LEASE RENEWAL AND MODIFICATION AGREEMENT

By a lease dated December 15, 1997 (the “Original Lease”), a Lease of Additional Space dated December 19, 2003 and a Modification Agreement dated September 24, 2008 (collectively, the “Lease”) Canadian Urban Limited as agents for CUE Real Property (2) Ltd. (“CUE”) leased to Inex Pharmaceuticals Corporation (“INEX”) for a term expiring on December 14, 2012 (the “Term”) premises (the “Leased Premises”) consisting of an area containing 51,494 square feet in the building known as 8900 Glenlyon Parkway, Burnaby, BC.

INEX assigned its interest in the Lease to the Tenant on April 25, 2007.

The Tenant entered into a lease extension agreement dated June 15, 2009 with the Landlord’s predecessor, 632499 B.C. Ltd. or Nominee, extending the term of the Leased Premises from December 14, 2012 to July 31, 2014.

The Landlord and the Tenant wish to extend the term of the Lease to July 31, 2019 and modify the Lease on the terms and conditions set out in this Agreement.

Extension Term: The parties agree to extend the Term of the lease for a period of five (5) years commencing August 1, 2014 and ending on July 31, 2019 (the “Extension Term”) on the same terms, conditions, and covenants as are contained in the Lease, except as modified in this Lease Extension Agreement.

Annual Rent: The Basic Rent during the Extension Term will be:

3.

Free Basic Rent   The Landlord will grant the Tenant possession of the Leased Premises for four (4) months free of Basic Rent, which will be based on $19.00 per square foot of Basic Rent

Tenant improvement allowance:  The Landlord shall contribute a Tenant improvement allowance of ($5.82) dollars per square foot of the Leased Premises, plus GST for a total maximum contribution of $315,000.00  dollars inclusive of GST and shall be paid upon the following conditions:

The Tenant and Landlord will agree on allocations of the Tenant improvements allowance to specific aspects of the building with the goal of improving and maintaining the premise to a stand in keeping with the appearance and character of other well maintained commercial buildings in Glenlyon Business Park, with such Tenant improvements as described in schedule A attached hereto.

The Tenant will coordinate the design, supervision and construction of the improvements (individually and collectively, the ''Improvements") to the Leased Premises;

The Tenant will be responsible for making and withholding contractor payments in accordance with the Builder’s Lien Act, S.B.C. 1997, c.45 and shall indemnify the Landlord for any Builder’s Lien claims against the Leased Premises. The Landlord will pay this contribution to the Tenant in trenches of no less than $50,000.00 dollars per trench upon the delivery by the Tenant to the Landlord of the applicable paid invoices reflecting such sum. For clarity, the aggregate value of Tenant’s paid invoices shall be no less than $50,000.00 dollars per submission, save and except the last submission, which may fall below $50,000.00.  Each trench of paid invoices submitted by Tenant shall fall due and payable within thirty (30) days of the date of Tenant’s delivery;

If the total cost of the Improvements exceeds the Landlord's maximum contribution, the Tenant will be obligated to pay the excess directly to the contractors in a timely manner;

Throughout the planning stage, the Tenant will consult with the Landlord on all material aspects of the Improvements  and will obtain the Landlord's consent not to be unreasonably withheld or delayed, to all material aspects of the Improvements prior to commencing construction; and

The Tenant will carry out the Improvements in accordance with the requirements of the Landlord and government bodies having jurisdiction, as per the Tenant’s obligations under the Lease.

5.

Right of Renewal: In addition to the Extended Term, the Landlord agrees to grant the Tenant three (3) additional renewal terms of five (5) years each, commencing on August 1, 2019, August 1, 2024 and August 1, 2029, on the terms and conditions set out in the Lease.

6.

Parking Stalls: The Landlord will provide the Tenant the same number of parking stalls set forth in Section 1.13 of the Original Lease at no cost through the Extended Term and any renewals thereto.

Definitions: All terms capitalized in this Agreement and not otherwise defined in this Agreement will have the same meaning as in the Lease.

Binding Effect: This Agreement will enure to the benefit of and be binding upon the parties and their respective successors and assigns.

Counterparts and Delivery: This Agreement may be executed by the parties in any number of counterparts, each of which when executed and delivered is deemed to be an original, but all of which when taken together will constitute one and the same instrument.

2nd floor north wing

New walls, inner glass, paint, carpet & base, lighting, diffusers, ceiling tiles, doors, electrical, HVAC changes, sprinkler changes, data

$405,000

Washrooms

Option 1

 

Option 2:

new counters, sinks, plumbing fixtures, partitions, lighting, painting, door hardware, added shower(s), exhaust upgrade

 

$10,000 - $15,000

 

 

$20,000 - $25,000

Atrium 1st & 2nd Floor

paint, carpet, possible new treatment to the staircase, atrium doors

$105,000

Cabling / Data

$20,000 - $30,000