Document:

Lexaria Bioscience Corp.: Exhibit 10.7 - Filed by newsfilecorp.com

	
    	National Research Council 	Conseil national de recherches 	Master Collaborative 
	Canada
    	Canada
    	Research Agreement 

	BETWEEN: 	NATIONAL RESEARCH COUNCIL OF CANADA
  
	  	whose head office address is:

	 	1200 Montreal Road 	  
	 	Ottawa, Ontario K1A 0R6 	(called “NRC”) 

	AND: 	LEXARIA CANPHARM CORP. 
	  	a corporation under the laws of Canada 
	  	whose address is: 

	 	156 Valleyview Road 	  
	 	Kelowna, British Columbia V1X 3M4 	(called the “Collaborator”)
  

(Collectively known as the “Parties”) 

WHEREAS the Parties have common interests in the development of
specialty and functional ingredients for differentiated consumer markets
involving functional food, nutrition, and health and wellness applications; 

WHEREAS the Parties share expertise in fatty acid chemistry,
product formulation and functional ingredient characterization, most notably
cannabinoids and related active ingredients;

WHEREAS the Parties recognize that this common interest creates
a foundation for a strategic collaborative R&D relationship; and 

WHEREAS the Parties wish to enter into a Master Collaborative
Research Agreement (the “Agreement”) to establish the terms and
conditions which will govern the collaboration. 

NOW THEREFORE, in consideration of the mutual covenants
hereunder, the Parties agree as follows: 

	1. 	
      This Agreement concerns scientific research and
      development, called the "Collaboration", described as: Joint
      investigation of technical challenges and new opportunities associated
      with lipophilic active ingredient compositions. The Collaboration
      includes:

	 	(a) 	
      Development of specific Projects to explore solutions for
      the technical challenges surrounding commercialization of LAA-BEA
      formulations, both those common to the industry as a whole and those
      specific to Collaborator’s proprietary processes;

	 	 	 
	 	(b) 	
      Improvement of expertise and capacity in the area of
      ingredient formulation for improved function of cannabinoids and related
      high value bioactives; and

	 	 	 
	 	(c) 	
      Identification and exploration of innovative new
      technologies and applications of mutual interest to NRC and
      Collaborator.

	2. 	
      The Collaborator chooses to work with NRC because of
      NRC's unique capabilities, and does not expect NRC to perform work that
      would be in competition with Canadian firms. The name of NRC, or any
      reference to NRC, shall not be used in promotional activities of the
      Collaborator without NRC's prior written consent.

	 	 
	3. 	
      The Parties will contribute to the Collaboration by the
      performance of specific R&D projects (“Projects”) developed in
      line with the attached “ANNEX PO: Project Objectives and Overview”
      or by payments, or both.

	 	 
	4. 	
      Both Parties will contribute to the development of
      Projects based on mutual interest and objectives. Specific terms of each
      Project will be negotiated on a per Project basis; each Project shall be
      defined in a Project Annex (“PA”). Each PA will be in the form
      attached as Appendix 1 (“Project Annex”) and Appendix 2 (“Statement of
      Work and Deliverables”) and will be approved jointly by the Parties. Each
      PA is hereby incorporated herein by reference and made a part of this
      Agreement once duly signed by an authorized representative of each Party.
      A PA can only be amended by a written amendment signed by an authorized
      representative of each Party.

	 	 
	5. 	
      This Agreement is subject to the terms in the attached
      “Annex GC: General Conditions”.

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    	Canada
    	Research Agreement 

	6. 	
      The total price of the Collaboration is not to exceed
      $250,000 plus applicable taxes.

	 	 
	7. 	
      The Collaborator shall pay to NRC in cash a total sum not
      to exceed $125,000 to be paid in accordance with individual PA. The
      Collaborator shall also pay applicable taxes. *

	 	 
	8. 	
      NRC shall make a co-investment to the Collaboration by
      performing, at its own cost, work described in the Statement of Work and
      Deliverables of applicable PA at a total value not to exceed
      $125,000.

	 	 
	9. 	
      This Agreement shall become effective on the date the
      Agreement is signed by both Parties and expires on June 29, 2018
      (“Expiry Date”) unless terminated earlier. This Agreement shall remain
      in force relative to any PA in progress at the Expiry Date until those PA
      are completed or otherwise terminated. The following terms and conditions
      shall survive the termination or expiration of this
  Agreement:

	 	(a) 	
      payment obligations which accrued while this Agreement
      was in force, or upon its termination, and the interest provisions of this
      Agreement;

	 	 	 
	 	(b) 	
      the terms and conditions with respect to Intellectual
      Property which are found in the attached Annex IU entitled
      “Annex IU: Intellectual Property” that forms part of this
      Agreement; and

	 	 	 
	 	(c) 	
      terms and conditions with respect to exclusion of certain
      liability, limited warranties, and dispute resolution, all of which are
      found in the attached General Conditions that form part of this
      Agreement.

	10. 	
      This Agreement shall be interpreted according to the laws
      of the Province of Ontario and the laws of Canada in force there. Subject
      to Article GC-15, for any litigation concerning this Agreement, including
      litigation arising from arbitration, the parties hereby irrevocably and
      unconditionally attorn to the exclusive jurisdiction of the Courts of the
      Province of Ontario, and all courts competent to hear appeals therefrom.
      The parties expressly exclude any conflict of laws rules or principles
      that might refer disputes under this Agreement to the laws of another
      jurisdiction.

	 	 
	11. 	
      This Agreement may be executed in one or more
      counterparts and by the different parties hereto in separate counterparts,
      each of which when executed shall be deemed to be an original but all of
      which taken together shall constitute one valid and binding Agreement. A
      facsimile copy or portable document format (PDF) copy of an executed
      counterpart signature page will be as valid as an originally executed
      counterpart for purposes of signing this
Agreement.

SIGNED by the Collaborator in duplicate at
Kelowna, British Columbia, Canada 

	 	 	 	LEXARIA CANPHARMCORP. 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Date: 	 	 	 	Per: 	
		(dd-month-yyyy) 	 	 	 	John Docherty, President 

SIGNED by NRC in duplicate at Ottawa, Ontario,
Canada 

	 	 	 	NATIONAL RESEARCH COUNCIL OF
      CANADA 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Date: 	 	 	 	Per: 	
		(dd-month-yyyy) 	 	 	 	Dr. Roman Szumski, Vice-President, Life
      Sciences 

________________________________

	* 	
      Sales Tax (GST or similar) : NRC registration number 121
      491 807 

	 	Quebec Sales Tax : NRC registration number 1006 178
    088

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    	National Research Council 	Conseil national de recherches 	Master Collaborative 
	Canada
    	Canada
    	Research Agreement 

ANNEX GC: GENERAL CONDITIONS 

	GC-2 	
      INTERPRETATION OF AGREEMENT: This
      Agreement supersedes all prior communications, negotiations and agreements
      concerning the Collaboration. No amendment or waiver of terms in this
      Agreement, including the annexes thereto, is effective unless it is in
      writing, signed by all Parties. In case of inconsistency between this
      Agreement and any PA, this Agreement prevails. No forbearance by a Party
      implies any broader, continuing, or future forbearance. If a court finds
      part of this Agreement invalid, the remainder is valid in accordance with
      its most reasonable interpretation. This Agreement does not create a
      relationship of agency, employment, partnership, or joint venture.
  

	  	
       

	GC-3 	
      ASSIGNMENT: This Agreement, and any
      licence granted pursuant to it, is personal to the Parties, so that
      neither its assignment, nor its assumption by a corporation formed by
      amalgamation of a Party with a third party, is valid except by written
      consent of all Parties, which consent shall not be unreasonably withheld.
      

	  	
       

	GC-4 	
      EXCLUSION OF CERTAIN LIABILITY: No
      Party shall be liable for failure or delay in performance caused by
      circumstances beyond its reasonable control, or for incorrectness or
      inaccuracy of data supplied, advice given, or opinions expressed. No claim
      may be made for indirect, consequential, or incidental damages. 

	  	
       

	GC-5 	
      LIMITED WARRANTIES: Each Party
      warrants that it will conduct the Collaboration work in a professional
      manner conforming to generally accepted practices for scientific research
      and development. However, because of the nature of such work, no specific
      result is promised. 

	 	5.1 	
      No Party warrants that technical information conveyed in
      the deliverables does not infringe the rights of third parties under a
      present or future patent.

	 	 	 
	 	5.2 	
      No Party warrants the validity of patents under which
      rights may be granted pursuant to this Agreement, or makes any
      representation as to the scope of patents or that those inventions may be
      exploited without infringing the rights of
others.

	GC-6 	
      VISITS: Subject to reasonable notice
      of the number and names and status of personnel, including employees,
      students and other persons working on behalf of another Party and other
      requirements under this Agreement, a Party may, in its discretion, permit
      visits to its premises by one or more of another Party's personnel, if
      relevant to the Collaboration and not likely to interfere with regular
      operations. 

	  	  
	GC-7 	
      TERMINATION FOR COST OVERRUNS: Following
      notification by one Party that costs expressed as estimates for a specific
      PA will be exceeded by more than 10%, if the Parties do not amend the PA
      within sixty (60) days, then upon the expiration of that period the
      specific PA shall be terminated. Upon such termination:

	 	(a) 	
      each Party shall pay the other Party any costs pre-dating
      the effective date of the termination that were intended to be
      reimbursable under the PA;

	 	 	 
	 	(b) 	
      any licence or option granted under the PA to any Party
      is also terminated;

	 	 	 
	 	(c) 	
      confidentiality obligations of each Party regarding the
      information that is part of its Arising IP under the PA are terminated,
      both Parties continuing to be bound by all other confidentiality
      obligations under this Agreement.

	GC-7 	
      TERMINATION FOR CAUSE: This
      Agreement or any PA under this Agreement may be terminated for cause as
      follows: 

	 	(a) 	
      by either Party if the other Party defaults in
      performance of any obligation under this Agreement or any PA and fails to
      cure the default within thirty (30) days after receipt of written notice
      of default, and termination will take effect at the expiration of the cure
      period;

	 	 	 
	 	(b) 	
      by NRC forthwith if the other Party becomes bankrupt or
      has a receiver appointed to continue its operations, or passes a
      resolution for winding up;

	 	 	 
	 	(c) 	
      by NRC forthwith if the other Party has made a false or
      misleading representation or warranty;

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    	Canada
    	Research Agreement 

	 	(d) 	
      upon termination for cause:

	 	(i) 	
      in the case of termination of this Agreement, all PA
      shall terminate concurrently;

	 	 	 
	 	(ii) 	
      each Party shall pay the other Party any costs pre-dating
      the effective date of the termination that were intended to be
      reimbursable under this Agreement or a PA;

	 	 	 
	 	(iii) 	
      the defaulting Party shall also pay the terminating Party
      any incurred costs that result directly from the cancellation of
      obligations and from uncancellable obligations;

	 	 	 
	 	(iv) 	
      any licence or option granted under this Agreement or a
      PA to the defaulting Party is terminated;

	 	 	 
	 	(v) 	
      confidentiality obligations of each Party regarding the
      information that is part of its Arising IP are terminated, both Parties
      continuing to be bound by all other confidentiality obligations under this
      Agreement or a PA.

	GC-8 	
      EARLY TERMINATION OF A PA: Early
      termination of a PA by either Party shall not affect the ongoing validity
      of this Agreement or any other PA hereunder. 

	  	
       

	GC-9 	
      NOTICES: Any notice related to this
      Agreement, including a notice of change of address, must be sent to the
      addresses stated at the beginning of this Agreement, either by registered
      mail, which is deemed to be effective notice five days after mailing, or
      by courier or facsimile, which are effective notices only when
      acknowledged by a courier's delivery receipt or by a specific
      non-automatic return facsimile transmission. 

	  	
       

	GC-10 	
      CONDITIONS: The other Party agrees
      that if there is any research work in the Collaboration involving human
      subjects, human tissues, laboratory animals, or animal tissues, it shall
      not proceed without prior approval of NRC’s Human Subjects Research Ethics
      Committee or Animal Care Committee and shall not be conducted in
      contravention of the respective Committee’s conditions of approval.
  

	  	
       

	GC-11 	
      NO BRIBES: The other Party represents and
      warrants to NRC that no bribe, gift, reward, benefit or other inducement
      has been or will be paid, given, promised or offered directly or
      indirectly to any federal government official or employee or to a member
      of the family of such person, with a view to influencing the entry into
      this Agreement or the administration of this Agreement. 

	  	
       

	GC-12 	
      NO DIRECT BENEFIT: The other Party
      represents and warrants to NRC that the following individuals shall not
      derive a direct benefit from this Agreement: 

	 	(a) 	
      a current or former public office holder who is not in
      compliance with the Conflict of Interest Act, 2006, c.9,
  s.2;

	 	 	 
	 	(b) 	
      a current or former member of the House of Commons who is
      not in compliance with the Conflict of Interest Code for Members of the
      House of Commons;

	 	 	 
	 	(c) 	
      a current or former public servant who is not in
      compliance with the Values and Ethics Code for the Public
      Service;or

	 	 	 
	 	(d) 	
      a current or former NRC employee who is not in compliance
      with NRC’s Conflict of Interest Policy.

	GC-13 	NO MISREPRESENTATION: The
      other Party represents and warrants to NRC that it, including its
      Directors, officers, employees or agents, has made no
  material misrepresentation, whether by omission or commission, with a view to the obtaining of this Agreement.  
	  	  
	GC-14 	NO CONTINGENCY FEE: The
      other Party represents and warrants to NRC that it has not directly or
      indirectly paid or agreed to pay and that it will not
      directly or indirectly pay a contingency fee for the solicitation,
      negotiation or obtaining of this Agreement to any person,
      other than an employee acting in the normal course of the employee’s duties. In this section,
      “contingency fee” means any payment or other compensation that depends or is calculated based on the degree of success in soliciting,
negotiating or obtaining this Agreement and “person” includes any individual who
is required to file a return with the registrar pursuant to the Lobbying Act, R.S.C.,1985,c. 44 (4th Supplement) as amended.

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    	Research Agreement 

	GC-15 	
      PERSONNEL: The other Party shall be
      liable for the actions of its personnel, including its employees,
      contractors, agents or students and shall ensure that while working on NRC
      premises, they are required to comply with the following requirements:
    

	 	(a) 	
      regulations, policies and directives that NRC may adopt
      from time to time to address access to NRC facilities and activities
      thereon, and without limiting the generality of the foregoing,
      regulations, policies and directives
addressing:

	 	(i) 	
      protection of confidential information;

	 	 	 
	 	(ii) 	
      information management and information technology
      (IM/IT);

	 	 	 
	 	(iii) 	
      harassment and code of conduct in NRC
  facilities;

	 	 	 
	 	(iv) 	
      protection of safety and health of NRC employees, the
      other Party’s personnel and others; and

	 	 	 
	 	(v) 	
      security and emergency
procedures;

	 	(b) 	
      any and all security policies that the Government of
      Canada may promulgate from time to time
including:

	 	(i) 	
      any and all security conditions and requirements NRC may
      request from time to time including, without limitation, undergoing a
      security screening, which may include a fingerprint check and if,
      following a security screening, an employee of the Collaborator is unable
      to obtain or maintain a level of security clearance that, in the sole
      opinion of NRC, is adequate, such employee of the Collaborator will be
      denied access to NRC facilities and IT Resources;

	 	 	 
	 	(ii) 	
      the requirement to display an identification badge as a
      condition of access to NRC facilities with or without restrictions on
      hours of access;

	 	 	 
	 	(iii) 	
      restrictions on access to NRC’s IT Resources; “NRC’s IT
      Resources” include, but are not limited to, all computers,
      telecommunications systems, workstations, PCs, laptops, storage, software,
      peripheral devices, servers, network equipment, transmission equipment,
      Remote Access Systems, and internal and external communications systems --
      such as the Internet, e-mail and Intranet -- e-mail accounts, messages and
      associated files created, sent received, or stored on NRC IT resources;
      and

	 	 	 
	 	(iv) 	
      the requirement to follow security procedures at all
      times and not to do anything that may compromise the integrity of NRC
      facilities or NRC IT Resources, with NRC reserving the right to modify or
      terminate the access privileges of the Collaborator’s personnel at any
      time;

	 	(c) 	
      all confidentiality obligations under this
    Agreement.

		
      NRC shall provide the other Party with access to all
      relevant legislation, regulations, policies and procedures as well as
      notice of any changes, and shall provide security, health and safety
      training to the Collaborator’s personnel as soon as possible following
      permitted access to NRC facilities. 

	  	
       

	GC-16 	
      DISPUTE RESOLUTION: Disputes
      concerning this Agreement shall not be litigated. All disputes arising in
      connection with this Agreement which cannot be resolved through
      negotiations to the mutual satisfaction of both Parties within thirty (30)
      days, or such longer period as may be mutually agreed upon, may be
      submitted by either Party to arbitration in accordance with the
      Commercial Arbitration Act of Canada, R.S.C., 1985, c. 17 (2nd
      Supp.), as amended, and shall be subject to the following:
  

	 	(a) 	
      The Party requesting such arbitration shall do so by
      written notice to the other Party.

	 	 	 
	 	(b) 	
      The arbitration shall take place in Ottawa, Ontario
      before a single arbitrator to be chosen jointly by
the Parties. Failing agreement of the Parties on a single
arbitrator within thirty (30) days of such notice requesting arbitration, either
party may apply to a judge of a court having jurisdiction in Ottawa, Ontario for
the appointment of a single arbitrator. 

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    	Research Agreement 

	 	(c) 	
      Each Party shall pay its own costs and an equal share of
      all of the costs of the arbitration and the fees of the arbitrator, except
      for the exceptional circumstance in which an arbitral award may require
      the payment of all costs by a Party who has brought a plainly frivolous
      dispute.

	 	 	 
	 	(d) 	
      The arbitrator shall issue a written decision as soon as
      practicable after the conclusion of the final hearing, but in any event no
      later than sixty (60) days thereafter, unless that time period is extended
      for a fixed period by the Arbitrator on written notice to each Party
      because of illness or other cause beyond the Arbitrator’s control. The
      decision shall be rendered in such form that judgment may be entered
      thereon in any court having jurisdiction.

	 	 	 
	 	(e) 	
      The decision shall be final and binding on the Parties in
      accordance with the Commercial Arbitration Act of
  Canada.

Neither Party may request arbitration
in respect of a breach of this Agreement after the fourth anniversary of the day
on which the requesting Party first discovered that breach, unless the other
Party has agreed in writing to extend the period. 

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    	Research Agreement 

ANNEX PT: PAYMENT TERMS 

	PT-1 	
      Except for an amount expressed in a PA that is due upon
      signature of the PA, all amounts set out in a PA shall be due as invoiced
      by NRC, which invoice shall provide for payment due 30 days from the date
      the invoice is issued. An amount expressed in a PA to be due upon
      signature of the PA is due immediately upon execution of the PA by both
      Parties. 

	  	
       

	PT-2 	
      NRC may suspend its performance of any obligations under
      this Agreement until the specified prepayment or payment is received, and
      for as long as any payments are in arrears. 

	  	
       

	PT-3 	
      If a surplus of prepayment remains as a result of
      premature termination of a PA, it will be refunded. 

	  	
       

	PT-4 	
      A Party shall notify the other Party, and explain, if it
      appears at any time that costs expressed as estimates will be exceeded by
      more than 10%. The Parties shall then negotiate a further agreement on
      costs or payments, and either Party may suspend the performance of any
      obligations, other than accrued obligations to pay, until a further
      agreement is reached. 

	  	
       

	PT-5 	
      Payments must be made to: “Receiver General - National
      Research Council of Canada" and addressed to: 

Accounts Receivable 
National
Research Council of Canada 
1200 Montreal Road 
Ottawa, Ontario, K1A 0R6,
Canada

	PT-6 	
      Where an instrument tendered in payment or settlement of
      an amount due to NRC is, for any reason, dishonoured, an administrative
      charge of $25 is payable to NRC and is due as invoiced. 

	  	
       

	PT-7 	
      Interest is payable on all overdue amounts. Interest on
      overdue amounts is calculated and compounded monthly at the average bank
      rate plus 3% and accrues during the period beginning on the due date and
      ending on the day before the day on which payment is received by NRC. For
      purposes of this paragraph “bank rate” means the rate of interest
      established periodically by the Bank of Canada as the minimum rate at
      which the Bank of Canada makes short term advances to members of the
      Canadian Payments Association, and “average bank rate” means the
      weighted arithmetic average of the bank rates that are established during
      the month before the month in respect of which interest is being
      calculated. 

(Rate information may be found at
http://www.bankofcanada.ca/rates/exchange/exchange-rates-in-pdf/ .
This site provides information on the rate used by departments of the
Government of Canada to calculate the interest on overdue accounts payable and
is the same rate used by NRC to charge interest on overdue accounts receivable
under the Interest and Administrative Charges Regulations, SOR/96-188. This web
site address, and the information set out there, is provided here for
convenience. In case of rate discrepancy, the rates quoted by the Bank of Canada
shall prevail.) 

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    	Research Agreement 

ANNEX IU: INTELLECTUAL PROPERTY 

	IU-8 	
      NATURE OF THE PROJECT: By the nature
      of the Collaboration, Arising Intellectual Property that may arise is
      difficult to predict, and the Parties consider it desirable to defer
      settling the terms on which it will be available until the Arising
      Intellectual Property is known. 

	  	  
	IU-9 	DEFINITIONS OF FIXED
      TERMS: 

	 	2.1 	
      "Arising Intellectual Property" or “Arising
      IP” is Intellectual Property that is developed in the Collaboration
      and that is disclosed in the Deliverables of the individual PA. The
      possessive adjective “NRC’s” or “Collaborator’s” indicates ownership or
      control by a Party.

	 	 	 
	 	2.2 	
      "Commercially Exploit" is to use, reproduce and
      modify Arising IP, and to manufacture, use, import, and sell articles
      embodying or made by use of any Deliverables, and to provide services by
      use of any Deliverables.

	 	 	 
	 	2.3 	
      “Confidential Background Information” means any
      confidential or proprietary information, either of a business or technical
      nature, other than Arising IP, disclosed by one Party to the other Party
      pursuant to this Agreement.

	 	 	 
	 	2.4 	
      "Deliverables" are the tangible outcomes of the
      Collaboration, such as reports, physical models, samples, data records,
      drawings, and machine-readable software, that are specifically mentioned
      in the individual PA Statement of Work and Deliverables as being
      deliverable.

	 	 	 
	 	2.5 	
      “Intellectual Property” or “IP” is all
      rights in inventions (whether patentable or not), patents, copyright
      material, trade secrets, confidential information and bacterial, viral,
      plant, human, or animal material that has new genetic or other
      characteristics first produced by a Party.

	 	 	 
	 	2.6 	
      “Background Intellectual Property” or
      “Background IP” means any Intellectual Property existing prior to
      the commencement of this Agreement and/or developed outside the scope of
      the Collaboration.

	IU-3 	
      ARISING INTELLECTUAL PROPERTY: The
      Parties represent that, by law or contract, they will own any Arising IP
      created by their employees, contractors, agents or students. A Party who
      is the sole owner of Arising IP is responsible for patenting and licensing
      its Arising IP, but is not obliged by this Agreement to patent its Arising
      IP. However, a Party who is unwilling to patent its Arising IP shall
      diligently do so if the other Party undertakes to pay all expenses
      incurred in obtaining and maintaining the patent. 

	  	
       

	IU-4 	
      JOINTLY CREATED ARISING IP: In the
      case of Arising IP that was created by employees of both Parties, the
      Collaborator hereby assigns its entire rights in that Arising IP to NRC
      and agrees to execute and deliver any further documents and to give any
      further assurances that NRC may request. It will then be regarded as NRC’s
      Arising IP and that Arising IP shall be treated as NRC’s Arising IP for
      all purposes under this Agreement. 

	  	
       

	IU-5 	
      SHARING INFORMATION: The Parties
      shall keep each other promptly informed of Arising IP. Each Party shall
      give the other, for information only, a copy of any patent application for
      Arising IP immediately upon filing the application, and a copy of related
      correspondence with a patent office if requested, and the information
      contained in such documents and correspondence will be maintained in
      confidence. 

	  	
       

	IU-6 	
      LICENCE OF NRC’S ARISING IP: NRC,
      upon request by the Collaborator no later than (6) six months after the
      end of the applicable PA, agrees: 

	 	(a) 	
      For any Arising IP that could not be Commercially
      Exploited without use of the Collaborator’s Background IP, to grant to
      Collaborator a sole, worldwide, perpetual license (with the right to
      sublicense) of the Arising IP to use, modify, adapt, and make derivative
      works for any purpose and to permit others to do any of the
    foregoing.

	 	 	 
	 	(b) 	
      For all other Arising IP, to undertake to negotiate with
      the Collaborator in good faith to settle the terms of a sole licence which
      will allow the Collaborator to Commercially Exploit the Arising
  IP.

	 	 	 
	 	(c) 	
      In addition, subject to confidentiality requirements, NRC
      hereby licenses the Collaborator under Crown copyright, free and without time limit, to use and reproduce
all documents that are deliverable under the individual PA. 

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    	National Research Council 	Conseil national de recherches 	Master Collaborative 
	Canada
    	Canada
    	Research Agreement 

	IU-7 	
      LICENCE OF COLLABORATOR’S ARISING IP:
      Collaborator hereby grants to NRC a fully prepaid and royalty- free
      licence for all Collaborator’s Arising IP, solely for research purposes
      within NRC, for performing work under the Collaboration and for providing
      services to third parties while maintaining confidentiality as required
      under this Agreement. In addition, Collaborator, at NRC’s request, shall
      negotiate with NRC in good faith to settle the terms of a licence on terms
      financially and otherwise acceptable to the Collaborator, which will allow
      NRC to Commercially Exploit Collaborator’s Arising IP and to sub-licence
      third parties to Commercially Exploit Collaborator’s Arising IP only with
      the understanding that such exploitation or sub-licensing shall not
      compete against Collaborator’s commercial interests in the fields of
      cannabinoids, nicotine, non-steroidal anti-inflammatory drugs and
      vitamins. If the Parties cannot agree on such licence terms, the other
      Party agrees that it will not grant a licence to any third party under
      terms more favourable than those offered to NRC. Before entering into a
      licence, Collaborator shall promptly notify NRC of the proposed terms, and
      NRC shall have a right of first refusal to take a licence under such
      terms, which right must be exercised within 30 days of receipt of the
      proposed terms by NRC. 

	  	
       

	IU-8 	
      BACKGROUND TECHNOLOGY: If, in order
      to perform work in the course of the Collaboration, a Party needs another
      Party’s Background IP, a licence for that limited purpose is granted by
      this Agreement and terminates at the end of the applicable PA. Upon
      completion of the applicable PA, if the use of a Party’s Background IP is
      required by the other Party to Commercially Exploit the Arising IP, a
      separate license for its use must be negotiated. 

	  	
       

	IU-9 	
      CONFIDENTIAL BACKGROUND INFORMATION
      RESTRICTIONS: Unless otherwise stipulated in a separate
      agreement, the following provisions apply to Confidential Background
      Information that is in electronic, written, graphic or other tangible
      form, including a physical object, that is clearly marked “Proprietary” or
      “Confidential” or with an equivalent legend, or that is oral information
      provided that at the time of disclosure the disclosing Party clearly
      identifies the confidential nature of such information and confirms such
      confidential nature by transmitting the information, in a written version
      that is marked as above, to the receiving Party within 20 days of
      disclosure. The receiving Party agrees not to disclose any Confidential
      Background Information, including to any director, officer or employee of
      the receiving Party unless that individual needs the information to
      perform work in the course of the Collaboration and is legally bound to
      keep confidences. In protecting Confidential Background Information, the
      receiving Party must use at least the same degree of care as it uses to
      protect its own information of a similar nature, but not less than a
      reasonable degree of care. Unless specifically licensed, Confidential
      Background Information may only be used by the receiving Party to perform
      work in the course of a Project. These obligations of confidentiality and
      protection will initially apply to Confidential Background Information in
      the form of oral information but will cease to apply if the information is
      not provided in a written version within twenty (20) days of disclosure.
      Notwithstanding the foregoing, the receiving Party may disclose the
      particulars of this Agreement and its associated PA’s to others of its
      officers and employees for internal administrative and business purposes,
      to the extent that such disclosure does not result in a public release of
      such information. 

	  	
       

	IU-10 	
      END OF CONFIDENTIAL BACKGROUND INFORMATION
      RESTRICTIONS: Unless otherwise stipulated in a separate
      agreement, all obligations of confidentiality and restrictions on the use
      of Confidential Background Information in this Agreement cease to apply
      five (5) years after the expiration of this Agreement and such obligations
      and restrictions do not apply to information that can be proved to be:
    

	 	(a) 	
      independently developed by the receiving Party without
      reference to or use of the confidential information of the other
    Party;

	 	 	 
	 	(b) 	
      received from a third party without breach of any
      obligation of confidentiality;

	 	 	 
	 	(c) 	
      in the public domain at the time of its disclosure or
      that later enters the public domain without breach of this Agreement;
      or

	 	 	 
	 	(d) 	
      required to be disclosed by law, including, in the case
      of NRC, the Access to Information Act, provided that the receiving
      Party first provides the other Party with notice of such requirements and
      of its intent to disclose the information.

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    	Research Agreement 

	IU-11 	
      CONFIDENTIALITY AND USE OF ARISING IP:
      All Arising IP will be maintained in confidence and protected by both
      Parties with at least the same degree of care as they use to protect their
      own confidential information, but not less than a reasonable degree of
      care. Arising IP shall not be disclosed except:

	 	(a) 	
      as required for a patent application or for a license to
      a third party including disclosure to prospective licensees;

	 	 	 
	 	(b) 	
      if the Arising IP has entered the public domain without
      breach of this Agreement;

	 	 	 
	 	(c) 	
      as required to be disclosed by law, including, in the
      case of NRC, the Access to Information Act, provided that the
      receiving Party first provides the other Party with notice of such
      requirements and of its intent to disclose information; or

	 	 	 
	 	(d) 	
      as otherwise agreed to by the
Parties.

	IU-12 	
      PUBLICITY: A Party may publicize the
      results of the Collaboration, to the extent permitted by confidentiality,
      and in so doing will acknowledge each Party's contribution. No Party will
      publicly suggest that the other Party endorses or recommends any product
      or process or results of the Collaboration. 

	  	
       

	IU-13 	
      NO IMPLIED WARRANTIES: NRC’s Arising
      IP is supplied and licensed on a “as is” basis, and there are no
      representations, warranties or conditions, express or implied by statute,
      including without limitation any with respect to:

	 	(a) 	
      market readiness, merchantability, or fitness for any use
      or purpose;

	 	 	 
	 	(b) 	
      operational state, character, quality, or freedom from
      defects;

	 	 	 
	 	(c) 	
      validity of patents;

	 	 	 
	 	(d) 	
      non-infringement of rights of third parties under present
      or future patents.

	IU-14 	
      NO CONTESTATION OF VALIDITY: The
      Parties acknowledge the validity of the patents and copyright, if any
      licensed hereunder and agrees not to contest such validity, either
      directly or indirectly by assisting other parties. 

	  	
       

	IU-15 	
      INDEMNITY: NRC rejects all liability
      and responsibility relating to the consequences of Collaborator using
      NRC’s Arising IP. Collaborator shall indemnify and save harmless NRC, its
      employees and agents from and against, and be responsible for:
  

	 	(a) 	
      all claims, demands, losses, damages, costs including
      solicitor and client costs, actions, suits or proceedings brought by any
      third party, that are in any manner based upon, arising out of, related
      to, occasioned by, or attributable to:

	 	(i) 	
      the use by Collaborator of NRC’s Arising IP including
      without limitation, the manufacturing, distribution, shipment, offering
      for sale, sale, or use of products and services derived from NRC’s Arising
      IP; and

	 	 	 
	 	(ii) 	
      product liability and infringement of Intellectual
      Property rights other than copyright, if any, licensed
  hereunder.

	 	(b) 	
      other costs, including extra-judicial costs, of NRC
      defending such any action or proceeding, which NRC shall have the right to
      defend with counsel of its choice.

This clause shall survive expiration or
termination of this Agreement. 

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    	Canada
    	Research Agreement 

ANNEX PO: PROJECT OBJECTIVES AND OVERVIEW 

Background 
One strategy to increase the
bioavailability of hydrophobic molecules is to use fatty acids as solubility and
encapsulation agents. Long chain-alkyl groups of fatty acids interact with the
target molecule, leaving the hydrophilic carboxylic acid end of the fat molecule
to interact with aqueous media. Collaborator is a Canadian (BC) company focused
on a proprietary technology for producing formulations and compositions infused
with lipophilic active agents (LAAs) and bioavailability enhancing agents
(BEAs). Products formulated through this process are believed to confer
advantages beyond increased bioavailability, such as taste-masking properties.
Potential LAAs include a diverse range of specialty and functional ingredients,
such as cannabinoids, nicotine, non-steroidal anti-inflammatory drugs and
vitamins. Potential BEAs include any edible oil (e.g. sunflower oil), fat or
material (e.g. non-fat dry milk) capable of forming a protective colloid with an
LAA. Collaborator is currently most active in the delivery of hemp oil compounds
in food and beverage compositions under the Lexaria Energy and ViPova brands,
but has formed development agreements with other industry and commercialization
partners to explore other applications for their patented processes in nutrition
and health and wellness markets. A better understanding of the chemical nature
of the LAAs in the presence of BEAs would provide valuable insight into process
improvements and new product applications.

Collaboration Overview 
NRC and Collaborator have
common interests in the development of specialty and functional ingredients for
differentiated consumer markets involving functional food, nutrition, and health
and wellness applications. Both parties share expertise in fatty acid chemistry,
product formulation and functional ingredient characterization, most notably
cannabinoids and related active ingredients. This common interest creates a
foundation for a strategic R&D relationship with the broad objectives of:

	1. 	
      To develop specific Projects to explore solutions for the
      technical challenges surrounding commercialization of LAA- BEA
      formulations, both those common to the industry as a whole and those
      specific to Collaborator’s proprietary processes.

	 	 
	2. 	
      To improve expertise and capacity in the area of
      ingredient formulation for improved product function, most notably
      cannabinoids and related high value bioactives.

	 	 
	3. 	
      To identify and explore innovative new technologies and
      applications of mutual interest to NRC and
Collaborator.

Timeline 
The Collaboration will encompass 18 months
beginning in January 2017.

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    	Canada
    	Research Agreement 

APPENDIX 1 

PROJECT ANNEX (“PA”) # ___ 

	BETWEEN: 	NATIONAL RESEARCH COUNCIL OF CANADA
  
	  	whose head office address is:

	 	1200 Montreal Road 	  
	 	Ottawa, ON K1A 0R6 	(called “NRC”) 

	AND: 	LEXARIA CANPHARM CORP. 
	  	whose address is: 

	 	156 Valleyview Road 	  
	 	Kelowna, BC V1X 3M4 	(called the “Collaborator”)
  

	1. 	
      This PA is subject to the terms of the Master
      Collaborative Research Agreement (“Agreement”) between the Parties with an
      effective date of. 

	  	
      

	2. 	
      This PA concerns the following Project:
      ___________________________________________________________________________________________________________________________________________________

	  	
      

	 	
       

	  	
      

	3. 	
      The Parties shall contribute to the Project by the
      performance of work as described in the attached "Statement of Work and
      Deliverables”. 

	  	
      

	4. 	
      The total price of the Project is estimated to be $ ,
      which includes the following contributions from NRC and the Collaborator:
      

		4.1 	
      NRC shall make a co-investment in the Project by
      performing, at its own cost, work as described in the Statement of Work
      and Deliverables at an estimated value of $ ________________. 

	 	  	
		4.2 	
      The Customer shall pay to NRC in cash the sum of $
      _____________, in accordance with Schedule of Payments
      outlined in clause 4.4. In addition the Customer shall pay all
      applicable taxes.* 

	 	  	
		4.3 	
      The Collaborator shall make a co-investment in the
      Project by performing, at its own cost, work as described in the Statement
      of Work and Deliverables at an estimated value of $ ________________.
    

	 	  	
	 	4.4 	
      NRC will invoice the Collaborator for PA # ______ as
      follows: 

	SCHEDULE OF PAYMENTS 	AMOUNT DUE (CAD) 
Plus
      applicable taxes* 
	1. Invoice to be issued 	$______ 
	2. Invoice to be issued 	$______ 
	3. Invoice to be issued 	$______ 
	4. Invoice to be issued 	$______ 

	5. 	This PA shall become effective on
      ____________________________________ and expires on
      ____________________________________. If the Deliverables are not
      completed by the expiration date, the Parties shall negotiate an extension
      to this PA prior to its expiry. Such extension shall be in writing and shall be
signed by the authorized representatives of each Party. 

________________________________

	* 	
      Sales Tax (GST or similar) : NRC registration number 121
      491 807 

	 	Quebec Sales Tax : NRC registration number 1006 178
    088

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    	Research Agreement 

	6. 	
      Any rights and obligations under the Agreement or this PA
      which are intended to survive expiration or termination of a PA shall
      survive such expiration or termination.

	 	 
	7. 	
      In the event of any conflict between the Agreement and
      this PA, the Agreement shall take precedence.

IN WITNESS WHEREOF, the Parties have signed this PA in
duplicate copies. 

	NATIONAL RESEARCH COUNCIL OF CANADA 	LEXARIA CANPHARM CORP. 
	 	 
	 	 
	By: _____________________________________________________	By:
      _____________________________________________________
	 	 
	Name:
___________________________________________________	Name:
      ___________________________________________________
	 	 
	Title:
    ____________________________________________________	Title:
      ____________________________________________________
	 	 
	Date:
    ____________________________________________________	Date:
      ____________________________________________________

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    	Research Agreement 

APPENDIX 2

STATEMENT OF WORK AND DELIVERABLES 

Project Annex (PA) #: 

Objective of the Project 

Work Plan Description 

Materials, Equipment and Facilities Information 

Deliverables 

Project Estimated Budget 

Project Plan and Schedule 

Project Risks / Conditions 

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	  	  	Business Confidential - Protected BLexaria Bioscience Corp.: Exhibit 10.8 - Filed by newsfilecorp.com

SERVICES AGREEMENT 

THIS AGREEMENT dated for reference the 10th day of
January, 2017. 

BETWEEN: 

	
      Lexaria Bioscience Corp , a company duly
      incorporated under the laws of the State of Nevada and having its office
      at 156 Valleyview Rd, Kelowna BC Canada V1X 3M4 

	 
	(hereinafter referred to as the “Company”)

OF THE FIRST PART 

AND 

	Correlation Capital Inc. of 702 - 39 Queens Quay
      East, Toronto, Ontario, M5E 0A5. 
	 
	(hereinafter referred to as "CORRELATION" or “Consultant”)
    

WHEREAS: 

	A. 	
      The Company wishes to engage CORRELATION for corporate
      development and to provide services to it on the terms and conditions
      hereinafter set forth.

	 	 
	B. 	
      CORRELATION has agreed to provide the services to the
      Company on the terms and conditions set out in this
  Agreement.

NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of
the premises and of the covenants and agreements hereinafter contained the
parties hereto have agreed as follows: 

	1. 	
      ENGAGEMENT OF SERVICES

	 	 
	1.1. 	
      The Company hereby engages CORRELATION to provide
      services as an independent contractor to the Company under the direction
      and approval of the Company’s President and Chief Executive Officer; and
      CORRELATION hereby agrees to perform the following duties required of him
      in accordance with the terms of this agreement
namely:

	 	A. 	
      Introductions, discussions and negotiations with
      individuals and corporations to assist the company’s growth &
      financing – including potential technology partners; licensees; finance
      providers; strategic partners, and more.

	 	 	 
	 	B. 	
      Creating/maintaining investor related material including
      assisting with press release creation, corporate presentations, website
      content, etc. Keeping the message to the financial markets
  aligned.

	 	 	 
	 	C. 	
      Other corporate development activities, which may include
      contract negotiating and revisions.

	 	 	 
	 	D. 	
      Other activities as may be required to help build the
      business, which could also include strategic financing partners, or merger
      and acquisition opportunities.

	 	 	 
	 	E. 	
      New geographical markets for products; and contemplation
      of new products for existing geographical markets.

	 	 	 
	 	F. 	
      General Services. CORRELATION shall serve the Company
      (and/or such subsidiary or subsidiaries of the company as the Company may
      from time to time require) in such consulting capacity or capacities as
      may from time to time be determined by resolution of the Board
  of Directors or senior management of the Company and shall perform
such duties as an independent contractor. CORRELATION will work as needed with
lawyers, partners, and other stakeholders as required by the Company.
CORRELATION shall fulfill all other duties that should be reasonably expected by
and at the pleasure of the Company’s management (together with all other items
within this Section 1.1, the “Services”). 

- 1 - 

	2. 	
      TERM

	 	 
	2.1. 	
      The initial term of this Agreement shall be for a period
      of six (6) months, commencing as of the 10th day of January
      2017 and continuing month to month thereafter with all terms in effect
      unless and until terminated or upon Agreement expiry as hereinafter
      provided.

	3. 	
      SERVICES

	 	 
	3.1 	
      CORRELATION agrees to perform the Services contracted
      hereunder in the following manner:

	 	(a) 	
      to carry out all functions associated with the Services
      to the best of his skill and ability for the exclusive benefit of the
      Company and to act at all times during the term of this Agreement in the
      best interests of the Company;

	 	 	 
	 	(b) 	
      to carry out the Services in a timely manner;

	 	 	 
	 	(c) 	
      to conduct himself within the expected levels of
      corporate professionalism and decorum always representing the Company to
      the highest corporate standards; and

	 	 	 
	 	(d) 	
      to use his best endeavors to preserve the goodwill and
      reputation of the Company and the relationship between the Company and its
      stakeholders.

	4. 	
      REMUNERATION

	4.1. 	
      The Company shall pay to CORRELATION for all Services
      rendered hereunder:

	 	 
	4.2. 	
      the sum of four thousand dollars (CDN$4,000.00) per
      month, plus HST if applicable, payable on the 30th day of each
      month (the “Monthly Fee”);

	 	 
	4.3. 	
      CORRELATION’s out of pocket expenses incurred on behalf
      of the Company will be paid as per Section 8.5 of this
Agreement.

	 	 
	4.4. 	
      CORRELATION will be entitled to receive a performance
      related bonus on the same terms and conditions as for persons
      participating in any bonus plan that may be established and approved by
      the Company’s board of Directors. Any bonus payable to
  CORRELATION will be at the sole discretion of the Company’s Board of
Directors, acting reasonably. 

- 2 - 

	4.5. 	
      For new customers sourced by the Consultant during the
      first six (6) months after signing; for combined Lexaria Energy and ViPova
      products and including all combined sales efforts and/or technology
      licensing revenues, achieving non-refundable revenues of US$200,000 to any
      single customer in any consecutive 60-day period would result in a
      restricted common share award of 100,000 Company shares; and, after the
      first six (6) months after signing and expiring twelve (12) months after
      signing; for combined Lexaria Energy and ViPova products and including all
      sales efforts, achieving non-refundable revenues of US$200,000 to any
      single customer in any consecutive 60-day period would result in a
      restricted common share award of 50,000 Company shares; this clause
      limited to one payment per customer during the 12-month period, but
      payable on each customer that meets these sales/licensing
    thresholds;

	 	 
	4.6. 	
      For new customers sourced by the Consultant during the
      first six (6) months after signing; for combined Lexaria Energy and ViPova
      products and including all combined sales efforts and/or technology
      licensing revenues, achieving non-refundable revenues of US$500,000 in any
      fiscal quarter would result in a restricted common share award of 200,000
      Company shares; and, after the first six (6) months after signing and
      expiring twelve (12) months after signing; for combined Lexaria Energy and
      ViPova products and including all sales efforts, achieving non-refundable
      revenues of US$500,000 in any fiscal quarter would result in a restricted
      common share award of 100,000 Company shares; this clause limited to one
      payment per fiscal quarter;

	 	 
	4.7. 	
      Sections 4.5 and 4.6, above, collectively or
      individually, are defined as “Milestone Payments”.

	 	 
	4.8. 	
      Sections 4.5 and 4.6, above, are additive to each other.
      For example, if Consultant sources a customer that produces $650,000 in
      revenue in the first six months, then Consultant is eligible to receive
      the Milestone Payment noted in Section 4.5, but NOT eligible to receive
      the Milestone Payment noted in Section 4.6, unless the customer produces
      revenue of $700,000 or more within the first six
months.

If so requested by CORRELATION and through calculation with and
CORRELATION’s approval at the time of any and each award, all restricted common
share awards mentioned in this Agreement shall be subject to a reduction in the
number of restricted common shares issued to CORRELATION per grant to be paid
instead as cash proportional to the tax liability to be incurred by CORRELATION
at the time of the award. The Company would withhold from payment to CORRELATION
that fraction of restricted common shares in each of the paragraphs in Section
3, above, that would correspond with the federal and provincial income tax
payments otherwise payable by CORRELATION specifically with respect to each
award only, and CORRELATION agrees that such a hybrid payment of cash and
restricted common shares would fulfill the obligations of the Company with
respect to each affected award. The intent of this partial cash payment would be
to provide cash compensation to CORRELATION in the proportionate amount of each
restricted common share award and it is expressly agreed that it remains the
sole responsibility of CORRELATION to remit all amounts due to Provincial and
Federal tax authorities. This provision does not conflict with nor negate the
validity of Section 4.6 or 4.7. 

- 3 - 

	5. 	
      TERMINATION

	5.1. 	
      This Agreement may be terminated by either party at any
      time by one (1) month notice in advance, in writing given by CORRELATION
      to the Company, or by the Company to
CORRELATION.

	 	(a) 	
      The Company may terminate this Agreement at any time,
      without further obligation to CORRELATION if CORRELATION breaches any of
      the terms and conditions of this Agreement;

	6. 	
      NOTICE

	6.1. 	
      Any notice to be given under this Agreement shall be in
      writing and shall be deemed to have been given if delivered to, or sent by
      prepaid registered post addressed to, the respective addresses of the
      parties appearing on the first page of this Agreement (or to such other
      address as one party provides to the other in a notice given according to
      this paragraph). Where a notice is given by registered post it shall be
      conclusively deemed to be given and received on the fifth day after its
      deposit in a Canada post office any place in
Canada.

	7. 	
      TAXES

	7.1 	
      CORRELATION shall be responsible for the payment of its
      income, capital gains and all other taxes and other remittances including
      but not limited to any form of insurance as shall be required by any
      governmental entity (including but not limited to health insurance and
      federal and state or provincial income taxes), with respect to
      compensation paid by the Company to CORRELATION, and nothing in this
      Agreement implies or creates a relationship of employment. CORRELATION
      agrees to indemnify the Company for any tax, insurance or other remittance
      CORRELATION fails to make and which the Company may be obligated to pay.
      

	8. 	
      MISCELLANEOUS

	 	 
	8.1 	
      This Agreement may not be assigned by either party
      without the prior written consent of the other.

	 	 
	8.2 	
      The titles of headings to the respective paragraphs of
      this agreement shall be regarded as having been used for reference and
      convenience only.

	 	 
	8.3 	
      This Agreement shall enure to the benefit of and be
      binding upon the parties hereto and their respective heirs, executors,
      administrators, successors and permitted assigns.

	 	 
	8.4 	
      This Agreement shall be governed by and interpreted in
      accordance with the laws of British Columbia,
Canada.

- 4 - 

	8.5 	
      Expenses. CORRELATION shall be reimbursed for all
      travelling and other expenses actually and properly incurred by it in
      connection with its duties hereunder, not including commuting to the
      office that is the normal place of business. For all such expenses
      CORRELATION shall furnish to the Company statements, receipts and vouchers
      for such out-of-pocket expenses on a monthly basis. CORRELATION is
      pre-authorized to incur up to $500 per month, cumulatively, in relevant
      expenses. Amounts over $500 per month, and all air-travel and hotel
      expenses, must be pre-approved by management of the Company or will be
      disallowed. Both parties recognize that as the financial condition of the
      Company improves or deteriorates, this amount may be increased or
      decreased without making changes to this document, provided the Company
      makes CORRELATION aware, in writing, of the changed amount.

	 	 
	8.6 	
      CORRELATION shall not, either during the continuance of
      its contract hereunder or at any time thereafter, disclose the private
      affairs of the Company and/or its subsidiary or subsidiaries, or any
      secrets or intellectual property of the Company (together or separately
      and as described below, “Proprietary Information”) and/or its
      subsidiary or subsidiaries, to any person other than the Directors of the
      Company and/or its subsidiary or subsidiaries or for the Company's
      purposes and shall not (either during the continuance of its contract
      hereunder or at any time thereafter) use for its own purposes or for any
      purpose other than those of the Company any information it may acquire in
      relation to the business and affairs of the Company and/or its subsidiary
      or subsidiaries, unless required by law.

	 	 
	8.7 	
      Proprietary Information as that term is used
      herein shall consist of the following:

	 	a) 	
      all knowledge, data and information which CORRELATION may
      acquire from the documents and information disclosed to it by the Company,
      its employees, attorneys, consultants, independent contractors, clients or
      representatives whether orally, in written or electronic form or on
      electronic media including, by way of example and not by limitation, any
      products, customer lists, supplier lists, marketing techniques, technical
      processes, formulae, inventions or discoveries (whether patentable or
      not), innovations, suggestions, ideas, reports, data, patents, trade
      secrets and copyrights, made or developed by the Company and related data
      and information related to the conduct of the business of the
    Company.

	 	 	 
	 	b) 	
      Proprietary Information shall also include discussions
      with officers, directors, employees, independent contractors, attorneys,
      consultants, clients, finance sources, customers or representatives and
      the fact that such discussions are taking place.

	 	 	 
	 	c) 	
      Proprietary Information shall not be directly or
      indirectly disclosed to any other person without the prior written
      approval of the Company.

	 	 	 
	 	d) 	
      Proprietary Information may not be used during the period
      of this contract nor thereafter, for the betterment of any other
      commercial enterprise, company, project or person without the prior
      written approval of the Company.

	 	 	 
	 	e) 	
      Proprietary Information shall not include matters of
      general public knowledge, information legally received or obtained by
      CORRELATION from a third party or parties without a duty of
      confidentiality, and information independently known or developed by
      CORRELATION without the assistance of the
Company.

	8.8 	
      CORRELATION shall well and faithfully serve the Company
      or any subsidiary as aforesaid during the continuance of its contract
      hereunder and use its best efforts to promote the interests of the
      Company. At all times CORRELATION will maintain a high degree of
      professionalism and integrity as would be expected in keeping with his
      role. CORRELATION reserves the right to refuse any request from the
      Company which may, in his reasonable opinion, violate either Federal or
      State Laws in either the United States or Canada.

	 	 
	8.9 	
      This Agreement may be terminated forthwith by the Company
      or CORRELATION without notice if either party breaches the Agreement. A breach may include, but
is not limited to, the following: 

- 5 - 

	 	a) 	
      The Company or CORRELATION shall commit any material
      breach of any of the provisions herein contained; or

	 	 	 
	 	b) 	
      The Company or CORRELATION shall be guilty of any
      misconduct or neglect in the discharge of its duties hereunder;
  or

	 	 	 
	 	c) 	
      The Company or CORRELATION shall become bankrupt or make
      any arrangements or composition with its creditors; or

	 	 	 
	 	d) 	
      CORRELATION shall become of unsound mind or be declared
      incompetent to handle his own personal affairs; or

	 	 	 
	 	(e) 	
      The Company or CORRELATION shall be convicted of any
      criminal offence other than an offence which, in the reasonable opinion of
      the Board of Directors of the Company, does not affect his/their position
      as a consultant or a director of the Company.

This Agreement may also be terminated by either party upon
thirty (30) days written notice to the other. Should the Company terminate this
agreement for a reason not enumerated in items 8.9(a), 8.9(b), 8.9(c), 8.9(d),
or 8.9(e), CORRELATION will be entitled to all Milestone Payments, as they
relate to transactions which were in process but had not yet closed at the date
of his termination, to which he would have otherwise been entitled for a period
of 60 days after the date of his notice of termination. 

	8.10 	
      In the event this Agreement is terminated by reason of
      default on the part of CORRELATION or the written notice of the Company,
      then the provisions of Sections on Proprietary Information and on
      Confidentiality shall survive the termination or expiration of this
      Agreement. 

	 	
       

	8.11 	
      Upon Termination or expiration of this Agreement, for any
      reason, CORRELATION shall do the following: CORRELATION must return to
      Lexaria immediately, all correspondence, information, reports, emails,
      phone recordings or transcripts, notes, CORRELATION contact information
      and all other materials related to the work performed for Lexaria
      including all Proprietary Information during the contract period.
  

	 	a) 	
      All such materials and information as referred to in
      Section 8.11 are the exclusive property of the Company. After returning,
      transmitting or otherwise sending such information to Lexaria, CORRELATION
      must destroy any and all remaining copy (ies) or records of
same.

	 	 	 
	 	b) 	
      All such materials and information as referred to in
      Section 8.11 were obtained during the time of the paid contract with
      Lexaria, and may not be shown, lent, given, discussed or in any way
      disclosed with or to any other party as per the terms of the contract. The
      Proprietary Information CORRELATION gains or has access to during the
      period of the contract is the exclusive property of Lexaria Corp, and the
      provisions governing such proprietary information survives the termination
      of this Consulting Agreement.

	8.12 	
      The Company is aware that CORRELATION is independent and
      may have and may continue to have financial, management or business
      interests in other companies. The Company agrees that CORRELATION may
      continue to devote time to such outside interests, provided that such
      interests do not conflict with or hinder CORRELATION’s ability to perform
      his duties under this Agreement. 

	 	  
	8.13 	The services to be performed by CORRELATION
      pursuant hereto are personal in character, to be performed by Mr. Scott Urquhart, and neither this
Agreement nor any rights or benefits arising thereunder are assignable by
CORRELATION without the previous written consent of the Company.

- 6 - 

	8.14 	
      With the exception of any previously granted options or
      restricted stock, any and all previous agreements, written or oral,
      between the parties hereto or on their behalf relating to the agreement
      between CORRELATION and the Company are hereby terminated and cancelled
      and each of the parties hereto hereby releases and forever discharges the
      other party hereto of and from all manner of actions, causes of action,
      claims and demands whatsoever under or in respect of any such previous
      agreements. 

	 	
       

	8.15 	
      Any notice in writing or permitted to be given to
      CORRELATION hereunder shall be sufficiently given if delivered to
      CORRELATION personally or mailed by registered mail, postage prepaid,
      addressed to CORRELATION at the address on the front of this Agreement.
      Provided any such notice is mailed via guaranteed overnight delivery, as
      aforesaid shall be deemed to have been received by CORRELATION on the
      first business day following the date of mailing. Any notice in writing
      required or permitted to be given to the Company hereunder shall be given
      by registered mail, postage prepaid, addressed to the Company at the
      address shown on page 1 hereof. Any such notice mailed as aforesaid shall
      be deemed to have been received by the Company on the first business day
      following the date of mailing provided such mailing is sent via guaranteed
      overnight delivery. Any such address for the giving of notices hereunder
      may be changed by notice in writing given hereunder. 

	 	
       

	8.16 	
      The provisions of this Agreement shall inure to the
      benefit of and be binding upon CORRELATION and the successors and assigns
      of the Company. For this purpose, the terms "successors" and "assigns"
      shall include any person, firm or corporation or other entity which at any
      time, whether by merger, purchase or otherwise, shall acquire all or
      substantially all of the assets or business of the Company. 

	 	
       

	8.17 	
      Every provision of this Agreement is intended to be
      severable. If any term or provision hereof is illegal or invalid for any
      reason whatsoever, such illegality or invalidity shall not affect the
      validity of the remainder of the provisions of this Agreement. 

	 	
       

	8.18 	
      This Agreement is being delivered and is intended to be
      managed from the Province of British Columbia and shall be construed and
      enforced in accordance with, and the rights of the parties shall be
      governed by, the laws of such Province. Similarly no provision within this
      contract is deemed valid should it conflict with the current or future
      laws of the United States of America or current or future regulations set
      forth by the United States Securities and Exchange Commission, the British
      Columbia Securities Commission, or the Ontario Securities Commission. This
      Agreement may not be changed orally, but only by an instrument in writing
      signed by the party against whom or which enforcement of any waiver,
      change, modification or discharge is sought. 

	 	
       

	8.19 	
      This Agreement and the obligations of the Company herein
      are subject to all applicable laws and regulations in force at the local,
      State, Province, and Federal levels in both Canada and the United States.
      In the event that there is an employment dispute between the Company and
      CORRELATION, CORRELATION agrees to allow it to be settled according to
      applicable Canadian law in an applicable British Columbia jurisdiction.
      

	 	
       

	8.20 	
      The securities referred to herein will not be or have not
      been registered under the United States Securities Act of 1933, as
      amended, and may not be offered or sold in the United States absent
      registration or an applicable exemption from registration requirements.
      Any and all potential or actual common share award or stock option awards
      will be in compliance with all applicable regulations in the USA and
      Canada. The securities issued will be subject to a hold period in Canada
      of not less than four months and one day, or for any resales possible into
      the USA under Rule 144, not less than six months and one day. Hold periods may be
longer if regulations so stipulate. 

- 7 - 

	8.21 	
      This contract will expire on July 10, 2017 unless renewed
      or extended by mutual written consent of both parties prior to that date
      and can further serve as a month-to-month agreement after that date if
      both parties so agree in writing at that time. 

	 	  
	8.22 	
      Any common shares that may be issued under this Agreement
      will be subject to applicable hold periods and will include restricted
      legends as per regulations that exist at the time of issuance. These
      legends will substantially resemble the following:

	
      "THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE
      SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
      STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), AND,
      ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE 1933 ACT OR PURSUANT TO AN AVAILABLE
      EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE 1933 ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS." 

	
       

	
      UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER
      OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE XXXXX.
  

	8.23 	
      CORRELATION understands and agrees that his name and
      likeness could be announced and circulated with regards to his role with
      the Company. His name could be disseminated through such avenues as press
      releases, websites, or other media; and in personal meetings and
      appearances and public events. CORRELATION understands that as a publicly
      traded entity, the Company has certain transparency obligations to its
      shareholders, stock exchanges, and other regulatory bodies, and has legal
      obligations to disclose CORRELATION’s initial and ongoing relationship
      with the Company during the normal course of business.

IN WITNESS WHEREOF the parties have executed this
Agreement the day and year first above written. 

Lexaria Bioscience Corp: 

	 
	Authorized Signatory 
	 
	 
	 
	CORRELATION CAPITAL Inc. 
	Scott Urquhart 

- 8 -

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