Lease Extension Agreement, dated January 10, 2020, between 52nd Street Business Centre LP, by its General Partner, 52nd Street Business Centre GP Inc., and Versa Power Systems Ltd

By a lease dated the 20^th day of May 2005 (the “Original Lease”), made between Westpen Properties Ltd.(“Westpen”), as landlord, and the Tenant, Westpen did demise and lease unto the Tenant certain premises comprising approximately thirty two thousand two hundred twenty (32,220) square feet, designated as Unit 4852 (the “Leased Premises”), in the building municipally located at 4800 - 52 Street SE in 52^nd Street Business Centre in the City of Calgary, in the Province of Alberta, all as described in the Original Lease, for a term of five (5) years commencing on the 1^st day of February 2006 and expiring on the 31^st day of January 2011 (the “Term”).

By a lease amending agreement dated the 20^th day of April 2006 (the “1^st Amendment”), the Original Lease was amended as more particularly set out therein.

Effective the 1^st day of October 2010, 52^nd Street Business Centre LP, by its General Partner, 52^nd Street Business Centre GP Inc., became the successor to Westpen in title and is the Landlord as named herein.

By a lease renewal agreement dated 11^th day of November 2010 (the “1^st Extension”), the Term was renewed for a further three (3) years so to expire the 31^st day of January 2014, all upon the terms and conditions set out therein.

By a lease extension and amending agreement dated the 29^th day of October 2013 (the “2^nd Extension”), the Term was extended an additional three (3) years so to expire the 31^st day of January 2017, all upon the terms and conditions set out therein.

By a lease extension and amending agreement dated the 9^th day of November 2016 (the “3^rd Extension”), the Term was extended an additional three (3) years so to expire the 31^st day of January 2020, all upon the terms and conditions set out therein.

The Original Lease, the 1^st Amendment, the 1^st Extension, the 2^nd Extension and the 3^rd Extension are hereinafter collectively referred to as the “Lease”.

The Lease does not contain provisions for the Tenant to be granted an extension term for the Premises.

The Landlord and the Tenant have deemed it expedient and advisable to enter into this Agreement to reflect and set out the agreements and arrangements that have been made respecting the extension of the Term.

The parties hereby acknowledge, confirm and agree that the foregoing recitals are true in substance and in fact.

All words and expressions used in this Agreement, unless there is something in the subject matter or context inconsistent therewith, shall have the same meaning ascribed to them in the Lease.

The Term shall be extended for a period of three (3) years to be computed from the 1^st day of February 2020 and to expire on the 31^st day of January 2023 (the “4^th Extension Term”).

The Base Rent payable by the Tenant pursuant to paragraph 7 of the Basic Terms and Section 3.1 of the Lease, annually throughout the 4^th Extension Term shall be:

The Lease is hereby amended by inserting the following as paragraph 13 b) to the Basic Terms of the Lease:

The Lease is hereby amended by deleting the first sentence of Section 5.1 (Damage to the Leased Premises) and replacing it with “If the Leased Premises or the Building are damaged or destroyed, in whole or in part, by fire or any other occurrence, this Lease shall nonetheless continue in full force and effect and to the extent to which this Lease is not terminated pursuant hereto, the Landlord will repair the Leased Premises as expressly provided in Section 5.2”

The Tenant is continuing occupation of the Leased Premises in an “as is” condition and the Landlord is not required to perform any work to the Leased Premises, except the Landlord shall complete the following work, at the Landlord’s expense, on a once only basis:

Main front doors shall be repaired, including the lock protection metal plate and base plate repaired and adjusted so the door hinge no longer sinks and rubs along the bottom.

All covenants, conditions and agreements contained in the Lease shall remain in full force and effect and unamended except as otherwise expressly set forth herein.

This Agreement may be executed in any number of counterparts; with the same effect as if all parties had signed the same document and will become effective once a signed counterpart is delivered by each of the parties to the other.  The parties agree that the delivery of an executed copy of this Agreement by facsimile or electronically shall be legal and binding and shall have the same full force and effect as if the original executed copy of this Agreement had been delivered.

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