Cardiome
pharma corp.
Common Shares
At Market Issuance Sales Agreement
February 18, 2014
MLV & Co. LLC
1251 Avenue of the Americas
41st Floor
New York, New York 10020
Ladies and Gentlemen:
Cardiome Pharma Corp.
(the “Company”), a corporation formed under the Canada Business Corporations Act (the “CBCA”),
confirms its agreement (this “Agreement”) with MLV & Co. LLC (“MLV”), as follows:
1. Issuance
and Sale of Shares.
(a) From
time to time during the term of this Agreement, on the terms and subject to the conditions set forth herein, the Company may issue
and sell through MLV, acting as agent, common shares (the “Placement Shares”) of the Company (the “Common
Shares”), having an aggregate offering price of up to U.S. $30,000,000; provided, however, that in no event shall
the Company issue or sell through MLV such number of Placement Shares for which the aggregate offering price exceeds the aggregate
dollar amount of Common Shares registered on the Registration Statement (as defined below) pursuant to which the offering is being
made (taking into account all current and future prospectus supplements filed with respect to the Registration Statement and any
post-effective amendments thereto); provided, further, that with respect to “at-the-market” distributions of
Placement Shares, the market value of the Placement Shares distributed under any single Prospectus Supplement (defined below) shall
not exceed 10% of the aggregate market value of the Company’s outstanding Common Shares as of the date specified in Section
9.1 of National Instrument 44-102—Shelf Distributions (“NI 44-102”), which shall be calculated in accordance
with Section 9.2 of NI 44-102 (the “Maximum Amount”). Notwithstanding anything to the contrary contained herein,
compliance with the limitations set forth in this Section 1 and Part 9 of NI 44-102 on the amount of Placement Shares issued
and sold under this Agreement shall be the sole responsibility of the Company, and MLV shall have no obligation in connection with
such compliance. The issuance and sale of Placement Shares through MLV will be effected pursuant to the Registration Statement
filed by the Company and declared effective by the Securities and Exchange Commission (the “Commission”), although
nothing in this Agreement shall be construed as requiring the Company to use the Registration Statement to issue Common Shares.
(b) Short
Form Prospectus. The Company has prepared and filed with the British Columbia Securities Commission (the “BCSC”)
and the other Canadian provincial securities regulatory authorities other than the Québec Autorité
des marchés financiers (the BCSC and such other regulatory authorities, collectively, the “Canadian
Commissions”), a preliminary short form base prospectus, dated January 29, 2014. relating to the offering of up to an
aggregate amount of $250,000,000 of Common Shares, preferred shares, debt securities, and warrants or any combination thereof (collectively,
the “Securities”) and a final short form base shelf prospectus, dated February 13, 2014 in respect of offers
and sales, from time to time of the Securities, (together with any documents incorporated therein by reference, and any supplements
or amendments thereto (the “Canadian Base Prospectus”) in accordance with the applicable securities laws of
each of the provinces of Canada, other than Québec (the “Qualifying
Jurisdictions”), and the respective applicable rules and regulations under such laws, together with applicable published
national, multilateral and local policy statements, instruments, notices and blanket orders to the securities regulatory authorities
(“Canadian Qualifying Authorities” ) in each of the Qualifying Jurisdictions (collectively “Canadian
Securities Laws”). The Company has prepared the Canadian Base Prospectus pursuant to National Instrument 44-101—Short
Form Prospectus Distributions and NI 44-102 (together, the “Shelf Procedures”). The Company has obtained
from the BCSC a receipt for the Canadian Base Prospectus (a “Final Receipt”) and each of the other Canadian
commissions is deemed to have issued a Final Receipt under National Policy 11-202 Process for Prospectus Reviews in Multiple
Jurisdictions in respect of the Canadian Base Prospectus.
(c) U.S.
Base Prospectus. The Company has prepared and filed with the Commission pursuant to the Canada/U.S. Multi-Jurisdictional
Disclosure System adopted by the Canadian Commissions and the Commission (the “MJDS”), a registration statement
on Form F-10 (Registration No. 333-193645) registering the offering and sale, from time to time, of the Securities under the U.S.
Securities Act of 1933, as amended (together with the rules and regulations thereunder, the “Securities Act”),
including the Canadian Base Prospectus (together with any documents incorporated therein by reference, any supplements or amendments
thereto and with such deletions therefrom and additions or changes thereto as are permitted or required by Form F-10 and the applicable
rules and regulations of the Commission (the “Rules and Regulations”)) (the “U.S. Base Prospectus”).
The Canadian Base Prospectus and the U.S. Base Prospectus are hereinafter collectively referred to as the “Base Prospectuses.”
(d) Prospectus
Supplements. The Company will file (i) with the BCSC, in accordance with the Shelf Procedures, one or more prospectus
supplements setting forth the Shelf Information (as defined below) (the most recent prospectus supplement relating to the Placement
Shares to be issued and sold pursuant to this Agreement, including any documents incorporated therein by reference and any supplements
or amendments thereto, the “Canadian Prospectus Supplement”), and (ii) with the Commission, the Canadian Prospectus
Supplement (the most recent prospectus supplement relating to the Placement Shares to be issued and sold pursuant to this Agreement,
with such deletions therefrom and additions or changes thereto as are permitted or required by Form F-10 and the applicable Rules
and Regulations, the “U.S. Prospectus Supplement”). The information, if any, included in the Canadian Supplement
that is omitted from the Canadian Base Prospectus for which a Final Receipt has been obtained from the BCSC, but that is deemed
under the Shelf Procedures to be incorporated by reference into the Canadian Base Prospectus as of each Applicable Time, is referred
to herein as the “Shelf Information.” The U.S. Prospectus Supplement and the Canadian Supplement are hereinafter
collectively referred to as the “Prospectus Supplements.”
(e) Registration
Statement. The registration statement on Form F-10, including the exhibits thereto and the documents incorporated
by reference therein and including the U.S. Prospectus (as defined below), as amended at the time it became effective, is herein
called the “Registration Statement.” Any reference to any amendment or supplement to the Registration Statement
or the U.S. Prospectus shall be deemed to refer to and include any documents filed with the Commission after the effectiveness
of such Registration Statement or the date of such U.S. Prospectus and prior to the termination of this offering and which are
incorporated by reference in such Registration Statement or U.S. Prospectus. The Company has also filed with the Commission an
appointment of agent for service of process on Form F-X (the “Form F-X”) in connection with the filing of the
Registration Statement. The term “Canadian Prospectus” shall refer to the Canadian Base Prospectus, as supplemented
by the most recent Canadian Prospectus Supplement relating to the Placement Shares to be issued and sold pursuant to this Agreement,
including, in each case, the documents incorporated by reference therein. The term “U.S. Prospectus” shall refer
to the U.S. Base Prospectus, as supplemented by the most recent U.S. Prospectus Supplement relating to the Placement Shares to
be issued and sold pursuant to this Agreement, including, in each case, the documents incorporated by reference therein. Any amendment
to the Canadian Prospectus, and any amended or supplemented prospectus or auxiliary material, information, evidence, return, report,
application, statement or document that may be filed by or on behalf of the Company under Canadian Securities Laws prior to the
termination of this offering or, any such document deemed to be incorporated by reference into the Canadian Prospectus, prior to
the termination of this offering, is referred to herein collectively as the “Supplementary Material.” The U.S.
Prospectus and the Canadian Prospectus are hereinafter collectively referred to as the “Prospectuses.” Any reference
herein to the Registration Statement, the Prospectuses or any amendment or supplement thereto shall be deemed to refer to and include
the documents incorporated by reference therein, and any reference therein to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement or the Prospectuses shall be deemed to refer to and include
the filing after the execution hereof of any document with the BCSC or the Commission deemed to be incorporated by reference therein
(the “Incorporated Documents”). For purposes of this Agreement, all references to the Registration Statement,
the U.S. Prospectus or to any amendment or supplement thereto shall be deemed to include any copy filed with the Commission pursuant
to its Electronic Data Gathering Analysis and Retrieval System (“EDGAR”).
Each of the Company
and MLV hereby agrees and acknowledges that all sales and solicitations of sales of Common Shares by MLV as agent of the Company
shall be made solely in the United States.
2. Placements.
Each time that the Company wishes to issue and sell Placement Shares hereunder (each, a “Placement”), it will
notify MLV by email notice (or other method mutually agreed to in writing by the Parties) of the number of Placement Shares, the
time period during which sales are requested to be made, any limitation on the number of Placement Shares that may be sold in any
one day and any minimum price below which sales may not be made (a “Placement Notice”), the form of which is
attached hereto as Schedule 1. The Placement Notice shall originate from any of the individuals from the Company set forth
on Schedule 2 (with a copy to each of the other individuals from the Company listed on such schedule), and shall be addressed
to each of the individuals from MLV set forth on Schedule 2, as such Schedule 2 may be amended from time to time.
It is expressly acknowledged and agreed that neither the Company nor MLV will have any obligation whatsoever with respect to a
Placement of any Placement Shares unless and until the Company delivers a Placement Notice to MLV and MLV does not decline such
Placement Notice pursuant to the terms set forth below, and then only upon the terms specified therein and herein. Subject to the
foregoing sentence, the Placement Notice shall be effective unless and until (i) MLV declines to accept the terms contained therein
for any reason, in its sole discretion, by providing email notice (or other method mutually agreed to in writing by the parties)
to the individuals from the Company set forth on Schedule 2, (ii) the entire amount of the Placement Shares set forth therein
have been sold, (iii) the Company or MLV suspends or terminates the Placement Notice, (iv) the Company issues a subsequent Placement
Notice with parameters superceding those on the earlier Placement Notice, or (v) the Agreement has been terminated under the provisions
of Section 12. The amount of any discount, commission or other compensation to be paid by the Company to MLV in connection with
the sale of the Placement Shares shall be calculated in accordance with the terms set forth in Schedule 3. In the event
of a conflict between the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement Notice will control.
3. Sale
of Placement Shares by MLV.
(a) Subject
to the terms and conditions of this Agreement, for the period specified in a Placement Notice, MLV will use its commercially reasonable
efforts consistent with its normal trading and sales practices and applicable state, provincial and federal laws, rules and regulations
and the rules of the Toronto Stock Exchange, the NASDAQ Capital Market (“NASDAQ” and, together with the Toronto
Stock Exchange, the “Exchanges”), to sell the Placement Shares up to the amount specified, and otherwise in
accordance with the terms of such Placement Notice. MLV will provide written confirmation to each of the individuals from the Company
set forth on Schedule 2 no later than the opening of the Trading Day (as defined below) immediately following the Trading
Day on which it has made sales of Placement Shares hereunder setting forth the number of Placement Shares sold on such day, the
compensation payable by the Company to MLV pursuant to Section 2 with respect to such sales, and the Net Proceeds (as
defined below) payable to the Company, with an itemization of the deductions made by MLV (as set forth in Section 5(b))
from the gross proceeds that it receives from such sales. Subject to the terms of the Placement Notice, MLV may sell Placement
Shares only by methods deemed to be an “at-the-market distribution” as defined in Section 1.1 of NI 44-102, including
without limitation sales made directly on NASDAQ or on any other existing trading market for the Common Shares in the United States
and otherwise in accordance with Part 9 and Part 9A of NI 44-102. “Trading Day” means any day on which Common
Shares may be purchased and sold on the NASDAQ.
(b) During
the term of this Agreement, neither MLV nor any of its affiliates or subsidiaries shall engage in (i) any short sale of any security
of the Company, (ii) any transactions that are intended to stabilize or maintain the market price of the Common Shares, or (iii)
any sale of any security of the Company that MLV does not own or any sale which is consummated by the delivery of a security of
the Company borrowed by, or for the account of, MLV. Neither MLV nor any of its affiliates or subsidiaries shall engage in any
proprietary trading or trading for MLV’s (or its affiliates’ or subsidiaries’) own account.
4. Suspension
of Sales. The Company or MLV may, upon notice to the other party in writing (including by email correspondence to each of the
individuals of the other party set forth on Schedule 2, if receipt of such correspondence is actually acknowledged by any
of the individuals to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately by verifiable
facsimile transmission or email correspondence to each of the individuals of the other party set forth on Schedule 2), suspend
any sale of Placement Shares; provided, however, that such suspension shall not affect or impair any party’s obligations
with respect to any Placement Shares sold hereunder prior to the receipt of such notice. Each of the parties agrees that no such
notice under this Section 4 shall be effective against any other party unless it is made to one of the individuals named
on Schedule 2 hereto, as such Schedule may be amended from time to time.
5. Sale
and Delivery to MLV; Settlement.
(a) Sale
of Placement Shares. On the basis of the representations and warranties herein contained and subject to the terms and
conditions herein set forth, upon MLV’s acceptance of the terms of a Placement Notice, and unless the sale of the Placement
Shares described therein has been declined, suspended, or otherwise terminated in accordance with the terms of this Agreement,
MLV, for the period specified in the Placement Notice, will use its commercially reasonable efforts consistent with its normal
trading and sales practices and applicable law and regulations to sell such Placement Shares up to the amount specified, and otherwise
in accordance with the terms of such Placement Notice. The Company acknowledges and agrees that (i) there can be no assurance that
MLV will be successful in selling Placement Shares, (ii) MLV will incur no liability or obligation to the Company or any other
person or entity if it does not sell Placement Shares for any reason other than a failure by MLV to use its commercially reasonable
efforts consistent with its normal trading and sales practices to sell such Placement Shares as required under this Agreement and
(iii) MLV shall be under no obligation to purchase Placement Shares on a principal basis pursuant to this Agreement.
(b) Settlement
of Placement Shares. Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement
Shares will occur on the third (3rd) Trading Day (or such earlier day as is then industry practice for regular-way trading)
following the date on which such sales are made (each, a “Settlement Date”). The amount of proceeds to be delivered
to the Company on a Settlement Date against receipt of the Placement Shares sold (the “Net Proceeds”) will be
equal to the aggregate sales price received by MLV, after deduction of (i) MLV’s commission, discount or other compensation
for such sales payable by the Company pursuant to Section 2 hereof, and (ii) any reasonable and documented transaction fees
imposed by any governmental or self-regulatory organization in respect of such sales.
(c)
Delivery of Placement Shares. On or before each Settlement Date, the Company will, or will cause its transfer agent
to, electronically transfer the Placement Shares being sold by crediting MLV’s or its designee’s account (provided
MLV shall have given the Company written notice of such designee at least one Trading Day prior to the Settlement Date) at The
Depository Trust Company through its Deposit and Withdrawal at Custodian System or by such other means of delivery as may be mutually
agreed upon by the parties hereto which in all cases shall be freely tradable, transferable, registered shares in good deliverable
form. On each Settlement Date, MLV will deliver the related Net Proceeds in same day funds to an account designated by the Company
on, or prior to, the Settlement Date. The Company agrees that if the Company, or its transfer agent (if applicable), defaults in
its obligation to deliver Placement Shares on a Settlement Date, then in addition to and in no way limiting the rights and obligations
set forth in Section 10(a) and provided that MLV has complied with its obligations in Section 3(a), it will (i) hold MLV harmless
against any loss, claim, damage, or reasonable, documented expense (including reasonable and documented legal fees and expenses),
as incurred, arising out of or in connection with such default by the Company or its transfer agent (if applicable) and (ii) pay
to MLV (without duplication) any commission, discount, or other compensation to which it would otherwise have been entitled absent
such default; provided, however, that the Company shall not be obligated to pay to MLV any commission, discount or compensation
on any Placement Shares that are not timely delivered due to (i) a suspension or material limitation in trading in securities generally
on NASDAQ or (ii) a material disruption in securities settlement or clearance services in the United States.
(d) Limitations
on Offering. Under no circumstances shall the Company cause or request the offer or sale of any Placement Shares if,
after giving effect to the sale of such Placement Shares, the aggregate number of Placement Shares sold pursuant to this Agreement
would exceed the lesser of (A) the Maximum Amount and (B) the amount authorized from time to time to be issued and sold
under this Agreement by the Company’s Board of Directors, and notified to MLV in writing. Under no circumstances shall the
Company cause or request the offer or sale of any Placement Shares pursuant to this Agreement at a price lower than the minimum
price authorized from time to time by the Company’s Board of Directors, and notified to MLV in writing.
6. Representations
and Warranties of the Company. The Company represents and warrants to, and agrees with MLV that as of the date of this Agreement
and as of each Applicable Time (as defined below), unless such representation, warranty or agreement specifies a different time
or times:
(a) Registration
Statement and Prospectuses. The Company and, assuming no act or omission on the part of MLV that would make such statement
untrue, the transactions contemplated by this Agreement meet the requirements for and comply with the general eligibility requirements
for the use of Form F-10 under the Securities Act. The Registration Statement has been filed with the Commission and has been declared
effective under the Securities Act. Each U.S. Prospectus Supplement will name MLV as the agent in the section entitled “Plan
of Distribution.” The Company has not received, and has no notice of, any order of the Commission or a Canadian Commission
preventing or suspending the use of the Registration Statement, or threatening or instituting proceedings for that purpose. The
Registration Statement complies in all material respects with the requirements of Form F-10 under the Securities Act and the offer
and sale of Placement Shares as contemplated hereby (and assuming compliance by MLV with its obligations hereunder) meet the requirements
of NI 44-102 and comply in all material respects with said National Instrument and/or the conditions of any exemptive relief order
issued by the BCSC exempting the Company from the requirements to comply with certain provisions thereof. Any statutes, regulations,
document or contracts of a character required to be described in the Registration Statement or the Prospectuses or to be filed
as an exhibit to the Registration Statement have been or will be in the case of the Prospectuses, so described or filed. Copies
of the Registration Statement, the Prospectuses, and any such amendments or supplements and all documents incorporated by reference
therein that were filed with the Commission on or prior to the date of this Agreement have been delivered, or are available through
EDGAR, to MLV and its counsel. The Company has not distributed and, prior to the later to occur of each Settlement Date and completion
of the distribution of the Placement Shares, will not distribute any offering material in connection with the offering or sale
of the Placement Shares other than the Registration Statement and the Prospectuses and any Issuer Free Writing Prospectus (as defined
below) to which MLV has consented. The Common Shares are currently listed on the TSX and the NASDAQ under the trading symbols “COM”
and “CRME,” respectively. Except as disclosed in the Registration Statement, including the Incorporated Documents,
or the Prospectuses, the Company has not, in the 12 months preceding the date hereof, received notice from the Exchanges to the
effect that the Company is not in compliance with the listing or maintenance requirements of such Exchanges. Except as disclosed
in the Registration Statement, including the Incorporated Documents, or the Prospectuses, the Company has no reason to believe
that it will not in the foreseeable future continue to be in compliance with all such listing and maintenance requirements, other
than compliance with minimum bid or market capitalization requirements, in respect of which the Company makes no representation
or warranty.
(b) No
Misstatement or Omission. The Registration Statement, when it became effective, complied in all material respects with the
requirements of the Securities Act. The U.S. Prospectus, as of the date of the U.S. Prospectus Supplement, complied, and any amendment
or supplement thereto will comply, on the date thereof, in all material respects with the requirements of the Securities Act. At
each Settlement Date, the Registration Statement and the U.S. Prospectus, as of such date, will comply in all material respects
with the requirements of the Securities Act. The Registration Statement, when it became effective, did not, and will not, contain
an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein not misleading. The U.S. Prospectus, as of the date of the U.S. Prospectus Supplement, and any amendment and
supplement thereto, on the date thereof and at each Applicable Time (defined below), did not or will not include an untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. The documents incorporated by reference in the U.S. Prospectus did not, and any further documents
filed and incorporated by reference therein will not, when filed with the Commission, contain an untrue statement of a material
fact or omit to state a material fact required to be stated in such document or necessary to make the statements in such document,
in light of the circumstances under which they were made, not misleading. The foregoing shall not apply to statements in, or omissions
from, any such document which are made in reliance upon, and in conformity with, information furnished to the Company by MLV specifically
for use in the preparation thereof. In addition, the Canadian Prospectus, and any amendment and supplement thereto, on the date
thereof and at each Applicable Time (defined below), did not or will not include an untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading. The documents incorporated by reference in the Canadian Prospectus did not, and any further documents filed and incorporated
by reference therein will not, when filed with the Canadian Commissions, contain an untrue statement of a material fact or omit
to state a material fact required to be stated in such document or necessary to make the statements in such document, in light
of the circumstances under which they were made, not misleading. The foregoing shall not apply to statements in, or omissions from,
any such document which are made in reliance upon, and in conformity with, information furnished to the Company by MLV specifically
for use in the preparation thereof. The U.S. Prospectus will conform to the Canadian Prospectus except for such deletions or changes
therefrom and additions thereto as are permitted or required by Form F-10 and the Rules and Regulations.
(c) Conformity
with Securities Act and Exchange Act. The Incorporated Documents, when such documents were or are filed with the Exchange Act,
conformed or will conform in all material respects with the requirements of the Exchange Act.
(d) Financial
Information. The consolidated financial statements of the Company included or incorporated by reference in the Registration
Statement and the U.S. Prospectus, together with the related notes and schedules, present fairly, in all material respects, the
consolidated financial position of the Company and the Subsidiaries (as defined below) as of the dates indicated and the consolidated
balance sheets, results of operations, cash flows and changes in shareholders’ equity of the Company for the periods specified
and have been prepared in compliance with the requirements of the Securities Act and Exchange Act, as applicable, and in conformity
with generally accepted accounting principles in the United States (“GAAP”) applied on a consistent basis (except
for such adjustments to accounting standards and practices as are noted therein) during the periods involved; the other financial
and statistical data with respect to the Company and the Subsidiaries contained or incorporated by reference in the Registration
Statement and the U.S. Prospectus, are accurately and fairly presented in all material respects, and prepared on a basis consistent
with the financial statements and books and records of the Company; there are no financial statements (historical or pro forma)
that are required to be included or incorporated by reference in the Registration Statement, or the U.S. Prospectus that are not
included or incorporated by reference as required; the Company and the Subsidiaries do not have any material liabilities or obligations,
direct or contingent (including any off balance sheet obligations), not described in the Registration Statement, and the U.S. Prospectus
which are required to be described in the Registration Statement or the U.S. Prospectus under the Securities Act or the Canadian
Prospectus under Canadian Securities Law; and all disclosures contained or incorporated by reference in the Registration Statement
and the U.S. Prospectus, if any, regarding financial measures that do not comply with the “issuer’s GAAP” (as
defined in National Instrument 52-107 – Acceptable Accounting Policies and Auditing Standards) applicable to the Company
comply in all material respects with the Canadian Securities Administrators Staff Notice 52-306, to the extent applicable.
(e) Conformity
with EDGAR Filing. The U.S. Prospectus delivered to MLV for use in connection with the sale of the Placement Shares pursuant
to this Agreement will be identical to the version of the U.S. Prospectus transmitted to the Commission for filing via EDGAR, except
to the extent permitted by Regulation S-T.
(f) Organization.
The Company and each of its Subsidiaries are duly organized, validly existing as a corporation and in good standing under the laws
of their respective jurisdictions of organization. The Company and each of its Subsidiaries are duly qualified as a foreign corporation
for transaction of business and in good standing under the laws of each other jurisdiction in which their respective ownership
or lease of property or the conduct of their respective businesses requires such qualification, and have all corporate power and
authority necessary to own or hold their respective properties and to conduct their respective businesses as described in the Registration
Statement and the Prospectuses, except, in each case, where the failure to be so qualified or in good standing or to have such
power or authority would not or would not reasonably be expected to, individually or in the aggregate, have a material adverse
effect on the assets, business, operations, earnings, properties, condition (financial or otherwise), shareholders’ equity
or results of operations of the Company and the Subsidiaries (as defined below) taken as a whole, or prevent or materially interfere
with consummation of the transactions contemplated hereby (a “Material Adverse Effect”).
(g) Subsidiaries.
The subsidiaries set forth on Schedule 4 (collectively, the “Subsidiaries”) are the Company’s only
material subsidiaries. Except as set forth in the Registration Statement and in the Prospectuses, the Company owns, directly or
indirectly, all of the equity interests of the Subsidiaries free and clear of any lien, charge, security interest, encumbrance,
right of first refusal or other restriction, and all the equity interests of the Subsidiaries are validly issued and are fully
paid and nonassessable.
(h) No
Violation or Default. Neither the Company nor any of its Subsidiaries is: (i) in violation of its charter or by-laws or
similar organizational documents; (ii) in default, and to the knowledge of the Company no event has occurred that, with notice
or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or condition
contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any
of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or to which any of the property or assets
of the Company or any of its Subsidiaries are subject; or (iii) in violation of any law or statute or any judgment, order,
rule or regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of each of clauses (ii)
and (iii) above, for any such violation or default that would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect. Except as described in the Registration Statement, Prospectuses or the Incorporated Documents,
to the Company’s knowledge, no other party under any material contract or other agreement to which it or any of its Subsidiaries
is a party is in default in any respect thereunder where such default would reasonably be expected to have a Material Adverse Effect.
(i) No
Material Adverse Change. Since the date of the most recent financial statements of the Company included or incorporated by
reference into the Registration Statement or Prospectuses prior to each Settlement Date, there has not been (i) any event or condition
that has a Material Adverse Effect, and (ii) any material change in the share capital or outstanding long-term indebtedness of
the Company or any of its Subsidiaries, or any dividend or distribution of any kind declared, paid or made on the capital stock
of the Company or any Subsidiary, other than such change, dividend or distribution which would not have a Material Adverse Effect.
For each Placement, from the Applicable Time until the Settlement Date, neither the Company nor any Subsidiary will enter into
any transaction or agreement, not in the ordinary course of business, that is material to the Company or incur any liability, obligation,
direct or contingent, not in the ordinary course of business, that is material to the Company, in each case to the extent such
transaction, agreement, liability or obligation would make the statements in the Registration Statement or Prospectuses contain
an untrue statement of material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading (in light of the circumstances under which they were made, in the case of the Prospectuses).
(j) Capitalization.
The issued and outstanding shares of the capital of the Company have been validly issued, are fully paid and non-assessable, and
are not subject to any preemptive rights, rights of first refusal or similar rights. The Company has an authorized, issued and
outstanding capitalization as set forth in the Registration Statement and the Prospectuses as of the dates referred to therein
(other than the grant of additional options under the Company’s existing stock option plans, or changes in the number of
outstanding Common Shares of the Company due to the issuance of shares upon the exercise or conversion of securities exercisable
for, or convertible into, Common Shares outstanding on the date hereof or as a result of the issuance of Placement Shares) and
such authorized share capital conforms to the description thereof set forth in the Registration Statement and the Prospectuses.
The description of the Common Shares in the Registration Statement and the Prospectuses is complete and accurate in all material
respects. Except as disclosed in or contemplated by the Registration Statement or the Prospectuses, as of the date referred to
therein, the Company did not have reserved or available for issuance any Common Shares in respect of options (other than stock
options under the Company’s existing stock option plans), or any rights or warrants to subscribe for, or any securities or
obligations convertible into, or exchangeable for, or any contracts or commitments to issue or sell, any shares of the capital
or other securities of or issued by the Company.
(k) Authorization;
Enforceability. This Agreement has been duly authorized, executed and delivered by the Company and is a legal, valid and binding
agreement of the Company enforceable in accordance with its terms, except to the extent that (i) enforceability may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general
equitable principles and (ii) the indemnification and contribution provisions of Section 10 hereof may be limited by federal,
provincial or state securities laws and public policy considerations in respect thereof.
(l) Authorization
of Placement Shares. The Placement Shares, when issued and delivered pursuant to the terms approved by the Board of Directors
of the Company, against payment in full therefor as provided herein, will be duly and validly issued and fully paid and nonassessable,
and will not be subject to preemptive or similar rights. The rights, privileges, restrictions and conditions attaching to the Placement
Shares, when issued, will conform in all material respects to the description thereof set forth in or incorporated into the Prospectuses.
(m) No
Consents Required. No consent, approval, authorization, order, registration or qualification of or with any court or arbitrator
or any governmental or regulatory authority is required for the execution, delivery and performance by the Company of this Agreement,
and the issuance and sale by the Company of the Placement Shares as contemplated hereby, except for such consents, approvals, authorizations,
orders, exemptions, decisions and registrations or qualifications as may be required under applicable provincial or state
securities laws or by the by-laws and rules of the Financial Industry Regulatory Authority (“FINRA”), the Exchanges,
or the BCSC in connection with the sale of the Placement Shares by MLV.
(n) No
Preferential Rights. Except as set forth in the Registration Statement and the Prospectuses, (i) no person, as such term
is defined in Rule 1-02 of Regulation S-X promulgated under the Securities Act (each, a “Person”), has the right,
contractual or otherwise, to cause the Company to issue or sell to such Person any Common Shares or shares of any other capital
stock or other securities of the Company (other than upon the exercise of options or warrants to purchase Common Shares or upon
the exercise of options that may be granted from time to time under the Company’s stock option plans), (ii) no Person
has any preemptive rights, rights of first refusal, or any other rights (whether pursuant to a “poison pill” provision
or otherwise) to purchase any Common Shares or shares of any other capital stock or other securities of the Company from the Company
which have not been duly waived with respect to the offering contemplated hereby, (iii) except as disclosed in writing to
MLV or its representatives in connection with the transactions contemplated hereby, no Person has the right to act as an underwriter
or as a financial advisor to the Company in connection with the offer and sale of the Placement Shares (excluding, for greater
certainty, MLV), and (iv) no Person has the right, contractual or otherwise, to require the Company to register under the
Securities Act any Common Shares or shares of any other capital stock or other securities of the Company, or to include any such
shares or other securities in the Registration Statement or the offering contemplated thereby, whether as a result of the filing
or effectiveness of the Registration Statement or the sale of the Placement Shares as contemplated thereby or otherwise, except
for such rights as have been waived on or prior to the date hereof.
(o) Independent
Public Accountant. KPMG LLP (the “Accountant”), whose report on the consolidated financial statements of
the Company is filed with the Commission as part of the Company’s most recent Annual Report on Form 20-F filed with the Commission
and incorporated into the Registration Statement and the U.S. Prospectus, is and, during the periods covered by its report, was
an independent public accountant within the meaning of the Securities Act and the Public Company Accounting Oversight Board (United
States).
(p) No
Litigation. Except as set forth in the Registration Statement or the Prospectuses, there are no legal, governmental or regulatory
actions, suits or proceedings pending, nor, to the Company’s knowledge, any legal, governmental or regulatory investigations,
to which the Company or a Subsidiary is a party or to which any property of the Company or any of its Subsidiaries is the subject
that, individually or in the aggregate, if determined adversely to the Company or any of its Subsidiaries, would reasonably be
expected to have a Material Adverse Effect. Except as set forth in the Registration Statement or the Prospectuses, to the Company’s
knowledge, no actions, suits or proceedings are threatened or contemplated by any governmental or regulatory authority or threatened
by others that, individually or in the aggregate, if determined adversely to the Company or any of its Subsidiaries, would reasonably
be expected to have a Material Adverse Effect; and there are no current or pending legal, governmental or regulatory, actions,
suits, proceedings or, to the Company’s knowledge, investigations that are required under the Securities Act to be described
in the U.S. Prospectus that are not described in the U.S. Prospectus.
(q) Licenses
and Permits. Except as set forth in the Registration Statement or the Prospectuses, the Company and each of its Subsidiaries
possess or have obtained, all licenses, certificates, consents, orders, approvals, permits and other authorizations issued by,
and have made all declarations and filings with, the appropriate federal, provincial, state, local or foreign governmental or regulatory
authorities that are necessary for the ownership or lease of their respective properties or the conduct of their respective businesses
as described in the Registration Statement and the Prospectuses (the “Permits”), except where the failure to
possess, obtain or make the same would not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. Except as disclosed in the Registration Statement or the Prospectuses, neither the Company nor any of its Subsidiaries
have received written notice of any proceeding relating to revocation or modification of any such Permit or has any reason to believe
that such Permit will not be renewed in the ordinary course, except where such revocation, modification or failure to obtain any
such renewal would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(r) No
Material Defaults. Neither the Company nor any of the Subsidiaries has defaulted on any installment on indebtedness for borrowed
money or on any rental on one or more long-term leases, which defaults, individually or in the aggregate, would reasonably be expected
to have a Material Adverse Effect. The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since
the filing of its last Annual Report on Form 20-F, indicating that it (i) has failed to pay any dividend or sinking fund installment
on preferred stock or (ii) has defaulted on any installment on indebtedness for borrowed money or on any rental on one or
more long-term leases, which defaults, individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect.
(s) Certain
Market Activities. Neither the Company, nor, to the knowledge of the Company, any of the Subsidiaries, nor any of their respective
directors, officers or controlling persons has taken, directly or indirectly, any action designed, or that has constituted or might
reasonably be expected to cause or result in, under the Exchange Act or otherwise, the stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the Placement Shares.
(t) Broker/Dealer
Relationships. Neither the Company nor any of its Subsidiaries or any related entities (i) is required to register as
a “broker” or “dealer” in accordance with the provisions of the Exchange Act or (ii) directly or indirectly
through one or more intermediaries, controls or is a “person associated with a FINRA member” or “associated person
of a FINRA member” (within the meaning set forth in the FINRA Manual).
(u) No
Reliance. The Company has not relied upon MLV or legal counsel for MLV for any legal, tax or accounting advice in connection
with the offering and sale of the Placement Shares.
(v) Taxes.
The Company and each of its Subsidiaries have filed all U.S. federal, state, local and foreign tax returns which have been required
to be filed and paid all taxes shown thereon through the date hereof, to the extent that such taxes have become due and are not
being contested in good faith, except where the failure to do so would not reasonably be expected to have a Material Adverse Effect.
Except as otherwise disclosed in or contemplated by the Registration Statement or the Prospectuses, no tax deficiency has been
determined adversely to the Company or any of its Subsidiaries which has had a Material Adverse Effect. The Company has no knowledge
of any federal, state or other governmental tax deficiency, penalty or assessment which has been or might be asserted or threatened
against it which could have a Material Adverse Effect.
(w) Title
to Real and Personal Property. Except as set forth in the Registration Statement or the Prospectuses, the Company and its Subsidiaries
have good and valid title in fee simple to all items of real property and good and valid title to all personal property (excluding
Intellectual Property, which is addressed below) described in the Registration Statement or Prospectuses as being owned by them
that are material to the businesses of the Company or such Subsidiary, in each case free and clear of all liens, encumbrances and
claims, except those that (i) do not materially interfere with the use made and proposed to be made of such property by the
Company and any of its Subsidiaries or (ii) would not reasonably be expected, individually or in the aggregate, to have a
Material Adverse Effect. Any real property described in the Registration Statement or Prospectuses as being leased by the Company
and any of its Subsidiaries is held by them under valid, existing and enforceable leases, except those that (i) do not materially
interfere with the use made or proposed to be made of such property by the Company or any of its Subsidiaries or (ii) would
not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.
(x) Intellectual
Property. Except as set forth in the Registration Statement or the Prospectuses, to the Company’s knowledge, the Company
and its Subsidiaries own or have obtained adequate enforceable rights to use all patents, patent applications, trademarks (both
registered and unregistered), service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses
and know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems
or procedures) (collectively, the “Intellectual Property”), necessary for the conduct of their respective businesses
as conducted as of the date hereof, except to the extent that the failure to own or to have obtained adequate rights to use such
Intellectual Property would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; except
as disclosed in writing to MLV, neither the Company nor any of its Subsidiaries has received any written notice of any claim of
infringement or conflict which asserted Intellectual Property rights of others, which infringement or conflict, if the subject
of an unfavorable decision, would result in a Material Adverse Effect; there are no pending, or to the Company’s knowledge,
threatened judicial proceedings or interference proceedings against the Company or its Subsidiaries challenging the Company’s
or its Subsidiaries’ rights in or to or the validity of the scope of any of the Company’s or its Subsidiaries’
material patents, patent applications or proprietary information, except for such proceedings which would not reasonably be expected
to have a Material Adverse Effect; to the Company’s knowledge, no other entity or individual has any right or claim in any
of the Company’s or its Subsidiaries’ owned material patents, patent applications or any patent to be issued therefrom
by virtue of any contract, license or other agreement entered into between such entity or individual and the Company or a Subsidiary
or by any non-contractual obligation of the Company or a Subsidiary, other than by written licenses granted by the Company or a
Subsidiary, except for such rights or claims which would not reasonably be expected to have a Material Adverse Effect; the Company
and its Subsidiaries have not received any written notice of any claim challenging the rights of the Company or a Subsidiary in
or to any Intellectual Property owned, licensed or optioned by the Company or such Subsidiary which claim, if the subject of an
unfavorable decision, would result in a Material Adverse Effect.
(y) Environmental
Laws. Except as set forth in the Registration Statement or the Prospectuses, the Company and its Subsidiaries (i) are
in compliance with any and all applicable federal, state, local and foreign laws, rules, regulations, decisions and orders relating
to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants
(collectively, “Environmental Laws”); (ii) have received and are in compliance with all permits, licenses
or other approvals required of them under applicable Environmental Laws to conduct their respective businesses as described in
the Registration Statement and the Prospectuses; and (iii) have not received written notice of any actual or potential liability
for the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants,
except, in the case of any of clauses (i), (ii) or (iii) above, for any such failure to comply or failure to receive required permits,
licenses, other approvals or notice or liability as would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect.
(z) Disclosure
Controls. The Company maintains disclosure controls and procedures and internal controls over financial reporting (each as
defined in Rule 13a-15 under the Exchange Act) that comply with the requirements of the Exchange Act. The Company is not aware
of any material weaknesses in its internal control over financial reporting (other than as set forth in the Registration Statement
or U.S. Prospectus). Since the date of the latest audited financial statements of the Company included in the Prospectuses, there
has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably
likely to materially affect, the Company’s internal control over financial reporting (other than as set forth in the Registration
Statement or U.S. Prospectus). The Company’s certifying officers have evaluated the effectiveness of the Company’s
disclosure controls and procedures as of a date within 90 days prior to the filing date of the Annual Report on Form 20-F for the
fiscal year most recently filed with the Commission (such date, the “Evaluation Date”). The Company presented
in its Annual Report on Form 20-F most recently filed with the Commission the conclusions of the certifying officers about the
effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date.
(aa) Sarbanes-Oxley.
Except as set forth in the Registration Statement or Prospectuses, there is and has been no failure on the part of the Company
or, to the knowledge of the Company, any of the Company’s directors or officers, in their capacities as such, to comply with
any applicable provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder (the “Sarbanes-Oxley
Act”). Each of the principal executive officer and the principal financial officer of the Company (or each former principal
executive officer of the Company and each former principal financial officer of the Company as applicable) has made all certifications
required by Sections 302 and 906 of the Sarbanes-Oxley Act. For purposes of the preceding sentence, “principal executive
officer” and “principal financial officer” shall have the meanings given to such terms in the Sarbanes-Oxley
Act.
(bb) Finder’s
Fees. Neither the Company nor any of the Subsidiaries has incurred any liability for any finder’s fees, brokerage commissions
or similar payments in connection with the transactions herein contemplated, except as may otherwise exist with respect to MLV
pursuant to this Agreement.
(cc) Labor
Disputes. Except as disclosed in the Registration Statement or Prospectuses, no labor disturbance by or dispute with employees
of the Company or any of its Subsidiaries exists or, to the knowledge of the Company, is threatened, in either case which would
reasonably be expected to result in a Material Adverse Effect
(dd) Investment
Company Act. The Company, after giving effect to the offering and sale of the Placement Shares, will not be an “investment
company” as such term is defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”).
(ee) Operations.
The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance in all material respects
with applicable financial record keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all jurisdictions to which the Company or its Subsidiaries are subject, the rules
and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any
governmental agency having jurisdiction over the Company (collectively, the “Money Laundering Laws”), except
as would not reasonably be expected to result in a Material Adverse Effect; and no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect
to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
(ff) Off-Balance
Sheet Arrangements. Except as disclosed in the Registration Statement or Prospectuses, there are no transactions, arrangements
or other relationships between and/or among the Company, and/or, to the knowledge of the Company, any of its Subsidiaries and any
unconsolidated entity, including, but not limited to, any structural finance, special purpose or limited purpose entity that could
reasonably be expected to affect materially the Company’s liquidity or the availability of or requirements for its capital
resources.
(gg) Underwriter
Agreements. The Company is not a party to any agreement with an agent or underwriter for any other “at-the-market”
transaction under Part 9 of NI 44-102 or pursuant to General Instruction II.L of Form F-10.
(hh) ERISA.
To the knowledge of the Company, (i) each material employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”), that is maintained, administered or contributed to by the
Company or any of its Subsidiaries (other than a Multiemployer Plan, within the meaning of Section 3(37) of ERISA) for employees
or former employees of the Company and any of its Subsidiaries has been maintained in material compliance with its terms and the
requirements of any applicable statutes, orders, rules and regulations, including but not limited to ERISA and the Internal Revenue
Code of 1986, as amended (the “Code”); (ii) no prohibited transaction, within the meaning of Section 406 of
ERISA or Section 4975 of the Code, has occurred which would result in material liability to the Company with respect to any such
plan (excluding transactions effected pursuant to a statutory or administrative exemption); and (iii) for each such plan that is
subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency”
as defined in Section 412 of the Code has been incurred, whether or not waived, and the fair market value of the assets of each
such plan (excluding for these purposes accrued but unpaid contributions) equals or exceeds the present value of all benefits accrued
under such plan determined using reasonable actuarial assumptions, other than, in the case of (i), (ii) and (iii) above, as would
not reasonably be expected to have a Material Adverse Effect.
(ii) Insurance.
The Company and each of its Subsidiaries carry, or are covered by, insurance in such amounts and covering such risks as the Company
and each of its Subsidiaries reasonably believe are adequate for the conduct of their businesses and as is customary for companies
of similar size engaged in similar businesses in similar industries.
(jj) No
Improper Practices. (i) Neither the Company nor, to the Company’s knowledge, the Subsidiaries, nor to the Company’s
knowledge, any of their respective executive officers has, in the past five years, made any unlawful contributions to any candidate
for any political office (or failed fully to disclose any contribution in violation of law) or made any contribution or other payment
to any official of, or candidate for, any federal, state, municipal, or foreign office or other person charged with similar public
or quasi-public duty in violation of any law; (ii) no relationship, direct or indirect, exists between or among the Company or,
to the Company’s knowledge, any Subsidiary, or any affiliate of them, on the one hand, and the directors, officers and shareholders
of the Company or, to the Company’s knowledge, any Subsidiary, on the other hand, that is required by the Securities Act,
Canadian Securities Laws or FINRA to be described in the Registration Statement and the Prospectuses that is not so described;
(iii) the Company has not offered, or caused any placement agent to offer, Common Shares to any person with the intent to influence
unlawfully (A) a customer or supplier of the Company or any Subsidiary to alter the customer’s or supplier’s level
or type of business with the Company or any Subsidiary or (B) a trade journalist or publication to write or publish favorable
information about the Company or any Subsidiary or any of their respective products or services, and, (iv) neither the Company
nor any Subsidiary nor, to the Company’s knowledge, any employee or agent of the Company or any Subsidiary has made any payment
of funds of the Company or any Subsidiary or received or retained any funds in violation of the Foreign Corrupt Practices Act of
1977.
(kk) Status
Under the Securities Act. The Company was not and will not be at any Settlement Date an ineligible issuer as defined in Rule
405 under the Securities Act.
(ll) No
Conflicting Statements in an Issuer Free Writing Prospectus. Each Issuer Free Writing Prospectus, as of its issue date and
as of each Applicable Time (as defined in Section 24 below), did not and will not include any information that conflicted,
conflicts or will conflict with the information contained in the Registration Statement or the Prospectuses, including any incorporated
document deemed to be a part thereof that has not been superseded or modified. The foregoing sentence does not apply to conflicting
information in any Issuer Free Writing Prospectus based upon and in conformity with written information furnished to the Company
by MLV specifically for use therein.
(mm) No
Conflicts. Neither the execution of this Agreement, nor the issuance, offering or sale of the Placement Shares, nor the consummation
of any of the transactions contemplated herein, nor the compliance by the Company with the terms and provisions hereof will conflict
with, or will result in a breach of, any of the terms and provisions of, or has constituted or will constitute a default under,
or has resulted in or will result in the creation or imposition of any lien, charge or encumbrance upon any property or assets
of the Company pursuant to the terms of any contract or other agreement to which the Company may be bound or to which any of the
property or assets of the Company is subject, except (i) such conflicts, breaches or defaults as may have been waived and (ii)
such conflicts, breaches and defaults that would not reasonably be expected to have a Material Adverse Effect; nor will such action
result (x) in any violation of the provisions of the organizational or governing documents of the Company, or (y) in any material
violation of the provisions of any statute or any order, rule or regulation applicable to the Company or of any court or of any
federal, state or other regulatory authority or other government body having jurisdiction over the Company, except where such violation
would not reasonably be expected to have a Material Adverse Effect.
(nn) Clinical
Studies. The clinical, pre-clinical and other studies and tests conducted by or, to the knowledge of the Company, on behalf
of the Company were, and, if still pending, are being, conducted in accordance in all material respects with all statutes, laws,
rules and regulations, as applicable (including, without limitation, the U.S. Federal and Drug Administration’s (the “FDA”)
Good Laboratory Practices and Good Clinical Practices as well as all other applicable rules, regulations, or requirements of the
FDA or any foreign, federal, state or local governmental or regulatory authority performing functions similar to those performed
by the FDA). Except as set forth in the Registration Statement and Prospectuses, the Company has not received any written notices
or other written correspondence from the FDA or any other foreign, federal, state or local governmental or regulatory authority
performing functions similar to those performed by the FDA requiring the Company to terminate or suspend any ongoing clinical or
pre-clinical studies or tests.
(oo) Compliance.
Except as disclosed in the Registration Statement and the Prospectuses, the Company has established and administers policies and
procedures relating to compliance applicable to the Company, to assist the Company and the directors, officers and employees of
the Company in complying with applicable regulatory guidelines (including, without limitation, those administered by the FDA and
any other foreign, federal, state or local governmental or regulatory authority performing functions similar to those performed
by the FDA) except where such noncompliance would not reasonably be expected to have a Material Adverse Effect.
(pp) OFAC.
(i) To the knowledge of the Company, neither the Company nor any of its Subsidiaries (collectively, the “Entity”),
nor any director, officer, employee, agent or representative of the Entity, is an individual or entity (in this paragraph (pp),
“Person”) that is, or is owned or controlled by a Person that is:
(A) the
subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”),
the European Union (“EU”) or other relevant sanctions authority (collectively, “Sanctions”),
or
(B) located,
organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Burma/Myanmar,
Cuba, Iran, North Korea, Sudan and Syria).
(ii) The
Entity represents and covenants that it will not directly or indirectly, use the proceeds of the offering, or lend, contribute
or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:
(A) to
fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding
or facilitation, is the subject of Sanctions; or
(B) in
any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering,
whether as underwriter, advisor, investor or otherwise).
(iii) Except
as described in the Registration Statement and the Prospectuses, during the past 5 years, the Entity has not knowingly engaged
in or is not now knowingly engaged in, any dealings or transactions with any Person, or in any country or territory, that at the
time of the dealing or transaction is or was the subject of Sanctions.
(qq) Share
Transfer Taxes. On each Settlement Date, all share transfer or other taxes (other than income taxes) which are required to
be paid in connection with the sale and transfer of the Placement Shares to be sold hereunder will be, or will have been, fully
paid or provided for by the Company and all laws imposing such taxes will be or will have been fully complied with in all material
respects
(rr) Foreign
Private Issuer. The Company is a “foreign private issuer” as such term is defined in Rule 3b-4 under the Exchange
Act and in Rule 405 under the Securities Act.
(ss) Filed
All Documents. The Company has filed all documents or information required to be filed by it under Canadian Securities Laws,
the Securities Act, the Exchange Act, the Rules and Regulations and the rules, regulations and policies of the Exchanges; except
as otherwise disclosed on Schedule 5, the Company has not filed any confidential material change report or any document
requesting confidential treatment with any securities regulatory authority or regulator or any exchange that at the date hereof
remains confidential.
Any certificate signed
by an authorized officer of the Company and delivered to MLV or to counsel for MLV pursuant to or in connection with this Agreement
shall be deemed to be a representation and warranty by the Company, as applicable, to MLV as to the matters set forth therein.
7. Covenants
of the Company. The Company covenants and agrees with MLV that:
(a) Registration
Statement Amendments. After the date of this Agreement and during any period in which a U.S. Prospectus relating to any Placement
Shares is required to be delivered by MLV under the Securities Act (the “Prospectus Delivery Period”), (i) the
Company will notify MLV promptly of the time when any subsequent amendment to the Registration Statement, other than documents
incorporated by reference or amendments not related to any Placement, has been filed with the Commission and/or has become effective
or any subsequent supplement to the Prospectus has been filed and of any request by the Commission for any amendment or supplement
to the Registration Statement or Prospectus or for additional information related to the Placement, (ii) the Company will
not file any amendment or supplement to the Registration Statement or the U.S. Prospectus relating to the Placement Shares unless
a copy thereof has been submitted to MLV within a reasonable period of time before the filing and MLV has not reasonably objected
thereto (provided, however, (A) that the failure of MLV to make such objection shall not relieve the Company of any obligation
or liability hereunder, or affect MLV’s right to rely on the representations and warranties made by the Company in this Agreement,
(B) that the Company has no obligation to provide MLV any advance copy of such filing or to provide MLV an opportunity to object
to such filing if such filing does not name MLV or does not relate to the transactions contemplated hereunder, and (C) that the
only remedy MLV shall have with respect to the failure by the Company to provide MLV with such copy shall be to cease making sales
under this Agreement) and the Company will furnish to MLV at the time of filing thereof a copy of any document that upon filing
is deemed to be incorporated by reference into the Registration Statement or U.S. Prospectus, except for those documents available
via EDGAR; and (iii) the Company will cause each amendment or supplement to the Prospectus to be filed with or furnished to
the Commission as required pursuant to General Instruction II.E of Form F-10 or, in the case of any document to be incorporated
therein by reference, to be filed with the Commission as required pursuant to the Exchange Act, within the time period prescribed
(the determination to file or not to file any amendment or supplement with the Commission under this Section 7(a), based
on the Company’s reasonable opinion or reasonable objections, shall be made exclusively by the Company).
(b) Notice
of Commission Stop Orders. During the Prospectus Delivery Period, the Company will advise MLV promptly after it receives notice
or obtains knowledge thereof of the issuance or threatened issuance by the Commission of any stop order suspending the effectiveness
of the Registration Statement, of the suspension of the qualification of the Placement Shares for offering or sale in any jurisdiction,
or of the initiation or threatening of any proceeding for any such purpose; and it will promptly use its commercially reasonable
efforts to prevent the issuance of any stop order or to obtain its withdrawal if such a stop order should be issued. The Company
will advise MLV promptly after it receives any request by the Commission for any amendments to the Registration Statement or any
amendment or supplements to the U.S. Prospectus or any Issuer Free Writing Prospectus or for additional information related to
the offering of the Placement Shares or for additional information related to the Registration Statement, the U.S. Prospectus or
any Issuer Free Writing Prospectus.
(c) Delivery
of Prospectus; Subsequent Changes. During the Prospectus Delivery Period, the Company will use its commercially reasonable
efforts to comply with all requirements imposed upon it by the Securities Act and Canadian Securities Laws, as from time to time
in force, and to file on or before their respective due dates all reports and any definitive proxy or information statements required
to be filed by the Company with or furnished to the Commission pursuant to Sections 13(a), 13(c), 14, 15(d) or any other provision
of or under the Exchange Act. If during the Prospectus Delivery Period any event occurs as a result of which the U.S. Prospectus
as then amended or supplemented would include an untrue statement of a material fact or omit to state a material fact necessary
to make the statements therein, in the light of the circumstances then existing, not misleading, or if during the Prospectus Delivery
Period it is necessary to amend or supplement the Registration Statement or U.S. Prospectus to comply with the Securities Act,
the Company will promptly notify MLV to suspend the offering of Placement Shares during such period and the Company will promptly
amend or supplement the Registration Statement or U.S. Prospectus (at the expense of the Company) so as to correct such statement
or omission or effect such compliance.
(d) Listing
of Placement Shares. During the Prospectus Delivery Period, the Company will use its commercially reasonable efforts to cause
the Placement Shares to be conditionally accepted for listing on the Exchanges.
(e) Delivery
of Registration Statement and Prospectus. The Company will furnish to MLV and its counsel (at the expense of the Company) copies
of the Registration Statement, the U.S. Prospectus (including all documents incorporated by reference therein) and all amendments
and supplements to the Registration Statement or U.S. Prospectus that are filed with the Commission during the Prospectus Delivery
Period (including all documents filed with the Commission during such period that are deemed to be incorporated by reference therein)
in each case as soon as reasonably practicable and in such quantities as MLV may from time to time reasonably request and, at MLV’s
request, will also furnish copies of the U.S. Prospectus to each exchange or market on which sales of the Placement Shares may
be made; provided, however, that the Company shall not be required to furnish any document (other than the U.S. Prospectus) to
MLV to the extent such document is available on EDGAR.
(f) Earnings
Statement. The Company will make generally available to its security holders as soon as practicable, but in any event not later
than 15 months after the end of the Company’s current fiscal quarter, an earnings statement covering a 12-month period that
satisfies the provisions of Section 11(a) and Rule 158 of the Securities Act.
(g)
Use of Proceeds. The Company will use the Net Proceeds as described in the U.S. Prospectus in the section entitled “Use
of Proceeds.”
(h) Notice
of Other Sales. During the pendency of any Placement Notice given hereunder, the Company shall provide MLV with written notice
as promptly as reasonably possible before it will, directly or indirectly, offer to sell, sell, contract to sell, grant any option
to sell or otherwise dispose of any Common Shares (other than the Placement Shares offered pursuant to this Agreement) or securities
convertible into or exchangeable for Common Shares, warrants or any rights to purchase or acquire, Common Shares; provided, however,
that such notice will not be required in connection with the Company’s issuance, grant or sale of (i) Common Shares,
options to purchase Common Shares or Common Shares issuable upon the exercise of options, pursuant to any employee or director
stock option or benefits plan, stock ownership plan or dividend reinvestment plan (but not Common Shares subject to a waiver to
exceed plan limits in its dividend reinvestment plan) of the Company whether now in effect or hereafter implemented; (ii) Common
Shares issuable upon conversion of securities or the exercise of warrants, options or other rights in effect or disclosed as outstanding
in the Registration Statement or the U.S. Prospectus, and (iii) the issuance of securities in connection with an acquisition, merger
or sale or purchase of assets; and (iv) Common Shares, or securities convertible into or exercisable for Common Shares, issued
pursuant to consulting arrangements or service provider arrangements the primary purpose of which is not to raise capital, unless,
in each case, such arrangements are required to be disclosed on a current report on Form 6-K. In addition, while this Agreement
is in force and shall not have expired, terminated or been terminated, during the period beginning on the fifth (5th)
Trading Day immediately prior to the date on which any Placement Notice is delivered to MLV hereunder and ending on the fifth (5th)
Trading Day immediately following the final Settlement Date with respect to Placement Shares sold pursuant to such Placement Notice
(or, if the Placement Notice has been terminated or suspended prior to the sale of all Placement Shares covered by a Placement
Notice, the date of such suspension or termination), the Company will not, directly or indirectly, sell, contract to sell, grant
any option to sell or otherwise dispose of any Common Shares (other than the Placement Shares offered pursuant to this Agreement)
or securities convertible into or exchangeable for Common Shares, warrants or any rights to purchase or acquire, Common Shares
in any other “at-the-market” offering.
(i) Change
of Circumstances. The Company will, at any time during the pendency of a Placement Notice given hereunder, advise MLV promptly
after it shall have received notice or obtained knowledge thereof, of any information or fact that would alter or affect in any
material respect any opinion, certificate, letter or other document required to be provided to MLV pursuant to this Agreement.
(j) Due
Diligence Cooperation. The Company will cooperate with any reasonable due diligence review conducted by MLV or its representatives
in connection with the transactions contemplated hereby, including, without limitation, providing information and making available
documents and senior corporate officers, during regular business hours and at the Company’s principal offices, as MLV may
reasonably request.
(k) Required
Filings Relating to Placement of Placement Shares. The Company agrees to disclose in it quarterly reports, annual information
form or annual report on Form 40-F or 20-F, as applicable, the amount of Placement Shares sold through MLV, the Net Proceeds to
the Company and the compensation payable by the Company to MLV with respect to such Placement Shares.
(l) Representation
Dates; Certificate. On or prior to the delivery of the first Placement Notice and each time the Company subsequently:
(i) files a
U.S. Prospectus relating to the Placement Shares, amends the Registration Statement by means of a post-effective amendment or amends
or supplements the Prospectus relating to the Placement Shares (other than a prospectus supplement relating solely to an offering
of securities other than the Placement Shares) by means of a sticker or supplement, but not by means of incorporation of documents
by reference into the Registration Statement or the U.S. Prospectus relating to the Placement Shares;
(ii) files
an annual report on Form 20-F or Form 40-F under the Exchange Act (including any Form 20-F/A or Form 40-F/A that contains restated
financial statements); or
(iii) furnishes
its unaudited interim financial statements and management’s discussion and analysis on Form 6-K under the Exchange Act (each
date of filing of one or more of the documents referred to in clauses (i) through (iii) shall be a “Representation Date”);
the Company shall furnish
MLV with a certificate, in the form attached hereto as Exhibit 7(l) within three Trading Days. The requirement to provide a certificate
under this Section 7(l) shall be waived for any Representation Date occurring during a fiscal quarter during which the Company
does not intend to sell Placement Shares prior to the next occurring Representation Date; provided, however, that such waiver shall
not apply for any Representation Date on which the Company files its annual report on Form 20-F or Form 40-F. Notwithstanding the
foregoing, if the Company subsequently decides to sell Placement Shares following a Representation Date when the Company relied
on such waiver and did not provide MLV with a certificate under this Section 7(l), then before the Company delivers the Placement
Notice or MLV sells any Placement Shares, the Company shall provide MLV with a certificate, in the form attached hereto as Exhibit
7(l), dated the date of the Placement Notice.
(m) Legal
Opinions. (1) On or prior to the delivery of the first Placement Notice, and (2) within ten (10) Trading Days after each Representation
Date with respect to which the Company is obligated to deliver a certificate in the form attached hereto as Exhibit 7(l) for which
no waiver is applicable, the Company shall cause to be furnished to MLV written opinions of each of Blake, Cassels & Graydon
LLP and Skadden, Arps, Slate, Meagher & Flom LLP (collectively, “Company Counsel”), or other counsel reasonably
satisfactory to MLV, modified, as necessary, to relate to the Registration Statement, the U.S. Prospectus and Canadian Prospectus,
as applicable, as then amended or supplemented; provided, however, the Company shall be required to furnish to MLV no more than
one opinion per calendar quarter from each Company Counsel; provided, further, that in lieu of such opinions for Representation
Dates after the date hereof, Company Counsel may furnish MLV with a letter (a “Reliance Letter”) to the effect
that MLV may rely on a prior opinion delivered under this Section 7(m) to the same extent as if it were dated the date of such
letter (except that statements in such prior opinion shall be deemed to relate to the Registration Statement, the U.S. Prospectus
and Canadian Prospectus, as applicable, as amended or supplemented as of the date of the Reliance Letter).
(n) Comfort
Letter. (1) On or prior to the delivery of the first Placement Notice and (2) within ten (10) Trading Days after the filing
by the Company of an annual report on Form 20-F or Form 40-F under the Exchange Act, the Company shall cause its independent accountants
to furnish MLV letters (the “Comfort Letters”), dated the date the Comfort Letter is delivered, which shall
meet the requirements set forth in this Section 7(n). The Comfort Letter from the Company’s independent accountants
shall be in a form and substance reasonably satisfactory to MLV, (i) confirming that they are an independent public accounting
firm within the meaning of the Securities Act and the PCAOB, (ii) stating, as of such date, the conclusions and findings of such
firm with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters”
to underwriters in connection with registered public offerings (the first such letter, the “Initial Comfort Letter”)
and (iii) updating the Initial Comfort Letter with any information that would have been included in the Initial Comfort Letter
had it been given on such date and modified as necessary to relate to the Registration Statement and the U.S. Prospectus, as amended
and supplemented to the date of such letter.
(o) Market
Activities. The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that
constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Placement Shares or (ii) sell, bid for, or purchase Common Shares in violation
of Regulation M, as applicable, or pay anyone any compensation for soliciting purchases of the Placement Shares other than MLV.
(p) Investment
Company Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that neither it nor any of its
Subsidiaries will be or become, at any time prior to the termination of this Agreement, an “investment company,” as
such term is defined in the Investment Company Act, assuming no change in the Commission’s current interpretation as to entities
that are not considered an investment company.
(q) No
Offer to Sell. Other than an Issuer Free Writing Prospectus approved in advance by the Company and MLV in its capacity as agent
hereunder, neither MLV nor the Company (including its agents and representatives, other than MLV in their capacity as such) will
make, use, prepare, authorize, approve or refer to any written communication (as defined in Rule 405 under the Securities Act),
required to be filed with the Commission, that constitutes an offer to sell or solicitation of an offer to buy Placement Shares
hereunder.
(r) Sarbanes-Oxley
Act. The Company and the Subsidiaries will maintain disclosure controls and procedures and internal controls over financial
reporting (each as defined in Rule 13a-15 under the Exchange Act) that comply with the requirements of the Exchange Act.
Representations
and Covenants of MLV. MLV represents, warrants and covenants to the Company that it is duly registered as a broker-dealer under
FINRA, the Exchange Act and the applicable statutes and regulations of each state in which the Placement Shares will be offered
and sold, except such states in which MLV is exempt from registration or such registration is not otherwise required. MLV shall
continue, for the term of this Agreement, to be duly registered as a broker-dealer under FINRA, the Exchange Act and the applicable
statutes and regulations of each state in which the Placement Shares will be offered and sold, except such states in which MLV
is exempt from registration or such registration is not otherwise required, during the term of this Agreement. MLV will comply
with all applicable law and regulations in connection with the Placement Shares, including but not limited to Regulation M under
the Exchange Act.
8. Payment
of Expenses.
The Company will pay
all expenses incident to the performance of its obligations under this Agreement, including expenses related to (i) the preparation,
filing, including any fees required by the Commission, and printing of the Registration Statement (including financial statements
and exhibits) as originally filed and of each amendment and supplement thereto and each Issuer Free Writing Prospectus, in such
number as MLV shall reasonably deem necessary, (ii) the preparation, issuance and delivery of the certificates, if any, for
the Placement Shares to MLV, including any stock or other transfer taxes and any capital duties, stamp duties or other duties or
taxes (other than income taxes) payable upon the sale, issuance or delivery of the Placement Shares to MLV, (iii) the fees
and disbursements of the Company’s counsel, accountants and other advisors, (iv) the actual and documented fees and
expenses of the transfer agent and registrar for the Common Shares, (v) the filing fees incident to any review by FINRA of
the terms of the sale of the Placement Shares, (vi) the fees and disbursements of counsel to MLV in an amount not to exceed $25,000,
and (vii) the fees and expenses incurred in connection with the listing of the Placement Shares on the Exchanges.
9. Conditions
to MLV’s Obligations. The obligations of MLV hereunder with respect to a Placement will be subject to the continuing
accuracy and completeness of the representations and warranties made by the Company herein, to the due performance by the Company
of its obligations hereunder, to the completion by MLV of a due diligence review satisfactory to it in its reasonable judgment,
and to the continuing satisfaction (or waiver by MLV in its sole discretion) of the following additional conditions:
(a) Registration
Statement Effective. The Registration Statement shall have become effective and shall be available for the sale of all Placement
Shares contemplated to be issued by any Placement Notice.
(b) No
Material Notices. None of the following events shall have occurred and be continuing: (i) receipt by the Company of any
request for additional information from the Commission or any other federal or state governmental authority during the period of
effectiveness of the Registration Statement the response to which would require any post-effective amendments or supplements to
the Registration Statement or the Prospectuses; (ii) the issuance by the Commission or any other federal or state governmental
authority of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for
that purpose; (iii) receipt by the Company of any notification with respect to the suspension of the qualification or exemption
from qualification of any of the Placement Shares for sale in any jurisdiction or the initiation or threatening of any proceeding
for such purpose; or (iv) the occurrence of any event that requires the making of any changes in the Registration Statement,
the Prospectuses or material documents incorporated therein so that, in the case of the Registration Statement, it will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein not misleading and, that in the case of the Prospectuses, they will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading.
(c) No
Misstatement or Material Omission. MLV shall not have advised the Company that the Registration Statement or U.S. Prospectus,
or any amendment or supplement thereto, contains an untrue statement of fact that in MLV’s reasonable opinion is material,
or omits to state a fact that in MLV’s opinion is material and is required to be stated therein or is necessary to make the
statements therein not misleading.
(d) Material
Changes. Except as contemplated in the U.S. Prospectus, or disclosed in the Company’s reports filed with or furnished
to the Commission, there shall not have been any material adverse change, on a consolidated basis, in the authorized capital share
of the Company or any Material Adverse Effect, or any development that could reasonably be expected to cause a Material Adverse
Effect the effect of which, in the reasonable judgment of MLV (without relieving the Company of any obligation or liability it
may otherwise have), is so material as to make it impracticable or inadvisable to proceed with the offering of the Placement Shares
on the terms and in the manner contemplated in the U.S. Prospectus.
(e) Legal
Opinions. MLV shall have received the opinions and letters of Company Counsel required to be delivered pursuant Section
7(m) on or before the date on which such delivery of such opinions and letters are required pursuant to Section 7(m).
(f) Comfort
Letter. MLV shall have received the Comfort Letter required to be delivered pursuant Section 7(n) on or before the date
on which such delivery of such letter is required pursuant to Section 7(n).
(g) Representation
Certificate. MLV shall have received the certificate required to be delivered pursuant to Section 7(l) on or before
the date on which delivery of such certificate is required pursuant to Section 7(l).
(h) No
Suspension. Trading in the Common Shares shall not have been suspended on the Exchanges and the Common Shares shall not have
been delisted from the Exchanges.
(i) Other
Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(l), the Company
shall use its commercially reasonable efforts to furnish to MLV such appropriate further information, certificates and documents
as MLV may reasonably request and which are usually and customarily furnished by an issuer of securities in connection with a securities
offering. All such information, certificates, and other documents will be in compliance with the provisions hereof. The Company
will furnish MLV with such conformed copies of such information, certificates, and other documents as MLV shall reasonably request.
(j) Securities
Act Filings Made. All filings with the Commission required by Form F-10 under the Securities Act to have been filed prior to
the issuance of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such filing
by Form F-10.
(k) Approval
for Listing. The Placement Shares shall either have been approved for listing on the Exchanges, subject only to notice of issuance,
or the Company shall have filed an application for listing of the Placement Shares on the Exchanges at, or prior to, the issuance
of any Placement Notice.
(l) No
Termination Event. There shall not have occurred any event that would permit MLV to terminate this Agreement pursuant to Section
12(a).
10. Indemnification
and Contribution.
(a) Company
Indemnification. The Company agrees to indemnify and hold harmless MLV, its partners, members, directors, officers, employees
and agents and each person, if any, who controls MLV within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act against any and all loss, liability, claim, damage and expense whatsoever (including any and all investigative,
legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceedings
or any claim asserted), as incurred, joint or several, arising out of or based upon any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement (or any amendment thereto), or the omission or alleged omission therefrom
of a material fact required to be stated therein or necessary to make the statements therein not misleading, or arising out of
any untrue statement or alleged untrue statement of a material fact included in any related Issuer Free Writing Prospectus or the
Prospectuses (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided,
however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising
out of any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written
information furnished to the Company by MLV expressly for use in the Registration Statement (or any amendment thereto), or in any
related Issuer Free Writing Prospectus or the Prospectuses (or any amendment or supplement thereto).
(b) MLV
Indemnification. MLV agrees to indemnify and hold harmless the Company and its directors and each officer of the Company who
signed the Registration Statement or the Canadian Prospectus, and each person, if any, who (i) controls the Company within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act or (ii) is controlled by or is under common
control with the Company against any and all loss, liability, claim, damage and expense described in the indemnity contained in
Section 10(a), as incurred, but only insofar as such loss, liability, claim, damage and expense arise out of or are based,
directly or indirectly, upon untrue statements or omissions, or alleged untrue statements or omissions, made in the Registration
Statement (or any amendments thereto), the Prospectus (or any amendment or supplement thereto) or any Free Writing Prospectus in
reliance upon and in conformity with information furnished to the Company in writing by MLV expressly for use therein.
(c) Procedure.
Any party that proposes to assert the right to be indemnified under this Section 10 will, promptly after receipt of notice
of commencement of any action against such party in respect of which a claim is to be made against an indemnifying party or parties
under this Section 10, notify each such indemnifying party of the commencement of such action, enclosing a copy of all papers
served, but the omission so to notify such indemnifying party will not relieve the indemnifying party from (i) any liability
that it might have to any indemnified party otherwise than under this Section 10 and (ii) any liability that it may
have to any indemnified party under the foregoing provision of this Section 10 unless, and only to the extent that, such
omission results in the forfeiture or material impairment of substantive rights or defenses by the indemnifying party. If any such
action is brought against any indemnified party and it notifies the indemnifying party of its commencement, the indemnifying party
will be entitled to participate in and, to the extent that it elects by delivering written notice to the indemnified party promptly
after receiving notice of the commencement of the action from the indemnified party, jointly with any other indemnifying party
similarly notified, to assume the defense of the action, with counsel reasonably satisfactory to the indemnified party, and after
notice from the indemnifying party to the indemnified party of its election to assume the defense, the indemnifying party will
not be liable to the indemnified party for any legal or other expenses except as provided below. The indemnified party will have
the right to employ its own counsel in any such action, but the fees, expenses and other charges of such counsel will be at the
expense of such indemnified party unless (1) the employment of counsel by the indemnified party has been authorized in writing
by the indemnifying party, (2) the indemnified party has reasonably concluded (based on advice of counsel) that there may
be legal defenses available to it or other indemnified parties that are different from or in addition to those available to the
indemnifying party, (3) a conflict or potential conflict exists (based on advice of counsel to the indemnified party) between
the indemnified party and the indemnifying party (in which case the indemnifying party will not have the right to direct the defense
of such action on behalf of the indemnified party) or (4) the indemnifying party has not in fact employed counsel to assume
the defense of such action within a reasonable time after receiving notice of the commencement of the action, in each of which
cases the reasonable fees, disbursements and other charges of counsel will be at the expense of the indemnifying party or parties.
It is understood that the indemnifying party or parties shall not, in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one separate firm admitted
to practice in such jurisdiction at any one time for all such indemnified party or parties. All such fees, disbursements and other
charges will be reimbursed by the indemnifying party promptly after the indemnifying party receives a written invoice relating
to fees, disbursements and other charges in reasonable detail. An indemnifying party will not, in any event, be liable for any
settlement of any action or claim effected without its written consent. No indemnifying party shall, without the prior written
consent of each indemnified party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim,
action or proceeding relating to the matters contemplated by this Section 11 (whether or not any indemnified party is a
party thereto), unless such settlement, compromise or consent (1) includes an unconditional release of each indemnified party
from all liability arising out of such litigation, investigation, proceeding or claim and (2) does not include a statement
as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
(d) Contribution.
In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing
paragraphs of this Section 10 is applicable in accordance with its terms but for any reason is held to be unavailable from
the Company or MLV, the Company and MLV will contribute to the total losses, claims, liabilities, expenses and damages (including
any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action,
suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than
MLV, such as persons who control the Company within the meaning of the Securities Act, officers of the Company who signed the Registration
Statement or the Canadian Prospectus and directors of the Company, who also may be liable for contribution) to which the Company
and MLV may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the
one hand and MLV on the other hand. The relative benefits received by the Company on the one hand and MLV on the other hand shall
be deemed to be in the same proportion as the total Net Proceeds from the sale of the Placement Shares (net of commissions to MLV
but before deducting expenses) received by the Company bear to the total compensation received by MLV (before deducting expenses)
from the sale of Placement Shares on behalf of the Company. If, but only if, the allocation provided by the foregoing sentence
is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect
not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one hand,
and MLV, on the other hand, with respect to the statements or omission that resulted in such loss, claim, liability, expense or
damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering. Such
relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to information supplied by the Company or MLV, the intent
of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission.
The Company and MLV agree that it would not be just and equitable if contributions pursuant to this Section 10(d) were to
be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations
referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense, or damage,
or action in respect thereof, referred to above in this Section 10(d) shall be deemed to include, for the purpose of this
Section 10(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim to the extent consistent with Section 10(c) hereof. Notwithstanding the foregoing provisions
of this Section 10(d), MLV shall not be required to contribute any amount in excess of the commissions received by it under
this Agreement and no person found guilty of fraudulent misrepresentation (within the meaning of Section 10(f) of the Securities
Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of
this Section 10(d), any person who controls a party to this Agreement within the meaning of the Securities Act, and any
officers, directors, partners, employees or agents of MLV, will have the same rights to contribution as that party, and each officer
and director of the Company who signed the Registration Statement or the Canadian Prospectus will have the same rights to contribution
as the Company, subject in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice
of commencement of any action against such party in respect of which a claim for contribution may be made under this Section
10(d), will notify any such party or parties from whom contribution may be sought, but the omission to so notify will not relieve
that party or parties from whom contribution may be sought from any other obligation it or they may have under this Section
10(d) except to the extent that the failure to so notify such other party materially prejudiced the substantive rights or defenses
of the party from whom contribution is sought. Except for a settlement entered into pursuant to the last sentence of Section
10(c) hereof, no party will be liable for contribution with respect to any action or claim settled without its written consent
if such consent is required pursuant to Section 10(c) hereof.
11. Representations
and Agreements to Survive Delivery. The indemnity and contribution agreements contained in Section 10 of this Agreement
and all representations and warranties of the Company herein or in certificates delivered pursuant hereto shall survive, as of
their respective dates, regardless of (i) any investigation made by or on behalf of MLV, any controlling persons, or the Company
(or any of their respective officers, directors or controlling persons), (ii) delivery and acceptance of the Placement Shares
and payment therefor or (iii) any termination of this Agreement.
12. Termination.
(a) MLV
may terminate this Agreement, by notice to the Company, as hereinafter specified at any time (1) if there has been, since
the time of execution of this Agreement or since the date as of which information is given in the Prospectuses, any Material Adverse
Effect, or any development that has actually occurred and is reasonably expected to have a Material Adverse Effect has occurred
or in the reasonable judgment of MLV makes it impractical or inadvisable to market the Placement Shares hereunder, (2) if
there has occurred any material adverse change in the financial markets in the United States or the international financial markets,
any outbreak of hostilities or escalation thereof or other calamity or crisis or any change or development involving a prospective
change in national or international political, financial or economic conditions, in each case the effect of which, in the reasonable
judgment of MLV, makes it impractical or inadvisable to sell the Placement Shares hereunder, (3) if trading in the Common
Shares has been suspended or limited by the Commission or the Exchange, or if trading generally on the NASDAQ has been suspended
or limited, or minimum prices for trading have been fixed on the NASDAQ, (4) if any suspension of trading of any securities of
the Company on any exchange or in the over-the-counter market shall have occurred and be continuing, (5) if a major disruption
of securities settlements or clearance services in the United States shall have occurred and be continuing, or (6) if a banking
moratorium has been declared by either U.S. Federal or New York authorities. Any such termination shall be without liability of
any party to any other party except that the provisions of Section 9 (Expenses), Section 10 (Indemnification), Section
11 (Survival of Representations), Section 17 (Applicable Law; Waiver of Jury Trial) and Section 18 (Consent to
Jurisdiction) hereof shall remain in full force and effect notwithstanding such termination. If MLV elects to terminate this Agreement
as provided in this Section 12(a), MLV shall provide the required notice as specified in Section 13 (Notices).
(b) (i) The
Company shall have the right, by giving ten (10) days notice as hereinafter specified to terminate this Agreement in its sole discretion
at any time after the date of this Agreement.
(ii) If
MLV declines any commercially reasonable Placement Notice pursuant to Section 2 of this Agreement, then the Company shall
have the right to terminate this Agreement by giving written notice of termination to MLV. Any such termination shall be effective
immediately upon a delivery of a termination notice by the Company to MLV.
Any termination pursuant
to Section 12(b) shall be without liability of any party to any other party except that the provisions of Section 9, Section
10, Section 11, Section 17 and Section 18 hereof shall remain in full force and effect notwithstanding
such termination.
(c) MLV
shall have the right, by giving ten (10) days notice as hereinafter specified to terminate this Agreement in its sole discretion
at any time after the date of this Agreement. Any such termination shall be without liability of any party to any other party except
that the provisions of Section 9, Section 10, Section 11, Section 17 and Section 18 hereof shall remain in full force and effect
notwithstanding such termination.
(d) Unless
earlier terminated pursuant to this Section 12, this Agreement shall automatically terminate upon the issuance and sale
of all of the Placement Shares through MLV on the terms and subject to the conditions set forth herein, except that the provisions
of Section 9, Section 10, Section 11, Section 17 and Section 18 hereof shall remain in full
force and effect notwithstanding such termination.
(e) This
Agreement shall remain in full force and effect unless terminated pursuant to Sections 12(a), (b), (c) or
(d) above or otherwise by mutual agreement of the parties; provided, however, that any such termination by mutual agreement
shall in all cases be deemed to provide that Section 9, Section 10, Section 11, Section 17 and Section
18 hereof shall remain in full force and effect. Upon termination of this Agreement, the Company shall not have any liability
to MLV for any discount, commission or other compensation with respect to any Placement Shares not otherwise sold by MLV under
this Agreement.
(f) Any
termination of this Agreement shall be effective on the date specified in such notice of termination; provided, however, that such
termination shall not be effective until the close of business on the date of receipt of such notice by MLV or the Company, as
the case may be. If such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such Placement
Shares shall settle in accordance with the provisions of this Agreement.
(g) Subject
to the additional limitations set forth in Section 9 of this Agreement, in the event of termination of this Agreement prior to
the sale of any Placement Shares, MLV shall be entitled only to reimbursement of its out-of-pocket expenses actually incurred.
13. Notices.
All notices or other communications required or permitted to be given by any party to any other party pursuant to the terms of
this Agreement shall be in writing, unless otherwise specified, and if sent to MLV, shall be delivered to:
| |
MLV & Co. LLC |
| |
1251 Avenue of the Americas |
| |
41st Floor |
| |
New York, NY 10020 |
| |
Attention: General Counsel |
| |
Email: dcolucci@mlvco.com |
| |
|
| with a copy to: |
| |
|
| |
LeClairRyan, A Professional Corporation |
| |
885 Third Avenue, 16th Floor |
| |
New York, New York 10022 |
| |
Attention: James T. Seery |
| |
Email: james.seery@leclairryan.com |
| |
|
| And if to the Company, shall be delivered to: |
| |
|
| |
Cardiome Pharma Corp. |
| |
6190 Agronomy Road, 6th Floor |
| |
Vancouver, British Columbia |
| |
Canada, V6T 1Z3 |
| |
Attention: Jennifer Archibald |
| |
Chief Financial Officer |
| |
Email: Jarchibald@cardiome.com |
| With a copy to: |
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|
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Skadden, Arps, Slate, Meager & Flom LLP |
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222 Bay Street, Suite 1750 |
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P.O. Box 258 |
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Toronto, Ontario |
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Canada, M5K 1J5 |
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Attention: Riccardo A. Leofanti, Esq. |
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Email: Riccardo.Leofanti@skadden.com |
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| And to: |
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Blake, Cassels & Graydon LLP |
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595 Burrard St #2600 |
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Vancouver, British Columbia |
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Canada V7X 1L3 |
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Attention: Joseph A. Garcia, Esq. |
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Email: joseph.garcia@blakes.com |
Each party to this
Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such
purpose. Each such notice or other communication shall be deemed given (i) when delivered personally, by email, or by verifiable
facsimile transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such
day is not a Business Day, on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized
overnight courier and (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail,
return receipt requested, postage prepaid). For purposes of this Agreement, “Business Day” shall mean any day
on which the Exchange and commercial banks in the City of New York are open for business.
An electronic communication
(“Electronic Notice”) shall be deemed written notice for purposes of this Section 13 if sent to the electronic
mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the
party sending Electronic Notice receives confirmation of receipt by the receiving party. Any party receiving Electronic Notice
may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”)
which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.
14. Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and MLV and their respective successors
and the affiliates, controlling persons, partners, members, officers, directors, employees and agents referred to in Section
11 hereof. References to any of the parties contained in this Agreement shall be deemed to include the successors and permitted
assigns of such party. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason
of this Agreement, except as expressly provided in this Agreement. Neither party may assign its rights or obligations under this
Agreement without the prior written consent of the other party.
15. Adjustments
for Stock Splits. The parties acknowledge and agree that all share-related numbers contained in this Agreement shall be adjusted
to take into account any share consolidation, stock split, stock dividend or similar event effected with respect to the Common
Shares.
16. Entire
Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and Placement Notices
issued pursuant hereto, constitute the entire agreement of the parties with respect to the subject matter hereof and supersede
all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to
the subject matter hereof. Neither this Agreement nor any term hereof may be amended except pursuant to a written instrument executed
by the Company and MLV. In the event that any one or more of the provisions contained herein, or the application thereof in any
circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall
be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the
terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision was not contained
herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall
be in accordance with the intent of the parties as reflected in this Agreement.
17. GOVERNING
LAW AND TIME; WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. EACH PARTY
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
18. CONSENT
TO JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING
IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION
CONTEMPLATED HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT
IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, THAT SUCH SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT
FORUM OR THAT THE VENUE OF SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF
PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF (CERTIFIED OR REGISTERED
MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH
SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO
LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.
19. Use
of Information. MLV may not use any information gained in connection with this Agreement and the transactions contemplated
by this Agreement, including due diligence, to advise any party with respect to transactions not expressly approved by the Company.
MLV acknowledges that any information gained in connection with this Agreement and the transactions contemplated by this Agreement
are subject to confidentiality and other restrictions.
20. Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. Delivery of an executed Agreement by one party to the other may be made by facsimile
transmission.
21. Effect
of Headings.
The section, schedules
and exhibit headings herein are for convenience only and shall not affect the construction hereof.
22. Permitted
Free Writing Prospectuses.
Each of the Company
and MLV represents, warrants and agrees that, unless it obtains the prior consent of the other party, it has not made and will
not make any offer relating to the Placement Shares that would constitute an Issuer Free Writing Prospectus, or that would otherwise
constitute a “free writing prospectus,” as defined in Rule 405, required to be filed with the Commission. Any
such free writing prospectus consented to by MLV or by the Company, as the case may be, is hereinafter referred to as a “Permitted
Free Writing Prospectus.” The Company represents and warrants that it has treated and agrees that it will treat each Permitted
Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied and will
comply with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely filing with
the Commission where required, legending and record keeping.
23. Absence
of Fiduciary Relationship.
The Company acknowledges
and agrees that:
(a) MLV
is acting solely as agent in connection with the public offering of the Placement Shares and in connection with each transaction
contemplated by this Agreement and the process leading to such transactions, and no fiduciary or advisory relationship between
the Company or any of its respective affiliates, shareholders (or other equityholders), creditors or employees or any other party,
on the one hand, and MLV, on the other hand, has been or will be created in respect of any of the transactions contemplated by
this Agreement, irrespective of whether or not MLV has advised or is advising the Company on other matters, and MLV has no obligation
to the Company with respect to the transactions contemplated by this Agreement except the obligations expressly set forth in this
Agreement;
(b) it
is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions contemplated
by this Agreement;
(c) MLV
has not provided any legal, accounting, regulatory or tax advice with respect to the transactions contemplated by this Agreement
and it has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate;
(d) it
is aware that MLV and its affiliates are engaged in a broad range of transactions which may involve interests that differ from
those of the Company and MLV has no obligation to disclose such interests and transactions to the Company by virtue of any fiduciary,
advisory or agency relationship or otherwise; provided that MLV hereby agrees not to engage in any such transaction which would
cause its interests to be in direct conflict with the best interests of the Company; and
(e) it
waives, to the fullest extent permitted by law, any claims it may have against MLV for breach of fiduciary duty or alleged breach
of fiduciary duty in connection with the sale of Placement Shares under this Agreement and agrees that MLV shall not have any liability
(whether direct or indirect, in contract, tort or otherwise) to it in respect of such a fiduciary duty claim or to any person asserting
a fiduciary duty claim on its behalf or in right of it or the Company, employees or creditors of Company, other than in respect
of MLV’s obligations under this Agreement and to keep information provided by the Company to MLV and MLV’s counsel
confidential to the extent not otherwise publicly-available.
24. Definitions.
As used in this Agreement,
the following terms have the respective meanings set forth below:
“Applicable
Time” means (i) each Representation Date and (ii) the time of each sale of any Placement Shares pursuant to this Agreement.
“Issuer Free
Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433, relating to
the Placement Shares.
“Rule 405,”
and “Rule 433” refer to such rules promulgated under the Securities Act.
All references in this
Agreement to financial statements and schedules and other information that is “contained,” “included” or
“stated” in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed
to mean and include all such financial statements and schedules and other information that is incorporated by reference in the
Registration Statement or the U.S. Prospectus, as the case may be.
All references in this
Agreement to the Registration Statement, the U.S. Prospectus or any amendment or supplement to any of the foregoing shall be deemed
to include the copy filed with the Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing Prospectus
(other than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not required to be filed with the Commission)
shall be deemed to include the copy thereof filed with the Commission pursuant to EDGAR; and all references in this Agreement to
“supplements” to the U.S. Prospectus shall include, without limitation, any supplements, “wrappers” or
similar materials prepared in connection with any offering, sale or private placement of any Placement Shares by MLV outside of
the United States to the extent those materials are reviewed and consented to in advance by the Company.
[Signature Page Follows]
If the foregoing correctly
sets forth the understanding between the Company and MLV, please so indicate in the space provided below for that purpose, whereupon
this letter shall constitute a binding agreement between the Company and MLV.
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Very truly yours, |
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Cardiome pharma corp. |
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By: |
/s/ William Hunter |
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Name: William Hunter |
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Title: Chief Executive Officer |
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ACCEPTED as of the date first-above written: |
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MLV & Co. LLC |
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By: |
/s/ Patrice McNicoll |
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Name: Patrice McNicoll |
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Title: Chief Executive Officer |
SCHEDULE 1
_________________________________
FORM OF PLACEMENT NOTICE
_________________________________
| From: |
Cardiome Pharma Corp. |
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| To: |
MLV & Co. LLC |
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Attention: Patrice McNicoll |
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| Subject: |
At Market Issuance—Placement Notice |
Gentlemen:
Pursuant to the terms
and subject to the conditions contained in the At Market Issuance Sales Agreement between Cardiome Pharma Corp. (the “Company”),
a corporation formed under the Canada Business Corporations Act, and MLV & Co. LLC (“MLV”), dated
February 18, 2014, the Company hereby requests that MLV sell up to ____________ of the Company’s Common Shares, no par value
per share, at a minimum market price of $_______ per share, during the time period beginning [month, day, time] and ending on the
earlier of [month, day, time] or such time as all such shares are sold.
SCHEDULE 2
__________________________
Notice Parties
__________________________
The Company
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David McMasters |
dmac@cardiome.com |
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Bill Hunter |
bhunter@cardiome.com |
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Jennifer Archibald |
jarchibald@cardiome.com |
MLV
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Randy Billhardt |
rbillhardt@mlvco.com |
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Dean Colucci |
dcolucci@mlvco.com |
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Ryan Loforte |
rloforte@mlvco.com |
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Patrice McNicoll |
pmcnicoll@mlvco.com |
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Miranda Toledano |
mtoledano@mlvco.com |
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With a copy to: |
mlvatmdesk@mlvco.com |
SCHEDULE 3
__________________________
Compensation
_________________________
The Company shall pay
to MLV in cash, upon each sale of Placement Shares pursuant to this Agreement, an amount equal to 3.0% of the gross proceeds from
each sale of Placement Shares.
SCHEDULE 4
__________________________
Subsidiaries
__________________________
Cardiome International
AG
Cardiome UK Limited
Correvio LLC
Correvio International
Sàrl
Correvio (UK) Ltd.
EXHIBIT 7(l)
Form of Representation
Date Certificate
This Officer’s
Certificate (this “Certificate”) is executed and delivered in connection with Section 7(l) of the At Market
Issuance Sales Agreement (the “Agreement”), dated February 18, 2014, and entered into between Cardiome
Pharma Corp. (the “Company”) and MLV & Co. LLC. All capitalized terms used but not defined herein shall
have the meanings given to such terms in the Agreement.
The undersigned has carefully examined
the Registration Statement, the U.S. Prospectus, any supplements to the U.S. Prospectus (each as defined in the Agreement) and
the Agreement and hereby certifies, in the capacity set forth below, that:
1. the representations and warranties of the Company in the Agreement are true and correct in all material respects on and as of the
date hereof and the Company has complied with all the agreements and satisfied all the conditions on its part to be performed or
satisfied at or prior to the date hereof;
2. to
the Company’s knowledge, no stop order suspending the effectiveness of the Registration Statement has been issued and no
proceedings for that purpose have been instituted or threatened; and
3. since
the date of the most recent financial statements included in the U.S. Prospectus (exclusive of any supplement thereto subsequent
to the date hereof), there has been no event or condition constituting a Material Adverse Effect, except as set forth in or contemplated
in the U.S. Prospectus (exclusive of any supplement thereto subsequent to the date hereof).
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CARDIOME PHARMA CORP. |
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By: |
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Name: |
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Title: |
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Date: |
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