# EDGAR Filing Document

**Accession Number:** 0002046638
**File Stem:** 0001213900-25-089404
**Filing Date:** 2025-9
**Character Count:** 1548682
**Document Hash:** 4def0d38c32262da799b4ea6f69c4c5f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-089404.hdr.sgml**: 20250919

**ACCESSION NUMBER**: 0001213900-25-089404

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 61

**FILED AS OF DATE**: 20250919

**DATE AS OF CHANGE**: 20250919

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Exxel Pharma, INC.
- **CENTRAL INDEX KEY:** 0002046638
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290393
- **FILM NUMBER:** 251326063

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** C/O CASSELS SUITE 2200, RBC PLACE
- **CITY:** VANCOUVER
- **PROVINCE COUNTRY:** A1
- **BUSINESS PHONE:** 720-261-1109

**MAIL ADDRESS:**
- **STREET 1:** 12635 E. MONTVIEW BLVD. STE 100
- **CITY:** AURORA
- **STATE:** CO
- **ZIP:** 80045

**Registration No. 333-** 

**UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549**

**FORM S-1<br> REGISTRATION STATEMENT<br> UNDER<br> THE SECURITIES ACT OF 1933**

**Exxel Pharma Inc.**<br> *(Exact name of registrant as specified in its charter)*

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| | | |
|:---|:---|:---|
| **Colorado** | **2834** | **83-1113829** |
| *(State or other jurisdiction of <br> incorporation or organization)* | *(Primary Standard Industrial<br> Classification Code Number)* | *(I.R.S. Employer<br> Identification Number)* |

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**12635 E. Montview Blvd,<br> Suite 134<br> Aurora, CO 80045<br> 908-824-0775**<br> *(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)*

**Soren Mogelsvang<br> Chief Executive Officer<br> 12635 E. Montview Blvd<br> Suite 134<br> Aurora, CO 80045<br> 720-662-5177**<br> *(Name, address, including zip code, and telephone number, including area code, of agent for service)*

*Copies to:*

**Gary Joiner, Esq.<br> Frascona, Joiner, Goodman & Greenstein, PC<br> 4750 Table Mesa Drive<br> Boulder, CO. 80305<br> 303-494-3000**

**Approximate date of commencement of proposed sale to the public:** As soon as practicable after this Registration Statement is declared effective.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box: ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.**

The information in this preliminary prospectus is not complete and may be changed. The selling shareholders may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

**SUBJECT TO COMPLETION PRELIMINARY<br> PROSPECTUS, DATED** **SEPTEMBER 19, 2025**

476,149

**Shares of Common Stock**

![](image_001.jpg)

This prospectus covers the resale by the selling shareholders of Exxel Pharma Inc identified in the "Selling Shareholders" section of this prospectus of up to an aggregate of 476,149 shares of our common stock. We will not receive any of the proceeds from any sale of shares of common stock pursuant to this prospectus.

The selling shareholders or their permitted transferees, pledgees, assignees, donees or successors, or others who later hold any of the selling shareholders' interests in the shares of common stock described in this prospectus, may offer and sell the shares of common stock described in this prospectus in a number of different ways and at varying prices. We provide more information about how a selling shareholder may sell its shares in the section titled "Plan of Distribution" appearing elsewhere in this prospectus. We will pay the expenses incurred in registering the securities covered by this prospectus, including legal and accounting fees.

Prior to this offering, there has been no public market for our common stock. We intend to apply to list our shares of common stock on the OTCQX® Best Market or the OTCQB® Venture Market, subject to official notice of issuance, under the symbol [ ]. No assurance can be given that our applications will be approved, or if approved, that a market for our shares will develop or be sustainable. If our application is not approved, we will not continue with this offering.

**We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 and have elected to comply with certain reduced public company reporting requirements in this prospectus and may elect to do so in future filings.**

**Investing in our common stock is highly speculative and involves a high degree of risk. See "Risk Factors" beginning on page 10.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.**

The date of this prospectus is September 19, 2025.

**TABLE OF CONTENTS**

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|:---|:---|
|  | **Page** |
| [PROSPECTUS SUMMARY](#a_001) | 1 |
| [RISK FACTORS](#a_002) | 10 |
| [INDUSTRY AND MARKET DATA](#a_003) | 46 |
| [USE OF PROCEEDS](#a_004) | 47 |
| [DIVIDEND POLICY](#a_005) | 47 |
| [SELLING STOCKHOLDERS](#a_020) | 48 |
| [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_006) | 55 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_007) | 56 |
| [BUSINESS](#a_008) | 62 |
| [MANAGEMENT](#a_009) | 81 |
| [EXECUTIVE COMPENSATION](#a_010) | 88 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#a_011) | 91 |
| [PRINCIPAL SECURITYHOLDERS](#a_012) | 92 |
| [DESCRIPTION OF CAPITAL STOCK](#a_013) | 93 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#a_014) | 94 |
| [PLAN OF DISTRIBUTION](#a_021) | 96 |
| [LEGAL MATTERS](#a_015) | 97 |
| [EXPERTS](#a_016) | 97 |
| [WHERE YOU CAN FIND MORE INFORMATION](#a_017) | 97 |
| [INDEX TO FINANCIAL STATEMENTS](#a_018) | F-1 |

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You should rely only on the information contained in this prospectus. We have not authorized anyone to provide you with different information and, if provided, such information or representations must not be relied upon as having been authorized by us. This prospectus shall not constitute an offer to sell or a solicitation of an offer to buy offered securities in any jurisdiction in which it is unlawful for such person to make such an offering or solicitation.

You should read this prospectus together with the additional information described below under the heading "Where You Can Find More Information." We may also provide a prospectus supplement or post-effective amendment to the Registration Statement to add information to, or update or change information contained in, this prospectus. The information contained in this prospectus, or any free writing prospectus is accurate only as of its date, regardless of its time of delivery or of any sale of shares of our common stock. Our business, financial condition, results of operations and prospects may have changed since that date. This prospectus does not contain all of the information included in the Registration Statement. For a more complete understanding of the offering of the securities, you should refer to the Registration Statement, including its exhibits.

This prospectus includes our trademarks, and trade names, including but not limited to Exxel and Exxel Pharma, which are protected under applicable intellectual property laws. This prospectus also may contain trademarks, service marks, trade names, and copyrights of other companies, which are the property of their respective owners. Solely for convenience, the trademarks, service marks, trade names, and copyrights referred to in this prospectus are listed without the <sup>TM</sup>, <sup>SM</sup>, <sup>©</sup>, and <sup>®</sup> symbols, but we will assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors, if any, to these trademarks, service marks, trade names, and copyrights.

i

**PROSPECTUS SUMMARY**

*This summary contains basic information about us and our business but does not contain all of the information that is important to your investment decision, and is qualified in its entirety by the more detailed information and consolidated financial statements included elsewhere in this prospectus. You should carefully read this summary together with the more detailed information contained elsewhere in this before making an investment decision. Investors should carefully consider the information set forth under the caption "Risk Factors" appearing elsewhere in this prospectus. Unless the context requires otherwise, references in this prospectus to "Exxel," the "Company," "we," "us," and "our" refer to Exxel Pharma Inc.*

**Overview**

Exxel Pharma Inc. is a biopharmaceutical company focused on developing novel therapeutics for the treatment of neuronal hypersensitivity disorders. Our lead product candidate, EX937, is a small-molecule agent developed to selectively and peripherally inhibit the enzyme fatty acid amide hydrolase (FAAH). EX937 is actively excluded from the central nervous system (CNS), which greatly reduces the potential for centrally mediated side-effects, and differentiates its mechanism of action from FAAH inhibitors of the past. We are developing EX937 for refractory chronic cough (RCC) and other hypersensitivity disorders that share the pathophysiology of hypersensitized sensory neurons. Investigational New Drug ("IND") enabling studies supporting our early clinical development program (ERCP) have been completed and we target the first-in-human (FIH) dosing in 2026, pending capitalization and completion of drug product manufacturing.

Our lead indication for EX937 is RCC (refractory chronic cough), which is defined as cough lasting for longer than eight weeks despite treatment of any underlying causes, such as asthma or post-nasal drip. It is estimated that RCC impacts more than 25 million people globally and the market is estimated to reach $11B by 2027<sup>1</sup>.

Key attributes of EX937, including its complete exclusion from the CNS, differentiate this agent from other FAAH inhibitors in development, and make it uniquely well-suited for treatment of diseases such as RCC, hyperactive bladder, painful peripheral neuropathies, and migraine headache. Published preclinical studies, from the laboratory of our Chief Scientific Officer (CSO) and competing laboratories around the world, have documented EX937's therapeutic potential in preclinical animal models of these diseases. We therefore consider EX937 a "pipeline in a drug", with future expansion potential across multiple disease markets. We are focused on the execution of a human Phase I/Ib clinical trial planned for 2026, which will aim to establish the compound's safety and pharmacokinetic profiles in humans. The safety and pharmacokinetic profiles will tell us what type of problems EX937 might cause, if any, and how likely they are, plus how the drug moves through the body and how the body gets rid of it.

We have an exclusive license for the worldwide development and commercialization rights of EX937, in all indications. EX937 and backup molecules are protected by a comprehensive patent estate including issued and pending patents, with composition of matter coverage in the major pharmaceutical markets until 2031/2032 and with potential 5-year patent term extension. A pending patent application has potential to extend composition of matter coverage until 2044.

Exxel is led by a small team of experienced biotech executives and scientists, and our team is supported by external, subject matter experts and advisors.

![](image_002.jpg)

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| | |
|:---|:---|
| 1 | Meltzer, E. O. (2021). Prevalence and Burden of Chronic Cough in the United States. The Journal of Allergy and Clinical Immunology, 9(11), 4037–4044.<br> Lee JH et. al. Epidemiology of adult chronic cough: disease burden, regional issues, and recent findings. Asia Pac Allergy. 2021 Oct 18;11(4):e38. doi: 10.5415/apallergy.2021.11.e38. PMID: 34786368; PMCID: PMC8563099.<br> Source: Transparency Market Research  |

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**Our Pipeline** 

Exxel has in-licensed two assets from the University of California, Irvine, the EX937 program and the ARN program. As outlined above, EX937 is a "pipeline in a drug" therapeutic with future market expansion expected across multiple diseases and global markets. Its lead indication is RCC. The ARN program counts two families of globally active FAAH inhibitors, the older EX597 drug (also known as URB597) and a family of newer molecules with improved pharmacokinetic properties. ARN compounds have applications in multiple CNS disorders, including social anxiety disorder and autism spectrum disorder, which are at present untreated. Exxel is currently evaluating options for effectively commercializing the ARN program without distracting resources from the lead asset EX937. Key future high-value indications and estimated market sizes for our pipeline are listed below.

**Our Strategy**

We are focused on the development and commercialization of EX937 as potential treatment for patients suffering from RCC, and with future potential expansion to additional indications including hyperactive bladder, painful peripheral neuropathies, and migraine headache. The key components of our strategy are summarized below:

●  ***Complete EX937 drug product manufacturing.*** We expect the EX937 drug product capsules for the phase I clinical trial to be available in Q4 of 2025. With typical non-clinical IND-enabling studies already completed, this sets the stage for first human dosing under the Australian regulatory environment.

●  ***Advance EX937 into clinical testing.*** We have planned a two-part SAD/MAD (single ascending dose/multiple ascending dose) cohort study in healthy human volunteers to elucidate the safety, tolerability, pharmacokinetics, and pharmacodynamics of EX937. The trial is expected to begin in 2026 and will include a cough challenge probe cohort in Part 2 where cough will be induced pharmacologically with the goal of obtaining exploratory data on inhaled cough challenge methodology and possibly, efficacy and dose ranging for a future phase IIa trial<sup>2</sup>.

●  ***Expand the EX937 platform to additional indications.*** Pending capitalization and/or external partner support, we will establish clinical proof of concept for EX937 in additional Phase IIa patient trials, including hyperactive bladder, painful peripheral neuropathies, and migraine headache.

●  ***Determine the commercialization strategy for ARN.*** Different commercialization strategies are currently being evaluated for the ARN program. The program includes the first globally active FAAH inhibitor to be discovered, URB597, which is supported by close to 500 scientific publications. This rich track record is accompanied by a dwindling patent life, which makes advancing this asset a challenging proposition. However, a new generation of improved, patented and patent pending, derivative compounds, the ARNs, was developed and these have plenty of remaining patent life. Exxel has multiple options for creating value from this program, including developing new intellectual property around URB597, and advancing an ARN drug candidate through IND-enabling studies and into the clinic. These are activities that may be executed internally for moderate costs, but with significant potential upside. On the other hand, it may also prove possible to out-license the program to a partner who would then take over the development in return for sharing future revenues.

***●***  ***Value creation and optimization.*** We have exclusive rights to both the EX937 and ARN programs (basically the patents covering composition of matter and use) and aim to develop and commercialize these independently or via external collaborations. Our strategy for creating value follows the conventional small pharma template of advancing a novel, patented, preclinical therapeutic across multiple value-driving development milestones, with the goal of achieving clinical proof-of-concept. This pharma playbook is rich with examples of high-value licensing and M&A activities, and in the case of RCC, transactions like the $2 billion acquisition of Bellus Health by GSK provide an attractive benchmark. At the time of acquisition, Bellus Health had begun Phase III clinical testing of its BLU-5973 cough drug and although we aim to follow a similar strategy, there is no guarantee that we will succeed.

2 Morice AH, Kastelik JA, Thompson R. Cough challenge in the assessment of cough reflex. Br J Clin Pharmacol. 2001, 52(4):365-75.

**Refractory Chronic Cough**

Based on our preclinical data, significant unmet medical needs, a global market opportunity and compelling industry comparables, we identified RCC as the lead development indication for EX937. RCC represents a unique market opportunity in that no FDA-approved drugs are available to this patient population. The only marketed, competing product is Merck's Gefapixant, which was so far denied approval by the FDA, and which is only available in the EU, Switzerland and Japan.

***Prevalence.*** Coughing is the body's mechanism for clearing irritants from the airways and for most people it is experienced as an acute event. However, RCC is defined as cough persisting for longer than eight weeks and regardless of treatment of any underlying condition, such as post-nasal drip or asthma. The cause sometimes will be known, examples are Chronic Obstructive Pulmonary Disease (COPD) or asthma, but often there is no readily identifiable cause, and this is referred to as idiopathic RCC. An estimated 5-10% of the general population suffers from RCC and live with severe negative impacts to their quality of life. For example, RCC patients experience interrupted sleep and fatigue, incontinence, rib fractures, vomiting and/or social embarrassment. About 50% of this patient population suffer from clinical anxiety or depression.

***Current treatment options.*** RCC is caused by hypersensitive airway nerves, which aberrantly trigger the cough response in response to harmless stimuli, for example scents, talking, or changes in temperature. Hypersensitization of these sensory airway nerves may occur during a respiratory infection but persists after the infection is cleared. For this reason, RCC is sometimes called a neuronal hypersensitivity disorder. Off-label use of corticosteroids, tricyclic antidepressants, or pain medications such as gabapentin or opioids, offer limited relief to a small fraction of RCC patients. However, the side-effects of these off-label treatments, including risk of nausea, vomiting, dizziness, constipation, and addiction, severely limit their use, and a significant unmet medical need exists.

***Key market insights for RCC include:***

● Global RCC market is estimated to reach $11 billion by 2027

● RCC affects approximately 5-10% of the global adult population

● No FDA-approved therapies currently available

● Existing off-label treatments show marginal effects and safety concerns

● The incidence of chronic cough is on the rise due to factors such as smoking, pollution, asthma, COPD and an aging population

**Lead Product Candidate: EX937 (also known as URB937)**

EX937 is a proprietary, small-molecule therapeutic which selectively and peripherally inhibits the enzyme fatty acid amide hydrolase (FAAH). EX937 is actively excluded from the central nervous system (CNS), greatly reducing the potential for centrally mediated side effects. Key features of the EX937 program include:

● Close to first-time-in-human (Phase 1) dosing and preliminary efficacy readout

● IND-enabling non-clinical studies completed, Investigator's Brochure completed

● Preclinical proof-of-concept demonstrated across a wide range of preclinical animal models

● Evidence of reduced cough frequency in the nonclinical capsaicin cough challenge model (guinea pig)

● Well-documented mechanism of action; EX937 works by blocking FAAH, thereby increasing levels of the signaling molecule anandamide, which has been shown to decrease neuronal excitability in animal and human models

● Increased anandamide levels have potential application in diseases such as RCC, hyperactive bladder, neuropathic pain and migraine headache

● "Pipeline-in-a-Drug" with commercial potential in multiple disease areas, representing large unmet medical needs and markets

● Drug profile predicts once-daily oral dosing

● In addition to the unmet medical need and market potential, the endpoints in RCC clinical trials can be objectively quantified using a wrist monitor to capture coughing frequency

● The initial Phase 1a/b study: Future cough challenge studies in healthy human volunteers will include an inhalation capsaicin cough challenge cohort to inform tolerability, pharmacodynamic and dose ranging data for a definitive proof-of-concept study<sup>3</sup>

● Our lead indication, RCC, is a global market opportunity with no FDA approved treatments available to patients

***FAAH inhibition for RCC.***

RCC is caused by hypersensitization of peripheral sensory neurons in the upper airways, which causes these neurons to respond inappropriately to otherwise innocuous stimuli (for example, speaking or changes in external temperature). From this it follows that one approach to treating RCC is to target these overactive nerves with the goal of limiting their excitability, thus reducing the urge to cough. This can be accomplished by inhibiting FAAH, the enzyme that degrades the signaling molecule anandamide. When FAAH activity is reduced by a small-molecule inhibitor such as EX937, anandamide levels increase in tissue, leading to reduced excitability of sensory neurons and consequently cough suppression. This was demonstrated in preclinical studies, which showed that EX937 inhibits vagal sensory neuron firing and suppresses cough induced in guinea pigs by administration of capsaicin (red hot chili pepper). Representative data from this unpublished work is shown in the business section under the title: FAAH inhibition and suppression of vagus nerve activity and cough in the guinea pig.

![](image_003.jpg)

![](image_004.jpg)

3 Morice AH, Kastelik JA, Thompson R. Cough challenge in the assessment of cough reflex. Br J Clin Pharmacol. 2001, 52(4):365-75.

**Risk Factor Summary**

Our business is subject to many significant risks, as more fully described in the section titled "Risk Factors" immediately following this prospectus summary. You should read and carefully consider these summary risks, together with the risks set forth under the section titled "Risk Factors" and all of the other information in this prospectus, including the financial statements and the related notes included elsewhere in this prospectus, before deciding whether to invest in our common stock. If any of the risks discussed in this prospectus actually occurs, our business, prospects, financial condition or operating results could be materially and adversely affected. In particular, our risks include, but are not limited to, the following:

● We have a limited operating history, have not initiated, conducted or completed any clinical trials, and have no products approved for commercial sale, which may make it difficult for you to evaluate our current business and likelihood of success and viability.

● We have incurred significant losses since inception, we expect to incur losses in the future and we may not be able to generate sufficient revenue to achieve and maintain profitability.

● We will require substantial additional capital to finance our operations in the future. If we are unable to raise such capital when needed, or on acceptable terms, we may be forced to curtail, delay or discontinue one or more of development programs or future commercialization efforts.

● Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing.

● Any delays in the commencement or completion, or termination or suspension, of our ongoing, planned or future clinical trials could result in increased costs to us, delay or limit our ability to generate revenue and adversely affect our commercial prospects.

● The outcome of pre-clinical testing and early clinical trials may not be predictive of the success of later clinical trials, and the results of our clinical trials may not satisfy the requirements of the U.S. Food and Drug Administration or other comparable foreign regulatory authorities.

● If we experience delays or difficulties in enrolling patients in our ongoing or planned clinical trials, our receipt of necessary regulatory approval could be delayed or prevented.

● We may be required to perform additional or unanticipated clinical trials to obtain approval or be subject to post-marketing testing requirements to maintain regulatory approval. If our candidates prove to be ineffective, unsafe or commercially unviable, our entire technology platform and pipeline would have little, if any, value, which would have a material and adverse effect on our business, financial condition, results of operations and prospects.

● Adverse side effects or other safety risks associated with our drug candidates could delay or preclude approval, cause us to suspend or discontinue clinical trials or abandon further development, limit the commercial profile of an approved label, or result in significant negative consequences following marketing approval, if any.

● Our products may never achieve market acceptance.

● We face significant competition, and if our competitors develop and market technologies or products more rapidly than we do or that are more effective, safer or less expensive than the products we develop, our commercial opportunities will be negatively impacted.

● We rely on third parties to manufacture our product candidates and conduct our pre-clinical studies and clinical trials. If these third parties do not successfully perform their contractual and regulatory duties or meet expected deadlines, we may not be able to obtain regulatory approval for or commercialize our drug candidates and our business could be substantially harmed.

● Even if we are successful in completing pre-clinicals studies and clinical trials, we may not be successful in commercializing any drug candidate.

● The development and commercialization of pharmaceutical products are both subject to extensive regulation.

● We may not be able to protect our intellectual property and proprietary rights throughout the world.

**Corporate History and Information**

Exxel Pharma Inc. ("Exxel Pharma U.S.") is a biopharmaceutical company that was incorporated in the state of Colorado on June 30, 2018, as Aspire BioScience, Inc., and changed its name to Exxel Pharma Inc. on March 25, 2025. Exxel Pharma U.S. was originally formed as a wholly-owned subsidiary of Exxel Pharma Inc., an entity incorporated in British Columbia, Canada on June 20, 2017 ("Exxel Pharma Canada"). Exxel Pharma U.S. also operates Exxel Pharma Australia Pty Ltd., a wholly-owned Australian subsidiary under Exxel Pharma Canada, that was incorporated on January 12, 2023 ("Exxel Pharma Australia").

Effective as of March 18, 2025, Exxel Pharma U.S., Exxel Pharma Canada, and each of the shareholders of Exxel Pharma Canada entered into a Securities Exchange Agreement (the "Exchange Agreement") whereby the shareholders of Exxel Pharma Canada, constituting 100% of the registered and beneficial owners of the capital stock of Exxel Pharma Canada, agreed to transfer to Exxel Pharma U.S., 100% of the right, title and interest in and to all of the shareholders' shares, options and warrants in Exxel Pharma Canada (collectively, the "Securities") in exchange for equivalent Securities of Exxel Pharma U.S.

The share exchange transaction between Exxel Pharma U.S., Exxel Pharma Canada and the shareholders of Exxel Pharma Canada was completed on April 1, 2025, based upon a 1-for-10 exchange ratio. Accordingly, in the exchange transaction, all of the persons who had been shareholders of Exxel Pharma Canada exchanged their Securities in that company on a 1-for-10 basis for equivalent Securities of Exxel Pharma U.S. The effect of completion of the share exchange transaction was to invert the relationship between Exxel Pharma U.S. and Exxel Pharma Canada, such that Exxel Pharma U.S., which had previously been the wholly-owned subsidiary of Exxel Pharma Canada, became the parent company, and Exxel Pharma Canada became the wholly-owned subsidiary of Exxel Pharma U.S.

Exxel Pharma U.S., Exxel Pharma Canada and Exxel Pharma Australia are hereinafter collectively referred to as the "Company," "Exxel Pharma Inc.," "We," "Our," or "Us." The Company's principal executive offices are located at 12635 E. Montview Blvd, Suite 134, Aurora, Colorado 80045. Our telephone number is 720-662-5177. Our website address is *www.exxelpharma.com*. Information contained on our website or connected thereto does not constitute part of, and is not incorporated by reference into, this prospectus or the Registration Statement of which it forms a part.

The Company's focus is on developing innovative therapeutics for neuronal hypersensitivity disorders, and its lead program, EX937, is a novel, orally administered, proprietary small molecule designed to specifically and peripherally inhibit the fatty acid amide hydrolase (FAAH) enzyme. In addition to EX937, the Company is advancing its ARN compounds, a second program targeting social anxiety disorder and autism spectrum disorder.

**Implications of Being an Emerging Growth Company and a Smaller Reporting Company**

We are an "emerging growth company," as defined in Section 2(a) of the Securities Act of 1933, as amended (the "Securities Act"), as modified by the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As such, we are eligible to take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not "emerging growth companies" including, but not limited to:

● being permitted to present only two years of audited financial statements and only two years of related disclosure in *"Management's Discussion and Analysis of Financial Condition and Results of Operations*" in this prospectus;

● being permitted to provide less extensive narrative disclosure than other public companies, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements;

● being permitted to utilize exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved;

● being permitted to defer complying with certain changes in accounting standards; and

● being permitted to use test-the-waters communications with qualified institutional buyers and institutional accredited investors.

We intend to take advantage of these and other exemptions available to "emerging growth companies." We could remain an "emerging growth company" until the earliest of (i) the last day of our fiscal year following the fifth anniversary of the closing of this offering, (ii) the last day of the first fiscal year in which our annual gross revenues exceed $1.235 billion, (iii) the last day of our fiscal year in which we are deemed to be a "large accelerated filer" as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (which would occur if the market value of our equity securities that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter), or (iv) the date on which we have issued more than $1 billion in nonconvertible debt during the preceding three-year period.

The JOBS Act permits an "emerging growth company" like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates. This means that an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to delay such adoption of new or revised accounting standards.

We are also a "smaller reporting company" as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as our voting and non-voting common stock held by non-affiliates is less than $250 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100 million during the most recently completed fiscal year and our voting and non-voting common stock held by non-affiliates is less than $700 million measured on the last business day of our second fiscal quarter.

**THE OFFERING**

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| | |
|:---|:---|
| **Common stock offered by the selling security holders** | 476,149 shares. |
| **Common stock outstanding** | 4,599,327 shares exclusive of shares issuable upon exercise of outstanding options, conversion of outstanding convertible debentures or exercise of outstanding warrants. |
| **Use of proceeds** | We will not receive any proceeds from any sale of shares of common stock pursuant to this prospectus. |
| **Proposed OTCQB listing** | We intend to apply to list our shares of common stock on the OTCQX® Best Market or the OTCQB® Venture Market, subject to official notice of issuance, under the symbol [ ]. No assurance can be given that our applications will be approved. If our applications are not approved, we will not continue with this offering. |
| L**ock-up agreements** | We, our successors, all of our directors, officers and holders of more than 5.0% of our outstanding common stock have agreed with the placement agent that conducted private placement offerings of convertible notes to accredited investors, subject to certain exceptions, not to sell, transfer or dispose of, directly or indirectly, any of our shares of common stock or securities convertible into or exercisable or exchangeable for our common stock for a period of 180 days after the date of the earlier of a direct listing of our shares on a national securities exchange or completion of an initial public offering or follow-on offering of not less than $5,000,000 on a national securities exchange. See "Shares Eligible for Future Sale" for more information. |
| **Risk factors** | Investing in our common stock involves a high degree of risk. See the section titled "Risk Factors" and other information included in this prospectus for a discussion of factors you should consider before investing in our common stock. |

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Except as otherwise indicated, the information contained in this prospectus is based on 4,599,327 shares of our common stock outstanding as of September 19, 2025, after giving effect to the following:

● no exercise of the warrants issued to the purchasers of our convertible debentures

● no election by the purchasers of our convertible debentures to exercise their option to convert to shares of our common stock.

The number of shares of common stock outstanding does not include the shares issuable under our options outstanding as follows:

There are currently 417,000 options outstanding, with an exercise price of CAD 1.25 or 2.50 and expiring between 2028 and 2035. While the Company does not maintain a formal stock option plan or equity incentive plan, such options were granted pursuant to individual agreements approved by the Board of Directors.

**SUMMARY FINANCIAL DATA**

The following tables set forth our summary financial data for the periods indicated. We have derived the statements of operations data for the period from January 1, 2024 to December 31, 2024, and the balance sheet data as of December 31, 2024, from our audited financial statements included elsewhere in this prospectus. In addition, we have derived the statement of operations and balance sheet data as of and for the six month period ended June 30, 2025 from our unaudited condensed consolidated financial statements included elsewhere in this prospectus. We have prepared the unaudited condensed consolidated financial statements on the same basis as the audited financial statements, which reflects all adjustments, consisting only of normal recurring adjustments that, in our opinion, are necessary to state fairly the financial information set forth in those statements. Our historical results are not necessarily indicative of the results that should be expected for any future period. You should read the following summary financial data together with the more detailed information contained in "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and the related notes included elsewhere in this prospectus.

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| | | |
|:---|:---|:---|
|  | **Year Ended <br> December 31, <br> 2024<br> (Audited)** | **Six Months <br> Ended <br> June 30,<br> 2025 <br> (Unaudited)** |
| Revenue | $225000 | $— |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 89178 | 14122 |
| &nbsp;&nbsp;&nbsp;General and administrative | 511564 | 447633 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (375742) | (461755) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (31079) | (134350) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability |  | (79000) |
| &nbsp;&nbsp;&nbsp;Gain (loss) on foreign currency transactions | (2350) | 11137 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (33429) | (202213) |
| Loss before income taxes | $(409171) | $(663968) |
| Benefit from (provision for) income taxes |  |  |
| Net loss | $(409171) | $(663968) |
| Weighted-average common shares outstanding, basic and diluted | 4516808 | 4599327 |
| Basic and diluted net loss per common share | $(0.09) | $(0.14) |

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| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **June 30, <br> 2025** |
| **Balance Sheet Data:** |  |  |
| &nbsp;&nbsp;&nbsp;Current assets | $506279 | $115793 |
| &nbsp;&nbsp;&nbsp;Non-current assets | $- | $- |
| &nbsp;&nbsp;&nbsp;Total assets | $506279 | $115793 |
| &nbsp;&nbsp;&nbsp;Current liabilities | $1652758 | $1937014 |
| &nbsp;&nbsp;&nbsp;Total liabilities | $1652758 | $1937014 |
| &nbsp;&nbsp;&nbsp;Shareholders' equity (deficit) | $(1146479) | $(1821221) |

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**RISK FACTORS**

*Investing in our common stock is speculative and involves a high degree of risk. You should consider carefully the risks described below, together with the other information contained in this prospectus, including our financial statements and the related notes included elsewhere in this prospectus and in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" before deciding whether to invest in our common stock. If any of the following risks occur, our business, financial condition, results of operations and future growth prospects could be materially and adversely affected. Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations. In these circumstances, the market price of our common stock could decline, and you may lose all or part of your investment. This prospectus also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in the forward-looking statements as a result of a number of factors, including the risks described below. See the section titled "Special Note Regarding Forward-Looking Statements".*

**Risks Related to Our Financial Position and Need for Additional Capital**

***We have a limited operating history, which may make it difficult to evaluate our current business and predict our future performance.***

We are a pre-clinical stage biopharmaceutical company with a limited operating history upon which you can evaluate our business and prospects. We commenced operations in 2018, have no products approved for commercial sale and generated only limited revenues from a sublicensing agreement which has subsequently expired.

We have not yet commenced human clinical trials for any our product candidate, nor have we demonstrated an ability to initiate or successfully complete any large-scale or pivotal clinical trials, obtain marketing approvals, manufacture a commercial-scale product or arrange for a third party to do so on our behalf, or conduct sales and marketing activities necessary for successful product commercialization. As a result, it may be more difficult for you to accurately predict our likelihood of success and viability than it could be if we had a longer operating history.

Drug development is a highly uncertain undertaking and involves a substantial degree of risk. We expect that it will take several years, if ever, before we have a commercialized product and generate revenue from product sales. Even if we succeed in receiving marketing approval for and commercializing one or more of our product candidates, we expect that we will continue to incur substantial research and development and other expenses in order to discover, develop and market additional potential products. Furthermore, our estimates of our defined patient populations available for study and treatment may be lower than expected, which could adversely affect our ability to conduct clinical trials and may also adversely affect the size of any market for medicines we may successfully commercialize. Our approach may not result in time savings, higher success rates or reduced costs as we expect it to, and if not, we may not attract collaborators or develop new drugs as quickly or cost effectively as expected and therefore we may not be able to commercialize our approach as originally expected.

***We have incurred significant losses since inception, we expect to incur losses in the future and we may not be able to generate sufficient revenue to achieve and maintain profitability.***

We have never been profitable and have incurred significant losses in each year since inception. For the years ended December 31, 2024 and 2023, we reported net losses of $409,171 and $430,098, respectively, and as of December 31, 2024 and December 31, 2023, we had accumulated deficits of $4,010,601 and $3,601,430, respectively. For the six months ended June 30, 2025 and 2024, we reported net losses of $663,968 and $173,354, respectively, and as of June 30, 2025 and December 31, 2024, we had accumulated deficits of $4,674,569 and $4,010,601, respectively. To date, we have funded our operations primarily through capital raises.

We expect to continue to incur significant expenses and to incur operating losses for the foreseeable future, and we expect these losses to increase as we continue our development of, and seek regulatory approvals for, our product candidates, and begin to commercialize approved drugs, if any. Typically, it takes many years to develop a new drug from the time it is discovered to when it is available for treating patients. The net losses we incur may fluctuate significantly from quarter to quarter such that a period-to-period comparison of our results of operations may not be a good indication of our future performance. The size of our future net losses will depend, in part, on the rate of future growth of our expenses and our ability to generate revenue. We may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may increase our expenses and adversely affect our ability to generate revenue, and our ability to manage these aspects of our business will affect the size of our future net losses. Our prior losses and expected future losses have had and will continue to have an adverse effect on our working capital, our ability to achieve and maintain profitability and the performance of our stock.

***Our ability to generate revenue and achieve profitability depends significantly on our ability to achieve several milestones relating to the discovery, development and commercialization of our product candidates.***

Our financial condition and operating results may vary significantly in the future due to a variety of factors, many of which are beyond our control. Factors relating to our business that may contribute to these fluctuations include:

● continue our current research and development programs, including conducting laboratory, pre-clinical studies for product candidates;

● initiate clinical trials for product candidates;

● the success of our clinical trials through all phases of clinical development;

● delays in the commencement, enrollment and timing of clinical trials;

● our ability to secure and maintain collaborations, licensing or other arrangements for the future development and/or commercialization of our product candidates, as well as the terms of those arrangements;

● our ability to obtain, as well as the timeliness of obtaining, additional funding to develop our product candidates;

● the results of clinical trials or marketing applications for product candidates that may compete with our product candidates;

● competition from existing products or new products that may receive marketing approval;

● potential side effects of our product candidates that could delay or prevent approval or cause an approved drug to be taken off the market;

● any delays in regulatory review and approval of our product candidates;

● our ability to identify and develop additional product candidates;

● the ability of patients or healthcare providers to obtain coverage or sufficient reimbursement for our products;

● our ability, and the ability of third parties such as Clinical Research Organizations, or CROs, to adhere to clinical study and other regulatory requirements;

● the ability of third-party manufacturers to manufacture our product candidates and key ingredients needed to conduct clinical trials and, if approved, successfully commercialize our products;

● the costs to us, and our ability as well as the ability of any third-party collaborators, to obtain, maintain and protect our intellectual property rights;

● costs related to and outcomes of potential intellectual property litigation;

● our ability to adequately support future growth;

● our ability to attract and retain key personnel to manage our business effectively; and

● our ability to build our finance infrastructure and, to the extent required, improve our accounting systems and controls.

Developing new products and services is a speculative and risky endeavor. Products or services that initially show promise may fail to achieve the desired results or may not achieve acceptable levels of analytical accuracy or clinical utility. We may need to alter our products in development and repeat clinical studies before we identify a potentially successful product or service. Product development is expensive, may take years to complete and can have uncertain outcomes. Failure can occur at any stage of development. If, after development, a product or service appears successful, we may, depending on the nature of the product or service, still need to obtain FDA and other regulatory clearances, authorizations or approvals before we can market it. The FDA's clearance, authorization or approval pathways are likely to involve significant time, as well as additional research, development and clinical study expenditures. The FDA may not clear, authorize or approve any future product or service we develop. Even if we develop a product or service that receives regulatory clearance, authorization or approval, we would need to commit substantial resources to commercialize, sell and market it before it could be profitable, and the product or service may never be commercially successful. Additionally, development of any product or service may be disrupted or made less viable by the development of competing products or services.

New potential products and services may fail any stage of development or commercialization and if we determine that any of our current or future products or services are unlikely to succeed, we may abandon them without any return on our investment. If we are unsuccessful in developing additional products or services, our potential for growth may be impaired.

In cases where we are successful in obtaining regulatory approval to market one or more of our drug candidates, our revenue will be dependent, in part, upon the size of the markets in the territories for which we gain regulatory approval, the accepted price for the product, the ability to obtain coverage and reimbursement, and whether we own the commercial rights for that territory. If the number of our addressable patients is not as significant as we estimate, the indication approved by regulatory authorities is narrower than we expect, or the treatment population is narrowed by competition, physician choice or treatment guidelines, we may not generate significant revenue from sales of such products, even if approved.

We expect our research and development expenses to continue to be significant in connection with our continued investment in our ongoing and planned clinical trials for our current product candidates and any future product candidates we may develop. Furthermore, if we obtain regulatory approval for our product candidates, we expect to incur increased sales and marketing expenses. In addition, once we are a public company, we will incur additional costs associated with operating as a public company. As a result, we expect to continue to incur significant and increasing operating losses and negative cash flows for the foreseeable future. These losses have had and will continue to have a material adverse effect on our stockholders' equity, financial position, cash flows and working capital.

***We will require substantial additional funding. If we are unable to raise capital on favorable terms when needed, we could be forced to curtail, delay or discontinue our research or drug development programs or any future commercialization efforts.***

We are currently advancing our product candidate, EX937 through pre-clinical stage development. Developing drugs is expensive and we expect our research and development expenses to increase substantially in connection with our ongoing activities, particularly as we advance our product candidates in clinical studies.

As of December 31, 2024 and June 30, 2025, we had cash of $444,196 and $96,313, respectively. We will need to seek additional funds through public or private equity or debt financings, government or other third-party funding, marketing and distribution arrangements and other collaborations, strategic alliances and licensing arrangements or a combination of these approaches in order to continue to advance our product candidate, EX937 through pre-clinical development, and will also require additional capital to obtain regulatory approval for, and to commercialize, our product candidates. Even if we believe we have sufficient funds for our current or future operating plans, we may seek additional capital if market conditions are favorable or if we have specific strategic considerations.

Any additional fundraising efforts may divert our management from their day-to-day activities, which may adversely affect our ability to develop and commercialize our product candidates. In addition, we cannot guarantee that future financing will be available in sufficient amounts or on terms acceptable to us, if at all. Moreover, the terms of any financing may adversely affect the holdings or the rights of our stockholders and the issuance of additional securities, whether equity or debt, by us, or the possibility of such issuance, may cause the market price of our shares to decline. The sale of additional equity or convertible securities may dilute our stockholders. The incurrence of indebtedness would result in increased fixed payment obligations and we may be required to agree to certain restrictive covenants, such as limitations on our ability to incur additional debt, limitations on our ability to acquire, sell or license intellectual property rights and other operating restrictions that could adversely impact our ability to conduct our business. We could also be required to seek funds through arrangements with collaborative partners or otherwise at an earlier stage than otherwise would be desirable, and we may be required to relinquish rights to some of our technologies or product candidates or otherwise agree to terms unfavorable to us, any of which may have a material adverse effect on our business, operating results and prospects.

If we are unable to obtain funding on a timely basis, we may be required to significantly curtail, delay or discontinue one or more of our research or development programs or the commercialization of any product candidates or be unable to expand our operations or otherwise capitalize on our business opportunities, as desired, which could materially affect our business, financial condition and results of operations.

***Our financial condition raises substantial doubt as to our ability to continue as a going concern.***

As of December 31, 2024 and June 30, 2025, we had approximately $0.4 million and approximately $0.1 million, respectively, in cash and cash equivalents, and a working capital deficiency of approximately $1.1 million and approximately $1.8 million, respectively, and we have incurred and expect to continue to incur significant costs in pursuit of our lead drug candidate, EX937. Our consolidated financial statements have been prepared assuming that we will continue to operate as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. To date, we have not generated product revenues from our activities and have incurred substantial operating losses. We expect that we will continue to generate substantial operating losses for the foreseeable future until we complete development and approval of our product candidates. We will continue to fund our operations primarily through utilization of our current financial resources and additional raises of capital.

These conditions raise substantial doubt about our ability to continue as a going concern. Additionally, our independent registered public accounting firm included in its audit opinion for the year ended December 31, 2024 an explanatory paragraph that there is substantial doubt as to our ability to continue as a going concern. We plan to address these conditions by raising funds from this public offering, from subsequent public or private offerings of equity or debt securities, and other funding sources. However, there can be no assurance that such funding will be available to us, will be obtained on terms favorable to us or will provide us with sufficient funds to meet our objectives. The reaction of investors to the inclusion of a going concern statement by our auditors and our potential inability to continue as a going concern may materially adversely affect our ability to raise new capital or enter into partnerships. If we become unable to continue as a going concern, we may have to liquidate our assets and the value we receive for our assets in liquidation or dissolution could be significantly lower than the value reflected in our consolidated financial statements.

**Risks Related to the Discovery and Development of Our Product Candidates**

***We are currently and substantially depending on EX937, which is our lead product candidate and which is currently undergoing drug product development and formulation. If we are unable to complete development of, obtain approval for and commercialize EX937, in a timely manner, our business may be harmed.***

Our future success is dependent on our ability to timely and successfully complete drug manufacturing, clinical trials, obtain marketing approval for and successfully commercialize EX937, which is currently our main product candidate and which recently completed the typical pre-clinical stages of development.

We have no products approved for sale. The success of our business, including our ability to finance our company and generate any revenue in the future, will primarily depend on the successful development, regulatory approval and commercialization of EX937, which may never occur.

In the future, we may also become dependent on other product candidates that we may develop or acquire. However, given our early stage of development, it may be many years, if at all, before we may be able to demonstrate the safety and efficacy of EX937 or any other product candidates to warrant approval for commercialization.

The clinical and commercial success of our current and any future product candidates will depend on a number of factors, including the following:

● our ability to raise any additional required capital on acceptable terms, or at all;

● our ability to complete IND-enabling studies and successfully submit an IND to the FDA;

● timely completion of our drug product manufacturing and clinical trials, which may be slower or cost more than we currently anticipate and will depend substantially upon the performance of third-party contractors;

● requirements by the FDA or similar foreign regulatory agencies to conduct additional clinical trials or other studies beyond those planned to support approval of our product candidates;

● acceptance of our proposed indications and primary endpoint assessments relating to the proposed indications of our product candidates by the FDA and similar foreign regulatory authorities;

● our ability to consistently manufacture our product candidates on a timely basis;

● our ability, and the ability of any third parties with whom we contract, to remain in good standing with regulatory agencies and develop, validate and maintain commercially viable manufacturing processes that are compliant with current good manufacturing practices ("cGMPs");

● our ability to demonstrate to the satisfaction of the FDA and similar foreign regulatory authorities the safety, efficacy and acceptable risk-benefit profile of our product candidates;

● the prevalence, duration and severity of potential side effects or other safety issues experienced with our product candidates or future approved products, if any;

● the timely receipt of necessary marketing approvals from the FDA and similar foreign regulatory authorities;

● achieving and maintaining, and, where applicable, ensuring that our third-party contractors achieve and maintain, compliance with our contractual obligations and with all regulatory requirements applicable to our current and future product candidates or approved products, if any;

● our ability to successfully develop a commercial strategy and thereafter commercialize our product candidates in the United States and internationally, if approved for marketing, sale and distribution in such countries and territories, whether alone or in collaboration with others;

● the availability of coverage and adequate reimbursement from managed care plans, private insurers, government payors (such as Medicare and Medicaid) and other third-party payors for any of our product candidates that may be approved;

● the convenience of our treatment or dosing regimen;

● acceptance by physicians, payors and patients of the benefits, safety and efficacy of our product candidates, if approved, including relative to alternative and competing treatments;

● the willingness of physicians, operators of hospitals and clinics and patients to utilize or adopt our therapeutics approach;

● patient demand for our current or future product candidates, if approved;

● our ability to establish and enforce intellectual property rights in and to our product candidates; and

● our ability to avoid third-party patent interference, intellectual property challenges or intellectual property infringement claims.

These factors, many of which are beyond our control, could cause us to experience significant delays or an inability to obtain regulatory approvals or commercialize our current or future product candidates. Even if regulatory approvals are obtained, we may never be able to successfully commercialize our product candidates. Accordingly, we cannot provide assurances that we will be able to generate sufficient revenue through the sale of our product candidates to continue our business or achieve profitability.

***Our approach in developing product candidates is based on novel ideas and technologies that are unproven and may not result in marketable products, which exposes us to unforeseen risks and makes it difficult for us to predict the time and cost of product development and potential for regulatory approval.***

We may spend substantial time and substantial funds attempting to develop our current product candidates and never succeed in developing a marketable product. We are unable to predict when or if our drug candidates will prove effective or safe in humans or if we will obtain marketing approval. Before obtaining marketing approval from regulatory authorities for the sale of any drug candidate, we must complete pre-clinical development and then conduct extensive clinical trials to demonstrate the safety and efficacy of our drug candidates in humans. Clinical testing is expensive, difficult to design and implement, can take many years to complete and is uncertain as to the outcome. A failure of one or more clinical trials can occur at any stage of testing. The outcome of pre-clinical testing and early clinical trials may not be predictive of the success of later clinical trials, and interim or preliminary results of a clinical trial do not necessarily predict final results. In particular, the small number of patients in our early clinical trials may make the results of these trials less predictive of the outcome of later clinical trials.

We may experience numerous unforeseen events during, or as a result of, clinical trials that could delay or prevent our ability to obtain marketing approval or commercialize our drug candidates, including:

● regulators, institutional review boards ("IRBs") or ethics committees ("ECs") may not authorize us or our investigators to commence a clinical trial or conduct a clinical trial at a prospective trial site;

● we may experience delays in reaching, or fail to reach, agreement on acceptable clinical trial contracts or clinical trial protocols with prospective trial sites;

● clinical trials for our drug candidates may produce negative or inconclusive results, and we may decide, or regulators may require us, to conduct additional clinical trials, delay clinical trials or abandon product development programs;

● the number of patients required for clinical trials for our drug candidates may be larger than we anticipate, enrollment in these clinical trials may be slower than we anticipate, participants may drop out of these clinical trials at a higher rate than we anticipate or the duration of these clinical trials may be longer than we anticipate;

● competition for clinical trial participants from investigational and approved therapies may make it more difficult to enroll patients in our clinical trials;

● we or third-party collaborators may fail to obtain the clearance or approval of companion diagnostic tests, if required, on a timely basis, or at all;

● our third-party contractors may fail to meet their contractual obligations to us in a timely manner, or at all, or may fail to comply with regulatory requirements;

● we may have to suspend or terminate clinical trials for our drug candidates for various reasons, including a finding that the participants are being exposed to unacceptable health risks;

● our drug candidates may have undesirable or unexpected side effects or other unexpected characteristics, causing us or our investigators, regulators or IRBs/ECs to suspend or terminate the trials;

● the cost of clinical trials for our drug candidates may be greater than we anticipate;

● the supply or quality of our drug candidates or other materials necessary to conduct clinical trials for our drug candidates may be insufficient or inadequate and result in delays or suspension of our clinical trials; and

● we or a diagnostic development partner may fail to receive regulatory approval of a companion diagnostic for use with a marketed product.

Our product development costs will increase if we experience delays in pre-clinical studies, GMP manufacturing of clinical supplies or clinical trials or in obtaining marketing approvals. We do not know whether any of our planned pre-clinical studies or clinical trials will begin on a timely basis or at all, will need to be restructured or will be completed on schedule, or at all. For example, the FDA or an equivalent foreign regulatory agency may place a partial or full clinical hold on any of our clinical trials for a variety of reasons.

Significant pre-clinical or clinical trial delays also could shorten any periods during which we may have the exclusive right to commercialize our drug candidates or allow our competitors to bring products to market before we do and impair our ability to successfully commercialize our drug candidates and may harm our business and results of operations.

***Any delays in the commencement or completion, or termination or suspension, of our ongoing, planned or future clinical trials could result in increased costs to us, delay or limit our ability to generate revenue and adversely affect our commercial prospects.***

Before we can initiate clinical trials of a drug candidate in any indication, we must submit the results of pre-clinical, IND-enabling studies to the FDA, or an equivalent foreign regulatory agency, along with other information, including information about the drug candidate's chemistry, manufacturing and controls and our proposed clinical trial protocol, as part of an IND or similar regulatory filing.

Before obtaining marketing approval from the FDA or similar foreign regulatory authorities for the sale of our product candidate in any indication, we must conduct extensive clinical studies to demonstrate safety and efficacy. Clinical testing is expensive, time consuming and uncertain as to outcome. In addition, we expect to rely in part on pre-clinical, clinical and quality data generated by our contract research organizations ("CROs") and other third parties for regulatory submissions for our drug candidates. While we have or will have agreements governing these third parties' services, we have limited influence over their actual performance. If these third parties do not make data available to us, or, if applicable, make regulatory submissions in a timely manner, in each case pursuant to our agreements with them, our development programs may be significantly delayed and we may need to conduct additional studies or collect additional data independently. In either case, our development costs would increase. We still need to receive FDA or EC clearance for the planed EX937 clinical trial before we can begin clinical trials and would require the same acceptance by the FDA prior to initiating any clinical trials in the United States for any of our other drug candidates. The FDA may require us to conduct additional pre-clinical studies for any drug candidate before it allows us to initiate clinical trials under any IND, which may lead to additional delays and increase the costs of our pre-clinical development programs.

Any delays in the commencement or completion of our ongoing, planned or future clinical trials could significantly affect our product development costs. We do not know whether our planned trials will begin on time or at all, or be completed on schedule, if at all. The commencement and completion of clinical trials can be delayed for a number of reasons, including delays related to:

● the FDA or similar foreign regulatory authority disagreeing as to the design or implementation of our clinical trials or with our recommended dose for any of our pipeline programs;

● obtaining FDA, or similar foreign regulatory authority, authorization to commence a trial or reaching a consensus with the FDA or similar foreign regulatory authority on trial design;

● failing to obtain regulatory clearance or approval of companion diagnostics we may use to identify patients for enrollment in our clinical trials;

● any failure or delay in reaching an agreement with CROs and clinical trial sites, the terms of which can be subject to extensive negotiation and may vary significantly among different CROs and trial sites;

● obtaining approval from one or more IRBs/ECs;

● IRBs/ECs refusing to approve, suspending or terminating the trial at an investigational site, precluding enrollment of additional subjects, or withdrawing their approval of the trial;

● changes to clinical trial protocol;

● clinical sites deviating from trial protocol or dropping out of a trial;

● failing to manufacture or obtain sufficient quantities of drug candidate or, if applicable, combination therapies for use in clinical trials;

● patients failing to enroll or remain enrolled in our trials at the rates we expect, or failing to return for post-treatment follow-ups;

● patients choosing an alternative treatment, or participating in competing clinical trials;

● lack of adequate funding to continue clinical trials;

● patients experiencing severe or unexpected drug-related adverse effects;

● occurrence of serious adverse events in trials of the same class of agents conducted by other companies;

● selecting or being required to use clinical end points that require prolonged periods of clinical observation or analysis of the resulting data;

● a facility manufacturing our drug candidates or any of their components being ordered by the FDA or similar foreign regulatory authority to temporarily or permanently shut down due to violations of cGMP regulations or other applicable requirements, or infections or cross-contaminations of drug candidates in the manufacturing process;

● any changes to our manufacturing process that may be necessary or desired;

● third-party clinical investigators losing the licenses or permits necessary to perform our clinical trials, not performing our clinical trials on our anticipated schedule or consistent with the clinical trial protocol, good clinical practices ("GCPs") or other regulatory requirements;

● us, or our third-party contractors not performing data collection or analysis in a timely or accurate manner or improperly disclosing data prematurely or otherwise in violation of a clinical trial protocol; or

● third-party contractors becoming debarred or suspended or otherwise penalized by the FDA or other government or regulatory authorities for violations of regulatory requirements, in which case we may need to find a substitute contractor, and we may not be able to use some or all of the data produced by such contractors in support of our marketing applications.

We could also encounter delays if a clinical trial is suspended or terminated by us, by the IRBs/ECs of the institutions in which such trials are being conducted, by a Data Safety Monitoring Board for such trial or by the FDA or similar foreign regulatory authority. Such authorities may impose such a suspension or termination due to a number of factors, including failure to conduct the clinical trial in accordance with regulatory requirements or our clinical protocols, inspection of the clinical trial operations or trial site by the FDA or similar foreign regulatory authority resulting in the imposition of a clinical hold, unforeseen safety issues or adverse side effects, failure to demonstrate a benefit from using a pharmaceutical, changes in governmental regulations or administrative actions or lack of adequate funding to continue the clinical trial. In addition, changes in regulatory requirements and policies may occur, and we may need to amend clinical trial protocols to comply with these changes. Amendments may require us to resubmit our clinical trial protocols to IRBs/ECs for reexamination, which may impact the costs, timing or successful completion of a clinical trial.

***The outcome of pre-clinical testing and early clinical trials may not be predictive of the success of later clinical trials, and the results of our clinical trials may not satisfy the requirements of the FDA, European Medicines Agency ("EMA") or other comparable foreign regulatory authorities.***

We will be required to demonstrate with substantial evidence through well-controlled clinical trials that our product candidates are safe and effective for use in a diverse population before we can seek marketing approvals for their commercial sale. Success in pre-clinical studies and early-stage clinical trials does not mean that future clinical trials will be successful. Product candidates in later-stage clinical trials may fail to demonstrate sufficient safety and efficacy to the satisfaction of the FDA, EMA and other comparable foreign regulatory authorities despite having progressed through pre-clinical studies and early-stage clinical trials. Regulatory authorities may also limit the scope of later-stage trials until we have demonstrated satisfactory safety, which could delay regulatory approval, limit the size of the patient population to which we may market our product candidates, or prevent regulatory approval.

In some instances, there can be significant variability in safety and efficacy results between different clinical trials of the same product candidate due to numerous factors, including changes in trial protocols, differences in size and type of the patient populations, differences in and adherence to the dose and dosing regimen and other trial protocols and the rate of dropout among clinical trial participants. Patients treated with our product candidates may also be using other approved products or investigational new drugs, which can cause side effects or adverse events that are unrelated to our product candidates. As a result, assessments of efficacy can vary widely for a particular patient and from patient to patient and site to site within a clinical trial. This subjectivity can increase the uncertainty of, and adversely impact, our clinical trial outcomes.

We do not know whether any clinical trials we may conduct will demonstrate consistent or adequate efficacy and safety sufficient to obtain approval to market any of our product candidates.

***Interim, topline and preliminary data from our clinical trials that we announce or publish from time to time may change as more patient data becomes available and are subject to audit and verification procedures that could result in material changes in the final data.***

From time to time, we may publicly disclose preliminary, interim or topline data from our clinical trials. These interim updates are based on a preliminary analysis of then-available data, and the results and related findings and conclusions are subject to change following a more comprehensive review of the data related to the particular study or trial. We also make assumptions, estimations, calculations and conclusions as part of our analyses of data, and we may not have received or had the opportunity to fully and carefully evaluate all data. As a result, the topline results that we report may differ from future results of the same studies, or different conclusions or considerations may qualify such results, once additional data have been received and fully evaluated. Topline data also remain subject to audit and verification procedures that may result in the final data being materially different from the preliminary data we previously published. As a result, topline data should be viewed with caution until the final data are available. In addition, we may report interim analyses of only certain endpoints rather than all endpoints. Interim data from clinical trials that we may complete are subject to the risk that one or more of the clinical outcomes may materially change as patient enrollment continues and more patient data become available. Adverse changes between interim data and final data could significantly harm our business and prospects. Further, additional disclosure of interim data by us or by our competitors in the future could result in volatility in the price of our common stock.

In addition, the information we choose to publicly disclose regarding a particular study or clinical trial is typically selected from a more extensive amount of available information. You or others may not agree with what we determine is the material or otherwise appropriate information to include in our disclosure, and any information we determine not to disclose may ultimately be deemed significant with respect to future decisions, conclusions, views, activities or otherwise regarding a particular product candidate or our business. If the preliminary or topline data that we report differs from late, final or actual results, or if others, including regulatory authorities, disagree with the conclusions reached, our ability to obtain approval for, and commercialize EX937 or any other product candidates may be harmed, which could harm our business, financial condition, results of operations and prospects.

***If we experience delays or difficulties in enrolling patients in our planned clinical trials, our receipt of necessary regulatory approval could be delayed or prevented.***

We may not be able to initiate or continue our planned clinical trials for our product candidates if we are unable to identify and enroll a sufficient number of eligible patients to participate in these trials as required by the FDA or similar foreign regulatory authority. Patient enrollment is a significant factor in the timing of clinical trials. Our ability to enroll eligible patients may be limited or may result in slower enrollment than we anticipate.

Patient enrollment may be affected if our competitors have ongoing clinical trials for programs that are under development for the same indications as our product candidates, and patients who would otherwise be eligible for our clinical trials instead enroll in clinical trials of our competitors' programs. Patient enrollment for our future clinical trials may be affected by other factors, including:

● size and nature of the patient population;

● severity of the disease under investigation;

● availability and efficacy of approved drugs for the disease under investigation;

● patient eligibility criteria for the trial in question as defined in the protocol;

● perceived risks and benefits of the product candidate under study;

● clinicians' and patients' perceptions as to the potential advantages of the product candidate being studied in relation to other available therapies, including any new products that may be approved or other product candidates being investigated for the indications we are investigating;

● clinicians' willingness to screen their patients for biomarkers to indicate which patients may be eligible for enrollment in our clinical trials;

● patient referral practices of physicians;

● the ability to monitor patients adequately during and after treatment;

● proximity and availability of clinical trial sites for prospective patients; and

● the risk that patients enrolled in clinical trials will drop out of the trials before completion or, because they may be late-stage cancer patients and will not survive the full terms of the clinical trials.

Our inability to enroll a sufficient number of patients for our clinical trials would result in significant delays or may require us to abandon one or more clinical trials altogether. Enrollment delays in our clinical trials may result in increased development costs for our product candidates and jeopardize our ability to obtain marketing approval for the sale of our product candidates. Furthermore, even if we are able to enroll a sufficient number of patients for our clinical trials, we may have difficulty maintaining participation in our clinical trials through the treatment and any follow-up periods.

We may never receive approval to market and commercialize any product candidate. Even if we obtain regulatory approval, the approval may be for targets, disease indications, lines of therapy or patient populations that are not as broad as we intended or desired or may require labeling that includes significant use or distribution restrictions or safety warnings.

We have not previously submitted a new drug application ("NDA") to the FDA or similar regulatory approval filings to comparable foreign authorities, for any product candidate, and we cannot be certain that our product candidates will be successful in clinical trials or receive regulatory approval. Further, any future product candidates may not receive regulatory approval even if they are successful in clinical trials. If we do not receive regulatory approvals for our product candidates, we may not be able to continue our operations. Even if we successfully obtain regulatory approvals to market a product candidate, our revenue will be dependent, in part, upon the size of the markets in the territories for which we gain regulatory approval and have commercial rights. If the markets or patient subsets that we are targeting are not as significant as we estimate, we may not generate significant revenues from sales of such products, if approved.

We plan to seek regulatory approval to commercialize our product candidates both in the United States and in selected foreign countries. While the scope of regulatory approval generally is similar in other countries, in order to obtain separate regulatory approval in other countries we must comply with numerous and varying regulatory requirements of such countries regarding safety and efficacy. Other countries also have their own regulations governing, among other things, clinical trials and commercial sales, as well as pricing and distribution of our product candidates, and we may be required to expend significant resources to obtain regulatory approval and to comply with ongoing regulations in these jurisdictions.

***We may be required to perform additional or unanticipated clinical trials to obtain approval or be subject to post-marketing testing requirements to maintain regulatory approval. If our candidates prove to be ineffective, unsafe or commercially unviable, our entire technology platform and pipeline would have little, if any, value, which would have a material and adverse effect on our business, financial condition, results of operations and prospects.***

It is difficult to predict the time, cost and potential success of our product candidates as they proceed through pre-clinical, drug product development or clinical trials. Because our product candidates are all in research or pre-clinical stages, we have not yet been able to assess the safety or efficacy of them in humans.

If our product candidates do not achieve projected development milestones or commercialization in the announced or expected timeframes, the further development or commercialization of such product candidates may be delayed, and our business may be harmed. Current or future product candidates may not meet safety and efficacy requirements for continued development or ultimate approval in humans and may cause significant adverse events or toxicities.

***Adverse side effects or other safety risks associated with our drug candidates could delay or preclude approval, cause us to suspend or discontinue clinical trials or abandon further development, limit the commercial profile of an approved label, or result in significant negative consequences following marketing approval, if any.***

Results of our planned clinical trials could reveal a high and unacceptable severity and prevalence of side effects or unexpected characteristics. Undesirable side effects caused by our drug candidates could result in the delay, suspension or termination of clinical trials by us, the FDA or similar foreign regulatory authority for a number of reasons. If we elect or are required to delay, suspend or terminate any clinical trial, the commercial prospects of our drug candidates will be harmed and our ability to generate product revenues from this drug candidate will be delayed or eliminated. Serious adverse events observed in clinical trials could hinder or prevent market acceptance of our drug candidates. Any of these occurrences may harm our business, prospects, financial condition and results of operations significantly.

Moreover, if our drug candidates are associated with undesirable side effects in clinical trials or have characteristics that are unexpected, we may elect to abandon or limit their development to more narrow uses or subpopulations in which the undesirable side effects or other characteristics are less prevalent, less severe or more acceptable from a risk-benefit perspective, which may limit the commercial expectations for our drug candidates, if approved. We may also be required to modify our study plans based on findings in our clinical trials. Many drugs that initially showed promise in early stage testing have later been found to cause side effects that prevented further development. In addition, regulatory authorities may draw different conclusions or require additional testing to confirm these determinations.

It is possible that as we test our drug candidates in larger, longer and more extensive clinical trials, including with different dosing regimens, or as the use of our drug candidates becomes more widespread following any regulatory approval, illnesses, injuries, discomforts and other adverse events that were observed in earlier trials, as well as conditions that did not occur or went undetected in previous trials, will be reported by patients. If such side effects become known later in development or upon approval, if any, such findings may harm our business, financial condition, results of operations and prospects significantly.

In addition, if any of our drug candidates receive marketing approval, and we or others later identify undesirable side effects caused by treatment with such drug, a number of potentially significant negative consequences could result, including:

● regulatory authorities may withdraw approval of the drug;

● we may be required to recall a product or change the way the drug is administered to patients;

● regulatory authorities may require additional warnings on the label, such as a "black box" warning or a contraindication, or issue safety alerts, Dear Healthcare Provider letters, press releases or other communications containing warnings or other safety information about the product;

● we may be required to implement a Risk Evaluation and Mitigation Strategy ("REMS") or create a medication guide outlining the risks of such side effects for distribution to patients;

● additional restrictions may be imposed on the marketing or promotion of the particular product or the manufacturing processes for the product or any component thereof;

● we could be sued and held liable for harm caused to patients;

● the drug could become less competitive; and

● our reputation may suffer.

Any of these events could prevent us from achieving or maintaining market acceptance of our drug candidates, if approved, and could significantly harm our business, financial condition, results of operations and prospects.

***We sometimes estimate, or may in the future estimate, the timing of the accomplishment of various scientific, clinical, manufacturing, regulatory and other product development objectives. These milestones may include our expectations regarding the commencement or completion of scientific studies or clinical trials, the submission of regulatory filings, the receipt of marketing approval or the realization of other commercialization objectives.***

The achievement of milestones such as the timing of the accomplishment of various scientific, clinical, manufacturing, regulatory and other product development objectives may be outside of our control. All of these milestones are based on a variety of assumptions, including assumptions regarding capital resources, constraints and priorities, progress of and results from development activities and the receipt of key regulatory approvals or actions, any of which may cause the timing of achievement of the milestones to vary considerably from our estimates.

If we or our collaborators fail to achieve announced milestones in the expected timeframes, the commercialization of our product candidates may be delayed, our credibility may be undermined, our business and results of operations may be harmed, and the price of our common stock may decline.

***If a product liability claim is successfully brought against us for uninsured liabilities, or such claim exceeds our insurance coverage, we could be forced to pay substantial damage awards that could materially harm our business.***

The use of any of our existing or future product candidates in clinical trials and the sale of any approved pharmaceutical products may expose us to significant product liability claims. We currently do not have clinical trial or product liability insurance coverage but we intend to obtain such insurance. Such insurance coverage may not protect us against any or all of the product liability claims that may be brought against us in the future. We may not be able to acquire or maintain adequate product liability insurance coverage at a commercially reasonable cost or in sufficient amounts or scope to protect us against potential losses. In the event a product liability claim is brought against us, we may be required to pay legal and other expenses to defend the claim, as well as uncovered damage awards resulting from a claim brought successfully against us. In the event our product candidate is approved for sale by the FDA or other regulatory agency and commercialized, we may need to substantially increase the amount of our product liability coverage. Defending any product liability claim or claims could require us to expend significant financial and managerial resources, which could have an adverse effect on our business.

***Our current and future products may never achieve significant commercial market acceptance.***

Our success depends on the market's confidence that we can provide therapeutic products that improve clinical outcomes, lower healthcare costs and enable better biopharmaceutical development. Failure of our products to perform as expected could significantly impair our operating results and our reputation. We believe patients, clinicians, academic institutions and biopharmaceutical companies are likely to be particularly sensitive to defects, errors, inaccuracies, delays and toxicities in or associated with our products. Furthermore, inadequate performance of these products may result in lower confidence in our FAAH inhibitor platform in general.

We may not succeed in achieving significant commercial market acceptance for our current or future products due to a number of factors, including:

● our ability to demonstrate the clinical utility of our current product candidates and their potential advantages over existing drug products to academic institutions, biopharmaceutical companies and the medical community;

● our ability, and that of our collaborators, to secure and maintain FDA and other regulatory clearance, authorization or approval for our products;

● the agreement by third-party payors to reimburse our products, the scope and extent of which will affect patients' willingness or ability to pay for our products and will likely heavily influence physicians' decisions to recommend our products; and

● the impact of our investments in product innovation and commercial growth.

Additionally, our customers and collaborators may decide to decrease or discontinue their use of our products due to changes in their research and development plans, failures in their clinical trials, financial constraints, the regulatory environment, negative publicity about our products, competing products or the reimbursement landscape, all of which are circumstances outside of our control. We may not be successful in addressing these or other factors that might affect the market acceptance of our products. Failure to achieve widespread market acceptance of our products would materially harm our business, financial condition and results of operations.

***We may expend our limited resources to pursue a particular drug candidate or indication and fail to capitalize on drug candidates or indications that may be more profitable or for which there is a greater likelihood of success.***

Because we have limited financial and managerial resources, we focus on research programs and drug candidates that we identify for specific indications. As a result, we may forego or delay pursuit of opportunities with other drug candidates or for other indications that later prove to have greater commercial potential. Our resource allocation decisions may cause us to fail to capitalize on viable commercial products or profitable market opportunities. Our spending on current and future research and development programs and drug candidates for specific indications may not yield any commercially viable products. If we do not accurately evaluate the commercial potential or target market for a particular drug candidate, we may relinquish valuable rights to that drug candidate through collaboration, licensing or other royalty arrangements in cases in which it would have been more advantageous for us to retain sole development and commercialization rights to such drug candidate.

***We may not be successful in our efforts to advance additional potential drug candidates.***

A key element of our strategy is to apply the knowledge and information we gain in the process of developing our current product candidate to advance additional potential drug candidates. However, the development activities that we are currently conducting may not be successful in developing drug candidates that are useful in refractory chronic cough or other diseases. Our pre-clinical research programs may initially show promise in identifying potential drug candidates, yet fail to yield drug candidates for clinical development for a number of reasons, including:

● the research methodology used may not be successful in identifying potential drug candidates;

● potential drug candidates may, on further study, be shown to have harmful side effects or other characteristics that indicate that they are unlikely to be drugs that will obtain marketing approval or achieve market acceptance; or

● potential drug candidates may not be effective in treating their targeted diseases.

Research programs to identify and design new drug candidates require substantial technical, financial and human resources. We may choose to focus our efforts and resources on a potential drug candidate that ultimately proves to be unsuccessful. If we are unable to identify and design suitable drug candidates for pre-clinical and clinical development, we will not be able to obtain revenues from the sale or out-licensing of products in future periods, which likely would result in significant harm to our financial position and adversely impact our stock price.

***We face significant competition, and if our competitors develop and market technologies or products more rapidly than we do or that are more effective, safer or less expensive than the products we develop, our commercial opportunities will be negatively impacted.***

The biotechnology and pharmaceutical industries are characterized by rapidly advancing technologies, intense competition and a strong emphasis on proprietary and novel products and product candidates. Our competitors have developed, are developing or may develop products, product candidates and processes competitive with ours. Any product candidates that we successfully develop and commercialize will compete with existing therapies and new therapies that may become available in the future. We believe that a significant number of products are currently under development, and may become commercially available in the future, for the treatment of conditions for which we may attempt to develop product candidates. In addition, our products may need to compete with drugs physicians use off-label to treat the indications for which we seek approval. This may make it difficult for us to replace existing therapies with our products.

We have competitors both in the United States and internationally, including major multinational pharmaceutical companies, established biotechnology companies, specialty pharmaceutical companies, emerging and start-up companies, universities and other research institutions. We also compete with these organizations to recruit management, scientists and clinical development personnel, which could negatively affect our level of expertise and our ability to execute our business plan. We will also face competition in establishing clinical trial sites, enrolling subjects for clinical trials and in identifying and in-licensing new product candidates.

Our commercial opportunity could be reduced or eliminated if our competitors develop and commercialize products that are safer, more effective, have fewer side effects, are more convenient, have a broader label, are marketed more effectively, are more widely reimbursed or are less expensive than any products that we may develop. Our competitors also may obtain marketing approval from the FDA, EMA or other comparable foreign regulatory authorities for their products more rapidly than we may obtain approval for ours, which could result in our competitors establishing a strong market position before we are able to enter the market. Even if the product candidates we develop achieve marketing approval, they may be priced at a significant premium over competitive products if any have been approved by then, resulting in reduced competitiveness. Technological advances or products developed by our competitors may render our technologies or product candidates obsolete, less competitive or not economical. If we are unable to compete effectively, our opportunity to generate revenue from the sale of our products we develop may be adversely affected.

***We are subject to healthcare laws and regulations.***

Sales of our product candidates, if approved, or any other future product candidate will be subject to healthcare regulation and enforcement by the federal government and the states and foreign governments in which we might conduct our business. The healthcare laws and regulations that may affect our ability to operate include the following:

● The federal Anti-Kickback Statute makes it illegal for any person or entity to knowingly and willfully, directly or indirectly, solicit, receive, offer, or pay any remuneration that is in exchange for or to induce the referral of business, including the purchase, order, lease of any good, facility, item or service for which payment may be made under a federal healthcare program, such as Medicare or Medicaid. The term "remuneration" has been broadly interpreted to include anything of value.

● Federal false claims and false statement laws, including the federal civil False Claims Act, prohibits, among other things, any person or entity from knowingly presenting, or causing to be presented, for payment to, or approval by, federal programs, including Medicare and Medicaid, claims for items or services, including drugs, that are false or fraudulent.

● Health Insurance Portability and Accountability Act of 1996 ("HIPAA") created additional federal criminal statutes that prohibit among other actions, knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare benefit program, including private third-party payors or making any false, fictitious or fraudulent statement in connection with the delivery of or payment for healthcare benefits, items or services.

● HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act of 2009 and their implementing regulations, impose obligations on certain types of individuals and entities regarding the electronic exchange of information in common healthcare transactions, as well as standards relating to the privacy and security of individually identifiable health information.

● The federal Physician Payments Sunshine Act requires certain manufacturers of drugs, devices, biologics and medical supplies for which payment is available under Medicare, Medicaid or the Children's Health Insurance Program, with specific exceptions, to report annually to the Centers for Medicare & Medicaid Services information related to payments or other transfers of value made to physicians and teaching hospitals, as well as ownership and investment interests held by physicians and their immediate family members.

Also, many states have similar laws and regulations, such as anti-kickback and false claims laws that may be broader in scope and may apply regardless of payor, in addition to items and services reimbursed under Medicaid and other state programs. Additionally, we may be subject to state laws that require pharmaceutical companies to comply with the federal government's and/or pharmaceutical industry's voluntary compliance guidelines, state laws that require drug manufacturers to report information related to payments and other transfers of value to physicians and other healthcare providers or marketing expenditures, as well as state and foreign laws governing the privacy and security of health information, many of which differ from each other in significant ways and often are not preempted by HIPAA.

Furthermore, to the extent that our product is sold in a foreign country, we may be subject to similar foreign laws.

***The FDA and other regulatory agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses, and if we are found to have improperly promoted off-label uses of our drugs or drug candidates, if approved, we may become subject to significant liability.***

If we are found to have improperly promoted off-label uses of our drugs or drug candidates, we may become subject to significant liability. Such enforcement has become more common in the industry. The FDA and other regulatory agencies strictly regulate the promotional claims that may be made about prescription drug products, such as our drug candidates. In particular, a drug may not be promoted for uses that are not approved by the FDA or such other regulatory agencies as reflected in the drug's approved labeling. If we receive marketing approval for our drug candidates for our proposed indications, physicians may nevertheless use our drugs for their patients in a manner that is inconsistent with the approved label. However, if we are found to have promoted our drugs for any off-label uses, the federal government could levy civil, criminal and/or administrative penalties, and seek fines against us. The FDA or other regulatory authorities could also request that we enter into a consent decree or a corporate integrity agreement, or seek a permanent injunction against us under which specified promotional conduct is monitored, changed or curtailed. If we cannot successfully manage the promotion of our drug candidates, we could become subject to significant liability, which would materially adversely affect our business and financial condition.

***We may not be able to obtain or maintain Fast Track designation or accelerated approval for our drug candidates.***

If a drug is intended for the treatment of a serious condition and nonclinical or clinical data demonstrate the potential to address unmet medical need for this condition, a drug sponsor may apply for FDA Fast Track designation. We plan to conduct early clinical development outside the US and have not determined at this time if it will be relevant or beneficial to apply for Fast Track designation for future, subsequent clinical development in the US. If we seek Fast Track designation for a drug candidate, we may not receive it from the FDA. However, even if we receive Fast Track designation, Fast Track designation does not ensure that we will receive marketing approval or that approval will be granted within any particular time frame. We may not experience a faster development or regulatory review or approval process with Fast Track designation compared to conventional FDA procedures. In addition, the FDA may withdraw Fast Track designation if it believes that the designation is no longer supported by data from our clinical development program. Fast Track designation alone does not guarantee qualification for the FDA's priority review procedures.

***We may not be able to obtain or maintain orphan drug designation or exclusivity for our drug candidates.***

Regulatory authorities in some jurisdictions, including the United States, may designate drugs for relatively small patient populations as "orphan drugs." Under the Orphan Drug Act, the FDA may designate a drug candidate as an orphan drug if it is intended to treat a rare disease or condition, which is generally defined as a patient population of fewer than 200,000 individuals in the United States, or if the disease or condition affects more than 200,000 individuals in the United States and there is no reasonable expectation that the cost of developing and making a drug product available in the United States for the type of disease or condition will be recovered from sales of the product.

Orphan drug designation entitles a party to financial incentives, such as opportunities for grant funding towards clinical trial costs, tax advantages and user-fee waivers. Additionally, if a product that has orphan designation subsequently receives the first FDA approval for the disease or condition for which it has such designation, the product is entitled to orphan drug exclusivity. This means that the FDA may not approve any other applications to market the same drug or biological product for the same indication for seven years, except in certain circumstances, including proving clinical superiority (i.e., another product is safer, more effective or makes a major contribution to patient care) to the product with orphan exclusivity. Competitors, however, may receive approval of different products for the indication for which the orphan product has exclusivity, or obtain approval for the same product but for a different indication than that for which the orphan product has exclusivity. In addition, exclusive marketing rights in the United States may be limited if we seek approval for an indication broader than the orphan-designated indication or may be lost if the FDA later determines that the request for designation was materially defective. At this time, we have not determined if we will pursue orphan drug designation for EX937 and such a decision will depend on early clinical data, market conditions and other factors.

***A Breakthrough Therapy designation by the FDA for our drug candidates may not lead to a faster development or regulatory review or approval process, and it does not increase the likelihood that our drug candidates will receive marketing approval.***

Designation as a breakthrough therapy is within the discretion of the FDA. Accordingly, even if we believe one of our drug candidates meets the criteria for designation as a breakthrough therapy, the FDA may disagree and instead determine not to make such designation. Even if we receive Breakthrough Therapy designation, the receipt of such designation for a drug candidate may not result in a faster development process, review or approval compared to drugs considered for approval under conventional FDA procedures and does not assure ultimate approval by the FDA. In addition, even if one or more of our drug candidates qualify as breakthrough therapies, the FDA may later decide that the drugs no longer meet the conditions for qualification or decide that the time period for FDA review or approval will not be shortened. Depending on future clinical data, we may seek a breakthrough therapy designation for some of our drug candidates. A breakthrough therapy is defined as a drug that is intended, alone or in combination with one or more other drugs, to treat a serious or life-threatening disease or condition, and preliminary clinical evidence indicates that the drug may demonstrate substantial improvement over existing therapies on one or more clinically significant endpoints, such as substantial treatment effects observed early in clinical development. For drugs and biologics that have been designated as breakthrough therapies, interaction and communication between the FDA and the sponsor of the trial can help to identify the most efficient path for clinical development while minimizing the number of patients placed in ineffective control regimens. Drugs designated as breakthrough therapies by the FDA are also eligible for accelerated approval.

**Risks Related to Our Reliance on Third Parties**

***We rely on third parties to conduct our pre-clinical studies, manufacturing and clinical trials. If these third parties do not successfully perform their contractual and regulatory duties or meet expected deadlines, we may not be able to obtain regulatory approval for or commercialize our drug candidates and our business could be substantially harmed.***

We do not have the ability to independently conduct all aspects of our pre-clinical testing or clinical trials. As a result, we have relied upon and plan to continue to rely upon third-party medical institutions, clinical investigators, contract laboratories and other third party CROs to monitor and manage data for our ongoing pre-clinical and clinical programs. We rely on these parties for the execution of our pre-clinical studies and clinical trials, and control only certain aspects of their activities. Nevertheless, we are responsible for ensuring that each of our studies is conducted in accordance with the applicable protocol, legal, regulatory and scientific standards, and our reliance on the CROs does not relieve us of our regulatory responsibilities. We and our CROs are required to comply with current GCPs, which are regulations and guidelines enforced by the FDA, the Competent Authorities of the Member States of the European Economic Area and comparable foreign regulatory authorities for all of our drugs in clinical development.

Regulatory authorities enforce these current GCPs through periodic inspections of trial sponsors, principal investigators and trial sites. If we or any of our CROs fail to comply with applicable GCPs, the clinical data generated in our clinical trials may be deemed unreliable and the FDA, the EMA or comparable foreign regulatory authorities may require us to perform additional clinical trials before approving our marketing applications. We cannot assure you that upon inspection by a given regulatory authority, such regulatory authority will determine that any of our clinical trials comply with GCP regulations. In addition, our clinical trials must be conducted with products produced under cGMPs. Our failure to comply with these regulations may require us to repeat clinical trials, which would delay the regulatory approval process.

If any of our relationships with these third-party CROs terminate, we may not be able to enter into arrangements with alternative CROs or to do so on commercially reasonable terms. In addition, our CROs are not our employees, and except for remedies available to us under our agreements with such CROs, we cannot control whether or not they devote sufficient time and resources to our on-going clinical, nonclinical and pre-clinical or clinical programs. If CROs do not successfully carry out their contractual duties or obligations or meet expected deadlines, if they need to be replaced or if the quality or accuracy of the clinical data they obtain is compromised due to the failure to adhere to our clinical protocols, regulatory requirements or for other reasons, our clinical trials may be extended, delayed or terminated and we may not be able to obtain regulatory approval for or successfully commercialize our drug candidates. As a result, our results of operations and the commercial prospects for our drug candidates would be harmed, our costs could increase and our ability to generate revenues could be delayed.

Many of the third parties with whom we contract may also have relationships with other commercial entities, including our competitors, for whom they may also be conducting clinical trials or other drug development activities that could harm our competitive position. If the third parties conducting our pre-clinical studies or our clinical trials do not perform their contractual duties or obligations, experience work stoppages, do not meet expected deadlines, terminate their agreements with us or need to be replaced, or if the quality or accuracy of the clinical data they obtain is compromised due to their failure to adhere to our clinical trial protocols or to GCPs, or for any other reason, we may need to enter into new arrangements with alternative third parties. Switching or adding additional CROs involves additional cost and requires management time and focus. In addition, there is a natural transition period when a new CRO commences work. As a result, delays occur, which can materially impact our ability to meet our desired clinical development timelines. Though we carefully manage our relationships with our CROs, there can be no assurance that we will not encounter similar challenges or delays in the future or that these delays or challenges will not have a material adverse impact on our business, financial condition and prospects.

***Manufacturing pharmaceutical products is complex and subject to product loss for a variety of reasons. We contract with third parties for the manufacture of our drug candidates for pre-clinical testing and clinical trials and expect to continue to do so for commercialization. This reliance on third parties increases the risk that we will not have sufficient quantities of our drug candidates or products or such quantities at an acceptable cost or quality, which could delay, prevent or impair our development or commercialization efforts.***

We do not have any manufacturing facilities. We rely, and expect to continue to rely, on third parties for the manufacture of our drug candidates for pre-clinical and clinical testing, as well as for commercial manufacture if any of our drug candidates obtain marketing approval. This reliance on third parties increases the risk that we will not have sufficient quantities of our drug candidates or products or such quantities at an acceptable cost or quality, which could delay, prevent or impair our development or commercialization efforts.

We may be unable to establish any agreements with third-party manufacturers or to do so on favorable terms. Even if we are able to establish agreements with third-party manufacturers, reliance on third-party manufacturers entails additional risks, including:

● reliance on the third party for regulatory, compliance and quality assurance;

● operations of our third-party manufacturers or suppliers could be disrupted by conditions unrelated to our business or operations, including the bankruptcy of the manufacturer or supplier or the issuance of an FDA Form 483 notice or warning letter;

● the possible breach of the manufacturing agreement by the third party;

● the possible misappropriation of our proprietary information, including our trade secrets and know how;

● the possible termination or nonrenewal of the agreement by the third party at a time that is costly or inconvenient for us;

● carrier disruptions or increased costs that are beyond our control; and

● failure to deliver our drugs under specified storage conditions and in a timely manner.

We have only limited supply arrangements in place with respect to our drug candidates, and these arrangements do not extend to commercial supply. We acquire many key materials on a purchase order basis. As a result, we do not have long-term committed arrangements with respect to our drug candidates and other materials. If we obtain marketing approval for any of our drug candidates, we will need to establish an agreement for commercial manufacture with a third party; however, no assurance can be provided that we will be able to enter into a commercial manufacture agreement on reasonable terms, if at all.

Third-party manufacturers may not be able to comply with cGMPs or similar regulatory requirements outside of the United States. Our failure, or the failure of our third-party manufacturers and suppliers, to comply with applicable regulations could result in sanctions being imposed on us, including clinical holds, fines, injunctions, civil penalties, delays, suspension or withdrawal of approvals, license revocation, seizures or recalls of drug candidates or products, operating restrictions and criminal prosecutions, any of which could significantly and adversely affect supplies of our products. In addition, our third-party manufacturers and suppliers are subject to numerous environmental, health and safety laws and regulations, including those governing the handling, use, storage, treatment and disposal of waste products, and failure to comply with such laws and regulations could result in significant costs associated with civil or criminal fines and penalties for such third parties. Based on the severity of regulatory actions that may be brought against these third parties in the future, our clinical or commercial supply of drug and packaging and other services could be interrupted or limited, which could harm our business.

Our drug candidates and any products that we may develop may compete with other drug candidates and products for access to manufacturing facilities. As a result, we may not obtain access to these facilities on a priority basis or at all. There are a limited number of manufacturers that operate under cGMPs and that may be capable of manufacturing our product candidates.

As we prepare for later-stage clinical trials and potential commercialization, we will need to take steps to increase the scale of production of our drug candidates. Even minor deviations from normal manufacturing processes could result in reduced production yields, product defects and other supply disruptions. If microbial, viral or other contaminations are discovered in our drug candidates or in the manufacturing facilities in which our drug candidates are made, such manufacturing facilities may need to be closed for an extended period of time to investigate and remedy the contamination.

Any performance failure on the part of our existing or future manufacturers could delay clinical development or marketing approval. We do not currently have arrangements in place for redundant supply or a second source for bulk drug substance. If our current contract manufacturers for pre-clinical and clinical testing cannot perform as agreed, we may be required to replace such manufacturers. Although we believe that there are several potential alternative manufacturers who could manufacture our drug candidates, we may incur added costs and delays in identifying and qualifying any such replacement manufacturer or be able to reach agreement with any alternative manufacturer.

Our current and anticipated future dependence upon others for the manufacture of our drug candidates or products may adversely affect our future profit margins and our ability to commercialize any products that obtain marketing approval on a timely and competitive basis.

***Our failure to find third party collaborators to assist or share in the costs of drug development could materially harm our business, financial condition and results of operations.***

Our strategy for the development and commercialization of our proprietary drug candidates may include the execution of collaborative arrangements with third parties. Existing and future collaborators have significant discretion in determining the efforts and resources they apply and may not perform their obligations as expected. Potential third-party collaborators include biopharmaceutical, pharmaceutical and biotechnology companies, academic institutions and other entities. Third-party collaborators may assist us in:

● funding research, pre-clinical development, clinical trials and manufacturing;

● seeking and obtaining regulatory approvals; and

● successfully commercializing any future drug candidates.

If we are not able to establish further collaboration agreements, we may be required to undertake drug development and commercialization at our own expense. Such an undertaking may limit the number of drug candidates that we will be able to develop, significantly increase our capital requirements and place additional strain on our internal resources. Our failure to enter into additional collaborations could materially harm our business, financial condition and results of operations.

In addition, our dependence on licensing, collaboration and other agreements with third parties may subject us to a number of risks. These agreements may not be on terms that prove favorable to us and may require us to relinquish certain rights in our drug candidates. To the extent we agree to work exclusively with one collaborator in a given area, our opportunities to collaborate with other entities could be curtailed. Lengthy negotiations with potential new collaborators may lead to delays in the research, development or commercialization of drug candidates. The decision by our collaborators to pursue alternative technologies or the failure of our collaborators to develop or commercialize successfully any drug candidate to which they have obtained rights from us could materially harm our business, financial condition and results of operations.

**Risks Related to Commercialization of Our Drug Candidates**

***Even if we are successful in completing all pre-clinical studies and clinical trials, we may not be successful in commercializing one or more of our drug candidates.***

Even if we complete the necessary pre-clinical studies, drug product development and clinical trials, the marketing approval process is expensive, time-consuming and uncertain and may prevent us from obtaining approvals for the commercialization of some or all of our drug candidates. If we are not able to obtain, or if there are delays in obtaining, required regulatory approvals, we will not be able to commercialize our drug candidates, and our ability to generate revenue will be materially impaired.

Our drug candidates and the activities associated with their development and commercialization, including their design, testing, manufacture, safety, efficacy, recordkeeping, labeling, storage, approval, advertising, promotion, sale and distribution, export and import are subject to comprehensive regulation by the FDA and other regulatory agencies in the United States and by the EMA and similar regulatory authorities outside of the United States. Failure to obtain marketing approval for a drug candidate will prevent us from commercializing the drug candidate. We have not submitted an application for or received marketing approval for any of our drug candidates in the United States or in any other jurisdiction.

We have only limited experience in filing and supporting the applications necessary to gain marketing approvals and expect to rely on third-party clinical research organizations or other third-party consultants or vendors to assist us in this process. Securing marketing approval requires the submission of extensive pre-clinical and clinical data and supporting information to regulatory authorities for each therapeutic indication to establish the drug candidate's safety and efficacy. Securing marketing approval also requires the submission of information about the drug manufacturing process to, and inspection of manufacturing facilities by, the regulatory authorities. Our drug candidates may not be effective, may be only moderately effective or may prove to have undesirable or unintended side effects, toxicities or other characteristics that may preclude our obtaining marketing approval or prevent or limit commercial use. If any of our drug candidates receives marketing approval, the accompanying label may limit the approved use of our drug, which could limit sales of the drug.

The process of obtaining marketing approvals, both in the United States and abroad, is expensive, may take many years, if approval is obtained at all, and can vary substantially based upon a variety of factors, including the type, complexity and novelty of the drug candidates involved. Changes in marketing approval policies during the development period, changes in or the enactment of additional statutes or regulations, or changes in regulatory review for each submitted drug application, may cause delays in the approval or rejection of an application. Regulatory authorities have substantial discretion in the approval process and may refuse to accept any application or may decide that our data is insufficient for approval and require additional pre-clinical, clinical or other studies. In addition, varying interpretations of the data obtained from pre-clinical studies and clinical trials could delay, limit or prevent marketing approval of a drug candidate. Any marketing approval we ultimately obtain may be limited or subject to restrictions or post-approval commitments that render the approved drug not commercially viable.

***If we are unable to develop satisfactory sales and marketing capabilities, we may not succeed in commercializing our drug candidates.***

We have no experience in marketing and selling drug products. We have not entered into arrangements for the sale and marketing of any of our drug candidates.

There are risks involved with establishing our own sales and marketing capabilities. For example, recruiting and training a sales force is expensive and time-consuming and could delay any product launch. If the commercial launch of a drug candidate for which we recruit a sales force and establish marketing capabilities is delayed or does not occur for any reason, we would have prematurely or unnecessarily incurred these commercialization expenses. These efforts are expected to be costly, and our investment would be lost if we cannot retain or reposition our sales and marketing personnel.

We may seek to collaborate with a third party to market our drugs or may seek to market and sell our drugs by ourselves. If we seek to collaborate with a third party, we cannot be sure that a collaborative agreement can be reached on terms acceptable to us.

We cannot be sure that we will be able to acquire, or establish third party relationships to provide, any or all of these marketing and sales capabilities. The establishment of a direct sales force or a contract sales force or a combination direct and contract sales force to market our drugs will be expensive and time-consuming and could delay any drug launch. Further, we can give no assurances that we may be able to maintain a direct and/or contract sales force for any period of time or that our sales efforts will be sufficient to generate or to grow our revenues or that our sales efforts will ever lead to profits.

***The development and commercialization of pharmaceutical products are subject to extensive regulation, and we may not obtain regulatory approvals for our drug candidates on a timely basis, or at all.***

The time required to obtain approval or other marketing authorizations by the FDA or similar foreign regulatory authority is unpredictable, and it typically takes many years following the commencement of clinical trials and depends upon numerous factors, including the substantial discretion of the regulatory authorities. In addition, approval policies, regulations, and the type and amount of clinical data necessary to gain approval may change during the course of a product candidate's clinical development and may vary among jurisdictions. We have not obtained regulatory approval for any product candidate, and it is possible that we may never obtain regulatory approval for any product candidates we may seek to develop in the future. Neither we nor any current or future collaborator is permitted to market any drug product candidates in the United States or other jurisdictions until we receive regulatory approval from the FDA or other equivalent foreign regulatory authorities.

Prior to obtaining approval to commercialize any drug product candidate in the United States, we must demonstrate with substantial evidence from well-controlled clinical trials, and to the satisfaction of the FDA or similar foreign regulatory authority, that such product candidates are safe, pure and effective for their intended uses. Results from pre-clinical studies and clinical trials can be interpreted in different ways. Even if we believe the pre-clinical or clinical data for our product candidates are promising, such data may not be sufficient to support approval by the FDA or similar foreign regulatory authorities. The regulatory authorities may also require us to conduct additional pre-clinical studies or clinical trials for our product candidates either prior to or after approval, or it may object to elements of our clinical development programs.

Our product candidates could fail to receive regulatory approval for many reasons, including the following:

● the FDA or similar foreign regulatory authority may disagree with the design or implementation of our clinical trials;

● we may be unable to demonstrate to the satisfaction of the FDA or similar foreign regulatory authority that a product candidate is safe and effective for its proposed indication;

● the results of clinical trials may not meet the level of statistical significance required by the FDA or similar foreign regulatory authorities for approval;

● we may be unable to demonstrate that a product candidate's clinical and other benefits outweigh its safety risks;

● the regulatory authorities may fail to approve the manufacturing processes or facilities of third-party manufacturers with which we contract for clinical and commercial supplies; and

● the approval policies or regulations of the FDA or similar foreign regulatory authorities may significantly change in a manner rendering our clinical data insufficient for approval.

Of the large number of products in development, only a small percentage successfully complete the FDA approval processes and are commercialized. The lengthy approval and marketing authorization process as well as the unpredictability of future clinical trial results may result in our failing to obtain regulatory approval and marketing authorization to market our product candidates, which would significantly harm our business, financial condition, results of operations and prospects.

We have invested a significant portion of our time and financial resources in the development of our pre-clinical product candidates. Our business is dependent on our ability to successfully complete pre-clinical and clinical development, obtain regulatory approval for, and, if approved, successfully commercialize our current product candidates and any future product candidates in a timely manner.

Even if we eventually complete clinical testing and receive approval for our current product candidates and any future product candidates, the FDA, may grant approval or other marketing authorization contingent on the performance of costly additional clinical trials, including post-marketing clinical trials. The FDA, also may approve or authorize for marketing a product candidate for a more limited indication or patient population than we originally request, and the FDA may not approve or authorize the labeling that we believe is necessary or desirable for the successful commercialization of a product candidate. Any delay in obtaining, or inability to obtain, applicable regulatory approval or other marketing authorization would delay or prevent commercialization of that product candidate and would materially adversely impact our business and prospects.

In addition, the FDA may change their policies, issue additional regulations or revise existing regulations, or take other actions, which may prevent or delay approval of our future products under development on a timely basis. Such policy or regulatory changes could impose additional requirements upon us that could delay our ability to obtain approvals, increase the costs of compliance or restrict our ability to maintain any marketing authorizations we may have obtained.

***Failure to obtain marketing approval in foreign jurisdictions would prevent our drug candidates from being marketed abroad.***

In order to market and sell our drugs in the European Union and many other foreign jurisdictions, we or our potential third-party collaborators must obtain separate marketing approvals and comply with numerous and varying regulatory requirements. The approval procedure varies among countries and can involve additional testing. The time required to obtain approval may differ substantially from that required to obtain FDA marketing approval. The regulatory approval process outside of the United States generally includes all of the risks associated with obtaining FDA approval. In addition, in many countries outside of the United States, it is required that the drug be approved for reimbursement before the drug can be approved for sale in that country. We or our potential third-party collaborators may not obtain approvals from regulatory authorities outside of the United States on a timely basis, if at all. Approval by the FDA does not ensure approval by regulatory authorities in other countries or jurisdictions, and approval by one regulatory authority outside of the United States does not ensure approval by regulatory authorities in other countries or jurisdictions or by the FDA. However, a failure or delay in obtaining regulatory approval in one country may have a negative effect on the regulatory process in other countries. We may not be able to file for marketing approvals and may not receive necessary approvals to commercialize our drugs in any market.

***Any drug candidate that we obtain marketing approval for could be subject to post-marketing restrictions or withdrawal from the market and we may be subject to substantial penalties if we fail to comply with regulatory requirements or if we experience unanticipated problems with our drugs, when and if any of them are approved.***

Any drug candidate for which we obtain marketing approval, along with the manufacturing processes, post-approval clinical data, labeling, advertising and promotional activities for such drug, will be subject to continual requirements of and review by the FDA and other regulatory authorities. These requirements include submissions of safety and other post-marketing information and reports, registration and listing requirements, cGMP requirements relating to manufacturing, quality control, quality assurance and corresponding maintenance of records and documents, requirements regarding the distribution of samples to physicians and recordkeeping. Even if marketing approval of a drug candidate is granted, the approval may be subject to limitations on the indicated uses for which the drug may be marketed or to the conditions of approval, including the requirement to implement a REMS. If any of our drug candidates receives marketing approval, the accompanying label may limit the approved use of our drug, which could limit sales of the drug.

The FDA may also impose requirements for costly post-marketing studies or clinical trials and surveillance to monitor the safety or efficacy of the drug, including the adoption and implementation of REMS. The FDA and other agencies, including the Department of Justice ("DOJ") closely regulate and monitor the post-approval marketing and promotion of drugs to ensure they are marketed and distributed only for the approved indications and in accordance with the provisions of the approved labeling. The FDA and DOJ impose stringent restrictions on manufacturers' communications regarding off-label use, and if we do not market our drugs for their approved indications, we may be subject to enforcement action for off-label marketing. Violations of the FDCA and other statutes, including the False Claims Act, relating to the promotion and advertising of prescription drugs may lead to investigations and enforcement actions alleging violations of federal and state healthcare fraud and abuse laws, as well as state consumer protection laws. In addition, later discovery of previously unknown adverse events or other problems with our drugs, manufacturers or manufacturing processes, or failure to comply with regulatory requirements, may have various consequences, including:

● restrictions on such drugs, manufacturers or manufacturing processes;

● restrictions and warnings on the labeling or marketing of a drug;

● restrictions on drug distribution or use;

● requirements to conduct post-marketing studies or clinical trials;

● warning letters or untitled letters;

● withdrawal of the drugs from the market;

● refusal to approve pending applications or supplements to approved applications that we submit;

● recall of drugs;

● fines, restitution or disgorgement of profits or revenues;

● suspension or withdrawal of marketing approvals;

● damage to relationships with any potential collaborators;

● unfavorable press coverage and damage to our reputation;

● refusal to permit the import or export of our drugs;

● drug seizure;

● injunctions or the imposition of civil or criminal penalties; or

● litigation involving patients using our drugs.

***If we fail to comply with environmental, health and safety laws and regulations, we could become subject to fines or penalties or incur costs that could harm our business.***

We are subject to numerous foreign, federal, state and local environmental, health and safety laws and regulations, including those governing laboratory procedures and the handling, use, storage, treatment and disposal of hazardous materials and wastes. Our operations involve the use of hazardous and flammable materials, including chemicals and biological materials. Our operations also produce hazardous waste products. We generally contract with third parties for the disposal of these materials and wastes. We cannot eliminate the risk of contamination or injury from these materials. In the event of contamination or injury resulting from our use of hazardous materials, we could be held liable for any resulting damages, and any liability could exceed our resources, including any available insurance.

In addition, our leasing and operation of real property may subject us to liability pursuant to certain of these laws or regulations. Under existing U.S. environmental laws and regulations, current or previous owners or operators of real property and entities that disposed or arranged for the disposal of hazardous substances may be held strictly, jointly and severally liable for the cost of investigating or remediating contamination caused by hazardous substance releases, even if they did not know of and were not responsible for the releases.

We could incur significant costs and liabilities which may adversely affect our financial condition and operating results for failure to comply with such laws and regulations, including, among other things, civil or criminal fines and penalties, property damage and personal injury claims, costs associated with upgrades to our facilities or changes to our operating procedures, or injunctions limiting or altering our operations.

Although we maintain workers' compensation insurance to cover us for costs and expenses we may incur due to injuries to our employees resulting from the use of hazardous materials, this insurance may not provide adequate coverage against potential liabilities. We do not maintain insurance for environmental liability or toxic tort claims that may be asserted against us in connection with our storage or disposal of biological, hazardous or radioactive materials.

In addition, we may incur substantial costs in order to comply with current or future environmental, health and safety laws and regulations. These current or future laws and regulations, which are becoming increasingly more stringent, may impair our research, development or production efforts. Our failure to comply with these laws and regulations also may result in substantial fines, penalties or other sanctions.

**Risks Related to Our Intellectual Property**

***If we do not obtain patent term extension for any drug candidates we may develop, our business may be materially harmed.***

In the United States, depending upon the timing, duration, and specifics of any FDA marketing approval of a drug candidate, the patent term of a patent that covers an FDA-approved drug may be eligible for limited patent term extension, which permits patent term restoration as compensation for the patent term lost during the FDA regulatory review process. The Drug Price Competition and Patent Term Restoration Act of 1984, also known as the Hatch-Waxman Act, permits a patent term extension of up to five years beyond the expiration of the patent. The length of the patent term extension is related to the length of time the drug is under regulatory review. Patent term extension cannot extend the remaining term of a patent beyond a total of 14 years from the date of drug approval, and only one patent applicable to an approved drug may be extended and only those claims covering the approved drug, a method for using it, or a method for manufacturing it may be extended. Similar provisions are available in Europe and other non-United States jurisdictions to extend the term of a patent that covers an approved drug. While, in the future, if and when our drug candidates receive FDA approval, we expect to apply for patent term extensions on patents covering those drug candidates, there is no guarantee that the applicable authorities will agree with our assessment of whether such extensions should be granted, and even if granted, the length of such extensions. We may not be granted an extension because of, for example, failing to exercise due diligence during the testing phase or regulatory review process, failing to apply within applicable deadlines, failing to apply prior to expiration of the relevant patents, or otherwise failing to satisfy applicable requirements. If we are unable to obtain any patent term extension or the term of any such extension is less than we request, our competitors may obtain approval of competing drugs following the expiration of our patent rights, and our business, financial condition, results of operations, and prospects could be materially harmed.

***Changes to patent laws in the United States and other jurisdictions could diminish the value of patents in general, thereby impairing our ability to protect our drugs.***

As is the case with other pharmaceutical companies, our success is heavily dependent on intellectual property, particularly patents. Obtaining and enforcing patents in the pharmaceutical industry involves both technological and legal complexity and is therefore costly, time consuming and inherently uncertain. Changes in either the patent laws or interpretation of the patent laws in the United States could increase the uncertainties and costs surrounding the prosecution of patent applications and the enforcement or defense of issued patents. Recent patent reform legislation in the United States and other countries, including the Leahy-Smith America Invents Act (the Leahy-Smith Act) signed into law in September 2011, could increase those uncertainties and costs. The Leahy-Smith Act includes a number of significant changes to U.S. patent law. These include provisions that affect the way patent applications are prosecuted, redefine prior art and provide more efficient and cost-effective avenues for competitors to challenge the validity of patents. For example, the Leahy-Smith Act allows third-party submission of prior art to the United States Patent and Trademark Office ("USPTO") during patent prosecution and additional procedures to attack the validity of a patent by USPTO administered post-grant proceedings, including post-grant review, inter parties review, and derivation proceedings. In addition, the Leahy-Smith Act has transformed the U.S. patent system from a "first-to-invent" system to a "first-to-file" system in which, assuming that other requirements for patentability are met, the first inventor to file a patent application will be entitled to the patent on an invention regardless of whether a third party was the first to invent the claimed invention. The first-to-file provisions, however, only became effective on March 16, 2013. Accordingly, it is not yet clear what, if any, impact the Leahy-Smith Act will have on the operation of our business. However, the Leahy-Smith Act and its implementation could make it more difficult to obtain patent protection for our inventions and increase the uncertainties and costs surrounding the prosecution of our or our collaboration partners' patent applications and the enforcement or defense of our or our collaboration partners' issued patents, all of which could harm our business, results of operations, financial condition and prospects.

In addition, the patent positions of companies in the development and commercialization of biologics and pharmaceuticals are particularly uncertain. Recent U.S. Supreme Court rulings have narrowed the scope of patent protection available in certain circumstances and weakened the rights of patent owners in certain situations. This combination of events has created uncertainty with respect to the validity and enforceability of patents once obtained. Depending on future actions by the U.S. Congress, the federal courts, and the USPTO, the laws and regulations governing patents could change in unpredictable ways that could have a material adverse effect on our patent rights and our ability to protect, defend and enforce our patent rights in the future.

***We or our future licensors may become involved in lawsuits to protect or enforce our patent or other intellectual property rights, which could be expensive, time-consuming and unsuccessful.***

Competitors and other third parties may infringe, misappropriate or otherwise violate our or our future licensors' issued patents or other intellectual property. As a result, we or our licensors may need to file infringement, misappropriation or other intellectual property related claims, which can be expensive and time-consuming. Any claims we assert against perceived infringers could provoke such parties to assert counterclaims against us alleging that we infringe, misappropriate or otherwise violate their intellectual property. In addition, in a patent infringement proceeding, such parties could counterclaim that the patents we or our licensors have asserted are invalid or unenforceable. In patent litigation in the United States, defendant counterclaims alleging invalidity or unenforceability are commonplace. Grounds for a validity challenge could be an alleged failure to meet any of several statutory requirements, including lack of novelty, obviousness, or non-enablement. Grounds for an unenforceability assertion could be an allegation that someone connected with prosecution of the patent withheld relevant information from the USPTO, or made a misleading statement, during prosecution. Third parties may institute such claims before administrative bodies in the United States or abroad, even outside the context of litigation. Such mechanisms include re-examination, post-grant review, inter parties review, interference proceedings, derivation proceedings, and equivalent proceedings in foreign jurisdictions (e.g., opposition proceedings).

An adverse result in any such proceeding could put one or more of our owned or in-licensed patents at risk of being invalidated or interpreted narrowly, and could put any of our owned or in-licensed patent applications at risk of not yielding an issued patent. A court may also refuse to stop the third party from using the technology at issue in a proceeding on the grounds that our owned or in-licensed patents do not cover such technology. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential information or trade secrets could be compromised by disclosure during this type of litigation. Any of the foregoing could allow such third parties to develop and commercialize competing technologies and products and have a material adverse impact on our business, financial condition, results of operations, and prospects.

***Third parties may initiate legal proceedings alleging that we are infringing, misappropriating or otherwise violating their intellectual property rights, the outcome of which would be uncertain and could have a material adverse effect on the success of our business.***

Our commercial success depends upon our ability, and the ability of our collaborators, to develop, manufacture, market and sell our drug candidates and use our proprietary technologies without infringing, misappropriating or otherwise violating the intellectual property and proprietary rights of third parties. There is considerable patent and other intellectual property litigation in the pharmaceutical and biotechnology industries. We may become party to, or threatened with, adversarial proceedings or litigation regarding intellectual property rights with respect to our technology and drug candidates, including interference proceedings, post grant review, inter parties review, and derivation proceedings before the USPTO and similar proceedings in foreign jurisdictions such as oppositions before the European Patent Office.

The legal threshold for initiating litigation or contested proceedings is low, so that even lawsuits or proceedings with a low probability of success might be initiated and require significant resources to defend. Litigation and contested proceedings can also be expensive and time-consuming, and our adversaries in these proceedings may have the ability to dedicate substantially greater resources to prosecuting these legal actions than we can. The risks of being involved in such litigation and proceedings may increase if and as our drug candidates near commercialization and as we gain the greater visibility associated with being a public company. Third parties may assert infringement claims against us based on existing patents or patents that may be granted in the future, regardless of merit. We may not be aware of all such intellectual property rights potentially relating to our technology and drug candidates and their uses. Thus, we do not know with certainty that our technology and drug candidates, or our development and commercialization thereof, do not and will not infringe, misappropriate or otherwise violate any third party's intellectual property.

Even if we believe that third party intellectual property claims are without merit, there is no assurance that a court would rule in our favor on questions of misappropriation, infringement, validity, enforceability, or priority. A court of competent jurisdiction could hold these third-party patents are valid, enforceable, and infringed, which could materially and adversely affect our ability to commercialize any technology or drug candidate covered by the asserted third-party patents. In order to successfully challenge the validity of any such U.S. patent in federal court, we would need to overcome a presumption of validity. As this burden is a high one requiring us to present clear and convincing evidence as to the invalidity of any such U.S. patent claim, there is no assurance that a court of competent jurisdiction would invalidate the claims of any such U.S. patent.

If we are found to infringe, misappropriate or otherwise violate a third party's intellectual property rights, we could be required to obtain a license from such third party to continue developing, manufacturing and marketing our technology and drug candidates. However, we may not be able to obtain any required license on commercially reasonable terms or at all. Even if we were able to obtain a license, it could be non-exclusive; thereby giving our competitors and other third parties access to the same technologies licensed to us and could require us to make substantial licensing and royalty payments. We could be forced, including by court order, to cease developing, manufacturing and commercializing the infringing technology or drug. In addition, we could be found liable for significant monetary damages, including treble damages and attorneys' fees, if we are found to have willfully infringed a patent or other intellectual property right and could be forced to indemnify our collaborators or others. A finding of infringement could prevent us from commercializing our drug candidates or force us to cease some of our business operations, which could materially harm our business. In addition, we may be forced to redesign our drug candidates, seek new regulatory approvals and indemnify third parties pursuant to contractual agreements. Claims that we have misappropriated the confidential information or trade secrets of third parties could have a similar material adverse effect on our business, financial condition, results of operations, and prospects.

***Intellectual property litigation or other legal proceedings relating to intellectual property could cause us to spend substantial resources and distract our personnel from their normal responsibilities.***

Even if resolved in our favor, litigation or other legal proceedings relating to intellectual property claims may cause us to incur significant expenses, and could distract our technical and management personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings, motions or other interim proceedings or developments and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our common stock. Such litigation or proceedings could substantially increase our operating losses and reduce the resources available for development activities or any future sales, marketing or distribution activities. We may not have sufficient financial or other resources to conduct such litigation or proceedings adequately. Some of our competitors may be able to sustain the costs of such litigation or proceedings more effectively than we can because of their greater financial resources and may also have an advantage in such proceedings due to their more mature and developed intellectual property portfolios. Uncertainties resulting from the initiation and continuation of intellectual property litigation or other proceedings could compromise our ability to compete in the marketplace.

***If we fail to comply with our obligations in our existing or future intellectual property licenses and funding arrangements with third parties, we could lose rights that are important to our business.***

We currently have two licensing agreements with the University of California-Irvine pursuant to which we have certain obligations we must meet. These are typical obligations for US university licenses and include the payment of annual license fees, milestone fees, reimbursement of patent fees incurred by the university, their patent counsel and from patent office actions. When/if the licensed technology is commercialized, royalty on future commercial sales will be owed to the university and in the event the technology is sold to another entity, a fraction of the income from the sale will be owed to the university. The license agreements also include standard provisions for the university to terminate the agreements in the case of non-performance. Copies of our license agreements are included in Exhibit 10.1 – 10.4. In addition, we may become a party to future license and funding agreements that impose diligence, development and commercialization timelines, milestone payment, royalty, insurance and other obligations on us. If we fail to comply with such obligations, our counterparties may have the right to terminate our agreements or require us to grant them certain rights. Such an occurrence could materially adversely affect the value of any drug candidate being developed under any such agreement. Termination of these agreements or reduction or elimination of our rights under these agreements may result in our having to negotiate new or reinstated agreements with less favorable terms, or cause us to lose our rights under these agreements, including our rights to important intellectual property or technology, which would have a material adverse effect on our business, financial condition, results of operations, and prospects.

Additionally, these and other license agreements may not provide exclusive rights to use the licensed intellectual property and technology in all relevant fields of use and in all territories in which we may wish to develop or commercialize our technology and drugs in the future. As a result, we may not be able to prevent competitors from developing and commercializing competitive products and technology in fields of use and territories not included in such agreements. In addition, we may not have the right to control the preparation, filing, prosecution, maintenance, enforcement, and defense of patents and patent applications covering the technology that we may license from third parties. Therefore, we cannot be certain that these patents and patent applications will be prepared, filed, prosecuted, maintained, and defended in a manner consistent with the best interests of our business. If our licensors fail to prosecute, maintain, enforce, and defend such patents, or lose rights to those patents or patent applications, the rights we have licensed may be reduced or eliminated, and our right to develop and commercialize any of our drugs that are the subject of such licensed rights could be adversely affected.

We may need to obtain additional licenses from others to advance our research or allow commercialization of our drug candidates. It is possible that we may be unable to obtain additional licenses at a reasonable cost or on reasonable terms, if at all, or such licenses may be non-exclusive. The licensing or acquisition of third-party intellectual property rights is a competitive area, and several more established companies may pursue strategies to license or acquire third-party intellectual property rights that we may consider attractive or necessary. These established companies may have a competitive advantage over us due to their size, capital resources and greater clinical development and commercialization capabilities. In addition, companies that perceive us to be a competitor may be unwilling to assign or license rights to us. We also may be unable to license or acquire third-party intellectual property rights on terms that would allow us to make an appropriate return on our investment or at all.

If we are unable to obtain rights to required third-party intellectual property rights or maintain the existing intellectual property rights we have, we may be required to expend significant time and resources to redesign our technology, drug candidates, or the methods for manufacturing them or to develop or license replacement technology, all of which may not be feasible on a technical or commercial basis. If we are unable to do so, we may be unable to develop or commercialize the affected technology and drug candidates, which could harm our business, financial condition, results of operations, and prospects significantly.

Disputes may arise regarding intellectual property subject to a licensing agreement, including:

● the scope of rights granted under the license agreement and other interpretation related issues;

● the extent to which our technology and processes infringe on intellectual property of the licensor that is not subject to the licensing agreement;

● the sublicensing of patent and other rights under our collaborative development relationships;

● our diligence obligations under the license agreement and what activities satisfy those diligence obligations;

● the inventorship and ownership of inventions and know-how resulting from the joint creation or use of intellectual property by our licensors and us and our partners; and

● the priority of invention of patented technology.

In addition, any agreements under which we license intellectual property or technology from third parties may be complex, and certain provisions in such agreements may be susceptible to multiple interpretations. The resolution of any contract interpretation disagreement that may arise could narrow what we believe to be the scope of our rights to the relevant intellectual property or technology, or increase what we believe to be our financial or other obligations under the relevant agreement, either of which could have a material adverse effect on our business, financial condition, results of operations, and prospects. Moreover, if disputes over intellectual property that we have licensed prevent or impair our ability to maintain our current licensing arrangements on commercially acceptable terms, we may be unable to successfully develop and commercialize the affected technology and drug candidates, which could have a material adverse effect on our business, financial conditions, results of operations, and prospects.

***Our future licensors may rely on third-party consultants or collaborators or on funds from third parties such that our licensors are not the sole and exclusive owners of the patents and patent applications we in-licensed. If other third parties have ownership rights to our in-licensed patents, they may be able to license such patents to our competitors, and our competitors could market competing products and technology. This could have a material adverse effect on our competitive position, business, financial conditions, results of operations, and prospects.***

In spite of our best efforts, our future licensors might conclude that we have materially breached our license agreements and might therefore terminate our license agreements, thereby removing our ability to develop and commercialize drug candidates and technology covered by such agreements. If these in-licenses are terminated, or if the underlying intellectual property fails to provide the intended exclusivity, competitors would have the freedom to seek regulatory approval of, and to market, products and technologies identical to ours. This could have a material adverse effect on our competitive position, business, financial conditions, results of operations, and prospects.

***We may not be able to protect our intellectual property and proprietary rights throughout the world.***

Filing, prosecuting, and defending patents on drug candidates in all countries throughout the world would be prohibitively expensive, and the laws of foreign countries may not protect our rights to the same extent as the laws of the United States. Consequently, we may not be able to prevent third parties from using our inventions in all countries outside the United States, or from selling or importing products made using our inventions in and into the United States or other jurisdictions. Competitors may use our technologies in jurisdictions where we have not obtained patent protection to develop their own products and, further, may export otherwise infringing products to territories where we have patent protection or licenses, but enforcement is not as strong as that in the United States. These products may compete with our products, and our patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.

Many companies have encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents, trade secrets, and other intellectual property protection, particularly those relating to pharmaceutical products, which could make it difficult for us to stop the infringement of our patents or marketing of competing products in violation of our intellectual property and proprietary rights generally. Proceedings to enforce our intellectual property and proprietary rights in foreign jurisdictions could result in substantial costs and divert our efforts and attention from other aspects of our business, could put our patents at risk of being invalidated or interpreted narrowly, could put our patent applications at risk of not issuing, and could provoke third parties to assert claims against us. We may not prevail in any lawsuits that we initiate, and the damages or other remedies awarded, if any, may not be commercially meaningful. Accordingly, our efforts to enforce our intellectual property and proprietary rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that we develop or license.

Many countries have compulsory licensing laws under which a patent owner may be compelled to grant licenses to third parties. In addition, many countries limit the enforceability of patents against government agencies or government contractors. In these countries, the patent owner may have limited remedies, which could materially diminish the value of such patent. If we or any of our licensors is forced to grant a license to third parties with respect to any patents relevant to our business, our competitive position may be impaired, and our business, financial condition, results of operations, and prospects may be adversely affected.

**Risks Related to Managing Our Business and Operations**

***We may encounter difficulties in managing our growth, which could adversely affect our operations.***

As our clinical development and commercialization plans and strategies develop, and as we transition into operating as a public company, we will need to expand our managerial, clinical, regulatory, sales, marketing, financial, development, manufacturing and legal capabilities or contract with third parties to provide these capabilities for us. As our operations expand, we expect that we will need to manage additional relationships with various strategic collaborators, suppliers and other third parties. Our future growth would impose significant added responsibilities on members of management, including:

● identifying, recruiting, integrating, maintaining and motivating additional employees;

● managing our development and commercialization efforts effectively, including the clinical and FDA review process for our product candidates, while complying with our contractual obligations to contractors and other third parties; and

● improving our operational, financial and management controls, reporting systems and procedures.

Our ability to continue to develop and, if approved, commercialize our product candidates will depend, in part, on our ability to effectively manage any future growth. Our management may also have to divert a disproportionate amount of its attention away from day-to-day activities in order to devote a substantial amount of time to managing these growth activities.

We currently rely, and for the foreseeable future will continue to rely, in substantial part on certain independent organizations, advisors and consultants to provide certain services, including contract manufacturers and companies focused on research and development and discovery activities. There can be no assurance that the services of independent organizations, advisors and consultants will continue to be available to us on a timely basis when needed, or that we can find qualified replacements. In addition, if we are unable to effectively manage our outsourced activities or if the quality, accuracy or quantity of the services provided is compromised for any reason, our clinical trials may be extended, delayed or terminated, and we may not be able to obtain, or may be substantially delayed in obtaining, regulatory approval of our product candidates or otherwise advance our business. There can be no assurance that we will be able to manage our existing consultants or find other competent outside contractors and consultants on economically reasonable terms, or at all.

If we are not able to effectively expand our organization by hiring new employees and expanding our groups of consultants and contractors, we may not be able to successfully implement the tasks necessary to further develop and commercialize our product candidates and, accordingly, may not achieve our research, development and commercialization goals.

We may acquire additional technology and complementary businesses in the future. Acquisitions involve many risks, any of which could materially harm our business, including the diversion of management's attention from core business concerns, failure to effectively exploit acquired technologies, failure to successfully integrate the acquired business or realize expected synergies or the loss of key employees from either our business or the acquired businesses.

***If we lose key management leadership, and/or scientific personnel, and if we cannot recruit qualified employees, managers, directors, officers, or other significant personnel, we may experience program delays and increases in compensation costs, and our business may be materially disrupted.***

Our future success is highly dependent on the continued service of principal members of our management, leadership, and scientific personnel, who are able to terminate their employment with us at any time and may be able to compete with us. The loss of any of our key management, leadership, or scientific personnel including, in particular, Soren Mogelsvang, our President and CEO, Rich Paul, our CMO, or Daniele Piomelly, our CSO, could materially disrupt our business and materially delay or prevent the successful product development and commercialization of our product candidates. We have an employment agreement with Soren Mogelsvang which has no term but are for at-will employment, meaning the executives have the ability to terminate their employment at any time with 45 days written notice.

Our future success will also depend on our continuing ability to identify, hire, and retain highly skilled personnel for all areas of the organization. Competition in the biopharmaceutical industry for scientifically and technically qualified personnel is intense, and we may be unsuccessful in identifying, hiring, and retaining qualified personnel. Our continued requirement to identify, hire, and retain highly competent personnel may cause our compensation costs to increase. As of March 31, 2025, we had one full-time employee and three part-time employees. As our clinical and commercialization development plans and strategies develop, we will need to expand our managerial, clinical, regulatory, sales, marketing, financial, development, manufacturing and legal capabilities or contract with third parties to provide these capabilities for us. As our operations expand, we expect that we will need to manage additional relationships with various strategic collaborators, suppliers and other third parties. Our future growth would impose significant added responsibilities on members of management, including:

● identifying, recruiting, integrating, maintaining and motivating additional employees;

● managing our development and commercialization efforts effectively, while complying with our contractual obligations to contractors and other third parties; and

● improving our operational, financial and management controls, reporting systems and procedures.

Our ability to continue to develop and, if approved, commercialize our product candidates will depend, in part, on our ability to effectively manage any future growth. Our management may also have to divert a disproportionate amount of its attention away from day-to-day activities in order to devote a substantial amount of time to managing these growth activities.

We currently rely, and for the foreseeable future will continue to rely, in substantial part on certain independent organizations, advisors and consultants to provide certain services, including contract manufacturers and companies focused on research and development activities. There can be no assurance that the services of independent organizations, advisors and consultants will continue to be available to us on a timely basis when needed, or that we can find qualified replacements. In addition, if we are unable to effectively manage our outsourced activities or if the quality, accuracy or quantity of the services provided is compromised for any reason, our clinical trials may be extended, delayed or terminated, and we may not be able to obtain, or may be substantially delayed in obtaining, regulatory approval of our product candidates or otherwise advance our business.

***Our internal computer systems, or those of our collaborators or other contractors or consultants, may fail or suffer security breaches, which could result in a material disruption of our product development programs.***

Our internal computer systems and those of our current and any future collaborators and other contractors or consultants are vulnerable to damage from computer viruses, unauthorized access, natural disasters, terrorism, war and telecommunication and electrical failures. While we have not experienced any such material system failure, accident or security breach to date, if such an event were to occur and cause interruptions in our operations, it could result in a disruption of our development programs and our business operations, whether due to a loss of our trade secrets or other proprietary information or other similar disruptions. For example, the loss of clinical trial data from future clinical trials could result in delays in our regulatory approval efforts and significantly increase our costs to recover or reproduce the data. To the extent that any disruption or security breach were to result in a loss of, or damage to, our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability, our competitive position could be harmed and the further development and commercialization of our product candidates could be delayed.

We could be subject to risks caused by misappropriation, misuse, leakage, falsification or intentional or accidental release or loss of information maintained in the information systems and networks of our company and our vendors, including personal information of our employees and study subjects, and company and vendor confidential data. In addition, outside parties may attempt to penetrate our systems or those of our vendors or fraudulently induce our personnel or the personnel of our vendors to disclose sensitive information in order to gain access to our data and/or systems. We may experience threats to our data and systems, including malicious codes and viruses, phishing and other cyberattack. The number and complexity of these threats continue to increase over time. If a material breach of, or accidental or intentional loss of data from, our information technology systems or those of our vendors occurs, the market perception of the effectiveness of our security measures could be harmed and our reputation and credibility could be damaged. We could be required to expend significant amounts of money and other resources to repair or replace information systems or networks. In addition, we could be subject to regulatory actions and/or claims made by individuals and groups in private litigation involving privacy issues related to data collection and use practices and other data privacy laws and regulations, including claims for misuse or inappropriate disclosure of data, as well as unfair or deceptive practices. Although we develop and maintain systems and controls designed to prevent these events from occurring, and we have a process to identify and mitigate threats, the development and maintenance of these systems, controls and processes is costly and requires ongoing monitoring and updating as technologies change and efforts to overcome security measures become increasingly sophisticated. Moreover, despite our efforts, the possibility of these events occurring cannot be eliminated entirely. As we outsource more of our information systems to vendors, engage in more electronic transactions with payors and patients, and rely more on cloud-based information systems, the related security risks will increase and we will need to expend additional resources to protect our technology and information systems. In addition, there can be no assurance that our internal information technology systems or those of our third-party contractors, or our consultants' efforts to implement adequate security and control measures, will be sufficient to protect us against breakdowns, service disruption, data deterioration or loss in the event of a system malfunction, or prevent data from being stolen or corrupted in the event of a cyberattack, security breach, industrial espionage attacks or insider threat attacks which could result in financial, legal, business or reputational harm.

***Unfavorable global economic conditions could adversely affect our business, financial condition or results of operations.***

Our results of operations could be adversely affected by general conditions in the global economy and in the global financial markets. Portions of our future clinical trials may be conducted outside of the United States and unfavorable economic conditions resulting in the weakening of the U.S. dollar would make those clinical trials more costly to operate. Furthermore, the most recent global financial crisis caused extreme volatility and disruptions in the capital and credit markets. A severe or prolonged economic downturn could result in a variety of risks to our business, including a reduced ability to raise additional capital when needed on acceptable terms, if at all. A weak or declining economy or international trade disputes could also strain our suppliers, some of which are located outside of the United States, possibly resulting in supply disruption. Any of the foregoing could harm our business and we cannot anticipate all of the ways in which the current economic climate and financial market conditions could adversely impact our business.

***The increasing use of social media platforms presents new risks and challenges.***

Social media is increasingly being used to communicate about our clinical development programs and the diseases our therapeutics are being developed to treat, and we intend to utilize appropriate social media in connection with our commercialization efforts following approval of our product candidates, if any. Social media practices in the biopharmaceutical industry continue to evolve and regulations and regulatory guidance relating to such use are evolving and not always clear. This evolution creates uncertainty and risk of noncompliance with regulations applicable to our business, resulting in potential regulatory actions against us, along with the potential for litigation related to off-label marketing or other prohibited activities. For example, patients may use social media channels to comment on their experience in an ongoing blinded clinical trial or to report an alleged adverse event. When such disclosures occur, there is a risk that trial enrollment may be adversely impacted, that we fail to monitor and comply with applicable adverse event reporting obligations or that we may not be able to defend our business or the public's legitimate interests in the face of the political and market pressures generated by social media due to restrictions on what we may say about our product candidates. There is also a risk of inappropriate disclosure of sensitive information or negative or inaccurate posts or comments about us on any social networking website. If any of these events were to occur or we otherwise fail to comply with applicable regulations, we could incur liability, face regulatory actions or incur other harm to our business.

***The estimates of market opportunity and forecasts of market growth included in this prospectus may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business may not grow at similar rates, or at all.***

Market opportunity estimates and growth forecasts included in this prospectus are subject to significant uncertainty and are based on assumptions and estimates which may not prove to be accurate. The estimates and forecasts included in this prospectus relating to size and expected growth of our target market may prove to be inaccurate. Even if the markets in which we compete meet the size estimates and growth forecasts included in this prospectus, our business may not grow at similar rates, or at all. Our growth is subject to many factors, including our success in implementing our business strategy, which is subject to many risks and uncertainties.

***Our employees, independent contractors, consultants, commercial partners, collaborators and vendors may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements.***

We are exposed to the risk of employee fraud or other illegal activity by our employees, independent contractors, consultants, commercial partners, collaborators and vendors. Misconduct by these parties could include intentional, reckless and/or negligent conduct that fails to comply with the laws of the FDA and other similar foreign regulatory bodies, provide true, complete and accurate information to the FDA and other similar foreign regulatory bodies, comply with manufacturing standards we have established, comply with healthcare fraud and abuse laws in the United States and similar foreign fraudulent misconduct laws, or report financial information or data accurately or to disclose unauthorized activities to us. If we obtain FDA approval of any of our product candidates and begin commercializing those products in the United States, our potential exposure under such laws will increase significantly, and our costs associated with compliance with such laws will also increase. These laws may impact, among other things, our current activities with principal investigators and research patients, as well as proposed and future sales, marketing and education programs. In connection with this offering, we will adopt a code of business conduct and ethics, but it is not always possible to identify and deter misconduct by our employees, independent contractors, consultants, commercial partners and vendors, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to comply with these laws or regulations. If any actions are instituted against us and we are not successful in defending ourselves or asserting our rights, those actions could result in the imposition of civil, criminal and administrative penalties, damages, monetary fines, imprisonment, disgorgement, possible exclusion from participation in government healthcare programs, additional reporting obligations and oversight if we become subject to a corporate integrity agreement or other agreement to resolve allegations of non-compliance with these laws, contractual damages, reputational harm, diminished profits and future earnings and the curtailment of our operations.

***Failure to comply with health and data protection laws and regulations could lead to government enforcement actions (which could include civil or criminal penalties), private litigation and/or adverse publicity and could negatively affect our operating results and business.***

We and any potential collaborators may be subject to federal, state and foreign data protection laws and regulations (i.e., laws and regulations that address privacy and data security). In the United States, numerous federal and state laws and regulations, including federal health information privacy laws, state data breach notification laws, state health information privacy laws and federal and state consumer protection laws (e.g., Section 5 of the Federal Trade Commission Act), that govern the collection, use, disclosure and protection of health-related and other personal information could apply to our operations or the operations of our collaborators. In addition, we may obtain health information from third parties (including research institutions from which we obtain clinical trial data) that are subject to privacy and security requirements under the HIPAA, as amended by HITECH. Depending on the facts and circumstances, we could be subject to criminal penalties if we knowingly obtain, use, or disclose individually identifiable health information maintained by a HIPAA-covered entity in a manner that is not authorized or permitted by HIPAA.

Compliance with U.S. and international data protection laws and regulations could require us to take on more onerous obligations in our contracts, restrict our ability to collect, use and disclose data, or in some cases, impact our ability to operate in certain jurisdictions. Failure to comply with U.S. and international data protection laws and regulations could result in government enforcement actions (which could include civil, criminal, and administrative penalties), private litigation and/or adverse publicity and could negatively affect our operating results and business. Moreover, clinical trial subjects about whom we or our potential collaborators obtain information, as well as the providers who share this information with us, may contractually limit our ability to use and disclose the information. Claims that we have violated individuals' privacy rights, failed to comply with data protection laws, or breached our contractual obligations, even if we are not found liable, could be expensive and time consuming to defend and could result in adverse publicity that could harm our business.

***Changes in U.S. tax law could adversely affect our financial condition and results of operations.***

The rules dealing with U.S. federal, state, and local income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue Service and the U.S. Treasury Department. Changes to tax laws (which changes may have retroactive application) could adversely affect us or holders of our common stock. In recent years, many such changes have been made and changes are likely to continue to occur in the future.

Future changes in U.S. tax laws could have a material adverse effect on our business, cash flow, financial condition or results of operations. We urge investors to consult with their legal and tax advisors regarding the implications of potential changes in U.S. tax laws on an investment in our common stock.

**Risks Related to Our Common Stock and this Offering**

***There is no established public market for our common stock, and there is no assurance that a public market for our common stock will develop in the future.***

There is no established public trading market for our securities and there is no assurance that a public market for our common stock will develop in the future. We intend to apply to list our shares of common stock on the OTCQX® Best Market or the OTCQB® Venture Market, subject to official notice of issuance, under the symbol [ ]. No assurance can be given that our applications will be approved, or if approved, that a market for our shares will develop or be sustainable. As a result of these and other factors, it may be difficult to sell any shares you purchase in this offering if you desire or need to sell them. If our applications are not approved, we will not continue with this offering.

Further, an inactive market may also impair our ability to raise capital by selling shares of our common stock and may impair our ability to enter into strategic collaborations or acquire companies or products by using our shares of common stock as consideration.

***The price of our stock may be volatile, and you could lose all or part of your investment.***

In the event a market does develop for our common stock, the trading price is likely to be highly volatile and could be subject to wide fluctuations in response to various factors, some of which are beyond our control, including limited trading volume. In addition to the factors discussed in this "Risk Factors" section and elsewhere in this prospectus, these factors include:

● the commencement, enrollment or results of clinical trials and pre-clinical studies of our drug candidates or those of our competitors;

● any delay in identifying and advancing a clinical candidate for our other development programs;

● any delay in our regulatory filings for our drug candidates and any adverse development or perceived adverse development with respect to the applicable regulatory authority's review of such filings, including without limitation the FDA's issuance of a "refusal to file" letter or a request for additional information;

● adverse results or delays in future clinical trials;

● our decision to initiate a clinical trial, not to initiate a clinical trial or to terminate an existing clinical trial;

● adverse regulatory decisions, including failure to receive regulatory approval for our drug candidates;

● changes in laws or regulations applicable to our drug candidates, including but not limited to clinical trial requirements for approvals;

● adverse developments concerning our manufacturers;

● our inability to obtain adequate product supply for any approved product or inability to do so at acceptable prices;

● our inability to establish collaborations, if needed;

● our failure to commercialize our product candidates, if approved;

● additions or departures of key scientific or management personnel;

● unanticipated serious safety concerns related to the use of our drug candidates;

● introduction of new products offered by us or our competitors;

● announcements of significant acquisitions, strategic partnerships, joint ventures or capital commitments by us or our competitors;

● our ability to effectively manage our growth;

● actual or anticipated variations in quarterly operating results;

● our cash position;

● our failure to meet the estimates and projections of the investment community or that we may otherwise provide to the public;

● changes in the market valuations of similar companies;

● changes in the structure of the healthcare payment systems;

● overall performance of the equity markets;

● sales of our common stock by us or our stockholders in the future;

● trading volume of our common stock;

● changes in accounting practices;

● ineffectiveness of our internal controls;

● disputes or other developments relating to proprietary rights, including patents, litigation matters and our ability to obtain patent protection for our technologies;

● significant lawsuits, including patent or stockholder litigation;

● general political and economic conditions; and

● other events or factors, many of which are beyond our control.

In addition, the stock market in general, and the market for biopharmaceutical companies in particular, have experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of these companies. Broad market and industry factors may negatively affect the market price of our common stock, regardless of our actual operating performance. If the market price of our common stock after this offering does not exceed the initial public offering price, you may not realize any return on your investment in us and may lose some or all of your investment. In the past, securities class action litigation has often been instituted against companies following periods of volatility in the market price of a company's securities. This type of litigation, if instituted, could result in substantial costs and a diversion of management's attention and resources.

***We do not intend to pay dividends on our common stock so any returns will be limited to the value of our stock.***

We currently anticipate that we will retain future earnings for the development, operation and expansion of our business and do not anticipate declaring or paying any cash dividends for the foreseeable future. Furthermore, future debt or other financing arrangements may contain terms prohibiting or limiting the amount of dividends that may be declared or paid on our common stock. Any return to stockholders will therefore be limited to the appreciation of their stock.

***Our principal stockholders and management own a significant percentage of our stock and will be able to exert significant control over matters subject to stockholder approval.***

Immediately following the completion of this offering, our executive officers, directors and their affiliates will beneficially hold, in the aggregate, approximately 25% of our outstanding voting stock. These stockholders, acting together, would be able to significantly influence all matters requiring stockholder approval. For example, these stockholders would be able to significantly influence elections of directors, amendments of our organizational documents, or approval of any merger, sale of assets, or other major corporate transaction. This may prevent or discourage unsolicited acquisition proposals or offers for our common stock that you may feel are in your best interest as one of our stockholders.

***We are an emerging growth company, and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our common stock less attractive to investors.***

We are an emerging growth company, as defined in the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in this prospectus and our periodic reports and proxy statements and exemptions from the requirements of holding nonbinding advisory votes on executive compensation and stockholder approval of any golden parachute payments not previously approved. We will remain an emerging growth company until the earlier of (i) the last day of the fiscal year (a) following the fifth anniversary of the completion of this offering, (b) in which we have total annual gross revenue of at least $1.07 billion or (c) in which we are deemed to be a large accelerated filer, which requires the market value of our common stock that is held by non-affiliates to exceed $700.0 million as of the prior June 30<sup>th</sup> and (ii) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

We may choose to take advantage of some, but not all, of the available exemptions. We cannot predict whether investors will find our common stock less attractive if we rely on certain or all of these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.

Under the JOBS Act, emerging growth companies can also delay adopting new or revised accounting standards until such time as those standards apply to private companies, which may make our financial statements less comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. We have chosen to take advantage of the extended transition periods available to emerging growth companies under the JOBS Act for complying with new or revised accounting standards until those standards would otherwise apply to private companies provided under the JOBS Act. As a result, our financial statements may not be comparable to those of companies that comply with public company effective dates for complying with new or revised accounting standards.

***Financial reporting obligations of being a public company in the U.S. are expensive and time-consuming, and our management will be required to devote substantial time to compliance matters.***

As a publicly traded company we will incur significant additional legal, accounting and other expenses that we did not incur as a privately held company. The obligations of being a public company in the U.S. require significant expenditures and will place significant demands on our management and other personnel, including costs resulting from public company reporting obligations under the Exchange Act and the rules and regulations regarding corporate governance practices, including those under the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the listing requirements of the stock exchange on which our securities are listed. These rules require the establishment and maintenance of effective disclosure and financial controls and procedures, internal control over financial reporting and changes in corporate governance practices, among many other complex rules that are often difficult to implement, monitor and maintain compliance with. Moreover, despite recent reforms made possible by the JOBS Act, the reporting requirements, rules, and regulations will make some activities more time-consuming and costly, particularly after we are no longer an "emerging growth company." In addition, we expect these rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance. Our management and other personnel will need to devote a substantial amount of time to ensure that we comply with all of these requirements and to keep pace with new regulations, otherwise we may fall out of compliance and risk becoming subject to litigation or being delisted, among other potential problems.

***If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, stockholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our common stock.***

Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud. Any failure to implement required new or improved controls, or difficulties encountered in their implementation could cause us to fail to meet our reporting obligations. In addition, any testing by us conducted in connection with Section 404, or any subsequent testing by our independent registered public accounting firm, may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses or that may require prospective or retroactive changes to our financial statements or identify other areas for further attention or improvement. Inferior internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our stock.

We will be required to disclose changes made in our internal controls and procedures on a quarterly basis and our management will be required to assess the effectiveness of these controls annually. However, for as long as we are an emerging growth company, our independent registered public accounting firm will not be required to attest to the effectiveness of our internal controls over financial reporting pursuant to Section 404. An independent assessment of the effectiveness of our internal controls over financial reporting could detect problems that our management's assessment might not. Undetected material weaknesses in our internal controls over financial reporting could lead to restatements of our financial statements and require us to incur the expense of remediation.

***Substantial amounts of our outstanding shares may be sold into the market when lock-up periods end. If there are substantial sales of shares of our common stock, the price of our common stock could decline.***

A significant number of our outstanding shares of common stock held by our directors, executive officers and certain stockholders are subject to contractual lock-up restrictions on resale for a period of time following the date of this prospectus

If a public market does develop for our common stock and, following expiration of lock-up restrictions our existing stockholders sell substantial amounts of our common stock in the public market, or if the public perceives that such sales could occur, the market price of our common stock could decline significantly even if there is no relationship between such sales and the performance of our business.

***If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.***

If a public market does develop for our common stock, the trading market for our common stock will depend in part on the research and reports that securities or industry analysts publish about us or our business. Securities and industry analysts do not currently, and may never, publish research on our company. If no securities or industry analysts commence coverage of our company, the trading price for our stock would likely be negatively impacted. In the event securities or industry analysts initiate coverage, if one or more of the analysts who covers us downgrades our stock or publishes inaccurate or unfavorable research about our business, our stock price may decline. If one or more of these analysts ceases coverage of our company or fails to publish reports on us regularly, demand for our stock could decrease, which might cause our stock price and trading volume to decline.

***We could be subject to securities class action litigation***

In the past, securities class action litigation has often been brought against a company following a decline in the market price of its securities. This risk is especially relevant for us because pharmaceutical companies have experienced significant stock price volatility in recent years. If we face such litigation, it could result in substantial costs and a diversion of management's attention and resources, which could harm our business.

**General Risk Factors**

***Our business is subject to risks arising from pandemics and epidemic diseases.***

The COVID-19 worldwide pandemic presented substantial public health and economic challenges and affected our employees, patients, physicians and other healthcare providers, communities and business operations, as well as the U.S. and global economies and financial markets. Any future pandemic or epidemic disease outbreaks could disrupt the supply chain and the manufacture or shipment of drug substances and finished drug products for EX937 or any future product candidates for use in our, our collaborators' or any future collaborators' clinical trials and research and preclinical studies and, delay, limit or prevent our employees and CROs from continuing research and development activities, impede our clinical trial initiation and recruitment and the ability of patients to continue in clinical trials, alter the results of the clinical trial based on participants contracting the disease or otherwise increasing the number of observed adverse events, impede testing, monitoring, data collection and analysis and other related activities, any of which could delay our preclinical studies and clinical trials and increase our development costs, and have a material adverse effect on our business, financial condition, results of operations and prospects. Any future pandemic or epidemic disease outbreak could also potentially further affect the business of the FDA, EMA or other regulatory authorities, which could result in delays in meetings related to our planned clinical trials, as well have an adverse impact on global economic conditions which could have an adverse effect on our business and financial condition, including impairing our ability to raise capital when needed.

***Unstable market and economic conditions may have serious adverse consequences on our ability to raise funds, which may cause us to cease or delay our operations.***

From time to time, the global credit and financial markets have experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. The financial markets and the global economy may also be adversely affected by the current or anticipated impact of military conflict, terrorism or other geopolitical events. Sanctions imposed by the United States and other countries in response to such conflicts may also adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability. Future adverse developments with respect to specific financial institutions or the broader financial services industry may lead to market-wide liquidity shortages, impair the ability of companies to access near-term working capital needs, and create additional market and economic uncertainty. There can be no assurance that future credit and financial market instability and a deterioration in confidence in economic conditions will not occur. Our general business strategy may be adversely affected by any such economic downturn, liquidity shortages, volatile business environment or continued unpredictable and unstable market conditions. If the equity and credit markets deteriorate, or if adverse developments are experienced by financial institutions, it may cause short-term liquidity risk and also make any necessary debt or equity financing more difficult, more costly, more onerous with respect to financial and operating covenants and more dilutive. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy, financial performance and stock price and could require us to delay, limit, reduce or abandon product development or future commercialization efforts or grant rights to develop and market our product candidates even if we would otherwise prefer to develop and market such product candidates ourselves. In addition, there is a risk that one or more of our current service providers, financial institutions, manufacturers and other partners may be adversely affected by the foregoing risks, which could directly affect our ability to attain our operating goals on schedule and on budget.

**INDUSTRY AND MARKET DATA**

Certain market, industry and competitive data included in this prospectus were obtained from our own internal estimates and research, as well as from publicly available information, reports of governmental agencies and industry publications and surveys in addition to research, surveys and studies conducted by third parties. The content of these third-party sources, except to the extent specifically set forth in this prospectus, does not constitute a portion of this prospectus and is not incorporated herein. Internal estimates are derived from publicly available information released by industry analysts and third-party sources, our internal research and our industry experience, and are based on assumptions made by us based on such data and our knowledge of our industry and market, which we believe to be reasonable. In some cases, we do not expressly refer to the sources from which this data is derived. In that regard, when we refer to one or more sources of this type of data in any paragraph, you should assume that other data of this type appearing in the same paragraph is derived from the same sources, unless otherwise expressly stated or the context otherwise requires.

In addition, while we are responsible for all of the disclosure contained in this prospectus and we believe the industry, market and competitive position data included in this prospectus is reliable and based on reasonable assumptions, such data involve risks and uncertainties and are subject to change based on various factors, including those discussed in the sections titled "Risk Factors" and "Special Note Regarding Forward-Looking Statements." These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

**USE OF PROCEEDS**

We will not receive any of the proceeds from any sale of shares of common stock pursuant to this prospectus. We will not receive any of the proceeds from any sale of shares of common stock pursuant to this prospectus.

**DIVIDEND POLICY**

We have not declared or paid any cash dividends on our common stock to date. We may retain future earnings, if any, for future operations, expansion and debt repayment and have no current plans to pay cash dividends for the foreseeable future. Any decision to declare and pay dividends in the future will be made at the discretion of our board of directors and will depend on, among other things, our results of operations, financial condition, cash requirements, contractual restrictions and other factors that the board may deem relevant and subject to applicable laws and the restrictions contained in any future financing instruments. We do not anticipate declaring any cash dividends to holders of the common stock in the foreseeable future.

**SELLING STOCKHOLDERS**

The following table sets forth the shares beneficially owned, as of the date of this prospectus, by the Selling Stockholder prior to the offering contemplated by this prospectus, the number of shares the Selling Stockholder is offering by this prospectus and the number of shares it would own beneficially if all such offered shares are sold.

Beneficial ownership is determined in accordance with rules of attribution as promulgated by the SEC. Under these rules, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power to vote or direct the voting of the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Under SEC rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he or she may not have any pecuniary beneficial interest. Except as noted below, each person has sole voting and investment power.

Prior to this offering, there is currently no public market established for our common stock. The Selling Stockholders will sell the shares being registered under this prospectus at [$] per share. We intend to apply to list our shares of common stock on the OTCQX® Best Market or the OTCQB® Venture Market, subject to official notice of issuance, under the symbol [ ]. No assurance can be given that our applications will be approved. If our application is not approved, we will not continue with this offering. If we succeed in securing quotation of our common stock on the OTCQX® Best Market or the OTCQB® Venture Market and a market for our shares develops, the Selling Stockholders may sell their shares from time to time at the prevailing market price at the time of offer and sale, or at prices related to such prevailing market prices or in negotiated transactions or a combination of such methods of sale directly or through brokers.

Except as otherwise indicated, the beneficial owners listed in the table below possess the sole voting and dispositive power in regard to such shares and have an address of c/o Exxel Pharma Inc., 12635 E. Montview Blvd, Suite 134, Aurora, CO 80045. As of September 19, 2025, there were 4,599,327 shares of our common stock outstanding.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Address of <br> Beneficial Owners of <br> Common Stock** | **Material<br> Relationship** | **Ownership<br> Prior to<br> the<br> Offering<sup>(1)</sup>** | **% Prior<br> to the<br> Offering<sup>(1)</sup>** | **Total<br> Shares<br> Offered<br> for Sale** | **Total Shares <br> Immediately<br> After<br> Offering<sup>(2)</sup>** | **%<br> Owned<br> After<br> Offering** |
| **<u>Executive Officers & Directors</u>** |  | | | | | |
| Soren Mogelsvang<br> 751 Grant Place<br> Boulder, CO 80302-7412 | President, CEO & Director | 1075000 | 23.37% |  | 1075000 | 23.37% |
| Daniele Piomelli<br> 3 Valley View<br> Irvine, CA 92612-3211 | CSO | 350000 | 7.61% |  | 350000 | 7.61% |
| **<u>Other Selling Stockholders</u>** |  |  |  |  |  |  |
| Sukh Athwal<br> 2103-1383 Marinaside Crescent<br> Vancouver BC. V6Z 2W9 | Investor | 220000 | 4.78% | 33000 | 187000 | 4.07% |
| Rana Yassin<br> 861 Farmleigh<br> W. Vancouver, BC V7s 1Z8 | Investor | 206250 | 4.48% | 30938 | 175313 | 3.81% |
| Mohamed Abdulaziz Serafi<br> Soliman Al Qadi Street<br> Al Muhammadiyah District <br> Villa 80 Jeddah 23617 | Investor | 206250 | 4.48% | 30938 | 175313 | 3.81% |
| Haywood Securities Inc<br> 700-200 Burrard St<br> Vancouver BC V6C 3L6 | Investor | 197500 | 4.29% | 29625 | 167875 | 3.65% |
| Blackstone Capital Partners Inc<br> 3692 36<sup>th</sup> Ave W<br> Vancouver BC V6N 2S4 | Investor | 150000 | 3.26% | 22500 | 127500 | 2.77% |
| Nova Trek Capital Inc<br> 25-2504 43 St<br> Vernon, BC V1T 6L1 | Investor | 150000 | 3.26% | 22500 | 127500 | 2.77% |
| Ty & Sons Investments Inc<br> 1030 W Georgia St Suite 918<br> Vancouver BC V6E 2Y3 | Investor | 125000 | 2.72% | 18750 | 106250 | 2.31% |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Syra Dhaliwal<br> 1548 Windsor St NW<br> Calgary AB T2N 3X3 | Investor | 122500 | 2.66% | 18375 | 104125 | 2.26% |
| Shellwater & Company<br> 1111 Franklin St<br> Oakland CA 94607-5212 | Investor | 113000 | 2.46% | 16950 | 96050 | 2.09% |
| Amir Singh Athwal<br> 4209 40 ST<br> Delta, BC V4K 3N2 | Investor | 102500 | 2.23% | 15375 | 87125 | 1.89% |
| PI Financial Corp<br> 1900-666 Burrard St<br> Vancouver, BC V6C 2X8 | Investor | 100000 | 2.17% | 15000 | 85000 | 1.85% |
| Michael Tan<br> 8 Cairnhill Rise 13-01<br> Singapore 229743 | Investor | 90000 | 1.96% | 13500 | 76500 | 1.66% |
| Ty & Sons Investments Inc<br> 1030 W Georgia St Suite 918<br> Vancouver, BC V6E 2Y3 | Investor | 66000 | 1.43% | 9900 | 56100 | 1.22% |
| CB1 Wellness Master Fund LP <br> 103 S Church Street<br> Georgetown KY1-1106 | Investor | 60000 | 1.3% | 1000 | 51000 | 1.11% |
| Alfred Simon Gregorian<br> 2785 Rosebery Ave<br> West Vancouver BC V7V 3A3 | Investor | 50000 | 1.09% | 7500 | 42500 | 0.92% |
| Spiro Kletas<br> 303 21<sup>ST</sup> Ave E <br> Vancouver BC V5V 1R2 | Investor | 50000 | 1.09% | 7500 | 42500 | 0.92% |
| PJK & Associates<br> 804-4078 Knight St<br> Vancouver BC V5N 5Y9 | Investor | 50000 | 1.09% | 7500 | 42500 | 0.92% |
| Northbay Capital Partners Corp<br> 918-1030 West Georgia St<br> Vancouver BC V6E 2Y3 | Investor | 49920 | 1.09% | 7488 | 42432 | 0.92% |
| Hanookah Developments<br> 2626 Croydon Dr Unit 107<br> Surrey BC V3Z 0S8 | Investor | 40000 | 0.87% | 6000 | 34000 | 0.74% |
| Mina Motadi<br> 565 Stevens Dr<br> West Vancouver BC V7S 1E1 | Investor | 40000 | 0.87% | 6000 | 34000 | 0.74% |
| Ocean Creation Investment Ltd<br> 31 Tomlinson Road 36-01<br> Singapore 247855 | Investor | 40000 | 0.87% | 6000 | 34000 | 0.74% |
| Mezzo Consulting Services SA<br> Almacen 50<br> Independencia Guaira 5350 | Investor | 37500 | 0.82% | 5625 | 31875 | 0.69% |
| Amir Singh Athwal<br> 4209 40 St<br> Delta BC V4K 3N2 | Investor | 34000 | 0.74% | 5100 | 28900 | 0.63% |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Ty & Sons Investments Inc<br> 1030 W Georgia St Suite 918<br> Vancouver BC V6E 2Y3 | Investor | 34000 | 0.74% | 5100 | 28900 | 0.63% |
| Jaspinder Brar<br> 14062-31 A Avenue<br> Surrey BC V4P 2J4 | Investor | 30000 | 0.65% | 4500 | 25500 | 0.55% |
| Jaspinder Brar<br> 14062-31 A Avenue<br> Surrey BC V4P 2J4 | Investor | 30000 | 0.65% | 4500 | 25500 | 0.55% |
| Eventus Advisory Group<br> 14201 Hayden Rd Ste A1<br> Scottsdale AZ 85260-2903 | Investor | 30000 | 0.65% | 4500 | 25500 | 0.55% |
| Bhupinder Kaur Lidder<br> 1654 57A St<br> Delta BC V4L 1X8 | Investor | 30000 | 0.65% | 4500 | 25500 | 0.55% |
| Kammal Lidder<br> 1654 57A St<br> Delta BC V4L 1X8 | Investor | 30000 | 0.65% | 4500 | 25500 | 0.55% |
| Dilpreet Dhaliwal<br> 1548 Windsor St NW<br> Calgary AB T2N 3X3 | Investor | 28000 | 0.61% | 4200 | 23800 | 0.52% |
| FKB Trust – Fred Bowers<br> 1954 1<sup>st</sup> St #122<br> Highland Park, IL 60035-3104 | Investor | 27007 | 0.59% | 4051 | 22956 | 0.5% |
| Onkar Athwal<br> 5090 Bentley Dr<br> Delta BC V4K 4J9 | Investor | 27000 | 0.59% | 4050 | 22950 | 0.5% |
| Syra Dhaliwal<br> 1548 Windsor St NW<br> Calgary AB T2N 3X3 | Investor | 26000 | 0.57% | 3900 | 22100 | 0.48% |
| Watson Global Holdings Inc<br> 115-1231 Pacific Blvd<br> Vancouver BC V6Z 0E2 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |
| Adrenaline Fund Limited<br> 1090 Hamilton St<br> Vancouver BC V6B 2R9 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |
| Canadian Nexus Ventures Ltd<br> 3961 Sharon Pl<br> West Vancouver BC V7V 4T6 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |
| CB1 Wellness Master Fund<br> 103 S Church Street<br> Georgetown KY1-1106 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |
| Purwanto Handoko<br> 1 Taman Warna 05-02<br> Singapore 276337 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |
| Purwanto Handoko<br> 1 Taman Warna 05-02<br> Singapore 276337 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Lara Holte<br> 115-1231 Pacific Blvd.<br> Vancouver BC V6Z 0E2 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |
| Kyron Jagpal<br> 2122 54<sup>th</sup> Ave E<br> Vancouver BC V5P 1Y7 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |
| Kamal Lidder<br> 1654 57A St<br> Delta BC V4L 1X8 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |
| Sentinel Corporate Services Inc<br> 918-1030 West Georgia St<br> Vancouver BC V6E 2Y3 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |
| Moulikdip Singh Toor<br> 178-16488 64 Ave<br> Surrey BC V3S 6X6 | Investor | 20000 | 0.43% | 3000 | 17000 | 0.37% |
| Shellwater & Company<br> 1111 Franklin St<br> Oakland CA 94607-5212 | Investor | 19500 | 0.42% | 2925 | 16575 | 0.36% |
| Purwanto Handoko<br> 1 Taman Warna 05-02<br> Singapore 276337 | Investor | 18000 | 0.39% | 2700 | 15300 | 0.33% |
| Mina Motadi<br> 565 Stevens Drive<br> West Vancouver BC V7S 1E1 | Investor | 16000 | 0.35% | 2400 | 13600 | 0.3% |
| Victor Ajit Singh Bains<br> 1068 51<sup>st</sup> Ave W<br> Vancouver BC V6P 1C3 | Investor | 13000 | 0.28% | 1950 | 11050 | 0.24% |
| PJK & Associates Inc<br> 804-4078 Knight St<br> Vancouver BC V5N 5Y9 | Investor | 12600 | 0.27% | 1890 | 10710 | 0.23% |
| Amir Sing Athwal<br> 4209 40 St<br> Delta BC V4K 3N2 | Investor | 12000 | 0.26% | 1800 | 10200 | 0.22% |
| Baldeep Sangha<br> 7351 141A St<br> Surrey BC V3W 7L3 | Investor | 12000 | 0.26% | 1800 | 10200 | 0.22% |
| Jagtar Kaur Bains<br> 5383 Spetifore Crescent<br> Delta BC V4M 4H7 | Investor | 10000 | 0.22% | 1500 | 8500 | 0.18% |
| Katherine Elsa Bains<br> 5383 Spetifore Crescent<br> Delta BC V4M 4H7 | Investor | 10000 | 0.22% | 1500 | 8500 | 0.18% |
| Ranbir Bains<br> 5383 Spetifore Crescent<br> Delta BC V4M 4H7 | Investor | 10000 | 0.22% | 1500 | 8500 | 0.18% |
| Rajinder Singh Bhatti<br> 31596 Downes Rd <br> Abbotsford BC V4X 2M7 | Investor | 10000 | 0.22% | 1500 | 8500 | 0.18% |
| Rajinder Singh Bhatti<br> 31596 Downes Rd<br> Abbotsford BC V4X 2M7 | Investor | 10000 | 0.22% | 1500 | 8500 | 0.18% |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Navjot Gill<br> 26092 64 Ave<br> Aldergrove BC V4W 1M1 | Investor | 10000 | 0.22% | 1500 | 8500 | 0.18% |
| Kevin Ma<br> 488-1090 W Georgia St<br> Vancouver BC V6E 3V7 | Investor | 10000 | 0.22% | 1500 | 8500 | 0.18% |
| Onkar Athwal<br> 5090 Bentley Dr <br> Delta BC V4K 4J9 | Investor | 10000 | 0.22% | 1500 | 8500 | 0.18% |
| Carrie Shaw<br> 2207-1408 Strathmore Mews<br> Vancouver BC V6Z 3A9 | Investor | 10000 | 0.22% | 1500 | 8500 | 0.18% |
| Watson Global Holdings Inc<br> 115-1231 Pacific Blvd<br> Vancouver BC V6Z 0E2 | Investor | 10000 | 0.22% | 1500 | 8500 | 0.18% |
| Watson Global Holdings Inc<br> 115-1231 Pacific Blvd<br> Vancouver BC V6Z 0E2 | Investor | 8000 | 0.17% | 1200 | 6800 | 0.15% |
| Steven Davis<br> 336 9<sup>th</sup> St E<br> North Vancouver BC V7L 2B2 | Investor | 8000 | 0.17% | 1200 | 6800 | 0.15% |
| Krystal Gregory<br> 2737 13<sup>th</sup> Ave W<br> Vancouver BC V6K 2T5 | Investor | 8000 | 0.17% | 1200 | 6800 | 0.15% |
| Julie Marianne Vincenti<br> 18 Bonaly Drive Edinburgh<br> Edinburgh EH13 0EU | Investor | 8000 | 0.17% | 1200 | 6800 | 0.15% |
| Katie Vincenti<br> 18 Bonaly Drive Edinburgh<br> Edinburgh EH13 0EU | Investor | 8000 | 0.17% | 1200 | 6800 | 0.15% |
| Christine Carriou<br> 48-15168 36 Ave<br> Surrey BC V3Z 0Z6 | Investor | 6000 | 0.13% | 900 | 5100 | 0.11% |
| Zachary Goldenberg<br> 2-651 Christie St<br> Toronto ON M6G 3E8 | Investor | 6000 | 0.13% | 900 | 5100 | 0.11% |
| Kelvin Man Ho Lee<br> 3158 52<sup>nd</sup> Ave E<br> Vancouver BC V5SA 1T8 | Investor | 6000 | 0.13% | 900 | 5100 | 0.11% |
| Hsien Loong Wong<br> 6 Windsor Park Hill<br> Singapore 574198 | Investor | 5400 | 0.12% | 810 | 4590 | 0.1% |
| Jaiden Singh Bains<br> 1068 51<sup>st</sup> Ave W<br> Vancouver BC V6P 1C3 | Investor | 5000 | 0.11% | 750 | 4250 | 0.09% |
| Jaiden Singh Bains<br> 1068 51<sup>st</sup> Ave W<br> Vancouver BC V6P 1C3 | Investor | 5000 | 0.11% | 750 | 4250 | 0.09% |
| Vanisha Kaur Bains<br> 1068 51<sup>st</sup> Ave W<br> Vancouver BC V6P 1C3 | Investor | 5000 | 0.11% | 750 | 4250 | 0.09% |
| Carrie Shaw<br> 2207-1408 Strathmore Mews<br> Vancouver BC V6Z 3A9 | Investor | 5000 | 0.11% | 750 | 4250 | 0.09% |
| Alexander Tong<br> 3525 Lozells Ave<br> Burnaby BC V5A 2Y7 | Investor | 5000 | 0.11% | 750 | 4250 | 0.09% |
| Spiro Kletas<br> 303 21<sup>St</sup> Ave E<br> Vancouver BC V5V 1R2 | Investor | 4200 | 0.09% | 630 | 3570 | 0.08% |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Ralph Beyer<br> 420 Westholme Rd<br> West Vancouver BC V7V 2N1 | Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Christine Carriou<br> 48-15168 36 Ave<br> Surrey BC V3Z 0Z6 | Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Lorn Carter<br> 420 Westholme Rd<br> West Vancouver BC V7V 2N1 | Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Adnan Ali<br> 6069 Athlone St<br> Vancouver BC V6M 3A3 | Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Patricia Davis<br> 2005 Esquimalt Ave<br> West Vancouver BC V7V 1S3 | Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Susan Davis<br> 2005 Esquimalt Ave<br> West Vancouver BC V7V 1S3 | Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Christine Gould<br> 1650 29<sup>th</sup> St<br> West Vancouver BC V7V 4M8 | Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Michael Mohammad<br> Unite 302 258 – 6<sup>th</sup> Street<br> New Westminster BC V3L 3A4 | Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Nadia Ouzinba<br> 305-1315 Broughton St<br> Vancouver BC V6G 2B6 | Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Rahul Patel<br> 20 Warner Road<br> London N8 7HD | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Scott Schantz<br> 4176 Welwyn St<br> Vancouver BC V5N 3Z2 | Investor | 4000 | 0.09% | 600 | 3400 | 0.07% |
| Nadia Ouzinba<br> 305-1315 Broughton St<br> Vancouver BC V6G 2B6 | Investor | 3600 | 0.08% | 540 | 3060 | 0.07% |
| Nadia Ouzinba<br> 305-1315 Broughton St<br> Vancouver BC V6G 2B6 | Investor | 3600 | 0.08% | 540 | 3060 | 0.07% |
| Arman Athwal<br> 5090 Bentley Dr<br> Delta BC V4K 4J9 | Investor | 2500 | 0.05% | 375 | 2125 | 0.05% |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Charlotte Gill <br> 7285 150A St<br> Surrey BC V3S 7A8 | Investor | 2000 | 0.04% | 300 | 1700 | 0.04% |
| Michael Gill<br> 7285 150A St<br> Surrey BC V3S 7A8 | Investor | 2000 | 0.04% | 300 | 1700 | 0.04% |
| Ranjeet Gill<br> 7112 Berkeley St<br> Vancouver BC V5S 2J8 | Investor | 2000 | 0.04% | 300 | 1700 | 0.04% |
| Philip Landsberger<br> 1315 7<sup>th</sup> Ave W Suite 303<br> Vancouver BC V6H 1B8 | Investor | 2000 | 0.04% | 300 | 1700 | 0.04% |
| Anna Vincenti<br> 18 Bonaly Drive<br> Edinburgh EH13 0EU | Investor | 900 | 0.02% | 135 | 765 | 0.02% |
| Christine Marianne Vincenti<br> 18 Bonaly Drive<br> Edinburgh EH13 0EU | Investor | 900 | 0.02% | 135 | 765 | 0.02% |
| Julie Marianne Vincenti<br> 18 Bonaly Drive<br> Edinburgh EH13 0EU | Investor | 900 | 0.02% | 135 | 765 | 0.02% |
| Katie Christina Vincente<br> 18 Bonaly Drive<br> Edinburgh EH13 0EU | Investor | 900 | 0.02% | 135 | 765 | 0.02% |
| Kevin Stephen Vincenti<br> 18 Bonaly Drive<br> Edinburgh EH13 0EU | Investor | 900 | 0.02% | 135 | 765 | 0.02% |
| **TOTAL** |  | **4599327** | **100.0%** | **476149** | **4123178** | **89.7%** |

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(1) Under applicable SEC rules, a person is deemed to beneficially
own securities which the person has the right to acquire within 60 days through the exercise of any option or warrant or through the
conversion of a convertible security. Also under applicable SEC rules, a person is deemed to be the "beneficial owner" of
a security with regard to which the person directly or indirectly, has or shares (a) voting power, which includes the power to vote or
direct the voting of the security, or (b) investment power, which includes the power to dispose, or direct the disposition, of the security,
in each case, irrespective of the person's economic interest in the security. Each listed selling stockholder has the sole investment
and voting power with respect to all shares of common stock shown as beneficially owned by such selling stockholder, except as otherwise
indicated in these footnotes.

(2) We do not know when or in what amounts the Selling Stockholders
may offer shares for sale. The Selling Stockholders may not sell any or all of the shares offered by this prospectus. Because the Selling
Stockholders may offer all or some of the shares pursuant to this offering and because there are currently no agreements, arrangements,
or undertakings with respect to the sale of any of the shares, we cannot estimate the number of shares that will be held by the Selling
Stockholders after completion of this offering. However, for illustrative purposes of this table, we have assumed that, after completion
of this offering, none of the shares covered by this prospectus will be held by the Selling Stockholders.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements about us and our industry. In addition, from time to time we or our representatives have made or will make forward-looking statements. The forward-looking statements involve substantial risks and uncertainties. All statements, other than statements related to present facts or current conditions or of historical facts, contained in this prospectus, including statements regarding our strategy, future operations, future financial position, future revenues, and projected costs, prospects, plans and objectives of management, research and development plans, the anticipated timing, costs, design and conduct of our ongoing and planned clinical trials and preclinical studies for EX937 and any future product candidates, the timing and likelihood of regulatory filings and approvals for EX937 and any future product candidates, our ability to commercialize EX937 and any future product candidates, if approved, the pricing and reimbursement of EX937 and any future product candidates, if approved, the potential to develop future product candidates, the potential benefits of strategic collaborations and potential to enter into any future strategic arrangements, the timing and likelihood of success, plans and objectives of management for future operations, and future results of anticipated product development efforts, are forward-looking statements. Accordingly, these statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in them. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "ongoing," "plan," "potential," "predict," "project," "should," "target," "will," "would," or the negative of these terms or other comparable terminology are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements are qualified in their entirety by reference to the factors discussed under the heading "Risk Factors" in this prospectus or in any related free writing prospectus.

You should assume that the information appearing in this prospectus or any related free writing prospectus is accurate as of its date only. Because the risk factors referred to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements made by us or on our behalf, you should not place undue reliance on any forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made. New factors emerge from time to time, and it is not possible for us to predict which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All written or oral forward-looking statements attributable to us or any person acting on our behalf made after the date of this prospectus are expressly qualified in their entirety by the risk factors and cautionary statements contained in this prospectus. Unless legally required, we do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date of this prospectus or to reflect the occurrence of unanticipated events.

In addition, statements that "we believe" and similarly qualified statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and you are cautioned not to rely unduly upon them.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following Management's Discussion and Analysis of Financial Condition and Results of Operations is intended to provide information necessary to understand our audited consolidated financial statements for the fiscal years ended December 31, 2024 and 2023, as well as our unaudited condensed consolidated financial statements for the six months ended June 30, 2025 and 2024. This discussion highlights certain other information which, in the opinion of management, will enhance a reader's understanding of our financial condition, changes in financial condition and results of operations. In particular, the discussion is intended to provide an analysis of significant trends and material changes in our financial position and the operating results of our business during the year ended December 31, 2024, as compared to the fiscal year ended December 31, 2023, and for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This discussion should be read in conjunction with our consolidated financial statements for the fiscal years ended December 31, 2024 and 2023, our unaudited condensed consolidated financial statements for the six months ended June 30, 2025 and 2024, and related notes included elsewhere in this prospectus. These historical financial statements may not be indicative of our future performance. This Management's Discussion and Analysis of Financial Condition and Results of Operations contains numerous forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risks described throughout this filing, particularly in "Item 1A. Risk Factors."*

*Throughout this report, the terms "our," "we," "us," the "Company" or "Exxel Pharma Inc." refer to Exxel Pharma U.S., Exxel Pharma Canada and Exxel Pharma Australia, collectively.*

**Overview**

We are a biopharmaceutical company that was incorporated in the state of Colorado on June 30, 2018, as Aspire BioScience, Inc., and changed our name to Exxel Pharma Inc. on March 25, 2025. Exxel Pharma U.S. was originally formed as a wholly-owned subsidiary of Exxel Pharma Inc., an entity incorporated in British Columbia, Canada on June 20, 2017 ("Exxel Pharma Canada"). Exxel Pharma U.S. also operates Exxel Pharma Australia Pty Ltd., a wholly-owned Australian subsidiary under Exxel Pharma Canada, that was incorporated on January 12, 2023 ("Exxel Pharma Australia").

Effective as of March 19, 2025, Exxel Pharma U.S., Exxel Pharma Canada, and each of the shareholders of Exxel Pharma Canada entered into a Securities Exchange Agreement (the "Exchange Agreement") whereby the shareholders of Exxel Pharma Canada, constituting 100% of the registered and beneficial owners of the capital stock of Exxel Pharma Canada, agreed to transfer to Exxel Pharma U.S., 100% of the right, title and interest in and to all of the shareholders' shares, options and warrants in Exxel Pharma Canada (collectively, the "Securities") in exchange for equivalent Securities of Exxel Pharma U.S.

The share exchange transaction between Exxel Pharma U.S., Exxel Pharma Canada and the shareholders of Exxel Pharma Canada was completed on April 1, 2025, based upon a 1-for-10 exchange ratio. Accordingly, in the exchange transaction, all of the persons who had been shareholders of Exxel Pharma Canada exchanged their Securities in that company on a 1-for-10 basis for equivalent Securities of Exxel Pharma U.S. The effect of completion of the share exchange transaction was to invert the relationship between Exxel Pharma U.S. and Exxel Pharma Canada, such that Exxel Pharma U.S., which had previously been the wholly-owned subsidiary of Exxel Pharma Canada, became the parent company, and Exxel Pharma Canada became the wholly-owned subsidiary of Exxel Pharma U.S.

Our principal executive offices are located at 12635 E. Montview Blvd, Suite 134, Aurora, Colorado 80045. Our focus is on developing innovative therapeutics for neuronal hypersensitivity disorders, and our lead program, EX937, is a novel, orally administered, proprietary small molecule designed to specifically and peripherally inhibit the fatty acid amide hydrolase (FAAH) enzyme. In addition to EX937, we are advancing our ARN compounds, a second program targeting social anxiety disorder and autism spectrum disorder.

**Impact of Inflation**

We have recently experienced higher costs across our business due to inflation, including increased expenses related to employee compensation and outside services. While these cost increases have had some impact, they have not been material to our overall financial performance. Although we anticipate a decline in the rate of inflation in 2025, we expect inflationary pressures to continue negatively affecting our business throughout the year. It remains uncertain whether we will be able to fully offset these impacts in the near term through operational efficiencies or pricing adjustments.

 

*Results of Operations*

**Six Months Ended June 30, 2025 and 2024**

Our financial results for the six months ended June 30, 2025 and 2024 are summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended <br> June 30,** | **For the Six Months Ended <br> June 30,** | | |
|  | **2025** | **2024** |<br>**Change** |<br>**% Change** |
| Revenue | $— | $175000 | $(175000) | (100.00)% |
| Operating expenses: |  |  |  |  |
| Research and development | 14122 | 113127 | (99005) | (87.52)% |
| General and administrative | 447633 | 206621 | 241012 | 116.64% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 461755 | 319748 | 142007 | 44.41% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (461755) | (144748) | (317007) | 219.01% |
| Other (expenses) income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest (expense) income | (134350) | 96 | (134446) | (140047.92)% |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | (79000) |  | (79000) | 100.00% |
| &nbsp;&nbsp;&nbsp;Gain (loss) on foreign currency | 11137 | (28702) | 39839 | (138.80)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expenses, net | (202213) | (28606) | (173607) | 606.89% |
| Loss before income taxes | (663968) | (173354) | (490614) | 283.01% |
| Income tax benefit |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(663968) | $(173354) | $(490614) | 283.01% |

---

 

*Revenue*

Licensing revenue is recognized monthly and consists of extension fees associated with licensed intellectual property, in accordance with the terms of the licensing arrangement. For the six months ended June 30, 2025, revenue decreased by approximately $175,000, or 100%, compared to the prior year period, due to the termination of licensing agreement at the end of the prior fiscal year.

*Research and Development*

Research and development expenses for the six months ended June 30, 2025 and 2024 relate to activities primarily focused on the development of EX937.

Research and development expenses decreased by approximately $99,000, or 88%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease was primarily due to decreased expenses in our Australian subsidiary in the current year versus the prior year.

We expect research and development expenses to increase in the second half of fiscal year 2025 compared to fiscal year 2024, as we prepare for our first in-human dosing in the fourth quarter of 2025.

*General and Administrative*

General and administrative expenses increased by approximately $240,000, or 117%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase was primarily driven by (i) an increase in consulting fees of approximately $80,000, (ii) an increase in organizational costs related to our Exxel Pharma Canada subsidiary of approximately $75,000 and (iii) an increase in professional fees of approximately $80,000.

We expect general and administrative expenses to increase in fiscal year 2025 as compared to fiscal year 2024 due to increased accounting, legal and professional expenses that we expect to be incurred related to our upcoming draft registration statement.

*Other Expenses, Net*

For the six months ended June 30, 2025, other expense, net increased by approximately $174,000, or 607%, as compared to the six months ended June 30, 2024. The increase was primarily driven by (i) an approximate $135,000 increase in interest expense related to the convertible debenture we entered into during 2024, (ii) an increase in the fair value of a derivative liability of $79,000, offset by (iii) a gain on foreign currency transaction from the prior period of approximately $40,000.

**Years Ended December 31, 2024 and 2023**

Our financial results for the years ended December 31, 2024 and 2023 are summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Years Ended <br> December 31,** | **For the Years Ended <br> December 31,** | | |
|  | **2024** | **2023** |<br>**Change** |<br>**% Change** |
| Revenue | $225000 | $100000 | $125000 | 125.00% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 89178 | 98504 | (9326) | (9.47)% |
| &nbsp;&nbsp;&nbsp;General and administrative | 511564 | 422115 | 89449 | 21.19% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 600742 | 520619 | 80123 | 15.39% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (375742) | (420619) | 44877 | (10.67)% |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (31079) |  | (31079) | 100.00% |
| &nbsp;&nbsp;&nbsp;Loss on foreign currency | (2350) | (9479) | 7129 | (75.21)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (33429) | (9479) | (23950) | 252.66% |
| Loss before income taxes | (409171) | (430098) | 20927 | (4.87)% |
| Income tax benefit |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(409171) | $(430098) | $20927 | (4.87)% |

---

 

*Revenue*

Licensing revenue is recognized monthly and consists of extension fees associated with licensed intellectual property, in accordance with the terms of the licensing arrangement. For the year ended December 31, 2024, revenue increased by approximately $125,000, or 125%, compared to the prior year period, primarily due to higher option fees under contractual agreements during the year.

The agreement governing this revenue was terminated in 2024, and as a result, we do not anticipate any further revenue from this arrangement going forward.

*Research and Development*

Research and development expenses for the years ended December 31, 2024 and 2023 relates to activities primarily focused on the development of EX937.

Research and development expenses decreased by approximately $9,300, or 10%, for the year ended December 31, 2024 compared to the year ended December 31, 2023. The decrease was primarily due to an increased R&D tax incentive credit in the current year versus the prior year.

We expect research and development expenses to increase in fiscal year 2025 as compared to fiscal year 2024, as we prepare for our first in-human dosing in the fourth quarter of 2025.

*General and Administrative*

General and administrative expenses increased by approximately $89,000, or 21%, for the year ended December 31, 2024 compared to the year ended December 31, 2023. The increase was primarily driven by (i) an increase in stock compensation expenses related to consultants of approximately $50,000 and (ii) an increase in licensing fees related to our Exxel Pharma Canada subsidiary of approximately $40,000.

We expect general and administrative expenses to increase in fiscal year 2025 as compared to fiscal year 2024 due to increased accounting, legal and professional expenses that we expect to be incurred related to our upcoming draft registration statement.

*Other Income (Expense), Net*

For the year ended December 31, 2024, other expense, net increased by approximately $24,000, or 253%, as compared to the year ended December 31, 2023. The increase was primarily driven by an approximate $31,000 increase in interest expense related to the convertible debenture we entered into during 2024.

**Working Capital**

---

| | | |
|:---|:---|:---|
|  | **As of <br> June 30,<br> 2025** | **As of <br> December 31,<br> 2024** |
| Current assets | $115793 | $506279 |
| Current liabilities | 1937014 | 1652758 |
| Working capital deficiency | $(1821221) | $(1146479) |

---

The working capital deficiency increased by $0.7 million between December 31, 2024 and June 30, 2025, primarily driven by cash outflows to fund operations, a higher fair value of the derivative liability, and an increase in the net carrying amount of the convertible debenture resulting from the amortization of debt discounts during the six months ended June 30, 2025.

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2023** |
| Current assets | $506279 | $300002 |
| Current liabilities | 1652758 | 1156490 |
| Working capital deficiency | $(1146479) | $(856488) |

---

Working capital deficiency increased by $0.3 million between December 31, 2024 and December 31, 2023, primarily due to cash used to fund operations and an increase in current debt for the year ended December 31, 2024.

**Liquidity and Capital Resources**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| Net loss | $(663968) | $(173354) |
| Net cash used in operating activities | $(347344) | $(161655) |
| Effect of foreign currency translation | (539) | (10183) |
| Net change in cash | $(347883) | $(171838) |

---

Cash decreased by approximately $0.3 million for the six months ended June 30, 2025, compared to a decrease of $0.2 million during the same period in 2024. The larger decrease was primarily driven by our net loss in the current quarter and cash used to fund operations.

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2024** | **2023** |
| Net loss | $(409171) | $(430098) |
| Net cash used in operating activities | $(360513) | $(399758) |
| Net cash provided by financing activities | 574797 |  |
| Effect of foreign currency translation | (9217) | (13218) |
| Net change in cash | $205067 | $(412976) |

---

Cash increased by approximately $0.2 million for the year ended December 31, 2024, compared to a decrease of approximately $0.4 million for the year ended December 31, 2023, which was primarily attributable to cash received to fund operations from the issuance of a convertible debenture in November 2024.

*Liquidity & Capital Resources Outlook*

As of December 31, 2024, we had approximately $0.4 million in operating bank accounts, with a working capital deficit of approximately $1.1 million, and as of June 30, 2025, we had approximately $0.1 million in operating bank accounts, with a working capital deficit of approximately $1.8 million. We are dependent on obtaining additional working capital funding from the sale of equity and/or debt securities in order to continue to execute our development plans and continue operations. Subsequent to the consummation of the Initial Public Offering, our liquidity was and continues to be satisfied through the net proceeds from the Initial Public Offering, the convertible debenture we consummated in November 2024 and the receipt of cash upon the prior exercise of our outstanding warrants. Based on the foregoing, management believes that we will not have sufficient working capital to meet our needs through twelve months from the issuance date of the financial statements included in this annual report, without raising additional capital.

Our primary use of cash is to fund operating expenses, primarily general and administrative and research and development expenditures. Cash used to fund operating expenses is impacted by the timing of when we pay these expenses, as reflected in the change in our outstanding accounts payable, accrued expenses and prepaid expenses.

Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing. As of December 31, 2024, we had $444,196 in our operating bank account and a working capital deficiency of $1,146,479; as of June 30, 2025, we had $96,313 in our operating bank account and a working capital deficiency of $1,821,221. To date, we have been funding operations primarily through capital raises, and our ability to continue as a going concern depends on our ability to comply with the covenants in our existing convertible debenture agreement and successfully complete a qualified financing event or initial public offering ("IPO"). Despite our positive outlook for future capital raises and our current operations, we estimate that we will require approximately $3.8 million to fund our operating needs, anticipated capital investments and debt service obligations over the next twelve months. If we are unable to secure additional financing, we may need to reduce expenditures, delay development activities or pursue alternative funding strategies to sustain operations.

Because of the numerous risks and uncertainties associated with research, development and commercialization of pharmaceutical products, we are unable to estimate the exact amount of our operating capital requirements. Our future funding requirements will depend on many factors, including, but not limited to:

● the costs associated with advancing preclinical studies and clinical trials for product candidates;

● expenses related to obtaining approvals from regulatory agencies like the FDA or EMA;

● the funds needed for production and facility development for commercialization.;

● the costs of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual property rights and defending intellectual property-related claims;

● Increases in day-to-day running costs, including employee salaries, facility upkeep, and administrative needs;

● expenses needed to attract and retain skilled personnel;

● the costs required to scale up our clinical, regulatory and manufacturing capabilities;

● the costs associated with potential joint ventures or licensing agreements and associated obligations; and

● revenue, if any, received from commercial sales of our product candidates, should any of our product candidates receive marketing approval.

We will need significant additional funds to meet operational needs and capital requirements for clinical trials, other research and development expenditures, and business development activities. We currently have no credit facility or committed sources of capital. Because of the numerous risks and uncertainties associated with the development and commercialization of our product candidates, we are unable to estimate the amounts of increased capital outlays and operating expenditures associated with our current and anticipated clinical studies.

*Off-Balance Sheet Arrangements*

We did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K promulgated under the Exchange Act.

*Critical Accounting Estimates*

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events.

We believe that the following critical accounting estimates are particularly subject to management's judgment and could materially affect our financial condition and results of operations:

● The fair value of our derivative liability is determined using the Differential Valuation Approach, comparing the debenture's value with and without the redemption feature using a probability weighted analysis. The probability of outcome is a significant judgment in determining the fair value; and

● Assumptions used in the Black-Scholes pricing model for valuation of stock option awards, such as expected volatility, risk-free interest rate, expected term and expected dividends.

Management also regularly makes estimates related to the recoverability of long-lived assets and income taxes. The Company bases its estimates on historical experience and on various assumptions that are believed to be reasonable, the results of which form the basis for the amounts recorded in the consolidated financial statements. As appropriate, the Company obtains reports from third-party valuation experts to inform and support estimates related to fair value measurements.

For additional information on critical accounting estimates, see Note 2 to the consolidated Financial Statements, "Basis of Presentation and Summary of Significant Accounting Policies."

*New Accounting Standards*

For discussion of new accounting standards, see Note 2 to the consolidated Financial Statements, "Basis of Presentation and Summary of Significant Accounting Policies."

**BUSINESS**

**Overview**

**Our Lead Product Candidate**

***EX937, a highly selective, peripherally restricted FAAH inhibitor.***

EX937 is a peripherally restricted inhibitor of the intracellular serine hydrolase, fatty acid amide hydrolase (FAAH). FAAH catalyzes the hydrolysis of endogenous lipid amides such as anandamide, an endogenous agonist of cannabinoid receptors, and may serve therefore as a gateway in the control of signal transmission, along afferent sensory neurons in airway tissues, to the central nervous system (CNS).

EX937 has been shown to potently and selectively inhibit FAAH in a manner restricted to peripheral tissues (that is, tissues other than brain and spinal cord). Moreover, EX937 has been shown to suppress sensory neuron firing and reduce coughing in the well-established and industry-appropriate guinea pig model of capsaicin-induced cough. These studies also demonstrated that EX937 acts by elevating endogenous anandamide levels and consequently activating cannabinoid receptors in sensory neurons of the upper airways (see Foot Note 2).

EX937 is initially being formulated as a capsule to be administered orally at a dose and dosing interval to be determined by careful assessment of non-clinical toxicology and pharmacokinetic (PK) data and initial Phase 1 human studies consistent with FDA's Guidance's for Industry for protocols [as codified in 21CFR312,23(a)(6)] and FDA/ICH's E17 General Principals for Planning and Design of Multiregional Clinical Trials (MRCTs) and ICH E6 Good Clinical Practice (GCP) designed to elucidate a safe and tolerable dosing range as well as initial human PK and pharmacodynamic (PD; how drugs impact the human body on a biochemical and physiological level) properties of EX937. The initial study will be a combined two-part sequential escalating cohort design that includes; (Part 1) a First-in-Human single sentinel ascending dose cohort study (SAD) followed by Part 2, a multiple ascending dose (MAD) cohort study where the safety, tolerability, PK and PD outcome data will be obtained. Part 1 will also include a cohort of fed subjects to obtain the effect of food on the PK and PD on orally administered EX937. Part 2 will include a cohort of normal volunteer subjects to probe the utility of the inhaled capsaicin cough challenge model to inform the use of this model for the next planned Proof-of-Concept study

Exxel's decision is to initially file their nonclinical documents, Investigator Brochure, and First-in-Human, Phase 1a/b clinical protocol with the Competent Authority in Australia, the Therapeutic Goods Administration (TGA) as the monetary savings coupled with incentives of selecting this Multiregional Clinical Trials pathway will be substantial compared to the high costs associated with an IND filing with the FDA. The main factors for this decision are the high costs of initiating these programs under an Initial New Drug Application (IND) filing in the USA. The TGA regulations for early drug development are consistent with FDA/ICH Guidance for Industry, E17 and are generally viewed as acceptable for Phase 1a/b data by the FDA. Therefore, Exxel foresees no regulatory impediment for adopting this approach as Phase 1a/b data produced in Australia can also be utilized to support a future IND filing with the FDA.

**The Regulatory Landscape (Australia's TGA and United States FDA)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***A.*** ***Australia:***

The Therapeutic Goods Administration (TGA) is Australia's regulatory authority responsible for ensuring the safety, quality, and effectiveness of medicines and other therapeutic goods. The TGA employs a risk-based approach to assess regulatory applications for market authorization These assessments include a rigorous scientific evaluation of all submitted data. Registered medicines include prescription medications and some OTC drugs undergo comprehensive scientific assessment of quality, safety, and efficacy by the TGA.

There are 3 regulatory pathways for assessing prescription medicines.

&nbsp;&nbsp;&nbsp;&nbsp;1. The
Standard pathway: which involves a comprehensive review of all submitted data with an established statutory timeframe of 220-255
working days.

&nbsp;&nbsp;&nbsp;&nbsp;2. Priority
Review pathway: An expeditated pathway with a target timeframe of 150 working days, reserved for vital and life-saving prescription
medicines with a complete data dossier available.

&nbsp;&nbsp;&nbsp;&nbsp;3. Provisional
Approval pathway: Temporary registration based on robust preliminary clinical data, targeting medicines with the potential for substantial
benefit to Australian patients. This pathway enables rolling submissions of additional information, such as clinical data, while the
TGA evaluates the application.

Good Manufacturing Practice (GMP): A TGA requisite applicable to all pathways require evidence that medicines are manufactured according to GMP standards, ensuring high quality.

**Key aspects of the drug development and approval process**

For Marketing Approval evidence regarding safety and effectiveness in the indication population for which the drug is intended is submitted from all Phase 1, II, and III clinical trials will be assembled in a prescribed data dossier format for review. There are some drugs that qualify for a Provisional Review Process where the TGA will grant review of data on a rolling basis to expedite total review Phase III trial results are particularly important for the TGA's decision-making process regarding new medicine approval.

**Pharmaceutical Benefits Scheme (PBS):** 

The TGA continues to monitor approved medicines on the market through activities like risk management plans, adverse event reporting, and auditing manufacturers.

***Reforms and initiatives****:* 

The TGA continuously implements reforms to streamline processes and improve access to innovative therapies, including initiatives like rolling submissions and expedited review pathways for rare diseases.

***International collaboration****:* 

Australia's TGA actively engages in international regulatory alignment and collaboration, including participation in innovative initiatives. An example is a program endorsed by the National Institutes of Health entitled Access Consortium and Project Orbis. This collaboration should lead to faster approval times by leveraging scientific assessments from comparable regulatory agencies/competent authorities such as the FDA or EMA, thus providing earlier access to new, and perhaps, life-saving medicines.

TGA's role in new drug development in Australia encompasses rigorous pre-market assessment, ongoing post-market monitoring and surveillance, and continuous efforts to improve efficiency and facilitate timely access to safe and effective medicines for the Australian population. Sponsor companies with comparable competent authorities such as the USA's FDA and EMA, frequently take advantage of the financial incentives that the Australian government provides to develop new chemical entities.

***B, Food and Drug Administration (FDA)***

The <u>FDA (Food and Drug Administration)</u> is the primary regulatory authority in the United States responsible for ensuring the safety, efficacy, and security of drugs. After a Sponsor is assigned to a pertinent therapeutic area and Division within the FDA, a carefully orchestrated stepwise process of interaction between the FDA and Sponsor will begin. An initial step, which is recommended but not mandatory, is a Pre-IND informative meeting between the Sponsor and FDA. This meeting allows the Sponsor to receive early guidance from their assigned Division on the suitability of their clinical development plan, their non-clinical program and soundness of their manufacturing processes.

Thereafter, the Sponsor can choose to proceed with an official filing of an Investigational New Drug Application (IND) which will include detailed reporting of all data relative to the chemistry, manufacturing, and controls (CMC) of drug product, all requisite nonclinical in-vitro and in-vivo toxicology, toxicokinetic, pharmacokinetic, and clastogenic characterization. In addition, the initial Phase 1 protocol These initial studies are performed as codified under 21CFR312 (IND Applications) which outlines the necessary documentation for initiation clinical trials in the United States. The applicant will then receive an IND number for future filings, The designated Division reviewing team will then have 30 days to review this information. If no response is received by the Sponsor within the stated 30-day review period, the sponsor may initiate the study.

In general, the total amount of time that elapses for a new drug under development is usually 7-10 years. This timing is dependent on how efficiently the Sponsor may move through the different stages of clinical development as well as what track the subject drug qualifies for as it progresses through Phases 1, II, and III.

Phase 1 is when the characteristics of safety, toleration and pharmacokinetics and dosing characteristics are explored in small numbers of healthy normal volunteers except for subjects diagnosed with cancer. Phase II is when proof of concept is tested in the population for which the drug was intended and, in addition to safety, effectiveness of the drug is tested. Protocol designs at this stage can become complex and include adaptive approaches. The number of patients exposed to the study drug will be significantly greater than in Phase 1 and the time of exposure to study drug, longer. There may be 3 or more Phase II trials done which will test various outcomes parameters. Finally, when the amount of data collected is of sufficient size and results of this data, as determined by the FDA in a pre-Phase III meeting, support larger and longer exposure of the study drug for the proposed indication, Phase III studies (usually 2) will be approved by the FDA to commence. When all study data are uploaded to the electronic New Drug Application (NDA) format and the eNDA is submitted, the FDA will have 60 days to approve the content and structure package and for that point-on have 6 Months to render a decision to approve the NDA or issue a Complete Response (non-approval) . Expediated Review designation, e.g., Breakthrough Therapy and significantly shorten this timing cycle.

***EX937 Regulatory Strategy***

While exploring the possible regulatory strategies of using a multinational early drug development approach, Exxel, on February 1, 2019, sent a Pre-IND meeting request (SN0000) to the Division of Anesthesia, Analgesia, and Addiction Products (DAAAP) to engage in a general discussion of our EX937 compound for an analgesic indication. On February 08, 2019, the subject meeting was granted for May 1, 2019. The face-to-face meeting was informative and positive providing advice for possible inclusion of additional exploratory outcomes from the proposed Phase 1 protocol synopsis. Exxel re-evaluated its' indications and made a business-driven decision to change its first early development program to focus on Refractory Chronic Cough (RCC) and, owed to favorable costing, engaged a TGA experienced expert CRO regarding the advantages and transferability of data by doing early clinical development in Australia.

Exxel plans to execute this study in Australia for two reasons. Their decentralized regulatory system, where local ethics committees review and approve trial protocols which makes the early clinical development very effective. Secondly, compelling financial incentives exist for early clinical development in Australia. At the same time, the trial data we expect to generate in these studies would enable us to run future clinical trials in other countries including in Europe and the USA. Exxel will utilize an Australia based, experienced and fully vetted Contract Research Organization (CRO) to perform its' initial early Phase 1a/b study in compliance with the rules and regulations set forth by the Therapeutic Goods Administration (TGA).. The procedure for conducting First-in-Human Phase 1 studies will be under the auspices of the Human Research Ethics Committee (HREC) appointed and certified by the TGA. HRECs operates under strict guidelines set forth by AU's National Statement on Ethical Conduct in Human Research. Timing for this submission is dependent upon Exxel's financial position.

The envisaged initial EX937 Phase 1a/b protocol and supporting documents (Investigator Brochure, Protocol, Nonclinical package, and initial requisite CMC information) in compliance with US 21CFR312 will be submitted for HREC review and approval in early 2026 and Exxel expects to initiate its' program thereafter.

***Nonclinical Studies***

EX937 has been evaluated in a battery of nonclinical pharmacology, safety pharmacology, PK, and toxicology studies, in compliance with GLP standards and typical designs expected by regulatory authorities such as the FDA. Experiments aimed at understanding the mechanism through which EX937 is prevented from accessing FAAH in the CNS have shown that the compound serves as substrate for two adenosine triphosphate (ATP)-binding cassette (ABC) transporters — breast cancer resistance protein (ABCG2 in humans, Abcg2 in rodents) and P-glycoprotein (ABCB1 in humans, Abcb1 in rodents). In other words, EX937 is actively removed from the CNS by two pumps called ABCG2 and P-glycoprotein (in humans). This conclusion is based on three lines of evidence obtained in mouse models. First, treatment with the selective ABCG2 inhibitor Ko-143 (10 mg/kg, intraperitoneal, i.p.) allows EX937 (25 mg/kg, i.p.) to access the brain and inhibit FAAH in this organ<sup>4</sup>. A similar effect is exerted by 2,6-dichloro-4-nitrophenol<sup>5</sup>, which blocks the sulfate conjugation required for breast cancer resistance protein (BCRP)-mediated transport of xenobiotics<sup>6</sup>. Second, in vivo studies in mice have shown that EX937 (25 mg/kg) enters the CNS of Abcg2-deficient and double Abcb1-Abcg2-deficient mice following i.p administration, whereas the same dose of drug remains restricted to peripheral tissues in wild-type mice<sup>7</sup>. Finally, in vitro studies have shown that EX937 is a substrate for both mouse and human orthologues of ABCG2 and ABCB1<sup>7</sup>. The results support the notion that EX937 is actively extruded from the CNS by the cooperative action of ABCG2 and ABCB1 transporters in the blood-brain barrier (BBB). A dose-exploration study in mice showed that the median effective dose (ED50) of EX937 for FAAH inhibition in the brain (40 mg-kg, subcutaneous, [s.c.]) was 200 times higher than the ED50 for FAAH inhibition in liver (0.2 mg/kg, s.c.)<sup>4</sup>. Moreover, after systemic administration, EX937 (1 mg/kg, i.p.) distributed rapidly in blood and liver, but remained undetectable in brain tissue. As seen with other O-arylcarbamates, which are known to interact with FAAH through a covalent mechanism<sup>6</sup>, EX937 inhibited peripheral FAAH activity in vivo both rapidly and lastingly.

Cannabinoid receptor agonists stimulate feeding through both central and peripheral mechanisms<sup>9</sup>. In contrast, as previously shown for the global CNS-penetrant FAAH inhibitor URB597<sup>10</sup>, administration of EX937 (1 mg/kg-1, i.p. [intraperitoneal], 30 minutes before dark) did not alter daily food intake, feeding pattern (latency to feed, meal frequency, satiety ratio) or spontaneous locomotor activity in mice<sup>4</sup>.

To date, dose-range finding studies have been conducted in two mammalian species (Sprague-Dawley rats and Beagle dogs). Both studies were conducted to determine the maximum tolerated dose (MTD) of EX937. The studies included a dose escalation design via oral capsules in dogs and by gavage in rats (Phase A), and subsequently a repeat-dose toxicity phase following once daily oral administration with capsules for 14 consecutive days (Phase B). In addition, the toxicokinetic (TK) profile of URB937 in rats was characterized in Phase B.

The potential toxicity, TK, and MTD of EX937 were evaluated in 4-week oral toxicity studies conducted in Beagle dogs and Sprague-Dawley rats. In Sprague-Dawley rats, doses of 10, 30, and 100 mg/kg/day were administered once daily for 28 consecutive days via oral gavage. The results demonstrated that when dose level increased from 10 to 30 mg/kg/day, the Cmax (maximum concentration) and AUClast (Area Under the Curver last) values of EX937 generally increased with doses in a less than dose-proportional manner on both Days 1 and 28; when dose level increased from 30 to 100 mg/kg/day, the Cmax and AUClast values did not increase with dose on either Days 1 or 28. The no-observed-adverse-effect-level (NOAEL) was 100 mg/kg/day in this study, which corresponds to EX937 plasma mean AUClast of 8,264 hr\*ng/mL and 6,647 hr\*ng/mL on Day 28 for male and female animals, respectively.

In Beagle dogs, doses of 30, 100, and 300 mg/kg/day were administered once daily for 28 consecutive days. The results demonstrated that treatment with EX937 at doses of 30, 100, and 300 mg/kg/day via capsule administration daily for 28 consecutive days was well tolerated. The NOAEL was 300 mg/kg/day in this study, which corresponds to EX937 plasma mean AUClast of 57.1 ng.hr/mL and 51.1 ng.hr/mL on Day 28 for male and female animals, respectively.

The potential mutagenicity of EX937 was evaluated using the bacterial reverse mutation test (Ames' test). Salmonella typhimurium strains TA98, TA100, TA1535 and TA1537, and Escherichia coli strain WP2 uvrA were incubated with the drug at concentrations ranging from 15 to 5000 μg/plate in the presence and absence of S9 using the plate incorporation method of the bacterial mutation test. Bacteria were incubated with standard positive controls, and the response of the various bacterial strains to these agents confirmed the sensitivity of the test system and the activity of the S9 mix. No substantial increases in revertant colonies were obtained with any of the tested strains, following exposure to EX937 at any concentration, in either the presence or the absence of S9 mix. Therefore, EX973 did not show any evidence of mutagenic activity in the Ames test.

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|:---|:---|
| 4.0 | Clapper JR, Moreno-Sanz G, Russo R, et al. Anandamide suppresses pain initiation through a peripheral endocannabinoid mechanism. Nat Neurosci. 2010;13(10):1265-70. |
| 5.0 | Mulder GJ, Scholtens E. Phenol sulphotransferase and uridine diphosphate glucuronyltransferase from rat liver in vivo and vitro. 2,6-Dichloro-4-nitrophenol as selective inhibitor of sulphation. Biochem J. 1977;165 (3):553-559. |
| 6.0 | Imai Y, Asada S, Tsukahara S, et al. Breast cancer resistance protein exports sulfated estrogens but not free estrogens. Mol Pharmacol. 2003;64 (3):610-618. |
| 7.0 | Moreno-Sanz G, Barrera B, Guijarro A, et al. The ABC membrane transporter ABCG2 prevents access of FAAH inhibitor URB937 to the central nervous system. Pharmacol Res 2011;64(4):359-363. |
|  | Moreno-Sanz G, Barrere B, Armirotto A, et al. Structural determinants of peripheral O-arylcarbamate FAAH inhibitors render them dual substrates for abcb1 and abcg2 and restrict their access to the brain. Pharmacol Res 2014;0:87-93. |
| 8.0 | Kathuria S, Gaetani S, Fegley D, et al. Modulation of anxiety through blockade of anandamide hydrolysis. Nat Med. 2003;9 (1):76-81. |
|  | Alexander JP, Cravatt BF. Mechanism of carbamate inactivation of FAAH: implications for the design of covalent inhibitors and in vivo functional probes for enzymes. Chem Biol. 2005; 12 (11):1179-1187. |
| 9.0 | Kunos G, Osei-Hyiaman D, Batkai S, et al. Should peripheral CB(1) cannabinoid receptors be selectively targeted for therapeutic gain? Trends Pharmacol Sci. 2009;30 (1):1-7. |
| 10.0 | Piomelli D, Tarzia G, Duranti A, et al. Pharmacological profile of the selective FAAH inhibitor KDS-4103 (URB597). CNS Drug Rev. 2006;12 (1):21-38. |

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The potential clastogenicity of EX937 was evaluated using an in vitro mammalian cell micronucleus assay with human peripheral blood lymphocytes. Cells were treated for 4 and 24 hours in the non-activated system and for 4 hours in the absence of S9-activated system. Based on preliminary toxicity assays, concentrations employed were 2.5 to 15 μg/mL for the 24-hour non-activated system, and 5 to 100 μg/mL in the activated and non-activated system 4-hour exposure groups. Cells were harvested 24 hours after treatment. From each culture, 1000 binucleated cells were examined and scored for the presence of micronuclei. The frequency of micronucleated cells in the treatment groups was not statistically significantly increased compared to the vehicle treated cells. Therefore, EX937 was considered to be negative for clastogenicity in this assay.

EX937 was evaluated for clastogenic activity by detecting micronuclei in polychromatic erythrocyte cells (PCEs) in male rat bone marrow using Flow Cytometry Analysis. Following a preliminary dose range-finding assay, the doses in the definitive assay were 500, 1000 and 2000 mg/kg administered orally for two days. The positive control animals were also dosed orally. Peripheral blood samples were collected 48 hours after the last dose. The frequency of micronucleated reticulocytes were analyzed by flow cytometry. In the bone marrow analysis, there was an increase in the number of micronucleated PCEs, which was not statistically significant. However, in the flow cytometry analysis, a statistically significant increase in PCEs was noted at 20 mg/kg. The positive control demonstrated the expected positive response. Therefore, EX937 was considered to be negative in the in vivo rat micronucleus assay.

The TK studies with rats that used doses from 10 to 1,000 mg/kg/day showed high plasma concentrations with the dosing vehicle that contained 15% PEG300, 15% Tween 80, and 70% saline (v/v/v). The absorption of EX937 was rapid in rats, but appeared to be saturated above 30 mg/kg/day. The TK studies with dogs that used doses from 30 to 1,000 mg/kg/day as powder in capsules showed low plasma concentrations. The Cmax and AUC0-t values for dogs either showed no increases or less than dose-proportional increases as the dose level increased. For rats, there was a slight accumulation with repeat dosing, but for dogs, the accumulation ratios were variable, with no clear indication of any increase with repeat dosing. There was no consistent gender difference for either rats or dogs. The in vitro absorption study with P-gp in human intestinal cells indicated that the apical to basal absorption of EX937 was either due to passive diffusion or to transport by another transporter. For the basal to apical transfer, the results indicated that efflux of EX937 may be due to both active transport by P-gp and passive diffusion.

Protein binding was 97.7% for rat plasma and 96.8% for dog plasma. Ten metabolites of EX937 were produced by rat, dog, rabbit or human hepatocytes. Five metabolites were produced by human hepatocytes, and three of these were present with rat, dog, and rabbit hepatocytes. All metabolites except two produced by human hepatocytes were present with rat, dog, and rabbit hepatocytes. Of the two exceptions, one was present with rat and rabbit hepatocytes, and the other was present with dog and rabbit hepatocytes. In vivo, three metabolites were identified in dog plasma: one metabolite produced by glucuronidation plus oxidation was not observed in vitro, but the other two metabolites corresponded to metabolites produced in vitro by oxidation or glucuronidation. There was little or no potential for EX937 to inhibit the (liver enzymes) CYP1A, CYP2A6, CYP2C9, CYP2C19, CYP2D6 or CYP3A isozymes. The inhibition was 37% for CYP2E1 and 47% for CYP2C8. The IC50 for the inhibition of CYP2C8 by EX937 was 83 μM, suggesting that EX937 is a weak inhibitor of CYP2C8. There was little or no potential for induction of CYP1A or CYP3A by EX937. For CYP2B6, there was a potential for weak to moderate induction of CYP2B6 by 100 μM EX937, but not at lower concentrations.

***Early Clinical Development.***

As previously stated, we plan a first time in human (FTIH) 2-part, combined sequential Phase 1 Single (SAD; Part A) and multiple ascending dose (MAD; Part B) randomized, double-blind, placebo-controlled study to evaluate the safety, tolerability, pharmacodynamics and PK (Fasting and Steady State) of orally administered EX937. The study will be closely monitored for safety and follow a sentinel design followed by a randomized placebo controlled ascending dose study.

***Primary Objectives.***

● To assess the safety and tolerability of EX937 in healthy male and healthy non-reproductive female subjects.

***Secondary Objectives.***

● To characterize a sequential single and subsequently, the multiple dose pharmacokinetics and dose response curve in healthy subjects for each of the cohorts tested in part A and part B of this study.

● To identify a maximum tolerated dose (MTD) from data generated from Part A, "SAD" study cohorts.

● To assess the relationship between escalating doses of EX937 and activity of fatty acid amide hydrolase (FAAH) and the levels of the endocannabinoid, anandamide, as well as other non-cannabinoid FAAH substrates, OEA and PEA.

This first time in human (FTIH) combined SAD/MAD study will consist of a placebo-controlled, dose escalation design to determine the safety, tolerability, and pharmacokinetics of EX973 following in sequential order, both single and multiple dose administration of escalating dose levels of EX973 or matching placebo to healthy male and female (non-reproductive) subjects. This combination SAD/MAD study will be carried out in two parts, Part A and Part B.

***Part A.***

This is a sentinel placebo-controlled (3:1), within-cohort, randomized, double-blind, sequential, single ascending dose (SAD) escalation study design to determine the safety, tolerability, and PK of EX937 following administration of a single oral dose in healthy male and female subjects and to define the MTD of EX937. Each cohort in Part A will be initiated with two (2) initial "sentinel" randomized subjects who will each receive a single dose and evaluated for safety and tolerability prior to enrolling the remaining randomized subjects to the cohort. Therefore, each cohort in part A will have a total of eight (8) subjects (2 placebo and 6 active) as prescribed in the 3:1 randomization design. It is anticipated that there will be five (5) to six (6) dose escalation cohorts examined or a total of 40-48 subjects. A full safety assessment period will occur after sentinel dosing and between each of the cohorts. The Drug Safety Committee (DSC) will review all data and thereafter, render a recommendation whether to proceed to continuing the randomization of each cohort and initiating the next sequential dose level cohort. The DSC may recommend stopping further enrollment in accordance with the stopping rules of the study. Following the completion of the final cohort in Part A, a comprehensive safety evaluation report will be prepared by the DSC and will include a copy of a new informed consent document as required to be submitted by the HREC for approval in order to proceed to Part B of the combination study. This interim study approval letter will serve as a prerequisite which must be granted before continuation of Part B of this study.

***Part B.***

Part B will follow a placebo-controlled, within-cohort, double-blind, sequential, multiple ascending dose (MAD) escalation design to determine the safety, tolerability, and pharmacokinetics of EX937. Following a screening period as per part A, subjects will be randomized in the same 3:1 manner for each sequential cohort and will receive a once daily oral dose of EX937 or matching placebo for a period of five (5-7) TBD days at the assigned dose level. It is anticipated that there will be four cohorts of twelve (12) subjects each randomized in a 3:1 manner, i.e., 9 active and 3 placebo subjects per cohort for a total of 48 subjects. Each cohort will have subjects evaluated for safety and tolerability according to the schedule of assessments prior to escalating the dose in the next cohort. The last 4<sup>th</sup> cohort will also be subjected to a Inhaled Capsaicin Cough Challenge procedure prior to study dose administration as a clinical probe on Study Day 5 or 7 (TBD)

In addition, analytical assessment of FAAH, anandamide, and PEA (palmitoylethanolamide) will be performed for each subject participating in Parts A and B to initially assess the pharmacodynamics of EX937 in humans.

***The DSC.***

The Drug Safety Committee will participate in a comprehensive review of all relevant safety data during the entire study. Members of the DSC will be independent from Exxel Pharma and anyone directedly or tangentially involved in the clinical care of study subjects. An algorithm for dose escalation or study termination that defines decision making at a group/ "cohort" level based on adverse event severity grading and findings will be used. Dose escalation and stopping criteria based on a comprehensive evaluation of adverse events (AEs), ECGs (electrocardiograms), and laboratory results will be rigorously applied. In addition, Stopping Criteria will also be related to the PK of EX937 so as not to exceed exposure levels associated with the NOAEL identified from the non-clinical toxicology data.

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**EX937 Preclinical studies**

EX937 has been tested and shown to mitigate symptoms in several preclinical (non-clinical) animal models of human diseases, including cough, overactive bladder, painful peripheral neuropathies, and migraine headache. Except for the cough data, the results from these studies are published in peer-reviewed scientific journals. Below are representative data from preclinical studies on cough. Data for the other indications can be found in the literature and key highlights are included below.

***FAAH inhibition and suppression of vagus nerve activity and cough in the guinea pig.***

The research and data described in this section were generated under a Material Transfer Agreement with an independent third party. In this collaboration, the third party conducted the animal studies, while subsequent tissue and serum analyses were performed in our CSO's laboratory (Daniele Piomelli at UCI). The work was completed in 2022, at which point the collaboration concluded. Exxel owns all data and intellectual property arising from these studies.

FAAH activity was determined in guinea pig lung tissue extracts exposed to escalating concentrations of EX937 (URB937 in the following figure legends) using a fluorometric assay. The Pfizer FAAH inhibitor, PF-04457845, a well characterized global FAAH inhibitor which has been assessed in multiple clinical trials, was included as a positive control<sup>11</sup>. Please note the PF-04457845 inhibitor has not received FDA approval.

As expected from previous data with rodent and human FAAH, EX937 caused a profound concentration-dependent inhibition of FAAH activity in guinea-pig lung tissue, which was maximal at 1 µM. Median inhibitory concentration (IC<sub>50</sub>) was 30 nM.

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|:---|:---|
| 11 | D'Souza DC, Cortes-Briones J, Creatura G, Bluez G, Thurnauer H, Deaso E, Bielen K, Surti T, Radhakrishnan R, Gupta A, Gupta S, Cahill J, Sherif MA, Makriyannis A, Morgan PT, Ranganathan M, Skosnik PD. Efficacy and safety of a fatty acid amide hydrolase inhibitor (PF-04457845) in the treatment of cannabis withdrawal and dependence in men: a double-blind, placebo-controlled, parallel group, phase 2a single-site randomised controlled trial. Lancet Psychiatry. 2019 Jan;6(1):35-45. |

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Johnson DS, Stiff C, Lazerwith SE, Kesten SR, Fay LK, Morris M, Beidler D, Liimatta MB, Smith SE, Dudley DT, Sadagopan N, Bhattachar SN, Kesten SJ, Nomanbhoy TK, Cravatt BF, Ahn K. Discovery of PF-04457845: A Highly Potent, Orally Bioavailable, and Selective Urea FAAH Inhibitor. ACS Med Chem Lett. 2011 Feb 10;2(2):91-96.

![](image_006.jpg)

Vagus nerve activity in guinea pigs is commonly used in academic and industry studies as a proxy for studying cough in humans because the vagus nerve is a critical mediator of cough reflexes in both species. In guinea pigs, stimulation of vagal afferent nerves, particularly those innervating the airway, mimics the neural pathways involved in human cough reflexes. These responses can be monitored by electrophysiology. Key aspects contributing to the translational value of this assay include:

●  ***Physiological relevance.*** Guinea pigs exhibit similar sensitivity to tussigenic agents (e.g., capsaicin and citric acid) and share comparable afferent neural circuitry for cough regulation, closely mimicking human cough reflex mechanisms.

●  ***Pharmacological predictivity.*** **  Drugs that inhibit cough in guinea pigs, such as antitussives targeting vagal afferents or central pathways, often show efficacy in humans, making it a reliable preclinical model for drug development.

●  ***Non-invasive and real-time monitoring.*** By directly measuring vagus nerve activity, researchers can evaluate the immediate effects of candidate drugs, ensuring more accurate predictions of therapeutic outcomes in humans.

The effect of EX937 on capsaicin induced depolarization in guinea pig vagus nerve was determined both in the absence and the presence of capsaicin (1 µM). EX937 had no effect when applied alone, but caused a pronounced, concentration-dependent inhibition of capsaicin-induced vagal-nerve depolarization with an IC50 of approximately 5 nM (logIC50-8.3).

![](image_007.jpg)

Capsaicin-induced cough is a model widely used by the pharmaceutical industry to evaluate antitussive drugs. The effect of EX937 on cough induced by capsaicin was assessed in guinea pigs. Inhibition of capsaicin-induced cough was observed at 10 mg/kg, a dose that causes maximal analgesic effects in mice. As expected, the TRPV1 antagonist positive control inhibited the response (TRPV1 is the receptor that senses capsaicin and makes chili feel 'hot'). However, in this study 10% cyclodextrin was used as vehicle, which can directly stimulate coughing potentially confounding the observed effects.

![](image_008.jpg)

The Figure below shows fatty acid amide (FAA) levels in plasma and lung samples obtained from the guinea pig cough challenge study. Here, EX937 produced a dose-dependent increase in the plasma and lung concentrations of anandamide (AEA) and other FAAH substrates (the fatty acid amides OEA [oleoylethanolamide] and PEA [palmitoylethanolamide]). As expected, EX937 had no effect on the levels of 2-arachidonoylglycerol (2-AG), another endocannabinoid messenger that is not deactivated by FAAH.

![](image_009.jpg)

![](image_009a.jpg)

***Translation to human tissues: EX937 suppresses oxaliplatin-induced hyperactivity in primary cultures of human sensory neurons***

To translate preclinical data to human tissues, we assessed the effects of EX937 on primary human sensory neurons in primary cultures. In this study, sensory neurons were isolated from dorsal root ganglia of human cadavers. The cells were activated using the chemotherapeutic agent, oxaliplatin, followed by exposure to low temperature (cold buffer). This treatment sequence induces a burst of sensory neuron activity, which allows for testing the impact of EX937. As shown in the figures below, EX937 reduced the calcium transients (a measure of neuronal activation) evoked by treatment with oxaliplatin and subsequent exposure to a low-temperature buffer. These results indicate that FAAH inhibition decreases pathological activity in human sensory neurons, consistent with EX937 being a potential treatment for neuronal hypersensitivity disorders such as RCC<sup>12</sup>.

![](image_010.jpg)

***EX937 reduces bladder overactivity and hyperactivity in a rodent model***

In work done by a Japanese research group at the University of Tokyo, EX937 (URB937) was shown to reduce bladder hyperactivity, and specifically the activation of nerve fibers<sup>13</sup>. In the figure below, the left panel shows integrated responses of both afferent fibers before and after EX937 administration, during saline- and PGE2 [Prostaglandin E2]-instillations (100 uM). The results are consistent with our RCC data as well as the neuronal activity data obtained from primary human sensory neurons, and support the clinical application in treatment of hyperactive bladder.

![](image_011.jpg)

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|:---|:---|
| 12 | A p-value is a statistical measure used to assess the probability that the observed differences between experimental groups occurred by chance. A smaller p-value indicates stronger evidence against the null hypothesis (i.e., no difference between groups). In our analyses, a p-value of less than 0.05 (p < 0.05) is considered statistically significant, meaning that the likelihood that the observed effect is due to chance is less than 5%. |

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In these data, treatment with URB937 significantly reduced the cold-induced response time in human sensory neurons following oxaliplatin exposure, with p-values of 0.007 and 0.014 compared to vehicle, indicating statistically significant reductions in cold response duration.

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|:---|:---|
| 13 | Aizawa, N., Gandaglia, G., Hedlund, P., Fujimura, T., Fukuhara, H., Montorsi, F., Homma, Y. and Igawa, Y.: URB937, a peripherally restricted inhibitor for fatty acid amide hydrolase, reduces prostaglandin E2-induced bladder overactivity and hyperactivity of bladder mechano-afferent nerve fibres in rats. BJU Int, 2016, 117: 821-828. |

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***EX937 suppresses pain through peripheral FAAH inhibition***

In work from the laboratory of our CSO, and published in Nature Neuroscience, EX937 was evaluated in three mouse models of pain: acetic acid-induced visceral hyperalgesia, carrageenan-induced inflammatory hyperalgesia and allodynia, and peripheral nerve injury-induced hyperalgesia<sup>2</sup>. The key findings from this study include:

● Subcutaneous (s.c.) administration of EX937 reduced acetic acid-induced writhing with a median effective dose (ED50) of 0.1 mg/kg; the effect was comparable to indomethacin and could be blocked by the CB1 (cannabinoid receptor 1) antagonist rimonabant.

● In the peripheral nerve injury model, a single dose of EX937 (1 mg/kg, i.p., 2 h before testing), administered one week after surgery, attenuated thermal hyperalgesia and suppressed mechanical hyperalgesia and mechanical allodynia on the operated side.

● In the carrageenan model, a single injection of EX937 (1 mg/kg, i.p.), administered at the same time as carrageenan, decreased mechanical and thermal hyperalgesia, assessed 4 h and 24 h following carrageenan treatment. EX937 also reduced mechanical allodynia measured 24 h after carrageenan.

![](image_012.jpg)

(Left) EX937 suppresses pain behavior elicited by neural injury in mice. (a-c) Effects of single administration of vehicle (shaded bars) or EX937 (1 mg-kg-1, i.p.; closed bars) on (a) mechanical hyperalgesia, (b) thermal hyperalgesia, and (c) mechanical allodynia produced by sciatic nerve ligation. BL, baseline (measured before nerve ligation); IL, ipsilateral (ligated) paw; CL, contralateral (non-ligated) paw. Results are expressed as mean±s.e.m.; n = 6 in each panel. \*P<0.05, \*\*P<0.01 and \*\*\*P<0.001 vs baseline; <sup>#</sup>P<0.05, <sup># #</sup> P<0.01 and <sup># # #</sup> P<0.001 vs vehicle.

***EX937 reduces pain in a mouse model of peripheral neuropathy***

In further studies from professor Piomelli's group, EX937 was evaluated in a mouse model of peripheral neuropathy<sup>14</sup>. This was the first of a string of published studies documenting the function of EX937 in different mouse models of painful peripheral neuropathies. Key findings in this study were:

● Following intraplantar CFA (Complete Freund's Adjuvant) injection, EX937 produced a marked suppression of mechanical and thermal hyperalgesia (p < 0.01 for 3 mg/kg and p < 0.001 for 10 and 30 mg/kg).

● ED50 values were mg/kg on mechanical hyperalgesia (CL 95% = 0.62 – 3.39 mg kg-1) and 3.1 mg/kg on thermal hyperalgesia (CL 95% = 0.30 – 1.69 mg/kg).

14 Sasso O, Bertorelli R, Bandiera T, et al. Peripheral FAAH causes profound antinociception and protects against indomethacin-induced gastric lesions. Pharmacol Res 2012;65(5):553-563.

● At the highest dose tested (30 mg kg-1), EX937 was more effective (p < 0.001 for 30 mg kg-1, F = 15.53) than a 100 mg/kg oral dose of dexamethasone, a potent anti-inflammatory steroid.

● EX937 was significantly more potent (p < 0.001 for 30 mg/kg, F = 17.01) than the globally active FAAH inhibitors URB597 and PF-04457845.

The figure below shows the anti-hyperalgesic effects of FAAH inhibitors URB597, EX937, and PF-04457845 in the CFA model of chronic inflammatory pain. FAAH inhibitors (1 – 30 mg-kg-1, per os) reduced mechanical hyperalgesia (A) and thermal (C) hyperalgesia. The effect of dexamethasone (100 mg-kg-1, per os) is shown for comparison. FAAH inhibitors were dissolved in 0.5% CMC and administered orally once on day 3, day 7, and day 14 following intraplantar CFA injection. Mechanical hyperalgesia (A) and thermal hyperalgesia (B) were measured 2 h after drug treatment and were significantly different for URB597 (10 – 30 mg-kg-1), EX937 (1 – 30 mg-kg-1), PF-04457845 (3 – 30 mg-kg-1) and dexamethasone, compared to vehicle treated groups. Results are expressed as mean ± SEM (n=6, each group). The data were compared using two-way analysis of variance (ANOVA) followed by Bonferroni's test for multiple comparisons. \*\* p< 0.01 and \*\*\* p<0.001 vs. vehicle; ###p<0.001 vs. sham operated mice.

![](image_013.jpg)

***EX937 prevents migraine in the rat Nitroglycerin (NTG) model and lowers expression of the therapeutic migraine target CGRP***

A preclinical rat model of migraine was used to assess EX937's potential as a treatment for this condition. Here, nitroglycerin (NTG) was used to induce hyperalgesia and the effect of EX937 was determined by different methods<sup>15</sup> (Greco et al., 2021). An example of data from this study is given in the figure below where the left graph shows time of face rubbing (expressed in seconds) during phase II of the orofacial formalin test after chronic treatment with NTG/vehicle and EX937/vehicle. Chronic treatment with EX937 prevented NTG-induced hyperalgesia during Phase II. The right graph shows mRNA levels of CGRP (Calcitonin Gene-Related Peptide, and important mediator in pain and migraine) in the trigeminal ganglion ipsilateral with formalin injection after chronic treatment with NTG/vehicle and EX937/vehicle. This is consistent with reduced CGRP gene expression, which is an attractive goal for migraine treatment and prevention.

15 Greco R, Demartini C, Zanaboni A, Casini I, De Icco R, Reggiani A, Misto A, Piomelli D, Tassorelli C. Characterization of the peripheral FAAH inhibitor, URB937, in animal models of acute and chronic migraine. Neurobiol Dis. 2021 Jan;147:105157.

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**Manufacturing**

We work with a third-party GMP compliant manufacturer to support the manufacturing of EX937 for clinical studies and our research activities and, if we receive regulatory approval, we intend to rely on such third party for commercial manufacture. We do not own or operate, and currently have no plans to establish, any manufacturing facilities. We currently obtain our supplies from this manufacturer on a purchase order basis and do not have any long-term supply agreements in place. In order to de-risk our supply chain, and as we advance toward potential commercialization, we may enter into long-term supply agreements as well as evaluate additional product manufacturing sources.

**Competition**

RCC is caused by hypersensitive airway nerves, which aberrantly trigger the cough response in response to harmless stimuli, for example scents, talking, or changes in temperature. Hypersensitization of these sensory airway nerves may occur during a respiratory infection but persists after the infection is cleared. For this reason, RCC is sometimes called a neuronal hypersensitivity disorder. Off-label use of corticosteroids, tricyclic antidepressants, or pain medications such as gabapentin or opioids, offer limited relief to a small fraction of RCC patients. However, the side-effects of these off-label treatments, including risk of nausea, vomiting, dizziness, constipation, and addiction, severely limit their use, and a significant unmet medical need exists. Importantly, there are current no FDA-approved treatments available on the market.

The advanced, competing drug target is the P2X3 receptor, which is in development by GSK/Bellus Health and Merck. Unfortunately, this target is associated with taste side-effects which challenge the development and efficacy of these drug products. A handful of other programs have been identified and are listed in the table below. In this context, it is important to note that RCC affects a large and heterogenous patient population, and we expect multiple drug targets/products will be needed to help all RCC patients. Furthermore, we expect once daily dosing will be needed with EX937 which contrasts the twice or thrice daily dosing required for the competing P2X3 products.

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**Human Capital Resources**

As of March 31, 2025, we had one regular full-time employee, our CEO, and three part-time/contract workers, who were engaged in research and development activities. In addition, we currently work with numerous highly experienced consultants and contractors that provide management and oversight in manufacturing, analytical, clinical supply chain, regulatory, pharmacovigilance and safety, clinical operations, data management, statistics, non-clinical toxicology, nonclinical and clinical pharmacology, and medical affairs. Thus, we currently operate as a semi-virtual pharmaceutical company with expertise in numerous aspects of preclinical and clinical development. All of our consultants and contractors have extensive experience in the development of drugs.

None of our employees are represented by a labor union, and we believe we maintain good relations with our employees.

Our human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing and integrating our existing and new employees, advisors and consultants. The principal purposes of our equity and cash incentive plans are to attract, retain and reward personnel through the granting of stock-based and cash-based compensation awards, in order to increase stockholder value and the success of our company by motivating such individuals to perform to the best of their abilities and achieve our objectives.

**Intellectual Property**

Exxel's commercial success depends on our ability to obtain and maintain patent and proprietary protection for the EX937 and ARN compounds. It is our policy to seek patent and/or proprietary protection for compounds, methods and other by filing U.S. and foreign patent applications covering new proprietary technology, inventions and improvements. We also rely on trade secrets, know-how and continuing technological innovation to further develop and maintain our proprietary position.

We have in-licensed from the University of California, Irvine (UCI), on an exclusive basis, the rights to composition of matter patent coverage for EX937, which has been secured in the major pharmaceutical markets and our licensed patents have an expiration date of 2032, excluding any potential patent term extension. Our patent estate also includes a pending patent application, jointly owned with UCI, which would extend composition of matter coverage for EX937 to 2044, excluding any potential patent term extension. Working with UCI and our patent counsel, we plan to seek patent protection in the US, and select EU and Asian markets for this intellectual property.

Specifically, EX937 is covered by **composition claims** in the WO2012/015704 family of patents which also covers the **uses of the compound for the treatment of neuropathic pain**. These patents are licensed from UCI.

WO2012/015704 US9187413B2 Will expire in July 2031 CA2843265C CN103153946B EP2598477B1 (validated in CH, DE, FR, GB, IT, LI) JP5981429B2 Will expire in July 2031

Further, EX937 **halogenated compounds (compositions)** are covered by the WO2013/028570 family of patents which also includes **claims for the treatment of pain and inflammation**. The family is set to expire in August 2032 in selected European countries, Australia, China, Japan, Mexico and New Zeeland. The US patent expires in December 2032 due to 130 days of patent term adjustment. These patents are licensed from UCI.

WO2013/028570 US9745255B2 Will expire in December 2032 due to 130 days of PTA AU2012299060B2 BR112014003886B1 CN104203906B CA2844812C EP2744778B1 (validated in BE, CH, DE, DK, ES, FR, GB, IE, IT, LX, MC, NL, NO, SE) JP6092870B2 KR102079404B1 MX354772B Will expire in August 2032

The terms of individual patents depend upon the legal term for patents in the countries in which they are granted. In most countries, including the United States, the patent term is generally 20 years from the earliest claimed filing date of a nonprovisional patent application in the applicable country. In the United States, a patent's term may, in certain cases, be lengthened by patent term adjustment, which compensates a patentee for administrative delays by the USPTO in examining and granting a patent, or may be shortened if a patent is terminally disclaimed over a commonly owned patent or a patent naming a common inventor and having an earlier expiration date. The Drug Price Competition and Patent Term Restoration Act of 1984, or the "Hatch-Waxman Act", permits a patent term extension of up to five years beyond the expiration date of a U.S. patent as partial compensation for the length of time the drug is under regulatory review while the patent is in force. A patent term extension cannot extend the remaining term of a patent beyond a total of 14 years from the date of product approval, only one patent applicable to each regulatory review period may be extended and only those claims covering the approved drug, a method for using it or a method for manufacturing it may be extended. We cannot provide any assurance that any patent term extension with respect to any U.S. patent will be obtained and, if obtained, the duration of such extension.

Similar provisions are available in the European Union and certain other non-U.S. jurisdictions to extend the term of a patent that covers an approved drug. In the future, if EX937 receives approval from the FDA or non- U.S. regulatory authorities, we expect to apply for patent term extensions on issued patents covering EX937 when applicable. The expiration dates referred to above are without regard to potential patent term extension or other market exclusivity that may be available to us. However, we cannot provide any assurances that any such patent term extension of a non-U.S. patent will be obtained and, if obtained, the duration of such extension.

We also protect our proprietary technologies and processes, in part, by confidentiality and invention assignment agreements with our employees, consultants, scientific advisors and other contractors. These agreements may be breached, and we may not have adequate remedies for any breach. In addition, our trade secrets may otherwise become known or be independently discovered by competitors. To the extent that our employees, consultants, scientific advisors or other contractors use intellectual property owned by others in their work for us, disputes may arise as to the rights in related or resulting know-how and inventions.

**Licensing agreements and terms for Exxel Intellectual Property**

Exxel is party to two exclusive license agreements with The Regents of the University of California (UCI) covering intellectual property related to fatty acid amide hydrolase (FAAH) inhibitors, including our EX937 and ARN programs. The two licensed technologies were initially inlicensed under a single licensing agreement in 2018 but this agreement was divided into two licensing agreements in 2021 to facility future sublicensing and commercialization of each technology independently. The terms of our two license agreements are summarized below.

EX937: Peripheral FAAH Inhibitors License Agreement

● Effective Date: August 17, 2021

● UC Agreement No.: 2022-04-0096

● Scope: Exclusive, worldwide rights to a portfolio of FAAH inhibitor compounds with restricted peripheral activity.

The license excludes use in research reagent applications, which is typical carve out to allow for academic use, and is subject to certain U.S. Government rights under applicable federal funding statutes (35 U.S.C. §§ 200–212), including requirements for substantial manufacture in the United States. This provision stems from the foundational research and IP being created with support from the National Institutes of Health (NIH).

● Financial Terms:

● Upfront license fee and equity consideration.

● Annual license maintenance fees that increase over time.

● Royalties on net sales at rates in the low single digits.

● Tiered sharing of sublicense income with the licensor, with rates ranging from low teens to mid-twenties, depending on the aggregate amounts received and the sublicense structure.

● Development Diligence:

The Company is required to use commercially reasonable efforts to develop and commercialize products under the licensed intellectual property. The agreement includes defined diligence obligations linked to development, clinical, regulatory, and commercial progress. These milestones have been amended by mutual agreement to align with the Company's evolving development timeline. Failure to meet these obligations may give the licensor the right to terminate the license.

● Termination Rights:

● The Regents may terminate for material breach, including failure to meet diligence obligations.

● The Company may terminate with advance written notice.

ARN: Global FAAH Inhibitors License Agreement

● Effective Date: August 17, 2021

● UC Agreement No.: 2022-04-0094

● Scope: Exclusive, worldwide rights to a portfolio of FAAH inhibitor compounds with central (non-peripheral) activity, including associated technology and data, excluding use in research reagent applications (academic or diagnostic use). The license is subject to certain U.S. Government rights under applicable federal funding statutes (35 U.S.C. §§ 200 – 212), including requirements for substantial manufacture in the United States. This provision stems from the foundational research and IP being created with support from the National Institutes of Health (NIH).

● Financial Terms:

● Upfront license fee and equity consideration.

● Annual license maintenance fees that increase over time.

● Royalties on net sales at rates in the low single digits.

● Tiered sharing of sublicense income with the licensor, with rates ranging from low teens to mid-twenties, depending on the aggregate amounts received and the identity of the sublicensee.

● Development Diligence:

The Company is required to use commercially reasonable efforts to develop and commercialize products under the licensed intellectual property. The agreement includes defined diligence obligations tied to development, clinical, regulatory, and commercial milestones. These obligations have been amended from time to time by mutual agreement to reflect changes in the Company's development plans. Failure to meet these obligations may give the licensor the right to terminate the license.

● Termination Rights:

● The Regents may terminate for material breach, including failure to meet diligence obligations.

● The Company may terminate with advance written notice.

As outlined above, our license agreements include development diligence terms, requiring the company to spend a minimum amount of money on development activities and to meet certain development timelines and milestones. These are standard terms in academic technology licenses and are intended to ensure active development and commercialization. UCI and Exxel have a shared interest in seeing our technologies succeed and we work closely together to amend timelines when unforeseen events lead to development delays and risk of missing milestones. In pharmaceutical development, delays and additional testing due to circumstances outside the company's control are common risk factors, and the agreements were most recently amended in September 2025 to extend diligence timelines consistent with our current development plans. The company is current on all development milestones and timelines, and has exceeded the agreements' required minimum spending thresholds for development activities. Each agreement has the following diligence milestones (contractual obligations) that each have a confidential, future target date:

● Submit IND or equivalent package for US FDA or Australian Ethics committee approval for a Licensed Product

● Begin a Phase I clinical trial and complete a first human dosing with a Licensed Product

● Complete a Phase II clinical trial with a Licensed Product

● Complete pivotal Phase III clinical trial with a Licensed Product

● File NDA for a Licensed Product

● Complete a first commercial sale of a Licensed Product

The future milestones that will trigger payments to UCI are listed below and the sum of all future milestone payments, for both license agreements, is $7,070,000. Importantly, these milestone payments are backend-loaded with larger payments due after completion of regulatory approval and first commercial sale. We project having to pay UCI about $400,000 over the next 30 months, including all milestone and annual license fees. Development milestones triggering payment of milestone fees (financial obligations) to UCI:

● IND approval by the US FDA or Australian Ethics Committee

● First human dosing with a Licensed Product

● Successful completion of Phase II clinical trial with a Licensed Product

● Successful completion of Phase III clinical trial with a Licensed Product

● NDA approval for a Licensed Product

● First commercial sale of a Licensed Product in the US

● First commercial sale of a Licensed Product in Europe

For both of our license agreements, upfront and annual maintenance fees as well as all past license costs have been paid and the company is current on its financial obligations under these agreements. Since first licensing the two technologies from UCI in 2018, the company has paid approximately $788,500 in license costs, including patent costs, license and annual fees. At signing in 2018, UCI received a low-single-digit equity stake, protected from dilution until the Company raises at least $5 million in equity financing. UCI also holds participation rights in private financing rounds, which expire upon a public listing. We do not anticipate UCI participating in any company financing between now and a future public listing.

In summary, the two license agreements grant Exxel exclusive, worldwide rights from the University of California to develop and commercialize two distinct families of FAAH inhibitor compounds—one acting centrally within the CNS and the other peripherally. These agreements reflect standard academic licensing terms, including modest royalties, milestone-based diligence obligations, and backend-loaded milestone payments, aligning UCI's interests with ours in advancing these programs toward commercialization.

**Financing — Convertible Debentures**

*<u>November 2024 Convertible Debenture</u>*

On November 19, 2024, Exxel entered into a Securities Purchase Agreement ("SPA") with a single, non-related party Purchaser, which included a Senior Secured Convertible Debenture with an aggregate principal amount of $675,000, an original issue discount ("OID") of 12.5% ($75,000), and warrants to purchase common shares at no additional consideration. The initial warrants were equal to 75% of the original principal amount divided by the offering price of Exxel's common shares in its first Liquidity Event (defined as a change of control or initial public offering, neither of which had occurred as of June 30, 2025), and exercisable at $0.10 per share for 36 months following the closing of such event.

The Debenture originally matured on August 19, 2025, with an option to extend for an additional three months. It bore no interest and was repayable in cash for any unconverted and outstanding principal at maturity. Exxel retained the right to prepay the Debenture at 110% of the face amount. If extended, the OID increased to 18%.

The Debenture included a mandatory conversion feature, under which the full outstanding balance would automatically convert into common shares 90 days following a Qualified Financing or Event. The conversion price was the lower of (i) 75% of the price at which the Debenture would have converted at the closing of the Qualified Financing or Event (defined as an initial public offering with proceeds of at least $5 million and listing on a national securities exchange), or (ii) a 25% discount to the five-day volume-weighted average price (VWAP) of the common shares prior to the 90-day post-event date, subject to a conversion floor price of $10.00. The number of conversion shares was calculated by dividing the unconverted principal balance by the applicable conversion price, rounded up to the nearest whole share.

Prior to mandatory conversion or repayment, the Purchaser could voluntarily convert the Debenture into common shares at a conversion price equal to $25,000,000 divided by the Fully Diluted Capitalization immediately prior to conversion. In the event of default under Section 7 of the SPA, the conversion price was reduced to 50% of the voluntary conversion price.

The Company identified an embedded redemption feature within the Debenture that qualified as a derivative under ASC 815, *Derivatives and Hedging*. The derivative liability was initially recognized at fair value upon issuance and remeasured at each reporting date, with changes in fair value recorded in the consolidated statements of operations. Fair value was determined using the Differential Valuation Approach, comparing the Debenture's value with and without the redemption feature. At issuance and as of December 31, 2024, a 10% probability was assigned to the successful consummation of a Qualified Financing or Event. As of June 30, 2025, this probability increased to 45%, resulting in a fair value of $101,000. The change in fair value of $79,000 was recorded as an expense for the six months ended June 30, 2025.

Upon issuance, the Debenture was classified as a current liability with a principal amount of $675,000. The Debenture included an OID of $75,000, a debt discount of $95,000 related to issuance costs, and an additional debt discount of $22,000 attributed to the derivative liability. As of June 30, 2025, the net carrying amount was $648,525. For the six months ended June 30, 2025, the Company recognized noncash interest expense of $114,316 related to the amortization of debt discounts and imputed interest expense of $20,034 based on an effective interest rate of 8%. Remaining unamortized debt discounts totaled $51,158 as of June 30, 2025.

*Subsequent Amendment*

On August 12, 2025, the Company amended the terms of the November 2024 SPA. The amendment extended the maturity date from November 20, 2025 (reflecting the initial three-month extension from the original August 19, 2025 maturity) to May 20, 2026. The repayment amount was increased to 125% of the principal balance, or $843,750. The mandatory conversion feature was removed. In connection with the amendment, the Company issued new warrants to the Purchaser, exercisable into common shares at $0.01 per share for a period of 36 months following a Qualified Financing or Event.

*<u>September 2025 Convertible Debenture</u>*

On September 2, 2025, Exxel entered into a Securities Purchase Agreement ("SPA") with a single, non-related party investor (the "Investor"), pursuant to which the Company issued a Senior Secured Convertible Debenture with an aggregate principal amount of $750,000. The Debenture included an original issue discount ("OID") of 20% ($125,000) and warrants to purchase common shares at no additional consideration. The number of warrants issued will equal 100% of the original funded amount divided by a $25 million valuation cap and will be exercisable at $0.001 per share for a period of 36 months following the closing of a Qualified Financing or Event (defined as a change of control or initial public offering, neither of which had occurred as of the date of this filing).

The Debenture matures on June 2, 2026, with an option to extend the maturity date by an additional three months. It bears no interest and is repayable in cash for any unconverted and outstanding principal at maturity. The Company may prepay the Debenture at any time at 110% of the face amount. If the maturity date is extended, the OID increases to 25%.

Under the terms of the agreement, the Investor may elect to convert any outstanding principal and accrued interest into common shares of the Company at any time prior to full repayment. If conversion occurs prior to or in the absence of a Qualified Financing or Event, the conversion price will be determined by dividing the outstanding balance by the applicable conversion price, subject to a floor price of $1.50 per share.

Following a Qualified Financing or Event, the conversion price will be the lower of (i) 75% of the price used at the closing of such event, subject to a $25 million valuation cap, or (ii) a 25% discount to the five-day volume-weighted average price ("VWAP") immediately preceding the conversion date, in both cases subject to the same $1.50 floor. Additionally, if post-event trading conditions meet certain thresholds—specifically, a 25% premium to the event price and $500,000 in trading volume over two consecutive trading days—the Investor may convert at any time thereafter under the same terms.

The standard voluntary conversion price is calculated as $25 million divided by the Company's fully diluted capitalization immediately prior to conversion. In the event of default under the terms of the Debenture, the conversion price is reduced to 50% of the voluntary conversion price.

**MANAGEMENT**

**Executive Officers and Directors**

The table below lists the name, age and position of each of our executive officers and directors as of August 8, 2025, and includes persons who we intend to appoint as directors upon completion of this offering:

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| ***Executive Officers:*** |  |  |
| Soren Mogelsvang | 53 | President and CEO, Director |
| Daniele Piomelli | 66 | Chief Scientific Officer |
| Robert Dickey IV | 69 | Chief Financial Officer |
| Rich Paul | 77 | Chief Medical Officer |
| ***Non-Employee Directors:*** |  |  |
| Anuj Madhok | 50 | Director (To be appointed) |
| Guy Yachin | 57 | Director |
| Deborah Geraghty | 55 | Director (To be appointed) |
| Nitin Kaushal | 59 | Director (To be appointed) |

---

**Background of Directors and Executive Officers**

Soren Mogelsvang, PhD — President and Chief Executive Officer, Director (Age 53)

Dr. Mogelsvang has served as our President, Chief Executive Officer, and a member of our Board of Directors since June 2017. Since April 2021, he has also served as a director of MycoBiotix, a biotechnology startup focused on developing and commercializing therapies for neuropsychiatric and autoimmune disorders. From 2014 to 2016, Dr. Mogelsvang was President and Chief Executive Officer of Peak Pharmaceuticals, a veterinary health company. He co-founded Serpin Pharma, a clinical-stage biotechnology company, where he served as Vice President of Research and Development from 2011 to 2014. Concurrently, from 2010 to 2014, he was Head of Research and Development at Caerus Discovery, a biotechnology company specializing in immunology. Dr. Mogelsvang holds a Ph.D. in Biochemistry from the University of Cambridge and an M.S. in Plant Molecular Biology from the University of Copenhagen. He was appointed to our Board of Directors in recognition of his extensive experience as a biotechnology executive and entrepreneur.

Daniele Piomelli, Ph.D., M.D. (h.c.) – Chief Scientific Officer (Age: 66)

Dr. Daniele Piomelli has served as our Chief Scientific Officer since May 2018. Since August 1998, he has been a faculty member at the University of California, Irvine, School of Medicine, where he currently holds the Louise Turner Arnold Chair in Neurosciences and serves as Distinguished Professor of Anatomy and Neurobiology, Pharmacology, and Biological Chemistry. Since January 2023, Dr. Piomelli has also served as Chief Executive Officer of Nectaris, Inc., a company focused on developing non-pharmaceutical treatments for metabolic syndrome and chronic pain. He earned his Ph.D. in Neuroscience from Columbia University College of Physicians and Surgeons and completed postdoctoral research at The Rockefeller University. He subsequently held research positions at INSERM in Paris and The Neurosciences Institute in La Jolla.

Robert Dickey IV — Chief Financial Officer (Age: 69)

Mr. Dickey has served as our Chief Financial Officer since April 2025. Since March 2020, he has also served as Managing Director of Foresite Advisers, where he provides CFO advisory services, financial analysis, capital raising support, and transactional execution for public offerings and mergers and acquisitions in the life sciences sector. Mr. Dickey currently serves on the boards of directors of AngioGenex, SFA Therapeutics, and GSNO Therapeutics. He holds an M.B.A. from The Wharton School and an A.B. from Princeton University.

Richard Paul, M.D. — Chief Medical Officer (Age: 77)

Dr. Paul has served as our Chief Medical Officer from June 2018 to January 2023, and again since November 2024. He is responsible for overseeing all clinical research activities. A licensed physician with over 25 years of experience in drug development, regulatory affairs, and clinical research, Dr. Paul has served since September 2016 as President and Chief Executive Officer of Drug Development Associates, LLC, a firm specializing in clinical research, drug development, and regulatory strategy. Since January 2025, he has also served as Chairman of the Advisory Medical Council of Cancer Hope Research, an organization focused on oncology patient support. Dr. Paul completed a postgraduate fellowship in Biochemistry and Enzymology at Albert Einstein College of Medicine, followed by an Internal Medicine residency at Rutgers University and a fellowship in Endocrinology and Metabolic Diseases at Harvard Medical School/Joslin Diabetes Center. He was subsequently appointed to the medical staff at Morristown Memorial Hospital, an affiliated teaching hospital of Columbia Presbyterian Hospital in New York, and was named Associate Professor of Medicine in 1983.

Guy Yachin — Director (Age: 57)

Mr. Yachin has served as a member of our Board of Directors since May 2018. Since April 2010, he has been the owner of Oasis Management, a consulting firm providing strategic advisory services to biomedical companies. Since November 2019, he has also served as Chief Executive Officer and Executive Chairman of Xerient, a drug development company focused on enhancing radiation therapy. Previously, Mr. Yachin served as Chief Executive Officer of Serpin Pharma, an immunotherapy company based in Virginia, from July 2013 to October 2019, and as Chief Executive Officer of Nasvax, a company specializing in immunotherapeutics and vaccine development, from September 2011 to May 2013.

Mr. Yachin holds a B.Sc. in Industrial Engineering and Management and an M.B.A. from the Technion — Israel Institute of Technology. He was appointed to our Board of Directors in recognition of his extensive experience as a biotechnology executive with expertise in drug development, immunotherapy, and cell therapy.

Nitin Kaushal — Director (To be Appointed) (Age: 59)

Mr. Kaushal has been nominated to serve as a member of our Board of Directors, subject to his formal appointment. He was nominated based on his extensive experience in financial investing, healthcare services, medical devices, and capital markets. Since March 2020, Mr. Kaushal has served as President of Anik Capital Corp., a family holding company. He currently serves on the boards of several public and private companies, including Viemed Healthcare, Inc. (since November 2017), High Tide Inc. (since October 2018), Everyday People Financial Corp. (since September 2022), and Synergy CHC Inc. (since October 2024). From April 2012 to March 2020, he was Managing Director in the Corporate Finance practice at PwC Canada.

Anuj Madhok, Ph.D. — Director (To Be Appointed) (Age: 50)

Dr. Madhok has been nominated to serve as a member of our Board of Directors, subject to his formal appointment. He was nominated based on his extensive experience as a biotechnology executive and strategic advisor in the pharmaceutical and biotechnology industries. Since September 2021, Dr. Madhok has served as a director and founder of Novalio Pharma, a biotechnology strategic advisory firm. He has also served since that time as Chief Business Officer of Cytoki Pharma, a biotechnology company focused on metabolic diseases. From February 2020 to August 2021, he was Chief Executive Officer of Zarodex Therapeutics, an immunology-focused biotechnology company. Dr. Madhok holds a Ph.D. in Chemical Engineering from the University of Cambridge, United Kingdom, and a B.Sc. in Chemistry from the University of Copenhagen, Denmark.

Deborah Geraghty, Ph.D. — Director (To be Appointed) (Age: 55)

Dr. Geraghty has been nominated to serve as a member of our Board of Directors, subject to her formal appointment. She was nominated based on her extensive experience in fundraising, corporate strategy, portfolio management, commercialization, and finance within the biotechnology and pharmaceutical industries. Since May 2025, she has served as President and Chief Executive Officer of Radiant Biotherapeutics, a Canadian biotechnology company developing therapies for cancer and autoimmune diseases using its proprietary modular multivalent, multispecific biologic platform, the Multabody™. From February 2021 to March 2025, Dr. Geraghty was President and Chief Executive Officer of Anokion SA, a Swiss biotechnology company focused on restoring immune tolerance to treat autoimmune diseases. Prior to that, she served as Anokion's Chief Operating Officer and Chief Business Officer from April 2018 to February 2021.

Dr. Geraghty also served on the Board of Directors of ReAlta Life Sciences, Inc. from January 2020 to January 2024, where she chaired the audit committee, and on the board of the Medical University of South Carolina Foundation for Research Development from April 2019 to December 2023. She holds a B.S. in Biology from Union College, an M.B.A. from the Carroll School of Management at Boston College, and a Ph.D. in Molecular Biology from the University of Vermont.

**Family Relationships**

There are no familial relationships among our directors and executive officers.

**Board Composition**

Our business and affairs are organized under the direction of the Board. The Board currently consists of 2 members, but we have identified 3 additional persons who we intend to appoint as directors upon completion of this offering. Each of them has agreed to accept an appointment to our Board and each of them would qualify as an independent director. The primary responsibilities of the Board are to provide oversight, strategic guidance, counseling, and direction to our management. The Board will meet on a regular basis and additionally as required.

**Director Independence**

We are seeking the listing of our common stock on the OTCQX® Best Market or the OTCQB® Venture Market and will utilize the OTCQX® Best Market or the OTCQB® Venture Market listing rules in determining whether a director is independent. The OTCQX® Best Market or the OTCQB® Venture Market rules generally define an "independent director" as a person, other than an executive officer of a company or any other individual having a relationship which, in the opinion of the issuer's board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

In addition, we will be subject to applicable rules of the SEC relating to the membership, qualifications, and operations of the audit committee, the compensation committee, and the nominating and corporate governance committee, as discussed below.

**Board Meetings and Committees**

During the fiscal year ended December 31, 2024 and the six months ended June 30, 2025, the Board met nine and five times, respectively. All of our directors attended 75% or more of the aggregate number of meetings of the Board and committees on which they served. The directors are strongly encouraged to attend future meetings of stockholders.

Following completion of this offering, the Board will establish a standing audit committee, compensation committee, and nominating and corporate governance committee. The Board will adopt a charter for each of these committees, which complies with the applicable OTCQX® Best Market or the OTCQB® Venture Market rules. Copies of the charters for each committee will be publicly available upon the closing of the offering on our website at *www.exxelpharma.com.*

***Audit Committee***

The audit committee will be formed upon completion of this offering and will consist of three members, Nitin Kaushal (chairperson), Anuj Madhok and Guy Yachin. The Board has determined that each member of the audit committee is an independent director as defined by [ ] rules applicable to members of an audit committee, including that each member meets the criteria for independence set forth in Rule 10A-3(b)(1) under the Exchange Act. In addition, as required by [ ] rules, each member of the audit committee is able to read and understand fundamental financial statements, including a company's balance sheet, income statement, and statement of cash flows.

The audit committee will meet on at least a quarterly basis. Both our independent registered public accounting firm and management will periodically meet privately with the audit committee. The audit committee will assist the Board in monitoring the integrity of our financial statements, our compliance with legal and regulatory requirements, and the independence and performance of our internal and external auditors. The audit committee's duties, which are specified in our audit committee charter, include, but are not limited to:

● selecting and retaining an independent registered public accounting firm to act as our independent auditors, and evaluating the qualifications, performance and independence of the independent auditor;

● selecting, retaining, overseeing and terminating, if necessary, any other registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for us;

● approving the fees to be paid to the independent auditor for audit services and approving the retention of independent auditors for non-audit services and all fees for such services;

● reviewing periodic reports from the independent auditor regarding, among other things the auditor's independence, including discussion of such reports with the auditor;

● meeting with the independent auditor prior to the audit to review the scope, planning, and staffing of the audit;

● discussing with management and the independent auditor, as appropriate, our critical accounting policies and practices;

● reviewing and discussing with management and the independent auditor the annual audit report, the annual financial statements and related notes and management's discussion and analysis of financial condition and results of operations proposed to be included in our annual report, and recommending to the Board whether the audited financial statements and related notes and management's discussion and analysis of financial condition and results of operations should be included in our annual report;

● producing the report of the audit committee, as required by the rules of the SEC;

● reviewing and discussing with management and the independent auditor our quarterly financial statements prior to the filing of each quarterly report and management's discussion and analysis of financial condition and results of operations proposed to be included in such quarterly report;

● reviewing and discussing with management and the independent auditor our major financial risk exposures and the steps management has taken to monitor and control such exposures, including the our risk assessment and risk management policies;

● reviewing with management and our independent auditors the adequacy and effectiveness of our financial reporting process, internal control over financial reporting and disclosure controls and procedures; and

● reviewing and approving all related-party transactions.

*Financial Experts on Audit Committee*

The Board determined that Nitin Kaushal qualifies as an audit committee financial expert within the meaning of the rules and regulations of the SEC. In making this determination, the Board considered Nitin Kaushal's formal education and previous experience in financial roles. In addition, as required by OTCQX® Best Market or the OTCQB® Venture Market rules, we have at least one member who has past employment experience in finance or accounting, requisite professional certification in accounting, or other comparable experience or background that results in the individual's financial sophistication. The Board determined that Nitin Kaushal qualifies as financially sophisticated under the applicable rules.

***Compensation Committee***

The Compensation Committee will be formed upon completion of this offering, and will consist of two members, Deborah Geraghty and Guy Yachin. Mr. Yachin will serve as chairperson. The Board has determined that each member of the compensation committee is an independent director as defined by the OTCQX® Best Market or the OTCQB® Venture Market rules applicable to members of a compensation committee. The Board also determined that each member of the compensation committee is a non-employee director, as defined in Rule 16b-3 promulgated under the Exchange Act. The compensation committee meets from time to time to consider matters for which approval by the committee is desirable or is required by law.

The compensation committee's duties, which are specified in our compensation committee charter, include, but are not limited to:

● reviewing and making recommendations to the Board regarding the corporate goals and objectives relevant to compensation of our Chief Executive Officer and other executive officers, annually evaluate such officers' performance in light of those goals and objectives and, based on this evaluation, make recommendations to the Board regarding such officers' compensation level;

● reviewing and making recommendations to the Board with respect to the adoption of, and amendments to, incentive compensation and equity-based plans, and where appropriate or required, recommend for approval by our stockholders, which includes the ability to adopt, amend and terminate such plans;

● administering our incentive and equity-based compensation plans, including designation of the employees to whom the awards are to be granted, the amount of the award or equity to be granted and the terms and conditions applicable to each award or grant, subject to the provisions of each plan;

● if required under Regulation S-K, reviewing our compensation discussion and analysis, discussing it with our management, and determining whether to recommend it for inclusion in our annual report or proxy statement and producing the report of the compensation committee;

● reviewing and making recommendations to the Board regarding any employment agreements and any severance arrangements or plans, including any benefits to be provided in connection with a change in control, for the CEO and other executive officers, which includes the ability to adopt, amend and terminate such agreements, arrangements or plans;

● reviewing our incentive compensation arrangements to determine whether they encourage excessive risk-taking, reviewing and discussing at least annually the relationship between risk management policies and practices and compensation, and evaluating compensation policies and practices that could mitigate any such risk; and

● reviewing all director compensation and benefits for service on the Board and committees thereof and recommending any changes to the Board, as necessary.

The compensation committee will consider the recommendations of the Chief Executive Officer when determining compensation for the other executive officers. Executive officers do not determine any element or component of their own pay package or total compensation amount. The Chief Executive Officer is not present for any discussions regarding his own compensation. The compensation committee retains sole authority to engage compensation consultants, including determining the nature and scope of services and approving the amount of compensation for those services, and legal counsel or other advisors. The compensation committee assesses the independence of any consultants pursuant to the rules and regulations of the SEC and [ ] rules. We will provide for appropriate funding, as determined by the compensation committee, for payment of any such investigations or studies and the compensation to any consulting firm, legal counsel or other advisors retained by the compensation committee.

***Nominating and Corporate Governance Committee***

The Company has elected not to establish as separate nominating and corporate governance committee, and instead intends to rely on a majority of its independent directors to discharge the responsibilities that would otherwise be assigned to such a committee.

The independent directors will meet from time to time to consider matters for which approval is desirable or is required by law. The duties of our independent directors in conjunction with matters relating to nominations and corporate governance include, but are not limited to:

● determining the qualifications, qualities, skills and other expertise required to be a director, and developing and recommending to the Board for its approval, criteria to be considered in selecting nominees for director;

● identifying, evaluating and making recommendations to the Board regarding nominees for election to the Board and its committees;

● developing and recommending to the Board a set of corporate governance guidelines, and reviewing these guidelines annually;

● developing, subject to approval by the Board, a process for an annual evaluation of the performance of the Board and its committees, and overseeing such evaluation; and

● developing and recommending to the Board for approval a Company code of conduct, and monitoring, investigating and enforcing the provisions of such code against any alleged violations.

*Guidelines for Selecting Director Nominees*

The independent directors will consider persons identified by stockholders, management, investment bankers and others, and will consider a number of qualifications relating to management and leadership experience, background and integrity and professionalism in evaluating a person's candidacy for membership on the Board. Certain skills or attributes, such as financial or accounting experience, may be required to meet specific board needs that arise from time to time. The overall experience and makeup of the members of the board will be considered in order to obtain a broad and diverse mix of board members.

The Board's objective is that its membership be comprised of a diverse group of experienced and dedicated individuals. Although there are no specific guidelines on diversity, it is one of many criteria to be considered when evaluating candidates. We have not established a written policy or any formal procedural requirements for stockholders to submit recommendations for director nominations. However, our independent directors will consider properly submitted recommendations for candidates to the Board from stockholders in accordance with our amended and restated bylaws. Stockholders should communicate nominee suggestions directly to one of our independent directors and accompany the recommendation with biographical details and a statement of support for the nominee. The suggested nominee must also provide a statement of consent to being considered for nomination. There have been no material changes to the procedures by which stockholders may recommend nominees to the Board.

**Board Oversight of Risk**

The Board's primary function is one of oversight. The Board as a whole works with our management team to promote and cultivate a corporate environment that incorporates enterprise-wide risk management into strategy and operations. Management periodically reports to the Board about the identification, assessment and management of critical risks and management's risk mitigation strategies. Each committee of the Board is responsible for the evaluation of elements of risk management based on the committee's expertise and applicable regulatory requirements. In evaluating risk, the Board and its committees consider whether our programs adequately identify material risks in a timely manner and implement appropriately responsive risk management strategies throughout the organization. The audit committee focuses on assessing and mitigating financial risk, including risk related to internal controls, and receives at least quarterly reports from management on identified risk areas. In setting compensation, the compensation committee strives to create incentives that encourage behavior consistent with our business strategy, without encouraging undue risk-taking. The nominating and corporate governance committee considers areas of potential risk within corporate governance and compliance. Each of the committees reports to the Board as a whole as to their findings with respect to the risks they are charged with assessing.

**Code of Ethics**

We adopted a code of ethics that applies to all of our directors, officers and employees. A copy of the code of ethics will publicly available upon the closing of this offering on our website at *www.exxelpharma.com*. We also intend to disclose future amendments to, or waivers of, its code of ethics, as and to the extent required by SEC regulations, on our website.

**Stockholder and Interested Party Communications**

Stockholders and interested parties may communicate with the Board, any committee or committee chairperson or the independent directors as a group by writing to the Board, committee, committee chairperson or independent directors in care of the Chairman of the Board at _________ Each communication will be forwarded, depending on the subject matter, to the Board, the appropriate committee or committee chairperson or all independent directors.

**Limitation on Liability and Indemnification of Directors and Officers**

The Colorado Business Corporations Act authorizes corporations to limit or eliminate, subject to certain conditions, the personal liability of directors to corporations and their stockholders for monetary damages for breach of their fiduciary duties. Our amended articles of incorporation and our Amended and Restated Bylaws both limit the liability of our directors to the fullest extent permitted by laws of the State of Colorado.

We have director and officer liability insurance to cover liabilities our directors and officers may incur in connection with their services to us, including matters arising under the Securities Act. Our amended articles of incorporation and Amended and Restated Bylaws also provide that we will indemnify our directors and officers to the fullest extent permitted by Colorado law. Our Amended and Restated Bylaws also further provide that we will indemnify any other person whom it has the power to indemnify under Delaware law. In addition, we have entered into customary indemnification agreements with each of our officers and directors.

There is no pending litigation or proceeding involving any of our directors, officers, employees or agents in which indemnification will be required or permitted. We are not aware of any threatened litigation or proceedings that may result in a claim for such indemnification.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, executive officers or persons controlling us, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**EXECUTIVE AND DIRECTOR COMPENSATION**

**Summary Compensation**

The following sets forth the compensation paid by us to our Named Executive Officers ("NEOs") during the fiscal years ended 2024 and 2023.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary <br> ($)** | **Bonus <br> ($)** | **Stock <br> Awards <br> ($)** | **Option <br> Awards <br> ($)** | **All Other <br> Compensation <br> ($)** | **Total <br> ($)** |
| Soren Mogelsvang, PhD | 2024 | 152000 | – |  | – |  | 152000 |
| &nbsp;&nbsp;&nbsp;*President and Chief Executive Officer*<sup>(1)</sup>* | 2023 | 150000 | – |  | – |  | 150000 |
| Daniele Piomelli, PhD, MD | 2024 | 25000 | – |  | – |  | 25000 |
| &nbsp;&nbsp;&nbsp;*Chief Scientific Officer*<sup>(2)</sup>* | 2023 | 30000 | – |  | – |  | 30000 |
| Richard Paul, MD | 2024 | 5000 | – |  | – |  | 5000 |
| &nbsp;&nbsp;&nbsp;*Chief Medical Officer*<sup>(3)</sup>* | 2023 | 12000 | – |  | – |  | 12000 |
| Robert Dickey IV | 2024 |  | – |  | – |  |  |
| &nbsp;&nbsp;&nbsp;*Chief Financial Officer*<sup>(4)</sup>* | 2023 |  | – |  | – |  |  |

---

(1) Mr. Mogelsvang has an annual base salary of $225,000; a
portion of this salary has been partially deferred to accommodate the Company's cash flow.

(2) Dr. Piomelli has monthly compensation of $2,500.

(3) Dr. Paul has monthly compensation of $2,500 but was on
leave from the Company for a portion of 2023 and 2024; he was not compensated during that time.

(4) Mr. Dickey was appointed in March 2025 and as such,
did not receive compensation from the Company during 2023 or 2024.

**Outstanding Equity Awards at Year-End**

The following table provides information on outstanding equity awards (option awards) as of December 31, 2024 to our NEOs.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Number of <br> securities <br> underlying <br> unexercised <br> options <br> exercisable<sup>(1)</sup>** | **Number of <br> securities <br> underlying <br> unexercised <br> options <br> unexercisable** | **Equity <br> incentive plan <br> awards: <br> Number of <br> securities <br> underlying <br> unexercised <br> unearned <br> options** | **Option <br> exercise <br> price** | **Option <br> expiration <br> date** |
| Soren Mogelsvang, PhD | 75000 |  |  | $1.25 | 06/05/29 |
| Daniele Piomelli, PhD, MD | 50000 |  |  | $1.25 | 06/05/29 |
| Richard Paul, MD | 5000 |  |  | $1.25 | 10/17/29 |
| Richard Paul, MD | 5000 |  |  | $2.50 | 09/15/32 |
| Robert Dickey IV |  |  |  |  |  |

---

(1) Options vested and became exercisable immediately upon date
of grant.

Currently, all outstanding options held by our executive officers and directors have been granted individually, rather than under any existing equity compensation plan. After the completion of this Offering, we plan to establish an equity compensation plan to benefit its executive officers, directors, and key employees.

*Employment Agreement — Soren Mogelsvang*

We entered into an employment services agreement with Soren Mogelsvang, our Chief Executive Officer, effective January 1, 2020. The agreement had an initial term of three years, ending December 31, 2022, with the possibility of renewal on an annual basis for successive one-year terms upon mutual agreement. Under the terms of the agreement, Dr. Mogelsvang receives an annual base salary of $225,000, which may be deferred in the event of cash flow constraints. He is also eligible for an annual bonus of up to 100% of his base salary, contingent upon achieving specified milestones, and may receive stock options and equity grants as determined by the Board of Directors.

The agreement includes various termination provisions. If Dr. Mogelsvang voluntarily resigns, he must provide 45 days' prior written notice. If we terminate his employment without cause, he is entitled to severance equal to 12 months of base salary and a pro-rata annual bonus if milestones are met; termination for cause does not entitle him to severance. We have agreed to indemnify Dr. Mogelsvang against losses, claims, damages, liabilities, and expenses related to the agreement and maintains an active Directors' and Officers' insurance policy covering him. The agreement also includes confidentiality and non-competition provisions.

*Consulting Agreement — Daniele Piomelli*

We entered into a consulting agreement with Daniele Piomelli, an independent contractor, effective June 1, 2018. Under this agreement, he provides advisory services to our board of directors and senior management, serves as our Chief Scientific Officer (CSO), and offers expertise on industry standards and trends. Under the terms of the agreement, Dr. Piomelli provides advice and consulting services as reasonably requested and performs duties to our satisfaction. The agreement remains in effect until terminated, with termination permitted for "Just Cause" or other reasons, subject to specific conditions for notice and compensation. As compensation for his services, Dr. Piomelli receives a monthly fee of US$2,000, payable on the first business day of each month.

Dr. Piomelli is required to maintain strict confidentiality regarding our proprietary information both during and after the term of the agreement. He must disclose any involvement with competing businesses and avoid conflicts of interest. As an independent contractor, he is not considered an employee and is responsible for his own taxes, indemnifying us against any related tax liabilities. If the agreement is terminated for Just Cause, no further payments or benefits will be provided beyond amounts due up to the termination date. If termination occurs for other reasons, the Consultant will receive notice or payment in lieu of notice equal to three months' fee plus one additional month for each year of service.

*Consulting Agreement — Richard Paul*

We entered into a consulting agreement with Richard Paul, MD, effective December 1, 2024. Under this agreement, Dr. Paul provides consulting services to us in exchange for a monthly cash fee of US$2,500, payable on the first business day of each month. The agreement has an initial term of two years, ending on December 1, 2026, and will automatically renew on a yearly basis thereafter unless terminated. The agreement is governed by the laws of the Province of British Columbia, Canada.

Under the terms of the agreement, Dr. Paul is engaged as an independent contractor and is not considered an employee. If terminated for Just Cause, we must provide 60 days' written notice, and Dr. Paul forfeits any payments or benefits beyond the termination date. If termination occurs for reasons other than Just Cause, we must provide a minimum of two months' paid notice. Upon termination, Dr. Paul must resign from all positions held within our company. Dr. Paul is required to maintain strict confidentiality regarding all proprietary and trade secret information disclosed to him.

*Consulting Agreement — Robert Dickey*

We entered into a consulting agreement with Foresite Advisors, LLC ("Foresite") effective April 11, 2025. Under this agreement, Foresite, through Robert Dickey IV, provides Chief Financial Officer services to us at an hourly rate of $300. The agreement has an initial term of one year, ending on April 11, 2026, with the possibility of extension by mutual written agreement. The agreement also provides for the issuance of 20,000 options with an exercise price of $1.25, vested equally over ten quarters.

Under the terms of the agreement, invoices for consulting services must be paid within 15 days of receipt. Consultant rates may increase annually by up to 4%, effective January 1 of each year. If terminated with cause, we must provide 30 days' prior written notice. If terminated without cause, either party must provide 60 days' prior written notice. Confidential information disclosed under this agreement remains our exclusive property, and Foresite must not disclose such information without prior written consent. These confidentiality provisions remain in effect for five years following the termination of the agreement.

**Director Compensation**

The following table provides information for the compensation of our employee and non-employee directors for the fiscal year ended December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Fees earned<br> or paid <br> in cash<br> ($)** | **Stock<br> Awards<br> ($)** | **Total<br> ($)** |
| Soren Mogelsvang, PhD<sup>(1)</sup> |  | – |  |
| Guy Yachin | 30000 | – | 30000 |

---

(1) Mr. Mogelsvang, the Company's President and CEO,
is compensated for his executive role but does not receive additional remuneration for his position on the Board of Directors.

Before the completion of this Offering, the Company's Board of Directors comprised two members, including the Company's President and CEO. Following the Offering, the Company plans to expand its Board by appointing three additional members and intends to implement a new compensation plan specifically for the independent directors.

**Clawback Provisions**

We intend to adopt a compensation recovery policy that is compliant with the [ ] rules, as required by the Dodd-Frank Act, to be effective upon the closing of this offering.

**CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS**

As of the date hereof, and at all times since January 1, 2024, there have been no transactions in which the registrant was a participant, in which (i) the amount involved exceeded or will exceed the lesser of $120,000 or one percent of the average of our total assets at year-end for the last two completed fiscal years; and (ii) any of our directors, executive officers or holders of more than 5% of our capital stock, or any affiliate or member of the immediate family of the foregoing persons, had or will have a direct or indirect material interest, other than compensation and other arrangements that are described under the section of this prospectus titled "Executive and Director Compensation."

**PRINCIPAL STOCKHOLDERS**

The following table sets forth information with respect to the beneficial ownership of our Common Stock as of June 30, 2025 by:

● each person, or group of affiliated persons, known by us to beneficially own more than 5% of our outstanding shares of Common Stock (other than NEOs and directors);

● each of our NEOs;

● each of our directors; and

● all of our executive officers and directors as a group.

The number of shares of Common Stock beneficially owned by each stockholder is determined in accordance with the rules issued by the SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Under these rules, beneficial ownership includes any shares as to which the individual or entity has sole or shared voting power or investment power, which includes the power to dispose of or to direct the disposition of such security. Except as indicated in the footnotes below, we believe, based on the information furnished to us, that the individuals and entities named in the table below have sole voting and investment power with respect to all shares of Common Stock beneficially owned by them, subject to any community property laws.

Percentage ownership of our Common Stock before this Offering is based on 4,599,327 shares of Common Stock outstanding as of June 30, 2025. In computing the number of shares beneficially owned by an individual or entity and the percentage ownership of that person, shares of Common Stock subject to options, restricted units, warrants or other rights held by such person that are currently exercisable or will become exercisable within 60 days of June 30, 2025 are considered outstanding, although these shares are not considered outstanding for purposes of computing the percentage ownership of any other person.

To calculate a stockholder's percentage of beneficial ownership of Common Stock, we must include in the numerator and denominator those shares of Common Stock, as well as those shares of Common Stock underlying options, warrants and convertible securities, that such stockholder is considered to beneficially own. Shares of Common Stock, Common Stock underlying options, warrants and convertible securities held by other stockholders, however, are disregarded in this calculation. Therefore, the denominator used in calculating beneficial ownership of each of the stockholders may be different.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Beneficial Ownership <br> Before the Offering <br> Common Stock** | **Beneficial Ownership <br> Before the Offering <br> Common Stock** | **Beneficial Ownership <br> After the Offering <br> Common Stock** | **Beneficial Ownership <br> After the Offering <br> Common Stock** |
| <br>**Name of Beneficial Owner** | **Shares** | **%** | **Shares** | **%** |
| **5% Stockholders:** | | | | |
| **Named Executive Officers and Directors:** |  |  |  |  |
| Soren Mogelsvang, PhD – President & CEO, Director<sup>(1)</sup> | 1150000 | 24.60% | 1150000 | 16.77% |
| Daniele Piomelli, PhD, MD – CSO<sup>(2)</sup> | 400000 | 8.60% | 400000 | 5.86% |
| Richard Paul, MD – CMO<sup>(3)</sup> | 10000 | \* | 10000 | \* |
| Robert Dickey IV – CFO |  |  |  |  |
| Guy Yachin – Director<sup>(4)</sup> | 225000 | 4.66% | 225000 | 3.21% |
| Nitin Kaushal – Director<sup>(5)</sup> | 20000 | \* | 20000 | \* |
| **All directors and executive officers as a group (6 persons)** | 1805000 | 36.25% | 1805000 | 25.21% |

---

(1) Includes 1,075,000 common shares and 75,000 shares subject to
options that are currently exercisable.

(2) Includes 350,000 common shares and 50,000 shares subject to
options that are currently exercisable.

(3) Includes 10,000 shares subject to options that are currently
exercisable.

(4) Includes 225,000 shares subject to options that are currently
exercisable.

(5) Includes 20,000 shares subject to options that are currently
exercisable.

\* Indicates the applicable percentage is less than one percent.

**DESCRIPTION OF CAPITAL STOCK**

**General**

The following description summarizes some of the terms of our amended and restated certificate of incorporation and of the Colorado Business Corporations Act. Because it is only a summary, it does not contain all the information that may be important to you. For a complete description, you should refer to our amended and restated certificate of incorporation which has been filed as exhibits to the registration statement of which this prospectus is part.

Our authorized capital stock consists of 250,000,000 shares of common stock without par value and 10,000,000 shares of preferred stock without par value.

**Outstanding Shares**

As of September 19, 2025, there were 4,599,327 shares of our common stock and no shares of our preferred stock issued and outstanding, The number of shares of common stock outstanding does not include the shares issuable under our warrants, options, equity awards and plans, and other contractual rights to acquire common stock, as described below.

***Voting Rights***

Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders, including the election of directors, and do not have cumulative voting rights. Accordingly, the holders of a majority of the outstanding shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they so choose. At any meeting of the shareholders at which a quorum is present, approval of any resolution presented to the shareholders for a approval will require the affirmative vote of a majority of the votes cast on the matter. A quorum will be present for such purposes if not less than one-third of the votes entitled to be cast on a matter are represented in person, by the use of telecommunications or by proxy. Our Amended and Restated Bylaws also provide that our directors may be removed by the shareholders, with or without cause, at a meeting called expressly for that purpose, if the number of votes cast in favor of removal exceeds the number cast against removal by a vote of the holders of shares currently entitled to vote at an election of directors.

***Dividends***

The holders of our common stock are entitled to receive dividends, if and when declared by our board of directors out of funds legally available therefor.

***Liquidation***

In the event of a liquidation, dissolution or winding up, our stockholders will be entitled to share ratably in all assets remaining available for distribution to them after payment of liabilities and after provision is made for each class of stock, if any, having preference over the common stock.

***Rights, Preferences and Privileges***

Holders of our common stock have no conversion, pre-emptive or other subscription rights, and there are no sinking fund or redemption provisions applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue in the future.

***Fully Paid and Nonassessable***

All of our outstanding shares of common stock are fully paid and nonassessable.

**SHARES ELIGIBLE FOR FUTURE SALE**

As of the date of this prospectus, there is no public market for our common stock. We have applied to have our shares listed on the OTCQB and believe we meet the eligibility requirements for such a listing. However, even if our shares are approved for trading on the OTCQB, there is no assurance that a liquid trading market for our common stock will develop or be sustained. Future sales of our common stock, in the public market, or the perception that those sales may occur, could adversely affect the prevailing market price for our common stock from time to time or impair our ability to raise equity capital in the future. As described below, other than the shares held by the selling shareholders which are referenced in this prospectus, only a limited number of shares of our common stock will be available for sale in any public market which develops for our shares for a period of several months after the date hereof due to contractual and legal restrictions on resale described below. Future sales of our common stock in any such public market either before or after restrictions lapse, or the perception that those sales may occur, could adversely affect the prevailing market price of our common stock at such time and our ability to raise equity capital at a time and price we deem appropriate.

**Sale of Restricted Shares**

As of the date of this prospectus, we have a total of 4,599,327 shares of common stock issued and outstanding. Of these shares, only the shares held by the selling shareholders and referenced in this prospectus will be freely tradable iwithout restriction or further registration under the Securities Act, in any public market which may develop for our shares. All remaining shares of common stock held by existing stockholders as of the date of this prospectus will be "restricted securities," as such term is defined in Rule 144. These restricted securities were issued and sold by us in private transactions and are eligible for public sale only if registered under the Securities Act or if they qualify for an exemption from registration under the Securities Act, including the exemption provided by Rule 144 which rule is summarized below.

As a result of the provisions of Rule 144 under the Securities Act, based on the number of shares of our common stock outstanding as of the date of this prospectus, the shares of our common stock (excluding the shares referenced in this prospectus) that will be available for sale in the public market are as follows:

---

| | |
|:---|:---|
| **Approximate Number of Shares** | **First Date Available For Sale Into Public Market** |
| 4,281,894 shares | 181 days after the date of this prospectus, subject to applicable volume, manner of sale and other limitations under Rule 144, and subject to potential restrictions on sale under the terms of applicable Lock-Up Agreements (See "Lock-Up Agreements below). |

---

**Rule 144**

In general, persons who have beneficially owned restricted shares of our common stock for at least six months, and any affiliate of the company who owns shares of our common stock, are entitled to sell their securities without registration with the SEC under an exemption from registration provided by Rule 144. Under Rule 144, as currently in effect, once we have been subject to the public company reporting requirements of the Exchange Act for at least 90 days, and we are current in our Exchange Act reporting at the time of sale, a person (or persons whose shares are required to be aggregated) who is not deemed to have been one of our "affiliates" for purposes of Rule 144 at any time during the 90 days preceding a sale and who has beneficially owned restricted securities within the meaning of Rule 144 for at least six months, including the holding period of any prior owner other than one of our "affiliates," is entitled to sell those shares in the public market (subject to the lock-up agreement referred to below, if applicable) without complying with the manner of sale, volume limitations or notice provisions of Rule 144, but subject to compliance with the public information requirements of Rule 144. If such a person has beneficially owned the shares proposed to be sold for at least 12 months, including the holding period of any prior owner other than "affiliates," then such person is entitled to sell such shares in the public market without complying with any of the requirements of Rule 144 (subject to the lock-up agreement referred to above, if applicable).

In general, under Rule 144, as currently in effect, once we have been subject to the public company reporting requirements of the Exchange Act for at least 90 days, our "affiliates," as defined in Rule 144, who have beneficially owned the shares proposed to be sold for at least six months, are entitled to sell in the public market, upon expiration of any applicable lock-up agreements and within any three-month period, a number of those shares of our common stock that does not exceed the greater of:

● 1% of the number of shares of common stock then outstanding, which will equal approximately 67,832 shares of common stock immediately upon the closing of this offering (calculated as of March 31, 2025 on the basis of the assumptions described above and assuming no exercise of the underwriters' over-allotment option, if any, and no exercise of outstanding options); or

● the average weekly trading volume of our common stock on the OTCQX® Best Market or the OTCQB® Venture Market during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale

Such sales under Rule 144 by our "affiliates" or persons selling shares on behalf of our "affiliates" are also subject to certain manner of sale provisions, notice requirements and to the availability of current public information about us. Notwithstanding the future potential availability of Rule 144, our directors and executive officers have entered into lock-up agreements as referenced above and their restricted securities will not become eligible for sale (subject to the above limitations under Rule 144) until the expiration of the restrictions set forth in those agreements.

**Lock-Up Agreements**

In connection with the Company's private placement offerings of convertible notes to accredited investors conducted through placement agent, our directors, our executive officers and holders of more than 5% of our of our other outstanding shares of common stock, have agreed, subject to certain limited exceptions, with the placement agent not to directly or indirectly offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of or hedge any shares of our common stock or any options to purchase shares of our common stock, or any securities convertible into or exchangeable for shares of common stock during the period from the date of the lock-up agreement continuing through and including the date 180 days after the earlier of the direct listing of the Company's shares on a national securities exchange, or the completion of an initial public offering or follow-on offering on a national securities exchange of not less than $5,000,000, except with the prior written consent of the representatives of the placement agent, and certain other limited exceptions.

**PLAN OF DISTRIBUTION**

Each selling shareholder of the securities and any of their permitted transferees, pledgees, assignees, distributes donees or successors-in-interest may, from time to time, sell any or all of their securities covered hereby on the principal trading market, if any, or any other stock exchange, market or trading facility on which the securities are traded, or in private transactions. These sales may be at fixed or negotiated prices. A selling shareholder may use any one or more of the following methods when selling securities.

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● settlement of short sales;

● in transactions through broker-dealers that agree with the selling shareholders to sell a specified number of such securities at a stipulated price per share;

● through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

● a combination of any such methods of sale; or

● any other method permitted pursuant to applicable law.

The selling shareholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933, if available, rather than under this prospectus.

Broker-dealers engaged by the selling shareholders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling shareholders (or, if any broker-dealer acts as agent for the purchaser of the securities, then from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction, not in excess of a customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction, a markup or markdown in compliance with FINRA Rule 2121.

In connection with the sale of the securities or interests therein, the selling shareholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The selling shareholders may also sell securities short and deliver these securities to close out their shorts positions, or loan or pledge the securities to broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

The selling shareholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profits on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each selling shareholder has advised the Company that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the securities.

The Company is required to pay certain fees and expenses it incurred incident to the registration of the securities. The Company has agreed to indemnify the selling shareholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

We agreed to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the selling shareholders without registration and without regard to any volume or manner-of-sale limitations pursuant to Rule 144, without the requirement for the Company to be in compliance with the current public information requirements under Rule 144, or any other rule of similar effect, or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other fule of similar effect. The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and complied with,

Under applicable rules and regulations under the Securities Exchange Act of 1934, any person engaged in the distribution of the resale securities may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the selling shareholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the common stock by the selling shareholders or any other person. We will make copies of this prospectus available to the selling shareholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

**LEGAL MATTERS**

The validity of the securities offered by this prospectus will be passed upon for us by Frascona, Joiner, Goodman & Greenstein, P.C, Boulder, Colorado.

**EXPERTS**

The consolidated financial statements of Exxel Pharma Inc., as of December 31, 2024 and 2023, and for each of the two years in the period ended December 31, 2024, included in this Prospectus and Registration Statement on Form S-1 have been audited by dbb*mckennon*, an independent registered public accounting firm, as stated in their report (which contains an explanatory paragraph relating to the Company's ability to continue as a going concern), which is included herein. Such consolidated financial statements have been so included in reliance upon the report of such firm given upon their authority as experts in auditing and accounting.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC a registration statement on Form S-1, including exhibits and schedules, under the Securities Act, with respect to the shares of common stock being offered by this prospectus. This prospectus, which constitutes part of the registration statement, does not contain all of the information in the registration statement and its exhibits. For further information with respect to us and the common stock offered by this prospectus, we refer you to the registration statement and its exhibits. Statements contained in this prospectus as to the contents of any contract or any other document referred to are not necessarily complete, and in each instance, we refer you to the copy of the contract or other document filed as an exhibit to the registration statement. Each of these statements is qualified in all respects by this reference.

You may read our SEC filings, including this registration statement, over the Internet at the SEC's website at *www.sec.gov*. Upon the closing of this offering, we will be subject to the information reporting requirements of the Exchange Act and we will file reports, proxy statements and other information with the SEC. These reports, proxy statements and other information will be available for review on the web site of the SEC referred to above. We also maintain a website at *www.exxelpharma.com*, at which, following the completion of this offering, you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on or accessible through our website is not a part of this prospectus or the registration statement of which it forms a part, and the inclusion of our website address in this prospectus is an inactive textual reference only.

**EXXEL PHARMA INC.<br> Consolidated Financial Statements for the Years Ended December 31, 2024 and 2023**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm (PCAOB ID: #3501)](#f_001) | F-2 |
| Financial Statements: |  |
| [Consolidated Balance Sheets as of December 31, 2024 and 2023](#f_002) | F-3 |
| [Consolidated Statements of Operations for the Years Ended December 31, 2024 and 2023](#f_003) | F-4 |
| [Consolidated Statements of Stockholders' Deficit for the Years Ended December 31, 2024 and 2023](#f_004) | F-5 |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2023](#f_005) | F-6 |
| [Notes to Financial Statements](#f_006) | F-7 |

---

**EXXEL PHARMA INC.<br> Condensed Consolidated Financial Statements for the Six Months Ended June 30, 2025 and 2024<br> (Unaudited)**

---

| | |
|:---|:---|
|  | **Page** |
| [Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](#f_007) | F-18 |
| [Condensed Consolidated Statements of Operations for the Six Months Ended June 30, 2025 and 2024](#f_008) | F-19 |
| [Condensed Consolidated Statements of Stockholders' Deficit for the Six Months Ended June 30, 2025 and 2024](#f_009) | F-20 |
| [Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024](#f_010) | F-21 |
| [Notes to the Condensed Consolidated Financial Statements](#f_011) | F-22 |

---

**Report of Independent Registered Public Accounting Firm**

To the Board of Directors and<br> Stockholders of Exxel Pharma Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Exxel Pharma Inc. (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of operations, stockholders' deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern**

The accompanying financial statements have been prepared assuming that the entity will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has sustained losses, has a working capital deficiency, and requires additional capital to operate, which raises substantial doubt about its ability to continue as a going concern. Management's plans in regards to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ dbbmckennon

Newport Beach, California<br> May 7, 2025<br> We have served as the Company's auditor since 2025

**EXXEL PHARMA INC.<br> CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31, <br> 2023** |
| **ASSETS** | | |
| **Current assets:** | | |
| &nbsp;&nbsp;&nbsp;Cash | $444196 | $239129 |
| &nbsp;&nbsp;&nbsp;Tax receivable | 50669 | 56348 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 11414 | 4525 |
| **Total current assets** | 506279 | 300002 |
| **Total assets** | $506279 | $300002 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $224819 | $286651 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 891764 | 869839 |
| &nbsp;&nbsp;&nbsp;Derivative liability | 22000 |  |
| &nbsp;&nbsp;&nbsp;Convertible debenture, net | 514175 |  |
| &nbsp;&nbsp;&nbsp;**Total current liabilities** | 1652758 | 1156490 |
| **Total liabilities** | $1652758 | $1156490 |
| Commitments and Contingencies (Note 7) |  |  |
| **Stockholders' Deficit:** |  |  |
| Common stock, no par value; 250,000,000 shares authorized; 4,599,327 and 4,493,327 shares issued and outstanding at December 31, 2024 and 2023, respectively |  |  |
| Additional paid-in capital | 2909585 | 2783538 |
| Accumulated other comprehensive loss | (45463) | (38596) |
| Accumulated deficit | (4010601) | (3601430) |
| **Total stockholders' deficit** | (1146479) | (856488) |
| **Total liabilities and stockholders' deficit** | $506279 | $300002 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**EXXEL PHARMA INC.<br> CONSOLIDATED STATEMENT OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended <br> December 31,** | **For the Years Ended <br> December 31,** |
|  | **2024** | **2023** |
| **Revenue** | $225000 | $100000 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 89178 | 98504 |
| &nbsp;&nbsp;&nbsp;General and administrative | 511564 | 422115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 600742 | 520619 |
| **Loss from operations** | (375742) | (420619) |
| Other expense: |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (31079) |  |
| &nbsp;&nbsp;&nbsp;Loss on foreign currency transactions | (2350) | (9479) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (33429) | (9479) |
| Net loss before income taxes | (409171) | (430098) |
| Provision for income taxes |  |  |
| **Net loss** | $(409171) | $(430098) |
| Weighted average number of common shares outstanding, basic and diluted | 4516808 | 4493327 |
| Basic and diluted net loss per common share | $(0.09) | $(0.10) |
| Comprehensive loss: |  |  |
| Net loss | (409171) | (430098) |
| Foreign currency translation adjustment | (6867) | (3739) |
| Comprehensive loss | $(416038) | $(433837) |

---

The accompanying notes are an integral part of these consolidated financial statements.

**EXXEL PHARMA INC.<br> CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated <br> Other<br> Comprehensive**<br>**Loss** | **Accumulated**<br>**Deficit** | **Total<br> Stockholders'**<br>**Deficit** |
| **Balance at December 31, 2022** | 4493327 | $— | $2779219 | $(34857) | $(3171332) | $(426970) |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation |  |  |  | (3739) |  | (3739) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 4319 |  |  | 4319 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (430098) | (430098) |
| **Balance at December 31, 2023** | 4493327 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $2783538 | $(38596) | $(3601430) | $(856488) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated <br> Other<br> Comprehensive**<br>**Loss** | **Accumulated**<br>**Deficit** | **Total<br> Stockholders'**<br>**Deficit** |
| **Balance at December 31, 2023** | 4493327 | $— | $2783538 | $(38596) | $(3601430) | $(856488) |
| &nbsp;&nbsp;&nbsp;Issuance of common shares upon exercise of warrants | 76000 |  | 69797 |  |  | 69797 |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation |  |  |  | (6867) |  | (6867) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 30000 |  | 56250 |  |  | 56250 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (409171) | (409171) |
| **Balance at December 31, 2024** | 4599327 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | 2909585 | (45463) | (4010601) | $(1146479) |

---

The accompanying notes are an integral part of these consolidated financial statements.

**EXXEL PHARMA INC.<br> CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended<br> December 31,** | **For the Years Ended<br> December 31,** |
|  | **2024** | **2023** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(409171) | $(430098) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 56250 | 4319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction loss | 2350 | 9479 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 31175 |  |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax receivable | 5679 | (55771) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (6889) | (4525) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (61832) | 68497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 21925 | 8341 |
| &nbsp;&nbsp;&nbsp;Net cash used in operating activities | (360513) | (399758) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the issuance of shares | 69797 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the issuance of convertible debenture | 505000 |  |
| &nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 574797 |  |
| Effect of foreign currency exchange rate on cash | (9217) | (13218) |
| **NET CHANGE IN CASH** | 205067 | (412976) |
| &nbsp;&nbsp;&nbsp;Cash – Beginning of year | 239129 | 652105 |
| &nbsp;&nbsp;&nbsp;Cash – End of year | $444196 | $239129 |
| **Supplemental disclosures of cash transactions:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid during the year for interest | $— | $— |
| &nbsp;&nbsp;&nbsp;Cash paid during the year for income taxes | $— | $— |
| **Non-cash financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Derivative liability in connection with convertible debenture | $22000 | $— |

---

The accompanying notes are an integral part of these consolidated financial statements.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

**NOTE 1 — NATURE OF THE ORGANIZATION AND BUSINESS**

*Corporate History*

Exxel Pharma Inc. ("Exxel Pharma U.S.") is a biopharmaceutical company that was incorporated in the state of Colorado on June 30, 2018, as Aspire BioScience, Inc., and changed its name to Exxel Pharma Inc. on March 25, 2025. Exxel Pharma U.S. was originally formed as a wholly-owned subsidiary of Exxel Pharma Inc., an entity incorporated in British Columbia, Canada on June 20, 2017 ("Exxel Pharma Canada"). Exxel Pharma U.S. also operates Exxel Pharma Australia Pty Ltd., a wholly-owned Australian subsidiary under Exxel Pharma Canada, that was incorporated on January 12, 2023 ("Exxel Pharma Australia").

Effective as of March 18, 2025, Exxel Pharma U.S., Exxel Pharma Canada, and each of the shareholders of Exxel Pharma Canada entered into a Securities Exchange Agreement (the "Exchange Agreement") whereby the shareholders of Exxel Pharma Canada, constituting 100% of the registered and beneficial owners of the capital stock of Exxel Pharma Canada, agreed to transfer to Exxel Pharma U.S., 100% of the right, title and interest in and to all of the shareholders' shares, options and warrants in Exxel Pharma Canada (collectively, the "Securities") in exchange for equivalent Securities of Exxel Pharma U.S.

The share exchange transaction between Exxel Pharma U.S., Exxel Pharma Canada and the shareholders of Exxel Pharma Canada was completed on April 1, 2025, based upon a 1-for-10 exchange ratio. Accordingly, in the exchange transaction, all of the persons who had been shareholders of Exxel Pharma Canada exchanged their Securities in that company on a 1-for-10 basis for equivalent Securities of Exxel Pharma U.S. The effect of completion of the share exchange transaction was to invert the relationship between Exxel Pharma U.S. and Exxel Pharma Canada, such that Exxel Pharma U.S., which had previously been the wholly-owned subsidiary of Exxel Pharma Canada, became the parent company, and Exxel Pharma Canada became the wholly-owned subsidiary of Exxel Pharma U.S.

Exxel Pharma U.S., Exxel Pharma Canada and Exxel Pharma Australia are hereinafter collectively referred to as the "Company," "Exxel Pharma Inc.," "We," "Our," or "Us." The Company's principal executive offices are located at 12635 E. Montview Blvd, Suite 134, Aurora, Colorado 80045.

*Business Overview*

The Company's focus is on developing innovative therapeutics for neuronal hypersensitivity disorders, and its lead program, EX937, is a novel, orally administered, proprietary small molecule designed to specifically and peripherally inhibit the fatty acid amide hydrolase (FAAH) enzyme. In addition to EX937, the Company is advancing its ARN compounds, a second lead program targeting social anxiety disorder and autism spectrum disorder.

**NOTE 2 — BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Basis of Presentation*

The accompanying audited consolidated financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities Exchange Commission ("SEC"). These consolidated financial statements are presented in U.S. Dollars. The Company's fiscal year end date is December 31.

Subsequent to year-end, certain significant organizational and financial restructuring events occurred, including the execution of a Securities Exchange Agreement on March 18, 2025, and the implementation of a 1-for-10 exchange ratio for securities effective April 1, 2025 (Note 1). Such an exchange reduced the number of outstanding shares from 45,993,268 to 4,599,327; as a result, all share and per-share amounts in the accompanying financial statements and footnotes have been retroactively adjusted to reflect the reverse stock split for all periods presented. The reverse stock split did not impact total stockholders' deficit, but the earnings per share ("EPS") calculations have been revised to reflect the new share count in accordance with Accounting Standards Codification ("ASC") 260 — EPS.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

Management has retroactively included disclosures of these subsequent events in the notes to the financial statements to provide users with a comprehensive understanding of material changes to the Company's structure and equity subsequent to December 31, 2024. These disclosures are intended to reflect the impact and significance of these events as they relate to the Company's operations and financial reporting.

*Principles of Consolidation*

The consolidated financial statements include the consolidated accounts of Exxel Pharma U.S., Exxel Pharma Canada and Exxel Pharma Australia. All intercompany transactions and balances have been eliminated in consolidation.

*Use of Estimates*

The consolidated financial statements have been prepared in accordance with U.S. GAAP and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for the valuation of debt and equity-based transactions and stock-based compensation expense.

*Foreign Currency Translation*

The Company's reporting currency is the United States ("U.S.") dollar. The functional currency of certain entities is the Canadian Dollar ("CAD") or the Australian Dollar ("AUD"). Assets and liabilities are translated based on the exchange rates at the balance sheet date, while expense accounts are translated at the weighted average exchange rate for the period. Equity accounts are translated at historical exchange rates. The resulting translation adjustments are recognized in stockholders' deficit as a component of accumulated other comprehensive income.

Comprehensive loss is defined as the change in equity of an entity from all sources other than investments by owners or distributions to owners and includes foreign currency translation adjustments as described above. During the years ended December 31, 2024 and 2023, the Company recorded other comprehensive loss of $6,867 and $3,739, respectively, as a result of foreign currency translation adjustments.

Foreign currency gains and losses resulting from transactions denominated in foreign currencies, including intercompany transactions, are included in the results of operations. The Company recorded $2,350 and $9,479 of foreign currency transaction losses for the years ended December 31, 2024 and 2023, respectively. Such amounts have been classified within other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss.

*Cash and Cash Equivalents*

Cash and cash equivalents include time deposits and other investments that are highly liquid with original maturities of three months or less when purchased. As of December 31, 2024 and 2023, the Company does not hold any cash equivalents.

The Company may maintain bank balances in excess of $250,000, which is currently the maximum amount insured by the Federal Deposit Insurance Corporation ("FDIC") for interest bearing accounts. The Company has not experienced any losses with respect to cash. Management believes the Company is not exposed to any significant credit risk with respect to its cash.

*Convertible Instruments*

U.S. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional as that term is described under applicable U.S. GAAP.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

*Fair Value Measurement*

The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 "Fair Value Measurements" ("ASC 820"), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

● Level 1 — Quoted prices in active markets for identical assets or liabilities;

● Level 2 — Quoted prices for similar assets and liabilities in active markets or inputs that are observable; and

● Level 3 — Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions).

As of December 31, 2024, the Company holds a Level 3 financial instrument, specifically a derivative liability associated with an embedded redemption feature. Additional details regarding this instrument can be found in Note 5.

*Revenue Recognition*

Revenue is accounted for in accordance with ASC 606 *— Revenue from Contracts with Customers* ("ASC 606"). Revenue is recognized as control of goods and/or services are transferred to customers in an amount that reflects the consideration an entity expects to receive in exchange for the goods and/or services; see Note 8 for additional information.

*Offering Costs*

The Company capitalizes offering costs incurred in connection with the issuance of equity securities. These costs primarily include legal, accounting, and underwriting fees. Offering costs are recorded as a reduction of the proceeds from the issuance of equity securities and are presented as a deduction from additional paid-in capital in the consolidated balance sheets. If the offering is not completed, the costs are expensed as incurred.

*General and Administrative Expenses*

General and administrative expenses consist of compensation, legal and professional fees, administrative expenses and stock-based compensation of employees, as well as travel expenses and general office expenses.

*Income Taxes*

The Company follows the asset and liability method of accounting for income taxes under ASC 740 — *Income Taxes* ("ASC 740"). Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that is included in the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2024 and 2023. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

*Stock-Based Compensation*

Per the guidance in ASC 718, *Compensation — Stock Compensation* ("ASC 718"), the Company measures stock-based compensation expense related to awards to employees at the grant date based on the fair value of the award. The fair value of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. Forfeitures of awards are recognized as a component of compensation cost as they occur.

The Company uses the Black-Scholes option model as the method for determining the estimated fair value of stock-based awards. Refer to Note 9 for more information on assumptions used in estimated stock-based compensation expense.

*Net Loss per Share*

Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding, plus the number of additional common shares that would have been outstanding if the common share equivalents had been issued (computed using the treasury stock or if converted method), if dilutive.

Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of December 31, 2024 and 2023, diluted net loss per share is the same as basic net loss per share for each year. Dilutive instruments include stock options, convertible debt and warrants (see Note 9); as of December 31, 2024, the number of shares to which the convertible debt may convert to is indeterminable.

*Recent Issued Accounting Pronouncements*

The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the "JOBS Act"), the Company meets the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

In June 2022, FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): *Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,* which amends ASC 820 (fair value measurement) to clarify that contractual sale restrictions are not considered in measuring the fair value of equity securities, therefore changing practice for certain entities. The ASU also indicates that a contractual sale restriction is not a separate unit of account and requires new disclosures for all entities with equity securities subject to a contractual sale restriction. The key impacts of the amendments to ASC 820 are i) to clarify that contractual sale restrictions are not considered in measuring an equity security at fair value, ii) to indicate that an entity cannot recognize a contractual sale restriction as a separate unit of account (i.e. as a contra-asset or separate liability), iii) to require new disclosures for all entities with equity securities subject to a contractual sale restriction and iv) to provide different transition requirements for investment companies compared to all other entities. This standard is effective for fiscal years beginning after December 15, 2024. The Company does not expect this standard to have a material impact on the Company's consolidated financial statements.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

In October 2023, the FASB issued ASU 2023-06, *Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative,* which incorporates into the Codification several disclosures and presentation requirements currently residing in SEC Regulations S-X and S-K. As a result, the ASU is not expected to significantly affect entities currently subject to these SEC requirements. However, certain disclosures currently presented outside the financial statements as a result of Regulation S-K may need to be relocated into the financial statements. Conversely, the ASU adds requirements for private and not-for-profit entities, including new disclosures about i) the accounting policy for presentation of derivative instruments and their related gains and losses in the statement of cash flows, ii) assets mortgaged, pledged or subject to lien and the obligations collateralized, iii) amounts and terms of unused lines of credit and unfunded commitments, iv) material prior-period adjustments and the effect on retained earnings when there has been a change in reporting entity in interim period financial statements and v) repurchase and reverse repurchase agreements. Disclosure of the weighted-average interest rates on short-term borrowings and repurchase liabilities is required only for public business entities. The amendments in ASU 2023-06 will become effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. We are currently evaluating the impact of ASU 2023-06 on its consolidated financial statements and disclosures. The Company does not expect this standard to have a material impact on the Company's consolidated financial statements.

On November 27, 2023, the FASB issued ASU 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*. The amendments were designed to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable investors to better understand an entity's overall performance and assess potential future cash flows. The ASU applies to all public entities that are required to report segment information in accordance with ASC 280 and is effective for fiscal years beginning after December 15, 2023; for all other entities, the ASU is effective for fiscal years beginning after December 15, 2024. The Company has elected to early adopt ASU 2023-07 for its financial statements dated December 31, 2024 and 2023, with no material effect.

On December 14, 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The ASU focuses on income tax disclosures around effective tax rates and cash income taxes paid. ASU 2023-09 largely follows the proposed ASU issued earlier in 2023 with several important modifications and clarifications discussed below. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024 (generally, calendar year 2025) and effective for all other business entities one year later. Entities should adopt this guidance on a prospective basis, though retrospective application is permitted. The Company does not expect this standard to have a material impact on the Company's consolidated financial statements.

**NOTE 3 — GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS**

As of December 31, 2024, the Company had $444,196 in its operating bank account and a working capital deficiency of $1,146,479. To date, the Company has been funding operations from capital raises; the Company's ability to continue as a going concern is dependent on its ability to comply with the covenants in its existing convertible debenture agreement and the ability to successfully complete a qualified financing, event or initial public offering ("IPO"). Despite the Company's positive outlook for future capital raises and the Company's current operations and expectations for growth, it believes that cash generated from operating activities will not be adequate to meet current and future expected operating needs, anticipated capital investment and debt service obligations for the next twelve months.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

The accompanying consolidated financial statements have been prepared on the basis that the Company will continue as a going concern over the next twelve months from the date of issuance of these consolidated financial statements, which assumes the realization of assets and the satisfaction of liabilities in the normal course of business. As of December 31, 2024, the Company has an accumulated deficit of $4,010,601 and has experienced losses from continuing operations. Based on the Company's cash balance as of December 31, 2024 and projected cash needs for the twelve months following the issuance of these consolidated financial statements, management estimates that it will need to rely upon successful capital raises through equity and debt financings to cover operating and capital requirements. Although management has been successful to date in raising necessary funding and obtaining financing through investors, there can be no assurance that any required future financing can be successfully completed on a timely basis, on terms acceptable to the Company, or at all. Based on these circumstances, management has determined that these conditions raise substantial doubt about the Company's ability to continue as a going concern for the twelve months following the issuance of these consolidated financial statements.

Accordingly, the accompanying consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and the satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**NOTE 4 — ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES**

The Company's accrued expenses and other current liabilities included the following as of December 31:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Deferred bonuses | $500000 | $500000 |
| Deferred compensation | 331667 | 331667 |
| Other accruals | 60097 | 38172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accrued expenses and other current liabilities | $891764 | $869839 |

---

**NOTE 5 — CONVERTIBLE DEBENTURE**

The Company's loans payable, current included the following as of December 31:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Convertible debenture, net | $514175 | $— |
| Total | $514175 | $— |

---

On November 19, 2024, the Company entered into a Securities Purchase Agreement ("SPA") with one Purchaser; the SPA includes a Senior Secured Convertible Debenture with a purchaser for an aggregate principal amount of $675,000, an original issue discount ("OID") of 12.5% or $75,000 and warrants to purchase common shares for no additional consideration. Such warrants will equal 75% of the original principal amount divided by the offering price of the Company's common shares in its first Qualified Financing or Event after the initial issuance date and will be exercisable into one common share at a price of $0.10 per share for a period of thirty-six months after the closing date of such Event. The Convertible Debenture matures on August 19, 2025 (with an option to extend the maturity for an additional three-month period) and bears no interest. On the maturity date, the Company will pay the purchaser all the unconverted and outstanding principal in cash; it also has the option to pre-pay the Debenture at any time at an amount equal to 110% of the face amount. If the Company decides to extend the maturity date, the OID on the Debenture will increase to 18%.

The full balance of the Debenture will automatically convert into shares ninety days after a qualified financing or event at a price/share which is the lower of (i) 75% of the price at which the Debentures would have been converted at closing of the qualified financing or event and (ii) a 25% discount to the five-day VWAP of the common shares prior to the date that is ninety days after the qualified financing or event, which shall be subject to a conversion floor price of $10.00. The number of conversion shares that the Company issues will equal the quotient (rounded up to the nearest whole share) obtained by dividing (x) the unconverted and outstanding principal balance on a date that is no more than five calendar days prior to the closing of the qualified financing or event, by (y) the applicable conversion price.

At any time prior to a mandatory conversion (as described above) or the full satisfaction of the outstanding principal balance, the Purchaser may convert the full balance into common shares, the number of which will equal the quotient (rounded up to the nearest whole share) obtained by dividing (x) the unconverted and outstanding principal balance on the date of conversion by (y) the applicable conversion price. For a voluntary conversion (as just described), the conversion price will be equal to the quotient resulting from dividing (x) $25,000,000 by (y) the Fully Diluted Capitalization immediately prior to such conversion; if the Debenture is in default pursuant to Section 7, then 50% of such Voluntary Conversion Price.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

The Company identified an embedded redemption feature within its convertible debenture that qualifies as a derivative under ASC 815, *Derivatives and Hedging*. The derivative liability was initially recognized at fair value upon issuance on November 19, 2024, and is remeasured at each reporting date, with changes in fair value recorded in the statement of operations. The fair value is determined using the Differential Valuation Approach, comparing the debenture's value with and without the redemption feature. A probability of 10% was applied to the successful consummation of a Qualified Financing or Event at issuance and as of December 31, 2024. The derivative liability's fair value was $22,000 both at issuance and at the end of the reporting period, with no changes in fair value recorded as of December 31, 2024.

The Company classified the convertible debenture as a current liability with a principal amount of $675,000. The debenture included an OID of $75,000, a debt discount of $95,000 related to issuance costs, and an additional debt discount of $22,000 attributed to the derivative liability. As of December 31, 2024, the net carrying amount was $514,175. For the year ended December 31, 2024, the Company recognized noncash interest expense of $26,526 and imputed interest expense of $4,649 (at an eight percent rate) related to the amortization of debt discounts, with remaining unamortized debt discounts totaling $165,474 as of December 31, 2024.

**NOTE 6 — SEGMENTS**

The Company currently operates as one business segment, which is also the sole reportable segment, focusing on developing innovative therapeutics for neuronal hypersensitivity disorders. The Company's lead program, EX937, is a novel, orally administered small molecule designed to treat refractory chronic cough, a condition with no FDA-approved treatments. The Company's business offerings have similar economic and other characteristics, including the nature of services, products, and types of customers.

The Chief Operating Decision Maker ("CODM"), who is the Company's Chief Executive Officer and President, evaluates segment performance and makes resource allocation decisions based on operating expenses and total assets on a consolidated basis. Specifically, the CODM reviews research and development expenses, general and administrative costs, and cash flow trends to assess the financial health of the business and determine funding priorities. These measures guide decisions related to capital allocation, investment in clinical trials, and operational efficiency.

The consolidated financial statements reflect the financial results of the Company's one reportable operating segment, and no discrete financial information is reviewed at a lower level for decision-making purposes.

**NOTE 7 — COMMITMENTS AND CONTINGENCIES**

*Legal Matters*

The Company is subject to potential liabilities under various claims and legal actions that are pending or may be asserted. These matters arise in the ordinary course and conduct of the business. The Company intends to continue to defend itself vigorously in such matters. The Company regularly assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its consolidated financial statements. An estimated loss contingency is accrued in its consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on the Company's assessment, it currently does not have any amount accrued as it is not a defendant in any claims or legal actions.

*Leases*

The Company has elected to apply the short-term lease exemption for leases with a term of 12 months or less. As a result, the Company does not recognize right-of-use assets or lease liabilities for these leases. The total lease expense for short-term leases for the year ended December 31, 2024 and 2023 was $5,294 and $7,487, respectively. The Company does not have any significant short-term lease commitments that are not reflected in the lease expense.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

*License Agreement — University of California*

In August 2021, the Company entered into two license agreements with the University of California ("UC"), through which UC granted the Company rights to certain patent assets created to fatty acid amide hydrolase ("FAAH") inhibitors; UC also granted the Company the right to grant sublicenses as long as certain terms and conditions apply, with the Company providing a share of the sublicensing income and/or royalties back to UC. The Company paid an original license issue fee to UC, as well as issuing 66,250 shares of common stock in 2018 at the inception of the original agreement; the Company is also required to pay annual maintenance fees of $5,000 and $15,000, which it must do until the first commercial sale. The agreements include milestone payments tied to specific development and commercialization targets. It also provides UC with the right, in the event of any financing before a "going public transaction", to purchase up to 10% of any equity issued. Additionally, an anti-dilution provision requires the Company to issue additional shares to UC as needed to maintain a 2.5% ownership interest until a financing transaction of $5,000,000 or more is completed. UC retains the right to terminate the agreement should the Company fail to make the milestone payments or comply with the anti-dilution provision.

**NOTE 8 — REVENUE**

Revenue is accounted for in accordance with ASC 606. Revenue is recognized as control of goods and/or services are transferred to customers in an amount that reflects the consideration an entity expects to receive in exchange for the goods and/or services; see Note 2 for additional information.

*Disaggregated Revenue Information*

The following table disaggregates revenue by significant revenue stream for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Licensing income | $225000 | $100000 |
| Total revenue | $225000 | $100000 |

---

Licensing revenue is recognized on a monthly basis and consists of extension fees associated with licensed intellectual property, in accordance with the terms of the licensing arrangement. However, the agreement governing this revenue was terminated in 2024, and as a result, no further revenue under this arrangement is anticipated.

There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of December 31, 2024 or 2023.

*Significant concentrations of credit risk*

For the years ended December 31, 2024 and 2023, the Company had only one customer which accounts for 100% of the Company's total revenue for these periods.

**NOTE 9 — STOCKHOLDERS' DEFICIT**

*Common Shares*

On March 18, 2025, Exxel Pharma Canada entered into a Securities Exchange Agreement (the "Exchange Agreement") whereby the shareholders of Exxel Pharma Canada, constituting 100% of the registered and beneficial owners of the capital stock of Exxel Pharma Canada, agreed to transfer to Exxel Pharma U.S. 100% of the right, title and interest in and to all of the shareholders' shares, options and warrants in Exxel Pharma Canada (collectively, the "Securities") into an equivalent number of the Securities in Exxel Pharma U.S. Subsequent to the effective date of the Exchange Agreement, on April 1, 2025, Exxel Pharma U.S. effected an exchange ratio of such equivalent securities in Exxel Pharma U.S. on a 1-for-10 basis, such that each of the Securities were reduced by a factor of 10; all warrants and options denominated in CAD will continue to be exercisable in CAD subsequent to the exchange. The disclosures below reflect the impact of this exchange.

The Company has two classes of shares: common and preferred, with maximum authorized limits of 250,000,000 and 10,000,000 shares, respectively. Neither class has a designated par value and as of December 31, 2023, there were zero preferred shares and 4,493,327 common shares issued and outstanding.

On September 19, 2024, investors exercised 76,000 warrants for the same number of common shares at an exercise price of CAD 1.25 for an aggregate amount of $69,797.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

On December 9, 2024, the Company entered into a consulting agreement for the provision of financial services for a period of one year, with compensation in the form of 30,000 common shares for a total value of $60,979. The fair value of such shares was recorded to general and administrative expenses within the statements of operations.

As of December 31, 2024, there were zero preferred shares and 4,599,327 common shares issued and outstanding.

*Warrants*

As of December 31, 2023, there were 431,627 warrants outstanding.

During the year ended December 31, 2024, 76,000 warrants for the same number of shares at an exercise price of CAD 1.25 for an aggregate amount of $69,797 and 295,627 warrants expired. As of December 31, 2024, there were 60,000 warrants outstanding.

A summary of the warrant activity during the years ended December 31, 2024 and 2023 is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of <br> Warrants** | **Weighted <br> Average <br> Exercise <br> Price <br> (CAD)** | **Weighted <br> Average <br> Remaining <br> Life in Years** | **Intrinsic <br> Value** |
| Outstanding January 1, 2023 | 431627 | 4.50 | 1.8 | $— |
| &nbsp;&nbsp;&nbsp;Issued |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Exercised |  |  |  |  |
| Outstanding, December 31, 2023 | 431627 | 4.50 | 0.8 | $— |
| &nbsp;&nbsp;&nbsp;Exercised | (76000) | 3.60 |  |  |
| &nbsp;&nbsp;&nbsp;Expired | (295627) | 5.00 |  |  |
| Outstanding, December 31, 2024 | 60000 | 3.20 | 0.9 | $— |
| Exercisable, December 31, 2024 | 60000 | 3.20 | 0.9 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |

---

A summary of outstanding and exercisable warrants as of December 31, 2024 is presented below:

---

| | | | |
|:---|:---|:---|:---|
| **Warrants Outstanding** | **Warrants Outstanding** | **Warrants Exercisable** | **Warrants Exercisable** |
| **Exercise <br> Price (CAD)** | **Number of <br> Shares** | **Weighted <br> Average <br> Remaining <br> Life in Years** | **Number of <br> Shares** |
| 5.00 | 16000 | 0.5 | 16000 |
| 2.50 | 44000 | 1 | 44000 |
|  | 60000 | 0.9 | 60000 |

---

*Stock Options*

On July 1, 2023, the Company issued five-year options to purchase 10,000 shares of the Company's common stock to a consultant; the options have an exercise price of CAD 2.50 per share and vest quarterly over a twelve-month period. The options have a per share grant date fair value of CAD 1.14 and a total grant date fair value of CAD 11,428 (USD equivalent of $8,463), which will be recognized over the vesting term.

The Company estimates the fair value of stock options that contain service and/or performance conditions using the Black-Scholes option pricing model, which requires several assumptions. These assumptions include:

● Expected volatility — The Company is a private company and lacks company-specific historical and implied volatility information for its stock. Therefore, it estimates its expected stock price volatility based on the historical volatility of publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

● Risk-free Interest Rate — Derived from U.S. Treasury securities with a maturity matching the expected life of the options.

● Expected Dividend Yield — Assumes no dividends will be paid during the life of the options.

● Expected Life — Estimated using the simplified method, which averages the vesting period and contractual term of the options.

The Company recognizes stock option forfeitures as they occur as there is insufficient historical date to accurately determine future forfeiture rates. The Company recognizes compensation expense for stock options on a straight-line basis over the requisite service period. For the year ended December 31, 2023 (no options issued in 2024), the following assumptions were used in the Black-Scholes model:

---

| | |
|:---|:---|
| Risk free interest rate | 3.81% |
| Expected term (years) | 5.0 |
| Expected volatility | 46.93% |
| Expected dividends | 0.0% |

---

The total stock-based compensation expense recognized during the years ended December 31, 2024 and 2023 from the issuance of options was $3,982 and $4,319, respectively.

A summary of the option activity during the years ended December 31, 2024 and 2023 is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of <br> Options** | **Weighted <br> Average <br> Exercise <br> Price <br> (CAD)** | **Weighted <br> Average <br> Remaining <br> Life in Years** | **Intrinsic <br> Value** |
| Outstanding, January 1, 2023 | 407000 | 1.30 | 7.5 |  |
| Issued | 10000 | 2.50 |  |  |
| Outstanding, December 31, 2023 | 417000 | 1.30 | 6.4 | $— |
| Issued |  |  |  |  |
| Outstanding, December 31, 2024 | 417000 | 1.30 | 5.4 | $— |
| Exercisable, December 31, 2024 | 417000 | $1.30 | 5.4 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— |

---

A summary of outstanding and exercisable options as of December 31, 2024 is presented below:

---

| | | | |
|:---|:---|:---|:---|
| **Options Outstanding** | **Options Outstanding** | **Options Exercisable** | **Options Exercisable** |
| **Exercise <br> Price (CAD)** | **Number of <br> Shares** | **Weighted <br> Average <br> Remaining <br> Life in Years** | **Number of <br> Shares** |
| 1.25 | 402000 | 5.4 | 402000 |
| 2.50 | 15000 | 4.9 | 15000 |
|  | 417000 |  | 417000 |

---

**NOTE 10 — INCOME TAXES**

The Company is subject to taxation in the United States and various states and foreign jurisdictions where it has determined it has tax nexus. The Company is subject to U.S. Federal, state and local income tax examinations by tax authorities for all periods since Inception. The Company currently is not under examination by any tax authority, but the tax years 2021 through 2024 remain subject to examination by the relevant taxing authorities.

The Company accounts for income taxes under ASC 740-10, which provides for an asset and liability approach of accounting for income taxes. Under this approach, deferred tax assets and liabilities are recognized based on anticipated future tax consequences, using currently enacted tax laws, attributed to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts calculated for income tax purposes.

**EXXEL PHARMA INC.<br> NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023**

Additionally, as of December 31, 2024 and 2023, the Company recognized a refundable R&D tax incentive of $51,591 and $49,446, respectively; this incentive represents amounts receivable from tax authorities related to eligible research and development expenditures incurred during the fiscal year. The refundable R&D tax incentive is classified as a current asset on the consolidated balance sheets, is expected to be received within the next fiscal year and is applied in accordance with applicable tax regulations.

Significant components of the Company's deferred tax assets are summarized below.

---

| | | |
|:---|:---|:---|
|  | **As of <br> December 31,<br> 2024** | **As of <br> December 31,<br> 2023** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carry forwards | $488000 | $408000 |
| Total deferred tax asset | 488000 | 408000 |
| Valuation allowance | (488000) | (408000) |
| &nbsp;&nbsp;&nbsp;Net deferred tax asset | $— | $— |

---

As of December 31, 2024 and 2023, the Company had approximately $1,857,000 and $1,608,000, respectively, in net operating loss carry-forwards for federal and state income tax reporting (tax-effected) purposes. As a result of the Tax Cuts Job Act 2017 (the "Act"), certain future carryforwards do not expire. The Company has not performed a formal analysis but believes its ability to use such net operating losses and tax credit carryforwards in the future is subject to annual limitations due to change of control provisions under Sections 382 and 383 of the Internal Revenue Code, which will significantly impact its ability to realize these deferred tax assets.

The Company recorded a valuation allowance in the full amount of its net deferred tax assets since realization of such tax benefits has been determined by the Company's management to be less likely than not. The valuation allowance increased by $80,000 and $101,000 during the years ended December 31, 2024 and 2023, respectively.

A reconciliation of the statutory federal income tax benefit to actual tax benefit is as follows:

---

| | | |
|:---|:---|:---|
|  | **As of<br> December 31, <br> 2024** | **As of<br> December 31, <br> 2023** |
| Federal statutory blended income tax rates | (21)% | (21)% |
| State statutory income tax rate, net of federal benefit | (3)% | (3)% |
| Foreign statutory blended income tax rates | (6)% | (6)% |
| Tax effect of foreign operations | 9% | 8% |
| Change in valuation allowance | 21% | 22% |
| Effective tax rate | —% | —% |

---

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax positions through its income tax expense.

**NOTE 11 — SUBSEQUENT EVENTS**

*Re-domiciliation and share exchange*

See Note 1 for disclosure on re-domiciliation and share exchange.

**EXXEL PHARMA INC.<br> CONDENSED CONSOLIDATED BALANCE SHEETS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2025** | **December 31, <br> 2024** |
| **ASSETS** | | |
| **Current assets:** | | |
| &nbsp;&nbsp;&nbsp;Cash | $96313 | $444196 |
| &nbsp;&nbsp;&nbsp;Tax receivable | 1980 | 50669 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 17500 | 11414 |
| **Total current assets** | 115793 | 506279 |
| **Total assets** | $115793 | $506279 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $311819 | $224819 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 875670 | 891764 |
| &nbsp;&nbsp;&nbsp;Derivative liability | 101000 | 22000 |
| &nbsp;&nbsp;&nbsp;Convertible debenture, net | 648525 | 514175 |
| &nbsp;&nbsp;&nbsp;**Total current liabilities** | 1937014 | 1652758 |
| **Total liabilities** | $1937014 | $1652758 |
| Commitments and Contingencies (Note 7) |  |  |
| **Stockholders' Deficit:** |  |  |
| Common stock, no par value; 250,000,000 shares authorized; 4,599,327 and 4,599,327 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively |  |  |
| Additional paid-in capital | 2910487 | 2909585 |
| Accumulated other comprehensive loss | (57139) | (45463) |
| Accumulated deficit | (4674569) | (4010601) |
| **Total stockholders' deficit** | (1821221) | (1146479) |
| **Total liabilities and stockholders' deficit** | $115793 | $506279 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**EXXEL PHARMA INC.<br> CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS** 

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended <br> June 30,** | **For the Six Months Ended <br> June 30,** |
|  | **2025** | **2024** |
| **Revenue** | $- | $175000 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Research and development | 14122 | 113127 |
| &nbsp;&nbsp;&nbsp;General and administrative | 447633 | 206621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 461755 | 319748 |
| **Loss from operations** | (461755) | (144748) |
| Other (expenses) income: |  |  |
| &nbsp;&nbsp;&nbsp;Interest (expense) income | (134350) | 96 |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative | (79000) |  |
| &nbsp;&nbsp;&nbsp;(Loss) gain on foreign currency transaction | 11137 | (28702) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expenses, net | (202213) | (28606) |
| Net loss before income taxes | (663968) | (173354) |
| Provision for income taxes | - | - |
| **Net loss** | $(663968) | $(173354) |
| Weighted Average Number of Common Shares Outstanding, Basic and Diluted | 4599327 | 4493327 |
| Basic and Diluted Net Loss per Common Share | $(0.14) | $(0.04) |
| Comprehensive loss: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | (663968) | (173354) |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (11676) | 18546 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive loss | $(675644) | $(154808) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**EXXEL PHARMA INC.<br> CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT<br> FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

**(UNAUDITED)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated <br> Other<br> Comprehensive**<br>**Loss** | **Accumulated**<br>**Deficit** | **Total<br> Stockholders'**<br>**Deficit** |
| **Balance at December 31, 2023** | 4493327 | $— | $2783538 | $(38596) | $(3601430) | $(856488) |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation |  |  |  | 1495 |  | 1495 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 2857 |  |  | 2857 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (131781) | (131781) |
| **Balance at March 31, 2024** | 4493327 | $— | $2786395 | $(37101) | $(3733211) | $(983917) |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation |  |  |  | 17051 |  | 17051 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 2857 |  |  | 2857 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (41573) | (41573) |
| **Balance at June 30, 2024** | 4493327 | $— | $2789252 | $(20050) | $(3774784) | $(1005582) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated <br> Other<br> Comprehensive**<br>**Loss** | **Accumulated**<br>**Deficit** | **Total<br> Stockholders'**<br>**Deficit** |
| **Balance at December 31, 2024** | 4599327 | $— | $2909585 | $(45463) | $(4010601) | $(1146479) |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation |  |  |  | (3870) |  | (3870) |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (408809) | (408809) |
| **Balance at March 31, 2025** | 4599327 | $— | $2909585 | $(49333) | $(4419410) | $(1559158) |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation |  |  |  | (7806) |  | (7806) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 902 |  |  | 902 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (255159) | (255159) |
| **Balance at June 30, 2025** | 4599327 | $— | $2910487 | $(57139) | $(4674569) | $(1821221) |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**EXXEL PHARMA INC.<br> CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> June 30,** | **For the Six Months Ended<br> June 30,** |
|  | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(663968) | $(173354) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 902 | 5714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency transaction (gain) loss | (11137) | 28728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | 79000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 134350 |  |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax receivable | 48689 | 43604 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (6086) | (17394) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 86989 | (69571) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | (16083) | 20618 |
| &nbsp;&nbsp;&nbsp;Net cash used in operating activities | (347344) | (161655) |
| Effect of foreign currency exchange rate on cash | (539) | (10183) |
| **NET CHANGE IN CASH** | (347883) | (171838) |
| &nbsp;&nbsp;&nbsp;Cash – Beginning of period | 444196 | 239129 |
| &nbsp;&nbsp;&nbsp;Cash – End of period | $96313 | $67291 |
| **Supplemental disclosures of cash transactions:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid during the year for interest | $— | $— |
| &nbsp;&nbsp;&nbsp;Cash paid during the year for income taxes | $— | $— |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

**EXXEL PHARMA INC.<br> NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024<br> (UNAUDITED)**

**NOTE 1 — NATURE OF THE ORGANIZATION AND BUSINESS**

*Corporate History*

Exxel Pharma Inc. ("Exxel Pharma U.S.") is a biopharmaceutical company that was incorporated in the state of Colorado on June 30, 2018, as Aspire BioScience, Inc., and changed its name to Exxel Pharma Inc. on March 25, 2025. Exxel Pharma U.S. was originally formed as a wholly-owned subsidiary of Exxel Pharma Inc., an entity incorporated in British Columbia, Canada on June 20, 2017 ("Exxel Pharma Canada"). Exxel Pharma U.S. also operates Exxel Pharma Australia Pty Ltd., a wholly-owned Australian subsidiary under Exxel Pharma Canada, that was incorporated on January 12, 2023 ("Exxel Pharma Australia").

Effective as of March 18, 2025, Exxel Pharma U.S., Exxel Pharma Canada, and each of the shareholders of Exxel Pharma Canada entered into a Securities Exchange Agreement (the "Exchange Agreement") whereby the shareholders of Exxel Pharma Canada, constituting 100% of the registered and beneficial owners of the capital stock of Exxel Pharma Canada, agreed to transfer to Exxel Pharma U.S., 100% of the right, title and interest in and to all of the shareholders' shares, options and warrants in Exxel Pharma Canada (collectively, the "Securities") in exchange for equivalent Securities of Exxel Pharma U.S.

The share exchange transaction between Exxel Pharma U.S., Exxel Pharma Canada and the shareholders of Exxel Pharma Canada was completed on April 1, 2025, based upon a 1-for-10 exchange ratio. Accordingly, in the exchange transaction, all of the persons who had been shareholders of Exxel Pharma Canada exchanged their Securities in that company on a 1-for-10 basis for equivalent Securities of Exxel Pharma U.S. The effect of completion of the share exchange transaction was to invert the relationship between Exxel Pharma U.S. and Exxel Pharma Canada, such that Exxel Pharma U.S., which had previously been the wholly-owned subsidiary of Exxel Pharma Canada, became the parent company, and Exxel Pharma Canada became the wholly-owned subsidiary of Exxel Pharma U.S.

Exxel Pharma U.S., Exxel Pharma Canada and Exxel Pharma Australia are hereinafter collectively referred to as the "Company," "Exxel Pharma Inc.," "We," "Our," or "Us." The Company's principal executive offices are located at 12635 E. Montview Blvd, Suite 134, Aurora, Colorado 80045.

*Business Overview*

The Company's focus is on developing innovative therapeutics for neuronal hypersensitivity disorders, and its lead program, EX937, is an orally administered, proprietary small molecule designed to specifically and peripherally inhibit the fatty acid amide hydrolase (FAAH) enzyme. In addition to EX937, the Company is advancing its ARN compounds, a second lead program targeting social anxiety disorder and autism spectrum disorder.

**NOTE 2 — BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Basis of Presentation*

The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities Exchange Commission ("SEC"). These condensed consolidated financial statements are presented in U.S. Dollars. The Company's fiscal year end date is December 31.

In the opinion of the Company's management, the accompanying condensed consolidated financial statements reflect all adjustments, consisting of normal, recurring adjustments, considered necessary for a fair presentation of the results for the interim periods ended June 30, 2025 and 2024. Although management believes that the disclosures in these unaudited condensed consolidated financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in condensed consolidated financial statements that have been prepared in accordance U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company's financial statements and notes related thereto included in the prospectus accompanying this filing. The interim results for the six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for any future interim periods.

Subsequent to the year ended December 31, 2024, certain significant organizational and financial restructuring events occurred, including the execution of a Securities Exchange Agreement on March 18, 2025, and the implementation of a 1-for-10 exchange ratio for securities effective April 1, 2025 (Note 1). Such an exchange reduced the number of outstanding shares from 45,993,268 to 4,599,327; as a result, all share and per-share amounts in the accompanying financial statements and footnotes have been retroactively adjusted to reflect the reverse stock split for all periods presented. The reverse stock split did not impact total stockholders' deficit, but the earnings per share ("EPS") calculations have been revised to reflect the new share count in accordance with Accounting Standards Codification ("ASC") 260 — EPS.

**EXXEL PHARMA INC.<br> NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

**(UNAUDITED)**

*Principles of Consolidation*

The condensed consolidated financial statements include the consolidated accounts of Exxel Pharma U.S., Exxel Pharma Canada and Exxel Pharma Australia. All intercompany transactions and balances have been eliminated in consolidation.

*Use of Estimates*

The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. Significant estimates include amounts for the valuation of debt and equity-based transactions and stock-based compensation expense.

*Foreign Currency Translation*

The Company's reporting currency is the United States ("U.S.") dollar. The functional currency of certain entities is the Canadian Dollar ("CAD") or the Australian Dollar ("AUD"). Assets and liabilities are translated based on the exchange rates at the balance sheet date, while expense accounts are translated at the weighted average exchange rate for the period. Equity accounts are translated at historical exchange rates. The resulting translation adjustments are recognized in stockholders' deficit as a component of accumulated other comprehensive income.

Comprehensive loss is defined as the change in equity of an entity from all sources other than investments by owners or distributions to owners and includes foreign currency translation adjustments as described above. During the six months ended June 30, 2025 and 2024, the Company recorded other comprehensive (losses) gains of ($11,676) and $18,546, respectively, as a result of foreign currency translation adjustments.

Foreign currency gains and losses resulting from transactions denominated in foreign currencies, including intercompany transactions, are included in the results of operations. The Company recorded $11,137 and ($28,702) of foreign currency transaction gains (losses) for the six months ended June 30, 2025 and 2024, respectively. Such amounts have been classified within other income (expense), net in the accompanying condensed consolidated statements of operations and comprehensive loss.

*Cash and Cash Equivalents*

Cash and cash equivalents include time deposits and other investments that are highly liquid with original maturities of three months or less when purchased. As of June 30, 2025 and December 31, 2024, the Company does not hold any cash equivalents.

The Company may maintain bank balances in excess of $250,000, which is currently the maximum amount insured by the Federal Deposit Insurance Corporation ("FDIC") for interest bearing accounts. The Company has not experienced any losses with respect to cash. Management believes the Company is not exposed to any significant credit risk with respect to its cash.

*Convertible Instruments*

U.S. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional as that term is described under applicable U.S. GAAP; this exception is not applicable to any of the Company's outstanding notes.

**EXXEL PHARMA INC.<br> NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

**(UNAUDITED)**

*Fair Value Measurement*

The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 "Fair Value Measurements" ("ASC 820"), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.

ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:

● Level 1 — Quoted prices in active markets for identical assets or liabilities;

● Level 2 — Quoted prices for similar assets and liabilities in active markets or inputs that are observable; and

● Level 3 — Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions).

As of June 30, 2025, the Company holds a Level 3 financial instrument, specifically a derivative liability associated with an embedded redemption feature. Additional details regarding this instrument can be found in Note 5.

*Revenue Recognition*

Revenue is accounted for in accordance with ASC 606 *— Revenue from Contracts with Customers* ("ASC 606"). Revenue is recognized as control of goods and/or services are transferred to customers in an amount that reflects the consideration an entity expects to receive in exchange for the goods and/or services; see Note 8 for additional information.

*Offering Costs*

The Company capitalizes offering costs incurred in connection with the issuance of equity securities. These costs primarily include legal, accounting, and underwriting fees. Offering costs are recorded as a reduction of the proceeds from the issuance of equity securities and are presented as a deduction from additional paid-in capital in the condensed consolidated balance sheets. If the offering is not completed, the costs are expensed as incurred.

**EXXEL PHARMA INC.<br> NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

**(UNAUDITED)**

*Net Loss per Share*

Basic net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the year. Diluted net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding, plus the number of additional common shares that would have been outstanding if the common share equivalents had been issued (computed using the treasury stock or if converted method), if dilutive.

Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of June 30, 2025 and 2024, diluted net loss per share is the same as basic net loss per share for each year. Dilutive instruments include stock options, convertible debt and warrants (see Note 9); as of June 30, 2025, the number of shares to which the convertible debt may convert to is indeterminable.

*Recent Issued Accounting Pronouncements*

The Company considers the applicability and impact of all ASUs. Management periodically reviews new accounting standards that are issued. Under the Jumpstart Our Business Startups Act of 2012, as amended (the "JOBS Act"), the Company meets the definition of an emerging growth company, or EGC, and has elected the extended transition period for complying with new or revised accounting standards, which delays the adoption of these accounting standards until they would apply to private companies.

All newly issued but not yet effective accounting pronouncements have been deemed to be not applicable or immaterial to the Company.

**NOTE 3 — GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS**

As of June 30, 2025, the Company had $96,313 in its operating bank account and a working capital deficiency of $1,821,221. To date, the Company has been funding operations from capital raises; the Company's ability to continue as a going concern is dependent on its ability to comply with the covenants in its existing convertible debenture agreement and the ability to successfully complete a qualified financing, event or initial public offering ("IPO"). Despite the Company's positive outlook for future capital raises and the Company's current operations and expectations for growth, it believes that cash generated from operating activities will not be adequate to meet current and future expected operating needs, anticipated capital investment and debt service obligations for the next twelve months. Based on these circumstances, management has determined that these conditions raise substantial doubt about the Company's ability to continue as a going concern for the twelve months following the issuance of these condensed consolidated financial statements.

**EXXEL PHARMA INC.<br> NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

**(UNAUDITED)**

Although management has been successful to date in raising necessary funding and obtaining financing through investors, there can be no assurance that any required future financing can be successfully completed on a timely basis, on terms acceptable to the Company, or at all.

Accordingly, the accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and the satisfaction of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**NOTE 4 — ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES**

The Company's accrued expenses and other current liabilities included the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| Deferred bonuses | $500000 | $500000 |
| Deferred compensation | 331667 | 331667 |
| Other accruals | 44003 | 60097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accrued expenses and other current liabilities | $875670 | $891764 |

---

**NOTE 5 — CONVERTIBLE DEBENTURE**

The Company's loans payable, current included the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | **December 31,<br> 2024** |
| Convertible debenture, net | $648525 | $514175 |
| Total | $648525 | $514175 |

---

On November 19, 2024, the Company entered into a Securities Purchase Agreement ("November 2024 SPA") with a single Purchaser, which included a Senior Secured Convertible Debenture with an aggregate principal amount of $675,000, an original issue discount ("OID") of 12.5% or $75,000, and warrants to purchase common shares at no additional consideration. The warrants will equal 75% of the original principal amount divided by the offering price of the Company's common shares in its first Qualified Financing or Event and will be exercisable at $0.10 per share for thirty-six months following the closing date of such Event. The Convertible Debenture matures on August 19, 2025 with an option to extend for an additional three months and bears no interest. On the maturity date, the Company will repay the Purchaser in cash for any unconverted and outstanding principal. The Company may pre-pay the Debenture at 110% of the face amount. If the maturity date is extended, the OID increases to 18%.

The full balance of the Debenture will automatically convert into shares ninety days after a qualified financing or event at a price per share equal to the lower of (i) 75% of the price at which the Debentures would have converted at the closing of the qualified financing or event or (ii) a 25% discount to the five-day VWAP of the common shares prior to the date ninety days after the qualified financing or event, subject to a conversion floor price of $10.00. The number of conversion shares issued will be determined by dividing the unconverted and outstanding principal balance (as of a date no more than five days prior to the closing of the qualified financing or event) by the applicable conversion price, rounded up to the nearest whole share.

**EXXEL PHARMA INC.<br> NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

**(UNAUDITED)**

Prior to a mandatory conversion or full repayment, the Purchaser may voluntarily convert the Debenture into common shares, calculated as the quotient of the unconverted principal balance on the conversion date divided by the applicable conversion price. For voluntary conversions, the conversion price is determined as $25,000,000 divided by the Fully Diluted Capitalization immediately prior to conversion. If the Debenture is in default under Section 7, the conversion price is reduced to 50% of the Voluntary Conversion Price.

The Company identified an embedded redemption feature within the debenture that qualifies as a derivative under ASC 815, *Derivatives and Hedging*. The derivative liability was initially recognized at fair value upon issuance on November 19, 2024, and is remeasured at each reporting date, with changes in fair value recorded in the statement of operations. The fair value is determined using the Differential Valuation Approach, comparing the debenture's value with and without the redemption feature. At issuance and as of December 31, 2024, a 10% probability was assigned to the successful consummation of a Qualified Financing or Event. As of June 30, 2025, this probability increased to 45%, resulting in a fair value of the derivative liability of $101,000 at the end of the reporting period. The change in fair value of $79,000 was recorded as an expense in the consolidated statements of operations for the six months ended June 30, 2025.

Upon issuance, the Company classified the convertible debenture as a current liability with a principal amount of $675,000. The debenture included an OID of $75,000, a debt discount of $95,000 related to issuance costs, and an additional debt discount of $22,000 attributed to the derivative liability.

As of June 30, 2025, the net carrying amount was $648,525. For the six months ended June 30, 2025, the Company recognized noncash interest expense of $114,316 related to the amortization of the debt discounts. Additionally, the Company recorded imputed interest expense of $20,034 based on an effective interest rate of 8%. As of June 30, 2025, the remaining unamortized debt discounts totaled $51,158. See Note 10 – Subsequent Events for details regarding an amendment to the November 2024 SPA executed on August 12, 2025.

**NOTE 6 — SEGMENTS**

The Company currently operates as one business segment, which is also the sole reportable segment, focusing on developing innovative therapeutics for neuronal hypersensitivity disorders. The Company's lead program, EX937, is a novel, orally administered small molecule designed to treat refractory chronic cough, a condition with no FDA-approved treatments. The Company's business offerings have similar economic and other characteristics, including the nature of services, products, and types of customers.

The Chief Operating Decision Maker ("CODM"), who is the Company's Chief Executive Officer and President, evaluates segment performance and makes resource allocation decisions based on operating expenses and total assets on a consolidated basis. Specifically, the CODM reviews research and development expenses, general and administrative costs, and cash flow trends to assess the financial health of the business and determine funding priorities. These measures guide decisions related to capital allocation, investment in clinical trials, and operational efficiency.

The condensed consolidated financial statements reflect the financial results of the Company's one reportable operating segment, and no discrete financial information is reviewed at a lower level for decision-making purposes.

**NOTE 7 — COMMITMENTS AND CONTINGENCIES**

*Legal Matters*

The Company is subject to potential liabilities under various claims and legal actions that are pending or may be asserted. These matters arise in the ordinary course and conduct of the business. The Company intends to continue to defend itself vigorously in such matters. The Company regularly assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its condensed consolidated financial statements. An estimated loss contingency is accrued in its condensed consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on the Company's assessment, it currently does not have any amount accrued as it is not a defendant in any claims or legal actions.

*Leases*

The Company has elected to apply the short-term lease exemption under ASC 842 for leases with a term of 12 months or less. Accordingly, the Company does not recognize right-of-use assets or lease liabilities for these leases, and lease payments are expensed on a straight-line basis over the lease term. For the six months ended June 30, 2025 and 2024, lease expense was $1,050 and $3,788, respectively. As of June 30, 2025, the Company does not have any material short-term lease commitments that are not already reflected in the reported lease expense.

**EXXEL PHARMA INC.<br> NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024** 

**(UNAUDITED)**

*License Agreement — University of California*

In August 2021, the Company entered into two license agreements with the University of California ("UC"), through which UC granted the Company rights to certain patent assets created to fatty acid amide hydrolase ("FAAH") inhibitors; UC also granted the Company the right to grant sublicenses as long as certain terms and conditions apply, with the Company providing a share of the sublicensing income and/or royalties back to UC. The Company paid an original license issue fee to UC, as well as issuing 66,250 shares of common stock in 2018 at the inception of the original agreement; the Company is also required to pay annual maintenance fees of $5,000 and $15,000, which it must do until the first commercial sale. The agreements include milestone payments tied to specific development and commercialization targets. It also provides UC with the right, in the event of any financing before a "going public transaction", to purchase up to 10% of any equity issued. Additionally, an anti-dilution provision requires the Company to issue additional shares to UC as needed to maintain a 2.5% ownership interest until a financing transaction of $5,000,000 or more is completed. UC retains the right to terminate the agreement should the Company fail to make the milestone payments or comply with the anti-dilution provision.

**NOTE 8 — REVENUE**

Revenue is accounted for in accordance with ASC 606. Revenue is recognized as control of goods and/or services are transferred to customers in an amount that reflects the consideration an entity expects to receive in exchange for the goods and/or services; see Note 2 for additional information.

*Disaggregated Revenue Information*

The following table disaggregates revenue by significant revenue stream for the periods below:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br> June 30,<br> 2025** | **Six Months Ended<br> June 30,<br> 2024** |
| Licensing revenue | $- | $175000 |
| Total revenue from customers | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $175000 |

---

Licensing revenue was recognized on a monthly basis and consists of extension fees associated with licensed intellectual property, in accordance with the terms of the licensing arrangement. However, the agreement governing this revenue was terminated in 2024, and as a result, no further revenue under this arrangement is anticipated.

There were no significant contract liabilities or transaction price allocations to any remaining performance obligations as of June 30, 2025 or December 31, 2024.

**EXXEL PHARMA INC.<br> NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024** 

**(UNAUDITED)**

*Significant concentrations of credit risk*

For the six months ended June 30, 2024, the Company had only one customer which accounts for 100% of the Company's total revenue for these periods. There was no such revenue in the 2025 periods.

**NOTE 9 — STOCKHOLDERS' DEFICIT**

*Warrants*

A summary of outstanding and exercisable warrants as of June 30, 2025 is presented below:

---

| | | | |
|:---|:---|:---|:---|
| **Warrants Outstanding** | **Warrants Outstanding** | **Warrants Exercisable** | **Warrants Exercisable** |
| **Exercise <br> Price (CAD)** | **Number of <br> Shares** | **Weighted <br> Average <br> Remaining <br> Life in Years** | **Number of <br> Shares** |
| 5.00 | 16000 | 0.02 | 16000 |
| 2.50 | 44000 | 0.50 | 44000 |
|  | 60000 | 0.37 | 60000 |

---

*Stock Options*

On April 11, 2025, the Company issued options to purchase 20,000 shares of the Company's common stock to a director; the options have an exercise price of CAD 1.25 per share, vest equally over a ten-quarter period, and have a ten-year contractual period.

The Company estimates the fair value of stock options that contain service and/or performance conditions using the Black-Scholes option pricing model, which requires several assumptions. These assumptions include:

● Expected volatility - Based on historical volatility of the Company's stock price over a period consistent with the expected life of the options.

● Risk-free Interest Rate - Derived from U.S. Treasury securities with a maturity matching the expected life of the options.

● Expected Dividend Yield - Assumes no dividends will be paid during the life of the options.

● Expected Life - Estimated using the simplified method, which averages the vesting period and contractual term of the options.

● Market Conditions - Assumes no transaction costs and that the market is efficient.

The Company recognizes compensation expense for stock options on a straight-line basis over the requisite service period. For the six months ended June 30, 2025 (no options issued in 2024), the following assumptions were used in the Black-Scholes model:

---

| | |
|:---|:---|
| Risk free interest rate | 3.98% |
| Expected term (years) | 5.67 |
| Expected volatility | 47.71% |
| Expected dividends | 0.0% |

---

For the six months ended June 30, 2025 and 2024, the Company recognized stock-based compensation expense of $902 and $5,714, respectively, related to the issuance of stock options, which is reflected in the accompanying condensed consolidated statements of operations.

**EXXEL PHARMA INC.<br> NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br> FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024** 

**(UNAUDITED)**

A summary of the option activity during the six months ended June 30, 2025 is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br>**Number of Options** |<br>**Weighted<br> Average**<br>**Exercise Price (CAD)** | **Weighted**<br>**Average<br> Remaining**<br>**Life<br> in Years** |<br>**Intrinsic Value** |
| Outstanding, January 1, 2025 | 417000 | 1.30 | 5.4 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |
| Issued | 20000 | 1.25 | 10.0 |  |
| Cancelled | (20000) | 1.25 | - | - |
| Outstanding, June 30, 2025 | 417000 | 1.29 | 5.1 | $- |
| Exercisable, June 30, 2025 | 399000 | 1.35 | 5.4 | $- |

---

A summary of outstanding and exercisable options as of June 30, 2025 is presented below:

---

| | | | |
|:---|:---|:---|:---|
| **Options Outstanding** | **Options Outstanding** | **Options Exercisable** | **Options Exercisable** |
| **Exercise <br> Price (CAD)** | **Number of <br> Shares** | **Weighted <br> Average <br> Remaining <br> Life in Years** | **Number of <br> Shares** |
| 1.25 | 402000 | 5.4 | 384000 |
| 2.50 | 15000 | 4.4 | 15000 |
|  | 417000 |  | 399000 |

---

**NOTE 10 — SUBSEQUENT EVENTS**

Management has evaluated subsequent events from the balance sheet date through the date the condensed consolidated financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure to the condensed consolidated financial statements, except as disclosed below.

*Amendment to November 2024 SPA*

On August 12, 2025, the Company amended the terms of the November 2024 SPA (see Note 4). The amendment extended the maturity date from November 20, 2025 (the initial three-month extension of the original maturity date of August 19, 2025) to May 20, 2026 and increased the repayment amount to 125% of the principal balance, or $843,750. As part of the amendment, the mandatory conversion feature was removed. Additionally, the Company issued new warrants to the debenture holder, exercisable into common shares at $0.01 per share for a period of 36 months following a Qualified Financing or Event.

*September 2025 SPA*

On September 2, 2025, the Company entered into a Securities Purchase Agreement with a certain group of investors, pursuant to which it issued a 20% convertible debenture with a principal amount of $750,000 and a funded amount of $625,000, maturing on June 2, 2026.

In connection with the debenture, the investors received warrants to purchase common stock equal to 100% of the respective funded amount, priced at a valuation cap of $25 million. The debenture is payable in cash at maturity, convertible at the holder's option into common shares, and may be prepaid at 110% of face value with ten business days' notice.

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 13. Other Expenses of Issuance and Distribution.**

The estimated expenses in connection with the sale of the securities being registered hereby, are as follows:

---

| | |
|:---|:---|
| SEC registration fee | $1761 |
| Accounting fees and expenses | 125000 |
| FINRA filing fee | 2225 |
| \*[ ] listing fee | 55000 |
| Printing expenses | 15000 |
| Legal fees and expenses | 150000 |
| UW non-accountable expenses | 150000 |
| Transfer agent fees and expenses | 4500 |
| Miscellaneous | 25000 |
| Total | $528486 |

---

\* To be filed by amendment

**Item 14. Indemnification of Directors and Officers.**

Our Amended Articles of Incorporation and our Amended and Restated Bylaws both provide that we are obligated to indemnify our officer, directors, employees, agents and fiduciaries to the maximum extent permitted by law. Section 7-109-102 of the Colorado Business Corporations Act, authorizes us to indemnify any person who is or was a director, officer, agent, fiduciary or employee of the Corporation against any claim, liability or expense arising against or incurred by such person made party to a proceeding because he is or was a director, officer, agent, fiduciary or employee of the Corporation or because he is or was serving another entity or employee benefit plan as a director, officer, partner, trustee, employee, fiduciary or agent at the Corporation's request.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

**Item 15. Recent Sales of Unregistered Securities.**

Since March 2022, we have made the following sales of unregistered securities:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Shareholder name** | **Address** | **City** | **Zip** | **Number of <br> shares** | **Date** | **Price per <br> share<br> (CAD)** | **Notes** |
| Watson Global Holdings Inc. | 115 – 1231 Pacific Blvd | Vancouver BC | V6Z 0E2 CA | 20000 | 09/20/23 | 2.50 | Fee for service |
| Jaspinder Brar | 14062 – 31 A Avenue | Surrey BC | V4P 2J4 CA | 30000 | 09/19/24 | 1.30 | Warrant exercise |
| Mina Motadi | 565 Stevens Drive | West Vancouver BC | V7S 1E1 CA | 16000 | 09/19/24 | 1.30 | Warrant exercise |
| Rajinder Singh Bhatti | 31596 Downes Road | Abbotsford BC | V4X 2M7 CA | 10000 | 09/19/24 | 1.30 | Warrant exercise |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Shareholder name** | **Address** | **City** | **State** | **Zip** | **Country** | **Number of <br> shares** | **Date** | **Price per <br> share<br> (CAD)** | **Notes** |
| Carrie Shaw | #2207 – 1408 Strathmore Mews | Vancouver | BC | V6Z 3A9 | CA | 5000 | 09/19/24 | 1.30 | Warrant exercise |
| Jaiden Singh Bains | 1068 West 51<sup>st</sup> Avenue | Vancouver | BC | V6P 1C3 | CA | 5000 | 09/19/24 | 1.30 | Warrant exercise |
| Jaiden Singh Bains | 1068 West 51<sup>st</sup> Avenue | Vancouver | BC | V6P 1C3 | CA | 5000 | 09/19/24 | 1.30 | Warrant exercise |
| Vanisha Kaur Bains | 1068 West 51<sup>st</sup> Avenue | Vancouver | BC | V6P 1C3 | CA | 5000 | 09/19/24 | 1.30 | Warrant exercise |
| Eventus Advisory Group, LLC | 14201 N. Hayden Rd., Suite A-1 | Scottsdale | AZ | 85260 | US | 30000 | 12/09/24 | 2.50 | Fee for service |
| John Nash <sup>(1)</sup> | 1780 S. Post Oak Lane | Houston | TX | 77056 | US | 84375 | 11/19/24 | n/a | Convertible debenture |
| September 2025 Convertible Debenture Investors <sup>(2)</sup> | c/o 12635 E. Montview Blvd, Suite 134 | Aurora | CO | 80045 | US | 500000 | 9/02/25 | n/a | Convertible debenture |

---

<sup>(1)</sup> On November 19, 2024, we issued a Senior Secured Convertible Debenture in the principal amount of $675,000 to a single, non-affiliated investor in a private placement transaction. On August 12, 2025, we amended the terms of the Debenture to extend the maturity date to May 20, 2026 and increase the repayment amount to $843,750. The amendment also removed the mandatory conversion feature and provided for voluntary conversion only. Based on the amended terms, the Debenture is convertible into up to 84,375 common shares at a conversion price of $10.00 per share, which represents the floor price under the agreement. This security was issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D.

<sup>(2)</sup> On September 2, 2025, we issued a Senior Secured Convertible Debenture in the principal amount of $750,000 to nine non-affiliated accredited investors (the "September 2025 Convertible Debenture Investors") in a private placement transaction. The Debenture is convertible into up to 500,000 common shares at a conversion price of $1.50 per share. This security was issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D.

The offers, sales and issuances of the securities listed above were deemed to be exempt from registration under the Securities Act in reliance on Regulation S relating to offers and sales of securities outside the United States, or Section 4(a)(2) (or Regulation D promulgated thereunder) in that the issuance of securities to the accredited investors did not involve a public offering. The recipients of securities in each of these transactions acquired the securities for investment only and not with a view to or for sale in connection with any distribution thereof and appropriate legends were affixed to the securities issued in these transactions. Each of the recipients of securities in these transactions was an accredited investor under Rule 501 of Regulation D. No underwriters were involved in these transactions.

Appropriate legends were affixed to the securities issued in these transactions. Each of the recipients of securities in these transactions had adequate access, through employment, business or other relationships, to information about us.

**Item 16. Exhibits**

***(a) Exhibits.***

The exhibits listed below are filed as part of this registration statement.

---

| | |
|:---|:---|
| **Exhibit <br> Number** | **Description** |
| 2.1† | [Securities Exchange Agreement dated March 18, 2025, between Exxel Pharma Inc a British Columbia Corporation, Exxel Pharma Inc, a Colorado corporation, and the shareholders of Exxel Pharma Inc a British Columbia Corporation](ea025693901ex2-1_exxel.htm) |
| 3.1† | [Aspire BioScience, Inc. Statement of Conversion and Articles of Incorporation dated June 29, 2018](ea025693901ex3-1_exxel.htm) |
| 3.2† | [Exxel Pharma Inc Amended Articles of Incorporation dated March 26, 2025](ea025693901ex3-2_exxel.htm) |
| 3.3† | [Exxel Pharma Inc Amended and Restated Bylaws dated \[ \]](ea025693901ex3-3_exxel.htm) |
| 5.1† | [Legal Opinion of Frascona, Joiner, Goodman & Greenstein, P.C.](ea025693901ex5-1_exxel.htm) |
| 10.1\*\*† | [Exclusive License No 2022-04-0094 dated August 21, 2021 between University of California and Exxel Pharma Inc](ea025693901ex10-1_exxel.htm) |
| 10.2\*\*† | [First Amendment dated March 7, 2024 to Exclusive License No 2022-04-0094 between University of California and Exxel Pharma Inc](ea025693901ex10-2_exxel.htm) |
| 10.3\*\*† | [Exclusive License No 2022-04-0096 dated August 21, 2021 between University of California and Exxel Pharma Inc](ea025693901ex10-3_exxel.htm) |
| 10.4\*\*† | [First Amendment dated March 7, 2024 to Exclusive License No 2022-04-0096 between University of California and Exxel Pharma Inc](ea025693901ex10-4_exxel.htm) |
| 10.5#† | [Employment Agreement of Soren Mogelsvang as President and CEO](ea025693901ex10-5_exxel.htm) |
| 10.6#† | [Consulting Agreement of Richard Paul, as Chief Medical Officer](ea025693901ex10-6_exxel.htm) |
| 10.7#† | [Consulting Agreement of Daniele Piomelli as Chief Scientific Officer](ea025693901ex10-7_exxel.htm) |

---

---

| | |
|:---|:---|
| **Exhibit <br> Number** | **Description** |
| 10.8#† | [Consulting Agreement of Robert Dickey as Chief Financial Officer](ea025693901ex10-8_exxel.htm) |
| 10.9† | [Securities Purchase Agreement dated November 19, 2024 between Exxel Pharma Inc. and Investor](ea025693901ex10-9_exxel.htm) |
| 10.10† | [Common Stock Purchase Warrant Agreement dated November 19, 2024](ea025693901ex10-10_exxel.htm) |
| 10.11† | [Second Amendment dated August 8, 2025 to Exclusive License No 2022-04-0094 between University of California and Exxel Pharma Inc](ea025693901ex10-11_exxel.htm) |
| 10.12† | [Second Amendment dated August 28, 2025 to Exclusive License No 2022-04-0096 between University of California and Exxel Pharma Inc](ea025693901ex10-12_exxel.htm) |
| 21.1† | [Subsidiaries of the Registrant](ea025693901ex21-1_exxel.htm) |
| 23.1† | [Consent of dbbmckennon](ea025693901ex23-1_exxel.htm) |
| 23.2† | [Consent of Frascona, Joiner, Goodman & Greenstein, P.C., (Included in Exhibit 5.1)](ea025693901ex5-1_exxel.htm) |
| 24.1 | [Power of Attorney for execution of Registration Statement](#a_019) |
| 99.1† | [Consent of Nitin Kaushal as director nominee](ea025693901ex99-1_exxel.htm) |
| 99.2† | [Consent of Anuj Medhok as director nominee](ea025693901ex99-2_exxel.htm) |
| 99.3† | [Consent of Deborah Geraghty as director nominee](ea025693901ex99-3_exxel.htm) |
| 99.4† | [Audit Committee Charter](ea025693901ex99-4_exxel.htm) |
| 99.5† | [Compensation Committee Charter](ea025693901ex99-5_exxel.htm) |
| 99.6† | [Clawback Policy](ea025693901ex99-6_exxel.htm) |
| 99.7† | [Whistleblower Policy](ea025693901ex99-7_exxel.htm) |
| 107† | [Filing Fee Table](ea025693901ex-fee_exxel.htm) |

---

---

| | |
|:---|:---|
| **\*\*** | Certain portions of this Exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K on the basis that they are not material and are the type of information the registrant treats as confidential or private. |
| **#** | Management contract or compensatory plan, contract or arrangement |
| † | Filed herewith |

---

**Item 17. Undertakings**

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue:

The undersigned hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;1. For purposes of determining any liability under the Securities
Act, the information omitted from the form of prospectus filed as part of this registration Statement in reliance upon Rule 430A
and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the
Securities Act shall be deemed to be part of this Registration Statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;2. For the purpose of determining any liability under the Securities
Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering
thereof.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, on the day of September 19, 2025.

---

| | |
|:---|:---|
| **Exxel Pharma Inc.** | **Exxel Pharma Inc.** |
| By: | */s/ Soren Mogelsvang* |
| Name: | Soren Mogelsvang |
| Title: | Chief Executive officer |

---

**SIGNATURES AND POWER OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Soren Mogelsvang and each of them, his or her true and lawful attorneys-in-fact and agents, each with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments, including post-effective amendments, to this Registration Statement, and any registration statement relating to the offering covered by this Registration Statement and filed pursuant to Rule 462(b) under the Securities Act of 1933, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that each of said attorneys-in-fact and agents, or his or her substitute or substitutes may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Name** | **Position** | **Date** |
| By: | */s/ Soren Mogelsvang* | President, Chief Executive Officer and Director | September 19, 2025 |
|  | Soren Mogelsvang | (Principal Executive Officer) |  |
| By: | */s/ Robert Dickey* | Chief Financial Officer | September 19, 2025 |
|  | Robert Dickey | (Principal Financial Officer and Principal Accounting Officer) |  |
| By: |  | Director and Chairperson | &nbsp;&nbsp;&nbsp;&nbsp;, 2025 |
| By: | */s/ Guy Yachin* | Director | September 19, 2025 |
|  | Guy Yachin |  |  |
| By: |  | Director | &nbsp;&nbsp;&nbsp;&nbsp;, 2025 |
| By: |  | Director | &nbsp;&nbsp;&nbsp;&nbsp;, 2025 |

---

## Exhibit 2.1

**Exhibit 2.1**

**SECURITIES EXCHANGE AGREEMENT**

**THIS AGREEMENT** is dated as of the 18th day of March, 2025.

**AMONG:**

**EXXEL PHARMA INC.**, a company existing under the laws of the Province of British Columbia

(the "**Company**")

**AND:**

**EACH OF THE SECURITY HOLDERS OF THE COMPANY INCORPORATED AS PARTIES TO THIS AGREEMENT BY THEIR CONSENT AND JOINDER**

(collectively, the "**Vendors**")

**AND:**

**ASPIRE BIOSCIENCE, INC.**, a company existing under the laws of the State of Colorado

(the "**Recipient**")

**WHEREAS:**

A. The Vendors are the registered and beneficial owners of one-hundred percent (100%) of the right, title and interest in and to the Vendors Shares (as hereafter defined), the Vendors Options (as hereafter defined) and the Vendors Warrants (as hereafter defined) which in the aggregate represent all of the issued and outstanding Company Shares (as hereafter defined), Company Options (as hereafter defined) and Company Warrants (as hereafter defined); and

B. The Vendors have agreed to transfer to the Recipient one-hundred percent (100%) right, title and interest in and to all of the Vendors Shares, the Vendors Options and the Vendors Warrants, in exchange for the Consideration Shares (as hereafter defined), the Consideration Options (as hereafter defined) and the Consideration Warrants (as hereafter defined), pursuant to the terms and conditions of this Agreement;

**THEREFORE** this Agreement witnesses that in consideration of the premises and mutual covenants contained herein, payment by each party hereto to the others of $10.00 and other good and valuable consideration, the receipt and sufficiency of which is acknowledged by each party hereto, the parties agree as follows:

1. <u>Definitions and Interpretation</u>

1.1 In this Agreement and the recitals hereto, unless the context otherwise requires, the following expressions will have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Adverse Interests**" means any lien, charge, mortgage, hypothec, pledge, assignment,
option, lease, sublease, right to possession, or other security interest, encumbrance or adverse right, restriction or interest of any
nature or kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Applicable Law**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any domestic or foreign statute, law (including common and civil law), code, ordinance, rule, regulation,
restriction or bylaw; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any judgment, order, ruling, decision, writ, decree, injunction or award,

of any governmental entity, statutory body or self-regulatory authority (including a stock exchange), to the extent that the same is legally binding on the person referred to in the context in which the term is used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Closing**" means the completion of the exchange of all of the Vendors Shares, the Vendors
Options and the Vendors Warrants and the other transactions contemplated in this Agreement, in accordance with the terms and conditions
of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Closing Date**" means the date on which the Closing occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Company**" means Exxel Pharma Inc., a corporation incorporated under the laws of the
Province of British Columbia.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Company Shares**" means the common shares in the capital of the Company, as presently
constituted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Company Options**" means the incentive stock options of the Company issued to certain
directors, officers and consultants of the Company in consideration of services provided to the Company, each entitling the holder to
acquire one (1) Company Share under certain terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Company Warrants**" means the share purchase warrants of the Company, each entitling
the holder to acquire one (1) Company Share under certain terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Consideration Shares**" means the Recipient Shares issued in consideration for the Vendors
Shares, pursuant to the terms of this Agreement, in an amount equivalent to the number of Vendors Shares outstanding on Closing adjusted
for the Exchange Ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Consideration Options**" means the incentive stock options of the Recipient, issued
in consideration for the Vendors Options, pursuant to the terms of this Agreement, each entitling the holder to acquire Recipient Shares
on substantially the same terms as the Company Options, in an amount equivalent to the number of Vendors Options outstanding on Closing,
and at a price, adjusted for the Exchange Ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Consideration Warrants**" means the share purchase warrants of the Recipient, issued
in consideration for the Vendors Warrants, pursuant to the terms of this Agreement, each entitling the holder to acquire Recipient Shares
on substantially the same terms as the Company Warrants, in an amount equivalent to the number of Vendors Warrants outstanding on Closing,
and at a price, adjusted for the Exchange Ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Exchange Ratio**" means a ratio determined by the mutual agreement of the Company and
the Recipient, pursuant to which the number of Consideration Shares, Consideration Options and Consideration Warrants which will be issued
by the Recipient in exchange for the outstanding Vendors Shares, Vendors Options and Vendors Warrants will be determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Joinder Agreements**" means the agreements executed by each of the Vendors consenting
to the transactions contemplated by this Agreement and agreeing to be bound by this Agreement as though they were original parties to
this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Recipient**" means Aspire Bioscience, Inc., a corporation existing under the laws of
the State of Colorado.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Recipient Shares**" means the common stock in the capital of the Recipient, as presently
constituted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**Survival Period**" has the meaning set out in section 3.2 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "**Vendors**" means, collectively, all of the holders of the Vendors Shares, the Vendors
Options and the Vendors Warrants, each of which are made parties to this Agreement pursuant to the Joinder Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "**Vendors Shares**" means the 45,993,268 Company Shares held by certain Vendors, and which
represent all of the outstanding Company Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Vendors Options**" means the 3,970,000 Company Options held by certain Vendors, of which
3,720,000 are exercisable at a price of $0.125 and 250,000 are exercisable at a price of $0.25, and which represent all of the outstanding
Company Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "**Vendors Warrants**" means the 600,000 Company Warrants held by certain Vendors, of which
440,000 are exercisable at a price of $0.25 and 160,000 are exercisable at a price of $0.50, and which represent all of the outstanding
Company Warrants.

1.2 In this Agreement, unless something in the subject matter or context is inconsistent therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the division of this Agreement into articles, sections and other subdivisions and the use of headings
are for convenience only and are not intended to define, interpret or limit the scope, extent or intent of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all references in this Agreement to "articles", "sections" and other subdivisions
are to the designated articles, sections or other subdivisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the words "hereof", "hereto", "herein", "hereby", "herewith"
and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular article, section
or other subdivision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the word "or" is not exclusive and the word "including" is not limiting (whether
or not non-limiting language is used with reference thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the words "written" or "in writing" include printing, typewriting or any electronic
means of communication capable of being visibly reproduced at the point of reception including telex, telegraph, telecopy, facsimile or
e-mail;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a "day" shall refer to a calendar day, and references to a "business day" shall
refer to days on which banks are ordinarily open for business in Vancouver, British Columbia, other than a Saturday or a Sunday; in calculating
all time periods the first day of a period is not included and the last day is included, and if a date is or a time period ends on a day
which is not a business day, such date will be extended and the time period will be deemed to expire on the next business day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all references to "$" or "dollars" are references to the lawful currency of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any reference to a statute is a reference to the applicable statute and to any regulations made pursuant
thereto and includes all amendments made thereto and in force from time to time and any statute or regulation that has the effect of supplementing
or superseding such statute or regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) words importing individuals include bodies corporate and other artificial entities, and vice versa; words
importing gender include the other gender; words importing one form of body corporate or artificial entity include all other forms of
bodies corporate or artificial entities; and words importing the singular includes the plural, and vice versa; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the rule of construction to the effect that any ambiguity is to be resolved against the drafting party
shall not be applicable in the construction or interpretation of any of the terms and conditions of this Agreement.

2. <u>Purchase and Sale</u>

2.1 Subject to the terms and conditions of this Agreement, at the Closing, each Vendor shall transfer to the Recipient one-hundred percent (100%) right, title and interest in and to their respective Vendors Shares (which in the aggregate represent all of the issued and outstanding Company Shares), Vendors Options (which in the aggregate represent all of the issued and outstanding Company Options) and Vendors Warrants (as applicable, and which in the aggregate represent all of the issued and outstanding Company Warrants), free and clear of all Adverse Interests.

2.2 In exchange for the Vendors Shares, the Vendors Options and the Vendors Warrants, the Recipient shall issue to the Vendors the Consideration Shares, the Consideration Options and the Consideration Warrants at the Closing, duly registered in accordance with the existing registers of Company Shares, Company Options and Company Warrants maintained by the Company and in such amounts as determined by adjusting the number of Vendors Shares, Vendors Options and Vendors Warrants held by each Vendor by the Exchange Ratio.

2.3 The Vendors hereby acknowledge that all Consideration Shares, Consideration Options and Consideration Warrants issued in connection with the transactions contemplated in this Agreement will be subject to hold periods prescribed by applicable securities law, and that these hold period will restrict the ability of the Vendors to trade the Consideration Shares, Consideration Options and the Consideration Warrants. The Vendors further acknowledge that certificates evidencing the Consideration Shares, the Consideration Options and the Consideration Warrants issued under this Agreement may be legended to reflect the application of these hold periods.

3. <u>Representations and Warranties</u>

3.1 Each of the Vendors represents and warrants to the Recipient, and acknowledges that the Recipient is relying on such representations and warranties, that as of the date of this Agreement and the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if it is not an individual, it is duly formed, validly existing and in good standing under the laws of
its jurisdiction of formation, or if it is an individual, it is of full age of majority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has the legal power and capacity and has taken all necessary action and has obtained all necessary
approvals to enter into and execute this Agreement and to carry out its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it has duly executed this Agreement and this Agreement constitutes a legal, valid and binding obligation
of it enforceable against it in accordance with the Agreement's terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated
herein by the Vendors will constitute or result in a breach of or default under, or create a state of facts which after notice or lapse
of time or both will constitute or result in a breach of or default under, or will otherwise conflict with (i) if it is not an individual,
its constituting documents or any resolutions of its directors, shareholders or other stakeholders, (ii) any indenture, agreement or instrument
to which it is a party or by which it is bound, or (iii) any Applicable Laws or orders, rulings or other judgments or decisions of a court
or regulatory authority having jurisdiction over it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it is the registered holder and beneficial owner of one-hundred percent (100%) right, title and interest
in and to its respective Vendors Shares, Vendors Options and Vendors Warrants, as applicable; it has good and marketable title to such
securities free and clear of all Adverse Interests; it holds no other securities issued by the Company other than such Vendors Shares,
Vendors Options and Vendors Warrants, as applicable; and it holds no right, privilege, option, warrant or agreement to purchase or otherwise
acquire, directly or indirectly, any other shares in the capital of the Company, aside from any rights held pursuant to the Company Options
and the Company Warrants, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no person has any right, privilege, option, warrant or agreement, contingent or otherwise, or any of the
foregoing capable of become any right, privilege, option, warrant or agreement, to purchase or otherwise acquire, directly or indirectly,
any of its respective Vendors Shares, Vendors Options or Vendors Warrants, as applicable, or any interest or entitlement therein (other
than as provided by this Agreement).

3.2 The representations and warranties set out herein shall survive the Closing and, notwithstanding any investigation made by or on behalf of a party hereto and the occurrence of the Closing, shall continue in full force and effect for a period of two (2) years following the date hereof (the "**Survival Period**").

4. <u>Conditions of Closing</u>

4.1 The Recipient shall not be obligated to complete the purchase of the Vendors Shares pursuant to this Agreement and the other transactions contemplated herein, unless each of the conditions listed below is satisfied, it being understood that the said conditions are included for the exclusive benefit of the Recipient:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the representations and warranties of the Vendors in this Agreement shall be true and correct in all material
respects at the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the covenants and conditions of the Vendors and the Company to be performed and observed in this Agreement
prior to or at Closing shall have been performed and observed in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the receipt of any consents contemplated by this Agreement or otherwise necessary for this Agreement and
the completion of the transactions contemplated herein, in form and content and upon such conditions, if any, acceptable to the Recipient,
and all such approvals being in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Company and the Recipient shall have determined the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all holders of the Company Shares, the Company Options and the Company Warrants shall have duly executed
and delivered Joinder Agreements to the Recipient; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Board of Directors of the Company shall have approved the transfer of the Company Shares, the Company
Options and the Company Warrants contemplated in this Agreement, in accordance with the Articles of the Company.

4.2 If any condition in section 4.1 hereof has not been fulfilled or if any such condition is or becomes impossible to satisfy, other than as a result of the failure of the Recipient to comply with its obligations under this Agreement, then the Recipient may, without limiting any rights or remedies available to the Recipient at law or in equity, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) terminate this Agreement by notice to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) waive compliance with any such condition without prejudice to its right of termination in the event of
the non-fulfillment of any other condition for its benefit.

5. <u>Closing</u>

5.1 The Closing shall take place electronically on such date and time as may be agreed by the Company and the Recipient.

5.2 At Closing, the Vendors and the Company shall deliver or cause to be delivered to the Recipient the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) certificates representing the Vendors Shares owned by the Vendors and duly endorsed for transfer to the
Recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) certificates representing the Vendors Options owned by the Vendors and duly endorsed for transfer to the
Recipient

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) certificates representing the Vendors Warrants owned by the Vendors and duly endorsed for transfer to
the Recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a certificate representing the Vendors Shares, duly registered in the name of the Recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a certificate representing the Vendors Options, duly registered in the name of the Recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a certificate representing the Vendors Warrants, duly registered in the name of the Recipient; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) such other documents and instruments in connection with the Closing as may be reasonably requested by
the Recipient.

5.3 At Closing, the Recipient shall deliver or cause to be delivered to the Vendors certificates representing the Consideration Shares, the Consideration Options and the Consideration Warrants, duly registered in accordance with the existing registers of Company Shares, Company Options and Company Warrants maintained by the Company.

6. <u>Termination</u>

6.1 This Agreement may be terminated at any time prior to the Closing Date by the mutual agreement of the Company and the Recipient.

6.2 Upon termination of this Agreement, each party hereto shall be released from all obligations under this Agreement. Each party's right of termination is in addition to and not in derogation or limitation of any other rights, claims, causes of action or other remedy that such party may have under this Agreement or otherwise at law or in equity with respect to such termination and any misrepresentation, breach of covenant or indemnity contained herein.

7. <u>Notices</u>

7.1 Any notice, communication, instrument or document required or permitted to be given under this Agreement shall be in writing and may be given by personal delivery, pre-paid, certified or registered mail, or by telecommunication, facsimile, email or other similar form of communication (in each case with electronic confirmed receipt), and such shall be deemed to have been given (i) if effected by personal delivery, or telecommunication, facsimile or other similar form of communication (with electronic confirmed receipt), at the time of delivery or electronic confirmed receipt unless such occurs after the recipient's customary business hours in which case it shall be deemed to have been given on the next business day; and (ii) if effected by mail, on the fourth business day after mailing excluding all days on which postal service is disrupted.

7.2 A party may at any time in the above manner give notice to the other parties of any change of address and after the giving of such notice the address or addresses specified will be the address of such party for the purpose of giving notice hereunder.

8. <u>Expenses</u>

8.1 Each of the parties hereto shall bear all expenses incurred by such party in connection with the preparation and fulfillment of this Agreement, including but not limited to the fees and expenses of their legal counsel, accountants, financial and investment advisors, brokers and finders.

9. <u>General</u>

9.1 This Agreement constitutes the entire agreement among the parties and replaces and supersedes all prior agreements, memoranda, correspondence, communications, negotiations and representations, whether oral or written, express or implied, statutory or otherwise among the parties with respect to the subject matter herein. There are no implied covenants contained in this Agreement other than those of good faith and fair dealing.

9.2 The parties shall from time to time prior to or after Closing execute and deliver any and all such instruments and other documents and perform any and all such acts and other things as may be necessary or desirable to carry out the intent of this Agreement.

9.3 Any amendments hereto or waivers in respect hereof shall only be effective if made in writing and executed by the parties thereto. No waiver shall constitute a waiver of any other provision or act as a continuing waiver unless such is expressly provided for.

9.4 Time is of the essence of this Agreement. Any failure to exercise any rights provided for hereunder shall not, in the absence of a waiver in accordance with the terms hereof, affect the subsequent enforcement of such right.

9.5 The invalidity or unenforceability of any provision hereof shall not affect or impair the validity or enforceability of the remainder of the Agreement or any other provision hereof. In the event that any provision hereof is invalid or unenforceable in a given jurisdiction, that shall not affect the validity or enforceability of the provision in any other jurisdiction. The courts shall have the power to modify this Agreement, in a manner consistent with the intent of the parties, in order to limit the application of any such offensive provision to the maximum extent permitted by law.

9.6 This Agreement and any rights herein or hereto shall not be assigned or otherwise transferred by any party hereto without the express written consent of the other parties hereto. This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

9.7 This Agreement shall be exclusively governed by and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein. For the purposes of all legal proceedings, this Agreement shall be deemed to have been made and performed in British Columbia, and the parties hereby irrevocably agree that the courts of the Province British Columbia shall have exclusive jurisdiction to entertain any action arising under this Agreement.

9.8 Each of the Vendors acknowledges and agrees that this Agreement has been prepared by Cassels Brock & Blackwell LLP, as legal counsel to the Company, and that at no time has Cassels Brock & Blackwell LLP provided legal advice to the Vendors, and each of the Vendors hereby acknowledge and declare that they have either sought the requisite independent legal advice in connection with the entering into of this Agreement or have waived their right thereto.

9.9 This Agreement may be executed and delivered in two or more counterparts and by facsimile and by electronic delivery. Each such counterpart, facsimile and electronically delivered copy shall be deemed to form one and the same and an originally executed instrument, bearing the date set forth on the face page hereof notwithstanding the date of execution or delivery.

**IN WITNESS WHEREOF** the parties hereto have executed this Agreement as of the date first above written.

---

| | | | |
|:---|:---|:---|:---|
| **EXXEL PHARMA INC.** | **EXXEL PHARMA INC.** | **ASPIRE BIOSCIENCE, INC.** | **ASPIRE BIOSCIENCE, INC.** |
| Per: | | Per: | |
|  | **Authorized Signatory** |  | Authorized Signatory |

---

**EACH OF THE SECURITY HOLDERS OF THE COMPANY INCORPORATED AS PARTIES TO THIS AGREEMENT BY THEIR CONSENT AND JOINDER**

[*SIGNATURE PAGE TO SECURITIES EXCHANGE AGREEMENT*]

## Exhibit 3.1

**Exhibit 3.1**

---

| | | |
|:---|:---|:---|
|  | ![](ex3-1_001.jpg) | Colorado Secretary of State |
|  | ![](ex3-1_001.jpg) | Date and Time: 06/29/2018 11:09 AM |
| Document must be filed electronically. | ![](ex3-1_001.jpg) | ID Number: 20161311456 |
| Paper documents are not accepted. | ![](ex3-1_001.jpg) |  |
| Fees & forms are subject to change. | ![](ex3-1_001.jpg) | Document number: 20181520718 |
| For more information or to print copies of filed documents, visit www.sos.state.co.us. | ![](ex3-1_001.jpg) | Amount Paid: $100.00 |

---

ABOVE SPACE FOR OFFICE USE ONLY

**Statement of Conversion**

filed pursuant to § 7-90-201.7 (3) of the Colorado Revised Statutes (C.R.S.)

1. For the converting entity, its ID number (if applicable),
entity name or true name, form of entity, jurisdiction under the law of which it is formed, and principal address are

---

| | | | |
|:---|:---|:---|:---|
| ID number | 20161311456 | 20161311456 |  |
|  | *(Colorado Secretary of State ID number)* | *(Colorado Secretary of State ID number)* |  |
| Entity name or true name | Aspire BioScience, LLC | Aspire BioScience, LLC | Aspire BioScience, LLC |
| Form of entity | Limited Liability Company | Limited Liability Company | Limited Liability Company |
| Jurisdiction | Colorado | Colorado | Colorado |
| Street address | 12635 E. Montview Blvd | 12635 E. Montview Blvd | 12635 E. Montview Blvd |
|  | *(Street number and name)* | *(Street number and name)* |  |
|  | Suite 100 | Suite 100 | Suite 100 |
|  | Aurora | CO | 80045 |
|  | *(City)* | *(State)* | *(ZIP/Postal Code)* |
|  |  | United States |  |
|  | *(Province – if applicable)* | *(Country)* |  |
| Mailing address |  |  |  |
| (leave blank if same as street address) | *(Street number and name or Post Office Box information)* | *(Street number and name or Post Office Box information)* | *(Street number and name or Post Office Box information)* |
|  | *(City)* | *(State)* | *(ZIP/Postal Code)* |
|  | *(Province – if applicable)* | *(Country)* |  |

---

 

---

| | | |
|:---|:---|:---|
| 2. | The entity name of the resulting entity is | Aspire BioScience, Inc. |
|  | *(Caution: The use of certain terms or abbreviations are restricted by law. Read instructions for more information.)* | *(Caution: The use of certain terms or abbreviations are restricted by law. Read instructions for more information.)* |

---

 

3. The converting entity has been converted into the resulting
entity pursuant to section 7-90-201.7, C.R.S.

4. *(If applicable, adopt the following statement by marking the box and include an attachment.)* <br> ☐ This document contains additional information as provided by law.

---

| | | |
|:---|:---|:---|
| 5. | *(Caution: Leave blank if the document does not have a delayed effective date. Stating a delayed effective date has significant legal consequences. Read instructions before entering a date.)* | *(Caution: Leave blank if the document does not have a delayed effective date. Stating a delayed effective date has significant legal consequences. Read instructions before entering a date.)* |
|  | *(If the following statement applies, adopt the statement by entering a date and, if applicable, time using the required format.)* | *(If the following statement applies, adopt the statement by entering a date and, if applicable, time using the required format.)* |
|  | The delayed effective date and, if applicable, time of this document are | 06/30/2018 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(mm/dd/yyyy hour:minute am/pm)* |

---

Page 1 of 2

Notice:

Causing this document to be delivered to the Secretary of State for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that such document is such individual's act and deed, or that such individual in good faith believes such document is the act and deed of the person on whose behalf such individual is causing such document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S. and, if applicable, the constituent documents and the organic statutes, and that such individual in good faith believes the facts stated in such document are true and such document complies with the requirements of that Part, the constituent documents, and the organic statutes.

This perjury notice applies to each individual who causes this document to be delivered to the Secretary of State, whether or not such individual is identified in this document as one who has caused it to be delivered.

6. The true name and mailing address of the individual causing
this document to be delivered for filing are

---

| | | |
|:---|:---|:---|
| Mogelsvang | Soren |  |
| *(Last)* | *(First)* | *(Middle)* *(Suffix)* |
| 751 Grant Pl | 751 Grant Pl | 751 Grant Pl |
| *(Street number and name or Post Office Box information)* | *(Street number and name or Post Office Box information)* | *(Street number and name or Post Office Box information)* |
| Boulder | CO | 80302 |
| *(City)* | *(State)* | *(ZIP/Postal Code)* |
|  |  | United States. |
| *(Province – if applicable)* | *(Province – if applicable)* | *(Country)* |

---

*(If applicable, adopt the following statement by marking the box and include an attachment.)*

☐ This document contains the true name and mailing address of one or more additional individuals causing the document to be delivered for filing.

Disclaimer:

This form/cover sheet, and any related instructions, are not intended to provide legal, business or tax advice, and are furnished without representation or warranty. While this form/cover sheet is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form/cover sheet. Questions should be addressed to the user's legal, business or tax advisor(s).

Page 2 of 2

---

| | | |
|:---|:---|:---|
|  | ![](ex3-1_001.jpg) | Colorado Secretary of State |
|  | ![](ex3-1_001.jpg) | Date and Time: 06/29/2018 11:09 AM |
| Document must be filed electronically. | ![](ex3-1_001.jpg) | ID Number: 20161311456 |
| Paper documents are not accepted. | ![](ex3-1_001.jpg) |  |
| Fees & forms are subject to change. | ![](ex3-1_001.jpg) | Document number: 20181520718 |
| For more information or to print copies<br> of filed documents, visit www.sos.state.co.us. | ![](ex3-1_001.jpg) | Amount Paid: $100.00 |

---

ABOVE SPACE FOR OFFICE USE ONLY

**Articles of Incorporation for a Profit Corporation**

filed pursuant to § 7-102-101 and § 7-102-102 of the Colorado Revised Statutes (C.R.S.)

1. The domestic entity name for the corporation is Aspire
BioScience, Inc.

*(Caution**:** The use of certain terms or abbreviations are restricted by law. Read instructions for more information.)*

 

2. The principal office address of the corporation's initial
principal office is

---

| | | | |
|:---|:---|:---|:---|
| Street address | 12635 E. Montview Blvd | 12635 E. Montview Blvd | 12635 E. Montview Blvd |
|  | *(Street number and name)* | *(Street number and name)* |  |
|  | Suite 100 | Suite 100 | Suite 100 |
|  | Aurora | CO | 80045 |
|  | *(City)* | *(State)* | *(ZIP/Postal Code)* |
|  |  | United States |  |
|  | *(Province – if applicable)* | *(Country)* |  |
| Mailing address |  |  |  |
| (leave blank if same as street address) | *(Street number and name or Post Office Box information)* | *(Street number and name or Post Office Box information)* | *(Street number and name or Post Office Box information)* |
|  | *(City)* | *(State)* | *(ZIP/Postal Code)* |
|  |  | . |  |
|  | *(Province – if applicable)* | *(Country)* |  |

---

3. The registered agent name and registered agent address of
the corporation's initial registered agent are

---

| | | |
|:---|:---|:---|
| Name | Mogelsvang | Soren |
| &nbsp;&nbsp;&nbsp;*(if an individual)* | *(Last)* | *(First)* *(Middle)* *(Suffix)* |
| &nbsp;&nbsp;&nbsp;or |  |  |
| &nbsp;&nbsp;&nbsp;(if an entity) |  |  |
| *(Caution: Do not provide both an individual and an entity name.)* | *(Caution: Do not provide both an individual and an entity name.)* | *(Caution: Do not provide both an individual and an entity name.)* |
| Street address | 751 Grant Pl | 751 Grant Pl |
|  | *(Street number and name*) | *(Street number and name*) |
|  | Boulder | CO |
|  | *(City)* | *(State)* |
| Mailing address |  |  |
| (leave blank if same as street address) | *(Street number and name or Post Office Box information)* | *(Street number and name or Post Office Box information)* |
|  |  | CO |
|  | *(City)* | *(State)* |

---

Page 1 of 3

*(The following statement is adopted by marking the box.)*

&nbsp;&nbsp;&nbsp;&nbsp;☒ The person appointed as registered agent above has consented
to being so appointed.

4. The true name and mailing address of the incorporator are

---

| | | | |
|:---|:---|:---|:---|
| Name | Soren | Mogelsvang |  |
| &nbsp;&nbsp;&nbsp;*(if an individual)* | *(Last)* | *(First)* | *(Middle)* *(Suffix)* |
| &nbsp;&nbsp;&nbsp;or |  |  |  |
| &nbsp;&nbsp;&nbsp;(if an entity) |  |  |  |
| *(Caution: Do not provide both an individual and an entity name.)* | *(Caution: Do not provide both an individual and an entity name.)* | *(Caution: Do not provide both an individual and an entity name.)* | *(Caution: Do not provide both an individual and an entity name.)* |
| Mailing address | 751 Grant Pl | 751 Grant Pl | 751 Grant Pl |
|  | *(Street number and name or Post Office Box information)* | *(Street number and name or Post Office Box information)* | *(Street number and name or Post Office Box information)* |
|  | Boulder | CO | 80302 |
|  | *(City)* | *(State)* | *(ZIP/Postal Code)* |
|  |  |  | United States. |
|  | *(Province – if applicable)* | *(Province – if applicable)* | *(Country)* |

---

*(If the following statement applies, adopt the statement by marking the box and include an attachment.)*

☐ The corporation has one or more additional incorporators and the name and mailing address of each additional incorporator are stated in an attachment.

5. The classes of shares and number of shares of each class
that the corporation is authorized to issue are as follows.

---

| | |
|:---|:---|
| ![](ex3-1_002.jpg) | The corporation is authorized to issue <u>100</u> common shares that shall have unlimited voting rights and are entitled to receive the net assets of the corporation upon dissolution. |
| ![](ex3-1_003.jpg) | Information regarding shares as required by section 7-106-101, C.R.S., is included in an attachment. |

---

6. *(If the following statement applies, adopt the statement by marking the box and include an attachment.)* 

☐ This document contains additional information as provided by law.

7. *(Caution **:** Leave blank if the document does not have a delayed effective date. Stating a delayed effective date has significant legal consequences. Read instructions before entering a date.)* 

 

*(If the following statement applies, adopt the statement by entering a date and, if applicable, time using the required format.)*

The delayed effective date and, if applicable, time of this document is/are <u>06/30/2018.</u> <br> *(mm/dd/yyyy hour:minute am/pm)*

Notice:

Causing this document to be delivered to the Secretary of State for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that the document is the individual's act and deed, or that the individual in good faith believes the document is the act and deed of the person on whose behalf the individual is causing the document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S., the constituent documents, and the organic statutes, and that the individual in good faith believes the facts stated in the document are true and the document complies with the requirements of that Part, the constituent documents, and the organic statutes.

This perjury notice applies to each individual who causes this document to be delivered to the Secretary of State, whether or not such individual is named in the document as one who has caused it to be delivered.

Page 2 of 3

8. The true name and mailing address of the individual causing
the document to be delivered for filing are

---

| | | |
|:---|:---|:---|
| Mogelsvang | Soren |  |
| *(Last)* | *(First)* | *(Middle)* *(Suffix)* |
| 751 Grant Pl | 751 Grant Pl | 751 Grant Pl |
| *(Street number and name or Post Office Box information*) | *(Street number and name or Post Office Box information*) | *(Street number and name or Post Office Box information*) |
| Boulder | CO | 80302 |
| *(City)* | *(State)* | *(ZIP/Postal Code)* |
|  |  | United States. |
| *(Province – if applicable)* | *(Province – if applicable)* | *(Country)* |

---

 

*(If the following statement applies, adopt the statement by marking the box and include an attachment.)*

☐ This document contains the true name and mailing address of one or more additional individuals causing the document to be delivered for filing.

Disclaimer:

This form/cover sheet, and any related instructions, are not intended to provide legal, business or tax advice, and are furnished without representation or warranty. While this form/cover sheet is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form/cover sheet. Questions should be addressed to the user's legal, business or tax advisor(s).

Page 3 of 3

## Exhibit 3.2

**Exhibit 3.2**

**AMENDED ARTICLES OF INCORPORATION**

**OF**

**EXXEL PHARMA INC.**

Pursuant to Section 7-110-106 of the Colorado Business Corporation Act (the "Act"), Exxel Pharma Inc., (formerly known as Aspire BioScience, Inc.), a Colorado Corporation, hereby amends its Articles of Incorporation as follows:

**FIRST**: The Corporation shall have and may exercise all of the rights, powers and privileges now or hereafter conferred by the laws of the State of Colorado upon Corporations organized under such laws. In addition, the Corporation may do everything necessary, suitable or proper for the accomplishment of any of its corporate purposes. The Corporation may conduct part or all of its business in any part of Colorado, the United States or the world and may hold, purchase, mortgage, lease and convey real and personal property in any of such places.

**SECOND**: The Corporation shall have authority to issue a total of two hundred sixty million (260,000,000) shares, of which 250,000,000 shares shall be shares of common stock without par value, and 10,000,000 shares shall be shares of preferred stock without par value.

**Common Stock**. After the requirements with respect to preferential dividends on the preferred stock, if any, shall have been met, and after the Corporation shall have complied with all the requirements, if any, with respect to the setting aside of sums as sinking funds or redemption or purchase accounts, then, and not otherwise, the holders of the common stock shall be entitled to receive such dividends as may be declared from time to time by the Board of Directors of the Corporation.

After distribution in full of the preferential amount, if any, to be distributed to the holders of the preferred stock in the event of voluntary or involuntary liquidation, distribution, or sale of assets, dissolution, or winding-up of the Corporation, the holders of the common stock shall be entitled to receive all of the remaining assets of the Corporation, tangible and intangible, of whatever kind available for distribution to shareholders, ratably in proportion to the number of shares of common stock held by them respectively.

Except as may otherwise be required by law, each shareholder of record shall have one vote for each share of common stock standing in the shareholders name on the books of the Corporation and entitled to vote, except that in the election of directors each shareholder shall have as many votes for each share held by that shareholder as there are directors to be elected and for whose election the shareholder has a right to vote. Cumulative voting shall not be permitted in the election of directors or otherwise.

**Preferred Stock**. Shares of preferred stock may be issued from time to time in one or more series as determined by the Board of Directors. The Board of Directors is hereby authorized, by resolution or resolutions, to provide from time to time, out of the unissued shares of preferred stock not then allocated to any series of preferred stock, for a series of preferred stock. Each such series shall have distinctive serial designations. Before any shares of any such series of preferred stock are issued, the Board of Directors shall fix and determine, and is hereby expressly empowered to fix and determine, by resolution or resolutions, the voting powers, full or limited, or no voting rights, and the designations, preferences and relative, optional or other special rights, and the qualifications, limitations and restrictions thereof as provided by Colorado law. Before issuing any shares of a class or series, the Corporation shall deliver to the Secretary of State for filing, a certificate of designation or other amendment to these articles of Incorporation that sets forth information required by Colorado law, including, but not limited to, the designations, preferences, limitations and relative rights of the class or series of shares.

**THIRD**: Unless ordered by a court of competent jurisdiction, at all meetings of shareholders one-third of the shares of a voting group entitled to vote at such meeting, represented in person or by proxy, shall constitute a quorum of that voting group.

**FOURTH:** The number of directors of the Corporation shall be fixed by the bylaws, or if the bylaws fail to fix such a number, then by resolution adopted from time to time by the board of directors.

**FIFTH**: The Corporation shall indemnify, to the maximum extent permitted by law, any person who is or was a director, officer, agent, fiduciary or employee of the Corporation against any claim, liability or expense arising against or incurred by such person made party to a proceeding because he is or was a director, officer, agent, fiduciary or employee of the Corporation or because he is or was serving another entity or employee benefit plan as a director, officer, partner, trustee, employee, fiduciary or agent at the Corporation's request. The Corporation shall further have the authority to the maximum extent permitted by law to purchase and maintain insurance providing such indemnification.

**SIXTH**: No director of this Corporation shall have any personal liability for monetary damages to the Corporation or its shareholders for breach of his fiduciary duty as a director, except that this provision shall not eliminate or limit the personal liability of a director to the Corporation or its shareholders for monetary damages for: (i) any breach of the director's duty of loyalty to the Corporation or its shareholders; (ii) acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; (iii) voting for or assenting to a distribution in violation of Colorado Revised Statutes Section 7-106-401 or the articles of Incorporation if it is established that the director did not perform his duties in compliance with Colorado Revised Statutes Section 7-108-401, provided that the personal liability of a director in this circumstance shall be limited to the amount of the distribution which exceeds what could have been distributed without violation of Colorado Revised Statutes Section 7-106-401 or the articles of Incorporation; or (iv) any transaction from which the director directly or indirectly derives an improper personal benefit. Nothing contained herein will be construed to deprive any director of his right to all defenses ordinarily available to a director nor will anything herein be construed to deprive any director of any right he may have for contribution from any other director or other person.

**SEVENTH**: As used in this paragraph, "conflicting interest transaction" means any of the following: (i) a loan or other assistance by the Corporation to a director of the Corporation or to an entity in which a director of the Corporation is a director or officer or has a financial interest; (ii) a guaranty by the Corporation of an obligation of a director of the Corporation or of an obligation of an entity in which a director of the Corporation is a director or officer or has a financial interest; or (iii) a contract or transaction between the Corporation and a director of the Corporation or between the Corporation and an entity in which a director of the Corporation is a director or officer or has a financial interest. No conflicting interest transaction shall be void or voidable, be enjoined, be set aside, or give rise to an award of damages or other sanctions in a proceeding by a shareholder or by or in the right of the Corporation, solely because the conflicting interest transaction involves a director of the Corporation or an entity in which a director of the Corporation is a director or officer or has a financial interest, or solely because the director is present at or participates in the meeting of the Corporation's board of directors or of the committee of the board of directors which authorizes, approves or ratifies a conflicting interest transaction, or solely because the director's vote is counted for such purpose if: (A) the material facts as to the director's relationship or interest and as to the conflicting interest transaction are disclosed or are known to the board of directors or the committee, and the board of directors or committee in good faith authorizes, approves or ratifies the conflicting interest transaction by the affirmative vote of a majority of the disinterested directors, even though the disinterested directors are less than a quorum; or (B) the material facts as to the director's relationship or interest and as to the conflicting interest transaction are disclosed or are known to the shareholders entitled to vote thereon, and the conflicting interest transaction is specifically authorized, approved or ratified in good faith by a vote of the shareholders; or (C) a conflicting interest transaction is fair as to the Corporation as of the time it is authorized, approved or ratified by the board of directors, a committee thereof, or the shareholders. Common or interested directors may be counted in determining the presence of a quorum at a meeting of the board of directors or of a committee which authorizes, approves or ratifies the conflicting interest transaction.

**EIGHTH**: Unless these Articles of Incorporation require that an action be taken at a shareholders' meeting, or unless shares are entitled to be voted cumulatively in the election of directors, any action required or permitted to be taken by the Corporation may be authorized by written consent of fewer than all the voting shares. The consent must be obtained from the same number of voting shares as would be needed to authorize such action at a meeting if all of the shares entitled to vote thereon were present and voted. If shares are entitled to be voted cumulatively in the election of directors, shareholders may take action to elect or remove directors without a meeting only if these Articles of Incorporation do not require that such action be taken at a shareholders' meeting, and all of the shareholders entitled to vote in the election or removal sign writings describing and consenting to the election or removal of the same directors.

## Exhibit 3.3

**Exhibit 3.3**

**AMENDED AND RESTATED BYLAWS<br> OF**

**ASPIRE BIOSCIENCE, INC.**

**ARTICLE I <br> SHAREHOLDERS**

**1.1. Annual Shareholders' Meeting**. An annual shareholders' meeting shall be held each year on the date and at the time and place fixed from time to time by the Board of Directors; provided, however, that the annual meeting each year shall be held on a date that is within one year after the close of the last fiscal year. Failure to hold the annual meeting at the designated time shall not affect the validity of any action taken by the Corporation. If the Board of Directors fails to call the annual meeting, any shareholder may make a demand in writing to any officer of the Corporation that an annual meeting be held.

**1.2. Special Shareholders' Meeting**. A special shareholders' meeting for any purpose or purposes, may be called by the Board of Directors. The Corporation shall also hold a special shareholders' meeting in the event it receives, in the manner specified in Section 7.3, one or more written demands for the meeting, stating the purpose or purposes for which it is to be held, signed and dated by the holders of shares representing not less than one-tenth of all of the votes entitled to be cast on any issue at the meeting. Special meetings shall be held at the principal office of the Corporation or at such other place as the Board of Directors may determine.

1.3. Record Date for Determination of Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In order to make a determination of shareholders (1) entitled to notice of or to vote at any shareholders' meeting or at any adjournment of a shareholders' meeting, (2) entitled to demand a special shareholders' meeting, (3) entitled to take any other action, (4) entitled to receive payment of a share dividend or a distribution, or (5) for any other purpose, the Board of Directors may fix a future date as the record date for such determination of shareholders. The record date may be fixed not more than seventy (70) days before the date of the proposed meeting or action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise specified when the record date is fixed, the time of day for determination of shareholders shall be as of the Corporation's close of business on the record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A determination of shareholders entitled to be given notice of or to vote at a shareholders' meeting is effective for any adjournment of the meeting unless the Board of Directors fixes a new record date, which the board shall do if the meeting is adjourned to a date more than one hundred twenty (120) days after the date fixed for the original meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If no record date is otherwise fixed, the record date for determining shareholders entitled to be given notice of and to vote at an annual or special shareholders' meeting is the day before the first notice is given to shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The record date for determining shareholders entitled to take action without a meeting pursuant to Section 1.10(a) or entitled to be given notice under Section 1.10(f) of shareholder action taken by written consent pursuant to Section 1.10, is the date the Corporation first receives a writing upon which the action is taken pursuant to Section 1.10.

**1.4. Voting List.** The officer or agent having charge of the stock transfer records for shares of the Corporation shall prepare before each shareholders' meeting, a complete record of the shareholders entitled to vote at the meeting or any adjournment of the meeting, an alphabetical list of all shareholders entitled to notice of the meeting, arranged by voting group and by class and series of share, with the address of and the number of shares held by each shareholder. The list shall be available for inspection by any shareholder beginning the earlier of ten (10) days before the meeting for which the list was prepared or two (2) business days after the notice of the meeting is given and continuing through the meeting, and any adjournment of the meeting during regular corporate hours at the principal office of the Corporation. The list shall also be produced and kept open at the time and place of the meeting and shall be subject to the inspection of any shareholder during the entire meeting, and any adjournment thereafter. If any shareholders are participating in the meeting by means of telecommunication, the list must be open to examination by the shareholders for the duration of the meeting on a reasonably accessible electronic network, and the information required to access the list must be provided to shareholders with the notice of the meeting.

1.5. Notice to Shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall give notice to shareholders of the date, time, and place, and if participation in the meeting by means of telecommunication has been authorized by the Board of Directors, the means of any telecommunication by which shareholders may be considered present and may vote at each annual or special shareholders' meeting, no fewer than ten (10) nor more than sixty (60) days before the date of the meeting; except that, if the Articles of Incorporation are to be amended to increase the number of authorized shares, at least thirty (30) days' notice shall be given. Except as otherwise required by the Colorado Business Corporation Act, the Corporation shall be required to give such notice only to shareholders entitled to vote at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notice of an annual shareholders' meeting need not include a description of the purpose or purposes for which the meeting is called unless a purpose of the meeting is to consider an amendment to the Articles of Incorporation, a restatement of the Articles of Incorporation, a plan of merger or share exchange, disposition of substantially all of the property of the Corporation, consent by the Corporation to the disposition of property by another entity, or dissolution of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notice of a special shareholders' meeting shall include a description of the purpose or purposes for which the meeting is called.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notice of a shareholders' meeting shall be in writing and shall be given

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) by deposit in the United States mail, properly addressed to the shareholder's address shown in the Corporation's current record of shareholders, first class postage prepaid, and, if so given, shall be effective when mailed; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) by telegraph, teletype, electronically transmitted facsimile, electronic mail, mail, or private carrier or by personal delivery to the shareholder, and, if so given, shall be effective when actually received by the shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If an annual or special shareholders' meeting is adjourned to a different date, time, or place, notice need not be given of the new date, time, or place if the new date, time, or place is announced at the meeting before adjournment; provided, however, that, if a new record date for the adjourned meeting is fixed pursuant to Section 1.3(c), notice of the adjourned meeting shall be given to persons who are shareholders as of the new record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If three (3) successive notices are given by the Corporation, whether with respect to a shareholders' meeting or otherwise, to a shareholder and are returned as undeliverable, no further notices to such shareholder shall be necessary until another address for the shareholder is made known to the Corporation.

**1.6. Quorum**. Unless otherwise required by law, the Articles of Incorporation or these Bylaws, a quorum shall be present for action on any matter at a shareholder meeting if one-third (1/3) of the votes entitled to be cast on the matter by a voting group are represented either in person, by the use of telecommunication or by proxy. If a quorum does not exist with respect to any voting group, any shareholder or proxy that is present at the meeting, whether or not a member of that voting group, may adjourn the meeting to a different date, time, or place, and (subject to the next sentence) notice need not be given of the new date, time, or place if the new date, time, or place is announced at the meeting before adjournment. If a new record date for the adjourned meeting is or must be fixed pursuant to Section 1.3(c), notice of the adjourned meeting shall be given pursuant to Section 1.5 to persons who are shareholders as of the new record date. At any adjourned meeting at which a quorum exists, any matter may be acted upon that could have been acted upon at the meeting originally called; provided, however, that, if new notice is given of the adjourned meeting, then such notice shall state the purpose or purposes of the adjourned meeting sufficiently to permit action on such matters. Once a quorum has been established at a meeting, the shareholders present can continue to do business until adjournment of the meeting notwithstanding the withdrawal of enough shareholders to leave less than a quorum.

**1.7. Voting Entitlement of Shares**. Except as stated in the Articles of Incorporation, each outstanding share, regardless of class, is entitled to one vote, and each fractional share is entitled to a corresponding fractional vote, on each matter voted on at a shareholders' meeting.

**1.8. Proxies; Acceptance of Votes and Consents.** A shareholder may vote either in person or by proxy or proxies appointed in writing signed by the shareholder or his or her attorney-in-fact. An appointment form sufficient to appoint a proxy includes any transmission that creates a record capable of authentication, including, but not limited to, a telegram, teletype, electronic mail, or other electronic transmission, providing a written statement for the appointment of the proxy, from which it can be determined that the shareholder transmitted or authorized the transmission for the appointment. An appointment of a proxy is effective when received by the officer or agent authorized by the Corporation to tabulate votes before the proxy exercises the proxy's authority under the appointment.

No proxy shall be valid after eleven (11) months from the date of its execution unless otherwise provided in the proxy. A proxy shall be revocable unless the proxy form conspicuously states that the proxy is irrevocable and the proxy is coupled with an interest. Proxies coupled with an interest include the appointment as proxy of a pledgee; a person who purchased or agreed to purchase the shares; a creditor of the Corporation who extended it credit under terms requiring the appointment; an employee of the Corporation whose employment contract requires the appointment, or a party to a voting agreement created under the Colorado Business Corporation Act (the "BCA").

Such an irrevocable proxy is revoked when the interest with which it is coupled is extinguished, but such revocation does not affect the right of the Corporation to accept the proxy's authority unless the officer or agent authorized by the Corporation to tabulate votes, before the proxy exercises the proxy's authority under the appointment, received notice (a) that the appointment was coupled with that interest and that the interest is extinguished, or (b) of the revocation of the appointment.

A person holding shares in a representative or fiduciary capacity may vote such shares without a transfer of such shares into such person's name. However, if the Corporation requests, evidence of this status acceptable to the Corporation must be presented to the Corporation.

1.9. Waiver of Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A shareholder may waive any notice required by the Colorado Business Corporation Act, the Articles of Incorporation, or these Bylaws, whether before or after the date or time stated in the notice as the date or time when any action will occur or has occurred. The waiver shall be in writing, be signed by the shareholder entitled to the notice, and be delivered to the Corporation for inclusion in the minutes or filing with the Corporation records, but such delivery and filing shall not be conditions of the effectiveness of the waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A shareholder's attendance at a meeting waives objection to lack of notice or defective notice of the meeting, unless the shareholder at the beginning of the meeting objects to holding the meeting or transacting business at the meeting because of lack of notice or defective notice, and waives objection to consideration of a particular matter at the meeting that is not within the purpose or purposes described in the meeting notice, unless the shareholder objects to considering the matter when it is presented.

**1.10 Conduct of Meetings**. The Board of Directors of the Corporation may adopt by resolution rules and regulations for the conduct of meetings of the shareholders as it shall deem appropriate. At every meeting of the shareholders, a director or officer designated by the Board of Directors, shall serve as the presiding officer of the meeting. The person whom the chairman of the meeting shall appoint secretary of the meeting, shall act as secretary of the meeting and keep the minutes thereof. The presiding officer shall determine the order of business and, in the absence of a rule adopted by the Board of Directors, shall establish rules for the conduct of the meeting. The presiding officer shall announce the close of the polls for each matter voted upon at the meeting, after which not ballots, proxies, votes, changes or revocations will be accepted. Polls for all matters before the meeting will be deemed to be closed upon final adjournment of the meeting.

1.11. Action by Shareholders Without a Meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any action required or permitted to be taken at a shareholders' meeting may be taken without a meeting if the shareholders holding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all of the shares entitled to vote thereon were present and voted consent to such action in writing. Provided, however, that if shares are entitled to be voted cumulatively in the election of directors, shareholders may elect or remove directors without a meeting only if all of the shareholders entitled to vote in the election or removal sign writings describing and consenting to the election or removal of the same directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No action taken pursuant to this section shall be effective unless, within sixty (60) days after the date the Corporation first receives a writing describing and consenting to the action and signed by a shareholder, the Corporation has received writings that describe and consent to the action, signed by shareholders holding at least the number of shares entitled to vote on the action as required by this section, disregarding any such writing that has been revoked pursuant to this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Action taken pursuant to this section shall be effective as of the date the Corporation receives the last writing necessary to effect the action unless all of the writings necessary to effect the action state another date as the effective date of the action, in which case such stated date shall be the effective date of the action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Action taken pursuant to this Section shall have the same effect as action taken at a meeting of shareholders and may be described as such in any document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any shareholder who has signed a writing describing and consenting to action taken pursuant to this section may revoke such consent by a writing signed and dated by the shareholder describing the action and stating that the shareholder's prior consent thereto is revoked, if such writing is received by the Corporation before the effectiveness of the action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If action is taken under this section with less than unanimous consent of all of the shareholders entitled to vote upon the action, the Corporation or shareholders taking the action shall, upon receipt by the Corporation of all writings necessary to effect the action, give notice of the action to all shareholders who were entitled to vote upon the action but who have not consented to the action in the manner provided in this section. The notice shall contain or be accompanied by the same material, if any, that would have been required under the Corporation's Articles of Incorporation, the Colorado Business Corporation Act and these Bylaws, or under any other applicable rules relating to solicitation of proxies to be given to shareholders in or with a notice of the meeting at which the action would have been submitted to the shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any writing referred to in this section may be received by the Corporation by electronically transmitted facsimile or other form of wire or wireless communication providing the Corporation with a complete copy thereof, including a copy of the signature thereto.

**1.12. Meetings by Telecommunications**. Any or all of the shareholders may participate in an annual or special shareholders' meeting by, or the meeting may be conducted through the use of, any means of communication by which all persons participating in the meeting may hear each other during the meeting. A shareholder participating in a meeting by this means shall be deemed to be present in person at the meeting and entitled to vote, subject to any conditions imposed by applicable law.

**ARTICLE II**

**DIRECTORS**

**2.1. Authority of the Board of Directors**. All corporate power shall be exercised by or under the authority of, and the business and affairs of the Corporation shall be managed under the direction of, the Board of Directors, except such powers expressly conferred upon or reserved to the shareholders, and subject to any limitations set forth by law, by the Articles of Incorporation or by these Bylaws.

**2.2. Number**. The number of directors shall be fixed by resolution of the Board of Directors from time to time and may be increased or decreased by resolution adopted by the Board of Directors from time to time; provided, however, that no decrease in the number of directors shall have the effect of shortening the term of any incumbent director.

**2.3. Qualification**. Directors shall be natural persons at least eighteen (18) years old but need not be residents of the State of Colorado or shareholders of the Corporation.

**2.4. Election**. The Board of Directors shall be elected at the annual meeting of the shareholders or at a special meeting called for that purpose.

**2.5. Term**. Each director shall be elected to hold office until the next annual meeting of shareholders and until the director's successor is elected and qualified.

**2.6. Resignation**. A director may resign at any time by giving written notice of his or her resignation to the Corporation. The resignation shall be effective when it is received by the Corporation, unless the notice of resignation specifies a later effective date. The pending vacancy may be filled before the effective date, but the successor shall not take office until the effective date. Acceptance of such resignation shall not be necessary to make it effective unless the notice so provides.

**2.7. Removal**. Any or all of the directors, or a class of directors, may be removed at any time, with or without cause, only if the number of votes cast in favor of removal exceeds the number of votes cast against removal by a vote of the holders of the shares then entitled to vote at an election of the director or directors, at any meeting of shareholders called expressly for that purpose. The meeting notice must state that the purpose, or one of the purposes, of the meeting is removal of the director(s). If a director is elected by a voting group of shareholders, the director may be removed only by that voting group.

**2.8. Vacancies**. Vacancies and newly created directorships, whether resulting from an increase in the size of the board of directors or due to the death, resignation, disqualification or removal of a director or otherwise, may be filled by election at an annual or special meeting of shareholders called for that purpose or may be filled by the affirmative vote of a majority of the remaining directors then in office, even though there is less than a quorum. A director elected to fill a vacancy shall be elected for the unexpired term of his or her predecessor in office.

**2.9. Meetings**. The Board of Directors may hold regular or special meetings in or out of Colorado. A regular meeting shall be held, without other notice than these Bylaws, immediately after and at the same place as the annual meeting of shareholders. The Board of Directors may, by resolution, establish other dates, times, and places for additional regular meetings, which may thereafter be held without further notice. Special meetings may be called by the president or chief executive officer, or by any two directors and shall be held at the principal office of the Corporation unless another place is consented to by every director. At any time when the board consists of a single director, that director may act at any time, date, or place without notice.

**2.10. Notice of Special Meeting**. All special meetings of the Board of Directors shall be held upon not less two (2) days' written notice stating the date, time and place and, if the directors will not meet in person, the means by which directors may participation by telecommunication] of the meeting given to each director by personal delivery, mail, telegram, cablegram, overnight delivery service, or any other means of communication authorized by the director. The notice shall specify the purposes of the meeting.

**2.11. Quorum**. A majority of the directors as fixed in these Bylaws shall constitute a quorum for the transaction of business. The affirmative act of a majority of the directors present at a meeting at which a quorum is present at the time of the act shall be the act of the Board of Directors, unless the vote of a greater number is required by the Colorado Business Corporation Act or these Bylaws. The directors at a meeting for which a quorum is not present may adjourn the meeting until a time and place as may be determined by a vote of the directors present at that meeting. When a meeting is adjourned, it shall not be necessary to give any notice of the adjourned meeting, or of the business to be transacted at the adjourned meeting, other than by announcement at the meeting at which the adjournment is taken.

**2.12. Waiver of Notice.** Any director entitled to notice of a meeting may sign a written waiver of notice either before or after the time of the meeting. A director's attendance at any meeting shall constitute a waiver of notice of the meeting, except where the director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the beginning of the meeting (or promptly on late arrival) objects to holding the meeting or transacting business at the meeting because of lack of notice or defective notice and does not thereafter vote for or assent to action taken at the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Objects to transacting business with respect to the purpose for which special notice was required and does not thereafter vote for or assent to action taken at the meeting with respect to such purpose.

A telegram, cablegram, electronic mail or an electronic or other transmission capable of authentication that appears to have been sent by a person described in this section and that contains a waiver by that person is a writing for the purposes of this section.

**2.13. Meetings by Telecommunication.** The Board of Directors may permit any or all directors to participate in all or any part of a meeting by means of telecommunication or any means of communication by which all directors participating in the meeting are able to hear each other during the meeting.

**2.14. Deemed Assent to Action**. A director who is present at a meeting of the Board of Directors when corporate action is taken shall be deemed to have assented to all action taken at the meeting unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The director objects at the beginning of the meeting, or promptly upon his or her arrival, to holding the meeting or transacting business at the meeting and does not thereafter vote for or assent to any action taken at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The director contemporaneously requests that his or her dissent or abstention as to any specific action taken be entered in the minutes of the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The director causes written notice of his or her dissent or abstention as to any specific action to be received by the presiding officer of the meeting before adjournment of the meeting or by the secretary (or, if the director is the secretary, by another director) promptly after adjournment of the meeting.

The right of dissent or abstention pursuant to this Section 2.14 as to a specific action is not available to a director who votes in favor of the action taken.

**2.15. Action by Directors Without a Meeting**. Unless otherwise provided in these Bylaws, any action required or permitted to be taken at a meeting of the Board of Directors or any committee thereof may be taken without a meeting if all of the directors in office, or all the committee members then appointed, consent to such action in writing. The written consents must be included in the minutes of the proceedings of the Board of Directors and kept as part of the Corporation's permanent records.

**ARTICLE III**

**COMMITTEES OF THE BOARD OF DIRECTORS**

3.1. Committees of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of Section 7-108-106 of the Colorado Business Corporation Act, the Board of Directors may create one or more committees and appoint one or more members of the Board of Directors to serve on them. The creation of a committee and appointment of members to it shall require the approval of a majority of all the directors in office when the action is taken, whether or not those directors constitute a quorum of the board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of these Bylaws governing meetings, action without meeting, notice, waiver of notice, and quorum and voting requirements of the Board of Directors apply to committees and their members as well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent specified by resolution adopted from time to time by a majority of all the directors in office when the resolution is adopted, whether or not those directors constitute a quorum of the board, each committee shall exercise the authority of the Board of Directors with respect to the corporate powers and the management of the business and affairs of the Corporation; except that a committee shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Authorize distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Approve or propose to shareholders action that the Colorado Business Corporation Act requires to be approved by shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Fill vacancies on the Board of Directors or on any of its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Amend the Articles of Incorporation pursuant to Section 7-110-102 of the Colorado Business Corporation Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Adopt, amend, or repeal bylaws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Approve a plan of merger not requiring shareholder approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Authorize or approve reacquisition of shares, except according to a formula or method prescribed by the Board of Directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Authorize or approve the issuance or sale of shares, or a contract for the sale of shares, or determine the designation and relative rights, preferences, and limitations of a class or series of shares; except that the Board of Directors may authorize a committee or an officer to do so within limits specifically prescribed by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The creation of, delegation of authority to, or action by, a committee does not alone constitute compliance by a director with applicable standards of conduct.

**ARTICLE IV**

**OFFICERS**

**4.1. General**. The Corporation shall have such officers as may be deemed necessary and who are appointed from time to time by the Board of Directors. The powers and duties of the officers of the Corporation shall be as provided from time to time by resolution of the Board of Directors or by direction of an officer authorized by the Board of Directors to prescribe the duties of other officers. Any two or more offices may be held by the same person. The officers of the Corporation shall be natural persons at least eighteen (18) years old.

**4.2. Term**. Each officer shall hold office from the time of appointment until the time of removal or resignation pursuant to Section 4.3 or until the officer's death.

**4.3. Removal**. Any officer elected or appointed by the Board of Directors may be removed with or without cause at any regular or special meeting of the Board of Directors by an affirmative vote of the majority. Removal shall be without prejudice to the contract rights, if any, of the officer so removed. Election or appointment of an officer or agent shall not of itself create contract rights. Any officer or assistant officer appointed by an authorized officer may be removed at any time with or without cause by any officer with authority to appoint such officer of assistant officer.

**4.4. Compensation**. Officers shall receive such compensation for their services as may be authorized or ratified by the Board of Directors. Election or appointment of an officer shall not of itself create a contractual right to compensation for services performed as such officer.

**ARTICLE V**

**INDEMNIFICATION**

**5.1 Indemnification**. The Corporation shall indemnify, to the maximum extent permitted by law, any person who is or was a director, officer, agent, fiduciary or employee of the Corporation against any claim, liability or expense arising against or incurred by such person made party to a proceeding because he is or was a director, officer, agent, fiduciary or employee of the Corporation or because he is or was serving another entity or employee benefit plan as a director, officer, partner, trustee, employee, fiduciary or agent at the Corporation's request. The indemnification provided hereunder shall inure to the benefit of the heirs, executors and administrators of a director, officer or other person entitled to indemnification hereunder.

**5.2. Insurance.** The Corporation may purchase and maintain insurance on behalf of a person who is or was a director, officer, employee, fiduciary, or agent of the Corporation, or who, while a director, officer, employee, fiduciary, or agent of the Corporation, is or was serving at the request of the Corporation as a director, officer, partner, trustee, employee, fiduciary, or agent of another domestic or foreign Corporation or other person or of an employee benefit plan, against liability asserted against or incurred by the person in that capacity or arising from his or her status as a director, officer, employee, fiduciary, or agent, whether or not the Corporation would have power to indemnify the person against the same liability under Section 5.1. Any such insurance may be procured from any insurance company designated by the Board of Directors, whether such insurance company is formed under the laws of this state or any other jurisdiction of the United States or elsewhere, including any insurance company in which the Corporation has an equity or any other interest through stock ownership or otherwise.

**5.3. Notice to Shareholders of Indemnification of Director**. If the Corporation indemnifies or advances expenses to a director under this article in connection with a proceeding by or in the right of the Corporation, the Corporation shall give written notice of the indemnification or advance to the shareholders with or before the notice of the next shareholders' meeting. If the next shareholder action is taken without a meeting at the instigation of the Board of Directors, such notice shall be given to the shareholders at or before the time the first shareholder signs a writing consenting to such action.

**ARTICLE VI**

**SHARES**

**6.1. Certificates**. If shares are represented by certificates, at a minimum each share certificate shall state upon the face thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The name of the Corporation and that it is organized under the laws of the State of Colorado.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The name of the person to whom issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The number and class of shares and the designation of the series, if any, which the certificate represents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A conspicuous statement setting forth restrictions on the transfer of the shares, if any.

Each certificate must be signed, either manually or in facsimile, by one or more or the officers designated by these Bylaws or the Board of Directors.

The Corporation shall, within a reasonable time after the issuance or transfer of uncertificated shares, send to the registered owner of uncertificated shares a written notice containing the information required to be set forth or stated on certificates pursuant to the BCA. Except as otherwise expressly provided by law, the rights and obligations of the holders of uncertificated shares and the rights and obligations of the holders of certificates representing shares of the same class and series shall be identical.

No share shall be issued until the consideration therefor, fixed as provided by law, has been fully paid.

**6.2. Transfer of Shares.** Shares of the Corporation shall be transferable in the manner prescribed by law and in these Bylaws. Transfers of share shall be made on the books of the Corporation only by the holder of record thereof, by such person's attorney lawfully constituted in writing and, in the case of certificated shares, upon the surrender of the certificate thereof, which shall be cancelled before a new certificate or uncertificated shares shall be issued. No transfer of shares shall be valid as against the Corporation for any purpose until it shall have been entered in the stock records of the Corporation by an entry showing from and to whom transferred.

**6.3. Registered Shareholders**. The Corporation may treat the holder of record of any shares issued by the Corporation as the holder in fact thereof, for purposes of voting those shares, receiving distributions thereon or notices in respect thereof, transferring those shares, exercising rights of dissent with respect to those shares, exercising or waiving any preemptive right with respect to those shares, entering into agreements with respect to those shares in accordance with the laws of Colorado, or giving proxies with respect to those shares.

Neither the Corporation nor any of its officers, directors, employees, or agents shall be liable for regarding that person as the owner of those shares at that time for those purposes, regardless of whether that person possesses a certificate for those shares and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express notice thereof, except as otherwise provided by law.

**Section 6.4. Lost or Replacement Certificates.** The Corporation may issue a new certificate for its shares in place of any certificate theretofore issued and alleged by its owner of record or such owner's authorized representative to have been lost, stolen, or destroyed if the Corporation, transfer agent, or registrar is not on notice that such certificate has been acquired by a bona fide purchaser. A replacement certificate may be issued upon such owner's or representative's compliance with all of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The owner shall file with the Corporation and the transfer agent or the registrar, if any, a request for the issuance of a new certificate, together with an affidavit in form satisfactory to the Corporation and transfer agent or registrar, if any, setting forth the time, place, and circumstances of the loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The owner also shall file with the Corporation and the transfer agent or the registrar, if any, a bond with good and sufficient security acceptable to the Corporation and the transfer agent or the registrar, if any, conditioned to indemnify and save harmless the Corporation and the transfer agent or the registrar, if any, from any and all damage, liability, and expense of every nature whatsoever resulting from the Corporation, the transfer agent, or the registrar issuing a new certificate in place of the one alleged to have been lost, stolen, or destroyed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The owner shall comply with such other reasonable requirements as the Corporation and the transfer agent or the registrar, if any, shall deem appropriate under the circumstances.

A new certificate may be issued in lieu of any certificate previously issued that has become defaced or mutilated upon surrender for cancellation of a part of the old certificate sufficient, in the opinion of the Secretary and the transfer agent or the registrar, if any, to identify the owner of the defaced or mutilated certificate, the number of shares represented thereby, and the number of the certificate and its authenticity and to protect the Corporation and the transfer agent or the registrar against loss or liability. When sufficient identification for such defaced or mutilated certificate is lacking, a new certificate may be issued upon compliance with all of the conditions set forth in this Section in connection with the replacement of lost, stolen, or destroyed certificates.

**ARTICLE VII**

**MISCELLANEOUS**

**7.1. Corporate Seal**. The Corporation may adopt a corporate seal in a form approved by the Board of Directors. The Corporation shall not be required to use the corporate seal and the lack of the corporate seal shall not affect the validity of any instrument or action.

**7.2. Fiscal Year**. The fiscal year of the Corporation shall be as determined by the Board of Directors.

**7.3. Receipt of Notices by the Corporation**. Notices, shareholder writings consenting to action, and other documents or writings shall be deemed to have been received by the Corporation when they are received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the registered office of the Corporation in the State of Colorado.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the principal office of the Corporation (as that office is designated in the most recent document filed by the Corporation with the Secretary of State for the State of Colorado designating a principal office) addressed to the attention of the secretary of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) By the secretary of the Corporation wherever the secretary may be found; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) By any other person authorized from time to time by the Board of Directors, the president, or the secretary to receive such writings, wherever such person is found.

**7.4 Checks, Draft, Etc**. All checks, drafts or other instruments for payment of money or notes of the Corporation shall be signed by an officer or officers or any other person or persons as shall be determined from time to time by resolution of the Board of Directors.

**7.5. Conflict with Applicable Law or Articles of Incorporation.** These Bylaws are adopted subject to any applicable law and the Articles of Incorporation. Whenever these Bylaws may conflict with any applicable law or the Articles of Incorporation, such conflict shall be resolved in favor of such law or the Articles of Incorporation.

**7.6. Invalid Provisions.** If any one or more of the provisions of these Bylaws, or the applicability of any provision to a specific situation, shall be held invalid or unenforceable, the provision shall be modified to the minimum extent necessary to make it or its application valid and enforceable, and the validity and enforceability of all other provisions of these Bylaws and all other applications of any provision shall not be affected thereby.

**7.7 Emergency Bylaws**. For the purposes of this Section, an emergency arises when a quorum of the Board of Directors cannot readily be obtained because of some catastrophic event. The Board of Directors may adopt emergency bylaws, subject to repeal or change by action of the shareholders, which shall be operative during any emergency in the conduct of the business of the Corporation.

Emergency bylaws may contain any provisions necessary for managing the Corporation during the emergency, including provisions that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A meeting of the Board of Directors may be called by any officer or director in such manner and under such conditions as shall be prescribed in the emergency bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The director(s) in attendance at the meeting, or any greater number fixed by the emergency bylaws, shall constitute a quorum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The officers or other persons designated in a list approved by the Board of Directors before the emergency shall, to the extent required to provide a quorum at any meeting of the board, be deemed directors for such meeting.

Before or during any such emergency, the Board of Directors may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designate lines of succession in the event that, during such an emergency, any or all officers or agents of the Corporation shall be rendered incapable of discharging their duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Change the head office or designate several alternative head offices or regional offices, or authorize the officers so to do, said change or designation to be effective during the emergency.

Unless otherwise provided in the emergency bylaws, during any such emergency:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notice of a meeting of the Board of Directors need be given only to such of the directors as it may be feasible to reach at the time and by such means as may be feasible at the time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent required to constitute a quorum at a meeting of the Board of Directors, the officers of the corporation who are present shall be deemed, in order of rank and within the same rank in order of seniority, directors for such meeting.

To the extent not inconsistent with the emergency bylaws so adopted, the Bylaws of the corporation shall remain in effect during any such emergency and upon its termination the emergency bylaws shall cease to be operative.

No officer, director or employee acting in accordance with the emergency bylaws shall be liable except for willful misconduct. No officer, director or employee shall be liable for any action taken by him in good faith in such an emergency in furtherance of the ordinary business affairs of the Corporation even though not authorized by the bylaws then in effect.

**7.8. Amendment of Bylaws**. These Bylaws may be amended, repealed or otherwise altered by the shareholders or the Board of Directors, but no bylaw adopted by the shareholders may be altered, amended or repealed by the Board of Directors if the Bylaws so provide.

The foregoing Amended and Restated Bylaws were duly adopted by the Board of Directors as the bylaws of Aspire BioScience, Inc., effective as of February 24, 2025.

![](ex3-3_001.jpg)

## Exhibit 5.1

**Exhibit 5.1**

Frascona, Joiner, Goodman and Greenstein, P.C.

---

| | | |
|:---|:---|:---|
| Oliver E. Frascona (1947-2014)<br> Gregg A. Greenstein<br> Cinthia M. Manzano<br> Jonathan H. Sargent<br> Michael A. Smeenk<br> Jordan C. May<br> Britney Beall-Eder<br> Zachary A. Grey | Attorneys at Law <br> A Professional Corporation <br> 4750 Table Mesa Drive, Boulder, Colorado 80305-5541 <br> Telephone (303) 494-3000 Facsimile (303) 494-6309 <br> www.frascona.com gary@frascona.com <br>September 17, 2025 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of Counsel<br> Gary S. Joiner<br> Jonathan A. Goodman<br> Karen J. Radakovich<br> Jesse H. Witt<br> Jeffrey M. Glotzer<br> Jeffrey D. Cohen<br> John C. Koechel<br> Patrick J. Fitz-Gerald<br>Andrew B. Pipes<br> Caroline W. Young<br> Blake S. Gabriel<br>Ryan P. Horace <br> Brittaney D. McGinnis <br> Mara B. Peterson <br> David M. Petrush |

---

September 15, 2025

Exxel Pharma Inc

12635 E. Montview Blvd., Suite 134

Aurora, CO 80045

Ladies and Gentlemen:

We have acted as counsel to Exxel Pharma Inc., a Colorado corporation (the "Company") in connection with the preparation and filing of a Registration Statement on Form S-1 (the "Registration Statement"), including a related prospectus filed with the Registration Statement (the "Prospectus"), under the Securities Act of 1933, as amended (the "Securities Act"). The Registration Statement relates to the offer and sale by the selling stockholders identified therein of up to 317,433 OTCQX® Best Market or the OTCQB® Venture Marketshares (the "Shares") of the Company's common stock without par value (the "Common Stock").

In connection with rendering this opinion, we have examined originals or copies (certified or otherwise identified to our satisfaction) of (i) the Company's Articles of Incorporation, as amended and as currently in effect, (ii) the Company's Amended and Restated Bylaws, as currently in effect, (iii) the Registration Statement and Prospectus, and (iv) such other corporate records, agreements, documents and other instruments, and such certificates or comparable documents of public officials and of officers and representatives of the Company, and we have made such inquiries of such officers and representatives, as we have deemed necessary or appropriate for purposes of this opinion.

In such examination, we have assumed the genuineness of all signatures, the legal capacity of all natural persons, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified, conformed or photostatic copies and the authenticity of the originals of such latter documents. As to certain questions of fact material to this opinion, we have relied upon certificates or comparable documents of officers and representatives of the Company and have not sought to independently verify such facts.

Based upon the foregoing, and subject to the qualifications stated herein, we are of the opinion that the Shares are duly authorized, validly issued, fully paid and non-assessable.

Frascona, Joiner, Goodman and Greenstein, P.C.

September 17, 2025

Page 2 of 2

The opinion expressed herein is limited to the Colorado Business Corporation Act, and we express no opinion as to the effect on the matters covered by this letter of the laws of any other jurisdiction.

We hereby consent to the filing of this letter as an exhibit to the Registration Statement and to the reference of our firm under the caption "Legal Matters" in the Prospectus which is part of the Registration Statement. In giving such consents, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or the Rules and Regulations of the Securities and Exchange Commission promulgated thereunder.

---

| |
|:---|
| Sincerely Yours, |
| *Frascona, Joiner, Goodman & Greenstein, P.C.* |
| Frascona, Joiner, Goodman & Greenstein, P.C. |

---

## Exhibit 10.1

**Exhibit 10.1**

**Certain portions of this Exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K on the basis that they are not material and are the type of information that the registrant treats as confidential and private.**

EXCLUSIVE LICENSE AGREEMENT

between

THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

and

EXXEL PHARMA, INC

for

FAAH Inhibitors

UC Cases 2001-104 and 2014-360

<u>UC Agreement Control No.:2022-04-0094</u>

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **Article No.** | **Title** | **Page** |
| **BACKGROUND** | **BACKGROUND** | **1** |
| **1.** | **DEFINITIONS** | **2** |
| **2.** | **GRANT** | **4** |
| **3.** | **SUBLICENSES** | **5** |
| **4.** | **SUBLICENSING REQUESTS** | **6** |
| **5.** | **FEES & EQUITY** | **7** |
| **6.** | **ROYALTIES** | **9** |
| **7.** | **DUE DILIGENCE** | **10** |
| **8.** | **PROGRESS AND ROYALTY REPORTS** | **11** |
| **9.** | **BOOKS AND RECORDS** | **12** |
| **10.** | **LIFE OF THE AGREEMENT** | **12** |
| **11.** | **TERMINATION BY THE REGENTS** | **13** |
| **12.** | **TERMINATION BY LICENSEE** | **13** |
| **13.** | **DISPOSITION OF LICENSED PRODUCT ON HAND UPON TERMINATION** | **13** |
| **14.** | **USE OF NAMES AND TRADEMARKS** | **14** |
| **15.** | **LIMITED WARRANTY** | **14** |
| **16.** | **LIMITATION OF LIABILITY** | **15** |
| **17.** | **PATENT PROSECUTION AND MAINTENANCE** | **15** |
| **18.** | **PATENT MARKING** | **17** |
| **19.** | **PATENT INFRINGEMENT** | **17** |
| **20.** | **INDEMNIFICATION** | **18** |
| **21.** | **NOTICES** | **19** |
| **22.** | **ASSIGNABILITY** | **21** |
| **23.** | **LATE PAYMENTS** | **22** |
| **24.** | **WAIVER** | **22** |
| **25.** | **FORCE MAJEURE** | **22** |
| **26.** | **GOVERNING LAWS; VENUE; ATTORNEYS' FEES** | **22** |
| **27.** | **GOVERNMENT APPROVAL OR REGISTRATION** | **23** |
| **28.** | **COMPLIANCE WITH LAWS** | **23** |
| **29.** | **CONFIDENTIALITY** | **23** |
| **30.** | **MISCELLANEOUS** | **24** |
| **31.** | **COUNTERPARTS AND EXECUTION** | **25** |
| **<u>APPENDIX A</u>** | **<u>APPENDIX A</u>** | **27** |
| **<u>APPENDIX B</u>** | **<u>APPENDIX B</u>** | **28** |
| **<u>APPENDIX C</u>** | **<u>APPENDIX C</u>** | **29** |
| **SAMPLE ROYALTY STATEMENT** | **SAMPLE ROYALTY STATEMENT** | **29** |

---

i

<u>UC Agreement Control No.:2022-04-0094</u>

**AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT <br> GLOBAL FAAH INHIBITORS**

This amended and restated exclusive license agreement- global FAAH inhibitors **("Agreement")** is made effective this 17<sup>th</sup> day of August, 2021 **("Effective Date"),** by and between The Regents of the University of California, a California public corporation, having its statewide administrative offices at 1111 Franklin Street, Oakland, California 94607-5200 **("The Regents"),** acting through its frvine campus having an address at University of California, hvine, Invention Transfer Group, 5270 California Ave., Suite 100, frvine, CA 92697-7700 **("UCI")** and Exxel Phruma Inc., having a p1incipal place of business at 12635 E Montview Blvd, Suite 137, Aurora, CO 80045 **("Licensee").**

**BACKGROUND**

WHEREAS, Licensee and The Regents entered into a ce1tain Exclusive License Agreement, dated May 18, 2018 (UC 2018-04-0667) (said agreement hereafter refened to as the "Original Agreement"), whereby The Regents granted to Licensee ce1tain rights to patent rights covering FAAH inhibitors;

WHEREAS, Licensee and The Regents now desire to amend and restate the Original Agreement, which related to globally acting FAAH inhibitors and peripherally acting FAAH inhibitors by ente1ing into two sepru·ate amended and restated exclusive license agreements, one relating to globally acting FAAH inhibitors (this Agreement) and one relating to the peripherally acting FAAH inhibitors (the "Pe1ipheral FAAH License") and collectively replace the O1iginal Agreement in its entirety;

WHEREAS, Licensee is contemporaneously with this Agreement entering into an option agreement with to enter into a Sublicense (both such option and Sublicense shall be referred to as the " ");

WHEREAS, ce1tain inventions, generally chru·acte1ized as

● **"Global FAAH Inhibitors" (UC Case 2001-104); and** 

● **"FAAH Inhibitors with Improved Bioavailability" (UC 2014-360)** 

(collectively **"Invention(s)"),** were made in the course of reseru·ch at UCI, the University of Parma **("Parma"),** the University of Urbino **("Urbino"),** and the Italian Institute of Technology **("IIT")** by Dr. Daniele Piomelli, Andrea Duranti, Andrea Tontini, Mru·co Mor, Giorgio Tru·za, Rita Scarpeli, and Tiziano Bandiera **("Inventors")** and are claimed in Patent Rights as defined below;

WHEREAS, the development of the Invention was sponsored in prut by the Government of the United States of America and, as a consequence, this license is subject to oveniding obligations to the United States Federal Government under 35 U.S.C. §§ 200-212;

WHEREAS, Inventors were employees at the time the Invention was made at either UCI, Pruma, Urbino, or the ITT and as such ru·e obligated to assign their title and interest in and to the Invention to their respective institution;

WHEREAS, The Regents, Parma, Urbino, and the IIT have entered into Inter-Institutional Agreements (UC Control Nos. 2013-18-0124, 2013-18-0125, 2013-18-0150) ("**IIA**") covering Patent Rights and granting The Regents the exclusive right to license Patent Rights;

WHEREAS, Licensee is a "small entity" as defined in 37 CFR §1.27 and a "small business concern" as defined in 15 USC §632; and

WHEREAS, The Regents wishes that Patent Rights be developed and utilized to the fullest extent so that the benefits can be enjoyed by the general public.

- - oo 0 oo - -

The parties agree as follows:

1. DEFINITIONS

As used in this Agreement, the following terms, whether used in singular or plural, shall have the following meanings set forth below:

1.1 "**Affiliate**" means any business entity in which Licensee owns or controls, directly or indirectly, at least fifty
percent (50%) of the outstanding stock or other voting rights entitled to elect directors. In any country where local law does not permit
foreign equity participation of at least fifty percent (50%), then "**Affiliate**" means any business entity in which Licensee
owns or controls, directly or indirectly, the maximum percentage of outstanding stock or voting rights that is permitted by local law.

1.2 "**Associated Technology**" means
 The Regents' interest in technical information, materials, or data already provided
 to Licensee for the purposes of evaluating and developing a Licensed Product, including,
 but not limited to certain data included in Exhibit 1.11 of the Agreement.
 The Regents has no obligation to provide any additional Associated Technology or keep Associated
 Technology confidential.

1.3 "**Exchange**" an established stock exchange recognized by the applicable securities regulatory authorities in either
of Canada or the United States;

1.4 "**Field of Use**" means all fields excluding research reagent sales. All other uses are expressly excluded from this
Agreement.

1.5 "**First Commercial Sale**" means with respect to any Licensed Product in any country the first arms- length commercial
sale by Licensee or Sublicensees of any of the Licensed Products for use in the Field in that country, after such Licensed Product has
been granted final regulatory approval by the competent regulatory authorities in such country, provided, however, that in the event of
a sale which is substantially comparable to a commercial sale effected only after regulatory approval is obtained, such as, without limitation,
sales for compassionate use, then the first sale in any such arrangement, shall also constitute a "First Commercial Sale".

1.6 "**Going Public Transaction**" means (i) a listing of the share capital of the Licensee on any Exchange; (ii) the acquisition of the Licensee by an existing company
listed on any Exchange, such that the resulting effect is that the holders of the share capital of the Licensee receive shares in the
capital of the resulting public company; or (iii)
any other type of transaction whatsoever which results in the current holders of the share capital of the Licensee receiving shares of
a company listed on the Exchange in exchange for their existing share capital of the Licensee;

1.7 "**Licensed Method**" means any process, service, or method that is covered by a Valid Claim within Patent Rights, the
use of which would constitute (absent this Agreement) an infringement, an inducement to infringe, or contributory infringement of any
Valid Claim within Patent Rights.

1.8 "**Licensed Product**" means any composition, service, or product (i) covered by a Valid Claim in Patent Rights, or produced
by using a Licensed Method, or the manufacture, use, importation, sale, or offer for sale of which would constitute (absent this Agreement)
an infringement, an inducement to infringe, or contributory infringement of any Valid Claim within Patent Rights or (ii) the Regulatory
Approval of which is based on any portion of the Associated Technology.

1.9 "**Net Sale(s)**" means all gross amounts invoiced or otherwise charged by Licensee or Sublicensees from the sale of
Licensed Products. Net Sales exclude the following items (but only to the extent they (i) pertain to the making, using, importing, or selling
of Licensed Products, (ii) are included in gross revenue, and (iii) are separately billed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) cash, trade or quantity discounts actually granted to customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) import, export, excise and sales taxes, custom duties, and value added taxes ()"**TAX**") to the extent such TAX is incurred
and not reimbursed, refunded, or credited under a tax authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) freight, transport packing, and insurance charges associated with transportation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) allowances or credit to customers for returns or rejections.

Transfers to a Sublicensee of a Licensed Product for end use by Sublicensee shall be treated as a sale by the Licensee and the Net Sale of such transfer will be calculated based on the list price of such Licensed Product normally charged by the Licensee in arm's-length transactions.

1.10 "**Patent Action**" means the preparation, filing, prosecution and maintenance of patent applications and patents included
in Patent Rights. Prosecution includes, but is not limited to, reexaminations, inventorship determination, interferences, oppositions,
and any other ex parte or inter partes matters originating in a patent office.

1.11 "**Patent Costs**" means all out-of-pocket costs incurred by The Regents for Patent Actions.

1.12 "**Patent Rights**" means The Regents' interest in the patent applications and patents listed in Appendix A. Patent
Rights shall further include the corresponding foreign patent applications thereof, and any divisional, continuation, continuations-in-part
(but only to the extent the claims thereof are entirely supported in the specification and entitled to the priority date of the parent
application), or reexamination application, and each patent that issues or reissues from any of these patent applications.

1.13 "**Regulatory Approvals**" shall mean and include all licenses, permits, authorizations and approvals of, and all registrations,
filings and other notifications to, any governmental agency or department within the Territory, including the United States Food and Drug
Administration (FDA), and the European Medicines Agency (EMA), necessary or appropriate
for the manufacture, production, distribution, marketing, sale, pricing, reimbursement and/or use of the Licensed Products within the
Field and in a particular country or region of the Territory.

1.14 "**Sublicense**" has the meaning given in Paragraph 3.1.

1.15 "**Sublicensee**" means any person or entity (including any Affiliate) that has entered into a Sublicense with Licensee.

1.16 "**Sublicensing Income**" means income received by Licensee in consideration for a Sublicense or other agreement providing
the right to negotiate or obtain a Sublicense. Sublicensing Income includes income received from Sublicensees in the form of license issue
fees, profit sharing, milestone payments, and the like but specifically excludes royalties on the sale or distribution of Licensed Products
or the practice of Licensed Methods. Not included in the definition of Sublicensing Income is (i) income received by Licensee from Sublicensee
as payment or reimbursement of costs for future research at fair market value applied to the licensed Invention and conducted by or for
Licensee, including costs, materials, equipment, or clinical testing; or (ii) payments received from Sublicensee as reimbursement of Patent
Costs.

1.17 "**Valid Claim**" means a claim of a patent or patent application that (i) has not expired; (ii) has not been disclaimed;
(iii) has not been cancelled or superseded, or if cancelled or superseded, has been reinstated; and (iv) has not been revoked, held invalid,
or otherwise declared unenforceable or not allowable by a tribunal or patent authority of competent jurisdiction over such claim from
which no further appeal or refiling has or may be taken.

2. GRANT

2.1 Subject to the limitations and other terms and conditions set forth in this Agreement, The Regents grants to the Licensee an: (i)
exclusive license (the "**License**") under Patent Rights in the Field of Use to make, have made, use, sell, offer for
sale and import Licensed Products and to practice Licensed Methods, in jurisdictions where Patent Rights exist to the extent permitted
by law. Licensee will not make, use, have made, sell, offer for sale, or import Licensed Products or practice Licensed Methods outside
the Field of Use and (ii) an exclusive license solely to use the Associated Technology to pursue Regulatory Approval of one or more Licensed
Products covered by the Patent Rights. Affiliates have no rights hereunder unless granted a Sublicense.

2.2 The License is subject to overriding obligations to the United States Federal Government under 35 U.S.C. §§
200-212 and all applicable governmental implementing regulations (including a non- exclusive, non-transferable, irrevocable, paid up license
to practice or have practiced the Invention for or on behalf of the U.S. Government throughout the world). Among other things, these provisions
provide the United States Government with nonexclusive rights to Patent Rights and impose the obligation that Licensed Product sold in
the United States be "manufactured substantially in the United States". Licensee will ensure all obligations of these provisions
are met.

2.3 The Regents retain the right, on behalf of itself and all other non-profit institutions, to practice Patent Rights and associated
technology for educational and research purposes, clinical research, and research sponsored by commercial entities. The Regents and any
such other institution have the right to publicly disclose any information resulting from such activities.

2.4 This Agreement will te1minate immediately if Licensee files a claim which includes, in any way, the asse1tion that any po1tion of
Patent Rights is invalid or unenforceable where the filing is by Licensee, a third pa1ty on behalf of Licensee, or a third pa1ty at the
written urging of, or with the assistance of the Licensee.

**3.** **SUBLICENSES** 

3.1 The Regents also grants to the Licensee the 1ight to sublicense the 1ights granted to the Licensee hereunder **("Sublicense(s)"),** as long as the Licensee has cunent exclusive rights thereto under this Agreement. Licensee is fuithe1more granted the1ight
to allow a Sublicensee the right to grant further Sublicenses under Patent Rights and Associated Technologies ("Second Tier Sublicense"),
provided that such Second Tier Sublicensee shall not have the right to grant ftuther Sublicenses, unless Licensee obtains the p1ior w1itten
approval of The Regents. A Sublicensee may assign its entire1ights and obligation under a Sublicense to an Affiliate thereof, without
The Regents p1ior consent. Sublicenses will (i) be issued in writing, (ii) be subject to this Agreement, (iii) not provide anything of
value in lieu of cash as consideration for such Sublicense without the express written consent of The Regents, (iv) include an express
prohibition against issuing ftu·ther Sublicenses, and (v) include all of the rights of The Regents and require the perfo1mance
of all obligations due to The Regents (and, if applicable, the United States Government and other sponsors) including the rights and obligations
detailed in Articles 8, 14, 15, 16, and 20 (royalty repo1ts, use of names, limited warTanties, limitation
of liability, and indemnification). For the pmposes of this Agreement, the operations of all Sublicensees shall be deemed to be the operations
of the Licensee, for which the Licensee shall be responsible. Affiliates and joint ventures do not have lights to Patent Rights under
this Agreement and must be issued a valid Sublicense pursuant to Article 3 (Sublicenses) in order to exercise any of the Patent Rights.

3.2 Licensee must pay to The Regents of all Sublicensing Income, provided however:

All non-royalty payments received by Licensee from under the Agreement will be considered Sublicensing Income. Notwithstanding Paragraph 1.6, the only deductions allowable for such Sublicensing Income in the preceding sentence will be payments received specifically for the reimbursement of Patent Costs as specified in the Agreement. Licensee must pay the percentages on Sublicensing Income to The Regents on a qua1terly basis, sixty (60) days following the end of a calendar quarter for Sublicensing Income received dming such quarter.

3.3 On Net Sales of Licensed Products sold or disposed by a Sublicensee, Licensee must pay to The
 Regents an ear·ned royalty in accordance with Article 6 (ROYALTIES) as if these were Licensee's Net Sales except that
 Licensee will only be required to a The Regents of
 any royalties received by Licensee on the sales of a Licensed Product , provided
 that in no event willl the royalty on Net Sales due to The Regents fall below for sales completed by .
 In the event a Licensed Product is not covered by a Valid Claim in the respective count1y, such royalties on sales will not fall below Percent.

3.4 Licensee will notify The Regents of each Sublicense issued and will provide The Regents with a complete copy of each Sublicense and
any subsequent amendments thereto within thirty (30) days of issuance of such Sublicense or amendment.

3.5 Licensee will be responsible for the collection of all payments due under Sublicenses to The Regents and provide The Regents with
copies of Sublicensee's royalty and progress reports, such reports sufficient to establish all amounts due to The Regents under this Agreement.

3.6 If this Agreement is tenninated for any reason, then upon request of each Sublicensee, The Regents will enter into a license agreement
with such Sublicensee (''New License Agreement"), provided that the Sublicensee is in good standing upon tennination of this Agreement
with Licensee. The te1ms of such New License Agreement shall be substantially siinilar to the te1ms of the Sublicense, except that the
obligations of The Regents under such New License Agreement will not be greater than the obligations of The Regents under such New License
Agreement, and the rights of The Regents under such New License Agreement will not be less than the 1ights of The Regents under this Agreement,
including all financial consideration such as the payment of Earned Royalties directly to The Regents and payment of any unreimbursed
patent expenses with respect to the po1tion of Patent Rights sublicensed to each Sublicensee, provided however that this shall not apply
in relation to the equity rights granted to The Regents pursuant to Sections 5.4 to 5.7 (and other provisions making reference to Going
Public), and flllther provided that payments akeady made by the Sublicensee to the Licensee (e.g. Inilestone payments for the same or
siinilar events than to those provided for in this Agreement) shall be taken into account for the New License Agreement. The Regents fmther
agree that each sublicense granted by Licensee under this Agreement shall remain in full force and effect until such time as The Regents
and such Sublicensee enter into such New License Agreement or mutually agree to te1minate negotiation of such New License Agreement. Notwithstanding
the foregoing, each Sublicensee's 1ight to enter into a New License Agreement (and to have its sublicense smvive until such New License
Agreement is executed) shall only be available to the extent (i) Licensee has provided The Regents with a copy of the Sublicense granted
to such Sublicensee as required under Paragraph 3.2, (ii) such Sublicensee notifies The Regents within 30 days after the te1mination of
this Agreement that it wishes to enter into a New License Agreement, (iii) Sublicensee pays to The Regents its  ***pro rata*** share of any unreimbursed patent expenses during the negotiation of the New License Agreement within 30 days of the
mailing date of the invoice for such expenses, and (iv) such Sublicensee is not involved in litigations as an adverse paity to The Regents.

**4.** **SUBLICENSING REQUESTS** 

4.1 If at any time following the three year anniversaiy of the Effective Date, a third pai·ty **("Interested Party")** communicates to The Regents anexpression of interest inobtaining a license under the Patent Rights to develop
and commercialize Licensed Products covered by the Field of Use but for which such Licensed Product have not been developed or ai·e
not cmTently under development by Licensee and/or Sublicensee of Licensee **("New Licensed Product"),** then The Regents shall give written notice to Licensee of the Interested Paity, subject to any confidentiality obligations.
Licensee shall have sixty (60) days from the receipt
of such notice to give The Regents written notice stating whether Licensee elects to develop the New Licensed Product or begin negotiations
for a Sublicense to the Interested Party ()"**Election Notice** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If the Election Notice indicates Licensee will negotiate with the Interested Party regarding the grant of a Sublicense for the development
of New Licensed Products, Licensee shall promptly begin such negotiation in good faith on commercially reasonable terms mutually agreeable
to Licensee and the Interested Party. If, despite good faith negotiations, Licensee and the Interested Party are unable to reach mutual
agreement within ninety (90) days of The Regents' receipt of the Election Notice, Licensee will provide to The Regents a report
specifying the license terms last proposed by the Interested Party and a written justification for Licensee's refusal to grant the
proposed sublicense. If The Regents, at is sole discretion, determines that the terms of the sublicense proposed by the Interested Party
are reasonable under the totality of the circumstances, taking into account Licensee's and existing Sublicensees' Licensed
Products in development, then The Regents shall have the right to grant to the Interested Party a license under the Patent Rights to make,
have made, use, sell, offer for sale and import products for use in the Field of Use at substantially the same terms last proposed to
Licensee by the Interested Party, provided the royalty rates are at least equal to those paid by Licensee under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If the Election Notice indicates Licensee plans to develop New Licensed Products, then Licensee will provide along with the Election
Notice, a detailed development schedule, including specific diligence requirements and development milestones for the development of New
Licensed Products, such diligence requirements and milestones to be negotiated and agreed to by the parties and incorporated into this
Agreement in an amendment within ninety (90) days of The Regents' receipt of the Election Notice. If The Regents and Licensee have
not concluded such amendment within said ninety (90) days, The Regents may grant the Interested Party a license under the Patent Rights
to make, have made, use, sell, offer for sale and import products for use in the Field of Use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) If The Regents does not receive an Election Notice from Licensee in accordance with Paragraph 4.1, then this will be deemed by The
Regents as an election by the Licensee not to pursue the New Licensed Product itself and a refusal to grant a Sublicense to the Interested
Party, and therefore The Regents will have the right to grant the Interested Party a license under the Patent Rights to make, have made,
use, sell, offer for sale and import products for use in the Field of Use.

5. FEES & EQUITY

5.1 The license issue fee has been satisfied and paid in full under the Original License.

5.2 Licensee must pay to the Regents an annual license maintenance fee of May
 18, 2022 and each anniversary thereof until the First Commercial Sale. The maintenance fee will not
 be due and payable on any anniversary if on that date Licensee is commercially selling a Licensed Product
 and paying an Earned Royalty to The Regents. The license maintenance fees are non-refundable and are
 not an advance against royalties.

5.3 For each Licensed Product reaching the milestones indicated below, Licensee must make the following milestone payments to The Regents
within Thirty (30) days of reaching such milestone. If Licensee is allowed to skip any of the milestones listed in Paragraphs 5.3(A)-(G)
below, the milestone payment for the skipped milestone will be due upon reaching the next milestone (for example, if a Licensed Product
is allowed to be sold without completing a Phase III clinical trial, the milestone payment due under paragraph (D) will be added to milestone
(E).) Milestone payments are due from Licensee irrespective of whether the milestone listed below was reached by the Licensee itself,
a third party acting on Licensee's behalf, or by a Sublicense or Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) due upon IND approval by the US FDA or CTA approval by Health Canada for a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) due upon first human dosing with a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) due
 upon successful completion of Phase II clinical trial with a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) due
 upon successful completion of Phase III clinical trial with a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) due
 upon First Commercial Sale of a Licensed Product in the US;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) due
 upon First Commercial Sale of a Licensed Product in Europe.

5.4 **Participation Rights.** Following the Effective Date, and until such time as a Going Public Transaction is completed, if the
Licensee proposes to sell any equity securities or securities that are convertible into equity securities of the Company, then The Regents
and/or its Assignee (as defined below) will have the right to purchase up to Ten Percent (10%) of the securities issued in each offering
on the same terms and conditions as are offered to the other purchasers in each such financing. Licensee shall provide ten (10) days advanced
written notice to The Regents of each such financing, including reasonable detail regarding the terms and purchasers in the financing.
The term "Assignee" means (a) any entity to which The Regents' participation rights under this section have been assigned
either by The Regents or another entity, or (b) any entity that is controlled by The Regents. In no event will the participation right
allowed for any such financing exceed ten percent in combination with any participation right allowed under the Peripheral FAAH License.

5.5 As partial consideration for all the rights and licenses granted to Licensee, the Licensee issued to The Regents six hundred and sixty
two thousand, five hundred (662,500) fully paid and non-assessable shares of common stock of Licensee under the Original License and the
stock issuance agreement signed by the parties,

5.6 Licensee will also issue additional fully paid and non-assessable shares of common stock of Licensee
 ()"**Antidilution Shares**") to The Regents until such time as bona fide financing equal to or exceeding has been raised by Licensee in net proceeds from the sale of securities or by the conversion of instruments convertible into equity,
 so that, after issuance of the Antidilution Shares, The Regents still owns a total of **Two and One Half Percent (2.5%)** of the
 outstanding and issued common stock of Licensee on a fully diluted and as converted basis taking into consideration shares also
 issued under the Peripheral FAAH License. In all such anti-dilution adjustments, any increase in the number of shares of stock
 reserved for any option plan for employees, consultants, directors and so forth, authorized in connection with a financing shall be
 deemed to have been issued prior to the sale of securities. The Regents shall be issued Antidilution Shares within sixty (60) days
 after any issuance of stock or stock equivalent by Licensee. This Paragraph 5.6 will smvive the tennination or expiration of this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;5.7 The Regents acknowledges that any share capital of the Licensee received in connection with this Agreement will be subject the Stock
Issuance Agreement which may include restrictions on resale. The Regents ftnther acknowledge that a Going Public Transaction may involve
the exchange of share capital of the Licensee for an existing public company, and that The Regents may be required to tender any existing
share capital of the Licensee in connection with such a transaction. In the case of a Going Public Transaction, the patties agree that any Antidilution Shares owing to The Regents pursuant to Paragraph 5.6
shall be read to mean shares in the common stock of the resulting public company, and the financing threshold set fo1th in Pat·agraph
5.6 shall include any financing conducted in connection with a Going Public Transaction or by the resulting public company.

6. ROYALTIES

6.1 Licensee must pay
 to The Regents for sales b Licensee and Sublicensees (subject to Section 3.3 above) an earned
 royalty at the rate of of Net Sales **("Earned Royalty").** This
 royalty rate shall be re uce to Percent with respect to Licensed Products not covered by a Valid Claim in the respective
 country subject to Section 3.3 above). Eatned Royalties will accme in each countiy on a Licensed
 Product-by-Licensed Product basis for as long as the respective Licensed Product is covered
 bya Valid Claim in the respective countiy ("RoyaltyTe1m").

If it is reasonably likely that the practice of the Licensed Technology by Licensee or the Sublicenses hereunder would infringe a third patty's intellectual prope1ty, and as a result thereof it is reasonably necessat·y for Licensee and/or any Sublicensees to seek or exercise a license from such a third pat·ty, then fifty percent (50%) of such royalties and other payments actually made to such third paity in consideration for the grant of such freedom to operate license under such third patty' intellectual prope1ty shall be credited against the royalties othe1wise due to The Regents under this Agreement, provided that no such ainounts deducted shall reduce the royalties paid to The Regents pursuant to this section 6.1 by more than thirty percent (30%).

6.2 The Licensee will pay to The Regents all Eatned Royalties owed to The Regents on a quatterly basis on
or before Febmaiy 28 (for the calendar qua1ter ending December 31 of the prior yeat'), May 31 (for the calendar quatter ending Mai·ch 31), August 31 (for the calendar quatter ending June 30) and November 30 (for the calendar qua1ter ending September 30) of each calendar year.
Notwithstanding the previous sentence, payments for Earned Royalties for sales from Sublicensees will be due within Sixty days receipt
by Licensee of royalties on Nets Sales of the Sublicensees from such Sublicensee, but in no event not later than one additional calendar
quaiter than such Eatned Royalty would othe1wise be due if the sale had been by the Licensee directly.

6.3 All consideration due The Regents will be paid in United States Dollars by check payable to "The Regents of the University of
California" or by wire ti·ansfer toan account designated by The Regents. With respect tosales of Licensed Products in a currency
other than UnitedStates Dollars, the Licensee will calculate the Earned Royalties and other consideration due The Regents by using the
appropriate foreign exchange rate for the cmTency quoted by *The Wall Street Journal* on the final business day of the qua1ter in
which such sales were made.

6.4 Sublicensing Income and Earned Royalties on Net Sales and other consideration accrned in any country outside the United States may
not be reduced by any taxes, fees or other charges imposed by the government of such country, except those taxes, fees and charges allowed
under the definition of Net Sales.

6.5 If any patent or claim thereof included within the Patent Rights is held invalid in a final decision by a comt of competent jmisdiction
from which no appeal has been or may be taken, then all obligations to pay Earned Royalties based on that patent or claim or any claim
patentably indistinct therefrom will cease as of the date of final decision. The Licensee will not, however, be relieved from paying any
Earned Royalties that accrned before such final decision or that is based on another patent or pending claim not involved in such decision.

7. **DUE DILIGENCE** 

7.1 The Licensee, upon execution of this Agreement, will diligently proceed with the development, manufacture and sale of Licensed Products
and Licensed Methods and will earnestly and diligently market the same aft.er execution of this Agreement and in quantities sufficient
to meet the market demands therefor.

7.2 The Licensee will obtain all necessruy governmental approvals in each country where Licensed Products and Licensed Methods ru·e
manufactured, used, sold, offered for sale or impo1ted.

7.3 In addition to its obligations under Paragraph 7.1, Licensee specifically commits to achieving the following objectives in its due
diligence activities under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Spend
 a minimum of on the development of a Licensed Product within three years of the Effective Date of the
 License Agreement, such development may be in the form of sponsored research at UCI;

(B) Begin
 a Phase I clinical trial and complete a first human dosing with a Licensed Product no later
 than ;

(C) Initiate
 a Phase II clinical trial with a Licensed Product no later than ;

(D) Initiate
 pivotal phase III clinical trial with a Licensed Product no later than ;

(E) File for regulatory approval for a Licensed Product with the FDA or EMA no later
 than ;
 and

(F) Complete a First Commercial Sale of a Licensed Product, no later than one year after receiving regulatory
approval for such Licensed Product by the FDA or EMA.

7.4 If the Licensee is unable to perfo1m or achieve any of the provisions in Paragraphs 7.1-7.3 above,
then The Regents has the1ight and option to either te1minate this Agreement or reduce the exclusive license granted to the Licensee to
a nonexclusive license. This right, if exercised by The Regents, supersedes the1ights granted in Article 2 (GRANT).

7.5 If this Agreement is te1minated for any reason other than breach ofthis Agreement by The Regents, then Licensee shall grant The Regents
(and/or The Regents' designee) a 1ight of reference with respect to any investigation perfo1med by or on behalf of Licensee using a Licensed
Product or Licensed Method-i.e., the authority to rely upon and othe1wise use said investigation for the purpose of obtaining FDA approval of an application
for marketing clearance and/or approval, including without limitation, the ability to make available the underlying raw data from the
investigation for FDA audit, if necessary. Furthermore, if Licensee filed an IND for a Licensed Product then, within six (6) months of
such termination, Licensee shall provide to The Regents a report describing any experimental data performed by Licensee or on behalf of
Licensee relevant for development of Licensed Products including the Investigator Brochure from any regulatory filings as well as clinical
data reports, raw data, and/or information about contract research organizations ()"**CRO**") that may have executed the work,
including permission for The Regents to request reports from such CRO for Licensed Product development sponsored by Licensee.

8. PROGRESS AND ROYALTY REPORTS

8.1 Beginning January 31, 2022, and semi-annually thereafter, the Licensee will submit to The Regents a written progress report covering
the Licensee's and Sublicensee's activities related to the development and testing of all Licensed Products and Licensed Methods. The
report will include information sufficient to enable The Regents to ascertain progress by Licensee towards meeting the diligence requirements
set forth in Article 7 (DUE DILIGENCE) and in obtaining any governmental approvals necessary for marketing and selling Licensed Products
and Licensed Methods. Progress reports are required for each Licensed Product and Licensed Method until the first sale of such Licensed
Product or Licensed Method occurs in the United States.

8.2 Each progress report must include all of the following for each semiannual period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) summary of work completed, including itemized objectives required by Paragraph 7.3;

(B) key scientific discoveries;

(C) summary of work in progress, including status of incomplete itemized objectives required by Paragraph 7.3;

(D) current schedule of anticipated events and milestones;

(E) market plans for introduction of Licensed Products and Licensed Methods;

(F) listing of significant corporate transactions involving the Licensed Product, including an updated listing of any and all Sublicenses;
and

(G) summary of resources (dollar value) spent in the reporting period.

8.3 Beginning with the first sale of a Licensed Product or Licensed Method by Licensee or Sublicensee, the Licensee will make quarterly
royalty reports to The Regents on or before each February 28 (for the quarter ending December 31), May 31 (for the quarter ending March
31), August 31 (for the quarter ending June 30) and November 30 (for the quarter ending September 30) of each year. Licensee will state
in its royalty report if it had no sales of any Licensed Product in the applicable quarter. Each royalty report will cover Licensee's
and all Sublicensee's most recently completed calendar quarter and shall include the completed Royalty Statement attached hereto
as "**APPENDIX C** ", showing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) gross invoice prices and Net Sales of Licensed Products or Licensed Methods sold (itemizing the applicable gross proceeds and any
deductions therefrom);

(B) the quantity of each type of Licensed Product and/or Licensed Method sold;

(C) the country in which each Licensed Product and Licensed Method was manufactured or sold;

(D) the Earned Royalties, in United States dollars, payable to The Regents;

(E) the Earned Royalties attributable to each Sublicense;

(F) the method and currency rates (if any) used to calculate the Earned Royalty, specifying all deductions taken and the dollar amount
of each such deduction; and

(G) date of the first sale of a Licensed Product or Licensed Method (only needed in the first royalty report following the first sale).

If more than one type of Licensed Product or Licensed Method is sold, then the information of subparagraphs (A)-(G) shall be provided for each type of Licensed Product or Licensed Method.

8.4 The Regents shall have the right to terminate this Agreement in accordance with Article 11 (TERMINATION BY THE REGENTS) if Licensee
does not provide progress reports and royalty reports in accordance with this Article 8.

8.5 Licensee must notify The Regents if Licensee or any of its Sublicensees ceases to be a small entity (as defined by the United States
Patent and Trademark Office).

9. BOOKS AND RECORDS

9.1 The Licensee will keep accurate books and records of (i) the development, manufacture, use, import, and sale of all Licensed Products
and (ii) all Sublicenses, collaboration agreements and joint venture agreements entered into by Licensee that involve Patent Rights. Such
books and records will be preserved for at least five (5) years after the date of the payment to which they pertain and will be open to
examination by representatives or agents of The Regents during regular office hours to determine their accuracy and assess the Licensee's
compliance with the terms of this Agreement.

9.2 The Regents shall pay the fees and expenses of such examination. If, however, an error in royalties or fees of more than five percent
(5%) of the total royalties and fees due for any year is discovered in any examination, then the Licensee shall bear the fees and expenses
of such examination and shall remit such underpayment to The Regents within thirty (30) days of the examination results.

10. LIFE OF THE AGREEMENT

10.1 Unless otherwise terminated by operation of law or by acts of the parties in accordance with the terms of this Agreement, this Agreement
will remain in effect from the Effective Date until the expiration or abandonment of the last of the Patent Rights licensed hereunder
with respect to Licensed Products covered by a Valid Claim and five (5) years after the First Commercial Sales of a Licensed Product in
the respective country which is not covered by a Valid Claim in such country but the Regulatory Approval of which is based on any portion
of the Associated Technology, whichever is later. Upon expiry of this Agreement pursuant to this Section 10.1, Licensee shall retain an
irrevocable, fully paid-up, non-exclusive, sublicensable, fully paid up and royalty free right to use the Associated Technology solely
for the commercialization of Licensed Products.

10.2 This Agreement will automatically terminate without the obligation to provide 60 days' notice as set forth in Article 11 (TERMINATION
BY THE REGENTS) upon the filing of a petition for relief under the United States Bankruptcy Code by or against the Licensee as a debtor
or alleged debtor.

10.3 Any termination or expiration of this Agreement will not affect the rights and obligations set forth in the following Articles:

---

| | |
|:---|:---|
| Article 1 | Definitions |
| Article 9 | Books and Records |
| Article 10 | Life of The Agreement |
| Article 13 | Disposition of Licensed Products on Hand Upon Termination |
| Article 14 | Use of Names and Trademarks |
| Article 15 | Limited Warranty |
| Article 16 | Limitation of Liability |
| Article 20 | Indemnification |
| Article 21 | Notices |
| Article 26 | Governing Laws; Venue; Attorneys Fees |
| Article 29 | Confidentiality |

---

10.4 The termination or expiration of this Agreement will not relieve the Licensee of its obligation to pay any fees, royalties or other
payments owed to The Regents at the time of such termination or expiration and will not impair any accrued right of The Regents, including
the right to receive Earned Royalties in accordance with Articles 6 (ROYALTIES) and 13 (DISPOSITION OF LICENSED PRODUCTS UPON TERMINATION).

11. TERMINATION BY THE REGENTS

11.1 If the Licensee fails to perform or violates any term of this Agreement, then The Regents may give written notice of such default
(" **Notice of Default**") to the Licensee. If the Licensee fails to repair such default within sixty (60) days after the
effective date of such Notice of Default, then The Regents will have the right to immediately terminate this Agreement, including all
Sublicenses, by providing a written notice of termination ()"**Notice of Termination**") to the Licensee. Notwithstanding
the above, if Licensee is more than ninety (90) days in arrears for Patent Costs of more than twenty-five thousand dollars ($25,000),
The Regents will have the right to immediately terminate this Agreement by providing a Notice of Termination without having to provide
a Notice of Default. Within 15 days of such termination, Licensee must certify in writing that it has destroyed and ceased all use of
the Associated Technology, as well as any products incorporating or made through the use of the Associated Technology.

&nbsp;&nbsp;&nbsp;&nbsp;12. TERMINATION BY LICENSEE

12.1 The Licensee has the right at any time to terminate this Agreement in whole or with respect to any portion of the Patent Rights by
providing written notice to The Regents at least ninety (90) days in advance of the effective date of termination selected by Licensee.
Licensee may terminate its obligations under this Agreement with respect to Associated Technology only if it certifies in writing that
it has destroyed and ceased all use of the Associated Technology, as well as any products incorporating or made through the use of the
Associated Technology.

&nbsp;&nbsp;&nbsp;&nbsp;13. DISPOSITION OF LICENSED PRODUCT ON HAND UPON TERMINATION

13.1 Upon termination of this Agreement by Licensee, Licensee may continue to sell any previously made Licensed Products during the one
hundred eighty (180) days following such termination. Licensee must submit royalty reports on the sale of Licensed Products allowed under
this Paragraph 13.1 in accordance with Article 8 (PROGRESS
AND ROYALTY REPORTS) and must pay Earned Royalties for sales of Licensed Products made during the term of this Agreement. Licensee will
not, and will ensure that Sublicensees do not, otherwise make, sell, offer for sale, or import Licensed Products after termination of
this Agreement by Licensee or The Regents.

14. USE OF NAMES AND TRADEMARKS

14.1 Licensee will not use any name, trade name, trademark or other designation of The Regents, IIT, Parma, or Urbino or their employees
(including contraction, abbreviation or simulation of any of the foregoing) in advertising, publicity or other promotional activity. Unless
required by law, or by the rules and policies of the Exchange in connection with a Going Public Transaction, Licensee is expressly prohibited
from using the name "The Regents of the University of California" or the name of any campus of the University of California
in advertising, publicity, or other promotional activity, without written permission of The Regents. Unless required by law, or by the
rules and policies of the Exchange in connection with a Going Public Transaction, Licensee is expressly prohibited from using the name
"Fondazione Istituto Italiano di Tecnologia", "University of Urbino, Italy", and/or "University of Parma,
Italy" in advertising, publicity, or other promotional activity without written permission of the Invention Transfer Group at UCI.

&nbsp;&nbsp;&nbsp;&nbsp;15. LIMITED WARRANTY

15.1 The Regents warrants to the Licensee that it has the lawful right to grant this license.

15.2 This license and the associated Invention, Patent Rights, Licensed Products, Licensed Methods, and Associated Technology are provided
WITHOUT WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY OF ANY KIND, EXPRESS OR IMPLIED. THE REGENTS,
IIT, PARMA, AND URBINO MAKE NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY THAT THE INVENTION, PATENT RIGHTS, LICENSED PRODUCTS, LICENSED
METHODS, OR ASSOCIATED TECHNOLOGY WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER RIGHTS.

15.3 This Agreement does not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) express or imply a warranty or representation as to the validity, enforceability, or scope of any Patent Rights or Associated Technology;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) express or imply a warranty or representation that anything made, used, sold, offered for sale or imported or otherwise exploited
under any license granted in this Agreement is or will be free from infringement of patents, copyrights, or other rights of third parties;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) obligate The Regents, IIT, Urbino, and/or Parma to bring suits against third parties for patent infringement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) confer by implication, estoppel or otherwise any license or rights under any patents or other rights of The Regents, IIT, Urbino,
and/or Parma other than Patent Rights, regardless of whether such patents are dominant or subordinate to Patent Rights; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) obligate The Regents, IIT, Urbino, and/or Parma to furnish any know-how, technology or information not provided in Patent Rights or
Associated Technology.

16. LIMITATION OF LIABILITY

16.1 THE REGENTS, IIT, URBINO, AND/OR PARMA WILL NOT BE LIABLE FOR ANY LOST PROFITS, COSTS OF PROCURING SUBSTITUTE GOODS OR SERVICES, LOST
BUSINESS, ENHANCED DAMAGES FOR INTELLECTUAL PROPERTY INFRINGEMENT, OR FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, OR OTHER
SPECIAL DAMAGES SUFFERED BY LICENSEE, SUBLICENSEES, JOINT VENTURES, OR AFFILIATES ARISING OUT OF OR RELATED TO THIS AGREEMENT FOR ALL
CAUSES OF ACTION OF ANY KIND (INCLUDING TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY AND BREACH OF WARRANTY) EVEN IF THE REGENTS, IIT,
URBINO, AND/OR PARMA HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE REGENTS, IIT, URBINO, AND/OR PARMA WILL NOT BE LIABLE FOR
ANY DIRECT DAMAGES SUFFERED BY LICENSEE, SUBLICENSEES, JOINT VENTURES, OR AFFILIATES ARISING OUT OF OR RELATED TO PATENT RIGHTS TO THE
EXTENT ASSIGNED, OR OTHERWISE LICENSED, BY INVENTORS TO THIRD PARTIES.

17. PATENT PROSECUTION AND MAINTENANCE

17.1 **Patent Prosecution.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) As long as the Licensee has paid Patent Costs as provided for in this Article 17 (Patent Prosecution and Maintenance), The Regents
will diligently prosecute and maintain the United States and foreign patents comprising the Patent Rights. Patent Rights will be held
in the name of The Regents, obtained with counsel of The Regents' choice, and The Regents will be the client of record for such
counsel. The Regents will consider any comments or suggestions by Licensee with respect to Patent Actions, however, The Regents'
patent counsel will take instructions on all Patent Actions from The Regents. The Regents is entitled to take action to preserve rights
and minimize costs whether or not Licensee has provided any comments, and will use reasonable efforts not to allow any Patent Rights to
lapse or become abandoned without Licensee's written authorization under this Article 17, except for the filing of continuations,
divisionals, or the like that substitute for the lapsed applications. The Regents shall have no requirement to file, prosecute or maintain
Patent Rights if Licensee is not current with its Patent Cost obligations as set forth in Article 17.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Regents will provide Licensee with copies of each patent application, office action, response to office action, or other patent
prosecution correspondence with patent offices regarding Patent Rights as requested by Licensee. The Licensee agrees to keep this documentation
confidential as provided for in Article 29 (CONFIDENTIALITY).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The Regents shall use reasonable efforts to amend any patent application to include claims reasonably requested by the Licensee to
protect the products and services contemplated to be sold, or the Licensed Method to be practiced, under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The Licensee may request Patent Actions, including national phase filings, via a written request to The Regents not less than ninety
(90) days prior to the deadline for such filing or action to be taken in connection therewith ()"**Patent Prosecution Request** ").
If the Patent Action is a national phase deadline, such request concerning a Patent Action must identify the countries desired. The absence
of a Patent Prosecution Request from the Licensee to The Regents will (i) be considered an election not
to obtain or maintain patent rights associated with the specific phase of patent prosecution in such territory, (ii) give The Regents
the right to file patent applications at its own expense in any territory which Licensee has not identified pursuant to this Paragraph
17.1(D), and (iii) result in such patent application(s) and patent(s) being excluded from Patent Rights and therefore not subject to this
Agreement, and Licensee will have no further rights or license to them.

17.2 **Past Patent Costs.** Licensee will bear all Patent Costs incurred prior to the term of this Agreement. Licensee must send payment
for such costs to The Regents within thirty (30) days of Licensee's receipt of an invoice for those costs.

17.3 **Ongoing Patent Costs.** Licensee will bear all Patent Costs during the term of this Agreement and, at the Regents' discretion,
Licensee shall pay in advance to The Regents the Patent Cost as estimated by The Regents' patent counsel ()"**Advanced Payment** ")
before The Regents authorizes its patent counsel to proceed with the Patent Action associated with such estimate. The absence of this
Advanced Payment will be considered an election not to secure the patent rights associated with the specific phase of patent prosecution,
and such patent application(s) and patent(s) will not be subject to this Agreement, and Licensee will have no further rights or license
to them. Any Patent Costs incurred by The Regents and not paid by Licensee in advance will be rebilled to the Licensee and are due within
thirty (30) days of rebilling by The Regents.

17.4 **Termination of Patent Prosecution**. The Licensee will be obligated to pay any Patent Costs incurred during the three (3)-month
period after receipt by either party of a Notice of Termination, even if the invoices for such Patent Costs are received by the Licensee
after the end of the three (3)- month period following receipt of a Notice of Termination. The Licensee may terminate its obligation to
pay Patent Costs with respect to any given patent application or patent under Patent Rights in any or all designated countries upon three
(3)-months' written notice to The Regents. The Regents may continue prosecution and/or maintenance of such application(s) or patent(s)
at its sole discretion and expense, provided, however, that the Licensee will have no further right or licenses thereunder. Non-payment
of Patent Costs may be deemed by The Regents as an election by the Licensee not to maintain such application(s) or patent(s).

17.5 **Patent Extensions.** The Licensee will apply for an extension of the term of any patent included within the Patent Rights if
appropriate under the Drug Price Competition and Patent Term Restoration Act of 1984 and/or European, Japanese and other foreign counterparts
of this Law. The Licensee shall prepare all documents and The Regents agrees to execute the documents and to take additional action as
the Licensee reasonably requests in connection therewith. Licensee shall be liable for all costs relating to such application.

18. PATENT MARKING

18.1 Licensee must mark all Licensed Products made, used or sold under the terms of this Agreement, or their containers, in accordance
with the applicable patent marking laws. Licensee shall be responsible for all monetary and legal liabilities arising from or caused by
(i) failure to abide by applicable patent marking laws and (ii) any type of incorrect or improper patent marking.

**19.** **PATENT INFRINGEMENT** 

19.1 In the event that The Regents (to the extent of the actual knowledge of the licensing professional responsible for the administration
of this Agreement) or the Licensee learns of infringement of potential commercial significance of any patent licensed under this Agreement,
the knowledgeable party will provide the other (i) with written notice of such infringement and (ii) with any evidence of such infringement
available to it (the "**Infringement Notice** "). During the period in which, and in the jurisdiction where, the Licensee
has exclusive rights under this Agreement, neither The Regents nor the Licensee will notify a possible infringer of infringement or put
such infringer on notice of the existence of any Patent Rights without first obtaining consent of the other. If the Licensee puts such
infringer on notice of the existence of any Patent Rights with respect to such infringement without first obtaining the written consent
of The Regents and if a declaratory judgment action is filed by such infringer against The Regents, then Licensee's right to initiate
a suit against such infringer for infringement under Paragraph 19.2 below will terminate immediately without the obligation of The Regents
to provide notice to the Licensee. Both The Regents and the Licensee will use their diligent efforts to cooperate with each other to terminate
such infringement without litigation.

19.2 If infringing activity of potential commercial significance by the infringer has not been abated within ninety (90) days following
the date the Infringement Notice takes effect, then the Licensee may institute suit for patent infringement against the infringer. The
Regents may voluntarily join such suit, but may not otherwise commence suit against the infringer for the acts of infringement that are
the subject of the Licensee's suit or any judgment rendered in that suit. The Licensee may not join The Regents as a party in a suit initiated
by the Licensee without The Regents' prior written consent. If The Regents joins a suit initiated by the Licensee, then the Licensee will
pay any costs incurred by The Regents arising out of such suit, including but not limited to, any legal fees of counsel that The Regents
selects and retains to represent it in the suit.

19.3 If, within a hundred and twenty (120) days following the date the Infringement Notice takes effect, infringing activity of potential
commercial significance by the infringer has not been abated and if the Licensee has not brought suit against the infringer, then The
Regents may institute suit for patent infringement against the infringer. If The Regents institutes such suit, then the Licensee may not
join such suit without The Regents' consent and may not thereafter commence suit against the infringer for the acts of infringement that
are the subject of The Regents' suit or any judgment rendered in that suit.

19.4 Notwithstanding anything to the contrary in this Agreement, in the event that the infringement or potential infringement pertains
to an issued patent included within the Patent Rights and written notice is given under the Drug Price Competition and Patent Term Restoration
Act of 1984 (and/or foreign counterparts of this Law), then the party in receipt of such notice under the Act (in the case of The Regents
to the extent of the actual knowledge of the licensing officer responsible for the administration of this Agreement) shall provide the
Infringement Notice to the other party promptly. If the time period is such that the Licensee
will lose the right to pursue legal remedy for infringement by not notifying a third party or by not filing suit, the notification period
and the time period to file suit will be accelerated to within forty-five (45) days of the date of such notice under the Act to either
party.

19.5 Any recovery or settlement received in connection with any suit will first be shared by The Regents and the Licensee equally to cover
any litigation costs each incurred and next shall be paid to The Regents or the Licensee to cover any litigation costs it incurred in
excess of the litigation costs of the other. In any suit initiated by the Licensee, any recovery in excess of litigation costs will be
shared between Licensee and The Regents as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) for any recovery other than amounts paid for willful infringement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Regents will receive of the recovery if The Regents was not a party in the litigation and did not incur any litigation costs;

(ii) The Regents will receive of
 the recovery if The Regents was a party in the litigation, but The Regents did not incur any litigation costs; and

(iii) The Regents will receive of
 the recovery if The Regents incurred any litigation costs in connection with the litigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) for any recovery for
 willful infringement, The Regents will receive of
 the recovery.

In any suit initiated by The Regents, any recovery in excess of litigation costs will belong to The Regents. The Regents and the Licensee agree to be bound by all determinations of patent infringement, validity and enforceability (but no other issue) resolved by any adjudicated judgment in a suit brought in compliance with this Article 19 (Patent Infringement).

19.6 Any agreement made by the Licensee for purposes of settling litigation or other dispute shall comply with the requirements of Article 3 (Sublicenses) of this Agreement.

19.7 Each party will cooperate with the other in litigation proceedings instituted hereunder but at the expense of the party who initiated
the suit (unless such suit is being jointly prosecuted by the parties).

19.8 Any litigation proceedings will be controlled by the party bringing the suit, except that The Regents may be represented by counsel
of its choice in any suit brought by the Licensee.

20. INDEMNIFICATION

20.1 Licensee will, and will require Sublicensees to, indemnify, hold harmless, and defend The Regents, IIT, Urbino, and Parma, and their
officers, employees, and agents; the sponsors of the research that led to the Invention; and the inventors of patents or patent applications
under Patent Rights and their employers; against any and all third party claims or suits, and any losses, damages, costs, fees, and expenses
arising therefrom, to the extent resulting from, or arising out of, the exercise of this Agreement or any Sublicense by Licensee or Sublicensee.
This indemnification will include, but will not be limited to, any product liability. If The Regents, IIT, Urbino, and/or Parma, at their
sole discretion, believes that there will be a conflict of interest or it will not otherwise be adequately represented by counsel chosen
by the Licensee to defend The Regents, IIT, Urbino, and/or Parma in accordance with this Paragraph 20.1, then The Regents, IIT,
Urbino, and/or Parma may retain counsel of its choice to represent it, and the Licensee will pay all expenses for such representation.

20.2 The Licensee, at its sole cost and expense, will insure its activities in connection with any work performed hereunder and will obtain,
keep in force, and maintain the following insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Commercial Form General Liability Insurance (contractual liability included) with limits as follows:

---

| | |
|:---|:---|
| Each Occurrence | $5000000 |
| Products/Completed Operations Aggregate | $10000000 \* |
| Personal and Advertising Injury | $5000000 |
| General Aggregate (commercial form only) | $10000000 |

---

\* Within one month prior to the sale of Licensed Products

If the above insurance is written on a claims-made form, it shall continue for three (3) years following termination or expiration of this Agreement. The insurance shall have a retroactive date of placement prior to or coinciding with the Effective Date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Worker's Compensation as legally required in the jurisdiction in which the Licensee is doing business.

20.3 The coverage and limits referred to in Paragraph 20.2 above will not in any way limit the liability of the Licensee under this Article
20 (INDEMNIFICATION). Upon the execution of this Agreement, the Licensee will furnish The Regents with certificates of insurance evidencing
compliance with all requirements. Such certificates will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Provide for thirty (30) days' advance written notice to The Regents of any modification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Indicate that The Regents has been endorsed as an additional insured under the coverage described above in Paragraph 20.2; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Include a provision that the coverage will be primary and will not participate with, nor will be excess over, any valid and collectable
insurance or program of self-insurance maintained by The Regents.

20.4 The Regents will promptly notify the Licensee in writing of any claim or suit brought against The Regents that The Regents intends
to invoke the provisions of this Article 20 (INDEMNIFICATION). The Licensee will keep The Regents informed of its defense of any claims
pursuant to this Article 20 (INDEMNIFICATION).

21. NOTICES

21.1 Any notice, progress report, royalty report or payment required to be given to either party under this Agreement will be sent to the
respective address given below and is effective: (a) on the date of delivery if delivered in person or (b) on the date of mailing if mailed
by first-class certified mail or by any global express carrier service. Either party may change its designated address by written notice.

In the case of Licensee:

Exxel Pharma Inc

12635 E Montview Blvd, Suite 137

Aurora, CO 80045

Email: soren.mogelsvang@exxelpharma.com

Phone: 720.261.1109

Attention: Soren Mogelsvang

In the case of The Regents, all general notice are mailed to:

University of California, Irvine

Research Translation Group

Attn: Director

5270 California Ave Suite 100

Irvine, CA 92697-7700

Ref: UC Case No. 2001-104 and 2014-360

With a copy to:

The Regents of the University of California

Office of the President

Knowledge Transfer Office

Attn: Executive Director 1111 Franklin Street, 5<sup>th</sup> Floor

Oakland, CA 94607-5200

Ref: UC Case No. 2001-104 and 2014-360

In the case of The Regents, all payments (except for Advanced Payments), royalty reports, and progress reports are mailed to:

University of California

Knowledge Transfer Office

1111 Franklin St, 5<sup>th</sup> Floor

Oakland, CA 94607

All Advanced Payments due under this Agreement shall be sent via wire transfer as follows:

*UC Bank:* Bank of America

100 West 33<sup>rd</sup> Street

New York, New York 10001

 

*ABA Routing Number:* 026009593 (within US only)

*Beneficiary Name:* Regents of the University of California

*Bank Account Name:* OTT Depository Account

*Bank Account Number:* 

*SWIFT Code:* BOFAUS3N

21.2 Licensee shall furnish to The Regents the completed licensee contact information form attached hereto as "**APPENDIX B** "
concurrent with execution of the Agreement, showing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The progress report contact (i.e. the contact responsible for ensuring that progress reports are submitted to The Regents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The patent prosecution contact to whom patent prosecution correspondence should be sent to; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The financial contact (i.e. the contact responsible for ensuring that payments are made under this Agreement to The Regents).

22. ASSIGNABILITY

22.1 This Agreement is binding upon and inures to the benefit of The Regents, its successors and assignees. But it is personal to Licensee
and assignable by Licensee only with the prior written consent of The Regents. The consent of The Regents will not be required if the
assignment is in conjunction with the transfer of all or substantially all of the business of Licensee to which this license relates,
or in connection with a Going Public Transaction. Any other attempt to assign this Agreement by Licensee is null and void.

22.2 No later than thirty (30) days prior to any assignment of this Agreement, all of the following terms and conditions shall be met,
and if they are not met, this Agreement and any assignment thereof will be considered null and void with no further notice from The Regents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) License must provide The Regents in writing the identity of the proposed acquirer including the new assignee's contact information
in the form of Appendix B of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The proposed acquirer or successor entity shall agree in writing to be bound by all the terms and conditions of this Agreement as
if such acquirer or successor entity were the original Licensee and no later than thirty (30) days prior to any assignment of this Agreement,
a copy of such written agreement shall be provided to The Regents by Licensee or the proposed acquirer or successor entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The
Regents must have received an assignment fee ()"**Assignment Fee**") of ;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The Regents must have received an additional assignment fee ()"**Additional Assignment Fee**") of for
 every in
 value (cash, stock, or other) Licensee receives as consideration from the acquirer or successor
 for the assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2 (C) and 22.2(D) will not apply to a Going Public Transaction concluded within twelve (12) months of the Effective Date and where Licensee has provided an exchange of all equity originally provided under this Agreement for equity in the proposed acquirer such that The Regents owns 2.5% of the stock of the acquirer.

22.3 In connection with a Going Public Transaction, Licensee must have provided an exchange of any equity originally provided under this
Agreement for equity in the proposed acquirer on equivalent terms as all other holders of equity of the Licensee immediately prior to
completion of a Going Public Transaction such that The Regents own 2.5% of the stock of the acquirer

23. LATE PAYMENTS

23.1 For each royalty payment or fee not received by The Regents when due, Licensee must pay to The Regents a simple interest charge of
ten percent (10%) per annum to be calculated from the date payment was due until it was actually received by The Regents. For purposes
of clarity, this Article 23 (LATE PAYMENTS) does not limit any rights of The Regents under this Agreement arising from the failure by
Licensee to make such payments when due.

24. WAIVER

24.1 No waiver by either party of any breach or default of any term of this Agreement will be deemed a waiver as to any subsequent and/or
similar breach or default. No waiver will be valid or binding upon the parties unless made in writing and signed by a duly authorized
officer of each party.

25. FORCE MAJEURE

25.1 Except for the Licensee's obligation to make any payments to The Regents hereunder, the parties shall not be responsible for any failure
to perform due to the occurrence of any events beyond their reasonable control that render their performance impossible or onerous, including,
but not limited to: accidents (environmental, toxic spill, etc.); acts of God; biological or nuclear incidents; casualties; earthquakes;
fires; floods; governmental acts; orders or restrictions; inability to obtain suitable and sufficient labor, transportation, fuel and
materials; local, national or state emergency; power failure and power outages; acts of terrorism; strike; and war.

25.2 Either party to this Agreement, however, will have the right to terminate this Agreement upon thirty (30) days' prior written notice if either party is unable
to fulfill its obligations under this Agreement due to any of the causes specified in Paragraph 25.1 for a period of one (1) year.

26. GOVERNING LAWS; VENUE; ATTORNEYS' FEES

26.1 THIS AGREEMENT WILL BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, but the scope and validity
of any patent or patent application will be governed by the applicable laws of the country of the patent or patent application.

26.2 Any legal action brought by the parties hereto relating to this Agreement will be conducted in San Francisco, California.

26.3 The prevailing party in any suit related to this Agreement will be entitled to recover its reasonable attorneys' fees in addition
to its costs and necessary disbursements.

27. GOVERNMENT APPROVAL OR REGISTRATION

If this Agreement or any associated transaction is required by the law of any nation to be either approved or registered with any governmental agency, the Licensee will assume all legal obligations to do so. The Licensee will notify The Regents if it becomes aware that this Agreement is subject to a United States or foreign government reporting or approval requirement. The Licensee will make all necessary filings and pay all costs including fees, penalties and all other out-of-pocket costs associated with such reporting or approval process.

28. COMPLIANCE WITH LAWS

The Licensee shall comply with all applicable international, national, state, regional and local laws and regulations in performing its obligations hereunder and in its use, manufacture, sale or import of the Licensed Products, or practice of the Licensed Method. The Licensee will observe all applicable United States and foreign laws with respect to the transfer of Licensed Products and related technical data and the provision of Licensed Methods to foreign countries, including, without limitation, the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations. The Licensee shall manufacture Licensed Products and practice the Licensed Method in compliance with applicable government importation laws and regulations of a particular country for Licensed Products made outside the particular country in which such Licensed Products are used, sold or otherwise exploited.

29. CONFIDENTIALITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.1 If either party discloses confidential information to the other party, the disclosing party will designate this information as confidential
by appropriate legend or instruction and the receiving party will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) use the same degree of care to maintain the secrecy of the confidential information as it uses to maintain the secrecy of its own
information of like kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) use the confidential information only to accomplish the purposes of this Agreement or for audit or management purposes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) ensure that any employees, customers, distributors and other agents to whom the confidential information is disclosed are bound to
it by similar obligations of confidence and to make such disclosure only as required to accomplish the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.2 Neither party will have any confidentiality obligation with respect to the confidential information belonging to or disclosed by the
other party that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the receiving party can demonstrate by written records was previously known to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the receiving party lawfully obtained from sources under no obligation of confidentiality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) is or becomes publicly available other than through an act or omission of the receiving party or any of its employees; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) is required to be disclosed under the California Public Records Act, governmental audit requirement or other requirement of law.

29.3 The provisions of this Article 29 (CONFIDENTIALITY) will continue in effect for five (5) years after expiration or termination of
this Agreement.

29.4 The Regents may release to the Inventors and senior administrators employed by The Regents the terms and conditions of this Agreement.
If such release is made, then The Regents shall give notice of the confidential nature and shall request that the recipient not disclose
such terms and conditions to others.

29.5 If a third party inquires whether a license to Patent Rights is available, then The Regents may disclose the existence of this Agreement
and the extent of the grant in Article 2 (GRANT) and Article 3 (SUBLICENSES) to such third party, but will not disclose the name of Licensee
or any other negotiated terms or conditions of this Agreement to such third party, except where The Regents is required to release information
under the California Public Records Act, a governmental audit requirement or other applicable law.

29.6 Licensee hereby grants permission for The Regents (including UCI) to include Licensee's name and a link to Licensee's
website annual reports and websites that showcase technology transfer- related stories as well as links to any publicly available news
stories about Licensee on such websites.

29.7 All written confidential information will be labeled or marked confidential or proprietary. If the confidential information is orally
disclosed, it will be reduced to writing or some other physically tangible form, marked and labeled as confidential or proprietary by
the disclosing party and delivered to the receiving party within thirty (30) days after the oral disclosure.

30. MISCELLANEOUS

30.1 The headings of the several sections are inserted for convenience of reference only and are not intended to be a part of or to affect
the meaning or interpretation of this Agreement.

30.2 This Agreement is not binding on the parties until it has been signed below on behalf of each party. It is then effective as of the
Effective Date.

30.3 No amendment or modification of this Agreement is valid or binding on the parties unless made in writing and signed on behalf of each
party.

30.4 This Agreement and Appendixes A-D embodies the entire understanding of the parties and supersedes all previous communications, representations
or understandings, either oral or written, between the parties relating to the subject matter hereof, except for the Secrecy Agreement
dated March 23, 2017, which continues to the extent it is not inconsistent with this Agreement.

30.5 In case any of the provisions contained in this Agreement are held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability will not affect any other provisions of this Agreement, and this Agreement will be construed as if such
invalid, illegal or unenforceable provisions had never been contained in it.

30.6 No provisions of this Agreement are intended or shall be construed to confer upon or give to any person or entity other than The Regents
and the Licensee any rights, remedies or other benefits under, or by reason of, this Agreement.

30.7 In performing their respective duties under this Agreement, each of the parties will be operating as an independent contractor. Nothing
contained herein will in any way constitute any association, partnership, or joint venture between the parties hereto, or be construed
to evidence the intention of the parties to establish any such relationship. Neither party will have the power to bind the other party
or incur obligations on the other party's behalf without the other party's prior written consent.

31. COUNTERPARTS AND EXECUTION

31.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument. Facsimile, Portable Document Format (PDF) or photocopied signatures of the parties will have the
same legal validity as original signatures.

IN WITNESS THEREOF, both The Regents and the Licensee have executed this Agreement by their respective and duly authorized officers on the day and year written.

---

| | | | |
|:---|:---|:---|:---|
| EXXEL PHARMA INC. | EXXEL PHARMA INC. | THE REGENTS OF THE UNIVERSITY OF CALIFORNIA | THE REGENTS OF THE UNIVERSITY OF CALIFORNIA |
| By: | /s/ Soren Mogelsvang | By: | /s/ Ronnie Hanecak |
|  | (Signature) |  | (Signature) |
| Name: | Soren Mogelsvang, PhD | Name: | Ronnie Hanecak, PhD |
| Title: | President and CEO | Title: | Senior Director of Licensing |
| Date: | 8/16/2021 | Date: | 8/17/2021 |

---

**APPENDIX A**

**Regents' Patent Rights**

<u>**UC Case 2001-104: Global FAAH Inhibitors**</u>

Issued US patent 7,176,201 <br> Issued US patent 8,003,693

<u>**UC Case 2014-360 – FAAH Inhibitors with improved bioavailability**</u>

PCT Application PCT/US2015/024753 entitled "Inhibitors of Fatty Acid Amide Hydrolase (FAAH) Enzyme with Improved Oral Bioavailability and Their Use as Medicaments", filed April 7, 2015.

Nationalized in:

<u>Country</u> <u>Application or Patent Number</u> <br> US 9,822,068 <br> EP 15776702.1

**<u>APPENDIX B</u>**

**LICENSEE CONTACT INFORMATION**

---

| | | | |
|:---|:---|:---|:---|
| **Licensee Name:** | Exxel Pharma Inc | **UC Control No:** |  |
| **PATENT PROSECUTION CONTACT:** | **PATENT PROSECUTION CONTACT:** |  |  |
| LAST NAME: | Mogelsvang | TELEPHONE: | 720-261-1109 |
| FIRST NAME: | Soren |  |  |
| TITLE: | President & CEO | FAX: |  |
| ADDRESS: | Suite 918, 1030 West Georgia Street, |  |  |
|  | Vancouver, British Columbia, | EMAIL: | soren.mogelsvang@exxelpharma.com |
|  | V6E 2Y3, Canada |  |  |
| **PATENT PROSECUTION CONTACT:** | **PATENT PROSECUTION CONTACT:** |  |  |
| LAST NAME: | Same as above | TELEPHONE: |  |
| FIRST NAME: |  |  |  |
| TITLE: |  | FAX: |  |
| ADDRESS: |  |  |  |
|  |  | EMAIL: |  |
| **PATENT PROSECUTION CONTACT:** | **PATENT PROSECUTION CONTACT:** |  |  |
| LAST NAME: | Same as above | TELEPHONE: |  |
| FIRST NAME: |  |  |  |
| TITLE: |  | FAX: |  |
| ADDRESS: |  |  |  |
|  |  | EMAIL: |  |

---

**<u>APPENDIX C</u>**

**SAMPLE ROYALTY STATEMENT**

---

| | |
|:---|:---|
| **UC Control No:**________________________________ | **Licensee Name:** Exxel Pharma Inc. |

---

**Quarter Covered: ______________________________**

**Product Name/Code(s): _____________________________**

**Date of First Sale of Product: _____________________________**

**Country of Manufacture for Product: _____________________________**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Product Name** | **Number of<br> Units Sold** | **Unit Selling<br> Price (US $)** | **Country<br> where Sold** | **Gross Sales <br> (US $)** | **Net Sales (US $)<br> itemize any<br> deductions** | **Royalty Rate<br> (%)** | **Total Earned<br> Royalties (US $)** |

---

**Total Earned Royalties: _______________________________**

**Less Minimum Annual Royalty: _____________________________**

*(If Applicable)*

**Balance Due The REGENTS: ______________________________**

**Prepared By: __________________**

## Exhibit 10.2

**Exhibit 10.2**

**Certain portions of this Exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K on the basis that they are not material and are the type of information that the registrant treats as confidential and private.**

**FIRST AMENDMENT TO THE LICENSE AGREEMENT BETWEEN THE REGENTS OF <br> THE UNIVERSITY OF CALIFORNIA AND EXXEL PHARMA, INC**

This first amendment (the **"First Amendment"),** dated March 7, 2024 (the**"Effective Date"),** is made by and between The Regents of the University of California **("The Regents"),** a California corporation having its statewide administrative offices at 1111 Franklin Street, 12h Floor, Oakland, California 94607-5200, acting through the offices of The University of California, Irvine located at 5270 California Ave, Suite #100, Irvine, CA 92697-7700 and **Exxel Pharma, Inc. ("Licensee")** having a principal place of business at **12635 E Montview Blvd, Suite 134, Aurora, CO 80045** and amends the license agreement with Licensee, dated August 17, 2021 with UC Agreement Control Number 2022-04-0094 (the **"License Agreement").**

**RECITALS**

**WHEREAS,** Licensee has requested an extension of certain diligence milestones and The Regents is willing to agree to such extensions;

**NOW THEREFORE,** in consideration of the foregoing premises and the mutual promises, covenants, and agreements hereinafter set forth, all parties to this First Amendment mutually agree to amend the License Agreement as follows:

1. **Replace PARAGRAPHS 7.3(A) – 7.3(F)** of the License
Agreement with the following to extend the deadlines therein:

&nbsp;&nbsp;&nbsp;&nbsp;(A) Spend a minimum of on the development of a Licensed Product within four and a half years of the Effective Date of the License Agreement, such development
may be in the form of sponsored research at UCI;

&nbsp;&nbsp;&nbsp;&nbsp;(B) Begin a Phase I clinical trial and complete a first human
dosing with a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(C) Initiate a Phase II clinical trial with a Licensed Product
no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(D) Initiate pivotal phase III clinical trial with a Licensed
Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(E) File for regulatory approval for a Licensed Product with
the FDA or EMA no later than ; and

&nbsp;&nbsp;&nbsp;&nbsp;(F) Complete a First Commercial Sale of a Licensed Product, no
later than one year after receiving regulatory approval for such Licensed Product by the FDA or EMA.

All other terms and conditions of the License Agreement remain the same.

This First Amendment may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Facsimile, Portable Document Format (PDF) or photocopied signatures of the Parties will have the same legal validity as original signatures.

IN WITNESS WHEREOF, the parties have executed this First Amendment by their duly authorized representatives for good and valuable consideration.

---

| | | | |
|:---|:---|:---|:---|
| **EXXEL PHARMA INC.** | **EXXEL PHARMA INC.** | **THE REGENTS OF THE UNIVERSITY OF CALIFORNIA** | **THE REGENTS OF THE UNIVERSITY OF CALIFORNIA** |
| By: | /s/ Soren Mogelsvang, PhD | By: | /s/ Casie Kelly |
| Name: | Soren Mogelsvang, PhD | Name: | Casie Kelly |
| Title: | President and CEO | Title: | Director, Research Translation |
| Date: | March 11, 2024 | Date: | March 11, 2024 |

---

<u>**APPENDIX A**</u>

**REGENTS' PATENT RIGHTS**

**1)** <u>**UC CASE NO. [#]**</u> **("[INVENTION NAME]")**

**Provisional Patent Application No. [#]** entitled, "**[INVENTION NAME]",** filed **[FILING DATE]** (UC Case No. **[UC CASE #]**) by Dr(s). **[INVENTOR'S NAME(S)]**, and assigned to The Regents.

**U.S. Patent Application No.** [#] entitled, "**[INVENTION NAME]",** filed **[FILING DATE]** (UC Case No. **[UC CASE #]**) by Dr(s) **[INVENTOR'S NAME(S)],** and assigned to The Regents.

**United States Patent No.** [#] entitled, "**[INVENTION NAME]",** filed **[FILING DATE]** (UC Case No. **[UC CASE #])** by Dr(s). **[INVENTOR'S NAME(S)]**, and assigned to The Regents.

## Exhibit 10.3

**Exhibit 10.3**

**Certain portions of this Exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K on the basis that they are not material and are the type of information that the registrant treats as confidential and private.**

EXCLUSIVE LICENSE AGREEMENT

between

THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

and

EXXEL PHARMA, INC

for

Peripheral FAAH Inhibitors

UC Cases 2001-104, 2008-522, 2012-075, and 2014-360

<u>UC Agreement Control No.:2022-04-0096</u>

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **Article No.** | **Title** | **Page** |
| **BACKGROUND** | **BACKGROUND** | **1** |
| **1.** | **DEFINITIONS** | **2** |
| **2.** | **GRANT** | **4** |
| **3.** | **SUBLICENSES** | **4** |
| **4.** | **SUBLICENSING REQUESTS** | **5** |
| **5.** | **FEES & EQUITY** | **6** |
| **6.** | **ROYALTIES** | **8** |
| **7.** | **DUE DILIGENCE** | **9** |
| **8.** | **PROGRESS AND ROYALTY REPORTS** | **9** |
| **9.** | **BOOKS AND RECORDS** | **11** |
| **10.** | **LIFE OF THE AGREEMENT** | **11** |
| **11.** | **TERMINATION BY THE REGENTS** | **12** |
| **12.** | **TERMINATION BY LICENSEE** | **12** |
| **13.** | **DISPOSITION OF LICENSED PRODUCT ON HAND UPON TERMINATION** | **12** |
| **14.** | **USE OF NAMES AND TRADEMARKS** | **12** |
| **15.** | **LIMITED WARRANTY** | **12** |
| **16.** | **LIMITATION OF LIABILITY** | **13** |
| **17.** | **PATENT PROSECUTION AND MAINTENANCE** | **14** |
| **18.** | **PATENT MARKING** | **15** |
| **19.** | **PATENT INFRINGEMENT** | **15** |
| **20.** | **INDEMNIFICATION** | **17** |
| **21.** | **NOTICES** | **18** |
| **22.** | **ASSIGNABILITY** | **19** |
| **23.** | **LATE PAYMENTS** | **20** |
| **24.** | **WAIVER** | **20** |
| **25.** | **FORCE MAJEURE** | **21** |
| **26.** | **GOVERNING LAWS; VENUE; ATTORNEYS' FEES** | **21** |
| **27.** | **GOVERNMENT APPROVAL OR REGISTRATION** | **21** |
| **28.** | **COMPLIANCE WITH LAWS** | **21** |
| **29.** | **CONFIDENTIALITY** | **22** |
| **30.** | **MISCELLANEOUS** | **23** |
| **31.** | **COUNTERPARTS AND EXECUTION** | **23** |
| **<u>APPENDIX A</u>** | **<u>APPENDIX A</u>** | **25** |
| **<u>APPENDIX B</u>** | **<u>APPENDIX B</u>** | **26** |
| **<u>APPENDIX C</u>** | **<u>APPENDIX C</u>** | **27** |
| **SAMPLE ROYALTY STATEMENT** | **SAMPLE ROYALTY STATEMENT** | **27** |

---

i

<u>UC Agreement Control No.:2022-04-0096</u>

**AMENDED AND RESTATED EXCLUSIVE LICENSE AGREEMENT PERIPHERALLY RESTRICTED FAAH INHIBITORS**

This amended and restated exclusive license agreement – peripherally restricted FAAH inhibitors ("**Agreement**") is made effective this 17<sup>th</sup> day of August, 2021 ("**Effective Date**"), by and between The Regents of the University of California, a California public corporation, having its statewide administrative offices at 1111 Franklin Street, Oakland, California 94607-5200 ("**The Regents**"), acting through its Irvine campus having an address at University of California, Irvine, Invention Transfer Group, 5270 California Ave., Suite 100, Irvine, CA 92697-7700 ("**UCI**") and Exxel Pharma Inc., having a principal place of business at 12635 E Montview Blvd, Suite 134, Aurora, CO 80045 ("**Licensee**").

**BACKGROUND**

WHEREAS, Licensee and The Regents entered into a certain Exclusive License Agreement, dated May 18, 2018 (UC 2018-04-0667) (said agreement hereafter referred to as the "Original Agreement"), whereby The Regents granted to Licensee certain rights to patent rights covering FAAH inhibitors;

WHEREAS, Licensee and The Regents now desire to amend and restate the Original Agreement, which related to globally acting FAAH inhibitors and peripherally acting FAAH inhibitors by entering into two separate amended and restated exclusive license agreements, one relating to globally acting FAAH inhibitors (the "Global FAAH License") and one relating to the peripherally acting FAAH inhibitors (this Agreement) and collectively replace the Original Agreement in its entirety;

WHEREAS, certain inventions, generally characterized as

● **"Peripheral FAAH Inhibitors" (UC Case 2008-522);** 

● **"Meta Substituted Peripheral FAAH Inhibitors" (UC Case 2012-075); and** 

● **"New Polymorph Form of URB937 with Improved Stability" (UC 2018-516** 

(collectively "**Invention(s)**"), were made in the course of research at UCI, the University of Parma ("**Parma**"), the University of Urbino ("**Urbino**"), the Italian Institute of Technology ("**IIT**"), the contract research organization Pharmaron ("Pharmaron"), and Exxel Pharma, Inc., and are claimed in Patent Rights as defined below;

WHEREAS, the development of the Invention was sponsored in part by the Government of the United States of America and, as a consequence, this license is subject to overriding obligations to the United States Federal Government under 35 U.S.C. §§ 200-212;

WHEREAS, the inventors of the Patent Rights have assigned their title and interest in and to the Inventions to either UCI, Parma, Urbino, or the IIT.;

WHEREAS, The Regents, Parma, Urbino, and the IIT have entered into Inter-Institutional Agreements (UC Control Nos. 2013-18-0124, 2013-18-0125, and 2013-18-0563) ("**IIA**") covering Patent Rights and granting The Regents the exclusive right to license Patent Rights;

WHEREAS, Licensee is a "small entity" as defined in 37 CFR §1.27 and a "small business concern" as defined in 15 USC §632; and

WHEREAS, The Regents wishes that Patent Rights be developed and utilized to the fullest extent so that the benefits can be enjoyed by the general public.

- - oo 0 oo - -

The parties agree as follows:

1. DEFINITIONS

As used in this Agreement, the following terms, whether used in singular or plural, shall have the following meanings set forth below:

1.1 "**Affiliate**" means any business entity in
which Licensee owns or controls, directly or indirectly, at least fifty percent (50%) of the outstanding stock or other voting rights
entitled to elect directors. In any country where local law does not permit foreign equity participation of at least fifty percent (50%),
then "**Affiliate**" means any business entity in which Licensee owns or controls, directly or indirectly, the maximum percentage
of outstanding stock or voting rights that is permitted by local law.

1.2 "**Exchange**" an established stock exchange
recognized by the applicable securities regulatory authorities in either of Canada or the United States;

1.3 "**Field of Use**" means all fields excluding
research reagent sales. All other uses are expressly excluded from this Agreement.

1.4 "**Going Public Transaction**" means (i) a listing
of the share capital of the Licensee on any Exchange; (ii) the acquisition of the Licensee
by an existing company listed on any Exchange, such that the resulting effect is that the holders of the share capital of the Licensee
receive shares in the capital of the resulting public company; or (iii) any other type of transaction whatsoever which results in the
current holders of the share capital of the Licensee receiving shares of a company listed on the Exchange in exchange for their existing
share capital of the Licensee;

1.5 "**Licensed Method**" means any process, service,
or method that is covered by a Valid Claim within Patent Rights, the use of which would constitute (absent this Agreement) an infringement,
an inducement to infringe, or contributory infringement of any Valid Claim within Patent Rights.

1.6 "**Licensed Product**" means any composition, service, or product covered by a Valid Claim in Patent Rights, or produced
by using a Licensed Method, or the manufacture, use, importation, sale, or offer for sale of which would constitute (absent this Agreement)
an infringement, an inducement to infringe, or contributory infringement of any Valid Claim within Patent Rights.

1.7 "**Net Sale(s)**" means all gross amounts invoiced or otherwise charged by Licensee or Sublicensees from the sale of
Licensed Products. Net Sales exclude the following items (but only to the extent they (i) pertain to the making, using, importing,
or selling of Licensed Products, (ii) are included in gross revenue, and (iii) are separately billed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) cash, trade or quantity discounts actually granted to customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) import, export, excise and sales taxes, custom duties, and value added taxes ()"**TAX**") to the extent such TAX is incurred
and not reimbursed, refunded, or credited under a tax authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) freight, transport packing, and insurance charges associated with transportation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) allowances or credit to customers for returns or rejections.

Transfers to a Sublicensee of a Licensed Product for end use by Sublicensee shall be treated as a sale by the Licensee and the Net Sale of such transfer will be calculated based on the list price of such Licensed Product normally charged by the Licensee in arm's-length transactions.

1.8 "**Patent Action**" means the preparation, filing,
prosecution and maintenance of patent applications and patents included in Patent Rights. Prosecution includes, but is not limited to,
reexaminations, inventorship determination, interferences, oppositions, and any other ex parte or inter partes matters originating in
a patent office.

1.9 "**Patent Costs**" means all out-of-pocket costs
incurred by The Regents for Patent Actions.

1.10 "**Patent Rights**" means The Regents'
interest in the patent applications and patents listed in Appendix A. Patent Rights shall further include the corresponding foreign patent
applications thereof, and any divisional, continuation, continuations-in-part (but only to the extent the claims thereof are entirely
supported in the specification and entitled to the priority date of the parent application), or reexamination application, and each patent
that issues or reissues from any of these patent applications.

1.11 "**Sublicense**" has the meaning given in Paragraph
3.1. 1.12 "**Sublicensee**" means any person or entity
(including any Affiliate) that has entered into a Sublicense with Licensee.

1.13 "**Sublicensing Income**" means income received
by Licensee in consideration for a Sublicense or other agreement providing the right to negotiate or obtain a Sublicense. Sublicensing
Income includes income received from Sublicensees in the form of license issue fees, profit sharing, milestone payments, and the like
but specifically excludes royalties on the sale or distribution of Licensed Products or the practice of Licensed Methods. Not included
in the definition of Sublicensing Income is income received by Licensee from Sublicensee as payment or reimbursement of costs for future
research at fair market value applied to the licensed Invention and conducted by or for Licensee, including costs, materials, equipment,
or clinical testing.

1.14 "**Valid Claim**" means a claim of a patent
or patent application that (i) has not expired; (ii) has not been disclaimed; (iii) has not been cancelled or superseded, or if cancelled
or superseded, has been reinstated; and (iv) has not been revoked, held invalid, or otherwise declared unenforceable or not allowable
by a tribunal or patent authority of competent jurisdiction over such claim from which no further appeal or refiling has or may be taken.

**2.** **GRANT** 

2.1 Subject to the limitations and other terms and conditions set forth in this Agreement, The Regents grants to the Licensee an exclusive
license (the "**License**") under Patent Rights in the Field of Use to make, have made, use, sell, offer for sale and import
Licensed Products and to practice Licensed Methods, in jurisdictions where Patent Rights exist to the extent permitted by law. Licensee
will not make, use, have made, sell, offer for sale, or import Licensed Products or practice Licensed Methods outside the Field of Use.
Affiliates have no rights hereunder unless granted a Sublicense.

2.2 The License is subject to overriding obligations to the United States Federal Government under 35 U.S.C. §§
200-212 and all applicable governmental implementing regulations (including a non- exclusive, non-transferable, irrevocable, paid up license
to practice or have practiced the Invention for or on behalf of the U.S. Government throughout the world). Among other things, these provisions
provide the United States Government with nonexclusive rights to Patent Rights and impose the obligation that Licensed Product sold in
the United States be "manufactured substantially in the United States". Licensee will ensure all obligations of these provisions
are met.

2.3 The Regents retain the right, on behalf of itself and all other non-profit institutions, to practice Patent Rights and associated
technology for educational and research purposes, clinical research, and research sponsored by commercial entities. The Regents and any
such other institution have the right to publically disclose any information resulting from such activities.

2.4 This Agreement will terminate immediately if Licensee files a claim which includes, in any way, the assertion that any portion of
Patent Rights is invalid or unenforceable where the filing is by Licensee, a third party on behalf of Licensee, or a third party at the
written urging of, or with the assistance of the Licensee.

**3.** **SUBLICENSES** 

3.1 The Regents also grants to the Licensee the right to sublicense the rights granted to the Licensee hereunder ()"**Sublicense(s)** "),
as long as the Licensee has current exclusive rights thereto under this Agreement. All Sublicenses will (i) be issued in writing, (ii)
be subject to this Agreement, (iii) not provide anything of value in lieu of cash as consideration for such Sublicense without the express
written consent of The Regents, (iv) include an express prohibition against issuing further Sublicenses, and (v) include all of the rights
of The Regents and require the performance of all obligations due to The Regents (and, if applicable, the United States Government and
other sponsors) including the rights and obligations detailed in Articles 8, 14, 15, 16, and 20 (royalty reports, use of names, limited
warranties, limitation of liability, and indemnification). For the purposes of this Agreement, the operations of all Sublicensees shall
be deemed to be the operations of the Licensee, for which the Licensee shall be responsible. Affiliates and joint ventures do not have
rights to Patent Rights under this Agreement and must be issued a valid Sublicense pursuant to Article 3 (Sublicenses) in order to exercise
any of the Patent Rights.

3.2 Licensee
 must pay to The Regents %)
 of all Sublicensing Income. Licensee must pay such Sublicensing Income to The Regents on
 a quarterly basis, sixty (60) days following the end of a calendar quarter for Sublicensing
 Income received during such quarter.

3.3 On Net Sales of Licensed Products sold or disposed by a Sublicensee, Licensee must pay to The Regents an earned royalty in accordance
with Article 6 (ROYALTIES) as if these were Licensee's Net Sales. Any royalties received by Licensee in excess of royalties due
to The Regents under this Paragraph 3.3 belong to Licensee.

3.4 Licensee will notify The Regents of each Sublicense issued and will provide The Regents with a complete copy of each Sublicense and
any subsequent amendments thereto within thirty (30) days of issuance of such Sublicense or amendment.

3.5 Licensee will be responsible for the collection of all payments due under Sublicenses to The Regents and provide The Regents with
copies of Sublicensee's royalty and progress reports, such reports sufficient to establish all amounts due to The Regents under
this Agreement.

3.6 Upon termination of this Agreement for any reason, at the option of The Regents, all outstanding Sublicenses not in default will be
assigned by Licensee to The Regents. If The Regents accepts such assignment of any Sublicense, the obligations of The Regents under such
Sublicense will not be greater than the obligations of The Regents under this Agreement, and the rights of The Regents under such Sublicense
will not be less than the rights of The Regents under this Agreement, including all financial consideration and other rights of The Regents.
Moreover, The Regents will have the sole right to modify each such assigned Sublicense to include all of the rights of The Regents (and,
if applicable, the United States Government and other sponsors) that are contained in this Agreement. Prior to any such assignment, such
Sublicensee shall furnish to The Regents the completed licensee contact information form attached hereto as "**APPENDIX B** ".

4. SUBLICENSING REQUESTS

4.1 If at any time following the three year anniversary of the Effective Date, a third party ()"**Interested Party**") communicates
to The Regents an expression of interest in obtaining a license under the Patent Rights to develop and commercialize Licensed Products
covered by the Field of Use but for which such Licensed Product have not been developed or are not currently under development by Licensee
and/or Sublicensee of Licensee ()"**New Licensed Product** "), then The Regents shall give written notice to Licensee of
the Interested Party, subject to any confidentiality obligations. Licensee shall have sixty (60) days from the receipt of such notice
to give The Regents written notice stating whether Licensee elects to develop the New Licensed Product or begin negotiations for a Sublicense
to the Interested Party ()"**Election Notice** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If the Election Notice indicates Licensee will negotiate with the Interested Party regarding the grant of a Sublicense for the development
of New Licensed Products, Licensee shall promptly begin such negotiation in good faith on commercially reasonable terms mutually agreeable
to Licensee and the Interested Party. If, despite good faith negotiations, Licensee and the Interested Party are unable to reach mutual
agreement within ninety (90) days of The Regents' receipt of the Election Notice, Licensee will provide to The Regents a report
specifying the license terms last proposed by the Interested Party and a written justification for Licensee's refusal to grant the
proposed sublicense. If The Regents, at is sole discretion, determines that the terms of the sublicense proposed by the Interested Party
are reasonable under the totality of the circumstances, taking into account Licensee's and existing Sublicensees' Licensed
Products in development, then The Regents shall have the right to grant to the Interested Party a license
under the Patent Rights to make, have made, use, sell, offer for sale and import products for use in the Field of Use at substantially
the same terms last proposed to Licensee by the Interested Party, provided the royalty rates are at least equal to those paid by Licensee
under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If the Election Notice indicates Licensee plans to develop New Licensed Products, then Licensee will provide along with the Election
Notice, a detailed development schedule, including specific diligence requirements and development milestones for the development of New
Licensed Products, such diligence requirements and milestones to be negotiated and agreed to by the parties and incorporated into this
Agreement in an amendment within ninety (90) days of The Regents' receipt of the Election Notice. If The Regents and Licensee have
not concluded such amendment within said ninety (90) days, The Regents may grant the Interested Party a license under the Patent Rights
to make, have made, use, sell, offer for sale and import products for use in the Field of Use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) If The Regents does not receive an Election Notice from Licensee in accordance with Paragraph 4.1, then this will be deemed by The
Regents as an election by the Licensee not to pursue the New Licensed Product itself and a refusal to grant a Sublicense to the Interested
Party, and therefore The Regents will have the right to grant the Interested Party a license under the Patent Rights to make, have made,
use, sell, offer for sale and import products for use in the Field of Use.

5. FEES & EQUITY

5.1 The license issue fee has been satisfied and paid in full under the Original License.

5.2 Licensee must pay to the Regents an annual license maintenance fee of on May 18, 2022 and each anniversary thereof until the first commercial sale.

The maintenance fee will not be due and payable on any anniversary if on that date Licensee is commercially selling a Licensed Product and paying an Earned Royalty to The Regents. The license maintenance fees are non-refundable and are not an advance against royalties.

5.3 For each Licensed Product reaching the milestones indicated below, Licensee must make the following milestone payments to The Regents
within Thirty (30) days of reaching such milestone. If Licensee is allowed to skip any of the milestones listed in Paragraphs 5.3(A)-(G)
below, the milestone payment for the skipped milestone will be due upon reaching the next milestone (for example, if a Licensed Product
is allowed to be sold without completing a Phase III clinical trial, the milestone payment due under paragraph (D) will be added to milestone
(E).) Milestone payments are due from Licensee irrespective of whether the milestone listed below was reached by the Licensee itself,
a third party acting on Licensee's behalf, or by a Sublicense or Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) due upon IND approval by the US FDA or CTA approval by Health Canada for a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) due upon first human dosing with a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) due upon successful completion of Phase II clinical trial with a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) due upon successful completion of Phase III clinical trial with a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) due upon NDA approval for a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) due upon first commercial sale of a Licensed Product in the US;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G) due upon first commercial sale of a Licensed Product in Europe.

5.4 **Participation Rights.** Following the Effective Date, and until such time as a Going Public Transaction is completed, if the
Licensee proposes to sell any equity securities or securities that are convertible into equity securities of the Company, then The Regents
and/or its Assignee (as defined below) will have the right to purchase up to Ten Percent (10%) of the securities issued in each offering
on the same terms and conditions as are offered to the other purchasers in each such financing. Licensee shall provide ten (10) days advanced
written notice to The Regents of each such financing, including reasonable detail regarding the terms and purchasers in the financing.
The term "Assignee" means (a) any entity to which The Regents' participation rights under this section have been assigned
either by The Regents or another entity, or (b) any entity that is controlled by The Regents. In no event will the participation right
allowed for any such financing exceed ten percent in combination with any participation right allowed under the Global FAAH License.

5.5 As partial consideration for all the rights and licenses granted to Licensee, the Licensee issued to The Regents six hundred and sixty
two thousand, five hundred (662,500) fully paid and non-assessable shares of common stock of Licensee under the Original License and the
stock issuance agreement signed by the parties,

5.6 Licensee will also issue additional fully paid and non-assessable shares of common stock of Licensee
 ()"**Antidilution Shares**") to The Regents until such time as bona fide financing equal to or exceeding has been raised by Licensee in net proceeds from the sale of securities or by the conversion of instruments convertible into equity,
 so that, after issuance of the Antidilution Shares, The Regents still owns a total of **Two and One Half Percent (2.5%)** of the
 outstanding and issued common stock of Licensee on a fully diluted and as converted basis taking into consideration shares also
 issued under the Global FAAH License. In all such anti-dilution adjustments, any increase in the number of shares of stock reserved
 for any option plan for employees, consultants, directors and so forth, authorized in connection with a financing shall be deemed to
 have been issued prior to the sale of securities. The Regents shall be issued Antidilution Shares within sixty (60) days after any
 issuance of stock or stock equivalent by Licensee. This Paragraph 5.6 will survive the termination or expiration of this
 Agreement.

5.7 The Regents acknowledges that any share capital of the Licensee received in connection with this Agreement will be subject the Stock
Issuance Agreement which may include restrictions on resale. The Regents further acknowledge that a Going Public Transaction may involve
the exchange of share capital of the Licensee for an existing public company, and that The Regents may be required to tender any existing
share capital of the Licensee in connection with such a transaction. In the case of a Going Public Transaction, the parties agree that
any Antidilution Shares owing to The Regents pursuant to Paragraph 5.6 shall be read to mean shares in the common stock of the resulting
public company, and the financing threshold set forth in Paragraph 5.6 shall include any financing conducted in connection with a Going
Public Transaction or by the resulting public company.

**6.** **ROYALTIES** 

6.1 Licensee must pay to The Regents for sales by Licensee and Sublicensees an earned royalty at the
 rate of %) of Net Sales ()"**Earned Royalty** "). Earned Royalties will accrue in each country for the duration of Patent
 Rights in that country.

6.2 The Licensee will pay to The Regents all Earned Royalties owed to The Regents on a quarterly basis on or before February 28 (for the
calendar quarter ending December 31 of the prior year), May 31 (for the calendar quarter ending March 31), August 31 (for the calendar
quarter ending June 30) and November 30 (for the calendar quarter ending September 30) of each calendar year.

6.3 Licensee must pay to The Regents a minimum annual royalty beginning in the calendar year after the first commercial sale of a Licensed
Product as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) due
 the first calendar year following the first commercial sale of a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) due the second calendar year following the first commercial sale of a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) due the third calendar year following the first commercial sale of a Licensed Product;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) due
 the fourth and all subsequent calendar years following the first commercial sale of a Licensed Product.

The minimum annual royalty will be paid to The Regents by February 28 of each year following the calendar year in which the first commercial sale of a Licensed Product occurs and will be credited against the Earned Royalty due for the calendar year in which the minimum payment was made.

6.4 All consideration due The Regents will be paid in United States Dollars by check payable to "The Regents of the University of
California" or by wire transfer to an account designated by The Regents. With respect to sales of Licensed Products in a currency
other than United States Dollars, the Licensee will calculate the Earned Royalties and other consideration due The Regents by using the
appropriate foreign exchange rate for the currency quoted by *The Wall Street Journal* on the final business day of the quarter in
which such sales were made.

6.5 Sublicensing Income and Earned Royalties on Net Sales and other consideration accrued in any country outside the United States may
not be reduced by any taxes, fees or other charges imposed by the government of such country, except those taxes, fees and charges allowed
under the definition of Net Sales.

6.6 If any patent or claim thereof included within the Patent Rights is held invalid in a final decision by a court of competent jurisdiction
from which no appeal has been or may be taken, then all obligations to pay Earned Royalties based on that patent or claim or any claim
patentably indistinct therefrom will cease as of the date of final decision. The Licensee will not, however, be relieved from paying any
Earned Royalties that accrued before such final decision or that is based on another patent or pending claim not involved in such decision.

**7.** **DUE DILIGENCE** 

7.1 The Licensee, upon execution of this Agreement, will diligently proceed with the development, manufacture and sale of Licensed Products
and Licensed Methods and will earnestly and diligently market the same after execution of this Agreement and in quantities sufficient
to meet the market demands therefor.

7.2 The Licensee will obtain all necessruy governmental approvals in each country where Licensed
 Products and Licensed Methods ru e manufactured, used, sold, offered for sale or impo1ted.

7.3 In addition to its obligations under Paragraph 7.1, Licensee specifically commits to achieving the following objectives in its due diligence activities under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Spend
 a minimum of on
 the development of a Licensed Product within three years of the Effective Date of the License
 Agreement, such development may be in the form of sponsored research at UCI;

(B) Submit
 IND or CTA package for US FDA or Health Canada approval for a Licensed Product no later than ;

(C) Begin a Phase I clinical trial and complete a first human dosing
 with a Licensed Product no later than ;

(D) Complete
 a Phase II clinical trial with a licensed product no later than ;

(E) Complete
 pivotal phase III clinical trial with a Licensed Product no later than ;

(F) File
 NDA for a Licensed Product no later than ;
 and

(G) Complete
 a first commercial sale of a Licensed Product, no later than

7.4 If the Licensee is unable to perfo1m or achieve any of the provisions in Paragraphs 7.1-7.3 above,
then The Regents has the1ight and option to either te1minate this Agreement or reduce the exclusive license granted to the Licensee to
a nonexclusive license. This 1ight, if exercised by The Regents, supersedes the1ights granted in Article 2 (GRANT).

7.5 If this Agreement is te1minated for any reason, then Licensee shall grant The Regents (and/or The
 Regents' designee) a right of reference with respect to any investigation perfo1med by or on behalf of Licensee using a
 Licensed Product or Licensed Method - i.e., the autho1ity to rely upon and othe1wise use said investigation for the purpose of
 obtaining FDA approval of an application for mru keting clearance and/or approval, including without limitation, the ability to make
 available the underlying raw data from the investigation for FDA audit, if necessa1y. Fmthe1more, if Licensee filed an IND for a
 Licensed Product then, within six (6) months of such te1mination, Licensee shall provide to The Regents a repo1t desciibing any
 experimental data pe1formed by Licensee or on behalf of Licensee relevant for development of Licensed Products including the
 Investigator Brochure from any regulato1y filings as well as clinical data rep01ts, raw data, and/or info1mation about contr act
 research organizations **("CRO")** that may have executed the work, including
 pe1mission for The Regents to request repo1ts from such CRO for Licensed Product development sponsored by Licensee.

**8.** **PROGRESS AND ROYALTY REPORTS** 

8.1 Beginning Januruy 31, 2022, and semi-annually thereafter, the Licensee will submit to The Regents
a written progress report covering the Licensee's and Sublicensee's activities related to the development and testing of all Licensed
Products and Licensed Methods. The report will include information sufficient to enable The Regents to ascertain progress by Licensee
towards meeting the diligence requirements set forth in Article 7 (DUE DILIGENCE) and in obtaining any governmental approvals necessary
for marketing and selling Licensed Products and Licensed Methods. Progress reports are required for each Licensed Product and Licensed
Method until the first sale of such Licensed Product or Licensed Method occurs in the United States.

8.2 Each progress report must include all of the following for each semiannual period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) summary of work completed, including itemized objectives required by Paragraph 7.3;

(B) key scientific discoveries;

(C) summary of work in progress, including status of incomplete itemized objectives required by Paragraph 7.3;

(D) current schedule of anticipated events and milestones;

(E) market plans for introduction of Licensed Products and Licensed Methods;

(F) listing of significant corporate transactions involving the Licensed Product, including an updated listing of any and all Sublicenses;
and

(G) summary of resources (dollar value) spent in the reporting period.

8.3 Beginning with the first sale of a Licensed Product or Licensed Method by Licensee or Sublicensee, the Licensee will make quarterly
royalty reports to The Regents on or before each February 28 (for the quarter ending December 31), May 31 (for the quarter ending March
31), August 31 (for the quarter ending June 30) and November 30 (for the quarter ending September 30) of each year. Licensee will state
in its royalty report if it had no sales of any Licensed Product in the applicable quarter. Each royalty report will cover Licensee's
and all Sublicensee's most recently completed calendar quarter and shall include the completed Royalty Statement attached hereto
as "**APPENDIX C** ", showing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) gross invoice prices and Net Sales of Licensed Products or Licensed Methods sold (itemizing the applicable gross proceeds and any
deductions therefrom);

(B) the quantity of each type of Licensed Product and/or Licensed Method sold;

(C) the country in which each Licensed Product and Licensed Method was manufactured or sold;

(D) the Earned Royalties, in United States dollars, payable to The Regents;

(E) the Earned Royalties attributable to each Sublicense;

(F) the method and currency rates (if any) used to calculate the Earned Royalty, specifying all deductions taken and the dollar amount
of each such deduction; and

(G) date of the first sale of a Licensed Product or Licensed Method (only needed in the first royalty report following the first sale).

If more than one type of Licensed Product or Licensed Method is sold, then the information of subparagraphs (A)-(G) shall be provided for each type of Licensed Product or Licensed Method.

8.4 The Regents shall have the right to terminate this Agreement in accordance with Article 11 (TERMINATION BY THE REGENTS) if Licensee
does not provide progress reports and royalty reports in accordance with this Article 8.

8.5 Licensee must notify The Regents if Licensee or any of its Sublicensees ceases to be a small entity (as defined by the United States
Patent and Trademark Office).

9. BOOKS AND RECORDS

9.1 The Licensee will keep accurate books and records of (i) the development, manufacture, use, import, and sale of all Licensed Products
and (ii) all Sublicenses, collaboration agreements and joint venture agreements entered into by Licensee that involve Patent Rights. Such
books and records will be preserved for at least five (5) years after the date of the payment to which they pertain and will be open to
examination by representatives or agents of The Regents during regular office hours to determine their accuracy and assess the Licensee's
compliance with the terms of this Agreement.

9.2 The Regents shall pay the fees and expenses of such examination. If, however, an error in royalties or fees of more than five percent
(5%) of the total royalties and fees due for any year is discovered in any examination, then the Licensee shall bear the fees and expenses
of such examination and shall remit such underpayment to The Regents within thirty (30) days of the examination results.

10. LIFE OF THE AGREEMENT

10.1 Unless otherwise terminated by operation of law or by acts of the parties in accordance with the terms of this Agreement, this Agreement
will remain in effect from the Effective Date until the expiration or abandonment of the last of the Patent Rights licensed hereunder,
whichever is later.

10.2 This Agreement will automatically terminate without the obligation to provide 60 days' notice as set forth in Article 11 (TERMINATION
BY THE REGENTS) upon the filing of a petition for relief under the United States Bankruptcy Code by or against the Licensee as a debtor
or alleged debtor.

10.3 Any termination or expiration of this Agreement will not affect the rights and obligations set forth in the following Articles:

---

| | |
|:---|:---|
| Article 1 | Definitions |
| Article 9 | Books and Records |
| Article 13 | Disposition of Licensed Products on Hand Upon Termination |
| Article 14 | Use of Names and Trademarks |
| Article 15 | Limited Warranty |
| Article 16 | Limitation of Liability |
| Article 20 | Indemnification |
| Article 21 | Notices |
| Article 26 | Governing Laws; Venue; Attorneys Fees |
| Article 29 | Confidentiality |

---

10.4 The termination or expiration of this Agreement will not relieve the Licensee of its obligation to pay any fees, royalties or other
payments owed to The Regents at the time of such termination or expiration and will not impair any accrued right of The Regents, including
the right to receive Earned Royalties in accordance with Articles 6 (ROYALTIES) and 13 (DISPOSITION OF LICENSED PRODUCTS UPON TERMINATION).

11. TERMINATION BY THE REGENTS

11.1 If the Licensee fails to perform or violates any term of this Agreement, then The Regents may give written notice of such default
(" **Notice of Default**") to the Licensee. If the Licensee fails to repair such default within sixty (60) days after the
effective date of such Notice of Default, then The Regents will have the right to immediately terminate this Agreement, including all
Sublicenses, by providing a written notice of termination ()"**Notice of Termination**") to the Licensee. Notwithstanding
the above, if Licensee is more than ninety (90) days in arrears for Patent Costs of more than twenty-five thousand dollars ($25,000),
The Regents will have the right to immediately terminate this Agreement by providing a Notice of Termination without having to provide
a Notice of Default.

12. TERMINATION BY LICENSEE

12.1 The Licensee has the right at any time to terminate this Agreement in whole or with respect to any portion of the Patent Rights by
providing written notice to The Regents at least ninety (90) days in advance of the effective date of termination selected by Licensee.

13. DISPOSITION OF LICENSED PRODUCT ON HAND UPON TERMINATION

13.1 Upon termination of this Agreement by Licensee, Licensee may continue to sell any previously made Licensed Products during the one
hundred eighty (180) days following such termination. Licensee must submit royalty reports on the sale of Licensed Products allowed under
this Paragraph 13.1 in accordance with Article 8 (PROGRESS AND ROYALTY REPORTS) and must pay Earned Royalties for sales of Licensed Products
made during the term of this Agreement. Licensee will not, and will ensure that Sublicensees do not, otherwise make, sell, offer for sale,
or import Licensed Products after termination of this Agreement by Licensee or The Regents.

14. USE OF NAMES AND TRADEMARKS

14.1 Licensee will not use any name, trade name, trademark or other designation of The Regents, IIT, Parma, or Urbino or their employees
(including contraction, abbreviation or simulation of any of the foregoing) in advertising, publicity or other promotional activity. Unless
required by law, or by the rules and policies of the Exchange in connection with a Going Public Transaction, Licensee is expressly prohibited
from using the name "The Regents of the University of California" or the name of any campus of the University of California
in advertising, publicity, or other promotional activity, without written permission of The Regents. Unless required by law, or by the
rules and policies of the Exchange in connection with a Going Public Transaction, Licensee is expressly prohibited from using the name
"Fondazione Istituto Italiano di Tecnologia", "University of Urbino, Italy", and/or "University of Parma,
Italy" in advertising, publicity, or other promotional activity without written permission of the Invention Transfer Group at UCI.

15. LIMITED WARRANTY

15.1 The Regents warrants to the Licensee that it has the lawful right to grant this license.

15.2 This license and the associated Invention, Patent Rights, Licensed Products, and Licensed Methods are provided WITHOUT WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER WARRANTY OF ANY KIND, EXPRESS OR IMPLIED. THE REGENTS, IIT, PARMA, AND
URBINO MAKE NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY THAT THE INVENTION, PATENT RIGHTS, LICENSED PRODUCTS, OR LICENSED METHODS
WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER RIGHTS.

15.3 This Agreement does not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) express or imply a warranty or representation as to the validity, enforceability, or scope of any Patent Rights; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) express or imply a warranty or representation that anything made, used, sold, offered for sale or imported or otherwise exploited
under any license granted in this Agreement is or will be free from infringement of patents, copyrights, or other rights of third parties;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) obligate The Regents, IIT, Urbino, and/or Parma to bring suits against third parties for patent infringement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) confer by implication, estoppel or otherwise any license or rights under any patents or other rights of The Regents, IIT, Urbino,
and/or Parma other than Patent Rights, regardless of whether such patents are dominant or subordinate to Patent Rights; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) obligate The Regents, IIT, Urbino, and/or Parma to furnish any know-how, technology or information not provided in Patent Rights.

&nbsp;&nbsp;&nbsp;&nbsp;16. LIMITATION OF LIABILITY

16.1 THE REGENTS, IIT, URBINO, AND/OR PARMA WILL NOT BE LIABLE FOR ANY LOST PROFITS, COSTS OF PROCURING SUBSTITUTE GOODS OR SERVICES, LOST
BUSINESS, ENHANCED DAMAGES FOR INTELLECTUAL PROPERTY INFRINGEMENT, OR FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, OR OTHER
SPECIAL DAMAGES SUFFERED BY LICENSEE, SUBLICENSEES, JOINT VENTURES, OR AFFILIATES ARISING OUT OF OR RELATED TO THIS AGREEMENT FOR ALL
CAUSES OF ACTION OF ANY KIND (INCLUDING TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY AND BREACH OF WARRANTY) EVEN IF THE REGENTS, IIT,
URBINO, AND/OR PARMA HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE REGENTS, IIT, URBINO, AND/OR PARMA WILL NOT BE LIABLE FOR
ANY DIRECT DAMAGES SUFFERED BY LICENSEE, SUBLICENSEES, JOINT VENTURES, OR AFFILIATES ARISING OUT OF OR RELATED TO PATENT RIGHTS TO THE
EXTENT ASSIGNED, OR OTHERWISE LICENSED, BY INVENTORS TO THIRD PARTIES.

17. PATENT PROSECUTION AND MAINTENANCE

17.1 **Patent Prosecution.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) As long as the Licensee has paid Patent Costs as provided for in this Article 17 (Patent Prosecution and Maintenance), The Regents
will diligently prosecute and maintain the United States and foreign patents comprising the Patent Rights. Patent Rights will be held
in the name of The Regents, obtained with counsel of The Regents' choice, and The Regents will be the client of record for such
counsel. The Regents will consider any comments or suggestions by Licensee with respect to Patent Actions, however, The Regents'
patent counsel will take instructions on all Patent Actions from The Regents. The Regents is entitled to take action to preserve rights
and minimize costs whether or not Licensee has provided any comments, and will use reasonable efforts not to allow any Patent Rights to
lapse or become abandoned without Licensee's written authorization under this Article 17, except for the filing of continuations,
divisionals, or the like that substitute for the lapsed applications. The Regents shall have no requirement to file, prosecute or maintain
Patent Rights if Licensee is not current with its Patent Cost obligations as set forth in Article 17.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Regents will provide Licensee with copies of each patent application, office action, response to office action, or other patent
prosecution correspondence with patent offices regarding Patent Rights as requested by Licensee. The Licensee agrees to keep this documentation
confidential as provided for in Article 29 (CONFIDENTIALITY).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The Regents shall use reasonable efforts to amend any patent application to include claims reasonably requested by the Licensee to
protect the products and services contemplated to be sold, or the Licensed Method to be practiced, under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The Licensee may request Patent Actions, including national phase filings, via a written request to The Regents not less than ninety
(90) days prior to the deadline for such filing or action to be taken in connection therewith ()"**Patent Prosecution Request** ").
If the Patent Action is a national phase deadline, such request concerning a Patent Action must identify the countries desired. The absence
of a Patent Prosecution Request from the Licensee to The Regents will (i) be considered an election not
to obtain or maintain patent rights associated with the specific phase of patent prosecution in such territory, (ii) give The Regents
the right to file patent applications at its own expense in any territory which Licensee has not identified pursuant to this Paragraph
17.1(D), and (iii) result in such patent application(s) and patent(s) being excluded from Patent Rights and therefore not subject to this
Agreement, and Licensee will have no further rights or license to them.

17.2 **Past Patent Costs.** Licensee will bear all Patent Costs incurred prior to the term of this Agreement. Licensee must send payment
for such costs to The Regents within thirty (30) days of Licensee's receipt of an invoice for those costs.

17.3 **Ongoing Patent Costs.** Licensee will bear all Patent Costs during the term of this Agreement and, at the Regents' discretion,
Licensee shall pay in advance to The Regents the Patent Cost as estimated by The Regents' patent counsel ()"**Advanced Payment** ")
before The Regents authorizes its patent counsel to proceed with the Patent Action associated with such estimate. The absence of this
Advanced Payment will be considered an election not to secure the patent rights associated with the specific phase of patent prosecution,
and such patent application(s) and patent(s) will not be subject to this Agreement, and Licensee will have no further rights or license
to them. Any Patent Costs incurred by The Regents and not paid by Licensee in advance will be rebilled to the Licensee and are due within
thirty (30) days of rebilling by The Regents.

17.4 **Termination of Patent Prosecution**. The Licensee will be obligated to pay any Patent Costs incurred during the three (3)-month
period after receipt by either party of a Notice of Termination, even if the invoices for such Patent Costs are received by the Licensee
after the end of the three (3)- month period following receipt of a Notice of Termination. The Licensee may terminate its obligation to
pay Patent Costs with respect to any given patent application or patent under Patent Rights in any or all designated countries upon three
(3)-months' written notice to The Regents. The Regents may continue prosecution and/or maintenance of such application(s) or patent(s)
at its sole discretion and expense, provided, however, that the Licensee will have no further right or licenses thereunder. Non-payment
of Patent Costs may be deemed by The Regents as an election by the Licensee not to maintain such application(s) or patent(s).

17.5 **Patent Extensions.** The Licensee will apply for an extension of the term of any patent included within the Patent Rights if
appropriate under the Drug Price Competition and Patent Term Restoration Act of 1984 and/or European, Japanese and other foreign counterparts
of this Law. The Licensee shall prepare all documents and The Regents agrees to execute the documents and to take additional action as
the Licensee reasonably requests in connection therewith. Licensee shall be liable for all costs relating to such application.

18. PATENT MARKING

18.1 Licensee must mark all Licensed Products made, used or sold under the terms of this Agreement, or their containers, in accordance
with the applicable patent marking laws. Licensee shall be responsible for all monetary and legal liabilities arising from or caused by
(i) failure to abide by applicable patent marking laws and (ii) any type of incorrect or improper patent marking.

19. PATENT INFRINGEMENT

19.1 In the event that The Regents (to the extent of the actual knowledge of the licensing professional responsible for the administration
of this Agreement) or the Licensee learns of infringement of potential commercial significance of any patent licensed under this Agreement,
the knowledgeable party will provide the other (i) with written notice of such infringement and (ii) with any evidence of such infringement
available to it (the "**Infringement Notice** "). During the period in which, and in the jurisdiction where, the Licensee
has exclusive rights under this Agreement, neither The Regents nor the Licensee will notify a possible infringer of infringement or put
such infringer on notice of the existence of any Patent Rights without first obtaining consent of the other. If the Licensee puts such
infringer on notice of the existence of any Patent Rights with respect to such infringement without first obtaining the written consent
of The Regents and if a declaratory judgment action is filed by such infringer against The Regents, then Licensee's right to initiate
a suit against such infringer for infringement under Paragraph 19.2 below will terminate immediately without the obligation of The Regents
to provide notice to the Licensee. Both The Regents and the Licensee will use their diligent efforts to cooperate with each other to terminate
such infringement without litigation.

19.2 If infringing activity of potential commercial significance by the infringer has not been abated within ninety (90) days following
the date the Infringement Notice takes effect, then the Licensee may institute suit for patent infringement against the infringer. The
Regents may voluntarily join such suit, but may not otherwise commence suit against the infringer for the acts of infringement that are
the subject of the Licensee's suit or any judgment rendered in that suit. The Licensee may not join The Regents as a party in a suit initiated
by the Licensee without The Regents' prior written consent. If The Regents joins a suit initiated by the Licensee, then the Licensee will
pay any costs incurred by The Regents arising out of such suit, including but not limited to, any legal fees of counsel that The Regents
selects and retains to represent it in the suit.

19.3 If, within a hundred and twenty (120) days following the date the Infringement Notice takes effect, infringing activity of potential
commercial significance by the infringer has not been abated and if the Licensee has not brought suit against the infringer, then The
Regents may institute suit for patent infringement against the infringer. If The Regents institutes such suit, then the Licensee may not
join such suit without The Regents' consent and may not thereafter commence suit against the infringer for the acts of infringement that
are the subject of The Regents' suit or any judgment rendered in that suit.

19.4 Notwithstanding anything to the contrary in this Agreement, in the event that the infringement or potential infringement pertains
to an issued patent included within the Patent Rights and written notice is given under the Drug Price Competition and Patent Term Restoration
Act of 1984 (and/or foreign counterparts of this Law), then the party in receipt of such notice under the Act (in the case of The Regents
to the extent of the actual knowledge of the licensing officer responsible for the administration of this Agreement) shall provide the
Infringement Notice to the other party promptly. If the time period is such that the Licensee will lose the right to pursue legal remedy
for infringement by not notifying a third party or by not filing suit, the notification period and the time period to file suit will be
accelerated to within forty-five (45) days of the date of such notice under the Act to either party.

19.5 Any recovery or settlement received in connection with any suit will first be shared by The Regents and the Licensee equally to cover
any litigation costs each incurred and next shall be paid to The Regents or the Licensee to cover any litigation costs it incurred in
excess of the litigation costs of the other. In any suit initiated by the Licensee, any recovery in excess of litigation costs will be
shared between Licensee and The Regents as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) for any recovery other than amounts paid for willful infringement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Regents will receive of the recovery if The Regents was not a party in the litigation and did not incur any litigation costs;

(ii) The Regents will receive of the recovery if The Regents was a party in the litigation, but The Regents did not incur any litigation costs; and

(iii) The Regents will receive of
 the recovery if The Regents incurred any litigation costs in connection with the litigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) for any recovery for willful infringement, The Regents will receive of the recovery.

In any suit initiated by The Regents, any recovery in excess of litigation costs will belong to The Regents. The Regents and the Licensee agree to be bound by all determinations of patent infringement, validity and enforceability (but no other issue) resolved by any adjudicated judgment in a suit brought in compliance with this Article 19 (Patent Infringement).

19.6 Any agreement made by the Licensee for purposes of settling litigation or other dispute shall comply with the requirements of Article 3 (Sublicenses) of this Agreement.

19.7 Each party will cooperate with the other in litigation proceedings instituted hereunder but at the expense of the party who initiated
the suit (unless such suit is being jointly prosecuted by the parties).

19.8 Any litigation proceedings will be controlled by the party bringing the suit, except that The Regents may be represented by counsel
of its choice in any suit brought by the Licensee.

20. INDEMNIFICATION

20.1 Licensee will, and will require Sublicensees to, indemnify, hold harmless, and defend The Regents, IIT, Urbino, and Parma, and their
officers, employees, and agents; the sponsors of the research that led to the Invention; and the inventors of patents or patent applications
under Patent Rights and their employers; against any and all claims, suits, losses, damages, costs, fees, and expenses resulting from,
or arising out of, the exercise of this license or any Sublicense. This indemnification will include, but will not be limited to, any
product liability. If The Regents, IIT, Urbino, and/or Parma, at their sole discretion, believes that there will be a conflict of interest
or it will not otherwise be adequately represented by counsel chosen by the Licensee to defend The Regents, IIT, Urbino, and/or Parma
in accordance with this Paragraph 20.1, then The Regents, IIT, Urbino, and/or Parma may retain counsel of its choice to represent it,
and the Licensee will pay all expenses for such representation.

20.2 The Licensee, at its sole cost and expense, will insure its activities in connection with any work performed hereunder and will obtain,
keep in force, and maintain the following insurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Commercial Form General Liability Insurance (contractual liability included) with limits as follows:

---

| | |
|:---|:---|
| Each Occurrence | $5000000 |
| Products/Completed Operations Aggregate | $10000000 \* |
| Personal and Advertising Injury | $5000000 |
| General Aggregate (commercial form only) | $10000000 |

---

\* Within one month prior to the sale of Licensed Products

If the above insurance is written on a claims-made form, it shall continue for three (3) years following termination or expiration of this Agreement. The insurance shall have a retroactive date of placement prior to or coinciding with the Effective Date of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Worker's Compensation as legally required in the jurisdiction in which the Licensee is doing business.

20.3 The coverage and limits referred to in Paragraph 20.2 above will not in any way limit the liability of the Licensee under this Article
20 (INDEMNIFICATION). Upon the execution of this Agreement, the Licensee will furnish The Regents with certificates of insurance evidencing
compliance with all requirements. Such certificates will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Provide for thirty (30) days' advance written notice to The Regents of any modification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Indicate that The Regents has been endorsed as an additional insured under the coverage described above in Paragraph 20.2; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Include a provision that the coverage will be primary and will not participate with, nor will be excess over, any valid and collectable
insurance or program of self-insurance maintained by The Regents.

20.4 The Regents will promptly notify the Licensee in writing of any claim or suit brought against The Regents that The Regents intends
to invoke the provisions of this Article 20 (INDEMNIFICATION). The Licensee will keep The Regents informed of its defense of any claims
pursuant to this Article 20 (INDEMNIFICATION).

21. NOTICES

21.1 Any notice, progress report, royalty report or payment required to be given to either party under this Agreement will be sent to the
respective address given below and is effective: (a) on the date of delivery if delivered in person or (b) on the date of mailing if mailed
by first-class certified mail or by any global express carrier service. Either party may change its designated address by written notice.

In the case of Licensee:

Exxel Pharma Inc

12635 E Montview Blvd, Suite 134

Aurora, CO 80045

Email: soren.mogelsvang@exxelpharma.com

Phone: 720.261.1109

Attention: Soren Mogelsvang

In the case of The Regents, all general notice are mailed to:

University of California, Irvine

Research Translation Group

Attn: Director

5270 California Ave Suite 100

Irvine, CA 92697-7700

Ref: UC Case No. 2008-522, 2012-075

With a copy to:

The Regents of the University of California

Office of the President

Knowledge Transfer Office

Attn: Executive Director

1111 Franklin Street, 5<sup>th</sup> Floor

Oakland, CA 94607-5200

Ref: UC Case No. 2008-522, 2012-075

In the case of The Regents, all payments (except for Advanced Payments), royalty reports, and progress reports are mailed to:

University of California

Innovation Alliances and Services

1111 Franklin St, 5<sup>th</sup> Floor

Oakland, CA 94607

All Advanced Payments due under this Agreement shall be sent via wire transfer as follows:

*UC Bank:* Bank of America

100 West 33<sup>rd</sup> Street

New York, New York 10001

*ABA Routing Number:* 026009593 (within US only) <br> *Beneficiary Name:* Regents of the University of California <br> *Bank Account Name:* OTT Depository Account

*Bank Account Number:* 

*SWIFT Code:* BOFAUS3N

21.2 Licensee shall furnish to The Regents the completed licensee contact information form attached hereto as "**APPENDIX B** "
concurrent with execution of the Agreement, showing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The progress report contact (i.e. the contact responsible
for ensuring that progress reports are submitted to The Regents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The patent prosecution contact to whom patent prosecution correspondence should be sent to; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The financial contact (i.e. the contact responsible for ensuring that payments are made under this Agreement to The Regents).

22. ASSIGNABILITY

22.1 This Agreement is binding upon and inures to the benefit of The Regents, its successors and assignees. But it is personal to Licensee
and assignable by Licensee only with the prior written consent of The Regents. The consent of The Regents will not be required if the
assignment is in conjunction with the transfer of all or substantially all of the business of Licensee to which this license relates,
or in connection with a Going Public Transaction. Any other attempt to assign this Agreement by Licensee is null and void.

22.2 No later than thirty (30) days prior to any assignment of this Agreement, all of the following terms and conditions shall be met,
and if they are not met, this Agreement and any assignment thereof will be considered null and void with no further notice from The Regents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) License must provide The Regents in writing the identity of the proposed acquirer including the new assignee's contact information
in the form of Appendix B of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The proposed acquirer or successor entity shall agree in writing to be bound by all the terms and conditions of this Agreement as
if such acquirer or successor entity were the original Licensee and no later than thirty (30) days prior to any assignment of this Agreement,
a copy of such written agreement shall be provided to The Regents by Licensee or the proposed acquirer or successor entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The
 Regents must have received an assignment fee ()"**Assignment Fee**") of ; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The
 Regents must have received an additional assignment fee ()"**Additional Assignment Fee**") of for
 every in
 value (cash, stock, or other) Licensee receives as consideration from the acquirer or successor
 for the assignment.

22.2 (C) and 22.2(D) will not apply to a Going Public Transaction
concluded within twelve (12) months of the Effective Date
and where Licensee has provided an exchange of all equity originally provided under this Agreement for equity in the proposed acquirer
such that The Regents owns 2.5% of the stock of the acquirer.

22.3 In connection with a Going Public Transaction, Licensee must have provided an exchange of any equity originally provided under this
Agreement for equity in the proposed acquirer on equivalent terms as all other holders of equity of the Licensee immediately prior to
completion of a Going Public Transaction such that The Regents own 2.5% of the stock of the acquirer

23. LATE PAYMENTS

23.1 For each royalty payment or fee not received by The Regents when due, Licensee must pay to The Regents a simple interest charge of
ten percent (10%) per annum to be calculated from the date payment was due until it was actually received by The Regents. For purposes
of clarity, this Article 23 (LATE PAYMENTS) does not limit any rights of The Regents under this Agreement arising from the failure by
Licensee to make such payments when due.

24. WAIVER

24.1 No waiver by either party of any breach or default of any term of this Agreement will be deemed a waiver as to any subsequent and/or
similar breach or default. No waiver will be valid or binding upon the parties unless made in writing and signed by a duly authorized
officer of each party.

25. FORCE MAJEURE

25.1 Except for the Licensee's obligation to make any payments to The Regents hereunder, the parties shall not be responsible for any failure
to perform due to the occurrence of any events beyond their reasonable control that render their performance impossible or onerous, including,
but not limited to: accidents (environmental, toxic spill, etc.); acts of God; biological or nuclear incidents; casualties; earthquakes;
fires; floods; governmental acts; orders or restrictions; inability to obtain suitable and sufficient labor, transportation, fuel and
materials; local, national or state emergency; power failure and power outages; acts of terrorism; strike; and war.

25.2 Either party to this Agreement, however, will have the right to terminate this Agreement upon thirty (30) days' prior written notice if either party is unable
to fulfill its obligations under this Agreement due to any of the causes specified in Paragraph 25.1 for a period of one (1) year.

26. GOVERNING LAWS; VENUE; ATTORNEYS' FEES

26.1 THIS AGREEMENT WILL BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA,
but the scope and validity of any patent or patent application will be governed by the applicable laws of the country of the patent or
patent application.

26.2 Any legal action brought by the parties hereto relating to this Agreement will be conducted in San Francisco, California.

26.3 The prevailing party in any suit related to this Agreement will be entitled to recover its reasonable attorneys' fees in addition
to its costs and necessary disbursements.

27. GOVERNMENT APPROVAL OR REGISTRATION

If this Agreement or any associated transaction is required by the law of any nation to be either approved or registered with any governmental agency, the Licensee will assume all legal obligations to do so. The Licensee will notify The Regents if it becomes aware that this Agreement is subject to a United States or foreign government reporting or approval requirement. The Licensee will make all necessary filings and pay all costs including fees, penalties and all other out-of-pocket costs associated with such reporting or approval process.

28. COMPLIANCE WITH LAWS

The Licensee shall comply with all applicable international, national, state, regional and local laws and regulations in performing its obligations hereunder and in its use, manufacture, sale or import of the Licensed Products, or practice of the Licensed Method. The Licensee will observe all applicable United States and foreign laws with respect to the transfer of Licensed Products and related technical data and the provision of Licensed Methods to foreign countries, including, without limitation, the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations. The Licensee shall manufacture Licensed Products and practice the Licensed Method in compliance with applicable government importation laws and regulations of a particular country for Licensed Products made outside the particular country in which such Licensed Products are used, sold or otherwise exploited.

29. CONFIDENTIALITY

29.1 If either party discloses confidential information to the other party, the disclosing party will designate this information as confidential
by appropriate legend or instruction and the receiving party will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) use the same degree of care to maintain the secrecy of the confidential information as it uses to maintain the secrecy of its own
information of like kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) use the confidential information only to accomplish the purposes of this Agreement or for audit or management purposes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) ensure that any employees, customers, distributors and other agents to whom the confidential information is disclosed are bound to
it by similar obligations of confidence and to make such disclosure only as required to accomplish the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.2 Neither party will have any confidentiality obligation with respect to the confidential information belonging to or disclosed by the
other party that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the receiving party can demonstrate by written records was previously known to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the receiving party lawfully obtained from sources under no obligation of confidentiality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) is or becomes publicly available other than through an act or omission of the receiving party or any of its employees; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) is required to be disclosed under the California Public Records Act, governmental audit requirement or other requirement of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.3 The provisions of this Article 29 (CONFIDENTIALITY) will continue in effect for five (5) years after expiration or termination of
this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.4 The Regents may release to the Inventors and senior administrators employed by The Regents the terms and conditions of this Agreement.
If such release is made, then The Regents shall give notice of the confidential nature and shall request that the recipient not disclose
such terms and conditions to others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.5 If a third party inquires whether a license to Patent Rights is available, then The Regents may disclose the existence of this Agreement
and the extent of the grant in Article 2 (GRANT) and Article 3 (SUBLICENSES) to such third party, but will not disclose the name of Licensee
or any other negotiated terms or conditions of this Agreement to such third party, except where The Regents is required to release information
under the California Public Records Act, a governmental audit requirement or other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.6 Licensee hereby grants permission for The Regents (including UCI) to include Licensee's name and a link to Licensee's
website annual reports and websites that showcase technology transfer- related stories as well as links to any publicly available news
stories about Licensee on such websites.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.7 All written confidential information will be labeled or marked confidential or proprietary. If the confidential information is orally
disclosed, it will be reduced to writing or some other physically tangible form, marked and labeled as confidential or proprietary by
the disclosing party and delivered to the receiving party within thirty (30) days after the oral disclosure.

30. MISCELLANEOUS

30.1 The headings of the several sections are inserted for convenience of reference only and are not intended to be a part of or to affect
the meaning or interpretation of this Agreement.

30.2 This Agreement is not binding on the parties until it has been signed below on behalf of each party. It is then effective as of the
Effective Date.

30.3 No amendment or modification of this Agreement is valid or binding on the parties unless made in writing and signed on behalf of each
party.

30.4 This Agreement and Appendixes A-D embodies the entire understanding of the parties and supersedes all previous communications, representations
or understandings, either oral or written, between the parties relating to the subject matter hereof, except for the Secrecy Agreement
dated March 23, 2017, which continues to the extent it is not inconsistent with this Agreement.

30.5 In case any of the provisions contained in this Agreement are held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability will not affect any other provisions of this Agreement, and this Agreement will be construed as if such
invalid, illegal or unenforceable provisions had never been contained in it.

30.6 No provisions of this Agreement are intended or shall be construed to confer upon or give to any person or entity other than The Regents
and the Licensee any rights, remedies or other benefits under, or by reason of, this Agreement.

30.7 In performing their respective duties under this Agreement, each of the parties will be operating as an independent contractor. Nothing
contained herein will in any way constitute any association, partnership, or joint venture between the parties hereto, or be construed
to evidence the intention of the parties to establish any such relationship. Neither party will have the power to bind the other party
or incur obligations on the other party's behalf without the other party's prior written consent.

31. COUNTERPARTS AND EXECUTION

31.1 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument. Facsimile, Portable Document Format (PDF) or photocopied signatures of the parties
will have the same legal validity as original signatures.

IN WITNESS THEREOF, both The Regents and the Licensee have executed this Agreement by their respective and duly authorized officers on the day and year written.

---

| | | | |
|:---|:---|:---|:---|
| EXXEL PHARMA INC. | EXXEL PHARMA INC. | THE REGENTS OF THE UNIVERSITY OF CALIFORNIA | THE REGENTS OF THE UNIVERSITY OF CALIFORNIA |
| By: | /s/ Soren Mogelsvang | By: | /s/ Ronnie Hanecak |
|  | (Signature) |  | (Signature) |
| Name: | Soren Mogelsvang, PhD | Name: | Ronnie Hanecak, PhD |
| Title: | President and CEO | Title: | Senior Director of Licensing |
| Date: | 8/16/2021 | Date: | 8/17/2021 |

---

**APPENDIX A**

**Regents' Patent Rights**

<u>**UC Case 2008-522: Peripheral FAAH Inhibitors**</u>

PCT/US11/045114 Entitled: "Peripherally Restricted FAAH Inhibitors", filed July 22, 2011

Nationalized in:

---

| | | |
|:---|:---|:---|
| Country | Application or Patent Number | Application or Patent Number |
| US |  | 9187413 |
| CA |  | 2843265 |
| CN |  | 201180046110.6 |
| CH |  | 2598477 |
| DE |  | 2598477 |
| FR |  | 2598477 |
| GB |  | 2598477 |
| IT |  | 2598477 |
| JP |  | 5981429 |
| RU |  | 2583435 |

---

<u>**UC Case 2012-075: Meta substituted Peripheral FAAH Inhibitors**</u>

PCT/US2012/51478, Entitled "Meta-Substituted Biphenyl Peripherally Restricted FAAH Inhibitors", filed August 17, 2012.

Nationalized in:

---

| | |
|:---|:---|
| Country | Application or Patent Number |
| US | 9745255 |
| AU | 2012299060 |
| BR | P112014003886-4 |
| CA | 2844812 |
| CN | 201280051447.5 |
| EP | 12826376.1 |
| HK | 14112102.4 |
| IN | 2038/DELNP/2014 |
| JP | 6092870 |
| KR | 10-2014-7077303 |
| MX | MX/A/2014/001966 |
| NZ | 622480 |
| ZA | 201//01875 |

---

<u>**: New Polymorph Form of URB937 with Improved Stability**</u>

US Provisional ar US Provisional entitled "FAAH Inhibitor Polymorph".

**<u>APPENDIX B</u>**

**LICENSEE CONTACT INFORMATION**

---

| | | | |
|:---|:---|:---|:---|
| **Licensee Name:** | Exxel Pharma Inc | **UC Control No:** |  |
| **PATENT PROSECUTION CONTACT:** | **PATENT PROSECUTION CONTACT:** |  |  |
| LAST NAME: | Mogelsvang | TELEPHONE: | 720-261-1109 |
| FIRST NAME: | Soren |  |  |
| TITLE: | President & CEO | FAX: |  |
| ADDRESS: | 12635 E. Montview Blvd, Ste 134, |  |  |
| Aurora, CO | 80045 | EMAIL: | soren.mogelsvang@exxelpharma.com |
| **PATENT PROSECUTION CONTACT:** | **PATENT PROSECUTION CONTACT:** |  |  |
| LAST NAME: | Same as above | TELEPHONE: |  |
| FIRST NAME: |  |  |  |
| TITLE: |  | FAX: |  |
| ADDRESS: |  |  |  |
|  |  | EMAIL: |  |
| **PATENT PROSECUTION CONTACT:** | **PATENT PROSECUTION CONTACT:** |  |  |
| LAST NAME: | Same as above | TELEPHONE: |  |
| FIRST NAME: |  |  |  |
| TITLE: |  | FAX: |  |
| ADDRESS: |  |  |  |
|  |  | EMAIL: |  |

---

**<u>APPENDIX C</u>**

**SAMPLE ROYALTY STATEMENT**

---

| | |
|:---|:---|
| **UC Control No:**________________________________ | **Licensee Name:** Exxel Pharma Inc. |

---

**Quarter Covered: ______________________________**

**Product Name/Code(s): _____________________________**

**Date of First Sale of Product: _____________________________**

**Country of Manufacture for Product: _____________________________**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Product Name** | **Number of<br> Units Sold** | **Unit Selling<br> Price (US $)** | **Country<br> where Sold** | **Gross Sales <br> (US $)** | **Net Sales<br> (US $)<br> itemize any<br> deductions** | **Royalty Rate<br> (%)** | **Total Earned<br> Royalties (US $)** |

---

**Total Earned Royalties: _______________________________**

**Less Minimum Annual Royalty: _____________________________**

*(If Applicable)*

**Balance Due The REGENTS: ______________________________**

**Prepared By:__________________**

## Exhibit 10.4

**Exhibit 10.4**

**Certain portions of this Exhibit have been omitted pursuant to Item 601(b)(10) of Regulation S-K on the basis that they are not material and are the type of information that the registrant treats as confidential and private.**

**FIRST AMENDMENT TO THE LICENSE AGREEMENT BETWEEN THE REGENTS OF <br> THE UNIVERSITY OF CALIFORNIA** 

**AND EXXEL PHARMA, INC**

This first amendment (the**"First Amendment"),** dated January 3rd, 2023 (the **"Effective Date"),** is made by and between The Regents of the University of California **("The Regents"),** a California corporation having its statewide administrative offices at 1111 Franklin Street, 12<sup>th</sup> Floor, Oakland, California 94607-5200, acting through the offices of The University of California, Irvine located at 5270 California Ave, Suite #100, Irvine, CA 92697-7700 and **Exxel Pharma, Inc. ("Licensee")** having a principal place of business at **12635 E Montview Blvd, Suite 134, Aurora, CO 80045** and amends the license agreement with Licensee, dated August 17, 2021 with UC Agreement Control Number 2022-04-0096 (the **"License Agreement").**

**RECITALS**

**WHEREAS,** Licensee has requested an extension of certain diligence milestones and The Regents is willing to agree to such extensions;

**NOW THEREFORE,** in consideration of the foregoing premises and the mutual promises, covenants, and agreements hereinafter set forth, all parties to this First Amendment mutually agree to amend the License Agreement as follows:

1. **Replace PARAGRAPHS 7.3(8)** - **7.3(G)** of the License Agreement with the following to extend the deadlines therein:

"7.3 (B) Submit IND or CTA package for US FDA or Health Canada approval for a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(C) Begin a Phase I clinical
trial and complete a first human dosing with a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(D) Complete a Phase II clinical trial with a Licensed Product
no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(E) Complete pivotal Phase
III clinical trial with a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(F) File NDA for a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(G) Complete a first commercial sale of a Licensed Product no
later than .

All other terms and conditions of the License Agreement remain the same.

This First Amendment may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Facsimile, Portable Document Format (PDF) or photocopied signatures of the Parties will have the same legal validity as original signatures.

IN WITNESS WHEREOF, the parties have executed this First Amendment by their duly authorized representatives for good and valuable consideration.

---

| | | | |
|:---|:---|:---|:---|
| **EXXEL PHARMA INC.** | **EXXEL PHARMA INC.** | **THE REGENTS OF THE UNIVERSITY OF CALIFORNIA** | **THE REGENTS OF THE UNIVERSITY OF CALIFORNIA** |
| By: | /s/ Soren Mogelsvang | By: | /s/ Casie Kelly |
| Name: | Soren Mogelsvang, PhD | Name: | Casie Kelly, PhD |
| Title: | President and CEO | Title: | Interim Director, Research Translation |
| Date: | 1/3/2023 | Date: | 1/3/ 2023 |

---

## Exhibit 10.5

**Exhibit 10.5**

**<u>EMPLOYMENT SERVICES AGREEMENT</u>**

This Employment Services Agreement (the "<u>Agreement</u>") is entered into as of the 1st day of January 2020, by and between **Exxel Pharma Inc**., a corporation existing under the laws of British Columbia, Canada (the "<u>Company</u>"), and **Soren Mogelsvang**, an individual with an address at 751 Grant Pl, Boulder, CO 80302, USA ("<u>Executive</u>").

**<u>INTRODUCTION</u>**

WHEREAS, the Company desires to employ the Executive under the title and capacity President and CEO and the Executive desires to be employed by the Company in such capacity, subject to the terms of this Agreement;

**<u>AGREEMENT</u>**

NOW, THEREFORE, in consideration of the premises and mutual promises herein below set forth, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment Period</u>. The term of the Executive's employment by the Company pursuant to this Agreement (the "<u>Employment Period</u>") shall commence upon the date hereof (the "<u>Effective Date</u>") and shall continue for a period of 36 calendar months (3 years) from the Effective Date. Thereafter, the Employment Period may be renewed by mutual agreement of the parties on terms to be negotiated. In any event, the Employment Period may be terminated as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Employment; Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Subject to the terms and conditions set forth herein, the Company shall employ the Executive to act for the Company during the Employment Period in the capacity of President and CEO, and the Executive hereby accepts such employment. The duties and responsibilities of the Executive shall include overseeing implementation of Company's strategy, as agreed by the Board of Directors; Other duties and responsibilities appropriate to such offices as the Company's Board of Directors (the "<u>Board</u>") may from time to time reasonably assign to the Executive, with such authority and responsibilities; Company-wide executive, administrative functions and overseeing the financial functions performed by the Company's Chief Financial Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive recognizes that during the period of Executive's employment hereunder, Executive owes a duty of loyalty to the Company, and Executive will use Executive's good faith efforts to promote and develop the business of the Company, its subsidiaries and parent company (the Company's subsidiaries from time to time, together with any other affiliates of the Company, the "<u>Affiliates</u>"). Executive shall devote such amount of Executive's business time, attention and skills to the performance of Executive's services as an executive of the Company as is reasonably required by the duties and responsibilities being assumed hereunder. Recognizing and acknowledging that it is essential for the protection and enhancement of the name and business of the Company and the goodwill pertaining thereto, Executive shall perform the Executive's duties under this Agreement professionally, in accordance with the applicable laws, rules and regulations and such standards, policies and procedures established by the Company and the industry from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) However, the parties agree that: (i) Executive may devote a reasonable amount of his time to civic, community, or charitable activities and may serve as a director of other corporations (provided that any such other corporation is not a competitor of the Company, as determined by the Board) and to other types of business or public activities not expressly mentioned in this paragraph and (ii) Executive may participate as a non-employee director and/or investor in other companies and projects, so long as Executive's responsibilities with respect thereto do not conflict or interfere with the faithful performance of his duties to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Place of Employment</u>. The Executive's services shall be performed from the Company's office in Aurora, Colorado, and from the Executive's home in Boulder, Colorado, and at any other locations where the Company now or hereafter has a business facility and at any other location where Executive's presence is necessary to perform him duties. The parties acknowledge, however, that the Executive may be required to travel in connection with the performance of him duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Base Salary</u>. The Executive shall be entitled to receive a salary from the Company during the Employment Period at the rate per year indicated on <u>Schedule A</u> hereto (the "<u>Base Salary</u>"). The Executive may elect to be paid by the Corporation's wholly owned US-based subsidiary Aspire Bioscience, Inc. Once the Board has established the Base Salary, such Base Salary shall be reviewed at each anniversary of the Effective Date, and may be increased at any time at the Board's sole discretion. The parties expressly agree that what the Executive receives now or in the future, in addition to the regular Base Salary, whether this be in the form of benefits or regular or occasional aid/assistance, such as recreation, club memberships, meals, education for his family, vehicle, lodging or clothing, occasional bonuses or anything else he receives, during the Employment Period and any renewals thereof, in cash or in kind, shall not be deemed as salary. However, if the Company becomes a public company subject to the reporting requirements of, inter alia, the US Securities and Exchange Commission (the "SEC"), both parties acknowledge that the Executive's annual compensation (as determined by the rules of the SEC or any other regulatory body or exchange having jurisdiction), which may include some or all of the foregoing, will be required to be publicly disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Bonus.</u> (a) The Company may pay the Executive an annual bonus in an amount indicated on Schedule A (the "<u>Annual Bonus</u>"), at such time and in such amount as may be determined by the Board in its sole discretion. The Board may or may not determine that all or any portion of the Annual Bonus shall be earned upon the achievement of operational, financial or other milestones ("<u>Milestones</u>") established by the Board in consultation with the Executive and that all or any portion of any Annual Bonus shall be paid in cash, unless the Executive and the Company agree to pay such Annual Bonus in securities or other property. Notwithstanding the foregoing, the Annual Bonus shall not exceed the amount of Executive's Base Salary for the period to which the Bonus relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Executive shall be eligible to participate in any other bonus or incentive program established by the Company for executives of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Other Benefits</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stock Option Grant</u>. The Executive shall be entitled to receive stock options under the Company's Stock Option Plan as described in Appendix A and as determined by the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Insurance and Other Benefits</u>. During the Employment Period, the Executive and the Executive's dependents shall be entitled to participate in the Company's insurance programs (or alternatively, to receive reimbursement for the cost of health insurance programs in which the Executive currently participates) and any ERISA benefit plans, as the same may be adopted and/or amended from time to time (the "<u>Benefits</u>"). The Executive shall be entitled to paid personal days on a basis consistent with the Company's other senior executives, as determined by the Board. The Executive shall be bound by all of the policies and procedures established by the Company from time to time. However, in case any of those policies conflict with the terms of this Agreement, the terms of this Agreement shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Vacation</u>. During the Employment Period, the Executive shall be entitled to an annual vacation of at least four (4) weeks. At the end of each 12-month period, or at the termination of the employment, unused vacation time in excess of 7 days will be forfeited. In addition, the Employee shall be eligible for up to twenty four (24) paid sick days per calendar year, paid at the employee's regular base rate of pay, for unexpected illness, injury or medical appointments of the Employee or any family member of the Employee. The Employee may take reasonable unpaid leave for the diagnosis or treatment of any illness or injury of the Employee or the illness, injury or death of any of the Employee's family members of up to fifteen days. The Company reserves the right to require employee to provide a doctor's note to support such absences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Expense Reimbursement</u>. The Company shall reimburse the Executive for all reasonable business, promotional, travel and entertainment expenses incurred or paid by the Executive during the Employment Period in the performance of Executive's services under this Agreement, provided that the Executive furnishes to the Company appropriate documentation required by the Internal Revenue Code in a timely fashion in connection with such expenses and shall furnish such other documentation and accounting as the Company may from time to time reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Termination; Compensation Due</u>*.* The Executive's employment hereunder may terminate, and the Executive's right to compensation for periods after the date the Executive's employment with the Company terminates shall be determined, in accordance with the provisions of paragraphs (a) through (e) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voluntary Resignation; Termination without Cause</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Voluntary Resignation</u>. The Executive may terminate his employment at any time upon forty-five (45) days prior written notice to the Company. In the event of the Executive's voluntary termination of his employment other than for Good Reason (as defined below), the Company shall have no obligation to make payments to the Executive in accordance with the provisions of Sections 3 or 4 above, except as otherwise required by this Agreement or by applicable law, or to provide the benefits described in Section 5 above, for periods after the date on which the Executive's employment with the Company terminates due to the Executive's voluntary termination, except for the payment of the Base Salary accrued through the date of such resignation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Termination without Cause</u>. The Company may terminate the Executive's employment with the Company at any time with or without cause, by delivery to the Executive of a written notice of termination from the Board of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) If the Executive's employment is terminated by the Company without Cause, the Company shall (1) continue to pay the Executive the Base Salary (at the rate in effect on the date the Executive's employment is terminated) for the period equal to the number of months set forth on <u>Schedule A</u> hereto (the "<u>Severance Period</u>"), (2) with respect to the Annual Bonus, to the extent the Milestones are achieved, pay the Executive a pro rata portion of the Annual Bonus for the year of the Employment Period on the date such Annual Bonus would have been payable to the Executive had the Executive remained employed by the Company, and (3) pay any other accrued compensation and Benefits. The Executive shall not have any further rights under this Agreement or otherwise to receive any other compensation or benefits after such termination of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) If, following a termination of employment without Cause, the Executive breaches the provisions of Sections 7(b), 8 or 9 hereof, the Executive shall not be eligible, as of the date of such breach, for the payments and benefits described in Section 6 (a)(ii), and any and all obligations and agreements of the Company with respect to such payments shall thereupon cease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Discharge for Cause</u>. Upon written notice to the Executive, the Company may terminate the Executive's employment for "Cause" if any of the following events shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any act or omission that constitutes a material breach by the Executive of any of his obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the willful and continued failure or refusal of the Executive to satisfactorily perform the duties reasonably required of him as an employee of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Executive's conviction of, or plea of *nolo contendere* to, (i) any felony or (ii) a crime involving dishonesty or moral turpitude or which could reflect negatively upon the Company or otherwise impair or impede its operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Executive's engaging in any misconduct, negligence, act of dishonesty (including, without limitation, theft or embezzlement), violence, threat of violence or any activity that could result in any violation of federal securities laws, in each case, that is injurious to the Company or any of its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any other willful misconduct by the Executive which is materially injurious to the financial condition or business reputation of the Company or any of its Affiliates, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Executive's breach of his obligations under Section 7, 8 or 9 of this Agreement.

In the event the Executive is terminated for Cause, the Company shall have no obligation to make payments to the Executive in accordance with the provisions of Sections 3 or 4 above, or, except as otherwise required by law, to provide the benefits described in Section 5 above, for periods after the Executive's employment with the Company is terminated on account of the Executive's discharge for Cause except for the then applicable Base Salary accrued through the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Disability</u>. The Company shall have the right, but shall not be obligated to terminate the Executive's employment hereunder in the event the Executive becomes disabled such that he is unable to discharge his duties to the Company for a period of ninety (90) consecutive days or one hundred twenty (120) days in any one hundred eighty (180) consecutive day period, provided longer periods are not required under applicable local labor regulations (a "<u>Permanent Disability</u>"). In the event of a termination of employment due to a Permanent Disability, the Company shall be obligated to continue to make payments to the Executive in an amount equal to the then applicable Base Salary for the period equal to the number of months set forth on <u>Schedule A</u> hereto (the "<u>Severance Period</u>") after the Executive's employment with the Company is terminated due to a Permanent Disability. A determination of a Permanent Disability shall be made by a physician satisfactory to both the Executive and the Company; <u>provided</u>, <u>however</u>, that if the Executive and the Company do not agree on a physician, the Executive and the Company shall each select a physician and those two physicians together shall select a third physician, whose determination as to a Permanent Disability shall be binding on all parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Death</u>. The Executive's employment hereunder shall terminate upon the death of the Executive. In the event of a termination of employment due to Death, the Company shall be obligated to continue to make payments to the Executive's heir(s) in an amount equal to the then applicable Base Salary for the period equal to the number of months set forth on <u>Schedule A</u> hereto (the "<u>Severance Period</u>") after the Executive's employment with the Company is terminated due to Death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination for Good Reason</u>. The Executive may terminate this Agreement at any time for Good Reason. In the event of termination under this Section 6(e), the Company shall pay to the Executive severance in an amount equal to the then applicable Base Salary for the period equal to the number of months set forth on <u>Schedule A</u> hereto (the "<u>Severance Period</u>"), subject to the Executive's continued compliance with Sections 7(b), 8 and 9 of this Agreement for the applicable Severance Period following the Executive's termination, and subject to the Company's regular payroll practices and required withholdings. The Executive shall continue to receive all Benefits during the Severance Period. The Executive shall not have any further rights under this Agreement or otherwise to receive any other compensation or benefits after such resignation. For the purposes of this Agreement, "Good Reason" shall mean any of the following (without Executive's express written consent):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the assignment to the Executive of duties that are significantly different from, and that result in a substantial diminution of, the duties that he assumed on the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) removal of the Executive from all of his positions as President and CEO, or the assignment to the Executive of duties that are significantly different from, and that result in a substantial diminution of, the duties that he assumed under this Agreement, within twelve (12) months after a Change of Control (as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a reduction by the Company in the then applicable Base Salary or other compensation, unless said reduction is pari passu with other senior executives of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the taking of any action by the Company that would, directly or indirectly, materially reduce the Executive's benefits, unless said reductions are pari passu with other senior executives of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a breach by the Company of any material term of this Agreement that is not cured by the Company within 30 days following receipt by the Company of written notice thereof.

For purposes of this Agreement, "Change of Control" shall mean the occurrence of any one or more of the following: (i) the accumulation, whether directly, indirectly, beneficially or of record, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) of 50% or more of the shares of the outstanding equity securities of the Company, (ii) a merger or consolidation of the Company in which the Company does not survive as an independent company or upon the consummation of which the holders of the Company's outstanding equity securities prior to such merger or consolidation own less than 50% of the outstanding equity securities of the Company after such merger or consolidation, or (iii) a sale of all or substantially all of the assets of the Company; provided, however, that the following acquisitions shall not constitute a Change of Control for the purposes of this Agreement: (A) any acquisitions of common stock or securities convertible into common stock directly from the Company, or (B) any acquisition of common stock or securities convertible into common stock by any employee benefit plan (or related trust) sponsored by or maintained by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notice of Termination</u>. Any termination of employment by the Company or the Executive shall be communicated by a written "Notice of Termination" to the other party hereto given in accordance with Section 15 of this Agreement. In the event of a termination by the Company for Cause, the Notice of Termination shall (i) indicate the specific termination provision in this Agreement relied upon, (ii) set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated and (iii) specify the date of termination, which date shall be the date of such notice. The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive's or the Company's rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Resignation from Directorships and Officerships</u>. The termination of the Executive's employment for any reason will constitute the Executive's resignation from (i) any director, officer or employee position the Executive has with the Company or any of its Affiliates, and (ii) all fiduciary positions (including as a trustee) the Executive holds with respect to any employee benefit plans or trusts established by the Company. The Executive agrees that this Agreement shall serve as written notice of resignation in this circumstance, unless otherwise required by any plan or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Non-Competition; Non-Solicitation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the duration of the Employment Period and, unless the Company terminates the Executive's employment without Cause, during the Severance Period (the "<u>Non-compete Period</u>"), the Executive shall not, directly or indirectly, except as specifically provided in Section 2(c), engage or invest in, own, manage, operate, finance, control or participate in the ownership, management, operation, financing, or control of, be employed by, associated with, or in any manner connected with, lend any credit to, or render services or advice to, any business, firm, corporation, partnership, association, joint venture or other entity that engages or conducts development of FAAH-based pharmaceutical products. Notwithstanding the foregoing, if the Executive shall present to the Board any opportunity within the scope of the prohibited activities described above, and the Company shall not elect to pursue such opportunity within a reasonable time, then the Executive shall be permitted to pursue such opportunity, subject to the requirements of Section 2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Employment Period and for a period of twelve (12) months following termination of the Executive's employment with the Company, the Executive shall not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) persuade, solicit or hire, or attempt to recruit, persuade, solicit or hire, any employee, or independent contractor of, or consultant to, the Company, or its Affiliates, to leave the employment (or independent contractor relationship) thereof, whether or not any such employee or independent contractor is party to an employment agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) attempt in any manner to solicit or accept from any customer or client of the Company or any of its Affiliates, with whom the Company or any of its Affiliates had significant contact during the term of the Agreement, business of the kind or competitive with the business done by the Company or any of its Affiliates with such customer or to persuade or attempt to persuade any such customer to cease to do business or to reduce the amount of business which such customer has customarily done or is reasonably expected to do with the Company or any of its Affiliates or if any such customer elects to move its business to a person other than the Company or any of its Affiliates, provide any services (of the kind or competitive with the Business of the Company or any of its Affiliates) for such customer, or have any discussions regarding any such service with such customer, on behalf of such other person.

The Executive expressly agrees that the character, duration and scope of the covenant not to compete are reasonable in light of the circumstances, as they exist at the date upon which this Agreement has been executed. However, should a determination nonetheless be made by a court of competent jurisdiction at a later date that the character, duration or geographical scope of the covenant not to compete is unreasonable in light of the circumstances as they then exist, then it is the intention of the Executive, on the one hand, and the Company, on the other, that the covenant not to compete shall be construed by the court in such a manner as to impose only those restrictions on the conduct of the Executive which are reasonable in light of the circumstances as they then exist and necessary to assure the Company of the intended benefit of the covenant not to compete. In the event the Company has insufficient funds to operate and the Executive is terminated, the Non-compete Period and the Executive's obligations under this Section 7 cease immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Inventions and Patents</u>. The Executive acknowledges that all inventions, innovations, improvements, know-how, plans, development, methods, designs, analyses, specifications, software, drawings, reports and all similar or related information (whether or not patentable or reduced to practice) which related to any of the Company's actual or proposed business activities and which are created, designed or conceived, developed or made by the Executive during the Executive's past or future employment by the Company or any Affiliates, or any predecessor thereof ("Work Product"), belong to the Company, or its Affiliates, as applicable. Any copyrightable work falling within the definition of Work Product shall be deemed a "work made for hire" and ownership of all right title and interest shall rest in the Company. The Executive hereby assigns, transfers and conveys, to the full extent permitted by law, all right, title and interest in the Work Product, on a worldwide basis, to the Company to the extent ownership of any such rights does not automatically vest in the Company under applicable law. The Executive will promptly disclose any such Work Product to the Company and perform all actions requested by the Company (whether during or after employment) to establish and confirm ownership of such Work Product by the Company (including without limitation, assignments, consents, powers of attorney and other instruments). In the event the Company has insufficient funds to operate and ceases operation within 12 months of the Effective date, ownership of any Work Product conceived by the Executive, as outlined in this section, will automatically transfer to the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Confidentiality Covenants.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Executive understands that the Company and/or its Affiliates, from time to time, may impart to the Executive confidential information, whether such information is written, oral or graphic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Internal personnel and financial information of the Company or its Affiliates, vendor information (including vendor characteristics, services, prices, lists and agreements), purchasing and internal cost information, internal service and operational manuals, and the manner and methods of conducting the business of the Company or its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Marketing and development plans, price and cost data, price and fee amounts, pricing and billing policies, bidding, quoting procedures, marketing techniques, forecasts and forecast assumptions and volumes, and future plans and potential strategies (including, without limitation, all information relating to any acquisition prospect and the identity of any key contact within the organization of any acquisition prospect) of the Company or its Affiliates which have been or are being discussed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Names of customers and their representatives, contracts (including their contents and parties), customer services, and the type, quantity, specifications and content of products and services purchased, leased, licensed or received by customers of the Company or its Affiliates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Confidential and proprietary information provided to the Company or its Affiliates by any actual or potential customer, government agency or other third party (including businesses, consultants and other entities and individuals).

The Executive hereby acknowledges the Company's exclusive ownership of such Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Executive agrees as follows: (1) only to use the Confidential Information to provide services to the Company and its Affiliates; (2) only to communicate the Confidential Information to fellow employees, agents and representatives on a need-to-know basis; and (3) not to otherwise disclose or use any Confidential Information, except as may be required by law or otherwise authorized by the Board. Upon demand by the Company or upon termination of the Executive's employment, the Executive will deliver to the Company all manuals, photographs, recordings and any other instrument or device by which, through which or on which Confidential Information has been recorded and/or preserved, which are in the Executive's possession, custody or control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Representation</u>. The Executive hereby represents that the Executive's entry into this Employment Agreement and performance of the services hereunder will not violate the terms or conditions of any other agreement to which the Executive is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Arbitration.</u> In the event of any breach arising from the performance of this Agreement, either party may request arbitration. In such event, the parties will submit to arbitration by a qualified arbitrator with the definition and laws of the State of Colorado. Such arbitration shall be final and binding on both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Governing Law/Jurisdiction</u>. This Agreement and any disputes or controversies arising hereunder shall be construed and enforced in accordance with and governed by the internal laws of the State of Colorado without regard to the conflicts of laws principles thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Public Company Obligations</u>. Executive acknowledges that the Company plans to become a public company, and that this Agreement may be subject to the public filing requirements of the Exchange Act. Executive acknowledges and agrees that the applicable insider trading rules, transaction reporting rules, limitations on disclosure of non-public information and other requirements set forth in the Securities Act, the Exchange Act and rules and regulations promulgated by the SEC (or CSA, if applicable) may apply to this Agreement and Executive's employment with the Company. Executive (on behalf of himself, as well as the Executive's executors, heirs, administrators and assigns), absolutely and unconditionally agrees to indemnify and hold harmless the Company and all of its past, present and future affiliates, executors, heirs, administrators, shareholders, employees, officers, directors, attorneys, accountants, agents, representatives, predecessors, successors and assigns from any and all claims, debts, demands, accounts, judgments, causes of action, equitable relief, damages, costs, charges, complaints, obligations, controversies, actions, suits, proceedings, expenses, responsibilities and liabilities of every kind and character whatsoever (including, but not limited to, reasonable attorneys' fees and costs) in the event of Executive's breach of any obligation of Executive under the Securities Act, the Exchange Act, any rules promulgated by the SEC and any other applicable federal, state or foreign laws, rules, regulations or orders. The Company will assume the responsibility for public EDGAR or SEDI filings on behalf of the Executive and will cover all costs associated with the Executives SEC compliance originating from his employment with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Indemnification.</u> If the Company, the parent company, their respective affiliates, any subsidiary of the Company, any respective current and former officers, directors, partners, attorneys, owners, employees and agents, and the heirs, successors and assigns of all of the foregoing persons or entities (collectively, "Indemnitees") become involved in any capacity in any pending or threatened claim, suit, action, proceeding, investigation or inquiry (including, without limitation, any shareholder or derivative action or arbitration proceeding) (collectively, a "Proceeding") in connection with the Company's normal operation, or as a company engaged in the research and development of pharmaceutical products, or otherwise in connection with any matter in any way relating to or referring to this Agreement or arising out of the matters contemplated by this Agreement, including, without limitation, related services and activities prior to the date of this Agreement, Company agrees to indemnify, defend and hold the Executive harmless to the fullest extent permitted by law from and against any losses, claims, damages, liabilities and expenses in connection with any Proceeding. In addition, the Company shall at all times carry an active Directors' and Officers' insurance policy to cover the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Entire Agreement.</u> This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and thereof and supersedes and cancels any and all previous agreements, written and oral, regarding the subject matter hereof between the parties hereto. This Agreement shall not be changed, altered, modified or amended, except by a written agreement signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Notices</u>. All notices, requests, demands and other communications called for or contemplated hereunder shall be in writing and shall be deemed to have been given when delivered to the party to whom addressed or when sent by telecopy (if promptly confirmed by registered or certified mail, return receipt requested, prepaid and addressed) to the parties, their successors in interest, or their assignees at the following addresses, or at such other addresses as the parties may designate by written notice in the manner aforesaid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the Company at:

**Exxel Pharma, Inc**

12635 E. Montview Blvd

Aurora, CO 80045

Attn: Soren Mogelsvang

With a copy to:

Cassels Brock

2200 HSBC Building, 885 West Georgia Street

Vancouver, British Columbia, V6C 3E8

Fax: +1 604 691 6120

Attn: Sam Cole

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the Executive at:

Soren Mogelsvang

751 Grant Pl

Boulder, CO 80302

Phone: 720.261.1109

Email: mogelsvang@gmail.com

All such notices, requests and other communications will (i) if delivered personally to the address as provided in this Section, be deemed given upon delivery, (ii) if delivered by facsimile transmission to the facsimile number as provided for in this Section, be deemed given upon facsimile confirmation, (iii) if delivered by mail in the manner described above to the address as provided for in this Section, be deemed given on the earlier of the third business day following mailing or upon receipt and (iv) if delivered by overnight courier to the address as provided in this Section, be deemed given on the earlier of the first business day following the date sent by such overnight courier or upon receipt (in each case regardless of whether such notice, request or other communication is received by any other person to whom a copy of such notice is to be delivered pursuant to this Section). Either party may, by notice given to the other party in accordance with this Section, designate another address or person for receipt of notices hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Severability</u>. If any term or provision of this Agreement, or the application thereof to any person or under any circumstance, shall to any extent be invalid or unenforceable, the remainder of this Agreement, or the application of such terms to the persons or under circumstances other than those as to which it is invalid or unenforceable, shall be considered severable and shall not be affected thereby, and each term of this Agreement shall be valid and enforceable to the fullest extent permitted by law. The invalid or unenforceable provisions shall, to the extent permitted by law, be deemed amended and given such interpretation as to achieve the economic intent of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Waiver</u>. The failure of any party to insist in any one instance or more upon strict performance of any of the terms and conditions hereof, or to exercise any right or privilege herein conferred, shall not be construed as a waiver of such terms, conditions, rights or privileges, but same shall continue to remain in full force and effect. Any waiver by any party of any violation of, breach of or default under any provision of this Agreement by the other party shall not be construed as, or constitute, a continuing waiver of such provision, or waiver of any other violation of, breach of or default under any other provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Successors and Assigns</u>. This Agreement shall be binding upon the Company and any successors and assigns of the Company. Neither this Agreement nor any right or obligation hereunder may be assigned by the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Counterparts</u>. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Headings</u>. Headings in this Agreement are for reference purposes only and shall not be deemed to have any substantive effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Opportunity to Seek Advice</u>. The Executive acknowledges and confirms that he has had the opportunity to seek such legal, financial and other advice and representation as he has deemed appropriate in connection with this Agreement, that the Executive is fully aware of its legal effect, and that Executive has entered into it freely based on the Executive's judgment and not on any representations or promises other than those contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Withholding and Payroll Practices</u>. All salary, severance payments, bonuses or benefits payments made by the Company under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law and shall be paid in the ordinary course pursuant to the Company's then existing payroll practices.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

*[The next page is the signature page]*

---

| | |
|:---|:---|
| **EXECUTIVE:** | **EXECUTIVE:** |
| Soren Mogelsvang | Soren Mogelsvang |
| **Exxel Pharma, Inc.** | **Exxel Pharma, Inc.** |
| By: |  |
| Name: | Guy Yachin |
| Title: | Director |

---

<u>Schedule A</u>

&nbsp;&nbsp;&nbsp;&nbsp;1. Base Salary: $225,000 per year with the understanding that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Executive may defer part of the Base Salary during times when Company's cash flow, in the reasonable judgment of the Company's
Board of Directors, cannot sustain the Base Salary. Any deferred salary will remain an obligation of the Company, and will be due and
payable in full, with interest at the rate of 2% per annum, when Company's cash flow, in the reasonable judgment of the Company's
Board of Directors, can sustain payment of the deferred salary.

&nbsp;&nbsp;&nbsp;&nbsp;2. Bonus Potential:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Up to 100% of Base Salary, based upon achievement of budget and operational milestones as approved by the Company's Board of
Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Three percent (3%) of the total gross consideration (cash, securities and assets) paid in the event of an acquisition of Company,
a merger, a joint venture, an asset sale, or entry into an option or license agreement during the term of this agreement or at any time
during a period of 12 months following the effective date of termination or expiration of this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;3. Stock Options Potential:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The Executive shall be entitled to receive equity grants from the Stock Option Plan, or participate in any existing or future equity
incentive plans.

&nbsp;&nbsp;&nbsp;&nbsp;4. Severance Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. 12 months.

## Exhibit 10.6

**Exhibit 10.6**

**CONSULTING AGREEMENT**

**THIS CONSULTING AGREEMENT** (the "**Agreement**") dated for reference December 1, 2024 is made effective December 1, 2024 (the "**Effective Date**"), by and between Richard Paul, MD, an individual acting as an independent contractor (the "**Consultant**"), and Exxel Pharma Inc, a corporation existing under the laws of British Columbia (the "**Company**").

1. Background.

The Company desires to retain the services of the Consultant and the Consultant has agreed to serve as a consultant to the Company to provide general advice to the Company's board of directors and senior management on current standards and trends in the Consultant's area of expertise, and to act in the capacity of Chief Medical Officer (CMO).

2. Description of Services.

The Company hereby retains the Consultant to provide advice and consulting services to the Company's board of directors and senior management, utilizing the Consultant's expertise, and to assist the Company in the capacity of Chief Medical Officer (the "**Services**").

The Consultant hereby agrees to provide the Services. The Consultant shall spend such time on the Services as the Company may reasonably request and shall use his best efforts to perform the Services in a manner that is satisfactory to the Company.

3. Term and Expiration.

Subject to the terms hereof, this Agreement shall become effective as of the Effective Date and shall continue for two (2) years in accordance with the terms of this Agreement. This agreement shall automatically renew yearly thereafter. Such termination shall not affect the Consultant's continuing obligations to the Company under Sections 7, 8 or 10 hereof.

**Interpretation.**

For the purposes of this Section 3, the following terms shall have the meanings ascribed to each:

"**Termination Date**" means the date of termination of this Agreement and is the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the effective date of any resignation by the Consultant as an officer of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effective date of any termination of this Agreement, whether with or without Just Cause.

"**Just Cause**" includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any act, omission, or behaviour that constitutes just cause for dismissal at common law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Consultant's failure to properly discharge his lawful duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any failure by the Consultant to perform the material duties of his position in a competent manner, where
the Consultant fails to remedy such failure to the satisfaction of the Company within a reasonable period of time after receiving notice
of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any failure by the Consultant to obey a lawful, ethical and reasonable order, or to carry out lawful,
ethical and reasonable instructions issued to him by or on behalf of the Company, where the Consultant fails to remedy such failure to
the satisfaction of the Company within a reasonable period of time agreed upon by both parties after receiving notice of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Consultant's conviction for any crime respecting the property of the Company or the Consultant's
personal honesty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any material breach by the Consultant of his obligations under any policies or procedures adopted by the
Company and provided to the Consultant in accordance with the Company's normal practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any other material breach or non-observance of this Agreement by the Consultant.

**Termination for Just Cause.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may terminate this Agreement for Just Cause by giving the Consultant sixty (60) days written
notice of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event this Agreement is terminated by the Company for Just Cause, the Consultant shall not be entitled
to any payments or benefits hereunder, other than amounts due and owing up to the Termination Date.

**Termination other than for Just Cause.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may terminate this Agreement for reasons other than Just Cause which may include insolvency,
bankruptcy, transfer or sale or partnership of the company to another entity etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Company terminates this Agreement other than for Just Cause, the Company shall provide the Consultant
with a minimum of two (2) months paid notice,

**Resignation of Positions.**

The Consultant agrees that after termination of this Agreement for any reason he shall tender his resignation from any position he may hold as an officer, director or agent of the Company or as an officer, director or agent of any of its affiliated or associated companies if so requested by the board of directors of the Company.

4. Independent Contractor.

The Consultant's relationship with the Company shall be that of an independent contractor and not that of an employee. Accordingly, the Consultant will not be eligible for any employee benefits, other than as specifically provided for herein, nor will the Company make deductions from payments, if any, made to the Consultant for taxes, all of which will be the Consultant's responsibility. The Consultant agrees to indemnify and hold the Company harmless from any liability for, or assessment of, any such taxes imposed on the Company by relevant taxing authorities.

5. Compensation.

In consideration for providing the Services, the Company shall pay to the Consultant a monthly cash fee of US$2,500, with the first such payment due and owing upon the Effective Date (for the remaining portion of the month), and each subsequent payment due and owing on the first business day of each successive month during the term of this Agreement.

6. Expenses.

The Company shall reimburse Consultant for all authorized out-of-pocket expenses incurred by the Consultant in the course of carrying out its duties and responsibilities under this Agreement (the "**Business Expenses**") which will be paid with a period of 30 day. The Consultant shall provide the Company with an itemized monthly report, together with original receipts, showing all Business Expenses incurred in the past month plus such other expense information as the Company may reasonably require from time to time.

7. Confidentiality Agreement.

**"Confidential Information" means trade secrets and other information relating to the business not generally known to the public, that is owned by the Company, or by any company affiliated, associated or related to the Company, or by any of its service providers, customers or other business partners. Confidential Information includes, without limitations, all financial information, legal, corporate, marketing, research, technical, personnel and supplier information and any other information, in whatever form or media, specifically identified as confidential by the Company, or the nature of which is such that it would generally be considered confidential in the industry in which the Company operates, or which the Company is obligated to treat as confidential or proprietary.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Consultant acknowledges that the Company will disclose to the Consultant
or allow the Consultant access to Confidential Information. The Consultant further acknowledges that this information is of significant
value to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Consultant agrees that nothing in this Agreement, or otherwise,
shall allow the Consultant to acquire any right, title or interest in or to the Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During the term of this Agreement and thereafter, the Consultant shall
maintain in strict confidence all Confidential Information disclosed to him, or to which he obtains access, as a result of this Agreement,
or otherwise. The Consultant shall take all necessary precautions against unauthorized disclosure of the Confidential Information during
the term of this Agreement and thereafter. Without limitation, the Consultant shall not, directly or indirectly, disclose, allow access
to, transmit or transfer Confidential Information to a third party without the Company's consent, or use or reproduce such Confidential
Information, in any manner, except as reasonably required to fulfil the purposes of this Agreement. The Consultant shall ensure that every
copy he makes of any Confidential Information is clearly marked, or otherwise identified, as confidential and proprietary to the Company,
and is stored in a secure location while in the Consultant's possession, control, charge or custody. Notwithstanding the foregoing of
this Section, to the extent the Consultant can establish he is required by law to disclose Confidential Information, he shall be permitted
to do so, provided that notice of this requirement to disclose is first delivered to the Company, so that it may contest this potential
disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The non-disclosure obligations under this Agreement shall not apply
to Confidential Information which the Consultant can establish:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is, or becomes, readily available to the public other than through a
breach of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is disclosed lawfully and not in breach of any contractual or other
legal obligation to him by a third party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) was independently developed by the Consultant without the use of the
Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Consultant also agrees that the unauthorized disclosure of any Confidential
Information during his tenure with the Company could constitute just cause for termination of his Services.

8. Conflict of Interest

The Consultant will immediately advise the Company if he becomes involved in any capacity, including, as an officer, director, employee, or consultant, with any person, business, or business opportunity that is, or could reasonably be expected in the future to be, in conflict or competition with the business or business prospects of the Company. In the event of any such conflict, the Consultant will govern himself with the standard of care imposed by applicable corporate laws in respect of fiduciaries of both organizations.

9. Indemnification

If the Company becomes involved in any capacity in any pending or threatened claim, suit, action, proceeding, investigation or inquiry (including, without limitation, any shareholder or derivative action or arbitration proceeding) (collectively, a "Proceeding") in connection with the Company's normal operation, or as a company engaged in the research and development of pharmaceutical products, or otherwise in connection with any matter in any way relating to or referring to this Agreement or arising out of the matters contemplated by this Agreement, including, without limitation, related services and activities prior to the date of this Agreement, Company agrees to indemnify, defend and hold the Consultant harmless to the fullest extent permitted by law from and against any losses, claims, damages, liabilities and expenses in connection with any Proceeding.

10. Governing Law.

This Agreement shall be governed and construed in accordance with the laws of the Province of British Columbia, and the federal laws of Canada applicable therein.

11. No Conflict.

The Consultant represents that the Consultant's retention as an advisor by the Company does not and will not breach any other agreement to keep in confidence any proprietary information acquired by the Consultant in confidence prior to the Consultant's retention as an advisor by such other agreement, either written or oral. The Consultant understands that as part of the consideration for the offer to retain the Consultant as an advisor, and of the Consultant's retention as an advisor by the Company, that the Consultant has not brought and will not bring with the Consultant to the Company or use in the performance of the Consultant's responsibilities at the Company any equipment, supplies, facility or trade secret information of any current or former employer which are not generally available to the public. The Consultant also understands that, in the Consultant's retention as an advisor with the Company, the Consultant is not to breach any obligation of confidentiality that the Consultant has to others, and the Consultant agrees that the Consultant shall fulfill all such obligations during the Consultant's retention as an advisor with the Company.

12. Mediation and Arbitration.

Any dispute arising under this Agreement shall be resolved through a mediation – arbitration approach. The parties agree to select a mutually agreeable, neutral third party to help them mediate any dispute that arises under the terms of this Agreement. Costs and fees associated with the mediation shall be shared equally by the parties. If the mediation is unsuccessful, the parties agree that the dispute shall be decided by a single arbitrator by binding arbitration. The decision of the arbitrator shall be final and binding on the parties and may be entered and enforced in any court of competent jurisdiction by either party. The prevailing party in the arbitration proceedings shall be awarded reasonable attorney fees, expert witness costs and expenses, and all other costs and expenses incurred directly or indirectly in connection with the proceedings, unless the arbitrator shall for good cause determine otherwise.

13. Advice of Counsel.

By executing this Agreement the Consultant confirms that he has had the opportunity to seek the advice of independent legal counsel, or has waived his right thereto, and has read and understood all of the terms and provisions of this agreement.

14. Miscellaneous

This Agreement shall be binding upon and shall inure to the benefit of the Company's successors, transferees and assigns. Any amendment to this Agreement must be in writing executed by the Consultant and the Company. The Company and the Consultant acknowledge that any amendment of this Agreement (including, without limitation, any extension of this Agreement or any change from the terms of Section 5 in the consideration to be provided to the Consultant with respect to services to be provided hereunder) or any departure from the terms or conditions hereof with respect to the Consultant's consulting services for the Company, is subject to the Company's and the Consultant's prior written approval. This Agreement supersedes any prior consulting or other similar agreements between the Consultant and the Company with respect to the subject matter hereof. All notices hereunder shall be deemed to have been given, if made in writing, when mailed, postage prepaid, to the parties at the addresses set forth above, or to such other addresses as a party shall specify to the other. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

15. Severability.

If any provision of this Agreement is held to be unenforceable under applicable law, such provision shall be severed and the remaining provisions of this Agreement shall continue in full force and effect.

16. Counterparts.

This Agreement may be executed and delivered in one or more counterparts, and each counterpart when so executed and delivered will be deemed an original, and all such counterparts will together constitute one and the same document.

**IN WITNESS WHEREOF**, the parties hereto have executed this Agreement effective as the day and year first written above.

---

| | | |
|:---|:---|:---|
| **Exxel Pharma, Inc** | **Exxel Pharma, Inc** | **Consultant** |
| Per: | | |
|  | *Authorized Signatory* | Dr. Rich Paul |

---

## Exhibit 10.7

**Exhibit 10.7**

**CONSULTING AGREEMENT**

**THIS CONSULTING AGREEMENT** (the "**Agreement**") dated for reference May 22, 2018 is made effective June 1, 2018 (the "**Effective Date**"), by and between Daniele Piomelli, an individual acting as an independent contractor (the "**Consultant**"), and Exxel Pharma Inc, a corporation existing under the laws of British Columbia (the "**Company**").

1. Background.

The Company desires to retain the services of the Consultant and the Consultant has agreed to serve as a consultant to the Company to provide general advice to the Company's board of directors and senior management on current standards and trends in the Consultant's area of expertise, and to act in the capacity of Chief Scientific Officer (CSO).

2. Description of Services.

The Company hereby retains the Consultant to provide advice and consulting services to the Company's board of directors and senior management, utilizing the Consultant's expertise, and to assist the Company in the capacity of Chief Scientific Officer (the "**Services**").

The Consultant hereby agrees to provide the Services. The Consultant shall spend such time on the Services as the Company may reasonably request, and shall use his best efforts to perform the Services in a manner that is satisfactory to the Company.

3. Term and Expiration.

Subject to the terms hereof, this Agreement shall become effective as of the Effective Date and shall continue until otherwise terminated in accordance with the terms of this Agreement. Such termination shall not affect the Consultant's continuing obligations to the Company under Sections 7, 8 or 9 hereof.

**Interpretation.**

For the purposes of this Section 3, the following terms shall have the meanings ascribed to each:

"**Termination Date**" means the date of termination of this Agreement and is the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the effective date of any resignation by the Consultant as an officer of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effective date of any termination of this Agreement, whether with or without Just Cause.

"**Just Cause**" includes, but is not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any act, omission, or behaviour that constitutes just cause for dismissal at common law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Consultant's failure to properly discharge his lawful duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any failure by the Consultant to perform the material duties of his position in a competent manner, where
the Consultant fails to remedy such failure to the satisfaction of the Company within a reasonable period of time after receiving notice
of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any failure by the Consultant to obey a lawful and reasonable order, or to carry out lawful and reasonable
instructions issued to him by or on behalf of the Company, where the Consultant fails to remedy such failure to the satisfaction of the
Company within a reasonable period of time after receiving notice of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Consultant's conviction for any crime respecting the property of the Company or the Consultant's
personal honesty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any material breach by the Consultant of his obligations under any policies or procedures adopted by the
Company from time to time in accordance with the Company's normal practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any breach by the Consultant of the fiduciary duties normally owed by an executive to a Company including
the duty to avoid conflicts of interest, and to act honestly and in good faith with a view to the best interests of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any other material breach or non-observance of this Agreement by the Consultant.

**Termination for Just Cause.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may terminate this Agreement for Just Cause by giving the Consultant written notice of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event this Agreement is terminated by the Company for Just Cause, the Consultant shall not be entitled
to any payments or benefits hereunder, other than amounts due and owing up to the Termination Date.

**Termination other than for Just Cause.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may terminate this Agreement at any time for reasons other than Just Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Company terminates this Agreement other than for Just Cause, the Company shall provide the Consultant
with working notice, payment in lieu of working notice or a combination of the two equal to three (3) months of the fee prescribed by
Section 5 of this Agreement plus one (1) additional month for each complete year of service by the Consultant.

**Resignation of Positions.**

The Consultant agrees that after termination of this Agreement for any reason he shall tender his resignation from any position he may hold as an officer, director or agent of the Company or as an officer, director or agent of any of its affiliated or associated companies if so requested by the board of directors of the Company.

4. Independent Contractor.

The Consultant's relationship with the Company shall be that of an independent contractor and not that of an employee. Accordingly, the Consultant will not be eligible for any employee benefits, other than as specifically provided for herein, nor will the Company make deductions from payments, if any, made to the Consultant for taxes, all of which will be the Consultant's responsibility. The Consultant agrees to indemnify and hold the Company harmless from any liability for, or assessment of, any such taxes imposed on the Company by relevant taxing authorities.

5. Compensation.

In consideration for providing the Services, the Company shall pay to the Consultant a monthly cash fee of US$2,000, with the first such payment due and owing upon the Effective Date (for the remaining portion of the month), and each subsequent payment due and owing on the first business day of each successive month during the term of this Agreement.

6. Expenses.

The Company shall reimburse the Consultant for all authorized out-of-pocket expenses incurred by the Consultant in the course of carrying out its duties and responsibilities under this Agreement (the "**Business Expenses**"). The Consultant shall provide the Company with an itemized monthly report, together with original receipts, showing all Business Expenses incurred in the past month plus such other expense information as the Company may reasonably require from time to time.

7. Confidentiality Agreement.

**"Confidential Information" means trade secrets and other information relating to the business not generally known to the public, that is owned by the Company, or by any company affiliated, associated or related to the Company, or by any of its service providers, customers or other business partners. Confidential Information includes, without limitations, all financial information, legal, corporate, marketing, research, technical, personnel and supplier information and any other information, in whatever form or media, specifically identified as confidential by the Company, or the nature of which is such that it would generally be considered confidential in the industry in which the Company operates, or which the Company is obligated to treat as confidential or proprietary.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Consultant acknowledges that the Company will disclose to the Consultant
or allow the Consultant access to Confidential Information. The Consultant further acknowledges that this information is of significant
value to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Consultant agrees that nothing in this Agreement, or otherwise,
shall allow the Consultant to acquire any right, title or interest in or to the Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During the term of this Agreement and thereafter, the Consultant shall
maintain in strict confidence all Confidential Information disclosed to him, or to which he obtains access, as a result of this Agreement,
or otherwise. The Consultant shall take all necessary precautions against unauthorized disclosure of the Confidential Information during
the term of this Agreement and thereafter. Without limitation, the Consultant shall not, directly or indirectly, disclose, allow access
to, transmit or transfer Confidential Information to a third party without the Company's consent, or use or reproduce such Confidential
Information, in any manner, except as reasonably required to fulfil the purposes of this Agreement. The Consultant shall ensure that every
copy he makes of any Confidential Information is clearly marked, or otherwise identified, as confidential and proprietary to the Company,
and is stored in a secure location while in the Consultant's possession, control, charge or custody. Notwithstanding the foregoing of
this Section, to the extent the Consultant can establish he is required by law to disclose Confidential Information, he shall be permitted
to do so, provided that notice of this requirement to disclose is first delivered to the Company, so that it may contest this potential
disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The non-disclosure obligations under this Agreement shall not apply
to Confidential Information which the Consultant can establish:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is, or becomes, readily available to the public other than through a
breach of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is disclosed lawfully and not in breach of any contractual or other
legal obligation to him by a third party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) was independently developed by the Consultant without the use of the
Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Consultant also agrees that the unauthorized disclosure of any Confidential
Information during his tenure with the Company could constitute just cause for termination of his Services.

8. Conflict of Interest

The Consultant will immediately advise the Company if he becomes involved in any capacity, including, as an officer, director, employee, or consultant, with any person, business, or business opportunity that is, or could reasonably be expected in the future to be, in conflict or competition with the business or business prospects of the Company. In the event of any such conflict, the Consultant will govern himself with the standard of care imposed by applicable corporate laws in respect of fiduciaries of both organizations.

9. Governing Law.

This Agreement shall be governed and construed in accordance with the laws of the Province of British Columbia, and the federal laws of Canada applicable therein.

10. No Conflict.

The Consultant represents that the Consultant's retention as an advisor by the Company does not and will not breach any other agreement to keep in confidence any proprietary information acquired by the Consultant in confidence prior to the Consultant's retention as an advisor by such other agreement, either written or oral. The Consultant understands that as part of the consideration for the offer to retain the Consultant as an advisor, and of the Consultant's retention as an advisor by the Company, that the Consultant has not brought and will not bring with the Consultant to the Company or use in the performance of the Consultant's responsibilities at the Company any equipment, supplies, facility or trade secret information of any current or former employer which are not generally available to the public. The Consultant also understands that, in the Consultant's retention as an advisor with the Company, the Consultant is not to breach any obligation of confidentiality that the Consultant has to others, and the Consultant agrees that the Consultant shall fulfill all such obligations during the Consultant's retention as an advisor with the Company.

11. Mediation and Arbitration.

Any dispute arising under this Agreement shall be resolved through a mediation – arbitration approach. The parties agree to select a mutually agreeable, neutral third party to help them mediate any dispute that arises under the terms of this Agreement. Costs and fees associated with the mediation shall be shared equally by the parties. If the mediation is unsuccessful, the parties agree that the dispute shall be decided by a single arbitrator by binding arbitration. The decision of the arbitrator shall be final and binding on the parties and may be entered and enforced in any court of competent jurisdiction by either party. The prevailing party in the arbitration proceedings shall be awarded reasonable attorney fees, expert witness costs and expenses, and all other costs and expenses incurred directly or indirectly in connection with the proceedings, unless the arbitrator shall for good cause determine otherwise.

12. Advice of Counsel.

By executing this Agreement the Consultant confirms that he has had the opportunity to seek the advice of independent legal counsel, or has waived his right thereto, and has read and understood all of the terms and provisions of this agreement.

13. Miscellaneous

This Agreement shall be binding upon and shall inure to the benefit of the Company's successors, transferees and assigns. Any amendment to this Agreement must be in writing executed by the Consultant and the Company. The Company and the Consultant acknowledge that any amendment of this Agreement (including, without limitation, any extension of this Agreement or any change from the terms of Section 5 in the consideration to be provided to the Consultant with respect to services to be provided hereunder) or any departure from the terms or conditions hereof with respect to the Consultant's consulting services for the Company, is subject to the Company's and the Consultant's prior written approval. This Agreement supersedes any prior consulting or other similar agreements between the Consultant and the Company with respect to the subject matter hereof. All notices hereunder shall be deemed to have been given, if made in writing, when mailed, postage prepaid, to the parties at the addresses set forth above, or to such other addresses as a party shall specify to the other. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.

14. Severability.

If any provision of this Agreement is held to be unenforceable under applicable law, such provision shall be severed and the remaining provisions of this Agreement shall continue in full force and effect.

15. Counterparts.

This Agreement may be executed and delivered in one or more counterparts, and each counterpart when so executed and delivered will be deemed an original, and all such counterparts will together constitute one and the same document.

**IN WITNESS WHEREOF**, the parties hereto have executed this Agreement effective as the day and year first written above.

---

| | | |
|:---|:---|:---|
| **Exxel Pharma, Inc** | **Exxel Pharma, Inc** | **Consultant** |
| Per: | | |
|  | *Authorized Signatory* | Daniele Piomelli |

---

## Exhibit 10.8

**Exhibit 10.8**

**CONSULTING AGREEMENT**

This Consulting Agreement (the "Agreement") is made effective as of April 9, 2025 (the "Effective Date"), by and between Exxel Pharma Inc., a company incorporated under the laws of British Columbia, with its principal place of business being 12635 E. Montview Blvd, Aurora, CO 80045 (the "Company") and Foresite Advisors, LLC, a Pennsylvania limited liability corporation, with its principal place of business being 320 West Mermaid Lane, Philadelphia, PA 19118 ("Foresite"). The Company and Foresite are herein sometimes referred to individually as a "Party" and collectively as the "Parties."

WHEREAS, the Company possesses know-how and proprietary technology related to the development of personalized vaccine immunotherapies for the treatment and prevention of cancers; and

WHEREAS, Foresite has expertise in financial and corporate operations and strategy; and

WHEREAS, Foresite desires to serve as an independent consultant for the purpose of providing the Company with certain strategic and financial advice and support services, as more fully described in <u>EExhibit A</u> attached hereto, (the "Services"); and

WHEREAS, the Company wishes to engage Foresite on the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which are hereby acknowledged, the Parties agree and covenant as follows.

1. <u>Services of Consultant</u>. Foresite will assist the
Company with matters relating to the Services. The Services are more fully described in <u>Exhibit A</u> attached hereto. Foresite and
the Company will review the Services on a monthly basis to prioritize and implement the tasks listed on <u>Exhibit A</u>.

2. <u>Compensation for Services</u>. In full consideration of
Foresite's full, prompt and faithful performance of the Services, the Company shall compensate Foresite a consulting fee more fully
described in <u>Exhibit A</u> (the "Consulting Fee"). Foresite shall, from time to time, but not more frequently than twice
per calendar month, invoice the Company for Services rendered, and such invoice will be paid upon fifteen (15) days of receipt. Each
month the Parties shall evaluate jointly the current fee structure and scope of Services. Foresite reserves the right to an annual increase
in consultant rates of up to 4%, effective January 1 of each year. Upon termination of this Agreement pursuant to Section 3, no compensation
or benefits of any kind as described in this Section 2 shall be payable or issuable to Foresite after the effective date of such termination.
In addition, the Company will reimburse Foresite for reasonable out-of-pocket business expenses, including but not limited to travel
and parking, incurred by Foresite in performing the Services hereunder, upon submission by Foresite of supporting documentation reasonably
acceptable to the Company. Any such accrued expenses in any given three (3) month period that exceed one thousand dollars ($1,000) shall
be submitted to the Company for its prior written approval.

All Foresite invoices and billing matters should be addressed to:

Company Accounts Payable Contact:

Soren Mogelsvang<br> soren.mogelsvang@exxelpharma.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;720.261.1109 Exxel Pharma Inc

12635 E Montview Blvd, Ste 100

Aurora, CO 80045

All Company payments and billing inquiries should be addressed to:

Foresite Accounting: Robert Dickey IV

robdickey4@gmail.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(610) 864-6470

Foresite Advisors

320 West Mermaid Lane

Philadelphia, PA 19118

3. <u>Term and Termination</u>. The term of this Agreement
will commence on the Effective Date and will continue through the anniversary of such date in the next calendar year (the "Term").
This Agreement may be extended for an additional period by mutual written agreement. This Agreement may be terminated by either Party
hereto: (a) with Cause (as defined below), upon thirty (30) days prior written notice to the other Party; or (b) without cause upon sixty
(60) days prior written notice to the other Party. For purposes of this Section 3, "Cause" shall include: (i) a breach of
the terms of this Agreement which is not cured within thirty (30) days of written notice of such default or (ii) the commission of any
act of fraud, embezzlement or deliberate disregard of a rule or policy of the Company.

4. <u>Commitment</u>. Foresite will devote such time to perform
the Services under this Agreement as may reasonably be required.

5. <u>Place of Performance</u>. Foresite will perform the Services
at such locations upon which the Company and Foresite may mutually agree. Foresite will not, without the prior written consent of the
Company, perform any of the Services at any facility or in any manner that might give anyone other than the Company any rights to or
allow for disclosure of any Confidential Information (as defined below).

6. <u>Compliance with Policies and Guidelines</u>. Foresite
will perform the Services in accordance with all rules or policies adopted by the Company that the Company discloses in writing to Foresite.

7. <u>Information</u>. Foresite
acknowledges and agrees that during the course of performing the Services, the Company may furnish, disclose or make available to Foresite
information, including, but not limited to, material, compilations, data, formulae, models, patent disclosures, procedures, processes,
business plans, projections, protocols, results of experimentation and testing, specifications, strategies and techniques, and all tangible
and intangible embodiments thereof of any kind whatsoever (including, but not limited to, any apparatus, biological or chemical materials,
animals, cells, compositions, documents, drawings, machinery, patent applications, records and reports), which is owned or controlled
by the Company and is marked or designated as confidential at the time of disclosure or is of a type that is customarily considered to
be confidential information (collectively the "Confidential Information"). Foresite acknowledges that the Confidential Information
or any part thereof is the exclusive property of the Company and shall not be disclosed to any third party without first obtaining the
written consent of the Company. Foresite further agrees to take all practical steps to ensure that the Confidential Information, and
any part thereof, shall not be disclosed or issued to its affiliates, agents, or employees, except on like terms of confidentiality.
The above provisions of confidentiality shall apply for a period of five (5) years.

8. <u>Intellectual Property</u>. Foresite agrees that all ideas,
inventions, discoveries, creations, manuscripts, properties, innovations, improvements, know-how, designs, developments, apparatus, techniques,
methods, and formulae that Foresite conceives, makes, develops or improves as a result of performing the Services, whether or not reduced
to practice and whether or not patentable, alone or in conjunction with any other party and whether or not at the request or upon the
suggestion of the Company (all of the foregoing being hereinafter collectively referred to as the "Inventions"), shall be
the sole and exclusive property of the Company. Foresite hereby agrees in consideration of the Company's agreement to engage Foresite
and pay compensation for the Services rendered to the Company and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged that Foresite shall not, without the prior written consent of the Company, directly or indirectly, consult
for, or become an employee of, any company which conducts business in the Field of Interest anywhere in the world. As used herein, the
term "Field of Interest" shall mean the research, development, manufacture and/or sale of the products resulting from the
Company's technology. The limitations on competition contained in this Section 8 shall continue during the time that Foresite performs
any Services for the Company, and for a period of three (3) months following the termination of any such Services that Foresite performs
for the Company. If any part of this section should be determined by a court of competent jurisdiction to be unreasonable in duration,
geographic area, or scope, then this Section 8 is intended to and shall extend only for such period of time, in such area and with respect
to such activity as is determined to be reasonable. Except as expressly provided herein, nothing in this Agreement shall preclude Foresite
from consulting for or being employed by any other person or entity.

9. <u>Non-Solicitation</u>. All
personnel representing Foresite are employees or contracted agents of Foresite. Accordingly, they are not retainable as employees or
contractors by the Company and the Company hereby agrees not to solicit, hire or retain their services for so long as they are employees
or contracted agents of Foresite and for two (2) years thereafter. Should the Company violate this restriction, it agrees to pay Foresite
liquidated damages equal to thirty percent (30%) of the employee's starting annual base salary and target annual bonus for each
Foresite contracted agent hired by the Company in violation of this Agreement, plus Foresite's reasonable attorneys' fees
and costs incurred in enforcing this agreement should the Company fail or refuse to pay the liquidated damages amount in full within
thirty (30) days following its violation .

10. <u>Placement Services</u>. In the event that Foresite refers
a potential employee to the Company and that individual is hired, Foresite shall receive a fee equal to twenty percent (20%) of the employee's
starting annual base salary and target annual bonus. This fee is due and owing whether an individual is hired, directly or indirectly
on a permanent basis or on a contract or consulting basis by the Company, as a result of Foresite's efforts within one (1) year
of the date applicant(s) are submitted to the Company. Such payment is due within thirty (30) days of the employee's start date.

11. <u>No Implied Warranty</u>. Except for any express warranties
stated herein, the Services are provided on an "as is" basis, and the Company disclaims any and all other warranties, conditions,
or representations (express, implied, oral or written), relating to the Services or any part thereof. Further, in performing the Services,
Foresite is not engaged to disclose illegal acts, including fraud or defalcations, which may have taken place. The foregoing notwithstanding,
Foresite will promptly notify the Company if Foresite becomes aware of any such illegal acts during the performance of the Services.
Because the Services do not constitute an examination in accordance with standards established by the American Institute of Certified
Public Accountants (the "AICPA"), Foresite is precluded from expressing an opinion as to whether financial statements provided
by the Company are in conformity with generally accepted accounting principles or any other standards or guidelines promulgated by the
AICPA, or whether the underlying financial and other data provide a reasonable basis for the statements.

12. <u>Indemnification</u>. Each Party hereto agrees to indemnify
and hold the other Party hereto, its directors, officers, agents, and employees harmless against any claim based upon circumstances alleged
to be inconsistent with such representations and/or warranties contained in this Agreement. Further, the Company shall indemnify and
hold harmless Foresite and any of its subcontractors against any claims, losses, damages or liabilities (or actions in respect thereof)
that arise out of or are based on the Services performed hereunder, except for any such claims, losses, damages or liabilities arising
out of the gross negligence or willful misconduct of Foresite or any of its subcontractors. The Company will endeavor to add Consultant
and any applicable subcontractor to its insurance policies as additional insureds.

13. <u>Independent Contractor</u>. Foresite is not, nor shall
Foresite be deemed to be at any time during the term of this Agreement, an employee of the Company, and therefore Foresite shall not
be entitled to any benefits provided by the Company to its employees, if applicable. Foresite's status and relationship with the
Company shall be that of an independent contractor and consultant. Foresite shall not state or imply, directly or indirectly, that Foresite
is empowered to bind the Company without the Company's prior written consent. Nothing herein shall create, expressly or by implication,
a partnership, joint venture or other association between the parties. Foresite will be solely responsible for payment of all charges
and taxes arising from his or her relationship to the Company as a consultant.

14. <u>Records</u>. Upon termination of Foresite's relationship
with the Company, Foresite shall deliver to the Company any property or Confidential Information of the Company relating to the Services
which may be in its possession including products, project plans, materials, memoranda, notes, records, reports, laboratory notebooks,
or other documents or photocopies and any such information stored using electronic medium.

15. <u>Notices</u>. Any notice under this Agreement shall be
in writing (except in the case of verbal communications, emails and teleconferences updating either Party as to the status of work hereunder)
and shall be deemed delivered upon personal delivery, one day after being sent via a reputable nationwide overnight courier service or
two days after deposit in the mail or on the next business day following transmittal via facsimile. Notices under this Agreement shall
be sent to the following representatives of the Parties:

If to the Company:

---

| | |
|:---|:---|
| Name: | Soren Mogelsvang |
| Title: | President and CEO |
| Address: | 12635 E Montview |
|  | Blvd, Ste 100 |
|  | Aurora, CO 80045 |
| Phone: | 720.261.1109 |

---

E-mail:

soren.mogelsvang@exxelpharma.com

If to Foresite:

---

| | |
|:---|:---|
| Name: | Robert Dickey IV |
| Title: | Managing Director |
| Address: | 320 West Mermaid Lane |
|  | Philadelphia, PA 19118 |
| Phone: | (610) 864-6470 |
| E-mail: | robdickey4@gmail.com |

---

16. <u>Assignment and Successors</u>. This Agreement may not
be assigned by a Party without the consent of the other which consent shall not be unreasonably withheld, except that each Party may
assign this Agreement and the rights, obligations and interests of such Party, in whole or in part, to any of its Affiliates, to any
purchaser of all or substantially all of its assets or to any successor corporation resulting from any merger or consolidation of such
Party with or into such corporation.

17. <u>Force Majeure</u>. Neither Party shall be liable for failure
of or delay in performing obligations set forth in this Agreement, and neither shall be deemed in breach of its obligations, if such
failure or delay is due to natural disasters or any causes beyond the reasonable control of either Party. In the event of such force
majeure, the Party affected thereby shall use reasonable efforts to cure or overcome the same and resume performance of its obligations
hereunder.

18. <u>Disclosure of Relationship</u>. The Company agrees that
Foresite shall have the right to publish or otherwise disclose in marketing materials and on its website the relationship and the general
services created and performed under this Agreement, in each case at its own expense; provided, however, such disclosure shall not identify
the amount or nature of fees earned.

19. <u>Headings</u>. Section headings are intended for convenience
of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

20. <u>Integration; Severability</u>. This Agreement is the sole
agreement with respect to the subject matter hereof and shall supersede all other agreements and understandings between the Parties with
respect to the same. If any provision of this Agreement is or becomes invalid or is ruled invalid by any court of competent jurisdiction
or is deemed unenforceable, it is the intention of the Parties that the remainder of the Agreement shall not be affected.

21. <u>Governing Law</u>. This Agreement shall be governed by
and construed in accordance with the laws of the Commonwealth of Pennsylvania, excluding choice of law principles. The Parties agree
that any action or proceeding arising out of or related in any way to this Agreement shall be brought solely in a Federal or State court
of competent jurisdiction sitting in the Commonwealth of Pennsylvania.

22. <u>Counterparts</u>. This Agreement may be executed in counterparts,
each of which will be deemed an original, but all of which together will constitute
one agreement.

If you are in agreement with the foregoing, please sign where indicated below, whereupon this Agreement shall become effective as of the Effective Date.

---

| | |
|:---|:---|
| FORESITE ADVISORS, LLC | EXXEL PHARMA INC. |
| By: | By: |
| Print Name: Robert Dickey IV | Print Name: Soren Mogelsvang |
| Title: Managing Director | Title: President and CEO |
| Date: | Date: April 9, 2025 |

---

**<u>E XHIBIT A</u>**

<u>Description of Services and Schedule of Fees</u>

Foresite will perform mutually agreed to finance and accounting functions which are necessary to support the management and operations of the Company, certain of which are set forth below.

**<u>Chief Financial Officer Services:</u>**

● Ongoing evaluation of financing alternatives

● Review and finalization of Teaser, Non-confidential slide deck, Confidential slide deck

● Interactions with the auditors

● Assist in budget preparation

● Review of S-1 drafts and participation in drafting sessions

● Participation in weekly updates

● Board of Directors' meeting preparation, support and attendance as requested

● Interaction with investment bankers

● Participation in roadshow presentations

● Assist in other activities, as requested

**Fees:**

---

| | |
|:---|:---|
| **Chief Financial Officer: Robert Dickey IV** | **$300/hour** |

---

**Stock Options:**

Initial grant of 20,000 options, with an exercise price of $1.25, vested equally over ten (10) quarters. Accordingly, 2,000 will be vested at the end of each quarter, starting on June 30, 2025, and ending on September 30, 2027

## Exhibit 10.9

**Exhibit 10.9**

**<u>**TABLE OF CONTENTS**</u>**

I. SECURITIES PURCHASE AGREEMENT

II. DISCLOSURE SCHEDULES

III. EXHIBIT A – CERTIFICATE OF INCORPORATION

IV. EXHIBIT B – DEBENTURE

V. EXHIBIT C – ESCROW AGREEMENT

VI. EXHIBIT D – FORM OF LOCK-UP AGREEMENT

VII. EXHIBIT E – SECRUITY AGREEMENT

VIII. EXHIBIT F – ACCREDITED INVESTOR QUESTIONNAIRE

IX. EXHIBIT G – SUBSIDIARY GUARANTEE

X. EXHIBIT H – RISK FACTORS

XI. EXHIBIT I – BENEFICIAL CAPITAL STOCKHOLDER LOCK-UP AGREEMENT

**SECURITIES PURCHASE AGREEMENT**

This Securities Purchase Agreement (this "**Agreement**") is dated as of November 19, 2024, by and among Exxel Pharma Inc., a corporation organized under the laws of the Province of British Columbia, Canada (the "**Company**"), and the purchasers identified on the signature pages hereto (each, an "**Initial Purchaser**" and, including their respective successors and permitted assigns, a "**Purchaser**").

**WHEREAS**, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the "**Securities Act**"), and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

**NOW, THEREFORE,** in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

**ARTICLE I. DEFINITIONS**

**Section 1. <u>Definitions</u>**. In addition to the terms defined elsewhere in this Agreement in this Agreement: (a) capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Debentures (as defined herein) and/or the Certificate of Incorporation (as defined herein), and (b) the following terms have the meanings set forth in this <u>Section 1</u>:

"<u>Acquiring Person</u>" shall have the meaning ascribed to such term in <u>Section 4.7</u>.

"<u>Action</u>" shall have the meaning ascribed to such term in <u>Section 3.1(j)</u>.

"<u>Affiliate</u>" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

"<u>Board of Directors</u>" means the board of directors of the Company.

<u>"Business Day</u>" means any day except Saturdays, Sundays, any day that is a federal holiday in the United States and any day on which the Federal Reserve Bank of New York is not open for business.

<u>"Certificate of Incorporation</u>" means the Amended and Restated Certificate of Incorporation of the Company in form attached hereto as **Exhibit A**.

"<u>Closing</u>" means the closing of the purchase and sale of the Securities pursuant to <u>Section 2.1</u>.

"<u>Closing Date</u>" means the Trading Day on which all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers' obligations to pay the Subscription Amount and (ii) the Company's obligations to deliver the Securities, in each case, have been satisfied or waived. Pursuant to the terms of this Agreement, there may be one or more Closing Dates hereunder.

"<u>Commission</u>" means the United States Securities and Exchange Commission.

"<u>Common Shares</u>" means the common stock of the Company, par value $0.00 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

"<u>Common Share Equivalents</u>" means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Shares, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Shares.

"<u>Company IP</u>" means all Intellectual Property or Intellectual Property Rights owned, in whole or in part, by the Company or its Subsidiaries or exclusively licensed to the Company or its Subsidiaries, including the Company Registered Intellectual Property.

"<u>Company-Owned IP</u>" means Company IP that is owned or purported to be owned by the Company or its Subsidiaries.

"<u>Company Registered Intellectual Property</u>" means all United States, international and foreign (a) patents and patent applications (including provisional applications), (b) registered service marks and trademarks and applications to register service marks and trademarks, (c) registered copyrights and applications for copyright registration, and (d) internet domain name registrations, in each case, of clause (a) through (d) that is Company-Owned IP and which have not expired.

"<u>Company Systems</u>" means all of the following used by or for, or otherwise relied on by, the Company or its Subsidiaries: servers, hardware systems, software, websites, databases, circuits, networks and other computer and telecommunication assets and equipment, and all other information technology equipment and related items of automated, computerized or software systems, together with all information contained therein or transmitted thereby, including any outsourced systems and processes (e.g., hosting locations) and all associated documentation.

"<u>Conversion Price</u>" shall have the meaning ascribed to such term in the Debentures.

"<u>Conversion Shares</u>" means, collectively, the Common Shares issuable pursuant to the terms of the Debentures or the Warrant Shares.

"<u>Data Security Requirements</u>" means, collectively, all of the following to the extent relating to Personal Data, payment card data, or other protected information relating to individuals or otherwise relating to privacy, security, or security breach notification requirements and applicable to the business of the Company or its Subsidiaries: (a) the Company's or its Subsidiaries' own rules, policies, and procedures (whether physical or technical in nature, or otherwise), (b) all applicable federal, state, local laws and regulations, and (c) material contracts.

"<u>Debentures</u>" means the Senior Secured Convertible Debentures dated as of the Closing Date, due nine (9) months from their date of issuance, unless extended pursuant to the terms thereunder, issued by the Company to the Purchasers hereunder, in the form of **Exhibit B** attached hereto.

"<u>Disclosure Schedules</u>" means the Disclosure Schedules delivered by the Company concurrently with the execution and delivery of this Agreement.

"<u>Escrow Agent</u>" shall have the meaning ascribed to such term in <u>Section 2.2(b)</u>.

"<u>Escrow Agreement</u>" means the Escrow Agreement, dated the date hereof, by and among the Company, the Placement Agent and the Escrow Agent, in the form of **Exhibit C** attached hereto.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>FCPA</u>" means the Foreign Corrupt Practices Act of 1977, as amended.

"<u>GAAP</u>" shall have the meaning ascribed to such term in <u>Section 3.1(h)</u>.

"<u>Governmental Authority</u>" means any nation, sovereign or government, any state, province, territory or other political subdivision thereof, any municipality, any agency, authority or instrumentality thereof and any entity or authority exercising executive, legislative, taxing, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing, including any central bank stock exchange regulatory body arbitrator, public sector entity, supra-national entity and any self-regulatory organization.

"<u>Guaranty</u>" means the Guaranty by and among the Company and its Subsidiaries, and the Collateral Agent in the form attached hereto as **Exhibit G**.

"<u>Indebtedness</u>" shall have the meaning ascribed to such term in <u>Section 3.1(x)</u>.

"<u>Initial Closing Amount</u>" means up to an aggregate of $600,000 in principal amount of Debentures representing cash payments from Purchasers of $600,000 based on the 12.5% Original Issue Discount on the Debentures.

"<u>Intellectual Property</u>" shall mean and includes algorithms, APIs, application program interfaces, customer lists, databases, schemata, data collections, design documents and analyses, diagrams, documentation, domain names, drawings, formulae, inventions (whether or not patentable), internet protocol addresses, know-how, literary works, logistics information, logos, maps, marketing plans and collateral, marks (including names, logos, slogans, and trade dress), methods, methodologies, network configurations, architectures, topologies and topographies, processes, program listings, programming tools, proprietary information, protocols, sales data, schematics, specifications, Software, Software code (in any form including source code and executable or object code), subroutines, user interfaces, techniques, URLs, Web sites, works of authorship, and other forms of technology (whether or not embodied in any tangible form and including all tangible embodiments of the foregoing such as blueprints, compilations of information, instruction manuals, notebooks, prototypes, reports, samples, studies, and summaries).

"<u>Intellectual Property Rights</u>" means all proprietary rights to or in Intellectual Property in any jurisdiction throughout the world, including the following: (a) patents and applications therefor, and patent disclosures and any reissue, continuation, continuation-in-part, correction, provisional, divisional, extension or reexamination thereof, (b) inventions, trade secrets, confidential information, and know-how, (c) trademarks, service marks, trade names, trade dress, logos, slogans, brand names, Internet domain names, and other indicia of source of origin and all registrations and applications for registration thereof together with all of the goodwill associated therewith, (d) copyrights and all works of authorship (whether or not copyrightable, and whether registered or unregistered), including mask works rights, database rights and moral rights, and registrations and applications therefor, and (e) rights in Software.

"<u>Knowledge</u>" means, with respect to the Company, the actual knowledge of the following Company officers: Soren Mogelsvang, President & Chief Executive Officer.

"<u>Legend Removal Date</u>" shall have the meaning ascribed to such term in <u>Section 4.1(c)</u>.

"<u>Liens</u>" means any lien (statutory or other) mortgage, pledge, hypothecation, assignment, security interest, encumbrance, charge, claim, right of first refusal, preemptive right, restriction on transfer or similar restriction or other security arrangement of any kind or nature whatsoever, including any conditional sale or other title retention agreement and any capital or financing lease having substantially the same economic effect as any of the foregoing.

"<u>Lock-Up Agreement</u>" means the Lock-Up Agreement by and between the Company and the Noteholders (as defined below) in the form of **Exhibit D** attached hereto and the Lock-Up Agreement by and between the Company and the beneficial owners of capital stock of the Company in the form of **Exhibit I** attached hereto.

"<u>Material Adverse Effect</u>" shall have the meaning assigned to such term in <u>Section 3.1(b)</u>.

"<u>Material Permits</u>" shall have the meaning ascribed to such term in <u>Section 3.1(m)</u>.

"<u>Maximum Amount</u>" means an aggregate of $675,000 in principal amount of Debentures representing cash payments from Purchasers of $600,000 based on the 12.5% Original Issue Discount on the Debentures.

"<u>Maximum Rate</u>" shall have the meaning ascribed to such term in <u>Section 5.17</u>.

"<u>Minimum Subscription Amount</u>" means $125,000.

"<u>Offering</u>" means the offering of Debentures and Warrant Shares pursuant to this Agreement and the other Transaction Documents.

"<u>Offering Period</u>" means the period commencing upon the marketing of any Securities and ending on the Termination Date.

"<u>Ordinary Course of Business</u>" means the ordinary and usual course of normal day-to-day operations of the business of the Company through the date hereof consistent with past custom and practice.

"<u>Original Issue Discount</u>" shall have the meaning ascribed to such term in the Debentures, subject to adjustment as provided therein.

"<u>Permitted Equity Issuances</u>" means issuances or sales of (a) Common Shares by the Company, prior to the closing of a Qualified Event or Qualified Offering of up to $5,000,000 in the aggregate; (b) Common Shares, restricted stock units or options to employees, consultants, officers or directors of the Company pursuant to any stock or option plan duly adopted for such purpose by the Board of Directors for services rendered to the Company, (c) securities upon the exercise, exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into Common Shares issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities, (d) securities issued pursuant to acquisitions, mergers or any other strategic transactions, provided that such acquisitions, mergers and other strategic transactions shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities; (e) securities issued as a result of the recapitalization or reorganization of any securities of the Company; (f) securities issued pursuant to a Qualified Offering or Qualified Event, or (g) Securities pursuant to the Transaction Documents.

"<u>Permitted Lien</u>" shall have the meaning ascribed to that term in the Security Agreement.

"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"<u>Personal Data</u>" means (a) information related to, or reasonably capable of being associated or linked with, an identified or identifiable individual or household (e.g., name, address, telephone number, email address, financial account number, government-issued identifier) or device, (b) any other data used or intended to be used or which allows one to identify, contact, or precisely locate an individual or device, including any internet protocol address or other persistent identifier, or (c) any other similar information or data regulated by or defined as "personal information" or similar terms under applicable federal, state and local laws and regulations.

"<u>Placement Agent</u>" means Joseph Gunnar & Co., LLC.

"<u>Placement Agent Counsel</u>" means Sichenzia Ross Ference Carmel LLP with offices located at 1185 Avenue of the Americas 31<sup>st</sup> Fl., New York, NY 10036.

"<u>Principal Amount</u>" means, as to each Purchaser, the amounts set forth below such Purchaser's signature block on the signature pages hereto next to the heading "**Principal Amount**," in United States Dollars.

"<u>Proceeding</u>" means an action, suit, litigation, arbitration, investigation, complaint, dispute, contest, hearing, inquiry, inquest, audit, examination or other proceeding against, affecting or purporting to affect an applicable Person or its property, whether civil, criminal, administrative, investigative or appellate, in law or equity before any arbitrator or Governmental Authority.

"<u>PubCo</u>" means a publicly traded corporation whose common stock is registered under the Exchange Act and listed on a national securities exchange.

"<u>Public Information Failure</u>" shall have the meaning ascribed to such term in <u>Section 4.3(b)</u>.

"<u>Public Information Failure Payments</u>" shall have the meaning ascribed to such term in <u>Section 4.3(b)</u>.

"<u>Purchaser Party</u>" shall have the meaning ascribed to such term in <u>Section 4.10</u>.

"<u>Qualified Event</u>" means the direct listing of the Company's securities on a U.S. national securities exchange, SPAC merger, or reverse merger with a U.S. nationally listed public company.

"<u>Qualified Financing</u>" means the initial public offering of the Company's securities on a U.S. national securities exchange with gross proceeds of at least $5,000,000.

"<u>Qualified Offering</u>" shall mean an initial public offering of the Company's securities on a U.S. national securities exchange with gross proceeds of at least $5,000,000, at the closing of which the Company's securities are listed on a U.S. national securities exchange.

"<u>Qualified Offering Price</u>" shall mean the price per share of the securities offered (or price per unit, if units are offered in the Qualified Offering) in the Qualified Offering. For the avoidance of doubt, if a unit includes more than one Common Share, "Qualified Offering Price" shall mean the unit price divided by the number of shares of Common Stock contained in a unit.

"<u>Registration Statement</u>" shall have the meaning ascribed to such term in <u>Section 4.20</u>.

"<u>Registrable Securities</u>" means Conversion Shares and any Common Shares issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the Conversion Shares; *provided*, *however*, that any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so long as (a) a Registration Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable Securities have been disposed of by the Purchasers in accordance with such effective Registration Statement, (b) such Registrable Securities have been previously sold in accordance with Rule 144, or (c) such securities become eligible for resale without volume or manner-of-sale restrictions and without current public information pursuant to Rule 144 as set forth in a written opinion letter of counsel to such effect based upon a representation letter or other customary documentation reasonably requested by the Company from the Purchasers.

"<u>Regulation D</u>" means Regulation D as promulgated under the Securities Act.

"<u>Required Approvals</u>" shall have the meaning ascribed to such term in <u>Section 3.1(e)</u>.

"<u>Required Holders</u>" means holders of the Debentures holding at least 50% plus $1.00 of the Principal Amount of the Debentures.

"<u>Reverse Takeover</u>" means a merger or share exchange by the Company with a PubCo and as a result of which the holders of the Company's outstanding shares of Common Stock on a fully- diluted basis will own in excess of 50% of the outstanding shares of Common Stock of PubCo.

"<u>Rule 144</u>" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

"<u>Rule 424</u>" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

"<u>Schedules</u>" means the Disclosure Schedules.

"<u>Securities</u>" means the Debentures, the Warrants, and the Conversion Shares.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Security Incident</u>" means any (a) breach of security, phishing incident, ransomware or malware attack affecting any Company Systems, or (b) incident in which confidential information or Personal Data was or may have been accessed, disclosed, destroyed, processed, used, or exfiltrated in an unauthorized manner (whether any of the foregoing was possessed or controlled by the Company or its Subsidiaries or by another Person on behalf of the Company or its Subsidiaries).

"<u>Short Sales</u>" means all "short sales" as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include locating and/or borrowing shares of Common Stock).

"<u>Software</u>" means all (a) computer programs and software, including firmware, software implementations of algorithms, and software models and methodologies, whether in source code, object code or other form, including libraries, subroutines and other components thereof; (b) data, databases and other compilations of data or information; and (c) all documentation related to the foregoing, including development, diagnostic, support, user and training documentation related to any of the foregoing.

"<u>Subscription Amount</u>" means, as to each Purchaser, the aggregate amount to be paid for the Debentures purchased hereunder as specific on the signature page of this Agreement, *provided* that the Subscription Amount shall not be less than the Minimum Subscription Amount unless the Company determines to accept subscriptions for the Debentures in lesser amounts in its sole discretion.

"<u>Subsequent Financing</u>" shall have the meaning ascribed to such term in <u>Section 4.21</u>.

"<u>Subsidiary</u>" means any subsidiary of the Company as set forth in <u>Schedule 3.1(a)</u>, and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof (*provided*, that for purposes of <u>Section 3.1</u>, the term "Subsidiary" shall not include any such direct or indirect subsidiary of the Company formed or acquired after an applicable Closing Date).

"<u>Security Agreement</u>" means the Security Agreement, of even date herewith, by and among the Company, its Subsidiaries, and the Collateral Agent for the benefit of the Purchasers, in the form of **Exhibit E** attached hereto.

"<u>Termination Date</u>" means the Offering shall terminate if the Initial Closing has not been consummated on or prior to December 15, 2024.

"<u>Trading Day</u>" means a day on which the principal Trading Market is open for trading.

"<u>Trading Market</u>" means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, or the New York Stock Exchange (or any successors to any of the foregoing).

"<u>Transaction Documents</u>" means this Agreement, the Debentures, the Articles of Incorporation, the Security Agreement, the Guaranty, the Lock-Up Agreement, Escrow Agreement, Accredited Investor Questionnaires, all exhibits and schedules thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.

"<u>Transfer Agent</u>" means a qualified transfer agent and any successor transfer agent of the Company. For the purposes of this definition, the Transfer Agent shall be the master shareholder recordkeeping provider and maintain the stockholder ledger and process any changes to it.

"<u>Valuation Cap</u>" means, following a Qualified Financing or Qualified Event, holders of the Debentures will convert the Debentures into securities of the Company sold in a Qualified Financing or those listed as the result of a Qualified Event, as applicable, on the date that is ninety (90) days from the closing of a Qualified Financing or Qualified Event at a price per share equal to the lower of (i) 75% of the price at which the Debentures would have been converted at closing of the Qualified Financing or Qualified Event, as applicable, subject to a valuation cap of $25,000,000 and (ii) a 25% discount to the five (5)-day VWAP of the Common Shares prior to the date that is 90 days after the Qualified Financing or Qualified Event, as applicable (the "Conversion Price"), which shall be subject to a conversion floor price of $1.00 per share.

"<u>VWAP</u>" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Shares for such date (or the nearest preceding date) on the Trading Market on which the Common Shares are then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Shares for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Shares are not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Shares are then reported on the Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Shares so reported, or (d) in all other cases, the fair market value of a Common Share as determined by an independent appraiser selected in good faith by the Required Holders, the reasonable fees and expenses of which shall be paid by the Company.

"<u>Waiver Agreements</u>" shall have the meaning ascribed to such term in <u>Section 2.3(b)(i)</u>.

"<u>Warrants</u>" shall mean, warrants to purchase the Company's Common Stock equal to seventy five percent (75%) of the Funding Amount; and an additional fifty percent (50%) of the funding Amount for an extension period.

"<u>Warrant Formula</u>" shall mean, the initial amount of a purchaser's Warrants will be determined by dividing seventy five percent (75%) of such purchaser's pro rata portion of the Funding Amount by the Valuation Cap, and upon the occurrence of an Extension Period, shall be increased by adding an additional number of Warrants determined by dividing fifty percent (50%) of such purchaser's pro rata portion of the Funding Amount by the Valuation Cap. The Warrants shall be exercisable into the Company's Common Stock at any time, at the election of the holder, for a period of thirty- six (36) months from the final closing of the of the Company's bridge financing, at an exercise price per share equal to $0.01.

"Warrant Share" shall mean, each share of Common Stock issuable upon an exercise of a Warrant.

**ARTICLE II.<br> PURCHASE AND SALE**

**Section 2.1 <u>Purchase and Sale</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Debentures**. Subject to the terms and conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, at the Closing, the Company agrees to sell, and the Purchasers agree to purchase, severally and not jointly, an aggregate of up to $675,000 in principal amount of Debentures (representing an aggregate payment from Purchasers of up to $600,000 comprised of subscription amounts (the "**Funding Amount**") and warrants (the "**Warrants**") to purchase the Company's common stock (the "**Common Stock**") in an amount equal to seventy five percent (75%) of the Funding Amount; and an additional fifty percent (50%) of the Funding Amount for an extension period, which shall mean three (3) additional months from the Maturity Date. The Senior Secured Convertible Debentures are based on a 12.5% Original Issue Discount (the "**Maximum Amount**"), as set forth on each Purchaser's signature page hereto. The Debentures may be sold at one or more closings of the Offering (each a "**Closing**," and collectively, the "**Closings**") conducted during the Offering Period until the Termination Date.

**Section 2.2 <u>Closing</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions set forth herein, the initial Closing shall occur upon the funding of the Initial Closing Amount (the "**Initial Closing**" and the date of such Initial Closing, the "**Initial Closing Date**"), with subsequent Closings occurring thereafter at any time and from time to time at the discretion of the Company and the Placement Agent until the Maximum Amount is subscribed (the "**Final Closing Date**"). Each Closing shall take place remotely via the exchange of documents and signatures, or at such other time or at such other date or by such other method as the Company and the Purchasers participating in such Closing may mutually agree upon orally or in writing (the day on which a Closing takes place, the "**Closing Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At each Closing, each Purchaser shall deliver the Subscription Amount stated on such Purchaser's signature page hereto by wire transfer of immediately available funds to the Escrow Agent pursuant to the instructions contained on <u>Schedule 2.1</u> who shall hold such funds in a non-interest bearing escrow account maintained at and by Sichenzia Ross Ference Carmel LLP, (the "**Escrow Agent**"). Upon the Escrow Agent's receipt of the Subscription Amount from one or more Purchasers and the exchange of items set forth in <u>Section 2.2</u>, the Company and the Placement Agent may give notice to the Escrow Agent to arrange a Closing. At any Closing hereunder, the Company shall deliver to each Purchaser its respective Debenture and Warrants, and the Company and each Purchaser shall deliver the other items set forth in <u>Section 2.2</u> deliverable at the Closing. Upon satisfaction of the covenants and conditions set forth in <u>Sections 2.2</u> and <u>2.3</u>, the Closing shall occur as the parties shall mutually agree.

**Section 2.2 <u>Closing Deliveries</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or prior to each Closing Date, unless otherwise specified in this <u>Section 2.2(a)</u>, the Company shall deliver or cause to be delivered to the Placement Agent on behalf of each Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement duly executed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a Debenture with a principal amount equal to such Purchaser's Principal Amount, registered in
the name of such Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Warrants registered in the name of such Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Security Agreement, duly executed by the parties thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Guaranty, duly executed by the parties thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a copy of a good standing certificate of the Company and each Subsidiary, dated
within five (5) days of the Initial Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) on the Initial Closing Date only, a certificate dated as of the Closing Date, duly
executed, and delivered by an officer of the Company, certifying the resolutions of the Company's Board of Directors then in full
force and effect authorizing, to the extent relevant, all aspects of the transaction and the execution, delivery and performance of each
Transaction Document to be executed and the transactions contemplated hereby and thereby; and Investor shall have received a certificate
of the applicable authorities in the Province of British Columbia certifying that the Certificate of Incorporation has been filed and
is effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) on the Initial Closing Date, an opinion of counsel to the Company in form and
substance acceptable to such Initial Purchaser and the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) on the Initial Closing Date (unless specifically requested by the Placement Agent),
an opinion of counsel to the Company, dated as of the Initial Closing Date, in a form and substance reasonably acceptable to the Placement
Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) on the Initial Closing date, an opinion of the Company's home country counsel
(i.e. the Province of British Columbia) in form and substance reasonably acceptable to the Placement Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the Waiver Agreements described in <u>Section 2.3</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) such other approvals, opinions, or documents as the Placement Agent and/or the
Purchasers may request in form and substance reasonably satisfactory to the Placement Agent and/or the Purchasers, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On or prior to the Closing Date, unless otherwise specified in this <u>Section 2.2(b)</u>, each Purchaser (or, where applicable, the Collateral Agent) shall deliver or cause to be delivered to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement duly executed by such Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Purchaser's Subscription Amount as to the Closing by wire transfer to the Escrow Agent to
the account specified in <u>Schedule 2.</u> 1 hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a completed and executed Accredited Investor Questionnaire in the form of **Exhibit F** hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Security Agreement, duly executed by the Collateral Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Guaranty, duly executed by the Collateral Agent.

**Section 2.3 <u>Closing Conditions</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Conditions to the Company's Obligations**. The obligations of the Company to consummate any Closing are subject to the satisfaction, or waiver in accordance with this Agreement, of the following conditions on or before the applicable Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the representations and warranties of each Purchaser contained herein shall be
true and correct as of the applicable Closing Date (unless expressly made as of an earlier date herein in which case they shall be accurate
as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all obligations, covenants and agreements required to be performed by each Purchaser
on or prior to the applicable Closing Date (other than the obligations set forth in <u>Section 2.2</u> to be performed at the Closing)
shall have been performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the delivery by each Purchaser of the applicable items each Purchaser is required to deliver prior to
each Closing Date pursuant to <u>Section 2.2(b)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other conditions contained herein or the other Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Conditions to each Purchaser's Obligations**. The obligations of each Purchaser to consummate any Closing in which he, she or it participates are subject to the satisfaction, or waiver in accordance with this Agreement, of the following conditions on or before each Closing Date, *provided* that <u>Sections 2.3(b)(i)-(iii)</u> shall not be waived:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Waiver Agreements**. As a condition to the consummation of the Initial Closing,
the Company shall have notified all existing lenders regarding the material terms of the transactions contemplated under and by this Agreement
and the other Transaction Documents, and shall have obtained from the requisite number of the Company's existing lenders executed
consents, waiver agreements, and/or allonges, as the case may be, in such form and substance satisfactory to the Placement Agent, pursuant
to which such lenders shall have agreed to waive or relinquish all "most favored nations" provisions, anti-dilution rights,
and other rights obtained in previous financing transactions with the Company that would impede the consummation of the Offering (collectively,
and generally, the "**Waiver Agreements** ").,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company shall have duly adopted the Certificate of Incorporation, which shall
have been filed with the applicable authorities in the Province of British Columbia and become effective under the British Columbia Business
Corporations Acton or prior to the Initial Closing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the representations and warranties of the Company contained in any Transaction
Document shall be true and correct as of each Closing Date (unless expressly made as of an earlier date herein in which case they shall
be accurate as of such date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all obligations, covenants and agreements required to be performed by the Company
on or prior to each Closing Date pursuant to any Transaction Document (other than the obligations set forth in <u>Section 2.2</u> to be
performed at the Closing) shall have been performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the delivery by the Company of the applicable items required to be delivered on
or prior to each Closing Date pursuant to <u>Section 2.2(a)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) no Material Adverse Effect shall have occurred from the date hereof through the applicable Closing
Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any other conditions contained herein or the other Transaction Documents.

**ARTICLE III. <u>REPRESENTATIONS AND WARRANTIES</u>**

**Section 3.1 <u>Representations and Warranties of the Company.</u>** The Company hereby represents and warrants to each Purchaser that the statements contained in this <u>Section 3.1</u> are true and correct as of each Closing Date, in each case subject to the exceptions set forth in the Disclosure Schedules, which Disclosure Schedules are deemed a part hereof. The Disclosure Schedules are arranged in sections corresponding to the numbered and lettered sections contained in this <u>Section 3.1</u>, and shall qualify any representation, warranty or otherwise made herein to the extent of the disclosures set forth in such corresponding sections. The disclosures contained in any section of the Disclosure Schedules shall qualify the representations, warranties or otherwise made in other sections of this <u>Section 3.1</u> only to the extent such disclosures are cross-referenced in the applicable corresponding sections of the Disclosure Schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Subsidiaries**. All of the direct and indirect subsidiaries of the Company are set forth on <u>Schedule 3.1(a)</u>. Except as set forth on <u>Schedule 3.1(a)</u>, the Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid and non- assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Organization and Qualification**. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company's or its Subsidiary's ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a "**Material Adverse Effect**") and, to the Knowledge of the Company, no Proceeding has been instituted or threatened in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Authorization; Enforcement**. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and each of the other Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery by the Company of this Agreement and each of the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the stockholders of the Company in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction Document to which the Company is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **No Conflicts**. Except as disclosed on <u>Schedule 3.1(d)</u>, the execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a party and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company's or any Subsidiary's certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any material Lien upon any of the properties or assets of the Company or any Subsidiary pursuant to, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any material agreement to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or Governmental Authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound; except, in the case of each of clauses (ii) and (iii), such as would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Filings, Consents and Approvals**. Except as disclosed on <u>Schedule 3.1(e)</u>, the Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other Governmental Authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents to which it is a party, other than: (i) the filings required pursuant to <u>Section 4.6</u> of this Agreement, and (ii) the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws (collectively, the "**Required Approvals**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Issuance of the Securities**. The Conversion Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, the Conversion Shares will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents or by applicable laws. Each of the Securities, when issued in accordance with the terms of the Transaction Documents and applicable organizational or charter documents of the Company, will be free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents or by applicable laws. The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the Conversion Shares as provided for in <u>Section 4.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Capitalization**. The authorized capital stock of the Company consists of (i) an unlimited number of Common Shares, $0.00 par value per share, of which 45,693,268 shares are issued and outstanding as of the date hereof No other classes of shares or other securities of the Company are issued or reserved for issuance or outstanding. Except as a result of the purchase and sale of the Securities contemplated herein or as otherwise disclosed on <u>Schedule 3.1(g)</u>, (i) there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any Common Shares or the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional Common Shares or Common Share Equivalents or capital stock of any Subsidiary, (ii) no Person has any "most favored nation" right, right of first refusal, preemptive right, anti-dilution protections, right of participation, or any right to participate in, or triggered by, the transactions contemplated by the Transaction Documents, (iii) the issuance and sale of the Securities pursuant to this Agreement will not obligate the Company or any Subsidiary to issue Common Shares or other securities to any Person (other than the Purchasers), (iv) there are no outstanding securities or instruments of the Company or any Subsidiary with any provision that adjusts the exercise, conversion, exchange or reset price of such security or instrument upon an issuance of securities by the Company or any Subsidiary, (v) there are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings, or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary and (vi) the Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in material compliance with all federal and state securities laws, and none of such outstanding shares were issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities as contemplated herein. Except as set forth on <u>Schedule 3.1(g)</u>, there are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the Knowledge of the Company, between or among any of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Financial Statements**. Complete copies of the Company's financial statements consisting of the unaudited balance as of December 31, 2023 and the related statements of income for the year-ended December 31, 2023 (the "**Financial Statements**") have been delivered to the Purchaser. The Financial Statements are based on the books and records of the Company, and fairly present in all material respects the financial condition of the Company as of the respective dates they were prepared and the results of the operations of the Company for the periods indicated. The Company maintains a standard system of accounting established and administered in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Material Changes; Undisclosed Events, Liabilities or Developments**. Except as set forth on <u>Schedule 3.1(i)</u>, since the date of the latest unaudited financial statements, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any executive officer, director or Affiliate, except pursuant to existing Company stock option plans or similar incentive plans. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated by this Agreement or as set forth on <u>Schedule 3.1(i)</u>, no event, liability, fact, circumstance, occurrence or development has occurred or exists with respect to the Company or its Subsidiaries or their respective businesses, properties, operations, assets or financial condition that is required to be disclosed by the Company under applicable securities laws and for which such required disclosure has not been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Litigation**. Except as set forth in <u>Schedule 3.1(j)</u>, there is no action, suit, inquiry, notice of violation, proceeding or investigation by or before any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an "**Action**") pending or, to the Knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties which (i) challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) to the Knowledge of the Company, could, if there were an unfavorable decision, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor, to the Knowledge of the Company, any director or executive officer thereof, is or has been the subject of any Action involving a claim of violation of or material liability under federal or state securities laws or a claim of breach of fiduciary duty. The Company has not received notice of, and to the Knowledge of the Company, there is not pending or threatened, any investigation by the Commission involving the Company or any current or former director or executive officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any Registration Statement filed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Labor Relations**. Except as set forth in <u>Schedule 3.1(k)</u>, no labor dispute exists or, to the Knowledge of the Company, is threatened with respect to any of the employees of the Company which could reasonably be expected to result in a Material Adverse Effect. None of the Company's or its Subsidiaries' employees is a member of a union that relates to such employee's employment relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement. Except as set forth in <u>Schedule 3.1(k)</u>, to the Knowledge of the Company, no executive officer of the Company or any Subsidiary is in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer would not reasonably be expected to subject the Company or any of its Subsidiaries to any material liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in material compliance with all U.S. federal, state, local and, to the Knowledge of the Company, foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, in each case except where the failure to so comply could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Compliance**. Except as disclosed on <u>Schedule 3.1(l)</u>, neither the Company nor any Subsidiary: (i) is in default under or in violation of, nor has the Company or any Subsidiary received written notice of a claim that it is in default under or that it is in violation of, any material term of any indenture, loan or credit agreement or any other material agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other Governmental Authority or (iii) is in violation of any material provision of any statute, rule, ordinance or regulation of any Governmental Authority to which it is subject, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except, in each case, for defaults, violations or notices thereof that would not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Regulatory Permits**. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities which are reasonably necessary to conduct their respective businesses, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect ("**Material Permits**"), and neither the Company nor any Subsidiary has received written notice of proceedings relating to the revocation or modification of any Material Permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **Title to Assets**. Except as disclosed on <u>Schedule 3.1(n)</u>, the Company and the Subsidiaries have good and marketable title to all personal property owned by them that is material to their respective business, in each case free and clear of all Liens, except for (i) Permitted Liens, (ii) Liens that do not materially affect the value of such property and do not materially interfere with the use made and currently proposed to be made of such property by the Company and the Subsidiaries, as applicable and (iii) Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in material compliance. The Company does not own any real property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (o) Intellectual Property; Cyber Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as set forth on <u>Schedule 3.1(o)</u> of the Disclosure Schedules, the Company and its Subsidiaries exclusively own all right, title and interest in the Company-Owned IP, and have the valid right or license to all other Company IP. The Company-Owned IP is not subject to any Lien, other than (i) Permitted Liens, and (ii) non-exclusive licenses of Intellectual Property or Intellectual Property Rights granted by the Company and its Subsidiaries in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Schedule 3.1(o)</u> of the Disclosure Schedules lists all Company Registered Intellectual Property, including the jurisdictions in which each such item of Company Registered Intellectual Property has been applied for, issued or registered. Each item of Company Registered Intellectual Property is valid, enforceable, and subsisting (or in the case of applications, applied for), and all registration, maintenance and renewal fees due prior to the date of this Agreement in connection with the Company Registered Intellectual Property have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The performance of the Company and its Subsidiaries' obligations under this Agreement will not cause the forfeiture or termination of, nor will it give rise to a right of forfeiture or termination of, any Company-Owned IP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) There is no Action pending or threatened, against the Company and its Subsidiaries relating to any Company-Owned IP and the Subsidiaries have not received any written notice of any claim and no claim has been threatened, in each case that (i) challenges the validity, enforceability, use or ownership of any Company-Owned IP, or (ii) alleges that the Company and/or any of its Subsidiaries infringes, misappropriates or otherwise violates any third party's right in or to such third party's own Intellectual Property or Intellectual Property Rights. To the Company's Knowledge, neither the Company nor the conduct of the business of its Subsidiaries infringes, misappropriates or otherwise violates the Intellectual Property Rights of any other Person. The Company and its Subsidiaries have not, in the past two (2) years, received any written notice from any Person alleging that the Company and/or its Subsidiaries have infringed, misappropriated or otherwise violated, the Intellectual Property Rights of any other Person. To the Company's Knowledge, no Person is infringing, misappropriating or otherwise violating, and has not in the past two (2) years infringed, misappropriated or otherwise violated, any of the Company- Owned IP or any Intellectual Property Rights exclusively licensed to the Company or its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The Company and its Subsidiaries have taken and will continue to take commercially reasonable actions to protect the Company-Owned IP, including the confidentiality of all trade secrets, know-how and confidential information included therein, and the integrity and security of the Company Systems from any unauthorized use, access, disclosure, destruction or modification, and no such use, access, disclosure, destruction or modification has occurred. The Company Systems (A) are sufficient for the current needs of the business of the Company and its Subsidiaries, including as to capacity, scalability and ability to process current and anticipated peak volumes in a timely manner, and (B) are in sufficiently good working condition to effectively perform all information technology operations and include a sufficient number of licenses seats for all software as necessary for the operation of the business of the Company and its Subsidiaries as currently conducted. To the Company's Knowledge, there have been no material unauthorized intrusions, failures, breakdowns, continued substandard performance, or other adverse events affecting any such Company Systems that have caused any substantial disruption of or interruption in or to the use of such Company Systems. The Company and its Subsidiaries maintain commercially reasonable disaster recovery and business continuity plans, procedures and facilities in connection with the operation of their business, acts in compliance therewith, and have taken commercially reasonable steps to test such plans and procedures on a periodic basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) The Company and its Subsidiaries maintain and enforce commercially reasonable policies, procedures, and rules regarding data privacy, protection and security that comply in all material respects with all Data Security Requirements. The Company and its Subsidiaries comply with, and has complied with, all Data Security Requirements in all material respects. The use of any Personal Data by the Company and its Subsidiaries immediately following the Closing in substantially the same manner as such Personal Data was used by the Company and its Subsidiaries prior to the Closing will not result in a material breach or violation of, or constitute a default under, any Data Security Requirement. The Company and its Subsidiaries have not received any written, threatened, complaint, claim or demand from any Person with respect to any Security Incident.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **Insurance**. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. To the Knowledge of the Company, no facts or circumstances exist that would reasonably be expected to prevent the Company or any Subsidiary from renewing its existing insurance coverage as and when such coverage expires, or to obtain similar coverage from similar insurers as may be necessary to continue its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **Transactions With Affiliates and Employees**. Except as set forth on <u>Schedule 3.1(q)</u>, none of the executive officers or directors of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services as executive officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any executive officer, director or, to the Knowledge of the Company, any entity in which any executive officer or director has a substantial interest or is an officer or director, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other Company benefits, including stock option agreements or similar arrangements under any stock option or other incentive plan of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **Certain Fees**. Except with respect to the fees and expenses payable to the Placement Agent as described in <u>Section 5.2</u>, no brokerage or finder's fees or commissions or other remuneration are payable by the Company or any Subsidiaries directly or indirectly to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other similarly situated Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of such other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **Private Placement**. Assuming the accuracy of each Purchaser's representations and warranties set forth in this Agreement and all other Transaction Documents to which such Purchasers are party, no registration under the Securities Act is required for the offer and sale of the Debentures or Warrants by the Company to the Purchasers as contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **Investment Company**. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Debentures, will not be or be an Affiliate of, an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **Registration Rights**. Except as provided in the Transaction Documents, no Person has any right to cause the Company or any Subsidiary to affect the registration under the Securities Act of any securities of the Company or any Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **Material Non-Public Information**. Except with respect to the terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it believes constitutes or might constitute material, non-public information which has not been otherwise disclosed to all Purchasers and/or their agents or counsel. To the Knowledge of the Company, all of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in the Transaction Documents or in any other document or instrument executed and/or delivered by the Purchasers in connection with this Agreement or the consummation of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **No Integrated Offering**. Assuming the accuracy of (x) representations and warranties of prior investors and (y) the Purchasers' representations and warranties set forth in this Agreement and all other Transaction Documents to which the Purchasers are party, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause the Offering to be integrated with prior securities offerings by the Company in a manner that would require the registration under the Securities Act of the sale of the Debentures or Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **Solvency**. Based on the consolidated financial condition of the Company as of the date hereof, after giving effect to the receipt by the Company of the proceeds from the sale of $600,000 of the Debentures hereunder, the Company will have sufficient cash to operate its business as currently operated for a period of six (6) months from the Initial Closing Date. To the Company's Knowledge, no facts or circumstances exist which would reasonably be expected to cause the Company to file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. <u>Schedule 3.1(x)</u> sets forth, as of the date hereof, all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary. For the purposes of this Agreement, "**Indebtedness**" means (x) any liabilities for borrowed money or amounts owed in excess of $100,000 (other than accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company's consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Except as disclosed on <u>Schedule 3.1(x)</u>, neither the Company nor any Subsidiary is in material default with respect to any Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **Taxes**. Except as set forth in <u>Schedule 3.1(y)</u>, (a) each of the Company and its Subsidiaries has duly and timely submitted or caused to be submitted all material Tax returns that it is required to submit on and through the date hereof or the date of the relevant Closing, as applicable (including, in each case, all applicable extensions), and all such Tax returns were accurate and complete in all material respects; (b) each of the Company and its Subsidiaries has timely paid all material taxes and other charges due by the Company to any local or foreign tax authorities, including, without limitation, income taxes, estimated taxes, excise taxes, sales taxes, value added taxes, use taxes, gross receipts taxes, franchise taxes, national insurance taxes, national healthcare contributions, employment and payroll related taxes, property taxes and import duties, whether or not measured in whole or in part by net income (hereinafter, "**Taxes**" or, individually, a "**Tax**") shown as due on any such Tax returns; (c) with respect to all Tax returns of the Company and its Subsidiaries, no audit is in progress with respect to any return for Taxes, and no waiver or agreement is in force for the extension of time for the assessment or payment of any Tax; and (d) all provisions for Tax liabilities of the Company and its Subsidiaries have been made consistent with GAAP consistently applied, and all liabilities for Taxes of the Company and its Subsidiaries attributable to periods prior to or ending on the date hereof or the date of the relevant Closing, as applicable, have been adequately provided for.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) **No General Solicitation**. Neither the Company nor any Person acting on behalf of the Company has offered any of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities only to the Purchasers and certain other "accredited investors" within the meaning of Rule 501 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **Foreign Corrupt Practices**. Neither the Company nor any Subsidiary, nor to the Knowledge of the Company, any agent or other person acting on behalf of the Company or any Subsidiary, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of FCPA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) **Seniority**. Except as disclosed on <u>Schedule 3.1(cc)</u>, no Indebtedness of the Company is senior to the Debentures in right of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured by purchase money security interests (which is senior only as to underlying assets covered thereby) and capital lease obligations (which is senior only as to the property covered thereby). Upon the execution and delivery of the Transaction Documents by each party thereto, the Debentures shall be secured by a first priority lien and security interest in the assets of the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) **Acknowledgment Regarding Purchasers' Purchase of Securities**. The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers' purchase of the Securities. The Company further represents to each Purchaser that the Company's decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) **Stock Option Plans**. Except as set forth in <u>Schedule 3.1(ff)</u>, each stock option granted by the Company under the Company's stock option plan, if applicable, was granted (i) in accordance with the terms of the Company's stock option plan and (ii) with an exercise price at least equal to the fair market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law. To the Company's Knowledge, no stock option granted under the Company's stock option plan has been backdated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) **Office of Foreign Assets Control**. Neither the Company nor any Subsidiary nor, to the Company's Knowledge, any director, officer, agent, employee or affiliate of the Company or any Subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department ("**OFAC**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) **U.S. Real Property Holding Corporation**. The Company is not and has never been a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Bank Holding Company Act**. Neither the Company nor any of its Subsidiaries or, to the Knowledge of the Company, any of its Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the "**BHCA**") and to regulation by the Board of Governors of the Federal Reserve System (the "**Federal Reserve**"). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) **Money Laundering**. The operations of the Company and its Subsidiaries are and have been conducted at all times in material compliance with (i) applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, and other applicable money laundering statutes of the United States and (ii) to the Company's Knowledge, applicable money laundering statutes of all foreign jurisdictions to which the Company is subject (in each case, including applicable rules and regulations promulgated thereunder) (collectively, the "**Money Laundering Laws**"), and no Action or Proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the Knowledge of the Company, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) **No Disqualification Events**. With respect to the Securities to be offered and sold hereunder in reliance on Rule 506 under the Securities Act, none of (i) the Company, or (ii) to the Company's Knowledge, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering hereunder, any beneficial owner of 20% or more of the Company's outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, an "**Issuer Covered Person**" and, together, "**Issuer Covered Persons**") is subject to any of the "**Bad Actor**" disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a "**Disqualification Event**"), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Purchasers a copy of any disclosures provided thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) **Other Covered Persons**. To the Company's Knowledge, no person other than an Issuer Covered Person has been or will be paid remuneration for solicitation of purchasers in connection with the sale of any Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) **Shell Status**. The Company has never been, and is not presently, an issuer identified as a "Shell Company".

**Section 3.2 <u>Representations and Warranties of the Purchasers</u>**. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein, in which case they shall be accurate as of such date):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Organization; Authority**. Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Own Account**. Such Purchaser understands that the Securities are "restricted securities" and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting such Purchaser's right to sell the Securities pursuant to a Registration Statement covering the resale of such security or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Purchaser Status**. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on which it converts any Debentures or Warrants, it will be an "accredited investor" as defined in Rule 501 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Experience of Such Purchaser**. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **General Solicitation**. Such Purchaser is not, to such Purchaser's knowledge, purchasing the Securities because of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or, to the knowledge of such Purchaser, any other general solicitation or general advertisement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Access to Information**. Such Purchaser acknowledges that it has had the opportunity to review the Transaction Documents (including all exhibits and schedules thereto) and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities, including the risk factors set forth in **Exhibit H**; (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Such Purchaser acknowledges and agrees that neither the Placement Agent nor any Affiliate of the Placement Agent has provided such Purchaser with any information or advice with respect to the Securities nor is such information or advice necessary or desired. Neither the Placement Agent nor any Affiliate has made or makes any representation as to the Company or the quality of the Securities and the Placement Agent and any Affiliate may have acquired non-public information with respect to the Company which such Purchaser agrees need not be provided to it. In connection with the issuance of the Securities to such Purchaser, neither the Placement Agent nor any of its Affiliates has acted as a financial advisor or fiduciary to such Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Certain Transactions and Confidentiality**. Other than consummating the transactions contemplated hereunder, such Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material pricing terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser's assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser's assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement or to such Purchaser's representatives, including, without limitation, its officers, directors, partners, legal and other advisors, employees, agents and Affiliates, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for the avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to locating or borrowing shares in order to effect Short Sales or similar transactions in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Risk Factors**. Such Purchaser has carefully read and fully understands the risks involved with such Purchaser's investment in the Securities and the transactions contemplated hereby, including, without limitation, the risks identified in **Exhibit H**, incorporated by reference herein, and in the Disclosure Schedules. The Purchaser understands that there is no guarantee of any investment return. The Purchaser is aware that an investment in the Securities is a speculative investment that involves a significant degree of risk and that there is no guarantee that the Purchaser will realize any return or gain from the Offering. The Purchaser (i) acknowledges that there are restrictions on the Purchaser's ability to cancel an investment commitment and obtain a return of the investment at any time, (ii) understands that that there is no public or private trading market for the Securities and, therefore, it may be difficult to resell Securities acquired through this Offering, if at all, (iii) is able to be party to this Agreement and bear the financial risk of such investment in the Securities until the maturity of the Debentures and in the event no trading market for the Securities develops, and (iv) is able to afford a complete loss of its Subscription Amount. The Purchaser acknowledges and accepts that part or all of such Purchaser's Subscription Amount may be lost with no further recourse to the Company.

**ARTICLE IV.**

**<u>OTHER AGREEMENTS OF THE PARTIES</u>**

**Section 4.1 <u>Transfer Restrictions</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective Registration Statement, to the Company or to an Affiliate of a Purchaser, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations of a Purchaser under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Purchasers agree that any certificate issued in respect of or in exchange for any of the Securities, so long as is required by this <u>Section 4.1</u>, shall include an endorsement typed or otherwise denoted conspicuously thereon of the following legend (along with any other legends that may be required under applicable Laws:

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "**SECURITIES ACT**"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS IF THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY.

In the event such Securities are represented by book-entry account on the books and records of the Company's Transfer Agent, such book-entry shall include such a restrictive legend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Certificates (or book-entries) evidencing the Conversion Shares shall not contain any legend (including the legend set forth in <u>Section 4.1(b)</u> hereof): (i) following any sale of such Conversion Shares pursuant to Rule 144, or (ii) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). In such instances, the Company shall, at its expense, arrange for counsel to issue a legal opinion to the Transfer Agent if required by the Transfer Agent to effect the removal of the legend hereunder from such Conversion Shares, subject to compliance with the Securities Act and/or Rule 144 (for the avoidance of doubt, the Company shall pay all costs associated with such legend removals incurred by the Company). The Company agrees that at such time as such legend is no longer required under this <u>Section 4.1(c)</u> and the Company's Common Stock is listed or quoted, as the case may be, on a Trading Market, it will use its reasonable best efforts to take all actions reasonably requested by any Purchaser to remove any and all restrictive and other legends from the certificates (or book-entries) evidencing the Conversion Shares. Any requesting Purchaser shall provide the Company, or the Transfer Agent with the evidence reasonably requested by them to cause the removal of any such "restrictive" legend, including any information such persons reasonably deem necessary to determine that the legend is no longer required under the Securities Act or applicable state laws, including a certification that the requesting Purchaser is not an Affiliate of the Company (and a covenant to inform the Company if such Purchaser should thereafter become an Affiliate and to consent to exchange any certificates or instruments representing the Conversion Shares for ones bearing an appropriate restrictive legend) and regarding the length of time such Conversion Shares have been held. The Company shall deliver all documentation requested by the Transfer Agent within two (2) Trading Days of receiving all reasonably requested information from the Purchaser ("Legend Removal Request Date"). The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this <u>Section 4</u> (unless required by law). Certificates for Conversion Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to each Purchaser in book-entry or certificated form or by crediting the account of such Purchaser's prime broker with the Depository Trust Company System as directed by such Purchaser. The Company shall pay to Purchaser, in cash, (i) as liquidated damages and not as a penalty, 1% of the total of the value of the Conversion Shares for which the removal of the legend is sought (based on the VWAP of the Common Stock on the date such Conversion Shares are submitted to the Transfer Agent) for each full month (or pro rata portion thereof) that the required documentation is not delivered to the Transfer Agent after the Legend Removal Date until such documentation is delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser will sell any Securities pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a Registration Statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates representing Securities as set forth in this <u>Section 4.1</u> is predicated upon the Company's reliance upon this understanding.

**Section 4.2 <u>Acknowledgment of Dilution</u>**. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations under the Transaction Documents, including, without limitation, its obligation to issue the Conversion Shares pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company.

**Section 4.3 <u>Furnishing of Information; Public Information</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Until the earlier of (i) one (1) year after the Closing Date, or (ii) the time that no Purchaser owns Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to Regulation D.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, in the event the Company becomes subject to the reporting requirements of Section 13 or 15(a) of the Exchange Act (a "**Reporting Issuer**") while the Purchaser owns any Securities, until such time that all of the Securities may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, if the Company (i) shall fail for any reason to satisfy the current public information requirement under Rule 144(c) or (ii) has ever been an issuer described in Rule 144(i)(1)(i) or becomes an issuer in the future, and the Company shall fail to satisfy any condition set forth in Rule 144(i)(2) (a "**Public Information Failure**") then, in addition to such Purchaser's other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, by reason of any such delay in or reduction of its ability to sell the Securities, an amount in cash equal to one percent (1.0%) of the aggregate Subscription Amount of such Purchaser's Securities on the day of a Public Information Failure and on every thirtieth (30th) day (pro-rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such Public Information Failure is cured and (b) such time that such public information is no longer required for the Purchasers to transfer the Conversion Shares pursuant to Rule 144, provided that such liquidated damages shall not exceed in the aggregate to ten percent (10.0%) of such Purchaser's aggregate Subscription Amount. The payments to which a Purchaser shall be entitled pursuant to this <u>Section 4.3(b)</u> are referred to herein as "**Public Information Failure Payments**." Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Public Information Failure Payments are incurred and (ii) the third (3rd) Business Day after the event or failure giving rise to the Public Information Failure Payments is cured. In the event the Company fails to make Public Information Failure Payments in a timely manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month (pro-rated for partial months) until paid in full. Nothing herein shall limit such Purchaser's right to pursue actual damages for the Public Information Failure, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. Further, for the avoidance of doubt, the parties agree that notwithstanding anything to the contrary herein, no payment for a Public Information Failure shall be payable if the Public Information Failure is due to any Purchaser's actions that delay or prevent the Company from performing its obligations under this Section 4.3(b).

**Section 4.4 <u>Integration</u>**. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the Offering in a manner that would require the registration under the Securities Act of the sale of the Debentures or Warrants.

**Section 4.5 <u>Conversion Procedure</u>**. The form of Notice of Conversion included in the Debentures sets forth the totality of the procedures required of each Purchaser to convert such Purchaser's Debenture. Without limiting the preceding sentence, no ink-original Notice of Conversion shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Conversion form be required to convert the Debentures. The Company shall honor conversions of the Debentures and shall deliver Conversion Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.

**Section 4.6 <u>Disclosure; Publicity.</u>** The Company and each Purchaser shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication.

**Section 4.7 <u>Shareholder Rights Plan</u>**. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is an "**Acquiring Person**" under any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities in accordance with the Transaction Documents.

**Section 4.8 Material <u>Non-Public Information</u>**. Notwithstanding anything provided herein to the contrary, the covenants contained in this <u>Section 4.8</u>, shall not apply until the earlier of the Company filing a registration statement in connection with a Qualified Offering with the SEC or submitting its application to have its securities listed or quoted, as the case may be, on a Trading Market the Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes, material non-public information, unless prior thereto such Purchaser shall have consented to the receipt of such information and agreed with the Company to keep such information confidential. To the extent that the Company delivers any material, non-public information to a Purchaser without such Purchaser's consent, the Company hereby covenants and agrees that such Purchaser shall not have any duty of confidentiality to the Company, any of its Subsidiaries, or any of their respective officers, directors, agents, employees or Affiliates, or a duty to the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates not to trade on the basis of, such material, non-public information, provided that such Purchaser shall remain subject to applicable law. To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice through a press release to notify the general public, unless the Purchasers have provided prior consent. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.

**Section 4.9 <u>Use of Proceeds</u>**. The Company shall use the net proceeds from the sale of the Securities hereunder for general working capital and growth purposes, including "going public" expenses, and shall not use such proceeds: (a) for the satisfaction of any portion of the Company's debt'', (b) for the redemption of any Common Stock or Common Stock Equivalents, (c) in violation of FCPA or OFAC regulations or (d) to lend, give credit or pay or make advances towards accrued and/or unpaid salary or bonuses, of any officers, directors, employees or affiliates of the Company.

**Section 4.10 <u>Indemnification of Purchasers</u>**. Subject to the provisions of this <u>Section 4.10</u>, the Company will indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a "**Purchaser Party**") harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys' fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents. If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to such Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (y) for any settlement by a Purchaser Party effected without the Company's prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party's breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents. The indemnification required by this <u>Section 4.10</u> shall be made by periodic payments of the amount thereof during the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the Company may be subject to pursuant to law.

**Section 4.11 <u>Reservation of Conversion Shares</u>**. (a) As of the date hereof, the Company has reserved, and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue all of the Conversion Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Reserve Shares on such date, then the Board of Directors shall use commercially reasonable efforts to amend the Company's certificate or articles of incorporation to increase the number of authorized but unissued shares of Common Stock to at least the Reserve Shares at such time, as soon as possible and in any event not later than the 90th day after such date; *provided*, for the avoidance of doubt, that this <u>Section 4.11(b)</u> shall not act as a waiver of the Company's obligation to reserve the number of shares on or before the date that is 45 days following the Initial Closing required under the last sentence of <u>Section 3.1(f)</u>.

**Section 4.12 <u>Restricted and Permitted Equity Issuances</u>.** From the date hereof until 180 days after the Closing Date, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents, as applicable, shall be permitted to issue Permitted Equity Issuances.

**Section 4.14 <u>Equal Treatment of Purchasers</u>**. No consideration (including any modification of any Transaction Document) shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of the Transaction Documents unless the same consideration is also offered to all of the parties to such Transaction Documents. Further, the Company shall not make any payment of principal or interest on the Debentures in amounts which are disproportionate to the respective principal amounts outstanding on the Debentures at any applicable time. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser and is intended for the Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

**Section 4.15 <u>Certain Transactions and Confidentiality.</u>** Other than consummating the transactions contemplated hereunder, each Purchaser, severally and not jointly with the other Purchasers, covenants that such Purchaser, has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with Purchaser, executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding the foregoing, if Purchaser is a multi-managed investment vehicle (whereby separate portfolio managers manage separate portions of Purchaser's assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of Purchaser's assets), the representation set forth above in this <u>Section 4.15</u> shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement. Other than to other Parties, Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

**Section 4.16 <u>Form D; Blue Sky Filings</u>**. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers at the Closing under applicable securities or "Blue Sky" laws of the states of the United States and shall provide evidence of such actions promptly upon request of any Purchaser.

**Section 4.17 <u>Capital Changes</u>**. Except in connection with the Qualified Offering or Qualified Event (not including a Reverse Takeover or special purpose acquisition company (SPAC) transaction), until the six (6) month anniversary of the Closing Date, the Company shall not undertake a reverse or forward stock split or reclassification of the Common Stock without the prior written consent of the Purchasers holding a majority in principal amount outstanding of the Debentures.

**Section 4.20 <u>Resale Registration of Conversion Shares</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Mandatory Registration**. Following the Final Closing Date, the Company shall prepare and, as soon as reasonably practicable, but in no event later than the 60th day following the Final Closing Date (the "**Filing Deadline**"), file with the Commission, a registration statement on Form S-1 or such other form under the Securities Act as is then available to the Company (including the prospectus, amendments and supplements to such registration statement or prospectus, including pre- and post-effective amendments (and any additional registration statements filed in accordance herewith), all exhibits thereto and all material incorporated by reference or deemed to be incorporated by reference, if any, in such registration statement, the "**Registration Statement**"), providing for the resale from time to time by the Purchasers of any and all Registrable Securities. The Company agrees to use its reasonable best efforts to cause the Registration Statement to be declared effective by the Commission as soon as practicable following such filing, but in no event later than the earlier of (x) the 90th day following the date on which the Registration Statement is initially filed with the Commission and (y) the 5th day following the date on which the Company is notified (orally or in writing, whichever is earlier) by the Commission that the Registration Statement will not be reviewed or will not be subject to further review (such earlier date, the "**Effectiveness Deadline**"). The Company shall promptly, and in any event within three (3) Business Days, notify the Purchasers of the effectiveness of the Registration Statement. The Company shall maintain the effectiveness of the Registration Statement for so long as there are any Registrable Securities outstanding, with respect to such Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Effect of Failure to Obtain Effectiveness by Effectiveness Deadline**. If (i) the Registration Statement is not (A) filed with the Commission on or before the Filing Deadline (a "**Filing Failure**") or (B) declared effective by the Commission on or before the Effectiveness Deadline (an "**Effectiveness Failure**"), (ii) on any day after the Registration Statement has been declared effective by the Commission, sales of all the Registrable Securities required to be included on the Registration Statement cannot be made pursuant to the Registration Statement (including because of a failure to keep the Registration Statement effective, to disclose such information as is necessary for sales to be made pursuant to the Registration Statement or to register sufficient Registrable Securities) (a "**Maintenance Failure**") or (iii) if the Company fails to file with the Commission required reports under Section 13 or 15(d) of the Exchange Act such that it is not in compliance with Rule 144(c)(1) and as a result of which any of the Purchasers are unable to sell Registrable Securities under Rule 144 (a "**Current Public Information Failure**", and each of a Filing Failure, an Effectiveness Failure, a Maintenance Failure and a Current Public Information Failure being referred to as a "Registration Failure"), then, subject to the last sentence of this Section 4.20(b) (and subject to Section 4.20(c) with respect to Cutback Shares), as full relief (but not as a penalty) for the damages to any Purchaser by reason of its inability to sell Registrable Securities under the Registration Statement other than as a result of a Willful Registration Failure (as defined below), the Company shall, (i) on or prior to the fifth (5th) day following a Registration Failure and (ii) on or prior to the fifth (5th) day following each monthly anniversary of such Registration Failure and until such Registration Failure shall have been cured (prorated for any period of less than a month), pay to each Purchaser holding Registrable Securities an amount in cash equal to one percent (1%) of the Subscription Amount paid by such Purchaser for such Purchaser's Debenture and Warrants (such amounts, collectively, "**Registration Delay Payments**"); *provided*, that the aggregate amount of Registration Delay Payments payable by the Company shall in no event exceed an amount equal to ten percent (10%) of the aggregate Subscription Amount paid by all Purchasers hereunder (the "**RDP Cap**"). Notwithstanding the foregoing, if there is (i) a Filing Failure or an Effectiveness Failure resulting from the Company's failure to have complied with clause (y) of the definition of "Effectiveness Deadline" or (ii) any Registration Failure that shall have been due to the Company's failure to use its reasonable best efforts to comply with its obligations under this Section 4.5 (each of the immediately preceding clauses (i) and (ii), a "**Willful Registration Failure**"), then as partial relief (but not as a penalty) for the damages to any Purchaser by reason of its inability to sell Registrable Securities under the Registration Statement and without limiting each Purchaser's rights to any other remedy available hereunder or otherwise at law or in equity, the Registration Delay Payments in respect of a Willful Registration Failure shall be an amount in cash equal to one and one-half percent (1.5%) of the Subscription Amount paid by such Purchaser for such Purchaser's Debentures and Warrant Shares, and such Registration Delay Payments shall not be subject to the RDP Cap. For the avoidance of doubt, no more than one Registration Delay Payment shall be payable by the Company at any given time, notwithstanding that more than one failure giving rise to a Registration Delay Payment shall have occurred and is continuing (e.g., a Filing Failure and an Effectiveness Failure continuing simultaneously); *provided*, that, Registration Delay Payments shall continue in accordance with this Section 4.20(b) until all failures giving rise to such payments are cured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Rule 415 Cutback**. Notwithstanding the registration obligations set forth in Section 4.20(a), if the Commission informs the Company that all of the Registrable Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration statement, then the Company agrees to promptly inform each of the Purchasers thereof and use its commercially reasonable efforts to file amendments to the Registration Statement as required by the Commission, covering the maximum number of Registrable Securities permitted to be registered by the Commission. Unless otherwise directed in writing by a Purchaser as to its Registrable Securities, the number of Registrable Securities to be registered on such Registration Statement will be reduced as follows (the number of Registrable Securities not registered, the "**Cutback Shares**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) First, the Company shall reduce or eliminate any securities to be included other than Registrable Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Second, the Company shall reduce Registrable Securities represented by Conversion Shares issuable pursuant
to the terms of the Warrants (applied, in the case that some Conversion Shares issuable pursuant to the terms of the Warrants may be registered,
to the Purchasers on a pro rata basis based on the total number of unregistered Conversion Shares issuable to such Purchasers pursuant
to the terms of the Warrants); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Third, the Company shall reduce Registrable Securities represented by Conversion Shares issuable pursuant
to the terms of the Debentures (applied, in the case that some Conversion Shares issuable pursuant to the terms of the Debentures may
be registered, to the Purchasers on a pro rata basis based on the total number of unregistered Conversion Shares issuable to such Purchasers
pursuant to the terms of the Debentures).

In the event of a cutback hereunder, the Company shall give each Purchaser at least five (5) Business Days prior written notice along with the calculations as to such Purchaser's allotment. In the event the Company amends the Registration Statement in accordance with the foregoing, the Company will use its reasonable best efforts to file with the Commission, as promptly as allowed by the Commission or guidance of the Staff thereof provided to the Company or to registrants of securities in general, one or more registration statements on Form S-1 or such other form available to register for resale those Registrable Securities that were not registered for resale on the initial Registration Statement, as amended (any such other registration statements, an "**Additional Registration Statement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Related Obligations**. In furtherance of this Section 4.20, the Company shall have the following obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary contained in this Agreement, the Company
shall ensure that, when filed and at all times while effective, the Registration Statement shall not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case
of prospectuses, in the light of the circumstances in which they were made) not misleading. The Company shall submit to the Commission,
within five (5) days after the Staff of the Commission advises the Company (orally or in writing, whichever is earlier) that the Staff
either will not review the Registration Statement or has no further comments on the Registration Statement (as the case may be), a request
for acceleration of effectiveness of the Registration Statement to a time and date not later than forty- eight (48) hours after the submission
of such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company shall prepare and file with the Commission such amendments (including,
without limitation, post-effective amendments) and supplements to the Registration Statement (and to the extent necessary additional registration
statements, which shall be deemed to constitute part of the Registration Statement for all purposes hereof) and the prospectus used in
connection with the Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act,
as may be necessary to keep the Registration Statement effective and available for resales of all of the Registrable Securities at all
times during the Registration Period, and, during such period, comply with all other applicable provisions of the Securities Act in connection
with the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Company shall promptly furnish to each Purchaser, without charge, (i) upon
request, after the same is prepared and filed with the Commission, a reasonable number of copies of the Registration Statement and any
amendment(s) and supplement(s) thereto, including, if so requested, the financial statements and schedules filed therewith, all documents
incorporated therein by reference, all exhibits and each preliminary prospectus, (ii) upon request, upon the effectiveness of the Registration
Statement, two (2) copies of the prospectus included in the Registration Statement and all amendments and supplements thereto (or such
other number of copies as such Purchaser may reasonably request from time to time), and (iii) such other documents, including, without
limitation, copies of any preliminary or final prospectus, as such Purchaser may reasonably request from time to time in order to facilitate
the disposition of the Registrable Securities owned by such Purchaser; *provided*, that the Company shall have no obligation to furnish
any documents pursuant to this clause that is available on the Commission's Electronic Data Gathering, Analysis and Retrieval system
(EDGAR).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Company shall use its reasonable best efforts to (i) register and qualify,
unless an exemption from registration and qualification applies, the resale by Purchasers of the Registrable Securities covered by the
Registration Statement under such other securities or "blue sky" laws of jurisdictions in the United States as shall be reasonably
appropriate for the distribution of the Registrable Securities covered by the Registration Statement, (ii) prepare and file in those jurisdictions,
such amendments (including, without limitation, post-effective amendments) and supplements to such registrations and qualifications as
may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary
to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions
reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, the Company
shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this Section 4.20(d)(iv), (y) subject itself to general taxation
in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify
each Purchaser who holds Registrable Securities of the receipt by the Company of any written notification with respect to the suspension
of the registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky" laws
of any jurisdiction in the United States or its receipt of actual written notice of the initiation or threatening of any proceeding for
such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company shall notify each Purchaser in writing of the
 happening of any event, as promptly as practicable after becoming aware of such event, as a result of which the prospectus included
 in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material
 fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they
 were made, not misleading (*provided* that in no event shall such notice contain any material, non-public information regarding
 the Company or any of its Subsidiaries), and, promptly prepare a supplement or amendment to the Registration Statement and such
 prospectus contained therein to correct such untrue statement or omission and, upon request by any Purchaser, deliver two (2) copies
 of such supplement or amendment to such Purchaser (or such other number of copies as such Purchaser may reasonably request). If the
 Company receives Commission comments which challenge the right of a Purchaser
to have its Registrable Securities included in the Registration Statement without being deemed an underwriter thereunder, the Company
shall, in discussions with and responses to the Commission, use its reasonable best efforts and time to cause as many Registrable Securities
as possible to be included in the Registration Statement without characterizing any Purchaser as an underwriter and in such regard use
its reasonable best efforts to cause the Commission to permit the affected Purchasers or their respective counsel to reasonably participate
in Commission conversations on such issue together with Company counsel, and timely convey relevant information concerning such issue
with the affected Purchasers or their respective counsel. In no event may the Company name any Purchaser as an underwriter without such
Purchaser's prior written consent; *provided*, *however*, that if, after the Company complies with its covenants contained
in this Section 4.20(d)(v), the Commission requires that such Purchaser be named an underwriter and such Purchaser refuses to promptly
deliver its written consent to be so named, then the Company may exclude such Purchaser and such Purchaser's Registrable Securities
from the Registration Statement, and such Purchaser's Conversion Shares issuable to such Purchasers pursuant to the terms of the
Debentures and Warrants shall be deemed to no longer be Registrable Securities, irrespective of the definition of "Registrable Securities"
contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Company shall (i) use reasonable best efforts to prevent the issuance of any
stop order or other suspension of effectiveness of the Registration Statement or the use of any prospectus contained therein, or the suspension
of the qualification, or the loss of an exemption from qualification, of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension as soon as reasonably practicable
and (ii) notify each Purchaser who holds Registrable Securities of the issuance of such order and the resolution thereof or its receipt
of actual notice of the initiation or threat of any proceeding for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Without limiting any obligation of the Company under this Agreement following
a Qualified Offering, the Company shall use its reasonable best efforts either to (i) cause all of the Registrable Securities to be listed
on the Trading Market on which securities of the same class or series issued by the Company are then listed, if any, if the listing of
such Registrable Securities is then permitted under the rules of such exchange, or (ii) secure designation and quotation
of all of the Registrable Securities on the applicable over the counter market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) The Company shall otherwise use its reasonable best efforts to comply with all
applicable rules and regulations of the Commission in connection with the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Suspension of Use of Registration Statement.** Each Purchaser, upon receipt of any notice from the Company of any event pursuant to Section 4.20(d)(v), shall suspend use of the prospectus included in the Registration Statement covering the Registrable Securities until such Purchaser is advised in writing by the Company that the use of the prospectus may be resumed and is furnished with copies of a supplement or amendment to the Registration Statement and such prospectus contained therein as contemplated by Section 4.20(d)(v).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Obligations of the Purchasers**. Each Purchaser shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as the Company shall reasonably request and as shall be required in connection with the registration of the Registrable Securities. Each Purchaser, by such Purchaser's acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of the Registration Statement, unless such Purchaser has notified the Company in writing of such Purchaser's election to exclude all of such Purchaser's Registrable Securities from the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Expenses of Registration**. All expenses incurred in connection with the Registration Statement, excluding underwriters' discounts and commissions, but including without limitation all registration, filing and qualification fees, word processing, duplicating, printers' and accounting fees, stock exchange fees, messenger and delivery expenses, all fees and expenses of complying with state securities or blue sky laws and the fees and disbursements of counsel for the Company shall be paid by the Company.

**Section 4.21 <u>Right of Participation</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the period of eighteen (18) months following the closing of a Qualified Offering or Qualified Event, each Purchaser shall have the right to participate in any Qualified Offering or in any bona fide equity, debt, or hybrid securities transaction or series of related transactions with the principal purpose of raising capital (a "**Subsequent Financing**") conducted by the Company, for up to 100% of a Purchaser's Principal Amount, and the Company shall deliver a Subsequent Financing Notice in accordance with the procedures in Section 4.21(b) herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At least ten (10) Business Days prior to the closing (or initial closing in the case of multiple closings) of a Subsequent Financing, the Company shall deliver to all Purchasers a written notice of its intention to effect a Subsequent Financing ("**Subsequent Financing Notice**"), which shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder and the Persons through or with whom such Subsequent Financing is proposed to be effected, an inquiry as to the amount Purchaser is willing to commit, and shall include a term sheet and transaction documents relating thereto as an attachment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Purchaser desires to participate in such Subsequent Financing, such Purchaser shall provide written notice to the Company within two (2) Business Days of receipt of the Subsequent Financing Notice that such Purchaser will participate in the Subsequent Financing, the amount of such Purchaser's subscription, and representing and warranting that such Purchaser has such funds available for immediate investment on the terms set forth in the Subsequent Financing Notice.

**Section 4.22 <u>Variable Rate Transactions</u>**. For so long as any share of Warrants remains outstanding, the Company shall not effect or enter into an agreement to effect any issuance of Common Shares or Common Share Equivalents (or a combination of units thereof) involving a Variable Rate Transaction. "**Variable Rate Transaction**" means a transaction in which a Person (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive, additional Common Shares (including Common Shares) either (A) at a conversion price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the Common Shares at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of such Person or the market for the Common Shares or (ii) enters into any agreement, including an equity line of credit, whereby such Person may issue securities at a future determined price.

**ARTICLE V. <u><br> MISCELLANEOUS</u>**

**Section 5.1 <u>Termination</u>**. This Agreement shall automatically terminate if the Initial Closing has not been consummated on or prior to the Termination Date, and such termination will not affect the right of any party to sue for any breach by the other party (or parties).

**Section 5.2 <u>Fees and Expenses</u>**. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants, and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery, and performance of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and any conversion delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers. In addition, Joseph Gunnar & Co. LLC is acting as placement agent for this private offering pursuant to a placement agency agreement with the Company and will receive 10% cash compensation on amounts closed on pursuant to this Agreement, as well as an expense reimbursement from the Company, of up to $25,000 for reimbursement of its expenses in connection with the Transaction, and up to $25,000 for its legal fees as incurred for Placement Agent Counsel, which legal fees shall be paid from the proceeds of the Initial Closing.

**Section 5.3 <u>Entire Agreement</u>**. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

**Section 5.4 <u>Notices</u>**. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2<sup>nd</sup>) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto. To the extent that any notice provided pursuant to any Transaction Document constitutes, or contains, material, non-public information regarding the Company or any Subsidiaries, the Company shall simultaneously file such notice through a press release.

**Section 5.5 <u>Amendments; Waivers</u>**. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Required Holders or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought, provided that if any amendment, modification or waiver disproportionately and adversely impacts a Purchaser (or group of Purchasers), the consent of such disproportionately impacted Purchaser (or group of Purchasers) shall also be required. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition, or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. Any proposed amendment or waiver that disproportionately, materially, and adversely affects the rights and obligations of any Purchaser relative to the comparable rights and obligations of the other Purchasers shall require the prior written consent of such adversely affected Purchaser. Any amendment effected in accordance with this <u>Section 5.5</u> shall be binding upon each Purchaser and holder of Securities and the Company.

**Section 5.6 <u>Headings</u>**. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

**Section 5.7 <u>Successors and Assigns</u>**. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger or combination). Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the "Purchasers."

**Section 5.8 <u>No Third-Party Beneficiaries</u>**. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in <u>Section 4.10</u>. Notwithstanding the foregoing, the Placement Agent shall be deemed a third-party beneficiary of the representations and warranties of the Company as contained in <u>Section 3.1</u> of this Agreement and shall have the right to enforce such provisions directly to the extent it may deem such enforcement necessary or advisable to protect its rights.

**Section 5.9 <u>Governing Law</u>**. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Action or Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Action or Proceeding is improper or is an inconvenient venue for such Proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such Action or Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If any party shall commence an Action or Proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations of the Company under <u>Section 4.10</u>, the prevailing party in such Action or Proceeding shall be reimbursed by the non-prevailing party for its reasonable attorneys' fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Action or Proceeding.

**Section 5.10 <u>Survival</u>**. The representations and warranties contained herein shall survive the Final Closing and the delivery of the Securities.

**Section 5.11 <u>Execution</u>**. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original thereof.

**Section 5.12 <u>Severability</u>**. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

**Section 5.14 <u>Replacement of Securities</u>**. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

**Section 5.15 <u>Remedies</u>**. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy at law would be adequate.

**Section 5.16 <u>Payment Set Aside</u>**. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

**Section 5.17 <u>Usury</u>**. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any Action or Proceeding that may be brought by any Purchaser in order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the "**Maximum Rate**"), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental action after the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest more than the Maximum Rate is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess to be at such Purchaser's election.

**Section 5.18 <u>Independent Nature of Purchasers' Obligations and Rights</u>**. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any Proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in its review and negotiation of the Transaction Documents. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by any of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers collectively and not between and among the Purchasers.

**Section 5.18 <u>Liquidated Damages</u>**. The Company's obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled.

**Section 5.19 <u>Saturdays, Sundays, Holidays, etc</u>**<u>.</u> If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

**Section 5.20 <u>Construction</u>**. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

**Section 5.21 <u>WAIVER OF JURY TRIAL</u>. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.**

 

*(Signature Pages Follow)*

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

---

| | | | |
|:---|:---|:---|:---|
| **EXXEL PHARMA, INC.** | **EXXEL PHARMA, INC.** | **EXXEL PHARMA, INC.** | <u>Address for Notice:</u> |
| By: |  |  | Exxel Pharma, Inc. |
|  | Name: | Soren Mogelsvang | 12635 E. Montview Blvd., Suite 134, |
|  | Title: | President & Chief Executive Officer | Aurora, CO 80045 |
|  |  |  | Email: soren.mogelsvang@exxelpharma.com |
| With a copy to (which shall not constitute notice): | With a copy to (which shall not constitute notice): | With a copy to (which shall not constitute notice): | Telephone: (720)-261-1109 |
| Cassels Brock & Blackwell LLP <br> 40 Temperance Street, Suite 3200, Bay Adelaide <br> Centre—North Tower, Toronto, ON M5H 0B4 | Cassels Brock & Blackwell LLP <br> 40 Temperance Street, Suite 3200, Bay Adelaide <br> Centre—North Tower, Toronto, ON M5H 0B4 | Cassels Brock & Blackwell LLP <br> 40 Temperance Street, Suite 3200, Bay Adelaide <br> Centre—North Tower, Toronto, ON M5H 0B4 |  |
| Attn: [_________] | Attn: [_________] | Attn: [_________] |  |
| Email: scole@cassels.com | Email: scole@cassels.com | Email: scole@cassels.com |  |

---

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK <br> SIGNATURE PAGE FOR PURCHASER FOLLOWS]

PURCHASER SIGNATURE PAGE TO

<u>EXXEL PHARMA, INC. SECURITIES PURCHASE AGREEMENT</u>

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

Name of Purchaser: ______________________________________________________________________<u> </u>

*Signature of Authorized Signatory of Purchaser*: _______________________________________________<u> </u>

Name of Authorized Signatory: _____________________________________________________________<u> </u>

Title of Authorized Signatory: ______________________________________________________________<u> </u>

Email Address of Authorized Signatory: ______________________________________________________<u> </u>

Facsimile Number of Authorized Signatory: ____________________________________________________<u> </u>

Address for Notice to Purchaser:

Address for Delivery of Securities to Purchaser (if not same as address for notice):

Subscription Amount: $_________________<u> </u>

Principal Amount (*1.125 x Subscription Amount*): <u>$</u> 

EIN Number: _______________<u> </u>

[SIGNATURE PAGES CONTINUE]

**DISCLOSURE SCHEDULES**

**<u>SPA Disclosure Schedules</u>**

<u>Schedule 3.1(a)</u>

&nbsp;&nbsp;&nbsp;&nbsp;1. Aspire BioScience, Inc. A wholly owned Colorado corporation
serving as our US operating company.

&nbsp;&nbsp;&nbsp;&nbsp;2. Exxel Pharma Australia, Pty L. A wholly owned South Australia
corporation serving as our Australian operating company.

<u>Schedule 3.1(d)</u>

N/A

<u>Schedule 3.1(e)</u>

Exxel must file with the BC Securities Commission.

<u>Schedule 3.1(g)</u>

The Regents of the University of California has an anti-dilution clause as disclosed previously. The specific paragraph from the licensing agreement is below.

 

*Licensee will also issue additional fully paid and non-assessable shares of common stock of Licensee ("Antidilution Shares") to The Regents until such time as bona fide financing equal to or exceeding Five Million Dollars ($5,000,000) has been raised by Licensee in net proceeds from the sale of securities or by the conversion of instruments convertible into equity, so that, after issuance of the Antidilution Shares, The Regents still owns a total of Two and One Half Percent (2.5%) of the outstanding and issued common stock of Licensee on a fully diluted and as converted basis taking into consideration shares also issued under the Global FAAH License. In all such anti- dilution adjustments, any increase in the number of shares of stock reserved for any option plan for employees, consultants, directors and so forth, authorized in connection with a financing shall be deemed to have been issued prior to the sale of securities. The Regents shall be issued Antidilution Shares within sixty (60) days after any issuance of stock or stock equivalent by Licensee. This Paragraph 5.6 will survive the termination or expiration of this Agreement.*

The Company has a stock option plan, with options issued at fair market value. There are currently 4,170,000 options outstanding with an exercise price of $0.125 or $0.250 and expiring between 2029 and 2032. The Company also has 600,000 warrants outstanding. The exercise price is $0.25-0.50 and the expiry dates between July 6, 2025 and Dec 31, 2025.

<u>Schedule 3.1(i)</u>

N/A

<u>Schedule 3.1(j)</u>

N/A

<u>Schedule 3.1(k)</u>

N/A

<u>Schedule 3.1(l)</u>

N/A

<u>Schedule 3.1(n)</u>

N/A

<u>Schedule 3.1(o)</u>

The Company's in-licensed IP was developed with support from the NIH and is subject to certain customary US Government rights.

 

*The development of the licensed technologies was sponsored in part by the Government of the United States of America and, as a consequence, this license is subject to overriding obligations to the United States Federal Government under 35 U.S.C. §§ 200-212;*

The Company owns the rights to the following patents.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Family | &nbsp;&nbsp;US | &nbsp;&nbsp;ROW |
| &nbsp;&nbsp; 1. WO2004/033422<br> **(URB597)** | &nbsp;&nbsp; US8003693B2<br> (1230 days of PTA, expires <br> 18 February 2027<br>US7176201B2 (127<br> days of PTA, expired) | &nbsp;&nbsp;*EP1558591B1 (expired)<br> CN100408556C (expired)<br> AU2003279877B2 (expired)* |
| &nbsp;&nbsp; 4. WO2015/157313<br> **(URB597)** | &nbsp;&nbsp;US9822068B2<br> US10435355B2 | &nbsp;&nbsp; EP3129354B1 (Validated in DE, FR, UK, ES, <br> IT, IE, BE, CH, NL)<br>EP3988540A (pending)<br>|
| &nbsp;&nbsp; 2. WO2012/015704<br> **(URB937)** | &nbsp;&nbsp;US9187413B2 | &nbsp;&nbsp;CA2843265C <br> CN103153946B |

---

---

| | | |
|:---|:---|:---|
|  |  | &nbsp;&nbsp; EP2598477B1 (validated in CH, DE, FR, GB,<br> IT, LI)<br> JP5981429B2<br>|
| &nbsp;&nbsp;3. WO2013/028570 <br> (**URB597, URB937)** | &nbsp;&nbsp;US9745255B2 | &nbsp;&nbsp; AU2012299060B2 <br> BR112014003886B1<br> CN104203906B <br> CA2844812C<br> EP2744778B1 (validated in BE, CH, DE, DK, <br> ES, FR, GB, IE, IT, LX, MC, NL, NO, SE)<br> JP6092870B2<br> KR102079404B1 <br> MX354772B |
| &nbsp;&nbsp;5. US provisional application <br> **(URB937)** | &nbsp;&nbsp;pending |  |
| &nbsp;&nbsp;**Total 5 families** | &nbsp;&nbsp; **6 issued**<br> **1 provisional<br> application**<br> **pending** | &nbsp;&nbsp; **39 (counting the country specific patents in<br> Europe)**<br>**1 European divisional application pending** |

---

<u>Schedule 3.1q</u>

N/A

<u>Schedule 3.1(x)</u>

N/A

<u>Schedule 3.1(y)</u>

N/A

<u>Schedule 3.1(cc)</u>

N/A

<u>Schedule 3.1(ff)</u>

N/A

**EXHIBIT I**

**BENEFICIAL CAPITAL STOCKHOLDER LOCK-UP AGREEMENT**

The Company currently has 45,693,268 shares outstanding, and the following shareholders have greater than 5% ownership.

Soren Mogelsvang

751 Grant Place,

Boulder, CO 80302

Shares: 10,750,000

Daniele Piomelli

3 Valley View, Irvine,

California 92612

Shares: 3,500,000

Sukh Athwal 2103 - 1383

Marinaside Crescent,

Vancouver, British

Columbia V6Z 2W9

Shares: 2,470,000

**EXHIBIT A**

**CERTIFICATE OF INCORPORATION**

***Incorporation number: BC 1123743***

**ARTICLES**

**of**

**EXXEL PHARMA INC.**

<u>**TABLE OF CONTENTS**</u>

1. INTERPRETATION 1

1.1. Definitions 1

1.2. Business Corporations Act and Interpretation Act Definitions Applicable 1

2. SHARES AND SHARE CERTIFICATES 2

2.1. Authorized Share Structure 2

2.2. Form of Share Certificate 2

2.3. Shareholder Entitled to Certificate or Acknowledgement 2

2.4. Delivery by Mail 2

2.5. Replacement of Worn Out or Defaced Certificate or Acknowledgement. 2

2.6. Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgement 3

2.7. Splitting Share Certificates 3

2.8. Certificate Fee 3

2.9. Recognition of Trusts 3

3. ISSUE OF SHARES 3

3.1. Directors Authorized 3

3.2. Commissions and Discounts 3

3.3. Brokerage 4

3.4. Conditions of Issue 4

3.5. Share Purchase Warrants and Rights 4

4. SHARE REGISTERS 4

4.1. Central Securities Register 4

4.2. Closing Register 4

5. SHARE TRANSFERS 5

5.1. Registering Transfers 5

5.2. Form of Instrument of Transfer 5

5.3. Transferor Remains Shareholder 5

5.4. Signing of Instrument of Transfer 5

5.5. Enquiry as to Title Not Required 5

5.6. Transfer Fee 6

6. TRANSMISSION OF SHARES 6

6.1. Legal Personal Representative Recognized on Death 6

6.2. Rights of Legal Personal Representative 6

7. PURCHASE OF SHARES 6

7.1. Company Authorized to Purchase Shares 6

7.2. Purchase When Insolvent 6

7.3. Sale and Voting of Purchased Shares 7

i

---

| | | | |
|:---|:---|:---|:---|
| 8. | BORROWING POWERS | BORROWING POWERS | 7.0 |
| 9. | ALTERATIONS | ALTERATIONS | 7.0 |
|  | 9.1. | Alteration of Authorized Share Structure | 7.0 |
|  | 9.2. | Special Rights and Restrictions | 8.0 |
|  | 9.3. | Change of Name | 8.0 |
|  | 9.4. | Other Alterations | 8.0 |
| 10. | MEETINGS OF SHAREHOLDERS | MEETINGS OF SHAREHOLDERS | 8.0 |
|  | 10.1. | Annual General Meetings | 8.0 |
|  | 10.2. | Resolution Instead of Annual General Meeting | 8.0 |
|  | 10.3. | Calling and Location of Meetings of Shareholders | 9.0 |
|  | 10.4. | Notice for Meetings of Shareholders | 9.0 |
|  | 10.5. | Record Date for Notice | 9.0 |
|  | 10.6. | Record Date for Voting | 9.0 |
|  | 10.7 | Failure to Give Notice and Waiver of Notice | 9.0 |
|  | 10.8. | Notice of Special Business at Meetings of Shareholders | 10.0 |
|  | 10.9. | Notice of Dissent Rights | 10.0 |
| 11. | PROCEEDINGS AT MEETINGS OF SHAREHOLDERS | PROCEEDINGS AT MEETINGS OF SHAREHOLDERS | 10.0 |
|  | 11.1. | Special Business | 10.0 |
|  | 11.2. | Special Majority | 11.0 |
|  | 11.3. | Quorum | 11.0 |
|  | 11.4. | One Shareholder May Constitute Quorum | 11.0 |
|  | 11.5. | Persons Entitled to Attend Meeting | 11.0 |
|  | 11.6. | Requirement of Quorum | 11.0 |
|  | 11.7. | Lack of Quorum | 12.0 |
|  | 11.8. | Lack of Quorum at Succeeding Meeting | 12.0 |
|  | 11.9. | Chair | 12.0 |
|  | 11.10. | Selection of Alternate Chair | 12.0 |
|  | 11.11. | Adjournments | 12.0 |
|  | 11.12. | Notice of Adjourned Meeting | 12.0 |
|  | 11.13. | Decisions by Show of Hands or Poll. | 13.0 |
|  | 11.14. | Declaration of Result | 13.0 |
|  | 11.15. | Motion Need Not be Seconded | 13.0 |
|  | 11.16. | Casting Vote | 13.0 |
|  | 11.17. | Manner of Taking Poll | 13.0 |
|  | 11.18. | Demand for Poll on Adjournment | 13.0 |
|  | 11.19. | Chair Must Resolve Dispute | 14.0 |
|  | 11.20. | Casting of Votes | 14.0 |
|  | 11.21. | No Demand for Poll on Election of Chair | 14.0 |
|  | 11.22. | Demand for Poll Not to Prevent Continuance of Meeting | 14.0 |
|  | 11.23. | Retention of Ballots and Proxies | 14.0 |
| 12. | VOTES OF SHAREHOLDERS | VOTES OF SHAREHOLDERS | 14.0 |
|  | 12.1. | Number of Votes by Shareholder or by Shares | 14.0 |
|  | 12.2. | Votes of Persons in Representative Capacity | 14.0 |

---

ii

12.3. Votes by Joint Holders 15

12.4. Legal Personal Representatives as Joint Shareholders 15

12.5. Representative of a Corporate Shareholder 15

12.6. Proxy Provisions Do Not Apply to All Companies 16

12.7. Appointment of Proxy Holders 16

12.8. Alternate Proxy Holders 16

12.9. When Proxy Holder Need Not Be Shareholder 16

12.10. Deposit of Proxy 16

12.11. Validity of Proxy Vote 17

12.12. Form of Proxy 17

12.13. Revocation of Proxy 17

12.14. Revocation of Proxy Must Be Signed 18

12.15. Production of Evidence of Authority to Vote 18

13. DIRECTORS 18

13.1. First Directors; Number of Directors 18

13.2. Change in Number of Directors 19

13.3. Directors' Acts Valid Despite Vacancy 19

13.4. Qualifications of Directors 19

13.5. Remuneration of Directors 19

13.6. Reimbursement of Expenses of Directors 19

13.7. Special Remuneration for Directors 19

13.8. Gratuity, Pension or Allowance on Retirement of Director 19

14. ELECTION AND REMOVAL OF DIRECTORS 20

14.1. Election at Annual General Meeting 20

14.2. Consent to be a Director 20

14.3. Failure to Elect or Appoint Directors 20

14.4. Places of Retiring Directors Not Filled 20

14.5. Directors May Fill Casual Vacancies 21

14.6. Remaining Directors' Power to Act. 21

14.7. Shareholders May Fill Vacancies 21

14.8. Additional Directors 21

14.9. Ceasing to be a Director 21

14.10. Removal of Director by Shareholders 21

14.11. Removal of Director by Directors 22

iii

15. ALTERNATE DIRECTORS 22

15.1. Appointment of Alternate Director 22

15.2. Notice of Meetings 22

15.3. Alternate for More Than One Director Attending Meetings 22

15.4. Consent Resolutions 23

15.5. Alternate Director Not an Agent 23

15.6. Revocation of Appointment of Alternate Director 23

15.7. Ceasing to be an Alternate Director 23

15.8. Remuneration and Expenses of Alternate Director. 23

16. POWERS AND DUTIES OF DIRECTORS 23

16.1. Powers of Management 23

16.2. Appointment of Attorney of Company 24

17. INTERESTS OF DIRECTORS AND OFFICERS 24

17.1. Obligation to Account for Profits 24

17.2. Restrictions on Voting by Reason of Interest. 24

17.3. I nterested Director Counted in Quorum 24

17.4. Disclosure of Conflict of Interest or Property 24

17.5. Director Holding Other Office in the Company 24

17.6. No Disqualification 25

17.7. Professional Services by Director or Officer 25

17.8. Director or Officer in Other Corporations 25

18. PROCEEDINGS OF DIRECTORS 25

18.1. Meetings of Directors 25

18.2. Voting at Meetings 25

18.3. Chair of Meetings 25

18.4. Meetings by Telephone or Other Communications Medium 26

18.5. Calling of Meetings 26

18.6. Notice of Meetings 26

18.7. When Notice Not Required 26

18.8. Meeting Valid Despite Failure to Give Notice 26

18.9. Waiver of Notice of Meetings 27

18.10. Quorum 27

18.11. Validity of Acts Where Appointment Defective 27

18.12. Consent Resolutions in Writing 27

19. EXECUTIVE AND OTHER COMMITTEES 28

19.1. Appointment and Powers of Executive Committee 28

19.2. Appointment and Powers of Other Committees 28

19.3. Obligations of Committees 28

19.4. Powers of Board 29

19.5. Committee Meetings 29

20. OFFICERS 29

20.1. Directors May Appoint Officers 29

20.2. Functions, Duties and Powers of Officers 29

20.3. Qualifications 30

20.4. Remuneration and Terms of Appointment 30

iv

21. INDEMNIFICATION 30

21.1. Definitions 30

21.2. Mandatory Indemnification of Eligible Parties 30

21.3. lndemnification of Other Persons 31

21.4. Non-Compliance with Business Corporations Act 31

21.5. Company May Purchase Insurance 31

22. DIVIDENDS 31

22.1. Payment of Dividends Subject to Special Rights 31

22.2. Declaration of Dividends 31

22.3. No Notice Required 31

22.4. Record Date 31

22.5. Manner of Paying Dividend 32

22.6. Settlement of Difficulties 32

22.7 When Dividend Payable 32

22.8. Dividends to be Paid in Accordance with Number of Shares 32

22.9. Receipt by Joint Shareholders 32

22.10. Dividend Bears No Interest 32

22.11. Fractional Dividends 32

22.12. Payment of Dividends 32

22.13. Capitalization of Retained Earnings or Surplus 33

23. ACCOUNTING RECORDS 33

23.1. Recording of Financial Affairs 33

23.2. lnspection of Accounting Records 33

24. NOTICES 33

24.1. Method of Giving Notice 33

24.2. Deemed Receipt 34

24.3. Certificate of Sending 34

24.4. Notice to Joint Shareholders 34

24.5. Notice to Legal Personal Representatives and Trustees 34

24.6. Undelivered Notices 35

25. SEAL 35

25.1. Who May Attest Seal 35

25.2. Sealing Copies 35

25.3. Mechanical Reproduction of Seal 35

26. PROHIBITIONS 35

26.1. Application 35

26.2. Consent Required for Transfer of Shares or Designated Securities 35

v

**ARTICLES**

**of**

**1123743 B.C. Ltd.**

**(the "Company")**

The Company will have as its Articles on incorporation the following Articles.

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| | |
|:---|:---|
| **Full name and signature of each lncorporator** | **Date of Signing** |
| <u>/s/ SOREN MOGELSVANG</u> | <u>6/19/2017</u> |
| SOREN MOGELSVANG | |

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1. INTERPRETATION

1.1. Definitions

In these Articles, unless the context otherwise requires:

(1) "board of directors", "directors" and "board" mean the directors or sole
director of the Company for the time being;

(2) "Business Corporations Act" means the *Business Corporations Act* (British Columbia)
from time to time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to that Act;

(3) "Interpretation Act" means the *Interpretation Act* (British Columbia) from time to
time in force and all amendments thereto and includes all regulations and amendments thereto made pursuant to that Act;

(4) "legal personal representative" means the personal or other legal representative of a shareholder;

(5) "registered address" of a shareholder means the shareholder's address as recorded in the
central securities register;

(6) "seal" means the seal of the Company, if any.

1.2. Business Corporations Act and Interpretation Act Definitions Applicable

The definitions in the Business Corporations Act and the definitions and rules of construction in the Interpretation Act, with the necessary changes, so far as applicable, and unless the context requires otherwise, apply to these Articles as if they were an enactment. If there is a conflict between a definition in the Business Corporations Act and a definition or rule in the Interpretation Act relating to a term used in these Articles, the definition in the Business Corporations Act will prevail in relation to the use of the term in these Articles. If there is a conflict or inconsistency between these Articles and the Business Corporations Act, the Business Corporations Act will prevail.

2. SHARES AND SHARE CERTIFICATES

2.1. Authorized Share Structure

The authorized share structure of the Company consists of shares of the class or classes and series, if any, described in the Notice of Articles of the Company.

2.2. Form of Share Certificate

Each share certificate issued by the Company must comply with, and be signed as required by, the Business Corporations Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Shareholder Entitled to Certificate or Acknowledgement

Each shareholder is entitled, without charge, to (a) one share certificate representing the shares of each class or series of shares registered in the shareholder's name or (b) a non-transferable written acknowledgement of the shareholder's right to obtain such a share certificate, provided that in respect of a share held jointly by several persons, the Company is not bound to issue more than one share certificate or acknowledgement and delivery of a share certificate or an acknowledgement to one of several joint shareholders or to a duly authorized agent of one of the joint shareholders will be sufficient delivery to all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. Delivery by Mail

Any share certificate or non-transferable written acknowledgement of a shareholder's right to obtain a share certificate may be sent to the shareholder by mail at the shareholder's registered address and neither the Company nor any director, officer or agent of the Company is liable for any loss to the shareholder because the share certificate or acknowledgement is lost in the mail or stolen.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. Replacement of Worn Out or Defaced Certificate or Acknowledgement

If the directors are satisfied that a share certificate or a non-transferable written acknowledgement of the shareholder's right to obtain a share certificate is worn out or defaced, they must, on production to them of the share certificate or acknowledgement, as the case may be, and on such other terms, if any, as they think fit:

(1) order the share certificate or acknowledgement, as the case may be, to be cancelled; and

(2) issue a replacement share certificate or acknowledgement, as the case may be.

2.6. Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgement

If a share certificate or a non-transferable written acknowledgement of a shareholder's right to obtain a share certificate is lost, stolen or destroyed, a replacement share certificate or acknowledgement, as the case may be, must be issued to the person entitled to that share certificate or acknowledgement, as the case may be, if the directors receive:

(1) proof satisfactory to them that the share certificate or acknowledgement is lost, stolen or destroyed;
and

(2) any indemnity the directors consider adequate.

2.7. Splitting Share Certificates

If a shareholder surrenders a share certificate to the Company with a written request that the Company issue in the shareholder's name two or more share certificates, each representing a specified number of shares and in the aggregate representing the same number of shares as the share certificate so surrendered, the Company must cancel the surrendered share certificate and issue replacement share certificates in accordance with that request.

2.8. Certificate Fee

There must be paid to the Company, in relation to the issue of any share certificate under Articles 2.5, 2.6 or 2.7, the amount, if any and which must not exceed the amount prescribed under the Business Corporations Act, determined by the directors.

2.9. Recognition of Trusts

Except as required by law or statute or these Articles, no person will be recognized by the Company as holding any share upon any trust, and the Company is not bound by or compelled in any way to recognize (even when having notice thereof) any equitable, contingent, future or partial interest in any share or fraction of a share or (except as required by law or statute or these Articles or as ordered by a court of competent jurisdiction) any other rights in respect of any share except an absolute right to the entirety thereof in the shareholder.

3. ISSUE OF SHARES

3.1. Directors Authorized

Subject to the Business Corporations Act and the rights, if any, of the holders of issued shares of the Company, the Company may allot, issue, sell or otherwise dispose of the unissued shares, and issued shares held by the Company, at the times, to the persons, including directors, in the manner, on the terms and conditions and for the issue prices (including any premium at which shares with par value may be issued) that the directors may determine. The issue price for a share with par value must be equal to or greater than the par value of the share.

3.2. Commissions and Discounts

The Company may at any time pay a reasonable commission or allow a reasonable discount to any person in consideration of that person purchasing or agreeing to purchase shares of the Company from the Company or any other person or procuring or agreeing to procure purchasers for shares of the Company.

3.3. Brokerage

The Company may pay such brokerage fee or other consideration as may be lawful for or in connection with the sale or placement of its securities.

3.4. Conditions of Issue

Except as provided for by the Business Corporations Act, no share may be issued until it is fully paid. A share is fully paid when:

(1) consideration is provided to the Company for the issue of the share by one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) past services performed for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) money; and

(2) the value of the consideration received by the Company equals or exceeds the issue price set for the share
under Article 3.1.

3.5. Share Purchase Warrants and Rights

4. SHARE REGISTERS

4.1. Central Securities Register

As required by and subject to the Business Corporations Act, the Company must maintain a central securities register in British Columbia. The directors may, subject to the Business Corporations Act, appoint an agent to maintain the central securities register. The directors may also appoint one or more agents, including the agent which keeps the central securities register, as transfer agent for its shares or any class or series of its shares, as the case may be, and the same or another agent as registrar for its shares or such class or series of its shares, as the case may be. The directors may terminate such appointment of any agent at any time and may appoint another agent in its place.

4.2. Closing Register

The Company must not at any time close its central securities register.

5. SHARE TRANSFERS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. Registering Transfers

A transfer of a share of the Company must not be registered unless the Company or the transfer agent or registrar for the class or series of share to be transferred has received:

(1) a duly signed instrument of transfer in respect of the share;

(2) if a share certificate has been issued by the Company in respect of the share to be transferred, that
share certificate;

(3) if a non-transferable written acknowledgement of the shareholder's right to obtain a share certificate
has been issued by the Company in respect of the share to be transferred, that acknowledgement; and

(4) such other evidence, if any, as the Company or the transfer agent or registrar for the class or series
of share to be transferred may require to prove the title of the transferor or the transferor's right to transfer the share, the due signing
of the instrument of transfer and the right of the transferee to have the transfer registered.

5.2. Form of Instrument of Transfer

The instrument of transfer in respect of any share of the Company must be either in the form, if any, on the back of the Company's share certificates or in any other form that may be approved by the directors from time to time.

5.3. Transferor Remains Shareholder

Except to the extent that the Business Corporations Act otherwise provides, the transferor of shares is deemed to remain the holder of the shares until the name of the transferee is entered in a securities register of the Company in respect of the transfer.

5.4. Signing of Instrument of Transfer

If a shareholder, or his or her duly authorized attorney, signs an instrument of transfer in respect of shares registered in the name of the shareholder, the signed instrument of transfer constitutes a complete and sufficient authority to the Company and its directors, officers and agents to register the number of shares specified in the instrument of transfer or specified in any other manner, or, if no number is specified, all the shares represented by the share certificates or set out in the written acknowledgements deposited with the instrument of transfer:

(1) in the name of the person named as transferee in that instrument of transfer; or

(2) if no person is named as transferee in that instrument of transfer, in the name of the person on whose
behalf the instrument is deposited for the purpose of having the transfer registered.

5.5. Enquiry as to Title Not Required

Neither the Company nor any director, officer or agent of the Company is bound to inquire into the title of the person named in the instrument of transfer as transferee or, if no person is named as transferee in the instrument of transfer, of the person on whose behalf the instrument is deposited for the purpose of having the transfer registered or is liable for any claim related to registering the transfer by the shareholder or by any intermediate owner or holder of the shares, of any interest in the shares, of any share certificate representing such shares or of any written acknowledgement of a right to obtain a share certificate for such shares.

5.6. Transfer Fee

There must be paid to the Company, in relation to the registration of any transfer, the amount, if any, determined by the directors.

6. TRANSMISSION OF SHARES

6.1. Legal Personal Representative Recognized on Death

In case of the death of a shareholder, the legal personal representative of the shareholder, or in the case of shares registered in the shareholder's name and the name of another person in joint tenancy, the surviving joint holder, will be the only person recognized by the Company as having any title to the shareholder's interest in the shares. Before recognizing a person as a legal personal representative of a shareholder, the directors may require proof of appointment by a court of competent jurisdiction, a grant of letters probate, letters of administration or such other evidence or documents as the directors consider appropriate.

6.2. Rights of Legal Personal Representative

The legal personal representative of a shareholder has the same rights, privileges and obligations that attach to the shares held by the shareholder, including the right to transfer the shares in accordance with these Articles, provided the documents required by the Business Corporations Act and the directors have been deposited with the Company. This Article 6.2 does not apply in the case of the death of a shareholder with respect to shares registered in the shareholder's name and the name of another person in joint tenancy.

7. PURCHASE OF SHARES

7.1. Company Authorized to Purchase Shares

Subject to Article 7.2, the special rights and restrictions attached to the shares of any class or series and the Business Corporations Act, the Company may, if authorized by the directors, purchase or otherwise acquire any of its shares at the price and upon the terms determined by the directors.

7.2. Purchase When Insolvent

The Company must not make a payment or provide any other consideration to purchase or otherwise acquire any of its shares if there are reasonable grounds for believing that:

(1) the Company is insolvent; or

(2) making the payment or providing the consideration would render the Company insolvent.

7.3. Sale and Voting of Purchased Shares

If the Company retains a share redeemed, purchased or otherwise acquired by it, the Company may sell, gift or otherwise dispose of the share, but, while such share is held by the Company, it:

(1) is not entitled to vote the share at a meeting of its shareholders;

(2) must not pay a dividend in respect of the share; and

(3) must not make any other distribution in respect of the share.

8. BORROWING POWERS

The Company, if authorized by the directors, may:

(1) borrow money in the manner and amount, on the security, from the sources and on the terms and conditions
that they consider appropriate;

(2) issue bonds, debentures and other debt obligations either outright or as security for any liability
or obligation of the Company or any other person and at such discounts or premiums and on such other terms as they consider appropriate;

(3) guarantee the repayment of money by any other person or the performance of any obligation of any other
person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) mortgage, charge, whether by way of specific or floating charge, grant a security interest in, or give
other security on, the whole or any part of the present and future assets and undertaking of the Company.

9. ALTERATIONS

9.1. Alteration of Authorized Share Structure

Subject to Article 9.2 and the Business Corporations Act, the Company may by special resolution:

(1) create one or more classes or series of shares or, if none of the shares of a class or series of shares
are allotted or issued, eliminate that class or series of shares;

(2) increase, reduce or eliminate the maximum number of shares that the Company is authorized to issue
out of any class or series of shares or establish a maximum number of shares that the Company is authorized to issue out of any class
or series of shares for which no maximum is established;

(3) subdivide or consolidate all or any of its unissued, or fully paid issued, shares;

(4) if the Company is authorized to issue shares of a class of shares with par value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) decrease the par value of those shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if none of the shares of that class of shares are allotted or issued, increase the par value of those
shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) change all or any of its unissued, or fully paid issued, shares with par value into shares without par
value or any of its unissued shares without par value into shares with par value;

(6) alter the identifying name of any of its shares; or

(7) otherwise alter its shares or authorized share structure when required or permitted to do so by the
Business Corporations Act;

and, if applicable, alter its Notice of Articles and, if applicable, its Articles, accordingly.

9.2. Special Rights and Restrictions

Subject to the Business Corporations Act, the Company may by special resolution:

(1) create special rights or restrictions for, and attach those special rights or restrictions to, the
shares of any class or series of shares, whether or not any or all of those shares have been issued; or

(2) vary or delete any special rights or restrictions attached to the shares of any class or series of
shares, whether or not any or all of those shares have been issued;

and alter its Articles and Notice of Articles accordingly.

9.3. Change of Name

The Company may by special resolution authorize an alteration of its Notice of Articles in order to change its name and may by ordinary resolution or directors' resolution adopt or change any translation of that name.

9.4. Other Alterations

If the Business Corporations Act does not specify the type of resolution and these Articles do not specify another type of resolution, the Company may by special resolution alter these Articles.

10. MEETINGS OF SHAREHOLDERS

10.1. Annual General Meetings

Unless an annual general meeting is deferred or waived in accordance with the Business Corporations Act, the Company must hold its first annual general meeting within 18 months after the date on which it was incorporated or otherwise recognized, and after that must hold an annual general meeting at least once in each calendar year and not more than 15 months after the last annual reference date at such time and place as may be determined by the directors.

10.2. Resolution Instead of Annual General Meeting

If all the shareholders who are entitled to vote at an annual general meeting consent by a unanimous resolution to all of the business that is required to be transacted at that annual general meeting, the annual general meeting is deemed to have been held on the date of the unanimous resolution. The shareholders must, in any unanimous resolution passed under this Article 10.2, select as the Company's annual reference date a date that would be appropriate for the holding of the applicable annual general meeting.

10.3. Calling and Location of Meetings of Shareholders

The directors may, at any time, call a meeting of shareholders. The location of a meeting of shareholders shall be determined by the directors and may be within or outside British Columbia.

10.4. Notice for Meetings of Shareholders

The Company must send notice of the date, time and location of any meeting of shareholders (including, without limitation, any notice specifying the intention to propose a resolution as an exceptional resolution, a special resolution or a special separate resolution, and any notice to consider approving an amalgamation into a foreign jurisdiction, an arrangement or the adoption of an amalgamation agreement, and any notice of a general meeting, class meeting or series meeting), in the manner provided in these Articles, or in such other manner, if any, as may be prescribed by ordinary resolution (whether previous notice of the resolution has been given or not), to each shareholder entitled to attend the meeting, to each director and to the auditor of the Company, unless these Articles otherwise provide, at least the following number of days before the meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if and for so long as the Company is a public company, 21 days;

(2) otherwise, 10 days.

10.5. Record Date for Notice

The directors may set a date as the record date for the purpose of determining shareholders entitled to notice of any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the Business Corporations Act, by more than four months. The record date must not precede the date on which the meeting is held by fewer than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if and for so long as the Company is a public company, 21 days;

(2) otherwise, 10 days.

If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the beginning of the meeting.

10.6. Record Date for Voting

The directors may set a date as the record date for the purpose of determining shareholders entitled to vote at any meeting of shareholders. The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting requisitioned by shareholders under the Business Corporations Act, by more than four months. If no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the beginning of the meeting.

10.7. Failure to Give Notice and Waiver of Notice

The accidental omission to send notice of any meeting of shareholders to, or the non-receipt of any notice by, any of the persons entitled to notice does not invalidate any proceedings at that meeting. Any person entitled to notice of a meeting of shareholders may, in writing or otherwise, waive that entitlement or may agree to reduce the period of that notice. Attendance of a person at a meeting of shareholders is a waiver of entitlement to notice of the meeting, unless that person attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.

10.8. Notice of Special Business at Meetings of Shareholders

If a meeting of shareholders is to consider special business within the meaning of Article 11.1, the notice of meeting must

(1) state the general nature of the special business; and

(2) if the special business includes considering, approving, ratifying, adopting or authorizing any document
or the signing of or giving of effect to any document, have attached to it a copy of the document or state that a copy of the document
will be available for inspection by shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the Company's records office, or at such other reasonably
accessible location in British Columbia as is specified in the notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) during statutory business hours on any one or more specified
days before the day set for the holding of the meeting.

10.9. Notice of Dissent Rights

The Company must send to each of its shareholders, whether or not their shares carry the right to vote, a notice of any meeting of shareholders at which a resolution entitling shareholders to dissent is to be considered specifying the date of the meeting and containing a statement advising of the right to send a notice of dissent together with a copy of the proposed resolution at least the following number of days before the meeting:

(1) if and for so long as the Company is a public company, 21 days;

(2) otherwise, 1O days.

11. PROCEEDINGS AT MEETINGS OF SHAREHOLDERS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. Special Business

At a meeting of shareholders, the following business is special business:

(1) at a meeting of shareholders that is not an annual general meeting, all business is special business
except business relating to the conduct of or voting at the meeting;

(2) at an annual general meeting, all business is special business except for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) business relating to the conduct of or voting at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consideration of any financial statements of the Company presented to the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consideration of any reports of the directors or auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the setting or changing of the number of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the election or appointment of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the appointment of an auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the setting of the remuneration of an auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) business arising out of a report of the directors not requiring the passing of a special resolution
or an exceptional resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any other business which, under these Articles or the Business Corporations Act, may be transacted at
a meeting of shareholders without prior notice of the business being given to the shareholders.

11.2. Special Majority

The majority of votes required for the Company to pass a special resolution at a general meeting of shareholders is two-thirds of the votes cast on the resolution.

11.3. Quorum

Subject to the special rights and restrictions attached to the shares of any class or series of shares and to Article 11.4, the quorum for the transaction of business at a meeting of shareholders is two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold at least 5% of the issued shares entitled to be voted at the meeting.

11.4. One Shareholder May Constitute Quorum

If there is only one shareholder entitled to vote at a meeting of shareholders:

(1) the quorum is one person who is, or who represents by proxy, that shareholder, and

(2) that shareholder, present in person or by proxy, may constitute the meeting.

11.5. Persons Entitled to Attend Meeting

In addition to those persons who are entitled to vote at a meeting of shareholders, the only other persons entitled to be present at the meeting are the directors, the president (if any), the secretary (if any), the assistant secretary (if any), any lawyer for the Company, the auditor of the Company, any persons invited to be present at the meeting by the directors or by the chair of the meeting and any persons entitled or required under the Business Corporations Act or these Articles to be present at the meeting; but if any of those persons does attend the meeting, that person is not to be counted in the quorum and is not entitled to vote at the meeting unless that person is a shareholder or proxy holder entitled to vote at the meeting.

11.6. Requirement of Quorum

No business, other than the election of a chair of the meeting and the adjournment of the meeting, may be transacted at any meeting of shareholders unless a quorum of shareholders entitled to vote is present at the commencement of the meeting, but such quorum need not be present throughout the meeting.

11.7. Lack of Quorum

If, within one-half hour from the time set for the holding of a meeting of shareholders, a quorum is not present:

(1) in the case of a general meeting requisitioned by shareholders, the meeting is dissolved, and

(2) in the case of any other meeting of shareholders, the meeting stands adjourned to the same day in the
next week at the same time and place.

11.8. Lack of Quorum at Succeeding Meeting

If, at the meeting to which the meeting referred to in Article 11.7(2) was adjourned, a quorum is not present within one-half hour from the time set for the holding of the meeting, the person or persons present and being, or representing by proxy, one or more shareholders entitled to attend and vote at the meeting constitute a quorum.

11.9. Chair

The following individual is entitled to preside as chair at a meeting of shareholders:

(1) the chair of the board, if any; or

(2) if the chair of the board is absent or unwilling to act as chair of the meeting, the president, if any.

11.10. Selection of Alternate Chair

If, at any meeting of shareholders, there is no chair of the board or president present within 15 minutes after the time set for holding the meeting, or if the chair of the board and the president are unwilling to act as chair of the meeting, or if the chair of the board and the president have advised the secretary, if any, or any director present at the meeting, that they will not be present at the meeting, the directors present must choose one of their number to be chair of the meeting or if all of the directors present decline to take the chair or fail to so choose or if no director is present, the shareholders entitled to vote at the meeting who are present in person or by proxy may choose any person present at the meeting to chair the meeting.

11.11. Adjournments

The chair of a meeting of shareholders may, and if so directed by the meeting must, adjourn the meeting from time to time and from place to place, but no business may be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

11.12. Notice of Adjourned Meeting

It is not necessary to give any notice of an adjourned meeting of shareholders or of the business to be transacted at an adjourned meeting of shareholders except that, when a meeting is adjourned for 30 days or more, notice of the adjourned meeting must be given as in the case of the original meeting.

11.13. Decisions by Show of Hands or Poll

Subject to the Business Corporations Act, every motion put to a vote at a meeting of shareholders will be decided on a show of hands unless a poll, before or on the declaration of the result of the vote by show of hands, is directed by the chair or demanded by any shareholder entitled to vote who is present in person or by proxy.

11.14. Declaration of Result

The chair of a meeting of shareholders must declare to the meeting the decision on every question in accordance with the result of the show of hands or the poll, as the case may be, and that decision must be entered in the minutes of the meeting. A declaration of the chair that a resolution is carried by the necessary majority or is defeated is, unless a poll is directed by the chair or demanded under Article 11.13, conclusive evidence without proof of the number or proportion of the votes recorded in favour of or against the resolution.

11.15. Motion Need Not be Seconded

No motion proposed at a meeting of shareholders need be seconded unless the chair of the meeting rules otherwise, and the chair of any meeting of shareholders is entitled to propose or second a motion.

11.16. Casting Vote

In case of an equality of votes, the chair of a meeting of shareholders does not, either on a show of hands or on a poll, have a second or casting vote in addition to the vote or votes to which the chair may be entitled as a shareholder.

11.17. Manner of Taking Poll

Subject to Article 11.18, if a poll is duly demanded at a meeting of shareholders:

(1) the poll must be taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the meeting, or within seven days after the date of the meeting, as the chair of the meeting directs;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the manner, at the time and at the place that the chair of the meeting directs;

(2) the result of the poll is deemed to be the decision of the meeting at which the poll is demanded; and

(3) the demand for the poll may be withdrawn by the person who demanded it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.18. Demand for Poll on Adjournment

A poll demanded at a meeting of shareholders on a question of adjournment must be taken immediately at the meeting.

11.19. Chair Must Resolve Dispute

In the case of any dispute as to the admission or rejection of a vote given on a poll, the chair of the meeting must determine the dispute, and his or her determination made in good faith is final and conclusive.

11.20. Casting of Votes

On a poll, a shareholder entitled to more than one vote need not cast all the votes in the same way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.21. No Demand for Poll on Election of Chair

No poll may be demanded in respect of the vote by which a chair of a meeting of shareholders is elected.

11.22. Demand for Poll Not to Prevent Continuance of Meeting

The demand for a poll at a meeting of shareholders does not, unless the chair of the meeting so rules, prevent the continuation of a meeting for the transaction of any business other than the question on which a poll has been demanded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.23. Retention of Ballots and Proxies

The Company must, for at least three months after a meeting of shareholders, keep each ballot cast on a poll and each proxy voted at the meeting, and, during that period, make them available for inspection during normal business hours by any shareholder or proxyholder entitled to vote at the meeting. At the end of such three month period, the Company may destroy such ballots and proxies.

12. VOTES OF SHAREHOLDERS

12.1. Number of Votes by Shareholder or by Shares

Subject to any special rights or restrictions attached to any shares and to the restrictions imposed on joint shareholders under Article 12.3:

(1) on a vote by show of hands, every person present who is a shareholder or proxy holder and entitled to
vote on the matter has one vote; and

(2) on a poll, every shareholder entitled to vote on the matter has one vote in respect
of each share entitled to be voted on the matter and held by that shareholder and may exercise that vote either in person or by proxy.

12.2. Votes of Persons in Representative Capacity

A person who is not a shareholder may vote at a meeting of shareholders, whether on a show of hands or on a poll, and may appoint a proxy holder to act at the meeting, if, before doing so, the person satisfies the chair of the meeting, or the directors, that the person is a legal personal representative or a trustee in bankruptcy for a shareholder who is entitled to vote at the meeting.

12.3. Votes by Joint Holders

If there are joint shareholders registered in respect of any share:

(1) any one of the joint shareholders may vote at any meeting of shareholders, personally or by proxy, in
respect of the share as if that joint shareholder were solely entitled to it; or

(2) if more than one of the joint shareholders is present at any meeting of shareholders, personally or
by proxy, and more than one of them votes in respect of that share, then only the vote of the joint shareholder present whose name stands
first on the central securities register in respect of the share will be counted.

12.4. Legal Personal Representatives as Joint Shareholders

Two or more legal personal representatives of a shareholder in whose sole name any share is registered are, for the purposes of Article 12.3, deemed to be joint shareholders registered in respect of that share.

12.5. Representative of a Corporate Shareholder

If a corporation, that is not a subsidiary of the Company, is a shareholder, that corporation may appoint an individual person to act as its representative at any meeting of shareholders of the Company, and:

(1) for that purpose, the instrument appointing a representative must be received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the registered office of the Company or at any other place specified, in the notice calling the meeting,
for the receipt of proxies, at least the number of business days specified in the notice for the receipt of proxies, or if no number of
days is specified, two business days before the day set for the holding of the meeting or any adjourned meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at the meeting or any adjourned meeting, by the chair of the meeting or adjourned meeting or by a person
designated by the chair of the meeting or adjourned meeting;

(2) if a representative is appointed under this Article 12.5:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the representative is entitled to exercise in respect of and at that meeting the same rights on behalf
of the corporation that the representative represents as that corporation could exercise if it were a shareholder who is an individual,
including, without limitation, the right to appoint a proxy holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the representative, if present at the meeting, is to be counted for the purpose of forming a quorum
and is deemed to be a shareholder present in person at the meeting.

Evidence of the appointment of any such representative may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages.

12.6. Proxy Provisions Do Not Apply to All Companies

If and for so long as the Company is a public company Articles 12.7 to 12.15 apply only insofar as they are not inconsistent wi,th any securities legislation in any province or territory of Canada or in the federal jurisdiction of the United States or in any states of the United States that is applicable to the Company and insofar as they are not inconsistent with the regulations and rules made and promulgated under that legislation and all administrative policy statements, blanket orders and rulings, notices and other administrative directions issued by securities commissions or similar authorities appointed under that legislation.

12.7. Appointment of Proxy Holders

Every shareholder of the Company, including a corporation that is a shareholder but not a subsidiary of the Company, entitled to vote at a meeting of shareholders may, by proxy, appoint one or more (but not more than five) proxy holders to attend and act at the meeting in the manner, to the extent and with the powers conferred by the proxy.

12.8. Alternate Proxy Holders

A shareholder may appoint one or more alternate proxy holders to act in the place of an absent proxy holder.

12.9. When Proxy Holder Need Not Be Shareholder

If and for so long as the Company is not a public company, a person may only be appointed as a proxy holder if the person is a shareholder, although a person who is not a shareholder

may be appointed as a proxy holder if:

(1) the person appointing the proxy holder is a corporation or a representative of a corporation appointed
under Article 12.5;

(2) the Company has at the time of the meeting for which the proxy holder is to be appointed only one shareholder
entitled to vote at the meeting; or

(3) the shareholders present in person or by proxy at and entitled to vote at the meeting for which the
proxy holder is to be appointed, by a resolution on which the proxy holder is not entitled to vote but in respect of which the proxy holder
is to be counted in the quorum, permit the proxy holder to attend and vote at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10. Deposit of Proxy

A proxy for a meeting of shareholders must:

(1) be received at the registered office of the Company or at any other place specified, in the notice
calling the meeting, for the receipt of proxies, at least the number of business days specified in the notice, or if no number of days
is specified, two business days before the day set for the holding of the meeting or any adjourned meeting; or

(2) unless the notice provides otherwise, be received, at the meeting or any adjourned meeting, by the chair
of the meeting or adjourned meeting or by a person designated by the chair of the meeting or adjourned meeting.

A proxy may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages.

12.11. Validity of Proxy Vote

A vote given in accordance with the terms of a proxy is valid notwithstanding the death or incapacity of the shareholder giving the proxy and despite the revocation of the proxy or the revocation of the authority under which the proxy is given, unless notice in writing of that death, incapacity or revocation is received:

(1) at the registered office of the Company, at any time up to and including the last business day before
the day set for the holding of the meeting or any adjourned meeting at which the proxy is to be used; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) at the meeting or any adjourned meeting, by the chair of the meeting or adjourned meeting, before any
vote in respect of which the proxy has been given has been taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.12. Form of Proxy

A proxy, whether for a specified meeting or otherwise, must be either in the following form or in any other form approved by the directors or the chair of the meeting:

 

*[name of company]*

(the "Company")

The undersigned, being a shareholder of the Company, hereby appoints [name] or, failing that person, [name], as proxy holder for the undersigned to attend, act and vote for and on behalf of the undersigned at the meeting of shareholders of the Company to be held on [month, day, year] and at any adjournment of that meeting.

Number of shares in respect of which this proxy is given (if no number is specified, then this proxy is given in respect of all shares registered in the name of the undersigned): ________________________

---

| |
|:---|
| Signed *[month, day, year]* |
| *[Signature of shareholder]* |
| *[Name of shareholder-printed]* |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.13. Revocation of Proxy

Subject to Article 12.14, every proxy may be revoked by an instrument in writing that is received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) at the registered office of the Company at any time up to and including the last
business day before the day set for the holding of the meeting or any adjourned meeting at which the proxy is to be used; or

(2) at the meeting or any adjourned meeting, by the chair of the meeting or adjourned meeting, before any
vote in respect of which the proxy has been given has been taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.14. Revocation of Proxy Must Be Signed

An instrument referred to in Article 12.13 must be signed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if the shareholder for whom the proxy holder is appointed is an individual, the instrument must be signed
by the shareholder or his or her legal personal representative or trustee in bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if the shareholder for whom the proxy holder is appointed is a corporation, the instrument must be signed
by the corporation or by a representative appointed for the corporation under Article 12.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.15. Production of Evidence of Authority to Vote

The chair of any meeting of shareholders may, but need not, inquire into the authority of any person to vote at the meeting and may, but need not, demand from that person production of evidence as to the existence of the authority to vote.

13. DIRECTORS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. First Directors; Number of Directors

The first directors are the persons designated as directors of the Company in the Notice of Articles that applies to the Company when it is recognized under the Business Corporations Act. The number of directors, excluding additional directors appointed under Article 14.8, is set at:

(1) subject to paragraphs (2) and (3), the number of directors that is equal to the number of the Company's
first directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if the Company is a public company, the greater of three and the most recently set of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of directors set by ordinary resolution (whether or not previous notice of the resolution
was given); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the number of directors set under Article 14.4;

(3) if the Company is not a public company, the most recently set of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of directors set by ordinary resolution (whether or not previous notice of the resolution
was given); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the number of directors set under Article 14.4.

13.2. Change in Number of Directors

If the number of directors is set under Articles 13.1(2)(a) or 13.1(3)(a):

(1) the shareholders may elect or appoint the directors needed to fill any vacancies in the board of directors
up to that number;

(2) if the shareholders do not elect or appoint the directors needed to fill any vacancies in the board of
directors up to that number contemporaneously with the setting of that number, then the directors may appoint, or the shareholders may
elect or appoint, directors to fill those vacancies.

13.3. Directors' Acts Valid Despite Vacancy

An act or proceeding of the directors is not invalid merely because fewer than the number of directors set or otherwise required under these Articles is in office.

13.4. Qualifications of Directors

A director is not required to hold a share in the capital of the Company as qualification for his or her office but must be qualified as required by the Business Corporations Act to become, act or continue to act as a director.

13.5. Remuneration of Directors

The directors are entitled to the remuneration for acting as directors, if any, as the directors may from time to time determine. If the directors so decide, the remuneration of the directors, if any, will be determined by the shareholders. That remuneration may be in addition to any salary or other remuneration paid to any officer or employee of the Company as such, who is also a director.

13.6. Reimbursement of Expenses of Directors

The Company must reimburse each director for the reasonable expenses that he or she may incur in and about the business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7. Special Remuneration for Directors

If any director performs any professional, or other services for the Company that in the opinion of the directors are outside the ordinary duties of a director, or if any director is otherwise specially occupied in or about the Company's business, he or she may be paid remuneration fixed by the directors, or, at the option of that director, fixed by ordinary resolution, and such remuneration may be either in addition to, or in substitution for, any other remuneration that he or she may be entitled to receive.

13.8. Gratuity, Pension or Allowance on Retirement of Director

Unless otherwise determined by ordinary resolution, the directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any director who has held any salaried office or place of profit with the Company or to his or her spouse or dependants and may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance.

14. ELECTION AND REMOVAL OF DIRECTORS

14.1. Election at Annual General Meeting

At every annual general meeting and in every unanimous resolution contemplated by Article 10.2:

(1) the shareholders entitled to vote at the annual general meeting for the election of directors must
elect, or in the unanimous resolution appoint, a board of directors consisting of the number of directors for the time being set under
these Articles; and

(2) all the directors cease to hold office immediately before the election or appointment of directors under
paragraph (1), but are eligible for re-election or re-appointment.

14.2. Consent to be a Director

No election, appointment or designation of an individual as a director is valid unless:

(1) that individual consents to be a director in the manner provided for in the Business Corporations Act;

(2) that individual is elected or appointed at a meeting at which the individual is present and the individual
does not refuse, at the meeting, to be a director; or

(3) with respect to first directors, the designation is otherwise valid under the Business Corporations
Act.

14.3. Failure to Elect or Appoint Directors

If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Company fails to hold an annual general meeting, and all the shareholders who are entitled to vote
at an annual general meeting fail to pass the unanimous resolution contemplated by Article 10.2, on or before the date by which the annual
general meeting is required to be held under the Business Corporations Act; or

(2) the shareholders fail, at the annual general meeting or in the unanimous resolution contemplated by
Article 10.2, to elect or appoint any directors;

then each director then in office continues to hold office until the earlier of:

(3) when his or her successor is elected or appointed; and

(4) when he or she otherwise ceases to hold office under the Business Corporations Act or these Articles.

14.4. Places of Retiring Directors Not Filled

If, at any meeting of shareholders at which there should be an election of directors, the places of any of the retiring directors are not filled by that election, those retiring directors who are not re-elected and who are asked by the newly elected directors to continue in office will, if willing to do so, continue in office to complete the number of directors for the time being set pursuant to these Articles until further new directors are elected at a meeting of shareholders convened for that purpose. If any such election or continuance of directors does not result in the election or continuance of the number of directors for the time being set pursuant to these Articles, the number of directors of the Company is deemed to be set at the number of directors actually elected or continued in office.

14.5. Directors May Fill Casual Vacancies

Any casual vacancy occurring in the board of directors may be filled by the directors.

14.6. Remaining Directors' Power to Act

The directors may act notwithstanding any vacancy in the board of directors, but if the Company has fewer directors in office than the number set pursuant to these Articles as the quorum of directors, the directors may only act for the purpose of appointing directors up to that number or of calling a meeting of shareholders for the purpose of filling any vacancies on the board of directors or, subject to the Business Corporations Act, for any other purpose.

14.7. Shareholders May Fill Vacancies

If the Company has no directors or fewer directors in office than the number set pursuant to these Articles as the quorum of directors, the shareholders may elect or appoint directors to fill any vacancies on the board of directors.

14.8. Additional Directors

Notwithstanding Articles 13.1 and 13.2, between annual general meetings or unanimous resolutions contemplated by Article 10.2, the directors may appoint one or more additional directors, but the number of additional directors appointed under this Article 14.8 must not at any time exceed:

(1) one-third of the number of first directors, if, at the time of the appointments, one or more of the
first directors have not yet completed their first term of office; or

(2) in any other case, one-third of the number of the current directors who were elected or appointed as
directors other than under this Article 14.8.

Any director so appointed ceases to hold office immediately before the next election or appointment of directors under Article 14.1(1), but is eligible for re-election or re-appointment.

14.9. Ceasing to be a Director

A director ceases to be a director when:

(1) the term of office of the director expires;

(2) the director dies;

(3) the director resigns as a director by notice in writing provided to the Company or a lawyer for the
Company; or

(4) the director is removed from office pursuant to Articles 14.10 or 14.11.

14.10. Removal of Director by Shareholders

The Company may remove any director before the expiration of his or her term of office by special resolution. In that event, the shareholders may elect, or appoint by ordinary resolution, a director to fill the resulting vacancy. If the shareholders do not elect or appoint a director to fill the resulting vacancy contemporaneously with the removal, then the directors may appoint or the shareholders may elect, or appoint by ordinary resolution, a director to fill that vacancy.

14.11. Removal of Director by Directors

The directors may remove any director before the expiration of his or her term of office if the director is convicted of an indictable offence, or if the director ceases to be qualified to act as a director of a company and does not promptly resign, and the directors may appoint a director to fill the resulting vacancy.

15. ALTERNATE DIRECTORS

15.1. Appointment of Alternate Director

Any director (an "appointer") may by notice in writing received by the Company appoint any person (an "appointee") who is qualified to act as a director to be his or her alternate to act in his or her place at meetings of the directors or committees of the directors at which the appointer is not present unless (in the case of an appointee who is not a director) the directors have reasonably disapproved the appointment of such person as an alternate director and have given notice to that effect to his or her appointor within a reasonable time after the notice of appointment is received by the Company.

15.2. Notice of Meetings

Every alternate director so appointed is entitled to notice of meetings of the directors and of committees of the directors of which his or her appointor is a member and to attend and vote as a director at any such meetings at which his or her appointer is not present.

15.3. Alternate for More Than One Director Attending Meetings

A person may be appointed as an alternate director by more than one director, and an alternate director:

(1) will be counted in determining the quorum for a meeting of directors once for each of his or her appointers
and, in the case of an appointee who is also a director, once more in that capacity;

(2) has a separate vote at a meeting of directors for each of his or her appointors and, in the case of
an appointee who is also a director, an additional vote in that capacity;

(3) will be counted in determining the quorum for a meeting of a committee of directors once for each of his
or her appointors who is a member of that committee and, in the case of an appointee who is also a member of that committee as a director,
once more in that capacity;

(4) has a separate vote at a meeting of a committee of directors for each of his or her appointors who is
a member of that committee and, in the case of an appointee who is also a member of that committee as a director, an additional vote in
that capacity.

15.4. Consent Resolutions

Every alternate director, if authorized by the notice appointing him or her, may sign in place of his or her appointer any resolutions to be consented to in writing.

15.5. Alternate Director Not an Agent

Every alternate director is deemed not to be the agent of his or her appointer.

15.6. Revocation of Appointment of Alternate Director

An appointer may at any time, by notice in writing received by the Company, revoke the appointment of an alternate director appointed by him or her.

15.7. Ceasing to be an Alternate Director

The appointment of an alternate director ceases when:

(1) his or her appointer ceases to be a director and is not promptly re-elected
or re-appointed;

(2) the alternate director dies;

(3) the alternate director resigns as an alternate director by notice in writing provided to the Company
or a lawyer for the Company;

(4) the alternate director ceases to be qualified to act as a director; or

(5) his or her appointer revokes the appointment of the alternate director.

15.8. Remuneration and Expenses of Alternate Director

The Company may reimburse an alternate director for the reasonable expenses that would be properly reimbursed if he or she were a director, and the alternate director is entitled to receive from the Company such proportion, if any, of the remuneration otherwise payable to the appointer as the appointer may from time to time direct.

16. POWERS AND DUTIES OF DIRECTORS

16.1. Powers of Management

The directors must, subject to the Business Corporations Act and these Articles, manage or supervise the management of the business and affairs of the Company and have the authority to exercise all such powers of the Company as are not, by the Business Corporations Act or by these Articles, required to be exercised by the shareholders of the Company.

16.2. Appointment of Attorney of Company

The directors may from time to time, by power of attorney or other instrument, under seal if so required by law, appoint any person to be the attorney of the Company for such purposes, and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the directors under these Articles and excepting the power to fill vacancies in the board of directors, to remove a director, to change the membership of, or fill vacancies in, any committee of the directors, to appoint or remove officers appointed by the directors and to declare dividends) and for such period, and with such remuneration and subject to such conditions as the directors may think fit. Any such power of attorney may contain such provisions for the protection or convenience of persons dealing with such attorney as the directors think fit. Any such attorney may be authorized by the directors to sub-delegate all or any of the powers, authorities and discretions for the time being vested in him or her.

17. INTERESTS OF DIRECTORS AND OFFICERS

17.1. Obligation to Account for Profits

A director or senior officer who holds a disclosable interest (as that term is used in the Business Corporations Act) in a contract or transaction into which the Company has entered or proposes to enter is liable to account to the Company for any profit that accrues to the director or senior officer under or as a result of the contract or transaction only if and to the extent provided in the Business Corporations Act.

17.2. Restrictions on Voting by Reason of Interest

A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter is not entitled to vote on any directors' resolution to approve that contract or transaction, unless all the directors have a disclosable interest in that contract or transaction, in which case any or all of those directors may vote on such resolution.

17.3. Interested Director Counted in Quorum

A director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter and who is present at the meeting of directors at which the contract or transaction is considered for approval may be counted in the quorum at the meeting whether or not the director votes on any or all of the resolutions considered at the meeting.

17.4. Disclosure of Conflict of Interest or Property

A director or senior officer who holds any office or possesses any property, right or interest that could result, directly or indirectly, in the creation of a duty or interest that materially conflicts with that individual's duty or interest as a director or senior officer, must disclose the nature and extent of the conflict as required by the Business Corporations Act.

17.5. Director Holding Other Office in the Company

A director may hold any office or place of profit with the Company, other than the office of auditor of the Company, in addition to his or her office of director for the period and on the terms (as to remuneration or otherwise) that the directors may determine.

17.6. No Disqualification

No director or intended director is disqualified by his or her office from contracting with the Company either with regard to the holding of any office or place of profit the director holds with the Company or as vendor, purchaser or otherwise, and no contract or transaction entered into by or on behalf of the Company in which a director is in any way interested is liable to be voided for that reason.

17.7. Professional Services by Director or Officer

Subject to the Business Corporations Act, a director or officer, or any person in which a director or officer has an interest, may act in a professional capacity for the Company, except as auditor of the Company, and the director or officer or such person is entitled to remuneration for professional services as if that director or officer were not a director or officer.

17.8. Director or Officer in Other Corporations

A director or officer may be or become a director, officer or employee of, or otherwise interested in, any person in which the Company may be interested as a shareholder or otherwise, and, subject to the Business Corporations Act, the director or officer is not accountable to the Company for any remuneration or other benefits received by him or her as director, officer or employee of, or from his or her interest in, such other person.

18. PROCEEDINGS OF DIRECTORS

18.1. Meetings of Directors

The directors may meet together for the conduct of business, adjourn and otherwise regulate their meetings as they think fit, and meetings of the directors held at regular intervals may be held at the place, at the time and on the notice, if any, as the directors may from time to time determine.

18.2. Voting at Meetings

Questions arising at any meeting of directors are to be decided by a majority of votes and, in the case of an equality of votes, the chair of the meeting does not have a second or casting vote.

18.3. Chair of Meetings

The following individual is entitled to preside as chair at a meeting of directors:

(1) the chair of the board, if any;

(2) in the absence of the chair of the board, the president, if any, if the president is a director; or

(3) any other director chosen by the directors if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) neither the chair of the board nor the president, if a director, is present at the meeting within 15
minutes after the time set for holding the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) neither the chair of the board nor the president, if a director, is willing to chair the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the chair of the board and the president, if a director, have advised the secretary, if any, or any
other director, that they will not be present at the meeting.

18.4. Meetings by Telephone or Other Communications Medium

A director may participate in a meeting of the directors or of any committee of the directors:

(1) in person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) by telephone; or

(3) with the consent of all directors who wish to participate in the meeting, by other communications medium;

if all the directors participating in the meeting, whether in person, by telephone or by other communications medium, are able to communicate with each other. A director who participates in a meeting in a manner contemplated by this Article 18.4 is deemed for all purposes of the Business Corporations Act and these Articles to be present at the meeting and to have agreed to participate in that manner.

18.5. Calling of Meetings

A director may, and the secretary or an assistant secretary of the Company, if any, on the request of a director must, call a meeting of the directors at any time.

18.6. Notice of Meetings

Other than for meetings held at regular intervals as determined by the directors pursuant to Article 18.1, reasonable notice of each meeting of the directors, specifying the place, day and time of that meeting must be given to each of the directors and the alternate directors by any method set out in Article 24.1 or orally or by telephone.

18.7. When Notice Not Required

It is not necessary to give notice of a meeting of the directors to a director or an alternate director if:

(1) the meeting is to be held immediately following a meeting of shareholders at which that director was
elected or appointed, or is the meeting of the directors at which that director is appointed; or

(2) the director or alternate director, as the case may be, has waived notice of the meeting.

18.8. Meeting Valid Despite Failure to Give Notice

The accidental omission to give notice of any meeting of directors to, or the non-receipt of any notice by, any director or alternate director, does not invalidate any proceedings at that meeting.

18.9. Waiver of Notice of Meetings

Any director or alternate director may send to the Company a document signed by him or her waiving notice of any past, present or future meeting or meetings of the directors and may at any time withdraw that waiver with respect to meetings held after that withdrawal. After sending a waiver with respect to all future meetings and until that waiver is withdrawn, no notice of any meeting of the directors need be given to that director and, unless the director otherwise requires by notice in writing to the Company, to his or her alternate director, and all meetings of the directors so held are deemed not to be improperly called or constituted by reason of notice not having been given to such director or alternate director.

Attendance of a director or alternate director at a meeting of the directors is a waiver of notice of the meeting, unless that director or alternate director attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.

18.10. Quorum

The quorum necessary for the transaction of the business of the directors may be set by the directors and, if not so set, is deemed to be set at two directors or, if the numt;,er of directors is set at one, is deemed to be set at one director, and that director may constitute a meeting.

18.11. Validity of Acts Where Appointment Defective

Subject to the Business Corporations Act, an act of a director or officer is not invalid merely because of an irregularity in the election or appointment or a defect in the qualification of that director or officer.

18.12. Consent Resolutions in Writing

A resolution of the directors or of any committee of the directors may be passed without a meeting:

(1) in all cases, if each of the directors entitled to vote on the resolution consents to it in writing;
or

(2) in the case of a resolution to approve a contract or transaction in respect of which a director has
disclosed that he or she has or may have a disclosable interest, if each of the other directors who have not made such a disclosure consents
in writing to the resolution.

A consent in writing under this Article may be by signed document, fax, e-mail or any other method of transmitting legibly recorded messages. A consent in writing may be in two or more counterparts which together are deemed to constitute one consent in writing. A resolution of the directors or of any committee of the directors passed in accordance with this Article 18.12 is effective on the date stated in the consent in writing or on the latest date stated on any counterpart and is deemed to be a proceeding at a meeting of directors or of the committee of the directors and to be as valid and effective as if it had been passed at a meeting of the directors or of the committee of the directors that satisfies all the requirements of the Business Corporations Act and all the requirements of these Articles relating to meetings of the directors or of a committee of the directors.

19. EXECUTIVE AND OTHER COMMITTEES

19.1. Appointment and Powers of Executive Committee

The directors may, by resolution, appoint an executive committee consisting of the director or directors that they consider appropriate, and this committee has, during the intervals between meetings of the board of directors, all of the directors' powers, except:

(1) the power to fill vacancies in the board of directors;

(2) the power to remove a director;

(3) the power to change the membership of, or fill vacancies in, any committee of the directors; and

(4) such other powers, if any, as may be set out in the resolution or any subsequent directors' resolution.

19.2. Appointment and Powers of Other Committees

The directors may, by resolution:

(1) appoint one or more committees (other than the executive committee) consisting of the director or directors
that they consider appropriate;

(2) delegate to a committee appointed under paragraph (1) any of the directors' powers, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the power to fill vacancies in the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the power to remove a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the power to change the membership of, or fill vacancies in, any committee of the directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the power to appoint or remove officers appointed by the directors; and

(3) make any delegation referred to in paragraph (2) subject to the conditions set out in the resolution
or any subsequent directors' resolution.

19.3. Obligations of Committees

Any committee appointed under Articles 19.1 or 19.2, in the exercise of the powers delegated to it, must:

(1) conform to any rules that may from time to time be imposed on it by the directors; and

(2) report every act or thing done in exercise of those powers at such times as the directors may require.

19.4. Powers of Board

The directors may, at any time, with respect to a committee appointed under Articles 19.1 or 19.2:

(1) revoke or alter the authority given to the committee, or override a decision made by the committee,
except as to acts done before such revocation, alteration or overriding;

(2) terminate the appointment of, or change the membership of, the committee; and

(3) fill vacancies in the committee.

19.5. Committee Meetings

Subject to Article 19.3(1) and unless the directors otherwise provide in the resolution appointing the committee or in any subsequent resolution, with respect to a committee appointed under Articles 19.1 or 19.2:

(1) the committee may meet and adjourn as it thinks proper;

(2) the committee may elect a chair of its meetings but, if no chair of a meeting is elected, or if at a
meeting the chair of the meeting is not present within 15 minutes after the time set for holding the meeting, the directors present who
are members of the committee may choose one of their number to chair the meeting;

(3) a majority of the members of the committee constitutes a quorum of the committee; and

(4) questions arising at any meeting of the committee are determined by a majority of votes of the members
present, and in case of an equality of votes, the chair of the meeting does not have a second or casting vote.

20. OFFICERS

20.1. Directors May Appoint Officers

The directors may, from time to time, appoint such officers, if any, as the directors determine and the directors may, at any time, terminate any such appointment.

20.2. Functions, Duties and Powers of Officers

The directors may, for each officer:

(1) determine the functions and duties of the officer;

(2) entrust to and confer on the officer any of the powers exercisable by the directors on such terms and
conditions and with such restrictions as the directors think fit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) revoke, withdraw, alter or vary all or any of the functions, duties and powers of the officer.

20.3. Qualifications

No officer may be appointed unless that officer is qualified in accordance with the Business Corporations Act. One person may hold more than one position as an officer of the Company. Any person appointed as the chair of the board or as a managing director must be a director. Any other officer need not be a director.

20.4. Remuneration and Terms of Appointment

All appointments of officers are to be made on the terms and conditions and at the remuneration (whether by way of salary, fee, commission, participation in profits or otherwise) that the directors think fit and are subject to termination at the pleasure of the directors, and an officer may in addition to such remuneration be entitled to receive, after he or she ceases to hold such office or leaves the employment of the Company, a pension or gratuity.

21. INDEMNIFICATION

21.1. Definitions

In this Article 21:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "eligible penalty" means a judgment, penalty or fine awarded or imposed in, or an amount
paid in settlement of, an eligible proceeding;

(2) "eligible proceeding" means a legal proceeding or investigative action, whether current, threatened,
pending or completed, in which a director, former director or alternate director of the Company (an "eligible party") or any
of the heirs and legal personal representatives of the eligible party, by reason of the eligible party being or having been a director
or alternate director of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is or may be joined as a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the
proceeding;

(3) "expenses" has the meaning set out in the Business Corporations Act.

21.2. Mandatory Indemnification of Eligible Parties

Subject to the Business Corporations Act, the Company must indemnify a director, former director or alternate director of the Company and his or her heirs and legal personal representatives against all eligible penalties to which such person is or may be liable, and the Company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by such person in respect of that proceeding. Each director and alternate director is deemed to have contracted with the Company on the terms of the indemnity contained in this Article 21.2.

21.3. Indemnification of Other Persons

Subject to any restrictions in the Business Corporations Act, the Company may indemnify any person.

21.4. Non-Compliance with Business Corporations Act

The failure of a director, alternate director or officer of the Company to comply with the Business Corporations Act or these Articles or, if applicable, any former Companies Act or former Articles, does not invalidate any indemnity to which he or she is entitled under this Part.

21.5. Company May Purchase Insurance

The Company may purchase and maintain insurance for the benefit of any person (or his or her heirs or legal personal representatives) who:

(1) is or was a director, alternate director, officer, employee or agent of the Company;

(2) is or was a director, alternate director, officer, employee or agent of a corporation at a time when
the corporation is or was an affiliate of the Company;

(3) at the request of the Company, is or was a director, alternate director, officer,
employee or agent of a corporation or of a partnership, trust, joint venture or other unincorporated entity;

(4) at the request of the Company, holds or held a position equivalent to that of a
director, alternate director or officer of a partnership, trust, joint venture or other unincorporated entity; against any
liability incurred by him or her as such director, alternate director, officer, employee or agent or person who holds or held such equivalent
position.

22. DIVIDENDS

22.1. Payment of Dividends Subject to Special Rights

The provisions of this Article 22 are subject to the rights, if any, of shareholders holding shares with special rights as to dividends.

**22.2.** **Declaration of Dividends** 

Subject to the Business Corporations Act, the directors may from time to time declare and authorize payment of such dividends as they may deem advisable.

22.3. No Notice Required

The directors need not give notice to any shareholder of any declaration under Article 22.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.4. Record Date

The directors may set a date as the record date for the purpose of determining shareholders entitled to receive payment of a dividend. The record date must not precede the date on which the dividend is to be paid by more than two months. If no record date is set, the record date is 5 p.m. on the date on which the directors pass the resolution declaring the dividend.

22.5. Manner of Paying Dividend

A resolution declaring a dividend may direct payment of the dividend wholly or partly in money or by the distribution of specific assets or of fully paid shares or of bonds, debentures or other securities of the Company or any other corporation, or in any one or more of those ways.

22.6. Settlement of Difficulties

If any difficulty arises in regard to a distribution under Article 22.5, the directors may settle the difficulty as they deem advisable, and, in particular, may:

(1) set the value for distribution of specific assets;

(2) determine that money in substitution for all or any part of the specific assets to which any shareholders
are entitled may be paid to any shareholders on the basis of the value so fixed in order to adjust the rights of all parties; and

(3) vest any such specific assets in trustees for the persons entitled to the dividend.

22.7. When Dividend Payable

Any dividend may be made payable on such date as is fixed by the directors.

22.8. Dividends to be Paid in Accordance with Number of Shares

All dividends on shares of any class or series of shares must be declared and paid according to the number of such shares held.

22.9. Receipt by Joint Shareholders

If several persons are joint shareholders of any share, any one of them may give an effective receipt for any dividend, bonus or other money payable in respect of the share.

22.10. Dividend Bears No Interest

No dividend bears interest against the Company.

22.11. Fractional Dividends

If a dividend to which a shareholder is entitled includes a fraction of the smallest monetary unit of the currency of the dividend, that fraction may be disregarded in making payment of the dividend and that payment represents full payment of the dividend.

22.12. Payment of Dividends

Any dividend or other distribution payable in money in respect of shares may be paid by cheque, made payable to the order of the person to whom it is sent, and mailed to the registered address of the shareholder, or in the case of joint shareholders, to the registered address of the joint shareholder who is first named on the central securities register, or to the person and to the address the shareholder or joint shareholders may direct in writing. The mailing of such cheque will, to the extent of the sum represented by the cheque (plus the amount of the tax required by law to be deducted), discharge all liability for the dividend unless such cheque is not paid on presentation or the amount of tax so deducted is not paid to the appropriate taxing authority.

22.13. Capitalization of Retained Earnings or Surplus

Notwithstanding anything contained in these Articles, the directors may from time to time capitalize any retained earnings or surplus of the Company and may from time to time issue, as fully paid, shares or any bonds, debentures or other securities of the Company as a dividend representing the retained earnings or surplus so capitalized or any part thereof.

23. ACCOUNTING RECORDS

23.1. Recording of Financial Affairs

The directors must cause adequate accounting records to be kept to record properly the financial affairs and condition of the Company and to comply with the Business Corporations Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.2. Inspection of Accounting Records

Unless the directors determine otherwise, or unless otherwise determined by ordinary resolution, no shareholder of the Company is entitled to inspect or obtain a copy of any accounting records of the Company.

24. NOTICES

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1. Method of Giving Notice

Unless the Business Corporations Act or these Articles provides otherwise, a notice, statement, report or other record required or permitted by the Business Corporations Act or these Articles to be sent by or to a person may be sent by any one of the following methods:

(1) mail addressed to the person at the applicable address for that person as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for a record mailed to a shareholder, the shareholder's registered address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for a record mailed to a director or officer, the prescribed address for mailing shown for the director
or officer in the records kept by the Company or the mailing address provided by the recipient for the sending of that record or records
of that class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other case, the mailing address of the intended recipient;

(2) delivery at the applicable address for that person as follows, addressed to the person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for a record delivered to a shareholder, the shareholder's registered address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for a record delivered to a director or officer, the prescribed address for delivery shown for the
director or officer in the records kept by the Company or the delivery address provided by the
recipient for the sending of that record or records of that class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other case, the delivery address of the intended recipient;

(3) sending the record by fax to the fax number provided by the intended recipient for the sending of that
record or records of that class;

(4) sending the record by e-mail to the e-mail address provided by the intended recipient for the sending
of that record or records of that class;

(5) physical delivery to the intended recipient.

24.2. Deemed Receipt

A notice, statement, report or other record that is:

(1) mailed to a person by ordinary mail to the applicable address for that person referred to in Article
24.1 is deemed to be received by the person to whom it was mailed on the day, Saturdays, Sundays and holidays excepted, following the
date of mailing;

(2) faxed to a person to the fax number provided by that person referred to in Article 24.1 is deemed to
be received by the person to whom it was faxed on the day it was faxed; and

(3) e-mailed to a person to the e-mail address provided by that
 person referre.d to in Article 24.1 is deemed to be received by the
person to whom it was e-mailed on the day it was e-mailed.

24.3. Certificate of Sending

A certificate signed by the secretary, if any, or other officer of the Company or of any other corporation acting in that capacity on behalf of the Company stating that a notice, statement, report or other record was sent in accordance with Article 24.1 is conclusive evidence of that fact.

24.4. Notice to Joint Shareholders

A notice, statement, report or other record may be provided by the Company to the joint shareholders of a share by providing such record to the joint shareholder first named in the central securities register in respect of the share.

24.5. Notice to Legal Personal Representatives and Trustees

A notice, statement, report or other record may be provided by the Company to the persons entitled to a share in consequence of the death, bankruptcy or incapacity of a shareholder by:

(1) mailing the record, addressed to them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by name, by the title of the legal personal representative of the deceased or incapacitated shareholder,
by the title of trustee of the bankrupt shareholder or by any similar description; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at the address, if any, supplied to the Company for that purpose by the persons claiming to be so entitled;
or

(2) if an address referred to in paragraph (1)(b) has not been supplied to the Company,
by giving the notice in a manner in which it might have been given if the death, bankruptcy or incapacity had not occurred.

24.6. Undelivered Notices

If, on two consecutive occasions, a notice, statement, report or other record is sent to a shareholder pursuant to Article 24.1 and on each of those occasions any such record is returned because the shareholder cannot be located, the Company shall not be required to send any further records to the shareholder until the shareholder informs the Company in writing of his or her new address.

25. SEAL

25.1. Who May Attest Seal

Except as provided in Articles 25.2 and 25.3, the Company's seal, if any, must not be impressed on any record except when that impression is attested by the signatures of:

(1) any two directors;

(2) any officer, together with any director;

(3) if the Company only has one director, that director; or

(4) any one or more directors or officers or persons as may be determined by the directors.

25.2. Sealing Copies

For the purpose of certifying under seal a certificate of incumbency of the directors or officers of the Company or a true copy of any resolution or other document, despite Article 25.1, the impression of the seal may be attested by the signature of any director or officer, or the signature of any other person as may be determined by the directors.

25.3. Mechanical Reproduction of Seal

The directors may authorize the seal to be impressed by third parties on share certificates or bonds, debentures or other securities of the Company as they may determine appropriate from time to time. To enable the seal to be impressed on any share certificates or bonds, debentures or other securities of the Company, whether in definitive or interim form, on which facsimiles of any of the signatures of the directors or officers of the Company are, in accordance with the Business Corporations Act or these Articles, printed or otherwise mechanically reproduced, there may be delivered to the person employed to engrave, lithograph or print such definitive or interim share certificates or bonds, debentures or other securities one or more unmounted dies reproducing the seal and such persons as are authorized under Article 25.1 to attest the Company's seal may in writing authorize such person to cause the seal to be impressed on such definitive or interim share certificates or bonds, debentures or other securities by the use of such dies. Share certificates or bonds, debentures or other securities to which the seal has been so impressed are for all purposes deemed to be under and to bear the seal impressed on them.

26. PROHIBITIONS

26.1. Application

Article 26.2 does not apply to the Company if and for so long as it is a public company.

26.2. Consent Required for Transfer of Shares or Designated Securities

No securities of the Company other than non-convertible debt securities of the Company shall be transferred without the consent of the directors expressed by resolution and the directors shall not be required to give any reason for refusing to consent to any such transfer.

**EXHIBIT B**

**FORM OF DEBENTURE**

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

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| | |
|:---|:---|
| No. [SSCD-001] | Principal Amount: $675,000.00 |
| Original Issue Date: |  |
| November 19, 2024 | Funded Amount: $600,000.00 |

---

**EXXEL PHARMA, INC.**

**12.5% SENIOR SECURED CONVERTIBLE DEBENTURE**

THIS 12.5% SENIOR SECURED CONVERTIBLE DEBENTURE is one of a series of duly authorized and validly issued 12.5% Senior Secured Convertible Debentures of Exxel Pharma Inc., a corporation organized under the laws of the Province of British Columbia, Canada (the "**Company**"), having its principal place of business at 12635 E. Montview Blvd., Suite 134, Aurora, CO 80045, designated as the Company's 12.5% Senior Secured Convertible Debenture (this debenture, the "**Debenture**" and, collectively with the other debentures of such series, the "**Debentures**").

FOR VALUE RECEIVED, the Company promises to pay to John Nash, or its registered assigns (the "**Holder**"), or shall have paid pursuant to the terms hereunder, the principal amount of $675,000.00, on the earlier of August 19, 2025 (subject to extension as provided in Section 2(d) herein, the "**Maturity Date**") or such earlier date as this Debenture is required or permitted to be repaid as provided hereunder. This Debenture is issued to Holder at a twelve and one half percent (12.5%) discount to the Principal Amount (subject to adjustment as provided herein, the "**Original Issue Discount**").

**<u>Section 1</u>. <u>Definitions</u>**. For the purposes hereof, in addition to the terms defined elsewhere in this Debenture, (a) capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have the following meanings:

"<u>Attribution Parties</u>" shall have the meaning set forth in <u>Section 4(e)</u>.

"<u>Bankruptcy Event</u>" means any of the following events: (a) the Company or any Subsidiary thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or any Subsidiary (as defined in the Purchase Agreement (as defined below)) thereof, (b) there is commenced against the Company or any Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after commencement, (c) the Company or any Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d) the Company or any Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Company or any Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Company or any Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts, (g) the Company or any Subsidiary thereof admits in writing that it is generally unable to pay its debts as they become due, (h) the Company or any Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

"<u>Beneficial Ownership Limitation</u>" shall have the meaning set forth in <u>Section 4(e)</u>.

"<u>Business Day</u>" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; *provided*, *however*, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to "stay at home," "shelter-in-place," "non-essential employee" or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York are generally are open for use by customers on such day.

"<u>Change of Control Transaction</u>" means the occurrence after the date hereof of any of: (a) an acquisition after the date hereof by an individual or legal entity or "group" (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of 33% of the voting securities of the Company (other than by means of conversion of the Debentures); (b) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own less than 50% of the aggregate voting power of the Company or the successor entity of such transaction; (c) the Company (and all of its Subsidiaries, taken as a whole) sells or transfers all or substantially all of its assets to another Person and the stockholders of the Company immediately prior to such transaction own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction; (d) a replacement at one time or within a three year period of more than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are members of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors who are members on the date hereof); or (e) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of the events set forth in clauses (a) through (d) above.

"<u>Conversion Date</u>" means, as applicable, in the case of a (i) Mandatory Conversion, the closing date of a Qualified Offering or Qualified Event and a (ii) Voluntary Conversion, the stated effective date in the Notice of Conversion.

"<u>Conversion Price</u>" shall have the meaning set forth in <u>Section 4(c)</u>.

"<u>Conversion Shares</u>" means, collectively, the equity securities of the Company sold in a Qualified Offering, listed as the result of a Qualified Event, or issuable upon conversion of this Debenture in accordance with the terms hereof.

"<u>Event of Default</u>" shall have the meaning set forth in <u>Section 7</u>.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended.

"<u>Event of Default</u>" shall have the meaning set forth in <u>Section 7(a)</u>.

"<u>Fully Diluted Capitalization</u>" means the number of issued and outstanding shares of the Company's capital stock, assuming the conversion or exercise of all of the Company's outstanding convertible or exercisable securities, including shares of convertible preferred stock and all outstanding vested or unvested options or warrants to purchase the Company's capital stock.

"<u>Holders</u>" means, collectively, the Holder together with all other holders of Debentures.

"<u>Knowledge</u>" means, with respect to the Company, the actual knowledge of the following Company officers: Soren Mogelsvang .

"<u>Mandatory Conversion</u>" shall have the meaning ascribed to such term in <u>Section 4(a)</u> hereto.

"<u>Mandatory Default Amount</u>" means the sum of (a) 130% of the outstanding principal amount of this Debenture, *plus* (b) 100% of all accrued and unpaid interest hereon, *plus* (c) all other amounts, costs, expenses and liquidated damages due in respect of this Debenture.

"<u>Maximum Rate</u>" shall have the meaning set forth in <u>Section 11</u>.

"<u>New York Courts</u>" shall have the meaning set forth in <u>Section 8(d)</u>.

"<u>Notice of Conversion</u>" shall have the meaning set forth in <u>Section 4(b)</u>.

"<u>Original Issue Date</u>" means the date of the first issuance of the Debentures, regardless of any transfers of any Debenture and regardless of the number of instruments which may be issued to evidence such Debentures.

"<u>Permitted Indebtedness</u>" means (a) the Indebtedness evidenced by the Debentures; (b) the Indebtedness existing on the Original Issue Date and set forth on Schedule 3.1(bb) attached to the Purchase Agreement; (c) indebtedness which may be assumed in connection with any strategic acquisition; and (d) indebtedness supported by the U.S. Small Business Administration under the Payroll Protection Program and any future similar relief programs pursuant Congressional legislation which is enacted into law and contains forgiveness of indebtedness provisions.

"<u>Permitted Lien</u>" has the meaning set forth in the Security Agreement.

"<u>Prepayment Amount</u>" means the product of (i) the sum of (a) the outstanding principal amount of this Debenture, *plus* (b) accrued and unpaid interest hereon, *plus* (c) all other amounts, costs, expenses and liquidated damages due in respect of this Debenture.

"<u>PubCo</u>" means a publicly traded corporation whose common shares are registered under the Exchange Act and listed on a national securities exchange.

"<u>Purchase Agreement</u>" means the Securities Purchase Agreement, dated as of November 19, 2024 by and among the Company and the original Holders, as amended, modified or supplemented from time to time in accordance with its terms.

"<u>Qualified Event Price</u>" means the price per share at which the Qualified Event is made. "<u>Qualified Offering</u>" shall mean an initial public offering of the Company's securities with gross proceeds of at least $5,000,000, at the closing of which the Company's securities are listed with a U.S. national securities exchange.

"<u>Qualified Offering Price</u>" means the price per share of the securities offered (or price per unit, if units are offered in the Qualified Offering) in the Qualified Offering. For the avoidance of doubt, if a unit includes more than one Common Share, "Qualified Offering Price" shall mean the unit price divided by the number of Common Shares contained in a unit.

"<u>Required Holders</u>" means Holders of the Debentures holding at least 50% plus $1.00 of the Principal Amount of the Debentures.

"<u>Reverse Takeover</u>" means a merger or share exchange by the Company with a PubCo and as a result of which the holders of the Company's outstanding Common Shares on a fully-diluted basis (including all of the Securities) will own in excess of 50% of the outstanding common stock of PubCo.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Security Agreement</u>" means the Security Agreement, dated as of November 19, 2024 by and among the Company and the original Holders and the Agent, as amended, modified or supplemented from time to time in accordance with its terms.

"<u>Share Delivery Date</u>" shall have the meaning set forth in <u>Section 4(d)(i)</u>.

"<u>Standard Settlement Period</u>" shall have the meaning set forth in <u>Section 4(d)(i)</u>.

"<u>Trading Day</u>" means a day on which the principal Trading Market is open for trading.

"<u>Trading Market</u>" means any of the following markets or exchanges on which the Common Shares are listed for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange (or any successors to any of the foregoing).

"<u>Voluntary Conversion</u>" shall have the meaning set forth in <u>Section 4(b)</u>.

"<u>Voluntary Conversion Price</u>" shall have the meaning set forth in <u>Section 4(c)(ii)</u>.

"<u>VWAP</u>" means the dollar volume-weighted average price for such Common Shares on the Trading Market during the period beginning at 9:30 a.m., New York time, and ending at 4:02 p.m., New York time, as reported by Bloomberg L.P.

**Section 2. <u>Payment; Interest; Security and Priority</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Payment; Prepayment</u>. On the Maturity Date, the Company shall pay to the Holder an amount in cash representing all then unconverted and outstanding principal on this Debenture, together with all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder. The Company shall have the option to prepay this Debenture at any time after the Original Issue Date at an amount equal to the Prepayment Amount, which shall require payment that is equal to 110% of the Face Amount. The Company shall provide Holder(s) with ten (10) Business Days' prior written notice of intention to satisfy the Debentures, whether at maturity, by prepayment, or in default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b) <u>Interest</u>. The Debentures shall not bear interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Security; Priority</u>. The indebtedness evidenced by this Debenture and the payment of the principal, interest, fees, penalties or other amounts due or payable hereunder is secured by a first lien and security interest in the assets of the Company and its Subsidiaries, and no current or future indebtedness of the Company for borrowed money (whether or not such indebtedness is secured) to banks, commercial finance lenders or other institutions regularly engaged in the business of lending money (excluding venture capital, investment banking or similar institutions and their affiliates, which sometimes engage in lending activities but which are primarily engaged in investments in equity securities) shall be senior in right of payment to the indebtedness evidenced by this Debenture and the payment of the principal, interest, fees, penalties or other amounts due or payable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Extension of Maturity Date</u>. The Company may extend the Maturity Date for an additional three months by obtaining the prior written consent of the Required Holders no later than ten (10) Business Days prior to the Maturity Date, and commencing the first day of such extension, the Original Issue Discount on this Debenture shall become 18%. If a Qualified Financing or Qualified Event (each defined herein) has not occurred by the Maturity Date, inclusive of the Extension of the Maturity Date, then the Debentures shall be due and payable in cash or shall be convertible into Common Shares of the Company at a 50% discount to the Valuation Cap (as defined below) at the sole option of the holder.

**Section 3. <u>Registration of Transfers and Exchanges</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Different Denominations</u>. This Debenture is exchangeable for an equal aggregate principal amount of Debentures of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Investment Representations</u>. This Debenture has been issued subject to certain investment representations of the original Holder set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal and state securities laws and regulations.

**Section 4. <u>Conversion</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Mandatory Conversion</u>. The full principal balance and all unpaid accrued interest (as of the closing date of the Qualified Offering or Qualified Event) on this Debenture will automatically convert into Conversion Shares on the date that is ninety (90) calendar days subsequent to the closing of a Qualified Offering or Qualified Event, whichever is earlier (the "**Mandatory Conversion**"), at a price per share equal to the lower of (i) 75% of the price at which the Debentures would have been converted at closing of the Qualified Financing or Qualified Event, as applicable, subject to a valuation cap of $25,000,000 (the "**Valuation Cap**") and (ii) a 25% discount to the five (5) day VWAP of the Common Shares prior to the date that is ninety (90) days after the Qualified Financing or Qualified Event, as applicable, which shall be subject to a conversion floor price of $1.00. The number of Conversion Shares that the Company issues upon such conversion will equal the quotient (rounded up to the nearest whole share) obtained by dividing (x) the unconverted and outstanding principal balance and unpaid accrued interest under this Debenture on a date that is no more than five (5) calendar days prior to the closing of the Qualified Offering or Qualified Event, as applicable, if any, by (y) the applicable Conversion Price. The issuance of Conversion Shares pursuant to the conversion of this Debenture will be on, and subject to, the same terms and conditions applicable to the equity securities issued in the Qualified Offering or Qualified Event, as applicable, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Voluntary Conversion</u>. At any time prior to a Mandatory Conversion or the full satisfaction of the outstanding principal balance and unpaid accrued interest under this Debenture, the Holder may elect to convert the unconverted and outstanding principal balance and unpaid accrued interest under this Debenture into Common Shares(the "**Voluntary Conversion**"). The number of Conversion Shares that the Company issues upon such conversion will equal the quotient (rounded up to the nearest whole share) obtained by dividing (x) the unconverted and outstanding principal balance and unpaid accrued interest under this Debenture on the date of conversion by (y) the applicable Conversion Price. The Holder shall effect such conversions by delivering to the Company a Notice of Conversion, the form of which is attached hereto as <u>Annex A</u> (each, a "**Notice of Conversion**"), specifying therein the outstanding principal balance and unpaid accrued interest of this Debenture to be converted and the date on which such conversion shall be effected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Conversion Price</u>. This Debenture will be convertible into Conversion Shares pursuant to the following terms and at such applicable conversion price below (the "**Conversion Price**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. with respect to a Mandatory Conversion, at a price per share equal to the lesser
of (A) 75% of the Qualified Offering Price or Qualified Event Price, as applicable, and (B) a 25% discount to the five (5) day VWAP of
the Common Shares immediately prior to the date that is ninety (90) calendar days subsequent to the closing of the Qualified Offering
or Qualified Event, as applicable, which shall be subject to a conversion floor price of $1.00 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. with respect to Voluntary Conversion, the quotient resulting from dividing (x)
$25,000,000 by (y) the Fully Diluted Capitalization immediately prior to such conversion ()"**Voluntary Conversion Price** "); *provided* that if the Debenture is in default pursuant to <u>Section 7</u>, then 50% of such Voluntary Conversion Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Nothing in this <u>Section 4(c)</u> shall limit a Holder's right to pursue
actual damages or declare an Event of Default pursuant to <u>Section 7</u> hereof and the Holder shall have the right to pursue all remedies
available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.
The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or
under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d) <u>Mechanics of Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Delivery of Conversion Shares Upon Conversion</u>. Not later than the earlier
of (i) two (2) Trading Days and, if applicable, (ii) the number of Trading Days comprising the Standard Settlement Period (as defined
below) after each Conversion Date (the "**Share Delivery Date** "), the Company shall deliver, or cause to be delivered,
to the Holder (A) the Conversion Shares representing the number of Conversion Shares being acquired upon the conversion of this Debenture
and (B) a bank check in the amount of accrued and unpaid interest or it may deliver such sum by wire transfer. As used herein, "**Standard Settlement Period**" means the standard settlement period, expressed in a number of Trading Days, on the Company's primary
Trading Market, if any, with respect to the Common Shares as in effect on the date of delivery of the Notice of Conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Reservation of Shares Issuable Upon Conversion</u>. The
 Company covenants that in accordance with and pursuant to <u>Section 4.11</u> of the Purchase Agreement it will at all times reserve
 and keep available out of authorized and unissued Common Shares for the sole purpose of issuance upon conversion of this Debenture
 and payment of interest on this Debenture, each as herein provided, free from preemptive rights or any other actual contingent
 purchase rights of Persons other than the Holder (and the other holders of the Debentures), such aggregate number of Common Shares
 as required by <u>Section 4.11</u> of the Purchase Agreement and as shall
be issuable (taking into account the adjustments and restrictions of <u>Section 5</u> hereto) upon the conversion of the then outstanding
principal amount of this Debenture and payment of interest hereunder. The Company covenants that all Common Shares that shall be so issuable
shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable and, if a registration statement covering the resale
of the Conversion Shares is then effective under the Securities Act, shall be registered for public resale in accordance with such registration
statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Fractional Shares</u>. No fractional shares or scrip representing fractional
shares shall be issued upon the conversion of this Debenture. As to any fraction of a share which the Holder would otherwise be entitled
to purchase upon such conversion, the Company shall at its election, either pay a cash adjustment in respect of such final fraction in
an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Transfer Taxes and Expenses</u>. The issuance of Conversion Shares on the conversion
of this Debenture shall be made without charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in
respect of the issue or delivery of such Conversion Shares, *provided* that the Company shall not be required to pay any tax that
may be payable in respect of any transfer involved in the issuance and delivery of any such Conversion Shares upon conversion in a name
other than that of the Holder of this Debenture so converted and the Company shall not be required to issue or deliver such Conversion
Shares unless or until the Person or Persons requesting the issuance thereof shall have paid to the Company the amount of such tax or
shall have established to the satisfaction of the Company that such tax has been paid. The Company shall pay all Transfer Agent fees required
for same-day processing of any conversion of this Debenture and all fees to the Depository Trust Company (or another established clearing
corporation performing similar functions) required for same-day electronic delivery of the Conversion Shares. The Company shall pay all
attorney fees required for the issuance of attorney legal opinions for the removal of restrictive legends on Conversion Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Holder's Conversion Limitations</u>. The Company shall not effect any conversion of this Debenture to the extent that after giving effect to the conversion of this Debenture, the Holder (together with the Holder's Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder's Affiliates (such Persons, "**Attribution Parties**")) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of Common Shares beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of Common Shares issuable upon conversion of this Debenture with respect to which such determination is being made, but shall exclude the number of Common Shares which are issuable upon (i) conversion of the remaining, unconverted principal amount of this Debenture beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other Debentures) beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this <u>Section 4(e)</u>, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this <u>Section 4(e)</u> applies, the determination of whether this Debenture is convertible (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which principal amount of this Debenture is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder's determination of whether this Debenture may be converted (in relation to other securities owned by the Holder together with any Affiliates or Attribution Parties) and which principal amount of this Debenture is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this <u>Section 4(e)</u>, in determining the number of outstanding Common Shares, the Holder may rely on the number of outstanding Common Shares as stated in the most recent of the following: (i) the Company's most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company, or (iii) a more recent written notice by the Company or the Company's transfer agent setting forth the number of Common Shares outstanding. Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder the number of Common Shares then outstanding. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Debenture, by the Holder or its Affiliates since the date as of which such number of outstanding Common Shares was reported. The "**Beneficial Ownership Limitation**" shall be 4.99% of the number of Common Shares outstanding immediately after giving effect to the issuance of Common Shares issuable upon conversion of this Debenture held by the Holder. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this <u>Section 4(e)</u>, *provided* that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of Common Shares outstanding immediately after giving effect to the issuance of Common Shares upon conversion of this Debenture held by the Holder and the Beneficial Ownership Limitation provisions of this <u>Section 4(e)</u> shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this <u>Section 4(e)</u> to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Debenture.

**Section 5. <u>Negative Covenants</u>**. As long as any portion of this Debenture remains outstanding, unless with respect to or in connection with a Permitted Equity Issuance (as defined under the Purchase Agreement) or unless the Required Holders have otherwise given prior written consent, the Company shall not, and shall not permit any of the Subsidiaries to, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) other than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom (for the avoidance of doubt, this shall include that the Company shall not enter into any factoring agreement, merchant cash advance agreement or similar arrangement without prior written consent of the Required Holders, provided however that the Required Holders shall negotiate with the Company in good faith in the event such an arrangement is required for the Company to continue operations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) other than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) amend its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that is reasonably likely to materially and adversely affects any rights of the Holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) repay, repurchase or offer to repay, repurchase or otherwise acquire more than a *de minimis* number of Common Shares or Common Share Equivalents other than as to (i) the Conversion Shares or Warrants as permitted or required under the Transaction Documents, (ii) repurchases of Common Shares or Common Share Equivalents of departing officers and directors of the Company or any of its Subsidiaries, *provided* that such repurchases shall not exceed an aggregate of $50,000 for all officers and directors during the term of this Debenture, (iii) Common Shares and Common Share Equivalents which do not vest or are otherwise forfeited, provided (in case of forfeiture) that such Common Shares and Common Share Equivalents are not acquired for cash, or (iv) cash payments to dissenting stockholders in any Reverse Takeover or special purpose acquisition company (SPAC) transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than the Debentures if on a pro-rata basis, other than regularly scheduled principal and interest payments of Permitted Indebtedness; *provided* that such payments shall not be permitted if, at such time, or after giving effect to any such payment, any Event of Default exist or occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) pay cash dividends or distributions on any equity securities of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) enter into any transaction with any Affiliate of the Company which would be required to be disclosed in any public filing with the Commission, unless such transaction is made on an arms-length basis and expressly approved by a majority of the disinterested directors of the Company (even if less than a quorum otherwise required for board approval).

**Section 7. <u>Events of Default</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The occurrence of any one or more of the following shall constitute an "**Event of Default** ":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any default in the payment of (A) the principal amount of any Debenture or (B)
interest, fees, liquidated damages and other amounts owing to a Holder on any Debenture, as and when the same shall become due and payable
(whether on a Conversion Date or the Maturity Date or by acceleration or otherwise) which default, solely in the case of an interest payment
or other default under clause (B) above, is not cured within five (5) Trading Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company shall fail to observe or perform any covenant or
 agreement contained in the Transaction Documents (other than a breach by the Company of its obligations to deliver Common Shares to
 the Holder upon conversion, which breach is addressed in clause (x) below), which failure is not cured, if possible to cure, within
 the earlier to occur of (A) five Trading Days after notice of such failure sent by the Holder or by any other Holder(s) to the
 Company or (B) seven (7) Trading Days after the Company obtains
Knowledge of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a default or event of default (subject to any grace or cure period provided in
the applicable agreement, document or instrument) shall occur under (A) any of the Transaction Documents or (B) any other material agreement,
lease, document or instrument to which the Company is obligated (and not covered by clause (vi) below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any material representation or warranty made in this Debenture, any other Transaction
Documents, any written statement pursuant hereto or thereto or any other report, financial statement or
certificate made or delivered to the Holder or any other Holder shall be untrue or incorrect in any material respect as of the date when
made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Company or any Subsidiary shall be subject to a Bankruptcy Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Company shall default on any of its obligations under any mortgage, credit
agreement or other facility, indenture agreement, or other instrument under which there may be issued, or by which there may be secured
or evidenced, any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves
an obligation greater than $25,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such indebtedness
becoming or being declared due and payable prior to the date on which it would otherwise become due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Common Shares shall not be eligible for listing on a U.S. national securities
exchange and shall not be eligible to resume listing thereon within five (5) Trading Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the Company (and all of its Subsidiaries, taken as a whole) shall be a party to
any Change of Control Transaction (not including a Reverse Takeover) or shall agree to sell or dispose of all or substantially all of
its assets in one transaction or a series of related transactions (whether or not such sale would constitute a Change of Control Transaction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the Company shall fail for any reason to deliver Conversion Shares to a Holder
prior to the fifth (5<sup>th</sup>) Trading Day after a Conversion Date pursuant to <u>Section 4(c)</u> or the Company shall provide at
any time notice to the Holder, including by way of public announcement, of the Company's intention to not honor requests for conversions
of any Debentures in accordance with the terms hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) the electronic transfer by the Company of Common Shares through the Depository
Trust Company or another established clearing corporation is no longer available or is subject to a "chill"; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) any monetary judgment, writ or similar final process shall be entered or filed
against the Company, any Subsidiary or any of their respective property or other assets for more than $100,000, and such judgment, writ
or similar final process shall remain unvacated, unbonded or unstayed for a period of sixty (60) calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Remedies Upon Event of Default</u>. If any Event of Default occurs, the outstanding principal amount of this Debenture, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the Holder's election, immediately due and payable in cash at the Mandatory Default Amount. Commencing upon the occurrence of any Event of Default, the interest rate on this Debenture shall accrue at an interest rate equal to 1.33% per month (16% per annum). Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Debenture to or as directed by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of the Debenture until such time, if any, as the Holder receives full payment pursuant to this <u>Section 7(b)</u>. No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

**Section 8. <u>Miscellaneous</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices</u>. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including any Notice of Conversion, shall be in writing and delivered as set forth in the Purchase Agreement or, alternatively, delivered personally, by email or facsimile, or sent by a nationally recognized overnight courier service, addressed to the Company as set forth in the signature pages hereof, or such other contact information as the Company may specify for such purposes by notice to the Holder delivered in accordance with this Section 8(a). All notices and other communications delivered hereunder shall be effective as provided in the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Absolute Obligation</u>. Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Debenture at the time, place, and rate, and in the coin or currency, herein prescribed. This Debenture is a direct debt obligation of the Company. This Debenture ranks *pari passu* with all other Debentures now or hereafter issued under the terms set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Lost or Mutilated Debenture</u>. If this Debenture shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Debenture, or in lieu of or in substitution for a lost, stolen or destroyed Debenture, a new Debenture for the principal amount of this Debenture so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Debenture, and of the ownership hereof, reasonably satisfactory to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Governing Law</u>. All questions concerning the construction, validity, enforcement and interpretation of this Debenture shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, New York (the "**New York Courts**"). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Debenture and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Debenture or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Debenture, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney's fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Waiver</u>. Any waiver by the Company or the Holder of a breach of any provision of this Debenture shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Debenture. The failure of the Company or the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Debenture on any other occasion. Any waiver by the Company or the Holder must be in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Severability</u>. If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Debenture as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Debenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief</u>. The remedies provided in this Debenture shall be cumulative and in addition to all other remedies available under this Debenture and any of the other Transaction Documents at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder's right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Debenture. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and without any bond or other security being required. The Company shall provide all information and documentation to the Holder that is reasonably requested by the Holder to enable the Holder to confirm the Company's compliance with the terms and conditions of this Debenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Next Business Day</u>. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Headings</u>. The headings contained herein are for convenience only, do not constitute a part of this Debenture and shall not be deemed to limit or affect any of the provisions hereof.

**Section 9**. **<u>Amendments; Waivers</u>**. Any modifications, amendments or waivers of the provisions hereof shall be subject to the terms and conditions of the Purchase Agreement regarding the same.

**Section 10. <u>Equal Treatment of Holder</u>**. No consideration (including any modification of this Debenture) shall be offered or paid to any Person (as such term is defined in the Purchase Agreement) to amend or consent to a waiver or modification of any provision hereof unless the same consideration is also offered to all of the parties to the Purchase Agreement. Further, the Company shall not make any payment of principal or interest on the Debentures in amounts which are disproportionate to the respective principal amounts outstanding on the Debentures at any applicable time. For clarification purposes, this provision constitutes a separate right granted to each Holder by the Company and negotiated separately by each Holder, and is intended for the Company to treat the Holders as a class and shall not in any way be construed as the Holders acting in concert or as a group with respect to the purchase or disposition of the Debentures or otherwise.

**Section 11. <u>Usury</u>.** To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any Action or Proceeding that may be brought by any Holder in order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the "**Maximum Rate**"), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date thereof forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to any Holder with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied by such Holder to the unpaid principal amount of any such indebtedness or be refunded to the Company, the manner of handling such excess to be at such Holder's election.

 

*(Signature Page Follows)*

 

 

**IN WITNESS WHEREOF**, the Company has caused this Debenture to be duly executed by a duly authorized officer as of the date first above indicated.

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| | |
|:---|:---|
| **EXXEL PHARMA, INC.** | **EXXEL PHARMA, INC.** |
| By: |  |
| Name: | Soren Mogelsvang |
| Title: | President & Chief Executive Officer |

---

**<u>ANNEX A</u>**

**NOTICE OF CONVERSION**

The undersigned hereby exercises the voluntary conversion right under Section 4(b) of the 12.5% Senior Secured Convertible Debenture, due __________, 2025, of Exxel Pharma Inc., a corporation organized under the laws of the Province of British Columbia, Canada (the "**Company**"), and elects to convert $_________________ principal amount of the Debenture together with $_______________ of accrued and unpaid interest thereto, totaling $_________________ into that number of Common Shares to be issued pursuant to the Debenture ("**Conversion Shares**"). If Conversion Shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the holder for any conversion, except for such transfer taxes, if any.

By the delivery of this Notice of Conversion and upon the delivery of the Conversion Shares, the undersigned represents and warrants to the Company that its ownership of the Common Shares does not exceed the amounts specified under Section 4(e) of the Debenture, as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended.

The undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with any transfer of the aforesaid Common Shares.

Date to Effect Conversion: _________________________________________________________<u> </u>

Principal Amount of Notes to be Converted: ____________________________________________<u> </u>

Unpaid Accrued Interest, if any, to be Converted: _______________________________________<u> </u>

Number of Shares to be issued: ________________________________________<u> </u>

Signature: ________________________________________________________<u> </u>

Name: ___________________________________________________________

<u> </u> Address: _________________________________________________________<u> </u>

__________________________________________________________

__________________________________________________________

__________________________________________________________

Delivery Instructions for Stock Certificate: __________________________________________________________<u> </u>

**EXHIBIT C <br> ESCROW AGREEMENT**

**<u>ESCROW AGREEMENT</u>**

THIS ESCROW AGREEMENT (this "**Agreement**") is made as of November 12, 2024, by and among Sichenzia Ross Ference Carmel LLP, with an address at 1185 Avenue of Americas, 31<sup>st</sup> floor, New York, New York 10036, as the escrow agent (the "**Escrow Agent**"), Joseph Gunnar & Co., LLC (the "**Advisor**") and Exxel Pharma Inc., (the "**Company**"). The Advisor and Company shall be referred to as the "**Parties**" and each a "**Party**." Unless defined herein, all capitalized terms used in this Agreement shall have the same meaning as set forth in the Securities Purchase Agreement entered into on November 12, 2024 (the "**Securities Purchase Agreement**"), Convertible Debenture entered into on November 12 , 2024 (the "**Convertible Debenture**"), and Common Stock Purchase Warrants, entered into on November 12, 2024 (the "**Warrants**") (collectively, the "**Transaction Documents**") .

<u>W I T N E S S E T H:</u>

**WHEREAS**, the Company desires to sell Convertible Debentures and Warrants based upon the terms and conditions contained in the Transaction Documents;

**WHEREAS**, the Parties desire to establish an escrow account with the Escrow Agent into which the purchasers of the Convertible Notes (the "**Holders**") shall wire the Purchase Price, which includes related commissions, escrow fees (set forth below), advisor fees, and legal fees (collectively, the "**Escrow Funds**") to the order of "Sichenzia Ross Ference Carmel LLP, as Escrow Agent," and Escrow Agent is willing to accept such Escrow Funds in accordance with the terms hereinafter set forth.

**WHEREAS**, the Parties have agreed that the Escrow Funds shall be deposited by the Holders into escrow to be held and distributed by the Escrow Agent in accordance with the terms of this Agreement;

**WHEREAS**, the Parties have requested that the Escrow Agent hold the Escrow Funds in escrow until the Escrow Agent receives the Release Notice in the form annexed hereto as <u>Exhibit A</u> or similar form for the release and allocation of the Escrow Funds (the "**Release Notice**");

NOW, THEREFORE, in consideration of the covenants and mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties hereto agree as follows:

**ARTICLE I TERMS OF THE ESCROW**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 The Parties hereby agree to establish an escrow account (the "**Escrow Account**") with the Escrow Agent whereby the Escrow Agent shall hold the Escrow Funds deposited into the Escrow Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Upon the Escrow Agent's receipt of the Escrow Funds, it shall telephonically advise the Advisor of such receipt into the Escrow Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.3 Wire transfers to the Escrow Agent shall be made as follows:

**Citibank**

**153 East 53rd Street**

**23rd Floor**

**New York, NY 10022**

**A/C Name: Sichenzia Ross Ference Carmel LLP**

**FBO: Joseph Gunnar & Co., LLC**

**A/C#: 4974921703**

**ABA#: 021000089**

**SWIFT Code: CITIUS33**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 The Escrow Agent shall, upon receipt of the Escrow Funds and Release Notice from the Advisor and the Company, wire the applicable Escrow Funds to the accounts designated by the Advisor and Company within one Business Day of receipt of such wiring instructions and after receipt of the Holder's executed Convertible Notes. The Escrow Funds shall only be distributed and released by the Escrow Agent after reasonable determination that all documents have been delivered by the Company to complete the purchase and sale of the Convertible Notes,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.5 The Escrow Agent shall distribute and release the Escrow Funds as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any transaction fees due to the Advisor or its designees
pursuant to its engagement with the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a one-time $5,000 fee to the Escrow Agent for compensation for its services as
 described herein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the remaining balance of the Escrow Funds not otherwise distributed as described
 above to the Company or as directed by the Company.

If the Escrow Agent has not received a Release Notice, pursuant to Section 1.4, within 30 days of receipt of the Escrow Funds, the Escrow Funds shall be returned in its entirety to each Holder, unless extended in writing by the Company and Advisor.

**ARTICLE II <br> MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 No waiver or any breach of any covenant or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or provision herein contained. No extension of time for performance of any obligation or act shall be deemed an extension of the time for performance of any other obligation or act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile prior to 5:30 p.m. (Eastern Time) on a Business Day,

(b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile on a day that is not a Business Day or later than 5:30 p.m. (Eastern Time) on any Business Day, (c) the 2<sup>nd</sup> Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. As used herein, "Business Day" shall mean any day other than Saturday, Sunday or other day on which commercial banks in the City of New York are authorized or required by law to remain closed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and permitted assigns of the Parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 This Agreement is the final expression of, and contains the entire agreement between, the Parties with respect to the subject matter hereof and supersedes all prior understandings with respect thereto. This Agreement may not be modified, changed, supplemented or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the Parties to be charged or by its agent duly authorized in writing or as otherwise expressly permitted herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Whenever required by the context of this Agreement, the singular shall include the plural and masculine shall include the feminine. This Agreement shall not be construed as if it had been prepared by one of the Parties, but rather as if all Parties had prepared the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 The Parties hereto expressly agree that this Agreement shall be governed by, interpreted under and construed and enforced in accordance with the laws of the State of New York. Any action to enforce, arising out of, or relating in any way to, any provisions of this Agreement shall only be brought in a state or Federal court sitting in New York City.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 The Escrow Agent's duties hereunder may be altered, amended, modified or revoked only by a writing signed by the Parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 The Escrow Agent shall be obligated only for the performance of such duties as are specifically set forth herein and may rely and shall be protected in relying or refraining from acting on any instrument reasonably believed by the Escrow Agent to be genuine and to have been signed or presented by the proper party or Parties. The Escrow Agent shall not be personally liable for any act the Escrow Agent may do or omit to do hereunder as the Escrow Agent while acting in good faith and in the absence of gross negligence, fraud and willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 The Escrow Agent is hereby expressly authorized to disregard any and all warnings given by any of the Parties hereto or by any other person or corporation, excepting only orders or process of courts of law and is hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case the Escrow Agent obeys or complies with any such order, judgment or decree, the Escrow Agent shall not be liable to any of the Parties hereto or to any other person, firm or corporation by reason of such decree being subsequently reversed, modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 The Escrow Agent shall not be liable in any respect on account of the identity, authorization or rights of the Parties executing or delivering or purporting to execute or deliver any documents or papers deposited or called for hereunder in the absence of gross negligence, fraud and willful misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 The Escrow Agent shall be entitled to employ such legal counsel and other experts as the Escrow Agent may deem necessary properly to advise the Escrow Agent in connection with the Escrow Agent's duties hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation; provided that the costs of such compensation shall be borne by the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 The Escrow Agent's responsibilities as escrow agent hereunder shall terminate if the Escrow Agent shall resign by giving written notice to the Parties. In the event of any such resignation, the Parties shall appoint a successor escrow agent and the Escrow Agent shall deliver to such successor escrow agent any documents ("**Escrow Items**") held by the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 If the Escrow Agent reasonably requires other or further instruments in connection with this Agreement or obligations in respect hereto, the necessary Parties hereto shall join in furnishing such instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or right of possession of the documents (if any) or the Escrow Items held by the Escrow Agent hereunder, the Escrow Agent is authorized and directed in the Escrow Agent's sole discretion (i) to retain in the Escrow Agent's possession without liability to anyone all or any part of said documents or the Escrow Items until such disputes shall have been settled either by mutual written agreement of the Parties concerned by a final order, decree or judgment or a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but the Escrow Agent shall be under no duty whatsoever to institute or defend any such proceedings or (ii) to deliver the Escrow Items and any other property and documents held by the Escrow Agent hereunder to a state or Federal court having competent subject matter jurisdiction and located in the City of New York in accordance with the applicable procedure therefore.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 The Parties agree to, severally and not jointly, indemnify and hold harmless the Escrow Agent and its partners, employees, agents and representatives from any and all claims, liabilities, costs or expenses in any way arising from or relating to the duties or performance of the Escrow Agent hereunder or the transactions contemplated hereby other than any such claim, liability, cost or expense to the extent the same shall have been determined by final, unappealable judgment of a court of competent jurisdiction to have resulted from the gross negligence, fraud or willful misconduct of the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same instrument. This Agreement may also be executed via facsimile or by e-mail delivery of a ".pdf" format data file, which shall be deemed an original.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 This Agreement shall be entitled to employ such legal counsel and other experts as the Escrow Agent may deem necessary properly to advise the Escrow Agent in connection with the Escrow Agent's duties hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation; provided that the costs of such compensation shall be borne by the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 The Escrow Agent acts in this matter, and has acted as legal counsel for the Advisor in other matters and may continue to act as legal counsel for the Advisor, from time to time, notwithstanding its duties as the Escrow Agent hereunder. The Parties consent to the Escrow Agent in such capacity as legal counsel and waive any claim that such representation represents a conflict of interest on the part of the Escrow Agent. The Parties understand that the Escrow Agent is relying explicitly on the foregoing provision in entering into this Agreement. If there is any litigation related to any of the Transactions, the Escrow Agent shall not serve as legal counsel to any of the Parties with respect to the Transactions.

 **

***[Remainder of page intentionally left blank]***

 **

 ****

IN WITNESS WHEREOF, the Parties and Escrow Agent hereto have executed this Escrow Agreement as of date first written above.

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| | | |
|:---|:---|:---|
| **ADVISOR:** | **ADVISOR:** | **ADVISOR:** |
| **JOSEPH GUNNAR & CO., LLC** | **JOSEPH GUNNAR & CO., LLC** | **JOSEPH GUNNAR & CO., LLC** |
| By: | /s/ Stephan A. Stein | /s/ Stephan A. Stein |
|  | Name: | Stephan A. Stein |
|  | Title: | President |
| **ESCROW AGENT:** | **ESCROW AGENT:** | **ESCROW AGENT:** |
| **SICHENZIA ROSS FERENCE CARMEL LLP** | **SICHENZIA ROSS FERENCE CARMEL LLP** | **SICHENZIA ROSS FERENCE CARMEL LLP** |
| By: | /s/ Ross D. Carmel, Esq. | /s/ Ross D. Carmel, Esq. |
|  | Name: | Ross D. Carmel, Esq. |
|  | Title: | Partner |
| **COMPANY:** | **COMPANY:** | **COMPANY:** |
| **EXXEL PHARMA, INC.** | **EXXEL PHARMA, INC.** | **EXXEL PHARMA, INC.** |
| By: | /s/ Soren Mogelsvang | /s/ Soren Mogelsvang |
|  | Name: | Soren Mogelsvang |
|  | Title: | Chief Executive Officer |

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**EXHIBIT D**

**FORM OF LOCK-UP AGREEMENT**

LOCK-UP AGREEMENT<br> (5%+ NOTEHOLDERS)

November 19, 2024 Exxel Pharma, Inc.

12635 E. Montview Blvd., Suite 134

Aurora, CO 80045

Joseph Gunnar & Co., LLC 40 Wall Street, Suite 3004 New York, New York 10005

*As Placement Agent to the Company (as defined below)*

 

<u>RE</u>: <u>Exxel Pharma, Inc.</u> Ladies and Gentlemen:

The undersigned, a beneficial owner of 5% or more of the common stock, par value $0.00 per share (the "**Common Stock**"), of Exxel Pharma, Inc, a corporation organized under the laws of the Province of British Columbia, Canada (the "**Company**"), understands that Joseph Gunnar & Co., LLC is acting as the placement agent (the "**Placement Agent**") in connection with the private placement of 12.5% Senior Secured Convertible Debentures and Warrants to accredited investors through a bridge financing (the "**Bridge**") conducted pursuant to a Securities Purchase Agreement dated as of November 19, 2024, by and between the Company and the purchasers signatory thereto (the "**Purchase Agreement**").

To induce the Placement Agent to continue its efforts in connection with the Bridge, the undersigned hereby agrees that, without the prior written consent of the Placement Agent and the Company, the undersigned will not (except upon the occurrence of an Early Termination (as defined below)), during the period beginning on the date of the first closing of the Bridge and ending on the earlier of the third month anniversary of the consummation of a Qualified Offering or a Qualified Event (as those terms are defined in the Purchase Agreement) (the "**Lock-Up Period**"), (1) offer, pledge, sell, contract or agree to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of, lend, hypothecate, establish or increase a "put equivalent position" or liquidate or decrease a "call equivalent position" within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, or otherwise transfer or dispose of, or agree to transfer or dispose of, directly or indirectly, any shares of the Company's Common Stock ("**Shares**") or any securities convertible into or exercisable or exchangeable for Shares, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition (collectively, the "**Lock-Up Securities**"); (2) enter into any swap, hedge or any other agreement, transaction or arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Lock- Up Securities or is repayable with the Lock-Up Securities, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Lock-Up Securities, in cash or otherwise; (3) make any demand for or exercise any right with respect to the registration of any Lock- Up Securities; or (4) publicly disclose the intention to make any offer, sale, pledge or disposition, or to enter into any transaction, swap, hedge or other agreement, transaction or arrangement relating to any Lock-Up Securities. Notwithstanding the foregoing, and subject to the conditions below, the undersigned may transfer Lock-Up Securities without the prior written consent of the Placement Agent and the Company in connection with (a) transactions relating to Lock-Up Securities acquired in open market transactions after the completion of the Qualified Offering or the Qualified Event (not including a direct listing); (b) transfers of Lock-Up Securities as a *bona fide* gift, by will or intestacy or to a family member or trust for the benefit of a family member (for purposes of this lock-up agreement, "family member" means any relationship by blood, marriage or adoption, not more remote than first cousin); (c) by operation of law; (d) transfers of Lock-Up Securities to a charity or educational institution; (e) transfers of Lock-Up Securities (A) to another entity that is an affiliate (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) of the undersigned, or to any investment fund or other entity controlling, controlled by, managing or managed by or under common control with the undersigned or affiliates of the undersigned or who shares a common investment advisor with the undersigned or (B) as part of a distribution to members, partners, shareholders or equity holders of the undersigned; and (f) transfers of Lock-Up Securities pursuant to a *bona fide* third party tender offer, merger, consolidation or other similar transaction that (1) does not qualify as a Qualified Event, (2) is made to all holders of the Company's capital stock, (3) involves a change of control of the Company, and (4) has been approved by the Company's board of directors; <u>provided that,</u> in the case of any transfer pursuant to the foregoing clauses (b), (d) or (e), (i) any such transfer shall not involve a disposition for value, and (ii) each transferee shall sign and deliver to the Placement Agent a lock-up agreement substantially in the form of this lock-up agreement; and <u>provided further</u>, that in the case of any transfer pursuant to the foregoing clauses (c) or (f), each transferee shall sign and deliver to the Placement Agent a lock-up agreement substantially in the form of this lock-up agreement. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent and registrar against the transfer of the undersigned's Lock-Up Securities except in compliance with this lock-up agreement. In furtherance of the foregoing, the Company and its transfer agent are hereby authorized to decline to make or register in its books and records any transfer of Lock-Up Securities if such transfer would constitute a violation or breach of this lock-up agreement.

No provision in this lock-up agreement shall be deemed to restrict or prohibit the exercise, exchange or conversion by the undersigned of any securities exercisable or exchangeable for or convertible into Shares, as applicable; <u>provided</u> that the undersigned does not transfer the Shares acquired on such exercise, exchange or conversion during the Lock-Up Period, unless otherwise permitted pursuant to the terms of this lock-up agreement.

The undersigned understands that the Company and the Placement Agent are relying upon this lock- up agreement in proceeding toward the consummation of the Bridge. The undersigned further understands that this lock-up agreement is irrevocable and shall be binding upon the undersigned's heirs, agents, successors and assigns.

The parties understand that in the event that the first closing of the Bridge is not consummated on or prior to November 30, 2024, or a Qualified Offering or Qualified Event is not consummated on or prior to December 31, 2025, then this lock-up agreement shall be void and of no further force or effect ("**Early Termination**").

Very truly yours,

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[*Signature Page to the Lock-Up Agreement*]

**EXHIBIT E**

**SECURITY AGREEMENT**

**SECURITY AGREEMENT**

This SECURITY AGREEMENT, dated as of November 19, 2024 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the provisions hereof, this "**Agreement**") made by and among Exxel Pharma, Inc., a corporation organized under the laws of the Province of British Columbia (the "**Company**"), each of the direct, wholly-owned domestic subsidiaries of the Company listed on the signature pages hereto as grantors, pledgors, assignors and debtors (collectively with the Company, and any successors in such capacities, the "**Grantors**", and each, a "**Grantor**"), , in favor of John Nash, in its capacity as collateral agent on behalf of the Purchasers pursuant to the Securities Purchase Agreement (as hereinafter defined), as pledgee, assignee and secured party (in such capacities and together with any successors in such capacities, the "**Collateral Agent**").

**RECITALS**

WHEREAS, pursuant to that certain Securities Purchase Agreement, dated as of November 19, 2024, between the Company and each party listed as a "Purchaser" on the signature pages thereto (the "**Purchase Agreement**"), the Company shall sell, and the Purchasers shall purchase, the Debentures and the Warrants (as defined in the Purchase Agreement);

WHEREAS, the Company and each Grantor will receive substantial direct and indirect benefits from the execution, delivery and performance of the obligations under the Purchase Agreement and the other Transaction Documents and each is, therefore, willing to enter into this Agreement;

WHEREAS, this Agreement is given by each Grantor in favor of the Collateral Agent for the ratable benefit of the Secured Parties (as hereinafter defined) to secure the payment and performance of all of the Secured Obligations (as defined below); and

WHEREAS, in order to induce the Purchasers to purchase the Debentures and the Warrants under the Purchase Agreement, each Grantor has agreed to execute and deliver to the Secured Parties this Agreement and to grant in favor of the Collateral Agent, for the ratable benefit of the Secured Parties (as hereinafter defined), a security interest in all of the assets of the Company to secure the prompt payment, performance and discharge in full of all of the Secured Obligations.

NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor and the Collateral Agent hereby agree as follows:

**ARTICLE I**

**DEFINITIONS AND INTERPRETATION**

**Section 1.01 Definitions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise defined herein or in the Purchase Agreement, capitalized terms used herein that are defined in the UCC shall have the meanings assigned to them in the UCC. However, if a term is defined in Article 9 of the UCC differently than in another Article of the UCC, the term has the meaning specified in Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) The following terms shall have the following meanings:

"**Agreement**" has the meaning set forth in the Preamble hereof.

"**Affiliate**" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

"**Business Day**" means any day except Saturdays, Sundays, any day that is a federal holiday in the United States and any day on which the Federal Reserve Bank of New York is not open for business.

"**Claims**" means any and all property and other taxes, assessments and special assessments, levies, fees and all governmental charges imposed upon or assessed against, and landlords', carriers', mechanics', workmen's, repairmen's, laborers', materialmen's, suppliers' and warehousemen's Liens and other claims arising by operation of law against, all or any portion of the Pledged Collateral.

"**Collateral Agent**" has the meaning set forth in the Preamble hereof.

"**Company**" has the meaning set forth in the Preamble hereof.

"**Contracts**" means, collectively, with respect to each Grantor, the Intellectual Property Licenses, all sale, service, performance, equipment or property lease contracts, agreements and grants and all other contracts, agreements or grants (in each case, whether written or oral, or third party or intercompany), between such Grantor and any third party, and all assignments, amendments, restatements, supplements, extensions, renewals, replacements or modifications thereof.

"**Control**" means (i) with respect to any Deposit Account, "control," within the meaning of Section 9-104 of the UCC, (ii) with respect to any Securities Account, or Security Entitlement, , control within the meaning of Section 9-106 of the UCC, (iii) with respect to any Uncertificated Security, control within the meaning of Section 8-106(c) of the UCC, (iv) with respect to any Certificated Security, control within the meaning of Section 8-106(a) or (b) of the UCC, (v) with respect to any Electronic Chattel Paper, control within the meaning of Section 9-105 of the UCC, (vi) with respect to Letter-of-Credit Rights, control within the meaning of Section 9-107 of the UCC and (vii) with respect to any "transferable record" (as that term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction), control within the meaning of Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or in Section 16 of the Uniform Electronic Transactions Act as in effect in the jurisdiction relevant to such transferable record.

"**Control Agreements**" means, collectively, the Deposit Account Control Agreement and the Securities Account Control Agreement.

"**Commercial Tort Claims**" means a claim arising in tort with respect to which: (a) the claimant is an organization; or (b) the claimant is an individual and the claim: (i) arose in the course of the claimant's business or profession; and (ii) does not include damages arising out of personal injury to or the death of an individual.

"**Copyrights**" means, collectively, with respect to each Grantor, all copyrights (whether statutory or common law, whether established or registered in the United States or any other country or any political subdivision thereof, whether registered or unregistered and whether published or unpublished) including those listed in Schedule 6 hereof, all tangible embodiments of the foregoing and all copyright registrations and applications made by such Grantor, in each case, whether now owned or hereafter created or acquired by or assigned to such Grantor, together with any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect to such Grantor's use of such copyrights, (ii) reissues, renewals, continuations and extensions thereof and amendments thereto, (iii) income, fees, royalties, damages, claims and payments now or hereafter due and/or payable with respect thereto, including damages and payments for past, present or future infringements thereof, (iv) rights corresponding thereto throughout the world and (v) rights to sue for past, present or future infringements thereof.

"**Debt**" means money owed or due.

"**Deposit Account Control Agreement**" means an agreement substantially in the form of <u>Exhibit B</u> hereto establishing the Collateral Agent's Control with respect to any Deposit Account.

"**Deposit Accounts**" means, collectively, with respect to each Grantor, (i) all "deposit accounts" as such term is defined in the UCC and in any event shall include (ii) all cash, funds, checks, notes and instruments from time to time on deposit in any of the accounts or sub- accounts described in <u>Schedule 7</u>.

"**Distributions**" means, collectively, with respect to each Grantor, all dividends, cash, options, warrants, rights, instruments, distributions, returns of capital or principal, income, interest, profits and other property, interests (debt or equity) or Proceeds, including as a result of a split, revision, reclassification or other like change of the Pledged Securities, from time to time received, receivable or otherwise distributed or distributable to such Grantor in respect of or in exchange for any or all of the Pledged Securities or Pledged Debt.

"**Entitlement Order**" means a notification communicated to a securities intermediary directing transfer or redemption of a financial asset to which the entitlement holder has a security entitlement.

"**Equity Interests**" means the ownership interests in a business.

"**Event of Default**" shall have the meaning set forth in the Debenture.

"**Excluded Property**" means, collectively:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any lease, license or other agreement or Contract or any property subject to a purchase money security interest, Lien securing a capital lease or similar arrangement, in each case permitted to be incurred under the Purchase Agreement, to the extent that a grant of a security interest or Lien therein would require a consent not obtained or violate or invalidate such lease, license or agreement or Contract or purchase money arrangement, capital lease or similar arrangement or create a right of termination in favor of any other party thereto (other than the Company or another Grantor), in each case after giving effect to the applicable anti-assignment provisions of the UCC and other applicable law and other than Proceeds and receivables thereof, the assignment of which is expressly deemed effective under the UCC or other applicable law notwithstanding such prohibition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any United States intent-to-use Trademark applications to the extent that, and solely during the period in which, the grant, attachment or enforcement of a security interest therein would, under applicable federal law, impair the registrability of such applications or the validity or enforceability of registrations issuing from such applications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) motor vehicles and other assets subject to certificates of title (other than to the extent a Lien thereon can be perfected by the filing of a financing statement under the UCC);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) those assets as to which the Collateral Agent shall reasonably determine, in writing, that the cost or other consequence of obtaining a Lien thereon or perfection thereof are excessive in relation to the benefit to the Secured Parties of the security to be afforded thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any asset or property to the extent that the grant of a security interest is prohibited by applicable law, rule or regulation or requires a consent not obtained of any Governmental Authority pursuant to such applicable law, rule or regulation, in each case after giving effect to the applicable anti-assignment provisions of the UCC and other applicable law and other than Proceeds and receivables thereof, the assignment of which is expressly deemed effective under the UCC or other applicable law notwithstanding such prohibition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any notes and/or mortgages pledged to secure loans under so-called "warehouse loans" pursuant to which a Grantor may obtain lines of credit upon which such Grantor will draw to make loans secured by such mortgages;

provided, however, "Excluded Property" shall not include any Proceeds, products, substitutions or replacements of any Excluded Property (unless such Proceeds, products, substitutions or replacements would constitute Excluded Property).

"**First Priority**" means, with respect to any Lien purported to be created in any Pledged Collateral pursuant to this Agreement, such Lien is the most senior lien to which such Pledged Collateral is subject (subject only to Permitted Liens).

"**Governmental Authority**" means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal, or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank, or other entity exercising executive, legislative, judicial, taxing, regulatory, or administrative powers or functions of, or pertaining to, government (including any supra-national bodies

"**Grantor**" has the meaning set forth in the Preamble hereof.

"**Intellectual Property Collateral**" means, collectively, the Patents, Trademarks (excluding only United States intent-to-use Trademark applications to the extent that and solely during the period in which the grant of a security interest therein would impair, under applicable federal law, the registrability of such applications or the validity or enforceability of registrations issuing from such applications), Copyrights, Trade Secrets, Intellectual Property Licenses and all other industrial, intangible and intellectual property of any type, including mask works and industrial designs.

"**Intellectual Property Licenses**" means, collectively, with respect to each Grantor, all license and distribution agreements with, and covenants not to sue, any other party with respect to any Patent, Trademark, Copyright or Trade Secret or any other patent, trademark, copyright or trade secret, whether such Grantor is a licensor or licensee, distributor or distributee under any such license or distribution agreement, including such agreements listed in Schedule 6 hereof, together with any and all (i) renewals, extensions, supplements and continuations thereof, (ii) income, fees, royalties, damages, claims and payments now and hereafter due and/or payable thereunder and with respect thereto including damages and payments for past, present or future infringements or violations thereof, (iii) rights to sue for past, present and future infringements or violations thereof and (iv) other rights to use, exploit or practice any or all of the Patents, Trademarks, Copyrights or Trade Secrets or any other patent, trademark, copyright or trade secret.

"**Intellectual Property Security Agreement**" means the agreement in the form reasonably satisfactory to the Collateral Agent.

"**Joinder Agreement**" means an agreement substantially in the form of <u>Exhibit A</u> hereto.

"**Lien**" means any mortgage, pledge, hypothecation, assignment (as security), deposit arrangement, encumbrance, lien (statutory or other), charge, or other security interest, or any preference, priority, or other security agreement or preferential arrangement of any kind or nature whatsoever having substantially the same economic effect as any of the foregoing (including, any conditional sale or other title retention agreement and any capital lease).

"**Permitted Lien**" means the individual and collective reference to the following: (a) Liens set forth on <u>Schedule A</u> attached hereto; (b) Liens for taxes, assessments and other governmental charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company) have been established, and (c) Liens imposed by law which were incurred in the ordinary course of the Company's business, such as carriers', warehousemen's and mechanics' Liens, statutory landlords' Liens, and other similar Liens arising in the ordinary course of the Company's business, and which (x) do not individually or in the aggregate materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business of the Company and/or its Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien.

"**Proceeds**" shall mean all "proceeds" as such term is defined in Article 9 of the UCC and, in any event, shall include with respect to each Grantor, any consideration received from the sale, exchange, license, lease or other disposition of any asset or property that constitutes Collateral, any value received as a consequence of the possession of any Collateral and any payment received from any insurer or other person or entity ("**Person**") as a result of the destruction, loss, theft, damage or other involuntary conversion of whatever nature of any asset or property that constitutes Collateral, and shall include: (a) all cash and negotiable instruments received by or held by any Grantor; (b) any claim of any Grantor against any third party for (and the right to sue and recover for and the rights to damages or profits due or accrued arising out of or in connection with) (i) past, present or future infringement or other violation of any patent now or hereafter owned by any Grantor, (ii) past, present or future infringement or dilution or other violation of any trademark now or hereafter owned by any Grantor or injury to the goodwill of the business connected with the use thereof or symbolized thereby, (iii) past, present or future infringement or other violation of any copyright now or hereafter owned by any Grantor, and (iv) past, present or future infringement, misappropriation or misuse or other violation or impairment of any other Intellectual Property now or hereafter owned by any Grantor; and (c) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral.

"**Purchase Agreement**" has the meaning set forth in the Recitals hereof.

"**Material Adverse Effect**" shall have the meaning assigned to such term in <u>Section 3.1(b)</u> of the Purchase Agreement.

"**Organizational Documents**" means the certificate of incorporation and by-laws or any comparable organizational documents of any corporate entity (including limited liability companies and partnerships).

"**Patents**" means, collectively, with respect to each Grantor, all patents issued or assigned to, and all patent applications and registrations made by, such Grantor including those listed in <u>Schedule 6</u> hereof (whether issued, established or registered or recorded in the United States or any other country or any political subdivision thereof) and all tangible embodiments of the foregoing, together with any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect to such Grantor's use of any patents, (ii) inventions and improvements described and claimed therein, (iii) reissues, divisions, continuations, renewals, extensions and continuations-in-part thereof and amendments thereto, (iv) income, fees, royalties, damages, claims and payments now or hereafter due and/or payable thereunder and with respect thereto including damages and payments for past, present or future infringements thereof, (v) rights corresponding thereto throughout the world and (vi) rights to sue for past, present or future infringements thereof.

"**Pledged Collateral**" has the meaning set forth in Section 2.01.

"**Pledged Debt**" means, with respect to each Grantor, all Debt (including intercompany notes) from time to time owed to such Grantor by any obligor, including the Debt described in <u>Schedule 2</u> hereof and issued by the obligors named therein, and all interest, cash, instruments and other property, assets or proceeds from time to time received, receivable or otherwise distributed or distributable in respect of or in exchange for any or all of such Debt and all certificates, instruments or agreements evidencing such Debt, and all assignments, amendments, restatements, supplements, extensions, renewals, replacements or modifications thereof.

"**Pledged Securities**" means, collectively, with respect to each Grantor, (i) all issued and outstanding Equity Interests of each Wholly Owned Domestic Subsidiary that are owned by such Grantor and all options, warrants, rights, agreements and additional Equity Interests of whatever class of any such Subsidiary acquired by such Grantor in any manner, together with all claims, rights, privileges, authority and powers of such Grantor relating to such Equity Interests in each such Subsidiary or under any Organizational Document of each such Subsidiary, and the certificates, instruments and agreements representing such Equity Interests and any and all interest of such Grantor in the entries on the books of any financial intermediary pertaining to such Equity Interests, including the Equity Interests listed in <u>Schedule 2</u> hereof, (ii) all additional Equity Interests of any Wholly Owned Domestic Subsidiary and from time to time acquired by or issued to such Grantor and all options, warrants, rights, agreements and additional Equity Interests of whatever class of any such Subsidiary from time to time acquired by such Grantor in any manner, together with all claims, rights, privileges, authority and powers of such Grantor relating to such Equity Interests or under any Organizational Document of any such Subsidiary, and the certificates, instruments and agreements representing such Equity Interests and any and all interest of such Grantor in the entries on the books of any financial intermediary pertaining to such Equity Interests, from time to time acquired by such Grantor in any manner, and (iii) all Equity Interests issued in respect of the Equity Interests referred to in clause (i) or (ii) upon any consolidation or merger of any issuer of such Equity Interests all Equity Interests of any successor Subsidiary owned by such Grantor (unless such Grantor is the surviving entity) formed by or resulting from any consolidation or merger in which any Person listed in <u>Schedule 2</u> hereof is not the surviving entity.

"**Receivables**" means all (i) Accounts, (ii) Chattel Paper, (iii) Payment Intangibles, (iv) Instruments, (v) General Intangibles, and (vi) to the extent not otherwise covered above, all other rights to payment, whether or not earned by performance, for goods or other property sold, leased, licensed, assigned or otherwise disposed of, or services rendered or to be rendered, regardless of how classified under the UCC together with all of Grantors' rights, if any, in any goods or other property giving rise to such right to payment and all Supporting Obligations related thereto and all Records relating thereto.

"**Related Parties**" means, with respect to any Person, such Person's Affiliates and the directors, officers, employees, partners, agents, trustees, administrators, managers, advisors and representatives of it and its Affiliates.

"**Requirement of Law**" as to any Person, means the certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any law (including common law), statute, ordinance, treaty, rule, regulation, order, decree, judgment, writ, injunction, settlement agreement, requirement, or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

"**Secured Obligations**" means (i) obligations of the Company and each other Grantor from time to time arising under the Purchase Agreement, any other Transaction Document or otherwise with respect to the due and prompt payment of (A) the principal of and premium, if any, and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding on the Debenture), when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, and (B) all other monetary obligations, including fees, costs, attorneys' fees and disbursements, reimbursement obligations, contract causes of action, expenses and indemnities, whether primary, secondary, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Company and each of the other Grantors under or in respect of any Transaction Document, and (ii) the due and prompt performance of all other covenants, duties, debts, obligations and liabilities of any kind of the Company and each of the other Grantors, individually or collectively, under or in respect of the Purchase Agreement, this Agreement, the other Transaction Documents or any other document made, delivered or given in connection with any of the foregoing, in each case whether evidenced by a note or other writing, whether allowed in any bankruptcy, insolvency, receivership or other similar proceeding, whether arising from an extension of credit, issuance of a letter of credit, acceptance, loan, guaranty, indemnification or otherwise, and whether primary, secondary, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, fixed or otherwise.

"**Secured Parties**" means, collectively, the Purchasers and the Collateral Agent.

"**Securities Account Control Agreement**" means an agreement in substantially the form attached as <u>Exhibit C</u> hereto establishing the Collateral Agent's Control with respect to any Securities Account.

"**Securities Collateral**" means, collectively, the Pledged Securities, the Pledged Debt and the Distributions.

"**Trade Secrets**" means, collectively, with respect to each Grantor, all know-how, trade secrets, manufacturing and production processes and techniques, inventions, research and development information, technical, marketing, financial and business data and databases, pricing and cost information, business and marketing plans, customer and supplier lists and information, all other confidential and proprietary information and all tangible embodiments of the foregoing, together with any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect to such trade secrets, (ii) income, fees, royalties, damages, claims and payments now or hereafter due and/or payable with respect thereto including damages and payments for past, present or future misappropriations thereof,

(iii) rights corresponding thereto throughout the world and (iv) rights to sue for past, present or future misappropriations thereof.

"**Trademarks**" means, collectively, with respect to each Grantor, all trademarks (including service marks), slogans, logos, symbols, certification marks, collective marks, trade dress, uniform resource locators (URL's), domain names, corporate names and trade names, whether statutory or common law, whether registered or unregistered and whether established or registered in the United States or any other country or any political subdivision thereof, including those listed in <u>Schedule 6</u> hereof, that are owned by or assigned to such Grantor, all registrations and applications for the foregoing and all tangible embodiments of the foregoing, together with, in each case, the goodwill symbolized thereby and any and all (i) rights and privileges arising under applicable law and international treaties and conventions with respect to such Grantor's use of any trademarks, (ii) reissues, continuations, extensions and renewals thereof and amendments thereto, (iii) income, fees, royalties, damages and payments now and hereafter due and/or payable thereunder and with respect thereto, including damages, claims and payments for past, present or future infringements thereof, (iv) rights corresponding thereto throughout the world and (v) rights to sue for past, present and future infringements thereof.

"**UCC**" means the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that if by reason of mandatory provisions of law, any or all of the perfection or priority of the Collateral Agent's security interest in any item or portion of the Pledged Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, the term "UCC" means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority and for purposes of definitions relating to such provisions.

**"Wholly Owned Domestic Subsidiary"** means any Subsidiary (i) for which all of the Equity Interests of such Subsidiary are directly owned by a Grantor and (ii) which is incorporated or organized under the laws of the United States of America or any state thereof or the District of Columbia.

**Section 1.02 Schedules.** The Collateral Agent and each Grantor agree that the Schedules hereof and all descriptions of Pledged Collateral contained in the Schedules and all amendments and supplements thereto are and shall at all times remain a part of this Agreement.

**ARTICLE II**

**GRANT OF SECURITY INTEREST**

**Section 2.01 Grant of Security Interest.** As collateral security for the payment and performance in full of all the Secured Obligations, each Grantor hereby pledges to the Collateral Agent for the ratable benefit of the Secured Parties, and grants to the Collateral Agent for the ratable benefit of the Secured Parties a Lien on and security interest in and to, all of the right, title and interest of such Grantor in, to and under the following property, wherever located, and whether now existing or hereafter arising or acquired from time to time (collectively, the "**Pledged Collateral**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Equipment, Goods, Inventory and Fixtures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Documents, Instruments and Chattel Paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Letters of Credit and Letter-of-Credit Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all Securities Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Investment Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Intellectual Property Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Commercial Tort Claims described on <u>Schedule 9</u> hereof, as supplemented by any written notification
given by a Grantor to the Collateral Agent pursuant to Section 3.04(f);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all General Intangibles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all Money and all Deposit Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all Supporting Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) all books and records, customer lists, credit files, computer files, programs,
printouts and other computer materials and records relating to the Pledged Collateral and any General Intangibles at any time evidencing
or relating to any of the foregoing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) to the extent not covered by clauses (a) through (m) of this sentence, all other
assets, personal property and rights of such Grantor, whether tangible or intangible, all Proceeds and products of each of the foregoing
and all accessions of and to, substitutions and replacements for, and rents, profits and products of, each of the foregoing, and any and
all Proceeds of any insurance, indemnity, warranty or guaranty payable to such Grantor from time to time with respect to any of the foregoing.

The Grantors shall from time to time at the request of the Collateral Agent give written notice to the Collateral Agent identifying in reasonable detail the Excluded Property (and stating in such notice that such Excluded Property constitutes "Excluded Property") and shall provide to the Collateral Agent such other information regarding the Excluded Property as the Collateral Agent may reasonably request.

**Section 2.02 Filings.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Grantor hereby irrevocably authorizes the Collateral Agent for the benefit of the Secured Parties at any time and from time to time to file in any relevant jurisdiction any financing statements (including fixture filings) and amendments thereto that contain the information required by Article 9 of the UCC of each applicable jurisdiction for the filing of any financing statement or amendment relating to the Pledged Collateral, including (i) whether such Grantor is an organization, the type of organization and, if required, any organizational identification number issued to such Grantor, (ii) any financing or continuation statements or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by such Grantor hereunder, without the signature of such Grantor where permitted by law, including the filing of a financing statement describing the Pledged Collateral as "all assets" or "all personal property" of such Grantor or words of similar effect or as being of an equal or lesser scope or with greater detail and (iii) in the case of a financing statement filed as a fixture filing or covering Pledged Collateral constituting minerals or the like to be extracted or timber to be cut, a sufficient description of the real property to which such Pledged Collateral relates. Each Grantor agrees to provide all information described in the immediately preceding sentence to the Collateral Agent promptly upon reasonable request by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Grantor hereby further authorizes the Collateral Agent to file with the United States Patent and Trademark Office and the United States Copyright Office (and any successor office and any similar office in any United States state or other country) this Agreement, the Intellectual Property Security Agreement, and other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by such Grantor hereunder, without the signature of such Grantor where permitted by law, and naming such Grantor as debtor, and the Collateral Agent as secured party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Grantor hereby ratifies its authorization for the Collateral Agent to have filed in any relevant jurisdiction any initial financing statements or amendments thereto relating to the Pledged Collateral if filed prior to the date hereof.

**ARTICLE III**

**PERFECTION AND FURTHER ASSURANCES**

**Section 3.01 Perfection of Certificated Securities Collateral.** Each Grantor represents and warrants that all certificates, agreements or instruments representing or evidencing the Securities Collateral in existence on the date hereof have been delivered to the Collateral Agent in suitable form for transfer by delivery or accompanied by duly executed undated instruments of transfer or assignment in blank and that (assuming continuing possession by the Collateral Agent of any such Securities Collateral) the Collateral Agent has a perfected First Priority security interest therein. Each Grantor hereby agrees that all certificates, agreements or instruments representing or evidencing the Securities Collateral acquired by such Grantor after the date hereof, shall immediately upon receipt thereof by such Grantor be held by or on behalf of and delivered to the Collateral Agent in suitable form for transfer by delivery or accompanied by duly executed undated instruments of transfer or assignment in blank, all in form and substance satisfactory to the Collateral Agent.

The Collateral Agent shall have the right, at any time upon the occurrence and during the continuance of any Event of Default, to endorse, assign or otherwise transfer to or to register in the name of the Collateral Agent or any of its nominees or endorse for negotiation any or all of the Securities Collateral, without any indication that such Securities Collateral is subject to the security interest hereunder; provided, that after any such Event of Default (as defined in the Debenture) has been waived in accordance with the provisions of the Purchase Agreement and to the extent the Collateral Agent has exercised its rights under this sentence, the Collateral Agent shall, promptly after the reasonable request of the applicable Grantor(s), cause such Securities Collateral to be transferred to, or request that such Securities Collateral is registered in the name of, the applicable Grantor(s) to the extent it or its nominees holds an interest in such Securities Collateral at such time.

**Section 3.02 Perfection of Uncertificated Securities Collateral.** Each Grantor represents and warrants that the Collateral Agent has a perfected First Priority security interest in all uncertificated Pledged Securities pledged by it hereunder that are in existence on the date hereof. Each Grantor hereby agrees that if any of the Pledged Securities are at any time not evidenced by certificates of ownership, such Grantor will (a) cause the issuer thereof to either (i) register the Collateral Agent as the registered owner of such securities or (ii) agree in an authenticated record with such Grantor and the Collateral Agent that such issuer will comply with instructions with respect to such securities originated by the Collateral Agent without further consent of such Grantor, such authenticated record to be in form and substance satisfactory to the Collateral Agent, (b) upon request by the Collateral Agent, provide to the Collateral Agent an opinion of counsel, in form and substance reasonably satisfactory to the Collateral Agent, confirming such pledge and perfection thereof, and (c) if reasonably requested by the Collateral Agent, request the issuer of such Pledged Securities to cause such Pledged Securities to become certificated and in the event such Pledged Securities become certificated, to deliver such Pledged Securities to the Collateral Agent in accordance with the provisions of Section 3.01. Each Grantor hereby agrees, with respect to Pledged Securities that are partnership interests or limited liability company interests, that after the occurrence and during the continuance of any Event of Default, upon request by the Collateral Agent, such Grantor will (A) cause the Organizational Documents of each issuer that is a Subsidiary of the Company to be amended to provide that such Pledged Securities shall be treated as "securities" for purposes of the UCC and (B) cause such Pledged Securities to become certificated and delivered to the Collateral Agent in accordance with the provisions of Section 3.01.

**Section 3.04 Other Actions for Perfection.** In order to further insure the attachment, perfection and priority of, and the ability of the Collateral Agent to enforce, the Collateral Agent's security interest in the Pledged Collateral, each Grantor represents and warrants (as to itself) as follows and agrees, in each case at such Grantor's own expense, to take the following actions with respect to the following Pledged Collateral:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Instruments and Tangible Chattel Paper**. (i) As of the date hereof, no amounts payable to such Grantor under or in connection with any of the Pledged Collateral are evidenced by any Instrument or Tangible Chattel Paper other than Instruments and Tangible Chattel Paper listed on <u>Schedule 4</u> hereof and (ii) each Instrument and each item of Tangible Chattel Paper listed on <u>Schedule 4</u> hereof, has been properly endorsed, assigned and delivered to the Collateral Agent, accompanied by undated instruments of transfer or assignment duly executed in blank. If any amount then payable under or in connection with any of the Pledged Collateral shall be evidenced by any Instrument or Tangible Chattel Paper, the Grantor acquiring such Instrument or Tangible Chattel Paper shall promptly (but in any event within five (5) Business Days after receipt thereof by such Grantor) endorse, assign and deliver the same to the Collateral Agent, accompanied by such undated instruments of transfer or assignment duly executed in blank as the Collateral Agent may from time to time reasonably specify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Deposit Accounts**. (i) As of the date hereof, no Grantor has opened or maintains any Deposit Accounts other than the accounts listed in <u>Schedule 7</u> hereof and (ii) the Collateral Agent has a perfected First Priority security interest in each Deposit Account listed in <u>Schedule 7</u> hereof which security interest is perfected by Control. No Grantor shall hereafter establish and maintain any Deposit Account unless (1) the applicable Grantor shall have given the Collateral Agent ten (10) days prior written notice of its intention to establish such new Deposit Account with a depository bank, and (2) unless the Collateral Agent agrees in writing that it is not required, such depository bank and such Grantor shall have duly executed and delivered to the Collateral Agent a Deposit Account Control Agreement with respect to such Deposit Account. The Collateral Agent agrees with each Grantor that the Collateral Agent shall not give any instructions directing the disposition of funds from time to time credited to any Deposit Account subject to a Control Agreement or withhold any withdrawal rights from such Grantor with respect to funds from time to time credited to any Deposit Account subject to a Control Agreement unless an Event of Default under the Debenture has occurred and is continuing. No Grantor shall grant Control of any Deposit Account to any Person other than the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) Investment Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As of the date hereof, no Grantor (1) has any Securities Accounts other than those listed in <u>Schedule 7</u> hereof and the Collateral Agent has a perfected First Priority security interest in such Securities Accounts which security interest is perfected by Control unless the Collateral Agent agrees in writing that it is not required, (2) holds, owns or has any interest in any certificated securities or uncertificated securities other than those constituting Pledged Securities and those maintained in Securities Accounts listed in <u>Schedule 7</u> hereof. Unless the Collateral Agent agrees in writing that it is not required, as of the date hereof, each Grantor has duly authorized, executed and delivered a Securities Account Control Agreement with respect to each Securities Account listed in <u>Schedule 7</u> hereof, if any, as applicable. No Grantor shall hereafter establish or maintain any Securities Account with any Securities Intermediary unless (A) the applicable Grantor shall have given the Collateral Agent ten (10) Business Days prior written notice of its intention to establish such new Securities Account with such Securities Intermediary, and (B) unless the Collateral Agent agrees in writing that it is not required, such Securities Intermediary, as the case may be, and such Grantor shall have duly executed and delivered a Control Agreement with respect to such Securities Account, as the case may be. Each Grantor shall accept any cash and Investment Property in trust for the benefit of the Collateral Agent and within five (5) Business Days of actual receipt thereof, deposit any and all cash and Investment Property (other than any Investment Property pledged pursuant to clauses (ii)(1), (iii)(1) or (iii)(3) below) received by it into a Deposit Account or Securities Account subject to the Collateral Agent's Control. The Collateral Agent agrees with each Grantor that the Collateral Agent shall not give any Entitlement Orders or instructions or directions to any issuer of uncertificated securities, Securities Intermediary, and shall not withhold its consent to the exercise of any withdrawal or dealing rights by such Grantor, unless an Event of Default under the Debenture has occurred and is continuing or, after giving effect to any such investment and withdrawal rights, would occur. No Grantor shall grant Control over any Investment Property to any Person other than the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any Grantor shall at any time hold or acquire any certificated securities constituting Investment Property, such Grantor shall promptly (1) endorse, assign and deliver the same to the Collateral Agent, accompanied by such undated instruments of transfer or assignment duly executed in blank, all in form and substance satisfactory to the Collateral Agent or (2) deliver such securities into a Securities Account with respect to which a Securities Account Control Agreement is in effect in favor of the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If any securities now or hereafter acquired by any Grantor constituting Investment Property are uncertificated and are issued to such Grantor or its nominee directly by the issuer thereof, such Grantor shall promptly notify the Collateral Agent thereof and pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, either (1) cause the issuer to agree to comply with instructions from the Collateral Agent as to such securities, without further consent of any Grantor or such nominee, (2) cause a Security Entitlement with respect to such uncertificated security to be held in a Securities Account with respect to which the Collateral Agent has Control or (3) arrange for the Collateral Agent to become the registered owner of such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Electronic Chattel Paper and Transferable Records**. As of the date hereof, no amount under or in connection with any of the Pledged Collateral is evidenced by any Electronic Chattel Paper or any "transferable record" (as that term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction) other than such Electronic Chattel Paper and transferable records listed on <u>Schedule 4</u> hereof. Each Grantor will maintain all (i) Electronic Chattel Paper so that the Collateral Agent has Control of the Electronic Chattel Paper and (ii) all transferable records so that the Collateral Agent has Control of the transferable records. The Collateral Agent agrees with such Grantor that the Collateral Agent will arrange, pursuant to procedures reasonably satisfactory to the Collateral Agent and so long as such procedures will not result in the Collateral Agent's loss of Control, for the Grantor to make alterations to the Electronic Chattel Paper or transferable record permitted under Section 9-105 of the UCC or, as the case may be, Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in Control to allow without loss of Control, unless an Event of Default has occurred and is continuing or would occur after taking into account any action by such Grantor with respect to such Electronic Chattel Paper or transferable record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Letter-of-Credit Rights**. If any Grantor is at any time a beneficiary under a Letter of Credit now or hereafter issued in favor of such Grantor, such Grantor shall promptly notify the Collateral Agent thereof and such Grantor shall maintain all Letter-of-Credit Rights assigned to the Collateral Agent so that the Collateral Agent has Control of the Letter-of-Credit Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Commercial Tort Claims**. On the date hereof, no Grantor holds any Commercial Tort Claim which might reasonably result in awarded damages (less any and all legal and other expenses incurred or reasonably expected to be incurred by such Grantor) in excess of $50,000 that is not listed on <u>Schedule 9</u>. Each Grantor will promptly give notice to the Collateral Agent of any Commercial Tort Claim that is commenced in the future and will immediately execute or otherwise authenticate a supplement to this Agreement, and otherwise take all necessary action, to subject such Commercial Tort Claim to the First Priority security interest created under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Landlord's Access Agreements**. Each Grantor shall use its commercially reasonable efforts to obtain as soon as practicable after the date hereof with respect to each location where such Grantor maintains Pledged Collateral and/or landlord access agreement, as applicable, and use commercially reasonable efforts to obtain landlord access agreement and/or landlord's lien waiver, as applicable, from all such landlords, as applicable, who from time to time have possession of Pledged Collateral in the ordinary course of such Grantor's business and if reasonably requested by the Collateral Agent. A landlord access agreement and/or landlord's lien waiver shall not be required if the value of the Pledged Collateral held at the relevant leased location is less than $10,000.

**Section 3.05 Joinder of Additional Grantors.** The Grantors shall cause each Wholly Owned Domestic Subsidiary of the Company which, from time to time, after the date hereof shall be required to pledge any assets to the Collateral Agent for the ratable benefit of the Secured Parties pursuant to the provisions of the Purchase Agreement, to execute and deliver to the Collateral Agent a Joinder Agreement within ten (10) days of the date on which it was acquired or created and, upon such execution and delivery, such Subsidiary shall constitute a "Grantor" for all purposes hereunder with the same force and effect as if originally named as a Grantor herein. Upon the execution and delivery by any Subsidiary of a Joinder Agreement, the supplemental schedules attached to such Joinder Agreement shall be incorporated into and become part of and supplement the Schedules to this Agreement and each reference to such Schedules shall mean and be a reference to such Schedules as supplemented pursuant to each Joinder Agreement and from time to time. The execution and delivery of such Joinder Agreement shall not require the consent of any Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full force and effect notwithstanding the addition of any new Grantor as a party to this Agreement.

**Section 3.06 Further Assurances.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Further Assurances**. Each Grantor shall take such further actions, and execute and/or deliver to the Collateral Agent such additional financing statements, amendments, assignments, agreements, supplements, powers and instruments, as the Collateral Agent may in its reasonable judgment deem necessary or appropriate in order to create and/or maintain the validity, perfection or priority of and protect any security interest granted or purported to be granted in the Pledged Collateral as provided herein and the rights and interests granted to the Collateral Agent hereunder, and enable the Collateral Agent to exercise and enforce its rights, powers and remedies hereunder with respect to any Pledged Collateral, including the filing of any financing statements, continuation statements and other documents under the UCC (or other similar laws) in effect in any jurisdiction with respect to the security interest created hereby, the filing of the Intellectual Property Security Agreement and supplemental Intellectual Property Security Agreements with the United States Patent and Trademark Office and the United States Copyright Office and the execution and delivery of Control Agreements with respect to Securities Accounts, Commodities Accounts and Deposit Accounts, all in form reasonably satisfactory to the Collateral Agent and in such offices wherever required by law to perfect, continue and maintain the validity, enforceability and priority of the security interest in the Pledged Collateral as provided herein and to preserve the other rights and interests granted to the Collateral Agent hereunder, as against third parties, with respect to the Pledged Collateral. Without limiting the generality of the foregoing, but subject to applicable law, each Grantor shall make, execute, endorse, acknowledge, file or refile and/or deliver to the Collateral Agent from time to time upon reasonable request by the Collateral Agent such lists, schedules, descriptions and designations of the Pledged Collateral, statements, copies of warehouse receipts, bills of lading, documents of title, vouchers, invoices, schedules, confirmatory assignments, supplements, additional security agreements, conveyances, financing statements, transfer endorsements, powers of attorney, certificates, reports and other assurances or instruments as the Collateral Agent shall reasonably request. If an Event of Default has occurred and is continuing, the Collateral Agent may institute and maintain, in its own name or in the name of any Grantor, such suits and proceedings as the Collateral Agent may be advised by counsel to be necessary or expedient to prevent any impairment of the security interest in or the perfection thereof in the Pledged Collateral. All of the foregoing shall be at the sole cost and expense of the Grantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Report**. Within 30 days after the end of each fiscal quarter, the Company shall furnish the Collateral Agent with a report listing for such quarter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Subsidiary formed or acquired by any Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any certificated securities, uncertificated securities, other
equity interests or Debt not held in a Securities Account acquired by any Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any change in name or jurisdiction of organization of any
Grantor as permitted by the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any new location of Inventory or Equipment of any Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all Promissory Notes, Instruments or Chattel Paper received
by any Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any Securities Account or Deposit Account opened by any Grantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all applications for and registration received by any Grantor
in respect of any Intellectual Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any Commercial Tort Claims acquired by any Grantor.

**ARTICLE IV**

**REPRESENTATIONS, WARRANTIES AND COVENANTS**

Each Grantor represents, warrants and covenants as follows:

**Section 4.01 Purchase Agreement Representations.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Purchase Agreement Representations**. Each Grantor makes the representations and warranties set forth in Section 3 of the Purchase Agreement as they relate to the Grantors or to the Transaction Documents to which any Grantor is a party, each of which is hereby incorporated herein by reference, and the Collateral Agent and the Secured Parties shall be entitled to rely on each of them as if they were fully set forth herein, provided that each reference in each such representation and warranty to the Company's knowledge shall, for the purposes of this Section 4.01, be deemed to be a reference to the Grantors' knowledge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Existence**. Each Grantor (i) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation, (ii) is duly qualified as a foreign corporation or other organization and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification except to the extent that the failure to qualify in such jurisdiction would not reasonably be expected to have a Material Adverse Effect and (iii) is in compliance with all Requirements of Law except to the extent that the failure to comply therewith would not, in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Power and Authorization**. Each Grantor has the power and authority, and the legal right, to own or lease and operate its property, and to carry on the business as now conducted and as proposed to be conducted, and to execute, deliver and perform the Transaction Documents to which it is a party. Each Grantor has taken all necessary organizational action to authorize the execution, delivery and performance of the Transaction Documents to which it is a party. No consent or authorization of, filing with, notice to or other act by, or in respect of, any Governmental Authority or any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement or any of the Transaction Documents, except the consents, authorizations and filings referred to in <u>Schedule 3</u>. Each Transaction Document, as applicable, has been duly executed and delivered by each Grantor thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Enforceability**. This Agreement constitutes, and each other Transaction Document when delivered hereunder will constitute, a legal, valid and binding obligation of each Grantor thereto, enforceable against each such Grantor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **No Litigation**. No action, suit, litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the Knowledge of any Grantor, threatened by or against any Grantor or against any of its property or assets (i) which challenges the legality, validity or enforceability of any of the Transaction Documents, or (ii) that, to the Knowledge of the Company, could, if there were an unfavorable decision, reasonably be expected to have a Material Adverse Effect.

**Section 4.02 Ownership of Property and No Other Liens.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Grantor has fee simple title to, or a valid leasehold interest in, all its real property, and good title to, or a valid leasehold interest in, all its Pledged Collateral, and none of such property is subject to any Lien, claim, option or right of others, except for the security interest granted to the Collateral Agent for the ratable benefit of the Secured Parties and Permitted Liens and such defects in title as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Person other than the Collateral Agent has control or possession of all or any part of the Pledged Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) None of the Pledged Collateral constitutes, or is the Proceeds of, (i) Farm Products and (ii) Manufactured Homes. None of the account debtors or other Persons obligated on any of the Pledged Collateral is a Governmental Authority covered by the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Pledged Collateral.

**Section 4.03 Perfected First Priority Security Interest.** This Agreement is effective to create in favor of the Collateral Agent for the ratable benefit of the Secured Parties, a legal, valid and enforceable security interest in the Pledged Collateral and the Proceeds thereof. In the case of the certificated Pledged Securities, when stock certificates representing such Pledged Securities are delivered to the Collateral Agent and in the case of the other Pledged Collateral, when financing statements and other filings specified on <u>Schedule 3</u> hereof in appropriate form are filed in the offices specified on <u>Schedule 3</u> hereof and other actions described in <u>Schedule 3</u> hereof are taken, this Agreement shall constitute, and will at all times constitute, a fully perfected First Priority Lien on, and security interest in, all rights, title and interest of the Grantors in such Pledged Collateral and the Proceeds thereof, as security for the Secured Obligations.

**Section 4.04 No Transfer of Pledged Collateral.** No Grantor shall sell, offer to sell, dispose of, convey, assign or otherwise transfer, or grant any option with respect to, restrict, or grant, create, permit or suffer to exist any Lien on, any of the Pledged Collateral pledged by it hereunder or any interest therein except as permitted by this Agreement.

**Section 4.05 Claims Against Pledged Collateral.** Each Grantor shall, at its own cost and expense, defend title to the Pledged Collateral and the First Priority security interest and Lien granted to the Collateral Agent with respect thereto against all claims and demands of all Persons at any time claiming any interest therein materially adverse to the Collateral Agent or any other Secured Party other than Liens permitted under the Purchase Agreement. Except as expressly permitted by this Agreement or any other Transaction Document, there is no agreement to which any Grantor is a party, order, judgment or decree, and no Grantor shall enter into any agreement or take any other action, that could reasonably be expected to restrict the transferability of any of the Pledged Collateral or otherwise impair or conflict in any material respect with such Grantors' obligations or the rights of the Collateral Agent hereunder.

**Section 4.06 Other Financing Statements.** No financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral or listing any Grantor as debtor is on file in any recording office, except such as have been filed in favor of the Collateral Agent pursuant to this Agreement or as otherwise permitted under the Purchase Agreement. No Grantor shall execute, authorize or permit to be filed in any recording office any financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral or listing such Grantor as debtor with respect to all or any part of the Pledged Collateral, except financing statements and other instruments filed in respect of Liens permitted under the Purchase Agreement.

**Section 4.07 Changes in Name, Jurisdiction of Organization, Etc.** On the date hereof, such Grantor's type of organization, jurisdiction of organization, legal name, Federal Taxpayer Identification Number, organizational identification number (if any), and chief executive office or principal place of business are indicated next to its name in <u>Schedule 5</u> hereof. <u>Schedule 5</u> also lists all of such Grantor's jurisdictions and types of organization, legal names and locations of chief executive office or principal place of business at any time during the four months preceding the date hereof, if different from those referred to in the preceding sentence. Such Grantor shall not, except upon not less than 10 days' prior written notice (in the form of an officer's certificate), or such lesser notice period agreed to by the Collateral Agent, to the Collateral Agent, and delivery to the Collateral Agent of all additional financing statements, information and other documents reasonably requested by the Collateral Agent to maintain the validity, perfection and priority of the security interests provided for herein: (a) change its legal name, identity, type of organization or corporate structure; (b) change the location of its chief executive office or its principal place of business; (c) change its Federal Taxpayer Identification Number or organizational identification number (if any); or (d) change its jurisdiction of organization (in each case, including by merging with or into any other entity, reorganizing, organizing, dissolving, liquidating, reincorporating or incorporating in any other jurisdiction).

Such Grantor shall, prior to any change described in the preceding sentence, take all actions reasonably requested by the Collateral Agent to maintain the perfection and priority of the security interest of the Collateral Agent for the ratable benefit of the Secured Parties in the Pledged Collateral intended to be granted hereunder.

Each Grantor agrees to promptly provide the Collateral Agent with certified Organizational Documents reflecting any of the changes described in this Section 4.07. Each Grantor also agrees to promptly notify the Collateral Agent of any change in the location of any office in which it maintains books or records relating to Pledged Collateral owned by it or any office or facility at which Pledged Collateral is located (including the establishment of any such new office or facility).

**Section 4.08 Location of Inventory and Equipment.** On the date hereof, the Inventory and the material Equipment (other than mobile goods and goods in transit) of such Grantor are kept at locations listed in <u>Schedule 5</u> hereof. <u>Schedule 5</u> also lists the locations of such Grantor's Inventory and the material Equipment (other than mobile goods and goods in transit) for the four months preceding the date hereof, if different from those referred in the preceding sentence.

Such Grantor shall not move any Equipment or Inventory, to any location, other any location that is listed in <u>Schedule 5</u> hereof except upon not less than 30 days' prior written notice (in the form of an officer's certificate), or such lesser notice period agreed to by the Collateral Agent, to the Collateral Agent, of its intention so to do, clearly describing such new location and providing such other information and documents to the Collateral Agent reasonably requested by the Collateral Agent to maintain the validity, perfection and priority of the security interests provided for herein.

Such Grantor shall, prior to any change described in the preceding sentence, take all actions reasonably requested by the Collateral Agent to maintain the perfection and priority of the security interest of the Collateral Agent for the ratable benefit of the Secured Parties in the Pledged Collateral, including using commercially reasonable efforts to obtain waivers of landlord's or warehousemen's liens with respect to such new location, if applicable, who from time to time have possession of Pledged Collateral; provided that, in no event shall any Equipment or Inventory of any Grantor be moved to any location outside of the continental United States.

**Section 4.09 Pledged Securities and Pledged Debt.** <u>Schedule 2</u> sets forth a complete and accurate list of all Pledged Securities and Pledged Debt held by such Grantor as of the date hereof. The Pledged Securities pledged by such Grantor hereunder constitute all of the issued and outstanding Equity Interests of each Wholly Owned Domestic Subsidiary, as applicable, owned by such Grantor. Such Equity Interests represent all of the outstanding Equity Interests of each such issuer which is a Subsidiary except as noted in such Schedule. All of the Pledged Securities existing on the date hereof have been, and to the extent any Pledged Securities are hereafter issued, such Pledged Securities will be, upon such issuance, duly authorized, validly issued, fully paid and non-assessable. There is no amount or other obligation owing by any Grantor to any issuer of the Pledged Securities in exchange for or in connection with the issuance of the Pledged Securities or any Grantor's status as a partner or a member of any issuer of the Pledged Securities. No Grantor is in default or violation of any material provisions of any agreement to which such Grantor is a party relating to the Pledged Securities, except any such default or violation that could not reasonably be expected to result in a Material Adverse Effect.

All of the Pledged Debt described on <u>Schedule 2</u> has been duly authorized, authenticated or issued, and delivered and is the legal, valid and binding obligation of the issuers thereof, enforceable in accordance with their respective terms (subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors' rights generally, general equitable principles (whether considered in a proceeding in equity or at law)) and is not in default. The Pledged Debt constitutes all of the issued and outstanding intercompany indebtedness owing to such Grantor and if evidenced by promissory notes, such notes have been delivered to the Collateral Agent.

No Securities Collateral pledged by such Grantor is subject to any defense, offset or counterclaim, nor have any of the foregoing been asserted or alleged against such Grantor by any Person with respect thereto, and there are no certificates, instruments, documents or other writings (other than the Organizational Documents and certificates representing such Pledged Securities or Pledged Debt, if any, that have been delivered to the Collateral Agent) which evidence any Pledged Securities or Pledged Debt of such Grantor.

Each Grantor shall, upon obtaining any Pledged Securities or Pledged Debt of any Person, accept the same in trust for the benefit of the Collateral Agent and promptly (but in any event within five Business Days after receipt thereof) deliver to the Collateral Agent an updated <u>Schedule 2</u>, and the certificates and other documents required under Section 3.01 and Section 3.02 in respect of the additional Pledged Securities or Pledged Debt which are to be pledged pursuant to this Agreement, and confirming the Lien hereby created on such additional Pledged Securities or Pledged Debt.

**Section 4.10 Approvals.** In the event that the Collateral Agent desires to exercise any remedies, voting or consensual rights or attorney-in-fact powers set forth in this Agreement and determines it necessary to obtain any approvals or consents of any Governmental Authority or any other Person therefor, then, upon the reasonable request of the Collateral Agent, such Grantor agrees to use its commercially reasonable efforts to assist the Collateral Agent in obtaining as soon as practicable any necessary approvals or consents for the exercise of any such remedies, rights and powers.

**Section 4.11 Pledged Collateral Information.** All information set forth herein, including the schedules annexed hereto, and all information contained in any documents, schedules and lists heretofore delivered to the Collateral Agent or any Secured Party, in connection with this Agreement, in each case, relating to the Pledged Collateral, is accurate and complete in all material respects. The Pledged Collateral described on the schedules hereof constitutes all of the property of such type of Pledged Collateral owned or held by the Grantors.

**Section 4.12 Insurance.** In the event that the Proceeds of any insurance claim are paid to any Grantor after the Collateral Agent has exercised its right to foreclose on all or any part of the Pledged Collateral during the existence of an Event of Default, such Proceeds shall be held in trust for the benefit of the Collateral Agent and immediately after receipt thereof shall be paid to the Collateral Agent for application in accordance with the Purchase Agreement.

**Section 4.13 Compliance With Laws.** Each Grantor shall pay promptly when due all Claims upon the Pledged Collateral or incurred in connection with the use or operation of the Pledged Collateral or incurred in connection with this Agreement. All Claims imposed upon or assessed against the Pledged Collateral have been paid and discharged except to the extent such Claims constitute a Lien not yet due and payable which is a Contested Lien or a Lien permitted by the Purchase Agreement. In the event any Grantor shall fail to make such payment contemplated in the immediately preceding sentence, the Collateral Agent may (following notice to the Grantor, to the extent practicable) do so for the account of such Grantor and the Grantors shall promptly reimburse and indemnify the Collateral Agent for all costs and expenses incurred by the Collateral Agent under this Section 4.13 in accordance with Section 9.08. Each Grantor shall comply with all Requirements of Law applicable to the Pledged Collateral, except where the failure to comply could not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect. Each Grantor has at all times operated, and shall continue to operate, its business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment, storage or disposal of hazardous materials or substances.

**Section 4.14 Intellectual Property.** (a) <u>Schedule 6</u> lists all patents and pending applications, registered trademarks and pending applications, registered domain names, registered copyrights and pending applications and material Intellectual Property Licenses owned by such Grantor; (b) all Intellectual Property Collateral is valid, subsisting, unexpired and enforceable and has not been abandoned; (c) except as described on <u>Schedule 6</u>, such Grantor is the exclusive owner of all right, title and interest in and to, or has the right to use, all such Intellectual Property Collateral; (d) consummation and performance of this Agreement will not result in the invalidity, unenforceability or impairment of any such Intellectual Property Collateral, or in default or termination of any material Intellectual Property License; (e) except as described on <u>Schedule 6</u>, there are no outstanding holdings, decisions, consents, settlements, decrees, orders, injunctions, rulings or judgments that would limit, cancel or question the validity or enforceability of any such Intellectual Property Collateral or such Grantor's rights therein or use thereof; (f) to such Grantor's knowledge, except as described on <u>Schedule 6</u>, the operation of such Grantor's business and such Grantor's use of Intellectual Property Collateral in connection therewith, does not infringe or misappropriate the intellectual property rights of any other Person; (g) except as described in <u>Schedule 6</u>, no action or proceeding is pending or, to such Grantor's knowledge, threatened (i) seeking to limit, cancel or question the validity of any Intellectual Property Collateral or such Grantor's ownership interest or rights therein, (ii) which, if adversely determined, could have a Material Adverse Effect on the value of any such Intellectual Property Collateral or (iii) alleging that any such Intellectual Property Collateral, or such Grantor's use thereof in the operation of its business, infringes or misappropriates the intellectual property rights of any Person and (h) to such Grantor's knowledge, there has been no Material Adverse Effect on such Grantor's rights in its material Trade Secrets as a result of any unauthorized use, disclosure or appropriation by or to any Person, including such Grantor's current and former employees, contractors and agents.

**Section 4.15 Inspection of Pledged Collateral** Each Grantor shall keep the Pledged Collateral in good order and repair and will not use the same in violation of law or any policy of insurance thereon. Each Grantor shall permit the Collateral Agent, or its designee, to inspect the Pledged Collateral at any reasonable time, wherever located.

**Section 4.16 Negative Pledge.** The Company shall not, , without the prior written consent of the Collateral Agent, (i) create, grant, or permit to exist any Lien upon or with respect to the assets or properties of such Joint Venture or (ii) enter into any agreement containing any provisions which would violate or breach the terms of the foregoing clause (i).

**ARTICLE V**

**SECURITIES COLLATERAL**

**Section 5.01 Existing Voting Rights and Distributions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) So long as no Event of Default shall have occurred and be continuing and the Company has not received written notice from the Collateral Agent stating its intention to exercise its rights and remedies under Section 5.01(c):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Securities Collateral or any part thereof for any purpose not inconsistent with the terms or purposes hereof, the Purchase Agreement or any other Transaction Document; provided, however, that no Grantor shall in any event exercise such rights in any manner which could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Grantor shall be entitled to receive and retain, and to utilize free and clear of the Lien hereof, any and all Distributions, if and to the extent made in accordance with the provisions of the Purchase Agreement; provided, however, that any and all such Distributions consisting of rights or interests in the form of securities shall be immediately delivered to the Collateral Agent to hold as Pledged Collateral and shall, if received by any Grantor, be received in trust for the benefit of the Collateral Agent, be segregated from the other property or funds of such Grantor and be promptly (but in any event within five Business Days after receipt thereof) delivered to the Collateral Agent as Pledged Collateral in the same form as so received (with any necessary endorsement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Collateral Agent shall be deemed without further action to have granted to each Grantor all necessary consents relating to voting rights and shall, if necessary, upon written request of any Grantor and at the sole cost and expense of such Grantor, from time to time execute and deliver (or cause to be executed and delivered) to such Grantor all such instruments as such Grantor may reasonably request in order to permit such Grantor to exercise the voting and other rights which it is entitled to exercise pursuant to Section 5.01(a)(i) and to receive the Distributions which it is authorized to receive and retain pursuant to Section 5.01(a)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the occurrence and during the continuance of any Event of Default and upon receipt by the Company of written notice from the Collateral Agent including details of the Event of Default and stating its intent to exercise its rights and remedies under Section 5.01:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All rights of each Grantor to exercise the voting and other consensual rights it would otherwise be entitled to exercise pursuant to Section 5.01(a)(i) shall immediately cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall have the sole right to exercise such voting and other consensual rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All rights of each Grantor to receive Distributions which it would otherwise be authorized to receive and retain pursuant to Section 5.01(a)(ii) shall immediately cease and all such rights shall thereupon become vested in the Collateral Agent, which shall have the sole right to receive and hold such Distributions as Pledged Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Grantor shall, at its sole cost and expense, from time to time execute and deliver to the Collateral Agent appropriate instruments as the Collateral Agent may request in order to permit the Collateral Agent to exercise the voting and other rights which it may be entitled to exercise pursuant to Section 5.01(c)(i) and to receive all Distributions which it may be entitled to receive under Section 5.01(c)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All Distributions which are received by any Grantor contrary to the provisions of Section 5.01(a)(ii) or Section 5.01(c) shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall promptly (but in any event within ten

(10) Business Days after receipt thereof by such Grantor) be paid over to the Collateral Agent as Pledged Collateral in the same form as so received (with any necessary endorsement).

**Section 5.02 Certain Agreements of Grantors.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the case of each Grantor which is an issuer of Securities Collateral, such Grantor agrees to be bound by the terms of this Agreement relating to the Securities Collateral issued by it and will comply with such terms insofar as such terms are applicable to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of each Grantor which is a partner, shareholder or member, as the case may be, in a partnership, limited liability company or other entity, such Grantor hereby (i) consents to the extent required by the applicable Organizational Document to the pledge by each other Grantor, pursuant to the terms hereof, of the Pledged Securities in such partnership, limited liability company or other entity and, upon the occurrence and during the continuance of an Event of Default, to the transfer of such Pledged Securities to the Collateral Agent or its nominee and to the substitution of the Collateral Agent or its nominee as a substituted partner, shareholder or member in such partnership, limited liability company or other entity with all the rights, powers and duties of a general partner, limited partner, shareholder or member, as the case may be, and (ii) irrevocably waives any and all provisions of the applicable Organizational Documents that conflict with the terms of this Agreement or prohibit, restrict, condition or otherwise affect the grant hereunder of any Lien on any of the Pledged Collateral or any enforcement action which may be taken in respect of any such Lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the case of each Grantor which is a partner, shareholder or member, as the case may be, in a partnership, limited liability company or other entity, such Grantor has caused each partnership or limited liability company included in the Pledged Collateral to amend its partnership agreement or limited liability company agreement to include the following provision: "Notwithstanding any other provision of this agreement (including any transfer restrictions set forth herein), in the event that an Event of Default shall have occurred under that certain Debenture (as such Debenture may be amended, modified, supplemented or restated from time to time) dated as of November 19, 2024 (the "Debenture") among Exxel Pharma, Inc., as borrower (the "Company"), certain subsidiaries of the Company, as Guarantors, and Collateral Agent, (i) the lenders from time to time parties thereto and the agents party thereto and the Collateral Agent shall be entitled to exercise any of their respective rights and remedies with respect to equity interests in the Company, and (ii) each Member hereby irrevocably consents to the transfer of any equity interest and all related management and other rights in the Company to the Collateral Agent or any nominee of the Collateral Agent. The Collateral Agent is a third-party beneficiary of this provision and this provision cannot be amended or repealed, without the consent of the Collateral Agent until the Debenture has been paid in full."

**ARTICLE VI**

**INTELLECTUAL PROPERTY COLLATERAL**

**Section 6.01 Intellectual Property License.** For the purpose of enabling the Collateral Agent, during the continuance of an Event of Default, to exercise rights and remedies under ARTICLE VIII hereof at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, and for no other purpose, each Grantor hereby grants to the Collateral Agent, to the extent of such Grantor's rights and effective only during the continuance of an Event of Default, an irrevocable, non-exclusive license, subject, in the case of Trademarks, to sufficient rights to quality control and inspection in favor of such Grantor to avoid the risk of invalidation of such Trademarks, to use and sublicense any of the Intellectual Property Collateral then owned by or licensed to such Grantor. Such license shall include access to all devices, products and media in which any of the Intellectual Property Collateral is embodied, embedded, recorded or stored and to all computer programs used for the compilation or printout hereof.

**Section 6.02 Dealing With Intellectual Property.** On a continuing basis, each Grantor shall, at its sole cost and expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) promptly following its becoming aware thereof, notify the Collateral Agent of any adverse determination in any proceeding or the institution of any proceeding in any federal, state or local court or administrative body or in the United States Patent and Trademark Office or the United States Copyright Office regarding such Grantor's claim of ownership in or right to use any of the Intellectual Property Collateral material to the use and operation of the Pledged Collateral, such Grantor's right to register such Intellectual Property Collateral or its right to keep and maintain such registration in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintain and protect the Intellectual Property Collateral material to the use and operation of the Pledged Collateral as presently used and operated and as contemplated by the Purchase Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) not permit to lapse or become abandoned any Intellectual Property Collateral material to the use and operation of the Pledged Collateral as presently used and operated and as contemplated by the Purchase Agreement, and not settle or compromise any pending or future litigation or administrative proceeding with respect to such Intellectual Property Collateral, in each case except as shall be consistent with commercially reasonable business judgment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) upon such Grantor obtaining knowledge thereof, promptly notify the Collateral Agent in writing of any event which may be reasonably expected to materially and adversely affect the value or utility of any of the Intellectual Property Collateral or any portion thereof that is material to the use and operation of the Pledged Collateral, the ability of such Grantor or the Collateral Agent to dispose of the Intellectual Property Collateral or any portion thereof, or the rights and remedies of the Collateral Agent in relation thereto including a levy or threat of levy or any legal process against the Intellectual Property Collateral or any portion thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) not license the Intellectual Property Collateral, or amend or permit the amendment of any of the licenses in a manner that materially and adversely affects the right to receive payments thereunder, or in any manner that could materially impair in the reasonable judgment of such Grantor, the value of the Intellectual Property Collateral or the Lien on and security interest in the Intellectual Property Collateral created therein hereby, without the consent of the Collateral Agent (which shall not be unreasonably delayed, conditioned or withheld);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) diligently keep adequate records respecting its Intellectual Property Collateral material to the use and operation of the Pledged Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) furnish to the Collateral Agent from time to time upon the Collateral Agent's reasonable request therefor reasonably detailed statements and amended schedules further identifying and describing the Intellectual Property Collateral and such other materials evidencing or reports pertaining to the Intellectual Property Collateral as the Collateral Agent may from time-to-time reasonably request.

**Section 6.04 Intellectual Property Litigation.** Unless there shall occur and be continuing any Event of Default and the Company receives written notice from the Collateral Agent of its intent to exercise remedies hereunder, each Grantor shall have the right to commence and prosecute in its own name, as the party in interest, for its own benefit and at the sole cost and expense of the Grantors, such applications for protection of the Intellectual Property Collateral and suits, proceedings or other actions to prevent the infringement, misappropriation, counterfeiting, unfair competition, dilution, diminution in value or other damage as are necessary to protect the Intellectual Property Collateral. Upon the occurrence and during the continuance of any Event of Default and upon receipt by the Company of written notice from the Collateral Agent stating its intent to exercise remedies hereunder, the Collateral Agent shall have the right but shall in no way be obligated to file applications for protection of the Intellectual Property Collateral and/or bring suit in the name of any Grantor, the Collateral Agent to enforce the Intellectual Property Collateral and any license thereunder. In the event of such suit, each Grantor shall, at the reasonable request of the Collateral Agent, do any and all commercially reasonable acts and execute any and all documents reasonably requested by the Collateral Agent in aid of such enforcement and the Grantors shall promptly reimburse and indemnify the Collateral Agent for all reasonable costs and expenses incurred by the Collateral Agent in the exercise of its rights under this Section 6.04 in accordance with Section 9.08. In the event that the Collateral Agent shall elect not to bring suit to enforce the Intellectual Property Collateral as permitted by this Section 6.04 and an Event of Default has occurred and is continuing, each Grantor agrees, at the reasonable request of the Collateral Agent, to take all commercially reasonable actions necessary, whether by suit, proceeding or other action, to prevent the infringement, misappropriation, counterfeiting, unfair competition, dilution, diminution in value of or other damage to any of the Intellectual Property Collateral by others and for that purpose agrees to diligently maintain any suit, proceeding or other action against any Person so infringing necessary to prevent such infringement.

**ARTICLE VII**

**RECEIVABLES**

**Section 7.01 Dealing With Receivables.** Each Grantor shall keep and maintain at its own cost and expense complete records of each Receivable, including records of all payments received, all credits granted thereon, all merchandise returned and all other documentation relating thereto. Each Grantor shall, at such Grantor's sole cost and expense, upon the Collateral Agent's demand made at any time after the occurrence and during the continuance of any Event of Default, deliver copies of all tangible evidence of Receivables, including copies of all documents evidencing Receivables and any books and records relating thereto to the Collateral Agent or to its representatives. Each Grantor shall legend, at the request of the Collateral Agent and in form and manner reasonably satisfactory to the Collateral Agent, the Receivables and the other books, records and documents of such Grantor evidencing or pertaining to the Receivables with an appropriate reference to the fact that the Receivables have been assigned to the Collateral Agent for the ratable benefit of the Secured Parties and that the Collateral Agent has a security interest therein.

**Section 7.02 Modification of Receivables.** Other than in the ordinary course of business consistent with its past practice, such Grantor will not (i) grant any extension of the time of payment of any Receivable, (ii) compromise or settle any Receivable for less than the full amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any Receivable, (iv) allow any credit or discount whatsoever on any Receivable or (v) amend, supplement or modify any Receivable in any manner that could adversely affect the value thereof.

**ARTICLE VIII**

**REMEDIES**

**Section 8.01 Remedies.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any Event of Default shall have occurred and be continuing, the Collateral Agent may exercise, without any other notice to or demand upon any Grantor, in addition to the other rights and remedies provided for herein or in any other Transaction Document or otherwise available to it, all the rights and remedies of a secured party upon default under the UCC (whether or not the UCC applies to the affected Pledged Collateral) and also may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Collateral Agent immediately, assemble the Pledged Collateral or any part thereof, as directed by the Collateral Agent and make it available to the Collateral Agent at a place and time to be designated by the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) without notice except as specified below, sell, resell, assign and deliver or grant a license to use or otherwise dispose of the Pledged Collateral or any part thereof, in one or more parcels at public or private sale, at any of the Collateral Agent's offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may deem commercially reasonable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) occupy any premises owned or leased by any of the Grantors where the Pledged Collateral or any part thereof is assembled or located for a reasonable period in order to effectuate its rights and remedies hereunder or under law, without obligation to such Grantor in respect of such occupation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) exercise any and all rights and remedies of any of the Grantors under or in connection with the Pledged Collateral, or otherwise in respect of the Pledged Collateral, including without limitation, (A) any and all rights of such Grantor to demand or otherwise require payment of any amount under, or performance of any provision of, the Contracts, the Receivables, and the other Pledged Collateral, (B) withdraw, or cause or direct the withdrawal of, all funds with respect to the Deposit Accounts, (C) exercise all other rights and remedies with respect to the Receivables, and the other Pledged Collateral, including without limitation, those set forth in Section 9-607 of the UCC and (D) exercise any and all voting, consensual and other rights with respect to any Pledged Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Grantor agrees that, unless the Pledged Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, to the extent notice of sale shall be required by law, at least ten (10) days' prior written notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. At any sale of the Pledged Collateral, if permitted by applicable law, the Collateral Agent may be the purchaser, licensee, assignee or recipient of the Pledged Collateral or any part thereof and shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Pledged Collateral sold, assigned or licensed at such sale, to use and apply any of the Secured Obligations as a credit on account of the purchase price of the Pledged Collateral or any part thereof payable at such sale. To the extent permitted by applicable law, each Grantor waives all claims, damages and demands it may acquire against the Collateral Agent arising out of the exercise by it of any rights hereunder. Each Grantor hereby waives and releases to the fullest extent permitted by law any right or equity of redemption with respect to the Pledged Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Pledged Collateral and any other security for the Secured Obligations or otherwise. The Collateral Agent shall not be liable for failure to collect or realize upon any or all of the Pledged Collateral or for any delay in so doing nor shall it be under any obligation to take any action with regard thereto. The Collateral Agent shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. The Collateral Agent shall not be obligated to clean-up or otherwise prepare the Pledged Collateral for sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Event of Default shall have occurred and be continuing, all payments received by any Grantor in respect of the Pledged Collateral shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over the Collateral Agent in the same form as so received (with any necessary endorsement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any Event of Default shall have occurred and be continuing, the Collateral Agent may, without notice to any Grantor except as required by law and at any time or from time to time, charge, set off and otherwise apply all or part of the Secured Obligations against any funds deposited with it or held by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If any Event of Default shall have occurred and be continuing, upon the written demand of the Collateral Agent, each Grantor shall execute and deliver to the Collateral Agent an assignment or assignments of any or all of the Intellectual Property Collateral and such other documents and take such other actions as are necessary or appropriate to carry out the intent and purposes hereof. Within five Business Days of written notice thereafter from the Collateral Agent, each Grantor shall make available to the Collateral Agent, to the extent within such Grantor's power and authority, such personnel in such Grantor's employ on the date of the Event of Default as the Collateral Agent may reasonably designate to permit such Grantor to continue, directly or indirectly, to produce, advertise and sell the products and services sold by such Grantor under the Intellectual Property Collateral, and such persons shall be available to perform their prior functions on the Collateral Agent's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Collateral Agent shall determine to exercise its right to sell all or any of the Securities Collateral of any Grantor pursuant to this Section 8.01, each Grantor agrees that, upon request of the Collateral Agent, such Grantor will, at its own expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide the Collateral Agent with such information and projections as may be necessary or, in the opinion of the Collateral Agent, advisable to enable the Collateral Agent to effect the sale of such Securities Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) cause any registration, qualification under or compliance with any Federal or state securities law or laws to be effected with respect to all or any part of the Securities Collateral as soon as practicable and at the sole cost and expense of the Grantors. Each Grantor will cause such registration to be effected (and be kept effective) and will use its commercially reasonable efforts to cause such qualification and compliance to be effected (and be kept effective) as may be so requested and as would permit or facilitate the sale and distribution of such Securities Collateral including registration under the Securities Act (or any similar statute then in effect), appropriate qualifications under applicable blue sky or other state securities laws and appropriate compliance with all other requirements of any Governmental Authority; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) do or cause to be done all such other acts and things as may be necessary to make such sale of such Securities Collateral or any part thereof valid and binding and in compliance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Collateral Agent is authorized, in connection with any sale of the Securities Collateral pursuant to this Section 8.01, to deliver or otherwise disclose to any prospective purchaser of the Securities Collateral: (i) any registration statement or prospectus, and all supplements and amendments thereto, prepared pursuant to Section 8.01(f); (ii) any information and projections provided to it pursuant to Section 8.01(f), and (iii) any other information in its possession relating to such Securities Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each Grantor acknowledges the impossibility of ascertaining the amount of damages that would be suffered by the Collateral Agent by reason of the failure of such Grantor to perform any of the covenants contained in Section 8.01(f); and consequently, agrees that, if such Grantor shall fail to perform any of such covenants, it will pay, as liquidated damages and not as a penalty, an amount equal to the value of the Securities Collateral on the date the Collateral Agent demands compliance with Section 8.01(f).

**Section 8.02 No Waiver and Cumulative Remedies.** The Collateral Agent shall not by any act (except by a written instrument pursuant to Section 9.06), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No failure on the part of the Collateral Agent to exercise, no course of dealing with respect to, and no delay on the part of the Collateral Agent in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power, privilege or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power, privilege or remedy; nor shall the Collateral Agent be required to look first to, enforce or exhaust any other security, collateral or guaranties. All rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies provided by law.

**Section 8.03 Application of Proceeds.** Upon the exercise by the Collateral Agent of its remedies hereunder, any proceeds received by the Collateral Agent in respect of any realization upon any Pledged Collateral shall be applied, together with any other sums then held by the Collateral Agent pursuant to this Agreement, in accordance with the Purchase Agreement. Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Pledged Collateral are insufficient to pay the Secured Obligations and the fees and other charges of any attorneys employed by the Collateral Agent to collect such deficiency.

**ARTICLE IX**

**MISCELLANEOUS**

**Section 9.01 Concerning Collateral Agent.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Appointment**. The Collateral Agent shall act in accordance with the terms of the Purchase Agreement. The Collateral Agent may exercise or refrain from exercising any rights (including making demands and giving notices) and take or refrain from taking any action (including the release or substitution of the Pledged Collateral), in accordance with this Agreement and the Purchase Agreement. The Collateral Agent may employ agents and attorneys-in-fact in connection herewith and shall not be liable for the negligence of any such agents or attorneys-in-fact selected by it in good faith, but shall be liable for the gross negligence or willful misconduct of such agents and attorneys-in-fact. The Collateral Agent may resign and a successor Collateral Agent may be appointed in the manner provided in the Purchase Agreement. On the acceptance of appointment as the successor Collateral Agent, that successor Collateral Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent under this Agreement, and the retiring Collateral Agent shall thereupon be discharged from its duties and obligations under this Agreement. After any retiring Collateral Agent's resignation, the provisions hereof shall inure to its benefit as to any actions taken or omitted to be taken by it under this Agreement while it was the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Duty of care**. The Collateral Agent's sole duty with respect to the custody, safekeeping and physical preservation of the Pledged Collateral in its possession, under Section 9-207 of the UCC or otherwise, shall be to deal with it in the same manner as the Collateral Agent deals with its own property consisting of similar instruments or interests. The Collateral Agent shall not have responsibility for (i) ascertaining or taking action whatsoever with regard to any Pledged Collateral (including matters relating to the Pledged Securities, whether or not the Collateral Agent has or is deemed to have knowledge of such matters) or (ii) taking any necessary steps to preserve rights against any Person with respect to any Pledged Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Reliance**. The Collateral Agent shall be entitled to rely upon any written notice, statement, certificate, order or other document or any telephone message believed by it to be genuine and correct and to have been signed, sent or made by the proper Person, and, with respect to all matters pertaining to this Agreement and its duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Conflict**. If any item of Pledged Collateral also constitutes collateral granted to the Collateral Agent under any other deed of trust, mortgage, security agreement, pledge or instrument of any type, in the event of any conflict between the provisions hereof and the provisions of such other document in respect of such collateral, the provisions of this Agreement shall control unless the other deed of trust, mortgage, security agreement, pledge or instrument expressly states otherwise.

**Section 9.02 Performance By Collateral Agent.** If any Grantor shall fail to perform any covenants contained in this Agreement after giving effect to all applicable grace periods (including covenants to pay insurance, taxes and claims arising by operation of law in respect of the Pledged Collateral and to pay or perform any Grantor obligations under any Pledged Collateral) or if any representation or warranty on the part of any Grantor contained herein shall be breached, the Collateral Agent may (but shall not be obligated to) following notice to such Grantor of such failure to perform and such Grantor's failure to remedy such failure within a commercially reasonable time period, do the same or cause it to be done or remedy any such breach, and may make payments for such purpose; provided, however, that the Collateral Agent shall in no event be bound to inquire into the validity of any tax, Lien, imposition or other obligation which such Grantor fails to pay or perform as and when required hereby and which such Grantor does not contest in accordance with the provisions of the Purchase Agreement. Any and all amounts so paid by the Collateral Agent shall be reimbursed by the Grantors in accordance with the provisions of Section 9.08. Neither the provisions of this Section 9.02 nor any action taken by the Collateral Agent pursuant to the provisions of this Section 9.02 shall prevent any such failure to observe any covenant contained in this Agreement nor any breach of representation or warranty from constituting an Event of Default.

**Section 9.03 Power of Attorney.** Each Grantor hereby appoints the Collateral Agent its attorney-in-fact, with full power and authority in the place and stead of such Grantor and in the name of such Grantor, or otherwise, from time to time during the existence of an Event of Default in the Collateral Agent's discretion to take any action and to execute any instrument consistent with the terms of the Purchase Agreement and the other Transaction Documents which the Collateral Agent may deem necessary or advisable to accomplish the purposes hereof (but the Collateral Agent shall not be obligated to and neither the Collateral Agent nor any Secured Party shall have any liability to such Grantor or any third party for failure to so do or take action). Except where prior notice is expressly required by the terms of this Agreement, the Collateral Agent shall use commercially reasonable efforts to provide notice to the Grantor prior to taking any action taken in the preceding sentence, provided that failure to deliver such notice shall not limit the Collateral Agent's right to take such action or the validity of any such action. The foregoing grant of authority is a power of attorney coupled with an interest and such appointment shall be irrevocable for the term hereof. Each Grantor hereby ratifies that such attorney shall lawfully do or cause to be done by virtue hereof.

**Section 9.04 Continuing Security Interest and Assignment.** This Agreement shall create a continuing security interest in the Pledged Collateral and shall (a) be binding upon the Grantors, their respective successors and assigns and (b) inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Collateral Agent and the other Secured Parties and each of their respective permitted successors, transferees and assigns and their respective officers, directors, employees, affiliates, agents, advisors and controlling Persons; provided that, no Grantor shall assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the Collateral Agent and any attempted assignment or transfer without such consent shall be null and void.

**Section 9.05 Termination and Release.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At such time as the Debenture and the other Secured Obligations shall have been paid in full (other than contingent indemnification obligations in which no claim has been made or is reasonably foreseeable), the Pledged Collateral shall be released from the Liens created hereby, and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Collateral Agent and each Grantor hereunder shall terminate, all without delivery of any instrument or any further action by any party, and all rights to the Pledged Collateral shall revert to the Grantors. At the request and sole expense of any Grantor following any such termination, the Collateral Agent shall deliver to such Grantor any Pledged Collateral held by the Collateral Agent hereunder, and execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any of the Pledged Collateral shall be sold, transferred or otherwise disposed of by any Grantor in a transaction permitted by this Agreement, then the Lien created pursuant to this Agreement in such Pledged Collateral shall be released, and the Collateral Agent, at the request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases and other documents reasonably necessary or advisable for the release of the Liens created hereby on such Pledged Collateral; provided that the Company shall provide to the Collateral Agent evidence of such transaction's compliance with the Purchase Agreement and the other Transaction Documents as the Collateral Agent shall reasonably request.

**Section 9.06 Modification in Writing.** None of the terms or provisions of this Agreement may be amended, modified, supplemented, terminated or waived, and no consent to any departure by any Grantor therefrom shall be effective, except by a written instrument signed by the Collateral Agent in accordance with the terms of the Purchase Agreement. Any amendment, modification or supplement of any provision hereof, any waiver of any provision hereof and any consent to any departure by any Grantor from the terms of any provision hereof in each case shall be effective only in the specific instance and for the specific purpose for which made or given. This Agreement shall be construed as a separate agreement with respect to each Grantor and may be amended, modified, supplemented, terminated or waived with respect to any Grantor without the approval of any other Grantor and without affecting the obligations of any other Grantor hereunder.

**Section 9.07 Notices.** Unless otherwise provided herein, any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be given in the manner and become effective as set forth in the Purchase Agreement, and, as to any Grantor, addressed to it at the address of such Grantor set forth in <u>Schedule 1</u> hereof and as to the Collateral Agent, addressed to it at the address set forth in the Purchase Agreement, or in each case at such other address as shall be designated by such party in a written notice to the other party.

**Section 9.08 Indemnity and Expenses.** Without limiting any obligations of the Company under the Purchase Agreement or the Debentures, each Grantor agrees to indemnify the Collateral Agent (and any sub-agent thereof) and all Secured Parties from and against all claims, lawsuits and liabilities (including attorneys' fees) arising out of or resulting from this Agreement (including enforcement of this Agreement) or any other Transaction Document, except claims, losses or liabilities resulting from the gross negligence or willful misconduct of the party seeking indemnification as determined by a final non-appealable order of a court of competent jurisdiction. This provision shall survive the termination of this Agreement and the Transaction Documents and the satisfaction in full of the Secured Obligations. Grantors, jointly and severally, shall, upon demand, pay to each Secured Party all of the costs and expenses which such Secured Party may incur in connection with (i) the administration of this Agreement, (ii) the custody, preservation , use or operation of, or, upon an Event of Default, the sale of, collection from, or other realization upon, any of the Collateral in accordance with this Agreement and the other Transaction Documents, (iii) the exercise or enforcement of any of the rights of such Secured Party hereunder or (iv) the failure by any Grantor to perform or observe any of the provisions hereof.

**Section 9.09 Governing Law, Consent to Jurisdiction and Waiver of Jury Trial.** This Agreement and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the laws of the State of New York.

**Section 9.10 Severability of Provisions.** Any provision hereof which is invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without invalidating the remaining provisions hereof or affecting the validity, legality or enforceability of such provision in any other jurisdiction.

**Section 9.11 Counterparts; Integration.** This Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute a single contract. This Agreement and the other Transaction Documents, and any separate letter agreements with respect to fees payable to the Collateral Agent, constitute the entire contract among the parties with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto.

**Section 9.12 No Release.** Nothing set forth in this Agreement or any other Transaction Document, nor the exercise by the Collateral Agent of any of the rights or remedies hereunder, shall relieve any Grantor from the performance of any term, covenant, condition or agreement on such Grantor's part to be performed or observed in respect of any of the Pledged Collateral or from any liability to any Person in respect of any of the Pledged Collateral or shall impose any obligation on the Collateral Agent to perform or observe any such term, covenant, condition or agreement on such Grantor's part to be so performed or observed or shall impose any liability on the Collateral Agent for any act or omission on the part of such Grantor relating thereto or for any breach of any representation or warranty on the part of such Grantor contained in this Agreement, the Purchase Agreement or the other Transaction Documents, or in respect of the Pledged Collateral or made in connection herewith or therewith. Anything herein to the contrary notwithstanding, the Collateral Agent shall not have any obligation or liability under any contracts, agreements and other documents included in the Pledged Collateral by reason of this Agreement, nor shall the Collateral Agent be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any such contract, agreement or other document included in the Pledged Collateral. The obligations of each Grantor contained in this Section 9.12 shall survive the termination hereof and the discharge of such Grantor's other obligations under this Agreement, the Purchase Agreement and the other Transaction Documents.

[*Signature page follows*.]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

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| |
|:---|
| **GRANTORS:** |
| EXXEL PHARMA, INC. |
| By |
| Name: |
| Title: |
| JOSEPH GUNNAR & CO., LLC |
| By |
| Name: |
| Title: |

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(*Signature page to the Security Agreement*)

**EXHIBIT A**

**FORM OF JOINDER AGREEMENT**

THIS JOINDER AGREEMENT (the "**Joinder Agreement**"), dated as of [DATE] is made by [JOINING GRANTOR], a [STATE OF ORGANIZATION] [ENTITY TYPE] (the "**Joining Grantor**"), and delivered to [NAME OF COLLATERAL AGENT], in its capacity as collateral agent (in such capacity and together with any successors in such capacity, the "**Collateral Agent**") under that certain Security Agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the "**Security Agreement**"; capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Security Agreement), dated as of [ ] [ ], 2024, made by and among Exxel Pharma, Inc., a corporation organized under the laws of the Province of British Columbia (the "**Company**"), and the Grantors party thereto, in favor of the Collateral Agent for the ratable benefit of the Secured Parties.

WHEREAS, the Joining Grantor is a Wholly Owned Domestic Subsidiary of the Company and required by the terms of the Purchase Agreement to be joined as a party to the Security Agreement as a Grantor;

WHEREAS, this Joinder Agreement supplements the Security Agreement and is delivered by the Joining Grantor pursuant to Section 3.05 of the Security Agreement; and

WHEREAS, the Joining Grantor will materially benefit directly and indirectly from the Loans made available and to be made available to the Company by the Lenders under the Purchase Agreement;

NOW, THEREFORE, the Joining Grantor hereby agrees as follows with the Collateral Agent, for the ratable benefit of the Secured Parties:

&nbsp;&nbsp;&nbsp;&nbsp;1. **Joinder**. The Joining Grantor hereby irrevocably, absolutely and unconditionally
becomes a party to the Security Agreement as a Grantor and agrees to be bound by all the terms, conditions, covenants, obligations, liabilities
and undertakings of each Grantor or to which each Grantor is subject thereunder, all with the same force and effect as if the Joining
Grantor were a signatory to the Security Agreement. Without limiting the generality of the foregoing, as collateral security for the payment
and performance in full of all the Secured Obligations, the Joining Grantor hereby pledges to the Collateral Agent for the ratable benefit
of the Secured Parties, and grants to the Collateral Agent for the ratable benefit of the Secured Parties a Lien on and security interest
in and to, all of its right, title and interest in, to and under the Pledged Collateral owned by it, wherever located, and whether now
existing or hereafter arising or acquired from time to time and expressly assumes all obligations and liabilities of a Grantor thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;2. **Affirmations**. The Joining Grantor hereby makes each of
 the representations and warranties and agrees to each of the covenants applicable to the Grantors contained in the Security
 Agreement. The Joining Grantor also represents and warrants to the Collateral Agent and the Secured Parties that (i) it has the
 corporate power and authority, and the legal right, to make, deliver and perform this Joinder Agreement and has taken all necessary
 corporate action to authorize the execution, delivery and performance of this Joinder Agreement; (ii) no consent or authorization
 of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person that has not been
 obtained, made or completed is required in connection with the execution, delivery and performance, validity or enforceability of
 this Joinder Agreement; (iii) this Joinder Agreement has been duly executed and delivered on behalf of the Joining Grantor; and (iv)
 this Joinder Agreement constitutes a legal, valid and binding obligation of the Joining Grantor enforceable against such Joining
 Grantor in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors' rights generally, general equitable principles (whether considered
in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Supplemental Schedules.** Attached to this Joinder Agreement are duly completed
schedules (the "**Supplemental Schedules**") supplementing the respective Schedules to the Security Agreement. The Joining
Grantor represents and warrants that the information contained on each of the Supplemental Schedules with respect to such Joining Grantor
and its properties is true, complete and accurate as of the date hereof. Such Supplemental Schedules shall be deemed to be part of the
Security Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Severability.** The provisions of this Joinder Agreement are independent of
and separable from each other. If any provision hereof shall for any reason be held invalid or unenforceable, such invalidity or unenforceability
shall not affect the validity or enforceability of any other provision hereof, but this Joinder Agreement shall be construed as if such
invalid or unenforceable provision had never been contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Counterparts.** This Joinder Agreement may be executed in counterparts (and
by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together
shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Joinder Agreement by facsimile or
in electronic (i.e., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart
of this Joinder Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Delivery.** The Joining Grantor hereby irrevocably waives notice of acceptance
of this Joinder Agreement and acknowledges that the Secured Obligations are incurred, and credit extensions under the Purchase Agreement
and the other Transaction Documents made and maintained, in reliance on this Joinder Agreement and the Joining Grantor's joinder
as a party to the Security Agreement as herein provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Governing Law; Venue; Waiver of Jury Trial.** This Joinder Agreement and any
claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this
Joinder Agreement and the transactions contemplated hereby and thereby shall be governed by and construed in accordance with the laws
of New York. The provisions of Section 9.09 of the Security Agreement are hereby incorporated by reference as if fully set forth herein.

[*Signature page follows.*]

IN WITNESS WHEREOF, the parties hereto have caused this Joinder Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

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| |
|:---|
| [NAME OF JOINING GRANTOR] |
| By: |
| Name: |
| Title: |
| Address for Notices: |
| AGREED TO AND ACCEPTED: <br> JOSEPH GUNNAR & CO., LLC |
| By: |
| Name: |
| Title: |
| Address for Notices: |
| [Schedules to be attached] |

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**Exhibit B**

**Deposit Account Control Agreement**

**Exhibit C**

**Securities Account Control Agreement**

**EXHIBIT F**

**ACCREDITED INVESTOR QUESTIONNAIRE**

**[INSERT COMPANY LETTERHEAD]**

**EXXEL PHARMA, INC.**

**ACCREDITED INVESTOR QUESTIONNAIRE**

**PURPOSE OF THIS QUESTIONNAIRE**

This Questionnaire is being distributed by Exxel Pharma, Inc., a corporation organized under the laws of the Province of British Columbia, Canada (the "<u>Issuer</u>"), to enable the Issuer to determine whether you (the "<u>Purchaser</u>") are qualified to invest in the<u> </u> [PLEASE FILL IN CLASS OF SECURITY IN THE SPACE PROVIDED] (the "<u>Securities</u>") of the Issuer. If additional space is required for you to provide an answer, please attach separate sheets with your name on each. Unless stated otherwise, answers should be given as of the date you complete this Questionnaire.

**A.**  **<u>Purchaser Information</u>** 

**1.** Name of Purchaser: _________________________________________________________________________<u> </u> 

**2.** Subscription Amount: _______________________________________________________________________<u> </u> 

**3.** U.S. Taxpayer Identification Number or Social Security Number (if applicable):

**4.** Jurisdiction of Incorporation, Organization or Formation (for entities): ___________________________________<u> </u> 

**5.** Purchaser's Address of Residence or Principal Place of Business:

**6.** Address for Delivery and Notices (if different from above):

**7.** Phone Number: ____________________________________________________________________________<u> </u> 

**8.** Email Address: ____________________________________________________________________________<u> </u> 

**9.** Occupation / Salary Information: _______________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** Present occupation: __________________________________________________________________<u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** Present title or position and length of service in present title or position: ___________________________<u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** Salary: __________________________________________________________________<u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iv)** Do you own your own business or are you otherwise employed?

☐ Yes ☐ No

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v)** Name
and type of business employed by or owned: __________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vi)** Length of service with present employer or length of ownership of present
 business: _________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(vii)** Description of responsibilities: __________________________________________________________<u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(viii)** Prior Occupations, Employment, and Length of Service during the Past Five Years:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Occupation: ______________________________________________________________<u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Name of employer(s) or owned business(es) (and identify which): _____________________<u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Years of service with employers and length of ownership of business(es): _______________<u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ix)** Do you have any professional licenses, registrations, certifications or designations,
including bar admissions, accounting certificates, real estate brokerage licenses, investment adviser registrations, and SEC or state
broker-dealer registrations?

☐ Yes ☐ No

If yes, please list such licenses or registrations, the date(s) you received the same, and whether they are in good standing: _____________________________________________________________<u> </u>

**10.** Education (college and postgraduate):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** Institution(s) Attended: _______________________________________________________________<u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii)** Degree(s): <u> </u>_________________________________________________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(iii)** Dates of Attendance (at each, and identify which): ___________________________________________<u> </u> 

**11.** Current Investment Objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i)** My current investment objectives (indicate applicability and priority) are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Current Income:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Appreciation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Tax Shelter:

**(d)** Other (list below):

**12.** For all Purchasers:

☐ I agree to electronic delivery of disclosures.

**13.** For Non-Individuals (check one):

☐ Limited Partnership

☐ Limited Liability Company

☐ Corporation

☐ Individual Retirement Account (custodian or trustee must sign)

☐ Trust (other than IRA) (trustee must sign)

☐ Qualified Plan (other than IRA)

☐ Other: __________________________

**14.** For Individuals (check one)

☐ Single Individual (one signatory required)

☐ Joint Tenants with Right of Survivorship (each individual must sign)

☐ Tenants-in-Common (each individual must sign)

☐ Community Property (one signatory required)

☐ Other: __________________________

**15.** The following IRS form is filled out, signed, and attached, or has been previously provided to the Issuer
(check one and attach):

☐ W-9 (for Purchasers who are U.S. Persons)

☐ W-8BEN (for Individual Purchasers who are <u>not</u> a U.S. Person)

☐ W-8BEN-E (for Non-Individual Purchasers who are <u>not</u> a U.S. Person)

☐ Previously provided to the Issuer

**B.**  **<u>Accredited Investor Status</u>** 

Purchaser makes one or more of the following representations regarding Purchaser's status as an "<u>Accredited Investor</u>" (within the meaning of Rule 501 under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), and has checked **<u>each</u>** box/category below applicable to Purchaser:

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| | | |
|:---|:---|:---|
| ☐ | **(i)** | If a <u>natural person</u>, Purchaser **(x)** has an individual net worth<sup>1</sup>, or joint net worth<sup>2</sup> with Purchaser's spouse or spousal equivalent<sup>3</sup>, in excess of $1,000,000 (*excluding* the value of Purchaser's primary residence), or **(y)** has had an individual income in excess of $200,000 in each of the two most recent years, or a joint income with Purchaser's spouse or spousal equivalent in excess of $300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year. |

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| | | |
|:---|:---|:---|
| ☐ | **(ii)** | If a <u>natural person</u>, Purchaser holds in good standing one or more professional cerrifications or designations or credentials from an accredited educational institution that the U.S. Securities and Exchange Commission (the "<u>SEC</u>") has designated as qualifying an individual for accredited investor status.<sup>4</sup> |

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| | | |
|:---|:---|:---|
| ☐ | **(iii)** | Purchaser is a <u>trust</u> with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii). |

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| | | |
|:---|:---|:---|
| ☐ | **(iv)** | Purchaser is **(1)** a <u>bank</u> as defined in section 3(a)(2) of the Securities Act; **(2)** a <u>savings and loan association or other institution</u> as defined in section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity; **(3)** a <u>broker or dealer</u> registered pursuant to section 15 of the Securities Exchange Act of 1934; **(4)** an <u>investment adviser</u> registered pursuant to Section 203 of the Investment Advisers Act of 1940 (as amended, |

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<sup>1</sup> For purposes of calculating the net worth of a natural person, the amount of any mortgage or other indebtedness secured by such person's primary residence must be netted against the value of such residence. If the amount of such indebtedness is less than the estimated fair market value of such residence, it need not be considered as a liability deducted from such natural person's net worth (except that if the amount of indebtedness outstanding at the time of the sale of Securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability). If the amount of such indebtedness exceeds the estimated fair market value of such residence, then that excess liability must be deducted from such natural person's net worth.

<sup>2</sup> Joint net worth can be calculated as the aggregate net worth of the undersigned and his or her spouse or spousal equivalent; assets need not be held jointly to be included in such calculation. Reliance on the joint net worth standard described herein does not require that the investment in the Securities be made jointly by the undersigned and his or her spouse or spousal equivalent.

<sup>3</sup> "Spousal equivalent" means a cohabitant occupying a relationship generally equivalent to that of a spouse.

<sup>4</sup> As of the date of this Questionnaire, the SEC has designated the General Securities Representative license (Series 7), the Private Securities Offerings Representative license (Series 82), and the Investment Adviser Representative license (Series 65) as qualifying natural persons for accredited investor status pursuant to Rule 501(a)(10) under the Securities Act. the "<u>Advisers Act</u>") or registered pursuant to the laws of a state; **(5)** an <u>investment adviser</u> relying on the exemption from registering with the SEC under section 203(l) or (m) of the Advisers Act; **(6)** an <u>insurance company</u> as defined in section 2(a)(13) of the Securities Act; **(7)** an <u>investment company</u> registered under the Investment Company Act of 1940, as amended (the "<u>Investment Company Act</u>") or a <u>business development company</u> as defined in section 2(a)(48) of the Investment Company Act; **(8)** a <u>Small Business Investment Company</u> licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958, as amended; or **(9)** a <u>Rural Business Investment Company</u> as defined in section 384A of the Consolidated Farm and Rural Development Act.

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| | | |
|:---|:---|:---|
| ☐ | **(v)** | Purchaser is **(1)** a <u>plan</u> established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; **(2)** an <u>employee benefit plan</u> within the meaning of Title I of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is *either* a bank, a savings and loan association, an insurance company, or registered investment adviser; **(3)** an <u>employee benefit plan</u> having total assets in excess of $5,000,000; or **(4)** <u>a self-directed plan</u>, the investment decisions on behalf of which are made solely by persons who are accredited investors. |

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| | | |
|:---|:---|:---|
| ☐ | **(vi)** | Purchaser is an <u>employee benefit plan</u> or <u>retirement plan</u> in which all of the participants are accredited investors. |

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|:---|:---|:---|
| ☐ | **(vii)** | Purchaser is a <u>private business development company</u> as defined in section 202(a)(22) of the Advisers Act. |

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| ☐ | **(viii)** | Purchaser is a <u>corporation</u>, <u>partnership</u>, <u>limited liability company</u>, <u>organization described in section 501(c)(3) of the Internal Revenue Code</u>, or Massachusetts or similar <u>business trust</u>, not formed for the specific purpose of acquiring the Securities offered, in any case, with total assets in excess of $5,000,000. |

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| ☐ | **(ix)** | Purchaser is an <u>entity</u>, of a type not listed in investor category **(iii)**, **(iv)**, **(v)**, **(vii)**, **(viii)** or **(xiii)** of this Part B, not formed for the specific purpose of acquiring the Securities offered, owning "Investments"<sup>5</sup> (as defined in Rule 2a51-1 under the Investment Company Act) in excess of $5,000,000. |

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| ☐ | **(x)** | Purchaser is a <u>revocable grantor trust</u><sup>6</sup> of which each settlor (*i.e.*, grantor) is a natural person who is an accredited investor. |

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| ☐ | **(xi)** | Purchaser is a <u>family office</u>, as defined in Rule 202(a)(11)(G)-1 under the Advisers Act, with assets under management in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities offered and whose prospective investment is directed by a person who has such knowledge and experience in financial and business matters |

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<sup>5</sup> The term "Investments" is generally restricted to the following: **(1)** stock in publicly held corporations; **(2)** limited partnership interests in private investment partnerships such as venture capital, private equity or hedge funds; **(3)** interests in registered investment companies such as mutual funds or exchange-traded funds; **(4)** cash, commodity interests, and physical commodities held for investment purposes; **(5)** real estate held for investment purposes (excluding real estate used for personal purposes or as a place of business); and **(6)** stock in privately-held corporations <u>provided that</u> each such privately-held corporation has shareholder's equity, determined in accordance with generally accepted accounting principles and as of the date of its most recent financing statements (within the preceding 16 months), in excess of $50,000,000.

<sup>6</sup> The term "revocable grantor trust" means a trust that is a "grantor trust" for U.S. federal income tax purposes, with the grantor or grantors (i) being the sole funding source(s) of such trust, (ii) serving as trustee(s), or co-trustee(s), of such trust, (iii) having sole investment discretion on behalf of such trust at the time of investment in the Issuer is made, and (iv) having the right to amend or revoke such trust during the life or lives of the grantor(s). that such family office is capable of evaluating the merits and risks of the prospective investment.

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| ☐ | **(xii)** | Purchaser is a <u>family client</u>, as defined in Rule 202(a)(11)(G)-1 under the Advisers Act, of a family office meeting the requirements in the immediately preceding investor category **(xi)** and whose prospective investment in the Issuer is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment. |

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| ☐ | **(xiii)** | Purchaser is an <u>entity</u> in which all of the equity owners are accredited investors. **If Purchaser belongs to this investor category <u>ONLY</u>, list in the space provided in Part C of this Questionnaire ("<u>Answer Supplement(s)</u>") the equity owners of Purchaser and the investor category under which each such equity owner qualifies as an accredited investor.** *If you have any questions, please call or email Ted Jones at (225) 248-2140 or tjones@joneswalker.com*. |

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| ☐ | **(xiv)** | Purchaser <u>cannot</u> check any of the investor categories set forth in clauses **(i)** through |

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|:---|:---|:---|
| ☐ | **(xiii)** | of this Part B above. |

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**C.**  **<u>Answer Supplement(s)</u>** 

In the spaces provided below, please supplement any answer given in response to **(xiii**) of Part B of this Questionnaire as necessary If additional space is required for you to provide an answer, please attach separate sheets with your name on each:

[*Signature Page Follows*]

**<u>SIGNATURE AND CERTIFICATIONS</u>**

Purchaser hereby certifies that the information given by Purchaser in this Questionnaire is correct and complete.

Purchaser hereby acknowledges, understands and agrees: **(i)** regarding the meaning and legal consequences of the representations and warranties made by Purchaser in this Questionnaire; and **(ii)** that the Issuer is relying on such representations and warranties in making the determination of whether to accept or reject this subscription.

Purchaser further agrees and covenants to promptly notify the Issuer if any of the above information provided in the Questionnaire ceases to be true or otherwise changes after Purchaser's investment in the Issuer.

**IF A NATURAL PERSON:**

Purchaser Name: ______________________________________________________<u> </u>

Authorized signature: __________________________________________________<u> </u>

Date: ________________<u> </u>

**IF AN ENTITY:**

Purchaser Name: ______________________________________________________<u> </u>

Authorized signature: ___________________________________________________<u> </u>

Date: ________________<u> </u>

Signatory's Name (Print): ________________________________________________

Title (Print): __________________________________________________________

[Signature Page to the Accredited Investor Questionnaire]

**EXHIBIT G**

**SUBSIDIARY GUARANTY**

**SUBSIDIARY GUARANTY**

This SUBSIDIARY GUARANTY (this "**Agreement**"), dated as of November 19, 2024, is made by and among each of the Persons listed on the signature pages hereof under the caption "Subsidiary Guarantors" or that becomes a party hereto pursuant to Section 6.03) (collectively, the "**Guarantors**," and individually, each a "**Guarantor**") and John Nash, in its capacity as collateral agent on behalf of the Secured Parties (as defined below) (in such capacity and together with any successors in such capacity, the "**Collateral Agent**").

**Recitals**

WHEREAS, Exxel Pharma Inc., Inc., a corporation organized under the laws of the Province of British Columbia, Canada (the "**Company**"), has entered into a Securities Purchase Agreement dated as of November 19, 2024 (as amended, amended and restated, supplemented, or otherwise modified from time to time in accordance with its provisions, the "**Purchase Agreement**") pursuant to which the Company shall sell, and the Purchasers shall purchase, Senior Secured Convertible Debentures and Warrants;

WHEREAS, each Guarantor will derive substantial direct and indirect benefits from the transactions contemplated by the Purchase Agreement;

WHEREAS, it is a condition precedent to the Purchasers purchasing the Senior Secured Convertible Debentures and Warrants that the Guarantors guarantee all of the obligations of the of the Company under and with respect to the Purchase Agreement, the Debentures and the other Transaction Documents, and pursuant to the Purchase Agreement, the Company agreed to cause the Guarantors to jointly and severally guaranty all of such obligations; and

WHEREAS, in connection herewith, the Guarantors, the Company, and the Collateral Agent have entered into that certain Security Agreement dated of even date herewith (as amended, restated, supplemented, or otherwise modified from time to time, including all schedules thereto, the "**Security Agreement**"), pursuant to which Guarantors and the Company have granted to the Collateral Agent, for the benefit of the Secured Parties, a continuing security interest in substantially all of their respective assets, as more fully set forth in the Security Agreement.

NOW, THEREFORE, in consideration of the premises and in order to induce the Purchasers to enter into the transactions contemplated in the Transaction Documents, from time to time, each Guarantor, jointly and severally with each other Guarantor, hereby agrees as follows:

**ARTICLE I**

**Definitions**

Unless otherwise defined herein, capitalized terms used herein have the meanings assigned to them in the Purchase Agreement. For purposes of this Agreement, the following terms shall have the following meanings:

"**Additional Guarantors**" has the meaning specified in Section 6.03.

"**Applicable Law**" means, as to any Person, all applicable Laws binding upon such Person or to which such a Person is subject.

"**Bankruptcy Code**" means Title 11 of the United States Code, as amended, or any similar federal or state law for the relief of debtors.

"**Code**" means the Internal Revenue Code of 1986, as amended from time to time. "**Collateral Agent**" has the meaning specified in the Preamble hereof.

"**Debtor Relief Laws**" means the Bankruptcy Code and all other liquidation, bankruptcy, assignment for the benefit of creditors, conservatorship, moratorium, receivership, insolvency, rearrangement, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions in effect from time to time.

"**Governmental Authority**" means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal, or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank, or other entity exercising executive, legislative, judicial, taxing, regulatory, or administrative powers or functions of, or pertaining to, government (including any supra-national bodies such as the European Union or the European Central Bank).

"**Guarantor**" has the meaning specified in the Preamble hereof.

"**Guaranty Joinder**" has the meaning specified in Section 6.03.

"**Indemnitee**" has the meaning specified in Section 6.02.

"**Guaranteed Obligations**" has the meaning specified in Section 2.01.

"**Recipient**" means the Collateral Agent.

"**Related Parties**" means, with respect to any Person, such Person's Affiliates and the directors, officers, employees, partners, agents, brokers, trustees, administrators, managers, advisors, and representatives, including accountants, auditors, and legal counsel, of it and its Affiliates.

"**Requirement of Law**" as to any Person, means the certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any law (including common law), statute, ordinance, treaty, rule, regulation, order, decree, judgment, writ, injunction, settlement agreement, requirement, or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

"**Secured Parties**" means the Purchasers and the Collateral Agent.

"**Taxes**" means any and all present or future income, stamp or other taxes, levies, imposts, duties, deductions, charges, fees, or withholdings (including backup withholding) imposed, levied, withheld, or assessed by any Governmental Authority, together with any interest, additions to tax, or penalties imposed thereon and with respect thereto.

"**Termination Date**" has the meaning specified in Section 6.05(a).

"**Withholding Agent**" means the Company, each Guarantor and the Collateral Agent.

**ARTICLE II**

**Agreement to Guarantee Obligations**

**Section 2.01 Guaranty.** Subject to Section 2.02, each Guarantor, jointly and severally, hereby unconditionally and irrevocably, guarantees to the Collateral Agent, for the benefit of the Collateral Agent and the Purchasers, as primary obligor and not merely as surety, the full and punctual payment when due and payable, whether at stated maturity or otherwise in accordance with any Transaction Document, of all the Secured Obligations (as defined in the Security Agreement) of the Guarantors owing to any Secured Parties whether existing on the date hereof or hereinafter incurred or created (the "**Guaranteed Obligations**").

Each Guarantor further agrees that all or part of the Guaranteed Obligations may be increased, extended, substituted, amended, renewed, or otherwise modified without notice to or consent from such Guarantor and such actions shall not affect the liability of such Guarantor hereunder. Without limiting the generality of the foregoing, each Guarantor's liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by the Company to any Secured Party under or in respect of the Transaction Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization, or similar proceeding involving the Company.

**Section 2.02 Limitation of Liability.** Notwithstanding anything contained herein to the contrary, the obligations of each Guarantor hereunder at any time shall be limited to the maximum amount as will result in the obligations of such Guarantor under this Agreement not constituting a fraudulent transfer or conveyance for purposes of any Debtor Relief Law to the extent applicable to this Agreement and the obligations of each Guarantor hereunder. If any payment shall be required to be made to the Collateral Agent or any Secured Party under this Agreement, each Guarantor hereby unconditionally and irrevocably agrees it will contribute, to the maximum extent permitted by law, such amounts to each other Guarantor and the Company so as to maximize the aggregate amount paid to the to the Collateral Agent under or in connection with the Transaction Documents. Each Guarantor hereby acknowledges that the Guaranteed Obligations may exceed the amount of such Guarantor's obligation as limited hereby without affecting the liability of any Guarantor hereunder.

**Section 2.03 Reinstatement.** Each Guarantor agrees that its guaranty hereunder shall continue to be effective or be reinstated, as the case may be, if at any time all or part of any payment of any Guaranteed Obligation is rescinded or must otherwise be returned by any Secured Party or any other Person upon the insolvency, bankruptcy, or reorganization of the Company or otherwise.

**ARTICLE III**

**Guaranty Absolute and Unconditional; Waivers**

**Section 3.01 Guaranty Absolute and Unconditional; No Waiver of Guaranteed Obligations.** Each Guarantor guarantees that the Guaranteed Obligations will be paid strictly in accordance with the terms of the Transaction Documents, regardless of any law, regulation, or order of any Governmental Authority now or hereafter in effect. The obligations of each Guarantor hereunder are independent of the obligations of any other Guarantor or the Company under any Transaction Document. A separate action may be brought against each Guarantor to enforce this Agreement, whether or not any action is brought against the Company or whether or not the Company is joined in any such action. The liability of each Guarantor hereunder is irrevocable, continuing, absolute, and unconditional and the obligations of each Guarantor hereunder, to the fullest extent permitted by Applicable Law, shall not be discharged or impaired or otherwise effected by, and each Guarantor hereby irrevocably waives any defenses to enforcement it may have (now or in the future) by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any illegality or lack of validity or enforceability of any Guaranteed Obligation or any Transaction Document, or any related agreement or instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any change in the time, place, or manner of payment of, or in any other term of, the Guaranteed Obligations, or any rescission, waiver, amendment, or other modification of any Transaction Document, or any other agreement, including any increase in the Guaranteed Obligations resulting from any extension of additional credit or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any taking, exchange, substitution, release, impairment, or non-perfection of any collateral, or any taking, release, impairment, amendment, waiver, or other modification of any guaranty, for the Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any manner of sale, disposition, or application of proceeds of any Collateral, or any other collateral or other assets to all or part of the Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any default, failure, or delay, willful or otherwise, in the performance of the Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any change, restructuring, or termination of the corporate structure, ownership, or existence of the Company or any of its Subsidiaries, or any insolvency, bankruptcy, reorganization, or other similar proceeding affecting the Company or its assets, or any resulting release or discharge of any Guaranteed Obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any failure of the Collateral Agent to disclose to the Company any information relating to the business, condition (financial or otherwise), operations, performance, properties, or prospects of the Company or any Subsidiary now or hereafter known to such Collateral Agent; each Guarantor waiving any duty of the Secured Parties to disclose such information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the failure of any other Person to execute or deliver this Agreement, any Guaranty Joinder, or any other guaranty or agreement, or the release or reduction of liability of any Guarantor, or other guarantor or surety, with respect to the Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the failure of the Collateral Agent to assert any claim or demand or to exercise or enforce any right or remedy under the provisions of any Transaction Document or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any defense, set-off, or counterclaim (other than a defense of payment or performance) that may at any time be available to, or be asserted by, the Company against any Secured Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any other circumstance (including, without limitation, any statute of limitations) or manner of administering the Debentures or any existence of or reliance on any representation by any Secured Party that might vary the risk of any Guarantor or otherwise operate as a defense available to, or a legal or equitable discharge of, any other Guarantor or surety.

Each Guarantor acknowledges that it has received adequate consideration for entering into this Guaranty and that all waivers and acknowledgments under this Article III by such Guarantor are knowingly made.

**Section 3.02 Waivers and Acknowledgments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor hereby unconditionally and irrevocably waives any right to revoke this Agreement and acknowledges that this Agreement is continuing in nature and applies to all presently existing and future Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Guarantor hereby unconditionally and irrevocably waives promptness, diligence, notice of acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor, and any other notice with respect to any of the Guaranteed Obligations and this Agreement, and any requirement that any Secured Party protect, secure, perfect, or insure any Lien or any property subject thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Guarantor hereby unconditionally and irrevocably waives any defense based on any right of set-off or recoupment or counterclaim against or in respect of the obligations of such Guarantor hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Guarantor acknowledges that the Collateral Agent may, at its election and without notice to or demand upon such Guarantor, foreclose on any Collateral or other collateral held by it by one or more judicial or non-judicial sales, accept an assignment of any such Collateral or other collateral in lieu of foreclosure, compromise or adjust any part of the Guaranteed Obligations, make any other accommodation with the Company or any other guarantor, or exercise any other right or remedy available to it against the Company or any other guarantor, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Guaranteed Obligations (other than contingent or unliquidated obligations or liabilities) have been paid in full or collateralized in full in cash. Each Guarantor hereby waives any defense arising out of such election even though such election operates, pursuant to Applicable Law, to impair or to extinguish any right of subrogation, reimbursement, exoneration, contribution, or indemnification, or other right or remedy of such Guarantor against the Company or any other Guarantor or guarantor or any Collateral or any other collateral.

**ARTICLE IV**

**Agreement to Pay; Subrogation; Contribution; Set-Off**

**Section 4.01 Agreement to Pay**. Without limiting any other right that the Collateral Agent or any other Secured Party has at law or in equity against any Guarantor, if the Company fails to pay any Guaranteed Obligation when and as due, whether at maturity, after notice of prepayment, or otherwise, each Guarantor agrees to promptly pay the amount of such unpaid Guaranteed Obligations to the Collateral Agent in cash. Upon payment by any Guarantor of any sums to the Collateral Agent as provided herein, all of such Guarantor's rights of subrogation, exoneration, contribution, reimbursement, indemnity, or otherwise arising therefrom against the Company or any other Guarantor shall be subordinate and junior in right of payment to the prior indefeasible payment in full in cash of all Guaranteed Obligations. In addition, any indebtedness of the Company now or hereafter held by any Guarantor is hereby subordinated in right of payment to the prior payment in full in cash of the Guaranteed Obligations. If after the occurrence and during the continuance of an Event of Default, any payment shall be paid to any Guarantor in violation of the immediately preceding sentence on account of (i) such subrogation, exoneration, contribution, reimbursement, indemnity, or similar right or (ii) any such indebtedness of the Company, such amount shall be held in trust for the benefit of the Secured Parties, segregated from other funds of such Guarantor, and promptly paid or delivered to the Collateral Agent in the same form as so received (with any necessary endorsement or assignment) to be credited against the payment of the Guaranteed Obligations, whether due or to become due, in accordance with the terms of the Transaction Documents or to be held as Collateral for any Guaranteed Obligations. If any Guarantor shall make payment to the Collateral Agent of all or any part of the Guaranteed Obligations, after indefeasible payment in full in cash of all Obligations, and the termination of all Commitments, the Collateral Agent will, at such Guarantor's request and expense, execute and deliver to such Guarantor, without recourse or representation or warranty, appropriate documents necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such payment.

**Section 4.02 No Subrogation**. Notwithstanding any payment or payments made by any of the Guarantors hereunder or any set-off or appropriation and application of funds of any of the Guarantors by the Collateral Agent or any other Secured Party, no Guarantor shall be entitled to be subrogated to any of the rights (or if subrogated by operation of law, such Guarantor hereby waives such rights to the extent permitted by applicable law) of the Collateral Agent or any other Secured Party against the Company or any Guarantor or any collateral security or guarantee or right of offset held by the Collateral Agent or any other Secured Party for the payment of any of the Guaranteed Obligations, nor shall any Guarantor seek or be entitled to seek any contribution or reimbursement from the Company or any Guarantor or other guarantor in respect of payments made by such Guarantor hereunder, in each case, until all amounts owing to the Collateral Agent and the other Secured Parties on account of the Guaranteed Obligations are paid in full. If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all the Guaranteed Obligations shall not have been paid in full, such amount shall be held by such Guarantor in trust for the Collateral Agent and the other Secured Parties, segregated from other funds of such Guarantor, and shall, as soon as practicable upon receipt by such Guarantor, be turned over to the Collateral Agent in the exact form received by such Guarantor (duly indorsed by such Guarantor to the Collateral Agent, if required), to be applied against the Guaranteed Obligations, whether due or to become due, in such order as the Collateral Agent may determine.

**Section 4.03 Right of Contribution.** Each Guarantor hereby agrees that to the extent a Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor hereunder that has not paid its proportionate share of such payment. The provisions of this Section shall in no respect limit the obligations and liabilities of any Guarantor to any Secured Party, and each Guarantor shall remain liable to each Secured Party for the full amount guaranteed by such Guarantor hereunder.

**Section 4.04 Right of Set-Off.** If an Event of Default shall have occurred and be continuing, the Collateral Agent and other Secured Parties are hereby authorized at any time and from time to time, to the fullest extent permitted by law, and without prior notice to any Guarantor, any such notice being expressly waived by each Guarantor, to set off and appropriate and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by the Collateral Agent or other Secured Party to or for the credit or the account of any Guarantor against any and all of the obligations of such Guarantor now or hereafter existing under this Agreement or any other Transaction Document to the Collateral Agent or other Secured Party, whether direct or indirect, absolute or contingent, matured or unmatured, and irrespective of whether or not the Collateral Agent or other Secured Party shall have made any demand under this Agreement or any other Transaction Document . The rights of the Collateral Agent or other Secured Party under this Section are in addition to other rights and remedies (including other rights of set-off) that the Collateral Agent or any Secured Party may have. The Collateral Agent and any other Secured Party agrees to notify the relevant Guarantor promptly after any such set-off and appropriation and application; *provided* that the failure to give such notice shall not affect the validity of such set-off and appropriation and application.

**ARTICLE V**

**Representations and Warranties; Covenants**

**Section 5.01 Representations and Warranties.** Each Guarantor represents and warrants as to itself that all representations and warranties relating to it contained in the Transaction Documents are true and correct. Each Guarantor further represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no conditions precedent to the effectiveness of this Agreement that have not been satisfied or waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Such Guarantor has, independently and without reliance upon any Secured Party and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and any other Transaction Document to which it is or may become a party, and has established adequate procedures for continually obtaining information pertaining to, and is now and at all times will be completely familiar with, the business, condition (financial or otherwise), operations, performance, properties, and prospects of the Company.

**Section 5.02 Covenants.** Each Guarantor covenants and agrees that, until the Termination Date, such Guarantor will perform and observe and cause each of its Subsidiaries to perform and observe, all of the terms, covenants, and agreements set forth in the Transaction Documents that are required to be, or that the Company has agreed to cause to be, performed or observed by such Guarantor or Subsidiary.

**ARTICLE VI**

**Miscellaneous**

**Section 6.01 Amendments.** No term or provision of this Agreement may be waived, amended, supplemented, or otherwise modified except in a writing signed by each Guarantor, and the Collateral Agent in accordance with Section 5.5 of the Purchase Agreement.

**Section 6.02 Indemnification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Guarantor hereby agrees to indemnify and hold harmless the Collateral Agent (and any sub-agent thereof), each other Secured Party, and each Related Party of any of the foregoing Persons (each such Person being called an "**Indemnitee**") from any losses, damages, liabilities, taxes, claims, and related expenses (including the fees and expenses of any counsel for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees, expenses, and time charges for attorneys who are employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any Person (including any Guarantor) other than such Indemnitee and its Related Parties, arising out of, in connection with, or resulting from this Agreement (including, without limitation, enforcement of this Agreement) or any failure of any Guaranteed Obligations to be the legal, valid, and binding obligations of the Company or the Guarantors enforceable against the Company or the Guarantors in accordance with their terms, whether brought by a third party or by such Guarantor, and regardless of whether any Indemnitee is a party thereto; *provided* that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities, or related expenses (i) resulted from the gross negligence or willful misconduct of such Indemnitee, (ii) result from a claim brought by any Guarantor against an Indemnitee for breach in bad faith of such Indemnitee's obligations hereunder or under any other Transaction Document or (iii) result from a claim not involving an act or omission of the Company or any Guarantors and that is brought by an Indemnitee against another Indemnitee (other than against the Collateral Agent in its capacity as such.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the fullest extent permitted by Applicable Law, each Guarantor hereby agrees not to assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential, or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Transaction Document, or any agreement or instrument contemplated hereby or thereby, the transactions contemplated hereby or thereby. No Indemnitee shall be liable for any damages arising from the use of any information or other materials distributed by it through telecommunications, electronic, or other information transmission systems in connection with this Agreement or the other Transaction Documents, or the transactions contemplated hereby or thereby by unintended recipients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All amounts due under this Section shall be payable not later than ten (10) Business Days after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Without prejudice to the survival of any other agreement of any Guarantor under this Agreement or any other Transaction Documents, the agreements and obligations of each Guarantor contained in Section 2.01 (with respect to enforcement expenses), Section 2.03, and this Section 6.04 shall survive termination of the Transaction Documents, and payment in full of the Guaranteed Obligations and all other amounts payable under this Agreement.

**Section 6.03 Additional Guarantors.** Each Subsidiary of the Company is required to become a Guarantor and will become a Guarantor (each an "**Additional Guarantor**"), with the same force and effect as if they were originally named as a Guarantor herein, for all purposes of this Agreement upon the execution and delivery by such Subsidiary of a supplement to this Agreement substantially in the form of the supplement attached hereto as Annex I (each a "**Guaranty Joinder**"). Each reference to "Guarantor" (or any words of like import referring to a Guarantor) in this Agreement or any other Transaction Document shall also mean the Additional Guarantor; and each reference in this Agreement or any other Transaction Document to this "Guaranty" (or words of like import referring to this Agreement) shall mean this Agreement as supplemented by each Guaranty Joinder. No consent of any other Guarantor hereunder will be required for the execution and delivery of any Guaranty Joinder. The rights and obligations of each Guarantor hereunder shall remain in full force and effect notwithstanding the addition of any Additional Guarantor as a party to this Agreement.

**Section 6.04 Notices.** All notices and other communications provided for herein shall be made in accordance with Section 5.4 of the Purchase Agreement and shall be given to each Guarantor in care of the Company as specified in Section 5.4 of the Purchase Agreement.

**Section 6.05 Continuing Guaranty; Assignments Under the Purchase Agreement.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement is a continuing guaranty and shall (i) remain in full force and effect until the latest of (x) the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Agreement, (y) the Maturity Date, and (z) the latest date of expiration or termination of the Debentures (the "**Termination Date**"), (ii) be binding on each Guarantor, its successors and assigns, and (iii) inure to the benefit of and be enforceable by the Secured Parties and their successors and assigns. Any Secured Party may assign or otherwise transfer all or any portion of its rights and obligations under the Purchase Agreement (including all or any portion of its Commitments owing to it) to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Secured Party herein or otherwise. No Guarantor shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Secured Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Guarantor ceasing to be a Subsidiary as a result of a transaction permitted by the Transaction Documents shall be automatically released from the Guaranty.

**Section 6.06 Counterparts; Integration; Effectiveness.** This Agreement and any amendments, waivers, consents, or supplements hereto may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute a single contract. This Agreement and the other Transaction Documents, and any separate letter agreements with respect to fees payable to the Collateral Agent, constitute the entire contract among the parties with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto. Except as provided in Section 2.2 of the Purchase Agreement, this Agreement shall become effective when it shall have been executed by the Collateral Agent and when the Collateral Agent shall have received counterparts hereof that together bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in electronic (i.e., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of this Agreement.

**Section 6.07 Electronic Execution.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The words "execution," "signed," "signature," and words of similar import in this Agreement and the other Transaction Documents shall be deemed to include electronic signatures or electronic records, each of which shall be of the same effect, validity, and enforceability as manually executed signatures or a paper-based recordkeeping system, as the case may be, to the extent and as provided for under Applicable Law, including the Electronic Signatures in Global and National Commerce Act of 2000 (15 U.S.C. §§ 7001 to 7031), the Uniform Electronic Transactions Act (UETA), or any state law based on the UETA, including the New York Electronic Signatures and Records Act (N.Y. Tech. §§ 301 to 309), *provided that* notwithstanding anything contained herein to the contrary, the Collateral Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Collateral Agent pursuant to procedures approved by it; and *provided, further*, the Collateral Agent reserves the right to require, at any time and at its sole discretion, the delivery of manually executed counterpart signature pages to this Agreement or any other Transaction Document, and the parties hereto agree to promptly deliver such manually executed counterpart signature pages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the generality of the foregoing, each of the parties (i) agrees that, for all purposes, including in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings, or litigation among the Collateral Agent, and the Guarantor, electronic images of this Agreement or any other Transaction Document (in each case, including with respect to any signature pages thereto) shall have the same legal effect, validity, and enforceability as any paper original, and (ii) waives any argument, defense or right to contest the validity or enforceability of such Agreement or Transaction Document based solely on the lack of paper original copies of such Agreement or Transaction Documents, including with respect to any signature pages thereto.

**Section 6.08 Governing Law; Jurisdiction; Etc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Governing Law.** This Agreement and the other Transaction Documents and any claim, controversy, dispute, or cause of action (whether in contract or tort or otherwise) based upon, arising out of, or relating to this Agreement or any other Transaction Document (except, as to any other Transaction Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Submission to Jurisdiction.** Each Guarantor irrevocably and unconditionally agrees that it will not commence any action, litigation, or proceeding of any kind whatsoever, whether in law or equity, or whether in contract or tort or otherwise, against the Collateral Agent or any Secured Party, or any of their respective Related Parties in any way relating to this Agreement or any other Transaction Document or the transactions contemplated hereby or thereby, in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York sitting in New York County, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the exclusive jurisdiction of such courts and agrees that any such action, litigation, or proceeding may be brought in any such New York State court or, to the fullest extent permitted by Applicable Law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action, litigation, or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing herein or in any other Transaction Document shall affect any right that any Secured Party may otherwise have to (i) bring any action or proceeding relating to this Agreement or any other Transaction Document against any Guarantor or any other Loan Party or its properties in the courts of any jurisdiction or (ii) waive any statutory, regulatory, common law, or other rule, doctrine, legal restriction, provision or the like providing for the treatment of bank branches, bank agencies, or other bank offices as if they were separate juridical entities for certain purposes, including Uniform Commercial Code Sections 4-106, 4-A-105(1)(b), and 5- 116(b), UCP 600 Article 3 and ISP98 Rule 2.02, and URDG 758 Article 3(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Waiver of Venue.** Each Guarantor irrevocably and unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court referred to in clause (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Service of Process.** Each party hereto irrevocably consents to the service of process in the manner provided for notices in Section 6.06 and agrees that nothing herein will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law.

**Section 6.09 Waiver of Jury Trial.** EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY. EACH PARTY HERETO (A) CERTIFIES THAT NO AGENT, ATTORNEY, REPRESENTATIVE, OR OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PERSON WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF LITIGATION, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

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| |
|:---|
| **SUBSIDIARY GUARANTORS:** |
| **ASPIRE BIOSCIENCE, INC.** |
| By |
| Name: |
| Title: |
| **EXXEL PHARMA AUSTRALIA, PTY L.** |
| By |
| Name: |
| Title: |

---

---

| |
|:---|
| **JOSEPH GUNNAR & CO., LLC, as Collateral Agent** |
| By |
| Name: |
| Title: |

---

[Signature Page to the Guaranty]

**ANNEX I**

**FORM OF GUARANTY JOINDER**

This Joinder Agreement, dated as of __________ ___ , 202[_], is delivered pursuant to Section 6.03 of the Guaranty, dated as of November __________, 2024, by the Guarantors signatory thereto and [LEAD INVESTOR] as Collateral Agent (the "**Guaranty**"). Capitalized terms used herein without definition are used as defined in the Guaranty.

By executing and delivering this Joinder Agreement, the undersigned, as provided in Section 6.03 of the Guaranty, hereby becomes a party to the Guaranty as a Guarantor thereunder with the same force and effect as if originally named as a Guarantor therein and, without limiting the generality of the foregoing, expressly assumes all obligations and liabilities of a Guarantor thereunder and hereby agrees to be bound as a Guarantor for purposes thereof.

The undersigned hereby represents and warrants that each of the representations and warranties contained in **Article IV** of the Guaranty applicable to it is true and correct on and as the date hereof as if made on and as of such date.

**IN WITNESS WHEREOF**, the undersigned has caused this Joinder Agreement to be duly executed and delivered as of the date first above written.

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| | |
|:---|:---|
| [ADDITIONAL GUARANTOR] | [ADDITIONAL GUARANTOR] |
| By: |  |
|  | Name: |
|  | Title: |

---

**EXHIBIT H**

**RISK FACTORS**

**EXHIIBIT H**

Our business is subject to many significant risks. You should carefully consider these summary risks before deciding whether to invest. In particular, our risks include, but are not limited to, the following:

● We have a limited operating history, have not initiated, conducted or completed any clinical trials, and have no products approved for commercial sale, which may make it difficult for you to evaluate our current business and likelihood of success and viability.

● We have incurred significant losses since inception, we expect to incur losses in the future and we may not be able to generate sufficient revenue to achieve and maintain profitability.

● Even if this offering is successful, we will require substantial additional capital to finance our operations in the future. If we are unable to raise such capital when needed, or on acceptable terms, we may be forced to curtail, delay or discontinue one or more of development programs or future commercialization efforts.

● Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing.

● Any delays in the commencement or completion, or termination or suspension, of our ongoing, planned or future clinical trials could result in increased costs to us, delay or limit our ability to generate revenue and adversely affect our commercial prospects.

● The outcome of pre-clinical testing and early clinical trials may not be predictive of the success of later clinical trials, and the results of our clinical trials may not satisfy the requirements of the U.S. Food and Drug Administration or other comparable foreign regulatory authorities.

● If we experience delays or difficulties in enrolling patients in our ongoing or planned clinical trials, our receipt of necessary regulatory approval could be delayed or prevented.

● We may be required to perform additional or unanticipated clinical trials to obtain approval or be subject to post-marketing testing requirements to maintain regulatory approval. If our candidates prove to be ineffective, unsafe or commercially unviable, our entire technology platform and pipeline would have little, if any, value, which would have a material and adverse effect on our business, financial condition, results of operations and prospects.

● Adverse side effects or other safety risks associated with our drug candidates could delay or preclude approval, cause us to suspend or discontinue clinical trials or abandon further development, limit the commercial profile of an approved label, or result in significant negative consequences following marketing approval, if any.

● Our products may never achieve market acceptance.

● We face significant competition, and if our competitors develop and market technologies or products more rapidly than we do or that are more effective, safer or less expensive than the products we develop, our commercial opportunities will be negatively impacted.

● We rely on third parties to manufacture our product candidates and conduct our pre-clinical studies and clinical trials. If these third parties do not successfully perform their contractual and regulatory duties or meet expected deadlines, we may not be able to obtain regulatory approval for or commercialize our drug candidates and our business could be substantially harmed.

● Even if we are successful in completing pre-clinicals studies and clinical trials, we may not be successful in commercializing any drug candidate.

● The development and commercialization of pharmaceutical products are both subject to extensive regulation.

● We may not be able to protect our intellectual property and proprietary rights throughout the world.

**EXHIBIT I**

**BENEFICIAL CAPITAL STOCKHOLDER LOCK-UP AGREEMENT**

LOCK-UP AGREEMENT

(5%+ NOTEHOLDERS)

November 19, 2024

Exxel Pharma, Inc.

12635 E. Montview Blvd., Suite 134

Aurora, CO 80045

Joseph Gunnar & Co., LLC

40 Wall Street, Suite 3004

New York, New York 10005

*As Placement Agent to the Company (as defined below)*

 

<u>RE</u>: <u>Exxel Pharma, Inc.</u>

Ladies and Gentlemen:

The undersigned, a beneficial owner of 5% or more of the common stock, par value $0.00 per share (the "**Common Stock**"), of Exxel Pharma, Inc, a corporation organized under the laws of the Province of British Columbia, Canada (the "**Company**"), understands that Joseph Gunnar & Co., LLC is acting as the placement agent (the "**Placement Agent**") in connection with the private placement of 12.5% Senior Secured Convertible Debentures and Warrants to accredited investors through a bridge financing (the "**Bridge**") conducted pursuant to a Securities Purchase Agreement dated as of November 19, 2024, by and between the Company and the purchasers signatory thereto (the "**Purchase Agreement**").

To induce the Placement Agent to continue its efforts in connection with the Bridge, the undersigned hereby agrees that, without the prior written consent of the Placement Agent and the Company, the undersigned will not (except upon the occurrence of an Early Termination (as defined below)), during the period beginning on the date of the first closing of the Bridge and ending on the earlier of the third month anniversary of the consummation of a Qualified Offering or a Qualified Event (as those terms are defined in the Purchase Agreement) (the "**Lock-Up Period**"), (1) offer, pledge, sell, contract or agree to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of, lend, hypothecate, establish or increase a "put equivalent position" or liquidate or decrease a "call equivalent position" within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, or otherwise transfer or dispose of, or agree to transfer or dispose of, directly or indirectly, any shares of the Company's Common Stock ("**Shares**") or any securities convertible into or exercisable or exchangeable for Shares, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition (collectively, the "**Lock-Up Securities**"); (2) enter into any swap, hedge or any other agreement, transaction or arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Lock- Up Securities or is repayable with the Lock-Up Securities, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Lock-Up Securities, in cash or otherwise; (3) make any demand for or exercise any right with respect to the registration of any Lock- Up Securities; or (4) publicly disclose the intention to make any offer, sale, pledge or disposition, or to enter into any transaction, swap, hedge or other agreement, transaction or arrangement relating to any Lock-Up Securities. Notwithstanding the foregoing, and subject to the conditions below, the undersigned may transfer Lock-Up Securities without the prior written consent of the Placement Agent and the Company in connection with (a) transactions relating to Lock-Up Securities acquired in open market transactions after the completion of the Qualified Offering or the Qualified Event (not including a direct listing); (b) transfers of Lock-Up Securities as a *bona fide* gift, by will or intestacy or to a family member or trust for the benefit of a family member (for purposes of this lock-up agreement, "family member" means any relationship by blood, marriage or adoption, not more remote than first cousin); (c) by operation of law; (d) transfers of Lock-Up Securities to a charity or educational institution; (e) transfers of Lock-Up Securities (A) to another entity that is an affiliate (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) of the undersigned, or to any investment fund or other entity controlling, controlled by, managing or managed by or under common control with the undersigned or affiliates of the undersigned or who shares a common investment advisor with the undersigned or (B) as part of a distribution to members, partners, shareholders or equity holders of the undersigned; and (f) transfers of Lock-Up Securities pursuant to a *bona fide* third party tender offer, merger, consolidation or other similar transaction that (1) does not qualify as a Qualified Event, (2) is made to all holders of the Company's capital stock, (3) involves a change of control of the Company, and (4) has been approved by the Company's board of directors; <u>provided that,</u> in the case of any transfer pursuant to the foregoing clauses (b), (d) or (e), (i) any such transfer shall not involve a disposition for value, and (ii) each transferee shall sign and deliver to the Placement Agent a lock-up agreement substantially in the form of this lock-up agreement; and <u>provided further</u>, that in the case of any transfer pursuant to the foregoing clauses (c) or (f), each transferee shall sign and deliver to the Placement Agent a lock-up agreement substantially in the form of this lock-up agreement. The undersigned also agrees and consents to the entry of stop transfer instructions with the Company's transfer agent and registrar against the transfer of the undersigned's Lock-Up Securities except in compliance with this lock-up agreement. In furtherance of the foregoing, the Company and its transfer agent are hereby authorized to decline to make or register in its books and records any transfer of Lock-Up Securities if such transfer would constitute a violation or breach of this lock-up agreement.

No provision in this lock-up agreement shall be deemed to restrict or prohibit the exercise, exchange or conversion by the undersigned of any securities exercisable or exchangeable for or convertible into Shares, as applicable; <u>provided</u> that the undersigned does not transfer the Shares acquired on such exercise, exchange or conversion during the Lock-Up Period, unless otherwise permitted pursuant to the terms of this lock-up agreement.

The undersigned understands that the Company and the Placement Agent are relying upon this lock- up agreement in proceeding toward the consummation of the Bridge. The undersigned further understands that this lock-up agreement is irrevocable and shall be binding upon the undersigned's heirs, agents, successors and assigns.

The parties understand that in the event that the first closing of the Bridge is not consummated on or prior to November 30, 2024, or a Qualified Offering or Qualified Event is not consummated on or prior to December 31, 2025, then this lock-up agreement shall be void and of no further force or effect ("**Early Termination**").

Very truly yours,

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| |
|:---|
| Signature: |
| Print Name: |
| Date Signed: |
| Name of Signatory, in case of entities: |
| Title of Signatory, in case of entities: |

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[*Signature Page to the Lock-Up Agreement*]

## Exhibit 10.10

**Exhibit 10.10**

<u>**WARRANT**</u>

**NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAS BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BYA LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.**

**EXXEL PHARMA INC.**

**<u>COMMON STOCK PURCHASE WARRANT</u>**

Original Issue Date: November 19, 2024

Termination Date: November 19, 2027

THIS COMMON STOCK PURCHASE WARRANT ("**Warrant**") certifies that, for value received John Nash or his assigns ("<u>**Holder**</u>") is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date of the consummation the first Liquidity Event (as defined below) occurring after the Original Issue Date of this Warrant (the "**Initial Exercise Date**") and on or prior to 5:00 p.m. (New York City time) on third anniversary of the Initial Exercise Date ("**Termination Date**") but not thereafter, to subscribe for and purchase from Exxel Pharma Inc., a corporation organized under the laws of the Province of British Columbia ("**Company**"), up to the Initial Warrant Number of Shares (as hereinafter defined) of Common Stock (as subject to adjustment hereunder, "**Warrant Shares**"). The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in section 2(b). A "**Liquidity Event**" shall mean a Change of Control or an Initial Public Offering.

In this Warrant, the term "<u>Initial Warrant Number of Shares</u>" is the number obtained by dividing: (i) seventy five percent (75%) of the aggregate Original Principal Amount of Note(s) originally issued under the Purchase Agreement (as such terms are hereinafter defined) in respect of this Warrant, by (ii) the offering price per share of Common Stock paid in the first Liquidity Event following the Original Issue Date hereof. Additionally, on the final closing date of the bridge financing, purchasers of the debentures will receive the aforementioned warrants to purchase the Company's Common Stock in an amount equal to seventy five percent (75%) of the funding amount (as defined in the Convertible Debenture); and an additional fifty percent (50%) of the funding amount for an extension period. The "Extension Period" shall mean nine (9) months from the initial closing date, subject to an extension of the Maturity Date (3 additional months).

**Section 1 <u>Definitions</u>.**

Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement ("**Purchase Agreement**"), dated as of November 19, 2024, by and among the Company and the Investors signatory thereto.

**Section 2 Exercise.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Exercise of Warrant</u>. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto ("**Notice of Exercise**"). Within the earlier of: (i) two (2) Business Days; and (ii) the number of Business Days comprising the Standard Settlement Period (as defined in section 2(d)(i)) following the date of exercise as aforesaid, the Holder shall deliver to the Company the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier's check drawn on a United States bank. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Business Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Exercise Price</u>. The exercise price per share of Common Stock under this Warrant shall be $0.01 subject to adjustment hereunder ("**Exercise Price**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c) <u>Mechanics of Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Delivery of Warrant Shares Upon Exercise</u>. The Company shall cause the Warrant Shares
 purchased hereunder to be transmitted by its transfer agent, if applicable to the Holder by crediting the account of the
 Holder's or its designee's balance account with The Depository Trust Company through its Deposit or Withdrawal at
 Custodian system ()"**DWAC**") if, following the consummation of a Liquidity Event, the Company is then a participant
 in such system and either: (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or
 resale of the Warrant Shares by the Holder; or (B) the Warrant Shares are eligible for resale by the Holder without volume or
 manner-of-sale limitations pursuant to Rule 144, and otherwise by physical delivery of a certificate, registered in the
 Company's share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is
 entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest
 of: (i) two (2) Business Days after the delivery to the Company of the Notice of Exercise; (ii) one (1) trading day after delivery of
 the aggregate Exercise Price to the Company; and (iii) the number of Trading days
 comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the
 "**Warrant Share Delivery Date** "). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all
 corporate (but not Rule 144) purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant
 has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise
 Price is received within the earlier of: (i) two (2) Business Days; and (ii) the number of trading days comprising the Standard
 Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the
 Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as
 liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the volume weighted
 average price of the Common Stock on the date of the applicable Notice of Exercise), $10 per Business Day (increasing to $20 per
 Trading Day on the fifth (5<sup>th</sup>) Business Day after such liquidated damages begin to accrue) for each Business Day after
 such Warrant Share Delivery Date until such Warrant Shares are delivered or the Holder rescinds such exercise. Following
 consummation of a Liquidity Event, the Company agrees to maintain a transfer agent that is a participant in the FAST program so long
 as this Warrant remains outstanding and exercisable. As used herein, "**Standard Settlement Period**" means the
 standard settlement period, expressed in a number of trading days, on the Company's primary Trading Market with respect to the
 Common Stock as in effect on the date of delivery of the Notice of Exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Delivery of New Warrants Upon Exercise</u>. If this Warrant shall have been exercised in part, the
Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares,
deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Rescission Rights</u>. If the Company fails to cause its transfer agent to transmit to the Holder the
Warrant Shares pursuant to section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise</u>. In addition
to any other rights available to the Holder, if, following a Liquidity Event, the Company fails to cause its transfer agent to transmit
to the Holder the Warrant Shares in accordance with the provisions of section 2(d)(i) above pursuant to an exercise on or before the Warrant
Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise)
or the Holder's brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of
the Warrant Shares which the Holder anticipated receivingupon such exercise ()"**Buy-In** "), then the Company shall: (A)
pay in cash to the Holder the amount, if any, by which (x) the Holder's total purchase price (including brokerage commissions, if
any) for the shares of Common Stock so purchased exceeds (y) the product of (1) the number of Warrant Shares that the Company was required
to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase
obligation was executed; and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant
Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number
of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder.
For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy- In with respect to an attempted
exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000,under clause (A) of
the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount
of such loss. Nothing herein shall limit a Holder's right to pursue any other remedies available to it hereunder, at law or in equity
including,without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to
timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>No Fractional Shares or Scrip</u>. No <u>fractional</u> shares
or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company
shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price or roundup to the next whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. <u>Charges, Taxes and Expenses</u>. Issuance of Warrant Shares shall be made without charge to the Holder
for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses
shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; *provided, however,* that in the event that Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and
the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.
The Company shall pay all its transfer agent's fees required for same-day processing of any Notice of Exercise and all fees to the
Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery
of the Warrant Shares. The Company shall pay all attorney fees required for the issuance of attorney legal opinions for removal of restrictive
legends on Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. <u>Closing of Books</u>. The Company will not close its stockholder books or records in any manner which
prevents the timely exercise of this Warrant, pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Holder's Exercise Limitations</u>. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder's Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder's Affiliates (such Persons, "**Attribution Parties**")), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon: (i) exercise of the remaining, non- exercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties; and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder ("**Exchange Act**"), it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder's determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in: (A) the Company's most recent periodic or annual report filed with the Commission, as the case may be; (B) a more recent public announcement by the Company; or (C) a more recent written notice by the Company setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within one trading day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding shares of Common Stock was reported. The "**Beneficial Ownership Limitation**" shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61<sup>st</sup> day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

**Section 3 Certain Adjustments.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Stock Dividends and Splits</u>. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant); (ii) subdivides outstanding shares of Common Stock into a larger number of shares; (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares; or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Subsequent Equity Sales</u>. If and whenever, at any time while this Warrant is <u>outstanding</u>, the Company issues or sells, announces any offer, sale, or other disposition of, or in accordance with this section 3 is deemed to have issued, sold or granted (or makes an announcement regarding the same), any shares of Common Stock and/or Common Stock equivalents (including the issuance or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding any securities issued or sold or deemed to have been issued or sold solely in connection with an Exempt Issuance) for a consideration per share ("**New Issuance Price**") less than a price equal to the Exercise Price in effect immediately prior to such issuance or sale or deemed issuance or sale (such Exercise Price then in effect is referred to herein as the "**Applicable Price**") (the foregoing a "**Dilutive Issuance**"), then immediately after such Dilutive Issuance: (i) the Exercise Price then in effect shall be reduced to an amount equal to the New Issuance Price; and (ii) the number of Warrant Shares issuable hereunder shall be increased such that the aggregate Exercise Price payable hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the aggregate Exercise Price prior to such adjustment (subject to adjustment as provided herein). For all purposes of the foregoing (including, without limitation, determining the adjusted Exercise Price and the New Issuance Price under this section 3(b)), the following shall be applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Issuance of Options</u>. If the Company in any manner grants, issues or <u>sells</u> (or enters into any agreement to grant, issue or sell) any Options (as defined below) and the lowest price per share for which one share of Common Stock is at any time issuable upon the exercise of any such Option (as defined below) or upon conversion, exercise or exchange of any Common Stock equivalents issuable upon exercise of any such Option (as defined below) or otherwise pursuant to the terms thereof is less than the Applicable Price, then such Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option (as defined below) for such price per share. For purposes of this section 3(b)(i), the 'lowest price per share for which one Common Stock is at any time issuable upon the exercise of any such Options (as defined below) or upon conversion, exercise or exchange of any Common Stock equivalents issuable upon exercise of any such Option (as defined below) or otherwise pursuant to the terms thereof' shall be equal to: (A) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the granting, issuance or sale of such Option (as defined below), upon exercise of such Option (as defined below) and upon conversion, exercise or exchange of any Common Stock equivalents issuable upon exercise of such Option (as defined below) or otherwise pursuant to the terms thereof and (y) the lowest exercise price set forth in such Option (as defined below) for which one share of Common Stock is issuable (or may become issuable assuming all possible market conditions) upon the exercise of any such Options (as defined below) or upon conversion, exercise or exchange of any Common Stock equivalents issuable upon exercise of any such Option (as defined below) or otherwise pursuant to the terms thereof minus; (B) the sum of all amounts paid or payable to the holder of such Option (or any other Person) upon the granting, issuance or sale of such Option (as defined below), upon exercise of such Option (as defined below) and upon conversion, exercise or exchange of any Common Stock equivalents issuable upon exercise of such Option (as defined below) or otherwise pursuant to the terms thereof plus the value of any other consideration received or receivable by, or benefit conferred on, the holder of such Option (as defined below) (or any other Person). Except as contemplated below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock or of such Common Stock equivalents upon the exercise of such Options (as defined below) or otherwise pursuant to the terms of or upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Common Stock equivalents. "**Option**" means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities, other than option issued in an Exempt Issuance. "**Convertible Securities**" means any shares or other security (other than Options) that is at any time and under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Issuance of Convertible Securities</u>. If the Company in any manner issues or sells (or enters into any agreement to issue or sell) any Common Stock equivalents and the lowest price per share for which one share of Common Stock is at any time issuable upon the conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof is less than the Applicable Price, then such shares of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Common Stock equivalents for such price per share. For the purposes of this section 3(b)(ii), the 'lowest price per share for which one Common Stock is at any time issuable upon the conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof' shall be equal to: (A) the lower of (x) the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to one share of Common Stock upon the issuance or sale of the Common Stock equivalents and upon conversion, exercise or exchange of such Common Stock equivalents or otherwise pursuant to the terms thereof and (y) the lowest conversion price set forth in such Common Stock equivalents for which one share of Common Stock is issuable (or may become issuable assuming all possible market conditions) upon conversion, exercise or exchange thereof or otherwise pursuant to the terms thereof minus; (B) the sum of all amounts paid or payable to the holder of such Common Stock equivalents (or any other Person) upon the issuance or sale of such Common Stock equivalents plus the value of any other consideration received or receivable by, or benefit conferred on, the holder of such Common Stock equivalents (or any other Person). Except as contemplated below, no further adjustment of the Exercise Price shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Common Stock equivalents or otherwise pursuant to the terms thereof, and if any such issuance or sale of such Common Stock equivalents is made upon exercise of any Options for which adjustment of this Warrant has been or is to be made pursuant to other provisions of this section 3(b), except as contemplated below, no further adjustment of the Exercise Price shall be made by reason of such issuance or sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Change in Option Price or Rate of Conversion</u>. If the purchase or exercise price provided for in
any Options, the additional consideration, if any, payable upon the issue, conversion, exercise or exchange of any Common Stock equivalents,
or the rate at which any Common Stock equivalents are convertible into or exercisable or exchangeable for shares of Common Stock increases
or decreases at any time (other than proportional changes in conversion or exercise prices, as applicable, in connection with an event
referred to in section 3(a)), the Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise
Price which would have been in effect at such time had such Options or Common Stock equivalents provided for such increased or decreased
purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially granted,
issued or sold. For purposes of this section 3(b)(iii), if the terms of any Option or Common Stock equivalents that was outstanding as
of the date this Warrant was issued are increased or decreased in the manner described in the immediately preceding sentence, then such
Option or Common Stock equivalents and the shares of Common Stock deemed issuable upon exercise, conversion or exchange thereof shall
be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this section 3(b) shall be made if
such adjustment would result in an increase of the Exercise Price, then in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Change in Option Price or Rate of Conversion</u>. If any Option and/or <u>Common</u> Stock equivalents
and/or Adjustment Right (as defined below) is issued in connection with the issuance or sale or deemed issuance or sale of any other securities
of the Company (as determined by the Holder, the "**Primary Security,**" and such Option and/or Common Stock equivalents
and/or Adjustment Right (as defined below), the "**Secondary Securities** "), together comprising one integrated transaction,
(or one or more transactions if such issuances or sales or deemed issuances or sales of securities of the Company either: (A) have at
least one investor or purchaser in common; (B) are consummated in reasonable proximity to each other; and/or (C) are consummated under
the same plan of financing) the aggregate consideration per share of Common Stock with respect to such Primary Security shall be deemed
to be equal to the difference of (x) the lowest price per share for which one share of Common Stock was issued (or was deemed to be issued
pursuant to section 3(b)(i) or 3(b)(ii) above, as applicable) in such integrated transaction solely with respect to such Primary Security,
minus (y) with respect to such Secondary Securities, the sum of (I) the <u>Black Scholes Consideration Value</u> (as defined below) of
each such Option, if any, (II) the fair market value (as determined by the Holder in good faith) or the Black Scholes Consideration Value
(as defined below), as applicable, of such Adjustment Right (as defined below), if any, and (III) the fair market value (as determined
by the Holder) of such Common Stock equivalents, if any, in each case, as determined on a per share basis in accordance with this section
3(b)(iv). If any shares of Common Stock, Options or Common Stock equivalents are issued or sold or deemed to have been issued or sold
for cash, the consideration received therefor (for the purpose of determining the consideration paid for such Common Stock, Option or
Common Stock equivalents, but not for the purpose of the calculation of the Black Scholes Consideration Value (as defined below)) will
be deemed to be the net amount of consideration received by the Company therefor. If any shares of Common Stock, Options or Common Stock
equivalents are issued or sold for a consideration other than cash, the amount of such consideration received by the Company (for the
purpose of determining the consideration paid for such Common Stock, Option or Common Stock equivalents, but not for the purpose of the
calculation of the Black Scholes Consideration Value (as defined below) will be the fair value of such consideration,
except where such consideration consists of publicly traded securities, in which case the amount of consideration received by the Company
for such securities will be the arithmetic average of the volume weighted average prices of such security for each of the five (5) Trading
Days immediately preceding the date of receipt. If any shares of Common Stock, Options or Common Stock equivalents are issued to the owners
of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of consideration therefor
(for the purpose of determining the consideration paid for such shares of Common Stock, Option or Common Stock equivalents, but not for
the purpose of the calculation of the Black Scholes Consideration Value (as defined below)) will be deemed to be the fair value of such
portion of the net assets and business of the non-surviving entity as is attributable to such shares of Common Stock, Options or Common
Stock equivalents (as the case may be). The fair value of any consideration other than cash or publicly traded securities will be determined
jointly by the Company and the Holder. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event
requiring valuation ()"**Valuation Event** "), the fair value of such consideration will be determined within five (5) Trading
Days after the tenth (10th) day following such Valuation Event by an independent, reputable appraiser jointly selected by the Company
and the Holder. The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and
expenses of such appraiser shall be borne by the Company). "**Adjustment Right**" means any right granted with respect
to any securities issued in connection with, or with respect to, any issuance or sale (or deemed issuance or sale hereunder) of Common
Stock (other than rights of the type described in sections 3(c) and 3(d) hereof) that could result in a decrease in the net consideration
received by the Company in connection with, or with respect to, such securities (including, without limitation, any cash settlement rights,
cash adjustment or other similar rights).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Change in Option Price or Rate of Conversion</u>. If the Company takes a record of the holders of shares
of Common Stock for the purpose of entitling them: (A) to receive a dividend or other distribution payable in shares of Common Stock,
Options or in Common Stock equivalents; or (B) to subscribe for or purchase shares of Common Stock, Options or Common Stock equivalents,
then such record date will be deemed to be the date of the issuance or sale of the shares of Common Stock deemed to have been issued or
sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription
or purchase (as the case may be).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Subsequent Rights Offerings</u>. In addition to any adjustments pursuant to section 3(a) above, if at any time the Company grants, issues or sells any Common Stock equivalents or rights to purchase stock, warrants, securities or other property pro rata to the <u>record</u> holders of any class of shares of Common Stock ("**Purchase Rights**"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (<u>provided</u>, <u>however</u>, that, to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Pro Rata Distributions</u>. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or <u>other</u> securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "**Distribution**"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, that, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Fundamental Transaction</u>. If, at any time while this Warrant is outstanding: (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person; (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions; (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of fifty percent (50%) or more of the outstanding Common Stock; (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property; or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme or arrangement) with another Person or group of Persons whereby such other Person or group acquires more than fifty percent (50%) of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a "**Fundamental Transaction**"), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in section 2(d) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration ("**Alternate Consideration**") receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in section 2(d) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder's option, exercisable at any time concurrently with, or within thirty (30) days after, the consummation of the Fundamental Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction), purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value (as defined below) of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction. "**Black Scholes Value**" means the value this Warrant based on the Black-Scholes Option Pricing Model obtained from the 'OV' function on Bloomberg, L.P. ("**Bloomberg**") determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting: (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date; (B) an expected volatility equal to the greater of hundred percent (100%) and the hundred (100) day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction; (C) the underlying price per share used in such calculation shall be the greater of (i) the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (ii) the greater of (x) the last volume weighted average price immediately prior to the public announcement of such Fundamental Transaction and (y) the last volume weighted average price immediately prior to the consummation of such Fundamental Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The payment of the Black Scholes Value will be made by wire transfer of immediately available funds within five (5) Business Days of the Holder's election (or, if later, on the effective date of the Fundamental Transaction). The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor ("**Successor Entity**") to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the 'Company' shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>Calculations</u>. All calculations under this section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this section 3, the <u>number</u> of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Adjustment to Exercise Price</u>. Whenever the Exercise Price is adjusted pursuant to any provision of this section 3, the Company shall promptly deliver to the Holder by email a notice setting forth the Exercise Price after such adjustment and any resulting <u>adjustment</u> to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) <u>Notice to Allow Exercise by Holder</u>. If: (i) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock; (ii) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock; (iii) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; (iv) the approval of any stockholders of the Company shall be required in connection with any re-classification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property; or (v) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least twenty (20) calendar days prior to the applicable record or effective date herein after specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

**Section 4 <u>Transfer of Warrant</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Transferability</u>. Subject to compliance with any applicable securities laws and the conditions set forth in section 4(d) hereof and to the provisions of section 4.01 of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Business Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>New Warrants</u>. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Initial Exercise Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Warrant Register</u>. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose ("**Warrant Register**"), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Transfer Restrictions</u>. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either: (i) registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws; or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of section 4.01 of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Representation by the Holder</u>. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

**Section 5 Company Call Option**

This Warrant is subject to repurchase by the Company (the "**Company Call Option**") at the Call Price, at any time and from time to time prior to the Termination Date if, at any time prior thereto, the Common Stock traded in the Trading Market for ten (10) or more Trading Days (whether or not consecutive) above the Call Price (the "**Company Call Condition**"). If the Company shall desire to exercise the Company Call Option, it shall: (i) the Company shall give at least fifteen (15) days' prior written notice to Holder of such proposed repurchase, specifying that the Company Call Conditions have been met and presenting in reasonable detail the particulars thereof; and (B) thereafter, the Holder shall tender and surrender this Warrant to the Company against payment of the Call Price for this Warrant, by wire transfer of immediately available funds to the account specified by Holder. The "Call Price" shall mean $0.01.

**Section 6 Miscellaneous.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>No Rights as Stockholder Until Exercise</u>. This Warrant does not entitle the Holder to any voting rights, dividends, or other rights as a stockholder of the Company prior to the exercise hereof as set forth in section 2(c)(i), except as expressly set forth in Section 3. Without limiting any rights of a Holder to receive cash payments pursuant to Section 2(c)(i) and Section 2(c)(iv) herein, in no event shall the Company be required to net cash settle an exercise of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Loss, Theft, Destruction or Mutilation of Warrant</u>. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Saturdays, Sundays, Holidays, etc</u>. If the last or appointed day for the takingof any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of the Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will: (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value; (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant; and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Jurisdiction</u>. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Restrictions</u>. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws will have restrictions upon resale imposed by state and federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Nonwaiver and Expenses</u>. No course of dealing or any delay or failure to exercise any right hereunder on the part of the Holder shall operate as a waiver of such right or otherwise prejudice the Holder's rights, powers or remedies. Without limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys' fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>Notices</u>. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Limitation of Liability</u>. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) <u>Remedies</u>. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) <u>Successors and Assigns</u>. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l) <u>Amendment; Waivers</u>. This Warrant may be modified or amended, or the provisions hereof waived with the written consent of the Company and the Holder. Further,any modifications, amendments or waivers of the provisions hereof shall be subject to section 5.5 of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m) <u>Severability</u>. Wherever possible, each provision of this Warrant shall be interpreted in such <u>manner</u> as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n) <u>Headings</u>. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o) <u>Equal Treatment of Holders</u>. No consideration (including any modificationof this Warrant) shall be offered or paid to any Person (as such term is defined in the Purchase Agreement) to amend or consent to a waiver or modification of any provision hereof unless the same consideration is also offered to all of the <u>Holders</u>. For clarification purposes, this provision constitutes a separate right granted to each Holder by the Companyand negotiated separately by each Holder and is intended for the Company to treat the Holders as a class and shall not in any way be construed as the Holders acting in concert or as a group with respect to the Warrants or the shares of Common Stock issuable upon exercise of the Warrants.

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

(*Signature Page Follows*)

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly authorized officer as of the date first above indicated.

---

| | |
|:---|:---|
| **EXXCEL PHARMA INC.** | **EXXCEL PHARMA INC.** |
| By: |  |
| Name: | Soren Mogelsvang |
| Title: | Chief Executive Officer |

---

**NOTICE OF EXERCISE**

TO:<u> </u>

(1) The undersigned hereby elects to purchase <u> </u> Warrant Shares of the Company pursuant to the terms
of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable
transfer taxes, if any. Payment shall take the form of lawful money of the United States.

(2) Payment shall take the form of lawful money of the United States

(3) Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified
below:

_________________________________

(4) The Warrant Shares shall be delivered to the following DWAC Account Number:

_________________________________

_________________________________

_________________________________

(5) <u>Accredited Investor</u>. The undersigned is an "accredited
investor" as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

  <br>[SIGNATURE OF HOLDER]

Name of Investing Entity:

Signature of Authorized Signatory of Investing Entity:<u> </u>

Name of Authorized Signatory:<u> </u>

Title of Authorized Signatory:

Date:<u> </u>

**ASSIGNMENT FORM**

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this Form to purchase shares.)

**FOR VALUE RECEIVED**, the foregoing Warrant and all rights evidenced thereby are hereby assigned to:

---

| | |
|:---|:---|
| Name: | |
|  | (Please Print) |
| Address: |  |
|  | (Please Print) |

---

Phone Number:Email Address: <br> 

Dated:<u> </u>,<u> </u>

Holder's Signature:<u> </u>

Holder's Address:<u> </u>

<u> </u>

## Exhibit 10.11

**Exhibit 10.11**

<u>UC Agreement Control No.:2022-04-0094-Rev C</u>

**SECOND AMENDMENT TO THE LICENSE AGREEMENT BETWEEN THE REGENTS OF <br> THE UNIVERSITY OF CALIFORNIA AND EXXEL PHARMA, INC**

This Second **amendment (the "Second Amendment"), dated** August 8, 2025 **(the "Effective Date"), is made by and between** The Regents of the University of California **("The Regents"), a** California corporation having its statewide administrative offices at 1111 Franklin Street, 12<sup>th</sup> Floor, Oakland, California 94607-5200, acting through the offices of The University of California, Irvine located at 5270 California Ave, Suite #100, Irvine, CA 92697-7700 and **Exxel Pharma, Inc. ("Licensee") having a principal place of business at 12635 E Montview Blvd, Suite 134, Aurora, CO 80045** and amends the license agreement with Licensee, dated August 17, 2021 with UC Agreement Control Number 2022-04-0094 **(the "License Agreement").**

**RECITALS**

**WHEREAS,** Licensee has requested an extension of certain diligence milestones and The Regents is willing to agree to such extensions;

**NOW THEREFORE,** in consideration of the foregoing premises and the mutual promises, covenants, and agreements hereinafter set forth, all parties to this Second Amendment mutually agree to amend the License Agreement as follows:

1. **Replace PARAGRAPHS 7.3(A)** - **7.3(F)** of the License Agreement with the following to
 extend the deadlines therein:

&nbsp;&nbsp;&nbsp;&nbsp;(A) Spend a minimum of on
 the development of a Licensed Product within four and a half years of the Effective Date
 of the License Agreement, such development may be in the form of sponsored research at UCI;

&nbsp;&nbsp;&nbsp;&nbsp;(B) Begin a Phase I clinical
 trial and complete a first human dosing with a Licensed Product no later than

&nbsp;&nbsp;&nbsp;&nbsp;(C) Initiate
 a Phase II clinical trial with a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(D) Initiate
 pivotal phase III clinical trial with a Licensed Product no later than

&nbsp;&nbsp;&nbsp;&nbsp;(E) File
 for regulatory approval for a Licensed Product with the FDA or EMA no later than ; and

&nbsp;&nbsp;&nbsp;&nbsp;(F) Complete
 a First Commercial Sale of a Licensed Product, no later than one year after receiving regulatory
 approval for such Licensed Product by the FDA or EMA.

All other terms and conditions of the License Agreement remain the same.

This Second Amendment may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Facsimile, Portable Document Format (PDF) or photocopied signatures of the Parties will have the same legal validity as original signatures.

IN WITNESS WHEREOF, the parties have executed this Second Amendment by their duly authorized representatives for good and valuable consideration.

---

| | | | |
|:---|:---|:---|:---|
| **EXXEL PHARMA INC.** | **EXXEL PHARMA INC.** | **THE REGENTS OF THE UNIVERSITY<br> OF CALIFORNIA** | **THE REGENTS OF THE UNIVERSITY<br> OF CALIFORNIA** |
| By: | /s/ Soren Mogelsvang | By: | /s/ Casie Kelly |
| Name: | Soren Mogelsvang, PhD | Name: | Casie Kelly, PhD |
| Title: | President and CEO | Title: | Director, Research Translation |
| Date: | 9/5/2025 | Date: | 9/5/2025 |

---

<u>**APPENDIX A**</u>

**REGENTS' PATENT RIGHTS**

**1)** <u>**UC CASE NO. [#]**</u> **("[INVENTION NAME]")**

**Provisional Patent Application No. [#]** entitled, **"[INVENTION NAME]",** filed **[FILING DATE]** (UC Case No. **[UC CASE#]**) by Dr(s). **[INVENTOR'S NAME(S)],** and assigned to The Regents.

**U.S. Patent Application No. [#]** entitled, **"[INVENTION NAME]",** filed **[FILING DATE]** (UC Case No. **[UC CASE #]**) by Dr(s) **[INVENTOR'S NAME(S)],** and assigned to The Regents.

**United States Patent No.[#]** entitled, **"[INVENTION NAME]",** filed **[FILING DATE]** (UC Case No. **[UC CASE #]**) by Dr(s). **[INVENTOR'S NAME(S)],** and assigned to The Regents.

## Exhibit 10.12

**Exhibit 10.12**

<u>UC Agreement Control No.:2022-04-0096-Rev F</u>

**SECOND AMENDMENT TO THE LICENSE AGREEMENT BETWEEN THE REGENTS OF <br> THE UNIVERSITY OF CALIFORNIA AND EXXEL PHARMA, INC**

This second amendment (the "**Second Amendment**"), dated August 28, 2025 (the "**Effective Date**"), is made by and between The Regents of the University of California ("**The Regents**"), a California corporation having its statewide administrative offices at 1111 Franklin Street, 12<sup>th</sup> Floor, Oakland, California 94607-5200, acting through the offices of The University of California, Irvine located at 5270 California Ave, Suite #100, Irvine, CA 92697-7700 and **Exxel Pharma, Inc.** ("**Licensee**") having a principal place of business at **12635 E Montview Blvd, Suite 134, Aurora, CO 80045** and amends the license agreement with Licensee, dated August 17, 2021 with UC Agreement Control Number 2022-04-0096 (the "**License Agreement**").

**RECITALS**

**WHEREAS,** Licensee has requested an extension of certain diligence milestones, and The Regents is willing to agree to such extensions;

**NOW THEREFORE,** in consideration of the foregoing premises and the mutual promises, covenants, and agreements hereinafter set forth, all parties to this Second Amendment mutually agree to amend the License Agreement as follows:

1. **Replace PARAGRAPHS 7.3(B) - 7.3(G)** of the License Agreement with the following to
 extend the deadlines therein:

" 7.3 (B) Submit IND or equivalent package for US FDA or Australian Ethics committee approval for a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(C) Begin
a Phase I clinical trial and complete a first human dosing with a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(D) Complete
a Phase II clinical trial with a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(E) Complete pivotal Phase III clinical trial with a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(F) File
NDA for a Licensed Product no later than ;

&nbsp;&nbsp;&nbsp;&nbsp;(G) Complete
 a first commercial sale of a Licensed Product no later than .

All other terms and conditions of the License Agreement remain the same.

This Second Amendment may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. Facsimile, Portable Document Format (PDF) or photocopied signatures of the Parties will have the same legal validity as original signatures.

IN WITNESS WHEREOF, the parties have executed this Second Amendment by their duly authorized representatives for good and valuable consideration.

---

| | | | |
|:---|:---|:---|:---|
| **EXXEL PHARMA INC.** | **EXXEL PHARMA INC.** | **THE REGENTS OF THE UNIVERSITY<br> OF CALIFORNIA** | **THE REGENTS OF THE UNIVERSITY<br> OF CALIFORNIA** |
| By: | /s/ Soren Mogelsvang | By: | /s/ Casie Kelly |
| Name: | Soren Mogelsvang, PhD | Name: | Casie Kelly, PhD |
| Title: | President and CEO | Title: | Director, Research Translation |
| Date: | 9/5/2025 | Date: | 9/5/2025 |

---

<u>**APPENDIX A**</u>

**REGENTS' PATENT RIGHTS**

**1)** <u>**UC CASE NO.** [**#**]</u> **("[INVENTION NAME]")**

**Provisional Patent Application No. [#]** entitled, **"[INVENTION NAME]",** filed **[FILING DATE]** (UC Case No. **[UC CASE #])** by Dr(s). **[INVENTOR'S NAME(S)],** and assigned to The Regents.

**U.S. Patent Application No. [#]** entitled, **"[INVENTION NAME]",** filed **[FILING DATE]** (UC Case No. **[UC CASE #])** by Dr(s) **[INVENTOR'S NAME(S)],** and assigned to The Regents.

**United States Patent No. [#]** entitled, **"[INVENTION NAME]",** filed **[FILING DATE]** (UC Case No. **[UC CASE #])** by Dr(s). **[INVENTOR'S NAME(S)],** and assigned to The Regents.

## Exhibit 21.1

**Exhibit 21.1**

Exxel Pharma Inc

List of Subsidiaries

Exxel Pharma Canada Inc., a British Columbia corporation

Exxel Pharma Australia Pty LTD, as Australian corporation

## Exhibit 23.1

**Exhibit 23.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the use, in this Registration Statement on Form S-1, of our report dated May 7, 2025, related to the consolidated financial statements of Exxel Pharma, Inc. as of December 31, 2024 and 2023, and for the years then ended, which includes an explanatory paragraph regarding substantial doubt about the Company's ability to continue as a going concern. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ *dbbmckennon*

Newport Beach, California

September 19, 2025

## Exhibit 99.1

**Exhibit 99.1**

CONSENT TO BE NAMED AS DIRECTOR NOMINEE

In connection with the filing by Exxel Pharma Inc, a Colorado corporation (the "Company") of its Registration Statement on Form S-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended, (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to be named as a nominee to the board of directors of the Company in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this Consent as an exhibit to such Registration Statement and any amendments thereto.

---

| | |
|:---|:---|
| Dated: April 23, 2025 |  |
|  | ![](ex99-1_001.jpg) |

---

## Exhibit 99.2

**Exhibit 99.2**

CONSENT TO BE NAMED AS DIRECTOR NOMINEE

In connection with the filing by Exxel Pharma Inc, a Colorado corporation (the "Company") of its Registration Statement on Form S-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended, (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to be named as a nominee to the board of directors of the Company in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this Consent as an exhibit to such Registration Statement and any amendments thereto.

---

| | |
|:---|:---|
| Dated: April 18, 2025 |  |
|  | ![](ex99-2_001.jpg) |

---

## Exhibit 99.3

**Exhibit 99.3**

CONSENT TO BE NAMED AS DIRECTOR NOMINEE

In connection with the filing by Exxel Pharma Inc, a Colorado corporation (the "Company") of its Registration Statement on Form S-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended, (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to be named as a nominee to the board of directors of the Company in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this Consent as an exhibit to such Registration Statement and any amendments thereto.

---

| | |
|:---|:---|
| Dated: April 23, 2025 |  |
|  | ![](ex99-3_001.jpg) |

---

## Exhibit 99.4

**Exhibit 99.4**

**EXXEL PHARMA, INC.**

**<u>AUDIT COMMITTEE CHARTER</u>**

**I. <u>PURPOSE</u>**

The Audit Committee shall provide assistance to the Board of Directors (the "Board") of Exxel Pharma, Inc. (the "Corporation") in fulfilling the Board's responsibility to the Corporation's shareholders relating to the Corporation's accounting, financial reporting practices, the system of internal control, the audit process, the quality and integrity of its financial reports, and the Corporation's process for monitoring compliance with laws and regulations and the Corporation's code of conduct.

The Audit Committee's responsibility is oversight. Management of the Corporation has the responsibility for the Corporation's financial statements as well as the Corporation's financial reporting process, principles, and internal controls. The independent auditor is responsible for performing an audit of the Corporation's annual financial statements, expressing an opinion as to the conformity of such annual financial statements with generally accepted accounting principles, reviewing the Corporation's quarterly financial statements and other procedures. Each member of the Audit Committee shall be entitled to rely on (i) the integrity of those persons within the Corporation and of the professionals and experts (such as the independent auditor) from which it receives information, (ii) the accuracy of the financial and other information provided to the Audit Committee by such persons, professionals or experts absent actual knowledge to the contrary and (iii) representations made by management of the independent auditor as to any non-audit services provided by the independent auditor to the Corporation.

**II. <u>AUTHORITY</u>**

The Audit Committee has the authority to conduct or authorize investigations into any matters within its scope of responsibility. Its primary duties and responsibilities are to:

● Appoint, compensate, and oversee the work of any registered public accounting firm (referred to herein as the "independent auditor") employed by the Corporation and, if necessary, replace such independent auditor;

● Resolve any disagreements between management and the auditor regarding financial reporting;

● Pre-approve all auditing and non-audit services;

● Retain independent counsel, accountants, or others to advise the Audit Committee or assist in the conduct of an investigation;

● Seek any information it requires from employees—all of whom are directed to cooperate with the Audit Committee's requests - or external parties;

● Meet with the Corporation's officers, the independent auditor, or outside counsel, as necessary; and

● Oversee that management has established and maintained processes to assure compliance by the Corporation with all applicable laws, regulations and corporate policy.

The Audit Committee intends to fulfill these responsibilities primarily by carrying out the activities enumerated in Section IV of this Charter.

**III. <u>MEMBERSHIP AND PROCEDURES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Membership and Appointment</u>

The Audit Committee shall be comprised of not fewer than three members of the Board, as shall be determined from time to time by the Board. The members of the Audit Committee shall hold office until their resignations or until their successors shall be duly elected and qualified.

All members of the Audit Committee shall be "independent," as such term is defined in Rule 10A-3(b)(1) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), in that each Audit Committee member may not, other than in his or her capacity as a director or member of any committee of the Board, (i) accept any consulting, advisory, or other compensatory fee from the Corporation or any subsidiary thereof; or (ii) be an affiliated person of the Corporation or any subsidiary thereof. In addition, all members of the Audit Committee shall qualify as "independent directors" for purposes of the listing standards of The NASDAQ Stock Market, as such standards may be changed from time to time; provided, that any non-independent director serving on the Audit Committee pursuant to the "exceptional and limited circumstances" exception available under NASDAQ rules may not serve on the Audit Committee for more than two (2) years; and provided, further, that such non-independent director may not be permitted to serve as Chairperson of the Audit Committee.

All members of the Audit Committee shall be financially literate by being familiar with basic finance and accounting practices and able to read and understand fundamental financial statements at the time of their appointment to the Audit Committee. Furthermore, at least one member of the Audit Committee shall be designated as the "financial expert" with financial sophistication as defined by having experience in finance or accounting, professional certification in accounting, or any other comparable experience or background, such as being or having been a CEO or CFO or other senior officer with financial oversight responsibilities. The Corporation shall disclose, in its annual report, whether or not, and if not, the reasons therefor, the Audit Committee includes at least one "audit committee financial expert," as defined by Item 407(d)(5)(ii) of Regulation S-K under the Securities Act of 1933, as amended (the "Securities Act").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Removal</u>

The entire Audit Committee or any individual Audit Committee member may be removed without cause by the affirmative vote of a majority of the Board. Any Audit Committee member may resign effective upon giving oral or written notice to the Chairman of the Board, the Secretary of the Corporation, or the Board (unless the notice specifies a later time for the effectiveness of such resignation). The Board may elect a successor to assume the available position on the Audit Committee when the resignation becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Chairperson</u>

A chairperson of the Audit Committee (the "Chairperson") may be designated by the Board. In the absence of such designation, the members of the Audit Committee may designate the Chairperson by majority vote of the full Audit Committee membership. The Chairperson shall determine the agenda for and the length of meetings and shall have unlimited access to management and to information relating to the Audit Committee's purposes. The Chairperson shall establish such other rules as may from time to time be necessary and proper for the conduct of the business of the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Meetings, Minutes and Reporting</u>

The Audit Committee shall meet as required but not less than once per quarter. All Audit Committee members are expected to attend each meeting, in person or via tele- or video-conference. Meeting agendas will be prepared and provided in advance to members, along with appropriate briefing materials.

The Audit Committee shall keep minutes of the proceedings of the Audit Committee. In addition to the specific matters set forth herein requiring reports by the Audit Committee to the full Board, the Audit Committee shall report such other significant matters as it deems necessary concerning its activities to the full Board. The Audit Committee may appoint a Secretary whose duties and responsibilities shall be to keep records of the proceedings of the Audit Committee for the purposes of reporting Audit Committee activities to the Board and to perform all other duties as may from time to time be assigned to him or her by the Audit Committee, or otherwise at the direction of an Audit Committee member. The Secretary need not be a member of the Audit Committee or a director and shall have no membership or voting rights by virtue of the position.

As part of its job to foster open communication, the Audit Committee should meet separately, at least annually, with management, the director of the internal auditing department and the independent auditor to discuss any matters that the Audit Committee or each of these groups believe should be discussed privately. In addition, the Audit Committee or at least its Chairperson should meet separately with the independent auditor, and management quarterly to review the Corporation's financial statements in accordance with Section IV below.

A majority of Committee members shall constitute a quorum for the transaction of business. The action of a majority of those present at a meeting at which a quorum is attained, shall be the act of the Committee. The Committee may delegate matters within its responsibility to subcommittees composed of certain of its members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Delegation</u>

The Audit Committee may, by resolution passed by a majority of the Audit Committee members, designate one or more subcommittees, each subcommittee to consist of one or more members of the Audit Committee. Any such subcommittee, to the extent provided in the resolutions of the Audit Committee and to the extent not limited by applicable law, shall have and may exercise all the powers and authority of the Audit Committee. Each subcommittee shall have such name as may be determined from time to time by resolution adopted by the Audit Committee. Each subcommittee shall keep regular minutes of its meetings and report the same to the Audit Committee or the Board when required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Authority to Retain Advisors</u>

In the course of its duties, the Audit Committee shall have the authority, at the Corporation's expense and without needing to seek approval for the retention of such advisors or consultants from the Board, to retain and terminate consultants, legal counsel, or other advisors, as the Audit Committee deems advisable, including the sole authority to approve any such advisors' fees and other retention terms.

**IV. <u>DUTIES AND RESPONSIBILITIES</u>**

The Audit Committee, in its capacity as a committee of the Board, shall be directly responsible for the appointment, retention, compensation, evaluation, oversight and, if necessary, termination of the independent auditor(s) employed by the Corporation (including resolution of disagreements between management and the auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or related work, and each independent auditor shall report directly to the Audit Committee.

The following shall be recurring duties and responsibilities of the Audit Committee in carrying out its purposes. These duties and responsibilities are set forth below as a guide to the Audit Committee, with the understanding that the Audit Committee may alter or supplement them as appropriate under the circumstances, to the extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Document Review & Reporting Process</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Review and reassess, at least annually, the adequacy of this Charter, make recommendations to the Board and request approval for proposed changes, as conditions dictate, to update this Charter, and ensure appropriate disclosure as may be required by law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Review with management and the independent auditor the Corporation's annual financial statements and Form 10-K prior to the filing of the Form 10-K or prior to the release of earnings, including a discussion with the independent auditor of the matters required to be discussed under the applicable Statements of Auditing Standards ("SAS").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Review with management and the independent auditor each Form 10-Q prior to its filing or prior to the release of earnings, including a discussion with the independent auditor of the matters required to be discussed under SAS. The Chairperson of the Audit Committee may represent the entire Audit Committee for purposes of this review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Review with management and the independent auditor the effect of regulatory and accounting initiatives that may affect the Corporation, as well as the effect of any off- balance sheet structures and transactions on the Corporation's financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Regularly report to the Board about Audit Committee activities, issues, and related recommendations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Provide an open avenue of communication between the internal auditing department, the independent auditor, and the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Report annually to the shareholders, describing the Audit Committee's composition, responsibilities and how they were discharged, and any other information required by applicable rules and regulations, including approval of non-audit services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Review any other reports the Corporation issues that relate to Audit Committee responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Perform other activities related to this Charter as requested by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Institute and oversee special investigations as needed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Confirm annually that all responsibilities outlined in this Charter have been carried out.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Evaluate the Audit Committee's and each member's performance and qualifications under applicable rules and regulations on a regular basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Financial Reporting Process</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. In consultation with the independent auditor and the chief audit executive, review the integrity of the Corporation's financial reporting processes and the coordination of the internal audit function with the independent auditor. The Audit Committee shall report regularly to and review with the full Board any issues that arise with respect to the quality or integrity of the Corporation's financial statements, compliance with legal or regulatory requirements, the performance and independence of the independent auditor, or the performance of the internal audit function.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Consider and approve, if appropriate, changes to the Corporation's auditing and accounting principles and practices as suggested by the independent auditor, management, or the internal auditing department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Ensure that there exist regular systems of reporting to the Audit Committee by each of management, the independent auditor and the chief audit executive regarding any significant judgments made in management's preparation of the financial statements and any significant difficulties encountered during the course of the review or audit, including any restrictions on the scope of work or access to required information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Regularly review any significant disagreements among management and the independent auditor or the internal auditing department in connection with the preparation of the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Ensure and oversee timely reports from the independent auditor to the Audit Committee of (i) all critical accounting policies and practices; (ii) all alternative treatments of financial information within generally accepted accounting principles that have been discussed with management officials of the Corporation, ramifications of the use of such alternative disclosures and treatments, and the treatment preferred by the independent auditor; and (iii) other material written communications between the independent auditor and the management of the Corporation, such as any management letter or schedule of unadjusted differences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Financial Statements</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Review significant accounting and reporting issues, including complex or unusual transactions (such as off-balance sheet structures, if any) and highly judgmental areas, and recent professional and regulatory pronouncements, and understand their impact on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Review with management and the independent auditor the results of the audit, including any difficulties encountered and any significant changes in the audit plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Review the annual financial statements, and consider whether they are complete, consistent with information known to the Audit Committee members, and reflect appropriate accounting principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Review other sections of the annual report and related regulatory filings before release and consider the accuracy and completeness of the information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Review with management and the independent auditor all matters required to be communicated to the Audit Committee under generally accepted auditing standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Understand how management and the internal auditing department prepare interim financial statements, and the degree of involvement of the independent auditor in the review process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Review interim financial statements with management and the independent auditor before filing with regulators and consider whether financial statements are complete and consistent with the information known to the Audit Committee members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Internal Controls</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Discuss with management and the independent auditor policies and programs with respect to risk management and risk assessment and inquire about risks or exposures facing the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Understand how the internal auditing department has implemented and maintains the Corporation's internal controls and understand the process for the independent auditor's review of the internal controls and obtain reports on significant findings and recommendations regarding effectiveness of the controls, together with management's responses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Consider and review with the independent auditor the effectiveness of the Corporation's internal control system, including information technology security and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Review management's annual internal control report which acknowledges management's responsibility for establishing and maintaining an adequate internal control structure and procedures for financial reporting; and contains an assessment of the effectiveness of the internal control structure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Internal Audit</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Review with management and the chief audit executive the charter, plans, activities, staffing, and organizational structure of the internal audit function.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Ensure there are no unjustified restrictions or limitations, and review and concur in the appointment, replacement, or dismissal of the chief audit executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Review the effectiveness of the internal audit function, including compliance with The Institute of Internal Auditors' Standards for the Professional Practice of Internal Auditing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. On a regular basis, meet separately with the chief audit executive to discuss any matters that the Audit Committee or the chief audit executive believes should be discussed privately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Independent Auditor</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Review the independent auditor's proposed scope and approach for the audit, including coordination with internal audit function.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Review the performance of the independent auditor, and exercise final approval on the appointment or discharge of the independent auditor. The Audit Committee has the sole authority and responsibility to select, evaluate, and where appropriate, replace the independent auditor. The independent auditor is ultimately accountable to the Audit Committee for such auditor's review of the financial statements and internal controls of the Corporation. The Audit Committee shall also exercise final approval on the compensation of the independent auditor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Approve in advance all audit services and all permitted non-audit services, except where such services are determined to be de minimis under the Exchange Act. The Audit Committee may delegate, to one or more designated members of the Audit Committee, the authority to grant such pre-approvals. The decisions of any member to whom such authority is delegated shall be presented to the full Audit Committee at each of its scheduled meetings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Review and ensure the independence of the auditor by:

● receiving from, and reviewing and discussing with, the auditor, on a periodic basis, a formal written statement delineating all relationships between the auditor and the Corporation consistent with the applicable requirements of the Public Company Accounting Oversight Board;

● reviewing, and actively discussing with the Board, if necessary, and the auditor, on a periodic basis, any disclosed relationships or services, including non-audit services, between the auditor and the Corporation or any other disclosed relationships or services that may impact the objectivity and independence of the auditor;

● recommending, if necessary, that the Board take appropriate action to satisfy itself of the auditor's independence; and

● ensuring that the lead or coordinating audit partner having primary responsibility for the audit, or the audit partner responsible for reviewing the audit does not perform audit services for the Corporation for more than five consecutive fiscal years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Set clear policies for the hiring by the Corporation of employees or former employees of the Corporation's independent auditor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. On a regular basis, meet separately with the independent auditor to discuss any matters that the Audit Committee or independent auditor believes should be discussed privately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. <u>Approval of Related Person Transactions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Review and approve, prior to the Corporation's entry into any such transactions, all transactions in which the Corporation is or will be a participant, which would be reportable by the Corporation under Item 404 of Regulation S-K promulgated under the Securities Act as a result of any of the following persons having or expected to have a direct or indirect material interest (a "Related Person Transaction"):

● executive officers of the Corporation;

● members of the Board;

● beneficial holders of more than 5% of the Corporation's securities;

● immediate family members (i.e. "Immediate family member" means any child, stepchild, parent, stepparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and any person (other than a tenant or employee) sharing the household with the executive officer, director or 5% beneficial owner.

● of any of the foregoing persons; and

● any other persons whom the Board determines may be considered to be related persons as defined by Item 404 of Regulation S-K promulgated under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In reviewing and approving such transactions, the Audit Committee shall obtain, or shall direct management to obtain on its behalf, all information that the Audit Committee believes to be relevant and important to a review of the transaction prior to its approval. Following receipt of the necessary information, a discussion shall be held of the relevant factors if deemed to be necessary by the Audit Committee prior to approval. If a discussion is not deemed to be necessary, approval may be given by written consent of the Audit Committee. This approval authority may also be delegated to the Chairperson of the Audit Committee in some circumstances. No Related Person Transaction shall be entered into prior to the completion of these procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Audit Committee or the Chairperson, as the case may be, shall approve only those Related Person Transactions that are determined to be in, or not inconsistent with, the best interests of the Corporation and its stockholders, taking into account all available facts and circumstances as the Audit Committee or the Chairperson determines in good faith to be necessary in accordance with principles of Delaware law generally applicable to directors of a Delaware corporation. No member of the Audit Committee shall participate in any review, consideration or approval of any Related Person Transaction with respect to which the member or any of his or her immediate family members has an interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Audit Committee shall adopt any further policies and procedures relating to the approval of Related Person Transactions that it deems necessary or advisable from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. <u>Legal Compliance/General</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Review, with the Corporation's counsel, any legal or regulatory matter that could have a significant impact on the Corporation's financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Review and approve the Corporation's investment policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Review the adequacy of the Corporation's insurance coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Review the status of any material tax audits and proceedings, the Corporation's tax strategy and other material tax matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Maintain minutes or other records of meetings and activities of the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. When deemed necessary by the members of the Audit Committee, retain independent legal, accounting or other advisors or consultants to advise and assist the Audit Committee in carrying out its duties, without needing to seek approval for the retention of such advisors or consultants from the Board. The Audit Committee shall determine the appropriate compensation for any advisors retained by the Audit Committee. The Audit Committee may request any officer or employee of the Corporation or the Corporation's outside counsel or independent auditor to attend a meeting of the Audit Committee or to meet with any members of, or consultants to, the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Establish procedures for (i) the receipt, retention, and treatment of complaints received by the Corporation from external parties regarding accounting, internal accounting controls, or auditing matters; and (ii) the confidential, anonymous submission by employees of the Corporation of concerns regarding questionable accounting or auditing matters, whether through the whistleblower hotline or other reporting channels. Ensure such procedures maintain the confidentiality and anonymity of persons reporting violations or suspected violations and ensure that the Corporation does not take retaliatory actions against those reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Review the effectiveness of the system for monitoring compliance with laws and regulations and the results of management's investigation and follow-up (including disciplinary action) of any instances of noncompliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Review the findings of any examinations by regulatory agencies, and any auditor observations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Review the process for communicating the code of conduct to the Corporation's personnel, and for monitoring compliance therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Obtain regular updates from management and the Corporation's legal counsel regarding compliance matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Review with management the policies and procedures with respect to officers' expense accounts and perquisites.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Perform any other activities consistent with this Charter, the Corporation's by-laws, and governing law, as the Audit Committee or the Board deems necessary or appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. <u>COMPENSATION</u>**

Audit Committee members shall be compensated by the Corporation solely in the form of directors' fees. Audit Committee members may, however, receive greater fees than those received for Board service by other Board members, in light of their heightened responsibilities to the Corporation.

## Exhibit 99.5

**Exhibit 99.5**

**EXXEL PHARMA, INC.**

**<u>COMPENSATION COMMITTEE CHARTER</u>**

**I.**  **<u>PURPOSE</u>** 

The purpose of the Compensation Committee (the "Committee") of the Board of Directors (the "Board") of Exxel Pharma, Inc. (the "Corporation") is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. To discharge the responsibilities of the Board relating to compensation of the Corporation's directors, executive officers and key employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. To assist the Board in establishing appropriate incentive compensation and equity-based plans and to administer such plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. To oversee the annual process of evaluation of the performance of the Corporation's management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. To perform such other duties and responsibilities as enumerated in and consistent with this Charter.

**II.**  **<u>MEMBERSHIP AND PROCEDURES</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. <u>Membership and Appointment</u>

The Committee shall be comprised of not fewer than two members of the Board, as shall be determined from time to time by the Board. The members of the Committee shall be elected by the Board, or the committee thereof responsible for nominations of directors, at the annual organizational meeting of the Board or such committee, as applicable, and shall hold office until their resignation or removal or until their successors shall be duly elected and qualified.

All members of the Committee shall qualify as "independent directors" for purposes of the listing standards of The NASDAQ Stock Market, as such standards may be changed from time to time. To the extent that the Board deems practicable and advisable, all members of the Committee shall also qualify as "non-employee directors" for purposes of Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as "outside directors" for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended, as such standards and definitions may be revised or amended from time to time; provided, however, that notwithstanding anything contained herein to the contrary, if not all members of the Committee qualify as non- employee directors, any grant of equity compensation to directors and officers (as defined by Rule 16a-1(f) of the Exchange Act) shall be made by the full Board or a subcommittee of the Committee comprised of at least two members who qualify as non-employee directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. <u>Removal</u>

The entire Committee or any individual Committee member may be removed without cause by the affirmative vote of a majority of the Board. Any Committee member may resign effective upon giving oral or written notice to the Chairman of the Board, the Secretary of the Corporation, or the Board (unless the notice specifies a later time for the effectiveness of such resignation). The Board may elect a successor to assume the available position on the Committee when the resignation becomes effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. <u>Chairperson</u>

A chairperson of the Committee (the "Chairperson") may be designated by the Board. In the absence of such designation, the members of the Committee may designate the Chairperson by majority vote of the full Committee membership. The Chairperson shall determine the agenda for and the length of meetings and shall have unlimited access to management and to information relating to the Committee's purposes. The Chairperson shall establish such other rules as may from time to time be necessary and proper for the conduct of the business of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. <u>Meetings, Minutes and Reporting</u>

The Committee shall meet at least two times per year and at such other times as it deems necessary to carry out its responsibilities. All Committee members are expected to attend each meeting, in person or via tele- or video-conference.

The Committee shall keep full and complete minutes of the proceedings of the Committee. In addition to the specific matters set forth herein requiring reports by the Committee to the full Board, the Committee shall report such other significant matters as it deems necessary concerning its activities to the full Board. The Committee may appoint a Secretary whose duties and responsibilities shall be to keep records of the proceedings of the Committee for the purposes of reporting Committee activities to the Board and to perform all other duties as may from time to time be assigned to him or her by the Committee, or otherwise at the direction of a Committee member. The Secretary need not be a member of the Committee or a director and shall have no membership or voting rights by virtue of the position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. <u>Delegation & Meetings</u>

The Committee may, by resolution passed by a majority of the Committee members, designate one or more subcommittees, each subcommittee to consist of one or more members of the Committee. Any such subcommittee, to the extent provided in the resolutions of the Committee and to the extent not limited by applicable law, shall have and may exercise all the powers and authority of the Committee. Each subcommittee shall have such name as may be determined from time to time by resolution adopted by the Committee. Each subcommittee shall keep regular minutes of its meetings and report the same to the Committee or the Board when required.

A majority of Committee members shall constitute a quorum for the transaction of business. The action of a majority of those present at a meeting at which a quorum is attained, shall be the act of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. <u>Authority to Retain Advisors</u>

In the course of its duties, the Committee shall have the sole authority, at the Corporation's expense, to retain and terminate compensation consultants, legal counsel, or other advisors, as the Committee deems advisable, including the sole authority to approve any such advisors' fees and other retention terms.

**III.** **DUTIES AND RESPONSIBILITIES** 

The following shall be recurring duties and responsibilities of the Committee in carrying out its purposes. These duties and responsibilities are set forth below as a guide to the Committee, with the understanding that the Committee may alter or supplement them as appropriate under the circumstances, to the extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Establish a compensation policy for executives designed to (i) enhance the profitability of the Corporation and increase stockholder value, (ii) reward executive officers for their contribution to the Corporation's growth and profitability, (iii) recognize individual initiative, leadership, achievement, and other contributions and (iv) provide competitive compensation that will attract and retain qualified executives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Subject to variation where appropriate, the compensation policy for executive officers and other key employees shall include (i) base salary, which shall be set on an annual or other periodic basis, (ii) annual or other time or project based incentive compensation, which shall be awarded for the achievement of predetermined financial, project, research or other designated objectives of the Corporation as a whole and of the executive officers and key employees individually and (iii) long-term incentive compensation in the forms of equity participation and other awards with the goal of aligning, where appropriate, the long-term interests of executive officers and other key employees with those of the Corporation's stockholders and otherwise encouraging the achievement of superior results over an extended time period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Review competitive practices and trends to determine the adequacy of the executive compensation program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Review and consider participation and eligibility in the various components of the total executive compensation package.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Annually review and approve corporate goals and objectives relevant to CEO compensation, evaluate the CEO's performance in light of those goals and objectives, and recommend to the Board the CEO's compensation levels based on this evaluation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Annually review and make recommendations to the Board with respect to compensation of directors, executive officers of the Corporation other than the CEO and key employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Approve employment contracts, severance arrangements, change in control provisions and other agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Approve and administer cash incentives and deferred compensation plans for executives (including any modification to such plans) and oversight of performance objectives and funding for executive incentive plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Approve and oversee reimbursement policies for directors, executive officers and key employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Review matters relating to management succession, including, but not limited to, compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Approve and oversee compensation programs involving the use of the Corporation's stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. If the Corporation is required by applicable Securities and Exchange Commission ("SEC") rules to include a Compensation Discussion and Analysis ("CD&A") in its SEC filings, review the CD&A prepared by management, discuss the CD&A with management and, based on such review and discussions, recommend to the Board that the CD&A be included in the Corporation's Annual Report on Form 10-K, proxy statement, or any other applicable filing as required by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Review all compensation policies and practices for all employees to determine whether such policies and practices create risks that are reasonably likely to have a material adverse effect on the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Periodically review executive supplementary benefits and, as appropriate, the organization's retirement, benefit, and special compensation programs involving significant cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Form and delegate authority to subcommittees when appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Make regular reports to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Annually review and reassess the adequacy of this Charter and recommend any proposed changes to the Board for approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Annually evaluate its own performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. Oversee the annual process of performance evaluations of the Corporation's management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Fulfill such other duties and responsibilities as may be assigned to the Committee, from time to time, by the Board and/or the Chairman of the Board.

## Exhibit 99.6

**Exhibit 99.6**

**EXXEL PHARMA, INC.**

**<u>CLAWBACK POLICY</u>**

**I.**  **<u>PURPOSE</u>** 

This Clawback Policy (the "Policy") is established by Exxel Pharma, Inc. (the "Company") to comply with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, SEC Rule 10D-1, and applicable stock exchange listing standards. The Policy provides for the recovery of erroneously awarded incentive-based compensation from current and former executive officers in the event of an accounting restatement due to material noncompliance with financial reporting requirements under the securities laws.

**II.**  **<u>APPLICABILITY</u>** 

This Policy applies to all current and former executive officers of the Company, as defined under Rule 10D-1 of the Securities Exchange Act of 1934, as amended, and includes any employee designated as an "officer" by the Board of Directors (the "Board").

**III.**  **<u>TRIGGERING EVENTS FOR CLAWBACK</u>** 

The Company shall recover erroneously awarded incentive-based compensation when: (a) the Company is required to prepare an accounting restatement due to material noncompliance with financial reporting requirements, (b) the restatement results from any error, misconduct, or other factors leading to the misstatement of financial results and (c) the affected incentive-based compensation was awarded, earned, or vested within the three (3) completed fiscal years preceding the date the Company is required to prepare the restatement.

**iv.**  **<u>Recovery of Incentive-Based Compensation</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall recover from each covered executive officer any excess incentive-based compensation received based on the erroneous financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The amount subject to clawback shall be the difference between the incentive-based compensation that would have been received based on the restated financials and the amount actually received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Recovery shall be made regardless of whether the executive officer was responsible for the misstatement or engaged in misconduct.

**V.**  **<u>Methods of Recovery</u>** 

The Company may seek recovery through various means, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Requiring repayment of the excess amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Offsetting against future incentive-based compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Cancellation of unvested or outstanding equity awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any other method permitted by law and approved by the Board.

**VII.**  **<u>No Indemnification</u>** 

The Company shall not indemnify or reimburse any executive officer for amounts recovered under this Policy.

**VII.**  **<u>Administration and Enforcement</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board or its designated committee (e.g., the Compensation Committee) shall oversee the implementation and enforcement of this Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Board has the sole discretion to interpret and apply this Policy, including determining the amounts to be recovered and the method of recovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All determinations made pursuant to this Policy shall be final, binding, and non-appealable.

**VIII.**  **<u>Amendments and Waivers</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board may amend this Policy as required to comply with applicable laws, SEC rules, and stock exchange
listing requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No waiver of this Policy shall be granted except as required by law or approved in writing by the Board.

**IX.**  **<u>Effective Date</u>** 

This Policy shall be effective as of ____________________ and shall apply to all incentive-based compensation awarded, earned, or vested on or after such date.

**X.**  **<u>Disclosure and Compliance</u>** 

The Company shall disclose this Policy in accordance with SEC rules and regulations and ensure compliance with applicable listing standards.

## Exhibit 99.7

**Exhibit 99.7**

**EXXEL PHARMA, INC.**

**Whistleblower Policy**

(Effective _________, 2025)

The purpose of the Whistleblower Policy (the "Policy) is to make employees of Exxel Pharma, Inc. and its subsidiaries (the "Company") aware of the importance of reporting to the Company any suspected violations of criminal law or securities law, acts of fraud against shareholders or questionable auditing or accounting matters. As a public company, the Company prohibits any type of corporate fraud and is committed to protecting employees from adverse employment actions as a result of their whistleblowing activities. This Policy also provides employees with the proper channels to report any suspected violations of criminal law or securities law, acts of fraud against shareholders or questionable auditing or accounting matters. The Company requires that all employees comply with this Policy.

Examples of violations include, but are not limited to, a failure to comply with the Company's accounting practices or internal controls, a violation of federal or state securities laws, laws regarding mail, wire or bank fraud, rules, and regulations of the Securities and Exchange Commission or laws relating to fraud against shareholders, the commission of a crime, a misapplication of generally accepted accounting principles and any other questionable or irregular accounting or auditing practice.

Any employee who becomes aware of information concerning a violation or possible violation and who reasonably believes that such a violation has occurred should promptly report such information. Confidentiality will be maintained in accordance with the law and the matter shall be fully investigated. Any report must include precise and relevant facts (i.e. dates, places, persons/witnesses, numbers, etc.) sufficient for a reasonable investigation to be conducted. The following mechanisms have been established to allow for reporting:

Sending an email to corpcompliance1@exxelpharma.com

and to the attention of _________________, Audit Committee member

Any employee who makes a report of a matter which s/he reasonably believes constitutes a violation of a state or federal criminal statute by the Company, or its agents acting on behalf of the Company, to a federal law enforcement officer or the appropriate officer of the Company identified above, will not be fired, demoted or otherwise harmed for, or because of, the reporting of the suspected violation, regardless of whether the suspected violation involves the employee, the employee's supervisor or senior management of the Company.

From time to time, this Policy may need to be amended due to changes in the law, the Company's operations, or changes in the requirements of the stock exchange on which the Company's securities are traded. All changes to this Policy must be approved by the Audit Committee. All employees will receive notice when this Policy is changed. The current version of this Policy will be available on the Company's intranet site or is available by contacting the Company's Chief Financial Officer.

## Ex-Filing

?xml version='1.0' encoding='ASCII'? Filing Fee Exhibit

**Ex-Filing Fees**

**CALCULATION OF FILING FEE TABLES**

**S-1**

**Exxel Pharma Inc**

**Table 1: Newly Registered and Carry Forward Securities**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Line Item Type** | **Security Type** | **Security Class Title** | **Notes** | **Fee Calculation<br> Rule** | **Amount Registered** | **Proposed Maximum Offering<br> Price Per Unit** | **Maximum Aggregate Offering Price** | **Fee Rate** | **Amount of Registration Fee** |
| *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* | *Newly Registered Securities* |
| Fees to be Paid | Equity | Secondary Offering by Selling Shareholders Common Stock, no par | (1) | 457(a) | 476149 | $0.74 | $352350.26 | 0.0001531 | $53.94 |
| Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: | $352350.26 |  | 53.94 |
| Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: | Total Fees Previously Paid: |  |  | 0.00 |
| Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: | Total Fee Offsets: |  |  | 0.00 |
| Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: | Net Fee Due: |  |  | $53.94 |

---

**__________________________________________ Offering Note(s)**

&nbsp;&nbsp;&nbsp;&nbsp;(1) The offering reflects the number of shares of common stock that the selling shareholders may offer for resale from time to time pursuant to this registration statement. Pursuant to Rule 416 under the Securities Act of 1933, this registration statement also covers any additional number of shares of common stock issuable upon stock splits, stock dividends, dividends or other distributions, recapitalizations or similar events with respect to the shares of common stock being registered pursuant to this registration statement. The Proposed Maximum Offering Price per share and the Estimated Proposed Maximum Aggregate Offering Price were based off of an assumed offering price of $0.74 per share, or the most recent price that the same class of securities were sold to investors for cash in accordance with Rule 457.