Document:

Exhibit 10.8

 

[*] Certain information in this document has been omitted from this exhibit because it is both (i) not material and (ii) would be competitively
harmful if publicly disclosed.

 

Confidential

 

NICAMs Purchase
and Sale Agreement 

 

by and between 

 

Ciclofilin Pharmaceuticals
Corp. 

 

and 

 

Aurinia Pharmaceuticals
Inc. 

 

February 14, 2014

 

     

     

    

 

NICAMs Purchase and Sale Agreement

 

Summary of Contents

 

	Article 1 Interpretation	1
	 	 
	Article 2 Assignment of Rights and Asset Purchase	10
	 	 
	Article 3 Liabilities	12
	 	 
	Article 4 Consideration	12
	 	 
	Article 5 Reporting and Payment Terms	15
	 	 
	Article 6 Allocation of Risk	18
	 	 
	Article 7 Confidentiality	22
	 	 
	Article 8 Indemnification, Release and Insurance	23
	 	 
	Article 9 Miscellaneous	25

 

 

     

     

    

 

	Table of Contents

 

	Article
1 Interpretation	1
	1.1	Definitions	1
	1.2	Construction	9
	 	 	 
	Article
2 Assignment of Rights and Asset Purchase	10
	2.1	Assignment of Subject
Assets	10
	2.2	Excluded Assets	10
	2.3	Physical Asset Transfer	11
	2.4	Timeline to Transfer
the Subject Assets	11
	2.5	Government Approvals	11
	2.6	Covenant Not to Sue	11
	 	 	 
	Article
3 Liabilities	12
	3.1	Assumed Liabilities	12
	3.2	Excluded Liabilities	12
	 	 	 
	Article
4 Consideration	12
	4.1	Near-Term Milestone
Payments	12
	4.2	Later-Term Milestone
Payments	13
	4.3	Provisions Applicable
to all Milestone Events	13
	4.4	Royalty on Net Sales	13
	4.5	Royalty on License
Revenue	13
	4.6	Liquidity Event	14
	4.7	No Duplication	14
	4.8	Timing of the Grant
of a License or a Liquidity Event	14
	 	 	 
	Article
5 Reporting and Payment Terms	15
	5.1	Royalty Term and Adjustments	15
	5.2	Reports of Royalties
on Net Sales; Payments	15
	5.3	Reports of License
    Revenue or Liquidity Event Proceeds; Payments	16
	5.4	Reports of Milestone
Events; Payments	16
	5.5	Audits	16
	5.6	Tax Matters	17
	5.7	Currency Exchange	17
	5.8	Blocked Payments	18
	5.9	Late Payments	18
	5.10	Security for Payments	18
	5.11	Ciclofilin Pharmaceuticals
Inc.	18
	 	 	 
	Article
6 Allocation of Risk	18
	6.1	Representations and
Warranties of Each Party	18
	6.2	Additional Representations
and Warranties by Aurinia	19
	6.3	Sole Remedy	19
	6.4	Additional Representations
and Warranties by CPC	20
	6.5	CPC Acknowledgements	20
	6.6	Anti-Sandbagging	21
	6.7	NO OTHER WARRANTY	21

 

     

     

    

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	6.8	LIMITATION ON AURINIA’S LIABILITY	21
	 	 	 
	Article 7 Confidentiality	22
	7.1	Non-Disclosure and Use Restrictions	22
	7.2	Public Filings	22
	7.3	Public Statements	22
	7.4	Consequence of Transfer of the Subject Assets	23
	 	 	 
	Article 8 Indemnification, Release and Insurance	23
	8.1	General Indemnification By Aurinia	23
	8.2	General Indemnification By CPC	23
	8.3	Procedure for Indemnification	24
	8.4	Release	25
	8.5	Insurance	25
	 	 	 
	Article 9 Miscellaneous	25
	9.1	Amendment	25
	9.2	Assignment	25
	9.3	Counterparts	26
	9.4	Descriptive Headings	26
	9.5	Entire Agreement of the Parties	26
	9.6	Expenses	26
	9.7	Further Actions	26
	9.8	Governing Law; Dispute Resolution	26
	9.9	Independent Contractors	27
	9.10	No Trademark Rights	27
	9.11	Notices	27
	9.12	Representation by Legal Counsel	28
	9.13	Severability	28
	9.14	Waiver	28

 

     

     

    

 

NICAMs Purchase and Sale Agreement

 

This NICAMs Purchase and Sale Agreement (the “Agreement”)
dated February 14, 2014 (the “Effective Date”) by and between Aurinia Pharmaceuticals Inc., a Canadian corporation
with an office at #1203 - 4464 Markham Street, Victoria, BC V8Z 7X8 Canada (“Aurinia”) and Ciclofilin Pharmaceuticals
Corp., an Alberta corporation with an address at 34 Westbrook Drive, Edmonton, Alberta T6J 2C9 Canada (“CPC”),
and Ciclofilin Pharmaceuticals Inc., a California corporation with an address at 3525 Del Mar Heights Road, Suite 427, San Diego,
CA, USA 92130 (“CPI”). Aurinia, CPI and CPC may each be referred to herein individually as a “Party”
and collectively as the “Parties”.

 

A.            WHEREAS Aurinia, a publicly
listed pharmaceutical development company, has a discovery stage library of molecules of NICAMS as defined herein to bind various
cyclophilin targets for an undefined indication(s);

 

B.             WHEREAS CPC desires to conduct the necessary discovery
and development for the purposes of clinical and corporate development of one or more NICAMs in various indications;

 

C.             WHEREAS, CPI is the sole legal and beneficial shareholder
of CPC and owns all of the outstanding shares of CPC;

 

D.             WHEREAS Aurinia desires to sell to CPC and CPC desires
to buy from Aurinia (in each case, subject to any applicable third party consents), Aurinia’s entire interest(s) in the NICAMs,
and CPI desires to guarantee certain obligations of CPC to Aurinia;

 

NOW THEREFORE, in consideration of the foregoing premises
and the promises, mutual covenants and obligations set forth below, and other good and valuable consideration, the Parties agree
as follows:

 

Article 1 Interpretation

 

		1.1	Definitions 

 

		1.1.1	“$” shall mean, except as expressly set out otherwise in this Agreement,

Canadian dollars.

 

		1.1.2	“Affiliate” shall mean, with respect to any person or entity, any other person or entity which controls,
is controlled by or is under common control with such person or entity. A person or entity shall be regarded as in control of another
entity if it owns or controls at least fifty percent (50%) of the equity securities of the subject entity entitled to vote in the
election of directors (or, in the case of an entity that is not a corporation, for the election of the corresponding managing authority),
provided, however, that the term “Affiliate” shall not include subsidiaries or other entities in which a Party or its
Affiliates owns a majority of the ordinary voting power necessary to elect a majority of the board of directors or other governing
board, but is restricted from electing such majority by contract or otherwise, until such time
as such restrictions are no longer in effect.

 

     

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		1.1.3	“Applicable Law” shall mean all laws, statutes, ordinances, codes, rules, and
regulations that have been enacted by a Regulatory Authority and which are in force as of the Effective Date or come into force
during the term of this Agreement, in each case to the extent that the same are applicable to the performance by the Parties of
their respective obligations under this Agreement, including, with respect to the United States, the Prescription Drug Marketing
Act, the Federal Food, Drug and Cosmetics Act of 1938, as amended, the Health Insurance Portability and Accountability Act, the
Federal Anti-Kickback Statute, and any applicable FDA regulations relating to sampling practices, and with respect to Canada, the
Food and Drugs Act, Food and Drug Regulations, and the Canadian Environmental Protection Act.

 

		1.1.4	“Assignment” shall have the meaning set out in Section 2.1.

 

		1.1.5	“Assumed Contracts” shall mean the agreements related to the NICAM

Program set out in Exhibit 1.1.5.

 

		1.1.6	“Assumed Liabilities” shall have the meaning set out in Section 3.1.

 

		1.1.7	“Aurinia Indemnified Parties” shall have the meaning set out in Section 8.2.

 

		1.1.8	“Bill of Sale” shall have the meaning set out in Section 2.1.3.

 

		1.1.9	“Change of Control” shall be deemed to have occurred if any of the following
occurs after the Effective Date:

 

		(a)	any “person” or “group” (as such terms are defined below) (a) is or
                                                                 becomes the “beneficial owner” (as defined below, except that a “person” or “group” shall
                                                                 be deemed to have “beneficial ownership” of all shares of capital stock or other equity interests if such person
                                                                 or group has the right to acquire such shares or interests, whether such right is exercisable immediately or only after the
                                                                 passage of time), directly or indirectly, in a transaction or series of related transactions, of shares of capital stock or
                                                                 other interests (including partnership interests) of CPC or any of its Controlling Affiliates then outstanding and normally
                                                                 entitled (without regard to the occurrence of any contingency) to vote in the election of the directors, managers or similar
                                                                 supervisory positions (“Voting Stock”) of CPC, or its Controlling Affiliate, as applicable, representing
                                                                 more than fifty percent (50%) of the total voting power of all outstanding classes of Voting Stock or (b) has the power,
                                                                 directly or indirectly, for reasons other than solely for investment purposes, to elect a majority of the members of
                                                                 CPC’s board of directors or similar governing body (“Board of Directors”);
or

 

     

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		(b)	CPC or its Controlling Affiliate, as applicable, enters into a merger, reverse-merger, amalgamation,
arrangement, consolidation or other form of business combination, share exchange, reorganization, recapitalization, transfer or
other similar transaction with another person (whether or not CPC (or its Controlling Affiliate, as applicable) is the surviving
entity) and as a result of such transaction (a) the members of the Board of Directors of CPC (or its Controlling Affiliate, as
applicable) immediately prior to such transaction constitute less than a majority of the members of the Board of Directors of CPC
(or its Controlling Affiliate, as applicable) or such surviving entity immediately following such transaction or (b) the persons
that beneficially owned, directly or indirectly, the shares of Voting Stock of CPC (or its Controlling Affiliate, as applicable)
immediately prior to such transaction cease to beneficially own, directly or indirectly, shares of Voting Stock of CPC representing
at least a majority of the total voting power of all outstanding classes of Voting Stock of the surviving entity immediately following
such transaction.

 

For the purpose of this definition
of Change of Control: (a) “person” and “group” have the meanings given such terms under Section 13(d) and
14(d) of the United States Securities Exchange Act of 1934 and the term “group” includes any group acting for the purpose
of acquiring, holding or disposing of securities within the meaning of Rule 13d-5(b)(1) under the said Act; (b) a “beneficial
owner” shall be determined in accordance with Rule 13d-3 under the aforesaid Act; and (c) the terms “beneficially owned”
and “beneficially own” shall have meanings correlative to that of “beneficial owner”; and (c) “Controlling
Affiliate” means, with respect to CPC, an Affiliate of CPC that controls (within the meaning given under the definition of
 “Affiliate”) CPC, and is deemed to include CPI. A Change of Control of CPI shall be a Change of Control for the purposes
of this Agreement.

 

		1.1.10	“Confidential Information” shall mean, with respect to a Party, all non-public proprietary data or information
that is disclosed by such Party to the other Party in connection with this Agreement or information designated as “Confidential
Information” of such Party hereunder.

 

		1.1.11	“Control” or “Controlled” shall mean with respect to any (a)
item of information or know-how, or (b) intellectual property right, the possession (whether by ownership or license, other than
pursuant to this Agreement) by a Party of the lawful right to grant to the other Party access and/or assign as provided herein
such item or right without violating the terms of any agreement with or lawful right of any Third Party existing as of the date
such Party is obligated under this Agreement to grant such access and/or license.

 

		1.1.12	“Cover” shall mean that, with respect to any NICAM, the composition, manufacture,
use, sale, offer for sale, importation, or other exploitation of such NICAM is claimed to infringe at least one claim of the applicable
patent application or issued patent absent a license or
other authorization from the owner of such rights.

 

     

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		1.1.13	“Disclosing Party” shall have the meaning set out in Section 7.1

 

		1.1.14	“EMA” shall mean the European Medicines Agency or its successor from time to
time.

 

		1.1.15	“Encumbrance” shall mean claims, security interests, liens, pledges, charges,
escrows, options, proxies, rights of first refusal, preemptive rights, covenants not to sue, mortgages, hypothecations, assessments,
prior assignments, reversionary rights, reversionary titles, reversionary interests, title retention agreements, conditional sales
agreements, indentures, deeds of trust, leases, levies or security agreements of any kind whatsoever, or any other agreements to
give any of the foregoing in the future, imposed upon the subject property or item.

 

		1.1.16	“Equity Financing” shall mean at least $1,000,000 in capital secured for, and
accepted and received by, CPC, including without limitation through any purchase, transfer or other disposition of any debt, equity
or other securities of CPC in which CPC receives and retains all of the proceeds of the transaction primarily for the purposes
of the development and commercialization of the NICAMs and related corporate purposes.

 

		1.1.17	“Excluded Assets” shall mean all assets and properties (other
than the Subject Assets) of Aurinia and its Affiliates, including:

 

		(a)	any assets owned by Paladin;

 

		(b)	the assets and properties related to the development and exploitation of voclosporin.

 

		1.1.18	“Excluded Liabilities” shall have the meaning set out in Section 3.2.

 

		1.1.19	“FDA” shall mean the United States Food and Drug Administration
or its successor from time to time.

 

		1.1.20	“First Commercial Sale” means, with respect to the Product in a country, the
first commercial sale to a Third Party of the Product in such country. Sales for clinical study purposes or compassionate, named
patient or similar use shall not constitute a First Commercial Sale.

 

		1.1.21	“General Notice” shall have the meaning set out in Section 2.1.3.

 

		1.1.22	“Health Canada” shall mean Health Canada or its successor
from time to time.

 

     

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		1.1.23	“Indemnified Parties” means in respect of a Party, such Party and its Affiliates
and their respective directors, officers, employees and agents (and each of them is an “Indemnified Party”).

 

		1.1.24	“Indemnifying Party” shall have the meaning set out in Section 8.3.1.

 

		1.1.25	“Indication” means any human disease or condition which can be treated, prevented,
or cured or the progression of which can be delayed. Without limiting the generality of the foregoing, a use of the Product in
a new Indication requires an approval by a Regulatory Authority, whether through a label expansion or separate Regulatory Approval.
The Parties agree that label changes or Regulatory Approvals to market a new dosage or strength of a drug, or change the way it
manufactures a drug, shall not be a separate Indication.

 

		1.1.26	“Knowledge” of a Party means the actual knowledge of:

 

		(a)	in respect of Aurinia, Richard Glickman, Stephen Zaruby, Michael Martin, and
Neil Solomons; and

 

		(b)	in respect of CPC, Robert Foster and the executive officers of CPC.

 

		1.1.27	“Liability” shall mean, collectively, any liability, indebtedness, guaranty,
endorsement, claim, loss, damage, deficiency, cost, expense, obligation, responsibility, or product liability, whether fixed or
unfixed, known or unknown, choate or inchoate, liquidated or unliquidated, secured or unsecured, direct or indirect, matured or
unmatured, or absolute, contingent or otherwise.

 

		1.1.28	“License Revenue” shall mean, except as otherwise specified in this Agreement, all revenues, receipts, monies,
and the fair market value of any shares or other securities and all other consideration directly or indirectly collected or received
whether by way of cash, credit or other value received by CPC in respect of a License of intellectual property rights relating
to the NICAMS, excluding royalties calculated on the Net Sales of Products sold by a licensee. For greater clarity, it is confirmed
that License Revenue will include all:

 

		(a)	option fees (including any payments for any covenant of CPC referred to in Section 4.8.1), license
fees, milestone payments, and royalties; and

 

		(b)	research or development fees in excess of the direct reimbursement for the actual costs of such
research and development incurred by CPC; and

 

		(c)	loans to CPC by a Licensee to the extent that the interest charged for same is less than fair
                                                                 market value (in which case such difference shall be License Revenue) or to the extent that the principal of same is forgiven (in which case such forgiven amount shall
be License Revenue); and

 

     

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		(d)	investments in CPC by a Licensee to the extent that such investments are made at greater than fair
market value (in which case such premium shall be License Revenue).

 

		1.1.29	“Licensee” shall mean a Third Party to whom CPC has granted a right to sell,
market, distribute and/or promote a Product in the Territory and “License” shall mean an agreement or arrangement between
CPC and a Licensee granting such rights. As used in this Agreement, “Licensee” includes a licensee of a Licensee, but
shall not include a wholesaler or reseller of a Product who does not market or promote such Product, or a Third Party manufactures
Product solely for CPC or its Licensee.

 

		1.1.30	“Liquidity Event” shall mean: (i) a Change of Control of CPC, CPI or any Controlling
Affiliate of CPC or CPI; or (ii) CPC sells, leases, exclusively licenses, transfers or otherwise conveys or disposes of to any
Third Party, in one or more related transactions, all or substantially all of the Subject Assets or the NICAM Program; provided
that a financing for the purposes of raising capital for CPC in which CPC receives and retains all of the proceeds of the transaction
primarily for the purposes of the development and commercialization of the NICAMs and related corporate purposes shall be deemed
not to be a “Liquidity Event”.

 

		1.1.31	“Losses” means any and all actions, causes of action, in law or in equity, suits,
debts, liens, Liabilities, claims, demands, losses, costs (including costs of investigation, defense and enforcement of this Agreement),
damages, fines, penalties, government orders, taxes, expenses or amounts paid in settlement (in each case, including reasonable
attorneys’ and experts fees and expenses), of any nature whatsoever, whether known or unknown, fixed or contingent, involving
a claim or action of a Third Party or Regulatory Authority.

 

		1.1.32	“Major Market Country” means a country in the European Union, the United States,
Japan, Australia, Canada or China.

 

		1.1.33	“Net Sales” shall mean the gross amount invoiced by CPC or its Affiliates and
its Licensees to non-Licensee Third Parties for Product sales, less: (i) reasonable and customary cash discounts consistent with
CPC’s past practices, (ii)  customary rebates
and chargebacks actually allowed, and (iii) sales credits, refunds, returns and allowances accrued by CPC, acting reasonably. Such
amounts shall be determined from books and records maintained by CPC in accordance with applicable accounting standards, consistently
applied. To the extent that any accrual contemplated by the foregoing clause (iii) is subsequently adjusted in accordance with
applicable accounting standards, CPC shall notify Aurinia thereof in writing and the royalty owing hereunder in respect of the
Net Sales corresponding to such accrued amounts shall be adjusted accordingly and the next payment hereunder
shall be increased or decreased accordingly.

 

     

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Sales of Product by and between a Party and its Affiliates
and Licensees are deemed not to be sales to Third Parties and shall be excluded from Net Sales calculations for all purposes. Sales
of Product for use in conducting clinical trials of Product in a country in order to obtain the first regulatory approval of Product
in such country shall be excluded from Net Sales calculations for all purposes.

 

In the event the Product is sold as part of a Combination
Product (as defined below) in a country, the Net Sales of the Product, for the purposes of determining payments based on Net Sales,
shall be determined by a formula to be agreed in good faith between the Parties, provided, however, such formula shall consider
the relative value and contribution of the Product to the overall value of the Combination Product. “Combination Product”
shall mean any pharmaceutical product that consists of a Product and other active compounds and/or active ingredients or any combination
of the Product sold together with another pharmaceutical product for a single invoiced price. For the avoidance of doubt, any composition
of matter or article of manufacture sold with a Product (other than another active ingredient), including any medical device including
a drug delivery device, shall not be subject to the “Combination Product” provision provided for herein, but rather
all amounts derived directly or indirectly from sale, lease or transfer of such composition of matter or article of manufacture
shall be included in the definition of Net Sales as if they were Net Sales of such Product.

 

		1.1.34	“CPC Indemnified Parties” shall have the meaning set out in Section 8.1.

 

		1.1.35	“NICAM Program” shall mean the manufacturing, using, developing,
promoting, advertising, marketing, distributing, selling, offering to sell, importing and/or exporting of the Product in the Territory.

 

		1.1.36	“NICAMs” shall mean any and all Non-Immunosuppressive
Cyclophilin Antagonist Molecules derived from Cyclosporin A.

 

		1.1.37	“Paladin” means Paladin Labs Inc.

 

		1.1.38	“Patent Rights” means all patents, patent applications, divisional applications,
and continuation applications covering NICAMs and listed in Exhibit 1.1.38, along with any office actions.

 

		1.1.39	“Permitted Encumbrances” shall mean (i) Encumbrances for taxes, assessments and
other governmental charges not yet due and payable or, if due, either (a) not delinquent or (b) being contested in good faith by
appropriate proceedings, (ii) mechanics’, workmen’s, repairmen’s, warehousemen’s, carriers’ or other
similar Encumbrances, including all statutory Encumbrances, arising or incurred in the ordinary course of business and not yet
delinquent or, (iii) 
Encumbrances that do not materially affect the ownership, value or use of the underlying Subject Asset for the purpose it is being
utilized by Aurinia or its Affiliates on the Effective Date.

 

     

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		1.1.40	“Product Related Assets” shall mean to the extent owned or Controlled by Aurinia
without any obligation to make any payment to any Third Party on the Effective Date:

 

		(a)	all NICAMs know how listed in Exhibit 1.1.40(a);

 

		(b)	all data sets and documentation resulting from all discovery and non-clinical testing of NICAMs
generated either in-house or by Third Parties; and

 

		(c)	all Patent Rights.

 

		1.1.41	“Product” shall mean a pharmaceutical product incorporating NICAMs.

 

		1.1.42	“Receiving Party” shall have the meaning set out in Section 7.1

 

		1.1.43	“Regulatory Approval” shall mean all governmental and regulatory approvals required to commercialize a Product
for a particular Indication in a country, including any permit, authorization, license or approval (or waiver) from any Regulatory
Authority required for the commercialization of Product (excluding pricing and/or reimbursement approvals if not legally required
for the commercialization of Product.

 

		1.1.44	“Regulatory Assets” shall mean all regulatory correspondence of Aurinia respecting
NICAMs, if any, existing as of the Effective Date for the Product to the extent reasonably necessary or useful for CPC’s
use of the Subject Assets as contemplated hereby.

 

		1.1.45	“Regulatory Authority” shall mean any federal, national, multinational, state,
provincial or local regulatory agency, department, bureau or other governmental entity with authority over the clinical testing,
marketing and/or sale of a pharmaceutical product in a country, including the FDA in the United States, Health Canada in Canada
and EMA in the EU.

 

		1.1.46	“Regulatory Notices” shall have the meaning set out in Section 2.1.2.

 

		1.1.47	“Subject Assets” shall mean the Assumed Contracts, Product
Related Assets and the Regulatory Assets.

 

		1.1.48	“Taxes” shall mean all federal, state, local, foreign and other income, net
income, gross income, gross receipts, sales, use, ad valorem, transfer, capital stock, franchise, profits, license, service, add
on or alternative minimum tax, occupancy, withholding, payroll, fringe benefits, employment, employees’ income withholding,
foreign or domestic withholding, unemployment, disability, excise, severance, stamp, value added,
occupation, premium, property (including, real property and personal property taxes and any assessments, special or otherwise),
environmental, windfall profits, customs, duties or other taxes, and any fees, assessments, levies, tariffs or charges of any kind
that are in the nature of a tax, together with any interest and any penalties, additions to tax or additional amounts with respect
thereto (and “Tax” means any one of the foregoing Taxes).

 

     

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		1.1.49	“Territory” shall mean all countries of the world.

 

		1.1.50	“Third Party Notices” shall have the meaning set out in Section 2.1.3.

 

		1.1.51	“Third Party” shall mean any person or entity other than
Aurinia, CPC or any of their respective Affiliates.

 

		1.2	Construction 

 

		1.2.1	The words “hereof,” “herein” and “hereunder” and words of like
import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.

 

		1.2.2	The captions herein are included for convenience of reference only and shall be ignored in the construction
or interpretation hereof. References to Articles, Sections, Exhibits, and Schedules are to Articles, Sections, Exhibits, and Schedules
of this Agreement unless otherwise specified.

 

		1.2.3	All Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated in and made
a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise
defined therein, shall have the meaning as defined in this Agreement.

 

		1.2.4	Any singular term in this Agreement shall be deemed to include the plural, and any plural term the
singular, and words denoting either gender shall include both genders as the context requires. Where a word or phrase is defined
herein, each of its other grammatical forms shall have a corresponding meaning.

 

		1.2.5	Whenever the words “include,” “includes” or “including” are
used in this Agreement, they shall be deemed to be followed by the words “without limitation,” whether or not they
are in fact followed by those words or words of like import.

 

		1.2.6	The use of the word “or” shall not be exclusive.

 

		1.2.7	A reference to any legislation or to any provision of any legislation shall include any modification,
amendment, re-enactment thereof, any legislative provision substituted therefore and all rules, regulations and statutory instruments
issued or related to such legislation.

 

     

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		1.2.8	Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied
in the construction or interpretation of this Agreement. No prior draft of this Agreement nor any course of performance or course
of dealing shall be used in the interpretation or construction of this Agreement. No parol evidence shall be introduced in the
construction or interpretation of this Agreement unless the ambiguity or uncertainty in issue is plainly discernable from a reading
of this Agreement without consideration of any extrinsic evidence.

 

Article 2 Assignment of Rights and Asset Purchase

 

		2.1	Assignment of Subject Assets 

 

		2.1.1	Subject to the terms and conditions set forth in this Agreement and in partial consideration for
the payments to be made by CPC to Aurinia pursuant to Article 4 hereof, Aurinia hereby assigns to CPC and CPC hereby purchases
and assumes from Aurinia all of Aurinia’ right, title and interest in and to the Subject Assets, free and clear of all Encumbrances
other than Permitted Encumbrances.

 

		2.1.2	Aurinia agrees to promptly upon request deliver to the FDA and all other Regulatory Authorities having jurisdiction written
notice (collectively, the “Regulatory Notices”) confirming the transfer of the Regulatory Assets to CPC in such
form as may be prepared and requested by and at the expense of CPC, and to promptly provide CPC with true copies of the Regulatory
Notices and their delivery particulars, and all original acknowledgements of receipt and any other communication received by Aurinia
from such regulatory authorities in response to any of the Regulatory Notices.

 

		2.1.3	Aurinia agrees to promptly upon request execute and deliver to CPC a bill of sale confirming the
transfer to CPC of title to the Subject Assets (the “Bill of Sale”) and a written notice on Aurinia letterhead
(the “General Notice”) addressed “To Whom it May Concern” in a form prepared by and at the expense
of CPC. Promptly after the Effective Date, Aurinia shall deliver to all Third Parties who have possession of any Subject Assets,
original written notices (the “Third Party Notices”) confirming that ownership of those Subject Assets has been
transferred to CPC, and Aurinia shall promptly deliver to CPC true copies of such Notices and of any responses thereto received
by Aurinia.

 

		2.2	Excluded Assets 

 

The Parties acknowledge and agree that Aurinia is not selling,
conveying, transferring, assigning, or delivering, or assigning any rights whatsoever to the Excluded Assets to CPC, and CPC is
not purchasing, taking delivery of or acquiring any rights whatsoever to the Excluded Assets from Aurinia. Nothing in this Section
2.2 shall be construed as limiting the covenant not to sue set out in Section 2.6.1.

 

     

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		2.3	Physical Asset Transfer

 

Unless otherwise noted herein, CPC will be solely responsible
for making all necessary arrangements for the physical transfer of the Product Related Assets and the documentation relating to
the Regulatory Assets from Aurinia or Third Party storage facilities to CPC or to a Third Party designated by CPC. Delivery of
the Product Related Assets and the documentation relating to the Regulatory Assets shall be in accordance with INCOTERMS 2010,
EXW Aurinia’s premises, which premises shall be deemed to include Third Party storage facilities such that CPC will assume
title and risk of loss and responsibility for transport from the Aurinia or Third Party facility. Aurinia agrees to facilitate
transfer of Subject Assets directly to CPC or to a Third Party selected by CPC. CPC will endeavour to minimize impact on Aurinia
resources.

 

		2.4	Timeline to Transfer the Subject Assets

 

Within 30 days from the Effective Date, CPC may draft
and Aurinia will make available to CPC executed copies of all Third Party Notices and Regulatory Notices. Thereafter, on one week’s
request from Aurinia, CPC shall remove all of the Subject Assets from Aurinia’s premises. At any time following the Effective
Date, CPC may propose to Aurinia a sublease of Aurinia premises.

 

		2.5	Government Approvals

 

CPC and Aurinia will cooperate and use respectively
all reasonable efforts to make all registrations, filings and applications, to give all notices and to obtain as soon as practicable
all governmental or other consents, transfers, approvals, orders, qualifications authorizations, permits and waivers, if any, and
to do all other things necessary or desirable for the consummation of the transactions as contemplated hereby.

 

		2.6	Covenant Not to Sue 

 

		2.6.1	Aurinia, its successors and assigns shall not assert nor cause to be asserted against: CPC, its
Affiliates, Licensees or any of their respective Affiliates; any patient, doctor, other health professional, medical facility;
collaborator, contractor or Third Party which has entered into an agreement with CPC relating to the Product; any Regulatory Authority;
any Third Party which exploits or supplies any product or service for use with the Product, including the delivery or administration
of any Product; any distributor and any Third Party that has obtained Product directly or indirectly from any of the foregoing;
any patents Controlled by Aurinia as of the Effective Date that are infringed by the synthesis of intermediates of NICAMs, for
the synthesis of intermediates of NICAMs in the Territory.

 

		2.6.2	CPC, its successors and assigns shall not assert nor cause to be asserted against: Aurinia,
                                                               its Affiliates, Licensees or any of their respective Affiliates; any patient, doctor, other health professional, medical
                                                               facility; collaborator, contractor or Third Party which has entered into an agreement with Aurinia relating to any
                                                               voclosporin product; any Regulatory Authority; any Third Party which exploits or supplies any product or service for use with
                                                               any voclosporin product, including the delivery or administration
of any voclosporin product; any distributor and any Third Party that has obtained voclosporin product directly or indirectly from
any of the foregoing; any Patent Rights that are infringed by the exploitation of voclosporin products in the Territory.

 

     

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Article 3 Liabilities

 

		3.1	Assumed Liabilities

 

Upon the terms and subject to the conditions set forth
in this Agreement, and except as set out in Section 3.2, CPC shall assume and agree to pay, perform or otherwise discharge, in
accordance with their respective terms and subject to the respective conditions thereof, all Liabilities associated with the NICAM
Program, including the following Liabilities (collectively, the “Assumed Liabilities”):

 

		3.1.1	all Liability, whether arising before or after the Effective Date, in respect of the Subject Assets
and the NICAM Program; and

 

		3.1.2	all Liability arising out of the conduct of the NICAM Program by CPC on or
after the Effective Date.

 

		3.2	Excluded Liabilities 

 

Upon the terms and subject to the
conditions set forth in this Agreement, Aurinia shall remain liable for, pay, perform or otherwise discharge, in accordance with
their respective terms and subject to the respective conditions thereof, the Liabilities set out in Exhibit 3.2 (collectively,
the “Excluded Liabilities”). The Parties hereby acknowledge and agree that CPC shall not be responsible for,
assume, or be obligated to pay, perform or otherwise discharge any Excluded Liabilities.

 

Article 4 Consideration

 

		4.1	Near-Term Milestone Payments 

 

		4.1.1	CPC will pay the milestone payments set forth in the
table below within thirty (30) days of the first achievement of each of the following events:

 

	Event	 	Milestone Payment	 
	Upon dosing of first patient in a
    clinical trial, regardless of Indication	 	$	450,000	 
	Upon dosing of first patient in a
    Phase III clinical trial, regardless of Indication	 	$		*
	Total
    Milestones	 	$		* 

 

     

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		4.2	Later-Term Milestone Payments 

 

		4.2.1	CPC will pay the milestone payments set forth in the
table below within thirty (30) days of the first achievement of each of the following events:

 

	Event	 	Milestone Payment	 
	First Regulatory Approval in a Major Market Country	 	$		*
	First Regulatory Approval in a Major Market Country in a second Indication	 	$		*
	Total Later-term milestones	 	$	2,000,000	 

 

		4.3	Provisions Applicable to all Milestone Events 

 

		4.3.1	Except as otherwise set out: (i) all milestones will be paid in cash only;
and (ii) all payments will be made within 30 days of the occurrence of the event.

 

		4.3.2	All milestone payments set forth in this Article are non-refundable and non-creditable.

 

		4.3.3	Each milestone payment shall occur only once.

 

		4.3.4	Occurrence of the milestones and payments made on account of the occurrence of the milestones contemplated
in this Article shall not be publicly announced by a Party without the express written consent of the other Party, unless a Party
reasonably determines that announcement or disclosure of such payment is required by Applicable Law.

 

		4.4	Royalty on Net Sales 

 

Subject to Section 5.1, CPC shall pay to Aurinia a royalty
of 2.5% of Net Sales by CPC or its Licensee(s). The amount payable under the foregoing royalty obligation is uncapped.

 

		4.5	Royalty on License Revenue

 

CPC shall pay to Aurinia a royalty on License Revenue
received by CPC in the amounts set out below. If the License is granted:

 

		4.5.1	prior to 12 months after the first Equity Financing, 30% of License Revenue
to a maximum of $5,000,000;

 

		4.5.2	later than 12 months and before 24 months following the first Equity Financing,
15% of License Revenue to a maximum of $5,000,000;
	 	 	 
		4.5.3	thereafter, 5% of License Revenue to a maximum of $5,000,000.

 

     

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	4.6	Liquidity Event 

 

CPC shall pay to Aurinia a milestone payment in the amounts
set out below upon the occurrence of a Liquidity Event. If the Liquidity Event occurs:

 

		4.6.1	prior to 12 months following the first Equity Financing, CPC will pay Aurinia
30% of proceeds to a maximum of $5,000,000;

 

		4.6.2	later than 12 months and before 24 months following the first Equity Financing,
CPC will pay Aurinia 15% of proceeds to a maximum of $5,000,000;

 

		4.6.3	thereafter, 5% of proceeds to a maximum of $5,000,000.

 

The occurrence of a Liquidity Event and
the related payments will not affect the obligation to pay milestone payments. CPC may not receive all consideration for the Liquidity
Event in cash at the time of closing of a Liquidity Event. CPC shall pay the foregoing shares of proceeds to Aurinia in the form
and at the time they are received by CPC. Liquidity Event proceeds shall include any payments for any covenant of CPC referred
to in Section 4.8.2.

 

	4.7	No Duplication

 

In no event shall any payment made to CPC be counted
for the purposes of this Agreement as both License Revenue and Liquidity Event proceeds. Any payments made on account of License
Revenue or Liquidity Event proceeds shall be credited against the caps on License Revenue and Liquidity Event proceeds so that
CPC’s maximum obligation in respect of both License Revenue and Liquidity Event proceeds is a total of $5,000,000.

 

	4.8	Timing of the Grant of a License or a Liquidity Event

 

For the purposes of calculating the applicable rates
in Sections 4.5 and 4.6 of this Agreement, a License is granted on the date of the exercise of earliest grant of rights related
to that License; and a Liquidity Event occurs on the date of the earliest obligation of CPC in respect of such Liquidity Event.
For example:

 

		4.8.1	the date of the grant of a License is the earliest of:

 

		(a)	the date the License becomes effective;

 

		(b)	the date of the execution of the License;

 

		(c)	the date of the grant of any option to obtain a License; and

 

		(d)	the earliest date on which CPC agrees with a potential Licensee to restrict
CPC’s ability to: disclose information to; negotiate with; or grant rights to; any person other than such potential Licensee
with respect to a NICAM or any or all of the NICAM Program,
provided that the potential Licensee later becomes a Licensee; and

 

     

    - 15 -

    

 

		4.8.2	the date of a Liquidity Event is the earliest of:

 

		(a)	the date the Liquidity Event becomes effective;

 

		(b)	the date of the execution of an agreement for a Liquidity Event transaction;

 

		(c)	the date of the grant of any option for a Liquidity Event transaction; and

 

		(d)	the earliest date on which CPC or its Controlling Affiliate, as applicable, agrees with a potential
party to a Liquidity Event transaction to restrict CPC’s or its Controlling Affiliate’s, as applicable, ability to:
disclose information to; negotiate with; or grant rights to; any person other than such potential party with respect to: a License,
a Liquidity Event transaction or any transaction respecting the Voting Stock of CPC or its Controlling Affiliate, as applicable,
or any merger, reverse-merger, amalgamation, arrangement, consolidation or other form of business combination, share exchange,
reorganization, recapitalization, transfer or other similar transaction of CPC or its Controlling Affiliate, as applicable, with
another person, provided that the potential party later becomes a party to a Liquidity Event transaction.

 

Article 5 Reporting and Payment Terms

 

	5.1	Royalty Term and Adjustments

 

The obligation of CPC to make royalty payments at the
rate recited in Section 4.4 shall commence upon the First Commercial Sale of a Product in the Territory by CPC, its Affiliates
or Licensees, and shall continue on a country-by-country and Product-by-Product for the longer of the date of either (i) the last
expiration of any patent Covering such Product, including any formulation or reformulation patent, Controlled by CPC, its Affiliates
or Licensees in each such country; or (ii) fifteen (15) years from First Commercial Sale in each such country.

 

	5.2	Reports of Royalties on Net Sales; Payments

 

Within forty-five (45) days after the end of each calendar quarter
for which royalties are payable by CPC to Aurinia with respect to Net Sales in the Territory pursuant to Section 4.4, CPC shall

 

		5.2.1	submit to Aurinia a report, on a country-by-country basis, providing in reasonable detail an accounting
of all Net Sales made during such calendar quarter and the calculation of the applicable royalties under Section 4.4; and

 

     

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		5.2.2	pay to Aurinia all royalties payable by it under Section 4.4 as indicated
in the report.

 

	5.3	Reports of License Revenue or Liquidity Event Proceeds; Payments 

 

Within forty-five (45) days after the end of each calendar quarter
for which royalties or other payments are payable by CPC to Aurinia pursuant to Section 4.5 or 4.6, CPC shall:

 

		5.3.1	submit to Aurinia a report providing in reasonable detail an accounting of all License Revenue
or proceeds received during such calendar quarter and the calculation of the applicable royalties or payments under Section 4.5
or 4.6; and

 

		5.3.2	pay to Aurinia all applicable royalties or payments under Section 4.5 or 4.6
as indicated in the report.

 

	5.4	Reports of Milestone Events; Payments 

 

Within thirty (30) days of the first achievement
of each of the events referred to in Section 4.1 or 4.2, CPC shall report the occurrence of such event in reasonable detail and
pay to Aurinia the applicable payment pursuant to Section 4.1 or 4.2.

 

		5.5	Audits 

 

		5.5.1	CPC shall keep complete and accurate records of the items underlying royalties and License Revenue relating to the reports
and payments required by this Article 5. Aurinia shall have the right annually at its own expense to have an independent, certified
public accountant, selected by Aurinia and reasonably acceptable to CPC, review any such records of CPC in the location(s) where
such records are maintained by CPC upon reasonable notice and during regular business hours and under obligations of confidence,
for the sole purpose of verifying the basis and accuracy of payments made under this Article 5 in the previous three (3) years.

 

		5.5.2	Aurinia shall bear the cost of any audit under this Section 5.5, except in the event that the results of the audit reveal an
underpayment of the amounts described in this Article 5 by five percent (5%) or more over the period being audited, in which case
CPC shall pay the reasonable costs of such examination. In the event that such examination concludes that additional amounts are
owed to Aurinia, CPC shall pay any such additional amounts within thirty (30) days of the date that CPC receives the written report
so concluding. In the event that such examination concludes that there has been an overpayment with respect to amounts paid to
Aurinia, the excess (after deducting the cost of the examination) shall be refunded by Aurinia to CPC within thirty (30) days of
the date that Aurinia receives the written report so concluding.

 

     

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	5.6	Tax Matters 

 

		5.6.1	The Parties shall provide reasonable cooperation and information to each other in connection with (i) the preparation or filing
of any Tax Return, Tax election, Tax consent or certification, or any claim for a Tax refund, (ii) any determination of liability
for Taxes and (iii) any audit, examination or other proceeding in respect of Taxes related to the NICAM Program.

 

		5.6.2	CPC shall make all payments to Aurinia under this Agreement without deduction or withholding except
to the extent that any such deduction or withholding is required by Applicable Law to be made on account of Taxes.

 

		5.6.3	Any Tax required to be withheld under Applicable Law on amounts payable under this Agreement shall
promptly be paid by CPC on behalf of Aurinia to the appropriate Regulatory Authority, and CPC shall furnish Aurinia with proof
of payment of such Tax. Any such Tax required to be withheld shall be an expense of and borne by Aurinia. CPC shall give notice
of its intention to begin withholding any such Tax in advance and cooperate to use reasonable and legal efforts to reduce such
Tax on payments made to Aurinia hereunder.

 

		5.6.4	CPC and Aurinia shall cooperate with respect to all documentation required by any taxing authority
or reasonably requested by CPC or Aurinia to secure a reduction in the rate of applicable withholding Taxes.

 

		5.6.5	Notwithstanding the rest of this Section 5.6, CPC shall be responsible for:

 

		(a)	all sales, use, transfer, value added and other similar Taxes, if any, arising
out of the transfer by Aurinia of the Subject Assets to CPC pursuant to this Agreement; and

 

		(b)	any Liability arising on or after the Effective Date for Taxes imposed with respect to the NICAM
Program or the Subject Assets that are attributable to the ownership, sale, operation or use of the NICAM Program or the Subject
Assets on or after following the Effective Date.

 

		5.7	Currency Exchange 

 

Unless otherwise agreed, all payments to be made by
CPC to Aurinia shall be made in U.S. Dollars, to an Aurinia bank account able to receive U.S. Dollars. Notwithstanding the foregoing
sentence, payments to be made by CPC to Aurinia under Sections 4.1 and 4.2 shall be made in Canadian dollars. If a payment is made
by a Third Party to CPC in Canadian dollars and such payment gives rise to a royalty payment under this Agreement, then the royalty
payment shall be made in Canadian dollars. In the case of License Revenue and Net Sales originating outside of Canada or the United
States, royalty payments by CPC to Aurinia shall be converted to U.S. Dollars in accordance with the following: the rate of currency
conversion shall be calculated using a simple average of mid-month and month-end spot rates as published by The Wall Street Journal,
New York City Edition for such accounting period.

 

     

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	5.8	Blocked Payments

 

In the event that, by reason of applicable
laws or regulations in any country, it becomes impossible or illegal for CPC or its Affiliate or a Licensee to transfer, or have
transferred on its behalf, royalties or other payments to Aurinia, CPC shall promptly notify Aurinia of the conditions preventing
such transfer and such distribution fees or other payments shall be deposited in local currency in the relevant country to the
credit of Aurinia in a recognized banking institution designated by Aurinia or, if none is designated by Aurinia within a period
of 30 days, in a recognized banking institution selected by Aurinia or its Affiliate or such Licensee, as the case may be, and
identified in a notice given to Aurinia.

 

	5.9	Late Payments

 

CPC shall pay interest to Aurinia on the
aggregate amount of any payments that are not paid on or before the date such payments are due under this Agreement at a rate per
annum equal to the lesser of one percent (1%) per month or the highest rate permitted by Applicable Law, calculated on the number
of days such payments are paid after the date such payments are due and compounded monthly.

 

	5.10	Security for Payments

 

CPC shall cooperate with Aurinia to secure Aurinia’s
right to the payments referred to in Sections 4.1, 4.2, 4.5 and 4.6, including the granting of a security interest in the
Subject Assets and any improvements thereto (including any data or intellectual property which may be exploited and thereby
infringe any of the Patent Rights) and any payments to be made respecting same, including License Revenue and the proceeds of
any Liquidity Event and assigning to Aurinia the right to receive the payments calculated on License Revenue or the proceeds
of any Liquidity Event directly from the party making such payment. The amount of such security is not to exceed the
cumulative total of expected payments to Aurinia of $7.9 million.

 

	5.11	Ciclofilin Pharmaceuticals Inc.

 

With respect to CPC obligations to make the payments
referred to in Article 4 and Article 5, any reference to “CPC” shall be deemed to include a reference to CPI. CPI shall
cause CPC to perform its obligations in Article 4 and Article 5 and shall execute the guarantee attached as Exhibit 5.11.

 

Article 6 Allocation of Risk

 

	6.1	Representations and Warranties of Each Party

 

Each of CPC and Aurinia hereby represents, warrants,
and covenants to the other Party hereto as follows:

 

		6.1.1	it is a corporation or entity duly organized and validly existing under the
laws of the state, province or other jurisdiction of its incorporation or formation;

 

     

    - 19 -

    

 

		6.1.2	the execution, delivery and performance of this Agreement by such Party has been duly authorized
by all requisite corporate action and does not require any shareholder action or approval;

 

		6.1.3	it has the power and authority to execute and deliver this Agreement and to
perform its obligations hereunder;

 

		6.1.4	the execution, delivery and performance by such Party of this Agreement and its compliance with
the terms and provisions hereof and thereof does not and will not conflict with or result in a breach of any of the terms and provisions
of or constitute a default under (i) a loan agreement, guaranty, financing agreement, agreement affecting a product or other agreement
or instrument binding or affecting it or its property, (ii) the provisions of its charter or operative documents or bylaws, or
(iii) any order, writ, injunction or decree of any court or governmental authority entered against it or by which any of its property
is bound;

 

		6.1.5	it shall at all times comply with all applicable laws and regulations relating
to its activities under this Agreement;

 

		6.1.6	there is no action, demand, suit, proceeding, arbitration, grievance, citation,
summons, subpoena, inquiry or investigation of any nature, civil, criminal, regulatory or otherwise, in law or in equity, pending
or, to such Party’s Knowledge, threatened against
such Party with respect to this Agreement; and

 

	6.2	Additional Representations and Warranties by Aurinia 

 

In addition to the representations and warranties made
by Aurinia in Section 6.1 above, Aurinia hereby represents, warrants, to CPC that, to Aurinia’ Knowledge and as of the Effective
Date:

 

		6.2.1	Aurinia has disclosed to CPC in good faith, all material information and documentation available
to Aurinia concerning its condition, financial and otherwise, its management, its business, and its prospects relevant to the subject
matter of this Agreement, including the prospects for the NICAMs;

 

		6.2.2	except for the Subject Assets, there are no rights or assets owned or Controlled by Aurinia without
any obligation to make any payment to any Third Party, including any agreements, bulk or finished drug product or regulatory documents
or regulatory filings or regulatory approvals, owned or Controlled by Aurinia without any obligation to make any payment to any
Third Party that would be breached, appropriated or infringed by the making, using or selling of Product in the Territory.

 

		6.3	Sole Remedy 

 

CPC’s sole remedy and Aurinia’s sole liability
for any breach of the warranties made in Section 6.2 shall be that:

 

     

    - 20 -

    

 

		6.3.1	in respect of the warranty made in Section 6.4.1, Aurinia shall promptly make commercially reasonable
efforts to secure the release or discharge of such Encumbrance at Aurinia’s expense, provided that the warranty in Section
6.4.2 has not been breached; and

 

		6.3.2	in respect of the warranty made in Section 6.2.2, Aurinia shall convey Aurinia’s
                                                               interest in such right or asset to CPC.

 

		6.4	Additional Representations and Warranties by CPC 

 

In addition to the representations and warranties made by CPC
in Section 6.1 above, CPC hereby represents, warrants, to Aurinia that as of the Effective Date:

 

		6.4.1	to CPC’s Knowledge, Aurinia owns the Subject Assets free and clear of
all Encumbrances, other than Permitted Encumbrances;

 

		6.4.2	to CPC’s Knowledge, the only Liabilities respecting the Subject Assets and the NICAM Program
as of the Effective Date are the Assumed Liabilities and the Excluded Liabilities;

 

		6.4.3	Robert Foster is the sole legal and beneficial shareholder of CPI and owns all of the outstanding
shares of CPI and CPI is the sole legal and beneficial shareholder of CPC and owns all of the outstanding shares of CPC; and

 

		6.4.4	CPC has disclosed to Aurinia in good faith, all material information and documentation available
to CPC concerning its condition, financial and otherwise, its management, its business, and its prospects relevant to the subject
matter of this Agreement, including the prospects for the NICAMs.

 

		6.5	CPC Acknowledgements 

 

CPC expressly acknowledges that:

 

		6.5.1	Third Parties may possess patent rights that may be infringed by the development and commercialization
of Product by CPC and that Aurinia makes no representation or warranty that the assignments and licenses granted hereunder will
be sufficient for the development and commercialization of Product by CPC.

 

		6.5.2	Aurinia has made no representations to CPC regarding feasibility of development
and/or commercialization of Product.

 

		6.5.3	Aurinia has made no representations to CPC that Third Parties previously contracted for service
with Aurinia will agree to contract for service with CPC.

 

		6.5.4	CPC and Robert Foster has greater knowledge of the NICAMs Program than Aurinia without the
                                                               knowledge of Robert Foster, and that the allocation of risk and limits of liability set out in this Agreement reflects the
                                                               potential compensation to be paid by CPC to Aurinia under this
Agreement and that Aurinia would not enter into this Agreement without the allocations of risk and limitations on its liability
set out in this Agreement.

 

     

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	6.6	Anti-Sandbagging

 

In no event shall Aurinia be liable for
any Losses resulting from a breach of a representations, warranty or covenant if CPC (or any director, officer or employee of CPC,
including for this purpose Robert Foster had knowledge at any time on or prior to the Effective Date of the facts, events or conditions
constituting or resulting in such breach of representation, warranty or covenant.

 

	6.7	NO OTHER WARRANTY

 

EXCEPT AS EXPRESSLY SET FORTH IN THIS Article 6, THE
SUBJECT ASSETS ARE BEING ACQUIRED ON AN “AS IS, WHERE IS” BASIS AND AURINIA MAKES NO REPRESENTATION OR WARRANTY
OF ANY KIND, EITHER EXPRESS OR IMPLIED, TO CPC, INCLUDING, WITHOUT LIMITATION, ANY EXPRESS OR IMPLIED WARRANTY WITH RESPECT
TO THE PRODUCT OR THE SUBJECT ASSETS. IN ADDITION TO BUT NOT IN LIMITATION OF THE FOREGOING, AURINIA SPECIFICALLY DISCLAIMS
(I) ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE PRODUCT, (II)
ANY EXPRESS OR IMPLIED WARRANTY REGARDING THE TITLE, VALIDITY OR ENFORCEABILITY OF ANY INTELLECTUAL PROPERTY RIGHT, AND (III)
ANY EXPRESS OR IMPLIED WARRANTY THAT THE DEVELOPMENT, MANUFACTURE, USE, DISTRIBUTION, MARKETING, PROMOTION OR SALE OF THE
PRODUCT BY OR ON BEHALF OF CPC WILL NOT INFRINGE ANY PATENT OR OTHER INTELLECTUAL PROPERTY RIGHT OF ANY THIRD PARTY.

 

	6.8	LIMITATION ON AURINIA’S LIABILITY

 

AURINIA’S TOTAL LIABILITY, WHETHER UNDER THE EXPRESS
OR IMPLIED TERMS OF THIS AGREEMENT, IN TORT (INCLUDING NEGLIGENCE) OR AT COMMON LAW, FOR ANY LOSS OR DAMAGE OF ANY KIND
WHATSOEVER SUFFERED BY CPC OR ANY CPC INDEMNIFIED PARTY, INCLUDING WITHOUT LIMITATION ANY DAMAGE THAT MAY ARISE OR DOES ARISE
FROM ANY BREACH OF THIS AGREEMENT OR ANY MISREPRESENTATION OR WARRANTY PROVIDED UNDER THIS AGREEMENT BY AURINIA IS LIMITED TO
ONE HUNDRED PERCENT (100%) OF THE PAYMENTS PREVIOUSLY RECEIVED BY AURINIA UNDER THIS AGREEMENT. IN ADDITION, IN NO EVENT WILL
AURINIA BE LIABLE TO CPC OR ANY CPC INDEMNIFIED PARTY FOR ANY INDIRECT, SPECIAL, EXEMPLARY, PUNITIVE, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, INCLUDING BUSINESS INTERRUPTION, LOST PROFITS, LOSS OF USE, DAMAGE TO GOODWILL, LOSS OF BUSINESS OR
ENHANCED DAMAGES.

 

     

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Article 7 Confidentiality

 

	7.1	Non-Disclosure and Use Restrictions

 

Except to the extent expressly authorized by this Agreement
or otherwise agreed in writing, the Parties agree that, for the term of this Agreement and for five (5) years thereafter, each
Party (the “Receiving Party”), receiving any Confidential Information of the other Party (the “Disclosing
Party”) hereunder shall keep such Confidential Information confidential and shall not publish or otherwise disclose or
use such Confidential Information for any purpose other than as provided for in this Agreement except for Confidential Information
that the Receiving Party can establish:

 

		7.1.1	was already known by the Receiving Party (other than under an obligation of confidentiality), at
the time of disclosure by the Disclosing Party and such Receiving Party has documentary evidence to that effect;

 

		7.1.2	was generally available to the public or otherwise part of the public domain
at the time of its disclosure to the Receiving Party;

 

		7.1.3	became generally available to the public or otherwise part of the public domain after its disclosure
or development, as the case may be, and other than through any act or omission of a Party in breach of this confidentiality obligation;

 

		7.1.4	was disclosed to that Party, other than under an obligation of confidentiality, by a Third Party
who had no obligation to the Disclosing Party not to disclose such information to others; or

 

		7.1.5	was independently discovered or developed by or on behalf of the Receiving
Party without the use of the Confidential Information belonging to the other Party and the Receiving Party has documentary evidence
to that effect.

 

		7.2	Public Filings 

 

Either Party may disclose the terms of this Agreement
to the extent required, in the reasonable opinion of such Party’s legal counsel, to comply with applicable laws. Notwithstanding
the foregoing, before disclosing this Agreement or any of the terms hereof pursuant to this Section 7.2, the Parties will consult
with one another on the terms of this Agreement to be redacted in making any such disclosure. If a Party discloses this Agreement
or any of the terms hereof in accordance with this Section 7.2, such Party agrees, at its own expense, to seek confidential treatment
of portions of this Agreement or such terms, as may be reasonably requested by the other Party.

 

		7.3	Public Statements

 

So long as this Agreement is in
effect, neither of the Parties hereto shall issue or cause the dissemination of any press release or other announcement with
respect to this Agreement or the transactions contemplated hereby without consulting with and obtaining the consent of the
other Party which consent shall not be unreasonably withheld; provided, however, that such consent shall not be required
where such release or announcement is required by Applicable Law or legal process.

 

     

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		7.4	Consequence of Transfer of the Subject Assets

 

After completion of the transfer of the Subject Assets referred
to in Section 2.4, the Subject Assets are deemed to be the Confidential Information of CPC.

 

Article 8 Indemnification, Release and Insurance

 

		8.1	General Indemnification By Aurinia

 

Except as set out in this Agreement, Aurinia shall indemnify
and hold harmless CPC and its Indemnified Parties (together, the “CPC Indemnified Parties”)from, against and
in respect of any and all Losses incurred or suffered by the CPC Indemnified Parties or any of them as a result of, arising out
of or directly or indirectly relating to:

 

		8.1.1	any breach or violation of any covenant or agreement of Aurinia in or pursuant
to this Agreement; or

 

		8.1.2	the Excluded Liabilities;

 

except, in each case, to the extent such Loss is one
for which CPC is indemnifying the Aurinia Indemnified Parties pursuant to Section 8.2.

 

		8.2	General Indemnification By CPC

 

CPC shall indemnify and hold harmless Aurinia and its
Indemnified Parties (together, the “Aurinia Indemnified Parties”), from, against and in respect of any and all
Losses incurred or suffered by the Aurinia Indemnified Parties or any of them as a result of, arising out of or directly or indirectly
relating to:

 

		8.2.1	any breach of, or inaccuracy in, any representation or warranty made by CPC
in this Agreement, or any breach or violation of any covenant or agreement of CPC in or pursuant to this Agreement;

 

		8.2.2	the gross negligence, intentional misconduct or violation of Applicable Law
by or of the CPC Indemnified Parties or any of them;

 

		8.2.3	the Assumed Liabilities, including products liability claims or actions incurred or suffered by
the Aurinia Indemnified Parties or any of them directly or indirectly relating to the development, manufacture or commercialization
of the Product in the Territory, whether before or after the Effective Date;

 

		8.2.4	any violation of Applicable Law by the CPC Indemnified Parties in the performance of CPC’s
obligations under this Agreement, including, with regard to CPC’s obligations pertaining to adverse event reporting and recalls
of the Product; or

 

     

    - 24 -

    

 

		8.2.5	any actual or alleged infringement of any trademarks, patent rights or other intellectual property
rights, or misappropriation of confidential information or trade secrets, of any Third Party existing or having a priority date
prior to the Effective Date in connection with the development, manufacture or commercialization of the Product in the Territory;

 

except, in each case, to the extent such Loss is one
for which Aurinia is indemnifying the CPC Indemnified Parties pursuant to Section 8.1.

 

		8.3	Procedure for Indemnification 

 

		8.3.1	Each Indemnified Party shall give prompt written notification to the person from whom indemnification is sought (the “Indemnifying
Party”) of the commencement of any action, suit or proceeding relating to a Third Party claim for which indemnification
may be sought or, if earlier, upon the assertion of any such claim by a Third Party (it being understood and agreed, however, that
the failure by an Indemnified Party to give notice of a Third Party claim as provided in this Section 8.3 shall not relieve the
Indemnifying Party of its indemnification obligation under this Agreement except and only to the extent that such Indemnifying
Party is actually prejudiced as a result of such failure to give notice).

 

		8.3.2	Within 30 days after delivery of such notification, the Indemnifying Party may, upon written notice
thereof to the Indemnified Party, assume control of the defense of such action, suit, proceeding or claim with counsel reasonably
satisfactory to the Indemnified Party. If the Indemnifying Party does not assume control of such defense, the Indemnified Party
shall control such defense.

 

		8.3.3	The Party not controlling such defense may participate therein.

 

		8.3.4	The Party controlling such defense shall keep the other Party advised of the status of such action,
suit, proceeding or claim and the defense thereof and shall consider in good faith recommendations made by the other Party with
respect thereto.

 

		8.3.5	The Indemnified Party shall not agree to any settlement of such action, suit, proceeding or claim
without the prior written consent of the Indemnifying Party, which shall not be unreasonably withheld. The Indemnifying Party shall
not agree to any settlement of such action, suit, proceeding or claim or consent to any judgment in respect thereof that does not
include a complete and unconditional release of the Indemnified Party from all liability with respect thereto or that imposes any
liability or obligation on the Indemnified Party without the prior written consent of the Indemnified Party.

 

     

    - 25 -

    

 

		8.4	Release

 

For valuable consideration, the receipt and adequacy
of which are hereby acknowledged, CPC, on behalf of itself and on behalf of each of the CPC Indemnified Parties, does hereby release
and forever discharge Aurinia and the Aurinia Indemnified Parties from any and all Losses which the CPC Indemnified Parties now
or may hereafter have against the Aurinia Indemnified Parties, or any of them, by reason of any matter, cause or thing whatsoever
that is based upon, arises out of, or relates to the use by Aurinia and the Aurinia Indemnified Parties of the Subject Assets except
any Losses under or in respect of this Agreement.

 

		8.5	Insurance

 

From the Effective Date and until at least five years after
the Effective Date:

 

		8.5.1	CPC shall procure and maintain insurance, including product liability insurance, adequate to cover
its obligations hereunder and which are consistent with normal business practices of prudent corporations similarly situated at
all times during which the Product is being clinically tested with human subjects or commercially distributed or sold.

 

		8.5.2	CPC shall provide Aurinia with written evidence of such insurance upon request. CPC shall provide
Aurinia with written notice at least thirty (30) days prior to the cancellation, non-renewal or material change in such insurance.

 

The Parties acknowledge and agree that such insurance
shall not be construed to create a limit of CPC’s liability with respect to its indemnification obligations under this Article
8.

 

Article 9 Miscellaneous

 

		9.1	Amendment

 

No amendment, modification or supplement of any provision
of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized officer of each Party.

 

		9.2	Assignment

 

CPC may assign this Agreement and the Subject Assets only
with the prior written approval of Aurinia, except that CPC may assign same without the approval of Aurinia as part of a
Liquidity Event upon receipt by Aurinia of the milestone payment payable upon the occurrence of such Liquidity Event. After
CPC has paid to Aurinia the milestone payment payable upon the occurrence of a Liquidity Event, CPC may assign this Agreement
to an Affiliate or to a successor in interest or transferee of all or substantially all of CPC’s business with the
prior written approval of Aurinia (which consent shall not be unreasonably withheld). This Agreement shall be binding upon
the successors and permitted assigns of the Parties and the name of a Party appearing herein shall be deemed to include the
names of such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this
Agreement. CPC shall not assign any of the Patent Rights, Assumed Contracts or any material part of the Product Related
Assets or the Regulatory Assets unless the assignee has first agreed with Aurinia to be bound by the terms of this Agreement
as if such assignee were CPC hereunder.

 

     

    - 26 -

    

 

		9.3	Counterparts

 

This Agreement may be executed
in any number of counterparts, each of which need not contain the signature of more than one Party but all such counterparts taken
together shall constitute one and the same agreement.

 

		9.4	Descriptive Headings

 

The descriptive headings of this Agreement are for convenience
only, and shall be of no force or effect in construing or interpreting any of the provisions of this Agreement.

 

		9.5	Entire Agreement of the Parties

 

This Agreement constitutes and contains the complete,
final and exclusive understanding and agreement of the Parties as to the subject matter hereof and cancels and supersedes any and
all prior negotiations, correspondence, understandings and agreements, whether oral or written, among the Parties respecting the
subject matter hereof.

 

		9.6	Expenses

 

Except as expressly set out in this Agreement, each
Party will be responsible paying for its own expenses incurred in connection with this Agreement and its negotiation.

 

		9.7	Further Actions

 

Each Party agrees to execute, acknowledge and deliver
such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes
and intent of this Agreement.

 

		9.8	Governing Law; Dispute Resolution

 

This Agreement shall be governed by and interpreted in accordance
with the substantive laws of the Province of British Columbia, without regard to conflict of law principles thereof. The Parties
recognize that a bona fide dispute as to certain matters may from time to time arise during the term of this Agreement. In the
event of the occurrence of such a dispute either Party may, by written notice to the other Party, have such dispute referred to
their respective officers (designated below) or their successors or designees for attempted resolution by good faith negotiations
within ten (10) calendar days after such notice is received. Said designated officers are as follows:

 

	For Aurinia:	President & CEO
	 	 
	For CPC:	President & CEO

 

     

    - 27 -

    

 

In the event the designated officers are not able to
resolve such dispute through good faith negotiations within such ten (10) calendar day period, either Party may refer the matter
to and finally resolved by arbitration under the Rules of the International Chamber of Commerce (ICC). The Arbitration shall be
in English, using three (3) independent arbitrators. Each Party shall select one independent arbitrator within forty-five (45)
days of the arbitration request, and the two (2) arbitrators selected by the Parties shall select the third independent arbitrator
within ninety (90) days after the arbitration request. The place of arbitration shall be Vancouver, British Columbia, Canada. Notwithstanding
the foregoing, each Party may bring an action for injunctive relief arising out of any claim or disputes arising out of or in connection
with all actions and proceedings relating to infringement of patents and non-disclosure, non-use and maintenance of Confidential
Information in any court of competent jurisdiction.

 

		9.9	Independent Contractors

 

Both Parties are independent contractors under this
Agreement. Nothing herein contained shall be deemed to create an employment, agency, joint venture or partnership relationship
between the Parties hereto or any of their agents or employees, or any other legal arrangement that would impose liability upon
one Party for the act or failure to act of the other Party. Neither Party shall have any express or implied power to enter into
any contracts or commitments or to incur any liabilities in the name of, or on behalf of, the other Party, or to bind the other
Party in any respect whatsoever.

 

		9.10	No Trademark Rights

 

No right express or implied is granted by this Agreement for
CPC to use in any manner the name “Aurinia”“ or any other tradename or trademark of Aurinia in connection with
the performance of this Agreement. No right express or implied is granted by this Agreement for Aurinia to use in any manner the
name “CPC” or any other tradename or trademark of CPC in connection with the performance of this Agreement.

 

		9.11	Notices

 

All notices and other communications hereunder (including,
without limitation, any notice of breach, termination, change of address, etc.) shall be in writing and shall be deemed given if
delivered personally or by facsimile transmission (receipt verified), mailed by registered or certified mail (return receipt requested),
postage prepaid, or sent by nationally recognized express courier service, to the Parties at the following addresses (or at such
other address for a Party as shall be specified by like notice, provided, however, that notices of a change of address shall be
effective only upon receipt thereof):

 

All correspondence to Aurinia shall be addressed as follows:

 

Aurinia Pharmaceuticals Inc.

#1203 - 4464 Markham Street

Victoria, BC V8Z 7X8 Canada

Attention: President

 

     

    - 28 -

    

 

With a copy to:

 

Farris, Vaughan, Wills & Murphy LLP

25th Floor, 700 West
Georgia St

Vancouver, B.C. V7Y 1B3

F: (604) 661-9349

Attention: James P. Hatton, Q.C.

 

All correspondence to CPC shall be addressed as follows:

 

Ciclofilin Pharmaceuticals Corp.

34 Westbrook Drive

Edmonton, Alberta T6J 2C9 Canada

Attn: President

 

All correspondence to CPI shall be addressed as follows:

 

Ciclofilin Pharmaceuticals Inc.

3525 Del Mar Heights Road Suite 427

San Diego, CA, USA 92130

Attention: President

 

		9.12	Representation by Legal Counsel

 

Each Party hereto represents that it has been represented
by legal counsel in connection with this Agreement and acknowledges that it has participated in the drafting hereof. In interpreting
and applying the terms and provisions of this Agreement, the Parties agree that no presumption shall exist or be implied against
the Party which drafted such terms and provisions.

 

		9.13	Severability

 

If any clause or portion thereof in this Agreement is for any
reason held to be invalid, illegal or unenforceable, the same shall not affect any other portion of this Agreement, as it is the
intent of the Parties that this Agreement shall be construed in such fashion as to maintain its existence, validity and enforceability
to the greatest extent possible. In any such event, this Agreement shall be construed as if such clause of portion thereof had
never been contained in this Agreement, and there shall be deemed substituted therefor such provision as will most nearly carry
out the intent of the Parties as expressed in this Agreement to the fullest extent permitted by Applicable Law.

 

		9.14	Waiver

 

No provision of the Agreement shall be waived by any
act, omission or knowledge of a Party or its agents or employees except by an instrument in writing expressly waiving such provision
and signed by a duly authorized officer of the waiving Party. The waiver by either of the Parties of any breach of any provision
hereof by the other Party shall not be construed to be a waiver of any succeeding breach of such provision or a waiver of the provision
itself.

 

     

    - 29 -

    

 

 

IN WITNESS WHEREOF, duly authorized representatives
of the Parties have duly executed this Agreement to be effective as of the Effective Date.

 

	CICLOFILIN PHARMACEUTICALS CORP.	 	AURINIA PHARMACEUTICALS INC.
	 	 	 
	By:	/s/ Robert T. Foster	 	By:	/s/ Michael R. Martin
	Name:	Robert T. Foster	 	Name:	Michael R. Martin
	Title:	CEO	 	Title:	Chief Operating Officer

 

CICLOFILIN PHARMACEUTICALS INC.

 

	By:	/s/ Robert T. Foster	 	 
	Name:	Robert T. Foster	 	 
	Title:	CEO	 	 

 

     

    - 30 -

    

 

Exhibit 1.1.5: Assumed Contracts

 

agreements for the storage of NICAMS research materials

 

NRC-IRAP Isotechnika Pharma Inc. Contribution
Agreement (Project 814534) of September 16, 2013

 

NIAID Non-Clinical Evaluation Agreement
between National Institute of Allergy and Infectious Diseases, an institute of the National Institutes of Health, and Isotechnika
Pharma Inc. of August 1, 2012

 

    

     

    

 

Exhibit 1.1.40(a): Know How

 

IRAP PROJECT # 725948 - Evaluation of Non-immunosuppressive
Cyclosporin Analogues for Treatment of Chronic Neurological Disorders

 

IRAP PROJECT # 809613 - Preclinical Development of NICAM 440-02
as an Anti-viral Agent for the Treatment of Hepatitis C Virus

 

IRAP PROJECT # 796811 - The Identification and Evaluation
of Proprietary NICAMs as Inhibitors of Viral Replication in Infectious Disease

 

IRAP PROJECT # 788856 - NICAM Cyclosporine Analogues
for Treatment of Ischemia Reperfusion Disorders

 

    

     

    

 

Exhibit 1.1.38: Patents and Patents Pending

 

	Docket

    Number	 	Country	 	Status	 	Client\Division	 	Application Number	 	Application

    Date	 	Patent

    Number	 	Grant

    Date	 	Title	 
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

     

    - 2 -

    

 

	Docket

    Number	 	Country	 	Status	 	Client\Division	 	Application Number	 	Application

    Date	 	Patent

    Number	 	Grant

    Date	 	Title	 
	 	 	*	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

    

     

    

 

Exhibit 3.2: Excluded Liabilities

 

(i) Fees due and owing as of the Effective
Date under the Assumed Contracts; and (ii) accounts for legal or patent agent fees associated with the Patent Rights portfolio
for work performed on or before the Effective Date; the cumulative total of which shall not exceed $140,000

 

     

     

    

 

Exhibit 5.11: Guarantee

 

     

     

    

 

Guarantee

 

THIS GUARANTEE (the “Guarantee”)
is made and entered into effective as of February 14, 2014 (the “Execution Date”), effective as of the Effective
Date, by and between Aurinia Pharmaceuticals Inc., a Canadian corporation with an office at #1203 - 4464 Markham Street, Victoria,
BC V8Z 7X8 Canada (“Aurinia”) and Ciclofilin Pharmaceuticals Inc., a California corporation with an address
at 3525 Del Mar Heights Road, Suite 427, San Diego, CA, USA 92130 (“CPI”). Each of CPI and Aurinia is sometimes
referred to individually herein as a “Party” and collectively as the “Parties”.

 

Recitals

 

WHEREAS, CPI, Ciclofilin
Pharmaceuticals Corp., an Alberta corporation with an address at 34 Westbrook Drive, Edmonton, Alberta T6J 2C9 Canada
(“CPC”) and Aurinia have entered into as of the Execution Date a separate NICAMs Purchase and Sale
Agreement (the “Assignment Agreement”); and

 

WHEREAS, CPI is the sole legal and beneficial
shareholder of CPC and owns all of the outstanding shares of CPC;

 

WHEREAS, under the terms of the Assignment Agreement,
CPI has agreed to cause CPC to perform certain payment obligations thereunder and to execute and deliver a guarantee in favor of
Aurinia;

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Parties agree as follows:

 

Article 1 Definitions

 

The terms in this Guarantee with initial letters capitalized,
whether used in the singular or plural, shall have the meanings set forth in this Article 1 or elsewhere in this Guarantee, or
if not otherwise defined in this Guarantee, shall have the meanings set forth in the Assignment Agreement.

 

1.1          “Guaranteed
Obligations”

 

For the purposes of this Guarantee, the term Guaranteed
Obligations shall mean any and all payment obligations due by CPC to Aurinia under Article 4 and Article 5 of the Assignment Agreement
as amended or replaced from time to time, whether direct or indirect, present or future, absolute or contingent, express or implied,
and whether performance of such payment obligations of CPC under the Assignment Agreement may be or hereafter become barred by
any statute of limitations or law of prescription or may be or hereafter become otherwise irrevocable or unenforceable.

 

 

     

    2

    

 

Article 2 Guarantee

 

2.1          Guarantee

 

CPI hereby unconditionally, absolutely and irrevocably guarantees,
and covenants to Aurinia the full and punctual performance, observance, satisfaction, and payment when due, of any and all of the
Guaranteed Obligations. If any default shall be made in the due performance, observance, satisfaction and payment of any of the
Guaranteed Obligations, CPI covenants and agrees with Aurinia to perform, observe, satisfy and pay to Aurinia forthwith any and
all of the Guaranteed Obligations in respect of which such default will have occurred and all damages that may arise in consequence
thereof and the reasonable costs and expenses of collection or of otherwise enforcing any of the rights of Aurinia under this Guarantee
(including reasonable legal fees and disbursements).

 

2.2          Nature
of Guarantee

 

CPI covenants and agrees with Aurinia that:

 

		(a)	the obligations and liabilities of CPI hereunder shall be absolute, unconditional and irrevocable,
shall not be subject to any counterclaim, set off, deduction or defense based upon any claim CPI may have against CPC, Aurinia
or any other person, whether in connection with this Guarantee or any other transaction, and until there has been full and punctual
performance, observance, satisfaction and payment of all of the Guaranteed Obligations, the rights of Aurinia and the obligations
of CPI under this Guarantee shall remain in full force and effect without regard to, and shall not be released, discharged or in
any way affected or impaired by, any occurrence, matter, circumstance or condition whatsoever (whether or not CPI has any knowledge
or notice thereof or has consented thereto), and without limiting the generality of the foregoing, 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:

 

		(i)	the dissolution, winding-up or other cessation of existence of CPC or CPI or the institution of any proceeding relating
                                                             thereto, any continuance or reorganization or any change in the business, capital structure, directorate, management,
                                                             members, name, objects, organization, partners, powers or shareholders of CPC or CPI, the amalgamation of CPC or CPI with
                                                             another corporation, the sale or disposal of or appointment of a custodian, liquidator, receiver or trustee in respect of the
                                                             assets or undertaking, in whole or in part, of CPC or CPI, any distribution of the assets, in whole or in part, of CPC or CPI
                                                             upon any arrangement, bankruptcy, composition, insolvency, liquidation, readjustment, receivership, reorganization or other
                                                             similar proceeding or occurrence relating to CPC or CPI, any assignment by CPC or CPI for the benefit of creditors, any other
                                                             marshalling of any of the assets of CPC or CPI or any other act or event which would constitute a novation of any obligation
                                                             or liability of CPC in respect of any of the Guaranteed Obligations whether by substitution
of the obligations or liabilities of any other person in place of those of CPC or otherwise;

 

     

    3

    

 

		(ii)	any obligation or liability of CPC, whether in respect of any of the Guaranteed Obligations or otherwise,
of CPI, whether under this Guarantee or otherwise, or of any other person who is or may become liable in respect of any of the
Guaranteed Obligations, or any agreement or instrument evidencing any such obligation or liability, heretofore, now or hereafter
being invalid, illegal or unenforceable;

 

		(iii)	any issue or levy by any administrative, governmental, judicial or other authority or arbitrator of any award, execution, injunction,
judgment, order, warrant of attachment, writ or similar process against CPC, whether in respect of any of the Guaranteed Obligations
or otherwise, or against CPI, whether in respect of any of its obligations or liabilities under this Guarantee or otherwise, or
against any other person who is or may become liable in respect of any of the Guaranteed Obligations;

 

		(iv)	any activity, conduct, matter or thing authorized by CPI under Section 2.3
below;

 

		(v)	any extension of time for compliance with or payment of any of the Guaranteed
Obligations;

 

		(vi)	any waiver, consent, extension, granting of time, forbearance, indulgence, renewal or other action
or inaction under or in respect of the Assignment Agreement or any of the Guaranteed Obligations, or any exercise or non-exercise
of any right, remedy or power in respect thereof;

 

		(vii)	any informality or irregularity in, omission from, invalidity of, unenforceability of or other defect
in the Assignment Agreement or any of the Guaranteed Obligations or any other agreement or instrument, or any misrepresentation
by CPC under the Assignment Agreement or any other agreement or instrument;

 

		(viii)	any lack or limitation of capacity, status, power or authority, or any incapacity or disability, of CPC or CPI or Aurinia or
any of their respective directors, officers, employees, trustees, partners or agents acting or purporting to act on their behalf,
and any defect or any failure to comply with a formal legal requirement in the execution or delivery of the Assignment Agreement
or any document;

 

		(ix)	any action or other proceeding brought by any beneficiaries or creditors of, or by, CPC or any
other person for any reason whatsoever, including without limitation any action or proceeding in any way attacking or involving
any issue in respect of the Assignment Agreement, any of the Guaranteed Obligations, or any other agreement or instrument; or

 

     

    4

    

 

		(x)	any occurrence or non-occurrence of any other act or event which, by operation of law or equity
or otherwise, would directly or indirectly now or hereafter result in the determination, discharge, extinction, limitation, merger,
novation, reduction or release, pro tanto or otherwise, of CPI or of any of its obligations or liabilities hereunder or which would
otherwise prejudice or impair any right of Aurinia hereunder;

 

		(b)	the obligations and liabilities of CPI hereunder shall constitute obligations and liabilities of
payment and not of collection and shall be absolute and independent of and not in consideration of or conditional or contingent
upon any other obligation or liability of CPI, any obligation or liability of CPC, whether in respect of any of the Guaranteed
Obligations or otherwise, or any obligation or liability of any other person who is or may become liable in respect of any of the
Guaranteed Obligations, or any prior notice or protest to, demand upon or action, suit or other proceeding against CPC or any such
other person, and Aurinia may bring or prosecute a separate action, suit or other proceeding against CPI whether such action, suit
or other proceeding is brought or prosecuted against CPC or any such other person or whether CPC or any such other person (including
Aurinia) is joined in such action, suit or other proceeding; and

 

		(c)	any part performance or part payment by CPC of any of the Guaranteed Obligations or other circumstance
which operates to toll any statute of limitations or law of prescription as to CPC shall operate to toll such statute of limitations
or law of prescription as to CPI.

 

2.3          Authorizations

 

CPI authorizes Aurinia, at the sole discretion of Aurinia,
without notice to or demand upon CPI, and without in any manner, releasing, discharging, or in any way affecting any obligation
or liability of CPI hereunder or prejudicing or impairing any right of Aurinia hereunder, from time to time to:

 

		(a)	accelerate, adjust, compromise, extend, modify, renew or otherwise change the time, form or manner
for performance of or any term in respect of any of the Guaranteed Obligations;

 

		(b)	compromise, release or settle with or substitute or delay or waive the exercise
of any right or remedy against CPC, CPI or any other person who is or may become liable in respect of any of the Guaranteed Obligations;

 

		(c)	grant any other indulgence to CPC, CPI or any other person who is or may become liable in respect of any of the Guaranteed
Obligations and compound with all or any of such persons as Aurinia shall see fit; and

 

		(d)	otherwise deal with CPC, CPI or any other person who is or may become liable
in respect of any of the Guaranteed Obligations, as Aurinia may deem appropriate or desirable.

 

     

    5

    

 

2.4          Waivers

 

CPI unconditionally waives:

 

		(a)	any right to receive from Aurinia any communication whatsoever with respect to any of the Guaranteed
Obligations or any obligation or liability of CPI, whether under this Guarantee or otherwise, or of any other person who is or
may become liable in respect of any of the Guaranteed Obligations, including, without limitation:

 

		(i)	any notice of the creation, existence or incurring, now or hereafter, of any Guaranteed Obligations, the acceptance by Aurinia
of or the intention of Aurinia to act on or in reliance on any obligation or liability of CPI, whether under this Guarantee or
otherwise, or of any other person who is or may become liable in respect of any of the Guaranteed Obligations, or any default by
or non-performance or non-observance of any obligation of CPC, CPI or any such other person; or

 

		(ii)	any communication of any information known by Aurinia relating to the financial
condition of CPC or to any other circumstance bearing upon the risk of non-performance of any of the Guaranteed Obligations.

 

		(b)	any right to require Aurinia to:

 

		(i)	proceed against CPC, CPI or any other person who is or may become liable in
respect of any of the Guaranteed Obligations;

 

		(ii)	first apply any property or assets of CPC or any other person who is or may become liable in respect
of any of the Guaranteed Obligations to the discharge of the Guaranteed Obligations or marshal in favor of CPI; or

 

		(iii)	pursue or exercise or exhaust any other right or remedy of Aurinia whatsoever
before proceeding against and enforcing its rights and remedies against CPI under this Guarantee;

 

		(c)	so long as any of the Guaranteed Obligations shall remain unperformed, unsatisfied or unpaid, including
such part thereof, if any, as shall exceed the liability of CPI hereunder, any right to claim repayment against CPC or to exercise
any right of subrogation to or any right to enforce any right or remedy which Aurinia now has or hereafter may have against or
in respect of CPC, any other person who is or may become liable in respect of any of the Guaranteed Obligations;

 

		(d)	any defense arising out of or in connection with:

 

		(i)	any absence, impairment or loss of any right of contribution, reimbursement or subrogation or any
other right or remedy of CPI against or in respect of CPC, any other person who is or
may become liable in respect of any of the Guaranteed Obligations;

 

     

    6

    

 

		(ii)	any disability, incapacity, or defense available to CPC (other than a defense available to CPC under
the terms of the Assignment Agreement) or any other person who is or may become liable in respect of any of the Guaranteed Obligations
or any cessation from any cause whatsoever of any obligation or liability of CPC or any such other person in respect of any of
the Guaranteed Obligations; or

 

		(iii)	any other circumstance which might otherwise constitute a defense to any action,
suit or other proceeding against CPI, whether on this Guarantee or otherwise; and

 

		(e)	any benefit of any statute of limitations or law of prescription affecting any obligation or liability
of CPI, whether under this Guarantee or otherwise, or the enforcement thereof to the fullest extent permitted by law.

 

2.5          Bankruptcy,
etc.

 

In the event of any distribution of the assets, in
whole or in part, of CPC, CPI or any other person who is or may become liable in respect of any of the Guaranteed Obligations,
upon any arrangement, bankruptcy, composition, execution sale, insolvency, liquidation, readjustment, receivership, reorganization
or other similar proceeding or occurrence relating to any such person, any proceeding for the dissolution, liquidation, winding-up
or other cessation of existence of any such person, voluntary or involuntary, whether or not involving bankruptcy or insolvency
proceedings, any assignment by any such person for the benefit of creditors or any other marshalling of any of the assets of any
such person:

 

		(a)	no obligation or liability of CPI hereunder shall be determined or in any manner affected and no
right of Aurinia hereunder shall in any manner be prejudiced or impaired by any omission by Aurinia to prove its claim or to prove
its full claim and Aurinia may prove such claim as it sees fit and may refrain from proving any claim and may value as it sees
fit or refrain from valuing any security held by Aurinia; and

 

		(b)	so long as any of the Guaranteed Obligations shall remain unperformed or unpaid, including such part thereof, if any, as shall
exceed the liability of CPI hereunder, Aurinia shall have the right to include in any claim made by them the amount of all sums
paid by CPI, whether under this Guarantee or otherwise, and to prove and rank for and receive dividends in respect to such claim,
any and all right to prove and rank for such sums paid by CPI and to receive the full amount of all dividends in respect thereof
being hereby assigned and transferred by CPC.

 

 

     

    7

    

 

2.6          Continuing
Guarantee

 

The obligations of CPI under this Guarantee constitute
a continuing guarantee and shall remain in full force and effect until all the Guaranteed Obligations have been Mly performed,
observed, satisfied and paid. No recovery under this Guarantee, and no action or proceeding brought or instituted under this Guarantee,
and no recovery in pursuance of such action or proceeding, shall be a bar or defense to any further action or proceeding under
this Guarantee or to any ftirther recovery.

 

2.7           Security
for Payments

 

CPI shall cooperate with Aurinia
to secure Aurinia’s right to the payments referred to in Sections 4.1, 4.2, 4.5 and 4.6 of the Assignment Agreement,
including the granting of a pledge and hypothecation of CPI’s interest in CPC, the granting of a security interest in any
dividends, distributions or other payments to be paid or made to CPI from CPC, the granting of a security interest in the proceeds
of any Liquidity Event and assigning to Aurinia the right to receive the payments calculated on the proceeds of any Liquidity Event
directly from the party making such payment. The amount of such security is not to exceed the cumulative total of expected payments
to Aurinia of $7.9 million.

 

Article 3 General Provisions

 

 3.1          Time of the EssenceTime is of the essence of this Guarantee.

 

 3.2          Incorporation of TermsThe terms of Article 9, Miscellaneous, of the Assignment Agreement are hereby incorporated into this Guarantee and constitute a part hereof.

 

IN WITNESS WHEREOF, CPI, intending to be bound
hereby, has executed this Guarantee by its duly authorized representatives as of the Execution Date.

 

Ciclofilin Pharmaceuticals Inc.

 

	By:	/s/ ROBERT T. FOSTER	 

 

	Name:  	ROBERT T. FOSTER	 

 

	Title:	CEOExhibit 10.9 

 

[*] Certain information in this document has been omitted from
this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

 

AMENDMENT NO.
1 TO NICAMS PURCHASE AND SALE AGREEMENT

 

May 26, 2016

 

THIS
AMENDMENT NO. 1 (this “Amendment”)
to the NCIAMs Purchase and Sale Agreement, is made and entered into as of May 26, 2016, by and between Aurinia Pharmaceuticals
Inc., a Canadian corporation (“Aurinia”), Ciclofilin Pharmaceuticals Corp., an Alberta corporation (“CPC”),
and Ciclofilin Pharmaceuticals, Inc., a Delaware corporation as successor in interest to Ciclofilin Pharmaceuticals Inc., a California
corporation (“CPI”). Aurinia, CPI and CPC may each be referred to herein individually as a “Party”
and collectively as the “Parties”.

 

WHEREAS
, CPI is contemplating entering into an Agreement and Plan of Merger (the “Merger Agreement”)
with ContraVir Pharmaceuticals, Inc., a Delaware corporation (“ContraVir”), Ciclofilin Acquisition Corp.,
a Delaware corporation (“Merger Sub”) and a wholly-owned subsidiary of ContraVir, and Robert Foster,
Pharm.D., Ph.D., solely in his capacity as the representative of CPI’s stockholders;

 

WHEREAS,
pursuant to the Merger Agreement, Merger Sub will be merged with and into CPI with CPI surviving as the surviving corporation
(the “Merger”) on the terms of the Merger Agreement as provided to Aurinia on or before the date of
this Agreement;

 

WHEREAS,
in connection with the Merger and the transactions contemplated thereby, the Parties desire to amend that certain NCIAMs Purchase
and Sale Agreement, dated February 14, 2014 (the “Purchase Agreement”) as set forth below;

 

WHEREAS
, as of the date hereof, Aurinia, CPI and ContraVir are entering into a Consent and Acknowledgement Agreement, whereby,
among other things, ContraVir agrees to make payments under the Purchase Agreement directly to Aurinia;

 

WHEREAS,
capitalized terms not defined herein shall have the meanings ascribed to them in the Purchase Agreement; and

 

WHEREAS,
the Purchase Agreement may be amended with the written consent of Aurinia, CPC and CPI.

 

NOW,
THEREFORE, in consideration of the mutual execution hereof and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

1.       AMENDMENTS
TO PURCHASE AGREEMENT. The Purchase Agreement
shall be amended as follows:

 

		(a)	Section 4.1 is hereby amended
                                         and restated in its entirety to read as follows:

 

		4.1	Near-Term Milestone Payments
                                         

 

		4.1.1	CPC will pay the milestone payments
                                         set forth in the table below within thirty (30) days of the first achievement of each
                                         of the following events:

 

	Event	 	Milestone
    Payment	 
	Upon
    receipt of Phase I Positive Data from a Phase I trial, where “Phase I Positive Data” shall mean that the
    trial shall have demonstrated sufficient safety and tolerability in healthy subjects to support a Phase II clinical trial.	 	$	450,000	 
	Upon dosing of first patient in
    a Phase III clinical trial, regardless of Indication	 	$		*
	Total Milestones	 	$		*

 

     

     

    

 

2.      
CONSENT TO MERGER. Pursuant to Section 9.2
of the Purchase Agreement, Aurinia hereby consents to the Merger.

 

3.      
EFFECTIVENESS OF AMENDMENT. Notwithstanding
anything to the contrary, this Amendment shall automatically be canceled and shall have no effect if the Merger is not completed
prior to September 1, 2016.

 

4.       OTHER
AGREEMENTS. 

 

(a)               
Delivery of Merger Agreement. CPI agrees to deliver an unredacted copy of the executed Merger Agreement within
10 days of the closing of the Merger.

 

(b)              
Liquidity Event. The Parties agree that the Merger qualifies as a Liquidity Event under the Purchase Agreement.
No upfront payments or proceeds shall be due to Aurinia under Sections 4.6 or 9.2 of the Purchase Agreement arising
from the payments from ContraVir to CPI under Section 1.4(b) of the Merger Agreement. The Liquidity Event milestones shall be
paid if and when any CPI stockholders are paid pursuant to the Merger Agreement.

 

5.       
NO OTHER AMENDMENT.
Except for the matters set forth in this Amendment, all other terms of the Purchase Agreement shall remain unchanged and in full
force and effect.

 

6.       GOVERNING
LAW. This Amendment shall be governed by and interpreted in accordance with the
substantive laws of the Province of British Columbia, without regard to conflict of law principles thereof.

 

7.      
COUNTERPARTS. This Amendment may be executed in one or more counterparts, each
of which will be deemed an original but all of which together shall constitute one and the same instrument. Counterparts executed
via facsimile or in electronic format (.pdf) shall be deemed to be original signatures hereunder.

 

[Remainder of
page intentionally left blank.]

 

     

     

    

 

IN WITNESS WHEREOF, the undersigned
have executed this Amendment as of the date first written above.

 

	 	CICLOFILIN
    PHARMACEUTICALS CORP.
	 	 
	 	By:	/s/
    ROBERT T. FOSTER          

	 	Name:	ROBERT T. FOSTER
	 	Title:	CEO

 

	 	CICLOFILIN PHARMACEUTICALS, INC.
	 	 
	 	By:	/s/
    ROBERT T. FOSTER            

	 	Name:	 ROBERT
    T. FOSTER
	 	Title:	CEO

 

	 	AURINIA PHARMACEUTICALS INC.
	 	 
	 	By:	/s/ Charles A. Rowland

	 	Name:	Charles A. Rowland
	 	Title:	CEO

 

[Signature
Page]

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