UNDERWRITING AGREEMENT



November 22, 2013



Lorus Therapeutics Inc.

2 Meridian Road

Toronto, Ontario

M9W 4Z7



Attention: Dr. William Rice, Chairman and
CEO



Dear Sir:



The undersigned,
Clarus Securities Inc. (“Clarus”) andCanaccord Genuity Corp. (“Canaccord”,
and Clarus and Canaccord together, the “Co-LeadUnderwriters”),
Jennings Capital Inc. and D & D Securities Inc. (collectively with the Co-Lead Underwriters,the “Underwriters”and each individually an “Underwriter”),
understand that Lorus Therapeutics Inc. (“Lorus” or the “Corporation”) proposes to issue
and sell 12,730,000 common shares of the Corporation (the “Purchased Securities”)
at a price of $0.55 per share (the “Purchase Price”). The offering of the Purchased Securities is hereby referred
to as the “Offering”.



Based on the foregoing,and subject to the terms and conditions contained in this Agreement,the Underwriters
severally,on the basis of the percentages set forth in
Paragraph 15 of this Agreement and not jointly,agree to purchase from the Corporation,and by its acceptance hereof,the Corporation agrees to issue and sell to the Underwriters,the Purchased Securities, respectively,on the Closing Date (as defined below).



By acceptance of this Agreement,
the Corporationgrants to the Underwriters a one-time,unassignable right to purchase
(the “Option”) that number of common
shares that is equal to 15% of the total number of Purchased Securities sold to the Underwriters (the “Additional
Securities”). If Clarus and Canaccord, acting jointly on behalf of the Underwriters,elect to exercise such Option, Clarus and Canaccordshall notify the Corporation in
writing not later than 30 days after the Closing Date,which notice shall specify the number
of Additional Securities to be purchased by the Underwriters and the date on which such Additional Securities are to be purchased.
Such date may be the same as the Closing Date but not earlier than the Closing Date nor later than five Business Days after the
date of such notice (the “Option Closing Date”).
Additional Securities may be purchased solely for the purpose of covering overallotments made in connection with the offering of
the Purchased Securities for market stabilization purposes permitted pursuant to applicable
securities law. If any Additional Securities are purchased,each Underwriter agrees,severally and not jointly,to purchase the number of Additional Securities (subject
to such adjustments to eliminate fractional shares as Clarus and Canaccord may determine) based on the percentages set forth in
Paragraph 15 of this Agreement.



The Purchased Securities and the Additional
Securities are hereinafter collectively referred to as the “Securities”.



1







In consideration of the Underwriters’agreement to purchase the Purchased Securities which will result from the acceptance by the Corporation of this offer and
in consideration of the services to be rendered by the Underwriters in connection therewith,the
Corporation agrees to pay to the Underwriters a fee in cash equal to 6% of the gross proceeds from the sale of the Purchased Securities
(the “Underwriting Fee”), plus that
number of compensation warrants (the “Compensation Warrants”)equal to 6% of the total number of Purchased Securities
sold. Such fee shall be due and payable at the Closing Time (as defined below) against payment for the Purchased Securities.



If the Option is exercised,
the Corporationagrees to pay to the Underwriters the Underwriting Fee and to issue additional Compensation Warrants in
respect of each Additional Security sold by the Corporation to the Underwriters pursuant to the Option. Such Underwriting Fee shall
be due and payable,by the Corporation at the Option Closing Time (as defined below) against
payment for the Additional Securities.



The Underwriters shall have the right to
invite one or more Selling Firm (as defined below) to form a selling group to participate in the soliciting of offers to purchase
the Units, which selling group shall include PowerOne Capital Markets Limited, and the Underwriters have the exclusive right to
control all compensation arrangements between the members of the selling group. The Underwriters shall comply, and ensure that
any Selling Firm shall agree with the Underwriters to comply, with all applicable laws and with the covenants and obligations given
by the Underwriters herein.



The Underwriters propose to distribute
the Securities in Canada pursuant to the Final Prospectus (as defined below), all in the manner contemplated by this Agreement.



DEFINITIONS



In this Agreement:



| | a) | “Additional Securities” has the meaning given to it above;
| | -- | ----------------------------------------------------------



| | b) | “Affiliate”, “associate”,“distribution”,“material change”,
“material fact” and “misrepresentation” have the respective meanings given to them
in the Securities Act(Ontario);
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) | “Agreement” means the agreement resulting from the acceptance by the Corporation
of the offer made by the Underwriters by this letter;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------



| | d) | “Business Day” means any day,other than
a Saturday or Sunday,on which commercial banks in Toronto,Ontario
are open for commercial banking business during normal banking hours;
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | e) | “Canaccord” has the meaning given to it above;
| | -- | ----------------------------------------------



| | f) | “Clarus”has the meaning given to it above;
| | -- | ------------------------------------------



| | g) | “Canadian Securities Laws” means all applicable securities laws in each of the
Qualifying Jurisdictions and the respective rules,regulations,blanket orders and blanket rulings under such laws together with applicable published policies,policy statements and notices of the securities regulatory authorities in the Qualifying Jurisdictions;
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | h) | “Canadian Securities Regulators” means the applicable securities commission
or securities regulatory authority in each of the Qualifying Jurisdictions;
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------



2







| | i) | “Claim” has the meaning given to it in paragraph 11(c);
| | -- | -------------------------------------------------------



| | j) | “Closing” means the completion of the purchase by the Underwriters of the Purchased
Securities pursuant to this Agreement;
| | -- | --------------------------------------------------------------------------------------------------------------------------



| | k) | “Closing Date” means December 11,2013 or
such other date as the Corporation and the Underwriters may agree upon in writing but in any event shall not be later than December
18,2013;
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | l) | “Closing Time” means 8:00 a.m. (Eastern Time) on the Closing Date;
| | -- | ------------------------------------------------------------------



| | m) | “Co-Lead Underwriters” means Clarus and Canaccord;
| | -- | --------------------------------------------------



| | n) | “Compensation Warrants” has the meaning given to it above.
| | -- | ----------------------------------------------------------



| | o) | “Corporation” has the meaning given to it above;
| | -- | ------------------------------------------------



| | p) | “Employment Laws” has the meaning given to it in paragraph 4(i)(xxviii);
| | -- | ------------------------------------------------------------------------



| | q) | “Environmental Laws” means any federal,state,provincial,territorial or local law,statute,ordinance,rule,regulation,order,decree,judgment,injunction,permit,license,authorization or other binding requirement,or common law,relating to health,safety or the protection,cleanup
or restoration of the environment or natural resources,including those relating to the distribution,processing,generation,treatment,storage,disposal,transportation,other handling or release or threatened release of Hazardous Materials;
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | r) | “Final Prospectus” means the (final) short form prospectus to
beprepared by the Corporation under NI 44-101 and relating to the distribution of the Securities (including, for greater
certainty, the documents incorporated, or deemed to be incorporated, by reference therein);
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | s) | “Financial Information” has the meaning given to it in paragraph 4(b)(i);
| | -- | -------------------------------------------------------------------------



| | t) | “Financial Statements”has the meaning given
to it in paragraph 4(i)(v);
| | -- | -----------------------------------------------------------------------



| | u) | “Governmental Authority” means any (a) multinational,federal,provincial,state,regional,municipality,local or other government,governmental or public department,central bank,court,tribunal,arbitral body,bureau or agency,domestic or foreign,(b) any subdivision,agent,commission,board,or authority of any of the foregoing,or (c) any quasi-governmental or private body exercising any regulatory,expropriation
or taxing authority under or for the account of any of the foregoing,and any stock exchange
or self-regulatory authority and,for greater certainty includes the Canadian Securities Regulators
and the TSX;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



3







| | v) | “Hazardous Materials” means any material (including,without limitation,pollutants,contaminants,hazardous or toxic substances or wastes) that is regulated by or may give rise to liability under any Environmental Law;
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | w) | “Indemnifier” has the meaning given to it paragraph 11(c);
| | -- | ----------------------------------------------------------



| | x) | “Indemnified Party” has the meaning given to it in paragraph 11(c);
| | -- | -------------------------------------------------------------------



| | y) | “Intellectual Property” has the meaning given to it in paragraph 4(i)(xxiv);
| | -- | ----------------------------------------------------------------------------



| | z) | “MI 11-102” means Multilateral Instrument 11-102 – Passport Systemadopted by certain of the Canadian Securities Regulators;
| | -- | ---------------------------------------------------------------------------------------------------------------------------



| | aa) | “NI 44-101”means National Instrument 44-101 - Short Form Prospectus Distributionsadopted by the Canadian Securities Regulators;
| | --- | -------------------------------------------------------------------------------------------------------------------------------



| | bb) | “notice” has the meaning given to it in paragraph 21;
| | --- | -----------------------------------------------------



| | cc) | “Offering Documents” means,together,the Preliminary Prospectus, the Final Prospectus and any Prospectus Amendment or any Supplementary Material, if any, (including,
for greater certainty, the documents incorporated, or deemed to be incorporated, by reference therein);
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | dd) | “Offering Expenses” has the meaning given to it in paragraph 14;
| | --- | ----------------------------------------------------------------



| | ee) | “Option” has the meaning given to it above;
| | --- | -------------------------------------------



| | ff) | “Option Closing Date” has the meaning given to it in above;
| | --- | -----------------------------------------------------------



| | gg) | “Option Closing Time” means 8:00 a.m. (Eastern Time) on the Option Closing Date;
| | --- | --------------------------------------------------------------------------------



| | hh) | “Preliminary Passport System Decision Document” means a preliminary receipt
for the Preliminary Prospectus issued in accordance with MI 11-102;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------



| | ii) | “Preliminary Prospectus” means the preliminary short form prospectus prepared
by the Corporation relating to the distribution of the Securities (including, for greater certainty, the documents incorporated,
or deemed to be incorporated, by reference therein);
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | jj) | “Prospectus Amendment” means any amendment to the Preliminary Prospectus, including
the Amended and Restated Preliminary Prospectus anticipated to be filed by the Corporation on November 22, 2013), or the Final
Prospectus (including, for greater certainty, the documents incorporated, or deemed to be incorporated, by reference therein);
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | kk) | “Purchase Price” has the meaning given to it above;
| | --- | ---------------------------------------------------



| | ll) | “Purchased Securities” has the meaning given to it above;
| | --- | ---------------------------------------------------------



| | mm) | “Qualifying Jurisdictions” means the
provinces of Alberta, British Columbia and Ontario;
| | --- | ----------------------------------------------------------------------------------------



| | nn) | “Securities” has the meaning given to
it above;
| | --- | -----------------------------------------------



4







| | oo) | “Selling Firm” has the meaning given
to it in paragraph 3(a);
| | --- | -------------------------------------------------------------



| | pp) | “Subsidiary”means NuChem Pharmaceuticals
Inc., a corporation incorporated under the laws of Ontario;
| | --- | ----------------------------------------------------------------------------------------------------



| | qq) | “Supplementary Material” means, collectively,
any Prospectus Amendment and each other document incorporated or deemed to be incorporated by reference in the Final Prospectus
or any Prospectus Amendment, filed or that may be filed by the Corporation with any Canadian Securities Regulators in connection
with the qualification for distribution of the Securities under Canadian Securities Laws;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | rr) | “TSX” means the Toronto Stock Exchange;
| | --- | ---------------------------------------



| | ss) | “Underwriter” and “Underwriters”
have the respective meanings given to them above;
| | --- | ----------------------------------------------------------------------------------



| | tt) | “Underwriter Expenses” has the meaning
given to it in paragraph 14; and
| | --- | -----------------------------------------------------------------------



| | uu) | “Underwriting Fee” has the meaning given
to it above.
| | --- | -----------------------------------------------------



Unless otherwise expressly provided in
this Agreement,words importing only the singular number include the plural and vice versa
and words importing gender include all genders.



All references to dollars or “$”are to Canadian dollars unless otherwise expressed.



TERMS AND CONDITIONS



| | 1. | Compliance with Securities Laws
| | -- | -------------------------------



The Corporation represents and warrants
to,and covenants and agrees with,the Underwriters that
the Corporation will, as soon as reasonably possible following the execution of this Agreement, file a Prospectus Amendment to
the Preliminary Prospectus in a form approved by the Underwriters, acting reasonably, and will obtain a receipt from the Ontario
Securities Commission, and, pursuant to MI 11-102 a receipt for the Prospectus Amendment will be deemed to have been issued by
the Canadian Securities Regulators in each of the Qualifying Jurisdictions other than the Province of Ontario. The Corporation
represents and warrants to,and covenants and agrees with,the
Underwriters that the Corporation will have, forthwith after any comments with respect to the Prospectus Amendment have been received
from, and have been resolved with, the Canadian Securities Regulators, but in any event by no later than 5 p.m. (Toronto time)
on December 6, 2013, prepared and filed a Final Prospectus and will have obtained a receipt from the Ontario Securities Commission,
and, pursuant to MI 11-102 a receipt for the Final Prospectus will be deemed to have been issued by the Canadian Securities Regulators
in each of the Qualifying Jurisdictions other than the Province of Ontario. The Corporation will promptly fulfill and comply with,to the satisfaction of the Underwriters,acting reasonably,the Canadian Securities Laws required to be fulfilled or complied with by the Corporation to enable the Securities to be
lawfully distributed to the public in the Qualifying Jurisdictions through the Underwriters or any other investment dealers or
brokers registered as such in the Qualifying Jurisdictions.



5







| | 2. | Due Diligence
| | -- | -------------



Prior to the filing
of the Final Prospectus, any Prospectus Amendment and any
Supplementary Material,the Corporation shall permit
the Underwritersto review
and participate in the preparation of any Prospectus Amendment, theFinal Prospectus,
and any Supplementary Material and shall allow
each of the Underwritersto
conduct anydue diligence investigationswhich any of them reasonablyrequiresin order to fulfill its obligationsas an underwriter under the Canadian SecuritiesLaws andin order to enable it toresponsiblyexecute the certificate in the Final Prospectus, any Prospectus Amendment and any Supplementary
Materialrequired to be executed byit. Up to the later of the Closing Date and the
date of completion of the distribution of the Securities, the Corporation shall allow each of the Underwriters to conduct any due
diligence investigations that any of them reasonably requires to confirm as at any date that it continues to have reasonable grounds
for the belief that the Offering Documents do not contain a misrepresentation as at such date or as at the date of such Offering
Documents.



| | 3. | Distribution and Certain Obligations of the Underwriters
| | -- | --------------------------------------------------------



| | (a) | The Underwriters shall,and shall require anyinvestment
dealer or broker,other than the Underwriters,with which the Underwritershave
a contractual relationship in respect of the distribution
of the Securities(a “SellingFirm”),tocomplywith the Canadian SecuritiesLawsin connection with the distribution of the Purchased
Securitiesand shall offer the Securitiesfor sale to the public directlyand through
SellingFirmsupon the termsand conditions set out in the Offering Documents and thisAgreement. The Underwriters shall,and shall require anySellingFirm to,offer for sale to the public and sell
the Securitiesonlyin those
jurisdictionswhere theymaybe lawfullyoffered for sale or sold.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | The Underwriters shall,and shall require anySellingFirm to agree, todistribute
the Securitiesin a manner which complieswith and observe
all applicable lawsand regulationsin each jurisdiction into and from which theymayoffer to sell the Securitiesor distribute
the Offering Documents in connection with the distribution of the Securitiesand will not,directlyor indirectly,offer,sell or deliver anySecuritiesor deliver the Offering Documents to anyperson
in anyjurisdiction other than in the QualifyingJurisdictionsexcept in a manner which will not
require the Corporation to complywith the registration,prospectus,filingor other similar requirementsunder the applicable
securitieslawsof
such other jurisdictions.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (c) | For the purposesof thisparagraph,the Underwriters
shall be entitled to assume that the Securitiesare
qualified for distribution in anyQualifyingJurisdiction where a receipt or similar document
for the Final Prospectus shall have been obtained from
the applicable securitiescommission
followingthe filingof the Final Prospectus.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



6







| | 4. | Delivery of Documents
| | -- | ---------------------



The Corporation shall deliver or cause to be delivered to each
of the Underwriters and the Underwriters' counsel at the respective times indicated, the following documents:



| | (a) | At or prior to the filing thereof with the Canadian Securities
Regulators:
| | --- | --------------------------------------------------------------------------



| | (i) | a copy of the Preliminary Prospectus and the Final Prospectus signed and certified as required
by the Canadian Securities Laws in the Qualifying Jurisdictions, and a copy of any Supplementary Material
filed by the Corporation under Canadian Securities Laws applicable in the Qualifying Jurisdictions; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | [intentionally deleted]
| | ---- | -----------------------



| | (iii) | a copy of any other document required to be filed by the Corporation under the Canadian Securities
Laws.
| | ----- | --------------------------------------------------------------------------------------------------------



| | (b) | [intentionally deleted]
| | --- | -----------------------



| | (c) | [intentionally deleted]
| | --- | -----------------------



| | (d) | [intentionally deleted]
| | --- | -----------------------



(e)        At
or prior to the filing of the Final Prospectus with the Canadian Securities Regulators, a “long-form”comfort letter of KPMG LLP,dated the date of the Final Prospectus (with the requisite
procedures to be completed by such auditors within two Business Days of the date of the Final Prospectus),addressed to the Underwriters and the directors of the Corporation,in form and substance
satisfactory to the Underwriters,with respect to certain financial and accounting information
relating to the Corporation in the Final Prospectus,which letter shall be in addition to the
auditors’report contained in the Final Prospectus and the auditors’ comfort letters
addressed to the Canadian Securities Regulators.



| | (f) | [intentionally deleted]
| | --- | -----------------------



| | (g) | Offering Document Amendments
| | --- | ----------------------------



In the event that the Corporation is required
by Canadian Securities Laws to prepare and file a Prospectus Amendment,the Corporation shall
prepare and deliver promptly to the Underwriters signed and certified copies of such Prospectus Amendment. Any Prospectus Amendment
shall be in form and substance satisfactory to the Underwriters.



| | (h) | Representations as to Prospectus and Offering Document
Amendments
| | --- | -----------------------------------------------------------------



Filing of the Preliminary Prospectus, Final
Prospectus and any Prospectus Amendment or Supplementary Material shall constitute a representation and warranty by the Corporation
to the Underwriters that as at their respective dates and as at the date of filing:



7







| | (i) | all information and statements (except information and statements relating solely to the
                                                                                                                    Underwriters which have been provided by the Underwriters in writing specifically for use in the Preliminary Prospectus, the
                                                                                                                    Final Prospectus and any Prospectus Amendment or Supplementary Material) contained in the Preliminary Prospectus, the Final
                                                                                                                    Prospectus and any Prospectus Amendment or Supplementary Material contain no misrepresentation and constitute full,true
                                                                                                                    and plain disclosure of all material facts relating to the Corporation and the Securities as
                                                                                                                    required by Canadian Securities Laws;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | no material fact or information has been omitted from such disclosure (except facts or information
relating solely to the Underwriters) which is required to be stated in such disclosure or is necessary to make the statements or
information contained in such disclosure not misleading in light of the circumstances under which they were made;and
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | such documents comply fully with the requirements of Canadian Securities Laws, other than as to
non-material matters of form or similar non-material matters.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------



Such filings shall also constitute the
Corporation’s consent to the Underwriters’use
of the Preliminary Prospectus, the Final Prospectus and any Prospectus Amendment or Supplementary Material in connection with the
distribution of the Securities in the Qualifying Jurisdictions in compliance with this Agreement and Canadian Securities Laws.



| | (I) | Representations and Warranties of the Corporation
| | --- | -------------------------------------------------



The Corporation represents and warrants
to the Underwriters that,and acknowledges that the Underwriters are relying upon such representations
and warranties in purchasing the Securities,if any:



| | (i) | the Corporation is a corporation existing under the laws of Canada and is properly registered under
the laws of all jurisdictions in which its business is carried on except where the failure to be so registered would not have a
material adverse effect on the business or operations of the Corporation;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | the Subsidiary is duly incorporated and validly existing under the laws of its jurisdiction of
incorporation;
| | ---- | -------------------------------------------------------------------------------------------------------------



| | (iii) | the Corporation has the requisite corporate power,authority
and capacity to enter into this Agreement and to perform the transactions contemplated herein and each of the Corporation and its
Subsidiary has the requisite corporate power,authority and capacity to own,lease and to operate its property and assets including licences or other similar rights and to carry on the business as
currently carried on or as currently proposed to be carried on;
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv) | the Corporation has authorized share capital consisting of an unlimited number of Common Shares,
of which 46,696,327 Common Shares are currently issued and outstanding;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------



8







| | (v) | the financial statements (collectively, the “Financial Statements”) of the Corporation
incorporated by reference in the Preliminary Prospectus and the Final Prospectus present fairly in all material respects the consolidated
financial position of the Corporation for fiscal year ended May 31, 2013 and the three-month periodsended August 31, 2013 and August 31, 2012,and have been prepared in accordance with
international financial reporting standards, applied on a consistent basis;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (vi) | the Corporation is not in material violation of,and the execution
and delivery of this Agreement and the performance by the Corporation of its obligations under this Agreement will not result in
any material breach or violation of,or be in material conflict with,or constitute a material default under,or create a state of facts which after notice
or lapse of time,or both,would constitute a material
default under any term or provision of the constating documents or by-laws of the Corporation or any resolution of the directors
or shareholders of the Corporation or any material contract,mortgage,note,indenture,joint venture or partnership arrangement,agreement (written or oral),instrument,lease,judgment,decree,order,statute,rule,licence or regulation applicable
to the Corporation;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (vii) | no approval,authorization,consent
or other order of,and no filing,registration or recording
with,any Governmental Authority is required of the Corporation in connection with the execution,delivery or performance by the Corporation of this Agreement except as disclosed in the Final Prospectus and compliance
with the Canadian Securities Laws with regard to the distribution of the Securities,if any,in the Qualifying Jurisdictions;
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (viii) | this Agreement has been duly authorized,executed and delivered
by the Corporation and constitutes a legal,valid and binding obligation of the Corporation,enforceable against the Corporation in accordance with its terms,except as enforcement
hereof may be limited by bankruptcy,insolvency,reorganization,moratorium or similar laws affecting the rights of creditors generally and except as limited by the application of equitable
principles when equitable remedies are sought and subject to the fact that rights of indemnity and contribution may be limited
by applicable law;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ix) | the Securities (including the Purchased Securities) are duly and validly authorized and will be,
at the Closing Time, duly and validly issued;
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------



| | (x) | to the knowledge of the Corporation,no securities commission,stock exchange or comparable authority has issued any order preventing or suspending the use or effectiveness of the Preliminary
Prospectus,the Final Prospectus,or any Prospectus Amendment
or preventing the distribution of the Securities,if any,in
any Qualifying Jurisdiction nor instituted proceedings for that purpose and,to the knowledge
of the Corporation,no such proceedings are pending or contemplated;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



9







| | (xi) | Computershare Investor Services Inc.,at its principal office
in the City of Toronto,has been duly appointed as registrar and transfer agent for the common
shares of the Corporation;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xii) | except as disclosed in the Offering Documents,there is no
litigation or governmental or other proceeding or investigation at law or in equity before any court or before or by any federal,provincial,state,municipal or other governmental
or public department,commission,board,agency or body,domestic or foreign,pending or,to the Corporation’s best knowledge,threatened (and the Corporation does not
know of any basis therefor) against,or involving the assets,properties or business of,the Corporation or the Subsidiary nor are there any matters
under discussion with any Governmental Authority relating to taxes,governmental charges or
assessments asserted by any such authority which would materially adversely affect the value or the operation of such assets or
properties or the business,results of operations,prospects
or condition (financial or otherwise) of the Corporation and the Subsidiary,taken as a whole;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xiii) | no person,firm or corporation has (or will have at the Closing
Time) any agreement or option,or right or privilege (whether pre-emptive or contractual) capable
of becoming an agreement or option,for the purchase from
the Corporation of any unissued equity securities of the Corporation except as described in the Final Prospectus;
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xiv) | to the Corporation’s knowledge, (A) none of the officers or employees of the Corporation
or the Subsidiary,(B) no person who owns,directly or
indirectly,more than 10% of any class of securities of the Corporation or securities of any
person exchangeable,convertible or exercisable for more than 10% of any class of securities
of the Corporation,and (C) no associate or Affiliate of any of the foregoing,had or has any material interest,direct or indirect,in
any transaction or any proposed transaction with the Corporation or the Subsidiary,except
for potential participation in the Offering or as publicly disclosed;
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xv) | except for certain amounts withheld by the Corporation on the salary of certain employees, the
Corporation has not made any payment or loan to,or borrowed any moneys from nor is otherwise
indebted to,any director,employee,shareholder or any person not dealing at arm’s length (within the meaning of the
Income Tax Act(Canada) or any Affiliate (as this term is defined in the Business Corporations Act(Ontario)) of
any of the foregoing,except as specifically identified and quantified in the Financial Statements
or in the Offering Documents;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xvi) | there are no off-balance sheet transactions,arrangements,obligations (including contingent obligations) or other relationships of the Corporation with unconsolidated entities or
other persons that may have a material adverse effect on the financial condition,changes in
financial conditions,results of operations,earnings,cash flow,liquidity,capital expenditures,capital resources or significant components of revenue or expenses of the Corporation or that would reasonably be expected
to be material to an investor in making a decision to purchase the Securities;
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



10







| | (xvii) | the Corporation has no outstanding indebtedness or liabilities
and is not a party to or bound by any suretyship,guarantee,indemnification
or assumption agreement,or endorsement of,or any other
similar commitment with respect to the obligations,liabilities or indebtedness of any person,other than those specifically identified in the Financial Statements or in the Offering Documents or incurred since August
31, 2013 in the ordinary course of business;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xviii) | the accounts receivable set out in the Financial Information of the Corporation were generated
in the ordinary course of business,are bona fide and collectible or are the object of sufficient
and normal provisions;
| | ------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xix) | KPMG LLP are independent with respect to the Corporation within the meaning of the applicable Canadian
Securities Laws,and there has not been any disagreement (within the meaning of National Instrument
51-102 of the Canadian Securities Regulators) between the Corporation and KPMG LLP during the last three completed fiscal years
of the Corporation;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xx) | each of the Corporation and the Subsidiary maintains a system of internal accounting controls sufficient
to provide reasonable assurance that: (A) transactions are executed in accordance with management’s
general or specific authorization;(B) transactions are recorded as necessary to permit preparation
of financial statements in conformity international financial reporting standards to maintain accountability for assets;(C) access to assets is permitted only in accordance with management’s general
or specific authorization;and (D) the recorded carrying value for assets is compared with
the recoverable value for assets at reasonable intervals and appropriate action is taken with respect to any differences;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



11







| | (xxi) | except with respect to such matters as would not be material to the entity required to make such
filings,(A) each of the Corporation and the Subsidiary has duly and in a timely manner filed
all returns,elections and designations relating to taxes which are required to be filed by
it with any Governmental Authority;(B) all of such returns,elections
and designations have been prepared and made in accordance with applicable law and have completely and correctly reported all income
and expenses and other amounts and information required to be reported thereon; (C) each of the Corporation and the Subsidiary
has duly and timely paid all taxes,including all installments on account of taxes for the
current year,that are due and payable prior to the date hereof,other than those which are being contested in good faith and in respect of which adequate reserves have been provided in
the financial statements in the Offering Documents. Provision has been made in such financial statements for amounts at least equal
to the amount of all taxes owing by the Corporation and the Subsidiary that are not yet due and payable and that relate to periods
ending on or prior to the Closing. Neither the Corporation nor the Subsidiary has requested any extension of time within which
to file any tax return,which tax return has not since been filed. Each of the Corporation
and the Subsidiary have not received any refund of taxes to which it is not entitled; (D) there are no actions,suits,proceedings,investigations or claims pending
or threatened against the Corporation or the Subsidiary in respect of taxes,or any matters
under discussion with any Governmental Authority relating to taxes asserted by any such authority;(E) neither the Corporation nor the Subsidiary has executed any outstanding waivers or comparable consents regarding the
application of the statute of limitations with respect to any taxes or tax returns. There are no liens for taxes upon any asset
of the Corporation or the Subsidiary;and (F) all taxes and other contributions that the Corporation
or the Subsidiary is required by law to withhold,collect or remit including,without limitation,for employee income tax,unemployment
insurance,sales tax,goods and services tax,revenue taxes and non-resident withholding tax,have been duly withheld or collected
and will be duly withheld or collected up until Closing Time,and have been paid or will in
a timely manner be paid over to the proper Governmental Authority or held by them or on behalf of them;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xxii) | each of the Corporation and the Subsidiary have conducted and is conducting its business in compliance
with all applicable laws,rules and regulations of each jurisdiction in which it carries on
business and holds all licenses,registrations and qualifications,including,but not limited to,export permits,which are material to the Corporation and the Subsidiary on a consolidated basis in all jurisdictions in which it carries
on business to carry on its business as now conducted and all such licenses,registrations
or qualifications,including but not limited to,export
permits,are valid and existing and in good standing;
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xxiii) | the Corporation and the Subsidiary and their properties,assets
and operations are in compliance with,and hold all material permits,authorizations and approvals which the Corporation and the Subsidiary are required to hold under Environmental Laws (as
defined below); there are no past,present or reasonably anticipated future events,conditions,circumstances,activities,practices,actions,omissions or plans that could
reasonably be expected to give rise to any material costs or liabilities to the Corporation
and the Subsidiary on a consolidated basis under,or to interfere with or prevent compliance
by the Corporation or the Subsidiary with,Environmental Laws;neither the Corporation nor the Subsidiary (A) is the subject of any investigation,(B)
has received any notice or claim,(C) is a party to or affected by any pending or,to the knowledge of the Corporation and the Subsidiary after due inquiry,threatened
action,suit or proceeding,(D) is bound by any judgment,decree or order,or (E) is a party to any agreement,in
each case relating to any alleged violation of any Environmental Law or any actual or alleged release or threatened release or
cleanup at any location of any Hazardous Materials;
| | ------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



12







| | (xxiv) | except as described in the Offering Documents,(A) the Corporation
and the Subsidiary own or have the right to use pursuant to licenses,the inventions,patent applications,patents,trade-marks(both registered and unregistered),trade names,copyrights,trade secrets and other proprietary information (collectively,“Intellectual Property”) (1) described in the Offering Documents
as being owned or licensed by them or (2) which are used for the conduct of their respective businesses as currently carried on
and with respect to Intellectual Property owned by the Corporation or the Subsidiary,free
and clear of any security interest,mortgage,pledge,lien,encumbrance,claim,equity,covenants,conditions,options to purchase and restrictions or other adverse claims or interest of any kind or nature and each license granted
by a third party to the Corporation and the Subsidiary in connection with the Intellectual Property is,to the knowledge of the Corporation,valid,subsisting
and in good standing (under which none of them are or have been in default,other than any
defaults which have been cured); (B) to the extent any Intellectual Property owned by,and
material to the past or current operations of,the Corporation or the Subsidiary has been created
in whole or in part by current or past employees,independent contractors or any other persons,(1) any rights therein of such persons have been validly and irrevocably assigned in writing to the Corporation or a Material
Subsidiary,as the case may be and (2) all employees have waived all moral rights in such person’s
contribution to such Intellectual Property or component thereof;(C) to the Corporation’s
knowledge,there is no Intellectual Property being used or enforced by the Corporation or by
the Subsidiary ,nor by its employees,directors,shareholders,consultants,independent contractors
or other persons with access to Intellectual Property,in a manner that would result in its
abandonment,cancellation or unenforceability;(D) to the
Corporation’s knowledge,no third parties have any
rights to any Intellectual Property owned or exclusively licensed within a territory and/or
field of use by the Corporation or the Subsidiary (including any license or the right to any royalty or other payments),except for the ownership rights and other retained rights of the owners of the Intellectual Property which is exclusively
licensed to the Corporation or the Subsidiary and the rights of other licensees of such Intellectual Property outside of any such
applicable territory or field of use and any rights or licenses granted by the Corporation or a Material Subsidiary to end-users
in connection with the use of the products of the Corporation;(E) to the Corporation’s
knowledge,there is no infringement or violation by third parties of any Intellectual Property
owned by the Corporation or the Subsidiary which could have a material adverse effect and,to
the Corporation’s knowledge,the use of such Intellectual
Property by the Corporation and/or Subsidiary does not infringe on or violate any rights of
third parties; (F) there is no action,suit,proceeding
or claim pending or,to the knowledge of the Corporation and the after due internal inquiry,threatened by others challenging the Corporation or the Subsidiary’s rights in
or to any Intellectual Property or the validity of any Intellectual Property owned by the Corporation or the Subsidiary,and,to the Corporation’s knowledge,there is no fact which could form a reasonable basis for any such claim with respect to any material Intellectual Property;
(G) there is no action, suit, proceeding or claim pending or, to the knowledge of the Corporation and the Subsidiary after due
internal inquiry, threatened by others that either the Corporation or the Subsidiary infringes or otherwise violates any Intellectual
Property of others, and there is no fact which could form a reasonable basis for any such claim; and (H) except in respect of Intellectual
Property that is not material to the business of the Corporation, there is no application for registration of any Intellectual
Property owned by the Corporation or the Subsidiary that has been rejected and neither the Corporation nor the Subsidiary has failed
to diligently prosecute and maintain any application or registration, or comply with any agreement or order of any court which
would prevent it from owning, using or commercializing any Intellectual Property currently used, commercialized in the conduct
of its business; (I) the Corporation and the Subsidiary have obtained written confidentiality and non-disclosure agreements executed
by all of its key engineering and technical employees, independent consultants, suppliers, system integrators, customers and any
other person with access to confidential information of the Corporation or the Subsidiary , acknowledging the confidential nature
of such Intellectual Property and agreeing to protect such information from unauthorized disclosure, and to their knowledge, the
Corporation and the Subsidiary are not aware of any unauthorized disclosure of such information by any of the foregoing or others;
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



13







| | (xxv) | the current uses of open source software by the Corporation and its Subsidiary do not and will
not in any material way adversely affect their respective businesses as currently carried on;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xxvi) | the information supplied by the Corporation to the Underwriters and their counsel in connection
with the due diligence conducted by them including information provided at due diligence sessions, was true and accurate in all
material respects and not misleading and all expressions of opinion and expectation therein contained are honestly and fairly based
and such replies have been prepared or approved by persons having appropriate knowledge and responsibility to enable them properly
to provide such replies and all such replies have been given in good faith;
| | ------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | 
| |  | 

| | (xxvii) | the corporate records and minute books for each of the Corporation and Subsidiary which have been
made available to the Underwriters and their counsel for review contain, in all material respects, complete and accurate minutes
of all meetings of the directors and shareholders of the Corporation and Subsidiary held since incorporation;
| | ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



14







| | (xxviii) | each of the Corporation and the Subsidiary is in material compliance with all the provisions of
all federal,provincial,local and foreign laws and regulations
respecting employment and employment practices,terms and conditions of employment and wages
and hours (collectively,“Employment Laws”);(B) there is no pending investigation,inquiry or claim involving the Corporation or
the Subsidiary by or before any Governmental Authority or body of any province of Canada or any other country responsible for the
enforcement of any Employment Law; (C) no collective labour dispute,grievance,arbitration or legal proceeding is ongoing,pending or,to the knowledge of the Corporation and the Subsidiary after due inquiry,threatened
and no material individual labour dispute,grievance,arbitration
or legal proceeding is ongoing,pending or,to the knowledge
of the Corporation and the Subsidiary after due inquiry,threatened with any employee of the
Corporation or the Subsidiary and none has occurred during the past year;and (D) no union
has been accredited or otherwise designated to represent any employees of the Corporation or the Subsidiary and,to the knowledge of the Corporation and the Subsidiary after due inquiry,no accreditation
request or other representation question is pending with respect to the employees of the Corporation or the Subsidiary,and no collective agreement or collective bargaining agreement or modification thereof has expired or is in effect in any
of the Corporation’s or the Subsidiary’ facilities and none is currently being negotiated by the Corporation or the
Subsidiary;
| | -------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xxix) | the Corporation has no pension,retirement or similar plans
relating to the current or former employees,officers or directors of the Corporation or the
Subsidiary ,whether written or oral (other than a defined- contribution matching plan in respect
of employee registered retirement savings plans);
| | ------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xxx) | there are no reports or information that in accordance with the requirements of the Canadian Securities
Regulators must be made publicly available or filed in connection with the offering of the Securities that have not been made publicly
available as required;
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xxxi) | the filing by the Corporation of any signed Prospectus Amendment or material change report required
to be filed under the Canadian Securities Laws will constitute a representation and warranty by the Corporation to the Underwriters
that all the information and statements contained therein are true and correct and that no material information has been omitted
therefrom which is necessary to make the statements contained therein not misleading;
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xxxii) | the Securities do not constitute “taxable Canadian property” (as defined under the
Income Tax Act(Canada));
| | ------- | -----------------------------------------------------------------------------------------------------------



| | (xxxiii) | the Corporation is a reporting issuer or the equivalent in good standing in all of the Qualifying
Jurisdictions under the Canadian Securities Laws and the Corporation is in compliance, in all material respects, with all of its
applicable continuous disclosure obligations under the Canadian Securities Laws and the rules and regulations of the TSX;
| | -------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xxxiv) | the Corporation is qualified under NI 44-101 to file a prospectus in the form of a short form prospectus
in each of the Qualifying Jurisdictions and on the date of and upon filing of the Final Prospectus there will be no documents required
to be filed under the Canadian Securities Laws in connection with the distribution of the Securities that will not have been filed
as required;
| | ------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



15







| | (xxxv) | the Corporation is, and will at the Closing Time be, in compliance in all material respects with
the by-laws, rules and regulations of the TSX;
| | ------ | -----------------------------------------------------------------------------------------------------------------------------------------------



| | (xxxvi) | the Corporation is in compliance in all material respects with its timely disclosure obligations
under Canadian Securities Laws and the rules and regulations of the TSX and has filed all documents required to be filed by it
with the Canadian Securities Regulators under applicable Canadian Securities Laws, and no document has been filed on a confidential
basis with the Canadian Securities Regulators that remains confidential at the date hereof. None of the documents filed in accordance
with applicable Canadian Securities Laws contained, as at the date of the filing thereof, a misrepresentation;
| | ------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xxxvii) | the Corporation is in compliance with National Instrument 52-108 - Auditor Oversight of the
Canadian Securities Regulators; there is not currently and there has not been any reportable events (within the meaning of
National Instrument 51-102 - Continuous Disclosure Obligations of the Canadian Securities Regulators) between the Corporation
and such auditors; and
| | -------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (xxxviii) | the Corporation (i) has not made any acquisition that is a “significant acquisition”
within the meaning of Canadian Securities Laws in its current financial year or prior financial years in respect of which historical
and/or pro forma financial statements would be required to be included or incorporated by reference into the Offering Documents,
and (ii) does not currently propose to make an acquisition that has progressed to a state where a reasonable person would believe
that the likelihood of the acquisition being completed is high, and that would be a “significant acquisition” within
the meaning of the Canadian Securities Laws, if completed as of the date of the Offering Documents.
| | --------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (j) | [intentionally deleted]
| | --- | -----------------------



| | (k) | Commercial Copies
| | --- | -----------------



The Corporation shall cause commercial
copies of the Preliminary Prospectus and Final Prospectus to be delivered to the Underwriters without charge,in such quantities and in such cities as the Underwriters may reasonably request by oral instructions to the printer of
such documents. The delivery of the Preliminary Prospectus and Final Prospectus, as the case may be, shall be effected as soon
as possible after filing thereof with the Canadian Securities Regulators but,in any event
on or before 5:00 p.m. (Toronto time) on the next business day after the filing thereof in Toronto and two business days following
the filing thereof in other Canadian cities. The Corporation shall similarly cause to be delivered commercial copies of any Offering
Document Amendments or Supplementary Material for the distribution of the Securities in compliance with the provisions of this
Agreement and the Canadian Securities Laws. The delivery of the Preliminary Prospectus or Final Prospectus, as the case may be,
shall constitute the consent of the Corporation to the Underwriters’use of the Final
Prospectus for the distribution of the Securities in the Qualifying Jurisdictions in compliance with the provisions of this Agreement
and Canadian Securities Laws. Such deliveries shall constitute the consent of the Corporation to the Underwriters’ use of
the Offering Documents for the distribution of the Securities in compliance with the provisions of this Agreement and the Canadian
Securities Laws. The commercial copies of the Preliminary Prospectus and Final Prospectus shall be identical in content to the
electronically transmitted versions thereof filed with Canadian Securities Regulators on the System for Electronic Document Analysis
and Retrieval (SEDAR).



16







| | (l) | Change of Closing Date
| | --- | ----------------------



Subject to the termination provisions contained
in paragraph 10,if a material change or a change in a material fact occurs prior to the Closing
Date,the Closing Date shall be,unless the Corporation
and the Underwriters otherwise agree in writing or unless otherwise required under Canadian Securities Laws,the sixth Business Day following the later of:



| | (i) | the date on which all applicable filings or other requirements of Canadian Securities Laws with
respect to such material change or change in a material fact have been complied with in all Qualifying Jurisdictions and any appropriate
receipts obtained or deemed to have been obtained for such filings and notice of such filings from the Corporation or its counsel
have been received by the Underwriters; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | the date upon which the commercial copies of any Prospectus Amendments have been delivered in accordance
with paragraph 4(k).
| | ---- | -----------------------------------------------------------------------------------------------------------------------------



| | (m) | Completion of Distribution
| | --- | --------------------------



The Underwriters shall after the Closing
Time:



| | (iii) | use their best efforts to complete distribution of the Securities as promptly as possible;and
| | ----- | ---------------------------------------------------------------------------------------------



| | (iv) | give prompt written notice to the Corporation when,in the
opinion of the Underwriters,they have completed distribution of the Securities,including the total proceeds realized in each of the Qualifying Jurisdictions and any other jurisdiction from such distribution.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 5. | Changes
| | -- | -------



| | (a) | Material Change or Change in Material Fact During Distribution
| | --- | --------------------------------------------------------------



During the period from the date of this
Agreement to the later of the Option Closing Date and the date of completion of distribution of the Securities under the Final
Prospectus,the Corporation shall promptly notify the Underwriters in writing of:



| | (i) | any material change (actual,anticipated,contemplated or threatened,financial or otherwise) in the business,affairs,operations,assets,liabilities (contingent or otherwise) or capital of the Corporation and its Subsidiary taken as a whole;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | any material fact which has arisen or has been discovered and
would have been required to have been stated in the Offering Documents had the fact arisen or been discovered
on,or prior to,the date of such document;and
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



17







| | (iii) | any change in any material fact (which for the purposes of this Agreement shall be deemed to include
the disclosure of any previously undisclosed material fact) contained in the Offering Documents which fact or change is,or may be,of such a nature as to render any statement in the Offering Documents misleading
or untrue or which would result in a misrepresentation in the Offering Documents or which would result in the Offering Documents
not complying (to the extent that such compliance is required) with Canadian Securities Laws,in
each case,as at any time up to and including the later of the Option Closing Date and the
date of completion of the distribution of the Securities.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The Corporation shall promptly,and in any event within any applicable time limitation,comply,to the satisfaction of the Underwriters,acting reasonably,with all applicable filings and other requirements under the Canadian Securities Laws as a result of such fact or change;
provided that the Corporation shall not file any Prospectus Amendment or other document without first obtaining from the Underwriters
the approval of the Underwriters,after consultation with the Underwriters with respect to
the form and content thereof,which approval will not be unreasonably withheld. The Corporation
shall in good faith discuss with the Underwriters any fact or change in circumstances (actual,anticipated,contemplated or threatened,financial or otherwise) which is of such a nature that there
is reasonable doubt whether written notice need be given under this paragraph.



| | (b) | Change in Canadian Securities Laws
| | --- | ----------------------------------



If during the period of distribution of
the Securities there shall be any change in Canadian Securities Laws which,in the opinion
of the Underwriters,acting reasonably,requires the filing
of a Prospectus Amendment,the Corporation shall,to the
satisfaction of the Underwriters,acting reasonably,promptly
prepare and file such Prospectus Amendment with the appropriate securities regulatory authority in each of the Qualifying Jurisdictions
where such filing is required.



| | 6. | Services Provided by Underwriters and Underwriting Fee
| | -- | ------------------------------------------------------



In return for the Underwriters’services in acting as underwriters in connection with the offering of Securities,the
Corporation agrees to pay the Underwriters,at the Closing Time and the Option Closing Time,as the case may be,the Underwriting Fee and to issue the Compensation Warrants. The
Underwriting Fee shall be payable as provided for in paragraph 7.



| | 7. | Delivery of Purchase
Price, Underwriters’ Fee and Certificates
| | -- | --------------------------------------------------------------



The purchase
and sale of the Purchased
Securities shall be completed at the ClosingTime at the officesof McCarthy Tétrault
LLP in Toronto or at such other place asthe Underwriters and the Corporation
mayagree upon. The purchase
and sale of the Additional Securities
shall be completed at the Option ClosingTime at
the officesof McCarthy Tétrault LLP in Toronto or at such
other place asthe Underwritersand the Corporation mayagree upon.



18







At the Closing Date or the Option Closing
Date, as the case may be, the Corporation shall duly and validly deliver to the Underwriters in electronic, uncertificated form,
or in the manner directed by the Underwriters in writing, the Purchased Securities or the Additional Securities, as the case may
be, registered in the name of “CDS & CO.” or in such other name or names as Clarus and Canaccord may direct the
Corporation in writing not less than 24 hours prior to the Closing Time against payment by Clarus and Canaccord to (i) the Corporation
the Purchase Price, net of the Underwriting Fee and Offering Expenses for the Purchased Securities or the Additional Securities,
as the case may be, and (ii) the Corporation for payment of Offering Expenses, in each case by wire transfer, certified cheque
or bank draft, together with a receipt signed by Clarus and Canaccord for such Purchased Securities or Additional Securities, as
the case may be.



| | 8. | [Intentionally deleted.]
| | -- | ------------------------



| | 9. | Underwriters’ Obligation to Purchase
| | -- | ------------------------------------



The Underwriters’obligation to purchase the Purchased Securitiesat the ClosingTime shall
be subject to the accuracy in all material respectsof
the representationsand warrantiesof the Corporation contained in thisAgreement asof the date of thisAgreement and asof the ClosingDate,the performance bythe Corporation of its obligations
in all material respectsunder thisAgreement and
the followingconditions:



| | (a) | Delivery of Opinions
| | --- | --------------------



| | (i) | The Underwriters shall have received at the Closing Time a legal opinion dated the Closing Date,in form and substance satisfactory to counsel to the Underwriters,addressed to the
Underwriters and counsel to the Underwriters from McCarthy Tétrault LLP,counsel to
the Corporation,as to the laws of Canada and the Qualifying Jurisdictions,which counsel in turn may rely upon the opinions of local counsel where they deem such
reliance proper as to the laws other than those of Canada,Ontario,Alberta and British Columbia and as to matters of fact,on certificates of the auditors
of the Corporation,public and stock exchange officials and officers of the Corporation,with respect to the following matters:
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (A) | as to the due incorporation and valid existence of the Corporation under the laws of its jurisdiction
of incorporation and as to the adequacy of the corporate power of the Corporation to carry out its obligations under this Agreement;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (B) | as to the authorized and issued capital of the Corporation;
| | --- | -----------------------------------------------------------



| | (C) | [intentionally deleted];
| | --- | ------------------------



| | (D) | that the Corporation has all requisite corporate power and authority under the laws of its respective
jurisdiction of incorporation and all other jurisdictions where it carries on a material part of its business or owns any material
property to,and each is qualified to,carry on its businesses
as presently carried on and to carry out the transactions contemplated by the Offering Documents;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (E) | that all necessary corporate action has been taken by the Corporation to authorize the execution
and delivery of each of the Preliminary Prospectus, the Final Prospectus and,if applicable,any Prospectus Amendments and any Supplementary Material and the filing of such documents under Canadian Securities Laws
in each of the Qualifying Jurisdictions;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



19







| | (F) | that the Securities have been duly authorized and issued by the Corporation and are outstanding
as fully paid and non-assessable shares;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------



| | (G) | that the attributes of the Securities areconsistent in all
material respects with the description of the Securities in the Offering Documents;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------



| | (H) | that the execution and delivery of this Agreement,the fulfillment
of the terms of this Agreement,the sale of the Securities and the consummation of the transactions
contemplated by this Agreement do not and will not result in a breach (whether after notice or lapse of time or both) of any of
the terms,conditions or provisions of the constating documents;
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (I) | that this Agreement has been duly authorized executed and delivered by the Corporation and constitutes
a legal,valid and binding obligation of the Corporation and is enforceable in accordance with
itsterms,except as enforcement of this Agreement may
be limited by bankruptcy,insolvency,reorganization,moratorium or similar laws affecting the rights of creditors generally and except as limited by the application of equitable
principles when equitable remedies are sought;provided that such counsel may express no opinion
as to the enforceability of the indemnity provisions of paragraph 11 and the contribution provisions of paragraph 12;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (J) | the Securities are qualified investments under the Income Tax Act(Canada) and the regulations
thereunder for a trust governed by registered retirement savings plans,registered retirement
income funds,deferred profit sharing plans and registered education savings plan;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (K) | [intentionally deleted];
| | --- | ------------------------



| | (L) | that Computershare Investor Services Inc. at itsprincipal
offices in the city of Toronto has been duly appointed as the transfer agent and registrar for the common shares of the Corporation;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (M) | that all documents have been filed,all requisite proceedings
have been taken and all legal requirements have been fulfilled by the Corporation to qualify the Securities for distribution and
sale to the public in each of the Qualifying Jurisdictions through investment dealers or brokers registered under the applicable
laws of the Qualifying Jurisdictions who have complied with the relevant provisions of such applicable laws;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



20







| | (N) | that the Securities have been conditionally approved for listing on the TSX;
| | --- | ----------------------------------------------------------------------------



| | (O) | [intentionally deleted];
| | --- | ------------------------



| | (P) | that the Corporation is a reporting issuer or the equivalent
under the Canadian Securities Laws of each of the Qualifying Jurisdictions that recognizes such concept and is not included on
the list of defaulting issuers maintained pursuant to the Canadian Securities Laws of each of the Qualifying Jurisdictions that
maintain such list;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (Q) | that the Corporation is qualified under NI 44-101 to file a prospectus in the form of a short form
prospectus in each of the Qualifying Jurisdictions; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------



| | (R) | as to all other legal matters reasonably requested by counsel to the Underwriters relating to the
distribution of the Securities, including delivery at closing of a favourable legal opinion from counsel to the Corporation on
matters of law pertaining to the Intellectual Property of the Corporation and, in particular, its asset known as LOR-253.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Delivery of Comfort Letter
| | --- | --------------------------



The Underwriters shall have received at
the Closing Time a letter dated the Closing Date,in form and substance satisfactory to the
Underwriters,addressed to the Underwriters and the directors
of the Corporation from KPMG LLP,confirming the continued accuracy of the comfort letter to
be delivered to the Underwriters pursuant to paragraph 4(e) with such changes as may be necessary to bring the information in such
letter forward to a date not more than two Business Days prior to the Closing Date,which changes
shall be acceptable to the Underwriters.



| | (c) | Delivery of Certificates
| | --- | ------------------------



| | (i) | The Underwriters shall have received at the Closing Time a certificate dated the Closing Date,addressed to the Underwriters and counsel to the Underwriters and signed by appropriate officers of the Corporation,with respect to the constating documents of the Corporation,all resolutions of the
board of directors of the Corporation relating to this Agreement,the incumbency and specimen
signatures of signing officers of the Corporation and such other matters as the Underwriters may reasonably request.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | [Intentionally deleted.]
| | ---- | ------------------------



| | (iii) | The Underwriters shall have received at the Closing Time a certificate dated the Closing Date,addressed to the Underwriters and counsel to the Underwriters and signed on behalf of the Corporation by the Chief Executive
Officer and the Chief Financial Officer of the Corporation or other officers of the Corporation acceptable to the Underwriters,certifying for and on behalf of the Corporation after having made due enquiry and after having carefully examined the Offering
Documents,that:
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



21







| | (A) | since the respective dates as of which information is given in the Offering Documents that (A)
there has been no material change (actual, anticipated,contemplated or threatened,whether financial or otherwise) in the business,affairs,operations,assets,liabilities (contingent or otherwise)
or capital of the Corporation and its Subsidiary on a consolidated basis,and (B) no transaction
has been entered into by any of the Corporation or any of its Subsidiary which is material to the Corporation and its Subsidiary
on a consolidated basis,other than as disclosed in the
Offering Documents,as the case may be;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (B) | no order,ruling or determination having the effect of suspending
the sale or ceasing the trading of the common shares or any other securities of the Corporation has been issued by any regulatory
authority and is continuing in effect and no proceedings for that purpose have been instituted or are pending or,to the knowledge of such officers,contemplated or threatened under any of the Canadian
Securities Laws or by any other regulatory authority;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (C) | the Corporation has complied with the terms and conditions of this Agreement on its part to be
complied with up to the Closing Time;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------



| | (D) | the representations and warranties of the Corporation contained in this Agreement are true and
correct as of the Closing Time with the same force and effect as if made at and as of the Closing Time; and
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (E) | such other matters as the Underwriters may reasonably request.
| | --- | --------------------------------------------------------------



| | (d) | The Securities shall be approved for listing and trading on the TSX at the opening of trading on
the Closing Date and Option Closing Date, as applicable.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------



| | (e) | The several obligations of the Underwriters to purchase the Additional Securities hereunder upon
the exercise of the Option are subject to the delivery to Clarus and Canaccord on the Option Closing Date of certificates dated
the Option Closing Date substantially similar to the certificates referred to in clauses 9(c)(iii) and (iv) and such other documents
as they may reasonably request with respect to the good standing of the Corporation,the due
authorization of the Additional Securities and other matters related to the Additional Securities.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 10. | Rights of Termination
| | --- | ---------------------



Each Underwriter may terminate their obligations
under this Agreement by written notice to the Corporation on or before the Closing Time if any of the circumstances set forth below
in 10(a),(b),(c), (d), (e), (f) or (g) shall occur.



22







| | (a) | Restrictions on Distribution
| | --- | ----------------------------



Any inquiry, action, suit, investigation
or other proceeding (whether formal or informal) is commenced, announced or threatened or any order is made or issued under or
pursuant to any federal, provincial, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality
(including without limitation the TSX or any securities regulatory authority) (other than an inquiry, action, suit, investigation
or other proceeding based upon the activities of the Underwriters), or there is a change in any law, rule or regulation, or the
interpretation or administration thereof, which, in the reasonable opinion of the Underwriters, operates to prevent, restrict or
otherwise materially adversely affect the distribution or trading of the common shares of the Corporation or the Purchased Securities
or any other securities of the Corporation.



| | (b) | Material Change
| | --- | ---------------



There shall occur or come into effect any
material change in the business, affairs or financial condition or financial prospects of the Corporation or its subsidiaries or
any change in any material fact (other than a material change or a change in a material fact related solely to the Underwriters
or their Affiliates), or should there be discovered any previously undisclosed material fact, misrepresentation or undisclosed
items (other than facts, misrepresentations or items related solely to the Underwriters or their Affiliates) which, in each case,
in the reasonable opinion of the Underwriters, has or could reasonably be expected to have a material adverse effect on the market
price or value or marketability of the Purchased Securities.



| | (c) | Disaster Out
| | --- | ------------



There should develop, occur or come into
effect or existence any event, action, state, or condition or any action, law or regulation, inquiry, including, without limitation,
terrorism, accident or major financial, political or economic occurrence of national or international consequence, or any action,
governmental law, regulation or inquiry or other occurrence of any nature, which, in the reasonable opinion of the Underwriters,
materially adversely affects or involves, or may materially adversely affect or involve, the financial markets in Canada or the
U.S. or the business, operations or affairs of the Corporation or the marketability of the Purchased Securities.



| | (d) | Adverse Order
| | --- | -------------



An order shall have been made or threatened
to cease or suspend trading in the Purchased Securities, or to otherwise prohibit or restrict in any manner the distribution or
trading of the Purchased Securities, or proceedings are announced or commenced for the making of any such order by any securities
regulatory authority or similar regulatory or judicial authority or the TSX, which order has not been rescinded, revoked or withdrawn.



| | (e) | Breach
| | --- | ------



The Corporation is in material breach of
any material term, condition or covenant of this Agreement, or any representation or warranty given by the Corporation becomes
or is false in any material respect.



23







| | (f) | Market-Out
| | --- | ----------



The state of the financial markets in Canada
or elsewhere where it is planned to market the securities is such that, in the reasonable opinion of the Underwriters (or any one
of them), the Common Shares cannot be marketed profitably.



| | (g) | Non-Compliance with Conditions
| | --- | ------------------------------



The Corporation agrees that all terms and
conditions in paragraph 10 shall be construed as conditions and complied with so far as they relate to acts to be performed or
caused to be performed by it, that it will use its reasonable commercial efforts to cause such conditions to be complied with,
and that any breach or failure by the Corporation to comply with any such conditions shall entitle any of the Underwriters to terminate
their obligations to purchase the Securities by notice to that effect given to the Corporation at or prior to the Closing Time,
unless otherwise expressly provided in this Agreement. Each Underwriter may waive, in whole or in part, or extend the time for
compliance with, any terms and conditions without prejudice to its rights in respect of any other terms and conditions or any other
or subsequent breach or non-compliance, provided that any such waiver or extension shall be binding upon an Underwriter only if
such waiver or extension is in writing and signed by the Underwriter.



| | (h) | Exercise of Termination Rights
| | --- | ------------------------------



The
rights of termination contained in paragraphs 10(a), (b), (c), (d), (e), (f) and (g) may be exercised by any of the Underwriters
and are in addition to any other rights or remedies any of the Underwriters may have in respect of any default, act or failure
to act or non- compliance by the Corporation in respect of any of the matters contemplated by this Agreement or otherwise. In the
event of any such termination, there shall be no further liability on the part of the Underwriters to the Corporation or on the
part of the Corporation to the Underwriters except in respect of any liability which may have arisen prior to or arise after such
termination under paragraphs 11, 12 and 14. A notice of termination given by an Underwriter under paragraphs 10(a), (b), (c), (d),
(e), (f) and (g) shall not be binding upon any other Underwriter.



| | 11. | Indemnity
| | --- | ---------



| | (a) | Rights of Indemnity from the Corporation
| | --- | ----------------------------------------



The Corporation agrees to indemnify and
save harmless each of the Underwriters and their respective affiliates,directors,officers,employees and agents from and against all liabilities,claims,losses,costs,damages and expenses (including without limitation any legal fees or other expenses reasonably incurred by such Underwriters
in connection with defending or investigating any of the above but excluding any loss of profits and other consequential damages),in any way caused by,or arising directly or indirectly from,or in consequence of:



| | (i) | any information or statement (except any statement relating solely to the Underwriters which has
been provided by the Underwriters,as the case may be,in
writing specifically for use in the Offering Documents) contained in the Prospectus,any Prospectus
Amendment or in any certificate of the Corporation delivered pursuant to this Agreement which at the time and in the light of the
circumstances under which it was made contains or is alleged to contain a misrepresentation;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



24







| | (ii) | any omission or alleged omission to state in the Offering Documents or any certificate of the Corporation
delivered pursuant to this Agreement (except any fact relating solely to the Underwriters),whether
material or not,required to be stated in such document or necessary to make any statement
in such document not misleading in light of the circumstances under which it was made;
| | ---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | any order made or enquiry,investigation or proceedings commenced
or threatened by any securities commission or other competent authority based upon any untrue statement or omission or alleged
untrue statement or alleged omission or any misrepresentation or alleged misrepresentation (except for a statement which has been
provided by the Underwriters,in writing specifically for use in the Offering Documents or
omission relating solely to the Underwriters,or alleged untrue statement which has been provided
by the Underwriters,in writing specifically for use in the Offering Documents or alleged omission
relating solely to the Underwriters contained in the Offering Documents or based upon any failure to comply with the Canadian Securities
Laws (other than any failure to comply by the Underwriters,preventing or restricting the trading
in or the sale or distribution of the Securities in any of the Qualifying Jurisdictions));
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv) | the non-compliance or alleged non-compliance by the Corporation with any of the Canadian Securities
Laws including the Corporation’s non-compliance with any statutory requirement to make any document available for inspection;or
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (v) | any breach by the Corporation of its representations,warranties,covenants or obligations to be complied with under this Agreement.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------



| | (b) | [intentionally deleted]
| | --- | -----------------------



| | (c) | Notification of Claims
| | --- | ----------------------



If any matter or thing contemplated by
paragraph 11(a) or 11(b) (any such matter or thing being referred to as a “Claim”)
is asserted against any person or company in respect of which indemnification is or might reasonably be considered to be provided,such person or company (the “Indemnified Party”)
will notify the Corporation (the “Indemnifier”) as soon as possible of the
nature of such Claim (but the omission so to notify the Indemnifier of any potential Claim shall not relieve the Indemnifier from
any liability which they may have to any Indemnified Party and any omission so to notify the Indemnifier of any actual Claim shall
affect the Indemnifier s’ liability only to the extent that the Indemnifier is materially prejudiced by that failure). The
Indemnifier shall assume the defence of any suit brought to enforce such Claim;provided,however,that



| | (i) | the defence shall be conducted through legal counsel acceptable to the Indemnified Party,acting reasonably,and
| | --- | --------------------------------------------------------------------------------------------------------------



25







| | (ii) | no settlement of any such Claim or admission of liability may be made by the Indemnifier without
the prior written consent of the Indemnified Party,acting reasonably,unless such settlement includes an unconditional release of the Indemnified Party from all liability arising out of such
action or claim and does not include a statement as to or an admission of fault,culpability
or failure to act,by or on behalf of any Indemnified Party.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (d) | Right of Indemnity in Favour of Others
| | --- | --------------------------------------



With respect to any Indemnified Party who
is not a party to this Agreement,the parties to this Agreement shall obtain and hold the rights
and benefits of this paragraph in trust for and on behalf of their respective affiliates,associates,directors,officers,employees and agents.



| | (e) | Retaining Counsel
| | --- | -----------------



In any such Claim,the Indemnified Party shall have the right to retain other counsel to act on his or its behalf,provided that the fees and disbursements of such counsel shall be paid by the Indemnified Party unless: (i) the Indemnifier
and the Indemnified Party shall have mutually agreed to the retention of the other counsel; (ii) the named parties to any such
Claim (including any added third or impleaded party) include both the Indemnified Party and the Indemnifier and the representation
of both parties by the same counsel would be inappropriate due to the actual or potential differing interests between them;or (iii) the Indemnifier shall not have retained counsel within seven Business Days following receipt by the Indemnifier
of notice of any such Claim from the Indemnified Party.



| | 12. | Contribution
| | --- | ------------



| | (a) | Rights of Contribution
| | --- | ----------------------



In order to provide for a just and equitable
contribution in circumstances in which the indemnity provided in paragraph 11 would otherwise be available in accordance with its
terms but is,for any reason,held to be unavailable to
or unenforceable by an Indemnified Party or enforceable otherwise than in accordance with its terms,the Corporation and the Underwriters shall contribute to the aggregate of all claims,expenses,costs and liabilities and all losses (other than loss of profits) of a nature contemplated by paragraph 11 in such proportions
as is appropriate to reflect (i) as between the Corporation and the Underwriters,the relative
benefits received by the Corporation on the one hand and by the Underwriters on the other hand from the offering of the Securities,
(ii) as between the Corporation and the Underwriters, the relative fault of the Corporation on the one hand and the Underwriters
on the other hand;provided,however,that
in the case of (i) and (ii),in no case shall any Underwriter (except as may be provided in
any agreement among Underwriters relating to the offering of the Securities) be responsible for any amount in excess of the Underwriting
Fee applicable to the Securities purchased by such Underwriter from the Corporation. If the allocation provided for in item (i)
in the immediately preceding sentence is unavailable for any reason,the Corporation on the
one hand and the Underwriters on the other hand,severally and not jointly,shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault
of the Corporation on the one hand and of the Underwriters on the other hand in connection with the statements or omissions which
resulted in such liabilities,claims,losses,costs,damages or expenses as well as any other relevant equitable considerations,provided,however,that in no case
shall any Underwriter (except as may be provided in any agreement among Underwriters relating to the offering of the Securities)
be responsible for any amount in excess of the Underwriting Fee applicable to the Securities purchased by such Underwriter from
the Corporation hereunder. As regards item (i) above,benefits received by the Corporation
shall be deemed to be equal to the total net proceeds (before deducting expenses) from the offering of the Securities received
by it,and benefits received by the Underwriters shall be deemed to be equal to the total Underwriting
Fee received from the Corporation, net of reimbursable expenses. Relative fault shall be determined by reference to,among other things,whether any untrue or any alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to information provided,the intent of the parties and their relative knowledge,access to information and opportunity
to correct or prevent such untrue statement or omission. The Corporation and the Underwriters agree that it would not be just and
equitable if contribution were determined by pro rata allocation or any other method of allocation which does not take account
of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph 12(a),no person who has engaged in fraud, fraudulent misrepresentation or negligence under Canadian Securities Laws (as determined
by a court of competent jurisdiction in a final non-appealable judgment),shall be entitled
to contribution from any person who was not guilty of such fraud, fraudulent misrepresentation or negligence. For purposes of this
paragraph 12,each person who controls an Underwriter within the meaning of Canadian Securities
Laws and each director,officer,employee and agent of
an Underwriter shall have the same rights to contribution as such Underwriter,and each officer
of the Corporation who shall have signed the Offering Documents and each director of the Corporation shall have the same rights
to contribution as the Corporation,subject in each case to the applicable terms and conditions
of this paragraph 12(a). For greater certainty, no party will have any obligation to contribute pursuant to this paragraph 12 in
respect of any Claim except to the extent the indemnity in paragraph 11 of this Agreement would have been applicable to that Claim
in accordance with its terms, had that indemnity been found to be enforceable and available to the Indemnified Party.



26







| | (b) | Rights of Contribution in Addition to Other Rights
| | --- | --------------------------------------------------



The rights to contribution provided in
this paragraph shall be in addition to and not in derogation of any other right to contribution which the Underwriters may have
by statute or otherwise at law.



| | (c) | Calculation of Contribution - Underwriters
| | --- | ------------------------------------------



In the event that an Indemnifier may be
held to be entitled to contribution from the Underwriters under the provisions of any statute or at law,the Indemnifier shall be limited to contribution in an amount not exceeding the lesser of:



| | (i) | the portion of the full amount of the loss or liability giving rise to such contribution for which
the Underwriters are responsible,as determined in paragraph 12(a) or (b),as the case may be,and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | the amount of the fee actually received by the Underwriters under this Agreement,
| | ---- | ---------------------------------------------------------------------------------



and an Underwriter shall in no event be
liable to contribute any amount in excess of such Underwriter’s portion of the Underwriting
Fee actually received under this Agreement.



27







(d) [intentionally
deleted]



| | (e) | Notice
| | --- | ------



If the Underwriters have reason to believe
that a claim for contribution may arise,they shall give the Indemnifier notice of such claim
in writing,as soon as reasonably possible,but failure
to notify the Indemnifier shall not relieve the Indemnifier of any obligation which he or it may have to the Underwriters under
this paragraph 12.



| | (f) | Right of Contribution in Favour of Others
| | --- | -----------------------------------------



With respect to this paragraph 12, the
Indemnifiers acknowledge and agree that the Underwriters are contracting on their own behalf and as agents for their affiliates,directors,officers,employees and agents (and in
the case of each Underwriter,each person who controls such Underwriter).



| | 13. | Severability
| | --- | ------------



If any provision of this Agreement is determined
to be void or unenforceable in whole or in part,it shall be deemed not to affect or impair
the validity of any other provision of this Agreement and such void or unenforceable provision shall be severable from this Agreement.



| | 14. | [intentionally deleted]
| | --- | -----------------------



| | 15. | Rights to Purchase
| | --- | ------------------



| | (a) | Obligation of Underwriters to Purchase
| | --- | --------------------------------------



The obligation of the Underwriters to purchase
the Purchased Securities or the Additional Securities,as the case may be at the Closing Time
or on the Option Closing Date,as the case may be,shall
be several and not joint and several and shall be limited to the percentage of the Purchased Securities or the Additional Securities,as the case may be set out opposite the name of the Underwriters respectively below:



|Clarus Securities Inc.  |  |  | 25 | %
|----------------------- |  |  | -- | -
|Canaccord Genuity Corp. |  |  | 25 | %
|Jennings Capital Inc.   |  |  | 20 | %
|D&D Securities Inc.     |  |  | 15 | %



| | Selling Group concession | 15% (to be purchased by the Co-Lead Underwriters on a pro
rata between them in the event that it is not purchased by Selling Firms at the Closing Time)
| | ------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------



Subject to paragraph 15(c),in the event that any of the Underwriters shall fail to purchase its applicable percentage of the Purchased Securities or
the Additional Securities,as the case may be,at the Closing
Time or on the Option Closing Date,as the case may be,the
others shall have the right,but shall not be obligated,to
purchase on a pro rata basis all of the percentage of the Purchased Securities or the Additional Securities,as the case may be, on a pro rata basis which would otherwise have been purchased by that one of the Underwriters which
is in default.



28







| | (b) | Purchases by Other Underwriters
| | --- | -------------------------------



If the amount of the Purchased Securities
or the Additional Securities,as the case may be which
the remaining Underwriters wish to purchase exceeds the amount of the Purchased Securities or the Additional Securities,as the case may be,which would otherwise have been purchased by an Underwriter which
is in default,such Purchased Securities or the Additional Securities,as the case may be,shall be divided pro rata among the Underwriters desiring to purchase
such Purchased Securities or the Additional Securities,as the case may be,in proportion to the percentage of Purchased Securities or the Additional Securities,as
the case may be which such Underwriters have agreed to purchase as set out in paragraph 15(a).



| | (c) | Rights to Purchase of Other Underwriters
| | --- | ----------------------------------------



In the event that one or more but not all
of the Underwriters shall exercise their right of termination under paragraph 10,the others
shall have the right,but shall not be obligated,to purchase
all of the percentage of the Purchased Securities or the Additional Securities,as the case
may be which would otherwise have been purchased by such Underwriters which have so exercised their right of termination.



| | 16. | Restrictions on Concurrent Offerings
| | --- | ------------------------------------



From the date hereof until 90 days after
the Closing Date, neither the Corporation nor any of its affiliates shall,without the Co-Lead
Underwriters’prior written consent, such consent not to
be unreasonably withheld or delayed,authorize,issue or sell
securities of the Corporation or such affiliates (whether in a public offering, by way of private placement or otherwise), other
than:



| | (i) | the Purchased Securities and the Additional Securities;
| | --- | -------------------------------------------------------



| | (ii) | non-convertible debt securities;
| | ---- | --------------------------------



| | (iii) | common shares of the Corporation issued upon the exercise of employee or executive incentive compensation
arrangements established and disclosed to the Co-Lead Underwriters prior to the date of this Agreement or upon exercise of convertible
securities outstanding as of the date hereof, or such other arrangement approved by the Co-Lead Underwriters;
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv) | pursuant to the Corporation’s stock option plan or any other compensation plan; or
| | ---- | ----------------------------------------------------------------------------------



| | (v) | common shares of the Corporation issued as consideration for the acquisition of a business or technology;
| | --- | ---------------------------------------------------------------------------------------------------------



or agree to do so or publicly
announce any intention to do so.



| | 17. | Publicity
| | --- | ---------



The Corporation agrees that each Underwriter
may separately or together,subsequent to the announcement of the sale of the Purchased Securities,make public their involvement with the Corporation,including the right of the Co-Lead
Underwriters, at their own expense to,following the Closing,place advertisements describing its services to the Corporation in financial,news or
business publications,consistent with what has already been publicly disclosed regarding the
sale of the Securities. If requested by the Co-Lead Underwriters,the Corporation will include
an acceptable reference to the Co-Lead Underwriters in any press release or other public announcement made by the Corporation regarding
the matters described in this Agreement. In any event,any press release issued by the Corporation
shall be issued only after consultation with the Co-Lead Underwriters and in compliance with applicable laws.



29







| | 18. | Survival of Representations and Warranties
| | --- | ------------------------------------------



The representations,warranties,obligations and agreements of the Corporation and the Underwriters, as applicable,
contained in this Agreement and in any certificate delivered pursuant to this Agreement or in connection with the purchase and
sale of the Securities shall survive the purchase of the Securities and shall continue in full force and effect unaffected by any
subsequent disposition of the Securities by the Underwriters or the termination of the Underwriters’ obligations until the
later of: (i) two years following the Closing Date; and (ii) the latest date under the Canadian Securities Laws in which a purchaser
of Securities is resident or, if the Canadian Securities Laws do not specify such a date, the latest date under the Limitations
Act, 2002 (Ontario) that such Purchaser may be entitled to commence an action for breach of a representation or warranty in
this Agreement.



| | 19. | Time
| | --- | ----



Time is of the essence
in the performance of the parties’respective obligations under this Agreement.



| | 20. | Governing Law
| | --- | -------------



This Agreement shall be governed by and
construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable in the Province of Ontario.



| | 21. | Notice
| | --- | ------



Unless otherwise expressly provided in this Agreement,any notice or other communication to be given under this Agreement (a “notice”)
shall be in writing addressed as follows:



If to the Corporation,addressed
and sent to:



Lorus Therapeutics Inc.

2 Meridian Road

Toronto, Ontario

Canada M9W 4Z7

Attention: William Rice

Facsimile: 416.798.2200



With a copy to:



McCarthy Tétrault LLP

1150, rue de Claire Fontaine

7thFloor

Québec QC G1R 5G4

Attention: Charles-Antoine

Soulière

Facsimile: 418-521-3099



30







If to the Underwriters, addressed and sent to:



Canaccord Genuity Corp.

Brookfield Place

3100 – 161 Bay Street

P.O. Box 516

Toronto, Ontario

M5J 2S1

Attention: Steve Winokur, Managing Director

Facsimile: 416-869-3876



Clarus Securities Inc.

Exchange Tower

130 King Street West, Suite 3640

P.O. Box 38

Toronto, Ontario

M5X 1A9

Attention: Mark Pavan, Managing Director

Facsimile: 416-343-2798



With a copy to:



Stikeman Keeley Spiegel Pasternack LLP

200 Front Street West, Suite 2300

Toronto, Ontario

M5V 3K2

Attention: Robert Spiegel

Facsimile: 416-365-1813



or to such other address as any of the parties may designate
by giving notice to the others in accordance with this paragraph.



Each notice shall be personally delivered to the addressee or
sent by fax to the addressee and:



| | (a) | a notice which is personally delivered shall,if delivered
on a Business Day,be deemed to be given and received on that day and,in any other case,be deemed to be given and received on the first Business Day following
the day on which it is delivered;and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | a notice which is sent by fax shall be deemed to be given and received on the first Business Day
following the day on which it is sent.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------



| | 22. | Authority of Co-Lead Underwriters
| | --- | ---------------------------------



The Co-Lead Underwriters are hereby authorized
by each of the other Underwriters to act on their behalf and the Corporation shall be entitled to and shall act on any notice given
in accordance with paragraph 21 by or on behalf of the Underwriters by the Co-Lead Underwriters which represents and warrants that
it has irrevocable authority to bind the Underwriters,except in respect of any consent to
a settlement pursuant to paragraph 11(c) which consent shall be given by the Indemnified Party, ora notice of termination pursuant to paragraph 10 which notice may be given by any of the Underwriters,or any waiver pursuant to paragraph 10(g),which waiver must be signed by all of the
Underwriters. The Co-Lead Underwriters shall consult with the other Underwriters concerning any matter in respect of which they
act as representative of the Underwriters. The obligation of the Underwriters under this Agreement shall be several and not joint
and several.



31







| | 23. | Counterparts
| | --- | ------------



This Agreement may be executed by the parties
to this Agreement in counterpart and may be executed and delivered by facsimile and all such counterparts and facsimiles shall
together constitute one and the same agreement.



If the foregoing is in accordance with
your understanding and is agreed to by you,please signify your acceptance by executing the
enclosed copies of this letter where indicated below and returning the same to the Underwriters upon which this letter as so accepted
shall constitute an Agreement among us.



| | 24. | [intentionally deleted]
| | --- | -----------------------



| | 25. | Entire Agreement
| | --- | ----------------



The terms and conditions of this Agreement
supersede any previous verbal or written agreement between the Underwriters (or any of them) and anyone or more of the Corporation.



32







Yours very truly,



|CLARUS SECURITIES INC.                |                       | CANACCORD GENUITY CORP. 
|------------------------------------- | --------------------- | ------------------------
|                                      |                       |                         
|By:                                   | (s) Marc Pavan        |                         
|Name: Marc Pavan                      |                       | Name: Steve Winokur     
|Title: Managing Director              |                       | Title: Managing Director
|                                      |                       |                         
|JENNINGS CAPITAL INC.                 |                       | D&D SECURITIES INC.     
|                                      |                       |                         
|By:                                   | (s) Douglas A. Harris |                         
|Name: Douglas A. Harris               |                       | Name: Patrick Lilly     
|Title:   Director, Investment Banking |                       | Title: President        



|LORUS THERAPEUTICS INC. |                     |  | 
|----------------------- | ------------------- |  | 
|                        |                     |  | 
|By:                     | (s) Dr. Willam Rice |  | 
|Name: Dr. William Rice  |                     |  | 
|Title: Chairman & CEO   |                     |  | 



33