shall be null and void and of no force or effect and the Deposit shall be forthwith returned to the Tenant.

	14.	PARKING 

 Throughout the Term, the Landlord shall make available for the
Tenant, to use at its option, one (1) random parking stall per 500 Rentable square feet leased in the designated parking lot at the prevailing monthly rental rate, which is currently $NII per stall per month plus applicable taxes, which
rental rate may be adjusted by the Landlord from time to time. If available, additional parking stalls shall be provided to the Tenant on a month to month recallable basis at the prevailing monthly rental rate. Notwithstanding the aforementioned the
parking stalls shall be free of charge during the Initial Term of the Lease. 
  

	15.	IMPROVEMENT ALLOWANCE 

 Provided the Tenant is not in
default, the Landlord shall provide the Tenant with an improvement allowance which shall be solely applied to fixturing and modifying the Demised Premises in the amount of $4.00 per square foot of rentable area of the Demised Premises plus GST (the
“Allowance”). Such Allowance to be payable upon fulfillment of all of the following conditions: 
  

	 	a)	The Tenant has completed all of the work required of it pursuant to the Crestwood Commerce Centre Tenant Guidelines (including but not limited to HVAC balancing and delivery of “as-built” drawings);

  

	 	b)	provision of satisfactory evidence of payment of all of the Tenant’s contractors in full by the Tenant including but not limited to a statutory declaration that all fees and payments resulting from the modification
and fixturing of the Demised Premises have been made; 

  

	 	c)	the Lease is fully executed; and 

  

	 	d)	the Tenant has fully occupied the Demised Premises and commenced business operations therein. 

All modifications to the Demised Premises are to the Tenant’s account and are subject to the Landlord’s prior written approval. It is
understood that the Landlord’s contractor shall be utilized for all changes to the mechanical, electrical and life safety systems. All design and consultants’ fees and permits are to the Tenant’s account. 

 

	16.	FIXTURING PERIOD 

 So long as the Lease has been fully
executed and the Tenant has provided the Landlord with proof of the Tenant’s insurance, the Landlord shall provide the Tenant with possession of the Demised Premises for a period of two (2) months commencing July 1, 2010
for the purposes of fixturing, modifying, preparing and occupying the Demised Premises for the Tenant’s day-to-day business. All terms of the Lease shall be applicable from the date the Tenant takes possession of the Demised Premises save for
the payment of Basic Rent, Operating Expenses and Property Taxes which shall be payable as of September 1, 2010. 

	17.	FREE BASIC RENT 

 Subject to the Tenant
being in occupancy and not in default under the Lease, the Landlord shall provide the Tenant with two (2) months of free Basic Rent. The free Basic Rent shall be applied by the Landlord against the payment of Basic Rent accruing due
during the first and second (1st and 2nd) months of the Term. 

For greater certainty, the Tenant acknowledges and agrees that notwithstanding the period of free Basic Rent set out above, the Tenant shall
pay its share of the Operating Expenses and Property Taxes and other charges provided for in the Lease in the manner set out in the Lease during the entire Term. 
  

	18.	SIGNAGE 

 The Tenant shall be permitted exterior base building signage.
The exterior signage shall be subject to the Landlord’s approval and meet all applicable local, municipal and /or federal rules and regulations having jurisdiction. The signage shall be installed at the Tenant’s sole cost and maintained to
a first class standard and the Tenant shall remove and make good such signage upon the termination of the Lease. 
  

	19.	HVAC SYSTEMS 

 The Landlord will ensure, at the Landlord’s sole cost,
that all existing HVAC systems serving the Demised Premises will be in proper working order at the Commencement Date of the Lease. 
 The
maintenance of the existing HVAC systems after the Commencement Date will be undertaken by the Landlord and charged back directly to the Tenant through the Operating Expenses for the Demised Premises. 

It is understood by the Landlord and Tenant that it is the Tenant’s sole responsibility to purchase any non-base building HVAC systems
from the existing tenant (if required) at the Tenant’s sole cost prior to the expiry of the existing tenant’s lease. 
  

	20.	OPTION TO EXTEND LEASE 

 The
Tenant, provided it is Aquinox Pharmaceuticals Inc. and is itself in occupation of the whole of the Demised Premises and provided it has not been in material default during the Term, shall have one option to extend the Term of the Lease for a
further period of five (5) years (the “Extended Term”), such option to be exercised upon twelve (12) months’ written notice to the Landlord, prior to the expiry of the Initial Term, not to be given sooner than
eighteen (18) months prior to expiry of the Initial Term. The Extended Term shall be on the same terms and conditions as the Initial Term except for Basic Rent, any free rent allowance, fixturing period, Tenant Improvement allowance or other
incentive or inducement and except for this option to extend. 
 The Basic Rent payable by the Tenant during the Extended Term shall be
negotiated and agreed upon between the parties prior to the commencement of the Extended Term based on the prevailing fair market Basic Rent at the commencement of the Extended Term for similarly improved premises of similar size, quality, use and
location in flex office/laboratory buildings of a similar size, quality and location in Richmond, BC. Failing such agreement, then within two (2) months prior to the commencement of the Extended Term, Basic Rent shall be
determined by arbitration under the provisions of the Commercial Arbitration Act of the Province of British Columbia and in accordance with this clause provided that the Basic Rent payable shall not in any case be less than that payable by the
Tenant during the last year of the Initial Term. The Tenant covenants and agrees to execute any document or instrument which the Landlord reasonably requires under this provision, including but not limited to the Landlord’s form of extension
and amending agreement prepared by the Landlord to give effect to the Extended Term. 

	21.	OVERHOLDING 

 The Tenant has no right to remain in possession of the
Premises after the end of the Term. If the Tenant remains in possession of the Premises after the end of the Term with the consent of the Landlord but without entering into a new lease or other agreement then, notwithstanding any statutory
provisions, legal presumption or reasonableness requirement to the contrary, there shall be no tacit renewal of this Lease or the Term and the Tenant shall be deemed to be occupying the Premises as a tenant from month to month (with either party
having the right to terminate such month to month tenancy at any time on 30 days’ notice, whether or not the date of termination is at the end of a rental period) at a monthly Basic Rent payable in advance on the first day of each month equal
to 150% the monthly amount of Basic Rent payable during the last month of the Term (or which would have been payable but for any discount or rent-free period applicable to such last month) and otherwise upon the same terms, covenants and conditions
as in this Lease insofar as these are applicable to a monthly tenancy and, for greater certainty, including liability for all Additional Rent. 
  

	22.	ADDITIONAL CONSIDERATION 

 If this Offer to Lease contains
one or more subject conditions in favor of either party hereto, then in respect of each such subject condition the party not receiving the benefit of such subject condition hereby acknowledges the receipt of $10.00 and other good and valuable
consideration to be retained by such party as consideration for keeping this Offer to Lease open for acceptance until the time for removal or waiver of such subject condition has expired. 

 

	23.	AGENCY DISCLOSURE 

 In accordance with the Rules
established by the Real Estate Council pursuant to the Real Estate Services Act of British Columbia, Bentall Limited Partnership (the “Landlord’s Agent”) disclosed that it is representing the Landlord in respect of this
transaction, and will receive remuneration from the Landlord for such representation. 
 Kevin Nelson of CB Richard Ellis Limited (the
“Tenant’s Agent”) discloses that it is representing the Tenant in respect of this transaction and will receive remuneration from the Landlord for such representation in accordance with the Agent’s agreement with the Landlord.

  

	24.	PRIVACY STATEMENT 

 The Tenant consents to the Landlord
collecting, using and disclosing the personal information in this Offer to Lease and the Lease or otherwise collected by or on behalf of the Landlord or its agents, affiliates, or service providers, for the purposes of: 

 

	 	a)	determining the suitability of the Tenant, both for the Term and any renewal or extension thereof; 

  

	 	b)	taking action for collection of Rent in the event of default by the Tenant; and 

  

	 	c)	facilitating the pre-authorized payment plan contained in this Offer to Lease and the Lease. 

 Consent under this Offer to Lease and the Lease includes consent to the disclosure by the
Landlord of such information to credit agencies, collection agencies and existing or potential lenders, investors and purchasers. 
 The
Tenant also consents to and confirms its authority and that it has all necessary consents to enable the collection, use, and disclosure, as provided in this privacy statement, of personal information about employees of the Tenant and other
individuals whose personal information is provided to or collected by or on behalf of the Landlord in connection with this Offer to Lease and the Lease. 

To the extent the Landlord uses a managing agent, consent under this Offer to Lease and the Lease includes consent for the managing agent to do
all such things on behalf of the Landlord. The Landlord’s current managing agent to Bentall Limited Partnership (“Bentall”). The Tenant also consents to the terms of Bentall’s Privacy Policy, a copy of which is available at
www.bentall.com, and to the collection, use and disclosure of personal information in accordance with such privacy policy. 
  

	25.	NO REPRESENTATIONS 

 There are no representations,
warranties or agreements made by the Landlord to the Tenant except as specifically set out in this Offer to Lease. 
  

	26.	NO ASSIGNMENT 

 The Tenant shall not assign its interest in
this Offer to Lease without the prior written consent of the Landlord, which consent may be withheld in the Landlord’s sole discretion. 
  

	27.	CAPITALIZED TERMS 

 Any capitalized terms used in this
Offer to Lease and not defined herein and/or in Appendix 1 attached hereto shall have the meaning set out in the Lease attached as Schedule “B” hereto. 
  

	28.	FACSIMILE EXECUTION 

 The parties agree that this Offer to
Lease may be executed by facsimile and the parties agree to be bound by the facsimile copies. 
  

	29.	ACCEPTANCE 

 This Offer to Lease is irrevocable and open for acceptance by
the Tenant for three (3) business days from the date offered by the Landlord as set out below after which time, if not accepted by the Tenant, it shall be null and void. 

 

	30.	NO OFFER 

 The Landlord shall not be deemed to have made an
offer to the Tenant by furnishing to the Tenant a copy of this Offer to Lease with particulars inserted and, notwithstanding that the Deposit may be received by the Landlord when this Offer to Lease is received by it for signature, no contractual or
other rights shall exist or be created between the Landlord and the Tenant until such time as all parties to this Offer to Lease have executed this Offer to Lease and copies thereof have been delivered to each party. If this Offer to Lease contains
subject conditions in favor of either party hereto, (a) no contractual or other rights shall exist or be created between the Landlord and the Tenant until such time as such subject conditions have been removed or waived save as

 
expressly set out herein, and (b) the Landlord may continue to consider and accept other offers for the Demised Premises (or any portion thereof) until such time as all such subject
conditions have been removed or waived. 
  

	31.	TIME OF ESSENCE 

 Time is of the essence of
this Offer to Lease and each part of it. 
 OFFERED by the Landlord, this 15th
26th day of February, 2010 at Vancouver, in the Province of British Columbia. 
  

					
	 SUN LIFE ASSURANCE COMPANY OF CANADA

by its duly authorized Agent
 BENTALL LIMITED
PARTNERSHIP
 By its General Partner, Bentall G.P. Ltd.
	    	
			
	PER:	 	 

	    	
		 	(AUTHORIZED SIGNATORY)	    	
			
	PER:	 	  
	    	
		 	(AUTHORIZED SIGNATORY)	    	

 ACCEPTED by the Tenant, this 19th 3rd day of February March, 2010 at Vancouver, in the Province of British Columbia. 
  

					
	AQUINOX PHARMACEUTICALS INC.	    	
			
	PER:	 	 

	    	
		 	(AUTHORIZED SIGNATORY)	    	 C/S

	  
 PER:
	 	  
	    
		 	(AUTHORIZED SIGNATORY)	    	

 APPENDIX 1 

DEFINITIONS 
 For greater certainty, for
the purposes of the Lease, the following terms used in this Offer to Lease shall have the meanings set out below. 
  

	 	a)	“Basic Rent” shall mean the fixed monthly payments due and payable under clause 3 of this Offer to Lease, whether referred to in the Lease as “Basic Rent”, “Minimum Rent” or otherwise;

  

	 	b)	“Demised Premises” shall mean the premises to be demised to the Tenant pursuant this Offer to Lease, whether referred to in the Lease as “Demised Premises”, “Leased Premises”,
“Premises” or otherwise: 

  

	 	c)	“Operating Expenses” shall mean the amounts payable by the Landlord and reimbursable by the Tenant under the Lease on account of the operation, maintenance, administration, management and repair of the Demised
Premises and the building in which the Demised Premises are situated, whether therein referred to as “Operating Expenses”, “Operating Costs”, “Common Costs” or otherwise; 

 

	 	d)	“Landlord” shall mean the Landlord herein defined, whether referred to in the Lease as “Landlord”, “Lessor” or otherwise; 

 

	 	e)	“Property Taxes” shall mean the amounts payable by the Landlord and reimbursable by the Tenant under the Lease on account of real property taxes, duties and assessments imposed against the lands and building
where the Demised Premises are situated, whether therein referred to as “Property Taxes”, “Municipal Taxes”, “Taxes” or otherwise; 

  

	 	f)	“Rent” shall mean all amounts payable by the Tenant pursuant to the provisions of this Offer to Lease or of the Lease; and 

 

	 	g)	“Tenant” shall mean the Tenant herein defined, whether referred to in the Lease as ‘“Tenant”, “Lessee” or otherwise. 

 SCHEDULE “A” 

 
 

 

 SCHEDULE “A” 

 
 

 

 SCHEDULE “B” 

LEASE 
 BETWEEN 

SUN LIFE ASSURANCE COMPANY OF CANADA 

(LANDLORD) 
 - AND -

 * 
 (TENANT)

  
  

Premises: 
 * 

 LEASE 

BETWEEN 
 SUN LIFE
ASSURANCE COMPANY OF CANADA 
 (LANDLORD) 

- AND - 
 AQUINOX
PHARMACEUTICALS INC. 
 (TENANT) 
  

 
 Premises:

 Part of Building 400, 5600 Parkwood Way 

Richmond, British Columbia 

 TABLE OF CONTENTS 

 

							
	ARTICLE 1 - BASIC TERMS	  	1
				
		 	1.1	 	Basic Terms	  	1
		
	ARTICLE 2 - SPECIAL PROVISIONS	  	1
				
		 	2.1	 	Privacy Statement	  	1
		
	ARTICLE 3 - DEFINITIONS AND INTERPRETATION	  	3
				
		 	3.1	 	Definitions	  	3
		 	3.2	 	Entire Agreement, Amendments, Waiver	  	7
		 	3.3	 	Acceptance and Application of Rent	  	7
		 	3.4	 	General Rules of Interpretation	  	7
		 	3.5	 	Successors	  	7
		
	ARTICLE 4 - GRANT AND TERM	  	7
				
		 	4.1	 	Term, Demise	  	7
		 	4.2	 	Delay in Delivery	  	8
		 	4.3	 	Acceptance	  	8
		 	4.4	 	Quiet Enjoyment	  	8
		
	ARTICLE 5 - RENT	  	8
				
		 	5.1	 	Basic	  	8
		 	5.2	 	Additional Rent	  	8
		 	5.3	 	Adjustment Due to Measurement	  	8
		 	5.4	 	Payment of Rent	  	8
		 	5.5	 	Payment of Additional Rent	  	9
		 	5.6	 	Rent Deposit	  	10
		 	5.7	 	Security Deposit	  	10
		 	5.8	 	Net	  	10
		
	ARTICLE 6 - OPERATING COSTS AND TAXES	  	10
				
		 	6.1	 	Property Taxes Payable by Landlord	  	10
		 	6.2	 	Property Taxes Payable by Tenant	  	10
		 	6.3	 	Business Taxes and Other Taxes of Tenant	  	11
		 	6.4	 	Assessment Appeals	  	11
		 	6.5	 	Operating	  	11
		 	6.6	 	Limitations on Operating Costs	  	12
		 	6.7	 	Adjustments of Operating Costs	  	13
		 	6.8	 	Reduction or Control of Operating Costs	  	13
		
	ARTICLE 7 - HVAC, UTILITIES AND OTHER LANDLORD SERVICES	  	13
				
		 	7.1	 	Heating	  	13
		 	7.2	 	Electricity and Other	  	13
		 	7.3	 	Special HVAC Services and Utilities and Excess Quantities	  	14
		 	7.4	 	Additional Services Provided by Landlord	  	14
		 	7.5	 	Telecommunications	  	14
		 	7.6	 	Signs and Premises Identification	  	14
		
	ARTICLE 8 - OPERATION, CONTROL AND MAINTENANCE BY LANDLORD	  	14
				
		 	8.1	 	Operation of the Building by Landlord	  	14
		 	8.2	 	Control of the Project by Landlord	  	14
		 	8.3	 	Name of Building	  	15
		 	8.4	 	Maintenance and Repair by Landlord	  	15
		 	8.5	 	Access by Landlord	  	15
		 	8.6	 	Relocation	  	15
		
	ARTICLE 9 - MAINTENANCE AND ALTERATIONS BY TENANT	  	16
				
		 	9.1	 	Maintenance and Repair by Tenant	  	16
		 	9.2	 	Alterations by Tenant	  	17
		 	9.3	 	Removal of Improvements and Fixtures	  	18
		 	9.4	 	Liens	  	18
		 	9.5	 	Notice by Tenant	  	18
		
	ARTICLE 10 - USE OF PREMISES	  	18
				
		 	10.1	 	Permitted Use	  	18
		 	10.2	 	Compliance with Laws	  	19
		 	10.3	 	Nuisance, Interference, Waste, Overloading	  	19
		 	10.4	 	Access	  	19
		 	10.5	 	Rail	  	19
		 	10.6	 	Rules and Regulations	  	19

							
	ARTICLE 11 - INSURANCE, LIABILITY AND INDEMNITY	  	20
				
		 	 11.1
	 	Tenant’s Insurance	  	20
		 	 11.2
	 	Form of Tenant Policies	  	20
		 	 11.3
	 	Certified Copies and Notice to Landlord	  	20
		 	 11.4
	 	Landlord’s Insurance	  	21
		 	 11.5
	 	Insurance Risks	  	21
		 	 11.6
	 	Release of Landlord	  	21
		 	 11.7
	 	Release of Tenant	  	22
		 	 11.8
	 	Indemnity by Tenant	  	22
		
	ARTICLE 12 - ASSIGNMENT, SUBLETTING AND OTHER TRANSFERS	  	22
				
		 	 12.1
	 	Transfers	  	22
		 	 12.2
	 	Tenant’s Notice, Landlord’s Right to Terminate	  	23
		 	 12.3
	 	Conditions of Transfer	  	23
		 	 12.4
	 	Corporate Records	  	24
		 	 12.5
	 	Permitted Transfers	  	24
		 	 12.6
	 	No Advertising	  	24
		 	 12.7
	 	Sales or Dispositions by Landlord	  	24
		
	ARTICLE 13 - LANDLORD FINANCING AND STATUS CERTIFICATES	  	24
				
		 	 13.1
	 	Subordination and Postponement	  	24
		 	 13.2
	 	Attornment	  	25
		 	 13.3
	 	Status Certificates	  	25
		 	 13.4
	 	Reliance	  	25
		
	ARTICLE 14 - DAMAGE, DESTRUCTION, DEMOLITION, EXPROPRIATION	  	25
				
		 	 14.1
	 	Damage to Premises	  	25
		 	 14.2
	 	Abatement	  	26
		 	 14.3
	 	Termination Rights	  	26
		 	 14.4
	 	Landlord’s Rights on Rebuilding	  	26
		 	 14.5
	 	Landlord’s Demolition Rights	  	26
		 	 14.6
	 	Expropriation	  	26
		
	ARTICLE 15 - DEFAULT AND REMEDIES	  	26
				
		 	 15.1
	 	Events of Default	  	26
		 	 15.2
	 	Remedies	  	27
		 	 15.3
	 	Distress	  	28
		 	 15.4
	 	Interest and Costs	  	28
		 	 15.5
	 	Remedies Cumulative	  	28
		
	ARTICLE 16 - MISCELLANEOUS	  	28
				
		 	 16.1
	 	Relationship of Parties	  	28
		 	 16.2
	 	Consent Not to be Unreasonably Withheld	  	28
		 	 16.3
	 	Overholding	  	28
		 	 16.4
	 	Registration	  	28
		 	 16.5
	 	Unavoidable Delay	  	29
		 	 16.6
	 	Decisions of Experts; Arbitration	  	29
		 	 16.7
	 	Notices	  	29
		 	 16.8
	 	Confidentiality	  	29
		 	 16.9
	 	Power, Capacity and Authority	  	29
		 	 16.10
	 	Liability of Landlord	  	29
			
		 	 SCHEDULE “A” BUILDING - SPECIFIC INFORMATION
	  	XXXI
		 	 SCHEDULE “B” SKETCH SHOWING PREMISES
	  	XXXII
		 	 SCHEDULE “C” RULES AND REGULATIONS
	  	XXXIV
		 	 SCHEDULE “D” INDEMNITY AGREEMENT
	  	XXXV
		 	 SCHEDULE “E” CONDITION OF PREMISES
	  	XXXVII
		 	 SCHEDULE “F” ENVIRONMENTAL MATTERS
	  	XL

 THIS LEASE, dated April 8, 2010, is made by the Landlord and the Tenant named in it who, in consideration of
the rents, covenants and agreements contained in this Lease, covenant and agree as follows: 
 ARTICLE 1 - BASIC TERMS 

 

	1.1	Basic Terms 

  

							
	(a)	  	(i)	 	Landlord:	  	SUN LIFE ASSURANCE COMPANY OF CANADA
				
		  	(ii)	 	Address of Landlord:	  	 c/o Bentall Limited Partnership
 Suite 1800-1055
Dunsmuir Street,
 P.O. Box 49001, Vancouver, B.C. V7X 1B1

				
	(b)	  	(i)	 	Tenant:	  	AQUINOX PHARMACEUT1CALS INC.
				
		  	(ii)	 	Address of Tenant:	  	 Part of Building 400, 5600 Parkwood Way

Richmond, British Columbia

				
	(c)	  	(i)	 	Indemnifier:	  	Not Applicable
				
		  	(ii)	 	Address of lndemnifier:	  	Not Applicable
				
		  	(iii)	 	Indemnity Provisions:	  	See Schedule “D”
			
	(d)	  	Project, if applicable	  	Crestwood Commerce Centre
			
	(e)	  	Building:	  	Building 400
			
	(f)	  	Premises:	  	Part of Building 400
			
	(g)	  	Rentable Area of Premises:	  	Approximately 15,729 square feet
				
	(h)	  	(i)	 	Term:	  	Five (5) years
				
		  	(ii)	 	Commencement Date:	  	September 1, 2010
				
		  	(iii)	 	Expiry Date:	  	August 31, 2015
			
	(i)	  	Fixturing Period	  	Commencing July 1, 2010, provided this
		  		 		  	Lease is fully executed and the Tenant has provided the Landlord with proof of insurance and ending August 31, 2010
			
	(j)	  	Basic Rent:	  	

  

													
	 Time Period
	 	Per Sq. Ft. of
Rentable Area of the
Premises/Year	 	 	Per Year	 	 	Per Month	 
	 September 1, 2010 to August 31, 2012
	 	$	9.75	  	 	$	153,357.75	  	 	$	12,779.81	  
	 September 1, 2012 to August 31, 2013
	 	$	10.50	  	 	$	165,154.50	  	 	$	13,762.88	  
	 September 1, 2013 to August 31, 2015
	 	$	11.25	  	 	$	176,951.25	  	 	$	14,745.94	  

  

							
				
	(k)	  	(i)	 	Rent Deposit referred to in section 5.6:	  	*
				
		  	(ii)	 	Security Deposit referred to in Section 5.7:	  	$42,778.68
			
	(l)	  	Permitted Use:	  	Research laboratory with related business offices

 ARTICLE 2 - SPECIAL PROVISIONS 

 

	2.1	Construction and Completion of the Premises 

 Schedule “E’ attached hereto sets out the
respective obligations of the Landlord and Tenant with respect to the initial construction and completion of the Premises for the Tenant’s day to day business prior to the Commencement Date. 

  
 1 

	2.2	Free Basic Rent 

 Notwithstanding anything to the contrary herein contained, but subject to the Tenant
being in occupancy and not in default, the Landlord shall provide the Tenant with two (2) months free Basic Rent. The free Basic Rent shall be applied by the Landlord against the payment of Basic Rent accruing due during the calendar months of
September 2010 and October 2010 of the Term and Sections 1.1(j) and 5.1 hereto shall be deemed to have been amended accordingly. For greater certainty, the Tenant acknowledges and agrees that notwithstanding the period of free Basic Rent set out
above it shall remain responsible for payments of all other amounts owing under this Lease. 
  

	2.3	Tenant Improvement Allowance 

 Provided the Tenant is not in default, the Landlord shall provide the
Tenant with an improvement allowance which shall be solely applied to fixturing and modifying the Premises in the amount of $4.00 per square foot of Rentable Area of the Premises plus Rental Taxes (the “Allowance”). Such Allowance to be
payable upon fulfillment of all of the following conditions: 
  

	(a)	the Tenant has completed all of the work required of it pursuant to Section 9.2 and the Crestwood Commerce Centre (including but not limited to HVAC balancing and delivery of “as built” drawings);

  

	(b)	provision of satisfactory evidence of payment of all of the Tenant’s contractors in full by the Tenant including but not limited to a statutory declaration that all fees and payments resulting from the
modification and fixturing of the Premises have been made; 

  

	(c)	the Lease is fully executed; and 

  

	(d)	the Tenant has fully occupied the Premises and commenced business operations therein. 

 All
modifications to the Premises are to the Tenant’s account and are subject to the Landlord’s prior written approval. It is understood that the Landlord’s contractor shall be utilized for all changes to the mechanical, electrical and
life safety systems. All design and consultants’ fees and permits are to the Tenant’s account. 
  

	2.4	Tenant’s Parking 

 Throughout the Term, the Landlord shall make available for the Tenant, to use
at its option, parking in the designated parking lot on the basis of one (1) random parking stall per 500 square feet of Rentable Area leased by the Tenant. Monthly rental for the said parking stalls shall be based on the prevailing monthly
rental rate, which is shall be free of charge during the initial Term. Access to any additional parking stalls shall be on an “as available, month to month” basis in the designated parking lot at the prevailing monthly rental rate, which
rental rate may be adjusted by the Landlord from time to time. During any renewal or extension of the Term, the monthly rental rate shall be based on the prevailing monthly rental rate per random parking stall per month plus applicable taxes, which
monthly rental rate may be adjusted by the Landlord from time to time. 
  

	2.5	Tenant’s Option to Extend Term 

 The Tenant, provided it is Aquinox Pharmaceuticals Inc. and is
itself in occupation of the whole of the Premises and provided it has not been in material default during the Term, shall have one option to extend the Term of the Lease for a further period of five (5) years (the “Extended Term”),
such option to be exercised upon twelve (12) months’ written notice to the Landlord, prior to the expiry of the initial Term, not to be given sooner than eighteen (18) months prior to expiry of the initial Term. The Extended Term
shall be on the same terms and conditions as the initial Term except for Basic Rent, any free rent allowance, fixturing period, Tenant improvement allowance or other incentive or inducement and except for this option to extend. 

The Basic Rent payable by the Tenant during the Extended Term shall be negotiated and agreed upon between the parties prior to the commencement of the
Extended Term based on the prevailing fair market Basic Rent at the commencement of the Extended Term for similarly improved premises of similar size, quality, use and location in office/laboratory buildings of a similar size, quality and location
in Richmond, British Columbia. Failing such agreement, then within two (2) months prior to the commencement of the Extended Term, Basic Rent shall be determined by arbitration under the provisions of the Commercial Arbitration
Act (British Columbia) and in accordance with this clause provided that the Basic Rent payable shall not in any case be less than that payable by the Tenant during the last year of the initial Term. The Tenant covenants and agrees to
execute any document or instrument which the Landlord reasonably requires under this provision, including but not limited to the Landlord’s form of extension and amending agreement prepared by the Landlord to give effect to the Extended Term.

  
 2 

	2.6	Privacy Statement 

 The Tenant consents to the Landlord collecting, using and disclosing the personal
information in this Lease or otherwise collected by or on behalf of the Landlord or its agents, affiliates, or service providers, for the purposes of: 
  

	(a)	determining the suitability of the Tenant, both for the Term and any renewal or extension thereof; 

  

	(b)	taking action for collection of Rent in the event of default by the Tenant; and 

  

	(c)	facilitating the pre-authorized payment plan pursuant to Section 5.4(d). 

 Consent under this
Lease includes consent to the disclosure by the Landlord of such information to credit agencies, collection agencies and existing or potential lenders, investors and purchasers. 

The Tenant also consents to and confirms its authority and that it has all necessary consents to enable the collection, use, and disclosure, as provided in
this privacy statement, of personal information about employees of the Tenant and other individuals whose personal information is provided to or collected by or on behalf of the Landlord in connection with this Lease. 

To the extent the Landlord uses a managing agent, consent under this Lease includes consent for the managing agent to do all such things on behalf of the
Landlord. The Landlord’s current managing agent is Bentall Limited Partnership (“Bentall”). The Tenant also consents to the terms of Bentall’s Privacy Policy, a copy of which is available at www.bentall.com and to the
collection, use and disclosure of personal information in accordance with such privacy policy. 
 ARTICLE 3 - DEFINITIONS AND
INTERPRETATION 
  

	3.1	Definitions 

  

	 	(a)	“Additional Rent” means all amounts in addition to Basic Rent payable by the Tenant to the Landlord or any other Person pursuant to this Lease, other than Rental Taxes (except as provided in
Section 15.l(a)). 

  

	 	(b)	“Alterations” has the meaning set out in Section 9.2. 

  

	 	(c)	“Applicable Laws” means all statutes, laws, by-laws, regulations, ordinances, orders and requirements of governmental or other public authorities having jurisdiction in force from time to time.

  

	 	(d)	“Arbitration” if that term is used in this Lease, has the meaning given to it in Section 16.6. 

  

	 	(e)	“Basic Rent” means the rent payable pursuant to Section 5.1. 

  

	 	(f)	“Building” means the Building Lands and the building and all other structures, improvements, facilities and appurtenances that have been or will be constructed on the Building Lands (above, at or below
grade), including the Building Systems and the Common Areas and Facilities, all as may be altered, expanded, reduced or reconstructed from time to time. 

  

	 	(g)	“Building Lands” means the lands described in Part 1 of Schedule “A” (or such portion thereof as may be designated by the Landlord from time to time), as altered, expanded or reduced from time
to time. 

  

	 	(h)	“Building Systems” means at any time: (i) all heating, ventilating and air-conditioning and other climate control systems and other systems, services, installations and facilities installed in or
servicing all or any part of the Building or Project including, without limitation, the following systems, services, installations and facilities: mechanical (including plumbing, sprinkler, drainage and sewage), electrical and other utilities,
lighting, sprinkler, life safety, computer (including environmental, security and lighting control), and ice and snow melting; (ii) all machinery, appliances, equipment, apparatus, components, computer software and appurtenances forming pat of
or used for or in connection with any of such systems, services, installations and facilities including, but not limited to, boilers, motors, generators, fans, pumps, pipes, conduits, ducts, valves, wiring, meters and controls, and the structures
and shafts housing and enclosing any of them; and (iii) all Landlord owned or controlled telecommunications facilities, installations and equipment. 

  

	 	(i)	“Business Day” means any day which is not a Saturday, Sunday or a day observed as a holiday under the Applicable Laws in the province in which the Building is situate. 

 

	 	(j)	“Business Taxes” means all taxes, rates, duties, levies, assessments, licence fees and other charges in respect of the use or occupancy of, or any business carried on by, tenants or other occupants of
the Project. 

  

	 	(k)	 “Capital Tax”, if applicable, means the amount from time to time reasonably allocated by the Landlord to the Project, of any tax or
taxes at any time payable under the legislation of a province or to any political subdivision within a province by the Landlord, based upon or computed by reference to the paid-up capital or surplus or value of real estate portfolio or place of
business of 

  
 3 

	 	
the Landlord as determined for the purposes of that tax, and for the purposes of this definition, the word “Landlord” includes, severally, each of the persons or firms that then
constitute the Landlord. 

  

	 	(l)	“Change of Control” means, in the case of any corporation or partnership, the transfer or issue by sale, assignment, subscription, transmission on death, mortgage, charge, security interest, operation
of law or otherwise, of any shares, voting rights or interest which would result in any change in the effective control of such corporation or partnership, unless such change occurs as a result of trading in the shares of a public corporation listed
on a recognized stock exchange in Canada or the United States. 

  

	 	(m)	“Commencement Date” means the date set out in or determined pursuant to Section l.l(h)(ii), subject to Section 42. 

 

	 	(n)	“Common Areas and Facilities” means those areas, facilities, improvements, installations and equipment in or around the Building or Project existing from time to time that are provided or designated
from time to time by the Landlord for use in common by the Landlord and/or more than one tenant of the Building or Project or their respective sublessees, agents, employees, customers, invitees or licensees, whether or not those areas are open to
the general public or to all tenants of the Building or Project including, without limitation, the Building Systems, outdoor landscaping and landscaped areas, electrical, telephone, meter, valve and mechanical rooms, parking facilities, driveways,
laneways and ramps and sidewalks, parks and other municipal facilities for which the Landlord directly or indirectly is subject to obligations in its capacity as owner of the Building or Project or an interest in it, all as may be altered, expanded,
reduced, reconstructed or relocated from time to time. 

  

	 	(o)	“Contaminant” means any solid, liquid, gas, offensive odour, heat, sound, vibration or radiation that results directly or indirectly from human activities that may cause an adverse environmental effect.

  

	 	(p)	“Default Rate” means the lesser of: (i) the Prime Rate plus five percent per annum; and (ii) the maximum rate permitted by Applicable Laws, calculated and compounded monthly not in advance.

  

	 	(q)	“Early Termination” has the meaning set out in Section 12.3. 

  

	 	(r)	“Environmental Claim” means any investigation, notice, violation, demand, activities, suit, injunction, order, consent decree, penalty, fine, lien, proceeding or claim arising, pursuant to, or in
connection with, an actual or alleged violation of any Environmental Laws or the presence or removal of any hazardous, dangerous, toxic or harmful substances brought or permitted on the Project by the Tenant. 

 

	 	(s)	“Environmental Laws” means all federal, provincial and local statutes, laws, ordinances, regulations and orders relating to environmental matters. 

 

	 	(t)	“Event of Default” has the meaning set out in Section 15.1. 

  

	 	(u)	“Expert” means any architect, designer, engineer, land surveyor, accountant or other professional consultant appointed by the Landlord who, in the opinion of the Landlord, is qualified to perform the
function for which he or she is retained. 

  

	 	(v)	“Expiry Date” means the date set out in or determined pursuant to Section 1.1(h)(iii), subject to Section 42. 

 

	 	(w)	“Fiscal Year” means the fiscal period(s) as designated by the Landlord from time to time. The Landlord may have different Fiscal Years for any one or more of the components of Additional Rent.

  

	 	(x)	“Fixturing Period” means the period, if any, specified in Section 1.1(i) provided to the Tenant to perform its Fixturing of the Premises and to carry on business. During any Fixturing Period
the Tenant shall be entitled to occupy the Premises in accordance with all terms of this Lease (including the Tenant’s obligations to pay for all utilities and services), but shall not be obligated to pay Basic Rent, the Tenants share of
Property Taxes or the Tenant’s share of Operating Costs. 

  

	 	(y)	“Indemnifier” means the Person, if any, identified in Section 1.1(c)(i), and if there is more than one such Person, it means each such Person. 

 

	 	(z)	“Lands” means the Building Lands, or, if applicable, the Project Lands. 

  

	 	(aa)	“Large Corporations Tax” means the amount from time to time reasonably allocated by the Landlord to the Project, of the tax known as the Large Corporations Tax, if applicable, and of any similar or
replacement tax or taxes at any time payable under the legislation of Canada based upon or computed by reference to the paid-up capital or surplus or value of real estate portfolio or place of business of the Landlord as determined for the purposes
of that tax, and for the purposes of this definition, the word “Landlord” includes, severally, each of the persons or firms that then constitute the Landlord. 

  
 4 

	 	(bb)	“Lease” means this lease, including all schedules, as it may be amended. 

  

	 	(cc)	“Lease Year” means: (i) in the case of the first Lease Year, the period beginning on the Commencement Date and ending on the last day of the 12th consecutive full month after the expiry of the
calendar month in which the Commencement Date occurs (except that if the Commencement Date occurs on the first day of a calendar month, the first Lease Year shall end on the day prior to the first anniversary of the Commencement Date) and;
(ii) in the case of each subsequent Lease Year, consecutive 12 month periods, provided that the final Lease Year shall end on the last day of the Term. 

  

	 	(dd)	“Leasehold Improvements” means all alterations, fixtures and improvements in or serving the Premises made from time to time by or on behalf of the Tenant or any prior occupant of the Premises including,
without limitation, mezzanines, internal stairways, doors, hardware, vaults, partitions (excluding moveable partitions), lighting fixtures, non-Building standard window coverings and wall-to-wall carpeting (excluding carpeting laid over a finished
floor and removable without damage to such floor), but excluding trade fixtures and furniture and equipment not of the nature of fixtures. 

  

	 	(ee)	“Measurement Standards” means the measurement standards set out in Schedule “A”. 

  

	 	(ff)	“Mortgage” means any mortgage, charge or security instrument (including a deed of trust or mortgage securing bonds) and all extensions, renewals, modifications, consolidations and replacements of any
such item which may now or hereafter affect the Project or any part of it. 

  

	 	(gg)	“Mortgagee” means the mortgagee, chargee or other secured party (including a trustee for bondholders), as the case may be, who from time to time holds a Mortgage. 

 

	 	(hh)	“Notice” has the meaning set out in Section 16.7. 

  

	 	(ii)	“Operating Costs” has the meaning set out in Section 6.5. 

  

	 	(jj)	“Permitted Transferee” means any entity which is an affiliate (as that term is deemed as of the date of this Lease in the Canada Business Corporations Act) of the original named Tenant, and only for so
long as it remains an affiliate of such original named Tenant. 

  

	 	(kk)	“Permitted Use” means the use set out in Section 1.1(l). 

  

	 	(ll)	“Person” means any individual, partnership, corporation, trust, trustee or other entity or any combination of them. 

 

	 	(mm)	“Premises” means that part of the Building identified in Section 1.l(f) and approximately shown cross-hatched on Schedule “B”, extending to: (i) the interior face of all
exterior walls, doors and windows; (ii) the interior face of all interior walls, doors and windows separating the Premises from Common Areas and Facilities or from adjoining leaseable premises; and (iii) the top surface of the structural
subfloor and the bottom surface of the structural ceiling. Any Building Systems located in the Premises do not form part of the Premises. 

  

	 	(nn)	“Prime Rate” means the annual rate of interest announced from time to time by the Canadian chartered bank from time to time chosen by the Landlord as the daily rate of interest used by such bank as a
reference rate in setting rates of interest for Canadian dollar commercial loans and commonly referred to by such bank as its Canadian “prime rate”. 

  

	 	(oo)	“Project”, if applicable, means the Project Lands and the buildings and all other structures, improvements, facilities and appurtenances that have been or will be constructed on the Project Lands
(above, at or below grade), including the Building Systems and the Common Areas and Facilities, all as may be altered, expanded, reduced or reconstructed from time to time; provided that if the Landlord determines Project is not applicable,
references in this Lease to Project shall be deemed to be references to Building. 

  

	 	(pp)	“Project Lands”, if applicable, means the lands described in Part 2 of Schedule “A” (or such portion thereof as may be designated by the Landlord from time to time), as altered, expanded or
reduced from time to time; provided that if Project Lands are not applicable, references in this Lease to Project Lands shall be deemed to be references to Building Lands. 

 

	 	(qq)	“Property Taxes” means the aggregate of all taxes, rates, duties, levies, fees, charges (including local improvement charges) and assessments whatsoever, imposed, assessed, levied, rated or charged
against or in respect of the Project (or any part of the Project) from time to time by any competent taxing or assessing authority, whether school, municipal, regional, provincial, federal, or otherwise, and any taxes or other amounts which are
imposed in lieu of, or in addition to, any of the foregoing whether or not in existence on the Commencement Date and whether of the foregoing character or not, but excluding taxes on the income or profits of the Landlord except to the extent that
they are levied in lieu of the foregoing. 

  
 5 

	 	(rr)	“Proportionate Share” means a fraction which has: (i) as its numerator, the Rentable Area of the Premises, and (ii) as its denominator, the Rentable Area of the Project. 

 

	 	(ss)	“Purchaser” has the meaning set out in Section 13.2. 

  

	 	(tt)	“Rent” means all Basic Rent and Additional Rent. 

  

	 	(uu)	“Rent Deposit” means the amount specified in Section 1.1(k)(i). 

  

	 	(vv)	“Rentable Area” means: (i) in the case of the Premises and any other premises included in the Project, the area of all floors of such premises; and (ii) in the case of the Project the
aggregate of the area of all premises in the Project that are rented, or designated or intended by the Landlord to be rented (whether actually rented or not), all determined in accordance with the Measurement Standards. The Rentable Area of the
Premises, the Project or any part thereof may be adjusted from time to time to reflect any alteration, expansion, reduction, recalculation or other change. 

  

	 	(ww)	“Rental Taxes” means any tax or duty imposed upon either the Landlord or the Tenant which is measured by or based in whole or in part directly upon the Rent payable under this Lease or in respect of the
rental or rental value of premises under this Lease whether existing at the date of this Lease or hereafter imposed by any governmental authority including, without limitation, goods and services tax, harmonized sales tax, value added tax, business
transfer tax, sales tax, federal sales tax, excise taxes or duties or any tax similar to the foregoing. 

  

	 	(xx)	“Required Conditions” means that: 

  

	 	(i)	the Tenant is the original named Tenant or a Permitted Transferee, has not undergone a Change of Control and is itself in occupation of and carrying on business from the whole of the Premises; and 

 

	 	(ii)	the Tenant has paid all Basic Rent and Additional Rent as and when due and has not been in persistent default and is not in material default under this Lease. 

 

	 	(yy)	“Restoration” has the meaning set out in Section 9.3. 

  

	 	(zz)	“Restoration Date” has the meaning set out in Section 9.3. 

  

	 	(aaa)	“Rules and Regulations” means the Rules and Regulations annexed hereto as Schedule “C” together with any amendments, deletions and additions made by the Landlord from time to time pursuant to
Section 10.4, all of which shall form part of this Lease. 

  

	 	(bbb)	“Security Deposit” means the amount specified in Section 1.1(k)(ii). 

  

	 	(ccc)	“Statement” has the meaning set out in Section 5.5(b). 

  

	 	(ddd)	“Structural Components” means those parts of the Project consisting of the footings and foundations, structural columns and beams, structural subfloors, and bearing walls. 

 

	 	(eee)	“Term” means the period specified in Section 1.1(h)(i). 

  

	 	(fft)	“Transfer” means all or any of the following, whether by conveyance, written agreement or otherwise: (i) an assignment of this Lease in whole or in part; (ii) a sublease of all or any part of
the Premises; (iii) the sharing or transfer of any right of use or occupancy of all or any part of the Premises; (iv) any mortgage, charge or encumbrance of this Lease or the Premises or any part of the Premises or other arrangement under
which either this Lease or the Premises become security for any indebtedness or other obligation; and (v) a Change of Control, and includes any transaction or occurrence whatsoever (including, but not limited to, expropriation, receivership
proceedings, seizure by legal process and transfer by operation of law), which has changed or might change the identity of the Person having use or occupancy of any part of the Premises. 

 

	 	(ggg)	“Transferee” means the Person to whom a Transfer is or is to be made. 

  

	 	(hbh)	“Transfer Application Fee” means such fee as the Landlord may in its sole discretion from time to time determine to be chargeable by it for considering whether to consent to a Transfer plus all costs
incurred including legal fees, credit checks and all disbursements in respect of a proposed Transfer. 

  

	 	(iii)	“TSP” has the meaning set out in Section 7.5. 

  

	 	(jjj)	“Unavoidable Delay” has the meaning set out in Section 16.5. 

  
 6 

	3.2	Entire Agreement, Amendments, Waiver 

 This Lease contains the entire agreement between the parties with
respect to the subject matter of this Lease and there are no other agreements, promises or understandings, oral or written, between the parties in respect of this subject matter. This Lease may be amended only by written agreement between the
Landlord and the Tenant. No electronic communications between the parties will have the effect of amending this Lease. No provisions of this Lease shall be deemed to have been waived by the Landlord or the Tenant unless such waiver is in writing
signed by the party. If the Landlord excuses or condones any default of any obligation under this Lease, no waiver of such obligation shall be implied in respect of any continuing or subsequent default. The Landlord’s receipt of Rent with
knowledge of a breach shall not be deemed a waiver of any breach. 
  

	3.3	Acceptance and Application of Rent 

 Any endorsement, statement, condition, direction or other
communication on or accompanying any Rent payment shall not be binding on the Landlord and the acceptance of any such payment shall be without prejudice to the Landlord’s right to recover the balance of Rent then owing or to pursue any other
remedy available to the Landlord. Any payment received by the Landlord may be applied towards amounts then outstanding under this Lease in such manner as the Landlord determines. 

 

	3.4	General Rules of Interpretation 

  

	 	(a)	Obligations as Covenants: Each obligation of the Landlord and the Tenant in this Lease shall be considered a covenant for all purposes. 

 

	 	(b)	Time: Time is of the essence of this Lease. 

  

	 	(c)	Number, Gender: The grammatical changes required to make the provisions of this Lease apply in the plural sense where the Tenant comprises more than one Person and to individuals (male or female), partnerships,
corporations, trusts or trustees will be assumed as though in each case fully expressed. 

  

	 	(d)	Liability of Tenant: If the Tenant consists of more than one Person, the covenants of the Tenant shall be joint and several covenants of each such Person. If the Tenant is a partnership, each Person who is presently a
partner of the partnership and each Person who becomes a member of any successor partnership shall be and continue to be bound jointly and severally for the performance of and shall be and continue to be subject to all of the terns, obligations and
conditions of this Lease, whether or not such Person ceases to be a member of such partnership or successor partnership and whether or not such partnership continues to exist. 

 

	 	(e)	Governing Law: This Lease shall be governed by and construed under the Applicable Laws of the jurisdiction in which the Building is located and the parties atom and submit to the jurisdiction of the courts of such
jurisdiction. 

  

	 	(f)	Headings: The headings of the Articles and Sections are included for convenience only, and shall have no effect upon the construction or interpretation of this Lease. 

 

	 	(g)	Landlord as Trustee: Any and all exculpatory provisions, releases and indemnities included in this Lease for the benefit of the Landlord are intended also to benefit the Mortgagees, any owner or lessor with an interest
in the Project prior to the Landlord, property managers of the Landlord, and the officers, directors, shareholders, employees, agents of each one of them and, for the purposes of such provisions, the Landlord is acting as agent or trustee on behalf
of and for the benefit of the persons mentioned above. 

  

	 	(h)	Severability: Should any provision of this Lease be or become invalid, void, illegal or not enforceable, such provision shall be considered separate and severable from this Lease and the remaining provisions shall
remain in force and be binding upon the parties hereto as though such provision had not been included. 

  

	3.5	Successors 

 This Lease and everything herein contained shall extend to and bind the successors and
assigns of the Landlord and the legal representatives, heirs, executors, administrators, successors and permitted assigns of the Tenant (as the case may be). 

 ARTICLE 4 - GRANT AND TERM 

 

	4.1	Term, Demise 

 The Landlord hereby demises and leases the Premises to the Tenant for the Term (unless
terminated earlier pursuant to this Lease), to have and to hold during the Term, subject to the terms and conditions of this Lease. The Landlord grants to the Tenant a non-exclusive licence throughout the Term to the benefit or
use (as may be appropriate) of those Common Areas and Facilities which provide access to the Premises or which are generally made available to all tenants in the Building, in common with other tenants of the Building and with all
others entitled thereto, subject to the terms and conditions of this Lease. 

  
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	4.2	Delay in Delivery of Premises 

 If the Landlord is delayed in delivering the Premises to the Tenant by
the date provided for in this Lease, the Landlord and the Tenant agree that the Commencement Date shall be deferred by the number of days of such delay but the Term will remain as set out in this Lease. The Landlord or its agent shall provide to the
Tenant written notice of any such delay before it occurs. The Tenant shall accept the above deferral of the Commencement Date as full compensation for the delay and the Landlord shall have no further liability arising from it. The Tenant shall upon
request execute a lease amending agreement documenting such deferral, if any. 
  

	4.3	Acceptance 

 The Tenant hereby leases and accepts the Premises from the Landlord and covenants to pay the
Rent and to observe and perform all the covenants and obligations to be observed and performed by the Tenant pursuant to this Lease. If the Tenant occupies the Premises prior to the Commencement Date, its occupancy shall be subject to the terms and
conditions of this Lease, other than in respect of Rent if there are other provisions concerning Rent that the Landlord and Tenant have agreed to in writing in respect of such period prior to the Commencement Date. The Tenant agrees that, except as
may be specifically set out herein, the Premises are accepted subject only to the Premises being in the condition set out in Schedule “E” and there is no promise, representation or undertaking binding upon the Landlord with respect to any
alteration, remodelling or decoration of the Premises or with respect to the installation of equipment or fixtures in the Premises. 
  

	4.4	Quiet Enjoyment 

 If the Tenant pays the Rent, fully performs all its obligations under this Lease and
there has been no Event of Default, then the Tenant shall be entitled, subject to the provisions of this Lease, to peaceful and quiet enjoyment of the Premises for the Term. 

ARTICLE 5 - RENT 
  

	5.1	Basic Rent 

 The Tenant shall pay to the Landlord Basic Rent in the amount set out in Section 1.1(j)
for the respective Lease Year, by equal consecutive monthly instalments in advance on the fast day of each month, subject to any adjustment pursuant to Section 5.3. 
  

	5.2	Additional Rent 

 The Tenant shall also pay throughout the Term, at the times and in the manner provided
in this Lease, all Additional Rent which shall, except as otherwise provided in this Lease, be payable within 15 days of receipt by the Tenant of an invoice, statement or demand for it. 

 

	5.3	Adjustment Due to Measurement 

 The Landlord may, from time to time, at its option, cause the Rentable
Area of the Premises and/or Project or any part thereof to be measured by an Expert and, if necessary as a result of such measurement, the annual Basic Rent and the calculation of Additional Rent shall be adjusted by the landlord. The effective date
of any such adjustment shall be: 
  

	 	(a)	in the case of any measurement made prior to or within six months of the Commencement Date, the date the Tenant is allowed possession of the Premises under this Lease, and 

 

	 	(b)	in all other cases, the date of the determination of the measurement. 

 Any such measurement by an Expert shall
be final and binding on the Landlord and the Tenant subject to the Landlord’s right from time to time to cause the Rentable Area of the Premises and/or Project or any part thereof to be remeasured by an Expert as set out above. Neither the
Landlord nor the Tenant may claim any adjustment to the annual Basic Rent or to the calculation of Additional Rent based on the Rentable Area of the Premises except in accordance with a measurement by an Expert made pursuant to this Section and, for
greater certainty, neither the Landlord nor the Tenant may claim any adjustment to the annual Basic Rent or to the calculation of Additional Rent based on such measurement for the period prior to the effective date of such adjustment as set out
above. 
 
  

	5.4	Payment of Rent - General 

  

	 	(a)	payments required to be made by the Tenant pursuant to this Lease shall be paid when due, without prior demand and without any abatement, set-off, compensation or deduction whatsoever, except as may be otherwise
expressly provided herein, at the address of the Landlord set out in Section 1.1(a)(ii) or at such other place as the Landlord may designate from time to time to the Tenant. 

  
 8 

	 	(b)	All payments required to be made by the Tenant pursuant to this Lease, except for Rental Taxes, shall be deemed to be Rent and shall be payable and recoverable as Rent, and the Landlord shall have all rights against the
Tenant for default in any such payment as in the case of arrears of Rent. 

  

	 	(c)	The Tenant shall pay to the Landlord all Rental Taxes applicable from time to time, calculated and payable in accordance with Applicable Laws and the Tenant shall pay such amount at the earlier of: (i) the time
provided for by Applicable Laws; and (ii) the time such Rent is required to be paid under this Lease. The amount payable by the Tenant on account of Rental Taxes shall be deemed not to be Rent for the purpose of such calculation but in the
event of a failure by the Tenant to pay any amount, the Landlord shall have the same rights and remedies as it has in the event of a failure by the Tenant to pay Rent. 

 

	 	(d)	•At the Landlord’s request, the Tenant shall make all payments under this Lease by way of post dated cheques, automate withdrawals or electronic funds transfer from the Tenant’s bank account and
shall execute and deliver either concurrently with this Lease or from time to time within three Business Days following request for it, such documentation as may be required by the Landlord and its bank in order to effect such
payments.• The Tenant authorizes the Landlord to withdraw monthly Rent payments from the Tenant’s account by way of direct withdrawals, as may be arranged from time to time between financial institutions administering the
Tenant’s and the Landlord’s accounts. The Tenant further agrees to execute and provide whatever further documentation, account information, cancelled cheques or otherwise, which are reasonably requested by the Landlord in order to assist
the Landlord in the administration of a pre-authorized payment procedure for monies owing or accruing due as Rent under this Lease. 

  

	 	(e)	•At the Tenant begins to use all or part of the Premises for the conduct of its business on a date that is earlier than the Commencement Date, Rent shall begin to accrue from such earlier date, and the
Tenant shall pay to the Landlord the Rent accrued, in each case within 30 days of receipt from the Landlord of an invoice in respect of such Rent.• 

  

	 	(f)	If the •Commencement Date or the date the Tenant commence to conduct its business at the Premises is other than the first day of a full period in respect of which any item of Rent is calculated, or
the• last day of the Term is other than the last day of a full period, then unless otherwise provided in this Lease, the amount of such item of Rent payable in respect of the broken period shall be prorated on the basis of a 365 day
year. 

  

	5.5	Payment of Additional Rent 

  

	 	(a)	Prior to the Commencement Date and at or prior to the beginning of each Fiscal Year thereafter, the Landlord shall compute and deliver to the Tenant a bona fide estimate in respect of such Fiscal Year of the
Tenant’s share of Property Taxes, the Tenant’s share of 0perating Costs (being its Proportionate Share subject to Section 6.7) and such other items of Additional Rent as the Landlord may estimate in advance and the Tenant shall
pay to the Landlord in monthly instalments one-twelfth of such estimate simultaneously with the Tenants payments of Basic Rent, provided that the monthly instalments on account of the Tenant’s share of Property Taxes may be determined so
that the Landlord collects all such amounts payable by the Tenant by the final due date in the relevant calendar year. The Landlord may from time to time re-estimate any items of Additional Rent and may fix monthly instalments for the then remaining
balance of the Fiscal Year so that such items will be entirely paid during such Fiscal Year. 

  

	 	(b)	Within a reasonable period of time after all information necessary to calculate actual Additional Rent becomes available after the end of each Fiscal Year, the Landlord will provide to the Tenant a written
statement (in this Section 5.5 referred to as the “Statement”) setting out in reasonable detail the amount of Operating Costs, the Property Taxes and such other items of Additional Rent as the Landlord had estimated in advance for
such Fiscal Year. If the Tenant’s share of Property Taxes, the Tenant’s share of Operating Costs (being its Proportionate Share subject to Section 6.7) and other items of Additional Rent actually paid by the Tenant to the Landlord
during such Fiscal Year differs from the amount of the Tenant’s share of Property Taxes, the Tenant’s share of Operating Costs and other items of Additional Rent payable for such Fiscal Year, the Tenant shall pay such difference or the
Landlord shall credit the Tenants account (as the case may be), without interest within 30 days after the date of delivery of the Statement~ The respective obligations of the Landlord and the Tenant in this Section 5.5(b) shall survive the
end of the Term or earlier termination of this Lease. 

  

	 	(c)	The Tenant shall not claim a re-adjustment in respect of Operating Costs or Property Taxes or other items of Additional Rent estimated by the Landlord or the share payable by the Tenant on account thereof for any
Fiscal Year except by notice given to the Landlord within six months after delivery of the Statement, stating the particulars of the error in computation. 

 

 

	 	(d)	 If the Tenant disputes the accuracy of any Statement within the period permitted under Section 5.5(c) above and the landlord and the Tenant fail
to settle the matter within a reasonable period, the matter shall be referred by the Landlord to an Expert for prompt determination. The Tenant shall pay in accordance with the Statement until such decision is rendered. The Expert’s signed
determination shall be final and binding on both the Landlord and the Tenant. Any adjustment 

  
 9 

	 	
required to any previous payment made by the Tenant or the Landlord by reason of any such determination shall be made within 14 days thereof, and the party required to pay such adjustment shall
bear all costs of the Expert, except that if the amount to be paid is 201/6 or less of the amount in dispute, the Tenant shall pay all such costs. 

  

	5.6	•Rent Deposit 

 The Landlord acknowledges receipt from the Tenant of the
Rent Deposit to be applied to the Rent as it becomes due or as otherwise provided in Section 1.1(k)(i) and, to the extent it is not so applied from time to time, to be held, without interest, as security (without prejudice to the
Landlord’s other rights and remedies) for the observance and performance of the Tenant’s obligations under this Lease.• 
  

	5.7	Security Deposit 

 •The Landlord acknowledges receipt from the Tenant of the Security
Deposit to be held, without interest, as security (withoutprejudice to the Landlord’s other rights and remedies) for the observance and performance of the Tenant’s obligations under this Lease. If the Tenant defaults in the performance of
any of the terms, covenants, conditions and provisions of this Lease as and when the same are due to be performed by the Tenant, then the Landlord, at its option, may appropriate any apply all or any part of the Security Deposit on account of
any losses or damages sustained by the Landlord as a result of such default. Upon demand by the Landlord following any such appropriation, the Tenant shall pay to the Landlord an amount sufficient to restore the total original amount of the Security
Deposit. If the Tenant complies with all of the terms, covenants, conditions and provisions under this Lease, the Security Deposit shall be returned to the Tenant without interest within 90 days after the expiry or earlier termination of the
Term, or, at the Landlord’s option, shall be applied by the Landlord on account of the last month’s Rent. • 
 Prior to or
concurrently with the execution and return of this Lease by the Tenant, the Tenant shall deposit with the Landlord the Security Deposit. The Security Deposit will be held without liability for interest for application by the Landlord
firstly against the aggregate payment of first months’ Basic Rent, Operating Costs and Property Taxes, including Rental Taxes with the balance to be held as security for the due and proper performance by the Tenant of all of the
terms, covenants and conditions of this Lease, including the payment of all Rent due hereunder. At the expiration of the Term, any portion of the Security Deposit that remains outstanding and unapplied by the Landlord shall be repaid by
the Landlord to the Tenant within 60 days of the expiration of the Term. Notwithstanding the foregoing, if the Tenant fails to execute and deliver this Lease within 5 Business Days of receipt from the Landlord, the Landlord may,
at its sole option, terminate this Lease, whereupon the Security Deposit shall be retained by the Landlord as liquidated damages on account of the Tenant’s default and not as a penalty. 

 

	5.8	Net Lease 

 The Tenant acknowledges and agrees that it is intended that this Lease shall be a completely
carefree net lease for the Landlord and that the Landlord shall not be responsible for any costs, charges, expenses and outlays of any nature whatsoever arising from or relating to the Premises during the Term, whether foreseen or
unforeseen and whether or not within the contemplation of the parties at the commencement of the Term, except as shall be otherwise expressly provided in this Lease. 

ARTICLE 6 - OPERATING COSTS AND TAXES 
  

	6.1	Property Taxes Payable by Landlord 

 The Landlord shall pay all Property Taxes, but it may defer such
payments or compliance to the fullest extent permitted by law so long as it pursues in good faith any contest or appeal of any such Property Taxes with reasonable diligence. 

 

	6.2	Property Taxes Payable by Tenant 

  

	 	(a)	The Tenant shall pay as Additional Rent directly to the Landlord in each Fiscal Year the Tenant’s share of Property Taxes as determined pursuant to this Section. 

 

	 	(b)	The Tenant’s share of Property Taxes shall be the portion of the Property Taxes that are attributable to the Premises, as determined by the Landlord. Without limiting the foregoing: 

  

	 	(i)	the Landlord may, if it so elects, determine that the Tenant’s share of Property Taxes attributable to the Premises shall be the Proportionate Share of Property Taxes; 

 

	 	(ii)	the Landlord shall be entitled, but not obligated, to allocate Property Taxes amongst categories of premises in the Project on the basis of such factors as the Landlord determines to be relevant and to adjust the
Tenant’s share of Property Taxes based on such allocation; 

  

	 	(iii)	if there are separate assessments (or, in lieu of separate assessments, calculations made by authorities having jurisdiction from which a reasonable approximation of separate assessments can be made) for the
Premises for Property Taxes, the Landlord may in its sole discretion (but need not) have regard thereto; 

  
 10 

	 	(iv)	nothing herein shall compel or require the Landlord to adjust, continue to adjust or to make the same determination or allocation of Property Taxes from year to year or in any Fiscal Year; and 

 

	 	(v)	for the purposes of determining the share of Property Taxes payable by the Tenant pursuant to this Lease, Property Taxes shall include such additional amounts as would have formed part of Property Taxes had the Project
been filly assessed during the whole of the relevant Fiscal Year as fully completed and fully occupied by tenants, with no special exemptions or reductions, and without taking into account any actual or potential reduction of Property Taxes or
change of assessment category or class for premises within the Project which are vacant or underutilized. 

  

	6.3	Business Taxes and Other Taxes of Tenant 

 The Tenant shall promptly pay before delinquency to the taxing
authorities or to the Landlord, if it so directs, as Additional Rent, any taxes, rates, duties, levies and assessments whatsoever, whether municipal, provincial, federal or otherwise, levied, imposed or assessed against or in respect of
the operations at, occupancy of, or conduct of business in or from the Premises by the Tenant or any other permitted occupant, including the Tenant’s Business Taxes, if levied in the province in which the Building is
situate. Whenever requested by the Landlord, the Tenant shall deliver to the Landlord copies of receipts for payment of all such taxes. 
  

	6.4	Assessment Appeals 

 The Tenant shall not appeal any governmental assessment or determination of the
value of the Project or any portion of the Project whether or not the assessment or determination affects the amount of Property Taxes or other taxes, rates, duties, levies or assessments to be paid by the Tenant. 

 

	6.5	Operating Costs 

 Subject to the exclusions and deductions stipulated in Section 6.6,
“Operating Costs” means the total, without duplication, of the costs, expenses, fees, rentals, disbursements and outlays (in Sections 6.5 and 6.6 referred to collectively as “costs”) of every kind, whether direct or
indirect, paid, payable or incurred by or on behalf of the Landlord on a cash basis (or on an accrual basis as and to the extent that the Landlord may determine) in the ownership, maintenance, repair, replacement, operation,
administration, supervision and management of the Project, including, without limitation: 
  

	 	(a)	costs of providing security, supervision, traffic control, landscaping, snowplowing and/or removal services, exterior cleaning and the costs of machinery, supplies, tools, equipment and materials used in connection
with the Project (including rental costs of such items), and including costs relating to any spur track; 

  

	 	(b)	inspections, repairs, maintenance and replacements to the Building Systems and Common Areas and Facilities of the Project; 

  

	 	(c)	costs of telephone and telecommunications (including rooftop and wireless management), information technology, telecopier, stationery, office equipment, supplies, signs and directory boards and other services and
materials required for management, maintenance and operation (whether on or off-site and whether incurred by the Landlord or a management company); 

  

	 	(d)	to the extent incurred in respect of the Premises and not separately metered and paid for by the Tenant, and to the extent incurred in respect of the Common Areas and Facilities, the costs of providing electricity,
fuel, heat, water, telephone, gas, sewage disposal, external lighting and other utilities and services (including all energy management and administration costs); 

 

	 	(e)	to the extent payment of such costs is not the responsibility of the Tenant under Article 7 of this Lease, the costs of; 

  

	 	(i)	operating, maintaining, replacing, modifying and repairing the Project, including without limitation such costs where incurred by the Landlord in order to comply with Applicable Laws or required by the Landlord’s
insurance carrier or resulting from normal wear and tear to the Project; 

  

	 	(ii)	providing, installing, modifying and upgrading energy conservation equipment and systems, life safety and emergency response systems, materials and procedures and telecommunication systems and equipment if any;

 
  

	 	(iii)	making alterations, replacements or additions to the Project intended to reduce Operating Costs, improve the operation of the Project and the systems, facilities and equipment serving the Project, or maintain their
operation; 

  

	 	(iv)	replacing machinery or equipment which by its nature requires periodic replacement; 

  
 11 

	 	(v)	painting interior areas not normally rented to tenants and the costs of painting or otherwise maintaining the outside of the Project, other than those parts for which the Tenant is responsible; 

 

	 	(vi)	maintaining, repairing and replacing the signs, directory boards, roadways, driveways, loading and parking areas of the Common Areas and Facilities; 

 

	 	(vii)	maintaining, repaving and replacing any roof or wall or foundation of any part of the Premises; and 

  

	 	(viii)	spur track rental, 

 all to the extent that such costs are fully chargeable in the Fiscal Year
in which they are incurred in accordance with generally accepted accounting principles as applied by the Landlord, or as specified in this Lease; 
  

	 	(f)	depreciation or amortization of the costs referred to in Section 6.5(e) above as determined in accordance with generally accepted accounting principles as applied by the Landlord, or as specified in this
Lease, if such costs have not been charged fully in the Fiscal Year in which they are incurred, and interest or imputed interest (at 2% per annum over the Prime Rate) on the undepreciated or unamortized balance of such costs, it being
recognized that the Landlord, acting reasonably, may depreciate or amortize any such cost over a longer or shorter period than that which corresponds to the period over which the benefits of having incurred that cost are realized; 

 

	 	(g)	amounts paid to, or reasonably attributable to the remuneration of, all personnel (whether on or off-site and whether employed by the Landlord or a management company) involved in the maintenance, repair, replacement,
operation, administration, supervision and management of the Project, including fringe benefits, severance pay, termination payments, uniforms and other employment costs; 

 

	 	(h)	auditing, accounting, legal and other professional and consulting fees and disbursements incurred in connection with the maintenance, repair, replacement, operation, administration, supervision and management
of the Project, including those incurred with respect to the preparation of the statements required under the provisions of this Lease and costs of minimizing, contesting or appealing assessments of Property Taxes (whether or not successful);

  

	 	(i)	costs of all insurance which the Landlord is obligated or permitted to obtain under this Lease and the amounts of losses incurred or claims paid either below the insurance deductible amounts or as the co-insurance
portion of an insured claim, and should the Landlord choose in whole or in part to self-insure, the amount of reasonable contingency reserves not exceeding the amount of premiums that would otherwise have been incurred in respect of the risks
undertaken; 

  

	 	(j)	Property Taxes to the extent not charged to the Tenant pursuant to Section 6.2 and to other tenants of the Project pursuant to lease provisions similar to such Section; 

 

	 	(k)	Capital Tax and Large Corporations Tax; 

  

	 	(1)	fair market rental value (having regard to rent being charged for similar space including additional rent for operating costs and property taxes) of space used by the Landlord and/or its property manager, in connection
with the maintenance, repair, operation, administration and management of the Project and such fair market rental value of any building amenities (such as conference and day-care facilities provided primarily for tenants of the Project),
together with the costs relating to such building amenities; and 

  

	 	(m)	an allowance of fifteen percent (15%) of the aggregate of (i) the above amounts, and (ii) Property Taxes, for the Landlord’s building administration fee. 

 

	6.6	Limitations on Operating Costs 

 In determining Operating Costs, the cost (if any) of the following shall
be excluded or deducted, as the case may be: 
  

	 	(a)	major repairs to Structural Components that are required as a result of defective design or construction of such Structural Components; 

 

	 	(b)	interest on, and the capital retirement of debt, except as specifically provided in Section 6.5(e), and ground rent payable to the lessor under any ground or other lease pursuant to which the Landlord has an
interest in the Project; 

  

	 	(c)	expenses relating to decorating or redecorating or renovating premises demised, or to be demised, to tenants or occupants of the Project and costs relating to tenant inducements, allowances or similar expenses;

  

	 	(d)	all leasing expenses, real estate brokers’ fees, leasing commissions, advertising premises for lease, and space planners’ fees; 

  
 12 

	 	(e)	repairs or maintenance done for the direct account of other tenants; and 

  

	 	(f)	net recoveries by the Landlord in respect of warranties or guarantees and insurance claims to the extent (but only to the extent) that the repair costs in respect of the work covered by such warranties or
guarantees or insurance claims have been charged as Operating Costs. 

  

	6.7	Adjustments of Operating Costs 

 In computing Operating Costs: 

 

	 	(a)	where the Landlord determines, acting reasonably but in its sole discretion, that any item(s) of Operating Costs are provided only to or for the benefit of the Building (if it is part of a Project) or a portion of the
Project or Building, then the Landlord shall be entitled, but not obligated, to allocate the cost of those item(s) over such portion of the Project or Building and adjust the Tenant’s Operating Cost payment based on such allocation;

  

	 	(b)	if the Project or the Building is comprised of different categories of leaseable premises, the Landlord shall be entitled, but not obligated, to allocate Operating Costs among the various categories on the basis of such
factors as the Landlord determines to be relevant and to adjust the Tenant’s Operating Cost payment based on such allocation; and 

  

	 	(c)	if any facilities, services or utilities: 

  

	 	(i)	for the operation, administration, management, repair and maintenance of the Building are provided from another building or other buildings (whether within the Project or elsewhere) owned or operated by Landlord or its
manager; 

  

	 	(ii)	for the operation, administration, management, repair and maintenance of another building or other buildings (whether within the Project or elsewhere) owned or operated by the Landlord or its manager are provided from
the Building; or 

  

	 	(iii)	are otherwise shared between the Building and another building or other buildings (whether within the Project or elsewhere), the costs, charges and expenses of such items shall be allocated by the Landlord, between the
Building and other building or buildings (whether within the Project or elsewhere) on a reasonable basis. 

  

	6.8	Reduction or Control of Operating Costs 

 The Tenant shall comply with any practices or procedures that
the Landlord, may from time to time introduce to reduce or control Operating Costs and shall pay, as Additional Rent, all costs, as determined by the Landlord, that may be incurred by the Landlord as a result of any non-compliance. The
Landlord may use an Expert to assist it in making such determination. 
 ARTICLE 7 - HVAC, UTILITIES AND OTHER LANDLORD SERVICES

  

	7.1	Heating 

 The Tenant shall heat the Premises at its own expense to a degree sufficient to protect
the Premises and their contents from damage by cold or frost, and to operate, maintain, repair and replace as required the heating equipment. At the expiry or sooner termination of the Tem, the Tenant will peacefully yield up unto the Landlord
such heating equipment in good and substantial repair and condition. Notwithstanding the foregoing, pursuant to Schedule “E”, subparagraph (c~, the Landlord will ensure that the existing HVAC systems serving the
Premises will be in proper working order as at the Commencement Date. It is understood that the maintenance of such existing HVAC systems throughout the Term will be undertaken by the Landlord and charged back directly to
the Tenant through Operating Costs. 
  

	7.2	Electricity and Other Utilities 

  

	 	(a)	The Tenant shall be solely responsible for and shall promptly pay all charges for electricity, telephone, water, gas, sewage disposal and other utility services used or consumed in the Premises, and for all work or
services performed by any corporation or commission in connection with such public or private utilities. The Tenant shall not overload the capacity of any such service. 

 

	 	(b)	The Tenant shall not engage any Person not approved by the Landlord to provide any utility service to the Premises. Solely the Landlord shall have the right to selector designate the provider or providers from time
to time of electrical power or other utilities to the Premises or any other part of the Project, and solely the Landlord shall be permitted (at the Tenant’s cost) to install any meters or check meters to monitor the consumption or use of
electrical power or other utilities. 

  
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	7.3	Special HVAC Services and Utilities and Excess Quantities 

 If the Tenant requests electricity, gas,
sewage disposal, water or other utility services of a type or in quantities that exceed the capacity of the Building, as determined by the Landlord, the Landlord shall supply such services if the Landlord determines, in its sole discretion,
that the provision of such services: (a) is within the capacity of the Building Systems; (b) would not affect the operation, aesthetics or structure of the Building or Project; (c) would not reduce the efficiency of the
existing services supplied to other tenants or parts of the Building or Project; and (d) is otherwise feasible. The Tenant will pay to the Landlord all costs, both non-recurring and recurring, of providing all such services. Such
costs shall be determined by the Landlord, and may include installation at the Tenant’s expense of separate meters or other measuring devices in the Premises or elsewhere and the Landlord may use an Expert at the Tenant’s sole
cost to assist it in determining such costs. 
  

	7.4	Additional Services Provided by Landlord 

 The Tenant shall pay to the Landlord the costs of all services
provided by the Landlord to the Tenant (plus an administrative charge of 15%), other than services supplied by the Landlord and charged as Operating Costs. Such services shall include services performed at the Tenant’s request or
otherwise provided for herein including, without limitation construction of any Leasehold Improvements or other work performed at the request of or on behalf of the Tenant. 
  

	7.5	Telecommunications 

 The Tenant shall at its cost supply such point of presence equipment and space
within the Premises as its telecommunication service provider (“TSP”) may require. The Tenant shall not permit a TSP to provide services to any other tenant or occupant of the Building utilizing such equipment or space or
any other equipment or space in the Premises. No agreement between the Tenant and TSP shall provide any license for the TSP to have a presence in the Building, and any such agreement shall terminate no later than the expiry or earlier
termination of the Term. 
  

	7.6	Signs and Premises Identification 

 The Tenant shall not erect, affix, install or maintain any signs,
lettering, identification or any promotional or other written materials (in this section 7.6 referred to collectively as “signage”) visible from the exterior of the Building or Project or from any interior Common Areas and
Facilities without the prior written approval of the Landlord; provided that the Landlord may prescribe a uniform pattern for signage for tenants to be placed on the outside of the Project or any part thereof, and provided that the
Landlord may arbitrarily withhold its approval to any signage that relates to something other than the Tenant and its business operations in the Premises. Prior to the expiry or earlier termination of the Term, the Tenant shall cause any
signage to be removed at its own expense in a good and workmanlike manner and to immediately repair any damage caused thereby. For greater certainty and clarity, the Tenant shall be permitted to install exterior base building signage
(“Exterior Signage”). The Exterior Signage is subject to the Landlord’s approval and shall conform will all applicable local, municipal and or federal rules and regulations having jurisdiction. The Exterior Signage
shall be installed and maintained at the Tenant’s sole cost and expense and such maintenance shall be to a first class standard. At the expiry or earlier termination of this Lease, the Tenant shall cause such Exterior Signage to be
removed at its own expense in a good and workmanlike manner and to immediately repair any damage caused thereby, such covenant to survive the expiry or earlier termination of this Lease. 

ARTICLE 8 - OPERATION, CONTROL AND MAINTENANCE BY LANDLORD 
  

	8.1	Operation of the Building by Landlord 

 The Landlord shall operate the Building in accordance with all
Applicable Laws and with standards from time to time prevailing for similar industrial building in the area in which the Building is located, subject, however, to the limitations occasioned by the design and age of the Building and the
capacity of its systems. 
  

	8.2	Control of the Project by Landlord 

 The Landlord has at all times exclusive control of the Project and
its management and operation, but not so as to deny the Tenant access to the Premises or interrupt delivery of services or utilities, in each case except in an emergency or to perform maintenance. Without limiting the
generality of the foregoing, at any time and from time to time, the Landlord may: 
 
  

	 	(a)	make repairs, replacements, changes or additions to the structure, systems, facilities and equipment in the Project (including the Premises) where necessary to serve the Premises or other parts of the Project;

  

	 	(b)	make changes or additions to any part of the Project not in or forming part of the Premises including, without limitation, dedicating or conveying portions of the Lands, granting easements, rights-of-way, restrictive
covenants or other interests in the Lands and constructing additional improvements in or adjoining the Lands; 

  

	 	(c)	 •rearrange the Premises, or take back from or demise to the Tenant space in or adjoining the Premises (not, however, exceeding 200 square
feet in any one instance), as may from time to time be required by the Landlord, noting reasonably, for the benefit of the Project or other tenants or 

  
 14 

	 	
occupants thereof, and the Landlord and the Tenant shall co-operate with each other in that regard, and shall execute such further agreements and lease amendments as may be required to
give effect to this prevision;• 

  

	 	(d)	own or acquire from time to time lands or buildings contiguous to or near the Project and may at its option retain them separately or have them included as part of the Project. The Landlord may from time to time
cease to include as part of the Project any buildings or vacant lands now or hereafter forming part of the Project; 

  

	 	(e)	terminate or amend the Tenant’s right of use of any of the Common Areas and Facilities, change the location and size of any of the Common Areas and Facilities or use parts of the Common Areas and
Facilities for promotional or other activities; 

  

	 	(f)	retain contractors and employ all personnel, including supervisory personnel and managers, that the Landlord considers necessary for the effective maintenance, repair, operation, management and control of the
Project; 

  

	 	(g)	control, supervise and regulate the shipping and delivery of goods, supplies, equipment and fixtures within the Project, and specify the kinds of containers to be used for garbage and refuse or rubbish and
designate how, when and where it is to be placed for collection; and 

  

	 	(h)	do and perform such other acts in and to the Project or any of its component parts as the Landlord considers reasonable for the proper and efficient maintenance, repair, operation, management and control of the Project,

 provided that in the course of the Landlord’s exercise of its rights hereunder, the Landlord shall be deemed not to have re-entered
the Premises nor to have breached any obligation of this Lease. The Landlord shall perform all of its work as expeditiously as is reasonable so as to interfere as little as is reasonably possible with the Tenant’s use of the Premises.

  

	8.3	Name of Building 

 The Landlord may from time to time designate a name or other identification for the
Building or Project. The Tenant shall be responsible for any costs it incurs as a result of any changes in the name or identification (such as changes to its stationery and other material). The Tenant shall have no rights in any
such names or identification. 
  

	8.4	Maintenance and Repair by Landlord 

 The Landlord shall as part of Operating Costs keep or cause to be
kept the following in good repair to the standards from time to time prevailing for similar industrial buildings in the area in which the Building is located, subject, however, to the limitations occasioned by the design and age of
the Building and the capacity of its systems and to reasonable wear and tear not inconsistent with such standard 
  

	 	(a)	the Structural Components, exterior walls, windows and roofs of the Building; and 

  

	 	(b)	the Common Areas and Facilities, 

 provided that: 

 

	 	(c)	if all or part of Building Systems require repair, replacement, maintenance or inspections, the Landlord shall have a reasonable time in which to complete such work, and during such time shall only be required to
maintain such services as are reasonably possible in the circumstances; and 

  

	 	(d)	no reduction or discontinuance of such services or loss of use of the Premises shall be construed as an eviction of the Tenant or (except as specifically provided in this Lease) release the Tenant from any obligation
under this Lease. 

 
  

	8.5	Access by Landlord 

 The Tenant shall permit the Landlord, its agents and others authorized by it, to
enter the Premises to inspect, to provide services or to make repairs, replacements, changes or alterations as set out in this Lease, to take such steps as the Landlord may deem necessary for the safety, improvement, alteration or
preservation of the Premises or the Project and to show the Premises to Mortgagees, prospective Mortgagees, purchasers and prospective purchasers and, during the last 18 months of the Term, to prospective tenants, and no such
entry shall constitute a re-entry by the Landlord or an eviction or entitle the Tenant to any abatement of Rent. However, in effecting such entry the Landlord shall use reasonable efforts to minimize interference with the Tenant’s use
and enjoyment of the Premises, and the Landlord shall endeavour to give the Tenant at least twenty-four (24) hours’ prior notice before doing any repair or maintenance work (other than in the case of an emergency or
apprehended emergency). 
  

	8.6	Relocation 

 The Landlord shall have the right, in its sole discretion, from time to time, on not less
than •60• 120 days’ written notice to the Tenant, to relocate the Premises to other premises within the Project having approximately the same area as the Premises. The Landlord shall be
entitled to designate the location of the new premises and the date by 

  
 15 

 
which the Tenant must relocate to the new premises, and such location and date shall be specified in the written notice. As of the date so specified, the Tenant’s right to use and
occupy the Premises will terminate, whether or not the Tenant has moved, unless the Landlord has in its sole discretion by another notice in writing extended such date. The Tenant shall on the date set out in the notice from the Landlord
relocate to the other premises and vacate the Premises, and the provisions of Section 93 shall apply in respect of the Premises on such date. If the Landlord relocates the Premises prior to occupancy of the Premises by the
Tenant, it shall reimburse the Tenant for all expenses already incurred by the Tenant in preparing to move into the Premises to the extent that such expenditure is for items or materials not usable in the alternate premises. If the
Landlord relocates the Tenant after occupancy of the Premises by the Tenant, the Landlord shall provide the relocated premises improved to a standard and using materials of approximately the same quality as the Leasehold Improvements
which exist in the existing Premises at the time of relocation and will reimburse the Tenant (upon receipt of copies of receipted third party invoices) for direct costs associated with the relocation, including, without
limitation, moving costs, reprinting of a limited supply of stationery and supplies and disconnection and reconnection of telephone and computer equipment and systems. In no case will the Tenant be reimbursed or compensated for
indirect costs including overhead, overtime charges or loss of profits and the Tenant will minimize costs by re-using all fixtures and trade fixtures from the Premises where it is feasible to do so. The Landlord agrees to use
reasonable efforts to effect the relocation with a minimum of disruption to the Tenant’s business. The Landlord and the Tenant shall enter into a lease amending agreement in the Landlord’s standard form to confirm the terms of
the relocation including, without limitation, any adjustment to the Basic Rent if the Rentable Area of the relocated premises is different than the Rentable Area of the existing Premises and to confirm that all other terms and
conditions of this Lease shall apply with respect to the relocated premises for the remainder of the Term. 
 ARTICLE 9 -
MAINTENANCE AND ALTERATIONS BY TENANT 
  

	9.1	Maintenance and Repair by Tenant 

 The Tenant shall at its sole cost maintain and repair the Premises and
all Leasehold Improvements in good order and condition to the standards from time to time prevailing for similar industrial buildings in the area in which the Building is located, subject to reasonable wear and tear not inconsistent with
such standard and with the exception only of those repairs which are the obligation of the Landlord under this Lease and subject to Article 14. Without limiting the generality of the foregoing, the Tenant shall: 

 

	 	(a)	take good care of the Premises and keep same in a tidy, clean and good condition; 

  

	 	(b)	at its own expense, be responsible for and maintain and replace from time to time as necessary during the Term all light fixtures, light bulbs, fluorescent tubes, lamps and ballasts; 

 

	 	(c)	at its own expense, replace or repair, under the direction and to the reasonable satisfaction of the Landlord, all Leasehold Improvements, Building Systems in or for the direct benefit of the Premises, the complete door
and door assemblies of both man-doors and loading dock doors, loading dock levellers, walls, floors, ceiling, roof as well as windows, in or upon the Premises which become damaged, broken or require maintenance; 

 

	 	(d)	properly heat the Premises, at its own expense, during the Term hereof at all times to the extent necessary to prevent damage thereto by frost or other causes; 

 

	 	(e)	maintain (including, without limitation, the performance of regular and periodic servicing, maintenance and inspections as a prudent owner would) in good operating condition, repair and replace as required and to the
satisfaction of the Landlord, all pipes, wiring and electrical apparatus and all plumbing fixtures and heating, ventilating and air conditioning equipment and all other mechanical systems and electrical systems in or about the Premises and
shall keep the same in clean and good working order and repair. It is understood and agreed that in case the said fixtures, systems and equipment or any part thereof shall be damaged or destroyed or become incapable of performing their function
the Tenant shall forthwith repair or replace (as the Landlord may require) the same to the satisfaction of the Landlord. The Landlord shall have the right to service, maintain or inspect, or any one or more of them, the said fixtures, systems and
equipment or cause same to be maintained or inspected, or both, at the Tenant’s expense, the costs of which shall be payable as Additional Rent by the Tenant forthwith on demand together with an administrative fee equal to fifteen percent
(15%) of all such costs; 

  

	 	(f)	keep well painted the painted portions of the interior of the Premises; and 

  

	 	(g)	keep and maintain the washrooms in a sanitary condition. 

Notwithstanding anything to the contrary herein contained. It is agreed between the parties that if
the hot water tank located at grid line 8 on the 2nd floor of the Premises fails then the Tenant shall only be required to replace such water tank with a new water tank of sufficient capacity to serve the Premises
only. 
  

  
 16 

	9.2	Alterations by Tenant 

 The Tenant may from time to time at its own expense install Leasehold
Improvements and alter existing Leasehold Improvements (the “Alterations”) provided that: 
  

	 	(a)	all Alterations shall require the prior written approval of the Landlord, which approval may be withheld or conditioned by the Landlord in its sole discretion, save and except for minor alterations to Leasehold
Improvements which do not affect the structure of the Building or Project, any exterior walls, windows or roof, any of the Building Systems or the aesthetics of the Building or Project and which do not require a building permit, provided the Tenant
has given written notice with reasonable detail of the proposed Alterations to the Landlord in advance; 

  

	 	(b)	for Alterations which require the Landlord’s approval, the Tenant shall furnish the Landlord with two complete sets of professionally prepared working drawings (which shall include any architectural, structural,
electrical, mechanical, computer system wiring and telecommunication plans) of the proposed Alterations. The Tenant shall retain the Landlord’s base building architect, mechanical, electrical and structural engineering consultants to ensure
compatibility of the Building Systems and the Alterations. If the Tenant uses other consultants for the preparation of the Tenant’s working drawings, then the Landlord may elect to retain architects and engineers to review such
working drawings for the purpose of approving the proposed Alterations (it being understood that notwithstanding such approval, the Landlord shall have no responsibility with respect to the adequacy of such working drawings). The Tenant shall pay to
the Landlord, on demand, the costs of the examination of such drawings by either the Landlord or an outside consultant plus an administration fee of 15% of such costs; 

 

	 	(c)	the Alterations shall be subject to regulation, supervision, control and inspection by the Landlord and, in addition to any other payment contained in this Article, the Tenant shall pay to the Landlord, on demand,
the Landlord’s then current fee for coordination services provided by the Landlord during the Tenant’s construction of its Alterations; 

  

	 	(d)	the Tenant shall provide, prior to the commencement of Alterations, evidence of required workers compensation coverage and roof of owner and contractors protective liability insurance coverage, with the Landlord, any
property manager and any Mortgagee as required by the Landlord, to be named as additional insureds, in amounts, with insurers, and in a form satisfactory to the Landlord, which shall remain in effect during the entire period in which the Alterations
will be carried out. In addition, if requested by the Landlord, the Tenant shall provide proof of performance and payment bonds being in place; 

  

	 	(e)	the Tenant will deliver a list identifying every contractor and subcontractor, accompanied by an up-to-date valid clearance certificate for each of them issued by the appropriate workers compensation, safety and
insurance authority and the Landlord shall have approved, prior to commencement of the Alterations, such contractors and subcontractors and their respective labour affiliations. The Tenant will not use any contractor or permit the use of any
sub-contractor that is not identified on the list; 

  

	 	(f)	if any proposed Alterations could affect the structure, the floors, the ceiling, the roof, the beams or columns, the exterior walls or the Building Systems, the Landlord may in its sole discretion require that any
such Alterations be performed by either the Landlord or its contractors in which case the Tenant shall pay the Landlord’s cost plus an administration fee of 15%; 

 

	 	(g)	the Tenant shall have provided to the Landlord a copy of the contract for the Alterations and evidence satisfactory to the Landlord as to the existence of all necessary permits; 

 

	 	(h)	the Tenant shall perform the Alterations or cause the Alterations to be performed: (i) in accordance with any construction methods and procedures manual for the Building or Project; (ii) in accordance
with the plans and specifications submitted to and approved in writing by the Landlord; (iii) in accordance with any conditions, regulations, procedures or rules imposed by the Landlord; (iv) in compliance with all Applicable Laws; and
(v) in a good and workmanlike and expeditious manner using new materials; 

  

	 	(i)	the Landlord may inspect construction as it proceeds; 

  

	 	(j)	upon completion of the Alterations, the Tenant shall provide the Landlord with a complete set of “as built” drawings in hardcopy and AutoCad format for the Alterations; and 

 

	 	(k)	if the Tenant fails to observe any of the requirements of this Article, the Landlord may in its sole discretion require that construction stop and, at the Landlord’s option, that the Premises be restored to
their prior condition failing which the Landlord may do so and the Tenant shall pay the Landlord’s cost plus an administration fee of 15%. 

  
 17 

	9.3	Removal of Improvements and Fixtures 

 All Leasehold Improvements shall immediately upon their placement
become the Landlord’s property without compensation to the Tenant. Except as otherwise directed by the Landlord in writing, no Leasehold Improvements or trade fixtures shall be removed from the Premises by the Tenant either
during or at the expiry or earlier termination of the Term except that: 
  

	 	(a)	the Tenant may, during the Term, in the usual course of its business, remove its trade fixtures, provided that the Tenant is not in default under this Lease; and 

 

	 	(b)	at the written request of the Landlord, the Tenant shall, at its sole cost do the following (the “Restoration”): (i) remove all of its trade fixtures, (ii) remove or remedy the effects of any
Contaminant from the Premises and the Project; and (iii) remove such of the Leasehold Improvements and wiring, cables and related devices and equipment and restore the Premises and any other part of the Project affected thereby to the then
current base building standard of the Building as established in its sole discretion by the Landlord from time to time, all as the Landlord shall require by notice prior to the expiration of the Term. Such Restoration shall be completed by the date
(the “Restoration Date”) that is the later of; (A) the end of the Term; and (B) 15 days after the Landlord’s notice, provided that in the event of termination of this Lease prior to the expiry of the Term, such Restoration
shall be completed no later than 15 days after the date the Landlord recovers possession of the Premises. Despite the foregoing the Tenant shall leave in place and in an unimpaired condition such Leasehold Improvements and wiring, cables and related
devices and equipment as the Landlord may by notice in writing direct, if any. 

 The Tenant shall at its own expense repair any damage caused
to the Project by the Leasehold Improvements, trade fixtures or wiring, cables and related devices and equipment and/or such Restoration. If the Tenant does not remove its trade fixtures, or wiring, cables and related equipment prior
to the expiry or earlier termination of the Term, such trade fixtures or wiring, cables and related devices and equipment shall, at the option of the Landlord, be deemed abandoned and become the property of the Landlord and may be removed
from the Premises and sold or disposed of by the Landlord in such manner as it deems advisable and the Tenant shall pay to the Landlord on demand all costs incurred by the Landlord in connection therewith, plus an administration fee
of 15% of the costs. The Tenant at the end of the Term shall peaceably surrender and yield up possession of the Premises to the Landlord in as good a condition, repair and decoration as that in which the Tenant is required to
maintain the Premises throughout the Term (including as provided for in Section 9.1), shall return to the Landlord at the Landlord’s management office for the Project all keys and other entry devices for the Premises and the
Project, including vaults and safes, which are in the possession of the Tenant, and shall inform the Landlord of all combinations of locks, safes and vaults, if any, that will remain in the Premises. In addition, immediately
before the end of the Term, the Tenant shall level all floors, seal and wax all tile flooring, strip and seal all concrete flooring, steam clean or shampoo all carpeted flooring, wash all glass, doors, woodwork, light fixtures and
washrooms, fill all holes and repaint all painted wall surfaces of the Premises to the reasonable specifications and satisfaction of the Landlord. Furthermore, immediately before the end of the Term, the Tenant shall at its expense, by cleaning the
surfaces in or about the Premises or otherwise (in a manner satisfactory to the Landlord) ensure that no detectable odours, residual or otherwise, which are a result of the Tenant’s use or occupancy of the Premises or resulting from items
stored by the Tenant in the Premises, are thereafter emitted from the walls, floors, ceilings, Common Areas and Facilities, Building Systems or other materials in or about the Premises or the Building. If the Tenant fails to complete any work or
effect any of the other matters referred to in this Section within the period specified, the Tenant shall pay compensation to the Landlord for damages suffered by the Landlord for loss of use of the Premises, which damages shall not be less than
double the per diem Rent payable during the last month preceding the expiry or earlier termination of the Term (or which would have been payable but for any discount or rent-free period applicable to such last month). Further, if the Tenant does not
complete the Restoration by the Restoration Date the Landlord may carry out such Restoration and the Tenant shall pay to the Landlord the cost of the Restoration plus an administration fee of 15%. The Tenant’s obligations in this
Section 9.3 shall survive the end of the Term or earlier termination of this Lease. 
  

	9.4	Liens 

 The Tenant shall pay before delinquency for all materials supplied and work done in respect of
the Premises so as to ensure that no lien or claim of lien is registered against any portion of the Lands or Project or against the Landlord’s or Tenant’s interest in the Lands or Project. If a lien or claim of lien is registered or filed,
the Tenant shall discharge it at its expense within five Business Days after notice from the Landlord (or sooner if such lien or claim is delaying a financing or sale of all or any part of the Project), failing which the Landlord may at its option
discharge the lien or claim of lien by paying the amount claimed to be due into court and the amount so paid and all expenses of the Landlord including legal fees (on a solicitor and client basis) shall be paid by the Tenant to the Landlord. The
Tenant shall not mortgage, charge, grant a security interest in or otherwise encumber any Leasehold Improvements. 
 

 

	9.5	Notice by Tenant 

 The Tenant shall promptly notify the Landlord of any accident (not including WCB
reports), casualty, defect, damage or deficiency which occurs or exists in any part of the Project and which comes to the attention of the Tenant. 

ARTICLE 10 - USE OF PREMISES 
  

	10.1	Permitted Use 

 The Tenant shall continuously use the whole of the Premises only for the Permitted Use,
which the Tenant shall undertake in a first-class, reputable manner befitting the reputation and image of the Building, and for no other purpose. The Tenant shall not use the Premises in a manner which does or could result in excessive demands being
placed on the Building Systems or other Common Areas and Facilities. 

  
 18 

	10.2	Compliance with Laws 

 The Tenant shall use and occupy and shall cause the Premises to be used and
occupied in compliance with all Applicable Laws and in a safe, careful and proper manner. It is the Tenant’s responsibility to ensure that its use from time to time is permitted by all Applicable Laws. At the Landlord’s request the Tenant
shall comply with any directive, policy or request of any governmental or quasi-governmental authority or any other reasonable request of the Landlord, in respect of any energy conservation, waste management, safety, security or other matter
relating to the operation of the Project. If due primarily to the Tenant’s use or occupancy of the Premises, improvements or changes are necessary to comply with any Applicable Laws or with any such directive, policy or request or with the
requirements of insurance carriers, the Landlord may at its option either do the necessary work, at the expense of the Tenant, or forthwith give notice to the Tenant to do such work within the requisite period of time and the Tenant shall then do
such work within the requisite period of time. The Tenant shall pay to the Landlord the costs of any such work done by the Landlord, together with an administration fee of 15%. 

 

	10.3	Nuisance, Interference, Waste, Overloading 

 The Tenant shall not cause or allow any act or thing which
constitutes a nuisance or which is offensive to the Landlord or other occupants of the Project or which interferes with the operation of any Building Systems or with the computer equipment, telecommunication equipment or other technological
equipment of the Landlord, any service providers or other occupants of the Project. The Tenant shall keep the Premises free of Contaminants, free of debris and other items that might attract rodents or vermin and free of anything of a dangerous,
noxious or offensive nature or which could create a fire, environmental, health or other hazard (including any electromagnetic fields or other forms of radiation) or undue vibration, heat or noise, and the provisions of Schedule “F” shall
apply to this Lease. The Tenant shall at its cost throughout the Term keep and use, at such location as is designated from time to time by the Landlord, an industrial garbage container. The Tenant acknowledges that the Landlord is making no
representations as to the ability of any pavement at the Project or the floor of the Premises to meet the requirements of the Tenant concerning any particular vehicles, articles or fixtures. The Tenant shall not permit any Contaminant or cause or
allow any overloading of the floors of the Project or the bringing into any part of the Project, including the Premises, of any vehicles, articles or fixtures that by reason of their weigh; use or size might damage or endanger the structure, any
concrete, asphalt or other pavement, or any of the Building Systems. If any such Contaminant or damage occurs, the Tenant shall immediately and at its sole expense repair it or remove from the Premises and Project such Contaminant to the
satisfaction of the Landlord. 
  

	10.4	Access 

  

	 	(a)	The Tenant shall not permit any vehicles or trailers belonging to the Tenant, its employees, invitees, contractors or agents to be stored or parked overnight or to cause obstruction on any roads, driveways or parking
areas, or impede ingress and egress by any other tenant in the Project, and will use its best efforts to ensure that persons doing business with the Tenant do not permit any such obstruction. 

 

	 	(b)	The Tenant shall not stack or store any materials in the yard or yards of the Project, adjacent driveways, or common areas and shall cause no obstruction to vehicles operating on the roads, driveways or parking areas.

  

	10.5	Rail Spur 

 If the Premises do now or hereafter have access to a railway spur or are now or hereafter
served by a railway spur the Tenant shall forthwith execute and deliver any agreements in respect thereof which are required by the railway company or other authority operating the said railway or required by the Landlord, and the Tenant shall
reimburse to the Landlord or pay directly to the railway company or other authority operating the said railway all payments and compensation whatsoever which are required to be paid by the Tenant or the Landlord including, without limitation, any
prepayments for the use of the railway facilities and other materials or otherwise and the costs of repairs and replacements of the rail lines, track bed, ties and any other apparatus or facilities (but excluding any amounts included in the
Operating Costs and paid by the Tenant under section 5.5 hereof), and the Tenant shall observe and perform all terms, conditions, covenants and obligations under the said agreements and any and all requirements whatsoever of the railway company or
other authority operating the said railway or the Landlord. The Tenant shall indemnify and save harmless the Landlord from and against any and all loss, cost, expense, damage, claims and liability whatsoever in respect of the use of the railway spur
by the Tenant and in respect of the said agreements and all requirements of the railway company or other authority operating the said railway or the Landlord. 
 

 

	10.6	Rules and Regulations 

 The Tenant shall comply and cause every Person over whom it has control to comply
with the Rules and Regulations. The Landlord, acting reasonably, shall have the right from time to time to make amendments, deletions and additions to such Rules and Regulations. If the Rules and Regulations conflict with any other provisions
of this Lease, the other provisions of this Lease shall govern. The Landlord shall not be obligated to enforce the Rules and Regulations and shall not be responsible to the Tenant for failure of any person to comply with the Rules and Regulations.
The Rules and Regulations may differentiate between different types of tenants, different punts of the Building or the Project or otherwise. The Landlord agrees that it will not enforce the Rules and Regulations in a manner that is discriminatory to
the Tenant. 

  
 19 

 ARTICLE 11 - INSURANCE, LIABILITY AND INDEMNITY 

 

	11.1	Tenant’s Insurance 

 The Tenant shall effect and maintain from the earlier of the Commencement Date
and the date the Tenant begins operating in the Premises, and thereafter during the Term, at its sole cost and expense: 
  

	 	(a)	“all risks” insurance upon all property owned by the Tenant or by others and for which property the Tenant is responsible located in the Project including equipment, furniture, fixtures and Leasehold
Improvements in amounts sufficient to fully cover, on a replacement cost basis without deduction for depreciation, all such items; 

  

	 	(b)	comprehensive form boiler and machinery insurance on a blanket repair and replacement basis in respect of boilers, pressure vessels, air conditioning equipment and miscellaneous electrical apparatus placed in or for the
benefit of the Premises, regardless of source, with limits for each accident in an amount not less than the full replacement cost of all Leasehold Improvements and all property in the Premises; 

 

	 	(c)	commercial general liability insurance on an occurrence basis, against claims for bodily injury, personal injury, economic loss and property damage arising from occurrences in or about the Project or arising from or in
any way relating to the Tenant’s use or occupancy of the Premises or the Project, contractual liability (including coverage of the indemnities provided for in this Lease), non-owned automobile liability and owner and contractors protective
liability, in amounts which are from time to time acceptable to a prudent tenant in the community in which the Building is located (as determined by the Landlord), but not less than $5,000,000.00 in respect of each occurrence; 

 

	 	(d)	Tenant’s legal liability insurance for the fill replacement cost of the Premises including loss of the use of the Premises; 

  

	 	(e)	business interruption insurance for a minimum period of •24• 12 months in an amount
that will reimburse the Tenant for direct or indirect loss of earnings attributable to all perils insured against in Sections 11.1(a) and 11.l(b) or attributable to prevention of access to the premises or the Building as a result of any such perils,
including extra expense insurance if applicable; and 

  

	 	(f)	any other form of insurance that the Landlord or any Mortgagee may require from time to time in form, amounts and for insurance risks acceptable to the Landlord and any Mortgagee. 

Should the Tenant fail to maintain any of the insurance required pursuant to this Section 11.1 and should such default continue for two Business Days
after notice to the Tenant, then in addition to any other rights and remedies, the Landlord may, but shall have no obligation to, elect to obtain the required insurance and the Tenant shall upon demand pay to the Landlord, as Rent, the
Landlord’s cost of obtaining such insurance, together with an administration fee of 15%. 
  

	11.2	Form of Tenant Policies 

 Each policy required pursuant to Section 11.1 shall be in a form and with
insurers acceptable to the Landlord, having reasonable deductibles, and: (a) the insurance described in Sections 11.1(a) and 11.1(b) and any other property damage insurance shall include, as additional named insureds (but without liability for
premiums) as its interests may appear the Landlord, any Mortgagee and other Persons with an interest in the Project from time to time designated in writing by the Landlord; (b) the insurance described in Section 11.1(c) shall include as
additional named insureds (but without liability for premiums) the Landlord, any Mortgagee, any other Persons with an interest in the Project from time to time designated in writing by the Landlord and any property manager or facilities manager
retained by the Landlord in respect of the Project; (c) all property damage and liability insurance shall contain provisions for cross-liability and severability of interests among the Landlord, the other insureds and the Tenant; and
(d) all property damage insurance (including boiler and machinery insurance) shall contain a waiver of any rights of subrogation which the insurer may have against the Landlord and those for whom the Landlord is in law responsible whether the
damage is caused by the act, omission or negligence of the Landlord or such other Persons. 
 
  

	11.3	Certified Copies and Notice to Landlord 

 The Tenant shall provide to the Landlord, prior to the earlier
of the Commencement Date and the date the Tenant begins operating in the Premises, •certified copies or other evidence satisfactory• certificates of insurance to the Landlord that the Tenant has obtained all
insurance policies required by this Lease and shall provide written evidence of the continuation of such policies •not less than ten days• as soon as practicable prior to their respective expiry dates. Each policy required
pursuant to Section 11.1 shall provide that: (a) the insurer must notify the Landlord and any Mortgagee in writing at least 30 days prior to •any material change detrimental to the Landlord or any Mortgagee or•
the cancellation of any such policy; (b) the Tenant shall use its commercially reasonable best efforts to notify the Landlord and any Mortgagee of any material change detrimental to the Landlord or any Mortgagee; (c) the policy
shall not be invalidated in respect of the interests of the Landlord or any Mortgagee or any other additional insureds by reason of any breach or violation of any 

  
 20 

 
warranties, representations, declarations or conditions contained in such policy; and •(c)• (d) the policy shall be noncontributing with, and shall apply only
as primary and not excess to any other insurance available to all and any of the Landlord, any Mortgagee or any other additional insured referred to above. 
  

	11.4	Landlord’s Insurance 

 The Landlord shall effect and maintain during the Term: (a) liability
insurance; (b) “all risks” property insurance; (c) boiler and machinery insurance; and (d) such other insurance on the Building and all property and interest of the Landlord in the Building as determined by the Landlord, in
each case, to the extent, with coverage and in amounts as determined by the Landlord from time to time. However, despite any other provision of this Lease, as long as Sun Life Assurance Company of Canada or an affiliate thereof (as the term
“affiliate” is defined in the Canada Business Corporations Act or the Insurance Companies Act (Canada)) is the Landlord, the Landlord may self-insure, in whole or in part, in respect of any and all casualties; in that event upon the
request of the Tenant from time to time the Landlord will furnish a statement as to the perils in respect of which and the amounts to which it has insured the Project and the improvements and installations in the Premises, and also of the perils and
amounts as to which the Landlord is self-insuring the Project and the improvements and installations in the Premises. 
  

	11.5	Insurance Risks 

 The Tenant shall not do, omit to do, or permit to be done or omitted to be done upon
the Premises or any other portion of the Project anything that may contravene or be prohibited by any of the Landlord’s insurance policies in force from time to time covering or relevant to any part of the Project or which would prevent the
Landlord from procuring such policies with companies acceptable to the Landlord. If the occupancy of the Premises, the conduct of business in the Premises or any acts or omissions of the Tenant in the Premises or any other portion of the Project
causes or results in any increase in premiums for any of the Landlord’s insurance policies, hen, without limiting any other rights or remedies of the Landlord, the Tenant shall pay any such increase and a 15% administration fee thereon as
Additional Rent forthwith upon receipt of the invoices of the Landlord for such additional premiums. A written report by an Expert at the Tenant’s sole cost concerning the cause of any increase in premiums will be accepted as conclusive
evidence of the cause for the purposes of determining the Tenant’s liability to pay for increases as Additional Rent. If the Landlord has chosen to self-insure, the Tenant will pay to the Landlord, as Additional Rent forthwith upon receipt of
the invoices of the Landlord setting out reasonable particulars, the charges that otherwise would have been payable under this subsection (including the 15% administration fee thereon) had the Landlord not chosen to self-insure. 

 

	11.6	Release of Landlord 

 The Tenant hereby releases the Landlord from any and all claims, actions, causes of
action, damages, demands for damages and other liabilities, howsoever arising, that may be made by the Tenant against the Landlord under the provisions of this Lease to the extent of all insurance proceeds paid under the policies of insurance
maintained by the Tenant or which would have been paid if the Tenant had maintained the insurance required under this Lease and had diligently processed any claims thereunder. In addition and without limitation, the Tenant agrees that the Landlord,
regardless of negligence or alleged negligence on the part of the Landlord or any breach of the Lease by the Landlord and, notwithstanding anything else herein contained, shall not be liable for and hereby releases the Landlord from: 

 

	 	(a)	any and all claims, actions, causes of action, damages, demands for damages and other liabilities: 

  

	 	(i)	for or related to any bodily injury, personal injury, illness or discomfort to or death of the Tenant or any of its agents, officers, contractors, employees, invitees, licensees and any other Person for whom the Tenant
is legally responsible in or about the Project or the Premises; and 

  

	 	(ii)	for or related to any loss or damage to property owned by the Tenant or by others and for which property the Tenant is responsible in or about the Project or the Premises, and, without limiting the foregoing, the
Landlord shall not be liable for any damage caused by steam, water, rain or snow which may leak into, issue or flow from part of the Project, including the Premises, or from the pipes or plumbing works thereof, or from any other place or for any
damage caused by or attributable to the condition or arrangement of any electric or other wiring; 

  

	 	(b)	any loss or damage caused as a result of any damage, destruction, construction, alteration, expansion, expropriation, reduction, repair or reconstruction from time to time of the Project, any parts or components of the
Project or of improvements on adjoining properties or by anything done or omitted to be done by any other tenant or occupant; 

 

 

	 	(c)	any act or omission (including theft, malfeasance or negligence) on the part of any agent, contractor or person from time to time employed by Landlord to perform cleaning/maintenance services, security services,
supervision or any other work in or about the Premises or the Project; 

  

	 	(d)	any loss or damage, however caused, to books of account, records, files, money, securities, negotiable instruments, papers, computer disks, tapes, software, data and other electronic files and their storage media of any
kind or to other valuables of the Tenant including art, artworks, statuary, antiques, gems and precious metals of the Tenant and of others; 

  
 21 

	 	(e)	any loss or damage arising from obstruction of deliveries to or from the Premises or interruption, cessation, faulty operation, breakdown or failure of any Building Systems, including but not limited to, the supply of
any utilities, telecommunication services (whether controlled or owned by the Landlord or not) or other services in, to or serving the Project or the Premises, whether they are supplied by the Landlord or by others; and 

 

	 	(f)	any indirect or consequential damages including, but not limited to, loss of profit. 

  

	11.7	Release of Tenant 

 The Landlord hereby releases the Tenant, and its agents, officers and employees, and
any other Person for whom the Tenant is legally responsible from any liability or claim that may be made by the Landlord against the Tenant under the provisions of this Lease with respect to such loss to the extent of the lesser of: (a) the
amount, if any, by which such loss exceeds the amount of insurance the Tenant is required to maintain under the terms of this Lease or actually maintains, whichever is greater; and (b) the proceeds actually paid to the Landlord with respect to
such loss under the policies of insurance maintained by the Landlord pursuant to Section 11.4 or which would have been paid if the Landlord had maintained the insurance required under this Lease and had diligently processed any claims
thereunder. This release shall be operative only if it is not prohibited by the Landlord’s insurance policies and would not place the Landlord in breach of such policies or expose the Landlord to additional costs under or in connection with
such policies. 
  

	11.8	Indemnity by Tenant 

 The Tenant shall indemnify and save harmless the Landlord from and against any and
all claims, actions, causes of action, damages, demands for damages, losses and other liabilities and expenses (including, without limitation, those in connection with bodily injury (including death), personal injury, illness or discomfort or damage
to property and legal fees on a solicitor and client basis) due to or arising from or out of all and any of. 
  

	 	(a)	subject to Section 11.7, any occurrence in, on or at the Premises or the occupancy or use by the Tenant of the Premises or any other part of the Project or occasioned wholly or in part by any act or omission of the
Tenant, its officers, employees, agents, contractors, invitees, licensees or by any Person permitted by the Tenant to be on the Premises or the Project or due to or arising out of any breach by the Tenant of this Lease; and 

 

	 	(b)	any fault, default, negligence, gross negligence, wilful action or omission of the Landlord, its agents, servants, employees or anyone for whom at law the Landlord is liable, which causes interference with or
obstruction of deliveries to or from the Premises or interruption, cessation, faulty operation, breakdown or failure of the Building Systems or utilities or services, including but not limited to telecommunication or similar services (whether they
are part of the Building Systems or not) and suffered by customers, suppliers or other third parties with whom the Tenant or any occupant of the Premises conducts business or by other Persons who utilize any part of any telecommunications network to
which the Tenant or any other occupant of the Project is or are connected. 

 ARTICLE 12 - ASSIGNMENT, SUBLETTING AND OTHER
TRANSFERS 
  

	12.1	Transfers 

 The Tenant shall not enter into, consent to, or permit any Transfer without the prior written
consent of the Landlord, which consent shall be subject to the Landlord’s rights under Section 12.2. The Tenant shall pay to the Landlord the Transfer Application Fee in respect of the proposed Transfer. Notwithstanding any statutory
provision to the contrary, it shall not be considered unreasonable for the Landlord to withhold its consent if, without limiting any other factors or circumstances which the Landlord may take into account: 

 

	 	(a)	an Event of Default on the part of the Tenant hereunder has occurred and is continuing, or the Tenant has previously been in material or persistent breach of any of its obligations under this Lease; 

 

	 	(b)	the proposed Transfer would be or could result in violation or breach of any covenants or restrictions made or granted by the Landlord to other tenants or occupants, or prospective tenants or occupants, of the Project;

  

	 	(c)	in the Landlord’s opinion: 

  

	 	(i)	either the financial background or the business history and capability of the proposed Tansferee is not satisfactory; 

  

	 	(ii)	the nature or character of the proposed business of the proposed Transferee is such that it might harm the Landlord’s business or reputation or reflect unfavourably on the Project, the Landlord, or other tenants of
the Project, or the image of any of them, or is unethical, immoral or illegal; 

  
 22 

	 	(iii)	the use of the Premises by the proposed Transferee could be incompatible with the other businesses or activities being carried on in the Project or could result in excessive demands being placed on the Building Systems
or other Common Areas and Facilities; or 

  

	 	(iv)	if the Transfer affects less than all of the Premises, the portion affected or the portion remaining are not acceptable in respect of size, access or configuration; 

 

	 	(d)	the proposed Transferee or any principal of the proposed Transferee or any principal shareholder of the proposed Transferee has a history of defaults under other commercial leases or does not have a satisfactory history
of compliance with laws; 

  

	 	(e)	the Landlord at the time has•, or will have in the next ensuing three month period period,• other premises in the Project suitable for leasing to the proposed Transferee; 

 

	 	(f)	the basic and additional rent payable by the Transferee is less than the Basic Rent and Additional Rent payable by the Tenant hereunder as at the effective date of the Transfer except in the case where the Landlord
determines, in its sole discretion, that payment of lesser rent by the Transferee will not detrimentally affect the leasing program for the Project; or 

  

	 	(g)	the proposed Transfer is to: (i) an existing tenant or occupant of the Project; or (ii) a representative of a foreign government; or (iii) a proposed Transferee whose proposed use is one that the Landlord
in its sole discretion determines involves more pedestrian or other traffic than would the operations of the Tenant; or (iv) a proposed Transferee whose proposed use is one that the Landlord in its sole discretion determines could place
excessive burdens on the Building Systems, the Building or Project or result in Contaminants, environmental risks or impacts on the Premises, Building or Project. 

Any consent by the Landlord to a Transfer shall not constitute a waiver of the necessity for such consent to any subsequent Transfer. 

 

	12.2	Tenant’s Notice, Landlord’s Right to Terminate 

 If the Tenant intends to effect a Transfer the
Tenant shall give prior written notice to the Landlord of such intent specifying the identity of the Transferee, the type of Transfer contemplated, the part of the Premises affected and the financial and other terms of the Transfer, and shall
provide such financial, business or other information relating to the proposed Transferee and its principals as the Landlord or any Mortgagee reasonably requires, together with copies of all documents which record the particulars of the proposed
Transfer. The Landlord shall, within 30 days after having received such notice, the Transfer Application Fee and all requested information, notify the Tenant either that: 
  

	 	(a)	it consents or does not consent to the Transfer in accordance with the provisions of this Lease; or 

  

	 	(b)	it elects to terminate this Lease as to the part of the Premises affected by the proposed Transfer, or as to the whole Lease and Premises if the proposed Transfer affects all of the Premises. 

If the Landlord elects to terminate this Lease it shall stipulate in its notice the termination date of this Lease, which date shall be the date of possession
contemplated under the proposed Transfer (provided that if such date is less than 30 days or more than 90 days following the giving of notice of such election, the Landlord may elect to have the termination date 30 days or 90 days, respectively,
following the giving of notice). If the Landlord elects to terminate this Lease, the Tenant may notify the Landlord in writing within ten days following receipt of such notice of the Tenant’s intention to refrain from such Transfer and, if the
Tenant provides such written notice within such time period, then the Landlord’s election to terminate this Lease shall become void~ if the Tenant fails to deliver such notice within such time period, then this Lease shall, as to the whole or
affected part of the Premises, as the case may be, be terminated on the date of termination stipulated by the Landlord in its notice of election to terminate. If the Tenant is required to deliver possession of a part only of the Premises, the Tenant
shall pay all costs incurred in connection with rendering that part functionally separate and suitable for separate use and occupancy, including partitioning and providing entrances and services. 

  

	12.3	Conditions of Transfer 

 The following terms and conditions apply in respect of a Transfer: 

 

	 	(a)	if the Transfer is an assignment of this Lease in whole or in part, the Tenant and the Transferee shall execute, prior to the Transfer being made, an agreement with the Landlord in the Landlord’s form including the
Transferee’s covenant to be bound by all of the terms of this Lease; 

  

	 	(b)	notwithstanding any Transfer, the Tenant shall remain liable under this Lease and shall not be released from performing any of the terms of this Lease. The Tenant’s liability shall continue notwithstanding any
amendment of this Lease throughout the Term and any exercise of any renewal or extension of the Term provided for herein, regardless of whether or when an amendment of this Lease is made (however the original Tenant’s liability will not be
increased by any amendment that it is not a party to) and notwithstanding that the Landlord may collect rent from the Transferee. Without limiting the foregoing, the Tenant shall be responsible for all acts or omissions of any subtenant, licensee or
occupant; 

  
 23 

	 	(c)	if the basic and additional rent (net of reasonable out of pocket costs for commissions, for cash allowances and for Alterations required by and made for the Transferee by the Tenant, amortized on a straight line basis
over the term of the Transfer) to be paid by the Transferee under such Transfer exceeds the Basic Rent and Additional Rent payable by the Tenant hereunder, the amount of such excess shall be paid by the Tenant to the Landlord. If the Tenant receives
from any Transferee, either directly or indirectly, any consideration other than basic rent or additional rent for such Transfer, either in the form of cash, goods or services, the Tenant shall immediately pay to the Landlord an amount equivalent to
such consideration, 

  

	 	(d)	if the Transfer is a sublease, the Transferee will execute a covenant in the Landlord’s form and will agree to waive any statutory or other right to apply to a court or to otherwise elect to: (i) retain the
unexpired term of the Lease or the unexpired term of the sublease; (ii) obtain any right to enter into any lease or other agreement directly with the Landlord, or (iii) otherwise remain in possession of any portion of the Premises, in any
case where the Lease is terminated, surrendered or otherwise cancelled, including, without limitation, any disclaimer, repudiation, surrender or other termination (each of these transactions being referred to as an ‘Early Termination’) by
any trustee in bankruptcy of the Tenant or a Transferee, by any court appointed officer, or by the Tenant or a Transferee in connection with any insolvency proceedings; 

 

	 	(e)	if there is an Early Termination, the Tenant and any Transferee (except the bankrupt or insolvent Tenant or Transferee) to whom the Landlord gives notice within 60 days after the Early Termination, shall be considered
to have entered into a lease with the Landlord on the same terms and conditions as are contained in this Lease except that the term of the lease shall commence on the date of the Early Termination and shall expire on the date this Lease would have
expired but for the Early Termination, and 

  

	 	(t)	notwithstanding the effective date of any permitted Transfer as between the Tenant and the Transferee, all Rent for the month in which such effective date occurs shall be paid in advance by the Tenant so that the
Landlord will not be required to accept partial payments of Rent for such month from either the Tenant or the Transferee. 

  

	12.4	Corporate Records 

 Upon the Landlord’s request, the Tenant shall: (a) deliver a statutory
declaration by one of its senior officers setting forth the details of its corporate and capital structure, (b) make available to the Landlord or its representatives all of its corporate or partnership records, as the case may be, for
inspection at all times, in order to ascertain whether any Change of Control has occurred; and (c) cause the Indemnifier(s), if any, to provide any of the foregoing in respect of such Indemnifier(s). 

 

	12.5	Permitted Transfers 

 Notwithstanding Section 12.1 and provided that the Required Conditions are
satisfied and there is not then an Event of Default, the Tenant shall have the right on prior written notice to the Landlord, but without being required to obtain the Landlord’s consent, to effect a Transfer in compliance with Section 12.3
in favour of a Permitted Transferee and the Landlord’s right to terminate shall not apply to such a Transfer. 
  

	12.6	No Advertising 

 The Tenant shall not advertise that the whole or any part of the Premises are available
for a Transfer and shall not permit any broker or other Person to do so unless the text and format of such advertisement is approved in writing by the Landlord. No such advertisement shall contain any reference to the rental rate of the Premises.

  

	12.7	Sales or Dispositions by Landlord 

 The Landlord shall have the unrestricted right to sell, transfer,
lease, license, charge or otherwise dispose of all or any part of its interest in the Project or any interest of the Landlord in this Lease. In the event of any sale, transfer, lease or other disposition the Landlord shall thereupon, and without
further agreement, be released of all liability under this Lease arising from and after such disposition but only to the extent the purchaser or other transferee agrees to assume the Landlord’s obligations under this Lease. If required by the
Landlord in connection with any sale, transfer, charge or other disposition the Tenant shall, within five Business Days of request, provide to the Landlord, prospective purchasers and Mortgagees and their respective agents and consultants, access to
the current financial statements of the Tenant and any Indemnifier. If the Tenant is listed on a recognized stock exchange in Canada or the United States, the Tenant agrees to provide instead copies of the Tenant’s annual reports, quarterly
reports and all other publicly distributed reporting materials. 
 

ARTICLE 13 - LANDLORD FINANCING AND STATUS CERTIFICATES 
  

	13.1	Subordination and Postponement 

  

	 	(a)	 This Lease and the rights of the Tenant in this Lease shall be subject and subordinate to any and all Mortgages and the Tenant, on request by and
without cost to the Landlord, shall, within five Business Days after such request, execute and deliver any and all instruments required by the 

  
 24 

	 	
Landlord to evidence such subordination. Upon request by the Tenant at the time of any request for confirmation of subordination, the Landlord shall make reasonable efforts to obtain from any
Mortgagee an acknowledgement and assurance in writing addressed to the Tenant, whereby such Mortgagee acknowledges that, in the event of any such Mortgagee realizing upon the security, it will not disturb the Tenant and will permit the Tenant to
remain in possession under this Lease in accordance with its terms, so long as the Tenant is not in default. 

  

	 	(b)	The Landlord, as to any Mortgage, and a Mortgagee, as to any Mortgage held by it may, by notice to the Tenant, elect that this Lease and the rights of the Tenant hereunder shall be prior to such Mortgage(s) and the
Tenant, on request by and without cost to the Landlord, shall, within five Business Days after such request, execute and deliver any and all instruments required by the Landlord or the Mortgagee, as the case may be, to confirm priority to this Lease
over the Mortgage(s). 

  

	13.2	Attornment 

 At any time after any of the following has occurred: 

 

	 	(a)	if a Mortgagee delivers a notice of attornment; 

  

	 	(b)	if a Mortgagee shall take possession of the Building or the Premises; or 

  

	 	(c)	if the interest of the Landlord is transferred to any Person (in this Article referred to as a “Purchaser”) by reason of foreclosure or other proceedings for enforcement of any Mortgage, or by delivery of a
conveyance, 

 the Tenant shall, at the option of the Mortgagee or the Purchaser, as the case may be, exercisable by notice in writing to the
Tenant, be deemed to have attorned to the Mortgagee or the Purchaser, as the case may be, upon receipt of such notice. The Landlord, the Mortgagee or the Purchaser, as the case maybe, may require the Tenant to enter into all instruments required by
the Landlord, the Mortgagee or the Purchaser, as the case may be, to confirm such attornment. Upon such attornment the obligations of the Tenant under this Lease shall continue in full force and effect upon all the same terms, conditions and
covenants in this Lease. 
  

	13.3	Status Certificates 

 The Tenant shall at any time and from time to time execute and deliver to the
Landlord, or as the Landlord, a Mortgagee or a Purchaser may direct, within five Business Days after it is requested, a certificate of the Tenant, in the form supplied, addressed to the Landlord, the Mortgagee or the Purchaser, as the case may be,
and/or any prospective purchaser, lessor or Mortgagee, certifying such particulars, information and other matters in respect of the Tenant (including its financial standing), the Premises and this Lease that the Landlord, the Mortgagee or the
Purchaser, as the case may be, may request~ The Tenant will be liable for damages to the Landlord for failure to execute and deliver the requested certificate. Failure to execute the requested certificate within the stipulated five Business Day
period is a default under this Lease and the Landlord may, at its option, terminate this Lease without incurring any liability for so doing. 
  

	13.4	Reliance 

 Notwithstanding that a Mortgagee or a Purchaser is not a party to this Lease, it shall be
entitled to rely upon and enforce the provisions of this Lease which are stated to be for its benefit and, without limitation, the Mortgagee shall be entitled to act as agent for the Landlord to the extent necessary to enforce any such provisions.

 ARTICLE 14 - DAMAGE, DESTRUCTION, DEMOLITION, EXPROPRIATION 

 

	14.1	Damage to Premises 

 If all or any material part of the Premises is rendered untenantable or completely
inaccessible by damage from fire or other casualty to the Building or Project, then: 
  

	 	(a)	if in the opinion of the Expert, the damage can be substantially repaired under Applicable Laws within 180 days from the date of such casualty (employing normal construction methods without overtime or other premium),
the Landlord shall forthwith repair such damage other than damage to Leasehold Improvements and any other property that is not the responsibility of or is not owned by Landlord, and 

  

	 	(b)	if in the opinion of the Expert, the damage cannot be substantially repaired under Applicable Laws within 180 days from the date of such casualty (employing normal construction methods without overtime or other
premium), then: 

  

	 	(i)	the Landlord may elect to terminate this Lease as of the date of such casualty by notice delivered to the Tenant not more than 20 days after receipt of the Expert’s opinion; and 

 

	 	(ii)	if such damage occurs during the last two Lease Years of the Term, the Tenant may elect to terminate this Lease as of the date of such casualty by notice delivered to Landlord not more than 20 days after receipt of the
Expert’s opinion, 

  
 25 

 failing which the Landlord shall forthwith repair such damage other than damage to Leasehold Improvements or
property that is not the responsibility of or is not owned by landlord 
  

	14.2	Abatement 

 If the Landlord is required to repair damage to the Premises under Section 14.1 the
Basic Rent payable by the Tenant shall be proportionately reduced to the extent that the Premises are rendered untenantable or inaccessible, from the date of the casualty until 30 days after completion by the Landlord of the repairs to the Premises
or until the Tenant again uses the Premises (or the part thereof rendered untenantable), whichever first occurs. The Tenant shall effect its own repairs as soon as possible after completion of the Landlord’s repairs. Notwithstanding the
foregoing, there shall be no abatement or reduction of Rent where the Landlord’s repairs to the Premises take less than ten days to complete after the damage occurs. 
  

	14.3	Termination Rights 

 Notwithstanding anything else contained in this Lease, if: (a) the Building is
partially destroyed or damaged so as to affect 25% or more of the Rentable Area of the Building; or (b) in the opinion of the Expert the Building is unsafe or access or services are affected and, in either case, cannot be substantially repaired
under Applicable Laws within 180 days from the date of such casualty (employing normal construction methods without overtime or other premium); or (c) the proceeds of insurance are substantially insufficient to pay for the costs of repair or
rebuilding or are not payable to or received by the Landlord; or (d) any Mortgagee(s) or other Person entitled to the insurance proceeds shall not consent to the repair and rebuilding, then the Landlord may terminate this Lease by giving to the
Tenant notice of such termination within 60 days of the damage or destruction, in which event the Tem shall cease and be at an end as of the date of such damage or destruction and the Rent and all other payments for which the Tenant is liable under
the terms of this Lease shall be apportioned and paid in full to the date of termination (subject to any abatement under Section 14.2). 
  

	14.4	Landlord’s Rights on Rebuilding 

 In the event of damage to the Building and if this Lease is not
terminated in accordance with Sections 14.1 or 14.3, the Landlord shall forthwith repair any damage to the Building, but only to the extent of the Landlord’s obligations under the terms of the various leases for premises in the Building
(including this Lease) and exclusive of any tenant’s responsibilities with respect to such repair. In repairing or rebuilding the Building or the Premises the Landlord may use drawings, designs, plans and specifications other than those used in
the original construction and may alter or relocate the Building, the Common Areas and Facilities or any part thereof, and may alter or relocate the Premises, provided that the Building as repaired or rebuilt is of a similar standard and the
Premises as altered or relocated shall be of approximately the same size as the original Premises. 
  

	14.5	Landlord’s Demolition Rights 

 Despite any other provisions of this Lease, if the Landlord intends
to demolish or renovate substantially the Building or a substantial portion of the Building, the Landlord may terminate this Lease on not less than 180 days’ notice to the Tenant. The Tenant shall on the date set out in the notice from the
Landlord vacate the Premises in accordance with the terms of this Lease. Also on such date, the Term shall cease and be at an end and the Rent and all other payments for which the Tenant is liable under the terms of this Lease shall be apportioned
and paid in full to the date of termination. 
  

	14.6	Expropriation 

 The Landlord and the Tenant shall co-operate in respect of any expropriation of all or
any part of the Premises or the Lands and Building so that each party may receive the maximum award to which it is entitled in law. If the whole or any part of the Premises or of the Lands and Building are expropriated, as between the parties
hereto, their respective rights and obligations under this Lease shall continue until the day on which the expropriating authority takes possession thereof. If, in the case of partial expropriation of the Premises this Lease is not frustrated by
operation of governing law and such expropriation does not render the remaining part of the Premises untenantable for the purposes of this Lease, the Tenant and the Landlord shall restore the part not so taken in accordance with their respective
repair obligations under the provisions of Sections 14.l(a) and 14.2 of this Lease. In this Section 14.6 the word “expropriation” shall include a sale by the Landlord to any authority with powers of expropriation, in lieu of or under
threat of expropriation. 
 
 ARTICLE 15 - DEFAULT AND REMEDIES

  

	15.1	Events of Default 

 Any of the following constitutes an Event of Default under this
Lease: 
  

	 	(a)	any Rent (which term for this Article 15 shall include Rental Taxes) is in arrears and is not paid within five days after notice from the Landlord; 

  
 26 

	 	(b)	the Tenant has breached any of its obligations in this Lease and, if such breach is capable of being remedied and is not otherwise listed in this Section 15.1, after notice from the Landlord: 

 

	 	(i)	the Tenant fails to remedy such breach within ten days (or such shorter period as may be provided in this Lease); or 

  

	 	(ii)	if such breach cannot reasonably be remedied within ten days or such shorter period, the Tenant fails to commence to remedy such breach within such ten days or shorter period or thereafter fails to proceed diligently to
remedy such breach; 

  

	 	(c)	the Lease or any goods, chattels or equipment of the Tenant is seized, taken or exigible in execution or in attachment or if a writ of execution or enforcement is issued against the Tenant and such writ is not stayed or
vacated within ten days after the date of such issue; 

  

	 	(d)	the Tenant or any Indemnifier becomes insolvent or commits an act of bankruptcy or takes the benefit of any statute for bankrupt or insolvent debtors or makes any proposal, assignment, compromise or arrangement with its
creditors, or if a receiver is appointed for all or part of the business, property, affairs or revenues of the Tenant; 

  

	 	(e)	the Tenant makes a bulk sale of its goods (other than in conjunction with a Transfer approved by the Landlord) or moves or commences, attempts or threatens to move its goods, chattels and equipment out of the Premises
(other than in the normal course of its business); 

  

	 	(f)	the Tenant fails to take possession of and occupy the Premises on the Commencement Date, or if thereafter the Tenant abandons or attempts to abandon the Premises or ceases to conduct business from the Premises, or the
Premises become vacant or substantially unoccupied for a period of ten consecutive days; or 

  

	 	(g)	the Tenant purports to effect a Transfer other than in compliance with the provisions of this Lease. 

  

	15.2	Remedies 

 If and whenever an Event of Default occurs, the Landlord shall have the following rights and
remedies, exercisable immediately and without further notice and at any time while the Event of Default continues: 
  

	 	(a)	to terminate this Lease and re-enter the Premises. The Landlord may remove all Persons and property from the Premises and store such property at the expense and risk of the Tenant or sell or dispose of such property in
such manner as the Landlord sees fit without notice to the Tenant~ Notwithstanding any termination of this Lease, the Landlord shall be entitled to receive Rent and all Rental Taxes up to the time of termination plus accelerated Rent as provided in
this Lease and damages including, without limitation: (i) damages for the loss of Rent suffered by reason of this Lease having been prematurely terminated; (ii) costs of reclaiming, repairing and re-leasing the Premises; and
(iii) legal fees and disbursements on a solicitor and client basis; 

  

	 	(b)	to enter the Premises as agent of the Tenant and to relet the Premises for whatever length of time and on such terms as the Landlord in its discretion may determine including, without limitation the right to:
(i) take possession of any property of the Tenant on the Premises; (ii) store such property at the expense and risk of the Tenant; (iii) sell or otherwise dispose of such property in such manner as the Landlord sees fit; and
(iv) make alterations to the Premises to facilitate the reletting. The Landlord shall receive the rent and proceeds of sale as agent of the Tenant and shall apply the proceeds of any such sale or reletting first, to the payment of any expenses
incurred by the Landlord with respect to any such reletting or sale, second, to the payment of any indebtedness of the Tenant to the Landlord other than Rent and third, to the payment of Rent in arrears, with the residue to be held by the Landlord
and applied to payment of future Rent as it becomes due and payable. The Tenant shall remain liable for any deficiency to the Landlord; 

  

	 	(c)	to remedy or attempt to remedy the Event of Default for the account of the Tenant and to enter upon the Premises for such purposes. The Landlord shall not be liable to the Tenant for any loss, injury or damages caused
by acts of the Landlord in remedying or attempting to remedy the Event of Default. The Tenant shall pay to the Landlord, on demand, all expenses incurred by the Landlord in remedying the Event of Default, together with an administration fee of 15%
and interest at the Default Rate from the date such expense was incurred by Landlord; 

  

	 	(d)	to recover from the Tenant all damages, costs and expenses incurred by the Landlord as a result of the Event of Default including any deficiency between those amounts which would have been payable by the Tenant for the
portion of the Term following such termination and the net amounts actually received by the Landlord during such period of time with respect to the Premises; and 

  

	 	(e)	to recover from the Tenant the full amount of the current month’s Rent together with the next three months’ instalments of Rent, which shall immediately become due and payable as accelerated rent.

  
 27 

	15.3	Distress 

 Notwithstanding any provision of this Lease or any provision of any present or future
Applicable Laws, none of the goods, chattels or trade fixtures on the Premises at any time during the Term shall be exempt from levy by distress for Rent in arrears, and the Tenant waives any such exemption. If the Landlord makes any claim against
the goods and chattels of the Tenant by way of distress this provision may be pleaded as an estoppel against the Tenant in any action brought to test the right of the Landlord to levy such distress. 

 

	15.4	Interest and Costs 

 The Tenant shall pay to the Landlord upon demand: (a) interest at the Default
Rate on all Rent required to be paid hereunder from the due date for payment until fully paid and satisfied; and (b) the Landlord’s then current administration charge for each notice of default given by the Landlord to the Tenant under
this Lease. The Tenant shall pay and indemnify the Landlord against damages, costs and expenses (including, without limitation, all legal fees on a solicitor and client basis) incurred in enforcing the terms of this Lease, or with respect to any
matter or thing which is the obligation of the Tenant under this Lease, or in respect of which the Tenant has agreed to insure or to indemnify the Landlord. 
  

	15.5	Remedies Cumulative 

 No reference to or exercise of any specific right or remedy by the Landlord shall
prejudice or preclude the Landlord from exercising or invoking any other remedy, whether allowed under this Lease or generally at law or in equity, and the express provisions of this Lease as to certain rights and remedies are not to be interpreted
as excluding any other or additional rights and remedies available to the Landlord generally at law or in equity. 
 ARTICLE 16 -
MISCELLANEOUS 
  

	16.1	Relationship of Parties 

 Nothing contained in this Lease shall create any relationship between the
parties other than that of landlord and tenant, and, without limitation, nothing in this Lease shall be construed to constitute the Landlord and the Tenant as partners, joint venturers or members of a joint or common enterprise. 

 

	16.2	Consent Not to be Unreasonably Withheld 

 Except as otherwise specifically provided in this Lease, the
Landlord and the Tenant, and each Person acting for them, in granting a consent or approval or making a determination, designation, calculation, estimate, conversion or allocation under this Lease, will act reasonably and in good faith and each
Expert or other professional Person employed or retained by the Landlord will act in accordance with the applicable principles and standards of such Person’s profession; however, the foregoing shall not apply in respect of any actions taken by
or on behalf of the Landlord under Article 15. The Tenant’s sole remedy against the Landlord in respect of any breach or alleged breach of this Section shall be an action for specific performance and, without limitation, the Landlord shall not
be liable for damages and the Tenant shall not be entitled to any other rights or remedies. 
  

	16.3	Overholding 

 The Tenant has no right to remain in possession of the Premises after the end of the Term.
If the Tenant remains in possession of the Premises after the end of the Term with the consent of the Landlord but without entering into a new lease or other agreement then, notwithstanding any statutory provisions, legal presumption or
reasonableness requirement to the contrary, there shall be no tacit renewal of this Lease or the Term and the Tenant shall be deemed to be occupying the Premises as a tenant from month to month (with either party having the right to terminate such
month to month tenancy at any time on 30 days’ notice, whether or not the date of termination is at the end of a rental period) at a monthly Basic Rent payable in advance on the first day of each month equal to
•double• one hundred and fifty percent (150%) of the monthly amount of Basic Rent payable during the last month of the Term (or which would have been payable but for any discount or rent-free period applicable
to such last month) and otherwise upon the same terms, covenants and conditions as in this Lease insofar as these are applicable to a monthly tenancy and, for greater certainty, including liability for all Additional Rent. 

  

	16.4	Registration 

 Neither the Tenant nor anyone on the Tenant’s behalf or claiming under the Tenant
(including any Transferee) shall register this Lease or any Transfer against the Lands. The Tenant may at its sole cost register a notice or caveat of this Lease provided that: (a) a copy of the Lease is not attached; (b) no financial
terms are disclosed; (c) the Landlord gives its prior written approval to the notice or caveat; and (d) the Tenant pays the Landlord’s costs on account of the matter. The Landlord may limit such registration to one or more parts of
the Lands. Upon the expiration or other termination of the Term the Tenant shall immediately discharge or otherwise vacate any such notice or caveat at its sole cost. If any part of the Lands which in the opinion of the Landlord are surplus is
transferred, the Tenant shall forthwith at the request of the Landlord discharge or otherwise vacate any such notice or caveat as it relates to such part. If any part of the Lands are made subject to any easement, right-of-way or similar right, the
Tenant at its sole cost shall immediately at the request of the Landlord, which request the Landlord may make in its sole discretion, postpone its registered interest to such easement, right-of-way or similar right. 

  
 28 

 16.5 Unavoidable Delay 

If any party is bona fide delayed, or hindered in or prevented from the performance of any term, covenant or act required by this Lease by reason of any cause
beyond the control of the patty affected including, without limitation, strikes, lockouts or other labour disputes, the enactment, amendment or repeal of any Applicable Laws, the failure of any existing tenant or occupant to vacate the Premises,
shortages or unavailability of labour or materials, riots, insurrection, sabotage, rebellion, war, acts of terrorism, act of God, or any other similar reason (“Unavoidable Delay”), then performance of such term, covenant or act is excused
for the period of the delay and the party so delayed, hindered or prevented shal1 be entitled to perform such term, covenant or act within the appropriate time period after the expiration of the period of such delay. However, the provisions of this
Section do not operate to excuse the Tenant from the prompt payment of Rent and any other payments required by this Lease or from vacating the Premises as and when required pursuant to any provision of this Lease and Unavoidable Delay shall not
include any delay caused by the parties’ default or act or omission, any delay avoidable by the exercise of reasonable care by such patty or any delay caused by lack of funds of such party. The Landlord shall also be excused from the
performance of any term, covenant or act required hereunder if the performance of such item would be in conflict with any directive, policy or request of any governmental or quasi-governmental authority in respect of any energy, conservation, safety
or security matter. 
  

	16.6	Decisions of Experts; Arbitration 

 The decision of any Expert whenever provided for under this Lease and
any certificate of an Expert shall be final and binding on the parties and there shall be no further right of dispute or appeal. 
 Wherever under any
provision of this Lease it is stated that a matter is to be determined by Arbitration, it shall be determined by a single arbitrator appointed by the parties. If the parties cannot agree on a single arbitrator, then, upon the application of either
party, a Justice of the superior court of the province in which the Premises are situate shall appoint an arbitrator whose sole determination shall be final. The arbitrator shall be a disinterested person of recognized competence in the real estate
business where the Premises are situate. The expense of such arbitration shall be home equally by the Landlord and the Tenant. 
  

	16.7	Notices 

 Any notice, demand, statement or request (“Notice”) required or permitted to be given
under this Lease shall be in writing and shall be deemed to have been duly given if personally delivered, delivered by courier or mailed by registered prepaid post, in the case of Notice to the Landlord, to it at the address set out in
Section 1.1(a)(ii) and in the case of Notice to the Tenant, to it at the Premises. Notice may not be given by facsimile transmission, electronic mail or any other electronic communication. 

Any such Notice given in accordance with the above requirements shall be deemed to have been given, if mailed, on the fifth day following the date of such
mailing or, if delivered, on the day on which it was delivered so long as such delivery was prior to 5:00 p.m. on a Business Day (and, if after 5:00 p.m. or if any such day is not a Business Day, then it shall be deemed to have been delivered on the
next Business Day). Either party may from time to time by Notice change the address to which notices to it are to be given. Notwithstanding the foregoing, during any interruption or threatened interruption in postal services, any Notice shall be
personally delivered or delivered by courier. If a copy of any Notice to the Tenant is to be sent to a second address or to another Person other than the Tenant, the failure to give any such copy shall not vitiate the delivery of the Notice to the
Tenant. 
  

	16.8	Confidentiality 

 The Tenant shall keep confidential all financial information in respect of this Lease,
provided that it may disclose such information to its auditors, consultants and professional advisors so long as they have first agreed to respect such confidentiality. 
  

	16.9	Power, Capacity and Authority 

 The Landlord and the Tenant covenant, represent and warrant to each other
that they have the power, capacity and authority to enter into this Lease and to perform its obligations hereunder and that there are no covenants, restrictions or commitments given by it which would prevent or inhibit it from entering into this
Lease. 
 16.10 Liability of Landlord 
 Any liability of
the Landlord under this Lease shall be limited to its interest in the Building from time to time. If the Landlord consists of more than one Person, the liability of each such Person shall be several and be limited to its percentage interest in the
Building. 

  
 29 

 SCHEDULES 
  

			
	“A”	  	Building Specific Information
		
	“B”	  	Sketch Showing Premises
		
	“C”	  	Rules and Regulations
		
	“D”	  	Indemnity Agreement
		
	“E”	  	Condition of Premises
		
	“F”	  	Environmental Matters

 IN WITNESS WHEREOF the parties hereto have executed this Lease. 

 

							
		 		 	SUN LIFE ASSURANCE COMPANY OF CANADA
		 		 	by its duly authorized Agent
		 		 	BENTALL LIMITED PARTNERSHIP
		 		 	by its General Partner, Bentall G.P. Ltd.
				
		 		 	Per:	 	 

  

		 		 	Name:	 	
		 		 	Title:	 	
				
	 We have the authority
 to bind the
corporation
	 		 	Per:	 	 

  

		 		 	Name:	 	
		 		 	Title:	 	
			
		 		 	AQUINOX PHARMACEUTICALS INC.
		 		 	(Tenant)
				
		 		 	Per:	 	 

  

		 		 	Name:	 	
		 		 	Title:	 	
				
	 I/We have the authority
 to bind the
corporation
	 		 	Per:	 	  

		 		 	Name:	 	
		 		 	Title:	 	

  
 30 

 SCHEDULE “A” BUILDING - SPECIFIC INFORMATION 

Part 1: Legal Description of Building Lands: 
 Parcel
Identifier. 016-649-427 
 Strata Lot 1, Section 5, Block 4 North, Range 5 West, New Westminster District, Plan NW3337, together with an interest in the
common property in proportion to the unit entitlement of the strata lot as shown on Form 1 
 Part 2: Legal Description of Project Lands, if applicable:

 CRESTWOOD 100 
 Parcel Identifier.
026-048-175 
 Parcel A, Section 5, Block 4 North, Range 5 West, New Westminster District, Plan BCP13483 

CRESTWOOD 300 
 Parcel Identifier~
016-510-135 
 Lot 25, Section 5, Block 4North, Range 5 West, New Westminster District, Plan 86865 

CRESTWOOD 400 
 Parcel Identifier.
016-649-427 
 Strata Lot 1, Section 5, Block 4 North, Range 5 West, New Westminster District, Plan NW3337, together with an interest in the common
property in proportion to the unit entitlement of the strata lot as shown on Form 1 
 CRESTWOOD 500 

Parcel Identifier. 026-020-564 
 Strata Lot 1, Section 5,
Block 4 North, Range 5 West, New Westminster District, Plan NW3337, together with an interest in the common property in proportion to the unit entitlement of the strata lot as shown on Form 1 

CRESTWOOD 600 

Parcel Identifier. 016-649-435 
 Strata Lot 1, Section 5,
Block 4 North, Range 5 West, New Westminster District, Plan NW3337, together with an interest in the common property in proportion to the unit entitlement of the strata lot as shown on Form 1 

Part 3: Measurement Standards: 
 Rentable Area includes
all area from exterior of exterior walls and mid-point of demising walls plus a gross-up for building common mechanical, electrical rooms, and other areas for the benefit of more than one tenant including but not limited to vestibules. 

 SCHEDULE “B” SKETCH SHOWING PREMISES 

MAIN FLOOR PREMISES 
  

 

 SECOND FLOOR PREMISES 

 
 

 

 SCHEDULE “C” RULES AND REGULATIONS 

 

	(1)	Security and Safety 

  

	 	(a)	The Landlord may from time to time adopt appropriate systems and procedures for the security and safety of the Building and the tenants and occupants and contents thereof, and the Tenant shall comply with the
Landlord’s requirements in respect of such systems and procedures. 

  

	 	(b)	The Tenant shall participate in fire drills and evacuations of the Building as directed by the Landlord. In the event of an emergency, the Tenant shall vacate the Building if the Landlord or any public authority so
directs in the manner prescribed by the Landlord or such public authority. 

  

	 	(c)	The Tenant shall not keep any inflammable oils or other inflammable, dangerous, corrosive or explosive materials in the Premises or the Project, save and except for amounts used in the Tenants business operations and
kept and used in accordance with all Applicable Laws. 

  

	(2)	Use of Premises 

 The Tenant shall not use or permit the Premises to be used for residential, lodging or
sleeping purposes, or for the storage of personal effects or articles not required for business purposes. The Tenant shall not bring upon the Premises or the Project any equipment, motor or thing which might damage the Building or the Common Areas
and Facilities. The Tenant shall not bring upon the Premises any propane tanks, propane-equipped fork lift tucks, or motor vehicles. 
  

	(3)	Washrooms and Water Fixtures 

 The Tenant shall not use the washrooms or other water fixtures for any
purposes other than those for which they were intended, and no sweepings, rubbish, rags, ashes or other substances shall be thrown into them. 
  

	(4)	Animals and Birds 

 The Tenant shall not bring any animals (except dogs assisting the disabled) or birds
within any part of the Lands or Project without the consent of the Landlord. 
  

	(5)	Antennae, Satellite Dish 

 The Tenant shall not install any radio or television antenna or satellite dish
on any part of the Lands or Project without the prior written consent of the Landlord. 
  

	(6)	Canvassing, Soliciting and Peddling 

 Canvassing, soliciting and peddling in or about the Lands and
Project are prohibited. 
  

	(7)	No Burning Trash 

 The Tenant shall not bum any trash or garbage anywhere on the Project. 

 

	(8)	No Obstructions; Housekeeping 

 The Tenant shall not keep or display any merchandise, supplies,
materials, garbage, refuse or other chattels on, or otherwise obstruct, any part of the Project except as specifically permitted in the Lease. No such merchandise, supplies, materials, garbage, refuse or other chattels shall be allowed to remain on
any loading dock or common area. 
  

	(9)	Employees, Agents and Invitees 

 In these Rules and Regulations, ‘Tenant’ includes the
employees, agents, invitees and licensees of the Tenant and others permitted by the Tenant to use or occupy the Premises. 
  

	(10)	Vehicles 

 No motor vehicles or trailers may be parked overnight at the Premises or the Project. 

 SCHEDULE “D” INDEMNITY AGREEMENT 

INDEMNITY AGREEMENT 
 This Agreement is
made the * day of *, 20*, 
 Between: 

* [name and address of Indemnifier], 

(the “Indemnifier”) 

-and- 
 * [name of Landlord],

 (the “Landlord”). 

WHEREAS: 

A.     The Landlord is the owner of the lands and premises known municipally as * [address of Building] (the
“Building”); and 
 B.     The Indemnifier and * [name of Tenant] (the
“Tenant”) have requested the Landlord to enter into a lease (the “Lease”) dated *, 20* [date of Lease] between the Landlord, as landlord, and the Tenant, as tenant, relating to premises in the Building
and the Landlord has agreed to do so only if the Indemnifier executes and delivers this Agreement in favour of the Landlord; 

NOW THEREFORE for good and valuable consideration (the receipt and sufficiency of which are acknowledged
by the Indemnifier), the Indemnifier agrees with the Landlord as follows: 
 1.     The Indemnifier covenants with the Landlord
that the Tenant will well and truly pay all Rent and other amounts payable under the Lease on the days and at the times and in the manner provided in the Lease, and will observe each and every covenant, proviso, condition, agreement and obligation
contained in the Lease on the part of the Tenant to be performed and observed, and that if any default is made by the Tenant, whether in payment of monies or performance of obligations, the Indemnifier shall forthwith on demand pay to the Landlord
such monies and perform such obligations and pay any and all damages resulting from any non-payment or non-performance. 

2.     The Indemnifier shall be jointly and severally liable with the Tenant for all of the Tenant’s obligations under the
Lease, as if it were separately named as a tenant under the Lease. 
 3.     This Indemnity is absolute and unconditional
and the obligations of the Indemnifier and the rights of the Landlord hereunder shall not be affected or in any way prejudiced or impaired by: (a) any neglect or forbearance by the Landlord in obtaining payment of Rent or other amounts or of
enforcing the provisions of the Lease or the obligations of the Tenant or any waiver or failure to enforce any provision of this Agreement by the Landlord; (b) any extensions of time or other indulgences given by the Landlord to the Tenant;
(c) any amendment of the Lease or other dealing between the Landlord and the Tenant with or without notice to the Indemnifier; (d) any assigning or subletting by the Tenant (with or without the Landlord’s consent); or (e) any
other act or failure to act by the Landlord which would release, discharge or affect the obligations of the Indemnifier if it were a mere surety, with the intent that the obligations of the Indemnifier shall continue and shall not be released,
discharged or reduced or in any way impaired until such time as all of the obligations of the Tenant under the Lease, now existing or to arise at any time in the future, have been fully performed and satisfied. 

4.     The Indemnifier expressly waives notice of the acceptance of this Agreement and all notice of nonperformance, non-payment or
non-observance on the part of the Tenant of the terms, covenants and conditions in the Lease. Without limiting the generality of the foregoing, any notice which the Landlord desires to give to the Indemnifier shall be sufficiently given if
personally delivered, delivered by courier or mailed by registered prepaid post, to the Indemnifier at the Premises, and every such notice is deemed to have been given upon the day it was delivered, or if mailed, on the fifth day following the date
of such mailing. The Indemnifier may designate by notice in writing a substitute address for that set forth above. If two or more persons are named as Indemnifier, such notice given hereunder or under the Lease shall be sufficiently given if
delivered or mailed in the foregoing manner to any one of such Persons. 

  
 1. 

 5.     The obligations of the Indemnifier under this Agreement shall not be released,
discharged or affected by the bankruptcy or insolvency of the Tenant or any proposal made by it to its creditors or any repudiation of the Lease pursuant to the Bankruptcy and Insolvency Act, S.C. 1992, or any successor or similar legislation, or
any disclaimer by any trustee in bankruptcy of the Tenant or by the Tenant ceasing to exist (whether by winding-up, forfeiture, cancellation or surrender of charter, or any other circumstance) or by any event terminating the Lease including a
reentry or termination. If the Lease is terminated prior to the end of its term, except by surrender duly accepted by the Landlord, then, at the option of the Landlord, the Indemnifier shall execute a new lease of the Premises between the Landlord
as landlord and the Indemnifier as tenant for a term equal in duration to the residue of the term remaining unexpired at the date of such termination, and in all other respects upon the same terms and conditions as are set forth in the Lease.

 6.     The Landlord shall not be obliged to exercise its remedies against the Tenant or any other person or against the
Premises or to exhaust any security given by the Tenant before demanding payment of monies or performance of covenants by the Indemnifier. 

7.     The Indemnifier’s obligations under this Agreement bind the Indemnifier and its legal representatives, heirs,
executors, administrators, successors and assigns (as the case may be) and may be assigned by the Landlord, and will benefit and be enforceable by the successors and assigns of the Landlord, and all parties who for the time being have the status of
Landlord under the Lease, whether or not such parties receive a specific assignment of the Lease or of the Indemnifier’s obligations, and whether or not notice of any assignment or change in ownership of the Premises or any project of which the
Premises forms a part is given to the Indemnifier. 
 8.     The grammatical changes required to make the provisions of
this Agreement apply in the plural sense where the Indemnifier comprises more than one person and to corporations, firms, partnerships, or individuals male or female, will be assumed as though in each case fully expressed, and if the Indemnifier
consists of more than one person, the obligations of the Indemnifier shall be deemed to be joint and several obligations of each such person. This Agreement shall be construed in accordance with the laws of the province in which the Building is
located. 
 9.     The Indemnifier acknowledges receipt of a copy of the Lease and covenants, represents and warrants that
it has full power, capacity and authority to enter into this Agreement and to perform its obligations hereunder. No modification of this Agreement shall be effective unless it is in writing and is executed by both the Indemnifier and the
Landlord. 
 10.   Whenever any reference is made in this Agreement to the Lease or the obligations of the Tenant under the Lease,
such reference shall be deemed to include any and all agreements and instruments executed by the Tenant in connection with the Lease or pursuant to the Lease and which relate to the Premises. Any capitalized word or phrase used in and not defined in
this Agreement shall have the meaning given to it in the Lease. 
 IN WITNESS WHEREOF the Landlord and the Indemnifier have duly
executed this Agreement. 

  
 2. 

 SCHEDULE “E” CONDITION OF PREAUSES 

CONSTRUCTION AND COMPLETION OF THE PREMISES

 The Tenant acknowledges and agrees that it is accepting possession of the Premises in an “as is, where is” condition except that the
Landlord shall provide and install to the Premises at the Landlord’s expense and to its base building standard by August 31, 2010 on a reasonable commercial basis, the following work (the “Landlord’s Work”): 

 

	(a)	the work set out in the quote dated November 30, 2009 from Streamline attached hereto as Schedule “E-1”. All mechanical, electrical, HVAC, plumbing systems and hot water supplies shall be properly
separated from the adjacent tenancies as part of the demising work undertaken by the Landlord. Notwithstanding the aforementioned, the boiler and hot water tank located at grid line 8 on the second floor plan attached as Schedule “B”
hereto shall remain in place and not be separated from the adjacent tenancy, at the Landlord’s sole discretion; 

  

	(b)	the work set out on Schedule “E-2” attached hereto; and 

  

	(c)	all base building mechanical, electrical, HVAC and plumbing systems shall be in proper working order at the Commencement Date. 

The Landlord makes no representation or warranty with respect to the usability of any existing phone lines and/or data cables within the Premises. The
Tenant, at its expense, shall be responsible for all modifications required to reuse such phone lines and/or data cables. The Tenant shall be responsible for its own improvements to the Premises (the “Tenant’s Work”) and shall
complete such Tenant’s Work during the Fixturing Period. Should the Tenant require additional utilities, additional heating, ventilation or air conditioning because of the nature of its business, in excess of those already provided to the
Premises, then the Tenant shall be responsible for the cost of installing and/or supplying such additional utilities, subject to the Landlord’s prior approval. The Tenant’s Work is subject to the Landlord’s prior written
approval and shall be made in accordance with Section 9.2 of the Lease the and the Crestwood Commerce Centre Tenant Guidelines. It is understood that the Landlord’s contractor shall be utilized for all changes to the mechanical,
electrical and life safety systems. All costs associated with the Tenant’s Work shall be borne solely by the Tenant, including design and consultants’ fees. The Tenant will be responsible for obtaining all necessary approvals and
building permits from regulatory authorities for the commencement and completion of the Tenant’s Work. No Tenant’s Work shall commence until the Landlord receives proof of the Tenant’s insurance. All terms of the Lease shall be
applicable from the date the Tenant takes possession of the Premises including the Tenant’s obligations to pay for all utilities and services, save for the payment of Basic Rent and the Tenant’s share of Property Taxes and Operating
Costs which shall be payable as of the Commencement Date. 

 SCHEDULE “E-2” LANDLORD’S WORK 

The Landlord shall coordinate removal and/or correction of the following existing installations: 

 

	1.	Removal of the fenced storage located directly behind demising wall (7) as indicated on the main floor plan of Schedule “B” attached hereto. 

 

	2.	Cap or seal the electrical supply to the compressor cage located behind demising wall (6) as indicated on the main floor plan of Schedule “B” attached hereto 

The Landlord shall coordinate correction of the following existing installations: 

 

	1.	Repair/replace cracked heat exchanger in shipping receiving area marked “SUPPLY” located between demising walls (7) and (S) at the rear of the Premises as indicated on the main floor plan of
Schedule “B” attached hereto. 

  

	2.	Electrical wiring from the electrical panels located directly adjacent to demising wall (6) north side at the rear of the Premises as indicated on the main floor plan of Schedule “B” attached hereto
will be reconnected to supply power to the lab areas located between demising walls (7) and (5) as indicated on the main floor plan of Schedule “B” attached hereto. 

 

	3.	Electrical power to be restored to fume hood located in lab room marked “LAB” located directly adjacent to demising wall (6) as indicated on the main floor plan of Schedule “B” attached
hereto. 

  

	4.	Correct exposed wiring in first aid room ceiling marked “F.A.” located between demising walls (6) and (7) as indicated on the main floor plan of Schedule “B” attached hereto.

  

	5.	Restore power to the south wing of the office area of the Premises between demising walls (S) and (9) as indicated on the second floor plan of Schedule “B” attached hereto.

  

	6.	All circuit breakers in electrical panels to be correctly mapped. 

  

	7.	Make operational the HVAC system above the south wing of the office located between demising walls (8) and (9) as indicated on the second floor plan of Schedule “B” attached hereto.

 It is understood by the Landlord and the Tenant that it is the Tenant’s sole responsibility to purchase any non-base building
systems from the existing tenant (if required) at the Tenant’s sole cost prior to the expiry of the existing tenant’s lease. 

 SCHEDULE “F” ENVIRONMENTAL MATTERS 

 

	1.	Representations and Warranties of Tenant 

 Except as may be set out elsewhere in this Schedule,
the Tenant represents and wan-ants as of the date of this Lease that: 
  

	 	(a)	the Tenant has obtained all governmental approvals for its intended operation at the Premises required by any applicable Environmental Laws; 

 

	 	(b)	subject to paragraph 4 below, the Tenant intends to use at the Premises no hazardous, dangerous, toxic or harmful substances or materials, except for limited quantities of cleaning fluids, solvents,
batteries or similar products or substances ordinarily used by the Tenant and necessary in the conduct of its business; and 

  

	 	(c)	the Tenant is not subject to, has no notice or knowledge of, and is not required to give any notice of any Environmental Claim involving the Tenant and there are no conditions or occurrences which could form
the basis for an Environmental Claim against the Tenant. 

  

	2.	Covenants 

 The Tenant covenants and agrees that 

 

	 	(a)	subject to paragraph 4 below, the Tenant will not bring or permit to be brought or stored on the Project any hazardous, dangerous, toxic or harmful substances or materials, except for limited quantities of
cleaning fluids, solvents, batteries or similar products or substances ordinarily used by the Tenant and necessary in the conduct of its business; 

  

	 	(b)	the Tenant will not emit or discharge or permit to be emitted or discharged from the Project any Contaminant; 

  

	 	(c)	the Tenant shall conduct all its operations on the Project in compliance with all Environmental Laws and it shall conduct such operations in accordance with prudent practices aimed at preventing any adverse effects
as same may be defined under the environmental protection legislation in effect in the province in which the Project is situate, and without limiting the generality of the foregoing, shall obtain all requisite permits issued by environmental
agencies and authorities with respect to its operations on the Project; 

  

	 	(d)	the Tenant shall promptly, at its own expense remove any hazardous, dangerous, toxic or harmful substances brought or permitted to be brought by it upon the Project in a manner that conforms with all laws and
regulations covering the removal and movement of same; 

  

	 	(e)	the Tenant shall, at its own expense, expeditiously remove, remediate, clean up and abate any Contaminant and remedy to the reasonable satisfaction of the Landlord any damage to the Project and any surrounding property
caused by, the presence or removal of any hazardous, dangerous, toxic or harmful substances brought, or permitted to be brought by it, upon the Project or by the emission or discharge by it or anyone permitted by it to be on the Project, of any
Contaminant on or from the Project; 

  

	 	(f)	within five (5) business days notify the Landlord in writing of and provide any reasonably requested documents upon learning of any of the following which arise in connection with the Project: 

 

	 	(i)	any liability for corrective action pursuant to any Environmental Laws; 

  

	 	(ii)	any Environmental Claims; 

  

	 	(iii)	any violation of an Environmental Law; or 

  

	 	(iv)	any environmental health or safety condition which could materially impair the condition of the Project; 

  

	 	(g)	upon the written request of the Landlord, to provide at the Tenant’s expense a report of environmental site assessment of reasonable scope, form and depth by a consultant reasonably acceptable to the Landlord as
to: 

  

	 	(i)	any matter to the extent such matter arises during the Lease term and which may reasonably be believed by the Landlord to form the basis of an Environmental Claim in connection with the Project; and 

 

	 	(ii)	the general environmental condition of the Premises within one hundred and eighty (180) days of the termination date of the Lease. 

 If such a requested environmental report is not delivered within thirty (30) days after
receipt of the Landlord’s request; then the Landlord may arrange for same. The reasonable cost of any assessment arranged for or by the Landlord pursuant to this provision shall be payable by Tenant on demand; 

 

	 	(h)	allow the Landlord or its representatives from time to time at Landlord’s reasonable discretion and expense to inspect the Premises and conduct an environmental site assessment (including invasive soil or ground
water sampling), including, without limitation, to facilitate any other sale or lease of the Premises; and 

  

	 	(i)	provide the Landlord financial assurances adequate to secure the eventual satisfaction of any of the Tenant’s obligations pursuant to this Schedule which have not been satisfied as of the termination date.

  

	3.	Indemnification 

 The Tenant shall indemnify and hold harmless the Landlord from any losses, costs
or damages (including without limitation, reasonable solicitor’s fees and disbursements on a solicitor and his client basis and any penalties or fines) to the extent they arise from events or conditions occurring or existing on
or after the commencement date of this Lease and attributable to the conduct of the Tenant and relating to: 
  

	 	(a)	the presence or disposal of any hazardous, dangerous, toxic or harmful substances or any Contaminant on the Premises; 

  

	 	(b)	the operation or violation of any Environmental Law at the Premises; 

  

	 	(c)	any Environmental Claim in connection with the Premises; or 

  

	 	(d)	the inaccuracy of any representation or the breach by the Tenant of any warranty or covenant in this Schedule. 

These indemnifications shall be binding upon the successors and assigns of the Tenant and enure to the benefit of the Landlord, its directors, officers,
employees and agents and their successors and assigns and shall survive the expiration or termination of this Lease. 
  

	4.	to Use Hazardous Substances 

 Notwithstanding anything to the contrary herein or in the Lease
contained, the Landlord acknowledges and agrees that the Tenant uses certain substances and materials in the conduct of the Tenant’s business which would be considered hazardous, dangerous, toxic or harmful substances or
materials or any Contaminant hereunder. Accordingly, the Landlord hereby consents and agrees to the presence of such hazardous, dangerous, toxic or harmful substances or materials or any Contaminant upon the Project and the Premises,
provided the following conditions are met: 
  

	 	(a)	the Tenant shall only bring upon the Project and upon the Premises such hazardous, dangerous, toxic or harmful substances or materials or any Contaminant as are reasonably required for the conduct of its business
operations within the Premises, and shall forthwith remove from the Project and from the Premises any hazardous, dangerous, toxic or harmful substances or materials or any Contaminant which are no longer required for such business operations;

  

	 	(b)	under no circumstances will the Tenant use the Premises or any portion thereof to stockpile or warehouse such hazardous, dangerous, toxic or harmful substances or materials or any Contaminant, other than in such
reasonable quantities as may be required for its business operations within the Premises; 

  

	 	(c)	the Tenant will comply fully with all Environmental Laws related to the transportation, storage, use and disposal of all hazardous, dangerous, toxic or harmful substances or materials or any Contaminant so brought
upon the Project or the Premises by the Tenant; and 

  

	 	(d)	save for the right to bring such hazardous, dangerous, toxic or harmful substances or materials or any Contaminant upon the Project and the Premises for use as aforesaid, the Tenant shall be bound by all of the other
terms and conditions of this Schedule including, without limitation, the obligation to remedy any damage to the Premises or to the Project caused by the Tenant’s exercise of its rights hereunder. 

 SCHEDULE “C” 

 

			
	

	  	Bentall LP
	  	Project No. 09114
	  	November 30, 2009

 Option 1 

Preliminary Construction Estimate - tenant demising / Improvements 

(Option 1: demising wall along gridline 5 on main floor and second floor) 

#425 - 5600 Parkwood Way, Richmond, B.C. 
 Order of Magnitude -
subject to detailed design, details, and components 
  

																					
	 	  	Qty	 	  	Units	 	  	Cost / Unit	 	  	Total	 	  	 	 
	 Demolition and make good affected areas
	  	 	1	  	  	 	ls	  	  	$	4,000.00	  	  	$	4,000	  	  			
	 Full height demising walls - In warehouse (n/a)
	  	 	0	  	  	 	lf	  	  				  	$	0	  	  			
	 Full height demising walls - In office
	  	 	8	  	  	 	lf	  	  	$	200.00	  	  	$	1,600	  	  			
	 Make good existing fire separation walls / fire dampers?
	  	 	1	  	  	 	ls	  	  	$	6,000.00	  	  	$	6,000	  	  			
	 Revise unit washroom to accessible layout
	  	 	1	  	  	 	ea	  	  	$	8,000.00	  	  	$	8,000	  	  			
	 Electrical - emergency & exit lighting & F/A
	  	 	1	  	  	 	ls	  	  	$	2,500.00	  	  	$	2,500	  	  			
	 Misc. work
	  	 	1	  	  	 	ls	  	  	$	4,000.00	  	  	$	4,000	  	  			
	 Sprinklers
	  	 	1	  	  	 	ls	  	  	$	2,500.00	  	  	$	2,500	  	  			
	 * Electrical
	  				  	 	allow	  	  	$	8,000.00	  	  	$	8,000	  	  			
	 * HVAC
	  				  	 	allow	  	  	$	4,000.00	  	  	$	4,000	  	  			
	 Supervision (half time)
	  	 	3	  	  	 	wks	  	  	$	1,100.00	  	  	$	3,300	  	  			
	 General Conditions (Insur., rentals, clean-up, tol, F/A etc)
	  	 	5	  	  	 	%	  	  				  	$	2,195	  	  			
	 Contractor Profit and Overhead
	  	 	10	  	  	 	%	  	  				  	$	4,610	  	  			
		  				  				  				  	  
	  
	 	  			
	 Total Construction
	  				  				  				  	$	50,705	  	  			
		  				  				  				  	  
	  
	 	  			
	 Planning and design drawings
	  	 	1	  	  	 	ls	  	  	$	5,000.00	  	  	$	5,000	  	  			
	 Permits & disbursements
	  	 	1	  	  	 	ea	  	  	$	2,500.00	  	  	$	2,500	  	  			
	 Contingency
	  	 	5	  	  	 	%	  	  				  	$	2,910	  	  			
		  				  				  				  	  
	  
	 	  			
						
	 Total Project Cost
	  				  				  				  	$	61,115	  	  	 	+GST	  
		  				  				  				  	  
	  
	 	  			
						
	 Cost/Square foot of rentable space
	  	 	22,902	  	  	 	sq ft	  	  				  	$	2.67	  	  			
	  

*  Basic demising costs allowance only. (Existing condition must be checked by distributed trades.)
	 

     

	  
 Not included
	  				  				  				  				  			
	 Telephone/data and security systems & wiring
	   
	  				  				  				  			
	 Signage
	  				  				  				  				  			
	 Landlord / Property Management Fee
	  				  				  				  				  			

  
 

         

 SCHEDULE “D” 

The landlord shall coordinate removal and/or correction of the following existing installations: 

 

	 	1.	Removal of the fenced storage located directly behind demising wall (7) detailed in SCHEDULE “A” 

  

	 	2.	Cap or seal the electrical supply to the compressor cage located behind demising wall (6) detailed in SCHEDULE “A” 

The landlord shall coordinate correction of the following existing Installations: 
  

	 	1.	Repair/replace cracked heat exchanger in shipping receiving area marked “SUPPLY” located between demising walls (7) and (8) at the rear of unit detailed in SCHEDULE “A” 

 

	 	2.	Electrical wiring from the electrical panels located directly adjacent to demising wall (6) north side at the rear of unit detailed in SCHEDULE “A” will be reconnected to supply power to the lab areas
located between demising walls (7) and (5) detailed in SCHEDULE “A” 

  

	 	3.	Electrical power to be restored to fume hood located in lab room marked “LAB” located directly adjacent to demising wall (6) detailed in SCHEDULE “A” 

 

	 	4.	Correct exposed wiring in first aid room ceiling marked “F.A.” ” located between demising walls (6) and (7) detailed in SCHEDULE “A” 

 

	 	5.	Power to the south wing of the office area located between demising walls (8) and (9) detailed in SCHEDULE “A” to be restored 

 

	 	6.	All circuit breakers in electrical panels to be correctly mapped 

  

	 	7.	HVAC system above the south wing of office located between demising walls (8) and (9) detailed in SCHEDULE “A” to be made operational 

It is understood by the Landlord and Tenant that it is the Tenant’s sole responsibility to purchase any non-base building systems from the
existing Tenant (if required) at the Tenant’s sole cost prior to the expiry of the existing tenant’s lease. 

 AMENDMENT TO OFFER TO LEASE AND

LANDLORD CONDITIONS PRECEDENT REMOVAL 

Offer to Lease dated February 15, 2010 between Aquinox Pharmaceuticals Inc. (the “Tenant”) and Sun Life Assurance Company of Canada (the
“Landlord”) for premises at Part Building 400, 5600 Parkwood Way, Richmond, B.C. (the “Offer to Lease”) 
  

Pursuant to the above Offer to Lease, the Landlord and Tenant hereby agree to extend the date for waiver of the conditions precedent contained therein to
May 11, 2010. 
 Furthermore, the Landlord and Tenant hereby agree to amend the Offer to Lease as follows: 

 

	1.	The following wording will be added as Clause 32: 

 “INDEMNITY 

In consideration of the Landlord’s execution of this Offer to Lease, Aquinox Pharmaceuticals (USA) Inc. agrees to indemnity and save harmless the
Landlord with respect to any failure in the Tenant’s observance and performance of all terms, covenants and conditions contained in the Offer to Lease and will execute and deliver (on or before the execution of the Lease) the Landlord’s
standard form Indemnity Agreement with respect to the Tenant’s obligations under the Lease.” 
 Furthermore, the parties agree to remove their
respective conditions precedent contained therein, namely: 
 LANDLORD 

As per Clause 13 of the Offer to Lease: 
  

	 	a.	The Landlord’s senior executive’s final approval; 

  

	 	b.	The Landlord reviewing and approving the cost of any work required to the Demised Premises to meet all applicable building, fire safety or handicap accessibility codes; and 

 

	 	c.	the Landlord reviewing and approving the cost of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy. 

The Landlord also confirms that it has reviewed the Tenant’s financial information in accordance with Clause 10 of the Offer to Lease and the Landlord
hereby removes its condition contained therein. 
 TENANT 

As per Clause 12 of the Offer to Lease: 
  

	 	a.	The approval of the Tenant’s board of directors; 

  

	 	b.	Review and approval of the Lease; 

  

	 	c.	The Tenant finalizing a round of financing in an amount not less than Fourteen Million Five Hundred Thousand dollars ($14,500,000.00) by March 9, 2010; 

	 	d.	The Tenant approving the scope of any work required to the Demised Premises to meet any applicable building, fire safety or handicap accessibility codes; 

 

	 	e.	The Tenant approving the scope of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy; and 

  

	 	f.	The Tenant’s review and approval of the costs associated with the acquisition and restoration (if any) of the existing Tenant’s business and Trade Fixtures. 

The Offer to Lease is now fully binding on and accepted by both the Landlord and Tenant. 

 

									
	SUN LIFE ASSURANCE COMPANY OF CANADA	 		 		 	
	by its duly authorized Agent	 		 		 	Dated this 10th day of May, 2010
	BENTALL LIMITED PARTNERSHIP	 		 		 	
	By its General Partner, Bentall G.P. Ltd.	 		 		 	
					
	PER:	 	 

	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	
					
	PER:	 	  
	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	
				
	AQUINOX PHARMACEUTICALS INC.	 		 		 	Dated this 11th day of May, 2010
					
	PER:	 	 

	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	
					
	PER:	 	  
	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	
				
	AQUINOX PHARMACEUTICALS (USA) INC.	 		 		 	Dated this 11th day of May, 2010
					
	PER:	 	 

  
	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	
					
	PER:	 	  
	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	

 SUBJECT EXTENSION 

CB Richard Ellis Limited 
 #600 - 1111 West Georgia Street 

Vancouver, B.C. 
 V6E 4M3 

Attention: Mr. Kevin Nelson 
  

	Re:	Offer to Lease between Aquinox Pharmaceuticals Inc. (the “Tenant”) and Sun Life Assurance Company of Canada (the “Landlord”) for a portion of the building located at 5600 Parkwood Way, Richmond, BC,
accepted March 3rd, 2010. 

  

The Landlord and Tenant hereby agree to extend the Landlord and Tenant Conditions in the above noted Offer to Lease from March 24th, 2010 until April 7th, 2010. 
 “12.
TENANT’S CONDITIONS 
 This Offer to Lease is subject to: 
  

	 	a.)	The approval of the Tenant’s board of directors; 

  

	 	b.)	Review and approval of the Lease; 

  

	 	c.)	The Tenant finalizing a round of financing in an amount not less than Fourteen Million Five Hundred Thousand Dollars ($14,500,000) by March 9th, 2010;

  

	 	d.)	The Tenant approving the scope of any work required to the Demised Premises to meet any applicable building, fire safety or handicap accessibility codes; 

 

	 	e.)	The Tenant approving the scope of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy; 

  

	 	f.)	The Tenant’s review and approval of the costs associated with the acquisition and restoration (if any) of the existing Tenant’s business and trade fixtures. 

13. LANDLORD’S CONDITIONS 
 This Offer to
Lease is subject to: 
  

	 	a.)	The Landlord’s senior executive final approval; 

  

	 	b.)	The Landlord reviewing and approving the cost of any work required to the Demised Premises to meet any applicable building, fire safety and handicap accessibility codes; and 

 

	 	c.)	The Landlord reviewing and approving the cost of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy.” 

AGREED to and EXECUTED at Vancouver, BC this 26th day of March, 2010. 

 

									
	AQUINOX PHRMACEUTICALS INC.	 		 	
	Per:	 	 

	 		 		 	  
  
  

 
  
  

		 	(Authorized Signatory)	 		 		 	(Witness)
	
	AGREED to and EXECUTED at Vancouver, BC this 26th day of March, 2010.
			
	SUN LIFE ASSURANCE COMPANY OF CANADA	 		 	
					
	Per:	 	 

	 		 		 	  
  
  

 
  

		 	(Authorized Signatory)	 		 		 	(Witness)ex10-1.htm

 

Exhibit 10.1

 

FIRST ORIGINAL

	
Norwegian Shipbrokers' Association's

Memorandum of Agreement for sale and

purchase of ships. Adopted by BIMCO in 1956.

Code-name

SALEFORM 2012

Revised 1966, 1983 and 1986/87, 1993 and 2012

MEMORANDUM OF AGREEMENT

 

	
1

	  	
Dated: 22nd January 2014

	  	  	  
	
2

	  	
Gulf Eyadah Corporation, 19th Floor, Banco General Towers, Aquilino de la Guardia Street, Marbella, Panama City, Republic of Panama

(Name of sellers), hereinafter called the "Sellers", have agreed to sell, and

	  	  	  
	
3

	  	
DHT Holdings Inc. Clarendon House, 2 Church Street, Hamilton bermuda or guarantee nominee (Name of buyers), hereinafter called the

"Buyers", have agreed to buy:

	  	  	  
	
4

	  	
Name of vessel: MT "GULF EYADAH"

	  	  	  
	
5

	  	
IMO Number: 9310147

	  	  	  
	
6

	  	
Classification Society: LR

	  	  	  
	
7

	  	
Class Notation: +100A1, Double Hull Oil tanker ESP, LI, LMC, IGS, UMS, VECS

	  	  	  
	
8

	  	
Year of Build: 2006___ Builder/Yard: Nantong Cosco KHI Engineeering Co. Ltd, P.R.C.

	  	  	  
	
9

	  	
Flag: Panama Place of Registration: Panama City GT/NT: 159730/96352

	  	  	  
	
10

	  	
hereinafter called the "Vessel", on the following terms and conditions:

	  	  	  
	
11

	  	
Definitions

	
12

	  	
"Banking Days" are days on which banks are open both in the country of the currency stipulated for

	
13

	  	
the Purchase Price in Clause 1 (Purchase Price) and in the place of closing stipulated in Clause 8

	
14

	  	
(Documentation) and Norway and Dubai, U.A.E. (add additional jurisdictions as appropriate).

	  	  	  
	
15

	  	
"Buyers'Nominated Flag State" means (state flag state).

	  	  	  
	
16

	  	
"Class" means the class notation referred to above.

	  	  	  
	
17

	  	
"Classification Society" means the Society referred to above.

	  	  	  
	
18

	  	
"Deposit" shall have the meaning given in Clause 2 (Deposit)

	  	  	  
	
19

	  	
"Deposit Holder" means DNB bank London branch (state name and location of Deposit Holder) or, if left blank, the

	  	  	  
	
20

	  	
Sellers' Bank, which shall hold and release the Deposit in accordance with this Agreement.

	  	  	  
	
21

	  	
"In writing" or "written" means a letter handed over from the Sellers to the Buyers or vice versa, a

	
22

	  	
registered letter, e-mail or telefax.

	  	  	  
	
23

	  	
"Parties" means the Sellers and the Buyers.

	  	  	  
	
24

	  	
"Purchase Price" means the price for the Vessel as stated in Clause 1 (Purchase Price).

	  	  	  
	
25

	  	
"Sellers' Account" means                       (state details of bank account) at the Sellers' Bank.

	  	  	  
	
26

	  	
"Sellers' Bank" means                     (state name of bank, branch and details) or, if left blank, the bank

	
27

	  	
notified by the Sellers to the Buyers for receipt of the balance of the Purchase Price.

	  	  	  
	
28

	  	
1.

	
Purchase Price

	
29

	  	  	
The Purchase Price is US$ 47,500,000- (United States Dollars Forty-Seven Million Five Hundred Thousand only) (state currency and

amount both in words and figures).

	  	  	  
	
30

	  	
2.

	
Deposit

	
31

	  	  	
As security for the correct fulfilment of this Agreement the Buyers shall lodge a deposit of

 

 

  

  

  

 

 

	
32

	  	
% (                         per cent) or, if left blank, 10% (ten per cent), of the Purchase Price (the

	
33

	  	
"Deposit") in an interest bearing account for the Parties with the Deposit Holder within three (3)

	
34

	  	
Banking Days after the date that:

	  	  	  
	
35

	  	
(i) this Agreement has been signed by the Parties and exchanged in original or by e-mail or

	
36

	  	
telefax; and

	  	  	  
	
37

	  	
(ii) the Deposit Holder has confirmed in writing to the Parties that the account has been

	
38

	  	
opened.

	  	  	  
	
39

	  	
The Deposit shall be released in accordance with joint written instructions of the Parties.

	
40

	  	
Interest, if any, shall be credited to the Buyers. Any fee charged for holding and releasing the

	
41

	  	
Deposit shall be borne equally by the Parties. The Parties shall provide to the Deposit Holder

	
42

	  	
all necessary documentation to open and maintain the account without delay.

	  	  	  
	
43

	  	
3.

	
Payment

	  	  	  
	
44

	  	
On delivery of the Vessel, but not later than three (3) Banking Days after the date that Notice of

	
45

	  	
Readiness has been given in accordance with Clause 5 (Time and place of delivery and

	
46

	  	
notices):

	  	  	  
	
47

	  	
(i) the Deposit shall be released to the Sellers; and

	  	  	  
	
48

	  	
(ii) the balance of the Purchase Price and all other sums payable on delivery by the Buyers

	
49

	  	
to the Sellers under this Agreement shall be paid in full free of bank charges to the

	
50

	  	
Sellers' Account.

	  	  	  
	
51

	  	
4.

	
Inspection

	
52

	  	
 

	
(a)  *The Buyers have inspected and accepted the Vessel's classification records. The Buyers

	
53

	  	  	
have also inspected the Vessel at/in Singapore (state place) on about 20th July 2013 (state date) and have

	
54

	  	  	
accepted the Vessel as is where is following this inspection and the sale is outright and definite,subject only

	
55

	  	  	
to the terms and conditions of this Agreement.

	  	  	  	  
	
56

	  	  	
(b) *The Buyers shall have the right to inspect the Vessel's classification records and declare

	
57

	  	  	
whether same are accepted or not within                (state date/period).

	  	  	  	  
	
58

	  	  	
The Sellers shall make the Vessel available for inspection at/in                  (state place/range) within

	
59

	  	  	
                  (state date/period).

	  	  	  	  
	
60

	  	  	
The Buyers shall undertake the inspection without undue delay to the Vessel. Should the

	
61

	  	  	
Buyers cause undue delay they shall compensate the Sellers for the losses thereby incurred.

	  	  	  	  
	
62

	  	  	
The Buyers shall inspect the Vessel without opening up and without cost to the Sellers.

	  	  	  	  
	
63

	  	  	
During the inspection, the Vessel's deck and engine log books shall be made available for

	
64

	  	  	
examination by the Buyers.

	
65

	  	  	
The sale shall become outright and definite, subject only to the terms and conditions of this

	
66

	  	  	
Agreement, provided that the Sellers receive written notice of acceptance of the Vessel from

	
67

	  	  	
the Buyers within seventy-two (72) hours after completion of such inspection or after the

	
68

	  	  	
date/last day of the period stated in Line 59, whichever is earlier.

	  	  	  	  
	
69

	  	  	
Should the Buyers fail to undertake the inspection as scheduled and/or notice of acceptance of

	
70

	  	  	
the Vessel's classification records and/or of the Vessel not be received by the Sellers as

	
71

	  	  	
aforesaid, the Deposit together with interest earned, if any, shall be released immediately to the

	
72

	  	  	
Buyers, whereafter this Agreement shall be null and void.

	  	  	  	  
	
73

	  	  	
*4(a) and 4(b) are alternatives; delete whichever is not applicable. In the absence of deletions,

	
74

	  	  	
alternative 4(a) shall apply.

	  	  	  	  
	
75

	  	
5.

	
Time and place of delivery and notices

	
76

	  	  	
(a) The Vessel shall be delivered and taken over safely afloat at a safe and accessible berth or

	
77

	  	  	
anchorage at/in her current position in Bahamas (state place/range) in the Sellers' option.

 

 

  

  

  

 

 

	
78

	  	  	
Notice of Readiness shall not be tendered before: 29th January 2014                   (date)

	
79

	  	  	
Cancelling Date (see Clauses 5(c), 6 (a)(i), 6(a) (iii) and 14): 15th February 2014

	  	  	  	  
	
80

	  	  	
(b) The Sellers shall keep the Vessel in her current position until time of delivery. Buyers

well informed of the Vessel's itinerary and shall

	
81

	  	  	
provide the Buyers with twenty (20), ten (10),seven (7), five (5) and three (3) days' notice of the date the

	
82

	  	  	
Sellers intend to tender Notice of Readiness and of the intended place of delivery.

	  	  	  	  
	
83

	  	  	
When the Vessel is at the place of delivery and physically ready for delivery in accordance with

	
84

	  	  	
this Agreement, the Sellers shall give the Buyers a written Notice of Readiness for delivery.

	  	  	  	  
	
85

	  	  	
(c) If the Sellers anticipate that, notwithstanding the exercise of due diligence by them, the

	
86

	  	  	
Vessel will not be ready for delivery by the Cancelling Date they may notify the Buyers in writing

	
87

	  	  	
stating the date when they anticipate that the Vessel will be ready for delivery and proposing a

	
88

	  	  	
new Cancelling Date. Upon receipt of such notification the Buyers shall have the option of

	
89

	  	  	
either cancelling this Agreement in accordance with Clause 14 (Sellers' Default) within three (3)

	
90

	  	  	
Banking Days of receipt of the notice or of accepting the new date as the new Cancelling Date.

	
91

	  	  	
If the Buyers have not declared their option within three (3) Banking Days of receipt of the

	
92

	  	  	
Sellers' notification or if the Buyers accept the new date, the date proposed in the Sellers'

	
93

	  	  	
notification shall be deemed to be the new Cancelling Date and shall be substituted for the

	
94

	  	  	
Cancelling Date stipulated in line 79.

	  	  	  	  
	
95

	  	  	
If this Agreement is maintained with the new Cancelling Date all other terms and conditions

	
96

	  	  	
hereof including those contained in Clauses 5(b) and 5(d) shall remain unaltered and in full

	
97

	  	  	
force and effect.

	  	  	  	  
	
98

	  	  	
(d) Cancellation, failure to cancel or acceptance of the new Cancelling Date shall be entirely

	
99

	  	  	
without prejudice to any claim for damages the Buyers may have under Clause 14 (Sellers'

	
100

	  	  	
Default) for the Vessel not being ready by the original Cancelling Date.

	  	  	  	  
	
101

	  	  	
(e) Should the Vessel become an actual, constructive or compromised total loss before delivery

	
102

	  	  	
the Deposit together with interest earned, if any, shall be released immediately to the Buyers

	
103

	  	  	
whereafter this Agreement shall be null and void.

	  	  	  	  
	
104

	  	  	
6.

	
 Divers Inspection / Drydocking

	
105

	  	  	
(a)*

	  
	
106

	  	  	
(i)

	
The Buyers shall have the option at their cost and expense to arrange for an underwater

	
107

	  	  	  	
inspection by a diver approved by the Classification Society prior to the delivery of the

	
108

	  	  	  	
Vessel. Such option shall be declared latest nine (9) days prior to the Vessel's intended

	
109

	  	  	  	
date of readiness for delivery as notified by the Sellers pursuant to Clause 5(b) of this

	
110

	  	  	  	
Agreement. The Sellers shall at their cost and expense make the Vessel available for

	
111

	  	  	  	
such inspection. This inspection shall be carried out without undue delay and in the

	
112

	  	  	  	
presence of a Classification Society surveyor arranged for by the Sellers and paid for by

	
113

	  	  	  	
the Buyers. The Buyers' representative^) shall have the right to be present at the diver's

	
114

	  	  	  	
inspection as observer(s) only without interfering with the work or decisions of the

	
115

	  	  	  	
Classification Society surveyor. The extent of the inspection and the conditions under

	
116

	  	  	  	
which it is performed shall be to the satisfaction of the Classification Society. If the

	
117

	  	  	  	
conditions at the place of delivery are unsuitable for such inspection, the Sellers shall at

	
118

	  	  	  	
their cost and expense make the Vessel available at a suitable alternative place near to

	
119

	  	  	  	
the delivery port, in which event the Cancelling Date shall be extended by the additional

	
120

	  	  	  	
time required for such positioning and the subsequent re-positioning. The Sellers may

	
121

	  	  	  	
not tender Notice of Readiness priorto completion of the underwater inspection.

	  	  	  	  	  
	
122

	  	  	  	
(ii) If the rudder, propeller, bottom or other underwater parts below the deepest load line are

	
123

	  	  	  	
found broken, damaged or defective so as to affect the Vessel's class, then (1) unless

	
124

	  	  	  	
repairs can be carried out afloat to the satisfaction of the Classification Society, the

	
125

	  	  	  	
Sellers shall arrange for the Vessel to be drydocked at their expense for inspection by

	
126

	  	  	  	
the Classification Society of the Vessel's underwater parts below the deepest load line,

	
127

	  	  	  	
the extent of the inspection being in accordance with the Classification Society's rules (2)

	
128

	  	  	  	
such defects shall be made good by the Sellers at their cost and expense to the

	
129

	  	  	  	
satisfaction of the Classification Society without condition/recommendation** and (3) the

	
130

	  	  	  	
Sellers shall pay for the underwater inspection and the Classification Society's

	
131

	  	  	  	
attendance.

 

 

  

  

  

 

 

	
132

	  	
Notwithstanding anything to the contrary in this Agreement, if the Classification Society

	
133

	  	
do not require the aforementioned defects to be rectified before the next class

	
134

	  	
drydocking survey, the Sellers shall be entitled to deliver the Vessel with these defects

	
135

	  	
against a deduction from the Purchase Price of the estimated direct cost (of labour and

	
136

	  	
materials) of carrying out the repairs to the satisfaction of the Classification Society,

	
137

	  	
whereafter the Buyers shall have no further rights whatsoever in respect of the defects

	
138

	  	
and/or repairs. The estimated direct cost of the repairs shall be the average of quotes for

	
139

	  	
the repair work obtained from two reputable independent shipyards at or in the vicinity of

	
140

	  	
the port of delivery, one to be obtained by each of the Parties within two (2) Banking

	
141

	  	
Days from the date of the imposition of the condition/recommendation, unless the Parties

	
142

	  	
agree otherwise. Should either of the Parties fail to obtain such a quote within the

	
143

	  	
stipulated time then the quote duly obtained by the other Party shall be the sole basis for

	
144

	  	
the estimate of the direct repair costs. The Sellers may not tender Notice of Readiness

	
145

	  	
prior to such estimate having been established.

	  	  	  
	
146

	
(iii)

	
If the Vessel is to be drydocked pursuant to Clause 6(a) (ii) and no suitable dry-docking

	
147

	  	
facilities are available at the port of delivery, the Sellers shall take the Vessel to a port

	
148

	  	
where suitable drydocking facilities are available, whether within or outside the delivery

	
149

	  	
range as per Clause 5(a). Once drydocking has taken place the Sellers shall deliver the

	
150

	  	
Vessel at a port within the delivery range as per Clause 5(a) which shall, for the purpose

	
151

	  	
of this Clause, become the new port of delivery. In such event the Cancelling Date shall

	
152

	  	
be extended by the additional time required for the drydocking and extra steaming, but

	
153

	  	
limited to a maximum of fourteen (14) days.

	  	  	  
	
154

	
(b)

	
*The Sellers shall place the Vessel in drydock at the port of delivery for inspection by the

	
155

	
Classification Society of the Vessel's underwater parts below the deepest load line, the extent

	
156

	
of the inspection being in accordance with the Classification Society's rules. If the rudder,

	
157

	
propeller, bottom or other underwater parts below the deepest load line are found broken,

	
158

	
damaged or defective so as to affect the Vessel's class, such defects shall be made good at the

	
159

	
Sellers' cost and expense to the satisfaction of the Classification Society without

	
160

	
condition/recommendation**. In such event the Sellers are also to pay for the costs and

	
161

	
expenses in connection with putting the Vessel in and taking her out of drydock, including the

	
162

	
drydock dues and the Classification Society's fees. The Sellers shall also pay for these costs

	
163

	
and expenses if parts of the tailshaft system are condemned or found defective or broken so as

	
164

	
to affect the Vessel's class. In all other cases, the Buyers shall pay the aforesaid costs and

	
165

	
expenses, dues and fees.

	  	  	  
	
166

	
(c)

	
If the Vessel is drydocked pursuant to Clause 6(a) (ii) or 6(b) above:

	  	  	  
	
167

	
(i)

	
The Classification Society may require survey of the tailshaft system, the extent of the

	
168

	  	
survey being to the satisfaction of the Classification Society surveyor. If such survey is

	
169

	  	
not required by the Classification Society, the Buyers shall have the option to require the

	
170

	  	
tailshaft to be drawn and surveyed by the Classification Society, the extent of the survey

	
171

	  	
being in accordance with the Classification Society's rules for tailshaft survey and

	
172

	  	
consistent with the current stage of the Vessel's survey cycle. The Buyers shall declare

	
173

	  	
whether they require the tailshaft to be drawn and surveyed not later than by the

	
174

	  	
completion of the inspection by the Classification Society. The drawing and refitting of

	
175

	  	
the tailshaft shall be arranged by the Sellers. Should any parts of the tailshaft system be

	
176

	  	
condemned or found defective so as to affect the Vessel's class, those parts shall be

	
177

	  	
renewed or made good at the Sellers' cost and expense to the satisfaction of the

	
178

	  	
Classification Society without condition/recommendation**.

	  	  	  
	
179

	
(ii)

	
The costs and expenses relating to the survey of the tailshaft system shall be borne by

	
180

	  	
the Buyers unless the Classification Society requires such survey to be carried out or if

	
181

	  	
parts of the system are condemned or found defective or broken so as to affect the

	
182

	  	
Vessel's class, in which case the Sellers shall pay these costs and expenses.

	  	  	  
	
183

	
(iii)

	
The Buyers' representative(s) shall have the right to be present in the drydock, as

	
184

	  	
observer(s) only without interfering with the work or decisions of the Classification

	
185

	  	
Society surveyor.

	  	  	  
	
186

	
(iv)

	
The Buyers shall have the right to have the underwater parts of the Vessel cleaned

	
187

	  	
and painted at their risk, cost and expense without interfering with the Sellers' or the

	
188

	  	
Classification Society surveyor's work, if any, and without affecting the Vessel's timely

 

  

  

  

	
189

	  	
delivery. If, however, the Buyers' work in drydock is still in progress when the

	
190

	  	
Sellers have completed the work which the Sellers are required to do, the additional

	
191

	  	
docking time needed to complete the Buyers' work shall be for the Buyers' risk, cost and

	
192

	  	
expense. In the event that the Buyers' work requires such additional time, the Sellers

	
193

	  	
may upon completion of the Sellers' work tender Notice of Readiness for delivery whilst

	
194

	  	
the Vessel is still in drydock and, notwithstanding Clause 5(a), the Buyers shall be

	
195

	  	
obliged to take delivery in accordance with Clause 3 (Payment), whether the Vessel is in

	
196

	  	
drydock or not.

	  	  	  
	
197

	
*6(a) and 6(b) are alternatives; delete whichever is not applicable. In the absence of deletions,

	
198

	
alternative 6(a) shall apply.

	  	  	  
	
199

	
**Notes or memoranda, if any, in the surveyor's report which are accepted by the Classification

	
200

	
Society without condition/recommendation are not to be taken into account.

	  	  	  
	
201

	
7.

	
Spares, bunkers and other items

	
202

	  	
The Sellers shall deliver the Vessel to the Buyers with everything belonging to her on board

	
203

	  	
and on shore. All spare parts and spare equipment including spare tail-end shaft(s) and/or

	
204

	  	
spare propeller(s)/propeller blade(s), if any, belonging to the Vessel at the time of inspection

	
205

	  	
used or unused, whether on board or not shall become the Buyers' property, but spares on

	
206

	  	
order are excluded. Forwarding charges, if any, shall be for the Buyers' account. The Sellers

	
207

	  	
are not required to replace spare parts including spare tail-end shaft(s) and spare

	
208

	  	
propeller(s)/propeller blade(s) which are taken out of spare and used as replacement prior to

	
209

	  	
delivery, but the replaced items shall be the property of the Buyers. Unused stores and

	
210

	  	
provisions shall be included in the sale and be taken over by the Buyers without extra payment.

	  	  	  
	
211

	  	
Library and forms exclusively for use in the Sellers' vessel(s) and captain's, officers' and crew's

	
212

	  	
personal belongings including the slop chest are excluded from the sale without compensation,

	
213

	  	
as well as the following additional items:                                           (include list)

	  	  	  
	
214

	  	
Items on board which are on hire or owned by third parties, listed as follows, are excluded from

	
215

	  	
the sale without compensation:

	  	  	
- GSSM SMS manuals.

	  	  	
- GSSM printed stationary/letter heads/forms etc.

	  	  	
- Original Engineroom & Deck Log books.

	  	  	
- Computer hard drives, server, CDs, DVDs, USBs, Backup Tapes, Back Device/s with Hard

	  	  	
Disk, External Hard Disks (except printer installations CD's)

	  	  	
- Oxy/Act/Freon gas cylinders (unless Buyers can take over Sellers' current rental contracts)

	  	  	
- Life rafts (unless Buyers can take over Sellers' current rental contracts)

	  	  	
- Mobile phone/camera

	  	  	
.

	  	  	
(include list)

	  	  	  
	
216

	  	
Items on board at the time of inspection which are on hire or owned by third parties, not listed

	
217

	  	
above, shall be replaced or procured by the Sellers prior to delivery at their cost and expense.

	  	  	  
	
218

	  	
The Buyers shall take over remaining bunkers and unused lubricating which have not passed

through the Vessel's systems and hydraulic oils and

	
219

	  	
greases in storage tanks and unopened drums and pay either:

	  	  	  
	
220

	  	
(a) *the actual net price (excluding barging expenses) as evidenced by invoices or vouchers; or

	
221

	  	

(b) *the current net market price (excluding barging expenses) at the port and date of delivery

	
222

	  	

of the Vessel or, if unavailable, at the nearest bunkering port,

	  	  	  
	
223

	  	
for the quantities taken over.

	  	  	  
	
224

	  	
Payment under this Clause shall be made at the same time and place and in the same

	
225

	  	
currency as the Purchase Price.

	  	  	  
	
226

	  	
"inspection" in this Clause 7, shall mean the Buyers' inspection according to Clause 4(a) or(b)

	
227

	  	
(Inspection), if applicable. If the Vessel is taken over without inspection, the date of this

	
228

	  	
Agreement shall be the relevant date.

	
229

	  	
*(a) and (b) are alternatives, delete whichever is not applicable. In the absence of deletions

 

  

  

  

 

	
230

	
alternative (a) shall apply.

	
231

	
8.

	
Documentation

	
232

	  	
The place of closing: DNB Bank, London branch

	  	  	  
	
233

	  	
(a) In exchange for payment of the Purchase Price the Sellers shall provide the Buyers with the

	
234

	  	
following delivery documents:

	  	  	  	  
	
235

	  	
(i)

	
Legal Bill(s) of Sale in a form recordable in the Buyers' Nominated Flag State,

	
236

	  	  	
transferring title of the Vessel and stating that the Vessel is free from all mortgages,

	
237

	  	  	
encumbrances and maritime liens or any other debts whatsoever, duly notarially attested

	
238

	  	  	
and legalised orapostilled, as required by the Buyers' Nominated Flag State;

	  	  	  	  
	
239

	  	
(ii)

	
Evidence that all necessary corporate, shareholder and other action has been taken by

	
240

	  	  	
the Sellers to authorise the execution, delivery and performance of this Agreement;

	  	  	  	  
	
241

	  	
(iii)

	
Power of Attorney of the Sellers appointing one or more representatives to act on behalf

	
242

	  	  	
of the Sellers in the performance of this Agreement, duly notarially attested and legalised

	
243

	  	  	
or apostilled (as appropriate);

	  	  	  	  
	
244

	  	
(iv)

	
Certificate or Transcript of Registry issued by the competent authorities of the flag state

	
245

	  	  	
on the date of delivery evidencing the Sellers' ownership of the Vessel and that the

	
246

	  	  	
Vessel is free from registered encumbrances and mortgages, to be faxed or e-mailed by

	
247

	  	  	
such authority to the closing meeting with the original to be sent to the Buyers as soon as

	
248

	  	  	
possible after delivery of the Vessel;

	  	  	  	  
	
249

	  	
(v)

	
Declaration of Class or (depending on the Classification Society) a Class Maintenance

	
250

	  	  	
Certificate issued within three (3) Banking Days prior to delivery confirming that the

	
251

	  	  	
Vessel is in Class free of condition/recommendation;

	  	  	  	  
	
252

	  	
(vi)

	
Certificate of Deletion of the Vessel from the Vessel's registry or other official evidence of

	
253

	  	  	
deletion appropriate to the Vessel's registry at the time of delivery, or, in the event that

	
254

	  	  	
the registry does not as a matter of practice issue such documentation immediately, a

	
255

	  	  	
written undertaking by the Sellers to effect deletion from the Vessel's registry forthwith

	
256

	  	  	
and provide a certificate or other official evidence of deletion to the Buyers promptly and

	
257

	  	  	
latest within four (4) weeks after the Purchase Price has been paid and the Vessel has

	
258

	  	  	
been delivered;

	  	  	  	  
	
259

	  	
(vii)

	
A copy of the Vessel's Continuous Synopsis Record certifying the date on which the

	
260

	  	  	
Vessel ceased to be registered with the Vessel's registry, or, in the event that the registry

	
261

	  	  	
does not as a matter of practice issue such certificate immediately, a written undertaking

	
262

	  	  	
from the Sellers to provide the copy of this certificate promptly upon it being issued

	
263

	  	  	
together with evidence of submission by the Sellers of a duly executed Form 2 stating

	
264

	  	  	
the date on which the Vessel shall cease to be registered with the Vessel's registry;

	  	  	  	  
	
265

	  	
(viii)

	
Commercial Invoice for the Vessel;

	  	  	  	  
	
266

	  	
(ix)

	
Commercial Invoice(s) for bunkers, lubricating and hydraulic oils and greases;

	  	  	  	  
	
267

	  	
(x)

	
A copy of the Sellers' letter to their satellite communication provider cancelling the

	
268

	  	  	
Vessel's communications contract which is to be sent immediately after delivery of the

	
269

	  	  	
Vessel;

	  	  	  	  
	
270

	  	
(xi)

	
Any additional documents as may reasonably be required by the competent authorities of

	
271

	  	  	
the Buyers' Nominated Flag State for the purpose of registering the Vessel, provided the

	
272

	  	  	
Buyers notify the Sellers of any such documents as soon as possible after the date of

	
273

	  	  	
this Agreement; and

	  	  	  	  
	
274

	  	
(xii)

	
The Sellers' letter of confirmation that to the best of their knowledge, the Vessel is not

	
275

	  	  	
black listed by any nation or international organisation.

	  	  	  	  
	
276

	  	
(b) At the time of delivery the Buyers shall provide the Sellers with:

	  	  	  	  
	
277

	  	
(i)

	
Evidence that all necessary corporate, shareholder and other action has been taken by

	
278

	  	  	
the Buyers to authorise the execution, delivery and performance of this Agreement; and

 

  

  

  

	
279

	  	
(ii)

	
Power of Attorney of the Buyers appointing one or more representatives to act on behalf

	
280

	  	  	
of the Buyers in the performance of this Agreement, duly notarially attested and legalised

	
281

	  	  	
or apostilled (as appropriate).

	  	  	  	  
	
282

	  	
(c)  If any of the documents listed in Sub-clauses (a) and (b) above are not in the English

	
283

	  	
language they shall be accompanied by an English translation by an authorised translator or

	
284

	  	
certified by a lawyer qualified to practice in the country of the translated language.

	  	  	  	  
	
285

	  	
(d) The Parties shall to the extent possible exchange copies, drafts or samples of the

	
286

	  	
documents listed in Sub-clause (a) and Sub-clause (b) above for review and comment by the

	
287

	  	
other party not later than              (state number of days), or if left blank, nine (9) days prior to

	
288

	  	
the Vessel's intended date of readiness for delivery as notified by the Sellers pursuant to

	
289

	  	
Clause 5(b) of this Agreement.

	  	  	  	  
	
290

	  	
(e) Concurrent with the exchange of documents in Sub-clause (a) and Sub-clause (b) above,

	
291

	  	
the Sellers shall also hand to the Buyers the classification certificate(s) as well as all plans,

	
292

	  	
drawings and manuals, (excluding ISM/ISPS manuals), which are on board the Vessel. Other

	
293

	  	
certificates which are on board the Vessel shall also be handed over to the Buyers unless the

	
294

	  	
Sellers are required to retain same, in which case the Buyers have the right to take copies.

	  	  	  	  
	
295

	  	
(f) Other technical documentation and plans, etc which may be in the Sellers' possession shall promptly after

	
296

	  	
delivery be forwarded to the Buyers at their expense, if they so request. The Sellers may keep

	
297

	  	
the Vessel's log books and copy of PMS database as available on board will be made available

for Buyer's reference in good faith however with clear understanding that no due/overdue/

Defect/Damages to Machinery/Hull or other equipment shall be referred to Sellers at any stage,

whatever the case may be. PMS database basis previous Vessel's name ("Front Shanghai") but

the Buyers have the right to take copies of same log books.

	  	  	  
	
298

	  	
(g) The Parties shall sign and deliver to each other a Protocol of Delivery and Acceptance

	
299

	  	
confirming the date and time of delivery of the Vessel from the Sellers to the Buyers.

	  	  	  
	
300

	
9.

	
Encumbrances

	
301

	  	
The Sellers warrant that the Vessel, at the time of delivery, is free from all charters,

	
302

	  	
encumbrances, mortgages, arrests and maritime liens or any other debts whatsoever, and is not subject

	
303

	  	
to Port State or other administrative detentions. The Sellers hereby undertake to indemnify the

	
304

	  	
Buyers against all consequences of claims made against the Vessel which have been incurred

	
305

	  	
prior to the time of delivery.

	  	  	  
	
306

	
10.

	
Taxes, fees and expenses

	
307

	  	
Any taxes, fees and expenses in connection with the purchase and registration in the Buyers'

	
308

	  	
Nominated Flag State shall be for the Buyers' account, whereas similar charges in connection

	
309

	  	
with the closing of the Sellers' register shall be for the Sellers' account.

	  	  	  
	
310

	
11.

	
Condition on delivery

	
311

	  	
The Vessel with everything belonging to her shall be at the Sellers' risk and expense until she is

	
312

	  	
delivered to the Buyers, but subject to the terms and conditions of this Agreement she shall be

	
313

	  	
delivered and taken over as she was at the time of inspection, fair wear and tear excepted.

	  	  	  
	
314

	  	
However, the Vessel shall be delivered free of cargo and free of stowaways with her Class

	
315

	  	
maintained without condition/recommendation*, free of average damage affecting the Vessel's

	
316

	  	
class, and with her classification certificates and national certificates, as well as all other

	
317

	  	
certificates the Vessel had at the time of inspection, valid and unextended without

	
318

	  	
condition/recommendation* by the Classification Society or the relevant authorities at the time

	
319

	  	
of delivery. for at least 3 months after the date of delivery. Vessels Continuous Machinery

Surveys to be valid and up to date. M/E Unit 5 is showing due which is presented to Class. Unit

overhauling was completed by Sellers' Chief Engineer and report has been submitted to Class.

Class does not require surveyor's attendance.

 

	  	 	
All plans, drawings and instruction manuals (excluding ISM manuals, and any other company

	  	 	
documents or software) which are on board shall be delivered to the Buyer's Master upon

	  	 	
delivery of the vessel. All remaining plans, drawings, instruction manuals in the Sellers

  

  

  

	  	  	
possession shall be forwarded to the Buyers technical management after delivery. Ships

	  	  	
computers and network shall remain onboard but computer hard drives and server to be

	  	  	
removed, as per excluded items referred to in line 215.

	
320

	  	
"inspection" in this Clause 11, shall mean the Buyers' inspection according to Clause 4(a) or

	
321

	  	
4(b) (Inspection), if applicable. If the Vessel is taken over without inspection, the date of this

	
322

	  	
Agreement shall be the relevant date.

	  	  	  
	
323

	  	
*Notes and memoranda, if any, in the surveyor's report which are accepted by the Classification

	
324

	  	
Society without condition/recommendation are not to be taken into account.

	  	  	  
	
325

	
12.

	
Name/markings

	
326

	  	
Upon delivery the Buyers undertake to change the name of the Vessel and alter funnel

	
327

	  	
markings.

	  	  	  
	
328

	
13.

	
Buyers' default

	
329

	  	
Should the Deposit not be lodged in accordance with Clause 2 (Deposit), the Sellers have the

	
330

	  	
right to cancel this Agreement, and they shall be entitled to claim compensation for their losses

	
331

	  	
and for all expenses incurred together with interest.

	
332

	  	
Should the Purchase Price not be paid in accordance with Clause 3 (Payment), the Sellers

	
333

	  	
have the right to cancel this Agreement, in which case the Deposit together with interest

	
334

	  	
earned, if any, shall be released to the Sellers. If the Deposit does not cover their loss, the

	
335

	  	
Sellers shall be entitled to claim further compensation for their losses and for all expenses

	
336

	  	
incurred together with interest.

	  	  	  
	
337

	
14.

	
Sellers' default

	
338

	  	
Should the Sellers fail to give Notice of Readiness in accordance with Clause 5(b) or fail to be

	
339

	  	
ready to validly complete a legal transfer by the Cancelling Date the Buyers shall have the

	
340

	  	
option of cancelling this Agreement. If after Notice of Readiness has been given but before

	
341

	  	
the Buyers have taken delivery, the Vessel ceases to be physically ready for delivery and is not

	
342

	  	
made physically ready again by the Cancelling Date and new Notice of Readiness given, the

	
343

	  	
Buyers shall retain their option to cancel. In the event that the Buyers elect to cancel this

	
344

	  	
Agreement, the Deposit together with interest earned, if any, shall be released to them

	
345

	  	
immediately.

	  	  	  
	
346

	  	
Should the Sellers fail to give Notice of Readiness by the Cancelling Date or fail to be ready to

	
347

	  	
validly complete a legal transfer as aforesaid they shall make due compensation to the Buyers

	
348

	  	
for their loss and for all expenses together with interest if their failure is due to proven

	
349

	  	
negligence and whether or not the Buyers cancel this Agreement.

	  	  	  
	
350

	
15.

	
Buyers' representatives

	
351

	  	
After this Agreement has been signed by the Parties and the Deposit has been lodged, the

	
352

	  	
Buyers have the right to place four (4) two (2) representatives on board the Vessel at their sole risk and

	
353

	  	
expense.

	  	  	  
	
354

	  	
These representatives are on board for the purpose of familiarisation and in the capacity of

	
355

	  	
observers only, and they shall not interfere in any respect with the operation of the Vessel. The

	
356

	  	
Buyers and the Buyers' representatives shall sign the Sellers' P&l Club's standard letter of

	
357

	  	
indemnity prior to their embarkation.

	  	  	  
	
358

	
16.

	
Law and Arbitration

	
359

	  	
(a)  This Agreement shall be governed by and construed in accordance with English law and

	
360

	  	
any dispute arising out of or in connection with this Agreement shall be referred to arbitration in

	
361

	  	
London in accordance with the Arbitration Act 1996 or any statutory modification or re-

	
362

	  	
enactment thereof save to the extent necessary to give effect to the provisions of this Clause.

	  	  	  
	
363

	  	
The arbitration shall be conducted in accordance with the London Maritime Arbitrators

	
364

	  	
Association (LMAA) Terms current at the time when the arbitration proceedings are

	
365

	  	
commenced.

	  	  	  
	
366

	  	
The reference shall be to three arbitrators. A party wishing to refer a dispute to arbitration shall

	
367

	  	
appoint its arbitrator and send notice of such appointment in writing to the other party requiring

	
368

	  	
the other party to appoint its own arbitrator within fourteen (14) calendar days of that notice and

	
369

	  	
stating that it will appoint its arbitrator as sole arbitrator unless the other party appoints its own

	
370

	  	
arbitrator and gives notice that it has done so within the fourteen (14) days specified. If the

 

  

  

  

	
371

	  	
other party does not appoint its own arbitrator and give notice that it has done so within the

	
372

	  	
fourteen (14) days specified, the party referring a dispute to arbitration may, without the

	
373

	  	
requirement of any further prior notice to the other party, appoint its arbitrator as solerbitrator

	
374

	  	
and shall advise the other party accordingly. The award of a sole arbitrator shall be binding on

	
375

	  	
both Parties as if the sole arbitrator had been appointed by agreement.

	  	  	  
	
376

	  	
In cases where neither the claim nor any counterclaim exceeds the sum of US$100,000 the

	
377

	  	
arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at

	
378

	  	
the time when the arbitration proceedings are commenced.

	  	  	  
	
379

	  	
(b) *This Agreement shall be governed by and construed in accordance with Title 9 of the

	
380

	  	
United States Code and the substantive law (not including the choice of law rules) of the State

	
381

	  	
of New York and any dispute arising out of or in connection with this Agreement shall be

	
382

	  	
referred to three (3) persons at New York, one to be appointed by each of the parties hereto,

	
383

	  	
and the third by the two so chosen; their decision or that of any two of them shall be final, and

	
384

	  	
for the purposes of enforcing any award, judgment may be entered on an award by any court of

	
385

	  	
competent jurisdiction. The proceedings shall be conducted in accordance with the rules of the

	
386

	  	
Society of Maritime Arbitrators, Inc.

	  	  	  
	
387

	  	
In cases where neither the claim nor any counterclaim exceeds the sum of US$ 100,000 the

	
388

	  	
arbitration shall be conducted in accordance with the Shortened Arbitration Procedure of the

	
389

	  	
Society of Maritime Arbitrators, Inc.

	  	  	  
	
390

	  	
(c) This Agreement shall be governed by and construed in accordance with the laws of

	
391

	  	
(state place) and any dispute arising out of or in connection with this Agreement shall be

	
392

	  	
referred to arbitration at                   (state place), subject to the procedures applicable there.

	  	  	  
	
393

	  	
*16(a), 16(b) and 16(c) are alternatives; delete whichever is not applicable. In the absence of

	
394

	  	
deletions, alternative 16(a) shall apply.

	  	  	  
	
395

	
17.

	
Notices

	
396

	  	
All notices to be provided under this Agreement shall be in writing on email and pass via the

brokers Arrow Sale and Purchase (UK) Ltd.

	  	  	  
	
397

	  	
Contact details for recipients of notices are as follows:

	  	  	  
	
398

	  	
For the Buyers:

	  	  	  
	
399

	  	
For the Sellers:

	  	  	  
	
400

	
18.

	
Entire Agreement

	
401

	  	
The written terms of this Agreement comprise the entire agreement between the Buyers and

	
402

	  	
the Sellers in relation to the sale and purchase of the Vessel and supersede all previous

	
403

	  	
agreements whether oral or written between the Parties in relation thereto.

	  	  	  
	
404

	  	
Each of the Parties acknowledges that in entering into this Agreement it has not relied on and

	
405

	  	
shall have no right or remedy in respect of any statement, representation, assurance or

	
406

	  	
warranty (whether or not made negligently) other than as is expressly set out in this Agreement.

	  	  	  
	
407

	  	
Any terms implied into this Agreement by any applicable statute or law are hereby excluded to

	
408

	  	
the extent that such exclusion can legally be made. Nothing in this Clause shall limit or exclude

	
409

	  	
any liability for fraud.

 

  

  

  

 

	For and on behalf of the Sellers	 	 	For and of behalf of the Buyers	 
	 	 	 	 	 
	
/s/  Sandeep Kadwe

	 	 	
/s/ Svein M. Harfjeld

	 
	Name:	
Sandeep Kadwe

	 	 	Name:	
Svein M. Harfjeld

	 
	Title: 	Director	 	 	Title:	CEO	 

This Charter Party is a computer generated copy of the "SALEFORM 2012" form printed by authority of Norwegian Shipbrokers' Association using software which is the copyright of SDSD. Any insertion or deletion to the form must be clearly visible. In the event of any modification made to the preprinted text of this document which is not clearly visible, the text of the original approved document shall apply. Norwegian Shipbrokers' Association and SDSD assume no responsibility for any loss or damage caused as a result of discrepancies between the original approved document and this document.

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