Document:

Offer to Lease - Sun Life Assurance Company of Canada

 Exhibit 10.11 

OFFER TO LEASE 
 February 15, 2010

 Bentall Limited Partnership 
 Suite 90,10451 Shellbridge Way

 Richmond, BC V6X 2W8 
 Attention: Tim Evans 

Dear Sirs: 
 We, AQUINOX PHARMACEUTICALS, INC.
(hereinafter referred to as the “Tenant”), hereby offer to lease certain premises (the “Demised Premises”) located at Part Building 400, 5600 Parkwood Way, Richmond, BC from Sun Life Assurance Company of Canada the
owners thereof, (hereinafter referred to as the “Landlord’), on the following terns and conditions: 
  

	1.	RENTABLE AREA 

 An area of approximately Fifteen
Thousand Seven Hundred Twenty-Nine (15,729) square feet of Rentable Area as shown on the plan attached hereto as “Schedule A”. 
  

	2.	TERM 

 The Term shall be for five (5) years measured from the
Commencement Date. The Commencement Date shall be September 1, 2010. No construction or demolition work shall commence until proof of Tenant’s insurance has been provided to the Landlord. 

 

	3.	BASIC RENT 

 Basic Rent per square foot of Rentable Area
per annum shall be: 
 Years 1 to 2 at $9.75; 

Year 3 at $10.50; and 
 Years 4 to
5 at $11.25. 
 Basic Rent shall be payable in accordance with the Lease. The Tenant shall be responsible for the payment of GST in addition
to Basic Rent. The Landlord shall have the right to measure or survey the Demised Premises. Should the Rentable Area be inconsistent with the estimated Rentable Area set out in Clause 1 hereof, Basic Rent shall be adjusted accordingly. 

	4.	PROPERTY TAXES AND OPERATING EXPENSES 

In addition to Basic Rent, the Tenant shall be responsible for the proportionate share of annual Property Taxes and Operating Expenses.
Estimated figures for 2010 total $4.07 per square foot of Rentable Area per annum. 
 Charges which are estimated shall be subject to
adjustment when actual amounts are available. 
 The Tenant shall be responsible for payment of GST in addition to the above. 

 

	5.	CONDITION OF DEMISED PREMISES 

The Tenant agrees to take the Demised Promises in “as is where is” condition excepting only the following which the Landlord will
provide and install at the Landlord’s expense to its base building standard by August 31, 2010 on a reasonable commercial efforts basis: 
  

	 	a)	As per the Streamline quote (dated November 30, 2009) attached as Schedule “C”. All mechanical, electrical, HVAC and plumbing systems and hot water supplies shall be properly separated from the
adjacent tenancies as part of the demising work undertaken by the Landlord; and 

  

	 	b)	All base building mechanical, electrical, HVAC and plumbing systems shall be in proper working order at the Commencement Date of the Lease. 

 

	 	c)	See Schedule “D”. 

 The Landlord makes no representation or warranty with respect to
the usability of any existing phone lines and/or data cables within the Demised Premises. The Tenant, at its expense, shall be responsible for all modifications required to reuse such phone lines and/or data cables. 

 

	6.	PERMITTED USE 

 Research laboratory with related business
office. 
  

	7.	TENANT IMPROVEMENTS 

 The Tenant shall be responsible for
its own improvements to the Demised Premises. Should the Tenant require additional utilities, heating, ventilation or air conditioning (“HVAC”) because of the nature of its business, in excess of those already provided to the Demised
Premises, then the Tenant shall be responsible for the cost of installing and/or supplying such additional utilities, subject to prior approval from the Landlord. 
  

	8.	OTHER TERMS AND CONDITIONS 

Other terms and conditions shall be applicable as contained in the Landlord’s standard form of Lease, a copy of which is attached as
Schedule “B” and forms an integral part of this Offer to Lease, except where the standard lease terms are contrary to the terms and conditions of this Offer to Lease, in which case the contrary provisions contained herein supersede the
standard lease. 
 The standard lease shall be modified by the Landlord to incorporate the terms of this Offer to Lease and any amendments to
the standard form of Lease agreed to by both the Tenant and the Landlord prior to the removal of the Tenant’s and Landlord’s Conditions 

 
contained herein, provided that no such amendments shall alter the financial terms agreed to herein and shall be delivered to the Tenant for execution within a reasonable period of time after
acceptance of this Offer to Lease and satisfaction of any subject conditions herein contained. The Tenant shall execute and return the Lease to the Landlord within five (5) business days upon receipt thereof. In no event shall the Tenant take
occupancy and commence business operations in the Demised Premises, without the Lease being fully executed. 
 If the Tenant takes occupancy
of the Demised Premises without executing the Lease, the Tenant shall be deemed to have executed the same and shall be bound to the provisions thereof and shall be deemed to hold the Demised Premises in accordance therewith, provided however, the
Tenant shall still be obligated to execute and deliver the Lease to the Landlord forthwith upon demand. Notwithstanding that the Tenant shall be deemed to hold the Demised Premises in accordance with the provisions of the Lease, the Tenant’s
failure to actually execute and return the Lease to the Landlord will be a default under the terms of the Lease. 
  

	9.	PRE-AUTHORIZED PAYMENT PLAN 

The Tenant authorizes the Landlord to withdraw monthly Rent payments from the Tenant’s account by way of direct withdrawals, as may be
arranged from time to time between financial institutions administering the Tenant’s and the Landlord’s accounts. 
 The Tenant
further agrees to execute and provide whatever further documentation, account information, cancelled cheques or otherwise, which are reasonably requested by the Landlord in order to assist the Landlord in the administration of a pre-authorized
payment procedure for monies owing or accruing due as Rent under the Lease. 
  

	10.	FINANCIAL INFORMATION 

 This Offer to Lease is subject to
the Tenant providing necessary financial information about the Tenant in order for the Landlord to conduct the Landlord’s standard credit check. Such information to be provided within three (3) days of the Offer to Lease being accepted by
the Landlord, failing which the Landlord may, in its sole discretion terminate this Offer to Lease and any legal obligations arising from the provisional acceptance hereof by the Landlord. If the Tenant, in the Landlord’s sole discretion,
satisfactorily passes the Landlord’s standard credit check, this subject condition shall be removed by the Landlord in writing within seven (7) days of the Landlord receiving such financial information failing which this Offer to lease and
any obligations arising therefrom shall forthwith be null and void. The subject clause is for the sole benefit of the Landlord. 
  

	11.	DEPOSIT 

 A deposit in the amount of two (2) months gross Rent
plus GST (the “Deposit”) is due within two business days of unconditional acceptance of this Offer to Lease, and shall be held by Bentall Limited Partnership as managing agent on behalf of the Landlord and the Deposit shall be retained
by the Landlord without interest and shall be applied firstly to the first month’s gross Rent payable under the Lease (including G.S.T.), with the balance to be held as security for the due and proper performance by the Tenant of all of the
terms, covenants and conditions of the Lease, including the payment of all Rent due thereunder. Such of the Deposit as then remains outstanding and unapplied by the Landlord shall be repaid to the Tenant within ninety
(90) sixty (60) days of the expiration of the Term of the Lease. Notwithstanding the foregoing, if the Tenant fails to execute and return the Lease to the Landlord in the form attached in accordance with Clause 8, the
Landlord may, at its sole option, terminate this Offer to Lease and/or the Lease, if applicable, whereupon the Deposit shall be retained by the Landlord as liquidated damages on account of the Tenant’s default and not as a penalty. 

 If the Landlord does not accept this Offer to Lease, the Deposit will be returned to the Tenant
without Interest. If the Tenant fails to deliver the Deposit described herein to the Landlord, the Landlord at its option may terminate this Offer to Lease and the Landlord’s obligations arising from the provisional acceptance hereof by the
Landlord, whereupon the same shall be null and void. 
  

	12.	TENANT’S CONDITIONS 

 This Offer to
Lease is subject to the following conditions precedent, all of which are for the sole benefit of the Tenant: 
  

	 	a)	The approval of the Tenant’s board of directors; 

  

	 	b)	Review and approval of the Lease; 

  

	 	c)	The Tenant finalizing a round of financing in an amount not less than Fourteen Million Five Hundred Thousand dollars ($14,500,000.00) by February 15, 2010 March 9, 2010;

  

	 	d)	The Tenant approving the scope of any work required to the Demised Premises to meet any applicable building, fire safety or handicap accessibility codes; and 

 

	 	e)	The Tenant approving the scope of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy; 

  

	 	f)	The Tenant’s review and approval of the costs associated with the acquisition and restoration (if any) of the existing Tenant’s Business and Trade Fixtures. 

(the “Tenant’s Conditions”). The Tenant’s Conditions shall be removed or waived by notice in writing to be given by the
Tenant to the Landlord, within fifteen (15) business days of the Landlord’s acceptance hereof, failing which this Offer to Lease shall be null and void and of no force or effect and the Deposit shall be forthwith returned to the Tenant.

  

	13.	LANDLORD’S CONDITION 

 This Offer to
Lease is subject to the following condition precedent, which is for the sole benefit of the Landlord: 
  

	 	a)	The Landlord’s senior executive’s final approval; 

  

	 	b)	The Landlord reviewing and approving the cost of any work required to the Demised Premises to meet any applicable building, fire safety or handicap accessibility codes; and 

 

	 	c)	The Landlord reviewing and approving the cost of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy; 

(the “Landlord’s Condition”). The Landlord’s Condition shall be removed or waived by notice in writing to be given by the
Landlord to the Tenant within fifteen (15) business days of the Landlord’s acceptance hereof, failing which this Offer for Lease shall be null and void and of no force or effect and the Deposit shall be forthwith returned to the Tenant.

	14.	PARKING 

 Throughout the Term, the Landlord shall make available for the
Tenant, to use at its option, one (1) random parking stall per 500 Rentable square feet leased in the designated parking lot at the prevailing monthly rental rate, which is currently $NII per stall per month plus applicable taxes, which
rental rate may be adjusted by the Landlord from time to time. If available, additional parking stalls shall be provided to the Tenant on a month to month recallable basis at the prevailing monthly rental rate. Notwithstanding the aforementioned the
parking stalls shall be free of charge during the Initial Term of the Lease. 
  

	15.	IMPROVEMENT ALLOWANCE 

 Provided the Tenant is not in
default, the Landlord shall provide the Tenant with an improvement allowance which shall be solely applied to fixturing and modifying the Demised Premises in the amount of $4.00 per square foot of rentable area of the Demised Premises plus GST (the
“Allowance”). Such Allowance to be payable upon fulfillment of all of the following conditions: 
  

	 	a)	The Tenant has completed all of the work required of it pursuant to the Crestwood Commerce Centre Tenant Guidelines (including but not limited to HVAC balancing and delivery of “as-built” drawings);

  

	 	b)	provision of satisfactory evidence of payment of all of the Tenant’s contractors in full by the Tenant including but not limited to a statutory declaration that all fees and payments resulting from the modification
and fixturing of the Demised Premises have been made; 

  

	 	c)	the Lease is fully executed; and 

  

	 	d)	the Tenant has fully occupied the Demised Premises and commenced business operations therein. 

All modifications to the Demised Premises are to the Tenant’s account and are subject to the Landlord’s prior written approval. It is
understood that the Landlord’s contractor shall be utilized for all changes to the mechanical, electrical and life safety systems. All design and consultants’ fees and permits are to the Tenant’s account. 

 

	16.	FIXTURING PERIOD 

 So long as the Lease has been fully
executed and the Tenant has provided the Landlord with proof of the Tenant’s insurance, the Landlord shall provide the Tenant with possession of the Demised Premises for a period of two (2) months commencing July 1, 2010
for the purposes of fixturing, modifying, preparing and occupying the Demised Premises for the Tenant’s day-to-day business. All terms of the Lease shall be applicable from the date the Tenant takes possession of the Demised Premises save for
the payment of Basic Rent, Operating Expenses and Property Taxes which shall be payable as of September 1, 2010. 

	17.	FREE BASIC RENT 

 Subject to the Tenant
being in occupancy and not in default under the Lease, the Landlord shall provide the Tenant with two (2) months of free Basic Rent. The free Basic Rent shall be applied by the Landlord against the payment of Basic Rent accruing due
during the first and second (1st and 2nd) months of the Term. 

For greater certainty, the Tenant acknowledges and agrees that notwithstanding the period of free Basic Rent set out above, the Tenant shall
pay its share of the Operating Expenses and Property Taxes and other charges provided for in the Lease in the manner set out in the Lease during the entire Term. 
  

	18.	SIGNAGE 

 The Tenant shall be permitted exterior base building signage.
The exterior signage shall be subject to the Landlord’s approval and meet all applicable local, municipal and /or federal rules and regulations having jurisdiction. The signage shall be installed at the Tenant’s sole cost and maintained to
a first class standard and the Tenant shall remove and make good such signage upon the termination of the Lease. 
  

	19.	HVAC SYSTEMS 

 The Landlord will ensure, at the Landlord’s sole cost,
that all existing HVAC systems serving the Demised Premises will be in proper working order at the Commencement Date of the Lease. 
 The
maintenance of the existing HVAC systems after the Commencement Date will be undertaken by the Landlord and charged back directly to the Tenant through the Operating Expenses for the Demised Premises. 

It is understood by the Landlord and Tenant that it is the Tenant’s sole responsibility to purchase any non-base building HVAC systems
from the existing tenant (if required) at the Tenant’s sole cost prior to the expiry of the existing tenant’s lease. 
  

	20.	OPTION TO EXTEND LEASE 

 The
Tenant, provided it is Aquinox Pharmaceuticals Inc. and is itself in occupation of the whole of the Demised Premises and provided it has not been in material default during the Term, shall have one option to extend the Term of the Lease for a
further period of five (5) years (the “Extended Term”), such option to be exercised upon twelve (12) months’ written notice to the Landlord, prior to the expiry of the Initial Term, not to be given sooner than
eighteen (18) months prior to expiry of the Initial Term. The Extended Term shall be on the same terms and conditions as the Initial Term except for Basic Rent, any free rent allowance, fixturing period, Tenant Improvement allowance or other
incentive or inducement and except for this option to extend. 
 The Basic Rent payable by the Tenant during the Extended Term shall be
negotiated and agreed upon between the parties prior to the commencement of the Extended Term based on the prevailing fair market Basic Rent at the commencement of the Extended Term for similarly improved premises of similar size, quality, use and
location in flex office/laboratory buildings of a similar size, quality and location in Richmond, BC. Failing such agreement, then within two (2) months prior to the commencement of the Extended Term, Basic Rent shall be
determined by arbitration under the provisions of the Commercial Arbitration Act of the Province of British Columbia and in accordance with this clause provided that the Basic Rent payable shall not in any case be less than that payable by the
Tenant during the last year of the Initial Term. The Tenant covenants and agrees to execute any document or instrument which the Landlord reasonably requires under this provision, including but not limited to the Landlord’s form of extension
and amending agreement prepared by the Landlord to give effect to the Extended Term. 

	21.	OVERHOLDING 

 The Tenant has no right to remain in possession of the
Premises after the end of the Term. If the Tenant remains in possession of the Premises after the end of the Term with the consent of the Landlord but without entering into a new lease or other agreement then, notwithstanding any statutory
provisions, legal presumption or reasonableness requirement to the contrary, there shall be no tacit renewal of this Lease or the Term and the Tenant shall be deemed to be occupying the Premises as a tenant from month to month (with either party
having the right to terminate such month to month tenancy at any time on 30 days’ notice, whether or not the date of termination is at the end of a rental period) at a monthly Basic Rent payable in advance on the first day of each month equal
to 150% the monthly amount of Basic Rent payable during the last month of the Term (or which would have been payable but for any discount or rent-free period applicable to such last month) and otherwise upon the same terms, covenants and conditions
as in this Lease insofar as these are applicable to a monthly tenancy and, for greater certainty, including liability for all Additional Rent. 
  

	22.	ADDITIONAL CONSIDERATION 

 If this Offer to Lease contains
one or more subject conditions in favor of either party hereto, then in respect of each such subject condition the party not receiving the benefit of such subject condition hereby acknowledges the receipt of $10.00 and other good and valuable
consideration to be retained by such party as consideration for keeping this Offer to Lease open for acceptance until the time for removal or waiver of such subject condition has expired. 

 

	23.	AGENCY DISCLOSURE 

 In accordance with the Rules
established by the Real Estate Council pursuant to the Real Estate Services Act of British Columbia, Bentall Limited Partnership (the “Landlord’s Agent”) disclosed that it is representing the Landlord in respect of this
transaction, and will receive remuneration from the Landlord for such representation. 
 Kevin Nelson of CB Richard Ellis Limited (the
“Tenant’s Agent”) discloses that it is representing the Tenant in respect of this transaction and will receive remuneration from the Landlord for such representation in accordance with the Agent’s agreement with the Landlord.

  

	24.	PRIVACY STATEMENT 

 The Tenant consents to the Landlord
collecting, using and disclosing the personal information in this Offer to Lease and the Lease or otherwise collected by or on behalf of the Landlord or its agents, affiliates, or service providers, for the purposes of: 

 

	 	a)	determining the suitability of the Tenant, both for the Term and any renewal or extension thereof; 

  

	 	b)	taking action for collection of Rent in the event of default by the Tenant; and 

  

	 	c)	facilitating the pre-authorized payment plan contained in this Offer to Lease and the Lease. 

 Consent under this Offer to Lease and the Lease includes consent to the disclosure by the
Landlord of such information to credit agencies, collection agencies and existing or potential lenders, investors and purchasers. 
 The
Tenant also consents to and confirms its authority and that it has all necessary consents to enable the collection, use, and disclosure, as provided in this privacy statement, of personal information about employees of the Tenant and other
individuals whose personal information is provided to or collected by or on behalf of the Landlord in connection with this Offer to Lease and the Lease. 

To the extent the Landlord uses a managing agent, consent under this Offer to Lease and the Lease includes consent for the managing agent to do
all such things on behalf of the Landlord. The Landlord’s current managing agent to Bentall Limited Partnership (“Bentall”). The Tenant also consents to the terms of Bentall’s Privacy Policy, a copy of which is available at
www.bentall.com, and to the collection, use and disclosure of personal information in accordance with such privacy policy. 
  

	25.	NO REPRESENTATIONS 

 There are no representations,
warranties or agreements made by the Landlord to the Tenant except as specifically set out in this Offer to Lease. 
  

	26.	NO ASSIGNMENT 

 The Tenant shall not assign its interest in
this Offer to Lease without the prior written consent of the Landlord, which consent may be withheld in the Landlord’s sole discretion. 
  

	27.	CAPITALIZED TERMS 

 Any capitalized terms used in this
Offer to Lease and not defined herein and/or in Appendix 1 attached hereto shall have the meaning set out in the Lease attached as Schedule “B” hereto. 
  

	28.	FACSIMILE EXECUTION 

 The parties agree that this Offer to
Lease may be executed by facsimile and the parties agree to be bound by the facsimile copies. 
  

	29.	ACCEPTANCE 

 This Offer to Lease is irrevocable and open for acceptance by
the Tenant for three (3) business days from the date offered by the Landlord as set out below after which time, if not accepted by the Tenant, it shall be null and void. 

 

	30.	NO OFFER 

 The Landlord shall not be deemed to have made an
offer to the Tenant by furnishing to the Tenant a copy of this Offer to Lease with particulars inserted and, notwithstanding that the Deposit may be received by the Landlord when this Offer to Lease is received by it for signature, no contractual or
other rights shall exist or be created between the Landlord and the Tenant until such time as all parties to this Offer to Lease have executed this Offer to Lease and copies thereof have been delivered to each party. If this Offer to Lease contains
subject conditions in favor of either party hereto, (a) no contractual or other rights shall exist or be created between the Landlord and the Tenant until such time as such subject conditions have been removed or waived save as

 
expressly set out herein, and (b) the Landlord may continue to consider and accept other offers for the Demised Premises (or any portion thereof) until such time as all such subject
conditions have been removed or waived. 
  

	31.	TIME OF ESSENCE 

 Time is of the essence of
this Offer to Lease and each part of it. 
 OFFERED by the Landlord, this 15th
26th day of February, 2010 at Vancouver, in the Province of British Columbia. 
  

					
	 SUN LIFE ASSURANCE COMPANY OF CANADA

by its duly authorized Agent
 BENTALL LIMITED
PARTNERSHIP
 By its General Partner, Bentall G.P. Ltd.
	    	
			
	PER:	 	 

	    	
		 	(AUTHORIZED SIGNATORY)	    	
			
	PER:	 	  
	    	
		 	(AUTHORIZED SIGNATORY)	    	

 ACCEPTED by the Tenant, this 19th 3rd day of February March, 2010 at Vancouver, in the Province of British Columbia. 
  

					
	AQUINOX PHARMACEUTICALS INC.	    	
			
	PER:	 	 

	    	
		 	(AUTHORIZED SIGNATORY)	    	 C/S

	  
 PER:
	 	  
	    
		 	(AUTHORIZED SIGNATORY)	    	

 APPENDIX 1 

DEFINITIONS 
 For greater certainty, for
the purposes of the Lease, the following terms used in this Offer to Lease shall have the meanings set out below. 
  

	 	a)	“Basic Rent” shall mean the fixed monthly payments due and payable under clause 3 of this Offer to Lease, whether referred to in the Lease as “Basic Rent”, “Minimum Rent” or otherwise;

  

	 	b)	“Demised Premises” shall mean the premises to be demised to the Tenant pursuant this Offer to Lease, whether referred to in the Lease as “Demised Premises”, “Leased Premises”,
“Premises” or otherwise: 

  

	 	c)	“Operating Expenses” shall mean the amounts payable by the Landlord and reimbursable by the Tenant under the Lease on account of the operation, maintenance, administration, management and repair of the Demised
Premises and the building in which the Demised Premises are situated, whether therein referred to as “Operating Expenses”, “Operating Costs”, “Common Costs” or otherwise; 

 

	 	d)	“Landlord” shall mean the Landlord herein defined, whether referred to in the Lease as “Landlord”, “Lessor” or otherwise; 

 

	 	e)	“Property Taxes” shall mean the amounts payable by the Landlord and reimbursable by the Tenant under the Lease on account of real property taxes, duties and assessments imposed against the lands and building
where the Demised Premises are situated, whether therein referred to as “Property Taxes”, “Municipal Taxes”, “Taxes” or otherwise; 

  

	 	f)	“Rent” shall mean all amounts payable by the Tenant pursuant to the provisions of this Offer to Lease or of the Lease; and 

 

	 	g)	“Tenant” shall mean the Tenant herein defined, whether referred to in the Lease as ‘“Tenant”, “Lessee” or otherwise. 

 SCHEDULE “A” 

 
 

 

 SCHEDULE “A” 

 
 

 

 SCHEDULE “B” 

LEASE 
 BETWEEN 

SUN LIFE ASSURANCE COMPANY OF CANADA 

(LANDLORD) 
 - AND -

 * 
 (TENANT)

  
  

Premises: 
 * 

 LEASE 

BETWEEN 
 SUN LIFE
ASSURANCE COMPANY OF CANADA 
 (LANDLORD) 

- AND - 
 AQUINOX
PHARMACEUTICALS INC. 
 (TENANT) 
  

 
 Premises:

 Part of Building 400, 5600 Parkwood Way 

Richmond, British Columbia 

 TABLE OF CONTENTS 

 

							
	ARTICLE 1 - BASIC TERMS	  	1
				
		 	1.1	 	Basic Terms	  	1
		
	ARTICLE 2 - SPECIAL PROVISIONS	  	1
				
		 	2.1	 	Privacy Statement	  	1
		
	ARTICLE 3 - DEFINITIONS AND INTERPRETATION	  	3
				
		 	3.1	 	Definitions	  	3
		 	3.2	 	Entire Agreement, Amendments, Waiver	  	7
		 	3.3	 	Acceptance and Application of Rent	  	7
		 	3.4	 	General Rules of Interpretation	  	7
		 	3.5	 	Successors	  	7
		
	ARTICLE 4 - GRANT AND TERM	  	7
				
		 	4.1	 	Term, Demise	  	7
		 	4.2	 	Delay in Delivery	  	8
		 	4.3	 	Acceptance	  	8
		 	4.4	 	Quiet Enjoyment	  	8
		
	ARTICLE 5 - RENT	  	8
				
		 	5.1	 	Basic	  	8
		 	5.2	 	Additional Rent	  	8
		 	5.3	 	Adjustment Due to Measurement	  	8
		 	5.4	 	Payment of Rent	  	8
		 	5.5	 	Payment of Additional Rent	  	9
		 	5.6	 	Rent Deposit	  	10
		 	5.7	 	Security Deposit	  	10
		 	5.8	 	Net	  	10
		
	ARTICLE 6 - OPERATING COSTS AND TAXES	  	10
				
		 	6.1	 	Property Taxes Payable by Landlord	  	10
		 	6.2	 	Property Taxes Payable by Tenant	  	10
		 	6.3	 	Business Taxes and Other Taxes of Tenant	  	11
		 	6.4	 	Assessment Appeals	  	11
		 	6.5	 	Operating	  	11
		 	6.6	 	Limitations on Operating Costs	  	12
		 	6.7	 	Adjustments of Operating Costs	  	13
		 	6.8	 	Reduction or Control of Operating Costs	  	13
		
	ARTICLE 7 - HVAC, UTILITIES AND OTHER LANDLORD SERVICES	  	13
				
		 	7.1	 	Heating	  	13
		 	7.2	 	Electricity and Other	  	13
		 	7.3	 	Special HVAC Services and Utilities and Excess Quantities	  	14
		 	7.4	 	Additional Services Provided by Landlord	  	14
		 	7.5	 	Telecommunications	  	14
		 	7.6	 	Signs and Premises Identification	  	14
		
	ARTICLE 8 - OPERATION, CONTROL AND MAINTENANCE BY LANDLORD	  	14
				
		 	8.1	 	Operation of the Building by Landlord	  	14
		 	8.2	 	Control of the Project by Landlord	  	14
		 	8.3	 	Name of Building	  	15
		 	8.4	 	Maintenance and Repair by Landlord	  	15
		 	8.5	 	Access by Landlord	  	15
		 	8.6	 	Relocation	  	15
		
	ARTICLE 9 - MAINTENANCE AND ALTERATIONS BY TENANT	  	16
				
		 	9.1	 	Maintenance and Repair by Tenant	  	16
		 	9.2	 	Alterations by Tenant	  	17
		 	9.3	 	Removal of Improvements and Fixtures	  	18
		 	9.4	 	Liens	  	18
		 	9.5	 	Notice by Tenant	  	18
		
	ARTICLE 10 - USE OF PREMISES	  	18
				
		 	10.1	 	Permitted Use	  	18
		 	10.2	 	Compliance with Laws	  	19
		 	10.3	 	Nuisance, Interference, Waste, Overloading	  	19
		 	10.4	 	Access	  	19
		 	10.5	 	Rail	  	19
		 	10.6	 	Rules and Regulations	  	19

							
	ARTICLE 11 - INSURANCE, LIABILITY AND INDEMNITY	  	20
				
		 	 11.1
	 	Tenant’s Insurance	  	20
		 	 11.2
	 	Form of Tenant Policies	  	20
		 	 11.3
	 	Certified Copies and Notice to Landlord	  	20
		 	 11.4
	 	Landlord’s Insurance	  	21
		 	 11.5
	 	Insurance Risks	  	21
		 	 11.6
	 	Release of Landlord	  	21
		 	 11.7
	 	Release of Tenant	  	22
		 	 11.8
	 	Indemnity by Tenant	  	22
		
	ARTICLE 12 - ASSIGNMENT, SUBLETTING AND OTHER TRANSFERS	  	22
				
		 	 12.1
	 	Transfers	  	22
		 	 12.2
	 	Tenant’s Notice, Landlord’s Right to Terminate	  	23
		 	 12.3
	 	Conditions of Transfer	  	23
		 	 12.4
	 	Corporate Records	  	24
		 	 12.5
	 	Permitted Transfers	  	24
		 	 12.6
	 	No Advertising	  	24
		 	 12.7
	 	Sales or Dispositions by Landlord	  	24
		
	ARTICLE 13 - LANDLORD FINANCING AND STATUS CERTIFICATES	  	24
				
		 	 13.1
	 	Subordination and Postponement	  	24
		 	 13.2
	 	Attornment	  	25
		 	 13.3
	 	Status Certificates	  	25
		 	 13.4
	 	Reliance	  	25
		
	ARTICLE 14 - DAMAGE, DESTRUCTION, DEMOLITION, EXPROPRIATION	  	25
				
		 	 14.1
	 	Damage to Premises	  	25
		 	 14.2
	 	Abatement	  	26
		 	 14.3
	 	Termination Rights	  	26
		 	 14.4
	 	Landlord’s Rights on Rebuilding	  	26
		 	 14.5
	 	Landlord’s Demolition Rights	  	26
		 	 14.6
	 	Expropriation	  	26
		
	ARTICLE 15 - DEFAULT AND REMEDIES	  	26
				
		 	 15.1
	 	Events of Default	  	26
		 	 15.2
	 	Remedies	  	27
		 	 15.3
	 	Distress	  	28
		 	 15.4
	 	Interest and Costs	  	28
		 	 15.5
	 	Remedies Cumulative	  	28
		
	ARTICLE 16 - MISCELLANEOUS	  	28
				
		 	 16.1
	 	Relationship of Parties	  	28
		 	 16.2
	 	Consent Not to be Unreasonably Withheld	  	28
		 	 16.3
	 	Overholding	  	28
		 	 16.4
	 	Registration	  	28
		 	 16.5
	 	Unavoidable Delay	  	29
		 	 16.6
	 	Decisions of Experts; Arbitration	  	29
		 	 16.7
	 	Notices	  	29
		 	 16.8
	 	Confidentiality	  	29
		 	 16.9
	 	Power, Capacity and Authority	  	29
		 	 16.10
	 	Liability of Landlord	  	29
			
		 	 SCHEDULE “A” BUILDING - SPECIFIC INFORMATION
	  	XXXI
		 	 SCHEDULE “B” SKETCH SHOWING PREMISES
	  	XXXII
		 	 SCHEDULE “C” RULES AND REGULATIONS
	  	XXXIV
		 	 SCHEDULE “D” INDEMNITY AGREEMENT
	  	XXXV
		 	 SCHEDULE “E” CONDITION OF PREMISES
	  	XXXVII
		 	 SCHEDULE “F” ENVIRONMENTAL MATTERS
	  	XL

 THIS LEASE, dated April 8, 2010, is made by the Landlord and the Tenant named in it who, in consideration of
the rents, covenants and agreements contained in this Lease, covenant and agree as follows: 
 ARTICLE 1 - BASIC TERMS 

 

	1.1	Basic Terms 

  

							
	(a)	  	(i)	 	Landlord:	  	SUN LIFE ASSURANCE COMPANY OF CANADA
				
		  	(ii)	 	Address of Landlord:	  	 c/o Bentall Limited Partnership
 Suite 1800-1055
Dunsmuir Street,
 P.O. Box 49001, Vancouver, B.C. V7X 1B1

				
	(b)	  	(i)	 	Tenant:	  	AQUINOX PHARMACEUT1CALS INC.
				
		  	(ii)	 	Address of Tenant:	  	 Part of Building 400, 5600 Parkwood Way

Richmond, British Columbia

				
	(c)	  	(i)	 	Indemnifier:	  	Not Applicable
				
		  	(ii)	 	Address of lndemnifier:	  	Not Applicable
				
		  	(iii)	 	Indemnity Provisions:	  	See Schedule “D”
			
	(d)	  	Project, if applicable	  	Crestwood Commerce Centre
			
	(e)	  	Building:	  	Building 400
			
	(f)	  	Premises:	  	Part of Building 400
			
	(g)	  	Rentable Area of Premises:	  	Approximately 15,729 square feet
				
	(h)	  	(i)	 	Term:	  	Five (5) years
				
		  	(ii)	 	Commencement Date:	  	September 1, 2010
				
		  	(iii)	 	Expiry Date:	  	August 31, 2015
			
	(i)	  	Fixturing Period	  	Commencing July 1, 2010, provided this
		  		 		  	Lease is fully executed and the Tenant has provided the Landlord with proof of insurance and ending August 31, 2010
			
	(j)	  	Basic Rent:	  	

  

													
	 Time Period
	 	Per Sq. Ft. of
Rentable Area of the
Premises/Year	 	 	Per Year	 	 	Per Month	 
	 September 1, 2010 to August 31, 2012
	 	$	9.75	  	 	$	153,357.75	  	 	$	12,779.81	  
	 September 1, 2012 to August 31, 2013
	 	$	10.50	  	 	$	165,154.50	  	 	$	13,762.88	  
	 September 1, 2013 to August 31, 2015
	 	$	11.25	  	 	$	176,951.25	  	 	$	14,745.94	  

  

							
				
	(k)	  	(i)	 	Rent Deposit referred to in section 5.6:	  	*
				
		  	(ii)	 	Security Deposit referred to in Section 5.7:	  	$42,778.68
			
	(l)	  	Permitted Use:	  	Research laboratory with related business offices

 ARTICLE 2 - SPECIAL PROVISIONS 

 

	2.1	Construction and Completion of the Premises 

 Schedule “E’ attached hereto sets out the
respective obligations of the Landlord and Tenant with respect to the initial construction and completion of the Premises for the Tenant’s day to day business prior to the Commencement Date. 

  
 1 

	2.2	Free Basic Rent 

 Notwithstanding anything to the contrary herein contained, but subject to the Tenant
being in occupancy and not in default, the Landlord shall provide the Tenant with two (2) months free Basic Rent. The free Basic Rent shall be applied by the Landlord against the payment of Basic Rent accruing due during the calendar months of
September 2010 and October 2010 of the Term and Sections 1.1(j) and 5.1 hereto shall be deemed to have been amended accordingly. For greater certainty, the Tenant acknowledges and agrees that notwithstanding the period of free Basic Rent set out
above it shall remain responsible for payments of all other amounts owing under this Lease. 
  

	2.3	Tenant Improvement Allowance 

 Provided the Tenant is not in default, the Landlord shall provide the
Tenant with an improvement allowance which shall be solely applied to fixturing and modifying the Premises in the amount of $4.00 per square foot of Rentable Area of the Premises plus Rental Taxes (the “Allowance”). Such Allowance to be
payable upon fulfillment of all of the following conditions: 
  

	(a)	the Tenant has completed all of the work required of it pursuant to Section 9.2 and the Crestwood Commerce Centre (including but not limited to HVAC balancing and delivery of “as built” drawings);

  

	(b)	provision of satisfactory evidence of payment of all of the Tenant’s contractors in full by the Tenant including but not limited to a statutory declaration that all fees and payments resulting from the
modification and fixturing of the Premises have been made; 

  

	(c)	the Lease is fully executed; and 

  

	(d)	the Tenant has fully occupied the Premises and commenced business operations therein. 

 All
modifications to the Premises are to the Tenant’s account and are subject to the Landlord’s prior written approval. It is understood that the Landlord’s contractor shall be utilized for all changes to the mechanical, electrical and
life safety systems. All design and consultants’ fees and permits are to the Tenant’s account. 
  

	2.4	Tenant’s Parking 

 Throughout the Term, the Landlord shall make available for the Tenant, to use
at its option, parking in the designated parking lot on the basis of one (1) random parking stall per 500 square feet of Rentable Area leased by the Tenant. Monthly rental for the said parking stalls shall be based on the prevailing monthly
rental rate, which is shall be free of charge during the initial Term. Access to any additional parking stalls shall be on an “as available, month to month” basis in the designated parking lot at the prevailing monthly rental rate, which
rental rate may be adjusted by the Landlord from time to time. During any renewal or extension of the Term, the monthly rental rate shall be based on the prevailing monthly rental rate per random parking stall per month plus applicable taxes, which
monthly rental rate may be adjusted by the Landlord from time to time. 
  

	2.5	Tenant’s Option to Extend Term 

 The Tenant, provided it is Aquinox Pharmaceuticals Inc. and is
itself in occupation of the whole of the Premises and provided it has not been in material default during the Term, shall have one option to extend the Term of the Lease for a further period of five (5) years (the “Extended Term”),
such option to be exercised upon twelve (12) months’ written notice to the Landlord, prior to the expiry of the initial Term, not to be given sooner than eighteen (18) months prior to expiry of the initial Term. The Extended Term
shall be on the same terms and conditions as the initial Term except for Basic Rent, any free rent allowance, fixturing period, Tenant improvement allowance or other incentive or inducement and except for this option to extend. 

The Basic Rent payable by the Tenant during the Extended Term shall be negotiated and agreed upon between the parties prior to the commencement of the
Extended Term based on the prevailing fair market Basic Rent at the commencement of the Extended Term for similarly improved premises of similar size, quality, use and location in office/laboratory buildings of a similar size, quality and location
in Richmond, British Columbia. Failing such agreement, then within two (2) months prior to the commencement of the Extended Term, Basic Rent shall be determined by arbitration under the provisions of the Commercial Arbitration
Act (British Columbia) and in accordance with this clause provided that the Basic Rent payable shall not in any case be less than that payable by the Tenant during the last year of the initial Term. The Tenant covenants and agrees to
execute any document or instrument which the Landlord reasonably requires under this provision, including but not limited to the Landlord’s form of extension and amending agreement prepared by the Landlord to give effect to the Extended Term.

  
 2 

	2.6	Privacy Statement 

 The Tenant consents to the Landlord collecting, using and disclosing the personal
information in this Lease or otherwise collected by or on behalf of the Landlord or its agents, affiliates, or service providers, for the purposes of: 
  

	(a)	determining the suitability of the Tenant, both for the Term and any renewal or extension thereof; 

  

	(b)	taking action for collection of Rent in the event of default by the Tenant; and 

  

	(c)	facilitating the pre-authorized payment plan pursuant to Section 5.4(d). 

 Consent under this
Lease includes consent to the disclosure by the Landlord of such information to credit agencies, collection agencies and existing or potential lenders, investors and purchasers. 

The Tenant also consents to and confirms its authority and that it has all necessary consents to enable the collection, use, and disclosure, as provided in
this privacy statement, of personal information about employees of the Tenant and other individuals whose personal information is provided to or collected by or on behalf of the Landlord in connection with this Lease. 

To the extent the Landlord uses a managing agent, consent under this Lease includes consent for the managing agent to do all such things on behalf of the
Landlord. The Landlord’s current managing agent is Bentall Limited Partnership (“Bentall”). The Tenant also consents to the terms of Bentall’s Privacy Policy, a copy of which is available at www.bentall.com and to the
collection, use and disclosure of personal information in accordance with such privacy policy. 
 ARTICLE 3 - DEFINITIONS AND
INTERPRETATION 
  

	3.1	Definitions 

  

	 	(a)	“Additional Rent” means all amounts in addition to Basic Rent payable by the Tenant to the Landlord or any other Person pursuant to this Lease, other than Rental Taxes (except as provided in
Section 15.l(a)). 

  

	 	(b)	“Alterations” has the meaning set out in Section 9.2. 

  

	 	(c)	“Applicable Laws” means all statutes, laws, by-laws, regulations, ordinances, orders and requirements of governmental or other public authorities having jurisdiction in force from time to time.

  

	 	(d)	“Arbitration” if that term is used in this Lease, has the meaning given to it in Section 16.6. 

  

	 	(e)	“Basic Rent” means the rent payable pursuant to Section 5.1. 

  

	 	(f)	“Building” means the Building Lands and the building and all other structures, improvements, facilities and appurtenances that have been or will be constructed on the Building Lands (above, at or below
grade), including the Building Systems and the Common Areas and Facilities, all as may be altered, expanded, reduced or reconstructed from time to time. 

  

	 	(g)	“Building Lands” means the lands described in Part 1 of Schedule “A” (or such portion thereof as may be designated by the Landlord from time to time), as altered, expanded or reduced from time
to time. 

  

	 	(h)	“Building Systems” means at any time: (i) all heating, ventilating and air-conditioning and other climate control systems and other systems, services, installations and facilities installed in or
servicing all or any part of the Building or Project including, without limitation, the following systems, services, installations and facilities: mechanical (including plumbing, sprinkler, drainage and sewage), electrical and other utilities,
lighting, sprinkler, life safety, computer (including environmental, security and lighting control), and ice and snow melting; (ii) all machinery, appliances, equipment, apparatus, components, computer software and appurtenances forming pat of
or used for or in connection with any of such systems, services, installations and facilities including, but not limited to, boilers, motors, generators, fans, pumps, pipes, conduits, ducts, valves, wiring, meters and controls, and the structures
and shafts housing and enclosing any of them; and (iii) all Landlord owned or controlled telecommunications facilities, installations and equipment. 

  

	 	(i)	“Business Day” means any day which is not a Saturday, Sunday or a day observed as a holiday under the Applicable Laws in the province in which the Building is situate. 

 

	 	(j)	“Business Taxes” means all taxes, rates, duties, levies, assessments, licence fees and other charges in respect of the use or occupancy of, or any business carried on by, tenants or other occupants of
the Project. 

  

	 	(k)	 “Capital Tax”, if applicable, means the amount from time to time reasonably allocated by the Landlord to the Project, of any tax or
taxes at any time payable under the legislation of a province or to any political subdivision within a province by the Landlord, based upon or computed by reference to the paid-up capital or surplus or value of real estate portfolio or place of
business of 

  
 3 

	 	
the Landlord as determined for the purposes of that tax, and for the purposes of this definition, the word “Landlord” includes, severally, each of the persons or firms that then
constitute the Landlord. 

  

	 	(l)	“Change of Control” means, in the case of any corporation or partnership, the transfer or issue by sale, assignment, subscription, transmission on death, mortgage, charge, security interest, operation
of law or otherwise, of any shares, voting rights or interest which would result in any change in the effective control of such corporation or partnership, unless such change occurs as a result of trading in the shares of a public corporation listed
on a recognized stock exchange in Canada or the United States. 

  

	 	(m)	“Commencement Date” means the date set out in or determined pursuant to Section l.l(h)(ii), subject to Section 42. 

 

	 	(n)	“Common Areas and Facilities” means those areas, facilities, improvements, installations and equipment in or around the Building or Project existing from time to time that are provided or designated
from time to time by the Landlord for use in common by the Landlord and/or more than one tenant of the Building or Project or their respective sublessees, agents, employees, customers, invitees or licensees, whether or not those areas are open to
the general public or to all tenants of the Building or Project including, without limitation, the Building Systems, outdoor landscaping and landscaped areas, electrical, telephone, meter, valve and mechanical rooms, parking facilities, driveways,
laneways and ramps and sidewalks, parks and other municipal facilities for which the Landlord directly or indirectly is subject to obligations in its capacity as owner of the Building or Project or an interest in it, all as may be altered, expanded,
reduced, reconstructed or relocated from time to time. 

  

	 	(o)	“Contaminant” means any solid, liquid, gas, offensive odour, heat, sound, vibration or radiation that results directly or indirectly from human activities that may cause an adverse environmental effect.

  

	 	(p)	“Default Rate” means the lesser of: (i) the Prime Rate plus five percent per annum; and (ii) the maximum rate permitted by Applicable Laws, calculated and compounded monthly not in advance.

  

	 	(q)	“Early Termination” has the meaning set out in Section 12.3. 

  

	 	(r)	“Environmental Claim” means any investigation, notice, violation, demand, activities, suit, injunction, order, consent decree, penalty, fine, lien, proceeding or claim arising, pursuant to, or in
connection with, an actual or alleged violation of any Environmental Laws or the presence or removal of any hazardous, dangerous, toxic or harmful substances brought or permitted on the Project by the Tenant. 

 

	 	(s)	“Environmental Laws” means all federal, provincial and local statutes, laws, ordinances, regulations and orders relating to environmental matters. 

 

	 	(t)	“Event of Default” has the meaning set out in Section 15.1. 

  

	 	(u)	“Expert” means any architect, designer, engineer, land surveyor, accountant or other professional consultant appointed by the Landlord who, in the opinion of the Landlord, is qualified to perform the
function for which he or she is retained. 

  

	 	(v)	“Expiry Date” means the date set out in or determined pursuant to Section 1.1(h)(iii), subject to Section 42. 

 

	 	(w)	“Fiscal Year” means the fiscal period(s) as designated by the Landlord from time to time. The Landlord may have different Fiscal Years for any one or more of the components of Additional Rent.

  

	 	(x)	“Fixturing Period” means the period, if any, specified in Section 1.1(i) provided to the Tenant to perform its Fixturing of the Premises and to carry on business. During any Fixturing Period
the Tenant shall be entitled to occupy the Premises in accordance with all terms of this Lease (including the Tenant’s obligations to pay for all utilities and services), but shall not be obligated to pay Basic Rent, the Tenants share of
Property Taxes or the Tenant’s share of Operating Costs. 

  

	 	(y)	“Indemnifier” means the Person, if any, identified in Section 1.1(c)(i), and if there is more than one such Person, it means each such Person. 

 

	 	(z)	“Lands” means the Building Lands, or, if applicable, the Project Lands. 

  

	 	(aa)	“Large Corporations Tax” means the amount from time to time reasonably allocated by the Landlord to the Project, of the tax known as the Large Corporations Tax, if applicable, and of any similar or
replacement tax or taxes at any time payable under the legislation of Canada based upon or computed by reference to the paid-up capital or surplus or value of real estate portfolio or place of business of the Landlord as determined for the purposes
of that tax, and for the purposes of this definition, the word “Landlord” includes, severally, each of the persons or firms that then constitute the Landlord. 

  
 4 

	 	(bb)	“Lease” means this lease, including all schedules, as it may be amended. 

  

	 	(cc)	“Lease Year” means: (i) in the case of the first Lease Year, the period beginning on the Commencement Date and ending on the last day of the 12th consecutive full month after the expiry of the
calendar month in which the Commencement Date occurs (except that if the Commencement Date occurs on the first day of a calendar month, the first Lease Year shall end on the day prior to the first anniversary of the Commencement Date) and;
(ii) in the case of each subsequent Lease Year, consecutive 12 month periods, provided that the final Lease Year shall end on the last day of the Term. 

  

	 	(dd)	“Leasehold Improvements” means all alterations, fixtures and improvements in or serving the Premises made from time to time by or on behalf of the Tenant or any prior occupant of the Premises including,
without limitation, mezzanines, internal stairways, doors, hardware, vaults, partitions (excluding moveable partitions), lighting fixtures, non-Building standard window coverings and wall-to-wall carpeting (excluding carpeting laid over a finished
floor and removable without damage to such floor), but excluding trade fixtures and furniture and equipment not of the nature of fixtures. 

  

	 	(ee)	“Measurement Standards” means the measurement standards set out in Schedule “A”. 

  

	 	(ff)	“Mortgage” means any mortgage, charge or security instrument (including a deed of trust or mortgage securing bonds) and all extensions, renewals, modifications, consolidations and replacements of any
such item which may now or hereafter affect the Project or any part of it. 

  

	 	(gg)	“Mortgagee” means the mortgagee, chargee or other secured party (including a trustee for bondholders), as the case may be, who from time to time holds a Mortgage. 

 

	 	(hh)	“Notice” has the meaning set out in Section 16.7. 

  

	 	(ii)	“Operating Costs” has the meaning set out in Section 6.5. 

  

	 	(jj)	“Permitted Transferee” means any entity which is an affiliate (as that term is deemed as of the date of this Lease in the Canada Business Corporations Act) of the original named Tenant, and only for so
long as it remains an affiliate of such original named Tenant. 

  

	 	(kk)	“Permitted Use” means the use set out in Section 1.1(l). 

  

	 	(ll)	“Person” means any individual, partnership, corporation, trust, trustee or other entity or any combination of them. 

 

	 	(mm)	“Premises” means that part of the Building identified in Section 1.l(f) and approximately shown cross-hatched on Schedule “B”, extending to: (i) the interior face of all
exterior walls, doors and windows; (ii) the interior face of all interior walls, doors and windows separating the Premises from Common Areas and Facilities or from adjoining leaseable premises; and (iii) the top surface of the structural
subfloor and the bottom surface of the structural ceiling. Any Building Systems located in the Premises do not form part of the Premises. 

  

	 	(nn)	“Prime Rate” means the annual rate of interest announced from time to time by the Canadian chartered bank from time to time chosen by the Landlord as the daily rate of interest used by such bank as a
reference rate in setting rates of interest for Canadian dollar commercial loans and commonly referred to by such bank as its Canadian “prime rate”. 

  

	 	(oo)	“Project”, if applicable, means the Project Lands and the buildings and all other structures, improvements, facilities and appurtenances that have been or will be constructed on the Project Lands
(above, at or below grade), including the Building Systems and the Common Areas and Facilities, all as may be altered, expanded, reduced or reconstructed from time to time; provided that if the Landlord determines Project is not applicable,
references in this Lease to Project shall be deemed to be references to Building. 

  

	 	(pp)	“Project Lands”, if applicable, means the lands described in Part 2 of Schedule “A” (or such portion thereof as may be designated by the Landlord from time to time), as altered, expanded or
reduced from time to time; provided that if Project Lands are not applicable, references in this Lease to Project Lands shall be deemed to be references to Building Lands. 

 

	 	(qq)	“Property Taxes” means the aggregate of all taxes, rates, duties, levies, fees, charges (including local improvement charges) and assessments whatsoever, imposed, assessed, levied, rated or charged
against or in respect of the Project (or any part of the Project) from time to time by any competent taxing or assessing authority, whether school, municipal, regional, provincial, federal, or otherwise, and any taxes or other amounts which are
imposed in lieu of, or in addition to, any of the foregoing whether or not in existence on the Commencement Date and whether of the foregoing character or not, but excluding taxes on the income or profits of the Landlord except to the extent that
they are levied in lieu of the foregoing. 

  
 5 

	 	(rr)	“Proportionate Share” means a fraction which has: (i) as its numerator, the Rentable Area of the Premises, and (ii) as its denominator, the Rentable Area of the Project. 

 

	 	(ss)	“Purchaser” has the meaning set out in Section 13.2. 

  

	 	(tt)	“Rent” means all Basic Rent and Additional Rent. 

  

	 	(uu)	“Rent Deposit” means the amount specified in Section 1.1(k)(i). 

  

	 	(vv)	“Rentable Area” means: (i) in the case of the Premises and any other premises included in the Project, the area of all floors of such premises; and (ii) in the case of the Project the
aggregate of the area of all premises in the Project that are rented, or designated or intended by the Landlord to be rented (whether actually rented or not), all determined in accordance with the Measurement Standards. The Rentable Area of the
Premises, the Project or any part thereof may be adjusted from time to time to reflect any alteration, expansion, reduction, recalculation or other change. 

  

	 	(ww)	“Rental Taxes” means any tax or duty imposed upon either the Landlord or the Tenant which is measured by or based in whole or in part directly upon the Rent payable under this Lease or in respect of the
rental or rental value of premises under this Lease whether existing at the date of this Lease or hereafter imposed by any governmental authority including, without limitation, goods and services tax, harmonized sales tax, value added tax, business
transfer tax, sales tax, federal sales tax, excise taxes or duties or any tax similar to the foregoing. 

  

	 	(xx)	“Required Conditions” means that: 

  

	 	(i)	the Tenant is the original named Tenant or a Permitted Transferee, has not undergone a Change of Control and is itself in occupation of and carrying on business from the whole of the Premises; and 

 

	 	(ii)	the Tenant has paid all Basic Rent and Additional Rent as and when due and has not been in persistent default and is not in material default under this Lease. 

 

	 	(yy)	“Restoration” has the meaning set out in Section 9.3. 

  

	 	(zz)	“Restoration Date” has the meaning set out in Section 9.3. 

  

	 	(aaa)	“Rules and Regulations” means the Rules and Regulations annexed hereto as Schedule “C” together with any amendments, deletions and additions made by the Landlord from time to time pursuant to
Section 10.4, all of which shall form part of this Lease. 

  

	 	(bbb)	“Security Deposit” means the amount specified in Section 1.1(k)(ii). 

  

	 	(ccc)	“Statement” has the meaning set out in Section 5.5(b). 

  

	 	(ddd)	“Structural Components” means those parts of the Project consisting of the footings and foundations, structural columns and beams, structural subfloors, and bearing walls. 

 

	 	(eee)	“Term” means the period specified in Section 1.1(h)(i). 

  

	 	(fft)	“Transfer” means all or any of the following, whether by conveyance, written agreement or otherwise: (i) an assignment of this Lease in whole or in part; (ii) a sublease of all or any part of
the Premises; (iii) the sharing or transfer of any right of use or occupancy of all or any part of the Premises; (iv) any mortgage, charge or encumbrance of this Lease or the Premises or any part of the Premises or other arrangement under
which either this Lease or the Premises become security for any indebtedness or other obligation; and (v) a Change of Control, and includes any transaction or occurrence whatsoever (including, but not limited to, expropriation, receivership
proceedings, seizure by legal process and transfer by operation of law), which has changed or might change the identity of the Person having use or occupancy of any part of the Premises. 

 

	 	(ggg)	“Transferee” means the Person to whom a Transfer is or is to be made. 

  

	 	(hbh)	“Transfer Application Fee” means such fee as the Landlord may in its sole discretion from time to time determine to be chargeable by it for considering whether to consent to a Transfer plus all costs
incurred including legal fees, credit checks and all disbursements in respect of a proposed Transfer. 

  

	 	(iii)	“TSP” has the meaning set out in Section 7.5. 

  

	 	(jjj)	“Unavoidable Delay” has the meaning set out in Section 16.5. 

  
 6 

	3.2	Entire Agreement, Amendments, Waiver 

 This Lease contains the entire agreement between the parties with
respect to the subject matter of this Lease and there are no other agreements, promises or understandings, oral or written, between the parties in respect of this subject matter. This Lease may be amended only by written agreement between the
Landlord and the Tenant. No electronic communications between the parties will have the effect of amending this Lease. No provisions of this Lease shall be deemed to have been waived by the Landlord or the Tenant unless such waiver is in writing
signed by the party. If the Landlord excuses or condones any default of any obligation under this Lease, no waiver of such obligation shall be implied in respect of any continuing or subsequent default. The Landlord’s receipt of Rent with
knowledge of a breach shall not be deemed a waiver of any breach. 
  

	3.3	Acceptance and Application of Rent 

 Any endorsement, statement, condition, direction or other
communication on or accompanying any Rent payment shall not be binding on the Landlord and the acceptance of any such payment shall be without prejudice to the Landlord’s right to recover the balance of Rent then owing or to pursue any other
remedy available to the Landlord. Any payment received by the Landlord may be applied towards amounts then outstanding under this Lease in such manner as the Landlord determines. 

 

	3.4	General Rules of Interpretation 

  

	 	(a)	Obligations as Covenants: Each obligation of the Landlord and the Tenant in this Lease shall be considered a covenant for all purposes. 

 

	 	(b)	Time: Time is of the essence of this Lease. 

  

	 	(c)	Number, Gender: The grammatical changes required to make the provisions of this Lease apply in the plural sense where the Tenant comprises more than one Person and to individuals (male or female), partnerships,
corporations, trusts or trustees will be assumed as though in each case fully expressed. 

  

	 	(d)	Liability of Tenant: If the Tenant consists of more than one Person, the covenants of the Tenant shall be joint and several covenants of each such Person. If the Tenant is a partnership, each Person who is presently a
partner of the partnership and each Person who becomes a member of any successor partnership shall be and continue to be bound jointly and severally for the performance of and shall be and continue to be subject to all of the terns, obligations and
conditions of this Lease, whether or not such Person ceases to be a member of such partnership or successor partnership and whether or not such partnership continues to exist. 

 

	 	(e)	Governing Law: This Lease shall be governed by and construed under the Applicable Laws of the jurisdiction in which the Building is located and the parties atom and submit to the jurisdiction of the courts of such
jurisdiction. 

  

	 	(f)	Headings: The headings of the Articles and Sections are included for convenience only, and shall have no effect upon the construction or interpretation of this Lease. 

 

	 	(g)	Landlord as Trustee: Any and all exculpatory provisions, releases and indemnities included in this Lease for the benefit of the Landlord are intended also to benefit the Mortgagees, any owner or lessor with an interest
in the Project prior to the Landlord, property managers of the Landlord, and the officers, directors, shareholders, employees, agents of each one of them and, for the purposes of such provisions, the Landlord is acting as agent or trustee on behalf
of and for the benefit of the persons mentioned above. 

  

	 	(h)	Severability: Should any provision of this Lease be or become invalid, void, illegal or not enforceable, such provision shall be considered separate and severable from this Lease and the remaining provisions shall
remain in force and be binding upon the parties hereto as though such provision had not been included. 

  

	3.5	Successors 

 This Lease and everything herein contained shall extend to and bind the successors and
assigns of the Landlord and the legal representatives, heirs, executors, administrators, successors and permitted assigns of the Tenant (as the case may be). 

 ARTICLE 4 - GRANT AND TERM 

 

	4.1	Term, Demise 

 The Landlord hereby demises and leases the Premises to the Tenant for the Term (unless
terminated earlier pursuant to this Lease), to have and to hold during the Term, subject to the terms and conditions of this Lease. The Landlord grants to the Tenant a non-exclusive licence throughout the Term to the benefit or
use (as may be appropriate) of those Common Areas and Facilities which provide access to the Premises or which are generally made available to all tenants in the Building, in common with other tenants of the Building and with all
others entitled thereto, subject to the terms and conditions of this Lease. 

  
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	4.2	Delay in Delivery of Premises 

 If the Landlord is delayed in delivering the Premises to the Tenant by
the date provided for in this Lease, the Landlord and the Tenant agree that the Commencement Date shall be deferred by the number of days of such delay but the Term will remain as set out in this Lease. The Landlord or its agent shall provide to the
Tenant written notice of any such delay before it occurs. The Tenant shall accept the above deferral of the Commencement Date as full compensation for the delay and the Landlord shall have no further liability arising from it. The Tenant shall upon
request execute a lease amending agreement documenting such deferral, if any. 
  

	4.3	Acceptance 

 The Tenant hereby leases and accepts the Premises from the Landlord and covenants to pay the
Rent and to observe and perform all the covenants and obligations to be observed and performed by the Tenant pursuant to this Lease. If the Tenant occupies the Premises prior to the Commencement Date, its occupancy shall be subject to the terms and
conditions of this Lease, other than in respect of Rent if there are other provisions concerning Rent that the Landlord and Tenant have agreed to in writing in respect of such period prior to the Commencement Date. The Tenant agrees that, except as
may be specifically set out herein, the Premises are accepted subject only to the Premises being in the condition set out in Schedule “E” and there is no promise, representation or undertaking binding upon the Landlord with respect to any
alteration, remodelling or decoration of the Premises or with respect to the installation of equipment or fixtures in the Premises. 
  

	4.4	Quiet Enjoyment 

 If the Tenant pays the Rent, fully performs all its obligations under this Lease and
there has been no Event of Default, then the Tenant shall be entitled, subject to the provisions of this Lease, to peaceful and quiet enjoyment of the Premises for the Term. 

ARTICLE 5 - RENT 
  

	5.1	Basic Rent 

 The Tenant shall pay to the Landlord Basic Rent in the amount set out in Section 1.1(j)
for the respective Lease Year, by equal consecutive monthly instalments in advance on the fast day of each month, subject to any adjustment pursuant to Section 5.3. 
  

	5.2	Additional Rent 

 The Tenant shall also pay throughout the Term, at the times and in the manner provided
in this Lease, all Additional Rent which shall, except as otherwise provided in this Lease, be payable within 15 days of receipt by the Tenant of an invoice, statement or demand for it. 

 

	5.3	Adjustment Due to Measurement 

 The Landlord may, from time to time, at its option, cause the Rentable
Area of the Premises and/or Project or any part thereof to be measured by an Expert and, if necessary as a result of such measurement, the annual Basic Rent and the calculation of Additional Rent shall be adjusted by the landlord. The effective date
of any such adjustment shall be: 
  

	 	(a)	in the case of any measurement made prior to or within six months of the Commencement Date, the date the Tenant is allowed possession of the Premises under this Lease, and 

 

	 	(b)	in all other cases, the date of the determination of the measurement. 

 Any such measurement by an Expert shall
be final and binding on the Landlord and the Tenant subject to the Landlord’s right from time to time to cause the Rentable Area of the Premises and/or Project or any part thereof to be remeasured by an Expert as set out above. Neither the
Landlord nor the Tenant may claim any adjustment to the annual Basic Rent or to the calculation of Additional Rent based on the Rentable Area of the Premises except in accordance with a measurement by an Expert made pursuant to this Section and, for
greater certainty, neither the Landlord nor the Tenant may claim any adjustment to the annual Basic Rent or to the calculation of Additional Rent based on such measurement for the period prior to the effective date of such adjustment as set out
above. 
 
  

	5.4	Payment of Rent - General 

  

	 	(a)	payments required to be made by the Tenant pursuant to this Lease shall be paid when due, without prior demand and without any abatement, set-off, compensation or deduction whatsoever, except as may be otherwise
expressly provided herein, at the address of the Landlord set out in Section 1.1(a)(ii) or at such other place as the Landlord may designate from time to time to the Tenant. 

  
 8 

	 	(b)	All payments required to be made by the Tenant pursuant to this Lease, except for Rental Taxes, shall be deemed to be Rent and shall be payable and recoverable as Rent, and the Landlord shall have all rights against the
Tenant for default in any such payment as in the case of arrears of Rent. 

  

	 	(c)	The Tenant shall pay to the Landlord all Rental Taxes applicable from time to time, calculated and payable in accordance with Applicable Laws and the Tenant shall pay such amount at the earlier of: (i) the time
provided for by Applicable Laws; and (ii) the time such Rent is required to be paid under this Lease. The amount payable by the Tenant on account of Rental Taxes shall be deemed not to be Rent for the purpose of such calculation but in the
event of a failure by the Tenant to pay any amount, the Landlord shall have the same rights and remedies as it has in the event of a failure by the Tenant to pay Rent. 

 

	 	(d)	•At the Landlord’s request, the Tenant shall make all payments under this Lease by way of post dated cheques, automate withdrawals or electronic funds transfer from the Tenant’s bank account and
shall execute and deliver either concurrently with this Lease or from time to time within three Business Days following request for it, such documentation as may be required by the Landlord and its bank in order to effect such
payments.• The Tenant authorizes the Landlord to withdraw monthly Rent payments from the Tenant’s account by way of direct withdrawals, as may be arranged from time to time between financial institutions administering the
Tenant’s and the Landlord’s accounts. The Tenant further agrees to execute and provide whatever further documentation, account information, cancelled cheques or otherwise, which are reasonably requested by the Landlord in order to assist
the Landlord in the administration of a pre-authorized payment procedure for monies owing or accruing due as Rent under this Lease. 

  

	 	(e)	•At the Tenant begins to use all or part of the Premises for the conduct of its business on a date that is earlier than the Commencement Date, Rent shall begin to accrue from such earlier date, and the
Tenant shall pay to the Landlord the Rent accrued, in each case within 30 days of receipt from the Landlord of an invoice in respect of such Rent.• 

  

	 	(f)	If the •Commencement Date or the date the Tenant commence to conduct its business at the Premises is other than the first day of a full period in respect of which any item of Rent is calculated, or
the• last day of the Term is other than the last day of a full period, then unless otherwise provided in this Lease, the amount of such item of Rent payable in respect of the broken period shall be prorated on the basis of a 365 day
year. 

  

	5.5	Payment of Additional Rent 

  

	 	(a)	Prior to the Commencement Date and at or prior to the beginning of each Fiscal Year thereafter, the Landlord shall compute and deliver to the Tenant a bona fide estimate in respect of such Fiscal Year of the
Tenant’s share of Property Taxes, the Tenant’s share of 0perating Costs (being its Proportionate Share subject to Section 6.7) and such other items of Additional Rent as the Landlord may estimate in advance and the Tenant shall
pay to the Landlord in monthly instalments one-twelfth of such estimate simultaneously with the Tenants payments of Basic Rent, provided that the monthly instalments on account of the Tenant’s share of Property Taxes may be determined so
that the Landlord collects all such amounts payable by the Tenant by the final due date in the relevant calendar year. The Landlord may from time to time re-estimate any items of Additional Rent and may fix monthly instalments for the then remaining
balance of the Fiscal Year so that such items will be entirely paid during such Fiscal Year. 

  

	 	(b)	Within a reasonable period of time after all information necessary to calculate actual Additional Rent becomes available after the end of each Fiscal Year, the Landlord will provide to the Tenant a written
statement (in this Section 5.5 referred to as the “Statement”) setting out in reasonable detail the amount of Operating Costs, the Property Taxes and such other items of Additional Rent as the Landlord had estimated in advance for
such Fiscal Year. If the Tenant’s share of Property Taxes, the Tenant’s share of Operating Costs (being its Proportionate Share subject to Section 6.7) and other items of Additional Rent actually paid by the Tenant to the Landlord
during such Fiscal Year differs from the amount of the Tenant’s share of Property Taxes, the Tenant’s share of Operating Costs and other items of Additional Rent payable for such Fiscal Year, the Tenant shall pay such difference or the
Landlord shall credit the Tenants account (as the case may be), without interest within 30 days after the date of delivery of the Statement~ The respective obligations of the Landlord and the Tenant in this Section 5.5(b) shall survive the
end of the Term or earlier termination of this Lease. 

  

	 	(c)	The Tenant shall not claim a re-adjustment in respect of Operating Costs or Property Taxes or other items of Additional Rent estimated by the Landlord or the share payable by the Tenant on account thereof for any
Fiscal Year except by notice given to the Landlord within six months after delivery of the Statement, stating the particulars of the error in computation. 

 

 

	 	(d)	 If the Tenant disputes the accuracy of any Statement within the period permitted under Section 5.5(c) above and the landlord and the Tenant fail
to settle the matter within a reasonable period, the matter shall be referred by the Landlord to an Expert for prompt determination. The Tenant shall pay in accordance with the Statement until such decision is rendered. The Expert’s signed
determination shall be final and binding on both the Landlord and the Tenant. Any adjustment 

  
 9 

	 	
required to any previous payment made by the Tenant or the Landlord by reason of any such determination shall be made within 14 days thereof, and the party required to pay such adjustment shall
bear all costs of the Expert, except that if the amount to be paid is 201/6 or less of the amount in dispute, the Tenant shall pay all such costs. 

  

	5.6	•Rent Deposit 

 The Landlord acknowledges receipt from the Tenant of the
Rent Deposit to be applied to the Rent as it becomes due or as otherwise provided in Section 1.1(k)(i) and, to the extent it is not so applied from time to time, to be held, without interest, as security (without prejudice to the
Landlord’s other rights and remedies) for the observance and performance of the Tenant’s obligations under this Lease.• 
  

	5.7	Security Deposit 

 •The Landlord acknowledges receipt from the Tenant of the Security
Deposit to be held, without interest, as security (withoutprejudice to the Landlord’s other rights and remedies) for the observance and performance of the Tenant’s obligations under this Lease. If the Tenant defaults in the performance of
any of the terms, covenants, conditions and provisions of this Lease as and when the same are due to be performed by the Tenant, then the Landlord, at its option, may appropriate any apply all or any part of the Security Deposit on account of
any losses or damages sustained by the Landlord as a result of such default. Upon demand by the Landlord following any such appropriation, the Tenant shall pay to the Landlord an amount sufficient to restore the total original amount of the Security
Deposit. If the Tenant complies with all of the terms, covenants, conditions and provisions under this Lease, the Security Deposit shall be returned to the Tenant without interest within 90 days after the expiry or earlier termination of the
Term, or, at the Landlord’s option, shall be applied by the Landlord on account of the last month’s Rent. • 
 Prior to or
concurrently with the execution and return of this Lease by the Tenant, the Tenant shall deposit with the Landlord the Security Deposit. The Security Deposit will be held without liability for interest for application by the Landlord
firstly against the aggregate payment of first months’ Basic Rent, Operating Costs and Property Taxes, including Rental Taxes with the balance to be held as security for the due and proper performance by the Tenant of all of the
terms, covenants and conditions of this Lease, including the payment of all Rent due hereunder. At the expiration of the Term, any portion of the Security Deposit that remains outstanding and unapplied by the Landlord shall be repaid by
the Landlord to the Tenant within 60 days of the expiration of the Term. Notwithstanding the foregoing, if the Tenant fails to execute and deliver this Lease within 5 Business Days of receipt from the Landlord, the Landlord may,
at its sole option, terminate this Lease, whereupon the Security Deposit shall be retained by the Landlord as liquidated damages on account of the Tenant’s default and not as a penalty. 

 

	5.8	Net Lease 

 The Tenant acknowledges and agrees that it is intended that this Lease shall be a completely
carefree net lease for the Landlord and that the Landlord shall not be responsible for any costs, charges, expenses and outlays of any nature whatsoever arising from or relating to the Premises during the Term, whether foreseen or
unforeseen and whether or not within the contemplation of the parties at the commencement of the Term, except as shall be otherwise expressly provided in this Lease. 

ARTICLE 6 - OPERATING COSTS AND TAXES 
  

	6.1	Property Taxes Payable by Landlord 

 The Landlord shall pay all Property Taxes, but it may defer such
payments or compliance to the fullest extent permitted by law so long as it pursues in good faith any contest or appeal of any such Property Taxes with reasonable diligence. 

 

	6.2	Property Taxes Payable by Tenant 

  

	 	(a)	The Tenant shall pay as Additional Rent directly to the Landlord in each Fiscal Year the Tenant’s share of Property Taxes as determined pursuant to this Section. 

 

	 	(b)	The Tenant’s share of Property Taxes shall be the portion of the Property Taxes that are attributable to the Premises, as determined by the Landlord. Without limiting the foregoing: 

  

	 	(i)	the Landlord may, if it so elects, determine that the Tenant’s share of Property Taxes attributable to the Premises shall be the Proportionate Share of Property Taxes; 

 

	 	(ii)	the Landlord shall be entitled, but not obligated, to allocate Property Taxes amongst categories of premises in the Project on the basis of such factors as the Landlord determines to be relevant and to adjust the
Tenant’s share of Property Taxes based on such allocation; 

  

	 	(iii)	if there are separate assessments (or, in lieu of separate assessments, calculations made by authorities having jurisdiction from which a reasonable approximation of separate assessments can be made) for the
Premises for Property Taxes, the Landlord may in its sole discretion (but need not) have regard thereto; 

  
 10 

	 	(iv)	nothing herein shall compel or require the Landlord to adjust, continue to adjust or to make the same determination or allocation of Property Taxes from year to year or in any Fiscal Year; and 

 

	 	(v)	for the purposes of determining the share of Property Taxes payable by the Tenant pursuant to this Lease, Property Taxes shall include such additional amounts as would have formed part of Property Taxes had the Project
been filly assessed during the whole of the relevant Fiscal Year as fully completed and fully occupied by tenants, with no special exemptions or reductions, and without taking into account any actual or potential reduction of Property Taxes or
change of assessment category or class for premises within the Project which are vacant or underutilized. 

  

	6.3	Business Taxes and Other Taxes of Tenant 

 The Tenant shall promptly pay before delinquency to the taxing
authorities or to the Landlord, if it so directs, as Additional Rent, any taxes, rates, duties, levies and assessments whatsoever, whether municipal, provincial, federal or otherwise, levied, imposed or assessed against or in respect of
the operations at, occupancy of, or conduct of business in or from the Premises by the Tenant or any other permitted occupant, including the Tenant’s Business Taxes, if levied in the province in which the Building is
situate. Whenever requested by the Landlord, the Tenant shall deliver to the Landlord copies of receipts for payment of all such taxes. 
  

	6.4	Assessment Appeals 

 The Tenant shall not appeal any governmental assessment or determination of the
value of the Project or any portion of the Project whether or not the assessment or determination affects the amount of Property Taxes or other taxes, rates, duties, levies or assessments to be paid by the Tenant. 

 

	6.5	Operating Costs 

 Subject to the exclusions and deductions stipulated in Section 6.6,
“Operating Costs” means the total, without duplication, of the costs, expenses, fees, rentals, disbursements and outlays (in Sections 6.5 and 6.6 referred to collectively as “costs”) of every kind, whether direct or
indirect, paid, payable or incurred by or on behalf of the Landlord on a cash basis (or on an accrual basis as and to the extent that the Landlord may determine) in the ownership, maintenance, repair, replacement, operation,
administration, supervision and management of the Project, including, without limitation: 
  

	 	(a)	costs of providing security, supervision, traffic control, landscaping, snowplowing and/or removal services, exterior cleaning and the costs of machinery, supplies, tools, equipment and materials used in connection
with the Project (including rental costs of such items), and including costs relating to any spur track; 

  

	 	(b)	inspections, repairs, maintenance and replacements to the Building Systems and Common Areas and Facilities of the Project; 

  

	 	(c)	costs of telephone and telecommunications (including rooftop and wireless management), information technology, telecopier, stationery, office equipment, supplies, signs and directory boards and other services and
materials required for management, maintenance and operation (whether on or off-site and whether incurred by the Landlord or a management company); 

  

	 	(d)	to the extent incurred in respect of the Premises and not separately metered and paid for by the Tenant, and to the extent incurred in respect of the Common Areas and Facilities, the costs of providing electricity,
fuel, heat, water, telephone, gas, sewage disposal, external lighting and other utilities and services (including all energy management and administration costs); 

 

	 	(e)	to the extent payment of such costs is not the responsibility of the Tenant under Article 7 of this Lease, the costs of; 

  

	 	(i)	operating, maintaining, replacing, modifying and repairing the Project, including without limitation such costs where incurred by the Landlord in order to comply with Applicable Laws or required by the Landlord’s
insurance carrier or resulting from normal wear and tear to the Project; 

  

	 	(ii)	providing, installing, modifying and upgrading energy conservation equipment and systems, life safety and emergency response systems, materials and procedures and telecommunication systems and equipment if any;

 
  

	 	(iii)	making alterations, replacements or additions to the Project intended to reduce Operating Costs, improve the operation of the Project and the systems, facilities and equipment serving the Project, or maintain their
operation; 

  

	 	(iv)	replacing machinery or equipment which by its nature requires periodic replacement; 

  
 11 

	 	(v)	painting interior areas not normally rented to tenants and the costs of painting or otherwise maintaining the outside of the Project, other than those parts for which the Tenant is responsible; 

 

	 	(vi)	maintaining, repairing and replacing the signs, directory boards, roadways, driveways, loading and parking areas of the Common Areas and Facilities; 

 

	 	(vii)	maintaining, repaving and replacing any roof or wall or foundation of any part of the Premises; and 

  

	 	(viii)	spur track rental, 

 all to the extent that such costs are fully chargeable in the Fiscal Year
in which they are incurred in accordance with generally accepted accounting principles as applied by the Landlord, or as specified in this Lease; 
  

	 	(f)	depreciation or amortization of the costs referred to in Section 6.5(e) above as determined in accordance with generally accepted accounting principles as applied by the Landlord, or as specified in this
Lease, if such costs have not been charged fully in the Fiscal Year in which they are incurred, and interest or imputed interest (at 2% per annum over the Prime Rate) on the undepreciated or unamortized balance of such costs, it being
recognized that the Landlord, acting reasonably, may depreciate or amortize any such cost over a longer or shorter period than that which corresponds to the period over which the benefits of having incurred that cost are realized; 

 

	 	(g)	amounts paid to, or reasonably attributable to the remuneration of, all personnel (whether on or off-site and whether employed by the Landlord or a management company) involved in the maintenance, repair, replacement,
operation, administration, supervision and management of the Project, including fringe benefits, severance pay, termination payments, uniforms and other employment costs; 

 

	 	(h)	auditing, accounting, legal and other professional and consulting fees and disbursements incurred in connection with the maintenance, repair, replacement, operation, administration, supervision and management
of the Project, including those incurred with respect to the preparation of the statements required under the provisions of this Lease and costs of minimizing, contesting or appealing assessments of Property Taxes (whether or not successful);

  

	 	(i)	costs of all insurance which the Landlord is obligated or permitted to obtain under this Lease and the amounts of losses incurred or claims paid either below the insurance deductible amounts or as the co-insurance
portion of an insured claim, and should the Landlord choose in whole or in part to self-insure, the amount of reasonable contingency reserves not exceeding the amount of premiums that would otherwise have been incurred in respect of the risks
undertaken; 

  

	 	(j)	Property Taxes to the extent not charged to the Tenant pursuant to Section 6.2 and to other tenants of the Project pursuant to lease provisions similar to such Section; 

 

	 	(k)	Capital Tax and Large Corporations Tax; 

  

	 	(1)	fair market rental value (having regard to rent being charged for similar space including additional rent for operating costs and property taxes) of space used by the Landlord and/or its property manager, in connection
with the maintenance, repair, operation, administration and management of the Project and such fair market rental value of any building amenities (such as conference and day-care facilities provided primarily for tenants of the Project),
together with the costs relating to such building amenities; and 

  

	 	(m)	an allowance of fifteen percent (15%) of the aggregate of (i) the above amounts, and (ii) Property Taxes, for the Landlord’s building administration fee. 

 

	6.6	Limitations on Operating Costs 

 In determining Operating Costs, the cost (if any) of the following shall
be excluded or deducted, as the case may be: 
  

	 	(a)	major repairs to Structural Components that are required as a result of defective design or construction of such Structural Components; 

 

	 	(b)	interest on, and the capital retirement of debt, except as specifically provided in Section 6.5(e), and ground rent payable to the lessor under any ground or other lease pursuant to which the Landlord has an
interest in the Project; 

  

	 	(c)	expenses relating to decorating or redecorating or renovating premises demised, or to be demised, to tenants or occupants of the Project and costs relating to tenant inducements, allowances or similar expenses;

  

	 	(d)	all leasing expenses, real estate brokers’ fees, leasing commissions, advertising premises for lease, and space planners’ fees; 

  
 12 

	 	(e)	repairs or maintenance done for the direct account of other tenants; and 

  

	 	(f)	net recoveries by the Landlord in respect of warranties or guarantees and insurance claims to the extent (but only to the extent) that the repair costs in respect of the work covered by such warranties or
guarantees or insurance claims have been charged as Operating Costs. 

  

	6.7	Adjustments of Operating Costs 

 In computing Operating Costs: 

 

	 	(a)	where the Landlord determines, acting reasonably but in its sole discretion, that any item(s) of Operating Costs are provided only to or for the benefit of the Building (if it is part of a Project) or a portion of the
Project or Building, then the Landlord shall be entitled, but not obligated, to allocate the cost of those item(s) over such portion of the Project or Building and adjust the Tenant’s Operating Cost payment based on such allocation;

  

	 	(b)	if the Project or the Building is comprised of different categories of leaseable premises, the Landlord shall be entitled, but not obligated, to allocate Operating Costs among the various categories on the basis of such
factors as the Landlord determines to be relevant and to adjust the Tenant’s Operating Cost payment based on such allocation; and 

  

	 	(c)	if any facilities, services or utilities: 

  

	 	(i)	for the operation, administration, management, repair and maintenance of the Building are provided from another building or other buildings (whether within the Project or elsewhere) owned or operated by Landlord or its
manager; 

  

	 	(ii)	for the operation, administration, management, repair and maintenance of another building or other buildings (whether within the Project or elsewhere) owned or operated by the Landlord or its manager are provided from
the Building; or 

  

	 	(iii)	are otherwise shared between the Building and another building or other buildings (whether within the Project or elsewhere), the costs, charges and expenses of such items shall be allocated by the Landlord, between the
Building and other building or buildings (whether within the Project or elsewhere) on a reasonable basis. 

  

	6.8	Reduction or Control of Operating Costs 

 The Tenant shall comply with any practices or procedures that
the Landlord, may from time to time introduce to reduce or control Operating Costs and shall pay, as Additional Rent, all costs, as determined by the Landlord, that may be incurred by the Landlord as a result of any non-compliance. The
Landlord may use an Expert to assist it in making such determination. 
 ARTICLE 7 - HVAC, UTILITIES AND OTHER LANDLORD SERVICES

  

	7.1	Heating 

 The Tenant shall heat the Premises at its own expense to a degree sufficient to protect
the Premises and their contents from damage by cold or frost, and to operate, maintain, repair and replace as required the heating equipment. At the expiry or sooner termination of the Tem, the Tenant will peacefully yield up unto the Landlord
such heating equipment in good and substantial repair and condition. Notwithstanding the foregoing, pursuant to Schedule “E”, subparagraph (c~, the Landlord will ensure that the existing HVAC systems serving the
Premises will be in proper working order as at the Commencement Date. It is understood that the maintenance of such existing HVAC systems throughout the Term will be undertaken by the Landlord and charged back directly to
the Tenant through Operating Costs. 
  

	7.2	Electricity and Other Utilities 

  

	 	(a)	The Tenant shall be solely responsible for and shall promptly pay all charges for electricity, telephone, water, gas, sewage disposal and other utility services used or consumed in the Premises, and for all work or
services performed by any corporation or commission in connection with such public or private utilities. The Tenant shall not overload the capacity of any such service. 

 

	 	(b)	The Tenant shall not engage any Person not approved by the Landlord to provide any utility service to the Premises. Solely the Landlord shall have the right to selector designate the provider or providers from time
to time of electrical power or other utilities to the Premises or any other part of the Project, and solely the Landlord shall be permitted (at the Tenant’s cost) to install any meters or check meters to monitor the consumption or use of
electrical power or other utilities. 

  
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	7.3	Special HVAC Services and Utilities and Excess Quantities 

 If the Tenant requests electricity, gas,
sewage disposal, water or other utility services of a type or in quantities that exceed the capacity of the Building, as determined by the Landlord, the Landlord shall supply such services if the Landlord determines, in its sole discretion,
that the provision of such services: (a) is within the capacity of the Building Systems; (b) would not affect the operation, aesthetics or structure of the Building or Project; (c) would not reduce the efficiency of the
existing services supplied to other tenants or parts of the Building or Project; and (d) is otherwise feasible. The Tenant will pay to the Landlord all costs, both non-recurring and recurring, of providing all such services. Such
costs shall be determined by the Landlord, and may include installation at the Tenant’s expense of separate meters or other measuring devices in the Premises or elsewhere and the Landlord may use an Expert at the Tenant’s sole
cost to assist it in determining such costs. 
  

	7.4	Additional Services Provided by Landlord 

 The Tenant shall pay to the Landlord the costs of all services
provided by the Landlord to the Tenant (plus an administrative charge of 15%), other than services supplied by the Landlord and charged as Operating Costs. Such services shall include services performed at the Tenant’s request or
otherwise provided for herein including, without limitation construction of any Leasehold Improvements or other work performed at the request of or on behalf of the Tenant. 
  

	7.5	Telecommunications 

 The Tenant shall at its cost supply such point of presence equipment and space
within the Premises as its telecommunication service provider (“TSP”) may require. The Tenant shall not permit a TSP to provide services to any other tenant or occupant of the Building utilizing such equipment or space or
any other equipment or space in the Premises. No agreement between the Tenant and TSP shall provide any license for the TSP to have a presence in the Building, and any such agreement shall terminate no later than the expiry or earlier
termination of the Term. 
  

	7.6	Signs and Premises Identification 

 The Tenant shall not erect, affix, install or maintain any signs,
lettering, identification or any promotional or other written materials (in this section 7.6 referred to collectively as “signage”) visible from the exterior of the Building or Project or from any interior Common Areas and
Facilities without the prior written approval of the Landlord; provided that the Landlord may prescribe a uniform pattern for signage for tenants to be placed on the outside of the Project or any part thereof, and provided that the
Landlord may arbitrarily withhold its approval to any signage that relates to something other than the Tenant and its business operations in the Premises. Prior to the expiry or earlier termination of the Term, the Tenant shall cause any
signage to be removed at its own expense in a good and workmanlike manner and to immediately repair any damage caused thereby. For greater certainty and clarity, the Tenant shall be permitted to install exterior base building signage
(“Exterior Signage”). The Exterior Signage is subject to the Landlord’s approval and shall conform will all applicable local, municipal and or federal rules and regulations having jurisdiction. The Exterior Signage
shall be installed and maintained at the Tenant’s sole cost and expense and such maintenance shall be to a first class standard. At the expiry or earlier termination of this Lease, the Tenant shall cause such Exterior Signage to be
removed at its own expense in a good and workmanlike manner and to immediately repair any damage caused thereby, such covenant to survive the expiry or earlier termination of this Lease. 

ARTICLE 8 - OPERATION, CONTROL AND MAINTENANCE BY LANDLORD 
  

	8.1	Operation of the Building by Landlord 

 The Landlord shall operate the Building in accordance with all
Applicable Laws and with standards from time to time prevailing for similar industrial building in the area in which the Building is located, subject, however, to the limitations occasioned by the design and age of the Building and the
capacity of its systems. 
  

	8.2	Control of the Project by Landlord 

 The Landlord has at all times exclusive control of the Project and
its management and operation, but not so as to deny the Tenant access to the Premises or interrupt delivery of services or utilities, in each case except in an emergency or to perform maintenance. Without limiting the
generality of the foregoing, at any time and from time to time, the Landlord may: 
 
  

	 	(a)	make repairs, replacements, changes or additions to the structure, systems, facilities and equipment in the Project (including the Premises) where necessary to serve the Premises or other parts of the Project;

  

	 	(b)	make changes or additions to any part of the Project not in or forming part of the Premises including, without limitation, dedicating or conveying portions of the Lands, granting easements, rights-of-way, restrictive
covenants or other interests in the Lands and constructing additional improvements in or adjoining the Lands; 

  

	 	(c)	 •rearrange the Premises, or take back from or demise to the Tenant space in or adjoining the Premises (not, however, exceeding 200 square
feet in any one instance), as may from time to time be required by the Landlord, noting reasonably, for the benefit of the Project or other tenants or 

  
 14 

	 	
occupants thereof, and the Landlord and the Tenant shall co-operate with each other in that regard, and shall execute such further agreements and lease amendments as may be required to
give effect to this prevision;• 

  

	 	(d)	own or acquire from time to time lands or buildings contiguous to or near the Project and may at its option retain them separately or have them included as part of the Project. The Landlord may from time to time
cease to include as part of the Project any buildings or vacant lands now or hereafter forming part of the Project; 

  

	 	(e)	terminate or amend the Tenant’s right of use of any of the Common Areas and Facilities, change the location and size of any of the Common Areas and Facilities or use parts of the Common Areas and
Facilities for promotional or other activities; 

  

	 	(f)	retain contractors and employ all personnel, including supervisory personnel and managers, that the Landlord considers necessary for the effective maintenance, repair, operation, management and control of the
Project; 

  

	 	(g)	control, supervise and regulate the shipping and delivery of goods, supplies, equipment and fixtures within the Project, and specify the kinds of containers to be used for garbage and refuse or rubbish and
designate how, when and where it is to be placed for collection; and 

  

	 	(h)	do and perform such other acts in and to the Project or any of its component parts as the Landlord considers reasonable for the proper and efficient maintenance, repair, operation, management and control of the Project,

 provided that in the course of the Landlord’s exercise of its rights hereunder, the Landlord shall be deemed not to have re-entered
the Premises nor to have breached any obligation of this Lease. The Landlord shall perform all of its work as expeditiously as is reasonable so as to interfere as little as is reasonably possible with the Tenant’s use of the Premises.

  

	8.3	Name of Building 

 The Landlord may from time to time designate a name or other identification for the
Building or Project. The Tenant shall be responsible for any costs it incurs as a result of any changes in the name or identification (such as changes to its stationery and other material). The Tenant shall have no rights in any
such names or identification. 
  

	8.4	Maintenance and Repair by Landlord 

 The Landlord shall as part of Operating Costs keep or cause to be
kept the following in good repair to the standards from time to time prevailing for similar industrial buildings in the area in which the Building is located, subject, however, to the limitations occasioned by the design and age of
the Building and the capacity of its systems and to reasonable wear and tear not inconsistent with such standard 
  

	 	(a)	the Structural Components, exterior walls, windows and roofs of the Building; and 

  

	 	(b)	the Common Areas and Facilities, 

 provided that: 

 

	 	(c)	if all or part of Building Systems require repair, replacement, maintenance or inspections, the Landlord shall have a reasonable time in which to complete such work, and during such time shall only be required to
maintain such services as are reasonably possible in the circumstances; and 

  

	 	(d)	no reduction or discontinuance of such services or loss of use of the Premises shall be construed as an eviction of the Tenant or (except as specifically provided in this Lease) release the Tenant from any obligation
under this Lease. 

 
  

	8.5	Access by Landlord 

 The Tenant shall permit the Landlord, its agents and others authorized by it, to
enter the Premises to inspect, to provide services or to make repairs, replacements, changes or alterations as set out in this Lease, to take such steps as the Landlord may deem necessary for the safety, improvement, alteration or
preservation of the Premises or the Project and to show the Premises to Mortgagees, prospective Mortgagees, purchasers and prospective purchasers and, during the last 18 months of the Term, to prospective tenants, and no such
entry shall constitute a re-entry by the Landlord or an eviction or entitle the Tenant to any abatement of Rent. However, in effecting such entry the Landlord shall use reasonable efforts to minimize interference with the Tenant’s use
and enjoyment of the Premises, and the Landlord shall endeavour to give the Tenant at least twenty-four (24) hours’ prior notice before doing any repair or maintenance work (other than in the case of an emergency or
apprehended emergency). 
  

	8.6	Relocation 

 The Landlord shall have the right, in its sole discretion, from time to time, on not less
than •60• 120 days’ written notice to the Tenant, to relocate the Premises to other premises within the Project having approximately the same area as the Premises. The Landlord shall be
entitled to designate the location of the new premises and the date by 

  
 15 

 
which the Tenant must relocate to the new premises, and such location and date shall be specified in the written notice. As of the date so specified, the Tenant’s right to use and
occupy the Premises will terminate, whether or not the Tenant has moved, unless the Landlord has in its sole discretion by another notice in writing extended such date. The Tenant shall on the date set out in the notice from the Landlord
relocate to the other premises and vacate the Premises, and the provisions of Section 93 shall apply in respect of the Premises on such date. If the Landlord relocates the Premises prior to occupancy of the Premises by the
Tenant, it shall reimburse the Tenant for all expenses already incurred by the Tenant in preparing to move into the Premises to the extent that such expenditure is for items or materials not usable in the alternate premises. If the
Landlord relocates the Tenant after occupancy of the Premises by the Tenant, the Landlord shall provide the relocated premises improved to a standard and using materials of approximately the same quality as the Leasehold Improvements
which exist in the existing Premises at the time of relocation and will reimburse the Tenant (upon receipt of copies of receipted third party invoices) for direct costs associated with the relocation, including, without
limitation, moving costs, reprinting of a limited supply of stationery and supplies and disconnection and reconnection of telephone and computer equipment and systems. In no case will the Tenant be reimbursed or compensated for
indirect costs including overhead, overtime charges or loss of profits and the Tenant will minimize costs by re-using all fixtures and trade fixtures from the Premises where it is feasible to do so. The Landlord agrees to use
reasonable efforts to effect the relocation with a minimum of disruption to the Tenant’s business. The Landlord and the Tenant shall enter into a lease amending agreement in the Landlord’s standard form to confirm the terms of
the relocation including, without limitation, any adjustment to the Basic Rent if the Rentable Area of the relocated premises is different than the Rentable Area of the existing Premises and to confirm that all other terms and
conditions of this Lease shall apply with respect to the relocated premises for the remainder of the Term. 
 ARTICLE 9 -
MAINTENANCE AND ALTERATIONS BY TENANT 
  

	9.1	Maintenance and Repair by Tenant 

 The Tenant shall at its sole cost maintain and repair the Premises and
all Leasehold Improvements in good order and condition to the standards from time to time prevailing for similar industrial buildings in the area in which the Building is located, subject to reasonable wear and tear not inconsistent with
such standard and with the exception only of those repairs which are the obligation of the Landlord under this Lease and subject to Article 14. Without limiting the generality of the foregoing, the Tenant shall: 

 

	 	(a)	take good care of the Premises and keep same in a tidy, clean and good condition; 

  

	 	(b)	at its own expense, be responsible for and maintain and replace from time to time as necessary during the Term all light fixtures, light bulbs, fluorescent tubes, lamps and ballasts; 

 

	 	(c)	at its own expense, replace or repair, under the direction and to the reasonable satisfaction of the Landlord, all Leasehold Improvements, Building Systems in or for the direct benefit of the Premises, the complete door
and door assemblies of both man-doors and loading dock doors, loading dock levellers, walls, floors, ceiling, roof as well as windows, in or upon the Premises which become damaged, broken or require maintenance; 

 

	 	(d)	properly heat the Premises, at its own expense, during the Term hereof at all times to the extent necessary to prevent damage thereto by frost or other causes; 

 

	 	(e)	maintain (including, without limitation, the performance of regular and periodic servicing, maintenance and inspections as a prudent owner would) in good operating condition, repair and replace as required and to the
satisfaction of the Landlord, all pipes, wiring and electrical apparatus and all plumbing fixtures and heating, ventilating and air conditioning equipment and all other mechanical systems and electrical systems in or about the Premises and
shall keep the same in clean and good working order and repair. It is understood and agreed that in case the said fixtures, systems and equipment or any part thereof shall be damaged or destroyed or become incapable of performing their function
the Tenant shall forthwith repair or replace (as the Landlord may require) the same to the satisfaction of the Landlord. The Landlord shall have the right to service, maintain or inspect, or any one or more of them, the said fixtures, systems and
equipment or cause same to be maintained or inspected, or both, at the Tenant’s expense, the costs of which shall be payable as Additional Rent by the Tenant forthwith on demand together with an administrative fee equal to fifteen percent
(15%) of all such costs; 

  

	 	(f)	keep well painted the painted portions of the interior of the Premises; and 

  

	 	(g)	keep and maintain the washrooms in a sanitary condition. 

Notwithstanding anything to the contrary herein contained. It is agreed between the parties that if
the hot water tank located at grid line 8 on the 2nd floor of the Premises fails then the Tenant shall only be required to replace such water tank with a new water tank of sufficient capacity to serve the Premises
only. 
  

  
 16 

	9.2	Alterations by Tenant 

 The Tenant may from time to time at its own expense install Leasehold
Improvements and alter existing Leasehold Improvements (the “Alterations”) provided that: 
  

	 	(a)	all Alterations shall require the prior written approval of the Landlord, which approval may be withheld or conditioned by the Landlord in its sole discretion, save and except for minor alterations to Leasehold
Improvements which do not affect the structure of the Building or Project, any exterior walls, windows or roof, any of the Building Systems or the aesthetics of the Building or Project and which do not require a building permit, provided the Tenant
has given written notice with reasonable detail of the proposed Alterations to the Landlord in advance; 

  

	 	(b)	for Alterations which require the Landlord’s approval, the Tenant shall furnish the Landlord with two complete sets of professionally prepared working drawings (which shall include any architectural, structural,
electrical, mechanical, computer system wiring and telecommunication plans) of the proposed Alterations. The Tenant shall retain the Landlord’s base building architect, mechanical, electrical and structural engineering consultants to ensure
compatibility of the Building Systems and the Alterations. If the Tenant uses other consultants for the preparation of the Tenant’s working drawings, then the Landlord may elect to retain architects and engineers to review such
working drawings for the purpose of approving the proposed Alterations (it being understood that notwithstanding such approval, the Landlord shall have no responsibility with respect to the adequacy of such working drawings). The Tenant shall pay to
the Landlord, on demand, the costs of the examination of such drawings by either the Landlord or an outside consultant plus an administration fee of 15% of such costs; 

 

	 	(c)	the Alterations shall be subject to regulation, supervision, control and inspection by the Landlord and, in addition to any other payment contained in this Article, the Tenant shall pay to the Landlord, on demand,
the Landlord’s then current fee for coordination services provided by the Landlord during the Tenant’s construction of its Alterations; 

  

	 	(d)	the Tenant shall provide, prior to the commencement of Alterations, evidence of required workers compensation coverage and roof of owner and contractors protective liability insurance coverage, with the Landlord, any
property manager and any Mortgagee as required by the Landlord, to be named as additional insureds, in amounts, with insurers, and in a form satisfactory to the Landlord, which shall remain in effect during the entire period in which the Alterations
will be carried out. In addition, if requested by the Landlord, the Tenant shall provide proof of performance and payment bonds being in place; 

  

	 	(e)	the Tenant will deliver a list identifying every contractor and subcontractor, accompanied by an up-to-date valid clearance certificate for each of them issued by the appropriate workers compensation, safety and
insurance authority and the Landlord shall have approved, prior to commencement of the Alterations, such contractors and subcontractors and their respective labour affiliations. The Tenant will not use any contractor or permit the use of any
sub-contractor that is not identified on the list; 

  

	 	(f)	if any proposed Alterations could affect the structure, the floors, the ceiling, the roof, the beams or columns, the exterior walls or the Building Systems, the Landlord may in its sole discretion require that any
such Alterations be performed by either the Landlord or its contractors in which case the Tenant shall pay the Landlord’s cost plus an administration fee of 15%; 

 

	 	(g)	the Tenant shall have provided to the Landlord a copy of the contract for the Alterations and evidence satisfactory to the Landlord as to the existence of all necessary permits; 

 

	 	(h)	the Tenant shall perform the Alterations or cause the Alterations to be performed: (i) in accordance with any construction methods and procedures manual for the Building or Project; (ii) in accordance
with the plans and specifications submitted to and approved in writing by the Landlord; (iii) in accordance with any conditions, regulations, procedures or rules imposed by the Landlord; (iv) in compliance with all Applicable Laws; and
(v) in a good and workmanlike and expeditious manner using new materials; 

  

	 	(i)	the Landlord may inspect construction as it proceeds; 

  

	 	(j)	upon completion of the Alterations, the Tenant shall provide the Landlord with a complete set of “as built” drawings in hardcopy and AutoCad format for the Alterations; and 

 

	 	(k)	if the Tenant fails to observe any of the requirements of this Article, the Landlord may in its sole discretion require that construction stop and, at the Landlord’s option, that the Premises be restored to
their prior condition failing which the Landlord may do so and the Tenant shall pay the Landlord’s cost plus an administration fee of 15%. 

  
 17 

	9.3	Removal of Improvements and Fixtures 

 All Leasehold Improvements shall immediately upon their placement
become the Landlord’s property without compensation to the Tenant. Except as otherwise directed by the Landlord in writing, no Leasehold Improvements or trade fixtures shall be removed from the Premises by the Tenant either
during or at the expiry or earlier termination of the Term except that: 
  

	 	(a)	the Tenant may, during the Term, in the usual course of its business, remove its trade fixtures, provided that the Tenant is not in default under this Lease; and 

 

	 	(b)	at the written request of the Landlord, the Tenant shall, at its sole cost do the following (the “Restoration”): (i) remove all of its trade fixtures, (ii) remove or remedy the effects of any
Contaminant from the Premises and the Project; and (iii) remove such of the Leasehold Improvements and wiring, cables and related devices and equipment and restore the Premises and any other part of the Project affected thereby to the then
current base building standard of the Building as established in its sole discretion by the Landlord from time to time, all as the Landlord shall require by notice prior to the expiration of the Term. Such Restoration shall be completed by the date
(the “Restoration Date”) that is the later of; (A) the end of the Term; and (B) 15 days after the Landlord’s notice, provided that in the event of termination of this Lease prior to the expiry of the Term, such Restoration
shall be completed no later than 15 days after the date the Landlord recovers possession of the Premises. Despite the foregoing the Tenant shall leave in place and in an unimpaired condition such Leasehold Improvements and wiring, cables and related
devices and equipment as the Landlord may by notice in writing direct, if any. 

 The Tenant shall at its own expense repair any damage caused
to the Project by the Leasehold Improvements, trade fixtures or wiring, cables and related devices and equipment and/or such Restoration. If the Tenant does not remove its trade fixtures, or wiring, cables and related equipment prior
to the expiry or earlier termination of the Term, such trade fixtures or wiring, cables and related devices and equipment shall, at the option of the Landlord, be deemed abandoned and become the property of the Landlord and may be removed
from the Premises and sold or disposed of by the Landlord in such manner as it deems advisable and the Tenant shall pay to the Landlord on demand all costs incurred by the Landlord in connection therewith, plus an administration fee
of 15% of the costs. The Tenant at the end of the Term shall peaceably surrender and yield up possession of the Premises to the Landlord in as good a condition, repair and decoration as that in which the Tenant is required to
maintain the Premises throughout the Term (including as provided for in Section 9.1), shall return to the Landlord at the Landlord’s management office for the Project all keys and other entry devices for the Premises and the
Project, including vaults and safes, which are in the possession of the Tenant, and shall inform the Landlord of all combinations of locks, safes and vaults, if any, that will remain in the Premises. In addition, immediately
before the end of the Term, the Tenant shall level all floors, seal and wax all tile flooring, strip and seal all concrete flooring, steam clean or shampoo all carpeted flooring, wash all glass, doors, woodwork, light fixtures and
washrooms, fill all holes and repaint all painted wall surfaces of the Premises to the reasonable specifications and satisfaction of the Landlord. Furthermore, immediately before the end of the Term, the Tenant shall at its expense, by cleaning the
surfaces in or about the Premises or otherwise (in a manner satisfactory to the Landlord) ensure that no detectable odours, residual or otherwise, which are a result of the Tenant’s use or occupancy of the Premises or resulting from items
stored by the Tenant in the Premises, are thereafter emitted from the walls, floors, ceilings, Common Areas and Facilities, Building Systems or other materials in or about the Premises or the Building. If the Tenant fails to complete any work or
effect any of the other matters referred to in this Section within the period specified, the Tenant shall pay compensation to the Landlord for damages suffered by the Landlord for loss of use of the Premises, which damages shall not be less than
double the per diem Rent payable during the last month preceding the expiry or earlier termination of the Term (or which would have been payable but for any discount or rent-free period applicable to such last month). Further, if the Tenant does not
complete the Restoration by the Restoration Date the Landlord may carry out such Restoration and the Tenant shall pay to the Landlord the cost of the Restoration plus an administration fee of 15%. The Tenant’s obligations in this
Section 9.3 shall survive the end of the Term or earlier termination of this Lease. 
  

	9.4	Liens 

 The Tenant shall pay before delinquency for all materials supplied and work done in respect of
the Premises so as to ensure that no lien or claim of lien is registered against any portion of the Lands or Project or against the Landlord’s or Tenant’s interest in the Lands or Project. If a lien or claim of lien is registered or filed,
the Tenant shall discharge it at its expense within five Business Days after notice from the Landlord (or sooner if such lien or claim is delaying a financing or sale of all or any part of the Project), failing which the Landlord may at its option
discharge the lien or claim of lien by paying the amount claimed to be due into court and the amount so paid and all expenses of the Landlord including legal fees (on a solicitor and client basis) shall be paid by the Tenant to the Landlord. The
Tenant shall not mortgage, charge, grant a security interest in or otherwise encumber any Leasehold Improvements. 
 

 

	9.5	Notice by Tenant 

 The Tenant shall promptly notify the Landlord of any accident (not including WCB
reports), casualty, defect, damage or deficiency which occurs or exists in any part of the Project and which comes to the attention of the Tenant. 

ARTICLE 10 - USE OF PREMISES 
  

	10.1	Permitted Use 

 The Tenant shall continuously use the whole of the Premises only for the Permitted Use,
which the Tenant shall undertake in a first-class, reputable manner befitting the reputation and image of the Building, and for no other purpose. The Tenant shall not use the Premises in a manner which does or could result in excessive demands being
placed on the Building Systems or other Common Areas and Facilities. 

  
 18 

	10.2	Compliance with Laws 

 The Tenant shall use and occupy and shall cause the Premises to be used and
occupied in compliance with all Applicable Laws and in a safe, careful and proper manner. It is the Tenant’s responsibility to ensure that its use from time to time is permitted by all Applicable Laws. At the Landlord’s request the Tenant
shall comply with any directive, policy or request of any governmental or quasi-governmental authority or any other reasonable request of the Landlord, in respect of any energy conservation, waste management, safety, security or other matter
relating to the operation of the Project. If due primarily to the Tenant’s use or occupancy of the Premises, improvements or changes are necessary to comply with any Applicable Laws or with any such directive, policy or request or with the
requirements of insurance carriers, the Landlord may at its option either do the necessary work, at the expense of the Tenant, or forthwith give notice to the Tenant to do such work within the requisite period of time and the Tenant shall then do
such work within the requisite period of time. The Tenant shall pay to the Landlord the costs of any such work done by the Landlord, together with an administration fee of 15%. 

 

	10.3	Nuisance, Interference, Waste, Overloading 

 The Tenant shall not cause or allow any act or thing which
constitutes a nuisance or which is offensive to the Landlord or other occupants of the Project or which interferes with the operation of any Building Systems or with the computer equipment, telecommunication equipment or other technological
equipment of the Landlord, any service providers or other occupants of the Project. The Tenant shall keep the Premises free of Contaminants, free of debris and other items that might attract rodents or vermin and free of anything of a dangerous,
noxious or offensive nature or which could create a fire, environmental, health or other hazard (including any electromagnetic fields or other forms of radiation) or undue vibration, heat or noise, and the provisions of Schedule “F” shall
apply to this Lease. The Tenant shall at its cost throughout the Term keep and use, at such location as is designated from time to time by the Landlord, an industrial garbage container. The Tenant acknowledges that the Landlord is making no
representations as to the ability of any pavement at the Project or the floor of the Premises to meet the requirements of the Tenant concerning any particular vehicles, articles or fixtures. The Tenant shall not permit any Contaminant or cause or
allow any overloading of the floors of the Project or the bringing into any part of the Project, including the Premises, of any vehicles, articles or fixtures that by reason of their weigh; use or size might damage or endanger the structure, any
concrete, asphalt or other pavement, or any of the Building Systems. If any such Contaminant or damage occurs, the Tenant shall immediately and at its sole expense repair it or remove from the Premises and Project such Contaminant to the
satisfaction of the Landlord. 
  

	10.4	Access 

  

	 	(a)	The Tenant shall not permit any vehicles or trailers belonging to the Tenant, its employees, invitees, contractors or agents to be stored or parked overnight or to cause obstruction on any roads, driveways or parking
areas, or impede ingress and egress by any other tenant in the Project, and will use its best efforts to ensure that persons doing business with the Tenant do not permit any such obstruction. 

 

	 	(b)	The Tenant shall not stack or store any materials in the yard or yards of the Project, adjacent driveways, or common areas and shall cause no obstruction to vehicles operating on the roads, driveways or parking areas.

  

	10.5	Rail Spur 

 If the Premises do now or hereafter have access to a railway spur or are now or hereafter
served by a railway spur the Tenant shall forthwith execute and deliver any agreements in respect thereof which are required by the railway company or other authority operating the said railway or required by the Landlord, and the Tenant shall
reimburse to the Landlord or pay directly to the railway company or other authority operating the said railway all payments and compensation whatsoever which are required to be paid by the Tenant or the Landlord including, without limitation, any
prepayments for the use of the railway facilities and other materials or otherwise and the costs of repairs and replacements of the rail lines, track bed, ties and any other apparatus or facilities (but excluding any amounts included in the
Operating Costs and paid by the Tenant under section 5.5 hereof), and the Tenant shall observe and perform all terms, conditions, covenants and obligations under the said agreements and any and all requirements whatsoever of the railway company or
other authority operating the said railway or the Landlord. The Tenant shall indemnify and save harmless the Landlord from and against any and all loss, cost, expense, damage, claims and liability whatsoever in respect of the use of the railway spur
by the Tenant and in respect of the said agreements and all requirements of the railway company or other authority operating the said railway or the Landlord. 
 

 

	10.6	Rules and Regulations 

 The Tenant shall comply and cause every Person over whom it has control to comply
with the Rules and Regulations. The Landlord, acting reasonably, shall have the right from time to time to make amendments, deletions and additions to such Rules and Regulations. If the Rules and Regulations conflict with any other provisions
of this Lease, the other provisions of this Lease shall govern. The Landlord shall not be obligated to enforce the Rules and Regulations and shall not be responsible to the Tenant for failure of any person to comply with the Rules and Regulations.
The Rules and Regulations may differentiate between different types of tenants, different punts of the Building or the Project or otherwise. The Landlord agrees that it will not enforce the Rules and Regulations in a manner that is discriminatory to
the Tenant. 

  
 19 

 ARTICLE 11 - INSURANCE, LIABILITY AND INDEMNITY 

 

	11.1	Tenant’s Insurance 

 The Tenant shall effect and maintain from the earlier of the Commencement Date
and the date the Tenant begins operating in the Premises, and thereafter during the Term, at its sole cost and expense: 
  

	 	(a)	“all risks” insurance upon all property owned by the Tenant or by others and for which property the Tenant is responsible located in the Project including equipment, furniture, fixtures and Leasehold
Improvements in amounts sufficient to fully cover, on a replacement cost basis without deduction for depreciation, all such items; 

  

	 	(b)	comprehensive form boiler and machinery insurance on a blanket repair and replacement basis in respect of boilers, pressure vessels, air conditioning equipment and miscellaneous electrical apparatus placed in or for the
benefit of the Premises, regardless of source, with limits for each accident in an amount not less than the full replacement cost of all Leasehold Improvements and all property in the Premises; 

 

	 	(c)	commercial general liability insurance on an occurrence basis, against claims for bodily injury, personal injury, economic loss and property damage arising from occurrences in or about the Project or arising from or in
any way relating to the Tenant’s use or occupancy of the Premises or the Project, contractual liability (including coverage of the indemnities provided for in this Lease), non-owned automobile liability and owner and contractors protective
liability, in amounts which are from time to time acceptable to a prudent tenant in the community in which the Building is located (as determined by the Landlord), but not less than $5,000,000.00 in respect of each occurrence; 

 

	 	(d)	Tenant’s legal liability insurance for the fill replacement cost of the Premises including loss of the use of the Premises; 

  

	 	(e)	business interruption insurance for a minimum period of •24• 12 months in an amount
that will reimburse the Tenant for direct or indirect loss of earnings attributable to all perils insured against in Sections 11.1(a) and 11.l(b) or attributable to prevention of access to the premises or the Building as a result of any such perils,
including extra expense insurance if applicable; and 

  

	 	(f)	any other form of insurance that the Landlord or any Mortgagee may require from time to time in form, amounts and for insurance risks acceptable to the Landlord and any Mortgagee. 

Should the Tenant fail to maintain any of the insurance required pursuant to this Section 11.1 and should such default continue for two Business Days
after notice to the Tenant, then in addition to any other rights and remedies, the Landlord may, but shall have no obligation to, elect to obtain the required insurance and the Tenant shall upon demand pay to the Landlord, as Rent, the
Landlord’s cost of obtaining such insurance, together with an administration fee of 15%. 
  

	11.2	Form of Tenant Policies 

 Each policy required pursuant to Section 11.1 shall be in a form and with
insurers acceptable to the Landlord, having reasonable deductibles, and: (a) the insurance described in Sections 11.1(a) and 11.1(b) and any other property damage insurance shall include, as additional named insureds (but without liability for
premiums) as its interests may appear the Landlord, any Mortgagee and other Persons with an interest in the Project from time to time designated in writing by the Landlord; (b) the insurance described in Section 11.1(c) shall include as
additional named insureds (but without liability for premiums) the Landlord, any Mortgagee, any other Persons with an interest in the Project from time to time designated in writing by the Landlord and any property manager or facilities manager
retained by the Landlord in respect of the Project; (c) all property damage and liability insurance shall contain provisions for cross-liability and severability of interests among the Landlord, the other insureds and the Tenant; and
(d) all property damage insurance (including boiler and machinery insurance) shall contain a waiver of any rights of subrogation which the insurer may have against the Landlord and those for whom the Landlord is in law responsible whether the
damage is caused by the act, omission or negligence of the Landlord or such other Persons. 
 
  

	11.3	Certified Copies and Notice to Landlord 

 The Tenant shall provide to the Landlord, prior to the earlier
of the Commencement Date and the date the Tenant begins operating in the Premises, •certified copies or other evidence satisfactory• certificates of insurance to the Landlord that the Tenant has obtained all
insurance policies required by this Lease and shall provide written evidence of the continuation of such policies •not less than ten days• as soon as practicable prior to their respective expiry dates. Each policy required
pursuant to Section 11.1 shall provide that: (a) the insurer must notify the Landlord and any Mortgagee in writing at least 30 days prior to •any material change detrimental to the Landlord or any Mortgagee or•
the cancellation of any such policy; (b) the Tenant shall use its commercially reasonable best efforts to notify the Landlord and any Mortgagee of any material change detrimental to the Landlord or any Mortgagee; (c) the policy
shall not be invalidated in respect of the interests of the Landlord or any Mortgagee or any other additional insureds by reason of any breach or violation of any 

  
 20 

 
warranties, representations, declarations or conditions contained in such policy; and •(c)• (d) the policy shall be noncontributing with, and shall apply only
as primary and not excess to any other insurance available to all and any of the Landlord, any Mortgagee or any other additional insured referred to above. 
  

	11.4	Landlord’s Insurance 

 The Landlord shall effect and maintain during the Term: (a) liability
insurance; (b) “all risks” property insurance; (c) boiler and machinery insurance; and (d) such other insurance on the Building and all property and interest of the Landlord in the Building as determined by the Landlord, in
each case, to the extent, with coverage and in amounts as determined by the Landlord from time to time. However, despite any other provision of this Lease, as long as Sun Life Assurance Company of Canada or an affiliate thereof (as the term
“affiliate” is defined in the Canada Business Corporations Act or the Insurance Companies Act (Canada)) is the Landlord, the Landlord may self-insure, in whole or in part, in respect of any and all casualties; in that event upon the
request of the Tenant from time to time the Landlord will furnish a statement as to the perils in respect of which and the amounts to which it has insured the Project and the improvements and installations in the Premises, and also of the perils and
amounts as to which the Landlord is self-insuring the Project and the improvements and installations in the Premises. 
  

	11.5	Insurance Risks 

 The Tenant shall not do, omit to do, or permit to be done or omitted to be done upon
the Premises or any other portion of the Project anything that may contravene or be prohibited by any of the Landlord’s insurance policies in force from time to time covering or relevant to any part of the Project or which would prevent the
Landlord from procuring such policies with companies acceptable to the Landlord. If the occupancy of the Premises, the conduct of business in the Premises or any acts or omissions of the Tenant in the Premises or any other portion of the Project
causes or results in any increase in premiums for any of the Landlord’s insurance policies, hen, without limiting any other rights or remedies of the Landlord, the Tenant shall pay any such increase and a 15% administration fee thereon as
Additional Rent forthwith upon receipt of the invoices of the Landlord for such additional premiums. A written report by an Expert at the Tenant’s sole cost concerning the cause of any increase in premiums will be accepted as conclusive
evidence of the cause for the purposes of determining the Tenant’s liability to pay for increases as Additional Rent. If the Landlord has chosen to self-insure, the Tenant will pay to the Landlord, as Additional Rent forthwith upon receipt of
the invoices of the Landlord setting out reasonable particulars, the charges that otherwise would have been payable under this subsection (including the 15% administration fee thereon) had the Landlord not chosen to self-insure. 

 

	11.6	Release of Landlord 

 The Tenant hereby releases the Landlord from any and all claims, actions, causes of
action, damages, demands for damages and other liabilities, howsoever arising, that may be made by the Tenant against the Landlord under the provisions of this Lease to the extent of all insurance proceeds paid under the policies of insurance
maintained by the Tenant or which would have been paid if the Tenant had maintained the insurance required under this Lease and had diligently processed any claims thereunder. In addition and without limitation, the Tenant agrees that the Landlord,
regardless of negligence or alleged negligence on the part of the Landlord or any breach of the Lease by the Landlord and, notwithstanding anything else herein contained, shall not be liable for and hereby releases the Landlord from: 

 

	 	(a)	any and all claims, actions, causes of action, damages, demands for damages and other liabilities: 

  

	 	(i)	for or related to any bodily injury, personal injury, illness or discomfort to or death of the Tenant or any of its agents, officers, contractors, employees, invitees, licensees and any other Person for whom the Tenant
is legally responsible in or about the Project or the Premises; and 

  

	 	(ii)	for or related to any loss or damage to property owned by the Tenant or by others and for which property the Tenant is responsible in or about the Project or the Premises, and, without limiting the foregoing, the
Landlord shall not be liable for any damage caused by steam, water, rain or snow which may leak into, issue or flow from part of the Project, including the Premises, or from the pipes or plumbing works thereof, or from any other place or for any
damage caused by or attributable to the condition or arrangement of any electric or other wiring; 

  

	 	(b)	any loss or damage caused as a result of any damage, destruction, construction, alteration, expansion, expropriation, reduction, repair or reconstruction from time to time of the Project, any parts or components of the
Project or of improvements on adjoining properties or by anything done or omitted to be done by any other tenant or occupant; 

 

 

	 	(c)	any act or omission (including theft, malfeasance or negligence) on the part of any agent, contractor or person from time to time employed by Landlord to perform cleaning/maintenance services, security services,
supervision or any other work in or about the Premises or the Project; 

  

	 	(d)	any loss or damage, however caused, to books of account, records, files, money, securities, negotiable instruments, papers, computer disks, tapes, software, data and other electronic files and their storage media of any
kind or to other valuables of the Tenant including art, artworks, statuary, antiques, gems and precious metals of the Tenant and of others; 

  
 21 

	 	(e)	any loss or damage arising from obstruction of deliveries to or from the Premises or interruption, cessation, faulty operation, breakdown or failure of any Building Systems, including but not limited to, the supply of
any utilities, telecommunication services (whether controlled or owned by the Landlord or not) or other services in, to or serving the Project or the Premises, whether they are supplied by the Landlord or by others; and 

 

	 	(f)	any indirect or consequential damages including, but not limited to, loss of profit. 

  

	11.7	Release of Tenant 

 The Landlord hereby releases the Tenant, and its agents, officers and employees, and
any other Person for whom the Tenant is legally responsible from any liability or claim that may be made by the Landlord against the Tenant under the provisions of this Lease with respect to such loss to the extent of the lesser of: (a) the
amount, if any, by which such loss exceeds the amount of insurance the Tenant is required to maintain under the terms of this Lease or actually maintains, whichever is greater; and (b) the proceeds actually paid to the Landlord with respect to
such loss under the policies of insurance maintained by the Landlord pursuant to Section 11.4 or which would have been paid if the Landlord had maintained the insurance required under this Lease and had diligently processed any claims
thereunder. This release shall be operative only if it is not prohibited by the Landlord’s insurance policies and would not place the Landlord in breach of such policies or expose the Landlord to additional costs under or in connection with
such policies. 
  

	11.8	Indemnity by Tenant 

 The Tenant shall indemnify and save harmless the Landlord from and against any and
all claims, actions, causes of action, damages, demands for damages, losses and other liabilities and expenses (including, without limitation, those in connection with bodily injury (including death), personal injury, illness or discomfort or damage
to property and legal fees on a solicitor and client basis) due to or arising from or out of all and any of. 
  

	 	(a)	subject to Section 11.7, any occurrence in, on or at the Premises or the occupancy or use by the Tenant of the Premises or any other part of the Project or occasioned wholly or in part by any act or omission of the
Tenant, its officers, employees, agents, contractors, invitees, licensees or by any Person permitted by the Tenant to be on the Premises or the Project or due to or arising out of any breach by the Tenant of this Lease; and 

 

	 	(b)	any fault, default, negligence, gross negligence, wilful action or omission of the Landlord, its agents, servants, employees or anyone for whom at law the Landlord is liable, which causes interference with or
obstruction of deliveries to or from the Premises or interruption, cessation, faulty operation, breakdown or failure of the Building Systems or utilities or services, including but not limited to telecommunication or similar services (whether they
are part of the Building Systems or not) and suffered by customers, suppliers or other third parties with whom the Tenant or any occupant of the Premises conducts business or by other Persons who utilize any part of any telecommunications network to
which the Tenant or any other occupant of the Project is or are connected. 

 ARTICLE 12 - ASSIGNMENT, SUBLETTING AND OTHER
TRANSFERS 
  

	12.1	Transfers 

 The Tenant shall not enter into, consent to, or permit any Transfer without the prior written
consent of the Landlord, which consent shall be subject to the Landlord’s rights under Section 12.2. The Tenant shall pay to the Landlord the Transfer Application Fee in respect of the proposed Transfer. Notwithstanding any statutory
provision to the contrary, it shall not be considered unreasonable for the Landlord to withhold its consent if, without limiting any other factors or circumstances which the Landlord may take into account: 

 

	 	(a)	an Event of Default on the part of the Tenant hereunder has occurred and is continuing, or the Tenant has previously been in material or persistent breach of any of its obligations under this Lease; 

 

	 	(b)	the proposed Transfer would be or could result in violation or breach of any covenants or restrictions made or granted by the Landlord to other tenants or occupants, or prospective tenants or occupants, of the Project;

  

	 	(c)	in the Landlord’s opinion: 

  

	 	(i)	either the financial background or the business history and capability of the proposed Tansferee is not satisfactory; 

  

	 	(ii)	the nature or character of the proposed business of the proposed Transferee is such that it might harm the Landlord’s business or reputation or reflect unfavourably on the Project, the Landlord, or other tenants of
the Project, or the image of any of them, or is unethical, immoral or illegal; 

  
 22 

	 	(iii)	the use of the Premises by the proposed Transferee could be incompatible with the other businesses or activities being carried on in the Project or could result in excessive demands being placed on the Building Systems
or other Common Areas and Facilities; or 

  

	 	(iv)	if the Transfer affects less than all of the Premises, the portion affected or the portion remaining are not acceptable in respect of size, access or configuration; 

 

	 	(d)	the proposed Transferee or any principal of the proposed Transferee or any principal shareholder of the proposed Transferee has a history of defaults under other commercial leases or does not have a satisfactory history
of compliance with laws; 

  

	 	(e)	the Landlord at the time has•, or will have in the next ensuing three month period period,• other premises in the Project suitable for leasing to the proposed Transferee; 

 

	 	(f)	the basic and additional rent payable by the Transferee is less than the Basic Rent and Additional Rent payable by the Tenant hereunder as at the effective date of the Transfer except in the case where the Landlord
determines, in its sole discretion, that payment of lesser rent by the Transferee will not detrimentally affect the leasing program for the Project; or 

  

	 	(g)	the proposed Transfer is to: (i) an existing tenant or occupant of the Project; or (ii) a representative of a foreign government; or (iii) a proposed Transferee whose proposed use is one that the Landlord
in its sole discretion determines involves more pedestrian or other traffic than would the operations of the Tenant; or (iv) a proposed Transferee whose proposed use is one that the Landlord in its sole discretion determines could place
excessive burdens on the Building Systems, the Building or Project or result in Contaminants, environmental risks or impacts on the Premises, Building or Project. 

Any consent by the Landlord to a Transfer shall not constitute a waiver of the necessity for such consent to any subsequent Transfer. 

 

	12.2	Tenant’s Notice, Landlord’s Right to Terminate 

 If the Tenant intends to effect a Transfer the
Tenant shall give prior written notice to the Landlord of such intent specifying the identity of the Transferee, the type of Transfer contemplated, the part of the Premises affected and the financial and other terms of the Transfer, and shall
provide such financial, business or other information relating to the proposed Transferee and its principals as the Landlord or any Mortgagee reasonably requires, together with copies of all documents which record the particulars of the proposed
Transfer. The Landlord shall, within 30 days after having received such notice, the Transfer Application Fee and all requested information, notify the Tenant either that: 
  

	 	(a)	it consents or does not consent to the Transfer in accordance with the provisions of this Lease; or 

  

	 	(b)	it elects to terminate this Lease as to the part of the Premises affected by the proposed Transfer, or as to the whole Lease and Premises if the proposed Transfer affects all of the Premises. 

If the Landlord elects to terminate this Lease it shall stipulate in its notice the termination date of this Lease, which date shall be the date of possession
contemplated under the proposed Transfer (provided that if such date is less than 30 days or more than 90 days following the giving of notice of such election, the Landlord may elect to have the termination date 30 days or 90 days, respectively,
following the giving of notice). If the Landlord elects to terminate this Lease, the Tenant may notify the Landlord in writing within ten days following receipt of such notice of the Tenant’s intention to refrain from such Transfer and, if the
Tenant provides such written notice within such time period, then the Landlord’s election to terminate this Lease shall become void~ if the Tenant fails to deliver such notice within such time period, then this Lease shall, as to the whole or
affected part of the Premises, as the case may be, be terminated on the date of termination stipulated by the Landlord in its notice of election to terminate. If the Tenant is required to deliver possession of a part only of the Premises, the Tenant
shall pay all costs incurred in connection with rendering that part functionally separate and suitable for separate use and occupancy, including partitioning and providing entrances and services. 

  

	12.3	Conditions of Transfer 

 The following terms and conditions apply in respect of a Transfer: 

 

	 	(a)	if the Transfer is an assignment of this Lease in whole or in part, the Tenant and the Transferee shall execute, prior to the Transfer being made, an agreement with the Landlord in the Landlord’s form including the
Transferee’s covenant to be bound by all of the terms of this Lease; 

  

	 	(b)	notwithstanding any Transfer, the Tenant shall remain liable under this Lease and shall not be released from performing any of the terms of this Lease. The Tenant’s liability shall continue notwithstanding any
amendment of this Lease throughout the Term and any exercise of any renewal or extension of the Term provided for herein, regardless of whether or when an amendment of this Lease is made (however the original Tenant’s liability will not be
increased by any amendment that it is not a party to) and notwithstanding that the Landlord may collect rent from the Transferee. Without limiting the foregoing, the Tenant shall be responsible for all acts or omissions of any subtenant, licensee or
occupant; 

  
 23 

	 	(c)	if the basic and additional rent (net of reasonable out of pocket costs for commissions, for cash allowances and for Alterations required by and made for the Transferee by the Tenant, amortized on a straight line basis
over the term of the Transfer) to be paid by the Transferee under such Transfer exceeds the Basic Rent and Additional Rent payable by the Tenant hereunder, the amount of such excess shall be paid by the Tenant to the Landlord. If the Tenant receives
from any Transferee, either directly or indirectly, any consideration other than basic rent or additional rent for such Transfer, either in the form of cash, goods or services, the Tenant shall immediately pay to the Landlord an amount equivalent to
such consideration, 

  

	 	(d)	if the Transfer is a sublease, the Transferee will execute a covenant in the Landlord’s form and will agree to waive any statutory or other right to apply to a court or to otherwise elect to: (i) retain the
unexpired term of the Lease or the unexpired term of the sublease; (ii) obtain any right to enter into any lease or other agreement directly with the Landlord, or (iii) otherwise remain in possession of any portion of the Premises, in any
case where the Lease is terminated, surrendered or otherwise cancelled, including, without limitation, any disclaimer, repudiation, surrender or other termination (each of these transactions being referred to as an ‘Early Termination’) by
any trustee in bankruptcy of the Tenant or a Transferee, by any court appointed officer, or by the Tenant or a Transferee in connection with any insolvency proceedings; 

 

	 	(e)	if there is an Early Termination, the Tenant and any Transferee (except the bankrupt or insolvent Tenant or Transferee) to whom the Landlord gives notice within 60 days after the Early Termination, shall be considered
to have entered into a lease with the Landlord on the same terms and conditions as are contained in this Lease except that the term of the lease shall commence on the date of the Early Termination and shall expire on the date this Lease would have
expired but for the Early Termination, and 

  

	 	(t)	notwithstanding the effective date of any permitted Transfer as between the Tenant and the Transferee, all Rent for the month in which such effective date occurs shall be paid in advance by the Tenant so that the
Landlord will not be required to accept partial payments of Rent for such month from either the Tenant or the Transferee. 

  

	12.4	Corporate Records 

 Upon the Landlord’s request, the Tenant shall: (a) deliver a statutory
declaration by one of its senior officers setting forth the details of its corporate and capital structure, (b) make available to the Landlord or its representatives all of its corporate or partnership records, as the case may be, for
inspection at all times, in order to ascertain whether any Change of Control has occurred; and (c) cause the Indemnifier(s), if any, to provide any of the foregoing in respect of such Indemnifier(s). 

 

	12.5	Permitted Transfers 

 Notwithstanding Section 12.1 and provided that the Required Conditions are
satisfied and there is not then an Event of Default, the Tenant shall have the right on prior written notice to the Landlord, but without being required to obtain the Landlord’s consent, to effect a Transfer in compliance with Section 12.3
in favour of a Permitted Transferee and the Landlord’s right to terminate shall not apply to such a Transfer. 
  

	12.6	No Advertising 

 The Tenant shall not advertise that the whole or any part of the Premises are available
for a Transfer and shall not permit any broker or other Person to do so unless the text and format of such advertisement is approved in writing by the Landlord. No such advertisement shall contain any reference to the rental rate of the Premises.

  

	12.7	Sales or Dispositions by Landlord 

 The Landlord shall have the unrestricted right to sell, transfer,
lease, license, charge or otherwise dispose of all or any part of its interest in the Project or any interest of the Landlord in this Lease. In the event of any sale, transfer, lease or other disposition the Landlord shall thereupon, and without
further agreement, be released of all liability under this Lease arising from and after such disposition but only to the extent the purchaser or other transferee agrees to assume the Landlord’s obligations under this Lease. If required by the
Landlord in connection with any sale, transfer, charge or other disposition the Tenant shall, within five Business Days of request, provide to the Landlord, prospective purchasers and Mortgagees and their respective agents and consultants, access to
the current financial statements of the Tenant and any Indemnifier. If the Tenant is listed on a recognized stock exchange in Canada or the United States, the Tenant agrees to provide instead copies of the Tenant’s annual reports, quarterly
reports and all other publicly distributed reporting materials. 
 

ARTICLE 13 - LANDLORD FINANCING AND STATUS CERTIFICATES 
  

	13.1	Subordination and Postponement 

  

	 	(a)	 This Lease and the rights of the Tenant in this Lease shall be subject and subordinate to any and all Mortgages and the Tenant, on request by and
without cost to the Landlord, shall, within five Business Days after such request, execute and deliver any and all instruments required by the 

  
 24 

	 	
Landlord to evidence such subordination. Upon request by the Tenant at the time of any request for confirmation of subordination, the Landlord shall make reasonable efforts to obtain from any
Mortgagee an acknowledgement and assurance in writing addressed to the Tenant, whereby such Mortgagee acknowledges that, in the event of any such Mortgagee realizing upon the security, it will not disturb the Tenant and will permit the Tenant to
remain in possession under this Lease in accordance with its terms, so long as the Tenant is not in default. 

  

	 	(b)	The Landlord, as to any Mortgage, and a Mortgagee, as to any Mortgage held by it may, by notice to the Tenant, elect that this Lease and the rights of the Tenant hereunder shall be prior to such Mortgage(s) and the
Tenant, on request by and without cost to the Landlord, shall, within five Business Days after such request, execute and deliver any and all instruments required by the Landlord or the Mortgagee, as the case may be, to confirm priority to this Lease
over the Mortgage(s). 

  

	13.2	Attornment 

 At any time after any of the following has occurred: 

 

	 	(a)	if a Mortgagee delivers a notice of attornment; 

  

	 	(b)	if a Mortgagee shall take possession of the Building or the Premises; or 

  

	 	(c)	if the interest of the Landlord is transferred to any Person (in this Article referred to as a “Purchaser”) by reason of foreclosure or other proceedings for enforcement of any Mortgage, or by delivery of a
conveyance, 

 the Tenant shall, at the option of the Mortgagee or the Purchaser, as the case may be, exercisable by notice in writing to the
Tenant, be deemed to have attorned to the Mortgagee or the Purchaser, as the case may be, upon receipt of such notice. The Landlord, the Mortgagee or the Purchaser, as the case maybe, may require the Tenant to enter into all instruments required by
the Landlord, the Mortgagee or the Purchaser, as the case may be, to confirm such attornment. Upon such attornment the obligations of the Tenant under this Lease shall continue in full force and effect upon all the same terms, conditions and
covenants in this Lease. 
  

	13.3	Status Certificates 

 The Tenant shall at any time and from time to time execute and deliver to the
Landlord, or as the Landlord, a Mortgagee or a Purchaser may direct, within five Business Days after it is requested, a certificate of the Tenant, in the form supplied, addressed to the Landlord, the Mortgagee or the Purchaser, as the case may be,
and/or any prospective purchaser, lessor or Mortgagee, certifying such particulars, information and other matters in respect of the Tenant (including its financial standing), the Premises and this Lease that the Landlord, the Mortgagee or the
Purchaser, as the case may be, may request~ The Tenant will be liable for damages to the Landlord for failure to execute and deliver the requested certificate. Failure to execute the requested certificate within the stipulated five Business Day
period is a default under this Lease and the Landlord may, at its option, terminate this Lease without incurring any liability for so doing. 
  

	13.4	Reliance 

 Notwithstanding that a Mortgagee or a Purchaser is not a party to this Lease, it shall be
entitled to rely upon and enforce the provisions of this Lease which are stated to be for its benefit and, without limitation, the Mortgagee shall be entitled to act as agent for the Landlord to the extent necessary to enforce any such provisions.

 ARTICLE 14 - DAMAGE, DESTRUCTION, DEMOLITION, EXPROPRIATION 

 

	14.1	Damage to Premises 

 If all or any material part of the Premises is rendered untenantable or completely
inaccessible by damage from fire or other casualty to the Building or Project, then: 
  

	 	(a)	if in the opinion of the Expert, the damage can be substantially repaired under Applicable Laws within 180 days from the date of such casualty (employing normal construction methods without overtime or other premium),
the Landlord shall forthwith repair such damage other than damage to Leasehold Improvements and any other property that is not the responsibility of or is not owned by Landlord, and 

  

	 	(b)	if in the opinion of the Expert, the damage cannot be substantially repaired under Applicable Laws within 180 days from the date of such casualty (employing normal construction methods without overtime or other
premium), then: 

  

	 	(i)	the Landlord may elect to terminate this Lease as of the date of such casualty by notice delivered to the Tenant not more than 20 days after receipt of the Expert’s opinion; and 

 

	 	(ii)	if such damage occurs during the last two Lease Years of the Term, the Tenant may elect to terminate this Lease as of the date of such casualty by notice delivered to Landlord not more than 20 days after receipt of the
Expert’s opinion, 

  
 25 

 failing which the Landlord shall forthwith repair such damage other than damage to Leasehold Improvements or
property that is not the responsibility of or is not owned by landlord 
  

	14.2	Abatement 

 If the Landlord is required to repair damage to the Premises under Section 14.1 the
Basic Rent payable by the Tenant shall be proportionately reduced to the extent that the Premises are rendered untenantable or inaccessible, from the date of the casualty until 30 days after completion by the Landlord of the repairs to the Premises
or until the Tenant again uses the Premises (or the part thereof rendered untenantable), whichever first occurs. The Tenant shall effect its own repairs as soon as possible after completion of the Landlord’s repairs. Notwithstanding the
foregoing, there shall be no abatement or reduction of Rent where the Landlord’s repairs to the Premises take less than ten days to complete after the damage occurs. 
  

	14.3	Termination Rights 

 Notwithstanding anything else contained in this Lease, if: (a) the Building is
partially destroyed or damaged so as to affect 25% or more of the Rentable Area of the Building; or (b) in the opinion of the Expert the Building is unsafe or access or services are affected and, in either case, cannot be substantially repaired
under Applicable Laws within 180 days from the date of such casualty (employing normal construction methods without overtime or other premium); or (c) the proceeds of insurance are substantially insufficient to pay for the costs of repair or
rebuilding or are not payable to or received by the Landlord; or (d) any Mortgagee(s) or other Person entitled to the insurance proceeds shall not consent to the repair and rebuilding, then the Landlord may terminate this Lease by giving to the
Tenant notice of such termination within 60 days of the damage or destruction, in which event the Tem shall cease and be at an end as of the date of such damage or destruction and the Rent and all other payments for which the Tenant is liable under
the terms of this Lease shall be apportioned and paid in full to the date of termination (subject to any abatement under Section 14.2). 
  

	14.4	Landlord’s Rights on Rebuilding 

 In the event of damage to the Building and if this Lease is not
terminated in accordance with Sections 14.1 or 14.3, the Landlord shall forthwith repair any damage to the Building, but only to the extent of the Landlord’s obligations under the terms of the various leases for premises in the Building
(including this Lease) and exclusive of any tenant’s responsibilities with respect to such repair. In repairing or rebuilding the Building or the Premises the Landlord may use drawings, designs, plans and specifications other than those used in
the original construction and may alter or relocate the Building, the Common Areas and Facilities or any part thereof, and may alter or relocate the Premises, provided that the Building as repaired or rebuilt is of a similar standard and the
Premises as altered or relocated shall be of approximately the same size as the original Premises. 
  

	14.5	Landlord’s Demolition Rights 

 Despite any other provisions of this Lease, if the Landlord intends
to demolish or renovate substantially the Building or a substantial portion of the Building, the Landlord may terminate this Lease on not less than 180 days’ notice to the Tenant. The Tenant shall on the date set out in the notice from the
Landlord vacate the Premises in accordance with the terms of this Lease. Also on such date, the Term shall cease and be at an end and the Rent and all other payments for which the Tenant is liable under the terms of this Lease shall be apportioned
and paid in full to the date of termination. 
  

	14.6	Expropriation 

 The Landlord and the Tenant shall co-operate in respect of any expropriation of all or
any part of the Premises or the Lands and Building so that each party may receive the maximum award to which it is entitled in law. If the whole or any part of the Premises or of the Lands and Building are expropriated, as between the parties
hereto, their respective rights and obligations under this Lease shall continue until the day on which the expropriating authority takes possession thereof. If, in the case of partial expropriation of the Premises this Lease is not frustrated by
operation of governing law and such expropriation does not render the remaining part of the Premises untenantable for the purposes of this Lease, the Tenant and the Landlord shall restore the part not so taken in accordance with their respective
repair obligations under the provisions of Sections 14.l(a) and 14.2 of this Lease. In this Section 14.6 the word “expropriation” shall include a sale by the Landlord to any authority with powers of expropriation, in lieu of or under
threat of expropriation. 
 
 ARTICLE 15 - DEFAULT AND REMEDIES

  

	15.1	Events of Default 

 Any of the following constitutes an Event of Default under this
Lease: 
  

	 	(a)	any Rent (which term for this Article 15 shall include Rental Taxes) is in arrears and is not paid within five days after notice from the Landlord; 

  
 26 

	 	(b)	the Tenant has breached any of its obligations in this Lease and, if such breach is capable of being remedied and is not otherwise listed in this Section 15.1, after notice from the Landlord: 

 

	 	(i)	the Tenant fails to remedy such breach within ten days (or such shorter period as may be provided in this Lease); or 

  

	 	(ii)	if such breach cannot reasonably be remedied within ten days or such shorter period, the Tenant fails to commence to remedy such breach within such ten days or shorter period or thereafter fails to proceed diligently to
remedy such breach; 

  

	 	(c)	the Lease or any goods, chattels or equipment of the Tenant is seized, taken or exigible in execution or in attachment or if a writ of execution or enforcement is issued against the Tenant and such writ is not stayed or
vacated within ten days after the date of such issue; 

  

	 	(d)	the Tenant or any Indemnifier becomes insolvent or commits an act of bankruptcy or takes the benefit of any statute for bankrupt or insolvent debtors or makes any proposal, assignment, compromise or arrangement with its
creditors, or if a receiver is appointed for all or part of the business, property, affairs or revenues of the Tenant; 

  

	 	(e)	the Tenant makes a bulk sale of its goods (other than in conjunction with a Transfer approved by the Landlord) or moves or commences, attempts or threatens to move its goods, chattels and equipment out of the Premises
(other than in the normal course of its business); 

  

	 	(f)	the Tenant fails to take possession of and occupy the Premises on the Commencement Date, or if thereafter the Tenant abandons or attempts to abandon the Premises or ceases to conduct business from the Premises, or the
Premises become vacant or substantially unoccupied for a period of ten consecutive days; or 

  

	 	(g)	the Tenant purports to effect a Transfer other than in compliance with the provisions of this Lease. 

  

	15.2	Remedies 

 If and whenever an Event of Default occurs, the Landlord shall have the following rights and
remedies, exercisable immediately and without further notice and at any time while the Event of Default continues: 
  

	 	(a)	to terminate this Lease and re-enter the Premises. The Landlord may remove all Persons and property from the Premises and store such property at the expense and risk of the Tenant or sell or dispose of such property in
such manner as the Landlord sees fit without notice to the Tenant~ Notwithstanding any termination of this Lease, the Landlord shall be entitled to receive Rent and all Rental Taxes up to the time of termination plus accelerated Rent as provided in
this Lease and damages including, without limitation: (i) damages for the loss of Rent suffered by reason of this Lease having been prematurely terminated; (ii) costs of reclaiming, repairing and re-leasing the Premises; and
(iii) legal fees and disbursements on a solicitor and client basis; 

  

	 	(b)	to enter the Premises as agent of the Tenant and to relet the Premises for whatever length of time and on such terms as the Landlord in its discretion may determine including, without limitation the right to:
(i) take possession of any property of the Tenant on the Premises; (ii) store such property at the expense and risk of the Tenant; (iii) sell or otherwise dispose of such property in such manner as the Landlord sees fit; and
(iv) make alterations to the Premises to facilitate the reletting. The Landlord shall receive the rent and proceeds of sale as agent of the Tenant and shall apply the proceeds of any such sale or reletting first, to the payment of any expenses
incurred by the Landlord with respect to any such reletting or sale, second, to the payment of any indebtedness of the Tenant to the Landlord other than Rent and third, to the payment of Rent in arrears, with the residue to be held by the Landlord
and applied to payment of future Rent as it becomes due and payable. The Tenant shall remain liable for any deficiency to the Landlord; 

  

	 	(c)	to remedy or attempt to remedy the Event of Default for the account of the Tenant and to enter upon the Premises for such purposes. The Landlord shall not be liable to the Tenant for any loss, injury or damages caused
by acts of the Landlord in remedying or attempting to remedy the Event of Default. The Tenant shall pay to the Landlord, on demand, all expenses incurred by the Landlord in remedying the Event of Default, together with an administration fee of 15%
and interest at the Default Rate from the date such expense was incurred by Landlord; 

  

	 	(d)	to recover from the Tenant all damages, costs and expenses incurred by the Landlord as a result of the Event of Default including any deficiency between those amounts which would have been payable by the Tenant for the
portion of the Term following such termination and the net amounts actually received by the Landlord during such period of time with respect to the Premises; and 

  

	 	(e)	to recover from the Tenant the full amount of the current month’s Rent together with the next three months’ instalments of Rent, which shall immediately become due and payable as accelerated rent.

  
 27 

	15.3	Distress 

 Notwithstanding any provision of this Lease or any provision of any present or future
Applicable Laws, none of the goods, chattels or trade fixtures on the Premises at any time during the Term shall be exempt from levy by distress for Rent in arrears, and the Tenant waives any such exemption. If the Landlord makes any claim against
the goods and chattels of the Tenant by way of distress this provision may be pleaded as an estoppel against the Tenant in any action brought to test the right of the Landlord to levy such distress. 

 

	15.4	Interest and Costs 

 The Tenant shall pay to the Landlord upon demand: (a) interest at the Default
Rate on all Rent required to be paid hereunder from the due date for payment until fully paid and satisfied; and (b) the Landlord’s then current administration charge for each notice of default given by the Landlord to the Tenant under
this Lease. The Tenant shall pay and indemnify the Landlord against damages, costs and expenses (including, without limitation, all legal fees on a solicitor and client basis) incurred in enforcing the terms of this Lease, or with respect to any
matter or thing which is the obligation of the Tenant under this Lease, or in respect of which the Tenant has agreed to insure or to indemnify the Landlord. 
  

	15.5	Remedies Cumulative 

 No reference to or exercise of any specific right or remedy by the Landlord shall
prejudice or preclude the Landlord from exercising or invoking any other remedy, whether allowed under this Lease or generally at law or in equity, and the express provisions of this Lease as to certain rights and remedies are not to be interpreted
as excluding any other or additional rights and remedies available to the Landlord generally at law or in equity. 
 ARTICLE 16 -
MISCELLANEOUS 
  

	16.1	Relationship of Parties 

 Nothing contained in this Lease shall create any relationship between the
parties other than that of landlord and tenant, and, without limitation, nothing in this Lease shall be construed to constitute the Landlord and the Tenant as partners, joint venturers or members of a joint or common enterprise. 

 

	16.2	Consent Not to be Unreasonably Withheld 

 Except as otherwise specifically provided in this Lease, the
Landlord and the Tenant, and each Person acting for them, in granting a consent or approval or making a determination, designation, calculation, estimate, conversion or allocation under this Lease, will act reasonably and in good faith and each
Expert or other professional Person employed or retained by the Landlord will act in accordance with the applicable principles and standards of such Person’s profession; however, the foregoing shall not apply in respect of any actions taken by
or on behalf of the Landlord under Article 15. The Tenant’s sole remedy against the Landlord in respect of any breach or alleged breach of this Section shall be an action for specific performance and, without limitation, the Landlord shall not
be liable for damages and the Tenant shall not be entitled to any other rights or remedies. 
  

	16.3	Overholding 

 The Tenant has no right to remain in possession of the Premises after the end of the Term.
If the Tenant remains in possession of the Premises after the end of the Term with the consent of the Landlord but without entering into a new lease or other agreement then, notwithstanding any statutory provisions, legal presumption or
reasonableness requirement to the contrary, there shall be no tacit renewal of this Lease or the Term and the Tenant shall be deemed to be occupying the Premises as a tenant from month to month (with either party having the right to terminate such
month to month tenancy at any time on 30 days’ notice, whether or not the date of termination is at the end of a rental period) at a monthly Basic Rent payable in advance on the first day of each month equal to
•double• one hundred and fifty percent (150%) of the monthly amount of Basic Rent payable during the last month of the Term (or which would have been payable but for any discount or rent-free period applicable
to such last month) and otherwise upon the same terms, covenants and conditions as in this Lease insofar as these are applicable to a monthly tenancy and, for greater certainty, including liability for all Additional Rent. 

  

	16.4	Registration 

 Neither the Tenant nor anyone on the Tenant’s behalf or claiming under the Tenant
(including any Transferee) shall register this Lease or any Transfer against the Lands. The Tenant may at its sole cost register a notice or caveat of this Lease provided that: (a) a copy of the Lease is not attached; (b) no financial
terms are disclosed; (c) the Landlord gives its prior written approval to the notice or caveat; and (d) the Tenant pays the Landlord’s costs on account of the matter. The Landlord may limit such registration to one or more parts of
the Lands. Upon the expiration or other termination of the Term the Tenant shall immediately discharge or otherwise vacate any such notice or caveat at its sole cost. If any part of the Lands which in the opinion of the Landlord are surplus is
transferred, the Tenant shall forthwith at the request of the Landlord discharge or otherwise vacate any such notice or caveat as it relates to such part. If any part of the Lands are made subject to any easement, right-of-way or similar right, the
Tenant at its sole cost shall immediately at the request of the Landlord, which request the Landlord may make in its sole discretion, postpone its registered interest to such easement, right-of-way or similar right. 

  
 28 

 16.5 Unavoidable Delay 

If any party is bona fide delayed, or hindered in or prevented from the performance of any term, covenant or act required by this Lease by reason of any cause
beyond the control of the patty affected including, without limitation, strikes, lockouts or other labour disputes, the enactment, amendment or repeal of any Applicable Laws, the failure of any existing tenant or occupant to vacate the Premises,
shortages or unavailability of labour or materials, riots, insurrection, sabotage, rebellion, war, acts of terrorism, act of God, or any other similar reason (“Unavoidable Delay”), then performance of such term, covenant or act is excused
for the period of the delay and the party so delayed, hindered or prevented shal1 be entitled to perform such term, covenant or act within the appropriate time period after the expiration of the period of such delay. However, the provisions of this
Section do not operate to excuse the Tenant from the prompt payment of Rent and any other payments required by this Lease or from vacating the Premises as and when required pursuant to any provision of this Lease and Unavoidable Delay shall not
include any delay caused by the parties’ default or act or omission, any delay avoidable by the exercise of reasonable care by such patty or any delay caused by lack of funds of such party. The Landlord shall also be excused from the
performance of any term, covenant or act required hereunder if the performance of such item would be in conflict with any directive, policy or request of any governmental or quasi-governmental authority in respect of any energy, conservation, safety
or security matter. 
  

	16.6	Decisions of Experts; Arbitration 

 The decision of any Expert whenever provided for under this Lease and
any certificate of an Expert shall be final and binding on the parties and there shall be no further right of dispute or appeal. 
 Wherever under any
provision of this Lease it is stated that a matter is to be determined by Arbitration, it shall be determined by a single arbitrator appointed by the parties. If the parties cannot agree on a single arbitrator, then, upon the application of either
party, a Justice of the superior court of the province in which the Premises are situate shall appoint an arbitrator whose sole determination shall be final. The arbitrator shall be a disinterested person of recognized competence in the real estate
business where the Premises are situate. The expense of such arbitration shall be home equally by the Landlord and the Tenant. 
  

	16.7	Notices 

 Any notice, demand, statement or request (“Notice”) required or permitted to be given
under this Lease shall be in writing and shall be deemed to have been duly given if personally delivered, delivered by courier or mailed by registered prepaid post, in the case of Notice to the Landlord, to it at the address set out in
Section 1.1(a)(ii) and in the case of Notice to the Tenant, to it at the Premises. Notice may not be given by facsimile transmission, electronic mail or any other electronic communication. 

Any such Notice given in accordance with the above requirements shall be deemed to have been given, if mailed, on the fifth day following the date of such
mailing or, if delivered, on the day on which it was delivered so long as such delivery was prior to 5:00 p.m. on a Business Day (and, if after 5:00 p.m. or if any such day is not a Business Day, then it shall be deemed to have been delivered on the
next Business Day). Either party may from time to time by Notice change the address to which notices to it are to be given. Notwithstanding the foregoing, during any interruption or threatened interruption in postal services, any Notice shall be
personally delivered or delivered by courier. If a copy of any Notice to the Tenant is to be sent to a second address or to another Person other than the Tenant, the failure to give any such copy shall not vitiate the delivery of the Notice to the
Tenant. 
  

	16.8	Confidentiality 

 The Tenant shall keep confidential all financial information in respect of this Lease,
provided that it may disclose such information to its auditors, consultants and professional advisors so long as they have first agreed to respect such confidentiality. 
  

	16.9	Power, Capacity and Authority 

 The Landlord and the Tenant covenant, represent and warrant to each other
that they have the power, capacity and authority to enter into this Lease and to perform its obligations hereunder and that there are no covenants, restrictions or commitments given by it which would prevent or inhibit it from entering into this
Lease. 
 16.10 Liability of Landlord 
 Any liability of
the Landlord under this Lease shall be limited to its interest in the Building from time to time. If the Landlord consists of more than one Person, the liability of each such Person shall be several and be limited to its percentage interest in the
Building. 

  
 29 

 SCHEDULES 
  

			
	“A”	  	Building Specific Information
		
	“B”	  	Sketch Showing Premises
		
	“C”	  	Rules and Regulations
		
	“D”	  	Indemnity Agreement
		
	“E”	  	Condition of Premises
		
	“F”	  	Environmental Matters

 IN WITNESS WHEREOF the parties hereto have executed this Lease. 

 

							
		 		 	SUN LIFE ASSURANCE COMPANY OF CANADA
		 		 	by its duly authorized Agent
		 		 	BENTALL LIMITED PARTNERSHIP
		 		 	by its General Partner, Bentall G.P. Ltd.
				
		 		 	Per:	 	 

  

		 		 	Name:	 	
		 		 	Title:	 	
				
	 We have the authority
 to bind the
corporation
	 		 	Per:	 	 

  

		 		 	Name:	 	
		 		 	Title:	 	
			
		 		 	AQUINOX PHARMACEUTICALS INC.
		 		 	(Tenant)
				
		 		 	Per:	 	 

  

		 		 	Name:	 	
		 		 	Title:	 	
				
	 I/We have the authority
 to bind the
corporation
	 		 	Per:	 	  

		 		 	Name:	 	
		 		 	Title:	 	

  
 30 

 SCHEDULE “A” BUILDING - SPECIFIC INFORMATION 

Part 1: Legal Description of Building Lands: 
 Parcel
Identifier. 016-649-427 
 Strata Lot 1, Section 5, Block 4 North, Range 5 West, New Westminster District, Plan NW3337, together with an interest in the
common property in proportion to the unit entitlement of the strata lot as shown on Form 1 
 Part 2: Legal Description of Project Lands, if applicable:

 CRESTWOOD 100 
 Parcel Identifier.
026-048-175 
 Parcel A, Section 5, Block 4 North, Range 5 West, New Westminster District, Plan BCP13483 

CRESTWOOD 300 
 Parcel Identifier~
016-510-135 
 Lot 25, Section 5, Block 4North, Range 5 West, New Westminster District, Plan 86865 

CRESTWOOD 400 
 Parcel Identifier.
016-649-427 
 Strata Lot 1, Section 5, Block 4 North, Range 5 West, New Westminster District, Plan NW3337, together with an interest in the common
property in proportion to the unit entitlement of the strata lot as shown on Form 1 
 CRESTWOOD 500 

Parcel Identifier. 026-020-564 
 Strata Lot 1, Section 5,
Block 4 North, Range 5 West, New Westminster District, Plan NW3337, together with an interest in the common property in proportion to the unit entitlement of the strata lot as shown on Form 1 

CRESTWOOD 600 

Parcel Identifier. 016-649-435 
 Strata Lot 1, Section 5,
Block 4 North, Range 5 West, New Westminster District, Plan NW3337, together with an interest in the common property in proportion to the unit entitlement of the strata lot as shown on Form 1 

Part 3: Measurement Standards: 
 Rentable Area includes
all area from exterior of exterior walls and mid-point of demising walls plus a gross-up for building common mechanical, electrical rooms, and other areas for the benefit of more than one tenant including but not limited to vestibules. 

 SCHEDULE “B” SKETCH SHOWING PREMISES 

MAIN FLOOR PREMISES 
  

 

 SECOND FLOOR PREMISES 

 
 

 

 SCHEDULE “C” RULES AND REGULATIONS 

 

	(1)	Security and Safety 

  

	 	(a)	The Landlord may from time to time adopt appropriate systems and procedures for the security and safety of the Building and the tenants and occupants and contents thereof, and the Tenant shall comply with the
Landlord’s requirements in respect of such systems and procedures. 

  

	 	(b)	The Tenant shall participate in fire drills and evacuations of the Building as directed by the Landlord. In the event of an emergency, the Tenant shall vacate the Building if the Landlord or any public authority so
directs in the manner prescribed by the Landlord or such public authority. 

  

	 	(c)	The Tenant shall not keep any inflammable oils or other inflammable, dangerous, corrosive or explosive materials in the Premises or the Project, save and except for amounts used in the Tenants business operations and
kept and used in accordance with all Applicable Laws. 

  

	(2)	Use of Premises 

 The Tenant shall not use or permit the Premises to be used for residential, lodging or
sleeping purposes, or for the storage of personal effects or articles not required for business purposes. The Tenant shall not bring upon the Premises or the Project any equipment, motor or thing which might damage the Building or the Common Areas
and Facilities. The Tenant shall not bring upon the Premises any propane tanks, propane-equipped fork lift tucks, or motor vehicles. 
  

	(3)	Washrooms and Water Fixtures 

 The Tenant shall not use the washrooms or other water fixtures for any
purposes other than those for which they were intended, and no sweepings, rubbish, rags, ashes or other substances shall be thrown into them. 
  

	(4)	Animals and Birds 

 The Tenant shall not bring any animals (except dogs assisting the disabled) or birds
within any part of the Lands or Project without the consent of the Landlord. 
  

	(5)	Antennae, Satellite Dish 

 The Tenant shall not install any radio or television antenna or satellite dish
on any part of the Lands or Project without the prior written consent of the Landlord. 
  

	(6)	Canvassing, Soliciting and Peddling 

 Canvassing, soliciting and peddling in or about the Lands and
Project are prohibited. 
  

	(7)	No Burning Trash 

 The Tenant shall not bum any trash or garbage anywhere on the Project. 

 

	(8)	No Obstructions; Housekeeping 

 The Tenant shall not keep or display any merchandise, supplies,
materials, garbage, refuse or other chattels on, or otherwise obstruct, any part of the Project except as specifically permitted in the Lease. No such merchandise, supplies, materials, garbage, refuse or other chattels shall be allowed to remain on
any loading dock or common area. 
  

	(9)	Employees, Agents and Invitees 

 In these Rules and Regulations, ‘Tenant’ includes the
employees, agents, invitees and licensees of the Tenant and others permitted by the Tenant to use or occupy the Premises. 
  

	(10)	Vehicles 

 No motor vehicles or trailers may be parked overnight at the Premises or the Project. 

 SCHEDULE “D” INDEMNITY AGREEMENT 

INDEMNITY AGREEMENT 
 This Agreement is
made the * day of *, 20*, 
 Between: 

* [name and address of Indemnifier], 

(the “Indemnifier”) 

-and- 
 * [name of Landlord],

 (the “Landlord”). 

WHEREAS: 

A.     The Landlord is the owner of the lands and premises known municipally as * [address of Building] (the
“Building”); and 
 B.     The Indemnifier and * [name of Tenant] (the
“Tenant”) have requested the Landlord to enter into a lease (the “Lease”) dated *, 20* [date of Lease] between the Landlord, as landlord, and the Tenant, as tenant, relating to premises in the Building
and the Landlord has agreed to do so only if the Indemnifier executes and delivers this Agreement in favour of the Landlord; 

NOW THEREFORE for good and valuable consideration (the receipt and sufficiency of which are acknowledged
by the Indemnifier), the Indemnifier agrees with the Landlord as follows: 
 1.     The Indemnifier covenants with the Landlord
that the Tenant will well and truly pay all Rent and other amounts payable under the Lease on the days and at the times and in the manner provided in the Lease, and will observe each and every covenant, proviso, condition, agreement and obligation
contained in the Lease on the part of the Tenant to be performed and observed, and that if any default is made by the Tenant, whether in payment of monies or performance of obligations, the Indemnifier shall forthwith on demand pay to the Landlord
such monies and perform such obligations and pay any and all damages resulting from any non-payment or non-performance. 

2.     The Indemnifier shall be jointly and severally liable with the Tenant for all of the Tenant’s obligations under the
Lease, as if it were separately named as a tenant under the Lease. 
 3.     This Indemnity is absolute and unconditional
and the obligations of the Indemnifier and the rights of the Landlord hereunder shall not be affected or in any way prejudiced or impaired by: (a) any neglect or forbearance by the Landlord in obtaining payment of Rent or other amounts or of
enforcing the provisions of the Lease or the obligations of the Tenant or any waiver or failure to enforce any provision of this Agreement by the Landlord; (b) any extensions of time or other indulgences given by the Landlord to the Tenant;
(c) any amendment of the Lease or other dealing between the Landlord and the Tenant with or without notice to the Indemnifier; (d) any assigning or subletting by the Tenant (with or without the Landlord’s consent); or (e) any
other act or failure to act by the Landlord which would release, discharge or affect the obligations of the Indemnifier if it were a mere surety, with the intent that the obligations of the Indemnifier shall continue and shall not be released,
discharged or reduced or in any way impaired until such time as all of the obligations of the Tenant under the Lease, now existing or to arise at any time in the future, have been fully performed and satisfied. 

4.     The Indemnifier expressly waives notice of the acceptance of this Agreement and all notice of nonperformance, non-payment or
non-observance on the part of the Tenant of the terms, covenants and conditions in the Lease. Without limiting the generality of the foregoing, any notice which the Landlord desires to give to the Indemnifier shall be sufficiently given if
personally delivered, delivered by courier or mailed by registered prepaid post, to the Indemnifier at the Premises, and every such notice is deemed to have been given upon the day it was delivered, or if mailed, on the fifth day following the date
of such mailing. The Indemnifier may designate by notice in writing a substitute address for that set forth above. If two or more persons are named as Indemnifier, such notice given hereunder or under the Lease shall be sufficiently given if
delivered or mailed in the foregoing manner to any one of such Persons. 

  
 1. 

 5.     The obligations of the Indemnifier under this Agreement shall not be released,
discharged or affected by the bankruptcy or insolvency of the Tenant or any proposal made by it to its creditors or any repudiation of the Lease pursuant to the Bankruptcy and Insolvency Act, S.C. 1992, or any successor or similar legislation, or
any disclaimer by any trustee in bankruptcy of the Tenant or by the Tenant ceasing to exist (whether by winding-up, forfeiture, cancellation or surrender of charter, or any other circumstance) or by any event terminating the Lease including a
reentry or termination. If the Lease is terminated prior to the end of its term, except by surrender duly accepted by the Landlord, then, at the option of the Landlord, the Indemnifier shall execute a new lease of the Premises between the Landlord
as landlord and the Indemnifier as tenant for a term equal in duration to the residue of the term remaining unexpired at the date of such termination, and in all other respects upon the same terms and conditions as are set forth in the Lease.

 6.     The Landlord shall not be obliged to exercise its remedies against the Tenant or any other person or against the
Premises or to exhaust any security given by the Tenant before demanding payment of monies or performance of covenants by the Indemnifier. 

7.     The Indemnifier’s obligations under this Agreement bind the Indemnifier and its legal representatives, heirs,
executors, administrators, successors and assigns (as the case may be) and may be assigned by the Landlord, and will benefit and be enforceable by the successors and assigns of the Landlord, and all parties who for the time being have the status of
Landlord under the Lease, whether or not such parties receive a specific assignment of the Lease or of the Indemnifier’s obligations, and whether or not notice of any assignment or change in ownership of the Premises or any project of which the
Premises forms a part is given to the Indemnifier. 
 8.     The grammatical changes required to make the provisions of
this Agreement apply in the plural sense where the Indemnifier comprises more than one person and to corporations, firms, partnerships, or individuals male or female, will be assumed as though in each case fully expressed, and if the Indemnifier
consists of more than one person, the obligations of the Indemnifier shall be deemed to be joint and several obligations of each such person. This Agreement shall be construed in accordance with the laws of the province in which the Building is
located. 
 9.     The Indemnifier acknowledges receipt of a copy of the Lease and covenants, represents and warrants that
it has full power, capacity and authority to enter into this Agreement and to perform its obligations hereunder. No modification of this Agreement shall be effective unless it is in writing and is executed by both the Indemnifier and the
Landlord. 
 10.   Whenever any reference is made in this Agreement to the Lease or the obligations of the Tenant under the Lease,
such reference shall be deemed to include any and all agreements and instruments executed by the Tenant in connection with the Lease or pursuant to the Lease and which relate to the Premises. Any capitalized word or phrase used in and not defined in
this Agreement shall have the meaning given to it in the Lease. 
 IN WITNESS WHEREOF the Landlord and the Indemnifier have duly
executed this Agreement. 

  
 2. 

 SCHEDULE “E” CONDITION OF PREAUSES 

CONSTRUCTION AND COMPLETION OF THE PREMISES

 The Tenant acknowledges and agrees that it is accepting possession of the Premises in an “as is, where is” condition except that the
Landlord shall provide and install to the Premises at the Landlord’s expense and to its base building standard by August 31, 2010 on a reasonable commercial basis, the following work (the “Landlord’s Work”): 

 

	(a)	the work set out in the quote dated November 30, 2009 from Streamline attached hereto as Schedule “E-1”. All mechanical, electrical, HVAC, plumbing systems and hot water supplies shall be properly
separated from the adjacent tenancies as part of the demising work undertaken by the Landlord. Notwithstanding the aforementioned, the boiler and hot water tank located at grid line 8 on the second floor plan attached as Schedule “B”
hereto shall remain in place and not be separated from the adjacent tenancy, at the Landlord’s sole discretion; 

  

	(b)	the work set out on Schedule “E-2” attached hereto; and 

  

	(c)	all base building mechanical, electrical, HVAC and plumbing systems shall be in proper working order at the Commencement Date. 

The Landlord makes no representation or warranty with respect to the usability of any existing phone lines and/or data cables within the Premises. The
Tenant, at its expense, shall be responsible for all modifications required to reuse such phone lines and/or data cables. The Tenant shall be responsible for its own improvements to the Premises (the “Tenant’s Work”) and shall
complete such Tenant’s Work during the Fixturing Period. Should the Tenant require additional utilities, additional heating, ventilation or air conditioning because of the nature of its business, in excess of those already provided to the
Premises, then the Tenant shall be responsible for the cost of installing and/or supplying such additional utilities, subject to the Landlord’s prior approval. The Tenant’s Work is subject to the Landlord’s prior written
approval and shall be made in accordance with Section 9.2 of the Lease the and the Crestwood Commerce Centre Tenant Guidelines. It is understood that the Landlord’s contractor shall be utilized for all changes to the mechanical,
electrical and life safety systems. All costs associated with the Tenant’s Work shall be borne solely by the Tenant, including design and consultants’ fees. The Tenant will be responsible for obtaining all necessary approvals and
building permits from regulatory authorities for the commencement and completion of the Tenant’s Work. No Tenant’s Work shall commence until the Landlord receives proof of the Tenant’s insurance. All terms of the Lease shall be
applicable from the date the Tenant takes possession of the Premises including the Tenant’s obligations to pay for all utilities and services, save for the payment of Basic Rent and the Tenant’s share of Property Taxes and Operating
Costs which shall be payable as of the Commencement Date. 

 SCHEDULE “E-2” LANDLORD’S WORK 

The Landlord shall coordinate removal and/or correction of the following existing installations: 

 

	1.	Removal of the fenced storage located directly behind demising wall (7) as indicated on the main floor plan of Schedule “B” attached hereto. 

 

	2.	Cap or seal the electrical supply to the compressor cage located behind demising wall (6) as indicated on the main floor plan of Schedule “B” attached hereto 

The Landlord shall coordinate correction of the following existing installations: 

 

	1.	Repair/replace cracked heat exchanger in shipping receiving area marked “SUPPLY” located between demising walls (7) and (S) at the rear of the Premises as indicated on the main floor plan of
Schedule “B” attached hereto. 

  

	2.	Electrical wiring from the electrical panels located directly adjacent to demising wall (6) north side at the rear of the Premises as indicated on the main floor plan of Schedule “B” attached hereto
will be reconnected to supply power to the lab areas located between demising walls (7) and (5) as indicated on the main floor plan of Schedule “B” attached hereto. 

 

	3.	Electrical power to be restored to fume hood located in lab room marked “LAB” located directly adjacent to demising wall (6) as indicated on the main floor plan of Schedule “B” attached
hereto. 

  

	4.	Correct exposed wiring in first aid room ceiling marked “F.A.” located between demising walls (6) and (7) as indicated on the main floor plan of Schedule “B” attached hereto.

  

	5.	Restore power to the south wing of the office area of the Premises between demising walls (S) and (9) as indicated on the second floor plan of Schedule “B” attached hereto.

  

	6.	All circuit breakers in electrical panels to be correctly mapped. 

  

	7.	Make operational the HVAC system above the south wing of the office located between demising walls (8) and (9) as indicated on the second floor plan of Schedule “B” attached hereto.

 It is understood by the Landlord and the Tenant that it is the Tenant’s sole responsibility to purchase any non-base building
systems from the existing tenant (if required) at the Tenant’s sole cost prior to the expiry of the existing tenant’s lease. 

 SCHEDULE “F” ENVIRONMENTAL MATTERS 

 

	1.	Representations and Warranties of Tenant 

 Except as may be set out elsewhere in this Schedule,
the Tenant represents and wan-ants as of the date of this Lease that: 
  

	 	(a)	the Tenant has obtained all governmental approvals for its intended operation at the Premises required by any applicable Environmental Laws; 

 

	 	(b)	subject to paragraph 4 below, the Tenant intends to use at the Premises no hazardous, dangerous, toxic or harmful substances or materials, except for limited quantities of cleaning fluids, solvents,
batteries or similar products or substances ordinarily used by the Tenant and necessary in the conduct of its business; and 

  

	 	(c)	the Tenant is not subject to, has no notice or knowledge of, and is not required to give any notice of any Environmental Claim involving the Tenant and there are no conditions or occurrences which could form
the basis for an Environmental Claim against the Tenant. 

  

	2.	Covenants 

 The Tenant covenants and agrees that 

 

	 	(a)	subject to paragraph 4 below, the Tenant will not bring or permit to be brought or stored on the Project any hazardous, dangerous, toxic or harmful substances or materials, except for limited quantities of
cleaning fluids, solvents, batteries or similar products or substances ordinarily used by the Tenant and necessary in the conduct of its business; 

  

	 	(b)	the Tenant will not emit or discharge or permit to be emitted or discharged from the Project any Contaminant; 

  

	 	(c)	the Tenant shall conduct all its operations on the Project in compliance with all Environmental Laws and it shall conduct such operations in accordance with prudent practices aimed at preventing any adverse effects
as same may be defined under the environmental protection legislation in effect in the province in which the Project is situate, and without limiting the generality of the foregoing, shall obtain all requisite permits issued by environmental
agencies and authorities with respect to its operations on the Project; 

  

	 	(d)	the Tenant shall promptly, at its own expense remove any hazardous, dangerous, toxic or harmful substances brought or permitted to be brought by it upon the Project in a manner that conforms with all laws and
regulations covering the removal and movement of same; 

  

	 	(e)	the Tenant shall, at its own expense, expeditiously remove, remediate, clean up and abate any Contaminant and remedy to the reasonable satisfaction of the Landlord any damage to the Project and any surrounding property
caused by, the presence or removal of any hazardous, dangerous, toxic or harmful substances brought, or permitted to be brought by it, upon the Project or by the emission or discharge by it or anyone permitted by it to be on the Project, of any
Contaminant on or from the Project; 

  

	 	(f)	within five (5) business days notify the Landlord in writing of and provide any reasonably requested documents upon learning of any of the following which arise in connection with the Project: 

 

	 	(i)	any liability for corrective action pursuant to any Environmental Laws; 

  

	 	(ii)	any Environmental Claims; 

  

	 	(iii)	any violation of an Environmental Law; or 

  

	 	(iv)	any environmental health or safety condition which could materially impair the condition of the Project; 

  

	 	(g)	upon the written request of the Landlord, to provide at the Tenant’s expense a report of environmental site assessment of reasonable scope, form and depth by a consultant reasonably acceptable to the Landlord as
to: 

  

	 	(i)	any matter to the extent such matter arises during the Lease term and which may reasonably be believed by the Landlord to form the basis of an Environmental Claim in connection with the Project; and 

 

	 	(ii)	the general environmental condition of the Premises within one hundred and eighty (180) days of the termination date of the Lease. 

 If such a requested environmental report is not delivered within thirty (30) days after
receipt of the Landlord’s request; then the Landlord may arrange for same. The reasonable cost of any assessment arranged for or by the Landlord pursuant to this provision shall be payable by Tenant on demand; 

 

	 	(h)	allow the Landlord or its representatives from time to time at Landlord’s reasonable discretion and expense to inspect the Premises and conduct an environmental site assessment (including invasive soil or ground
water sampling), including, without limitation, to facilitate any other sale or lease of the Premises; and 

  

	 	(i)	provide the Landlord financial assurances adequate to secure the eventual satisfaction of any of the Tenant’s obligations pursuant to this Schedule which have not been satisfied as of the termination date.

  

	3.	Indemnification 

 The Tenant shall indemnify and hold harmless the Landlord from any losses, costs
or damages (including without limitation, reasonable solicitor’s fees and disbursements on a solicitor and his client basis and any penalties or fines) to the extent they arise from events or conditions occurring or existing on
or after the commencement date of this Lease and attributable to the conduct of the Tenant and relating to: 
  

	 	(a)	the presence or disposal of any hazardous, dangerous, toxic or harmful substances or any Contaminant on the Premises; 

  

	 	(b)	the operation or violation of any Environmental Law at the Premises; 

  

	 	(c)	any Environmental Claim in connection with the Premises; or 

  

	 	(d)	the inaccuracy of any representation or the breach by the Tenant of any warranty or covenant in this Schedule. 

These indemnifications shall be binding upon the successors and assigns of the Tenant and enure to the benefit of the Landlord, its directors, officers,
employees and agents and their successors and assigns and shall survive the expiration or termination of this Lease. 
  

	4.	to Use Hazardous Substances 

 Notwithstanding anything to the contrary herein or in the Lease
contained, the Landlord acknowledges and agrees that the Tenant uses certain substances and materials in the conduct of the Tenant’s business which would be considered hazardous, dangerous, toxic or harmful substances or
materials or any Contaminant hereunder. Accordingly, the Landlord hereby consents and agrees to the presence of such hazardous, dangerous, toxic or harmful substances or materials or any Contaminant upon the Project and the Premises,
provided the following conditions are met: 
  

	 	(a)	the Tenant shall only bring upon the Project and upon the Premises such hazardous, dangerous, toxic or harmful substances or materials or any Contaminant as are reasonably required for the conduct of its business
operations within the Premises, and shall forthwith remove from the Project and from the Premises any hazardous, dangerous, toxic or harmful substances or materials or any Contaminant which are no longer required for such business operations;

  

	 	(b)	under no circumstances will the Tenant use the Premises or any portion thereof to stockpile or warehouse such hazardous, dangerous, toxic or harmful substances or materials or any Contaminant, other than in such
reasonable quantities as may be required for its business operations within the Premises; 

  

	 	(c)	the Tenant will comply fully with all Environmental Laws related to the transportation, storage, use and disposal of all hazardous, dangerous, toxic or harmful substances or materials or any Contaminant so brought
upon the Project or the Premises by the Tenant; and 

  

	 	(d)	save for the right to bring such hazardous, dangerous, toxic or harmful substances or materials or any Contaminant upon the Project and the Premises for use as aforesaid, the Tenant shall be bound by all of the other
terms and conditions of this Schedule including, without limitation, the obligation to remedy any damage to the Premises or to the Project caused by the Tenant’s exercise of its rights hereunder. 

 SCHEDULE “C” 

 

			
	

	  	Bentall LP
	  	Project No. 09114
	  	November 30, 2009

 Option 1 

Preliminary Construction Estimate - tenant demising / Improvements 

(Option 1: demising wall along gridline 5 on main floor and second floor) 

#425 - 5600 Parkwood Way, Richmond, B.C. 
 Order of Magnitude -
subject to detailed design, details, and components 
  

																					
	 	  	Qty	 	  	Units	 	  	Cost / Unit	 	  	Total	 	  	 	 
	 Demolition and make good affected areas
	  	 	1	  	  	 	ls	  	  	$	4,000.00	  	  	$	4,000	  	  			
	 Full height demising walls - In warehouse (n/a)
	  	 	0	  	  	 	lf	  	  				  	$	0	  	  			
	 Full height demising walls - In office
	  	 	8	  	  	 	lf	  	  	$	200.00	  	  	$	1,600	  	  			
	 Make good existing fire separation walls / fire dampers?
	  	 	1	  	  	 	ls	  	  	$	6,000.00	  	  	$	6,000	  	  			
	 Revise unit washroom to accessible layout
	  	 	1	  	  	 	ea	  	  	$	8,000.00	  	  	$	8,000	  	  			
	 Electrical - emergency & exit lighting & F/A
	  	 	1	  	  	 	ls	  	  	$	2,500.00	  	  	$	2,500	  	  			
	 Misc. work
	  	 	1	  	  	 	ls	  	  	$	4,000.00	  	  	$	4,000	  	  			
	 Sprinklers
	  	 	1	  	  	 	ls	  	  	$	2,500.00	  	  	$	2,500	  	  			
	 * Electrical
	  				  	 	allow	  	  	$	8,000.00	  	  	$	8,000	  	  			
	 * HVAC
	  				  	 	allow	  	  	$	4,000.00	  	  	$	4,000	  	  			
	 Supervision (half time)
	  	 	3	  	  	 	wks	  	  	$	1,100.00	  	  	$	3,300	  	  			
	 General Conditions (Insur., rentals, clean-up, tol, F/A etc)
	  	 	5	  	  	 	%	  	  				  	$	2,195	  	  			
	 Contractor Profit and Overhead
	  	 	10	  	  	 	%	  	  				  	$	4,610	  	  			
		  				  				  				  	  
	  
	 	  			
	 Total Construction
	  				  				  				  	$	50,705	  	  			
		  				  				  				  	  
	  
	 	  			
	 Planning and design drawings
	  	 	1	  	  	 	ls	  	  	$	5,000.00	  	  	$	5,000	  	  			
	 Permits & disbursements
	  	 	1	  	  	 	ea	  	  	$	2,500.00	  	  	$	2,500	  	  			
	 Contingency
	  	 	5	  	  	 	%	  	  				  	$	2,910	  	  			
		  				  				  				  	  
	  
	 	  			
						
	 Total Project Cost
	  				  				  				  	$	61,115	  	  	 	+GST	  
		  				  				  				  	  
	  
	 	  			
						
	 Cost/Square foot of rentable space
	  	 	22,902	  	  	 	sq ft	  	  				  	$	2.67	  	  			
	  

*  Basic demising costs allowance only. (Existing condition must be checked by distributed trades.)
	 

     

	  
 Not included
	  				  				  				  				  			
	 Telephone/data and security systems & wiring
	   
	  				  				  				  			
	 Signage
	  				  				  				  				  			
	 Landlord / Property Management Fee
	  				  				  				  				  			

  
 

         

 SCHEDULE “D” 

The landlord shall coordinate removal and/or correction of the following existing installations: 

 

	 	1.	Removal of the fenced storage located directly behind demising wall (7) detailed in SCHEDULE “A” 

  

	 	2.	Cap or seal the electrical supply to the compressor cage located behind demising wall (6) detailed in SCHEDULE “A” 

The landlord shall coordinate correction of the following existing Installations: 
  

	 	1.	Repair/replace cracked heat exchanger in shipping receiving area marked “SUPPLY” located between demising walls (7) and (8) at the rear of unit detailed in SCHEDULE “A” 

 

	 	2.	Electrical wiring from the electrical panels located directly adjacent to demising wall (6) north side at the rear of unit detailed in SCHEDULE “A” will be reconnected to supply power to the lab areas
located between demising walls (7) and (5) detailed in SCHEDULE “A” 

  

	 	3.	Electrical power to be restored to fume hood located in lab room marked “LAB” located directly adjacent to demising wall (6) detailed in SCHEDULE “A” 

 

	 	4.	Correct exposed wiring in first aid room ceiling marked “F.A.” ” located between demising walls (6) and (7) detailed in SCHEDULE “A” 

 

	 	5.	Power to the south wing of the office area located between demising walls (8) and (9) detailed in SCHEDULE “A” to be restored 

 

	 	6.	All circuit breakers in electrical panels to be correctly mapped 

  

	 	7.	HVAC system above the south wing of office located between demising walls (8) and (9) detailed in SCHEDULE “A” to be made operational 

It is understood by the Landlord and Tenant that it is the Tenant’s sole responsibility to purchase any non-base building systems from the
existing Tenant (if required) at the Tenant’s sole cost prior to the expiry of the existing tenant’s lease. 

 AMENDMENT TO OFFER TO LEASE AND

LANDLORD CONDITIONS PRECEDENT REMOVAL 

Offer to Lease dated February 15, 2010 between Aquinox Pharmaceuticals Inc. (the “Tenant”) and Sun Life Assurance Company of Canada (the
“Landlord”) for premises at Part Building 400, 5600 Parkwood Way, Richmond, B.C. (the “Offer to Lease”) 
  

Pursuant to the above Offer to Lease, the Landlord and Tenant hereby agree to extend the date for waiver of the conditions precedent contained therein to
May 11, 2010. 
 Furthermore, the Landlord and Tenant hereby agree to amend the Offer to Lease as follows: 

 

	1.	The following wording will be added as Clause 32: 

 “INDEMNITY 

In consideration of the Landlord’s execution of this Offer to Lease, Aquinox Pharmaceuticals (USA) Inc. agrees to indemnity and save harmless the
Landlord with respect to any failure in the Tenant’s observance and performance of all terms, covenants and conditions contained in the Offer to Lease and will execute and deliver (on or before the execution of the Lease) the Landlord’s
standard form Indemnity Agreement with respect to the Tenant’s obligations under the Lease.” 
 Furthermore, the parties agree to remove their
respective conditions precedent contained therein, namely: 
 LANDLORD 

As per Clause 13 of the Offer to Lease: 
  

	 	a.	The Landlord’s senior executive’s final approval; 

  

	 	b.	The Landlord reviewing and approving the cost of any work required to the Demised Premises to meet all applicable building, fire safety or handicap accessibility codes; and 

 

	 	c.	the Landlord reviewing and approving the cost of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy. 

The Landlord also confirms that it has reviewed the Tenant’s financial information in accordance with Clause 10 of the Offer to Lease and the Landlord
hereby removes its condition contained therein. 
 TENANT 

As per Clause 12 of the Offer to Lease: 
  

	 	a.	The approval of the Tenant’s board of directors; 

  

	 	b.	Review and approval of the Lease; 

  

	 	c.	The Tenant finalizing a round of financing in an amount not less than Fourteen Million Five Hundred Thousand dollars ($14,500,000.00) by March 9, 2010; 

	 	d.	The Tenant approving the scope of any work required to the Demised Premises to meet any applicable building, fire safety or handicap accessibility codes; 

 

	 	e.	The Tenant approving the scope of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy; and 

  

	 	f.	The Tenant’s review and approval of the costs associated with the acquisition and restoration (if any) of the existing Tenant’s business and Trade Fixtures. 

The Offer to Lease is now fully binding on and accepted by both the Landlord and Tenant. 

 

									
	SUN LIFE ASSURANCE COMPANY OF CANADA	 		 		 	
	by its duly authorized Agent	 		 		 	Dated this 10th day of May, 2010
	BENTALL LIMITED PARTNERSHIP	 		 		 	
	By its General Partner, Bentall G.P. Ltd.	 		 		 	
					
	PER:	 	 

	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	
					
	PER:	 	  
	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	
				
	AQUINOX PHARMACEUTICALS INC.	 		 		 	Dated this 11th day of May, 2010
					
	PER:	 	 

	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	
					
	PER:	 	  
	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	
				
	AQUINOX PHARMACEUTICALS (USA) INC.	 		 		 	Dated this 11th day of May, 2010
					
	PER:	 	 

  
	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	
					
	PER:	 	  
	 		 		 	
		 	(AUTHORIZED SIGNATORY)	 		 		 	

 SUBJECT EXTENSION 

CB Richard Ellis Limited 
 #600 - 1111 West Georgia Street 

Vancouver, B.C. 
 V6E 4M3 

Attention: Mr. Kevin Nelson 
  

	Re:	Offer to Lease between Aquinox Pharmaceuticals Inc. (the “Tenant”) and Sun Life Assurance Company of Canada (the “Landlord”) for a portion of the building located at 5600 Parkwood Way, Richmond, BC,
accepted March 3rd, 2010. 

  

The Landlord and Tenant hereby agree to extend the Landlord and Tenant Conditions in the above noted Offer to Lease from March 24th, 2010 until April 7th, 2010. 
 “12.
TENANT’S CONDITIONS 
 This Offer to Lease is subject to: 
  

	 	a.)	The approval of the Tenant’s board of directors; 

  

	 	b.)	Review and approval of the Lease; 

  

	 	c.)	The Tenant finalizing a round of financing in an amount not less than Fourteen Million Five Hundred Thousand Dollars ($14,500,000) by March 9th, 2010;

  

	 	d.)	The Tenant approving the scope of any work required to the Demised Premises to meet any applicable building, fire safety or handicap accessibility codes; 

 

	 	e.)	The Tenant approving the scope of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy; 

  

	 	f.)	The Tenant’s review and approval of the costs associated with the acquisition and restoration (if any) of the existing Tenant’s business and trade fixtures. 

13. LANDLORD’S CONDITIONS 
 This Offer to
Lease is subject to: 
  

	 	a.)	The Landlord’s senior executive final approval; 

  

	 	b.)	The Landlord reviewing and approving the cost of any work required to the Demised Premises to meet any applicable building, fire safety and handicap accessibility codes; and 

 

	 	c.)	The Landlord reviewing and approving the cost of any restoration required to the Demised Premises to accommodate the Tenant’s tenancy.” 

AGREED to and EXECUTED at Vancouver, BC this 26th day of March, 2010. 

 

									
	AQUINOX PHRMACEUTICALS INC.	 		 	
	Per:	 	 

	 		 		 	  
  
  

 
  
  

		 	(Authorized Signatory)	 		 		 	(Witness)
	
	AGREED to and EXECUTED at Vancouver, BC this 26th day of March, 2010.
			
	SUN LIFE ASSURANCE COMPANY OF CANADA	 		 	
					
	Per:	 	 

	 		 		 	  
  
  

 
  

		 	(Authorized Signatory)	 		 		 	(Witness)Asset Purchase Agreement

 Exhibit 10.12 

[*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS
DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 ASSET PURCHASE AGREEMENT 

among 
 AQUINOX
PHARMACEUTICALS INC. 
 and 

BIOLIPOX AB (publ.) 
 and

 OREXO AB (publ.) 

Dated: August 19th, 2009 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 ASSET PURCHASE AGREEMENT 

 

							
	 Article 1 Interpretation
	  	 	1	  
	 1.1
	 	Definitions	  	 	1	  
	 1.2
	 	Currency	  	 	10	  
	 1.3
	 	Headings; Wording	  	 	10	  
		
	 Article 2 Assets and Liabilities
	  	 	10	  
	 2.1
	 	Purchase and Sale of Acquired Assets	  	 	10	  
	 2.2
	 	License Grant	  	 	10	  
	 2.3
	 	Assumed Liabilities	  	 	11	  
	 2.4
	 	Retained Liabilities	  	 	11	  
	 2.5
	 	Restricted Contracts	  	 	12	  
	 2.6
	 	Additional Buyer Interests	  	 	12	  
		
	 Article 3 Consideration
	  	 	13	  
	 3.1
	 	Additional Definitions	  	 	13	  
	 3.2
	 	Purchase Price	  	 	13	  
	 3.3
	 	Purchase Price Allocation	  	 	14	  
	 3.4
	 	Taxes	  	 	14	  
	 3.5
	 	Audits	  	 	15	  
	 3.6
	 	Development	  	 	15	  
	 3.7
	 	Information	  	 	15	  
	 3.8
	 	Conditions to Issuance of Payment Shares	  	 	16	  
		
	 Article 4 Closing
	  	 	16	  
	 4.1
	 	Closing	  	 	16	  
	 4.2
	 	Closing Conditions of Buyer	  	 	16	  
	 4.3
	 	Closing Conditions of Seller	  	 	17	  
		
	 Article 5 Pre-Closing Covenants
	  	 	18	  
	 5.1
	 	Forbearance and Fiduciary Duties	  	 	18	  
	 5.2
	 	Governmental and Other Third Party Consents	  	 	19	  
	 5.3
	 	Due Diligence	  	 	19	  
	 5.4
	 	Notification of Certain Matters	  	 	19	  
	 5.5
	 	General Pre-Closing Covenants	  	 	20	  
	 5.6
	 	Further Assurances	  	 	21	  
		
	 Article 6 Post-Closing Covenants
	  	 	21	  
	 6.1
	 	Set Off	  	 	21	  
	 6.2
	 	Assistance in Proceedings	  	 	21	  
	 6.3
	 	Technology Transfer	  	 	22	  
	 6.4
	 	Employees	  	 	22	  
	 6.5
	 	Intellectual Property Matters	  	 	22	  
	 6.6
	 	Non-Competition	  	 	22	  

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

							
	 Article 7 Representations and Warranties of Seller
	  	 	23	  
	 7.1
	 	Scope	  	 	23	  
	 7.2
	 	Organization and Good Standing	  	 	23	  
	 7.3
	 	Enforceability; Authority; No Conflict	  	 	23	  
	 7.4
	 	Title to and Sufficiency of Acquired Assets	  	 	24	  
	 7.5
	 	No Undisclosed Liabilities	  	 	24	  
	 7.6
	 	Compliance with Legal Requirements; Governmental Authorizations	  	 	24	  
	 7.7
	 	Legal Proceedings; Orders	  	 	25	  
	 7.8
	 	Intellectual Property	  	 	25	  
	 7.9
	 	Taxes	  	 	27	  
	 7.10
	 	Contracts; No Defaults	  	 	28	  
	 7.11
	 	No Material Adverse Effect	  	 	28	  
	 7.12
	 	Inflazyme Biolipox Asset Purchase Agreement	  	 	29	  
	 7.13
	 	Brokers or Finders	  	 	29	  
	 7.14
	 	Acquisition of Payment Shares by Seller	  	 	30	  
	 7.15
	 	Disclosure	  	 	34	  
		
	 Article 8 Representations and Warranties of Buyer
	  	 	35	  
	 8.1
	 	Scope	  	 	35	  
	 8.2
	 	Organization and Good Standing; Articles and Bylaws	  	 	35	  
	 8.3
	 	Enforceability; Authority; No Conflict	  	 	35	  
	 8.4
	 	Legal Proceedings; Orders	  	 	36	  
	 8.5
	 	Brokers or Finders	  	 	36	  
	 8.6
	 	Capitalization; Authorization	  	 	36	  
	 8.7
	 	Financial Information	  	 	38	  
		
	 Article 9 Indemnification; Remedies
	  	 	38	  
	 9.1
	 	Survival	  	 	38	  
	 9.2
	 	Indemnification and Reimbursement by Seller	  	 	39	  
	 9.3
	 	Bulk Sales Laws	  	 	39	  
	 9.4
	 	Indemnification and Reimbursement by Buyer	  	 	39	  
	 9.5
	 	Limitations on Amount	  	 	39	  
	 9.6
	 	Third-Party Claims	  	 	40	  
	 9.7
	 	Guarantee	  	 	42	  
		
	 Article 10 Confidentiality
	  	 	43	  
	 10.1
	 	Existing Confidentiality Agreement	  	 	43	  
	 10.2
	 	Confidential Information	  	 	43	  
	 10.3
	 	Confidentiality Obligations	  	 	44	  
	 10.4
	 	Acknowledgement	  	 	44	  
		
	 Article 11 Termination
	  	 	44	  
	 11.1
	 	Termination	  	 	44	  
	 11.2
	 	Effect of Termination	  	 	45	  

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

							
	 Article 12 General Provisions
	  	 	45	  
	 12.1
	 	Expenses	  	 	45	  
	 12.2
	 	Public Announcements	  	 	45	  
	 12.3
	 	Notices	  	 	45	  
	 12.4
	 	Enforcement of Agreement	  	 	46	  
	 12.5
	 	Waiver; Remedies Cumulative	  	 	46	  
	 12.6
	 	Entire Agreement and Modification	  	 	47	  
	 12.7
	 	Assignments, Successors, and No Third Party Rights	  	 	47	  
	 12.8
	 	Severability	  	 	47	  
	 12.9
	 	Governing Law	  	 	48	  
	 12.10
	 	Dispute Resolution	  	 	48	  
	 12.11
	 	Execution of Agreement	  	 	49	  
	 12.12
	 	Force Majeure	  	 	49	  

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 ASSET PURCHASE AGREEMENT 

THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of August
19th, 2009, among AQUINOX PHARMACEUTICALS INC., a Canadian corporation (“Buyer”) and BIOLIPOX AB (publ.), a Swedish corporation (corporate registration no.
556588-3658) (“Seller”) and OREXO AB (publ.), a Swedish corporation (corporate registration no. 556500-0600) (“Guarantor”). Buyer and Seller are sometimes referred to individually herein as a
“Party” and collectively as the “Parties”. 
 Background 

 

	A.	The Seller purchased certain assets relating to LSAIDs (as defined herein) pursuant to an Asset Purchase Agreement with Inflazyme Inc. and Inflazyme Pharmaceuticals Ltd. and Adprotech Limited dated September 20,
2007 (the “Biolipox-Inflazyme Asset Purchase Agreement”); and 

  

	B.	The Parties desire to complete a transaction in which Buyer will purchase all of the assets of Seller relating exclusively or principally to LSAIDs in exchange for cash and future milestone payments, all as set forth in
this Agreement. 

 The Parties therefore agree as follows: 

Article 1 Interpretation 
 1.1
Definitions 
 For purposes of this Agreement, the following terms and variations thereof have the meanings specified or referred to below: 

 

	 	1.1.1	“1933 Act” shall have the meaning set forth in Section 7.14.1.1. 

  

	 	1.1.2	“Acquired Assets” shall have the meaning set forth in Section 2.1. 

  

	 	1.1.3	“Additional Buyer Interests” means any other rights or assets that are integral to the use, development, making and commercialisation of any Compound and which are held by Seller at the Closing Date,
which are exclusively or principally related to the Compounds and which are not otherwise included in the Acquired Assets, all as subsequently agreed by the Parties in accordance with Section 2.6. 

 

	 	1.1.4	 “Affiliate” means any Person that directly or indirectly controls, is controlled by or is under common control with such specified
Person and each Person that serves as a director, officer, partner, executor or trustee of such specified Person (or in a similar capacity). For purposes of this definition “control” (including “controlling,” “controlled
by,” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. For the purposes of this Agreement, Aquinox Pharmaceuticals
(USA) Inc. shall be deemed an Affiliate of Buyer. 

  

	 	1.1.5	“Aquinox US” means Aquinox Pharmaceuticals (USA) Inc. 

  

	 	1.1.6	“Assumed Contracts” means the Contracts (or surviving rights and provisions of terminated or expired Contracts, as applicable) listed on Schedule 2.3, assigned to Buyer at the Closing.

  

	 	1.1.7	“Assumed Liabilities” shall have the meaning set forth in Section 2.3. 

  

	 	1.1.8	“BC Securities Act” shall have the meaning set forth in Section 7.14.1.2. 

  

	 	1.1.9	“Biolipox-Inflazyme Asset Purchase Agreement” has the meaning set out in Recital A. 

  

	 	1.1.10	“Business” means the business operations (including all research, non-clinical evaluation, clinical investigation, development, manufacturing and commercialization activities) of Seller or its
predecessor in title carried out with respect to the Compounds. 

  

	 	1.1.11	“Business Day” means any day that is not a Saturday, Sunday or a day on which commercial banks located in Vancouver, British Columbia, Canada, or Stockholm, Sweden, are required or authorized by law to
close. 

  

	 	1.1.12	“Buyer” shall have the meaning set forth in the first paragraph of this Agreement. 

  

	 	1.1.13	“Buyer Closing Documents” shall have the meaning set forth in Section 8.3.1. 

  

	 	1.1.14	“Buyer Disclosure Schedule” means the disclosure schedules described in Article 8. 

  

	 	1.1.15	“Buyer Indemnified Persons” shall have the meaning set forth in Section 9.2. 

  

	 	1.1.16	“Closing” shall have the meaning set forth in Section 4.1. 

  

	 	1.1.17	“Closing Date” shall have the meaning set forth in Section 4.1. 

  

	 	1.1.18	 “Commercially Reasonable Efforts” shall mean efforts in accordance with the efforts and resources a company having a comparable
market value in the research and development-based biotech industry would devote to a compound owned by it or to which it has rights, which is of similar market potential and at a similar stage in development as the applicable Compound, taking into
account the competitiveness of the marketplace, the proprietary position of the 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
Compound, the relative potential safety and efficacy of the Compound, the Regulatory Approvals involved in its Development and the cost of goods and availability of capacity to manufacture and
supply the Compound at commercial scale, the Development results achieved by Seller, its licensees and predecessors-in-interest prior to the Effective Time, and available funds. 

 

	 	1.1.19	“Compound” shall have the meaning set forth in Section 2.1. 

  

	 	1.1.20	“Confidential Information” shall have the meaning set forth in Section 10.2. 

  

	 	1.1.21	“Consent” means any approval, consent, ratification, waiver or other authorization. 

  

	 	1.1.22	“Contemplated Transactions” means all of the transactions contemplated by this Agreement. 

  

	 	1.1.23	“Contract” means any agreement, contract, license, assignment, consensual obligation, promise or undertaking (whether written or oral and whether express or implied), whether or not legally binding:
(a) under which Seller has or may acquire any rights or benefits; (b) under which Seller has or may become subject to any obligation or Liability; or (c) by which Seller or any of the Acquired Assets owned or used by Seller is or may
become bound. 

  

	 	1.1.24	“Copyright” means writings and other works of authorship, including marketing materials, brochures and training materials that are owned by Seller and used exclusively in connection with the Acquired
Assets and the conduct of the Business, and all copyrights and moral rights related to such writings and other works of authorship. 

  

	 	1.1.25	“Damages” shall have the meaning set forth in Section 9.2. 

  

	 	1.1.26	“Designated Excluded Assets” shall have the meaning set forth in Section 2.1. 

  

	 	1.1.27	“Development” or “Develop” means all clinical and other activities undertaken to obtain Regulatory Approval, including, without limitation test method development and stability testing,
toxicology, animal studies, formulation, process development, manufacturing, manufacturing scale-up, development-stage manufacturing, quality assurance/quality control development, statistical analysis and report writing, clinical trial design and
operations, obtaining Regulatory Approvals, and regulatory affairs related to the foregoing. When used as a verb, “Developing” means to engage in Development and “Developed” shall have a corresponding meaning.

  

	 	1.1.28	“Effective Time” shall have the meaning set forth in Section 4.1. 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	1.1.29	“Encumbrance” means any charge, hypothec, mortgage, deed of trust, assignment, claim, condition, equitable interest, lien, option, pledge, security interest, right of first option, right of first
refusal or similar restriction of any nature whatsoever, including any restriction on use, voting (in the case of any security or equity interest), transfer, receipt of income or exercise of any other attribute of ownership. 

 

	 	1.1.30	“FDA” means the United States Food and Drug Administration or any successor agency. 

  

	 	1.1.31	“Financial Statements” shall have the meaning set forth in Section 8.6. 

  

	 	1.1.32	“First Commercial Sale” means, with respect to an LSAID Product, the first sale, transfer or disposition for value or for end-use or consumption of the LSAID Product in a country following the receipt
or issuance of Regulatory Approval for the LSAID Product in that country. 

  

	 	1.1.33	“Force Majeure” means any occurrence beyond the reasonable control of a Party that prevents or substantially interferes with the performance by the Party of any of its obligations hereunder, including
any act of God, flood, fire, explosion, electrical blackout, catastrophic weather, earthquake, strike, lockout, labor dispute, or war, revolution, civil commotion, acts of terrorism, acts of public enemies, blockage or embargo, or any injunction,
law, order, proclamation, regulation, ordinance, demand or requirement of any government or of any subdivision, authority or representative of any such government, if and only if the Party affected shall have used reasonable efforts to avoid such
occurrence and to remedy it promptly if it shall have occurred. 

  

	 	1.1.34	“Governing Documents” means with respect to any particular entity: (a) any charter or similar document adopted or filed in connection with the creation, formation or organization of the Person;
(b) all shareholders’ agreements, voting agreements, voting trust agreements, joint venture agreements, registration rights agreements or other agreements or documents relating to the organization, management or operation of any Person or
relating to the rights, duties and obligations of the shareholders of any Person; and (c) any amendment or supplement to any of the foregoing. 

  

	 	1.1.35	“Governmental Authorization” means any Consent, license, registration or permit issued, granted, given or otherwise made available by or under the authority of any Governmental Body or pursuant to any
Legal Requirement. 

  

	 	1.1.36	 “Governmental Body” means any: (a) nation, state, province, county, city, town, borough, village, district or other
jurisdiction; (b) federal, state, provincial, local, municipal, foreign or other government; (c) governmental or quasi-governmental authority of any nature (including any agency, branch, department, board, commission, court, tribunal or
other entity exercising 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
governmental or quasi-governmental powers); (d) multinational organization or body; (e) body exercising, or entitled or purporting to exercise, any administrative, executive, judicial,
legislative, police, regulatory or taxing authority or power; or (f) official of any of the foregoing. 

  

	 	1.1.37	“Guarantor” shall have the meaning set forth in the first paragraph of this Agreement. 

  

	 	1.1.38	“IND” means an investigational new drug application filed with the FDA pursuant to 21 C.F.R. Part 312 before the commencement of clinical trials of a product, or any CTX, clinical trial application or
other comparable filing with any relevant regulatory authority in any other jurisdiction. 

  

	 	1.1.39	“Indemnified Person” shall have the meaning set forth in Section 9.6.1. 

  

	 	1.1.40	“Indemnifying Person” shall have the meaning set forth in Section 9.6.1. 

  

	 	1.1.41	“Intellectual Property” shall collectively mean, Patents, Trade Secrets, Copyrights, Trademarks, Know-How, moral rights, trade names, domain names, rights in trade dress, and all other intellectual
property rights and proprietary rights relating to the Compounds, including all rights or causes of action for infringement or misappropriation of any of the foregoing. 

 

	 	1.1.42	“International Jurisdiction” shall have the meaning set forth in Section 7.14.3.3. 

  

	 	1.1.43	“ITA” means the Income Tax Act (Canada). 

  

	 	1.1.44	“Know-How” means all information not in the public domain, including ideas, discoveries, inventions, data (including all clinical and non-clinical data), formulae, techniques, procedures for experiments
and tests, manufacturing and technical information, specifications, results of experiments and tests, designs, sketches, records and confidential analyses and interpretations of information. 

 

	 	1.1.45	“Knowledge” means the actual knowledge of any director or officer of a Party, assuming due inquiry. 

  

	 	1.1.46	“Legal Requirement” means any federal, state, provincial, local, municipal, foreign, international, multinational or other constitution, law, ordinance, principle of common law, code, regulation,
statute or treaty. 

  

	 	1.1.47	“Liability” means with respect to any Person, any liability or obligation of such Person of any kind, character or description, whether known or unknown, absolute or contingent, accrued or unaccrued,
disputed or undisputed, liquidated or unliquidated, secured or unsecured, joint or several, due or to become due, vested or unvested, executory, determined, determinable or otherwise, and whether or not the same is required to be accrued on the
financial statements of such Person. 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	1.1.48	“LSAID Development Compound” has the meaning set forth in Section 3.2.2. 

  

	 	1.1.49	“LSAID Product” means a product containing a Compound that is approved by a Regulatory Authority for use as a human therapeutic. 

 

	 	1.1.50	“LSAIDs” means the compounds referred to by Seller as leukocyte-selective anti-inflammatory drugs, including the classes of compounds containing the molecules referred to by Seller as IPL512,602,
IPL576,092, and IPL550,260 and all compounds claimed, whether by genus or species, under the Patents identified in Schedule 7.8.2 of the Seller Disclosure Schedule. 

 

	 	1.1.51	“Material Adverse Effect” means a material adverse effect on any of the Acquired Assets or the conduct of the Business, but in each case shall not include the effect of events, changes and circumstances
relating to: (a) the pharmaceuticals industry generally; (b) macroeconomic factors, interest rates, general financial market conditions, natural disasters, war, terrorism or hostilities; (c) changes in Legal Requirements, generally
accepted accounting principles or official interpretations of the foregoing; (d) compliance with this Agreement; or (e) the Contemplated Transactions or any announcement hereof of the identity of Buyer; provided, that in the case of (a),
(b) and (c), such changes, events, developments, effects or occurrences do not disproportionately adversely affect the Acquired Assets and the conduct of the Business relative to the other participants in the pharmaceuticals industry.

  

	 	1.1.52	“Milestones” has the meaning set forth in Section 3.2. 

  

	 	1.1.53	“NDA” means a New Drug Application, as defined in the United States Food, Drug and Cosmetic Act and applicable regulations promulgated thereunder as the same may be amended or replaced
from time to time. 

  

	 	1.1.54	“NI 45-106” shall have the meaning set forth in Section 7.14.2.2. 

  

	 	1.1.55	“Order” means any order, injunction, judgment, decree, ruling, assessment or arbitration award of any Governmental Body or arbitrator. 

 

	 	1.1.56	“Ordinary Course of Business” shall have the meaning set forth in Section 5.5. 

  

	 	1.1.57	“Orexo-Aquinox Confidentiality Agreement” means the Confidentiality Agreement between Aquinox Pharmaceuticals Inc. and Orexo AB (publ.) dated March 26, 2009. 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	1.1.58	“Parties” shall have the meaning set forth in the first paragraph of this Agreement. 

  

	 	1.1.59	“Party” shall have the meaning set forth in the first paragraph of this Agreement. 

  

	 	1.1.60	“Patents” means all patents, patent applications, industrial and utility models, certificates of inventions and other government granted indices of ownership of invention used in connection with the
Compounds as set out in Schedule 7.8.2, including continuations, continuations-in-part, divisionals, reissues, supplemental protection certificates (and applications therefor) or extensions of any of the foregoing. 

 

	 	1.1.61	“Payment Shares” shall have the meaning set forth in Section 3.2.3. 

  

	 	1.1.62	“Permitted Encumbrance” shall mean the registration under the Personal Property Security Act (British Columbia) by the University of British Columbia and the University of Alberta
related to the UBC/UA License Agreement. 

  

	 	1.1.63	“Person” means an individual, partnership, corporation, business trust, limited liability company, limited liability partnership, joint stock company, trust, unincorporated association, joint venture or
other entity or a Governmental Body. 

  

	 	1.1.64	“Phase III Clinical Study” means a human clinical study in any country conducted after Phase II Clinical Studies that is conducted to evaluate the comparative safety and efficacy of a drug or drug
combination to the current standard of care, that would otherwise satisfy the requirements of 21 C.F.R. §312.21, or a similar clinical study in a country other than the United States. The data obtained is the principal data used by regulators
for Regulatory Approval. 

  

	 	1.1.65	“Proceeding” means any action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal, administrative, judicial or investigative, whether formal or informal, whether
public or private) commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental Body or arbitrator, or a demand or claim for any of the foregoing. 

 

	 	1.1.66	“Purchase Price” shall have the meaning set forth in Section 3.2. 

  

	 	1.1.67	 “Records” means all records, documents and files of Seller relating to the Acquired Assets and the Assumed Liabilities, including all
records, documents and files relating to the Intellectual Property, correspondence with the FDA and other Governmental Bodies, validation documents and data, market studies, quality control histories pertaining to the Compounds, suppliers lists,

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
market studies, lapsed or abandoned patent applications, manuscripts, laboratory notebooks, quality assurance/control procedures and records, product and raw material specifications, clinical and
preclinical data or results, regulatory compliance filings and other regulatory records, technical data and other reports, all structure-activity relationship data, microfilm or microfiche, computer data files, documents, and other tangible
embodiments in whatever media form. 

  

	 	1.1.68	“Regulatory Approval” means any approval, product and establishment license, registration or authorization of any Regulatory Authority necessary for the manufacture, use, storage, importation, transport
or sale of a Compound in any regulatory jurisdiction. 

  

	 	1.1.69	“Regulatory Authority” means the FDA or any counterpart of the FDA outside the United States, or other national, supra-national, regional, state, provincial or local regulatory agency, department,
bureau, commission, council or other governmental entity with authority over the distribution, importation, exportation, manufacture, production, use, storage, transport or clinical testing or sale of a drug. 

 

	 	1.1.70	“Representative” means, with respect to a particular Person, any director, officer, manager, employee, agent, advisor, accountant, financial advisor, legal counsel or other representative of that
Person. 

  

	 	1.1.71	“Restricted Contract” shall have the meaning set forth in Section 2.5. 

  

	 	1.1.72	“Retained Liabilities” shall have the meaning set forth in Section 2.4. 

  

	 	1.1.73	“Rule 144” shall have the meaning set forth in Section 7.14.1.6(d). 

  

	 	1.1.74	“Rules” shall have the meaning set forth in Section 12.10. 

  

	 	1.1.75	“Securities Laws” shall have the meaning set forth in Section 7.14.1.4. 

  

	 	1.1.76	“Seller” shall have the meaning set forth in the first paragraph of this Agreement. 

  

	 	1.1.77	“Seller Closing Documents” shall have the meaning set forth in Section 7.3.1. 

  

	 	1.1.78	“Seller Disclosure Schedule” means the disclosure schedules described in Article 7. 

  

	 	1.1.79	“Seller Indemnified Persons” shall have the meaning set forth in Section 9.4. 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	1.1.80	“Tax” means any income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, property, environmental, windfall profit, customs, vehicle, airplane, boat, vessel or
other title or registration, capital stock, franchise, employees’ income withholding, foreign or domestic withholding, social security, unemployment, disability, real property, personal property, sales, use, transfer, value added, alternative,
add-on minimum and other tax, fee, assessment, levy, tariff, charge or duty of any kind whatsoever and any interest, penalty, addition or additional amount thereon imposed, assessed or collected by or under the authority of any Governmental Body or
payable under any tax-sharing agreement or any other Contract. 

  

	 	1.1.81	“Tax Return” means any federal, state, provincial, municipal, local or foreign return, report, statement, schedule, notice, form or declaration filed with or submitted to, or required to be filed with
or submitted to, any Governmental Body in connection with the determination, assessment, collection or payment of any Tax. 

  

	 	1.1.82	“Third Party” means a Person that is not a party to this Agreement. 

  

	 	1.1.83	“Third-Party Claim” means any claim against any Indemnified Person by a Third Party, whether or not involving a Proceeding. 

 

	 	1.1.84	“Third Party IP” shall have the meaning set forth in Section 7.8.4. 

  

	 	1.1.85	“Threshold” shall have the meaning set forth in Section 9.5.1. 

  

	 	1.1.86	“Trademarks” means all trademarks, service marks, brand names, distinguishing guises, trade dress, logos, trade names, words, symbols, color schemes, business names, internet domain names and other
indications of origin used exclusively in connection with the Compounds, together with all applications, registrations, and renewals in connection therewith, all translations, adaptations, derivations, thereof, and all goodwill associated therewith.

  

	 	1.1.87	“Trade Secrets” means all Know-How, trade secrets, confidential or proprietary information, discoveries, methods, processes, technical data, specifications, research and development information,
technology, customer lists, software, technical information, data, specifications, formula, process technology, plans, drawings and blue prints related exclusively or principally to the Compounds. 

 

	 	1.1.88	“UBC/UA License Agreement” means the License Agreement between the University of British Columbia, the University of Alberta and Inflazyme Pharmaceuticals Inc. dated April 1, 1993 as amended by an
agreement dated February 18, 1998, as assigned by Inflazyme Pharmaceuticals Inc. to Inflazyme Inc. by an Assignment of License Agreement dated September 20, 2005 and as subsequently assigned to Seller on November 16, 2007.

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 1.2 Currency 

Unless otherwise stated, all references to dollar amounts in this Agreement shall refer to United States dollars. 

1.3 Headings; Wording 
 The paragraphs and other headings
contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. All references in this Agreement to an Article, Section or Schedule shall refer to an Article, Section or Schedule in
or to this Agreement, unless otherwise stated. Any reference to any federal, national, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise.
The word “including” and similar words shall mean including without limitation. The words “herein,” “hereof” 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. References in this Agreement to “provisions of this Agreement” refer to the terms, conditions and promises contained in this Agreement taken as a whole. All references to days, months,
quarters or years are references to business days, calendar months, calendar quarters, or calendar years. References to the singular include the plural. 

Article 2 Assets and Liabilities 
 2.1
Purchase and Sale of Acquired Assets 
 At the Closing, Seller shall sell, transfer, convey, assign and deliver to Buyer, and Buyer shall purchase
from Seller, free and clear of all Encumbrances, other than the Permitted Encumbrance, all right, title and interest in and to all of the assets of Seller relating exclusively or principally to all molecules acquired, discovered or otherwise arising
out of the research programs of Seller or its predecessors in title directed to the LSAIDs (each such molecule is referred to as a “Compound”) (collectively, the “Acquired Assets”). The Acquired Assets shall include
the assets described on Schedule 2.1. Buyer shall have the right to designate any of the Acquired Assets as excluded prior to Closing (the “Designated Excluded Assets”) and not to acquire Designated Excluded Assets at Closing. 

 2.2 License Grant 
 Effective at the Effective
Time, Seller hereby grants to Buyer an exclusive, worldwide, royalty-free, fully paid-up license (or sublicense, as the case may be) (with the right to sublicense) to any other intellectual property assets in which Seller has ownership, or other
rights acquired, pursuant to the Biolipox-Inflazyme Asset Purchase Agreement that are required for the development, manufacture or commercialization of the Compounds, but that are not included in the Acquired Assets, for use in the development,
manufacture and commercialization of the Acquired Assets. 

  
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CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 2.3 Assumed Liabilities 

At the Closing and except as set forth on Schedule 2.3, Buyer shall assume and become obligated to pay, perform and discharge when due, only to the extent
arising after the Effective Time: 
  

	 	2.3.1	any Liability under the Governmental Authorizations; 

  

	 	2.3.2	any Liability under the Assumed Contracts (which Assumed Contracts are listed on Schedule 2.3); and 

  

	 	2.3.3	any Liability for Patent fees, milestone payments, royalties or any other payments due in respect of the Acquired Assets under the UBC/UA License Agreement. 

(collectively, the “Assumed Liabilities”). 

2.4 Retained Liabilities 
 Other than the Assumed
Liabilities, Buyer shall not assume or in any way be liable for the payment, performance or discharge of any liabilities of Seller, and for the avoidance of doubt and without limiting the generality of the foregoing, Seller shall retain and shall
punctually pay, perform or otherwise discharge when due, all liabilities relating to the conduct of the Business (collectively, the “Retained Liabilities”). The Retained Liabilities shall include: 

 

	 	2.4.1	any Liability arising prior to the Effective Time from or under any Contracts relating to the Acquired Assets, other than as set forth in Section 2.3.2; 

 

	 	2.4.2	notwithstanding the foregoing, for greater certainty, any obligations of Seller under (a) the Consent to Assignment of License Agreement among Inflazyme Inc., Biolipox AB (publ.), The University of British Columbia
and The University of Alberta dated November 16, 2007, and (b) the Biolipox-Inflazyme Asset Purchase Agreement. 

  

	 	2.4.3	any Liability for Taxes, including: (i) any Taxes arising as a result of Seller’s operation of the Business or ownership of the Acquired Assets prior to the Effective Time; (ii) subject to
Section 3.4, any Taxes that will arise as a result of the sale of the Acquired Assets pursuant to this Agreement; and (iii) any deferred Taxes of any nature; 

 

	 	2.4.4	any Liability arising prior to the Effective Time from or under any environmental Legal Requirement or any occupational safety and health Legal Requirement; 

 

	 	2.4.5	any Liability relating to the Designated Excluded Assets; 

  

	 	2.4.6	any Liability in respect of any employees of Seller; and 

  
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CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	2.4.7	any Liability incurred by or on behalf of Seller arising from the Contemplated Transactions, including all legal fees, costs and disbursements payable in connection therewith. 

2.5 Restricted Contracts 
 If, as of the Closing
Date, Consent from a Third-Party is required for the assignment of an Assumed Contract (a “Restricted Contract”), then, at the election of Buyer, the assignment by Seller and the assumption by Buyer of such Restricted Contract shall
not become effective until the required Consent is obtained. At the request and expense and under the direction of Buyer: (i) Seller shall not take nor permit any action which would impair the full force and effect of such Restricted Contract
until the effective assignment thereof; and (ii) Seller, subsequent to the Closing Date, shall not be entitled to any of the rights, privileges or awards under any Restricted Contract, all of which shall accrue to the benefit of Buyer.

 2.6 Additional Buyer Interests 
  

	 	2.6.1	Notwithstanding the listing of the Acquired Assets in the schedules attached to this Agreement, for a period of 12 months after the Closing Date, each Party agrees to work together and co-operate to identify any
Additional Buyer Interests and upon mutual agreement that any identified Additional Buyer Interests are integral to the use, development, making and commercialisation of any Compound, Seller and Buyer shall work together to reasonably determine the
mechanism of transfer for the Additional Buyer Interests, whether by sale, transfer, assignment, licence (including by way of the license grant contemplated under Section 2.2), sub-licence or other grant, and Seller shall sell, transfer,
assign, license or sub-license, as the case may be, the Additional Buyer Interests to Buyer, at no additional cost, as soon as practicable after the Parties mutually agree as to the mechanism therefor. The Parties further agree that, where they
agree within 12 months after the Closing Date that an identified Additional Buyer Interest is integral to the use, development, making and commercialisation of any Compound, the Parties shall effect the transfer of such Additional Buyer Interest,
regardless of the time required to do so. 

  

	 	2.6.2	The Parties will equally share any costs and expenses arising from the transactions contemplated by this section. 

  

	 	2.6.3	In the event of a dispute in the determining any Additional Buyer Interests, the dispute will be resolved in accordance with Section 12.10. 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 Article 3 Consideration 

3.1 Additional Definitions 
 For the purposes of this
Agreement: 
  

	 	3.1.1	“Canadian Special Voting Shares” means the special voting shares in the capital of Buyer; 

  

	 	3.1.2	“Common Exchangeable Shares” means the common exchangeable shares in the capital of Buyer, exchangeable for Common Shares; 

 

	 	3.1.3	“Common Shares” means the shares of common stock in the capital of Aquinox US; 

  

	 	3.1.4	“Exchange Agreement” means the Exchange Agreement made as of the 8th day of June, 2007 between Aquinox US, Buyer and all shareholders of each of such corporations, as amended from time to time;

  

	 	3.1.5	“Payment Share Price” of the Common Exchangeable Shares on any date means an amount equal to the US dollar price per share of the Common Exchangeable Shares at the most recent financing of Buyer and
Aquinox US plus 15% of such price, provided that if the most recent financing of Buyer and Aquinox US did not involve any sale of Common Exchangeable Shares, then the price per share of the Common Exchangeable Shares will be determined as if the
securities sold by the Buyer (excluding special voting shares having a nominal value) were fully exercised, converted or exchanged (as the case may be) into Common Shares (net of any amounts payable by the holder on such exercise, conversion or
exchange) and the price per share of the Common Exchangeable Shares will be deemed to be the price per share of such Common Shares; and 

  

	 	3.1.6	“US Common Special Voting Shares” means the shares of common special voting stock in the capital of Aquinox US. 

3.2 Purchase Price 
 The purchase price for the Acquired
Assets (the “Purchase Price”) shall comprise the following amounts payable to Seller as follows: 
  

	 	3.2.1	US$50,000 in cash, upon Closing, to be delivered by wire transfer of immediately available funds to an account designated by Seller; 

 

	 	3.2.2	Cdn$3 million in cash, within 30 days after the Board of Directors of Buyer or its subsequent licensee, sublicensee, assignee or acquirer, authorizes the commitment of financial resources to take an LSAID included among
the Compounds into a Phase III Clinical Study (the “LSAID Development Compound”), to be delivered by wire transfer of immediately available funds to an account designated by Seller; 

  
 13 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	3.2.3	US$250,000 in Common Exchangeable Shares, Canadian Special Voting Shares and US Common Special Voting Shares (“Payment Shares”), upon first submission to the FDA of an IND for an LSAID Development
Compound by Buyer or any of its Affiliates or its (or their) subsequent licensee, sublicensee, assignee or acquirer, where the number of each of such classes of shares payable (which, for greater certainty, will be the same for each class of shares)
is determined using the following formula: 

  

																					
		 	Number of shares
of each class 
of the Payment Shares	  	 	=	  	  	 	US$250,000	  	  	
	 	  	  	 	(Payment Share Price	) 	 	 	+	  	  	US$	0.000002	  	  	

 and disregarding any remaining fractional shares; 

 

	 	3.2.4	US$500,000 in cash, upon the First Commercial Sale of an LSAID Product in the United States following the receipt of Regulatory Approval from the FDA to market such LSAID Product, to be delivered by wire transfer of
immediately available funds to an account designated by Seller; 

  

	 	3.2.5	US$500,000 in cash, upon the First Commercial Sale of an LSAID Product in Europe following the receipt of Regulatory Approval from the European Medicines Evaluation Agency or any successor agency to market such LSAID
Product, to be delivered by wire transfer of immediately available funds to an account designated by Seller; and 

  

	 	3.2.6	US$500,000 in cash, upon the First Commercial Sale of an LSAID Product in Japan following the receipt of Regulatory Approval from the Japanese Korosho or any successor agency to market such LSAID Product, to be
delivered by wire transfer of immediately available funds to an account designated by Seller; 

 (the payments to which Sections 3.2.2,
3.2.3, 3.2.4, 3.2.5 and 3.2.6 refer are hereinafter referred to as the “Milestones”). 
 3.3 Purchase Price Allocation 

The US$50,000 portion of the Purchase Price to which Section 3.2.1 refers shall be allocated among the Acquired Assets as set forth in Schedule 3.3. 

3.4 Taxes 
  

	 	3.4.1	Each Party shall be liable for and shall pay all applicable land transfer, sales, goods and services, harmonized sales Taxes and other transfer Taxes payable in connection with the Contemplated Transactions imposed on
such Party by any Legal Requirement. 

  

	 	3.4.2	 The Parties shall use all reasonable and legal efforts to reduce any Tax withholding on payments made to Seller, including, as the case may be, Seller
obtaining any applicable exemption certificate. Notwithstanding such efforts, if Buyer concludes that Tax withholdings under the laws of any country are required with respect to payments to Seller, Buyer will be entitled to deduct,

  
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CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
withhold and remit, as the case may be, such Tax withholdings to the applicable governmental authority and to make the payment required to be made to Seller under this Agreement net of such Tax
withholdings. In case Buyer deducts, withholds and remits any Tax withholdings, Buyer shall promptly provide Seller with original receipts or other evidence reasonably desirable and sufficient to allow Seller to document such Tax withholdings
adequately for purposes of claiming foreign Tax credits and similar benefits. 

 3.5 Audits 

Seller shall have the right for a period of two years (2) years after the date that a Milestone is paid to appoint at its expense an independent certified
public accountant reasonably acceptable to Buyer to inspect the relevant records of Buyer and to verify if Milestones were payable and if Milestones paid were correctly calculated. Buyer shall make its records available for inspection by such
independent certified public accountant during regular business hours at such place or places where such records are customarily kept, upon reasonable notice from Seller, solely to verify the accuracy of the information. Such inspection right shall
not be exercised by Seller more than three times. Seller agrees to hold in strict confidence all information concerning such matters, and all information learned in the course of any audit or inspection, except to the extent necessary for Seller to
reveal such information in order to enforce its rights under this Agreement or if disclosure is required by law. The results of each inspection, if any, shall be binding on the Parties. Seller shall pay for such inspections, except that in the event
the inspection reveals that one or more Milestones have occurred for which payment to Seller has not been made, in which case Buyer shall pay for such inspections. 

3.6 Development 
 Buyer will use Commercially Reasonable
Efforts to continue to Develop the LSAID Development Compound and to file an IND and NDA in respect of the LSAID Development Compound; provided, that Seller may not claim, and the term Damages shall not include, indirect and consequential damages,
including lost profits and revenues, relating to any breach of this Section 3.6. 
 3.7 Information 

Buyer shall keep Seller regularly informed of the progress of Buyer’s efforts to Develop the LSAID Development Compound by providing copies of the
quarterly reports that are distributed to all material shareholders of Buyer. Such updates shall (a) summarize Buyer’s efforts to Develop the LSAID Development Compound, and (b) identify the regulatory filings with respect to any
LSAID Development Compound that Buyer or its sublicensees have filed, sought or obtained in the prior three (3)-month period, and any that any of them reasonably expect to make, seek or attempt to obtain in the following three (3)-month period. All
such updates and notices shall be sent to the attention of Seller’s Chief Executive Officer unless Seller otherwise notifies Buyer in writing. 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 3.8 Conditions to Issuance of Payment Shares 

Notwithstanding any other provision of this Agreement, the issuance of the Payment Shares to Seller pursuant to Section 3.2.3 is subject to the following
conditions: 
  

	 	3.8.1	the representations and warranties of Seller set out in Section 7.14 shall be true and correct at the time the Payment Shares are issued to Seller; and 

 

	 	3.8.2	Seller shall become a party to and bound by the Exchange Agreement by executing an instrument in the form attached as Schedule A to the Exchange Agreement and delivering such executed instrument to Buyer prior to or at
the time the Payment Shares are issued to Seller. 

 Article 4 Closing 

4.1 Closing 
 The purchase and sale provided for in
this Agreement (the “Closing”) will take place on                     , 2009 at such place and in such manner as the
Parties mutually agree and the Parties shall have executed and delivered such further documents and instruments as the Parties’ counsel agree to be necessary and customary, each acting reasonably, in order to complete the Contemplated
Transactions. For the purposes of passage of title and risk of loss, allocation of expenses, adjustments and other economic or financial effects of the Contemplated Transactions, the Closing when completed shall be deemed to have occurred at 11:59
p.m., local time (the “Effective Time”) on the date of Closing (the “Closing Date”). 
 4.2 Closing Conditions
of Buyer 
 The obligations of Buyer to consummate the Contemplated Transactions shall be subject to the fulfillment, at or prior to the Closing, of the
following conditions: 
  

	 	4.2.1	the representations and warranties of Seller made in this Agreement shall be true and correct both when made and as of the Closing Date, or in the case of representations and warranties that are made as of a specified
date, such representations and warranties shall be true and correct as of such specified date, except where the failure to be so true and correct (without giving effect to any limitation or qualification as to “materiality” or Material
Adverse Effect set forth herein) would not have a Material Adverse Effect; 

  

	 	4.2.2	Seller shall have complied in all material respects with all covenants and conditions required by this Agreement to be performed or complied with by it prior to or at the Closing; 

 

	 	4.2.3	there shall not be pending or, to the Knowledge of Seller, threatened any Proceeding by or against Seller seeking to permit or delay the consummation of the Contemplated Transactions; 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	4.2.4	there shall not have occurred any Material Adverse Effect; 

  

	 	4.2.5	Seller shall have delivered to Buyer: 

  

	 	.1	recordable assignments of all registered Patents, Trademarks and Copyrights included in the Acquired Assets, each in form and substance reasonably acceptable to Buyer, executed by Seller; 

 

	 	.2	all regulatory filing packages and pre-clinical and clinical data, including Phase I and Phase II data, clinical reports, and other safety data collected by Seller; 

 

	 	.3	such other deeds, bill(s) of sale, assignments, certificates of title, transfer Tax documents and other instruments of transfer and conveyance as may reasonably be requested by Buyer, each in form and substance
reasonably satisfactory to Buyer, executed by Seller; 

  

	 	.4	copies of all requisite resolutions or actions of Seller’s board of directors approving the execution and delivery of this Agreement and the consummation of the Contemplated Transactions in accordance with all
applicable Legal Requirements and Seller’s Governing Documents; 

  

	 	.5	evidence of releases of all Encumbrances on the Acquired Assets, except for the Permitted Encumbrance; 

  

	 	.6	a certificate of the President of Seller, certifying as to the matters set forth in Sections 4.2.1, 4.2.2, 4.2.3 and 4.2.4; 

  

	 	.7	the Consents referenced in Schedule 7.3.3; 

  

	 	.8	all Records, including, without limitation, all laboratory notebooks, scientific reports and other documents reasonably required to prosecute and defend any Intellectual Property contained in the Acquired Assets; and

  

	 	.9	such other documents as Buyer may reasonably request. 

 4.3 Closing Conditions of Seller 

The obligations of Seller to consummate the Contemplated Transactions shall be subject to the fulfillment, at or prior to the Closing, of the following
conditions: 
  

	 	4.3.1	 the representations and warranties of Buyer made in this Agreement shall be true and correct both when made and as of the Closing Date, or in the case
of representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct as of such specified 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
date, except where the failure to be so true and correct (without giving effect to any limitation or qualification as to materiality set forth therein) has not materially impaired and would not
materially impair the ability of Buyer to perform its obligations hereunder or prevent the consummation of any of the Contemplated Transactions; 

  

	 	4.3.2	Buyer shall have complied in all material respects with all covenants and conditions required by this Agreement to be performed or complied with by it prior to or at the Closing; 

 

	 	4.3.3	there is no pending or, to the Knowledge of Buyer, threatened Proceeding by or against Buyer seeking to prevent or delay the consummation of the Contemplated Transactions; 

 

	 	4.3.4	this Agreement and the consummation of the Contemplated Transactions shall have been duly approved by the board of directors of Buyer; and 

 

	 	4.3.5	Buyer shall have delivered to Seller: 

  

	 	.1	the portion of the Purchase Price payable at the Closing as set out in Section 3.2.1; 

  

	 	.2	a certificate of the President of Buyer certifying as to the matters set forth in Section 4.3.1, 4.3.2 and 4.3.3; and 

  

	 	.3	such other documents as Seller may reasonably request. 

 Article 5 Pre-Closing Covenants

 5.1 Forbearance and Fiduciary Duties 
  

	 	5.1.1	Seller agrees that from and after the date hereof, it shall not, and it shall not permit any of its officers, directors, employees, agents or Representatives to, directly or indirectly, initiate, solicit, encourage or
respond to proposals, requests, inquiries or contacts, or participate in any negotiation or discussion for the purpose or with the intention of leading to any proposal, concerning any disposition, directly or indirectly, of any of the Acquired
Assets, including any licensing or other arrangement relating to the Acquired Assets, except for the Contemplated Transactions (hereafter referred to, collectively, as an “Acquisition Proposal”). 

 

	 	5.1.2	Seller shall promptly provide notice to Buyer of any unsolicited Acquisition Proposal or any request for non-public information relating to the Acquired Assets or for access to the properties, books or records of Seller
relating to the Acquired Assets by any Person that informs the board of directors of Seller that it is considering making, or has made, an Acquisition Proposal. Such notice to Buyer shall be made orally promptly after receipt of any such proposal or
request and in writing within two (2) Business Days thereafter, setting forth in reasonable detail the nature of the proposal or request. 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 5.2 Governmental and Other Third Party Consents 

 

	 	5.2.1	As soon as practicable after the date hereof, the Parties shall cooperate in the preparation and filing of all materials necessary or desirable to obtain the approval of the Contemplated Transactions or the disclaimer
of jurisdiction with respect thereto by any Governmental Body that has jurisdiction over the Contemplated Transactions. 

  

	 	5.2.2	Where a Consent of a Third Party is required to assign any of the Acquired Assets, each of the Parties will use commercially reasonable efforts to obtain, prior to the Closing Date, the required Consents and each Party
will cooperate with one another in exchanging such information and supplying such assistance as may be reasonably requested by the other Party in connection with the foregoing. 

 

	5.3	Due Diligence 

 Seller shall, prior to the Closing Date, afford Buyer and its respective officers,
employees, accountants, counsel and other Representatives, reasonable access, during normal business hours and without disrupting the conduct of the business in the ordinary course, to Seller’s offices and facilities to inspect the physical
condition of the Acquired Assets and to review books, records, reports, data and other documentation relating to the Acquired Assets and, prior to the Closing Date, shall, and shall use its commercially reasonable efforts to cause its
Representatives to, furnish to Buyer copies of any additional financial books, records, reports, data and other documentation relating to the Acquired Assets as Buyer may from time to time reasonably request. 

5.4 Notification of Certain Matters 
 Between the date
hereof and the Closing Date, Seller shall give prompt notice in writing to Buyer of: 
  

	 	5.4.1	the occurrence, or failure to occur, of any event, which occurrence or failure would be likely to cause any representation and warranty of Seller contained in this Agreement to be untrue or inaccurate at any time
between the date hereof and the Closing Date; 

  

	 	5.4.2	any notice or other communication from any Person alleging that the Consent of such Person is or may be required in connection with the Contemplated Transactions; 

 

	 	5.4.3	any notice or other communication from any Governmental Body in connection with the Contemplated Transactions; 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	5.4.4	any actions, suits, claims, investigations or Proceedings commenced or threatened against Seller or relating to or involving or otherwise affecting Seller in each case which relate to the consummation of the
Contemplated Transactions, the Acquired Assets or the Business; and 

  

	 	5.4.5	any failure of Seller, or any officer, director, employee or agent thereof, to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder. Between the date hereof and
the Closing, Seller will notify Buyer of any emergency or other change in the normal course of business or in the operation of the Acquired Assets or the conduct of the Business, each as currently conducted, and of any governmental complaints,
investigations or hearings (or communications indicating that the same may be contemplated) or adjudicatory Proceedings involving any Acquired Assets or the conduct of the Business and will keep Buyer fully informed of such events and, if permitted
by applicable Legal Requirements, will provide Representatives of Buyer access to all materials prepared in connection therewith. 

 The
giving of any such notice under this Section 5.4 shall in no way change or modify the representations and warranties of the Parties, or the conditions to the obligations of the Parties, contained herein or otherwise affect the remedies
available to the Parties hereunder. 
 5.5 General Pre-Closing Covenants. 

From and after the date hereof and until the Closing, Seller shall conduct the Business in the ordinary and usual course, consistent with recent past practice
and considering its financial resources (the “Ordinary Course of Business”) and without limiting the generality of the foregoing, shall except as otherwise provided in this Agreement: 

 

	 	5.5.1	make no purchase or sale in respect of, nor introduce any method of operation in respect of, the Acquired Assets, other than in the Ordinary Course of Business; 

 

	 	5.5.2	use its commercially reasonable efforts to preserve its present relationships with Persons having business dealings with Seller in connection with the Acquired Assets; 

 

	 	5.5.3	comply with all Legal Requirements and Orders of every Governmental Body applicable to it and to the conduct of the Business; 

  

	 	5.5.4	diligently prosecute and maintain all Patent applications relating to the Compounds and provide copies of all correspondence and proceedings relating to such applications to Buyer and consult, in good faith, with Buyer
with respect thereto; 

  

	 	5.5.5	not subject any of the Acquired Assets to any Encumbrance, other than the Permitted Encumbrance; 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	5.5.6	maintain and pay all premiums with respect to all policies of insurance relating to the Acquired Assets as are presently held in Seller’s name; 

 

	 	5.5.7	not make any change adverse to it in the terms of any Assumed Contract included among the Acquired Assets; 

  

	 	5.5.8	not take any action which would result in any breach of any of its representations, warranties or covenants contained herein; and 

  

	 	5.5.9	not enter into any material agreements relating to the Acquired Assets, which have not been reviewed and approved by Buyer. 

5.6 Further Assurances 
 The Parties shall cooperate
reasonably with each other and with their respective Representatives in connection with any steps required to be taken as part of their respective obligations under this Agreement, and shall: (i) furnish upon request to each other such further
information; (ii) execute and deliver to each other such other documents; and do such other acts and things, all as the other Party may reasonably request for the purpose of carrying out the intent of this Agreement and the Contemplated
Transactions. In particular, without limiting the generality of the foregoing, Seller shall provide Buyer with access to original materials and original documentation that are not provided to Buyer but are reasonably required to prosecute, enforce,
defend and litigate any Intellectual Property contained in the Acquired Assets, including, without limitation, laboratory notebooks, scientific reports and other documents. Seller agrees that it shall maintain any such original materials or original
documentation in good condition. Seller shall not dispose of any such original materials or original documentation without first offering same to Buyer and shall not otherwise transfer any such original materials or original documentation to any
Person without preserving Buyer’s rights as outlined in this Section 5.6. 
 Article 6 Post-Closing Covenants 

6.1 Set Off 
 Seller acknowledges and confirms that Buyer
shall have the right, without limiting or waiving in any respect any rights or remedies available to Buyer under this Agreement or otherwise, for a 12 month period after the Closing Date to set off and apply any amounts which may from time to time
be owing by Buyer to Seller, including pursuant to Section 3.2 against and in satisfaction of the payment of any indemnified claims under Sections 9.2 and 9.3. 

6.2 Assistance in Proceedings 
 Seller will cooperate with
Buyer in the contest or defense of, and make available its current personnel and provide any testimony and access to its books and records or other evidence in its possession in connection with, any Proceeding involving or relating to: (i) the
Contemplated Transactions; (ii) any action, activity, circumstance, condition, conduct, event, fact, failure to act, incident, occurrence, plan, practice, situation, status or transaction on or arising before the Closing involving the Acquired
Assets or the conduct of the Business; or (iii) the Intellectual Property. 

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 6.3 Technology Transfer 

Seller will, upon reasonable request of Buyer, make available and provide reasonable assistance in the transfer to Buyer of all Acquired Assets, Records, and
any technology or data relating exclusively or principally to the Acquired Assets, including the provision of any electronic passwords required for access thereto. Prior to Closing, Seller and Buyer shall establish procedures to transfer to Buyer at
Closing or promptly thereafter all such Acquired Assets, Records and other data, including the transfer of samples, reports, files and other tangible embodiments of the Acquired Assets and the migration of all electronically stored data in a format
usable by Buyer without passwords or other protections restricting access by Buyer. 
 6.4 Employees 

Seller will, upon reasonable request of Buyer, during a period of six (6) months after the Closing, make available any of the current employees and
current and former consultants of Seller who have been involved with any work relating to the Compounds to assist Buyer with the effective transfer of all Intellectual Property. Buyer shall reimburse all expenses reasonably incurred by such
individuals in connection with any travel requested by Buyer. 
 6.5 Intellectual Property Matters 

Seller shall notify each of its patent attorneys and agents who prosecuted or maintain or are prosecuting or maintaining any of the Intellectual Property and
instruct them to follow the directions of Buyer concerning the continued prosecution and maintenance of such Intellectual Property, including the transfer of all relevant files to the designees of Buyer. Seller shall use commercially reasonable
efforts to cause its current and former directors, officers, employees and agents to cooperate in the preparation, filing, prosecution, and maintenance of the Intellectual Property, including providing Buyer with data and information within their
possession relating to the Acquired Assets after the Closing Date which may reasonably be needed or requested by Buyer and by executing all documents that Buyer may deem necessary in connection therewith, all at Buyer’s sole expense (if any).
After the Effective Time, Buyer shall be responsible, in its sole discretion, for the filing, prosecution, maintenance, defense, abandonment, reinstatement and enforcement of all Intellectual Property. 

6.6 Non-Competition 
 Commencing on the Closing Date and
ending on the expiration of five (5) years thereafter, Seller agrees that it will not conduct or aid in the conduct of any research or development activities, nor commercialise or aid in the commercialisation of, any of the Compounds, namely
the compounds containing the molecules referred to by Seller as IPL512,602, IPL576,092 and IPL550,260 and all compounds claimed, whether by genus or species, under the Patents identified in Schedule 7.8.2 of the Seller Disclosure Schedule (whether
or not such Patents are maintained or abandoned), in any country, world-wide, either alone or in partnership, in collaboration or in conjunction with any person, corporation, syndicate, association or any other entity or group, whether as principal,
agent, shareholder, licensor or in any capacity or manner whatsoever, whether directly or indirectly. 
  

  
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 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 Article 7 Representations and Warranties of Seller 

7.1 Scope 
 Seller hereby makes the representations and
warranties contained in this Article 7 to Buyer and acknowledges that Buyer is relying on such representations and warranties in connection with the purchase of the Acquired Assets and the consummation of the Contemplated Transactions.
Notwithstanding the foregoing, Buyer acknowledges that the Seller Disclosure Schedule sets out a number of disclosures in respect of, exceptions to, and exclusions from, the representations and warranties of Seller contained in this Agreement and
such disclosures, exclusions and exceptions are deemed to be incorporated into the applicable provisions of this Agreement to which the schedules specifically refer. For greater certainty, all of the provisions of this Article 7 will be deemed to be
representations and warranties of Seller. 
 7.2 Organization and Good Standing 

Seller is a corporation duly organized, validly existing and in good standing under the Legal Requirements of the jurisdiction of its incorporation, with full
corporate power and authority to conduct the Business as it is now being conducted by it, to own or use the Acquired Assets in the conduct of the Business by it, and to perform all its obligations under the Contracts. 

7.3 Enforceability; Authority; No Conflict 
  

	 	7.3.1	This Agreement constitutes the legal, valid and binding obligation of Seller and is enforceable against it in accordance with its terms. Upon the execution and delivery by Seller of each agreement to be executed or
delivered by Seller at Closing (collectively, the “Seller Closing Documents”), each of the Seller Closing Documents will constitute the legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its
terms. Seller has the corporate power and authority to execute and deliver this Agreement and the Seller Closing Documents to which it is a party and to perform its obligations hereunder and thereunder, and such action has been duly authorized by
all necessary corporate action by Seller. 

  

	 	7.3.2	 Neither the execution, delivery or performance of this Agreement nor the consummation of any of the Contemplated Transactions will, directly or
indirectly (with or without notice or lapse of time): (i) violate any provision of any of the Governing Documents of Seller; (ii) breach any Legal Requirement or any Order to which Seller or any of the Acquired Assets may be subject;
(iii) contravene, conflict with or result in a violation or breach of any of the terms or requirements of, or give 

  
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SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate or modify, any Governmental Authorization that is held by Seller or that otherwise relates to the Acquired Assets
or to the conduct of the Business; (iv) breach any provision of, or give any Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or payment under, or to cancel, terminate or
modify, any Contract; or (v) result in the imposition or creation of any Encumbrance, other than the Permitted Encumbrance, upon or with respect to any of the Acquired Assets. 

 

	 	7.3.3	Seller is not required to give any notice to or obtain any Consent from any Person in connection with the execution, delivery or performance of this Agreement or the consummation of any of the Contemplated Transactions
other than as set out in Schedule 7.3.3 of the Seller Disclosure Schedule. 

 7.4 Title to and Sufficiency of Acquired Assets 

Seller has all right, title or interest in, to and under the Acquired Assets to permit it to transfer the entire right, title and interest in and to the
Acquired Assets to Buyer, free and clear of all Encumbrances, other than the Permitted Encumbrance. The Acquired Assets are located in Solna, Uppsala, Sweden. 

7.5 No Undisclosed Liabilities 
 There are no liabilities,
whether accrued, absolute, contingent, or otherwise, whether due or to become due and whether the amount thereof is readily ascertainable or not, relating or attributable to or associated with the Acquired Assets, except to the extent set forth in
the Seller Disclosure Schedule. 
 7.6 Compliance with Legal Requirements; Governmental Authorizations 

 

	 	7.6.1	Seller is, and at all times since October 26, 2007, has been, in all material respects in compliance with each Legal Requirement that is or was applicable to the ownership or use of any of the Acquired Assets. To
the Knowledge of Seller, no event has occurred or circumstance exists that (with or without notice or lapse of time) may constitute or result in a violation by Seller of, or a failure on the part of Seller to comply with, any such Legal Requirement.
Seller has not received any notice or other communication (whether oral or written) from any Governmental Body or any other Person regarding any actual or alleged violation of, or failure to comply with, any such Legal Requirement.

  

	 	7.6.2	 Listed in Schedule 7.6.2 of the Seller Disclosure Schedule is a complete and accurate list of each Governmental Authorization that is held by Seller
or that otherwise relates to the Acquired Assets or the conduct of the Business. Each Governmental Authorization listed on the Seller Disclosure Schedule is valid and in full force and effect. Seller is, and at all times since October 26, 2007,
has been, in full compliance with all of the terms and requirements of each Governmental Authorization identified or required to be identified on the Seller Disclosure Schedule. Seller has not received any notice or other communication (whether oral
or written) from any Governmental Body or any 

  
 24 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
other Person regarding: (i) any actual or alleged violation of or failure to comply with any term or requirement of any Governmental Authorization; or (ii) any actual or proposed
revocation, withdrawal, suspension, cancellation, termination of or modification to any Governmental Authorization. All applications required to have been filed for the renewal of the Governmental Authorizations listed on the Seller Disclosure
Schedule have been duly filed on a timely basis with the appropriate Governmental Bodies, and all other filings required to have been made with respect to such Governmental Authorizations have been duly made on a timely basis with the appropriate
Governmental Bodies. 

  

	 	7.6.3	The Governmental Authorizations listed on the Seller Disclosure Schedule collectively constitute all of the Governmental Authorizations necessary to permit Seller to lawfully conduct and operate the Business in the
manner in which it currently conducts and operates such Business and to permit Seller to own and use the Acquired Assets in the manner in which it currently owns and uses such Acquired Assets. 

7.7 Legal Proceedings; Orders 
 Neither Seller nor, to the
Knowledge of Seller, any of the officers, directors, agents or employees of Seller, is subject to any Order that prohibits Seller, or such officers, directors, agents or employees from engaging in any conduct, activity or practice relating to the
Business. There is no action, suit, Proceeding, or claim, pending or, to Seller’s Knowledge, threatened, and no investigation by any Governmental Body, pending or, to Seller’s Knowledge, threatened, against Seller relating to any of the
Acquired Assets, or the conduct of the Business. There is no outstanding writ, judgment, stipulation, injunction, decree, determination, award, or other Order of any Governmental Body against Seller relating to any of the Acquired Assets or the
conduct of the Business and, to the Knowledge of Seller, there is no factual or legal basis that could give rise to any such action, suit, Proceeding or claim. 

7.8 Intellectual Property 
  

	 	7.8.1	Seller owns, or is licensed pursuant to written agreements to use (in each case, free and clear of any Encumbrance, other than the Permitted Encumbrance), all Intellectual Property that is used in relation to the
Acquired Assets or the Business. 

  

	 	7.8.2	 Except where identified in Schedule 7.8.2 of the Seller Disclosure Schedule as Intellectual Property licensed to Seller by a Third Party, Seller is
the owner or joint owner (as indicated in Schedule 7.8.2 of the Seller Disclosure Schedule) of the Intellectual Property identified in Schedule 7.8.2 of the Seller Disclosure Schedule, whether or not the Seller is recorded as the assignee in the
United States patent and trademark office or in any jurisdiction in which an assignee must be recorded. The Seller Disclosure Schedule may set forth: (i) for issued Patent of Seller, the number, expiration dates, title and priority information
for 

  
 25 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
each country in which such Patent has been issued, or for each pending patent application, the application number, date of filing, title and priority information for each country; (ii) for
each Trademark of Seller, whether or not registered, the application serial number or registration number, the class of goods covered, the countries in which the name or mark is used and the expiration date for each country in which a trademark has
been registered; (iii) with respect to any Intellectual Property owned by a Third Party and licensed to Seller, the name and date of the agreement pursuant to which such Intellectual Property is licensed and the parties thereto; and
(iv) in certain case listing, deadlines for any renewals or other required filings or payments within 180 days of Closing. 

  

	 	7.8.3	To the Knowledge of Seller, there is no reasonable basis for a claim that any of the Intellectual Property is unenforceable or invalid. Except as disclosed in Schedule 7.8.3 of the Seller Disclosure Schedule none of the
Intellectual Property has been or is the subject of any pending adverse judgment, injunction, order, decree or agreement restricting its use or the assignment or license thereof by Seller. Foreign filing licenses were granted for all United States
Patents of Seller corresponding to any pending patent application included in such Patents. There are no oppositions, cancellations, invalidity proceedings, interferences or re-examination proceedings pending with respect to any of the Intellectual
Property. 

  

	 	7.8.4	Seller is not, nor will be, as a result of the execution and delivery of this Agreement or the performance of its obligations hereunder, in violation of any licenses, sublicenses or other agreements used in the conduct
of the Business as to which it is a party and pursuant to which it is authorized to use any Intellectual Property owned by a Third Party (collectively, “Third Party IP”). The Intellectual Property and the Third Party IP constitute
all of the intellectual property primarily related to or necessary for the conduct of the Business on the date hereof and as such Business will be conducted by Seller immediately prior to the Effective Time and, in all material respects, as such
Business was conducted during the 12 month period prior to the date hereof. Seller has not created any Intellectual Property, alone or with any other Person. 

  

	 	7.8.5	Except as disclosed in Schedule 7.8.5 of the Seller Disclosure Schedule: (i) Seller has not granted any licenses or covenants not to sue in respect of the Intellectual Property to Third Parties; (ii) Seller is
not, nor to the Knowledge of Seller is any other Person, parties to any agreements with Third Parties that materially limit or restrict use of the Intellectual Property or require any payments for their use; (iii) no other Person has any joint
ownership or royalty interest in the Intellectual Property; and (iv) Seller has not entered into any Contract (A) granting any Person the right to bring infringement actions with respect to, or otherwise to enforce rights with respect to,
any of the Intellectual Property, (B) expressly agreeing to indemnify any Person against any charge of infringement of any of the Intellectual Property, or (C) granting any Person the right to control the prosecution or enforcement of any
of the Intellectual Property. 

  
 26 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	7.8.6	Except as disclosed in Schedule 7.8.6 of the Seller Disclosure Schedule no license fees or other Intellectual Property-based payment obligations are owed to any Person in connection with the discovery, development, sale
or other use of any Compound before or after the Closing Date. 

  

	 	7.8.7	All issuance, renewal, maintenance and other payments that are or have become due with respect to the Intellectual Property indicated as “issued” or “registered” on Schedule 7.8.2 of the Seller
Disclosure Schedule have been timely paid by or on behalf of Seller. All documents, certificates and other materials required to maintain the issued or registered Intellectual Property, have been filed in a timely manner with the relevant
Governmental Body. To the Knowledge of Seller, no Intellectual Property is being used or enforced in a manner that would reasonably be expected to result in the abandonment, cancellation or unenforceability of such Intellectual Property.

  

	 	7.8.8	To the Knowledge of Seller, there is no unauthorized use, dilution, infringement, misappropriation or violation of any of the Intellectual Property by any Person. To the Knowledge of Seller, the conduct of the Business
of Seller does not, and the conduct of the Business of its predecessor in title did not, infringe or misappropriate or otherwise violate, as applicable, the Intellectual Property rights or other proprietary rights of any Person, and Seller has not
received any written notice from any Person, and do not have Knowledge of, any claim or assertion to the contrary. 

  

	 	7.8.9	To the Knowledge of Seller, Seller has taken all commercially reasonable steps necessary or appropriate to safeguard and maintain the secrecy and confidentiality of all of the Intellectual Property, including assuring
that all current and former employees and consultants of Seller have signed agreements with Seller, conveying all Intellectual Property arising from their employment with, or consulting activities to, Seller, and have signed confidentiality
agreements. 

 7.9 Taxes 
  

	 	7.9.1	Seller has filed or caused to be filed all Tax Returns required to be filed by it so as to prevent any Encumbrance of any nature on the Acquired Assets, and has paid all material Taxes relating to the conduct of the
Business which have been due with respect to the periods covered by said returns, or pursuant to any assessment received by it in connection therewith. 

  

	 	7.9.2	Seller is a non-resident of Canada for purposes of the ITA. Seller is not a registrant within the meaning of Part IX of the Canada Excise Act. 

  
 27 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 7.10 Contracts; No Defaults 
  

	 	7.10.1	Schedule 7.10.1 of the Seller Disclosure Schedule sets forth: 

  

	 	.1	a list of all Contracts relating to the Intellectual Property; 

  

	 	.2	a list of all Contracts relating to the discovery or development of any Compound; 

  

	 	.3	a list of all Contracts relating to any of the Acquired Assets; and 

  

	 	.4	a list of all locations, and the proprietors thereof, at which any of the Acquired Assets are located. 

  

	 	7.10.2	No event has occurred, or to the Knowledge of Seller is alleged to have occurred, which constitutes or with lapse of time or giving of notice or both, would constitute a default or a basis for a claim of force majeure
or other claim of excusable delay or non-performance under any Assumed Contract, and there is currently no dispute between Seller and another party to an Assumed Contract nor has there been a dispute between such parties that would reasonably be
expected to have a material adverse effect upon the ongoing relationship of the parties except as disclosed in Schedule 7.10.2 of the Seller Disclosure Schedule. To the Knowledge of Seller, no party with whom Seller has an Assumed Contract is in
default in the performance of any covenant or condition thereunder or has failed in performance thereunder. Seller has not received any advance payment against any work or Assumed Contract to the extent not yet performed, and Seller has not assigned
to any other party any rights to payment or receivables in respect of any work or Assumed Contract performed or not yet performed, or any claim or cause of action of any nature whatsoever as it relates to the Acquired Assets. Each Assumed Contract
is in full force and effect, unamended and Seller is entitled to the full benefit and advantage of each Assumed Contract in accordance with its terms. Except as disclosed in Schedule 7.3.3 of the Seller Disclosure Schedule, each Assumed Contract is
assignable to Buyer without the Consent of the other party or parties thereto. 

 7.11 No Material Adverse Effect 

Except as contemplated by this Agreement or as otherwise would not be reasonably expected to have a Material Adverse Effect on Buyer’s exploitation of the
Acquired Assets, since October 26, 2007: 
  

	 	7.11.1	Seller has maintained the Acquired Assets and Seller has not conducted, directly or indirectly, any research, development or commercialization activities in respect of the Acquired Assets; 

  
 28 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	7.11.2	neither the Acquired Assets nor the Business has suffered any Material Adverse Effect; 

  

	 	7.11.3	Seller has not suffered, with respect to the Acquired Assets or the Business, any material damage, destruction or casualty loss to its physical properties, whether or not covered by insurance; and 

 

	 	7.11.4	there has not been any action by Seller that, if taken after the date hereof, would constitute a breach of Seller’s obligations under Section 5.5. 

7.12 Inflazyme Biolipox Asset Purchase Agreement 
 To the
Knowledge of Seller: 
  

	 	7.12.1	all representations and warranties made by Inflazyme Inc., Inflazyme Pharmaceuticals Ltd. and/or Adprotech Limited under the Biolipox-Inflazyme Asset Purchase Agreement in respect of the Acquired Assets were true and
correct both when made and as of the Closing Date (as defined in the Biolipox-Inflazyme Asset Purchase Agreement), or in the case of representations and warranties that are made as of a specified date, such representations and warranties were true
and correct as of such specified date, except where the failure to be so true and correct (without giving effect to any limitation or qualification as to “materiality” or Material Adverse Effect (as defined in the Biolipox-Inflazyme Asset
Purchase Agreement) set forth therein) would not have a Material Adverse Effect (as defined in the Biolipox-Inflazyme Asset Purchase Agreement); 

  

	 	7.12.2	each of Inflazyme Inc., Inflazyme Pharmaceuticals Ltd. and/or Adprotech Limited under the Biolipox-Inflazyme Asset Purchase Agreement has complied in all material respects with all covenants and conditions required by
the Biolipox-Inflazyme Asset Purchase Agreement to be performed or complied with by it in respect of the Acquired Assets prior to or at the Closing (as defined in the Biolipox-Inflazyme Asset Purchase Agreement); and 

 

	 	7.12.3	the Contracts referenced under the Biolipox-Inflazyme Asset Purchase Agreement and listed in Schedule 7.12.3 do not relate to the LSAIDs. 

7.13 Brokers or Finders 
 Seller has not
incurred any obligation or Liability, contingent or otherwise, for brokerage or finders’ fees or agents’ commissions or other similar payment in connection with the Contemplated Transactions. 

  
 29 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 7.14 Acquisition of Payment Shares by Seller 

 

	 	7.14.1	Seller acknowledges and agrees as follows: 

  

	 	.1	Seller will acquire the Payment Shares, when issued, as principal for its own account and not with a view to resale or distribution and, in particular, it has no intention to distribute either directly or indirectly any
of the Payment Shares in the United States or to a U.S. person (as such term is defined in Rule 902 of Regulation S under the United States Securities Act of 1933, as amended (the “1933 Act”)), which definition includes an
individual resident in the United States and an estate or trust of which any executor, administrator or trustee is a U.S. person, it is not acquiring the Payment Shares for the account or benefit of a U.S. person, it was not offered the Payment
Shares in the United States, and it did not execute or deliver this Agreement in the United States; 

  

	 	.2	Seller is not a U.S. person, as such term is defined in Rule 902 of the Regulation S under the 1933 Act; 

  

	 	.3	Seller is aware that the Payment Shares will not be registered under the 1933 Act and that the offer and sale of the Payment Shares to it are being made in reliance on Regulation S under the 1933 Act; 

 

	 	.4	the issuance of the Payment Shares will be made and is conditional upon such issuance being exempt from the prospectus requirements of the Securities Act (British Columbia) (the “BC Securities
Act”) and the rules promulgated thereunder, as well as the prospectus requirements of any other applicable securities legislation (collectively, with the BC Securities Act, the “Securities Laws”) and, as a consequence:

  

	 	(a)	certain protections, rights and remedies provided by the Securities Laws, including statutory rights of recession or damages, will not be available to Seller; 

 

	 	(b)	Seller may not receive information that would otherwise be required to be provided to it under the Securities Laws, and 

  

	 	(c)	Buyer is relieved from certain obligations that would otherwise apply under the Securities Laws; 

  

	 	.5	Seller has not received, nor has it requested, nor does it have any need to receive, from Buyer any offering memorandum or similar document with respect to the issuance of Payment Shares to it; 

 

	 	.6	in addition to any share transfer restrictions contained in the constating documents of Buyer and Aquinox US (including any certificate of incorporation, articles, by-laws, or charter, as applicable), the Exchange
Agreement or any other shareholders’ agreement to which Seller becomes a party as a result of its ownership of the Payment Shares, the Payment Shares issued to Seller will be subject to the following resale or transfer restrictions under the
Securities Laws: 

  

	 	(a)	Seller will not be able to resell, assign or otherwise dispose of the Payment Shares (or any shares into which such shares have been converted or exchanged) unless they are subsequently distributed under a prospectus or
the sale is made in compliance with all applicable resale requirements of applicable Securities Laws; 

  
 30 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	(b)	the certificates representing the Payment Shares will bear the following legend, with the necessary information completed, as required by National Instrument 45-102 – Resale of Securities:

 “UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THIS SECURITY BEFORE THE
DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (I) [INSERT CLOSING DATE], AND (II) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.”, 

 

	 	(c)	the certificates representing the Payment Shares will bear the following further legends: 

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “1933 ACT”). THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS SUCH SECURITIES ARE REGISTERED UNDER THE 1933 ACT AND THE SECURITIES LAWS OF ALL APPLICABLE STATES OF THE UNITED STATES OR ARE OFFERED AND
SOLD IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE STATE SECURITIES LAW, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL, OF RECOGNIZED STANDING, OR OTHER EVIDENCE OF
EXEMPTION, REASONABLY SATISFACTORY TO THE COMPANY AS TO THE AVAILABILITY OF AN EXEMPTION. HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.” 

  
 31 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO ALL THE TERMS AND CONDITIONS
OF AN EXCHANGE AGREEMENT MADE AS OF JUNE 8, 2007 AMONG, INTER ALIA, AQUINOX PHARMACEUTICALS INC., AQUINOX PHARMACEUTICALS (USA) INC. AND THE HOLDERS OF THE SHARES, AS IT MAY BE AMENDED, WHICH AGREEMENT CONSTITUTES A UNANIMOUS SHAREHOLDERS AGREEMENT
WITHIN THE MEANING OF THE CANADA BUSINESS CORPORATIONS ACT AND CONTAINS, AMONG OTHER THINGS, RESTRICTIONS ON THE RIGHT OF THE HOLDER HEREOF TO TRANSFER OR SELL THE SHARES. A COPY OF SUCH EXCHANGE AGREEMENT IS ON FILE AT THE REGISTERED OFFICE OF THE
CORPORATION.” 
  

	 	(d)	Seller understands that the Payment Shares (or any shares into which such shares have been converted or exchanged) are characterized as “restricted securities” (as defined under Rule 144 promulgated under the
1933 Act, as presently in effect, “Rule 144”) under U.S. Federal Securities Laws inasmuch as they are being acquired from Buyer and Aquinox US (as applicable) in a transaction not involving a public offering and that, under such
laws and applicable regulations, such securities may be resold without registration under the 1933 Act only in certain limited circumstances; 

  

	 	(e)	Buyer is under no obligation to qualify or register the Payment Shares for resale under a prospectus or otherwise, or assist Seller in complying with any exemption from the prospectus requirements or resale restrictions
of the Securities Laws, including becoming a reporting issuer or its equivalent in any jurisdiction, and if no resale exemption under Securities Laws is available, the Seller may be required to hold the Payment Shares for an indefinite period of
time; 

  

	 	(f)	if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Payment Shares, and
on requirements relating to Buyer and Aquinox US which are outside of the Seller’s control, and which Buyer and Aquinox US are under no obligation and may not be able to satisfy; and 

 

	 	(g)	Seller is familiar with Rule 144 and understands the resale limitations imposed thereby and by the 1933 Act; 

  
 32 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	.7	being issued, and holding and disposing of, the Payment Shares (or any shares into which such shares have been converted or exchanged) may have Tax consequences under applicable Legal Requirements, and Seller is solely
responsible for determining the Tax consequences applicable to Seller’s particular circumstances; 

  

	 	.8	Seller is not acquiring the Payment Shares as a result of any form of general solicitation or general advertisement, including articles, notices or other communications published in any newspaper, magazine or similar
media or broadcast over the radio or television; and 

  

	 	.9	nothing in this Agreement will prevent Buyer or Aquinox US from carrying out any form of additional financing whether by issuance of equity securities or otherwise. 

 

	 	7.14.2	Seller agrees to transfer the Payment Shares only in accordance with the provisions of Regulation S under the 1933 Act, pursuant to registration under the 1933 Act, or pursuant to an available exemption from
registration under the 1933 Act and otherwise in accordance with applicable other Securities Laws; and it agrees not to engage in hedging transactions with regard to such securities unless in compliance with the 1933 Act and applicable other
Securities Laws. 

  

	 	7.14.3	Seller hereby represents and warrants to the Buyer (which representations and warranties shall be true and correct on and shall survive the Closing), that: 

 

	 	.1	Seller has such knowledge, skill and experience in business, financial and investment matters so that Seller is capable of evaluating the merits and risks of an investment in the Payment Shares. To the extent necessary,
Seller has retained, at its own expense, and relied upon, appropriate professional advice regarding the investment, tax and legal merits and consequences of this Agreement and owning the Payment Shares; 

 

	 	.2	Seller was not created, formed or established solely to, and is not, being used solely to, acquire or hold the Payment Shares; 

  

	 	.3	Seller is resident in a jurisdiction outside Canada and the United States (an “International Jurisdiction”) and is acquiring the Payment Shares as principal; 

 

	 	.4	Seller is an “accredited investor” as defined in National Instrument 45-106 – Prospectus and Registration Exemptions (“NI 45-106”) by virtue of being a person, other than an
individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements; 

  
 33 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	.5	Seller is knowledgeable of, or has been independently advised as to, the securities laws of all Foreign Jurisdictions which apply to this Agreement (including the Contemplated Transactions), if any; 

 

	 	.6	Seller is purchasing the Payment Shares pursuant to exemptions from the prospectus and registration requirements under the Securities Laws of any applicable Foreign Jurisdictions or, if such is not applicable, Seller is
permitted to purchase the Payment Shares under the Securities Laws of all applicable Foreign Jurisdictions without the need to rely on exemptions; 

  

	 	.7	the Securities Laws of any Foreign Jurisdiction do not require Buyer or Aquinox US to make any filings or seek any approvals of any kind whatsoever from any regulatory authority of any kind whatsoever in the Foreign
Jurisdiction in connection with the transactions contemplated herein; 

  

	 	.8	the issuance of the Payment Shares to Seller will not trigger any obligation under the Securities Laws of any Foreign Jurisdiction to prepare and file a prospectus or similar document, or any other report with respect
to such purchase, and 

  

	 	.9	Seller shall execute and deliver such further documents and to provide such further assurances and information as may be reasonably required by Buyer to give effect to this Agreement including, without limiting the
generality of the foregoing, all documents, assurances, undertakings and other information as may be required from time to time under applicable Securities Laws, or by any securities regulatory authority, or by any stock exchange on which the
Payment Shares are listed, or for which an application to list has been made by Buyer or Aquinox US. 

  

	 	7.14.4	Seller acknowledges that the representations and warranties of Seller contained in Section 7.14 are made by it with the intent that they may be relied upon by Buyer, Aquinox US and their legal counsel in
determining whether Buyer and Aquinox US (as applicable) can lawfully issue the Payment Shares to Seller under the Securities Laws. Seller further agrees that by accepting the Payment Shares to be issued to it pursuant hereto as of the
Milestone date contemplated by Section 3.2.3, it shall be representing and warranting that the representations and warranties in Section 7.14 are true as at such date with the same force and effect as if they had been made by it as at the
Closing and will survive the completion of the issuance of the Payment Shares. 

  

	7.15	Disclosure 

 No representation, warranty or other statement made by Seller in this Agreement or any
agreement or certificate executed and delivered in connection with the Contemplated Transactions contains any untrue statement or omits to state a material fact necessary to make any statement made therein, in light of the circumstances in which it
was made, not misleading. 

  
 34 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 Article 8 Representations and Warranties of Buyer 

8.1 Scope 
 Buyer hereby makes the representations and
warranties contained in this Article 8 to Seller and acknowledges that Seller is relying on such representations and warranties in connection with the sale of the Acquired Assets and the consummation of the Contemplated Transactions. Notwithstanding
the foregoing, Seller acknowledges that the Buyer Disclosure Schedule set out in Schedule 8.1 sets out any disclosures in respect of, exceptions to, and exclusions from, the representations and warranties of Buyer contained in this Agreement and
such disclosures, exclusions and exceptions are deemed to be incorporated into the applicable provisions of this Agreement to which the schedules specifically refer. 

8.2 Organization and Good Standing; Articles and Bylaws 
  

	 	8.2.1	Buyer is a corporation duly organized, validly existing and in good standing under the Legal Requirements of the jurisdiction of its incorporation, with full corporate power and authority to conduct its business as it
is now conducted. Buyer has furnished Seller with true, correct and complete copies of Buyer’s Certificate and Articles of Incorporation and Bylaws, and all amendments thereto. 

 

	 	8.2.2	Aquinox US is a corporation duly organized, validly existing and in good standing under the Legal Requirements of the jurisdiction of its incorporation, with full corporate power and authority to conduct its business as
it is now conducted. Buyer has furnished Seller with true, correct and complete copies of Aquinox US’s Certificate of Incorporation and Bylaws, and all amendments thereto. 

8.3 Enforceability; Authority; No Conflict 
  

	 	8.3.1	This Agreement constitutes the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms. Upon the execution and delivery by Buyer of each agreement to be executed or delivered
by Buyer at Closing (collectively, the “Buyer Closing Documents”) each of the Buyer Closing Documents will constitute the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its respective
terms. Buyer has the corporate power and authority to execute and deliver this Agreement and the Buyer Closing Documents and to perform its obligations hereunder and thereunder, and such action has been duly authorized by all necessary corporate
action. 

  
 35 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	8.3.2	Neither the execution, delivery or performance of this Agreement by Buyer nor the consummation of any of the Contemplated Transactions will: (i) give any Person the right to prevent, delay or otherwise interfere
with any of the Contemplated Transactions; or (ii) violate any provision of Buyer’s Governing Documents, any resolution adopted by the board of directors or the shareholders of Buyer, or any Legal Requirement or Order to which Buyer may be
subject. Buyer will not be required to obtain any Consent from any Person in connection with the execution and delivery of this Agreement or the consummation or performance of any of the Contemplated Transactions. 

8.4 Legal Proceedings; Orders 
 There is no outstanding
writ, judgment, stipulation, injunction, decree, determination, award or other Order of any Governmental Body against Buyer which if determined adversely against Buyer would impair Buyer’s ability to enter into, or to perform its obligations
pursuant to, this Agreement. 
 8.5 Brokers or Finders 

Buyer has not incurred any obligation or Liability, contingent or otherwise, for brokerage or finders’ fees or agents’ commissions or other similar
payment in connection with the Contemplated Transactions. 
 8.6 Capitalization; Authorization 

 

	 	8.6.1	 Schedule 8.6 of the Buyer Disclosure Schedule contains a true and correct list of all securities (including outstanding warrants, options, agreements,
convertible securities or other commitments to which Buyer or Aquinox US is or may become obligated to issue any shares of its capital stock or other securities) of Buyer or Aquinox US (including the amounts thereof) outstanding as of the Effective
Time, and the holders of any interest in such securities. Immediately prior to the Effective Time, Buyer’s authorized capital stock will consist of (a) ten new common shares, (b) an unlimited number of Class A exchangeable
preferred shares issuable in series of which an unlimited number of Series A-1 exchangeable preferred shares and an unlimited number of Series A-2 exchangeable preferred shares have been created, (c) an unlimited number of Common Exchangeable
Shares, (d) an unlimited number of Canadian Special Voting Shares and (e) an unlimited number of non-voting preferred shares. Immediately prior to the Effective Time, Aquinox US’s authorized capital will consist of 42,271,088 Common
Shares 72,728,912 shares of Preferred Stock, issuable in series, of which 17,667,773 shares of Series A-1 preferred stock, 10,545,451 shares of Series A-2 preferred stock, 10,031,412 shares of Series A-1 special voting stock, 5,454,544 shares of
Series A-2 special voting stock and 29,029,732 US Common Special Voting Shares. All issued and outstanding shares of capital stock of Buyer and Aquinox US have been duly authorized, are validly issued, fully paid, and nonassessable, and are owned of
record and beneficially by the shareholders and in the amounts set forth in Schedule 8.6 of the Buyer Disclosure Schedule. 

  
 36 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
Except as set forth in Schedule 8.6 of the Buyer Disclosure Schedule, (i) there are no outstanding or authorized options, warrants, purchase rights, subscription rights, conversion rights,
exchange rights or other contracts or commitments that could require Buyer or Aquinox US to issue, sell or otherwise cause to become outstanding any of its capital stock, and (ii) Buyer nor Aquinox US is a party to any voting trust, proxy or
other agreement or understanding with respect to the voting of any capital stock of such corporation. 

  

	 	8.6.2	The issuance, sale and delivery of the Payment Shares by Buyer and Aquinox US have been duly authorized by all requisite corporate action of Buyer and Aquinox US, and when so issued, sold and delivered as contemplated
by this Agreement, each Payment Share will be validly issued and outstanding, fully paid and non-assessable and not subject to preemptive or any other similar rights of any shareholder or shareholders of Buyer or any other Person. 

 

	 	8.6.3	As of the Closing, and the date of issuance of the Payment Shares as contemplated by Section 3.2.3, Buyer nor Aquinox US will be a reporting issuer or its equivalent in any jurisdiction. 

 

	 	8.6.4	No order, ruling or determination having the effect of suspending the sale or ceasing the trading in any securities of Buyer or Aquinox US has been issued by any regulatory authority and is continuing in effect and no
proceedings for that purpose have been instituted or, to the Knowledge of Buyer, are pending, contemplated or threatened by any regulatory authority. The foregoing representation and warranty of Buyer shall survive the Closing and be true as at the
date of issuance of the Payment Shares as contemplated by Section 3.2.3 with the same force and effect as if it had been made by Buyer as at such date. 

  

	 	8.6.5	Buyer and Aquinox US has complied, and will comply, with all filing and other disclosure requirements under Canadian and United States Securities Laws in connection with the issuance of the Payment Shares.

  

	 	8.6.6	Buyer covenants and agrees with Seller that is shall file all such forms and documents as may be required by Canadian and United States Securities Laws relating to the sale, issuance and delivery of the Payment Shares,
and, without limiting the generality of the foregoing, shall include a Form 45-106F1 as prescribed by NI 45-106. 

  

	 	8.6.7	 Except with respect to Securities Law matters relating to Seller’s residency in an International Jurisdiction and as otherwise disclosed in
Schedule 8.6 of the Buyer Disclosure Schedule, the corporate and securities-related requirements for issuance of the Payment Shares set out in this Agreement (including the conditions set out in Section 3.8) are substantially similar to
requirements that needed to be met by the current holders of Common Exchangeable Shares listed in Schedule 8.6 of the Buyer Disclosure Schedule in order to be issued 

  
 37 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	
such shares and upon issuance of the Payment Shares to Seller, Seller will not be at a disadvantage to such other holders of Common Exchangeable Shares from a shareholder rights and obligations
perspective (on a per share basis) by virtue of the terms and conditions of this Agreement. 

 8.7 Financial Information 

Attached as Schedule 8.7 of the Buyer Disclosure Schedule are (a) the audited balance sheet of Aquinox US which incorporate by reference the financial
operations of Buyer for the fiscal years ended December 31, 2008 and December 31, 2007 and the related statements of operations, changes in stockholders’ equity and cash flows for the fiscal years then ended; and (ii) the
unaudited balance sheet of Buyer for the six-month period ended June 30, 2009 (collectively, the “Financial Statements”). The Financial Statements are true and correct in all material respects for the respective period then
ended, are in accord with the books and records of Buyer and have been prepared in accordance with generally accepted accounting principles, consistently applied. The Financial Statements fairly present the financial condition, results of operations
and cash flows of Aquinox US and Buyer as of the respective dates and for the respective periods indicated therein. 
 Article 9
Indemnification; Remedies 
 9.1 Survival 

All representations, warranties, covenants and obligations in this Agreement and any certificate or document delivered pursuant to this Agreement shall
survive the Closing and the consummation of the Contemplated Transactions. The right to indemnification, reimbursement or other remedy based upon such representations, warranties, covenants and obligations shall not be affected by any investigation
conducted with respect to, or any Knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of or compliance
with any such representation, warranty, covenant or obligation. The waiver of any condition based upon the accuracy of any representation or warranty or on the performance of or compliance with any covenant or obligation, will not affect the right
to indemnification, reimbursement or other remedy based upon such representations, warranties, covenants and obligations. Except as otherwise specifically provided herein, the representations and warranties set forth in this Agreement shall
terminate on the first anniversary of the Closing Date, except that this time limitation shall not apply to: (a) claims for breaches of the representations and warranties relating to Section 7.9, which representations and warranties shall
survive for 6 years; and (b) claims for breaches of representations and warranties relating to Sections 7.2, 7.3.1, 7.4, 7.13, 7.14, 8.2, 8.3.1, 8.5 and 8.6 (those sections listed in clauses (a) and (b), collectively, the “Excluded
Provisions”), which representations and warranties shall survive without limit. 

  
 38 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 9.2 Indemnification and Reimbursement by Seller 

Seller will indemnify, hold harmless and defend Buyer and its Representatives, shareholders, subsidiaries and Affiliates (collectively, the
“Buyer Indemnified Persons”), and will reimburse Buyer Indemnified Persons for any loss, Liability, claim, damage, expense (including costs of investigation and defense and reasonable attorneys’ fees and expenses) or diminution
of value, whether or not involving a Third-Party Claim (collectively, “Damages”), arising from or in connection with: 
  

	 	9.2.1	any breach of any representation and warranty made by Seller in this Agreement or any certificate, document, writing or instrument delivered by Seller pursuant to this Agreement; 

 

	 	9.2.2	any breach of any covenant or obligation of Seller in this Agreement or in any certificate, document, writing or instrument delivered by Seller pursuant to this Agreement; 

 

	 	9.2.3	any Liability arising out of the ownership or use of the Acquired Assets or the conduct of the Business prior to the Effective Time; or 

 

	 	9.2.4	any Retained Liabilities. 

 9.3 Bulk Sales Laws 

Buyer hereby waives compliance by Seller with any applicable bulk sale or bulk transfer laws of any jurisdiction in connection with the sale of the Acquired
Assets to Buyer. Notwithstanding the foregoing, Seller shall indemnify and hold harmless Buyer against any and all claims that may be asserted by any Third Party against Buyer as a result of noncompliance by Seller with any such bulk transfer laws.

 9.4 Indemnification and Reimbursement by Buyer 

Buyer will indemnify, hold harmless and defend Seller and its Representatives, shareholders, subsidiaries and Affiliates (collectively, the
“Seller Indemnified Persons”), and will reimburse the Seller Indemnified Persons for Damages arising from or in connection with: 
  

	 	9.4.1	any breach of any representation and warranty made by Buyer in this Agreement or in any certificate, document, writing or instrument delivered by Buyer pursuant to this Agreement; 

 

	 	9.4.2	any breach of any covenant or obligation of Buyer in this Agreement or in any other certificate, document, writing or instrument delivered by Buyer pursuant to this Agreement; or 

 

	 	9.4.3	any Assumed Liabilities. 

 9.5 Limitations on Amount 

 

	 	9.5.1	Seller’s indemnification obligation under Section 9.2 and Buyer’s indemnification obligations under Section 9.4 shall be subject to the limitation that there shall be no obligation to indemnify under
Sections 9.2.1 and 9.4.1, as the case may be, unless the aggregate of all Damages for which an Indemnified Person is entitled to indemnification thereunder exceeds US$100,000 (the “Threshold”), provided, that 

  
 39 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	.1	if an Indemnified Person’s Damages exceeds the Threshold, the Indemnifying Person shall be obligated to indemnify for the full amount of Damages; and 

 

	 	.2	the foregoing limitation shall not apply to amounts for which an Indemnified Person is otherwise entitled to indemnification pursuant to Sections 9.2.1 or 9.4.1, as the case may be, arising out of or relating to a
breach of a representation and warranty set forth in the Excluded Provisions. 

  

	 	9.5.2	Seller shall not have any Liability with respect to claims under Section 9.2.1 for Damages with respect to such matters in excess of the amounts actually paid by Buyer to Seller in respect of the Purchase Price as
of the date any such claim is made, provided, that the foregoing limitation shall not apply to amounts for which a Buyer Indemnified Person is otherwise entitled to indemnification pursuant to Section 9.2.1 arising out of or relating to a
breach of a representation and warranty set forth in the Excluded Provisions. 

  

	 	9.5.3	Buyer shall not have any Liability with respect to claims under Section 9.4.1 for Damages with respect to such matters in excess of the amount of the Purchase Price remaining unpaid as of the date any such claim is
made, provided, that the foregoing limitation shall not apply to amounts for which a Seller Indemnified Person is otherwise entitled to indemnification pursuant to Section 9.4.1 arising out of or relating to a breach of a representation and
warranty set forth in the Excluded Provisions. 

  

	 	9.5.4	The Parties acknowledge and agree that in applying the limitations on Liability set out in Sections 9.5.2 and 9.5.3, the limitations shall apply to the aggregate of each Party’s Liability in respect to all claims
for Damages made on or before a particular date, and not to each claim individually. 

 9.6 Third-Party Claims 

 

	 	9.6.1	Promptly after receipt by a Person entitled to indemnity under this Article 9 (an “Indemnified Person”) of notice of the assertion of a Third-Party Claim against it, such Indemnified Person shall give
notice to the Person obligated to indemnify such Indemnified Person (an “Indemnifying Person”) of the assertion of such Third-Party Claim, provided, that the failure to notify the Indemnifying Person will not relieve the
Indemnifying Person of any Liability that it may have to any Indemnified Person, except to the extent that the Indemnifying Person demonstrates that the defense of such Third-Party Claim is prejudiced by the Indemnified Person’s failure to give
such notice. 

  
 40 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	9.6.2	If an Indemnified Person gives notice to the Indemnifying Person pursuant to Section 9.6.1 of the assertion of a Third-Party Claim, the Indemnifying Person shall assume the defense of such Third-Party Claim with
counsel reasonably satisfactory to the Indemnified Person, unless: (i) the Indemnifying Person is also a Person against whom the Third-Party Claim is made and the Indemnified Person determines in good faith that joint representation would be
inappropriate; or (ii) the Indemnifying Person fails to provide reasonable assurance to the Indemnified Person of its financial capacity to defend such Third-Party Claim and provide indemnification with respect to such Third-Party Claim. If the
Indemnifying Person assumes the defense of a Third-Party Claim, no compromise or settlement of such Third-Party Claims may be effected by the Indemnifying Person without the Indemnified Person’s Consent unless: (A) there is no finding or
admission of any violation of Legal Requirement or any violation of the rights of any Person; (B) the sole relief provided is monetary Damages that are paid in full by the Indemnifying Person; and (C) the Indemnified Person shall have no
Liability with respect to any compromise or settlement of such Third-Party Claims effected without its Consent. If notice is given to an Indemnifying Person of the assertion of any Third-Party Claim and the Indemnifying Person does not, within 15
Business Days after the Indemnified Person’s notice is given, give notice to the Indemnified Person of its assumption of the defense of such Third-Party Claim as provided for herein, the Indemnifying Person will be bound by any determination
made in such Third-Party Claim or any compromise or settlement effected by the Indemnified Person. 

  

	 	9.6.3	Notwithstanding the foregoing, if an Indemnified Person determines in good faith that there is a reasonable probability that a Third-Party Claim may adversely affect it or its Affiliates other than as a result of
monetary Damages for which it would be entitled to indemnification under this Agreement, the Indemnified Person may, by notice to the Indemnifying Person, assume the exclusive right to defend, compromise or settle such Third-Party Claim, but the
Indemnifying Person will not be bound by any determination of any Third-Party Claim so defended for the purposes of this Agreement or any compromise or settlement effected without its Consent (which may not be unreasonably withheld or delayed).

  

	 	9.6.4	With respect to any Third-Party Claim subject to indemnification under this Article 9: (i) both the Indemnified Person and the Indemnifying Person, as the case may be, shall keep the other Person fully informed of
the status of such Third-Party Claim and any related Proceedings at all stages thereof where such Person is not represented by its own counsel; and (ii) the Parties agree (each at its own expense) to render to each other such assistance as they
may reasonably require of each other and to cooperate in good faith with each other in order to ensure the proper and adequate defense of any Third-Party Claim. 

  
 41 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	9.6.5	With respect to any Third-Party Claim subject to indemnification under this Article 9, the Parties agree to cooperate in such a manner as to preserve in full (to the extent possible) the confidentiality of all
Confidential Information and all applicable attorney-client and work-product privileges. In connection therewith, each Party shall: (i) use its commercially reasonable efforts, in respect of any Third-Party Claim in which it has assumed or
participated in the defense, to avoid production of Confidential Information (consistent with applicable Legal Requirement and rules of procedure); and (ii) to the extent possible, make all communications between any Party and counsel
responsible for or participating in the defense of any Third-Party Claim in a manner to preserve any applicable attorney-client or work-product privilege. 

9.7 Guarantee 
  

	 	9.7.1	Guarantor hereby unconditionally, absolutely and irrevocably guarantees, and covenants to Buyer the full performance, observance, satisfaction and payment of, any and all obligations of Seller to Buyer under this
Agreement and any agreements executed in connection herewith (the “Guaranteed Obligations”), provided that Seller is in breach of this Agreement and Buyer has provided a notice and demand in respect thereof to Seller and
Guarantor, and subject to the limitations set forth in Section 9.5. 

  

	 	9.7.2	If any default shall be made in the performance, observance, satisfaction and payment of any of the Guaranteed Obligations, Guarantor covenants and agrees with Buyer to perform, observe, satisfy and pay to Buyer
forthwith any and all of the Guaranteed Obligations in respect of which such default will have occurred and any interest that may be payable thereon, subject to the limitations set forth in Section 9.5. 

 

	 	9.7.3	The obligations and liabilities of Guarantor hereunder shall not be subject to any counterclaim, set off, deduction or defense based upon any claim Guarantor may have against Seller. Buyer acknowledges and confirms that
Guarantor shall have the right, without limiting or waiving in any respect any rights or remedies available to Guarantor under this Agreement or otherwise, to set off and apply any amounts which may from time to time be owing by Buyer to Seller,
including pursuant to this Section 9.7 against and in satisfaction of the payment of any indemnified claims under Section 9.4. 

  

	 	9.7.4	Until there has been full performance, observance, satisfaction and payment of all of the Guaranteed Obligations, the rights of Buyer and the obligations of Guarantor hereunder shall remain in full force and effect
without regard to, and shall not be released, discharged or in any way affected or impaired, terminated or prejudiced by, the dissolution, winding-up or other cessation of existence of Seller, the amalgamation of Seller with another corporation, the
appointment of a custodian, liquidator, receiver or trustee in respect of the assets or undertaking, in whole or in part, of Seller, any arrangement, bankruptcy, composition, insolvency, liquidation, readjustment, receivership, reorganization or
other similar proceeding or occurrence relating to Seller, or any assignment by Seller for the benefit of creditors. 

  
 42 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	9.7.5	The foregoing guarantee shall be fully enforceable against Guarantor without Buyer first bringing legal process against or exhausting any remedy against Seller. 

Article 10 Confidentiality 
 10.1
Existing Confidentiality Agreement 
 The Parties agree that the Orexo-Aquinox Confidentiality Agreement shall govern all disclosures of
“Confidential Information” (as defined under that agreement) until the Closing, no Party shall make any public disclosures of its own “Confidential Information” relating to the Acquired Assets prior to the Closing and each Party
shall continue to preserve and protect its own “Confidential Information” relating to the Acquired Assets in the same manner that it protects its other confidential information. Upon Closing, the Orexo-Aquinox Confidentiality Agreement
shall automatically terminate and, from and after Closing, all “Confidential Information” relating to the Acquired Assets and disclosed thereunder shall be deemed to be Confidential Information of Buyer under this Agreement to use as it
sees fit, subject to the terms of any applicable agreement. Seller shall treat all such Confidential Information in the same manner as other Confidential Information received from Buyer and the exception set out in Section 10.2.2 shall not
apply to such Confidential Information. 
 10.2 Confidential Information 

In this Agreement, “Confidential Information” shall mean any information or technology that is not generally available to the public
and that is treated as confidential or proprietary by a Party or any of its Affiliates. Confidential Information shall not include, and the provisions set forth in this Article 10 regarding Confidential Information shall not apply (or will cease to
apply), with respect to Confidential Information that:  
  

	 	10.2.1	is or hereafter becomes generally available to the public other than through an unauthorized act or omission or breach of this Agreement by the receiving Party; or 

 

	 	10.2.2	becomes available to the receiving Party from a Third Party, provided, that the source is not known (after due inquiry) by the receiving Party to be bound by a confidentiality agreement with or other obligation as to
confidentiality, non-disclosure or non-use to, the disclosing Party or its Affiliates or Inflazyme Inc, Inflazyme Pharmaceuticals Ltd. or Inflazyme Pharmaceuticals Canada Inc. 

Notwithstanding the foregoing, a combination of features shall not be deemed to be in the public domain or in the possession of the Party subject to
confidentiality obligations hereunder merely because the individual features are separately found to be in the public domain or in such possession; the combination itself must be in the public domain or in such possession. 

  
 43 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 10.3 Confidentiality Obligations 

Each of the Parties covenants and agrees on behalf of itself and its Affiliates, and their respective employees, officers, directors and agents that they will
not disclose to any Person not employed by it or not engaged to render services to it, and that they will not use for their benefit or the benefit of others, any Confidential Information of the other Party obtained by them either prior to the
Closing or pursuant to ongoing covenants under this Agreement, and in particular Seller’s obligations under this Section 10.3 include any Confidential Information relating to the Acquired Assets or the conduct of the Business held by it
prior to the Closing and transferred to Buyer at Closing as well as any Confidential Information provided by Buyer to Seller after the Closing pursuant to Section 3.7; provided, however, that this provision shall not preclude the Parties, their
Affiliates and their respective employees, officers, directors and agents from use or disclosure of information if: (i) use or disclosure of such information shall be required by applicable Legal Requirement or Order of any Governmental Body
(but only after notice to the other Party and affording such Party a reasonable opportunity to obtain confidentiality or protective arrangements to the extent reasonably available); or (ii) use or disclosure of such information is reasonably
required in connection with any Proceeding against or involving the Parties or their Affiliates. 
 10.4 Acknowledgement 

The Parties acknowledge that nothing in this Article 10 will restrict Buyer’s ability to use for its benefit, or for the benefit of others, all
Confidential Information relating to the Acquired Assets or the conduct of the Business after the Closing. 
 Article 11 Termination

 11.1 Termination 
 This Agreement may be
terminated at any time: 
  

	 	11.1.1	by the mutual Consent of the Parties; or 

  

	 	11.1.2	by Seller on the one hand and Buyer on the other, if: 

  

	 	.1	in the case of Seller, Buyer shall (or in the case of Buyer, Seller shall) have breached any representation or warranty contained in this Agreement the result of which is that the conditions specified in Sections 4.2.1
or 4.3.1, as applicable, cannot be satisfied within 10 Business Days after written notice thereof; 

  

	 	.2	in the case of Seller, Buyer shall (or in the case of Buyer, Seller shall) have failed to comply in all material respects with any of its covenants and agreements contained in this Agreement to be complied with or
performed by it prior to the Closing that, if capable of cure, has not been cured within 10 Business Days after written notice thereof; 

  
 44 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

	 	.3	a permanent injunction is entered, enforced or deemed applicable to this Agreement, which prohibits the consummation of the Contemplated Transactions and all appeals of such injunction shall have been taken and shall
have been unsuccessful; 

  

	 	.4	any Governmental Body, the Consent of which is a condition to the obligation of such Party to consummate the Contemplated Transactions, shall have determined not to grant its Consent and all appeals of such
determination shall have been taken and shall have been unsuccessful; or 

  

	 	.5	the Closing shall have not occurred on or prior to December 31, 2009. 

 11.2 Effect of Termination

 Upon termination of this Agreement pursuant to Section 11.1, all rights of the Parties hereto shall cease and terminate, except for such rights
as either Party may otherwise have for breach of contract, including rights for breach of any representations, warranties or covenants contained herein, and provided, that the provisions of Section 10.1 and Article 12 shall survive such
termination. 
 Article 12 General Provisions 

12.1 Expenses 
 Each party will bear its respective fees
and expenses incurred in connection with the preparation, negotiation, execution and performance of this Agreement and the Contemplated Transactions, including all fees and expenses of its Representatives. If this Agreement is terminated, the
obligation of each party to pay its own fees and expenses will be subject to any rights of such party arising from a breach of this Agreement by the other party. 

12.2 Public Announcements 
 No party shall make any public
statements, including any press releases, with regard to this Agreement and the Contemplated Transactions, without the prior written consent of Buyer and Seller, except as may be required by Legal Requirement. Buyer and Seller will jointly discuss
and agree upon a statement to the public regarding this Agreement and Contemplated Transactions, and promptly following the Closing, Seller and/or Guarantor may issue such mutually acceptable public statement, provided that Seller and Guarantor
agree not to disclose Buyer’s name or other information that may identify Buyer in any such public statement or press release, except as may be required by Legal Requirement. 

12.3 Notices 
 All notices, Consents, waivers and other
communications required or permitted by this Agreement shall be in writing and shall be given as follows: (a) by delivery to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); or (b) by

  
 45 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 
facsimile with confirmation of transmission, in each case to the following addresses, facsimile numbers and marked to the attention of the Person (by name or title) designated below (or to such
other address, facsimile number or Person as a party may designate by notice to the other parties given in accordance with this Section 12.3): 
  

					
		 	 if to Seller or Guarantor to:
  

OREXO AB (publ.)
 P.O. Box 303

SE-751 05
 Uppsala, Sweden

 
 Attention:     Torbjörn Bjerke

                      President and CEO

Fax no.:        +46 (0)18–780 88 88
	  	 with a copy to:
  

WIGGIN AND DANA LLP
 400 Atlantic Street

Stamford, Connecticut 06901
 U.S.A

 
 Attention:     James F. Farrington, Jr.

Fax no.:         203-363-7676

			
		 	 if to Buyer, to:
  

AQUINOX
 PHARMACEUTICALS INC.

Suite 600 – 555 West 12th Avenue

Vancouver, B.C.
 CANADA V5Z 3X7

 
 Attention: President and CEO

Fax no.: 778-331-4486
	  	 with a copy to:
  

FARRIS, VAUGHAN,
 WILLS & MURPHY LLP

Suite 2500, 700 West Georgia St.
 PO Box 10026, Pacific Centre
South
 Vancouver, B.C.
 CANADA V7Y 1B3

 
 Attention:     James P. Hatton

Fax no.:        604-661-9349

 12.4 Enforcement of Agreement 

Each party acknowledges and agrees that the other parties would be irreparably damaged if any of the provisions of this Agreement are not performed in
accordance with their specific terms and that a breach of this Agreement might not be adequately compensated in all cases by monetary Damages alone. Accordingly, in addition to any other right or remedy to which a party may be entitled, at law or in
equity, it shall be entitled to enforce any provision of this Agreement by a decree of specific performance and to temporary, preliminary and permanent injunctive relief to prevent breaches or threatened breaches of any of the provisions of this
Agreement, without posting any bond or other undertaking. 
 12.5 Waiver; Remedies Cumulative 

The rights and remedies of the parties to this Agreement are cumulative and not alternative. Neither any failure nor any delay by any party in exercising any
right, power or privilege under this Agreement or any of the documents referred to in this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude
any other or further exercise of such right, power or privilege or the 

  
 46 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 
exercise of any other right, power or privilege. To the maximum extent permitted by applicable Legal Requirement: (a) no claim or right arising out of this Agreement or any of the documents
referred to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other parties; (b) no waiver that may be given by a party will be applicable
except in the specific instance for which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation of that party or of the right of the party giving such notice or demand to take further action
without notice or demand as provided in this Agreement or the documents referred to in this Agreement. 
 12.6 Entire Agreement and Modification 

This Agreement supersedes the Orexo-Aquinox Confidentiality Agreement and all prior agreements, whether written or oral, among the parties with respect to its
subject matter and constitutes (along with the schedules and exhibits and other documents delivered pursuant to this Agreement) a complete and exclusive statement of the terms of the agreement among the parties with respect to its subject matter.
This Agreement may not be amended, supplemented, or otherwise modified except by a written agreement executed by the parties. 
 12.7 Assignments,
Successors, and No Third Party Rights 
 No party may assign any of its rights or delegate any of its obligations under this Agreement without the prior
written Consent of the other parties, provided that Buyer may assign any of its rights or delegate any of its obligations under this Agreement without the consent of Seller to any of its Affiliates (including Aquinox US) or a purchaser of
substantially all of the assets of the Business, upon delivery of written notice to Seller. In the event that Buyer assigns all of its rights or obligations under this Agreement to a purchaser of substantially all of the assets of the Business
(other than an Affiliate of Buyer), Seller may, in its sole discretion, to the extent remaining unpaid at the time of such assignment, upon achievement of the Milestone set out in Section 3.2.3, elect to receive the US$250,000 Milestone payment
thereunder in cash, in lieu of Payment Shares. Subject to the first sentence in this Section 12.7, this Agreement will apply to, be binding in all respects upon and inure to the benefit of the successors and permitted assigns of the parties.
Nothing expressed or referred to in this Agreement will be construed to give any Person other than the parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this
Agreement, except such rights as shall inure to a successor or permitted assignee pursuant to this Section 12.7. 
 12.8 Severability 

If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain
in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. 

  
 47 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 12.9 Governing Law 

This Agreement will be governed by and construed under the laws of the Province of British Columbia and the federal laws of Canada applicable therein, without
regard to conflicts-of-laws principles that would require the application of any other law. 
 12.10 Dispute Resolution 

Any dispute, controversy or claim between the Parties arising out of or in connection with this Agreement, or breach, termination or invalidity thereof,
shall be resolved through binding arbitration conducted under the London Court of International Arbitration in accordance with its then prevailing commercial rules of arbitration (the “Rules”), except as modified in
this Agreement. A Party may initiate arbitration by written notice to the other Party of its intention to arbitrate, and such demand notice shall specify in reasonable detail the nature of the dispute. Each Party shall select one arbitrator, and the
two arbitrators so selected shall choose a third arbitrator. All three arbitrators shall serve as neutrals and have at least 10 years of: (a) dispute resolution experience; or (b) legal or business experience in the biotech or
pharmaceutical industry. In any event, at least one arbitrator shall satisfy the foregoing experience requirement under clause (b). Notwithstanding anything to the contrary in this Section 12.10, in the event of a dispute regarding the
prosecution and maintenance activities with respect to Patents described in this Agreement at least one arbitrator shall have expertise in patent law. If a Party fails to nominate its arbitrator, or if the Parties’ arbitrators cannot agree on
the third arbitrator, the necessary appointments shall be made in accordance with the Rules. Once appointed by a Party, such Party shall have no ex parte communication with its appointed arbitrator. The arbitration proceedings shall be
conducted in London, England. The arbitration proceedings and all pleadings and written evidence shall be in the English language. Any written evidence originally in another language shall be submitted in English translation accompanied by the
original or a true copy thereof. Each Party agrees to use reasonable efforts to make all of its current employees available to the extent determined by the tribunal to be reasonably needed. The arbitrators shall be instructed and required to render
a written, binding, non-appealable resolution and award on each issue that clearly states the basis upon which such resolution and award is made. The written resolution and award shall be delivered to the Parties as expeditiously as possible, but in
no event more than 30 days after conclusion of the hearing, unless otherwise agreed by the Parties. Judgment upon such award may be entered in any competent court or application may be made to any competent court for judicial acceptance of such an
award and order for enforcement. Each Party agrees that, notwithstanding any provision of applicable law or of this Agreement, it will not request, and the arbitrators shall have no authority to award, punitive or exemplary damages against any
Party. The Parties may apply to any court of competent jurisdiction for a temporary restraining order, preliminary injunction or other interim or conservatory relief, as necessary, without breaching these arbitration provisions and without abridging
the powers of the arbitrators. At the request of either Party, the arbitrators shall enter an appropriate protective order to maintain the confidentiality of information produced or exchanged in the course of the arbitration proceedings. The
arbitrators shall have the power to decide all questions of arbitrability. The Parties agree that: (i) they shall share equally the fees and expenses of the arbitrators; and (ii) each Party shall bear its own attorneys’ fees and
associated costs and expenses. 

  
 48 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 12.11 Execution of Agreement 

This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and Closing documents and of signature pages hereof and thereof by facsimile or electronic transmission shall constitute effective execution
and delivery thereof as to the parties and may be used in lieu of the originals for all purposes. Signatures of the parties transmitted by facsimile or electronic transmission shall be deemed to be their original signatures for all purposes. 

12.12 Force Majeure 
 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 a Force Majeure. In event of such Force Majeure event, the Party affected thereby
shall use reasonable efforts to cure or overcome the same and resume performance of its obligations hereunder. 
 IN WITNESS WHEREOF, the parties
have caused this Agreement to be executed as of the date first set forth above. 
  

									
	BIOLIPOX AB (publ.)
 by its authorized signatory:
	 		 	 AQUINOX PHARMACEUTICALS INC.

by its authorized signatory:

					
	By:	 	/s/ Torbjörn Bjerke	 		 	By:	 	/s/ David Main
	Name:	 	Torbjörn Bjerke	 		 	Name:	 	David Main
	Title:	 	President & CEO	 		 	Title:	 	President and Chief Executive Officer
	  
 OREXO AB (publ.)

by its authorized signatory:
  
	 		 		 	
	By:	 	/s/ Torbjörn Bjerke	 		 		 	
	Name:	 	Torbjörn Bjerke	 		 		 	
	Title:	 	President & CEO	 		 		 	

  
 49 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 2.1 

ACQUIRED ASSETS 
 The Acquired
Assets shall include the following assets: 
  

	 	(a)	all Intellectual Property of every kind and nature exclusively or principally related to the Compounds, including: 

  

	 	(i)	all Patents, Trademarks, Trade Secrets, and Copyrights, including those listed in Schedule 7.8.2 of the Seller Disclosure Schedule; 

  

	 	(ii)	all claims and rights in respect of any past infringement or misappropriation of such Intellectual Property by Third Parties; 

  

	 	(iii)	all rights under any Contracts by and between inventors of such Intellectual Property and Seller; and 

  

	 	(iv)	the goodwill of or relating to such Intellectual Property. 

  

	 	(b)	all Governmental Authorizations of Seller exclusively or principally relating to the Acquired Assets, including all INDs, orphan drug designations, marketing authorizations, notices of submission, notices of compliance,
new drug applications, and drug master files, and all correspondence and documentation related thereto; 

  

	 	(c)	all rights under any Assumed Contracts; 

  

	 	(d)	all Records of Seller exclusively or principally relating to the Acquired Assets; and 

  

	 	(e)	all inventories owned by Seller of the Compounds, intermediates and other materials used in the discovery, development, manufacture or quality control of any of the Compounds, including all cell lines, compound
libraries, mouse and other animal models, clones, constructs, assays, reference standards and reagents. 

  
 50 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 2.3 

Exceptions to Assumed Liabilities 
  

	1.	Buyer shall have no liability in respect of any obligations of Biolipox under the Consent to Assignment of License Agreement among Inflazyme Inc., Biolipox AB (publ.), The University of British Columbia and The
University of Alberta dated November 16, 2007. 

  

	2.	Buyer shall have no liability in respect of any obligations of Biolipox under the Biolipox-Inflazyme Asset Purchase Agreement. 

Assumed Contracts 
 See Schedule 7.10.1 for all
Contracts 
 See Schedule 7.3.3 for Restricted Contracts forming part of Assumed Contracts 

  
 51 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 3.3 

ALLOCATION OF PURCHASE PRICE 
  

			
	 Technology
	  	 Percentage of
Purchase Price

	 LSAID
	  	100%
	 Tangible Personal Property
	  	   0%

  
 52 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 7.3.3 

SELLER DISCLOSURE SCHEDULE 

CONSENTS 
 Assumed Contracts
requiring Third Party Consents: 
  

	1.	UBC/UA License Agreement. 

 Required Third Party Consents 

 

	1.	Consent from University of British Columbia and University of Alberta to assign the following patents pursuant to the UBC/UA License Agreement. 

Patents requiring consent for assignment: 
  

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	 Appl. No.

Patent No.
	 	 Appl. Date

Issue Date

Expiration
Date
	 	 Priority

Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402
 Non-provisional

United States
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 08/893,575
 6,046,185
	 	 07/10/1997
 04/04/2000

07/12/2016
	 	60/023,450 filed 07/11/1996	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
 April 1, 1993 as
amended February 18, 1998.
  
 University of British Columbia

University of Alberta
 Biolipox AB (publ) (assignee)
	 	

  
 53 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	 Appl. No.

Patent No.
	 	 Appl. Date

Issue Date

Expiration
Date
	 	 Priority

Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402A1
 Non-provisional

United States
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	08/679,642	 	07/12/1996	 	60/023,450 filed 07/11/1996	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
 April 1, 1993 as
amended February 18, 1998.
  
 University of British Columbia

University of Alberta
 Biolipox AB (publ) (assignee)
	 	
								
	 402D1
 Non-provisional

United States
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 09/471,827
 6,706,701
	 	 12/23/1999
 03/16/2004

07/12/2016
	 	 08/893,575 filed 10/10/1997
 08/679,642 filed
07/12/1996 60/023,450 filed 07/11/1996
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
 April 1, 1993 as
amended February 18, 1998.
  
 University of British Columbia

University of Alberta
 Biolipox AB (publ) (assignee)
	 	
								
	 402C1
 Non-provisional

United States
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 10/703,155
 7,067,682
	 	 11/06/2003
 06/27/2006

07/12/2016
	 	09/471,827 filed 12/23/99 08/893,575 filed 07/10/97 08/679,642 filed 07/12/96 60/023,450 filed 07/11/ 1996	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	Maintenance fee due 12/27/2009
								
	 402D2
 Non-provisional

United States
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 10/703,153
 6,949,533
	 	 11/06/2003
 09/27/2005

09/24/2013
	 	 09/471,827 filed 12/23/1999
 08/893,575 filed
7/10/1997
 08/679,642 filed 07/12/96 60/023,450 filed 07/11/1996
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	Maintenance fee due 9/28/09

  
 54 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	 Appl. No.

Patent No.
	 	 Appl. Date

Issue Date

Expiration
Date
	 	 Priority

Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

								
	 402C2
 Non-provisional

United States
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	11/285,779	 	11/22/2005	 	 10/703,155 filed 11/06/03
 09/471,827 filed
12/23/1999
 08/893,575 filed 7/10/1997
 08/679,642 filed
07/12/96 60/023,450 filed 07/11/1996
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402PC
 PCT
	 	POLYOXYGENATED STEROIDS	 	PCT/CA97/00490	 	07/11/1997	 	60/023450 filed 7/11/1996	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402EP
 Regional

EPO
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002
	 	 60/023,450 filed 07/11/1996
 (Regional Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 40201EP
 Regional

EPO
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	02025269.8	 	07/11/1997	 	 60/023,450 filed 07/11/1996
 08/679,642 filed
07/12/1996
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 55 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	 Appl. No.

Patent No.
	 	 Appl. Date

Issue Date

Expiration
Date
	 	 Priority

Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402AT
 EPC registered patent

Austria
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402AU
 National

Australia
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 33323/97
 722815
	 	 07/11/1997
 11/23/2000

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402BE
 EPC registered patent

Belgium
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402BR
 National

Brazil
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	PI9710353-5	 	07/11/1997	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402CA
 National

Canada
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	2259981	 	07/11/1997	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 56 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	 Appl. No.

Patent No.
	 	 Appl. Date

Issue Date

Expiration
Date
	 	 Priority

Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402CH
 EPC registered patent

Switzerland
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402CN
 National

China
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97195531.X	 	07/11/1997	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402CN1
 Divisional

China
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	200710305916.8	 	12/27/2007	 	 60/023,450 filed 07/11/1996; 97195531.X filed 7/11/1997

(National Phase of PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402DE
 EPC registered patent

Germany
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402ES
 EPC registered patent

Spain
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 57 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	 Appl. No.

Patent No.
	 	 Appl. Date

Issue Date

Expiration
Date
	 	 Priority

Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402FR
 EPC registered patent

France
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402GB
 EPC registered patent

United Kingdom
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402GR
 EPC registered patent

Greece
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402HK
 Extension of EP

Hong Kong
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	99105463.9	 	04/02/2003	 	60/023,450 filed 07/11/1996	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402IE
 EPC registered patent

Republic of Ireland
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 58 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	 Appl. No.

Patent No.
	 	 Appl. Date

Issue Date

Expiration
Date
	 	 Priority

Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402IT
 EPC registered patent

Italy
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402JP
 National

Japan
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	9-535644	 	07/11/1997	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402KR
 National

South Korea
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 10-1999-7000116
 533436
	 	 07/11/1997
 11/29/2005

07/11/2017
	 	 60/023450 filed 7/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402LU
 EPC registered patent

Luxembourg
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402MC
 EPC registered patent

Monaco
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 59 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	 Appl. No.

Patent No.
	 	 Appl. Date

Issue Date

Expiration
Date
	 	 Priority

Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402MX
 National

Mexico
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 9900444
 213301
	 	 07/11/1997
 03/18/2003

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 40201MX
 Non-PCT filing

Mexico
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	2002/008618	 	09/03/2002	 	 60/023,450 filed 07/11/1996 08/679,642 filed 07/12/1996

PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402NL
 EPC registered patent

Netherlands
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402NZ
 National

New Zealand
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 333731
 333731
	 	 07/11/1997
 01/11/2001

07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402RU
 National

Russian Federation
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 99103025
 2196143
	 	 07/11/1997
 01/10/2003

07/11/2017
	 	 60/023450 filed 7/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 60 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	 Appl. No.

Patent No.
	 	 Appl. Date

Issue Date

Expiration
Date
	 	 Priority

Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402SE
 EPC registered patent

Sweden
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 97929071.5
 0917534
	 	 07/11/1997
 12/04/2002

07/11/2017
	 	 60/023450 filed 7/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402SG
 National

Singapore
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	 9806198-9
 60914
	 	 07/11/1997
 02/21/2002

07/11/2017
	 	 60/023,450 filed 7/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 61 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 7.6.3 

SELLER DISCLOSURE SCHEDULE 

GOVERNMENTAL AUTHORIZATIONS 
 None.

  
 62 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 7.8.2 

SELLER DISCLOSURE SCHEDULE 

INTELLECTUAL PROPERTY 

Trademarks: 
 None. 

Patents: 
  

															
	 Reference No.

Application
 Type

Country
	  	 Title
	  	Appl. No.
Patent No.	  	Appl. Date
Issue Date
Expiration
Date	  	Priority
Applications	  	Seller’s
Interest	  	 License Name

License Date

Parties
	  	Deadlines
	 401
 Non-provisional

United States
	  	CONTIGNASTEROL, AND RELATED 3-ALPHA HYDROXY-6-ALPHA HYDROXY-7-BETA 15-DETO-14-BETA STEROIDS USEFUL AS ANTI-INFLAMATORY AND ANTI-THROMBOSIS AGENTS	  	07/996,599	  	12/24/1992	  		  	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	

  
 63 

															
	 Reference No.

Application
 Type

Country
	  	 Title
	  	Appl. No.
Patent No.	  	Appl. Date
Issue Date
Expiration
Date	  	Priority
Applications	 	Seller’s
Interest	  	 License Name

License Date

Parties
	  	Deadlines
	 401C1
 Non-provisional

United States
	  	CONTIGNASTEROL, AND RELATED 3-ALPHA HYDROXY-6-ALPHA HYDROXY-7-BETA 15-DETO-14-BETA STEROIDS USEFUL AS ANTI-INFLAMATORY AND ANTI-THROMBOSIS AGENTS	  	08/226,179
 5,506,221
	  	04/12/1994
 04/09/1996
 12/21/2013
	  	07/996,599
filed
12/24/1992	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401US
 National

United States
	  	CONTIGNASTEROL COMPOUNDS AND PHARMACEUTICAL COMPOSITIONS COMPRISING THE SAME	  	08/464,758
 5,646,138
	  	09/05/1995
 07/08/1997
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401PC
 PCT
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	PCT/
CA93/00558	  	12/21/1993	  	CA/
2,086,221
filed
12/23/1992	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401AT
 EPC registered patent

Austria
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
12/23/1992 (National
Phase
of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	

  
 - 2 - 

															
	 Reference No.

Application
 Type

Country
	  	 Title
	  	Appl. No.
Patent No.	  	Appl. Date
Issue Date
Expiration
Date	  	Priority
Applications	 	Seller’s
Interest	  	 License Name

License Date

Parties
	  	Deadlines
	 401AU
 National

Australia
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/56913
 673405
	  	12/21/1993
 02/26/1997
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401BE
 EPC registered patent

Belgium
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/92(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401CA
 National

Canada
	  	CONTIGNASTEROL, AND RELATED 3-ALPHA HYDROXY-6-ALPHA HYDROXY-7-BETA 15-DETO-14-BETA STEROIDS USEFUL AS ANTI-INFLAMATORY AND ANTI-THROMBOSIS AGENTS	  	2152621
 2152621
	  	12/21/1993
 10/31/2000
 12/21/2013
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	Annuity
due
12/21/2009

  
 - 3 - 

															
	 Reference No.

Application
 Type

Country
	  	 Title
	  	Appl. No.
Patent No.	  	Appl. Date
Issue Date
Expiration
Date	  	Priority
Applications	 	Seller’s
Interest	  	 License Name

License Date

Parties
	  	Deadlines
	 40101CA
 National

Canada
	  	CONTIGNASTEROL, AND RELATED 3-ALPHA HYDROXY-6-ALPHA HYDROXY-7-BETA 15-DETO-14-BETA STEROIDS USEFUL AS ANTI-INFLAMATORY AND ANTI-THROMBOSIS AGENTS	  	2086221
 2086221
	  	12/23/1992
 07/15/2003
 12/23/2012
	  		 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	Annuity
due
12/23/2009
								
	 401CH
 EPC registered patent

Switzerland
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401DE
 EPC registered patent

Germany
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	02/04/1998	  	CA/
2,086,221
filed
12/23/1992	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401DK
 EPC registered patent

Denmark
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	

  
 - 4 - 

															
	 Reference No.

Application
 Type

Country
	  	 Title
	  	Appl. No.
Patent No.	  	Appl. Date
Issue Date
Expiration
Date	  	Priority
Applications	 	Seller’s
Interest	  	 License Name

License Date

Parties
	  	Deadlines
	 401EP
 Regional

EPO
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(Regional
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401ES
 EPC registered patent

Spain
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401FR
 EPC registered patent

France
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401GB
 EPC registered patent

United Kingdom
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401GR
 EPC registered patent

Greece
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	

  
 - 5 - 

															
	 Reference No.

Application
 Type

Country
	  	 Title
	  	Appl. No.
Patent No.	  	Appl. Date
Issue Date
Expiration
Date	  	Priority
Applications	 	Seller’s
Interest	  	 License Name

License Date

Parties
	  	Deadlines
	 401IE
 EPC registered patent

Republic of Ireland
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401IT
 EPC registered patent

Italy
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401JP
 National

Japan
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	06-514641
 3366639
	  	12/21/1993
 11/01/2002
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401LU
 EPC registered patent

Luxembourg
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401MC
 BEPC registered patent

Monaco
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/
2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	

  
 - 6 - 

															
	 Reference No.

Application
Type

Country
	  	 Title
	  	Appl. No.
Patent No.	  	Appl. Date
Issue Date
Expiration
Date	  	Priority
Applications	 	Seller’s
Interest	  	 License Name

License Date

Parties
	  	Deadlines
	 401NL
 EPC registered patent

Netherlands
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401PT
 EPC registered patent

Portugal
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 401SE
 EPC registered patent

Sweden
	  	PHARMACEUTICAL COMPOSITIONS COMPRISING CONTIGNASTEROL COMPOUNDS	  	94/902581.1
 0675721
	  	12/23/1993
 02/04/1998
	  	CA/2,086,221
filed
 12/23/1992(National
Phase of
PCT/
CA93/00558
filed
12/21/1993)
	 	licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 402
 Non-provisional

United States
	  	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	  	08/893,575
 6,046,185
	  	07/10/1997
 04/04/2000
 07/12/2016
	  	60/023,450
filed
07/11/1996	 	joint
owner
and
licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	
								
	 402A1
 Non-provisional

United States
	  	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	  	08/679,642	  	07/12/1996	  	60/023,450
filed
07/11/1996	 	joint
owner
and
licensee	  	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	  	

  
 - 7 - 

															
	 Reference No.

Application
Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402D1
 Non-provisional

United States
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	09/471,827
 6,706,701
	 	12/23/1999
 03/16/2004
 07/12/2016
	 	 08/893,575 filed 10/10/1997
 08/679,642 filed
07/12/1996 60/023,450 filed 07/11/1996
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402C1
 Non-provisional

United States
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	10/703,155
 7,067,682
	 	11/06/2003
 06/27/2006
 07/12/2016
	 	09/471,827 filed 12/23/99 08/893,575 filed 07/10/97 08/679,642 filed 07/12/96 60/023,450 filed 07/11/ 1996	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	Maintenance fee due 12/27/2009
								
	 402D2
 Non-provisional

United States
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	10/703,153
 6,949,533
	 	11/06/2003
 09/27/2005
 09/24/2013
	 	 09/471,827 filed 12/23/1999
 08/893,575 filed
7/10/1997
 08/679,642 filed 07/12/96 60/023,450 filed 07/11/1996
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	Maintenance fee due 9/28/09
								
	 402C2
 Non-provisional

United States
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	11/285,779	 	11/22/2005	 	 10/703,155 filed 11/06/03
 09/471,827 filed
12/23/1999
 08/893,575 filed 7/10/1997
 08/679,642 filed
07/12/96 60/023,450 filed 07/11/1996
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 - 8 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402PC
 PCT
	 	POLYOXYGENATED STEROIDS	 	PCT/
CA97/00490	 	07/11/1997	 	60/023450 filed 7/11/1996	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402EP
 Regional

EPO
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
	 	 60/023,450 filed 07/11/1996
 (Regional Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 40201EP
 Regional

EPO
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	02025269.8	 	07/11/1997	 	 60/023,450 filed 07/11/1996
 08/679,642 filed
07/12/1996
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402AT
 EPC registered patent

Austria
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402AU
 National

Australia
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	33323/97
 722815
	 	07/11/1997
 11/23/2000
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 - 9 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402BE
 EPC registered patent

Belgium
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402BR
 National

Brazil
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	PI9710353-5	 	07/11/1997	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402CA
 National

Canada
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	2259981	 	07/11/1997	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402CH
 EPC registered patent

Switzerland
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402CN
 National

China
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97195531.X	 	07/11/1997	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 - 10 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402CN1
 Divisional

China
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	200710305916.8	 	12/27/2007	 	 60/023,450 filed 07/11/1996; 97195531.X filed 7/11/1997

(National Phase of PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402DE
 EPC registered patent

Germany
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402ES
 EPC registered patent

Spain
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402FR
 EPC registered patent

France
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402GB
 EPC registered patent

United Kingdom
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 - 11 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402GR
 EPC registered patent

Greece
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402HK
 Extension of EP

Hong Kong
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	99105463.9	 	04/02/2003	 	60/023,450 filed 07/11/1996	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402IE
 EPC registered patent

Republic of Ireland
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402IT
 EPC registered patent

Italy
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402JP
 National

Japan
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	9-535644	 	07/11/1997	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 - 12 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402KR
 National

South Korea
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	10-1999-7000116
 533436
	 	07/11/1997
 11/29/2005
 07/11/2017
	 	 60/023450 filed 7/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402LU
 EPC registered patent

Luxembourg
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402MC
 EPC registered patent

Monaco
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402MX
 National

Mexico
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	9900444
 213301
	 	07/11/1997
 03/18/2003
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 40201MX
 Non-PCT filing

Mexico
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	2002/008618	 	09/03/2002	 	 60/023,450 filed 07/11/1996 08/679,642 filed 07/12/1996

PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 - 13 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 402NL
 EPC registered patent

Netherlands
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402NZ
 National

New Zealand
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	333731
 333731
	 	07/11/1997
 01/11/2001
 07/11/2017
	 	 60/023,450 filed 07/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402RU
 National

Russian Federation
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	99103025
 2196143
	 	07/11/1997
 01/10/2003
 07/11/2017
	 	 60/023450 filed 7/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402SE
 EPC registered patent

Sweden
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	97929071.5
 0917534
	 	07/11/1997
 12/04/2002
 07/11/2017
	 	 60/023450 filed 7/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	
								
	 402SG
 National

Singapore
	 	6,7-OXYGENATED STEROIDS AND USES RELATED THERETO	 	9806198-9
 60914
	 	07/11/1997
 02/21/2002
 07/11/2017
	 	 60/023,450 filed 7/11/1996
 (National Phase of
PCT/CA97/00490 filed 07/11/1997)
	 	joint
owner
and
licensee	 	 UBC/UA License Agreement
  

April 1, 1993 as amended February 18, 1998.
  

University of British Columbia
 University of Alberta

Biolipox AB (publ) (assignee)
	 	

  
 - 14 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 406P1
 Provisional

United States
	 	STEROID COMPOUNDS WITH 6/7-HYDROGEN SUBSTITUTION AND USES THEREOF	 		 		 		 	not filed	 	N/A	 	
								
	 407P1
 Provisional

United States
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	60/200,617	 	04/28/00	 		 	owner	 	N/A	 	
								
	 407
 Non-provisional

United States
	 	3-NITROGEN-6, 7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	09/845,775
 6,635,629
	 	04/30/2001
 10/21/2003
 04/30/2021
	 	60/200,617 filed 04/28/2000	 	owner	 	N/A	 	
								
	 407C1
 Non-provisional

United States
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	10/624,946
 7,112,580
	 	07/21/2003
 09/26/2006
 08/20/2021
	 	 09/845,775 filed 04/30/2001
 60/200,617 filed
04/28/2000
	 	owner	 	N/A	 	
								
	 407C2
 Non-provisional

United States
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	11/474,066	 	06/23/2006	 	 10/624,946 filed 07/21/2003
 09/845,775 filed
04/30/2001
 60/200,617 filed 04/28/2000
	 	owner	 	N/A	 	
								
	 407C3
 Non-provisional

United States
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	11/496,052	 	07/28/2006	 	 10/624,946 filed 07/21/2003
 09/845,775 filed
04/30/2001
 60/200,617 filed 04/28/2000
	 	owner	 	N/A	 	

  
 - 15 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 407USPC
 National

United States
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	10/258,950	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00345 filed 03/16/2001)
	 	owner	 	N/A	 	
								
	 407PC
 PCT
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	PCT/
CA01/00581	 	04/30/2001	 	60/200,617 filed 04/28/2000	 	owner	 	N/A	 	
								
	 407AE
 National

United Arab Emirates
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	P327/2002	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407AP
 National

African Regional Industrial Property Organization
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	2002/002659	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (Regional Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407AT
 EPC registered patent

Austria
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407AU
 National

Australia
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	2001252084
 2001252084
	 	04/30/2001
 10/19/2006
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	

  
 - 16 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 407BA
 National

Bosnia-Hercegovina
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	BAP021257A	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407BE
 EPC registered patent

Belgium
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407BG
 National

Bulgaria
	 	3-NITROGEN-6,7DIOXYGEN STEROIDS AND USES RELATED THERETO	 	107289	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407BR
 National

Brazil
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	PI0110419-5	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407CA
 National

Canada
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	2418748	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	Annuity and reinstatement fee due 4/30/2010
								
	 407CH
 National

Switzerland
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	

  
 - 17 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	 License Name

License Date

Parties
	 	 Deadlines

	 407CN
 National

China
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01810167.4
 01810167.4
	 	04/30/2001
 08/10/2005
 04/30/2021
	 	60/200,617 filed 04/28/2000	 	owner	 	N/A	 	
								
	 407CO
 National

Colombia
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	02106292	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407CR
 National

Costa Rica
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 		 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407CZ
 National

Czech Republic
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	3568-2002	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407DE
 EPC registered patent

Germany
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407DK
 EPC registered patent

Denmark
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	

  
 - 18 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 407DZ
 National

Algeria
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	020288
 3355
	 	04/30/2001
 06/07/2005
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407EE
 National

Estonia
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	P200200613	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407EP
 Regional

EPO
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (Regional Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	Annuities due 10/30/2009
								
	 407ES
 EPC registered patent

Spain
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407FI
 EPC registered patent

Finland
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407FR
 EPC registered patent

France
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	

  
 - 19 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 407GB
 EPC registered patent

United Kingdom
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407GR
 EPC registered patent

Greece
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407HK
 Extension of EP

Hong Kong
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	03102993.0	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407HR
 National

Croatia
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	P20020944A	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407HU
 National

Hungary
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	P0300908	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407ID
 National

Indonesia
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	W-00200202713	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	

  
 - 20 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 407IE
 EPC registered patent

Ireland
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407IL
 National

Israel
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	152448	 	04/30/2001
 04/01/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407IN
 National

India
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01546/Mum/02	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407IT
 EPC registered patent

Italy
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407JP
 National

Japan
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	2001-580936	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407KR
 National

South Korea
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND PHARMACEUTICAL COMPOSITION COMPRISING SAID COMPOUND	 	10-2002-7014524	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	

  
 - 21 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 407LU
 EPC registered patent

Luxembourg
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407MA
 National

Morocco
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	26916
 25808
	 	04/30/2001
 01/07/2003
 11/20/2022
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407MC
 EPC registered patent

Monaco
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407MX
 National

Mexico
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	2002/010645
 240629
	 	04/30/2001
 09/29/2006
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407MX1
 Divisional

Mexico
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	PA/a/
2006/009236	 	04/30/2001	 	 2002/010645 filed 04/30/2001
 60/200,617 filed
04/28/2000
 (National Phase of PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407MX2
 Divisional

Mexico
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	PA/a/
2006/011045	 	04/30/2001	 	 2002/010645 filed 04/30/2001
 60/200,617 filed
04/28/2000
 (National Phase of PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	

  
 - 22 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 407NL
 EPC registered patent

Netherlands
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407NO
 National

Norway
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	20025106	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407NZ
 National

New Zealand
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	522181
 522181
	 	04/30/2001
 08/11/2005
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407OA
 National

Africa
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	1200200328	 	04/03/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407PL
 National

Poland
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	P365798	 	04/03/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407PT
 EPC registered patent

Portugal
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 02/14/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	

  
 - 23 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 407RU
 National

Russian Federation
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	2002131941
 2291873
	 	04/30/2001
 07/10/2006
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407SE
 EPC registered patent

Sweden
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	01925262.6
 1278763
	 	04/30/2001
 01/20/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407SG
 National

Singapore
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	200206535-7
 92573
	 	04/30/2001
 11/30/2004
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407SK
 National

Slovakia
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	2002-1569	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407UA
 National

Ukraine
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	2002119460
 79229
	 	04/30/2001
 06/11/2007
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407VN
 National

Vietnam
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	1-2002-01082
 5632
	 	04/30/2001
 05/09/2006
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	

  
 - 24 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 407YU
 National

Serbia and Montenegro
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	P-881/02	 	04/30/2001	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407ZA
 National

South Africa
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	2002/8631
 2002/8631
	 	04/30/2001
 04/28/2004
 04/30/2021
	 	 60/200,617 filed 04/28/2000
 (National Phase of
PCT/CA01/00581 filed 04/30/2001)
	 	owner	 	N/A	 	
								
	 407CL
 Non-PCT filing

Chile
	 	3-NITROGEN-6,7-DIOXYGEN STEROIDS AND USES RELATED THERETO	 	2004-0435	 	03/04/2004	 	60/200,617 filed 04/28/2000	 	owner	 	N/A	 	
								
	 409P1
 Provisional

United States
	 	PROCESS DEVELOPMENT AND MANUFACTURE OF 5-PROGEST-17(20)-ENE-3,6,7-TROIL AND (Z)-3,6,7-TRIHYDROXY-17(20) PREGENE	 	60/135,346	 	05/21/1999	 		 	owner	 	N/A	 	
								
	 409P2
 Provisional

United States
	 	PROCESS DEVELOPMENT AND MANUFACTURE OF 5A-PROGEST-17 (20)-ENE-3A, 6A, 7B-TROIL & (Z)-3B, 6A, 7B-TRIHYDROXY-17 (20) PREGENE	 	60/205,703	 	05/19/2000	 		 	owner	 	N/A	 	

  
 - 25 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 409P3
 Provisional

United States
	 	PROCESS DEVELOPMENT AND MANUFACTURE OF 5A-PROGEST-17 (20)-ENE-3A, 6A, 7B-TROIL & (Z)-3B, 6A, 7B-TRIHYDROXY-17 (20) PREGENE	 	60/293,013	 	05/22/2001	 		 	owner	 	N/A	 	
								
	 409
 Non-provisional

United States
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	10/154,432
 6,696,580
	 	05/22/2002
 02/24/2004
 05/22/2022
	 	60/293,013 filed 05/22/2001	 	owner	 	N/A	 	
								
	 409D1
 Non-provisional

United States
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	10/744,857
 6,982,329
	 	12/22/2003
 01/03/2006
	 	60/293,013 filed 05/22/2001	 	owner	 	N/A	 	Maintenance fees due 1/4/2010
								
	 409USPC
 National

United States
	 	PROCESS FOR THE PRODUCTION OF 6,7-DIHYDROXY STEROID COMPOUNDS BY ALLYLIC OXIDATION OF STEROID-5-ENE COMPOUNDS TO STEROID-5-ENE-7-ONE COMPOUNDS FOLLOWED BY HYDROBORATION AND OXIDATION AND INTERMEDIATES OF THIS PROCESS	 	10/478,581	 	05/22/2002	 	 60/293,013 013 filed 05/22/2001
 (National Phase
of PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	

  
 - 26 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 409PC
 PCT
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	PCT/
CA02/00728	 	05/22/2002	 	60/293,013 filed 05/22/2001	 	owner	 	N/A	 	
								
	 409AU
 National

Australia
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	2002257453	 	05/22/2002	 	 60/293,013 filed 05/22/2001
 (National Phase of
PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	
								
	 409CA
 National

Canada
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	2447780	 	05/22/2002	 	 60/293,013 filed 05/22/2001
 (National Phase of
PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	
								
	 409EP
 Regional

EPO
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	02727121.2	 	05/22/2002	 	 60/293,013 filed 05/22/2001
 (Regional Phase of
PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	
								
	 409JP
 National

Japan
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	2002-591522	 	05/22/2002	 	 60/293,013 filed 05/22/2001
 (National Phase of
PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	
								
	 409KR
 National

South Korea
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	1020037015243	 	05/22/2002	 	 60/293,013 filed 05/22/2001
 (National Phase of
PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	
								
	 409MX
 National

Mexico
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	2003/010585	 	05/22/2002	 	 60/293,013 filed 05/22/2001
 (National Phase of
PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	

  
 - 27 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 409NO
 National

Norway
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	20035180	 	05/22/2002	 	 60/293,013 filed 05/22/2001
 (National Phase of
PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	
								
	 409NZ
 National

New Zealand
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	529576
 529576
	 	05/22/2002
 22/09/2006
	 	 60/293,013 filed 05/22/2001
 (National Phase of
PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	
								
	 409NZ1
 Divisional

New Zealand
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	546612	 	05/22/2002	 	 529576 filed 05/22/2002 (409NZ)
 60/293,013
filed 05/22/2001
 (National Phase of PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	
								
	 409ZA
 National

South Africa
	 	PROCESS IMPROVEMENTS IN STEROID CHEMISTRY	 	2003/8967
 2003/8967
	 	05/22/2002
 11/24/2004
 05/22/2022
	 	 60/293,013 filed 05/22/2001
 (National Phase of
PCT/CA02/00728 filed 05/22/2002)
	 	owner	 	N/A	 	
								
	 410P1
 Provisional

United States
	 	102 COMPOUND	 		 		 		 	owner	 	N/A	 	
								
	 411P1
 Provisional

United States
	 	CYCLOPENTA-NAPHTHALENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/434,791	 	12/18/2002	 		 	owner	 	N/A	 	

  
 - 28 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 411P2
 Provisional

United States
	 	CYCLOPENTA-NAPHTHALENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/531,516	 	12/18/2003	 		 	owner	 	N/A	 	
								
	 411P3
 Provisional

United States
	 	CYCLOPENTA-NAPHTHALENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/638,725	 	12/23/2004	 		 	owner	 	N/A	 	
								
	 411P4
 Provisional

United States
	 	CYCLOPENTA-NAPHTHALENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/754,560	 	12/27/2005	 		 	owner	 	N/A	 	
								
	 411P5
 Provisional

United States
	 	CYCLOPENTA-NAPHTHALENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/882,283	 	12/28/2006	 		 	owner	 	N/A	 	
								
	 411P6
 Provisional

United States
	 	CYCLOPENTA-NAPHTHALENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	61/017,553	 	12/29/2007	 		 	owner	 	N/A	 	
								
	 412P1
 Provisional

United States
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/463,216	 	04/15/2003	 		 	owner	 	N/A	 	
								
	 412
 Non-provisional

United States
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	10/825,084	 	04/15/2004	 	60/463,216 filed 04/15/2003	 	owner	 	N/A	 	

  
 - 29 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 412PC
 PCT
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	CA2004/000566	 	04/15/2004	 	60/463,216 filed 04/15/2003	 	owner	 	N/A	 	
								
	 412AU
 National

Australia
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	2004-229598	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	
								
	 412BR
 National

Brazil
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	PI0409376-3	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	
								
	 412CA
 National

Canada
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	2521883	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	
								
	 412CN
 National

China
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	0480016607.3	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	
								
	 412EP
 Regional

Europe
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	04727484.0	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (Regional Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	
								
	 412HK
 Extension of CN

China
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	07100639.0	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	

  
 - 30 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 412JP
 National

Japan
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	2006-504111	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	
								
	 412KR
 National

Korea
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	10-05-7019693	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	
								
	 412MX
 National

Mexico
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	A/
2005/011212	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	
								
	 412NO
 National

Norway
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	2005-4787	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	
								
	 412NZ
 National

New Zealand
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	542962	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	
								
	 412RU
 National

Russian Federation
	 	IDENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	2005135439	 	04/15/2004	 	 60/463,216 filed 04/15/2003
 (National Phase of
PCT/CA2004/000566 filed04/15/2004)
	 	owner	 	N/A	 	

  
 - 31 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 413P1
 Provisional

United States
	 	PHENANTHRENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/434,561	 	12/18/2002	 		 	owner	 	N/A	 	
								
	 413P2
 Provisional

United States
	 	PHENANTHRENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/531,068	 	12/18/2003	 		 	owner	 	N/A	 	
								
	 413P3
 Provisional

United States
	 	PHENANTHRENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/638,010	 	12/21/2004	 		 	owner	 	N/A	 	
								
	 413P4
 Provisional

United States
	 	PHENANTHRENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/753,435	 	12/22/2005	 		 	owner	 	N/A	 	
								
	 413P5
 Provisional

United States
	 	PHENANTHRENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/871,870	 	12/26/2006	 		 	owner	 	N/A	 	
								
	 413P6
 Provisional

United States
	 	PHENANTHRENE DERIVATIVES AS PHARMACEUTICAL AGENTS	 	61/017,047	 	12/27/2007	 		 	owner	 	N/A	 	
								
	 414P1
 Provisional

United States
	 	COMPOUNDS AS ANTI-INFLAMMATORY AGENTS: A/D-RINGS OPENED	 		 		 		 	owner	 	N/A	 	
								
	 415P1
 Provisional

United States
	 	BICYCLIC DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/463,247	 	04/15/2003	 		 	owner	 	N/A	 	
								
	 415P2
 Provisional

United States
	 	BICYCLIC DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/561,928	 	04/14/2004	 		 	owner	 	N/A	 	

  
 - 32 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 415P3
 Provisional

United States
	 	BICYCLIC DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/672,203	 	04/15/2005	 		 	owner	 	N/A	 	
								
	 415P4
 Provisional

United States
	 	BICYCLIC DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/792,563	 	04/17/2006	 		 	owner	 	N/A	 	
								
	 415P5
 Provisional

United States
	 	BICYCLIC DERIVATIVES AS PHARMACEUTICAL AGENTS	 	60/912,607	 	04/18/2007	 		 	owner	 	N/A	 	
								
	 415P6
 Provisional

United States
	 	BICYCLIC DERIVATIVES AS PHARMACEUTICAL AGENTS	 	61/046,661	 	04/21/2008	 		 	owner	 	N/A	 	
								
	 415P7
 Provisional

United States
	 	BICYCLIC DERIVATIVES AS PHARMACEUTICAL AGENTS	 	61/171,727	 	04/22/2009	 		 	owner	 	N/A	 	
								
	 416P1
 Provisional

United States
	 	COMPOUNDS AS ANTI-INFLAMMATORY AGENTS: A/B-RINGS OPENED	 		 		 		 	owner	 	N/A	 	
								
	 417USPC
 National

United States
	 	CRYSTALLINE FORMS OF
3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	10/575,689	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
 (National Phase of PCT/ IB2004/003426 filed 10/20/2004 [.417PC])
	 	owner	 	N/A	 	

  
 - 33 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 417PC
 PCT
	 	FORMES CRISTALLINES DU CHLORHYDRATE DE 3-BETA-AMINO, 17-METHYLENE, ANDROSTANE-6-ALPHA, 7-BETA-DIOL	 	IB2004/003426	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
	 	owner	 	N/A	 	
								
	 417FR
 Non-PCT filing

France
	 	CRYSTALLINE FORMES OF 3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	0312257	 	10/20/2003	 		 	owner	 	N/A	 	
								
	 417AU
 National

Australia
	 	CRYSTALLINE FORMS OF 3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	2004281998	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
 (National Phase of PCT/ IB2004/003426 filed 10/20/2004 [.417PC])
	 	owner	 	N/A	 	
								
	 417CA
 National

Canada
	 	CRYSTALLINE FORMS OF 3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	2542821	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
 (National Phase of PCT/ IB2004/003426 filed 10/20/2004 [.417PC])
	 	owner	 	N/A	 	

  
 - 34 - 

															
	 Reference No.

Application
 Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 417CN
 National

China
	 	CRYSTALLINE FORMES OF 3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	200480035138.X	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
 (National Phase of PCT/ IB2004/003426 filed 10/20/2004 [.417PC])
	 	owner	 	N/A	 	
								
	 417EP
 Regional

EPO
	 	CRYSTALLINE FORMES OF 3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	04769678.6	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
 (Regional Phase of PCT/ IB2004/003426 filed 10/20/2004 [.417PC])
	 	owner	 	N/A	 	
								
	 417IN
 National

India
	 	CRYSTALLINE FORMS OF 3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	2228/DELNP/
2006	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
 (National Phase of PCT/ IB2004/003426 filed 10/20/2004 [.417PC])
	 	owner	 	N/A	 	
								
	 417JP
 National

Japan
	 	CRYSTALLINE FORMES OF 3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	2006-534854	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
 (National Phase of PCT/ IB2004/003426 filed 10/20/2004 [.417PC])
	 	owner	 	N/A	 	

  
 - 35 - 

															
	 Reference No.

Application Type

Country
	 	 Title
	 	Appl. No.
Patent No.	 	Appl. Date
Issue Date
Expiration
Date	 	 Priority
Applications
	 	Seller’s Interest	 	License Name
License Date
Parties	 	 Deadlines

	 417KR
 National

Republic of Korea
	 	CRYSTALLINE FORMES OF 3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	10-2006-7009800	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
 (National Phase of PCT/ IB2004/003426 filed 10/20/2004 [.417PC])
	 	owner	 	N/A	 	
								
	 417MX
 National

Mexico
	 	CRYSTALLINE FORMES OF 3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	PA/A/
2006/005679	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
 (National Phase of PCT/ IB2004/003426 filed 10/20/2004 [.417PC])
	 	owner	 	N/A	 	
								
	 417RU
 National

Russian Federation
	 	CRYSTALLINE FORMES OF 3-BETA-AMINO 17-METHYLENE ANDROSTANE-6-ALPHA 7-BETA-DIOL HYDROCHLORIDE	 	2006117320	 	10/20/2004	 	 60/512,679 filed 10/20/2003
 FR 0312257 filed
10/20/2003
 (National Phase of PCT/ IB2004/003426 filed 10/20/2004 [.417PC])
	 	owner	 	N/A	 	

 Licenses: 
  

	1.	UBC/UA License Agreement. 

  
 - 36 - 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 7.8.3 

SELLER DISCLOSURE SCHEDULE 

INTELLECTUAL PROPERTY CLAIMS 
 None.

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 7.8.5 

SELLER DISCLOSURE SCHEDULE 

INTELLECTUAL PROPERTY LICENSES 
  

	1.	Biological Activity Profiling Agreement between Inflazyme Pharmaceuticals Ltd. and BioSeek, Inc. dated June 23rd, 2006. 

 

	2.	UBC/UA License Agreement. 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 7.8.6 

SELLER DISCLOSURE SCHEDULE 

INTELLECTUAL PROPERTY PAYMENT OBLIGATIONS 
  

	1.	Future fees for any additional work on the Compounds under the Biological Activity Profiling Agreement between Inflazyme Pharmaceuticals Ltd. and BioSeek, Inc. dated June 23rd, 2006. 

  

	2.	License fees and payments under the UBC/UA License Agreement. 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 7.10.1 

SELLER DISCLOSURE SCHEDULE 

CONTRACTS AND PREMISES 
 List
of Contracts: 
  

	1.	UBC/UA License Agreement. 

  

	2.	Assignment Agreement between Inflazyme Pharmaceuticals Ltd. and Biolipox AB dated November 16, 2007. 

  

	3.	CRO Contracts: 

  

							
	 Parties:
Inflazyme
Pharmaceuticals
Ltd. and
	  	Contract No.	 	 Title of Contract
	  	Date
	Aptuit Inc.	  	HAA00269	 	General GMP Warehouse Storage of IPL512,602	  	January 11, 2005
				
	Aptuit Inc.	  	TBA09255	 	Setup, Testing, Storage and Distribution of IPL512,602 Acetic Acid Salt via Salt Conversion Route Analytical Reference Standard	  	August 9, 2005
				
	Aptuit Inc.	  	ZNA02466	 	Re-Crystallization of IPL512,602 HCl Reference Standard Material	  	June 29, 2006
				
	Aptuit Inc.	  	ZNA05113	 	Performing the Release and Stability of IPL512,602	  	November 7,
2006
				
	Bioseek Inc.	  		 	Biological Activity Profiling Agreement	  	June 23, 2006
				
	Premier Research Group PLC	  	IPL512,602/200C
 (IM-05-073)

/IZP05001
	 	Clinical Research Services in Support of the IPL512,602/2002C Study IM-05-073 (CAPSICS)	  	April 5, 2006
				
	Premier Research Group PLC	  	IPL512,602/200C
 (IM-05-073)

/IZP06001
	 	Clinical Research Services in Support of the IPL512,602/2002 Study IM-05-073 
“Validation Study”	  	April 21, 2006

 Locations of Assets: 

Biolipox AB is located at Solna, Uppsala, Sweden. 

  
 - 2 - 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 7.10.2 

SELLER DISCLOSURE SCHEDULE 

DISPUTES 
 None. 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 7.12.3 

UNRELATED CONTRACTS 
 The following
Contracts referenced under the Biolipox-Inflazyme Asset Purchase Agreement do not relate to the LSAIDs: 
  

	1.	Material Transfer Agreement between Inflazyme Pharmaceuticals Ltd. and Helicon Therapeutics, Inc. dated August 9, 2000. 

  

	2.	Non-Exclusive License Agreement between AVANT Immunotherapeutics, Inc. and Adprotech Limited dated March 10, 2004, as amended by letter dated March 10, 2004. 

 

	3.	Material Transfer Agreement between IZP and Novartis Institutes for BioMedical Research, Inc. dated June 21, 2007, as amended. 

 [*] = CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, IS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. 
  

 SCHEDULE 8.1 

BUYER DISCLOSURE SCHEDULE 

Exception to Section 8.3.2 
 Certain consents will be
required under the Shareholders’ Agreement dated June 8, 2007 between Aquinox Pharmaceuticals Inc., Aquinox Pharmaceuticals (USA) Inc. and certain shareholders of Aquinox Pharmaceuticals Inc. and Aquinox Pharmaceuticals (USA) Inc., as
amended from time to time, in connection with the execution, delivery or performance of this Agreement, including, without limitation, Series A Investors’ Approval (as defined in such shareholders’ agreement) of this Agreement. 

 SCHEDULE 8.6 

BUYER DISCLOSURE SCHEDULE 

CAPITALIZATION 
 Set below are lists
of all securities (including outstanding warrants, options, agreements, convertible securities or other commitments to which Aquinox Pharmaceuticals Inc. or Aquinox Pharmaceuticals (USA) Inc. may become obligated to issue any shares of its capital
stock or other securities) of Aquinox Pharmaceuticals Inc. and Aquinox Pharmaceuticals (USA) Inc. outstanding as of the Effective Time, and the holders of any interest in such securities. 

Issued and Outstanding Shares of Aquinox Pharmaceuticals Inc. 

 

																									
	 Shareholders
	  	No. New
Common
Shares	 	  	No. of
Common
Exchangeable
Shares Held	 	  	No. of
Special
Voting
Shares Held	 	  	No. of Series
A-1
Exchangeable
Shares	 	  	No. of Series
A-2
Exchangeable
Shares	 	  	No. of Non-
Voting
Preferred
Shares	 
	 David J. Main and Karen M. Main as trustees of the Main Family Trust
	  				  	 	1,500,000	  	  	 	1,500,000	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	 David J. Main
	  				  	 	55,000	  	  	 	55,000	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	 Ventures West 8 Limited Partnership
	  	 	—  	  	  	 	70,000	  	  	 	9,160,098	  	  	 	5,454,545	  	  	 	3,636,363	  	  	 	—  	  
	 B.C. Advantage Funds (VCC) Ltd.
	  	 	—  	  	  	 	—  	  	  	 	5,485,958	  	  	 	3,667,777	  	  	 	1,818,181	  	  	 	—  	  
	 Johnson & Johnson Development Corporation
	  	 	—  	  	  	 	—  	  	  	 	8,181,817	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	 Baker Bros. Investments II, L.P.
	  	 	—  	  	  	 	—  	  	  	 	9,090	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	 667, L.P. (formerly Baker Biotech Fund I, L.P.)
	  	 	—  	  	  	 	—  	  	  	 	1,218,181	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	 Baker Brothers Life Sciences, L.P.
	  	 	—  	  	  	 	—  	  	  	 	3,213,635	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	 14159, L.P.
	  	 	—  	  	  	 	—  	  	  	 	104,545	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	 Aquinox Pharmaceuticals (USA) Inc.
	  	 	1	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	5,200,400	  
	 [***]
	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  	  	 	[***]	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 TOTALS
	  	 	1	  	  	 	5,793,776	  	  	 	33,708,727	  	  	 	9,733,139	  	  	 	5,454,544	  	  	 	5,200,400	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 Issued and Outstanding Shares of Aquinox Pharmaceuticals (USA) Inc. 

 

					
	Series A-1 Special Voting Stock	 
	 Ventures West 8 Limited Partnership
	  	 	5,454,545	  
	 B.C. Advantage Funds (VCC) Inc.
	  	 	3,667,777	  
	 [***]
	  	 	[***]	  
	 Total
	  	 	9,733,139	  

  

					
	Series A-1 Preferred Stock	 
	 Johnson & Johnson Development Corporation
	  	 	4,909,090	  
	 Baker Bros Investments II, L.P.
	  	 	5,454	  
	 Baker Brothers Life Sciences, L.P.
	  	 	1,928,181	  
	 14159, L.P.
	  	 	62,727	  
	 667, L.P. (formerly Baker Biotech Fund I, L.P.)
	  	 	405,468	  
	 667, L.P. (formerly Baker Biotech Fund I, L.P.)
	  	 	325,441	  
	 Total
	  	 	7,636,361	  

  

					
	Series A-2 Special Voting Stock	 
	 Ventures West 8 Limited Partnership
	  	 	3,636,363	  
	 B.C. Advantage Funds (VCC) Inc.
	  	 	1,818,181	  
	 Total
	  	 	5,454,544	  

  

					
	Series A-2 Preferred Stock	 
	 Johnson & Johnson Development Corporation
	  	 	3,272,727	  
	 Baker Bros Investments II, L.P.
	  	 	3,636	  
	 Baker Brothers Life Sciences, L.P.
	  	 	1,285,454	  
	 14159, L.P.
	  	 	41,818	  
	 667, L.P. (formerly Baker Biotech Fund I, L.P.)
	  	 	487,272	  
	 Total
	  	 	5,090,907	  

  

					
	Common Special Voting Stock	 
	 David J. Main and Karen M. Main, as Trustees of the Main Family Trust
	  	 	1,500,000	  
	 David J. Main
	  	 	55,000	  
	 Ventures West 8 Limited Partnership
	  	 	70,000	  
	 [***]
	  	 	[***]	  
	 Total
	  	 	5,793,776	  

  
 - 2 - 

 Issued and Outstanding Options of the Aquinox Pharmaceuticals Inc. and Aquinox
Pharmaceuticals (USA) Inc. 
 As of the Effective Time, the following options have been granted pursuant to the stock option plans of Aquinox
Pharmaceuticals Inc. and Aquinox Pharmaceuticals (USA) Inc.: 
  

					
	 Option Holders
	  	No. of units(1) under Joint
Canadian Stock Option Plan(2)	 	No. of shares of common stock
of Aquinox Pharmaceuticals
(USA) Inc. under the Stock
Option Plan of Aquinox
Pharmaceuticals (USA)
Inc.
	 [***]
	  	[***]	 	[***]
	 Total
	  	[***]	 	[***]

  

	(1)	A unit under the Joint Canadian Stock Option Plan consists of the following securities of Aquinox Pharmaceuticals Inc.: (a) one Common Exchangeable Share and (b) one Canadian Special Voting Share.

 Aquinox Pharmaceuticals Inc., Aquinox Pharmaceuticals (USA) Inc. or both have entered into the following agreements, which contain rights
of first refusal, pre-emptive rights or other similar rights, obligations to issue or redeem any securities or terms with respect to the voting of any capital stock: 
  

	(a)	the Exchange Agreement; 

  

	(b)	the Support Agreement dated as of June 8, 2007 between Aquinox Pharmaceuticals Inc. and Aquinox Pharmaceuticals (USA) Inc., as amended from time to time; 

 

	(c)	the Amended and Restated Shareholders’ Agreement dated June 8, 2007 between Aquinox Pharmaceuticals Inc., Aquinox Pharmaceuticals (USA) Inc., the University of British Columbia, David Williams, Michael
LeBlanc, Gina Chong, Nicole Lee-Son, Matt Nodwell, Lu Yang, The British Columbia Cancer Agency Branch, University of Papua New Guinea, Raymond J. Andersen, Gerald Krystal and Jacqueline Lea Krystal as trustees of the Krystal Family Trust, David J.
Main and Karen M. Main as trustee of the Main Family Trust, Alice Low Fung Mui, Christopher John Ong, Christopher John Ong as trustee of the CJ Ong Family Trust; and 

 

	(d)	the Shareholders’ Agreement dated as of June 8, 2007 between Aquinox Pharmaceuticals Inc., Aquinox Pharmaceuticals (USA) Inc. and certain shareholders of Aquinox Pharmaceuticals Inc. and Aquinox
Pharmaceuticals (USA) Inc., as amended from time to time. 

  
 - 3 - 

 In addition to the rights and obligations under the above listed agreements, the constating documents of Aquinox
Pharmaceuticals Inc. and Aquinox Pharmaceuticals (USA) Inc. (which constating documents are referenced in Section 8.2 of this Agreement) contain share redemption, conversion and exchange rights and other similar commitments, including, without
limitation, commitments that could require Aquinox Pharmaceuticals Inc. or Aquinox Pharmaceuticals (USA) Inc. to issue, sell or purchase their securities. 

The Payment Shares will be subject to the terms and conditions of the Exchange Agreement. 

Certain holders of Common Exchangeable Shares listed above (i.e. holders of more than a certain number of Common Exchangeable Shares) were required to enter
into, and as of the Effective Time are parties to, one or more of the shareholders’ agreements described above. 

  
 - 4 - 

 SCHEDULE 8.7 

BUYER DISCLOSURE SCHEDULE 

FINANCIAL STATEMENTS 
 The Financial
Statements are set out on the following pages. 
 [***]

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