QLT INC/BC
AMENDED AND RESTATED LICENCE AGREEMENT
<DOCUMENT>
<TYPE>EX-10.40
<SEQUENCE>2
<FILENAME>o39293exv10w40.htm
<DESCRIPTION>AMENDED AND RESTATED LICENCE AGREEMENT
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<TITLE>Amended and Restated Licence Agreement</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXHIBIT 10.40</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>CONFIDENTIAL TREATMENT REQUESTED BY QLT INC.</B></U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>Amended and Restated License Agreement</B></FONT>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">BETWEEN:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>the University of British Columbia</B>,</FONT> a corporation continued
under the <I>University Act </I>of British Columbia and having its
administrative offices at 2075 Wesbrook Mall, in the City of
Vancouver, in the Province of British Columbia, V6T 1W5
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">(the &#147;<B><I>University</I></B>&#148;)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">AND:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-variant: SMALL-CAPS"><B>QLT Inc.</B></FONT>, a British Columbia company, having a place of
business at 887 Great Northern Way, Vancouver, British Columbia,
Canada, V5T 4T5
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">(the &#147;<B><I>Licensee</I></B>&#148;)
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>WHEREAS:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A.&nbsp;The University has been engaged in research during the course of which it has invented,
developed and/or acquired certain technology relating to <B>&#091;**&#093; </B>compounds, therapies and/or uses as
set out on Schedules &#147;<B><I>A</I></B>&#148; and &#147;<B><I>B</I></B>&#148;, which schedules shall be updated annually;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">B.&nbsp;The University and the Licensee have agreed that all research conducted by the University or the
Licensee prior to the Commencement Date of this Agreement (as hereinafter defined) which has
resulted in the invention, development and/or acquisition of the technology set out in Schedules
&#147;<B><I>A</I></B>&#148; and &#147;<B><I>B</I></B>&#148; was conducted under the direction of the principal investigators, <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">C.&nbsp;The technology described on Schedule &#147;<B><I>B</I></B>&#148; was invented, developed and/or acquired under the
direction of <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>as a faculty member of the University together with employees of the
Licensee or other third parties;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">D.&nbsp;The University has granted to the Licensee a number of separate licenses set out on Schedule &#147;<B><I>C</I></B>&#148;
(collectively, the &#147;<B><I>Existing License Agreements</I></B>&#148;) with respect to the technology identified on
Schedules &#147;<B><I>A</I></B>&#148; and &#147;<B><I>B</I></B>&#148;;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">E.&nbsp;It is the intention of the University and the Licensee to enter into this license agreement to
amend and restate any and all of the Existing License Agreements on terms and conditions set out
herein; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">F.&nbsp;The University is desirous of entering into this Agreement with the objective of furthering
society&#146;s use of its advanced technology, and to generate further research in a manner consistent
with its status as a non-profit, tax exempt educational institution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the premises and of the
mutual covenants herein set forth, the parties hereto have covenanted and agreed as follows:
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>1. DEFINITIONS:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.1 In this Agreement, unless a contrary intention appears, the following words and phrases shall
mean:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Accounting</I></B>&#148;: means an accounting statement setting out in detail how the
amount of Revenue was determined,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Affiliated Company</I></B>&#148; or &#147;<B><I>Affiliated Companies</I></B>&#148;: means two or more corporations
where the relationship between them is one in which one of them is a subsidiary of the
other, or both are subsidiaries of the same corporation, or fifty percent (50%) or more
of the voting shares of each of them is owned by the same person, corporation or other
legal entity,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Confidential Information</I></B>&#148;: means any part of the Information which is
furnished by either party to the other and designated at that time as confidential,
whether orally or in writing but excluding any part of the Information:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>possessed by the Recipient prior to receipt from the Discloser,
as evidenced by the Recipient&#146;s business records;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>published or available to the general public otherwise than
through a breach of this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtained by the Recipient from a third party with a valid
right to disclose it, provided that said third party is not known by the
Recipient to be under a confidentiality obligation to the Discloser; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>independently developed by employees, agents or consultants of
the Recipient who had no knowledge of or access to the Confidential Information
as evidenced by the Recipient&#146;s business records,</TD>
</TR>

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</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Date of Commencement</I></B>&#148; or &#147;<B><I>Commencement Date</I></B>&#148;: means this Agreement will be
deemed to have come into force on the Date of Commencement which shall be the 1st day
of January, [**], and shall be read and construed accordingly,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Discloser</I></B>&#148;: means a party to this Agreement providing its Confidential
Information to the other party as Recipient,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Effective Date of Termination</I></B>&#148;: means the date on which this Agreement is
terminated pursuant to Article&nbsp;18,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Improvements</I></B>&#148;: means, collectively, the QLT Improvements and the UBC
Improvements,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Information</I></B>&#148;: means any and all Technology and any and all Improvements and
any and all oral, written, electronic or other communications and other information
disclosed or provided by one party to the other including any and all analyses or
conclusions drawn or derived therefrom regarding this Agreement and information
developed or disclosed hereunder, or either party&#146;s raw materials, processes,
formulations, analytical procedures, methodologies, products, samples and specimens or
functions,</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Patents</I></B>&#148;: means, collectively, the patents and patent applications listed in
Schedules &#147;<B><I>A</I></B>&#148; and &#147;<B><I>B</I></B>&#148;, including any patents or patent applications that may be added
to Schedules &#147;<B><I>A</I></B>&#148; and &#147;<B><I>B</I></B>&#148; from time to time, and any counterparts,
Continuations-In-Part, renewals, divisionals, reissues, corresponding international
patent applications, continuations and any patents resulting therefrom, and which have
not yet expired or been abandoned;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Product(s)</I></B>&#148;: means goods manufactured using the Technology or Improvements,
including Visudyne;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>QLT Improvements</I></B>&#148;: means any and all patentable improvements, variations,
updates, modifications, enhancements and alterations related to the Technology which
are conceived, invented, developed and/or acquired by the Licensee (but not jointly by
the Licensee and the University) at any time which claim priority from any of the
patents or patent applications which comprise the Technology and cannot be used or
practised without a licence of Technology;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>QLT New Technology</I></B>&#148;: means any new discovery or invention, whether patentable
or not, which:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is conceived, invented, developed and/or acquired by the
Licensee (but not jointly by the Licensee and the University), at any time, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is not a QLT Improvement, a UBC Improvement or UBC New
Technology;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Recipient</I></B>&#148;: means a party to this Agreement receiving Confidential
Information of the other party as Discloser;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Retirement Date</B>&#148; means March&nbsp;31, <B>&#091;**&#093;</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Revenue</I></B>&#148;: means, without duplication, all revenues, receipts, monies, and the
fair market value of all other consideration received, whether by way of cash or credit
or any <B>&#091;**&#093; </B>or any other licensee or party claiming a right by or through such party,
from the marketing, manufacturing, sale, licensing, or distribution of the Technology,
Improvements, Visudyne and/or other Products in any or all parts of the world where the
Licensee is permitted by law and this Agreement to market, sell or distribute
Technology, Improvements, Visudyne and/or other Products, less the following deductions
to the extent included in the amounts invoiced and thereafter actually allowed and
taken:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%"><B>&#091;**&#093;</B>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Without limiting the generality of the foregoing, Revenue shall also include,
without duplication, all initial license fee payments (or any share thereof) made to
the Licensee, <B>&#091;**&#093; </B>pursuant to each sublicense agreement entered into by the
Licensee relating to the Technology and any Improvements, Visudyne and/or other
Products. For greater clarity, it is confirmed that Revenue shall only include
<B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>received by the Licensee in excess of the direct reimbursement for
the actual costs (including overhead for which the Licensee has been reimbursed) of
such <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>incurred by the Licensee pursuant to a written <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>
agreement. Where any Revenue is derived from a country other than Canada it shall
be converted to the equivalent in Canadian dollars at the rate of exchange set by
the Licensee&#146;s
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">principal bank for buying such currency on the Royalty Due Dates. The amount of
Canadian dollars pursuant to such conversion shall be included in the Revenue.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%"><B>&#091;**&#093;</B>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Royalty Due Dates</I></B>&#148;: the last working day of March, June, September and
December of each and every year during which this Agreement remains in full force and
effect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(q)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Technology</I></B>&#148;: the Patents together with any and all compounds, knowledge,
know-how and/or technique or techniques invented, developed and/or acquired, prior to
the Commencement Date by: (i)&nbsp;the University; or (ii)&nbsp;jointly by the University and the
Licensee; relating to the Patents, as amended from time to time, including, without
limitation, all research, data, specifications, instructions, manuals, papers or other
materials of any nature whatsoever, whether written or otherwise, relating to same,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(r)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>UBC Improvements</I></B>&#148;: Any and all improvements, variations, updates,
modifications, enhancements and alterations related to the Technology, including all
improvements, variations, updates, modifications, enhancements and alterations relating
to photodynamic compounds or therapies, which are conceived, invented, developed and/or
acquired solely by UBC Personnel, or by UBC Personnel jointly with the Licensee at any
time after the Commencement Date, whether patentable or not,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if patentable, claim priority from any of the patents or patent
applications which comprise the Technology and can not be used or practiced
without a licence of Technology,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if not patentable, which relate directly to the Technology, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>inventions or developments by <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>relating to
<B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(s)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>UBC New Technology</I></B>&#148;: any new discovery or invention, whether patentable or
not, which:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is conceived, invented, developed and/or acquired by UBC
Personnel (but not jointly by the Licensee and the University) which relate to
the Technology, at any time, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is not a UBC Improvement, a QLT Improvement, or QLT New
Technology;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(t)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>UBC Personnel</I></B>&#148; shall mean all persons employed by or attending the University
including without limitation, University faculty members, research associates,
post-doctoral fellows, graduate students and undergraduate students and staff, <B>&#091;**&#093;</B>
and, for the period prior to the Retirement Date, <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top">**</SUP><B>&#093;</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(u)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>UBC Trade-marks</I></B>&#148;: any mark, trade-mark, service mark, logo, insignia, seal,
design, symbol, or device used by the University in any manner whatsoever; and</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->





<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B><I>Valid Patent Claim</I></B>&#148; means a claim in any unexpired Patent which forms a part
of the Technology, which:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>is part of a pending application for a Patent which claim has
not been held invalid; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>has matured into an issued patent which has not been held
invalid by a non-appealed or unappealable decision by a court or other
appropriate body of competent jurisdiction.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">The scope of a Valid Patent Claim shall be limited to its terms as set forth in the
Patent itself or as defined by any court or appropriate body of competent
jurisdiction.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>(w)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<I>Visudyne</I>&#148;: <B>&#091;**&#093;</B>.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>2. PROPERTY RIGHTS IN AND TO THE TECHNOLOGY:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.1 The parties hereto hereby acknowledge and agree that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the University owns any and all right, title and interest in and to:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Technology that was conceived, invented, developed and/or
acquired solely by UBC Personnel;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any UBC Improvements that are conceived, invented, developed
and/or acquired solely by UBC Personnel; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any UBC New Technology;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Licensee shall own any and all right, title and interest in and to:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the QLT Improvements; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the QLT New Technology.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the University and the Licensee shall jointly own any and all right, title and
interest in and to:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Technology that was conceived, invented, developed and/or
acquired jointly by UBC Personnel and the Licensee; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any UBC Improvements that are conceived, invented, developed
and/or acquired jointly by UBC Personnel and the Licensee.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.2 The parties shall enter into such further agreements and execute any and all documents as may
be required to ensure that ownership of the Technology, any Improvements, UBC New Technology, and
QLT New Technology vest with, or remains with, the parties as set out in Article&nbsp;2.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.3 Not less than once per year during each and every year of the term of this Agreement, the
parties shall exchange in writing the details of any and all Improvements which the University or
the Licensee have developed and/or acquired during the previous twelve month period.
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3. GRANT OF LICENSE:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.1 In consideration of the royalty payments reserved herein, and the covenants on the part of the
Licensee contained herein, the University hereby grants to the Licensee an exclusive, worldwide
license to use and sublicense the Technology, all UBC Improvements and to manufacture, distribute,
and sell Products on the terms and conditions hereinafter set forth during the term of this
Agreement (the &#147;<B><I>License Grant</I></B>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.2 For greater clarity it is confirmed that nothing in this Agreement, and in particular Article
3.1, shall be interpreted as granting to the Licensee any license or right to the UBC New
Technology.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.3 Subject to Article&nbsp;4.1, the license granted herein is personal to the Licensee and is not
granted to any Affiliated Company or Affiliated Companies.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>3.4 &#091;**&#093;</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.5 Notwithstanding Article&nbsp;3.1 herein, the parties acknowledge and agree that the University may
use the Technology and Improvements without charge in any manner whatsoever for non-commercial
research, scholarly publication, educational or other non-commercial use. The Licensee hereby
grants to the University a worldwide, non-exclusive license to use the QLT Improvements without
charge in any manner whatsoever for non-commercial research, scholarly publication, educational or
other non-commercial use.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.6 The Licensee shall give written notice to the University if its chief place of business in a
jurisdiction outside British Columbia, prior to beginning business in that other jurisdiction. The
inadvertent failure of the Licensee to comply with this Section&nbsp;3.6 shall not give rise to a right
of termination by the University under Section&nbsp;18.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.7 This Agreement amends and restates the Existing License Agreements. As between the University
and the Licensee, the Existing License Agreements described on Schedule &#147;<B><I>C</I></B>&#148; hereto shall hereby be
terminated and of no further force or effect. To the extent such Existing License Agreements have
third party signatories, the University and the Licensee agree that they shall make reasonable
efforts to execute, together with such third parties, a termination agreement with respect to all
of the Existing License Agreements. The rights granted by the Licensee to the Technology and UBC
Improvements prior to the date of execution of this Agreement are not subject to Article&nbsp;4 or the
other obligations to be imposed on sublicensees set out in this Agreement. Royalties and other
payments paid by the Licensee to the University in respect of the Existing License Agreements prior
to the Commencement Date shall be retained by the University without credit therefor hereunder,
and, in respect of periods prior to the Commencement Date for which the Licensee has not yet made a
royalty payment to the University pursuant to the Existing License Agreements, the Licensee shall
make royalty payments in accordance with the terms of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>4. SUBLICENSING:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1 The Licensee shall have the right to grant sublicenses to Affiliated Companies and other third
parties with respect to the Technology and any UBC Improvements without the prior written consent
of the University. The Licensee will furnish the University with a copy of each sublicense granted
within 30&nbsp;days after execution.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.2 Any sublicense granted by the Licensee shall contain covenants by the sublicensee to observe
and perform similar terms and conditions to those in Schedule &#147;<B>D</B>&#148; to
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">this Agreement. The University acknowledges and agrees that this Section&nbsp;4.2 shall not apply to
the <B>&#091;**&#093; </B>dated <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>between Licensee and <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>5. ROYALTIES:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.1 In consideration of the license granted hereunder, the Licensee shall pay to the University a
royalty as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>of all Revenue derived from Visudyne</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>of all Revenue derived from the Technology listed in Schedule
&#147;<B><I>A</I></B>&#148; (as amended from time to time). whether or not such Revenue is also derived from
Technology listed in Schedule &#147;<B><I>B</I></B>&#148;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>of all Revenue derived from the Technology listed in Schedule
&#147;<B><I>B</I></B>&#148; (as amended from time to time);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>of all Revenue derived from any UBC Improvement; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>of all Revenue derived from any QLT Improvement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For greater clarity it is confirmed that the royalty rates in paragraphs 5.1(a), (b), (c), (d)&nbsp;and
(e)&nbsp;are not intended to be cumulative and that only a single royalty not less than <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>,
and not greater than <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>, shall be payable with respect to the Revenue received or
derived from any Product. For further clarity, the royalties due pursuant to paragraphs 5.1 (a),
(b), (c), (d)&nbsp;and (e)&nbsp;shall be payable for so long as <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.2 The royalty rates set in Article&nbsp;5.1(b), (c), (d)&nbsp;and (e)&nbsp;will be reduced by up to
<B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>for any Product (other than Visudyne) which satisfies (and continues to satisfy)
each of the following <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>conditions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For greater certainty, notwithstanding anything in this Article&nbsp;5.2, the final royalty payable by
the Licensee to the University shall not be less than <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>of the Royalties determined
in accordance with Article&nbsp;5.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The royalty shall become due and payable within 60&nbsp;days of each respective Royalty Due Date and
shall be calculated with respect to the Revenue received by the Licensee in the three month period,
immediately preceding the applicable Royalty Due Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.3 All payments of royalties made by the Licensee to the University hereunder shall be made in
Canadian dollars without any reduction or deduction of any nature or kind whatsoever, except as may
be prescribed by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.4 Visudyne and all other Products shall be deemed to have been sold and included in the Revenue
by:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Licensee when Revenue is actually received, provided that the Licensee
diligently pursues same; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any sublicensee when Revenue is reported to the Licensee by such sublicensee.</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.5 Subject only to Articles 5.6 and 5.7, any transaction, disposition, or other dealing involving
the Technology or Improvements or any part thereof between the Licensee or any sublicensee and
another person that is not made at fair market value shall be deemed to have been made at fair
market value, and the fair market value of that transaction, disposition, or other dealing shall be
added to and deemed part of the Revenue and shall be included in the calculation of royalties under
this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.6 No royalties will be payable on:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Products used in research, pre-clinical trials, clinical trials or for
compassionate use for which the Licensee does not receive consideration;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>payments made to the Licensee other than those on account of Revenue, or any
amounts received by the Licensee as reimbursement for direct out of pocket expenses
(including overhead for which the Licensee has been reimbursed) incurred and charged by
the Licensee for further research, development or regulatory approval of the
Technology, Improvements or Products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>sales among the Licensee, its Affiliates, sublicensees and sub-sublicensees or
other licensees, but royalties shall be payable on all sales by the Licensee, its
Affiliates, sublicensees, or sub-sublicensees to a third party (other than an
Affiliate, sublicensee, sub-sublicensee or other licensee).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.7 If at any time, and from time to time, a third party in any country shall, under the right of a
<B>&#091;**&#093;</B>, by a competent governmental authority, manufacture, use or sell any Product with respect to
which royalties would otherwise be payable pursuant to this Agreement, then the Licensee may
<B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>in such country of Product to an amount <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>by said party as
consideration for the <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>6. ANNUAL LICENSE FEE:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6.1 In further consideration for the license granted hereunder, the Licensee shall pay to the
University, in addition to all other amounts due under this Agreement, an annual maintenance fee of
<B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>(Canadian funds) payable on or before the anniversary of the Commencement Date, and
annually thereafter during the term of this Agreement (the &#147;<B><I>Annual Maintenance Fee</I></B>&#148;). Neither all
nor any part of the Annual Maintenance Fee paid shall be refundable to the Licensee under any
circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>7. PATENTS:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.1 The parties acknowledges that the ownership of the Patents and patent applications are as set
forth in Schedules &#147;<B><I>A</I></B>&#148; and &#147;<B><I>B</I></B>&#148;, notwithstanding the manner in which ownership is registered in any
patent office in any jurisdiction and which Schedules shall be updated by mutual agreement not less
than once a year during the term of this Agreement (the &#147;<B><I>Patent Portfolio</I></B>&#148;), which updating shall
include the addition of all Improvements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.2 Subject to Article&nbsp;7.5, the Licensee shall prudently manage the Patent Portfolio and shall take
all reasonable steps as may be required to protect and preserve the Patent Portfolio. The Licensee
agrees to pay all costs in relation to the management of the Patent Portfolio and any further
applications made by the Licensee pursuant to Article&nbsp;7.4 incurred after the date of execution of
this Agreement. Without limiting the generality of the forgoing the Licensee agrees to pay for all
costs with respect to the Patents, patent applications, divisionals, substitutions, continuations,
continuations in part, all claims of foreign patent applications and
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">any and all patents relating to the Technology and any UBC Improvements licensed hereunder, and
with respect to any and all maintenance fees for any and all patents relating to the Technology and
any UBC Improvements licensed hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.3 Within 30&nbsp;days of presentation of receipts and/or invoices by the University to the Licensee,
the Licensee will reimburse the University for all costs incurred to date with respect to any and
all patents relating to the Technology and any UBC Improvements licensed hereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.4 The Licensee shall have the right to apply for further patents in other jurisdictions, or
continuations, continuations-in-part, divisions, reissues, re-examinations or extensions of the
Patents, or any further applications made hereunder, in the name of the University with respect to
the Technology or any UBC Improvement that may be patentable, and the Licensee shall pay all costs
of applying for, registering and maintaining the same. <B>&#091;**&#093;</B>. In the event that this Agreement is
terminated for any reason whatsoever, the Licensee shall pay all outstanding costs relating to such
patent applications and shall direct the patent agents responsible for such patent applications to
take all further instructions, if any, relating to such applications from the University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.5 Should the Licensee decide to:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>discontinue pursuing patent protection in relation to the Patent Portfolio, or
any continuation, continuation-in-part, division, re-issue, re-examination or extension
of the patents in the Patent Portfolio, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not pursue patent protection in relation to the Patents in the Patent Portfolio
in any jurisdiction, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>discontinue or not pursue patent protection in relation to any further process,
use or products arising out of the Technology or UBC Improvements in any jurisdiction,</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">then the Licensee shall provide the University with a minimum of 60&nbsp;days written notice of its
decision to discontinue or not to pursue such patent protection (the &#147;<B><I>Discontinued Patent</I></B>&#148;) in
sufficient time for the University to file a patent application, or continue pursuing an existing
patent application. During the 60&nbsp;day transition period, the Licensee shall be responsible for all
costs of filing, prosecuting and maintaining the Patent Portfolio. After the 60&nbsp;day transition
period, provided that the University diligently pursues such Discontinued Patent application, or
maintains any existing registration for the Discontinued Patent, the Discontinued Patent shall be
excluded from the License Grant under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.6 For the purposes of greater clarity, the parties agree that should the Licensee decide not to
pursue patent protection in relation to the Patents in a specific jurisdiction other than the
<B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>, for reasonable commercial reasons, this shall not invoke the provisions of Article
7.5.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.7 The Licensee shall provide to the University once each year during the term of this Agreement a
report of all patents filed and/or maintained in the preceding twelve month period relating to the
Technology, UBC Improvements and QLT Improvements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.8 In the event of the issuance of any new patent for use of the Technology or any UBC
Improvements, the Licensee shall have the right to become, and shall become the Licensee, of the
same without charge, all pursuant to the terms contained herein.
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.9 During the term of this Agreement, without the consent of the University, the Licensee shall
not contest the validity or scope of any University patent including any Patent(s) in the Patent
Portfolio.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7.10 The Licensee will ensure proper patent marking for all Technology and any UBC Improvements
licensed hereunder and, where reasonable to do so, shall clearly mark the appropriate patent
numbers on any Products made using the Technology and any UBC Improvements or any patented
processes used to make such Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>8. DISCLAIMER OF WARRANTY:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.1 Except as expressly set out in this Agreement, the University makes no representations,
conditions, or warranties, either express or implied, with respect to the Technology, or any
Improvements, or any Products. Without limiting the generality of the foregoing, the University
specifically disclaims any implied warranty, condition, or representation that the Technology, or
any Improvements, or any Products:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shall correspond with a particular description;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are of merchantable quality;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are fit for a particular purpose; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are durable for a reasonable period of time.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The University shall not be liable for any loss, whether direct, consequential, incidental, or
special which the Licensee suffers arising from any defect, error, fault, or failure to perform
with respect to the Technology or any Improvements, or any Products, even if the University has
been advised of the possibility of such defect, error, fault, or failure. The Licensee
acknowledges that it has been advised by the University to undertake its own due diligence with
respect to the Technology, and any Improvements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.2 The parties acknowledge and agree that the <I>International Sale of Goods Act </I>and the United
Nations Convention on Contracts for the International Sale of Goods have no application to this
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.3 Except as expressly set out in this Agreement, nothing in this Agreement shall be construed as:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a warranty or representation by the University as to title to the Technology
and/or any Improvement, or that anything made, used, sold or otherwise disposed of
under the license granted in this Agreement is or will be free from infringement of
patents, copyrights, trade-marks, industrial design or other intellectual property
rights,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>an obligation by the University to bring or prosecute or defend actions or
suits against third parties for infringement of patents, copyrights, trade-marks,
industrial designs or other intellectual property or contractual rights, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the conferring by the University of the right to use in advertising or
publicity the name of the University or UBC Trade-marks.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.4 Except as previously disclosed in writing by one Party to the other, the Parties warrant that,
to the best of their knowledge, without making any enquiry, as of the date of execution of this
Agreement, in respect of the Technology which is identified in the unmodified
</DIV>
</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Schedules &#147;<B>A</B>&#148; and &#147;<B>B</B>&#148; as of the date of execution of this Agreement, all inventors listed therein
have assigned their rights in the Patents to the respective Party, and no claims have been filed
and served on such party or threatened in writing in respect of the Technology.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.5 Notwithstanding Article&nbsp;8.3, in the event of an alleged infringement of the Technology or any
UBC Improvements or any right with respect to the Technology or any UBC Improvements, the Licensee
shall have, the right to prosecute litigation designed to enjoin infringers of the Technology or
any UBC Improvements. The University agrees to provide reasonable cooperation to the Licensee, to
the extent of executing all necessary documents and to vest in the Licensee the right to institute
any such suits, so long as all the direct or indirect costs and expenses of bringing and conducting
any such litigation or settlement shall be borne by the Licensee and in such event all recoveries
shall enure to the Licensee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8.6 In the event that any complaint alleging infringement or violation of any patent or other
proprietary rights is made against the Licensee or a sublicensee of the Licensee with respect to
the use of the Technology or any UBC Improvements, or the manufacture, use or sale of any Products,
the following procedure shall be adopted:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Licensee shall promptly notify the University upon receipt of any such
complaint and shall keep the University fully informed of the actions and positions
taken by the complainant and taken or proposed to be taken by the Licensee on behalf of
itself or a sublicensee,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>except as provided in Article&nbsp;8.5(d), all costs and expenses incurred by the
Licensee or any sublicensee of the Licensee in investigating, resisting, litigating and
settling such a complaint, including the payment of any award of damages and/or costs
to any third party, shall be paid by the Licensee or any sublicensee of the Licensee,
as the case may be,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>solely to the extent that any final disposition of the litigation that will
restrict the claims in or admit any invalidity of any Patent(s) or significantly
adversely affect the University&#146;s rights, no such disposition of the litigation shall
be taken without full consultation with and approval by the University, not to be
unreasonably withheld or delayed,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the University may elect to participate formally in any litigation involving
the complaint to the extent that the court may permit, but any additional expenses
generated by such formal participation shall be paid by the University (subject to the
possibility of recovery of some or all of such additional expenses from the
complainant).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9. INDEMNITY AND LIMITATION OF LIABILITY:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.1 The Licensee hereby indemnifies, holds harmless and defends the University, its Board of
Governors, officers, employees, faculty, students, invitees, and agents against any and all claims
(including all legal fees and disbursements incurred in association therewith) arising out of the
exercise of any rights under this Agreement including, without limiting the generality of the
foregoing, against any damages or losses, consequential or otherwise, arising from or out of the
use of the Technology or any Improvements or any Products licensed under this Agreement by the
Licensee or its sublicensees, or their customers or end-users howsoever the same may arise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.2 Subject to Article&nbsp;9.3, the University&#146;s total liability, whether under the express or implied
terms of this Agreement, in tort (including negligence), or at common law, for any loss or damage
suffered by the Licensee, whether direct, indirect, special, or any other similar or like
</DIV>
</DIV>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">damage that may arise or does arise from any breaches of this Agreement by the University, its
Board of Governors, officers, employees, faculty, students, or agents shall be limited to the <B>&#091;**&#093;</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.3 In no event shall the University be liable for <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>arising from any breach or
breaches of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>9.4 &#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>10. PUBLICATION AND CONFIDENTIALITY:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.1 The Discloser&#146;s Confidential Information shall be developed, received, and used by the
Recipient solely in furtherance of the purposes set forth in this Agreement subject to the terms
and conditions set forth in this Article&nbsp;10.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.2 The Recipient shall keep and use all of the Confidential Information in confidence and will
not, without the Discloser&#146;s prior written consent, disclose any Confidential Information to any
person or entity, except those of the Recipient&#146;s officers, faculty, students, staff, employees,
consultants, agents and assigns who require said Confidential Information in performing their
obligations under this Agreement. The Recipient covenants and agrees that it will initiate and
maintain an appropriate internal program limiting the internal distribution of the Confidential
Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.3 The Recipient shall not use, either directly or indirectly, any Confidential Information for
any purpose other than as contemplated herein without the Discloser&#146;s prior written consent.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.4 In the event that the Recipient is required by judicial or administrative process to disclose
any or all of the Confidential Information, the Recipient shall promptly notify the Discloser, and
when available, shall allow the Discloser reasonable time to oppose such process before disclosing
any Confidential Information.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.5 Notwithstanding any termination or expiration of this Agreement, the obligations created in
this Article&nbsp;10 shall survive and be binding upon the Recipient, its successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.6 Notwithstanding, Articles 10.1, 10.2, 10.3 and 10.8, the University shall not be restricted
from presenting at symposia, national or regional professional meetings, or from publishing in
journals or other publications accounts of its research relating to the Information, provided that
with respect to Confidential Information only, the Licensee shall have been furnished copies of the
disclosure proposed therefor at least 30&nbsp;days in advance of the date for submission of same for
presentation or publication and does not within 30&nbsp;days after receipt of the proposed disclosure
object to such presentation or publication. Any objection to a proposed presentation or
publication shall specify the portions of the presentation or publication considered objectionable
(the &#147;<B><I>Objectionable Material</I></B>&#148;). Upon receipt of notification from the Licensee that any proposed
publication or disclosure contains Objectionable Material, the University and the Licensee shall
work together to revise the proposed publication or presentation to remove or alter the
Objectionable Material in a manner acceptable to the Licensee, in which case the Licensee shall
withdraw its objection. In the event that an objection is made, disclosure of the Objectionable
Material shall not be made for a period of 6&nbsp;months after the date the Licensee has received the
proposed publication or presentation relating to the Objectionable Material. The University shall
co-operate in all reasonable respects in making revisions to any proposed disclosures if considered
by the Licensee to contain Objectionable Material. The University shall not be restricted from
publishing or presenting the proposed
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">disclosure as long as the Objectionable Material has been removed. After the 6&nbsp;month period has
elapsed, the University shall be free to present and/or publish the proposed publication or
presentation, whether or not it contains Objectionable Material. In respect of any disclosures made
pursuant to this Section, at the Licensee&#146;s request, the Licensee&#146;s Confidential Information shall
be deleted therefrom prior to such disclosure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.7 The Licensee requires of the University, and the University agrees insofar as it may be
permitted to do so at law, that this Agreement, and each part of it, is confidential and shall not
be disclosed to third parties, as the Licensee claims that such disclosure would or could reveal
commercial, scientific or technical information and would significantly harm the Licensee&#146;s
competitive position and/or interfere with the Licensee&#146;s negotiations with prospective
sublicensees. Notwithstanding anything contained in this Article, the parties hereto acknowledge
and agree that the University may identify the title of this Agreement, the parties to this
Agreement, and the names of the inventors of the Technology and any UBC Improvements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10.8 The parties acknowledge that: (a)&nbsp;this Agreement is in part, a license of know-how, and (b)
the definition of Confidential Information contained herein applies only to Information disclosed
by one party to the other; and (c)&nbsp;Information regarding the Technology may have arisen at the
University, and (d)&nbsp;the University would have no obligation of confidence in respect of such
Information without this Section&nbsp;10.8. Notwithstanding the definition of Confidential Information
contained in this Agreement, the University shall use reasonable efforts to maintain the
confidentiality of the Information arising at the University respecting the Technology and the
Improvements, unless same is Information falling within the terms of Section&nbsp;1.1(c)(ii) or
(iii).Notwithstanding the rest of this Article&nbsp;10, the Licensee&#146;s obligations of confidence and use
respecting the University&#146;s Confidential Information are subject to the Licensee&#146;s rights to
disclose and use the Technology and UBC Improvements in the exercise of the Licensee&#146;s rights under
the License Grant in Article&nbsp;3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>11. PRODUCTION AND MARKETING:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.1 The Licensee shall not use any of the UBC Trade-marks or make reference to the University or
its name in any advertising or publicity whatsoever, without the prior written consent of the
University, except as required by law. Without limiting the generality of the foregoing, neither
party shall issue a press release with respect to this Agreement or any activity contemplated
herein without the prior review and approval of same by the other party, except as required by law.
If either party is required by law to act in contravention of this Article, such party shall
provide the other party with sufficient advance notice in writing to permit the other party to
bring an application or other proceeding to contest the requirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.2 The Licensee represents and warrants to the University that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has the infrastructure, expertise and resources to develop and commercialize
the Technology and any UBC Improvements;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has the infrastructure, expertise and resources to track and monitor on an
ongoing basis performance under the terms of each sublicense agreement entered into by
the Licensee; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it has the infrastructure, expertise and resources to initiate and maintain an
appropriate program limiting the distribution of the University&#146;s Confidential
Information, Technology and any UBC Improvements, and any related biological materials
as set out in this Agreement.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.3 Subject to the following, the Licensee shall use reasonable efforts to develop and, subject
to obtaining regulatory approval, promote, market and sell Products and utilize the
</DIV>
</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Technology and any UBC Improvements and to meet or cause to be met the market demand for Products
and the utilization of the Technology and any UBC Improvements on a product-by-product basis. The
University acknowledges that, with respect to Visudyne and the Technology and any UBC Improvements
respecting Visudyne, the Licensee shall be deemed to be making such reasonable efforts so long as
Visudyne is being marketed. Without limiting the generality of the foregoing, the Licensee
covenants and agrees that it shall notify the University in writing if it no longer intends to
proceed with the development and commercialization of any of Product embodying any material part of
the Technology or UBC Improvements (the &#147;<B>Non-Commercialized Technology</B>&#148;). Upon the University&#146;s
receipt of such written notice, the Non-Commercialized Technology shall be excluded from the
License Grant under this Agreement and if jointly owned by the Licensee and the University shall be
<B>&#091;**&#093;</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.4 In the event that the University is of the view that the Licensee is in breach of Article
11.3, the University shall notify the Licensee in writing, specifying the portion of the Technology
or UBC Improvements for which it alleges that the Licensee has not used reasonable efforts as
specified in Article&nbsp;11.3 (the &#147;<B>Disputed Technology</B>&#148;). The parties shall use good faith efforts to
resolve the matter for a period of sixty (60)&nbsp;days following receipt of written notice by the
Licensee. If the parties fail to resolve the matter within that time period, they shall appoint a
mutually acceptable person as an independent evaluator (the &#147;<B>Evaluator</B>&#148;) to conduct the evaluation
set forth in Article&nbsp;11.5. In the event that the parties cannot agree on such an Evaluator, the
appointing authority shall be the British Columbia International Commercial Arbitration Centre.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.5 Unless the parties mutually agree otherwise, the following rules and procedures shall govern
the conduct of the parties and the Evaluator before and during the investigation by the Evaluator:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>within 30&nbsp;days of the appointment of the Evaluator each party shall provide to
the Evaluator and the other party copies of all documents, statements and records on
which the party intends to rely in presenting its position to the Evaluator;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>within 45&nbsp;days of the appointment of the Evaluator the Licensee shall provide
to the Evaluator and the University a written summary of its position respecting the
Disputed Technology. On receipt of the Licensee&#146;s summary the University shall have 15
days to prepare and submit to the Licensee and the Evaluator its own summary in reply
to the summary submitted by the Licensee;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on receipt of the documents, statements, records and summaries submitted by the
parties the Evaluator shall have 30&nbsp;days within which to conduct such further inquiries
as he or she may deem necessary for the purpose of reviewing the efforts made by the
Licensee with respect to the Disputed Technology in compliance with the requirements of
Article&nbsp;11.3. For the purpose of conducting such an inquiry, the Evaluator shall have
the right to:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>require either party to disclose any further documents or
records which the Evaluator considers to be relevant;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>interview or question either orally (or by way of written
questions) one or more representatives of either party on issues deemed to be
relevant by the Evaluator;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make an &#147;on site&#148; inspection of the Licensee&#146;s facilities;</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->





<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>obtain if necessary, the assistance of an independent expert to
provide technical information with respect to any area in which the Evaluator
does not have a specific expertise;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on completion of the Inquiry described in Article&nbsp;11.5(c), the Evaluator shall
within 15&nbsp;days prepare a report setting out his or her findings and conclusions as to
whether or not the Licensee has used reasonable efforts as specified in Article&nbsp;11.3
respecting the Disputed Technology. If the Evaluator has determined that the Licensee
has failed to use reasonable efforts as specified in Article&nbsp;11.3 respecting the
Disputed Technology, then the Evaluator shall also specify in the report his or her
conclusions as to what would constitute such reasonable efforts, and the Licensee shall
thereafter make the efforts so specified. If the Licensee fails to make such efforts,
after notice of default provided in accordance with the terms of Article&nbsp;18, then the
University&#146;s sole remedy for failure to make the efforts specified in Articles 11.3 and
11.5(d) respecting the Disputed Technology shall be, at the Licensee&#146;s option, either:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>that the Disputed Technology shall be excluded from the License
Grant under this Agreement and, if owned by the Licensee, shall be assigned by
the Licensee to the University without payment of any consideration by the
University; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the remedies set out in Article&nbsp;18.9 respecting the Disputed
Technology.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.6 The University may not call for more than one evaluation pursuant to Article&nbsp;11.4 in any three
year period. The cost of an evaluation hereunder shall be borne by the unsuccessful party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>12. ACCOUNTING RECORDS:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.1 The Licensee shall maintain at its principal place of business, or such other place as may be
most convenient, separate accounts and records of all Revenues, and all business done pursuant to
this Agreement, such accounts and records to be in sufficient detail to enable proper returns to be
made under this Agreement, and the Licensee shall cause its sublicensees to keep similar accounts
and records.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.2 The Licensee shall deliver to the University on the date 60&nbsp;days after each and every Royalty
Due Date, together with the royalty payable thereunder, the Accounting and a report on all
sublicensing activity, including an accounting statement setting out in detail how the amount of
Revenue was determined and identifying each sublicensee and the location of the business of each
sublicensee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.3 The calculation of royalties shall be carried out in accordance with generally accepted
Canadian accounting principles (&#147;GAAP&#148;), or the standards and principles adopted by the U.S.
Financial Accounting Standards Board (&#147;FASB&#148;) applied on a consistent basis.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.4 The Licensee shall retain the accounts and records referred to in Article&nbsp;12.1 above for at
least <B>&#091;**&#093; </B>years after the date upon which they were made and shall permit on reasonable notice,
and no more than once every year, any duly authorized representative of the University to inspect
such accounts and records during normal business hours of the Licensee at the University&#146;s expense.
The Licensee shall furnish such reasonable evidence as such representative will deem necessary to
verify the Accounting and will permit such representative to make copies of or extracts from such
accounts, records and agreements at the University&#146;s
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">expense. If an inspection of the Licensee&#146;s records by the University shows an under-reporting or
underpayment by the Licensee of any amount to the University, in excess of <B>&#091;**&#093;</B>, then the Licensee
shall reimburse the University for the cost of the inspection as well as pay to the University any
amount found due <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>within 30&nbsp;days of notice by the University to the Licensee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12.5 During the term of this Agreement and thereafter, the University shall use reasonable efforts
to ensure that all information provided to the University or its representatives pursuant to this
Article remains confidential and is treated as such by the University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13. INSURANCE:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">13.1 Unless satisfactory arrangements are made between the Licensee and the University with respect
to a self-insurance program or the requirement for insurance hereunder is waived by the University
sixty (60)&nbsp;days prior to the commencement of any human clinical trials or other Product testing
involving human subjects by the Licensee or any sublicensee, the Licensee shall procure and
maintain, during the term of this Agreement, the insurance outlined in Articles 13.2 and 13.3 and
otherwise comply with the insurance provisions contained in Articles 13.2 and 13.3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">13.2 The Licensee shall give written notice to the University:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>30&nbsp;days prior to the commencement of the first of any human clinical trials
involving any Product testing involving human subjects by the Licensee or any
sublicensee, (&#147;<B><I>Human Clinical Trials</I></B>&#148;), and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>30&nbsp;days prior to the first sale of any Product by the Licensee or any
sublicensee</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of the terms of the appropriate product liability and clinical trials insurance which it has
placed. Such insurance shall in no case be less than the insurance which a reasonable and prudent
businessperson carrying on a similar line of business would acquire. To the extent available to a
reasonable and prudent businessperson carrying on a similar line of business: (a)&nbsp;this insurance
shall be placed with a reputable and financially secure insurance carrier; (b)&nbsp;shall include the
University, its Board of Governors, faculty, officers, employees, students, and agents as
additional insureds; and (c)&nbsp;shall provide primary coverage with respect to the activities
contemplated by this Agreement. Failing the parties agreeing on the appropriate terms or the
amount of coverage, then the matter shall be determined by arbitration as provided for herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">13.3 The Licensee shall provide the University with certificates of insurance evidencing such
coverage 30&nbsp;days before commencement of Human Clinical Trials and 30&nbsp;days prior to the sales of any
Product and the Licensee covenants not to start Human Clinical Trials, unless the insurance
outlined in Article&nbsp;13.1 or 13.2 is in effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>13.4 The Licensee shall require that each sublicensee under this Agreement shall either:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>14. ASSIGNMENT:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">14.1 Except as expressly permitted hereby, the Licensee will not assign, transfer, mortgage, charge
or otherwise dispose of any or all of the rights, duties or obligations granted to it under this
Agreement without the prior written consent of the University, which consent will not be
unreasonably withheld. Notwithstanding the foregoing, the Licensee shall have the right to
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">assign to an Affiliated Company, any entity with which it may merge or amalgamate, or an entity
that acquires all or most of the assets related to the Technology, the rights granted hereunder
with respect to the UBC Improvements, and/or any Products.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">14.2 The University shall have the right to assign its rights, duties and obligations under this
Agreement to a company or society of which it is the sole shareholder in the case of a company or
of which it controls the membership, in the case of a society, in either case, if such company or
society acquires all or most of the University&#146;s assets related to the Technology and the UBC
Improvements. In the event of such an assignment, the Licensee will release, remise and forever
discharge the University from any and all obligations or covenants, provided however that such
company or society, as the case may be, executes a written agreement which provides that such
company or society shall assume all such obligations or covenants from the University and that the
Licensee shall retain all rights granted to the Licensee pursuant to this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>15. GOVERNING LAW AND ARBITRATION:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">15.1 This Agreement shall be governed by and construed in accordance with the laws of the Province
of British Columbia and the laws of Canada in force therein without regard to its conflict of law
rules. All parties agree that by executing this Agreement they have attorned to the jurisdiction
of the Supreme Court of British Columbia. Subject to Article&nbsp;15.2 and 15.3, the British Columbia
Supreme Court shall have exclusive jurisdiction over this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">15.2 In the event of any dispute arising between the parties concerning this Agreement, its
enforceability or the interpretation thereof, the same shall be settled by a single arbitrator
appointed pursuant to the provisions of the Commercial Arbitration Act of British Columbia, or any
successor legislation then in force. The place of arbitration shall be Vancouver, British
Columbia. The language to be used in the arbitration proceedings shall be English.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">15.3 Nothing in Article&nbsp;15.2 shall prevent a party hereto from applying to a court of competent
jurisdiction for interim protection such as, by way of example, an interim injunction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">15.4 Notwithstanding the rest of this Article&nbsp;15, if a ruling by a court or arbitral authority on
any dispute between the Licensee and a sublicensee, regarding the interpretation of the
sublicensee&#146;s sublicense agreement, could reasonably effect the interpretation of this Agreement,
then on receipt of notice of such a dispute from the Licensee, the University may elect to apply to
join in such proceeding. If:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the University is permitted to join in such proceeding it shall be bound by the
decision of such court or arbitral authority, in so far as such decision reasonably
effects the interpretation of this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the University elects not to join in such proceeding (for reasons other not
being permitted to join) then the University hereby agrees to be bound by the decision
of such court or arbitral authority, in so far as such decision reasonably effects the
interpretation of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the University is not permitted to join in such proceeding, then the
University shall not be bound by the decision of such court or arbitral authority.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If the Licensee and the University retain common counsel to represent them for the purposes of any
such proceeding, then the Licensee shall bear all costs of such counsel. If the University retains
independent counsel, then the Licensee will bear one-half of the cost of such counsel.
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>16. NOTICES:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">16.1 All payments, reports and notices or other documents that any of the parties hereto are
required or may desire to deliver to any other party hereto may be delivered only by personal
delivery or by registered or certified mail, or fax, all postage and other charges prepaid, at the
address for such party set forth below or at such other address as any party may hereinafter
designate in writing to the others. Any notice personally delivered or sent by fax shall be deemed
to have been given or received at the time of delivery, or faxing. Any notice mailed as aforesaid
shall be deemed to have been received on the expiration of five days after it is posted, provided
that if there shall be at the time of mailing or between the time of mailing and the actual receipt
of the notice a mail strike, slow down or labour dispute which might affect the delivery of the
notice by the mails, then the notice shall only be effected if actually received.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="83%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to the University:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">The Director</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">University &#151; Industry Liaison Office</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">University of British Columbia</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">#103 &#151; 6190 Agronomy Road</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vancouver, British Columbia</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">V6T 1Z3</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (604)-822-8580</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (604)-822-8589</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">If to the Licensee:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attention: President and Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">QLT Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">887 Great Northern Way</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vancouver, B.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">V5T 4T5</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (604)-707-7000</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (604)-707-7001</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">Attention: Legal Department</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">QLT Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">887 Great Northern Way</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vancouver, B.C.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">V5T 4T5</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Telephone: (604)-707-7000</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fax: (604)-707-7001</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>17. TERM:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">17.1 This Agreement and the license granted hereunder shall terminate on the expiration of a term
of <B>&#091;**&#093;</B>, whichever event shall last occur unless earlier terminated pursuant to Article&nbsp;18 herein.
Upon the later of the expiry of the term of <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>, the Licensee shall thereafter have in
perpetuity, a fully paid up world-wide, exclusive license to use and sublicense the Technology and
UBC Improvements and to manufacture, distribute, and sell any Products, without further accounting
to the University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>18. DEFAULT AND TERMINATION:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18.1 This Agreement shall automatically and immediately terminate without notice to the Licensee if
any proceeding under the <I>Bankruptcy and Insolvency Act </I>of Canada, or any other statute of similar
purport, is commenced by or against the Licensee, provided that if such proceedings are initiated
against the Licensee by a third party and are not initiated by the
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Licensee, the Licensee shall have a 60&nbsp;day period following the commencement of any such
proceedings to discharge such proceedings, and, if such proceedings are discharged within such
period, the termination shall be of no effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18.2 The University may, at its option, terminate this Agreement immediately on the happening of
any one or more of the following events by delivering notice in writing to that effect to the
Licensee:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if any resolution is passed by the Licensee or voluntary order made or other
steps taken by the Licensee for the winding up, liquidation or other termination of the
existence of the Licensee other than as a result of a disposition of its substantially
all of its assets to another party,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Licensee ceases to carry on its business other than as a result of a
disposition of its substantially all of its assets to another party,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Licensee commits a material breach of the requirement to obtain and
maintain insurance pursuant to Article&nbsp;13.4,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if, as a result of the operation of Articles 11.3 or 11.5(d), no Technology or
UBC Improvements remain subject to the License Grant under this Agreement</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18.3 Other than as set out in Articles 18.1 and 18.2, if either party shall be in material default
under or shall fail to comply with the material terms of this Agreement then the non-defaulting
party shall have the right to terminate this Agreement by written notice to that effect if:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such default is reasonably curable within 30&nbsp;days after receipt of notice of
such default and such default or failure to comply is not cured within 30&nbsp;days after
receipt of written notice thereof, or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>such default is not reasonably curable within 30&nbsp;days after receipt of written
notice thereof, and such default or failure to comply is not cured within such further
reasonable period of time as may be necessary for the curing of such default or failure
to comply.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18.4 If this Agreement is terminated pursuant to Article&nbsp;18.1 or 18.2, or 18.3 the Licensee shall
make royalty payments to the University in the manner specified in Article&nbsp;5, and 6 and the
University may proceed to enforce payment of all outstanding royalties or other monies owed to the
University and to exercise any or all of the rights and remedies contained herein or otherwise
available to the University by law or in equity, successively or concurrently at the option of the
University.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18.5 Upon any termination of this Agreement, the Licensee shall:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>except as required by law, deliver up to the University within a reasonable
time, not to exceed six months from the Effective Date of Termination, all Technology
and any UBC Improvements in its possession or control (except for a copies retained for
record keeping purposes) and shall thereafter have no further right of any nature
whatsoever in the Technology or any UBC Improvements.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>have a reasonable time to liquidate its inventory of Products, provided that
such period shall not exceed six months from the Effective Date of Termination. The
Licensee shall then deliver or cause to be delivered to the University an accounting
within 210&nbsp;days from the Effective Date of Termination. The accounting will specify,
in or on such terms as the University may in its</TD>
</TR>

</TABLE>
</DIV></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #textcolor#; background: #bgcolor#">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>reasonable discretion require, the inventory or stock of Products manufactured and
remaining unsold on the Effective Date of Termination. The Licensee will continue to
make royalty payments to the University in the same manner specified in Article&nbsp;5
and 6 on all unsold Products that are sold in accordance with this Article&nbsp;18.5(b),
notwithstanding anything contained in or any exercise of rights by the University
under Article&nbsp;18.5 herein.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18.6 Except as required by law, upon any termination of this Agreement, each party shall cease to
use the Confidential Information of the other party, and upon written request and at the option of
the other party, shall deliver or destroy (and certify the destruction) of all copies of same.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18.7 Notwithstanding the termination of this Agreement, Article&nbsp;12 shall remain in full force and
effect until <B>&#091;**&#093; </B>years after
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all payments of royalty required to be made by the Licensee to the University
under this Agreement have been made by the Licensee to the University, and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any other claim or claims of any nature or kind whatsoever of the University
against the Licensee has been settled.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18.8 In the event that this Agreement is terminated, any sublicense granted by the Licensee under
this Agreement shall be assigned by QLT to the University and shall remain in full force and effect
between the sublicensee and the University, except that the University&#146;s obligations thereunder
shall be no greater than the University&#146;s obligations under this Agreement. At the request of the
Licensee, the University shall acknowledge to a sublicensee the University&#146;s obligations to the
sublicensee under this Section.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18.9 Except as otherwise expressly set out in this Agreement, including Articles 18.1, 18.2 and
18.3, the University and the Licensee agree that, in the event of breach of this Agreement by the
Licensee, the University&#146;s sole remedies shall be:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>a judgement for payment of any and all monetary amounts that are due and owing
by the Licensee to the University pursuant to this Agreement and enforcement of any
such judgement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>injunctive relief to enjoin further breach of this Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>specific performance by the Licensee of the Licensee&#146; obligations hereunder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>damages; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>recovery of costs associated with seeking and obtaining such judgement,
injunctive relief, specific performance or damages.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The University may exercise the foregoing remedies concurrently.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>19. MISCELLANEOUS COVENANTS OF LICENSEE:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19.1 Licensee will provide to the University such reasonable assistance, necessary background and
additional information as may be required by the University in determining an equitable sharing of
revenues with the inventors of the Technology.
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19.2 The Licensee hereby represents and warrants to the University that QLT Inc. is a corporations
duly organized, existing, and in good standing under the laws British Columbia and has the power,
authority, and capacity to enter into this Agreement and to carry out the transactions contemplated
by this Agreement, all of which have been duly and validly authorized by all requisite corporate
proceedings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19.3 The Licensee represents and warrants that it has the expertise necessary to handle the
Technology and any UBC Improvements with care and without danger to the Licensee, its employees,
agents, or the public. The Licensee shall not accept delivery of the Technology or any UBC
Improvements until it has requested and received from the University all necessary information and
advice to ensure that it is capable of handling such Technology and any UBC Improvements in a safe
and prudent manner.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19.4 The Licensee shall comply in all material respects with all laws, regulations and ordinances,
whether Federal, State, Provincial, County, Municipal or otherwise with respect to the Technology
and any UBC Improvements and/or this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>19.5 &#091;**&#093;</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19.6 The Licensee shall pay all taxes and any related interest or penalty howsoever designated and
imposed as a result of the existence or operation of this Agreement, including, but not limited to,
tax which the Licensee is required to withhold or deduct from payments to the University. The
Licensee will furnish to the University such evidence as may be required by Canadian authorities to
establish that any such tax has been paid. <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19.7 <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>to the appropriate governmental authority, and <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>with proof of
payment of such income tax together with official or other appropriate evidence issued by the
appropriate governmental authority sufficient to enable <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19.8 The obligations of the Licensee to make all payments hereunder will be absolute and
unconditional and will not except as expressly set out in this Agreement, be affected by any
circumstances, including without limitation any set-off, compensation, counterclaim, recoupment,
defence or other right which the Licensee may have against the university, or anyone else for any
reason whatsoever.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19.9 All amounts due and owing to the University hereunder but not paid by the Licensee on the due
date thereof shall bear interest in Canadian dollars at the rate of <B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093; </B>per annum
calculated annually not in advance. Such interest shall accrue on the balance of unpaid amounts
from time to time outstanding from the date on which portions of such amounts become due and owing
until payment thereof in full.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>20. GENERAL:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.1 On reasonable notice, the Licensee shall permit any duly authorized representative of the
University during normal business hours and at the University&#146;s sole risk and expense to enter upon
and into any premises of the Licensee for the purpose of inspecting any Products and the manner of
their manufacture and generally of ascertaining whether or not the provisions of this Agreement
have been, are being, or will be complied with by the Licensee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.2 Nothing contained herein shall be deemed or construed to create between the parties hereto a
partnership or joint venture. No party shall have the authority to act on behalf of any other
party, or to commit any other party in any manner or cause whatsoever or to use any other party&#146;s
name in any way not specifically authorized by this Agreement. No party shall be
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->22<!-- /Folio -->





<DIV align="left" style="font-size: 10pt; margin-top: 6pt">liable for any act, omission, representation, obligation or debt of any other party, even if
informed of such act, omission, representation, obligation or debt.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.3 Subject to the limitations hereinbefore expressed, this Agreement shall enure to the benefit
of and be binding upon the parties, and their respective successors and permitted assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.4 No condoning, excusing or overlooking by any party of any default, breach or non-observance by
any other party at any time or times in respect of any covenants, provisos, or conditions of this
Agreement shall operate as a waiver of such party&#146;s rights under this Agreement in respect of any
continuing or subsequent default, breach or non-observance, so as to defeat in any way the rights
of such party in respect of any such continuing or subsequent default or breach and no waiver shall
be inferred from or implied by anything done or omitted by such party, save only an express waiver
in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.5 No exercise of a specific right or remedy by any party precludes it from or prejudices it in
exercising another right or pursuing another remedy or maintaining an action to which it may
otherwise be entitled either at law or in equity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.6 Marginal headings as used in this Agreement are for the convenience of reference only and do
not form a part of this Agreement and are not be used in the interpretation hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.7 The terms and provisions, covenants and conditions contained in this Agreement which by the
terms hereof require their performance by the parties hereto after the expiration or termination of
this Agreement shall be and remain in force notwithstanding such expiration or other termination of
this Agreement for any reason whatsoever.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.8 In the event that any Article, part, section, clause, paragraph or subparagraph of this
Agreement shall be held to be indefinite, invalid, illegal or otherwise voidable or unenforceable,
the entire agreement shall not fail on account thereof, and the balance of the Agreement shall
continue in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.9 The parties hereto acknowledge that the law firm of Richards Buell Sutton has acted solely for
the University in connection with this Agreement and that all other parties hereto have been
advised to seek independent legal advice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.10 Subject to Article&nbsp;3.7, this Agreement sets forth the entire understanding between the
parties and replaces any and all previous License Agreements regarding the Technology and
Improvements between the parties to this Agreement. No modifications hereof shall be binding
unless executed in writing by the parties hereto.
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->23<!-- /Folio -->

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20.11 Whenever the singular or masculine or neuter is used throughout this Agreement the same shall
be construed as meaning the plural or feminine or body corporate when the context or the parties
hereto may require.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">IN WITNESS WHEREOF the parties hereto have hereunto executed this Agreement on the
14<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of December, 2007 but effective as of the Date of Commencement.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SIGNED FOR AND ON BEHALF of</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>THE UNIVERSITY OF BRITISH COLUMBIA</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">by its duly authorized officers:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Angus Livingston
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Authorized Signatory
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="line-height: 24pt"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Authorized Signatory
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-variant: SMALL-CAPS"><B>QLT Inc.</B></FONT></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Per:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Bob Butchofsky
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Authorized Signatory
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Cameron Nelson
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Authorized Signatory
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->24<!-- /Folio -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>SCHEDULE &#147;<B><I>A</I></B>&#148;</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>DESCRIPTION OF TECHNOLOGY AND IMPROVEMENTS &#151; <B>&#091;</B>**<B>&#093; </B>ROYALTIES</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->25<!-- /Folio -->





<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>SCHEDULE &#147;<B><I>B</I></B>&#148;</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>DESCRIPTION OF TECHNOLOGY AND IMPROVEMENTS &#151; <B>&#091;**&#093; </B>ROYALTY</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;</B><SUP style="font-size: 85%; vertical-align: text-top"><B>**</B></SUP><B>&#093;</B>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->





<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>SCHEDULE &#147;<B><I>C</I></B>&#148;</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>EXISTING LICENSE AGREEMENTS</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;**&#093;</B>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->





<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>SCHEDULE &#147;<B><I>D</I></B>&#148;</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>SUBLICENSE TERMS</U>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;**&#093;</B>
</DIV>



<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">**</TD>
    <TD>&nbsp;</TD>
    <TD>Confidential Treatment Requested.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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