Document:

Exhibit 4.17

 

CERTAIN INFORMATION (INDICATED BY [***])
HAS BEEN EXCLUDED FROM THE VERSION OF THIS DOCUMENT FILED AS AN EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND THE TYPE OF INFORMATION
THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

 

PATENT
RIGHTS PURCHASE AGREEMENT

 

THIS
PATENT RIGHTS PURCHASE AGREEMENT (“Agreement”) is made and entered into effective as of May 26, 2014 (the “Effective
Date”):

 

BETWEEN:

 

DR.
RICHARD JOHNSON, having an address, at:

 

***

 

(“Johnson”)

 

DR.
TAKAHIKO NAKAGAWA, having an address at

 

***

 

(“Nakagawa”,
and collectively, with Johnson, the “Vendors”)

 

AND:

 

XORTX
PHARMA CORP., having a place of business at ***

 

(the
“Purchaser”)

 

(each
a “Party,” or collectively as the “Parties”)

 

WHEREAS:

 

		A.	The
                                         Vendors have an ownership interest in certain patent and patent applications covering
                                         certain inventions relating to the treatment of cardiovascular diseases; and

 

		B.	The
                                         Purchaser wishes to purchase such patent and patent applications from the Vendors on
                                         the terms and conditions contained in this Agreement.

 

NOW
THEREFORE, in consideration of the premises and the mutual covenants, terms, conditions and agreements contained herein, and
other good and valuable consideration, the sufficiency of which are hereby acknowledged by the Parties, the Parties agree as follows.

 

ARTICLE
1 INTERPRETATION

 

1.1          
Definitions 

 

In
this Agreement, unless something in the subject matter or context is inconsistent therewith:

 

“Abandoned
Patents” means the abandoned, lapsed, expired, withdrawn, or dead Patents as listed in Schedule A attached hereto.

 

     

     

    

“Affiliate”
of a Party means any other entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with such first Party. For purposes of this definition only, “control” and, with con-elative
meanings, the terms “controlled by” and “under common control with” will mean the possession, directly
or indirectly, of the power to direct the management or policies of an entity, whether through the ownership of voting securities
or by contract relating to voting rights or corporate governance.

 

“Applicable
Law” means the applicable laws, rules, and regulations, including any rules, regulations, guidelines, or other requirements
of the Regulatory Authorities that may be in effect from time to time.

 

“Business
Day” means any day, other than Saturday, Sunday or any statutory holiday in Canada or the United States of America.

 

“Calendar
Year” means each successive period of twelve (12) months commencing on January 1 and ending on December 31.

 

“Calendar
Quarter” means each three (3) month period commencing January 1, April 1, July 1 and October 1 of each Calendar Year.

 

“Claims”
means all losses, damages, fines, penalties, expenses, liabilities (whether accrued, actual, contingent, latent or otherwise),
claims and demands of whatever nature or kind including all legal fees and costs on a solicitor and client basis.

 

“Commercialize”
means to Use and otherwise exploit worldwide in any manner whatsoever and grant sublicenses (and permit the granting of sublicenses)
in accordance with Section 2.2 to do any or all of the foregoing.

 

“Combination
Product” means the Products which are sold in combination with a Third Party product or service.

 

“Confidential
Information” means all information and know-how and any tangible embodiments thereof provided by or on behalf of one
Party to the other Party either in connection with the discussions and, negotiations pertaining to this Agreement or in the course
of performing this Agreement, which may include data; knowledge; practices; processes; ideas; research plans; engineering designs
and drawings; research data; manufacturing processes and techniques; scientific, manufacturing, marketing and business plans;
and financial and personnel matters relating to the disclosing Party or to its present or future products, sales, suppliers, customers,
employees, investors or business. For clarity, the Patent Rights (to the extent they are not publicly available) are the Confidential
Information of the Purchaser.

 

Notwithstanding
the foregoing, information or know-how of a Party will not be deemed Confidential Information of such Party for purposes of this
Agreement if such information or know-how:

 

		(a)	was
                                         already known to the receiving Party, other than under an obligation of confidentiality
                                         or non-use, at the time of disclosure to such receiving Party;

 

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		(b)	was
                                         generally available or known to parties reasonably skilled in the field to which such
                                         information or know-how pertains, or was otherwise part of the public domain, at the
                                         time of its disclosure to such receiving Party;

 

		(c)	became
                                         generally available or known to parties reasonably skilled in the field to which such
                                         information or know-how pertains, or otherwise became part of the public domain, after
                                         its disclosure to such receiving Party through no fault of the receiving Party;

 

		(d)	was
                                         disclosed to such receiving Party, other than under an obligation of confidentiality
                                         or non-use, by a Third Party who had no obligation to the disclosing Party not to disclose
                                         such information or know-how to others; or

 

		(e)	was
                                         independently discovered or developed by such receiving Party, as evidenced by their
                                         written records, without the use of Confidential Information belonging to the disclosing
                                         Party and prior to any subsequent disclosure by the receiving Party.

 

“Control”
means, with respect to any Patent or other Intellectual Property Right, possession of the right (whether by ownership, license
or otherwise), to assign, or grant a license, sublicense or other right to or under, such Patent or right as provided for herein
without violating the terms of any agreement or other arrangement with any Third Party or incurring any additional financial or
other obligation to a Third Party.

 

“Covered”
means, with respect to a Patent Rights, that, but for a license granted by the Purchaser under a Valid Claim included in such
Patent Rights, the practice of the subject matter claimed in such Patent Rights would infringe such Valid Claim.

 

“Effective
Sale Date” means the date the Vendors secure the NIH Waiver.

 

“Encumbrances”
means pledges, liens, charges, security interests, leases, title retention agreements, mortgages, restrictions, development or
similar agreements, easements, rights-of-way, title defects, options or adverse claims or encumbrances of any kind or character
whatsoever.

 

“Executory”
as used in relation to Vendors’ rights in Patent Rights means the Vendors, as inventors of Patent Rights, have requested
for and are awaiting assignment of the Patent Rights from the NIH per NIH policies and procedures.

 

“First
Commercial Sale” means, with respect to a Product, the first bona fide sale of such Product to a Third Party by or on
behalf of the Purchaser, its Affiliates or licensees in a country after Regulatory Approval has been achieved for such Product
in such country. For greater certainty, sales for test marketing, sampling and promotional uses, clinical trial purposes or compassionate
or similar use will not be considered to constitute a First Commercial Sale.

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“Intellectual
Property Rights” mean any and all proprietary rights provided under (a) patent law, (h) copyright law, (c) trade-mark
law, (d) design patent or industrial design law, (e) semi-conductor chip or mask work law, or (0 any other applicable statutory
provision or common law principle, including trade secret law, that may provide a right in ideas, formulae, algorithms, concepts,
inventions, or know-how, or the expression or use thereof. 

 

“Know-How”
means to the extent Controlled by the Vendors or any Affiliate of the Vendors, as the case may be, whether existing as of Effective
Date or acquired or developed by the Vendors or their Affiliates thereafter, and necessary or useful for the development, making,
having made, use, sale, offering to sell, having sold or importing of the Product, all know-how, inventions, discoveries, data,
results, information, trade secrets, ideas, concepts, formulas, techniques, methods, processes, developments, materials or compositions
of matter of any type or kind. expertise, formulas, technology, stability data, research, pre-clinical and clinical data, regulatory
information, manufacturing process, scale-up and other technical data, reports, documentation and samples, whether or not patented
or patentable, pertaining to the inventions and technology described in the Patent Rights, including, without limitation, the
Abandoned Patents, and all Patents in the same family for which Dr. Richard Johnson is identified as an inventor.

 

“Net
Revenues” means all revenues to the Purchaser derived from any combination of Net Sales, Sublicensing Royalty Revenue,
and Sublicensing Revenue, but specifically will exclude (i) equity purchases of the Purchaser’s securities, or (ii) milestones
amounts paid by licensees or other collaborators or hinders for contract research and development activities.

 

“Net
Sales” means the total invoiced sales price for Products sold by Purchaser (or an Affiliate or licensee) less the following
deductions:

 

		(a)	sales
                                         taxes or other taxes separately stated in the invoice;

 

		(b)	shipping
                                         and insurance charges actually paid and separately stated on the invoice;

 

		(c)	actual
                                         allowances, rebates, credits and refunds for returned or defective goods;

 

		(d)	chargeback
                                         payments and rebates (or the equivalent thereof) granted to managed health care organizations
                                         or to federal, state/provincial, local and other governments, including their agencies,
                                         purchasers, and/or reimburses, or to trade customers;

 

		(e)	normal
                                         and customary trade and quantity discounts, retroactive price reductions, or other allowances
                                         actually allowed or granted from the billed amount and taken; and

 

		(f)	any
                                         import or export duties, tariffs, or similar charges incurred with respect to the import
                                         or export of Product into or out of a country.

 

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For
purposes of this Agreement, a distributor will not be deemed a licensee and sales by the Purchaser, its Affiliates or licensees
to a distributor will be considered as Net Sales. Notwithstanding the foregoing, Net Sales will not include, and will be deemed
zero with respect to, (i) the distribution of reasonable quantities of promotional samples of Products, (ii) amounts received
by the Purchaser, its Affiliates or licensees for the sale of Products among the Purchaser, its Affiliates or licensees whether
for their internal use or for resale or other disposition; and (iii) amounts received by the Purchaser, its Affiliates or licensees
for Products provided for clinical trials, research purposes, or charitable or compassionate use purposes.

 

“NIH
Waiver” means an approval from the National Institutes of Health for Vendors to transfer ownership of the Patent Rights
to Purchaser.

 

“Patents”
will include (i) all patents and patent applications, (ii) any substitutions, divisions, continuations, continuations-in-part
(but only to the extent that they cover the same invention claimed in the foregoing), revisions, reissues, renewals, registrations,
confirmations, re-examinations, extensions, supplementary protection certificates, patent term extensions, patent term adjustments,
and the like, and any provisional applications, of any such patents or patent applications, and (iii) any foreign or international
equivalent of any of the foregoing.

 

“Patent
Rights” means the Patents listed in Schedule A.

 

“Product”
means any method, process, device, product or service, that, in whole or in part is developed, made, used, sold, distributed,
imported or exported by utilizing or incorporating, in any way, directly or indirectly any subject matter Covered by a Valid Claim
in any Patent Rights.

 

“QuestMed”
means QUESTMED, LLC, a limited liability company formed under the laws of the State of Florida.

 

“Regulatory
Approval” means approval by a Regulatory Authority to allow marketing of a Product.

 

“Regulatory
Authority” means any applicable government entities regulating or otherwise exercising authority with respect to the
development and commercialization of the Product.

 

“Royalty
Due Dates” means March 31, June 30, September 30 and December 31 of each and every year during which this Agreement
remains in full force and effect.

 

“Sublicensing
Revenue” means any consideration actually received by Purchaser or an Affiliate from a Third Party as consideration
for the grant of rights to Products (net of any tax or similar withholding obligations imposed by any tax or other government
authorities that are not reasonably recoverable by Purchaser). Sublicensing Revenue includes, but is not limited to, upfront fees,
license maintenance fees, and milestone payments received by Purchaser in consideration for any rights granted to Products under
a sublicense agreement, and excludes (i) Sublicensing Royalty Revenue, (ii) purchases of equity or debt of Purchaser or any Affiliate,
(iii) fair market value payments made in connection with research and development agreements, joint ventures, partnerships or
collaboration agreements where Purchaser or an Affiliate is obligated to perform research and development of any Product(s), (iv)
the grant to Purchaser of Intellectual Property Rights related to the Patent Rights; and (v) other payments made by a licensee
as consideration for Purchaser’s or an Affiliate’s performance of services or provision of goods, provided such services
or goods are not Products or, if such services or goods are Products, (a) the provision of such services or goods results in Net
Sales pursuant to which a royalty is payable or (b) the provision of such services or goods constitutes one or more of the following:
(1) the distribution of reasonable quantities of promotional samples of Products or (2) the provision of Products for clinical
trials, research purposes, or charitable or compassionate use purposes. 

    5 

     

    

“Sublicensing
Royalty Revenue” means sales-based royalties, sales milestone payments, other payments calculated on the basis of sales,
and minimum sales royalties actually received by Purchaser or its Affiliate from a Third Party as consideration for the grant
of rights to Products (net of any tax or similar withholding obligations imposed by any tax or other government authorities that
are not reasonably recoverable by Purchaser).

 

“Technology”
means the Patent Rights and the IV tow-How.

 

“Third
Party” means any party other than the Vendors or the Purchaser or their respective Affiliates.

 

“Use”
means to use, operate, make, have made, manufacture, sell, offer to sell, license, assign, transfer, market, distribute, sub-license,
import, export, reproduce, modify, adapt, create derivative works, support, translate, port, practice any method or process claimed
in any patent, benefit from or exploit any Intellectual Property Rights or have done any of such things above by any means and
any forms.

 

“Valid
Claim” means a claim of any issued, unexpired patent which has not been revoked or held unenforceable or invalid by
a decision of a court or governmental agency of competent jurisdiction from which no appeal can be taken, or with respect to which
an appeal is not taken within the time allowed for appeal, and which has not been disclaimed, denied or admitted to be invalid
or unenforceable through reissue, disclaimer or otherwise.

 

“Withholding
Taxes” has the meaning set forth in Section 4.8.

 

1.2          
Headings.

 

The
division of this Agreement into Articles and Sections and the insertion of headings are for convenience of reference only and
shall not affect the construction or interpretation of this Agreement. The terms “this Agreement”, “hereof’,
“hereunder” and similar expressions refer to this Agreement and not to any particular Article, Section or other portion
hereof and include any agreement supplemental hereto. Unless something in the subject matter or context is inconsistent therewith,
references herein to Articles and Sections are to Articles and Sections of this Agreement.

 

1.3          Extended
Meanings.

 

In
this Agreement words importing the singular number only shall include the plural and vice versa, words importing the masculine
gender shall include the feminine and neuter genders and vice versa and wads importing pet sons shall include individuals,
partnerships, associations, trusts, unincorporated organizations and corporations.

    6 

     

    

1.4          Accounting
Principles.

 

Wherever
in this Agreement reference is made to a calculation to be made in accordance with generally accepted accounting principles, such
reference shall be deemed to be to the generally accepted accounting principles from time to time approved by the Canadian Institute
of Chartered Accountants, or any successor institute, applicable as at the date on which such calculation is made or required
to be made in accordance with generally accepted accounting principles.

 

1.5          Knowledge.

 

In
this Agreement, the phrase “to the knowledge, information and belief’ of any person will be interpreted as follows:

 

		(a)	A
                                         person who is an individual will he deemed to have knowledge, information and/or belief
                                         of a particular fact or other matter if such individual is actually aware of such fact
                                         cr other matter, or a prudent individual could be expected to discover or otherwise become
                                         aware of such fact or other matter in the course of conducting a reasonably comprehensive
                                         investigation concerning the existence of such fact or other matter.

 

		(b)	A
                                         person, other than an individual, will be deemed to have knowledge, information and/or
                                         belief of a particular fact or other matter if any individual who is serving, or who
                                         has at any time served, as a director, officer, partner, executor, or trustee of such
                                         person (or in any similar capacity) has, or at any time had, knowledge, information and/or
                                         belief of such fact or other matter.

 

ARTICLE
2 - LICENSE AND NIH WAIVER

 

2.1          NTH
Waiver

 

The
Vendors will use best efforts to promptly secure the NIH Waiver from the National Institutes of Health.

 

2.2          License.

 

As
of the Effective Date, prior to the Vendors securing the NIH Waiver, the Vendors hereby grant to the Purchaser an exclusive, assignable
(in accordance with Section 11.1), and sublicensable license, including under all of the Vendors’ present and future Intellectual
Property Rights in and to the Technology, to Commercialize the Technology worldwide in any manner whatsoever, including, without
limitation, the Commercialization of any Products (the “License”) for the issuance of shares in the Purchaser in accordance
with Section 4.1.

    7 

     

    

2.3          Vendors’
Rights.

 

The
Parties acknowledge and agree that the Vendors may use the Technology for their own internal research, teaching and educational
purposes, including treatment of patients with cardiovascular diseases at patient care facilities operated or controlled by the
University of Colorado (the “Colorado Patient Care”) provided that such use shall not (i) contravene the Vendors’
confidentiality obligations under Article 9, (ii) be subject to any Intellectual Property Rights granted to any commercial Third
Party; or (iii) include any human use or clinical administration without prior written approval from the Purchaser (other than
with respect to the Colorado Care), such approval not to be unreasonably withheld. The Purchaser shall also retain the rights
to make, use and provide the Technology to other academic and non-profit research institutions collaborating with the Vendors
for their own internal research, teaching and educational purposes relating to such collaboration, provided that such academic
and non-profit research institutions are bound by confidentiality obligations to protect the Technology that are commensurate
with those under this Agreement, and the Vendors shall require such Third Parties that the use of such Technology shall not (i)
be subject to any Intellectual Property Rights granted to any commercial Third Party nor (ii) include any human use or clinical
administration without prior written approval from the Purchaser, such approval not to be unreasonably withheld.

 

2.4          Prosecution
of Patents.

 

		(a)	Upon
                                         the Purchaser’s request and direction, prior to the Effective Sale Date, the Vendors
                                         will promptly do all things necessary or desirable to prepare, file, register, prosecute
                                         or maintain the Patent Rights as the Purchaser may stipulate in writing from time to
                                         time in each jurisdiction designated by the Purchaser, and the Purchaser will bear the
                                         cost of all reasonable and pre-approved expenses incurred after the Effective Date, continuing
                                         until the Effective Sale Date, and associated with the preparation, filing, registration,
                                         issuance and maintenance of all Patents included in the Patent Rights (collectively,
                                         the “Prosecution and Maintenance Fees”) for which applicable invoices
                                         have been provided to the Purchaser and approved by the Purchaser. The Purchaser has
                                         the right to (a) select and stipulate legal and patent counsel; (b) stipulate and restrict
                                         the jurisdiction(s) for filing, registration, prosecution, and maintenance of the Patent
                                         Rights; and (c) all matters relating to the prosecution of the Patent Rights. The Vendors
                                         will provide copies of all applicable invoices specifying the Prosecution and Maintenance
                                         Fees, and, the Purchaser will pay to the Vendors all undisputed Prosecution and Maintenance
                                         Fees within thirty (30) days after receipt of the applicable invoice. In the event the
                                         Vendors elect not to file, register, prosecute or maintain the Patent Rights in specified
                                         jurisdictions, the Vendors will provide written notice to the Purchaser, in advance of
                                         any filing or response to deadline or fee due. The foregoing will not be construed to
                                         restrict the right of the Vendors from making such filings, registrations, prosecution,
                                         and maintenance, at the Vendors’ expense, as the Vendors may deem appropriate.

    8 

     

    

		(b)	Cooperation.
                                         Prior to the Effective Sale Date, each Party will cooperate reasonably in the preparation,
                                         filing, registration, prosecution, and maintenance of the Patent Rights. Such cooperation
                                         includes (a) promptly executing all papers and instruments and requiring employees to
                                         execute such papers and instruments as reasonable and appropriate so as to enable such
                                         other Party, to prepare, file, register, prosecute, and maintain such Patents in any
                                         country; and (b) promptly informing such other Party of matters that may affect the preparation,
                                         filing, prosecution, registration, or maintenance of any such Patents. The Party responsible
                                         for filing, prosecuting, registering, and maintaining the Patent Rights will provide
                                         the non-prosecuting Party with sufficient opportunity to comment on any document that
                                         the prosecuting Party intends to file or to cause to be filed with the relevant intellectual
                                         property or patent office, and after such filing, provide such filed documents to the
                                         other Party. Each Party will promptly inform the other as to all matters that come to
                                         its attention that may affect the filing, prosecution, registration, and maintenance
                                         of any of the Patent Rights and wilt permit the other Party to provide comments and suggestions
                                         with respect to such activities, which comments and suggestions will be reasonably considered
                                         by the other Party.

 

ARTICLE
3 - PURCHASE AND SALE

 

3.1          Purchase
and Sale

 

Subject
to the terms and conditions hereof, the Vendors securing the NIH Waver, the Vendors hereby sell, assign and transfer to Purchaser
as of the Effective Date, free and clear of all Encumbrances, the Patent Rights, and the Purchaser hereby purchases from the Vendors
the Patent Rights, for the amounts payable in accordance with Section 4.2 hereof (the “Purchase Price”).

 

3.2          Transfer
of Possession

 

This
Agreement shall operate, without further act or formality, as a transfer to the Purchaser for all purposes as at the Effective
Sale Date of all right, title and interest in and to the Patent Rights, including all worldwide rights in and to the Patent Rights.
The Vendors shall forthwith and from time to time hereafter execute and deliver to the Purchaser all deeds, transfers, assignments
and other instruments in writing and further assurances as the Purchaser or its counsel shall reasonably require to effect such
acquisition and transfer; and, for greater certainty, to the extent that any of the Patent Rights shall not have been effectively
transferred to the Purchaser pursuant to this Agreement, the Vendors shall hold all of the same in trust for and as the property
of the Purchaser, pending the effective transfer thereof.

 

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3.3          License
Rights

 

Notwithstanding
the purchase and sale of the Patent Rights contemplated in Section 3.1, upon the assignment of the Patent Rights, the Purchaser
hereby grants to the Vendors a non-exclusive, personal, revocable, and royalty-free license to: (a) use the Patent Rights for
their own internal research, teaching and educational purposes, including the Colorado Patient Care provided that such use shah
not (i) contravene the Vendors’ confidentiality obligations under Article 9, (ii) be subject to any Intellectual Property
Rights granted to any commercial Third Party; or (iii) include any human use or clinical administration without prior written
approval from the Purchaser (other than with respect to the Colorado Care), such approval not to be unreasonably withheld; and
(b) make, use and provide the Patent Rights to other academic and non-profit research institutions collaborating with the Vendors
for their own internal research, teaching and educational purposes relating to such collaboration, provided that such academic
and non-profit research institutions are bound by confidentiality obligations to protect the Patent Rights that are commensurate
with those under this Agreement, and the Vendors shall require such Third parties that the use of such Patent Rights shall not
(i) be subject to any Intellectual Property Rights granted to any commercial Third party nor (ii) include any human use or clinical
administration without prior written approval from the Purchaser, such approval not to be unreasonably withheld.

 

ARTICLE
4 – FINANCIAL PROVISIONS

 

4.1          Payment
by the Purchaser for the License

 

In
consideration of granting the License pursuant to Section 2.2 under this Agreement, subject to applicable securities laws and
the constating documents of the Purchaser, the Purchaser shall issue to: (i) Johnson *** common shares of the Purchaser, (ii)
QuestMed *** common shares of the Purchaser, (collectively “Initial Shares”), and (iii) Nakagawa *** common shares
of the Purchaser representing in the aggregate 7.99% of the Purchaser’s issued and outstanding shares ass of the Effective
Date. In addition to issuing the Initial Shares, as of the Effective Date, Purchaser will issue to: (i) Johnson *** common shares
of the Purchaser, (ii) QuestMed *** common shares of the Purchaser, and (iii) Nakagawa *** common shares of the Purchaser Vendor
(the “Second Shares”), which represent a total of *** shares additional to Initial Shares.

 

4.2          Payment
by the Purchaser for the Assignment of Patent Rights.

 

In
consideration of the assignment of the Patent Rights as of the Effective Sale Date pursuant to Section 3.1 under this Agreement,
the Purchaser shall pay to *** to each of the Vendors and QuestMed.

 

4.3          Royalty

 

		(a)	After
                                         the Effective Sale Date, the Purchaser shall pay to the Vendors a royalty equal to 1.5%
                                         on the cumulative Net Revenues from the sale or sublicense of the Product until the later
                                         of (a) the expiration of the last Patent Right covering a Product, and (b) the expiration
                                         of ten (10) years from the date of First Commercial Sale of a Product. In the event that
                                         a Third Party or an Affiliate of the Purchaser wishes to acquire any of the Purchased
                                         Patent Rights, Purchaser shall make as a condition of such acquisition that the Third
                                         Party of Affiliate acquirer agree to the obligations under this Section 4.3(a) and agree
                                         that for any future acquisition of the Purchased Patent Rights, a condition of the future
                                         acquisition shall include that the future acquirer assuming the obligations under this
                                         Section 4.3(a), such that these obligations shall carry forward in perpetuity to any
                                         future Third Party acquirers until termination of the payment of royalties as contemplated
                                         in the foregoing.

 

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		(b)	In
                                         the event that research and development expenditures of Purchaser or Third-Party acquirer
                                         for all research and development purposes (including without limitation the development
                                         of products) are less than 15% of that company’s total expenditures for all purposes
                                         in the calendar year, the component of the above-referenced royalty that is directed
                                         to Sublicensing Royalty Revenue shall be tripled for that year from 1.5% to 4.5%. The
                                         Purchaser will not be obligated to meet the Project Commitment as contemplated in the
                                         foregoing of this Section 4.3(b) upon the First Commercial Sale.

 

4.4          Combination
Product

 

If
a Product is a Combination Product, Net Sales for the Combination Products will be calculated by multiplying Net Sales for such
Combination Products by the fraction (A/A+B) where A is the invoice price of the Products when sold separately, and B is the aggregate
invoice price of the Third Party products in the Combination Product (the “Third Party Subproducts”) when such
Combination Product is sold separately. If either of the Product or the Third Party Subproduct is not at the time sold separately,
then the allocation of Net Sales will be commercially reasonable and determined by good faith negotiation between the Vendors
and the Purchaser, based on the relative value of the Product and Third Party Subproducts, consistent with the formula provided
above.

 

4.5          Third
Party Royalties.

 

In
the event the Purchaser is required to pay royalties to Third Party as part of its sale of Products (the “Third Party
Royalties”), the Purchaser may deduct an amount equal to fifty percent (50%) of any Third Party Royalties from any royalty
amount due to the Vendors hereunder, provided that in no event will the royalties otherwise due to the Venders be less than fifty
(50%) of the royalties that would be payable to the Vendors absent the effects of this Section 4.5.

 

4.6          Tinting
of Payments.

 

The
royalties from the Purchaser to the Vendors set forth in Section 4.3 will be paid by the Purchaser on a quarterly basis and, will
become due and payable within forty-five (45) clays after each respective Royalty Due Date and will be calculated based on the
Net Revenues in the three (3) month period immediately preceding the applicable Royalty Due Date. Provided the Purchaser has acted
reasonably in a commercially reasonable fashion in extending credit to its customers and has had diligent efforts to collect its
accounts receivable respecting Products sold, then the Purchaser may claim a credit against the royalties otherwise owing respecting
royalties paid where the revenues from the sales have not been collected by the Purchaser within one hundred and twenty (120)
days of the sale of such Product, provided that in the event of ultimate collection by the Purchaser, the Royalties payable will
thereupon be submitted to the Vendors.

 

    11 

     

    

4.7          Payment
Method.

 

Any
amounts due to the Vendors under this Agreement will be paid in United States dollars, by wire transfer in immediately available
funds to an account designated by the Vendors. Any payments or portions thereof due hereunder which are not paid on the date such
payments are due under this Agreement will bear simple interest at a rate equal to the lesser of the prime rate as published in
The Globe and Mail, on the first day of each Calendar Quarter in which such payments are overdue, plus two percent (2%),
or the maximum rate permitted by law, whichever is lower, calculated on the number of days such payment is delinquent.

 

4.8          Currency;
Foreign Payments.

 

Net
Sales of Product made in currency other than United States dollars will be converted to United States dollars using the average
exchange rates for the applicable foreign currency published in The Globe and Mail for the applicable Calendar Quarter.
If at any time legal restrictions prevent the prompt remittance of any payments in any jurisdiction, the Purchaser may notify
the Vendors and make such payments by depositing the amount thereof in local currency in a bank account or other depository in
such country in the name of the Vendors Or its designee, and the Purchaser will have no further obligations under this Agreement
with respect thereto.

 

4.9          Taxes.

 

The
Purchaser may deduct from any amounts it is required to pay to the Vendors pursuant to this Agreement an amount equal to that
withheld for or due on account of any taxes (other than taxes imposed on or measured by net income) or similar governmental charge
imposed by a jurisdiction based on such payments to the Vendors (“Withholding Taxes”). The Purchaser will provide
the Vendors a certificate evidencing payment of any Withholding Taxes hereunder within thirty (30) days of such payment (or when
available from the applicable foreign tax authority) and will reasonably assist the Vendors, at the Vendors’ expense, to
obtain the benefit of any applicable tax treaty.

 

4.10        Reports;
Records Retention; Audit.

 

		(a)	Sales
                                         Reports. Within forty-five (45) days after each respective Royalty Due Date, the
                                         Purchaser will furnish to the Vendors a written report showing in reasonably specific
                                         detail, on a country-by-country and Product-by-Product basis, (a) the gross sales of
                                         Products sold by the Purchaser, its Affiliates and licensees during the applicable calendar
                                         quarter, the calculation of Net Sales from such gross sales and the calculation of Net
                                         Revenues; (b) the calculation of the royalties which will have accrued based upon such
                                         Net Revenues; (c) the Withholding Taxes, if any, required by law to be deducted with
                                         respect to such Net Revenues; and (d) the exchange rates, if any, used in determining
                                         the amount of U.S. dollars.

 

    12 

     

    

		(b)	Record
                                         Retention. The Purchaser will maintain (and will ensure that its licensees will maintain)
                                         complete and accurate books, records and accounts that fairly reflect Net Revenues with
                                         respect to the Product, in each case in sufficient detail to confirm the accuracy of
                                         any payments required hereunder, which books, records and accounts will he retained by
                                         the Purchaser until the later of (i) 3 years after the end of the period to which such
                                         books, records and accounts pertain, and (ii) the expiration of the applicable tax statute
                                         of limitations (or any extensions thereof), or for such longer period as may be required
                                         by Applicable Law.

 

		(c)	Audit.
                                         The Vendors will have the right to have an independent certified public accounting firm
                                         of nationally recognized standing, reasonably acceptable to the Purchaser, have access
                                         during normal business hours, and upon reasonable prior written notice, to the Purchaser’
                                         records (and its licensees) as may be reasonably necessary to verify the accuracy of
                                         Net Revenues for any Calendar Quarter ending not more than twenty-four (24) months prior
                                         to the date of such request; provided, however, that the Vendors will not have
                                         the right to conduct more than one such audit in any Calendar Year except as provided
                                         below or more than one such audit covering any given time period. The Vendors will bear
                                         the cost of such audit unless the audit reveals an underpayment to the Vendors of more
                                         than 5% for the audited period, in which case the Purchaser will bear the cost of the
                                         audit.

 

		(d)	Payment
                                         of Additional Amounts. If, based on the results of such audit, additional payments
                                         are owed by the Purchaser under this Agreement; the Purchaser will make such additional
                                         payments, with interest as set forth in Section 4.7, within thirty (30) days after the
                                         date on which such accounting firm’s written report is delivered to such Party.

 

		(e)	Confidentiality.
                                         The Vendors will treat the financial information subject to review under this Section
                                         4.10(e), any information contained in the Sales Reports under Section 4.10(a) as Confidential
                                         Information of the Purchaser in accordance with the confidentiality provisions of Article
                                         9.

 

    13 

     

    

ARTICLE
5 - REPRESENTATIONS AND WARRANTIES

 

5.1          Representations
and Warranties of the Vendors 

 

The
Vendors represent, warrant and acknowledge to Purchaser, as of the Effective Date and the Effective Sale Date, and acknowledge
and confirm that Purchaser is relying upon the representations and warranties in connection with the purchase by Purchaser of
the Patent Rights that:

 

General

 

		(a)	they
                                         have the power, authority and right to enter into and deliver this Agreement and to complete
                                         all transactions to be completed by them contemplated hereunder and without limiting
                                         the generality of the foregoing to transfer the legal and beneficial title and ownership
                                         of the Patent Rights to Purchaser free and clear of all Encumbrances;

 

		(b)	this
                                         Agreement and all other agreements, documents and instruments to be executed by either
                                         of the Vendors pursuant hereto have been validly executed and delivered by each of the
                                         Vendors, as applicable, and are valid and enforceable against the Vendors in accordance
                                         with their terms, subject to applicable bankruptcy and insolvency laws and to equitable
                                         remedies being always in the discretion of a court;

 

		(c)	there
                                         is no contract, option or any other right of another binding upon or which at any time
                                         in the future may become binding upon either of the Vendors to sell, transfer, assign,
                                         pledge, charge, mortgage, create any Encumbrance or in any other way dispose of or encumber
                                         any of the Patent Rights other than pursuant to the provisions of this Agreement;

 

		(d)	neither
                                         the entering into nor the delivery of this Agreement nor the completion of the transactions
                                         contemplated hereby by Vendors will result in the violation of:

 

		(i)	any
                                         agreement or other instrument to which either of the Vendors is a party; or

 

		(ii)	any
                                         Applicable Law; and

 

		(e)	no
                                         distress, execution or other process been levied against the Vendors or action taken
                                         to repossess goods in the possession of the Vendors. No steps have been taken for the
                                         appointment of an administrator or receiver of any part of the property of the Vendors.
                                         The Vendors have not made or proposed any arrangement or composition with its creditors
                                         or any class of the Vendors’ creditors. The Vendors have not been party to a transaction
                                         pursuant to or as a result of which an asset owned, purportedly owned or otherwise held
                                         by the Vendors are liable to be transferred or are transferred to another person or which
                                         gives or may give rise to a right of compensation or other payment in favour of another
                                         person under the provisions of any applicable bankruptcy or insolvency legislation. The
                                         Vendors are not undischarged bankrupts and will not, by reason of the sale of the Patent
                                         Rights to Purchaser hereunder, be rendered insolvent or be rendered unable to pay their
                                         debts when they become due.

 

Patent
Rights

 

		(f)	the
                                         Vendors have an Executory interest in the Patent Rights as of the Effective Date, and,
                                         upon receiving the N1H Waiver, will be the owner of all rights, title, and interests
                                         in and to the Patent Rights, and upon becoming the owner of such rights, title, and interests,
                                         the Vendors will have good and marketable title to the Patent Rights, free and clear
                                         of all Encumbrances and any other rights of others;

    14 

     

    

		(g)	other
                                         than with respect to the rights of the N1H and the United States government in and to
                                         the Patent, the Vendors have the exclusive right to use the Patent Rights and no Third
                                         Party has any right, title or interest (including, without limitation, by way of license)
                                         to any of the Patent Rights;

 

		(h)	other
                                         than with respect to the Abandoned Patents, the Patent Rights are valid, subsisting and,
                                         to the knowledge, information, and belief of each of the Vendors, enforceable, and in
                                         good standing and have been duly registered, issued, or granted or applications to register
                                         the same have been filed with the patent granting authorities identified in Schedule
                                         A in all appropriate offices to preserve the rights therein and of the Vendors thereto;

 

		(i)	other
                                         than with respect to the Abandoned Patents, all maintenance and renewal fees for or in
                                         respect of all Patent Rights, and owing and/or due prior to or within ninety (90) days
                                         of the Effective Sale Date, have been paid, and there are no responses to office actions,
                                         submissions, or any other outstanding action or steps required to be taken and/or made
                                         in respect of any of the Patent Rights prior to or within ninety (90) days of the Effective
                                         Sale Date, [except as noted in Schedule Al; 

 

		(j)	the
                                         Vendors have received no notice of any Claims made against either of the Vendors asserting
                                         the invalidity or unenforceability of the Patent Rights (including, without limitation,
                                         any re-examinations, interference actions, derivation proceedings, or conflict proceedings)
                                         or the misuse of the Patent Rights, and neither of the Vendors is aware of any basis
                                         for any of the same;

 

		(k)	neither
                                         of the Vendors has received notice of any Third Party challenge to either of the Vendor’s
                                         right to use any of the Patent Rights;

 

		(l)	at
                                         no time have the Vendors infringed, misused, misappropriated or jeopardized the Intellectual
                                         Property Rights of any Third Party, and to the knowledge, information and belief of each
                                         of the Vendors, Use of the Patent Rights and Commercialization of the Technology do not
                                         infringe upon or violate any Third Party Intellectual Property Right. Neither of the
                                         Vendors has entered into any agreement to indemnify any other person against any charge
                                         or claim that the Patent Rights infringe Third Party Intellectual Property Rights. There
                                         is no and has not been any unauthorized use, infringement or misappropriation of any
                                         of the Patent Rights by any employee, former employee, contractor, consultant, customer,
                                         or potential customer to whom the Patent Rights have been provided or made accessible
                                         on a pilot basis, and, to the knowledge, information and belief of each of the Vendors,
                                         there is no and has not been any unauthorized use, infringement or misappropriation of
                                         any of the Patent Rights by any other person or Third Party;

 

    15 

     

    

		(m)	neither
                                         of the Vendors is a party to or bound by any contract or commitment to pay any royalty,
                                         license or other fee with respect to the Patent Rights; and

 

		(n)	the
                                         Vendors have received no notice of any actions, suits or proceedings or Claims pending
                                         or threatened against either of the Vendors or the Patent Rights purchased and sold hereunder,
                                         or before or by any governmental authorities, whether or not insured, and which might
                                         involve the possibility of any Encumbrance, or any other right of another against any
                                         of the Patent Rights.

 

5.2          Survival
of Vendor Representations, Warranties and Covenants

 

		(a)	The
                                         representations and warranties of the Vendors set forth in Section 5.1 shall survive
                                         the completion of the sale and purchase of the Patent Rights herein provided for and
                                         shall continue in hill force and effect for the benefit of Purchaser.

 

		(b)	The
                                         covenants of the Vendors set forth in this Agreement shall survive the completion of
                                         the sale and purchase of the Patent Rights herein provided for and, notwithstanding such
                                         completion, shall continue in full force and effect for the benefit of Purchaser in accordance
                                         with the terms thereof.

 

5.3          Purchaser’s
Representations and Warranties

 

Purchaser
represents and warrants to the Vendors, as of the Effective Date and the Effective Sale Date, and acknowledges and confirms that
the Vendors are relying upon the representations and warranties in connection with the purchase by Purchaser of the Patent Rights,
that•

 

		(a)	Purchaser
                                         is a corporation duly incorporated, organized and subsisting under the laws of the Province
                                         of Alberta, Canada;

 

		(b)	Purchaser
                                         has the power, authority and right to enter into and deliver this Agreement and to complete
                                         all transactions to be completed by Purchaser contemplated hereunder, and the
                                         execution, delivery and performance of this Agreement and the consummation of the transactions
                                         contemplated under this Agreement have been duly and validly authorized and approved
                                         by all necessary corporate action on the part of Purchaser;

 

		(c)	this
                                         Agreement and all other agreements, documents and instruments to be executed by Purchaser
                                         pursuant hereto have been validly executed and delivered by Purchaser, and are valid
                                         and enforceable against Purchaser in accordance with their teens, subject to applicable
                                         bankruptcy and insolvency laws and to equitable remedies being always in the discretion
                                         of a court;

 

    16 

     

    

		(d)	Neither
                                         the entering into nor the delivery of this Agreement nor the completion of the transactions
                                         contemplated hereby by Purchaser will result in the violation of:

 

		(i)	any
                                         of the provisions of the constating documents or by-laws of Purchaser;

 

		(ii)	any
                                         agreement or other instrument to Purchaser is a party or by which Purchaser is bound;
                                         or

 

		(iii)	any
                                         Applicable Law; and

 

		(e)	no
                                         order has been made or petition presented or resolution passed for the winding up of
                                         Purchaser nor has any distress execution or other process been levied against Purchaser
                                         or action taken to repossess goods in the possession of Purchaser. No steps have been
                                         taken for the appointment of an administrator or receiver of any part of the property
                                         of Purchaser. No floating charge created by Purchaser has crystallised and there are
                                         no circumstances likely to cause such floating charge to crystallise. Purchaser has not
                                         been party to any transaction that could be avoided in a winding up. Purchaser has not
                                         made or proposed any arrangement or composition with its creditors or any class of its
                                         creditors. Purchaser has not been party to a transaction pursuant to or as a result of
                                         which an asset owned, purportedly owned or otherwise held by it is liable to be transferred
                                         or re-transferred to another person or which gives or may give rise to a right of compensation
                                         or other payment in favour of another person under the provisions of the Bankruptcy
                                         Insolvency Act (Canada).

 

5.4          Survival
of Purchaser’s Representations, Warranties arid Covenants

 

(1)           The
representations and warranties of Purchaser set forth in Section 5.2 shall survive the completion of the sale and purchase of
the Patent Rights herein provided for and, notwithstanding such completion, shall continue in full force and effect for the benefit
of the Vendors.

 

(2)           The
covenants of Purchaser set forth in this Agreement shall survive the completion of the sale and purchase of the Patent Rights
herein provided for and, notwithstanding such completion, shall continue in full force and effect for the benefit of the Vendors
in accordance with the terms thereof.

    17 

     

    

ARTICLE
6  - COVENANTS

 

6.1          Covenants
of the Vendors

 

The
Vendors shall indemnify and save harmless Purchaser and the directors, officers, employees and agents of Purchaser from and against
any and all Claims directly or indirectly suffered by any of the same resulting from:

 

		(a)	any
                                         breach by either of the Vendors of, or inaccuracy or misrepresentation contained in,
                                         any representation or warranty set forth in:

 

		(i)	this
                                         Agreement;

 

		(ii)	any
                                         other agreement to be entered into in connection with the transactions contemplated hereby;
                                         and

 

		(b)	any
                                         Claim in respect of action taken or omitted to be taken by either of the Vendors in relation
                                         to the Patent Rights prior to the Effective Sale Date.

 

6.2          Covenants
of Purchaser

 

Purchaser
shall indemnify and save harmless the Vendors and the directors, officers, employees and agents of the Vendors from and against
any and all Claims directly or indirectly suffered by either of the Vendors resulting from any breach by Purchaser of, or inaccuracy
or misrepresentation contained in, any representation or warranty set forth in:

 

		(i)	this
                                         Agreement; and

 

		(ii)	any
                                         other agreement to he entered into in connection with the transactions contemplated hereby.

 

6.3          Indemnification
Procedure

 

Each
Party’s agreement to indemnify and hold the other harmless is conditioned upon the indemnified Party (i) providing written
notice to the indemnifying Party of any Claim, arising out of the indemnified activities within thirty (30) days after the indemnified
Party has knowledge of such Claim, (ii) permitting the indemnifying Party to assume full responsibility to investigate, prepare
for and defend against any such Claim, (iii) assisting the indemnifying Party, at the indemnifying Party’s reasonable expense,
in the investigation of, preparation of and defense of any such Claim; and (iv) not compromising or settling such claim or demand
without the indemnifying Party’s prior written consent; provided that if the Party entitled to indemnification fails to
promptly notify the indemnifying Party pursuant to the foregoing clause (i), the indemnifying Party will only be relieved of its
indemnification obligation to the extent prejudiced by such failure.

    18 

     

    

6.4          Limitation
of Liability

 

Except
with respect to breaches of the obligations under Article 9, in no event shall either Party be liable for special, indirect or
consequential damages, losses, costs, charges, claims, demands, fees or expenses of any nature or kind.

 

ARTICLE
7 - TECHNOLOGY TRANSFER

 

7.1          Technology
Transfer

 

As
of the Effective Sale Date, the Vendors and Purchaser will cooperate in the filing and execution of any and all documents necessary
to effect the assignment to Purchaser of the Patent Rights, including the filing of assignments or other transfer of title covenants
with the U.S. Patent and Trademark Office and foreign patent offices as applicable to the Patent Rights. Within thirty (30) days
from the Effective Sale Date, the Vendors will notify all lawyers, patent agents, patent attorneys, and other patent professionals
handling the prosecution of the Patent Rights to contact the Purchaser to provide an immediate status update on the Patent Rights
and to prepare the documents necessary to transfer the Patent Rights to Purchaser. The cost of recording assignments of the Patent
Rights will be borne by Purchaser. Within forty-five (45) days from the Effective Sale Date, the Vendors and their counsel will
use their reasonable best efforts to transfer all files and supporting documents relating to the Patent Rights to Purchaser, including
but not limited to, all initial invention disclosure documents, all documents sent to the U.S. Patent and Trademark Office and
other patent granting authorities regarding inventions and claims, copies of all draft patent applications, copies of all filing
or prosecution documents submitted to the patent offices, and all file wrappers. Conception notebooks and all other documents
in the possession or under the control of either of the Vendors or their counsel relating to conception and/or reduction to practice,
such as scientist notebooks shall be retained by the Vendors and made available to Purchaser upon Purchaser’s reasonable
request. All documents to be provided to Purchaser hereunder are to be sent by expedited delivery service.

 

ARTICLE
8  - PATENT MAINTENANCE AND 

PROSECUTION RESPONSIBILITIES

 

8.1          Patent
Maintenance

 

On
and after the Effective Sale Date, Purchaser will take responsibility for any action or proceeding involving the Patent Rights.
The cost of recording the assignment of Patent Rights shall be borne solely by Purchaser. If Purchaser elects not to take such
responsibility involving Patent Right(s) in a particular country then Purchaser will notify the Vendors thirty (30) days before
the time the future action is due, and thereafter the Vendors may undertake such responsibility. If the Vendors elect to
do so, Purchaser will grant any necessary authority to the Vendors. If the Vendors determine to take such responsibility, it shall
do so at its own expense.

 

8.2          Notice
of Infringement

 

Purchaser
shall promptly notify the Vendors in writing of any infringement of any assigned Patent Right(s) of which it becomes aware.

    19 

     

    

8.3          Enforcement
of Patents

 

Except
as otherwise set forth in this Section, Purchaser may, but shall not be required to, prosecute any alleged infringement or threatened
infringement of any assigned Patent Right(s) of which it is aware or which is brought to its attention. Purchaser shall act in
its own name and at its own expense. If Purchaser has failed to prosecute under the first sentence of this Section with respect
to alleged or threatened infringement relating to any Patent Right(s) (i) two (2) months after it has been notified in writing
of such alleged infringement, or (ii) one (1) month before the time limit, if any, set forth in the Applicable Laws for the filing
of such actions, whichever conies first, the Vendors may, but shall not be required to, prosecute any such alleged infringement
or threatened infringement of any such Patent Rights. In any such event, the Vendors will be free to act in its own name and at
its own expense. Upon Vendors prosecuting any such alleged infringement or threatened infringement, Purchaser agrees to cooperate
in Vendors’ efforts, including but not limited to acting as a named party in any litigation and/or transferring rights to
Vendors only to the extent necessary to act as a valid party with standing for such litigation.

 

ARTICLE
9 - CONFIDENTIALITY

 

9.1          Disclosure
and Use Restriction.

 

(3)           Except
as expressly provided herein, the Parties agree that each Party will keep completely confidential and will not publish, submit
for publication or otherwise disclose, and will not use for any purpose except for the purposes contemplated by this Agreement,
any Confidential Information received from the other Party. Notwithstanding the foregoing, the Purchaser may publish or disclose
at the Purchaser’s discretion technical or research data or results that are the Vendors’ Confidential Information
and that are customary to disclose in the life sciences industry for scientific or business reasons, provided that the data or
results disclosed do not compromise the Vendors’ Intellectual Property Rights, including trade secrets.

 

9.2          Authorized
Disclosure.

 

		(a)	Each
                                         Party may disclose Confidential Information of the other Party to the extent that such
                                         disclosure is:

 

		(i)	made
                                         in response to a valid order of a court of competent jurisdiction; provided, however,
                                         that such Party will first have given notice to such other Party and given such other
                                         Party a reasonable opportunity to quash such order and to obtain a protective order requiring
                                         that the Confidential Information and documents that are the subject of such order be
                                         held in confidence by such court or agency or, if disclosed, be used only for the purposes
                                         for which the order was issued; and provided further that if a disclosure order is not
                                         quashed or a protective order is not obtained, the Confidential Information disclosed
                                         in response to such court or governmental order will be limited to that information which
                                         is legally required to be disclosed in response to such court or governmental order,
                                         as determined in good faith by counsel to the Party that is obligated to disclose Confidential
                                         Information pursuant to such order,

    20 

     

    

		(ii)	otherwise
                                         required by law or regulation; provided, however, that the Party that is so required
                                         will provide such other Party with notice of such disclosure in advance thereof to the
                                         extent practicable;

 

		(iii)	made
                                         by such Party to the Regulatory Authorities as necessary for the development or commercialization
                                         of a Product in a country, as required in connection with any filing, application or
                                         request for Regulatory Approval or as required by applicable securities laws and regulations;
                                         provided, however, that reasonable measures will be taken to assure confidential treatment
                                         of such information;

 

		(iv)	made
                                         by such Party, in connection with the performance of this Agreement, to such Party’s
                                         Affiliates, or to directors, officers, employees, consultants, representatives or agents
                                         of such Party or its Affiliates, in each case on a need to know basis and solely for
                                         use of such information as permitted in this Agreement, and provided that each of the
                                         foregoing recipients prior to disclosure must be bound by obligations of confidentiality
                                         and non-use at least equivalent in scope to those set forth in this Article 9; or

 

		(v)	made
                                         by such Party to existing or potential acquirers; investment hankers; existing or potential
                                         investors, merger candidates, venture capital firms or other financial institutions or
                                         investors for purposes of obtaining financing; in each case on a need to know basis,
                                         and provided that each of the foregoing recipients prior to disclosure must be bound
                                         by obligations of confidentiality and non-use at least equivalent in scope to those set
                                         forth in this Article 9.

 

		(b)	In
                                         addition, the Purchaser may disclose Confidential Information of the Vendors to the extent
                                         that such disclosure is made to the Purchaser’s existing or potential sublicensees,
                                         licensors, or potential collaborators or bona tide strategic partners, in each case on
                                         a need to know basis and solely for use of such information as permitted in this
                                         Agreement, and provided that the Purchaser causes each of the foregoing recipients must
                                         be bound by obligations of confidentiality and non-use at least equivalent in scope to
                                         those set forth in this Article 9.

    21 

     

    

9.3          Press
Releases.

 

Press
releases or other similar public communication by either Party relating to this Agreement will be approved in advance by the other
Party, which approval will not be unreasonably withheld or delayed. The Parties agree in advance that no financial terms related
to this transaction will be disclosed in any press release related to or describing the transaction. Notwithstanding the foregoing,
communications required by Applicable Law, and disclosures of information for which consent has previously been obtained will
not require advance approval, but will be provided to the other Party as soon as practicable after the release or communication
thereof.

 

ARTICLE
10 - GENERAL

 

10.1        Further
Assurances

 

Each
of the Vendors and Purchaser shall from time to time execute and deliver all such further documents and instruments and do all
acts and things as the other Party may, either before or after the Effective Date, reasonably require to effectively carry out
or better evidence or perfect the full intent and meaning of this Agreement, including, without limitation, the execution and
delivery to Purchaser of one or more assignments. Without limiting the generality of the foregoing, this Agreement shall operate,
without further act or formality, as a transfer to Purchaser for all purposes as at the Effective Sale Date of all the property
and rights transferred and acquired hereunder. The Vendors shall forthwith and from time to time hereafter execute and deliver
or cause to be executed and delivered to Purchaser all deeds, transfers, assignments and other instruments in writing and further
assurances as Purchaser or its counsel shall reasonably require from any of them to effectuate such acquisition and transfer;
and, for greater certainty, the Vendors shall hold all of the property and rights transferred and acquired hereunder, to the extent
that the same shall not have been effectually transferred to or pursuant to this Agreement, in trust for and as the property of
Purchaser pending effective transfer thereof. Purchaser proposes a reverse takeover of *** that will result in Purchaser shareholders
controlling approximately *** of all *** shares, while not contemplated in the agreement, the Vendor agrees, and confirms approval
of this transaction resulting in the merger of the two companies and change of business to a pharmaceutical research and development
company.

 

ARTICLE
11  - MISCELLANEOUS

 

11.1        Assignment.

 

Without
the prior written consent of the other Party hereto, neither Party will sell, transfer, assign, delegate, pledge or otherwise
dispose of, whether voluntarily, involuntarily, by operation of law or otherwise, this Agreement or any of its rights or duties
hereunder; provided, however, that. either Party hereto may assign or transfer this Agreement or any of its rights or obligations
hereunder without the consent of the other Party to any Affiliate or to any Third Party successor in interest with which it has
merged, consolidated, amalgamated, or combined, including by plan of arrangement, or to which it has transferred all or substantially
all of its assets or stock to which this Agreement relates, if in any such event the assignee or surviving entity assumes in writing
all of the assigning Party’s obligations under this Agreement. Any purported assignment or transfer in violation of this
Section 11.1 will be void ab initio and of no force or effect.

    22 

     

    

11.2        Severability.

 

If
any provision of this Agreement is held to be illegal, invalid or unenforceable by a court of competent jurisdiction, such adjudication
will not affect or impair, in whole or in part, the validity, enforceability, or legality of any remaining portions of this Agreement.
All remaining portions will remain in full force and effect as if the original Agreement had been executed without the invalidated,
unenforceable or illegal part.

 

11.3        Governing
Law.

 

This
Agreement will be governed by and construed in accordance with the laws of province of Alberta and the federal laws of Canada
applicable therein without reference to any rules of conflicts of laws. The United Nations Convention on Contracts for the International
Sale of Goods and any implementation of such Convention will not apply in any way to this Agreement or to the transactions contemplated
by this Agreement or otherwise to create any rights or to impose any duties or obligations on any Party to this Agreement.

 

11.4        Dispute
Resolution.

 

The
Parties agree that, in the event of any dispute under this Agreement, the Parties shall first seek to resolve such dispute in
good faith. If such dispute cannot be resolved despite the Parties’ good faith efforts within a ninety (90) day period and
a Party wishes to pursue the matter further, each such dispute, controversy or claim will be finally resolved by binding arbitration
in accordance with and under the rules of the American Arbitration Association, and judgment on the arbitration award may be entered
in any court having jurisdiction thereof The arbitration will be conducted by a panel of three persons experienced in the life
sciences business. Within thirty (30) days after initiation of arbitration, each Party will select one person to act as arbitrator
and the two Party- selected arbitrators will select a third arbitrator within thirty (30) days of their appointment. No individual
will be appointed to arbitrate a dispute pursuant to this Agreement unless he or she agrees in writing to be bound by the provisions
of this Section 11.4. The place of arbitration will be Orlando, Florida, or such other location as agreed by the Parties in writing.
Either Party may apply to the arbitrators or to a court for interim injunctive relief until the arbitration award is rendered
or the controversy is otherwise resolved.

 

11.5        Notices.

 

All
notices or other communications that are required or permitted hereunder will be in writing and delivered personally with acknowledgement
of receipt, sent by facsimile (and promptly confirmed by personal delivery, registered or certified mail or overnight courier
as provided herein), sent by nationally-recognized overnight courier or sent by registered or certified mail, postage prepaid,
return receipt requested, addressed as follows:

 

If
to the Purchaser, to:

 

Xortx
Pharma Corp.

****

 

Attention:
President & CEO

Facsimile:●

Email:
●

 

If
to the Vendors, to:

 

Dr.
Richard Johnson

***

 

    23 

     

    

or
to such other address as the Party to whom notice is to be given may have furnished to the other Party in writing in accordance
herewith. Any such communication will be deemed to have been given (i) when delivered, if personally delivered or sent by facsimile
or other means of electronic communication on a Business Day; (ii) on the Business Day after dispatch, if sent by nationally-recognized
overnight courier, and (iii) on the fifth (51h) Business Day following the date of mailing, if sent by mail. Tt is
understood and agreed that this Section 11.5 is not intended to govern the day-to-day business communications necessary between
the Parties in performing their duties, in due course, under the terms of ibis Agreement.

 

11.6        Entire
Agreement; Modifications.

 

This
Agreement sets forth and constitutes the entire agreement and understanding between the Parties with respect to the subject matter
hereof and all prior agreements, understanding, promises and representations, whether written or oral, with respect thereto are
superseded hereby. Each Party confirms that it is not relying on any representations or warranties of the other Party except as
specifically set forth herein. No amendment, modification, release or discharge will be binding upon the Parties unless in writing
and duly executed by authorized representatives of both Parties.

 

11.7        Relationship
of the Parties.

 

It
is expressly agreed that the Parties will be independent contractors of one another and that the relationship between the Parties
will not constitute a partnership, joint venture or agency.

 

11.8        Waiver.

 

Any
term or condition of this Agreement may be waived at any time by the Party that is entitled to the benefit thereof, but no such
waiver will be effective unless set forth in a written instrument duly executed by or on behalf of the Party waiving such term
or condition. Any such waiver will not be deemed a waiver of any other right or breach hereunder.

 

11.9        Counterparts
and Delivery.

 

This
Agreement may be executed in two (2) 01 more counterparts, each of which will be deemed an original, but all of which together
will constitute one and the same instrument. Delivery of an executed signature page to this Agreement by any Party by electronic
transmission will be as effective as delivery of a manually executed copy of this Agreement by such Party.

 

    24 

     

    

11.10     
No Benefit to Third Parties.

 

The
representations, warranties, covenants and agreements set forth in this Agreement are for the sole benefit of the Parties hereto
and their successors and permitted assigns, and they will not be construed as conferring any rights on any other parties.

 

11.11     
Further Assurance.

 

Both
Parties will duly execute and deliver, or cause to be duly executed and delivered, such further instruments and do and cause to
be done such further acts and things, including the filing of such assignments, agreements, documents and instruments, as may
be necessary to carry out the provisions and purposes of this Agreement.

 

11.12     
Remedies not Exclusive.

 

The
remedies provided to the Parties under this Agreement are cumulative and not exclusive to each other, and any such remedy will
not be deemed or construed to affect any right which any of the Parties is entitled to seek at law, in equity or by statute.

 

11.13     
Force Majeure.

 

The
failure or delay of any Party to this Agreement to perform any obligation under this Agreement solely by reason of acts of God,
acts of civil or military authority, civil disturbance, war, strikes or other labour disputes or disturbances, fire, transportation
contingencies, shortage of facilities, fuel, energy, labour or materials, or laws, regulations, acts or orders of any governmental
agency or official, other catastrophes, or any other circumstance beyond its reasonable control (“Force Majeure”)
will be deemed not to be a breach of this Agreement so long as the Party so prevented from complying with this Agreement has not
contributed to such Force Majeure, has used reasonable efforts to avoid such Force Majeure or to ameliorate its effects, and continues
to take all actions within its power to comply as fully as possible with the terns of this Agreement. In the event of any such
Force Majeure, performance of the obligations will be deferred until the Force Majeure ceases. This Section will not apply to
excuse a failure to make any payment when due.

 

11.14     
Number and Gender.

 

Unless
the context of this Agreement otherwise requires, to the extent necessary so that each clause will be given the most reasonable
interpretation, the singular number will include the plural and vice versa, the verb will be construed as agreeing with the word
so substituted, words importing the masculine gender will include the feminine and neuter genders, words importing persons will
include firms and corporations and words importing firms and corporations will include individuals.

 

    25 

     

    

11.15     
Headings and Captions.

 

The
headings and captions of sections and paragraphs contained in this Agreement arc all inserted for convenience of reference only
and are not to be considered when interpreting this Agreement.

 

11.16     
Enurement.

 

Subject
to the restrictions on transfer contained in this Agreement, this Agreement will enure to the benefit of and he binding on the
Parties and their respective successors and permitted assigns.

 

11.17     
Currency.

 

Unless
otherwise indicated, all references to currency herein are to U.S. dollars.

 

    26 

     

    

IN
WITNESS WHEREOF the Parties have executed this Agreement.

 

	DR.
        RICHARD JOHNSON

         

        per:

         

        

        
	 	XORTX
        PHARMA CORP.

         

        per:

        

	/s/ Dr.
    Richard Johnson		/s/ Allen Davidoff
	 	 	 
	 	 	Name:
        Dr. Allen Davidoff

        

        Title:
        President and CEO

         

	[DR.
        TAKAHIKO NAKAGAWA]

         

        per:

         

        

        
	 	 
	/s/ Dr. Takahiko Nakagawa	 	 

 

[Signature
Page]

     

     

    

SCHEDULE
A

PATENT RIGHTS

 

***Exhibit
        4.18

         

 

CERTAIN INFORMATION (INDICATED BY [***])
HAS BEEN EXCLUDED FROM THE VERSION OF THIS DOCUMENT FILED AS AN EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND THE TYPE OF INFORMATION
THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.

  

Appendix E - Equity Agreement

 

Table
of Contents

 

	Section
    1.	Definitions
	Section
    2.	Issuance
    of Shares to UFRF:  Closing Deliveries
	Section
    3.	Representations
    and Warranties
	Section
    4.	Miscellaneous
    Covenants
	Section
    5.	Tag-Along
    Rights
	Section
    6.	Termination
	Section
    7.	Assignability
	Section
    8.	Miscellaneous
	Section
    9.	Notices
	Section
    10.	Integration

	Exhibit
    A - Definitions In Equity Agreement
	Exhibit
    B - Articles of Incorporation and Bylaws
	Exhibit
    C - Stock Restrictions
	Exhibit
    D - Financial Statements
	Exhibit
    E - List of Stockholders and Optionholders

 

THIS
EQUITY AGREEMENT (the “Agreement”) is made effective the 23rd day of June, 2014 by and between the University
of Florida Research Foundation, Inc. (hereinafter called “UFRF”), a non-stock, nonprofit Florida corporation, and
XORTX Pharma Corp (hereinafter called “Licensee” or the “Company”), a corporation organized
and existing under the laws of Canada.

 

WHEREAS,
UFRF and Licensee have entered into certain License Agreements with respect to certain inventions owned by UFRF or in which UFRF
has a joint, undivided interest;

 

WHEREAS,
as an accommodation to Licensee, UFRF is willing to accept shares of common stock of Licensee in lieu of charging Licensee certain
fees under the License Agreements.

 

NOW
THEREFORE, in consideration of the mutual covenants and agreements set forth below, the parties covenant and agree as follows:

 

		Section 1.	Definitions

 

For
the purpose of this Agreement, the Exhibit A definitions shall apply. Capitalized terms used and not otherwise defined herein
shall have the meanings assigned thereto in the License Agreements. 

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		Section 2.	Issuance
                                         of Shares to UFRF: Closing Deliveries

 

2.1          Issuance of Shares***

 

2.1.1     Licensee will issue to UFRF, as of the Effective Date, *** shares of common stock of Licensee (collectively, the “First
Shares”). License represents and warrants that the First shares equal *** of the total number of issued and outstanding
shares of common stock of License on the Effective Date calculated on a Fully Diluted Basis.

 

2.1.2     License will issue to UFRF, as of the Effective Date, an additional *** shares of common stock of License (collectively, the “Second
Shares”). Licensee represents and warrants that the Second Shares shall be equal to at least *** of the total number of
shares of common stock of that are expected to be issued to meet the minimum in the Proposed Financing.

 

2.1.3     UFRF and Licensee agree that if the Proposed Financing is not completed on or before January 31, 2015, then License shall redeem,
and UFRF shall set to License, all of the Second Shares for total consideration of ***. If, however, the Proposed Financing is
completed on or before January 31, 2015, then Licensee shall not have the right pursuant to this Section 2.1.3 to redeem the Second
Shares.

 

2.1.4     If, at any time after the Effective Date and before completion of the Proposed Financing or before License receives a total of
*** cash in exchange for the issuance of Licensee’s Equity Securities, Licensee issues any Equity Securities directly or
through this Proposed Financing other than pursuant to the Proposed Financing, then License shall issue additional shares of common
stock to UFRF such that immediately after such issuance to UFRF the total number of shares issued to UFRF under this Section constitutes
*** of the total number of issued and outstanding shares of License calculated on a Fully Diluted Basis. License shall delver,
or cause to be delivered, to UFRF a stock certificate, duly signed by appropriate officers of License and issued in UFRF’s
name, representing all of the Shares required to be issued to UFRF.

 

2.1.5     All Shares shall be fully-paid and non-assessable upon their issuance to UFRF. UFRF’s execution of this Agreement and the
License Agreements shall be deemed full consideration for the issuance of the Shares, and no additional consideration for such
Shares shall be due from UFRF. No Shares shall be subject any restrictions on their transfer other than the restrictions specified
in Exhibit C hereto.

 

2.1.6     If UFRF owns *** or less of the outstanding shares of common stock of Licensee, or will own *** or less as a result of an initial
public offering by Licensee, but subject to the provisions of Section 6, UFRF’s shares will not be subject to any lock-up
requirement or other restriction on selling such shares, other than as required by law, in connection with the initial public
offering or any public offering by License thereafter.

 

2.1.7     If prior to completion of the Proposed Financing Licensee, at any time while UFRF owns Shares, shall issue any shares of Licensee’s
common stock (“Additional Shares”), at a price per share less than the Investment Price (as defined below), then the
number of Shares owned by UFRF shall be increased upon each such issuance by that amount (rounded to the nearest whole Share)
determined by multiplying the number of Shares then owned by UFRF by a fraction:

 

(a)           the numerator of which shall be equal to the number of shares of common stock outstanding immediately after the issuance of Additional
Shares, and

 

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(b)          the denominator of which shall be equal to the sum of (A) the number of shares of common stock outstanding immediately prior to
the issuance of Additional Shares plus (B) the number of shares of common stock (rounded to the nearest whole share) which the
aggregate consideration for the total number of Additional Shares so issued would purchase at the Investment Price.

 

For
purposes of this Section 2.1.5, “Investment Price” means the price per share paid by purchasers acquiring equity
securities of the Licensee in a transaction for aggregate consideration of at least ***. The issuance of securities that are convertible
into or exercisable or exchangeable for shares of Licensee’s common stock shall be deemed an issuance of Additional Shares
at such time if the consideration per share received by Licensee for the issuance of such convertible, exchangeable or exercisable
security, plus the consideration per share payable to Licensee upon exercise, exchange or conversion thereof, is less than the
Investment Price. In the event of a subdivision or combination of the outstanding common stock of Licensee, the Investment Price
shall be increased or decreased proportionately.

 

No
adjustment shall be made under this Section 2.1.5 with respect to the issuance of shares (a) to employees, consultants, officers
or directors of Licensee pursuant to any bona fide stock option plan of Licensee approved by the Board of Directors, (b) upon
any stock split or stock dividend, or (c) issued for fair value (as determined in good faith by the Board of Directors) pursuant
to the acquisition of any other company by Licensee by merger or purchase of substantially all of the assets or other reorganization.

 

2.2          Closing Deliveries

 

2.2.1     On the Effective Date, Licensee shall deliver to UFRF a certificate from Licensee, dated as of the Effective Date and signed by
the Secretary or an Assistant Secretary of Licensee, certifying that the attached copies of the Certificate of Incorporation,
Bylaws of Licensee, and resolutions of the Board of Directors of Licensee approving the License Agreements, this Agreement and
the transactions contemplated thereby, are all true, complete and correct and that such resolutions remain unamended and in full
force and effect; and

 

2.2.2     Within 30 days of the Effective Date, Licensee must deliver to UFRF stock certificates representing each of the First Shares and
the Second Shares, registered in the name of UFRF.

 

		Section 3.	Representations
                                         and Warranties

 

3.1          Representations and Warranties by License

 

Licensee
represents and warrants to UFRF that:

 

3.1.1      Licensee is a duly organized and validly existing corporation under the laws of the Province of Alberta with adequate power and
authority to conduct the business in which it is now engaged or currently proposed to be engaged. and Licensee is duly qualified
to do business as a foreign corporation and is in good standing in such other states or jurisdictions as is necessary to enable
it to carry on its business or own its properties.

 

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3.1.2     There are no actions, suits, or proceedings pending or threatened against or affecting Licensee, its officers or directors in
their capacity as such, its properties, or its patents in any court or before any governmental or administrative agency, which
can have any material adverse effect on the business as now conducted or as currently proposed to be conducted, on the properties,
the financial condition, or income of Licensee, or the transactions contemplated by this Agreement or the License Agreements and
Licensee is not in default under any order or judgment of any court or governmental or administrative agency.

 

3.1.3     Licensee is not a party to any agreement or instrument, or subject to any charter, bylaw, or other corporate restrictions materially
adversely affecting its business and operations, present or prospective, or its property, assets, or condition, financial or otherwise.

 

3.1.4     Licensee is not in default or breach in the performance, observance, or fulfillment of any of the obligations, covenants, or conditions
contained in any bond, debenture. note, or other evidence of indebtedness or any contract or other agreement of Licensee.

 

3.1.5     This Agreement has been duly authorized, executed, and delivered on behalf of Licensee and constitutes the valid and binding agreement
of Licensee, enforceable in accordance with its terms, and Licensee has full power and lawful authority to issue, sell, and repurchase
the Shares on the terms and conditions herein set forth.

 

3.1.6     Consummation of the transactions contemplated by this Agreement in compliance with provisions of this Agreement will not result
in any breach of any of the terms, conditions, or provisions of, or constitute a default under, or result in the creation of any
lien, charge, or encumbrance on, any property or assets of Licensee pursuant to any indenture, mortgage, deed of trust, agreement,
corporate charter, bylaws, contract, or other instrument to which Licensee is a party or by which Licensee may be bound or any
law, rule, regulation, qualification, license, order or judgment applicable to Licensee or any of its property.

 

3.1.7     Licensee is in compliance with all federal, state and local environmental laws and there are no conditions currently existing
or contemplated which are likely to subject Licensee to damages, penalties, injunctive relief. removal costs, remedial costs or
cleanup costs under any such laws or assertions thereof.

 

3.1.8     Attached hereto as Exhibit B and hereby made a part hereof are the Articles of Incorporation (including any amendments thereto)
Bylaws (including any amendments thereto) of Licensee in effect on the date hereof.***

 

3.1.9     Pursuant to its Articles of Incorporation wens e is authorized to issue unlimited shares of Common Stock, of which approximately
*** shares are issued and outstanding. All issued and outstanding shares are, and the Shares issuable to UFRF will be, validly
issued, fully paid and nonassessable, and are not subject to any preemptive rights. There are no other authorized or outstanding
Equity Securities of any class, kind, or character, and there are no outstanding subscriptions, options, warrants, or other agreements,
or commitments obligating Licensee to issue any additional shares of its capital stock of any class, or any options or rights
with respect thereto, or any securities convertible into any shares of stock of any class. No person has any preemptive rights,
rights of first refusal, “tag along” rights, rights of co-sale or any similar rights with respect to the issuance
of the Shares contemplated hereby.

 

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3.1.10   
Attached hereto as Exhibit C and hereby made a part hereof is a list of all restrictions on the transfer of any Shares or other
securities of Licensee and all agreements between any shareholders or convertible debt holders of Licensee regarding the valuation,
voting or transfer of any Shares or other securities of Licensee.

 

3.1.11   
Attached hereto as Exhibit D and hereby made a part hereof are the unaudited Financial Statements of Licensee for the year ended
December 31, 2013. These financial statements are true and complete and are in accordance with the books and records of Licensee.
As of the date of the most recent financial statements provided to UFRF under this Agreement, Licensee has no material liabilities,
absolute or contingent, that are not reflected in such financial statements except obligations incurred in the ordinary course
of business and the License Agreements.

 

3.1.12   
Since the date of the most recent financial statements provided to UFRF under this Agreement, there has been no: (a) material
adverse change in the condition, financial or otherwise, of Licensee other than changes in the ordinary course of business; (b)
damage or loss, whether or not covered by insurance, materially and adversely affecting Licensee’s properties or business
taken as a whole; and (c) declaration or setting aside, or payment of any dividend or other distribution in respect of the stock
of Licensee or any direct or indirect redemption, purchase or other acquisition of such shares.

 

3.1.13   
Licensee has timely filed all tax returns and reports required to be filed by it. Licensee has timely paid all taxes, interest
and penalties required to be paid pursuant to said returns or otherwise required to be paid by it.

 

3.1.14   
Attached hereto as Exhibit E is a true and complete record of (i) issued and outstanding shares of Common Stock as of the Effective
Date and the holders thereof, and (ii) shares issuable under options, warrants or other convertible equity or debt instruments
outstanding as of the Effective Date, whether vested or non-vested, restricted or unrestricted, the holders thereof, the exercise
price or conversion price thereof and an outline of all other material terms with respect thereto.

 

3.2         
Representations and Warranties by UFRF

 

UFRF
represents and warrants to Licensee that:

 

3.2.1     UFRF is acquiring the Shares for investment for its own account and not with a view to resale or distribution within the meaning
of the Securities Act, and UFRF does not intend to divide its participation with other or to resell or otherwise dispose of all
or any part of the Shares without registration under the Securities Act, except to Licensee or unless and until it determines
at some future date that changed circumstances, not now in its contemplation, make such disposition advisable.

 

3.2.2     This Agreement has been duly authorized, executed, and delivered on behalf of UFRF and constitutes the valid and binding agreement
of UFRF, enforceable in accordance with its terms, and UFRF has full power and lawful authority to acquire the Shares on the terms
and conditions herein set forth.

 

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3.3           Survival and Timing of Warranties

 

The
warranties and representation made in this Section 3 shall survive the closing of any issuance of the Shares to UFRF. The warranties
and representations made in this Section 3 shall be true and correct as of the date of this Agreement and as of the date the Shares
are issued to UFRF.

 

		Section 4.	Miscellaneous
                                         Covenants

 

4.1          Financial Statements and Other Information

 

As
long as UFRF owns any Equity Securities, Licensee shall promptly provide to UFRF such Financial Agreements, amendments to or restatements
of its Articles of Incorporation or Bylaws, stock transfer restrictions and agreements among shareholders with respect to the
valuation, transfer or voting of Shares and amendments thereto as may be effected from time to time, and such other information
respecting the business, affairs, and financial condition of Licensee as UFRF may reasonably request, in each case as and when
such information is provided to Licensee’s other shareholders.

 

Until
such time as the Proposed Financing is completed and Licensee through its merger with African Queen becomes a publicly reporting
company, Financial Statements shall be provided to UFRF within the time that such Financial Statements are required to be provided
to holders of preferred stock of Licensee and UFRF’s representatives may visit and inspect any of the properties, books
and information of Licensee, upon reasonable notice, during business hours and in a manner not disruptive to the business of the
Licensee. If subsequent to the Proposed Financing being completed and Licensee becoming publicly reporting company through its
merger with African Queen, Licensee is no longer a publicly reporting company, then UFRFs rights pursuant to this paragraph shall
be reinstated.

 

4.2          Preemptive Rights

 

4.2.1     In addition to its other rights under this Agreement, but only until the Proposed Financing is completed, UFRF shall have a preemptive
right to acquire such shares of Common Stock or other Equity Securities that may be issued, from time to time, by Licensee while
UFRF remains the owner of Equity Securities. Such preemptive right shall apply with respect to all Equity Securities issued by
Licensee after the Effective Date, whether such additional Equity Securities constitute a part of the Equity Securities presently
or subsequently authorized or constitute Equity Securities held in the treasury of Licensee, and regardless of whether such Equity
Securities are to be issued for cash, property (other than cash) or services. Such preemptive right shall not apply to (i) Equity
Securities issued pursuant to the acquisition of another corporation or business entity by Licensee or one or more of its wholly
owned subsidiaries by merger, consolidation, share exchange, purchase of substantially all the assets or other reorganization
whereby the shareholders of Licensee immediately prior to the transaction owns in the aggregate more than *** of the voting power
of Licensee or other surviving entity after the transaction; (ii) Equity Securities issued to employees, consultants or directors
of Licensee pursuant to any incentive agreement or arrangement approved by the Board of Directors of Licensee in an amount up
to *** of Licensee’s then outstanding shares; (iii) Equity securities issued pursuant to any stock dividend, stock split,
combination or other reclassification by Licensee of any of its capital stock; (iv) Equity Securities issued in connection with
real or personal property leases or loans or lines of credit from financial institutions. UFRF may transfer all or part of the
preemptive right described in this Section 4.2.1 to any entity to which UFRF has assigned its preemptive rights; or (v) the Proposed
Financing.

 

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4.2.2     In furtherance of the preemptive rights hereby granted UFRF, Licensee agrees to provide UFRF with not less than sixty (60) days
prior written notice (an “Equity Security Issuance Notice”) of its intent to issue any Equity Securities to
which the preemptive rights in this Section 4.2 apply. Such notice should specify in reasonable detail the Equity Securities to
be issued, including class, total number of shares and the applicable rights and preferences associated therewith, including,
if applicable, conversion rights into Shares, and the purchase price for the Equity Securities UFRF may purchase pursuant to its
preemptive rights hereby granted. UFRF shall have the right to acquire Equity Securities of the type being issued in an amount
equal to UFRF’s Proportionate Share Percentage of the aggregate Equity Securities of that type that are to be issued to
all persons or entities pursuant to that issuance. The terms and conditions of UFRF’s exercise of its preemptive rights,
including the consideration to be paid for such Equity Securities, shall be no less favorable to UFRF than the most favorable
price, terms and conditions offered to any other shareholder or prospective shareholder with respect to the Equity Securities
then being issued.

 

4.2.3     In order to exercise UFRF’s preemptive rights, UFRF shall deliver written notice thereof to Licensee within sixty (60) days
following its receipt of the Equity Security Issuance Notice to which such exercise relates, accompanied by full payment of the
purchase price for the Equity Securities to be purchased by UFRF in connection with the exercise of such preemptive rights. UFRF
may, at its option, exercise such preemptive rights to some or all of the Equity Securities to which it has preemptive rights
under this Section 4.2. In the event that any Equity Securities are to be issued by Licensee in return for property (other than
cash) or services, in calculating the purchase price of the Equity Securities with respect to which UFRF has preemptive rights
pursuant to this Section 4.2, the purchase price shall be equal to the fair market value of such property or services as determined
in good faith by the Board of Directors of Licensee.

 

4.3          Issuance of Shares/Options to Affiliates/Founders

 

Licensee
shall not issue any Equity Securities (including shares of Common Stock) to any of the shareholders of Licensee listed on Exhibit
A attached hereto (the “Founders”), Affiliate thereof or Affiliate of Licensee for less than the fair market
value of that security. Licensee shall have the burden of proving that the consideration to be paid for any such Equity Securities
equals the fair market value of such Equity Securities issued.

 

4.4          Piggyback Registration Rights

 

4.4.1     As soon as practicable after a written request from UFRF to effect a registration with respect to all or part of the Shares owned
by UFRF, Licensee will use its diligent best efforts to effect such Registration, cause it to become effective promptly and maintain
it as effective for at least thirty six (36) months (or less if all the Shares included therein are sooner sold), provided, however,
that no such request may be made until the six (6) month anniversary of the date that a Registration Statement covering an initial
public offering of shares of Common Stock is declared effective by the Commission (the “Trigger Date”), except
that this six-month period shall be extended to up to another six months if required by the underwriter for the initial public
offering. if so requested by UFRF, Licensee shall enter into an underwriting agreement in customary form with any underwriter
selected by UFRF with respect to such Registration. The provisions of this Section 4.4.1 shall terminate once the Shares owned
by UFRF become eligible for sale in the United Sates without restriction pursuant to Rule 144 (the “Termination Date”).

  

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4.4.2     If, after the Trigger Date but prior to the Termination Date, the Licensee proposes to register the sale any of its securities
with the Commission either for its own account or the account of a security holder or holders, other than a registration on any
form which does not permit secondary sales, Licensee will promptly give UFRF written notice thereof and include in such Registration
(and any related qualification under Blue Sky laws or other applicable laws), and in any underwriting involved therewith, all
of the Shares specified in a written request made by UFRF within twenty (20) days after Licensee’s written notice to UFRF.

 

4.4.3     All expenses incurred by Licensee and UFRF in connection with any Registration hereunder, including reasonable fees and disbursements
of accountants and counsel for UFRF, but excluding underwriting discounts and commissions and transfer taxes, shall be borne solely
by Licensee.

 

4.4.4     To the extent permitted by law, Licensee will indemnify UFRF and each of its officers, directors, and control persons (“UFRF
indemnified parties”) against all claims, losses, damages and liabilities (“Claims”) arising out
of on any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus or other document incident
to any such Registration, or any omission (or alleged omission) to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading (to the extent not made in reliance upon written information furnished
by UFRF specifically for use in such Registration) or any violation by Licensee of the Securities Act or the Exchange Act, and
will reimburse each UFRF indemnified party for any legal and other expenses reasonably incurred in connection with investigating
and defending or settling any such Claim.

 

4.5          Rule 144 Reporting

 

With
a view to making available to UFRF the benefits of certain rules and regulations of the Commission which may permit UFRF to sell
securities of Licensee to the public without registration, Licensee agrees to:

 

4.5.1     Make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at
all times following the effective date of the first registration under the Securities Act filed by Licensee with the Commission
for an offering of its securities to the general public;

 

4.5.2     Use its best efforts to file with the Commission in a timely manner all reports and other documents required of Licensee under
the Securities Act and the Exchange Act at any time following registration of any of its securities under the Securities Act or
Exchange Act; and

 

4.5.3     So long as UFRF owns any Shares, furnish to UFRF forthwith upon request a written statement by Licensee as to its compliance with
the reporting requirements of Rule 144 (at any time following the effective date of the first registration statement filed by
Licensee with the Commission for an offering of its securities to the general public), and of the Securities Act and the Exchange
Act following registration of any of its securities under the Securities Act or Exchange Act, a copy of the most recent annual
or quarterly report of Licensee, and such other reports and documents so filed as UFRF may reasonably request in availing itself
of any rule or regulation of the Commission allowing UFRF to sell any such securities without registration.

 

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4.6          Transfer or Assignment of Registration Rights

 

The
rights to cause Licensee to register the securities granted to UFRF hereunder may be transferred or assigned by UFRF to a transferee
or assignee of any of UFRF’s Shares; provided, however, that such transfer or assignment of Shares was permitted under this
Agreement.

 

		Section 5.	Tag-Along
                                         Rights

 

5.1          If at any time prior to an initial public offering, or Licensee becoming publicly traded through the Proposed Financing, any of
the shareholders set forth on Exhibit E (the “Disposing Shareholders”) propose to sell, in any one or more
private transactions, capital stock of Licensee which, in the aggregate, represents more than fifty percent (50%) of the outstanding
capital stock of Licensee on a fully-diluted basis to any one or more third parties (a “Third Party”), then
UFRF shall have the right to participate (a “Tag-along Right”) in such sale with respect to the Shares, on
a pro rata basis for the same consideration per share and otherwise on the same terms as the Disposing Shareholders. If circumstances
occur which give rise to the Tag-along Right, then the Disposing Shareholders shall give written notice to UFRF, providing the
particulars of the proposed sale to the Third Party and advising UFRF of its Tag-along Rights. UFRF may exercise its Tag-along
Right by written notice to the Company and the Disposing Shareholders within twenty-five (25) days of the date of mailing of the
Disposing Shareholders’ notice stating the number of shares that UFRF wishes to sell, up to the maximum permitted herein.
If UFRF gives written notice indicating that it wishes to sell, UFRF shall be obligated to sell that number of Shares specified
in its written acceptance notice upon the same terms and conditions as the Disposing Shareholders are selling to the Third Party
and shall not be subject to the requirements of Section 8. For purposes of this Section 5, “pro rata” means the percentage
derived by dividing the aggregate Shares then owned by UFRF by the aggregate Shares then owned by UFRF and the Disposing Shareholders.
The Company agrees to cause its shareholders, including those persons who become shareholders, from time to time in the future,
to enter into an agreement to carry out the provisions of this Section 5.1.

 

5.2          Upon receipt of such notice, Licensee shall tender the specified number of Shares, if any, at the same price applicable to the
Transferring Shareholders in the transaction. In each case, tender shall be made upon the same terms and conditions applicable
to the Transferring Shareholders in the transaction or, in the discretion of the acquirer or successor to Licensee, upon payment
of the purchase price to the Shareholder in immediately available funds.

 

		Section 6.	Termination

 

6.1          Unless terminated sooner by either party as provided below, this Agreement shall terminate on the date that UFRF, after having
been issued Shares hereunder, no longer owns any Equity Securities. If this Agreement terminates automatically as provided in
this Section 7, the License Agreements shall remain in effect according to the terms specified therein.

 

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6.2          If Licensee at any time fails to timely issue Shares to UFRF on a timely basis, or otherwise commits a material breach of this
Agreement, or if any of the representations or warranties made by Licensee are untrue in any material respect as of any date on
which they are required to be true and correct, and Licensee fails to remedy any such breach or default within thirty (30) days
after written notice thereof by UFRF, UFRF may, at its option, terminate either this Agreement, the License Agreements, or all
of them.

 

		Section 7.	Assignability

 

Except
as set forth in Section 4.6, neither party may assign its rights or obligations under this Agreement, except that Licensee may
assign this Agreement in connection with the sale of all or substantially all of the assets or stock of the Licensee, whether
by merger, acquisition or otherwise, if the successor assumes all of the Licensee’s obligations hereunder.

 

		Section 8.	Miscellaneous

 

This
Agreement shall be construed exclusively in accordance with the internal laws of the State of Florida.

 

		Section 9.	Notices

 

Any
notice required to be given pursuant to the provisions of this Agreement shall be in writing and shall be deemed to have been
given at the earlier of the time when actually received as a consequence of any effective method of delivery, including but not
limited to hand delivery, transmission by telecopier, or delivery by a professional courier service or the time when sent by certified
or registered mail addressed to the party for whom intended at the address below or at such changed address as the party shall
have specified by written notice, provided that any notice of change of address shall be effective only upon actual receipt:

 

to
UFRF:

 

University
of Florida Research Foundation, Inc.

204
Tigert Hall

PO
Box 113100

Gainesville,
Florida 32611-0001

Attention:
President

 

with
a copy to:

 

Office
of Technology Licensing

University
of Florida

Attention:
Director

747
SW Second Avenue

PO
Box 115575

Gainesville,
Florida 32611-5575

Attention:
Director

 

to
Licensee:

 

with
a copy to:

 

***

 

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		Section 10.	Integration

 

This
Agreement constitutes the full understanding between the parties with reference to the subject matter hereof, and no statements
or agreements by or between the parties, whether orally or in writing, except as provided for elsewhere in this 10, made prior
to or at the signing with respect to the subject matter hereof, shall vary or modify the written terms of this Agreement. Neither
party shall claim any amendment, modification, or release from any provisions of this Agreement by mutual agreement, acknowledgment
or otherwise, unless such mutual agreement is in writing, signed by the other party, and specifically states that it is an amendment
to this Agreement.

 

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IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the dates indicated below.

 

	UNIVERSITY
    OF FLORIDA RESEARCH FOUNDATION, INC.
	 
	/s/
    David L. Day	 	Date: 	June
    26, 2014
	David
    L. Day

    Director of Technology Licensing	 	 
	 	 	 
	XORTX Pharma Corp.

                                                                      

	By: 	/s/
    Allen Davidoff	 	Date: 	June
    23, 2014
	 	 
	Name
    and Office:	Allen
    Davidoff, President & CEO
	 
	Reviewed
    by UFRF’s Attorney:
	 	 
	(name
    typed)
	(Attorney
    shall not be deemed a signatory to this Agreement.)
	 	 	 	 	 	 	 

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Exhibit
A - Definitions In Equity Agreement

 

(1)       “Common
Stock” shall mean shares of Licensee’s common stock, $0.50 par value per share.

 

(2)       “Dollars”
as used in this Agreement shall mean Canadian dollars.

 

(3)       “License
Agreements” shall mean the license agreements entered into between UFRF and Licensee of even date herewith pertaining to
each Licensed Patent Group, as such term is defined in each License Agreement.

 

(4)       “Affiliate”
shall mean any person who is related by blood or marriage to any person or entity who owns more than twenty percent of the issued
and outstanding shares of Licensee or to any officer, director, or employee of Licensee or any entity in which any such person
has a direct or indirect beneficial ownership interest or for which any such person serves as a director, officer or employee.

 

(5)       “Financial
Statements” shall mean a balance sheet, and the related statements of earnings, stockholders’ equity and cash flow
as of the end of the last fiscal year that has been completed when the statements are to be provided to UFRF and a balance sheet
and income statement as of the end of the last fiscal quarter, which financial statements shall be in the form and delivered at
the time that such financial statements are delivered to holders of preferred stock of Licensee. Financial Statements shall be
true and complete and prepared in accordance with the books and records of Licensee and with generally accepted accounting principles.

 

(6)       “Equity
Securities” shall mean the shares of Common Stock, any other capital stock of Licensee (including preferred shares), and
any securities of Licensee that are convertible into capital stock of Licensee or that carry a right to subscribe to or acquire
capital stock of Licensee.

 

(7)       “Register,”
“Registered,” and “Registration” shall refer to a registration for the sale of securities effected by
preparing and filing with the Commission a Registration Statement in compliance with the Securities Act, and the declaration or
ordering of the effectiveness of such Registration Statement by the Commission.

 

(8)       “Registration
Statement” means a registration statement filed under the Securities Act that covers the sale of any equity securities.

 

(9)       “Proportionate
Share Percentage” with respect to UFRF, for purposes of Section 4.2, shall mean the percentage derived by dividing the aggregate
Shares then owned by UFRF by the total number of issued and outstanding Shares on an as-converted basis at such time.

 

(10)       “Securities
Act” shall mean the Securities Act of 1933, as amended, or any similar U.S. federal statute, and the rules and regulations
of the Securities and Exchange Commission issued under such act, as they each may, from time to time, be in effect.

 

(11)       “Commission”
shall mean the U.S. Securities and Exchange Commission or any other U.S. federal agency at the time administering the Securities
Act.

 

(12)       “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

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(13)       “Proposed
Financing” means that certain transaction by and between Licensee and *** pursuant to which (a) Licensee shall be merged
into *** (b) be the surviving entity, with the shareholders of Licensee immediately preceding the completion of the transaction
owning more than 50% of the outstanding shares of *** immediately following completion of the merger before taking into account
the shares of *** to be issued in the Proposed Financing and (c) upon the consummation of the transaction *** shall have received
at least *** in capital form the sale of its securities in one or more financings completed by no later than January 31, 2015.

 

(14)       “Shares”
shall mean the shares of Common Stock issuable to UFRF under this Agreement (i.e. the First Shares and the Second Shares).

 

(15)       “Fully
Diluted Basis” means assuming the conversion of all outstanding convertible securities and the exercise of all outstanding
options, warrants and other similar securities, regardless of whether such securities, options or warrants are then convertible
or exercisable.

 

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Exhibit
B – Articles of Incorporation and Bylaws

 

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Exhibit
C - Stock Restrictions

 

(1)       Restrictive
Legend.

 

Each
certificate representing (i) the Shares and (ii) any other securities issued in respect of the Shares upon any stock split, stock
dividend, recapitalization, merger, consolidation or similar event, shall (unless otherwise permitted by the provisions of Section
(2) below) be stamped or otherwise imprinted with a legend in substantially the following form (in addition to any legend required
under applicable state securities laws).

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY
NOT BE SOLD, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS, OR THE AVAILABILITY OF AN EXEMPTION FROM
THE REGISTRATION PROVISIONS OF THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS.

 

Each
holder consents to Licensee’s making a notation on its records and giving instructions to any transfer agent of the Shares
in order to implement the restrictions on transfer established in this Section (1). Such legend shall be removed by Licensee from
any certificate at such time as the holder of the Shares represented by the certificate satisfies the requirements of Rule 144(k)
under the Securities Act, provided that Rule 144(k) as then in effect does not differ substantially from Rule 144(k) as in effect
as of the date of this Agreement and other applicable regulations do not then require such legend to be included on the Shares,
and provided further that Licensee has received from the holder a written representation that (i) such holder is not an Affiliate
of Licensee and has not been an Affiliate during the preceding three months, (ii) such holder has beneficially owned the Shares
represented by the certificate for a period of at least two years, (iii) such holder otherwise satisfies the requirements of Rule
144(k) as then in effect with respect to such Shares, and (iv) such holder will submit the certificate for any such Shares to
Licensee for reapplication of the legend at such time as the holder becomes an Affiliate of Licensee or otherwise ceases to satisfy
the requirements of Rule 144(k) as then in effect.

 

(2)       Notice
of Proposed Transfers.

 

The
holder of each certificate representing Shares by acceptance thereof agrees to comply in all respects with the provisions of this
Section (2). Prior to any proposed sale, assignment, transfer or pledge of Shares, unless there is in effect a registration statement
under the Securities Act covering the proposed transfer, the holder thereof shall give written notice to the Licensee of such
holder’s intention to effect such transfer, sale, assignment or pledge in sufficient detail. Each certificate evidencing
the Shares transferred as above provided shall bear, except if such transfer is made pursuant to Rule 144, the appropriate restrictive
legend set forth in Section (1) above. Prior to any transfer of the Shares in accordance with this Section (2), such transferee
shall execute and deliver a form of agreement reasonably acceptable to the Licensee wherein the transferee agrees to be bound
by the provisions of this Exhibit C.

 

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(3)       Transfer
to Competitor.

 

No
holder shall transfer any Shares to a competitor of Licensee, as determined by the Board of Directors of Licensee in good faith.
This provision shall terminate after the closing of the sale of Equity Securities of Licensee registered with the Commission pursuant
to a Registration Statement filed under the Securities Act.

 

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Exhibit
D - Financial Statements

 

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Exhibit
E - List of Stockholders and Optionholders

 

    19 of 19

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