Shareholders Rights Plan Agreement



 Exhibit 4.11 
 MED BIOGENE INC. 
 SHAREHOLDER RIGHTS PLAN AGREEMENT

 dated as of January 15, 2010 
 between 
 Med BioGene Inc. 
 and 
 Computershare Investor Services Inc. 
 As Rights Agent 







 MED BIOGENE SHAREHOLDER RIGHTS PLAN 
 Table of Contents 
  

					
	 	  	 	  	Page
	 ARTICLE 1 - INTERPRETATION
	  	2
	 1.1
	  	 Definitions
	  	2
	 1.2
	  	 Currency
	  	17
	 1.3
	  	 Grandfather Provision
	  	17
	 1.4
	  	 Holder
	  	17
	 1.5
	  	 Acting in Good Faith
	  	17
	 1.6
	  	 Acting Jointly or in Concert
	  	18
	 1.7
	  	 Headings and References
	  	18
	 1.8
	  	 Singular, Plural etc.
	  	18
	 1.9
	  	 Schedule
	  	18
		
	 ARTICLE 2 - THE RIGHTS
	  	18
	 2.1
	  	 Legend on Certificates
	  	18
	 2.2
	  	 Initial Exercise Price; Exercise of Rights; Detachment of Rights
	  	19
	 2.3
	  	 Adjustments to Exercise Price; Number of Rights
	  	22
	 2.4
	  	 Date on which Exercise is Effective
	  	28
	 2.5
	  	 Execution, Authentication, Delivery and Dating of Rights Certificates
	  	28
	 2.6
	  	 Registration, Registration of Transfer and Exchange
	  	28
	 2.7
	  	 Mutilated, Destroyed, Lost and Stolen Rights Certificates
	  	29
	 2.8
	  	 Persons Deemed Owners
	  	30
	 2.9
	  	 Delivery and Cancellation of Certificates
	  	30
	 2.10
	  	 Agreement of Rights Holders
	  	30
	 2.11
	  	 Rights Held by the Company and Subsidiaries
	  	31
		
	 ARTICLE 3 - ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN
TRANSACTIONS
	  	31
	 3.1
	  	 Flip-in Event
	  	31
		
	 ARTICLE 4 - THE RIGHTS AGENT
	  	33
	 4.1
	  	 General
	  	33
	 4.2
	  	 Merger, Amalgamation or Consolidation or Change of Name of Rights Agent
	  	34
	 4.3
	  	 Duties of Rights Agent
	  	35
	 4.4
	  	 Change of Rights Agent
	  	37
	 4.5
	  	 Compliance with Money Laundering Legislation
	  	37
	 4.6
	  	 Privacy Provision
	  	38
		
	 ARTICLE 5 - MISCELLANEOUS
	  	38
	 5.1
	  	 Redemption and Waiver
	  	38
	 5.2
	  	 Expiration
	  	39









					
	 5.3
	    	 Issuance of New Rights Certificates
	  	39
	 5.4
	    	 Supplements and Amendments
	  	40
	 5.5
	    	 Fractional Rights and Fractional Shares
	  	40
	 5.6
	    	 Rights of Action
	  	40
	 5.7
	    	 Holder of Rights Not Deemed a Shareholder
	  	41
	 5.8
	    	 Notice of Proposed Actions
	  	41
	 5.9
	    	 Notices
	  	41
	 5.10
	    	 Costs of Enforcement
	  	42
	 5.11
	    	 Successors
	  	42
	 5.12
	    	 Benefits of this Agreement
	  	42
	 5.13
	    	 Governing Law
	  	43
	 5.14
	    	 Counterparts
	  	43
	 5.15
	    	 Severability
	  	43
	 5.16
	    	 Effective Date
	  	43
	 5.17
	    	 Reconfirmation After Five Years
	  	43
	 5.18
	    	 Determinations and Actions by the Board of Directors
	  	44
	 5.19
	    	 Declaration as to Non-Canadian Holders
	  	44
	 5.20
	    	 Successor Companies
	  	45
	 5.21
	    	 Time of Essence
	  	46

 Exhibit A – Form of Rights
Certificate 
 Exhibit 1 – Form of Election to Exercise 
 Exhibit 2 – Form of Assignment 
  

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 MED BIOGENE SHAREHOLDER RIGHTS PLAN AGREEMENT 
 THIS SHAREHOLDER RIGHTS PLAN AGREEMENT was made as of January 15, 2010. 
 BETWEEN: 
 Med BioGene Inc.,
a company amalgamated under the laws of the Province of British Columbia. 
 (the “Company”) 
 OF THE FIRST PART 
 AND: 

Computershare Investor Services Inc., a corporation existing under the laws of Canada. 
 (the “Rights Agent”) 
 OF THE SECOND PART 
 WHEREAS the Board of Directors has determined that it is
advisable to adopt a shareholder rights plan (the “Rights Plan”), inter alia, in order to: 
  

	 	(a)	facilitate the maximization of shareholder values if a substantial portion of the Voting Shares of the Company are to be acquired by any Person;


  

	 	(b)	protect the Company and its shareholders from abusive acquisition tactics or acquisitions which may not be in the best interests of the Company and its shareholders;
and 

  

	 	(c)	provide a framework in which appropriate take-over bids for the Company can be put before its shareholders in a fair and proper manner so that its shareholders can make
a fully informed decision with respect to such take-over bids; 

 AND WHEREAS the Board of Directors has been
advised that, based upon the experiences of other companies and taking into account the circumstances itself, the adoption of the Rights Plan will assist the Company to achieve the intended results; 
 AND WHEREAS it is not the intention of the Board of Directors to adopt the Rights Plan as a means of preventing or deterring any Person from
seeking to acquire the Voting Shares or the assets of the Company, provided they do so in a manner that is fair to all








 
shareholders, or of foreclosing the ability of the Board of Directors to take any action that it, at its discretion, considers reasonable in the circumstances of any such transaction having
regard for the best interests of the Company and its shareholders; 
 AND WHEREAS in order to implement the Rights Plan, the
Board of Directors has: 
  

	 	(a)	authorized and declared effective 5:00 P.M. (Vancouver time) on the Effective Date (as hereinafter defined) a distribution of one right (a “Right”) in
respect of each Common Share outstanding at the Close of Business on the Effective Date (the “Record Time”); and 

  

	 	(b)	authorized the issuance of one Right in respect of each Common Share issued after the Record Time and prior to the earlier of the Separation Time (as hereinafter
defined) and the Expiration Time (as hereinafter defined); 

 AND WHEREAS each Right entitles the holder thereof,
after the Separation Time but before the Expiration Time, to purchase securities of the Company (or, in certain cases, of certain other entities) pursuant to the terms and subject to the conditions set forth herein; 
 AND WHEREAS the Company desires to appoint the Rights Agent to act on behalf of the Company and the holders of Rights, and the Rights Agent
is willing to so act, in connection with the issuance, transfer, exchange and replacement of Rights Certificates (as hereafter defined), the exercise of Rights and other matters referred to herein; 
 NOW, THEREFORE, in consideration of the premises and the respective agreements set forth herein, the parties hereto hereby agree as follows:

 ARTICLE 1 - INTERPRETATION 
  

	1.1	Definitions 

 For purposes
of this Agreement, the following terms have the meanings indicated: 
  

	 	(a)	“Acquiring Person” shall mean any Person who is the Beneficial Owner of 20% or more of the outstanding Voting Shares of the Company provided, however,
that the term “Acquiring Person” shall not include: 

  

	 	(i)	the Company or any Subsidiary or Affiliate, any employee, executive or director stock ownership or other benefit plan, any trust for the benefit of employees of the
Company or any Subsidiary or Affiliate, or any Person organized, appointed or established by the Company for or pursuant to the terms of any such plan or trust; 

  

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	 	(ii)	any Person who becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares of the Company after the Record Time and such Person’s Beneficial
Ownership does not exceed the number of Voting Shares Beneficially Owned by such Person immediately prior to the Record Time other than as a result of any one or a combination of: 

  

	 	(A)	acquisitions or redemptions by the Company of Voting Shares of the Company which, by reducing the number of Voting Shares outstanding, increases the proportionate
number of Voting Shares Beneficially Owned by such Person to 20% or more of the Voting Shares of the Company then outstanding (“Voting Share Reductions”); 

  

	 	(B)	share acquisitions made pursuant to a Permitted Bid or a Competing Permitted Bid (“Permitted Bid Acquisitions”); 

  

	 	(C)	share acquisitions (1) in respect of which the Board of Directors of the Company has waived the application of Section 3.1 pursuant to the provisions of
subsections 5.1(b) and 5.1(c) or (2) which were made prior to the date of this Agreement; or (3) pursuant to an amalgamation, merger or other statutory procedure requiring shareholder approval (“Exempt Acquisition”);


  

	 	(D)	the acquisition of Voting Shares upon the exercise of Convertible Securities received by such Person pursuant to a Permitted Bid Acquisition, Exempt Acquisition or a
Pro Rata Acquisition (as defined below) (“Convertible Security Acquisitions”); or 

  

	 	(E)	a Pro-rata Acquisition; 

 provided, however, that if a Person shall become the Beneficial Owner of 20% or more of the Voting Shares of the Company then outstanding by reason of any one or a combination of (i) Permitted Bid Acquisitions, (ii) Voting Share
Reductions, (iii) Exempt Acquisitions, or (iv) Convertible Security Acquisitions, or (v) Pro-rata Acquisitions and, after such Permitted Bid Acquisitions, Voting Share Reductions, Exempt Acquisitions, Convertible Security Acquisitions
or Pro-rata Acquisitions, and such Person is, at the time such Person becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares, or becomes, at any time thereafter while such Person is the Beneficial Owner of 20% or more of the
Voting Shares of the Company then outstanding, the Beneficial Owner of any additional Voting Shares constituting more than 1% of the Voting Shares then outstanding of the Company (other than pursuant to any one or combination of Permitted Bid
Acquisitions, Voting Share Reductions, Exempt Acquisitions, Convertible Security Acquisitions or Pro-rata Acquisitions) then as of the date such Person becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares while holding

  

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such additional Voting Shares, or becomes the beneficial holder of such additional Voting Shares, while the Beneficial Owner of 20% or more of the Voting Shares, as the case may be, such Person
shall be deemed to be an “Acquiring Person”; 
  

	 	(iii)	for the period of 10 days after the Disqualification Date (as hereinafter defined), any Person who becomes the Beneficial Owner of 20% or more of the outstanding Voting
Shares of the Company as a result of such Person becoming disqualified from relying on paragraph 1.1(g)(v) hereof solely because such Person has made or proposes to make a tender or exchange offer or Take-over Bid in respect of securities of
the Company alone or by acting jointly or in concert with any other Person; the first date of public announcement (which, for purposes of this definition, shall include, without limitation, a report filed pursuant to Section 102.1 of the
Securities Act (Ontario), Section 5.2 of MI 62-104 or Section 13(d) under the 1934 Exchange Act) by such Person or the Company of the intent to commence such a tender or exchange offer or Take-over Bid (or pursuant to any
comparable or successor laws, rules or regulations) being herein referred to as the “Disqualification Date”; or 

  

	 	(iv)	an underwriter or member of a banking or selling group that becomes the Beneficial Owner of 20% or more of the Voting Shares in connection with a distribution of
securities by way of prospectus or private placement. 

  

	 	(b)	“Adjusted Exercise Price” means the price at which a holder may purchase the securities issuable upon exercise of Rights pursuant to the terms of
paragraph 3.1(a)(ii) which, until adjustment thereof in accordance with the terms hereof, shall be equal to the Exercise Price multiplied by a fraction in which: 

  

	 	(i)	the numerator is the number of Shares per Right that may be purchased pursuant to paragraph 3.1(a)(ii); and 

  

	 	(ii)	the denominator is the number of Shares per Right that could have been purchased pursuant to paragraph 3.1(a)(i) in the event that there had been sufficient authorized
but unissued Common Shares to permit each holder of a Right (other than an Acquiring Person or a transferee of the kind described in paragraph 3.1(b)(ii)) to purchase the number of Common Shares to which they would have been entitled under paragraph
3.1(a)(i); 

  

	 	(c)	“Adjustment Factor” shall mean a fraction in which: 

  

	 	(i)	the numerator is equal to the Company’s authorized but unissued Voting Shares; and 

  

	 	(ii)	the denominator is equal to the Company’s issued and outstanding Voting Shares minus those Voting Shares that the Acquiring Person Beneficially owns;


  

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	 	(d)	“Affiliate” shall mean, when used to indicate a relationship with a specified body corporate, a Person that directly or indirectly through one or more
intermediaries controls, or is a body corporate controlled by, or under common control with, such specified body corporate; 

  

	 	(e)	“Agreement” means this Rights Agreement as amended, modified or supplemented from time to time; 

  

	 	(f)	“Associate” shall mean, when used to indicate a relationship with a specified Person, (i) a spouse of that Person, (ii) any Person of the
same or opposite sex with whom that Person is living in a conjugal relationship outside marriage, (iii) any relative of that Person if that relative has the same residence as that Person or (iv) any relative of such spouse or other Person
referred to in the immediately preceding clauses (i), (ii) or (iii) above, if that relative has the same residence as the specified Person; 

  

	 	(g)	Subject to Section 1.3, a Person shall be deemed the “Beneficial Owner”, and to have “Beneficial Ownership”, of, and to
“Beneficially Own”: 

  

	 	(i)	any securities of which such Person or any such Person’s Affiliates or Associates is an owner at law or in equity, 

  

	 	(ii)	any securities as to which such Person or any of such Person’s Affiliates or Associates has 

  

	 	(A)	the right to acquire upon the exercise of Convertible Securities; or 

  

	 	(B)	the right to acquire (whether such right is exercisable immediately or the lapse or after the passage of time or upon the occurrence of a contingency or otherwise)
pursuant to any agreement, arrangement, pledge or understanding, 

 in either case where such right is exercisable
within 60 days and whether or not on condition or the happening of any contingency (other than customary agreements with and between underwriters and banking group or selling group members with respect to a distribution of securities and other than
pledges of securities in the ordinary course of business), or 
  

	 	(iii)	any securities which are Beneficially Owned, directly or indirectly, within the meaning of paragraphs 1.1(g)(i) or (ii) by any other Person with which such
Person or any of such Person’s Affiliates or Associates in acting jointly or in concert; 

 provided, however,
that a Person shall not be deemed the “Beneficial Owner”, or to have “Beneficial Ownership” of, or to “Beneficially Own”, any security: 
  

	 	(iv)	 because such security has been agreed to be deposited or tendered pursuant to a Permitted Lock-up Agreement, or is otherwise deposited or



  

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tendered, to any Take-over Bid made by such Person, made by any of such Person’s Affiliates or Associates or made by any other Person acting jointly or in concert with such Person until such
deposited or tendered security has been taken up or paid for, whichever shall first occur; 


  

	 	(v)	because such Person, or any of such Persons’ Affiliates or Associates or any other Person referred to in paragraph 1.1(g)(iii), holds such security provided
that: 

  

	 	(A)	the ordinary business of any such Person (the “Investment Manager”) includes the management of investment funds for others (which, without limitation,
may include or be limited to one or more employee benefit plans or pension plans) and such security is held by the Investment Manager in the ordinary course of such business in the performance of such Investment Manager’s duties for the account
of any other Person, including the acquisition or holding of securities for non-discretionary accounts on behalf of a client by a broker or dealer registered under applicable securities laws (a “Client”); 


 

	 	(B)	such Person (the “Trust Company”) is licensed to carry on the business of a trust company under applicable laws and, as such, acts as trustee or
administrator or in a similar capacity in relation to the estates of deceased or incompetent Persons (each an “Estate Account”) or in relation to other accounts (each an “Other Account”) and holds such security in
the ordinary course of such duties for such Estate Accounts or Other Accounts; 

  

	 	(C)	the ordinary business of such person includes, acting as an agent of the Crown in the management of public assets (the “Crown Agent”);


  

	 	(D)	the Person is an independent person (the “Independent Person”) established by statute for, among other things, and the ordinary business or activity of
such Person includes, the administration of investment funds for employee benefit plans, pension plans, insurance plans or various public bodies; or 

  

	 	(E)	such Person (the “Administrator”) is the administrator or trustee of one or more pension funds, plans or related trusts (a “Plan”)
registered or qualified under the laws of Canada or any Province thereof or the laws of the United States of America or any State thereof or is a Plan; 

 provided that the Investment Manager, the Trust Company, the Crown Agent, the Independent Person, the Administrator and the Plan, as the case may be, is not then making, or has not announced a current
intention to

  

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make, a Take-over Bid alone or by acting jointly or in concert with any other Person, other than an Offer to Acquire Voting Shares or other securities pursuant to a distribution by the Company or
by means of ordinary market transactions (including pre-arranged trades entered into in the ordinary course of business of such Person) executed through the facilities of a stock exchange, securities quotation system or organized over-the-counter
market, alone, through its Affiliates or Associates or by acting jointly or in concert with any other Person; 
  

	 	(vi)	because such Person is (1) a Client of the same Investment Manager as another Person on whose account the Investment Manager holds such security, (2) because
such Person is an Estate Account or an Other Account of the same Trust Company as another Person on whose account the Trust Company holds such security or (3) a Plan with the same Administrator as another Plan on whose account the Administrator
holds such security; 

  

	 	(vii)	where such Person is: 

  

	 	(A)	a Client of an Investment Manager and such security is owned at law or in equity by the Investment Manager; 

  

	 	(B)	an Estate Account or an Other Account of a Trust Company and such security is owned at law or in equity by the Trust Company; or 

  

	 	(C)	a Plan and such security is owned at law or in equity by the Administrator of the Plan; 

  

	 	(viii)	where such Person is a registered holder of such security as a result of carrying on the business of, or acting as a nominee of, a securities depository;


 For the purposes of this Agreement in determining the percentage of the outstanding Voting Shares with respect
to which a Person is or is deemed to be the Beneficial Owner, all Voting Shares as to which such Person is deemed the Beneficial Owner shall be deemed outstanding; 
  

	 	(h)	“Board of Directors” shall mean the board of directors of the Company or, if duly constituted and whenever duly empowered, the executive committee of
the board of directors of the Company; 

  

	 	(i)	“Business Day” shall mean any day other than a Saturday, Sunday or a day that is treated as a holiday at the Company’s or the Rights Agent’s
principal executive offices in Vancouver, British Columbia; 

  

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	 	(j)	“Business Corporations Act (British Columbia)” shall mean the Business Corporations Act, S.B.C. 2002, c.57 as amended and the
regulations thereunder, and any comparable or successor laws or regulations thereto; 

  

	 	(k)	“Canadian Dollar Equivalent” of any amount which is expressed in United States dollars shall mean on any day the Canadian dollar equivalent of such
amount determined by reference to the Canadian-U.S. Exchange Rate on such date; 

  

	 	(l)	“Canadian-U.S. Exchange Rate” shall mean on any date the inverse of the U.S.-Canadian Exchange Rate; 

  

	 	(m)	“Close of Business” on any given date shall mean the time on such date (or, if such date is not a Business Day, the time on the next succeeding
Business Day) at which the office of the transfer agent for the Common Shares in the City of Vancouver, British Columbia (or, after the Separation Time, the offices of the Rights Agent in the City of Vancouver, British Columbia) becomes closed to
the public; 

  

	 	(n)	“Common Shares” shall mean Common Shares of the Company and, when used with reference to any Person other than the Company, shall mean the class or
classes of shares (or similar equity interest) with the greatest per share voting power entitled to vote generally in the election of all directors of such other Person or the equity securities or other equity interest of an entity having power
(whether or not exercised) to control or direct the management of such other Person; if such other Person is a Subsidiary of another person, “such other Person” as used herein shall mean the Person or Persons which ultimately control such
first-mentioned Person; 

  

	 	(o)	“Competing Permitted Bid” means a Take-over Bid that: 

  

	 	(i)	is made for the Voting Shares after a Permitted Bid for Voting Shares has been made but prior to the expiry of such Permitted Bid; 

  

	 	(ii)	satisfies all of the conditions of the definition of Permitted Bid subject to paragraph 1.1(o)(iii) below; and 

  

	 	(iii)	contains, and the take-up and payment for securities tendered or deposited is subject to, an irrevocable and unqualified condition that no Voting Shares will be taken
up and paid for pursuant to the Take-over Bid prior to the close of business on a date which is not earlier than the later of 35 days after the date of the Take-over Bid or the 60th day following the date of the earliest Permitted Bid;


  

	 	(p)	“Convertible Securities” means, at any time, any securities issued by the Company from time to time (other than the Rights) carrying any exercise,
conversion or exchange right pursuant to which the holder thereof may acquire Voting Shares or other securities which are convertible into, exercisable into or exchangeable for Voting Shares; 

  

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	 	(q)	“Convertible Security Acquisitions” has the meaning set forth in the definition of “Acquiring Person” herein; 

  

	 	(r)	“Company” means Med BioGene Inc.; 

  

	 	(s)	“Effective Date” means January 15, 2010; 

  

	 	(t)	“Exempt Acquisition” shall have the meaning ascribed thereto in the definition of Acquiring Person; 

  

	 	(u)	“Exercise Price” shall mean, as of any date, the price at which a holder may purchase the securities issuable upon exercise of one whole Right and
until adjustment or amendment thereof in accordance with the terms hereof, the Exercise Price shall equal $100; 

  

	 	(v)	“Expiration Time” shall mean the earlier of: 

  

	 	(i)	the Termination Time; or 

  

	 	(ii)	the Close of Business on that date which is the earlier of: 

  

	 	(A)	the date of termination of the next annual general meeting of the shareholders of the Company after the date of this Agreement if this Agreement is not approved at such
meeting as required by Section 5.16 herein; 

  

	 	(B)	the date of termination of the meeting of the shareholders of the Company called to consider the reconfirmation of this Agreement as provided for in Section 5.17
herein if this Agreement is not reconfirmed at such meeting as required by Section 5.17 herein; and 

  

	 	(C)	the tenth anniversary of the date of this Agreement, if this Agreement is approved and reconfirmed as required by Sections 5.16 and 5.17, respectively;


  

	 	(w)	“Flip-in Event” shall mean a transaction in which any Person shall become an Acquiring Person; 

  

	 	(x)	 “Independent Shareholders” shall mean holders of outstanding Voting Shares of the Company excluding (i) any Acquiring Person; or
(ii) any Person (other than a Person who is deemed not to Beneficially Own such Voting Shares by reason of paragraph 1.1(g)(v)) that is making or has announced a current intention to make a Take-over Bid for Voting Shares of the Company
(including a Permitted Bid or a Competing Permitted Bid) but excluding any such Person if the Take-over Bid



  

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so announced or made by such Person has been withdrawn, terminated or, expired; or (iii) any Affiliate or Associate of such Acquiring Person or a Person referred to in paragraph (ii); or
(iv) any Person acting jointly or in concert with such Acquiring Person or a Person referred to in paragraph (ii); or (v) a Person who is a trustee of any employee benefit plan, share purchase plan, deferred profit sharing plan or any
similar plan or trust for the benefit of employees of the Company or a Subsidiary of the Company, unless the beneficiaries of the plan or trust direct the manner in which the Voting Shares are to be voted or direct whether the Voting Shares are to
be tendered to a Take-over Bid; 


  

	 	(y)	“Market Price” per share of any securities on any date of determination shall mean the average of the daily Closing Price Per Share of such securities
(determined as described below) on each of the 20 consecutive Trading Days through and including the Trading Day immediately preceding such date; provided, however, that if an event of a type analogous to any of the events described in
Section 2.3 hereof shall have caused the closing prices used to determine the Market Price on any Trading Days not to be fully comparable with the closing price on such date of determination or, if the date of determination is not a Trading
Day, on the immediately preceding Trading Day, each such closing price so used shall be appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 hereof in order to make it fully comparable with the
closing price on such date of determination or, if the date of determination is not a Trading Day, on the immediately preceding Trading Day. The “Closing Price Per Share” of any securities on any date shall be:


  

	 	(i)	the closing board lot sale price, or, if such price is not available, the average of the closing bid and asked prices, for each share as reported by the principal stock
exchange in Canada on which such securities are listed and posted for trading (provided that if at the date of determination such securities are listed or admitted to trading on more than one stock exchange or national securities quotation system,
such price or prices shall be determined based on the stock exchange or national securities quotation system on which such securities are then listed or admitted to trading on which the largest number of such securities were traded during the most
recently completed calendar year); 

  

	 	(ii)	if the securities are not listed or posted for trading on any stock exchange in Canada, the last sale price, regular way, or, in case no such sale takes place on such
date, the average of the closing bid and asked prices, regular way, for each share of such securities as reported in the principal consolidated transaction reporting system with respect to securities listed or posted for trading on the principal
national securities exchange in the United States on which such securities are listed or posted for trading; 

  

	 	(iii)	if for any reason none of such prices is available on such date or the securities are not listed or admitted to trading on a stock exchange in Canada or a national
securities exchange in the United States, the last quoted price, or if not so quoted, the average of the high bid and low asked prices for each share of such securities in the over-the-counter market; or 

  

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	 	(iv)	if on any such date the securities are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker
making a market in the securities selected in good faith by the Board of Directors of the Company; 

 provided,
however, that if on any such date the securities are not traded in the over-the-counter market, the closing price per share of such securities on such date shall mean the fair value per share of such securities on such date as determined in good
faith by the Board of Directors of the Company, after consultation with a nationally and internationally recognized investment banking firm with respect to the fair value per share of such securities. The Market Price shall be expressed in United
States dollars and if initially determined in respect of any day forming part of the 20 consecutive Trading Day period in question in Canadian dollars, such amount shall be translated into United States dollars at the U.S. Dollar Equivalent
thereof; 
  

	 	(z)	“1933 Securities Act” shall mean the Securities Act of 1933 of the United States, as amended, and the rules and regulations
thereunder, and any comparable or successor laws or regulations thereto; 

  

	 	(aa)	“1934 Exchange Act” shall mean the Securities Exchange Act of 1934 of the United States, as amended, and the rules and regulations
thereunder, and any comparable or successor laws or regulations thereto; 

  

	 	(bb)	“Offer to Acquire” shall include: 

  

	 	(i)	an offer to purchase, or a solicitation of an offer to sell, Voting Shares; and 

  

	 	(ii)	an acceptance of an offer to sell Voting Shares, whether or not such offer to sell has been solicited; 

 or any combination thereof, and the Person accepting an offer to sell shall be deemed to be making an Offer to Acquire to the Person that
made the offer to sell; 
  

	 	(cc)	“Offeror” shall mean a Person who has announced a current intention to make or who is making a Take-over Bid; 

  

	 	(dd)	“Offeror’s Securities” means Voting Shares Beneficially Owned on the date of an Offer to Acquire by any Person who makes a Take-over Bid or by any
Person acting jointly or in concert with such Person; 

  

	 	(ee)	“MI 62-104” means Multilateral Instrument 62-104 – Take-Over Bids and Issuer Bids and any comparable or successor laws, instruments or
rules thereto; 

  

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	 	(ff)	“Permitted Bid” means a Take-over Bid made by means of a Take-over Bid circular and which also complies with the following additional provisions:


  

	 	(i)	the Take-over Bid is made to all holders of record of Voting Shares wherever resident as registered on the books of the Company, on identical terms;


  

	 	(ii)	the Take-over Bid contains irrevocable and unqualified provisions that all Voting Shares may be deposited pursuant to the Take-over Bid at any time prior to the Close
of Business on the date referred to in paragraph 1.1(ff)(iii) and that all Voting Shares deposited pursuant to the Take-over Bid may be withdrawn at any time prior to the Close of Business on such date; 

  

	 	(iii)	the Take-over Bid contains, and the take up and payment for securities tendered or deposited is subject to, an irrevocable and unqualified provision that no Voting
Shares will be taken up or paid for pursuant to the Take-over Bid prior to the Close of Business on a date which is not less than 60 days following the date of the Take-over Bid and that Voting Shares shall not be taken up and paid for by the
Offeror unless Independent Shareholders have deposited or tendered shares representing more than 50% of the Voting Shares then outstanding pursuant to the Take-over Bid and have not withdrawn such shares; and 

  

	 	(iv)	the Take-over Bid contains an irrevocable and unqualified provision that, should the condition referred to in paragraph 1.1(ff)(iii) be met, the Offeror will make
a public announcement of that fact, the Take-over Bid will be extended on the same terms for a period of not less than 10 days from the date referred to in paragraph 1.1(ff)(iii) and where a greater number of such Voting Shares is deposited pursuant
thereto than the Offeror is bound or willing to acquire under the Take-over Bid, the Voting Shares shall be taken up and paid for on a pro rata basis; 

  

	 	(gg)	“Permitted Bid Acquisitions” shall have the meaning ascribed thereto in the definition of Acquiring Person; 

  

	 	(hh)	“Permitted Lock-up Agreement” means an agreement between an Offeror, any of its Affiliates or Associates or any other Person acting jointly or in
concert with the Offeror and a Person (the “Locked-up Person”) (the terms of which are publicly disclosed and a copy of which is made available to the public (including the Company) not later than the date of the Lock-up Bid (as
defined below), or if the Lock-up Bid has been made prior to the date of the Lock-up Agreement not later than the first Business Day following the date of the Lock-up Agreement) who is not an Affiliate or Associate of the Offeror or a Person acting
jointly or in concert with the Offeror whereby the Locked-up Person agrees to deposit or tender the Voting Shares held by the Locked-up Person to the Offeror’s Take-over Bid or to any Take-over Bid made by any of the Offeror’s Affiliates
or Associates or made by any other Person acting jointly or in concert with the Offeror (the “Lock-up Bid”), where the agreement: 

  

	 	(i)	(A) permits the Locked-up Person to withdraw the Voting Shares in order to tender or deposit the Voting Shares to another Take-over Bid or to support another
transaction that contains an offering price for each Voting Share that exceeds, or provides a value for each Voting Share that is greater than, the offering price contained or proposed to be contained in the Lock-up Bid; 

  

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	 	(B)	permits the Locked-up Person to withdraw the Voting Shares in order to tender or deposit the Voting Shares to another Take-over Bid or to support another transaction
that contains an offering price for each Voting Share that exceeds, or provides a value for each Voting Share that is greater than, the offering price contained in or proposed to be contained in, the Lock-up Bid by as much or more than a specified
amount (the “Specified Amount”) and the Specified Amount is not greater than 7% of the offering price that is contained or proposed to be contained in the Lock-up Bid; or 

  

	 	(C)	permits the Locked-up Person to withdraw the Voting Shares in order to tender or deposit the Voting Shares to another Take-over Bid for a number of Voting Shares at
least 7% greater than the number of Voting Shares that were the subject of the Lock-up Bid at a price that is not less than the price or value per Voting Share offered under the Lock-up Bid; and 

  

	 	(ii)	does not provide for any “break-up fees”, “top-up fees”, penalties, expenses or other amounts that exceed in the aggregate the cash equivalent of
2.5% of the price or value payable to the Locked-up Person under the Take-over Bid or one-half of the increased price or value that is paid pursuant to another Take-over Bid or transaction, whichever is the greater, in the event that the Locked-up
Person fails to tender Voting Shares pursuant thereto in order to accept the other Take-over Bid or support another transaction; 

 and for greater clarity, the agreement may contain a right of first refusal or require a period of delay to give the Person who made the Lock-up Bid an opportunity to match a higher price in another
Take-over Bid or other similar limitation on a Locked-up Person’s right to withdraw Voting Shares from the agreement, so long as the limitation does not preclude the exercise by the Locked-up Person of the right to withdraw Voting Shares during
the period of the other Take-over Bid or transaction; 
  

	 	(ii)	“Person” shall include any individual, firm, partnership, association, trust, trustee, personal representative, group, body corporate, company,
unincorporated organization, syndicate, governmental entity, or other entity; 

  

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	 	(jj)	“Pro-rata Acquisitions” means acquisitions by a Person of Voting Shares pursuant to (i) any dividend reinvestment plan, such purchase plan or
other plan of the Company made available to all holders of Voting Shares (other than holders resident in any jurisdiction where participation in such plan is restricted or impractical as a result of applicable law); (ii) a stock dividend, a
stock split or other event pursuant to which such Person becomes the Beneficial Owner of Voting Shares on the same pro rata basis as all other holders of Voting Shares of the same class or series; (iii) the acquisition or exercise of rights to
purchase Voting Shares distributed to all holders of Voting Shares (other than holders resident in any jurisdiction where such distribution or exercise is restricted or impractical as a result of applicable law) by the Company pursuant to a rights
offering (but only if such rights are acquired directly from the Company); or (iv) a distribution of Voting Shares or Convertible Securities in respect thereof offered pursuant to a prospectus or by way of a private placement by the Company or
a conversion or exchange of any such Convertible Security, provided that, in the cases of (iii) and (iv) above, such Person does not thereby acquire a greater percentage of Voting Shares or Convertible Securities so offered than the
Person’s percentage of Voting Shares Beneficially Owned immediately prior to such acquisition; 

  

	 	(kk)	“Regular Periodic Cash Dividend” shall mean cash dividends paid at regular intervals in any fiscal year of the Company to the extent that such cash
dividends do not exceed, in the aggregate, the greatest of: 

  

	 	(i)	200% of the aggregate amount of cash dividends declared payable by the Company on its Common Shares in its immediately preceding fiscal year; 


 

	 	(ii)	300% of the arithmetic mean of the aggregate amounts of cash dividends declared payable by the Company on its Common Shares in its three immediately preceding fiscal
years; and 

  

	 	(iii)	100% of the aggregate consolidated net income of the Company, before extraordinary items, for its immediately preceding fiscal year; 

  

	 	(ll)	“Rights” means the rights authorized to be issued by the Board of Directors and governed by this Agreement; 

  

	 	(mm)	“Rights Agent” means Computershare Investor Services Inc.; 

  

	 	(nn)	“Rights Certificate” shall mean the certificates representing the rights after the Separation Time, which shall be in the form attached hereto as
Exhibit A; 

  

	 	(oo)	“Securities Act (British Columbia)” shall mean the Securities Act, R.S.B.C. 1996, c.418 as amended, and the regulations
thereunder, and any comparable or successor laws or regulations thereto; 

  

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	 	(pp)	“Securities Act (Ontario)” shall mean the Securities Act, R.S.O. 1990, c.55 as amended, and the regulations thereunder, and
any comparable or successor laws or regulations thereto; 

  

	 	(qq)	“Separation Time” shall mean the Close of Business on the earlier of: 

  

	 	(i)	the tenth Business Day after the Stock Acquisition Date; and 

  

	 	(ii)	the tenth Business Day after the date of the commencement of, or first public announcement of the intent of any Person (other than the Company or any Subsidiary of the
Company) to commence a Take-over Bid (other than a Permitted Bid or Competing Permitted Bid so long as such Take-over Bid continues to satisfy the requirements of a Permitted Bid or Competing Permitted Bid); 

 or such later date as may be determined by the Board of Directors provided that, if the Board of Directors determines pursuant to
Section 5.1 to waive the application of Section 3.1 to a Flip-in Event, or if any Take-over Bid referred to in paragraph 1.1(qq)(ii) expires, is cancelled, terminated or otherwise withdrawn prior to the Separation Time, such offer
shall be deemed, for purposes of this subsection 1.1(qq), never to have been made; 
  

	 	(rr)	“Shares” shall mean shares in the capital of the Company; 

  

	 	(ss)	“Stock Acquisition Date” shall mean the first date of public announcement (which, for purposes of this definition, shall include, without limitation, a
report filed pursuant to Section 102.1 of the Securities Act (Ontario), Section 5.2 of MI 62-104 or Section 13(d) under the 1934 Exchange Act) by the Company or an Acquiring Person that a Person has become an Acquiring
Person; 

  

	 	(tt)	“Subsidiary” of any specified Person shall have the meaning ascribed thereto in the Business Corporations Act (British Columbia);


  

	 	(uu)	“Take-over Bid” means an Offer to Acquire Voting Shares or securities convertible into Voting Shares, where the Voting Shares subject to the Offer to
Acquire, together with the Voting Shares into which the securities subject to the Offer to Acquire are convertible, and the Offeror’s Securities, constitute in the aggregate 20% or more of the outstanding Voting Shares at the date of the Offer
to Acquire; 

  

	 	(vv)	“Termination Time” shall mean the time at which the right to exercise Rights shall terminate pursuant to Sections 5.1, 5.16 or 5.17 hereof;


  

	 	(ww)	“Trading Day” when used with respect to any securities, shall mean a day on which the principal securities exchange on which such securities are listed
or posted for trading is open for the transaction of business or, if the securities are not listed or posted for trading on any securities exchange, a Business Day; 

  

 - 15 - 









	 	(xx)	“U.S.-Canadian Exchange Rate” shall mean on any date: 

  

	 	(i)	if on such date the Bank of Canada sets an average noon spot rate of exchange for the conversion of one United States dollar into Canadian dollars, such rate; and


  

	 	(ii)	in any other case, the rate for such date for the conversion of one United States dollar into Canadian dollars which is calculated in the manner which shall be
determined by the Board of Directors of the Company from time to time acting in good faith; 

  

	 	(yy)	“U.S. Dollar Equivalent” of any amount which is expressed in Canadian dollars shall mean on any day the United States dollar equivalent of such amount
determined by reference to the U.S. - Canadian Exchange Rate on such date; 

  

	 	(zz)	“Voting Shares” shall, when used with reference to the Company, mean collectively the Common Shares of the Company, and any other shares of capital
stock of the Company to which is attached a right to vote generally for the election of directors and, when used with reference to any other Person other than the Company, means a Common Share of such Person and any other share of capital stock or
voting interests of such person entitled to vote generally for the election of directors. The percentage of Voting Shares Beneficially Owned by any Person, shall, for the purposes of this Agreement be and be deemed to be the product determined by
the formula: 

 100 x  A 
            B 
 where 
  

	 	A =	the number of votes for the election of all directors generally attaching to the Voting Shares Beneficially Owned by such Person; and 

  

	 	B =	the number of votes for the election of all directors generally attaching to all outstanding Voting Shares; 

 and where any Person is deemed to Beneficially Own unissued Voting Shares which may be acquired pursuant to Convertible Securities, such
Voting Shares shall be deemed to be outstanding for the purpose of calculating the percentage of Voting Shares Beneficially Owned by such Person, but no other unissued Voting Shares which may be acquired pursuant to any other outstanding Convertible
Securities shall, for the purposes of the calculation, be deemed to be outstanding; 
  

	 	(aaa)	“Voting Share Reduction” shall have the meaning attributed thereto in the definition of Acquiring Person. 

  

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	1.2	Currency 

 All sums of
money which are referred to in this Agreement are expressed in lawful money of Canada , unless otherwise specified. 
  

	1.3	Grandfather Provision 

 For the purposes of determining whether a Person is an Acquiring Person and interpreting the definition of Acquiring Person, a Person shall not be and shall not be deemed to be an Acquiring Person if such Person: 
  

	 	(a)	was the Beneficial Owner of 20% or more of the outstanding Voting Shares of the Company determined as at the Record Time; or 

  

	 	(b)	becomes the Beneficial Owner of 20% or more of the outstanding Voting Shares of the Company after the Record Time and such Person’s Beneficial Ownership of Voting
Shares of the Company does not exceed the number of Voting Shares of the Company Beneficially Owned by such Person immediately prior to the Record Time by more than 2% of the then issued and outstanding Voting Shares of the Company,


 provided, however, that this exception shall not be, and shall cease to be, applicable to a Person in the event that such
Person shall, after the Record Time, become the Beneficial Owner of additional Voting Shares of the Company constituting more than 2% of the Voting Shares of the Company then outstanding other than pursuant to Permitted Bid Acquisitions, through
Exempt Acquisitions, Voting Share Reductions or Pro-rata Acquisitions; and provided further that, in the event that this exception shall cease to be applicable to a Person as aforesaid, such a person shall be and shall be deemed to be an Acquiring
Person as at and from the time that this exception shall cease to be applicable. 
  

	1.4	Holder 

 As used in this
Agreement, unless the context otherwise requires the term “holder” when used with reference to Rights, means the registered holder of such rights or prior to the Separation Time, the Shares with which such Rights are associated.

  

	1.5	Acting in Good Faith 

 For
purposes of this Agreement, when any determination or decision is made by the Board of Directors pursuant to this Agreement, the Board of Directors shall exercise its powers and discharge its duties honestly and in good faith with a view to the best
interests of the Company and each director shall exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances all in accordance with the requirements of the Business Corporations Act
(British Columbia). 
  

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	1.6	Acting Jointly or in Concert 

 For the purposes of this Agreement, a Person is acting jointly or in concert with every Person who is a party to any agreement, commitment or understanding, whether formal or informal, with the first Person or any Associate or Affiliate
thereof to acquire or offer to acquire Voting Shares (other than customary agreements with and between underwriters and/or banking group members and/or selling group members with respect to a public offering or private placement of securities or
pledges of securities in the ordinary course of business). 
  

	1.7	Headings and References 

 The headings of the articles, sections and subsections of this Agreement and the table of contents are inserted for convenience of reference only and shall not affect the construction or interpretation of this Agreement. All references to
articles, sections, subsections and paragraphs are to articles, sections, subsections and paragraphs of this Agreement. The words “hereto”, “herein”, “hereof”, “hereunder”,
“this Agreement”, “the Rights Agreement” and similar expressions refer to this Agreement including the schedule attached hereto as a whole, as the same may be amended, modified or supplemented at any time or from
time to time. 
  

	1.8	Singular, Plural etc. 

 In
this Agreement, where the context so requires, words importing the singular number include the plural and vice versa and words importing gender include the masculine, feminine and neuter genders. 
  

	1.9	Schedule 

 Any schedule
attached hereto forms part of this Agreement. 
 ARTICLE 2 - THE RIGHTS 
  

	2.1	Legend on Certificates 

 Certificates for the Common Shares, including without limitation, Common Shares issued upon the conversion of Convertible Securities, issued after the Record Time but prior to the earlier of the Separation Time and the Expiration Time shall
evidence one Right for each Common Share represented thereby and shall have impressed on, printed on, typewritten on or otherwise affixed to them the following legend: 
 “Until the Separation Time (as defined in the Rights Agreement referred to below), this certificate also evidences and entitles the holder hereof to certain Rights as set forth in the Shareholder
Rights Plan Agreement, dated as of January 15, 2010 as such may be from time to time amended, restated, varied or replaced, between Med BioGene Inc. (the “Company”) and Computershare Investor Services Inc., as Rights Agent (the
“Rights Agreement”), the terms of which are hereby incorporated herein by reference and

  

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a copy of which is on file at the principal executive offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights may be amended or redeemed, may
expire, may become void (if, in certain cases, they are “Beneficially Owned” by an “Acquiring Person”, as such terms are defined in the Rights Agreement) whether currently held or on behalf or such Person or any
subsequent holder or may be evidenced by separate certificates and may no longer be evidenced by this certificate. The Company will mail or arrange for the mailing of a copy of the Rights Agreement to the holder of this certificate without charge
within five days after the receipt of a written request therefor.” 
 Certificates representing Common Shares that are
issued and outstanding at the Record Time shall evidence one Right for each Common Share evidenced thereby notwithstanding the absence of the foregoing legend until the earlier of the Separation Time and the Expiration Time. 
  

	2.2	Initial Exercise Price; Exercise of Rights; Detachment of Rights 

  

	 	(a)	Subject to adjustment as herein set forth, each Right will entitle the holder thereof, from and after the Separation Time and prior to the Expiration Time, to purchase,
for the Exercise Price or its Canadian Dollar Equivalent as at the Business Day immediately preceding the day of exercise of the Right, one Common Share. 

  

	 	(b)	Until the Separation Time: 

  

	 	(i)	no Right may be exercised; and 

  

	 	(ii)	each Right will be evidenced by the certificate for the associated Share (which certificates shall also be deemed to be Rights Certificates) and will be transferable
only together with, and will be transferred by a transfer of, such associated Share. 

  

	 	(c)	From and after the Separation Time and prior to the Expiration Time, the Rights: 

  

	 	(i)	may be exercised; and 

  

	 	(ii)	will be registrable and transferable independent of Shares. 

 Promptly following the Separation Time the Rights Agent will mail to each holder of record of Common Shares as of the Separation Time and, in respect of each Convertible Security converted into Common
Shares after the Separation Time and prior to the Expiration Time promptly after such conversion to the holder so converting (other than an Acquiring Person and other than, in respect of any Rights Beneficially Owned by such Acquiring Person which
are not held of record by such Acquiring Person, the holder of Record of such Rights (a

  

 - 19 - 








 
“Nominee”)), at such holder’s address as shown by the records of the Company (and the Company hereby agrees to furnish copies of such records to the Rights Agent for this
purpose), 
  

	 	(A)	a Rights Certificate in substantially the form of Exhibit A hereto appropriately completed, representing the number of Rights held by such holder at the Separation Time
and having such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, or as may be required to comply
with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange or quotation system on which the Rights may from time to time be listed or traded, or to conform to usage, and


  

	 	(B)	a disclosure statement describing the Rights; 

 provided that a Nominee shall be sent the materials provided for in (A) and (B) only in respect of all Common Shares held of record by it which are not Beneficially Owned by an Acquiring Person.

  

	 	(d)	Rights may be exercised in whole or in part on any Business Day after the Separation Time and prior to the Expiration Time by submitting to the Rights Agent the Rights
Certificate evidencing such Rights with an Election to Exercise (an “Election to Exercise”) substantially in the form attached to the Rights Certificate duly completed and executed by the holder or its executors or other personal
representatives or its legal attorney duly appointed by an instrument in writing in form and manner satisfactory to the Rights Agent, accompanied by payment in cash, or by certified cheque, banker’s draft or money order payable to the order of
the Company, of a sum equal to the Exercise Price multiplied by the number of Rights being exercised and a sum sufficient to cover any transfer tax or charge which may be payable in respect of any transfer involved in the transfer or delivery of
Rights Certificates or the issuance or delivery of certificates for the relevant Shares in a name other than that of the holder of the Rights being exercised. 

  

	 	(e)	Upon receipt of a Rights Certificate, with a duly completed and executed Election to Exercise accompanied by payment as set forth in subsection 2.2(d) above, the Rights
Agent will (unless otherwise instructed by the Company) forthwith: 

  

	 	(i)	requisition from a transfer agent for the relevant Shares, certificates representing the number of Shares to be purchased (the Company hereby irrevocably authorizing
its transfer agents to comply with all such requisitions); 

  

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	 	(ii)	when appropriate, requisition from the Company the amount of cash to be paid in lieu of issuing fractional Shares; 

  

	 	(iii)	after receipt of such certificates, deliver the same to or upon the order of the registered holder of such Rights Certificate, registered in such name or names as may
be designated by such holder; and 

  

	 	(iv)	when appropriate, after receipt, deliver such cash to or to the order of the registered holder of the Rights Certificate. 

  

	 	(f)	In case the holder of any Rights shall exercise less than all the Rights evidenced by such holder’s Rights Certificate, a new Rights Certificate evidencing the
Rights remaining unexercised will be issued by the Rights Agent to such holder or to such holder’s duly authorized assigns. 

  

	 	(g)	The Company covenants and agrees that it will: 

  

	 	(i)	take all such action as may be necessary and within its power to ensure that all Shares delivered upon exercise of Rights shall, at the time of delivery of the
certificates for such Shares (subject to payment of the Exercise Price), be duly and validly authorized, executed, issued and delivered as fully paid and non-assessable; 

  

	 	(ii)	subject to Section 5.19, take all such action as may be necessary and within its power to comply with any applicable requirements of the Securities Act
(British Columbia) or comparable legislation of each of the provinces of Canada, the 1933 Securities Act and the 1934 Exchange Act or the rules and regulations thereunder or any other applicable law, rule or regulation, in
connection with the issuance and delivery of the Rights Certificates and the issuance of any Shares upon exercise of Rights; 

  

	 	(iii)	use commercially reasonable efforts to cause all Shares issued upon exercise of Rights to be listed on the principal exchanges on which the Shares of such class or
series were traded prior to the Stock Acquisition Date; and 

  

	 	(iv)	pay when due and payable any and all Canadian and United States federal, provincial and state transfer taxes (for greater certainty not including any income taxes on
capital gains of the holder or exercising holder or any liability of the Company to withhold tax) and charges which may be payable in respect of the original issuance or delivery of the Rights Certificates or certificates for Shares, provided that
the Company shall not be required to pay any transfer tax or charge which may be payable in respect of any transfer involved in the transfer or delivery of Rights Certificates or the issuance or delivery of certificates for Shares in a name other
than that of the holder of the Rights being transferred or exercised. 

  

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	2.3	Adjustments to Exercise Price; Number of Rights 

 The Exercise Price, the number and kind of Shares subject to purchase upon exercise of each Right and the number of Rights outstanding are subject to adjustment from time to time as provided in this
Section 2.3. 
  

	 	(a)	In the event the Company shall at any time after the Record Time and prior to the Expiration Time: 

  

	 	(i)	declare or pay a dividend on the Common Shares payable in Common Shares (or other securities exchangeable for or convertible into or giving a right to acquire Common
Shares) other than pursuant to any optional stock dividend program, dividend reinvestment plan or a dividend payable in Common Shares in lieu of a Regular Periodic Cash Dividend; 

  

	 	(ii)	subdivide or change the then outstanding Common Shares into a greater number of Common Shares; 

  

	 	(iii)	consolidate or change the then outstanding Common Shares into a smaller number of Common Shares; or 

  

	 	(iv)	issue any Common Shares (or other capital stock or securities exchangeable for or convertible into or giving a right to acquire Common Shares or other capital stock) in
respect of, in lieu of, or in exchange for existing Common Shares, except as otherwise provided in this Section 2.3; 

 the Exercise Price and the number of Rights outstanding, or, if the payment or effective date therefor shall occur after the Separation Time, the Shares purchasable upon exercise of Rights shall be adjusted in the manner set forth below. If
the Exercise Price and number of Rights outstanding are to be adjusted, 
  

	 	(A)	the Exercise Price in effect after such adjustment will be equal to the Exercise Price in effect immediately prior to such adjustment divided by the number of Common
Shares (or other capital stock) (the “Expansion Factor”) that a holder of one Common Share immediately prior to such dividend, subdivision, change, combination or issuance would hold thereafter as a result thereof, and


  

	 	(B)	each Right held prior to such adjustment will become that number of Rights equal to the Expansion Factor, and the adjusted number of Rights will be deemed to be
allocated among the Shares with respect to which the original Rights were associated (if they remain outstanding) and the Shares issued in respect of such dividend, subdivision, change, combination or issuance, so that each such Share (or other
capital stock) will have exactly one Right associated with it. 

  

 - 22 - 








 If the Shares purchasable upon exercise of Rights are to be adjusted, the Shares purchasable
upon exercise of each Right after such adjustment will be the Shares that a holder of the Shares purchasable upon exercise of one Right immediately prior to such dividend, subdivision, change, combination or issuance would hold thereafter as a
result thereof. If after the Record Time and prior to the Expiration Time the Company shall issue any shares of capital stock other than Common Shares in a transaction of a type described in paragraphs 2.3(a)(i) to (iv), shares of such capital stock
shall be treated herein as nearly equivalent to Common Shares as may be practicable and appropriate under the circumstances and the Company and the Rights Agent agree to amend this Agreement in order to effect such treatment, and will not
consolidate with, amalgamate with or into or enter into a statutory arrangement with, any other Person unless such Person agrees to be bound by the terms of an amendment effecting such treatment. 
 In the event the Company shall at any time after the Record Time and prior to the Separation Time issue any Common Shares otherwise than in a
transaction referred to in the preceding paragraph, each such Common Share so issued shall automatically have one new Right associated with it, which Right shall be evidenced by the Certificate representing such Share. 
  

	 	(b)	 In the event the Company shall at any time after the Record Time and prior to the Separation Time fix a record date for the making of a distribution to
all holders of Common Shares of rights, options, or warrants entitling them (for a period expiring within 45 calendar days after such record date) to subscribe for or purchase Common Shares (or securities convertible into or exchangeable for or
carrying a right to purchase or subscribe for Common Shares) at a price per Common Share (or, if a security convertible into or exchangeable for or carrying a right to purchase or subscribe for Common Shares, having a conversion, exchange or
exercise price (including the price required to be paid to purchase such convertible or exchangeable security or right per share)) less than the Market Price per Common Share on such record date, the Exercise Price shall be adjusted. The Exercise
Price in effect after such record date will equal the Exercise Price in effect immediately prior to such record date multiplied by a fraction, of which the numerator shall be the number of Common Shares outstanding on such record date plus the
number of Common Shares which the aggregate offering price of the total number of Common Shares so to be offered (and/or the aggregate initial conversion, exchange or exercise price of the convertible or exchangeable securities or rights so to be
offered (including the price required to be paid to purchase such convertible or exchangeable securities or rights)) would purchase at such Market Price and of which the denominator shall be the number of Common Shares outstanding on such record
date plus the number of additional Common Shares to be offered for subscription or purchase (or into which the convertible or exchangeable securities or rights so to be offered are initially convertible, exchangeable or exercisable). In case such
subscription price may be paid in a consideration part or all of which shall be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board of Directors of the Company, whose determination shall be
described in



  

 - 23 - 









	 	 
a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. For purposes of this Agreement, the granting of the right to purchase Common Shares
(whether from treasury shares or otherwise) pursuant to any dividend or interest reinvestment plan and/or any Common Share purchase plan providing for the reinvestment of dividends or interest payable on securities of the Company and/or the
investment of periodic optional payments and/or employee benefit or similar plans (so long as such right to purchase is in no case evidenced by the delivery of rights or warrants) shall not be deemed to constitute an issue of rights, options or
warrants by the Company; provided, however, that, in the case of any dividend or interest reinvestment plan, the right to purchase Common Shares is at a price per share of not less than 90 percent of the current market price per Common Share
(determined as provided in such plans) of the Common Shares. Such adjustment shall be made successively whenever such a record date is fixed and, in the event that such rights, options or warrants are not so issued, the Exercise Price in respect of
the Rights shall be adjusted to be the Exercise Price which would then be in effect if such record date had not been fixed. 


  

	 	(c)	In the event the Company shall at any time after the Record Time and prior to the Separation Time fix a record date for the making of a distribution to all holders of
Common Shares (including without limitation any distribution made in connection with a merger in which the Company is the continuing company) of evidences of indebtedness or assets (other than a Regular Periodic Cash Dividend or a dividend paid in
Common Shares) or rights, options or warrants entitling them to subscribe for or purchase Common Shares (or Convertible Securities in respect of Common Shares) at a price per Common Share (or, in the case of a Convertible Security in respect of
Common Shares having a conversion or exercise price per share (including the price required to be paid to purchase such Convertible Security) less than 90% of the Market Price per Common Share on such record date (excluding those referred to in
subsection 2.3(b)), the Exercise Price shall be adjusted. The Exercise Price in effect after such record date will equal the Exercise Price in effect immediately prior to such record date less the fair market value as shall be determined in good
faith by the Board of Directors of the Company, whose determination shall be described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and the holders of the Rights, of the portion of the assets, evidences of
indebtedness, rights or warrants so to be distributed applicable to the securities purchaseable upon exercise of one Right. Such adjustments shall be made successively whenever such a record date is fixed and, in the event that such distribution is
not so made, the Exercise Price in respect of the Rights shall be adjusted to be the Exercise Price in respect of the Rights which would have been in effect if such record date had not been fixed. 

  

	 	(d)	Each adjustment made pursuant to this Section 2.3 shall be made as of: 

  

	 	(i)	the payment or effective date for the applicable dividend, subdivision, consolidation, change, combination or issuance, in the case of an adjustment made pursuant to
subsection 2.3(a) herein; and 

  

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	 	(ii)	the record date for the applicable dividend or distribution, in the case of an adjustment made pursuant to subsections 2.3(b) or (c) herein.


 Any adjustment pursuant to subsections 2.3(a), (b), (c) and (e) hereof shall be made successively
whenever an event referred to herein shall occur, subject to the other subsections of this Section 2.3. 
  

	 	(e)	In the event the Company shall at any time after the Record Time and prior to the Separation Time issue any Shares (other than Common Shares), or rights, options or
warrants to subscribe for or purchase any such shares, or securities convertible into or exchangeable for any such shares, in a transaction referred to in paragraphs 2.3(a)(i) or (iv) above, if the Board of Directors of the Company acting in
good faith determines that the adjustments contemplated by subsections 2.3(a), (b), and (c) above in connection with such transaction will not appropriately protect the interests of the holders of Rights, the Board of Directors of the Company
may determine what other adjustments to the Exercise Price, number of Rights and/or securities purchaseable upon exercise of Rights would be appropriate and, notwithstanding subsections 2.3(a), (b), and (c) above, such adjustments, rather than
the adjustments contemplated by subsections 2.3(a), (b), and (c) above, shall be made with the prior approval of the holders of shares in accordance with Section 5.4. The Company and the Rights Agent shall amend this Agreement as
appropriate to provide for such adjustments. 

  

	 	(f)	Notwithstanding anything herein to the contrary, no adjustment in an Exercise Price shall be required unless such adjustment would require an increase or decrease of at
least one percent in such Exercise Price; provided, however, that any adjustments which by reason of this subsection 2.3(f) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. Each adjustment to
the Exercise Price made pursuant to this Section 2.3 shall be calculated to the nearest cent or the nearest ten-thousandth of a Common Share or other Share as the case may be. Whenever an adjustment to the Exercise Price is made pursuant to
this Section 2.3, the Company shall: 

  

	 	(i)	promptly prepare a certificate setting forth such adjustment and a brief statement of the facts accounting for such adjustment; and 

  

	 	(ii)	promptly file with the Rights Agent and with each transfer agent for the Common Shares a copy of such certificate and a brief summary thereof to each holder of Rights.


  

	 	(g)	Irrespective of any adjustment or change in an Exercise Price or the number of securities purchaseable upon exercise of the Rights, the Rights Certificates theretofore
and thereafter issued may continue to express the relevant Exercise Price per Share and the number of securities so purchaseable which were expressed in the initial Rights Certificates issued hereunder. 

  

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	 	(h)	If as a result of an adjustment made pursuant to Section 3.1 herein, the holder of any Right thereafter exercised shall become entitled to receive any Shares other
than Common Shares, thereafter the number of such other Shares so receivable upon exercise of any Right and the applicable Exercise Price thereof shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Common Shares contained in this Section 2.3, and the provisions of this Agreement with respect to the Common Shares shall apply on like terms to any such other Shares. 


 

	 	(i)	Unless the Company shall have exercised its election as provided in subsection 2.3(j), upon each adjustment of an Exercise Price as a result of the calculations made in
subsections 2.3(b) and (c), each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Exercise Price, that number of Common Shares (calculated to the nearest one
ten-thousandth), obtained by: 

  

	 	(i)	multiplying (x) the number of such Shares covered by a Right immediately prior to this adjustment by (y) the relevant Exercise Price in effect immediately
prior to such adjustment of the relevant Exercise Price; and 

  

	 	(ii)	dividing the product so obtained by the relevant Exercise Price in effect immediately after such adjustment of the relevant Exercise Price. 

  

	 	(j)	 The Company may elect on or after the date of any adjustment of an Exercise Price to adjust the number of Rights, in lieu of any adjustment in the
number of Shares purchaseable upon the exercise of a Right. Each of the Rights outstanding after the adjustment in the number of Rights shall be exercisable for the number and kind of Shares for which such Right was exercisable immediately prior to
such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one ten-thousandth) obtained by dividing the relevant Exercise Price in effect immediately
prior to adjustment of the relevant Exercise Price by the relevant Exercise Price in effect immediately after adjustment of the relevant Exercise Price. The Company shall make a public announcement of its election to adjust the number of Rights,
indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. This record date may be the date on which the relevant Exercise Price is adjusted or any day thereafter but, if the Rights
Certificates have been issued, shall be at least 10 days later than the date of the public announcement. If Rights Certificates have been issued, upon each adjustment of the number of Rights pursuant to this subsection 2.3(j), the Company shall, as
promptly as practicable, cause to be distributed to holders of record of Rights Certificates on such record date, Rights Certificates evidencing, subject to Section 5.5, the additional Rights to which such holders shall be entitled as a result
of such adjustment or, at the option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Rights Certificates held by such holders prior to the date of adjustment,



  

 - 26 - 









	 	 
and upon surrender thereof, if required by the Company, new Rights Certificates evidencing all the Rights to which such holders shall be entitled after such adjustment. Rights Certificates so to
be distributed shall be issued, executed and countersigned in the manner provided for herein and may bear, at the option of the Company, the relevant adjusted Exercise Price and shall be registered in the names of holders of record of Rights
Certificates on the record date specified in the public announcement. 


  

	 	(k)	In any case in which this Section 2.3 shall require that an adjustment in an Exercise Price be made effective as of a record date for a specified event, the
Company may elect to defer until the occurrence of such event the issuance to the holder of any Right exercised after such record date of the number of Shares and other securities of the Company, if any, issuable upon such existence over and above
the number of Shares and other securities of the Company, if any, issuable upon such exercise on the basis of the relevant Exercise Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill
or other appropriate instrument evidencing such holder’s right to receive such additional Shares (fractional or otherwise) or other securities upon the occurrence of the event requiring such adjustment. 

  

	 	(l)	Notwithstanding anything in this Section 2.3 to the contrary, the Company shall be entitled to make such reductions in each Exercise Price, in addition to those
adjustments expressly required by this Section 2.3, as and to the extent that in their good faith judgment the Board of Directors of the Company shall determine to be advisable in order that any (i) consolidation or subdivision of Shares,
(ii) issuance wholly for cash of any Shares at less than the applicable Market Price, (iii) issuance wholly for cash of any Common Shares or securities that by their terms are convertible into or exchangeable for Shares, (iv) stock
dividends or (v) issuance of rights, options or warrants referred to in this Section 2.3, hereafter made by the Company to holders of its Shares, shall not be taxable to such shareholders. 

  

	 	(m)	Whenever an adjustment to the Exercise Price or a change in the securities purchaseable upon exercise of the Rights is made pursuant to this Section 2.3(m), the
Company shall promptly and in any event, where such change or adjustment occurs prior to the Separation Time, not later than the Separation Time (i) file with the Rights Agent and with each transfer agent for the Common Shares a certificate
specifying the particulars of such adjustment or change, and (ii) cause notice of the particulars of such adjustment or change to be given to the holders of the Rights. Failure to file such certificate or to cause such notice to be given as
aforesaid, or any defect therein, shall not affect the validity of such adjustment or change. 

  

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	2.4	Date on which Exercise is Effective 

 Each person in whose name any certificate for Shares is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder of record of the Shares represented thereby on, and
such certificate shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered (together with a duly completed Election to Exercise) and payment of the Exercise Price for such Rights (and any applicable
transfer taxes and other governmental charges payable by the exercising holder hereunder) was made; provided, however, that if the date of such surrender and payment is a date upon which the relevant Share transfer books of the Company are closed,
such person shall be deemed to have become the record holder of such Shares on, and such certificate shall be dated, the next succeeding Business Day on which the relevant Share transfer books of the Company are open. 
  

	2.5	Execution, Authentication, Delivery and Dating of Rights Certificates 

  

	 	(a)	The Rights Certificates shall be executed on behalf of the Company by any one of its directors or officers, under its corporate seal reproduced thereon attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these officers on the Rights Certificates may be manual or facsimile. 

  

	 	(b)	Rights Certificates bearing the manual or facsimile signatures of individuals who were at any time the proper directors or officers of the Company shall bind the
Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the countersignature and delivery of such Rights Certificates. 

  

	 	(c)	Promptly after the Company learns of the Separation Time, the Company will notify the Rights Agent of such Separation Time and will deliver Rights Certificates executed
by the Company to the Rights Agent for countersignature, and the Rights Agent shall countersign (manually or by facsimile signature in a manner satisfactory to the Company) and deliver such Rights Certificates to the holders of the Rights pursuant
to subsection 2.2(c) hereof. No Rights Certificate shall be valid for any purpose until countersigned by the Rights Agent as aforesaid. 

  

	 	(d)	Each Rights Certificate shall be dated the date of countersignature thereof. 

  

	2.6	Registration, Registration of Transfer and Exchange 

  

	 	(a)	The Company will cause to be kept a register (the “Rights Register”) in which, subject to such reasonable regulations as it may prescribe, the Company
will provide for the registration and transfer of Rights. The Rights Agent is hereby appointed “Rights Registrar” for the purpose of maintaining the Rights Register for the Company and registering Rights and transfers of Rights as
herein provided. In the event that the Rights Agent shall cease to be the Rights Registrar, the Rights Agent will have the right to examine the Rights Register at all reasonable times. 

 After the Separation Time and prior to the Expiration Time, upon surrender for registration of transfer or exchange of any Rights
Certificate, and subject to the provisions of subsection 2.6(c) below, the Company will execute, and the Rights Agent will countersign and deliver, in the name of the holder or the designated transferee or transferees, as required pursuant to the
holder’s instructions, one or more new Rights Certificates evidencing the same aggregate number of Rights as did the Rights Certificates so surrendered. 
  

 - 28 - 









	 	(b)	All Rights issued upon any registration of transfer or exchange of Rights Certificates shall be valid obligations of the Company, and such Rights shall be entitled to
the same benefits under this Agreement as the Rights surrendered upon such registration of transfer or exchange. 

  

	 	(c)	Every Rights Certificate surrendered for registration of transfer or exchange shall be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company or the Rights Agent, as the case may be, duly executed by the holder thereof or such holder’s attorney duly authorized in writing. As a condition to the issuance of any new Rights Certificate under this
Section 2.6, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Rights Agent) in
connection therewith. 

  

	 	(d)	The Company shall not be required to register the transfer or exchange of any Rights after the Rights have been terminated under Section 5.1 hereof.


  

	2.7	Mutilated, Destroyed, Lost and Stolen Rights Certificates 

  

	 	(a)	If any mutilated Rights Certificate is surrendered to the Rights Agent prior to the Expiration Time, the Company shall execute and the Rights Agent shall countersign
and deliver in exchange therefor a new Rights Certificate evidencing the same number of Rights as did the Rights Certificate so surrendered. 

  

	 	(b)	If there shall be delivered to the Company and the Rights Agent prior to the Expiration Time: 

  

	 	(i)	evidence to their satisfaction of the destruction, loss or theft of any Rights Certificate; and 

  

	 	(ii)	such security or indemnity as may be required by them to save each of them and any of the agents harmless, 

 then, in the absence of notice to the Company or the Rights Agent that such Rights Certificate has been acquired by a bona fide purchaser,
the Company shall execute and upon its request the Rights Agent shall countersign and deliver, in lieu of any such destroyed, lost or stolen Rights Certificate, a new Rights Certificate evidencing the same number of Rights as did the Rights
Certificate so destroyed, lost or stolen. 
  

	 	(c)	As a condition to the issuance of any new Rights Certificate under this Section 2.7, the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Rights Agent) in connection therewith. 

  

 - 29 - 









	 	(d)	Every new Rights Certificate issued pursuant to this Section 2.7 in lieu of any destroyed, lost or stolen Rights Certificate shall evidence an original additional
contractual obligation of the Company, whether or not the destroyed, lost or stolen Rights Certificate shall be at any time enforceable by anyone and shall be entitled to all the benefits of this Agreement equally and proportionately with any and
all other Rights duly issued hereunder. 

  

	2.8	Persons Deemed Owners 

 Prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the associated Share certificate) for registration of transfer, the Company, the Rights Agent and any agent of the Company or the Rights Agent may deem and
treat the person in whose name such Rights Certificate (or, prior to the Separation Time, such relevant Share certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby for all purposes whatsoever. As used in this
Agreement, unless the context otherwise requires, the term “holder” of any Rights shall mean the registered holder of such Rights (or, prior to the Separation Time, the associated Shares). 
  

	2.9	Delivery and Cancellation of Certificates 

 All Rights Certificates surrendered upon exercise or for redemption, registration of transfer or exchange shall, if surrendered to any person other than the Rights Agent, be delivered to the Rights Agent
and, in any case, shall be promptly cancelled by the Rights Agent. The Company may at any time deliver to the Rights Agent for cancellation any Rights Certificates previously countersigned and delivered hereunder which the Company may have acquired
in any manner whatsoever, and all Rights Certificates so delivered shall be promptly cancelled by the Rights Agent. No Rights Certificate shall be countersigned in lieu of or in exchange for any Rights Certificates cancelled as provided in this
Section 2.9, except as expressly permitted by this Agreement. The Rights Agent shall destroy all cancelled Rights Certificates and deliver a certificate of destruction to the Company. 
  

	2.10	Agreement of Rights Holders 

 Every holder of Rights by accepting a Right consents and agrees with the Company and the Rights Agent and with every other holder of Rights that: 
  

	 	(a)	it will be bound by and subject to the provisions of this Agreement, as amended from time to time in accordance with the terms hereof, in respect of all Rights held;


  

	 	(b)	prior to the Separation Time, each Right will be transferable only together with, and will be transferred by a transfer of, the associated Share;


  

	 	(c)	after the Separation Time, the Rights Certificates shall be transferable only upon the registration of the transfer on the Rights Register as provided herein;


  

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	 	(d)	prior to due presentment of a Rights Certificate (or, prior to the Separation Time, the associated Share certificate) for registration of transfer, the Company, the
Rights Agent and any agent of the Company or the Rights Agent may deem and treat the person in whose name the Rights Certificate (or, prior to the Separation Time, the associated Share certificate) is registered as the absolute owner thereof and of
the Rights evidenced thereby (notwithstanding any notations of ownership or writing on such Rights Certificate or the associated Share certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither
the Company nor the Rights Agent shall be affected by any notice to the contrary; 

  

	 	(e)	without the approval of any holder of Rights and upon the sole authority of the Board of Directors of the Company acting in good faith this Agreement may be
supplemented or amended from time to time as provided herein; 

  

	 	(f)	such holder of Rights has waived its right to receive any fractional Rights or any fractional shares upon exercise of a Right (except as provided herein); and


  

	 	(g)	that notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent shall have any liability to any holder of a Right or to any
other Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction or by a government,
regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation.


  

	2.11	Rights Held by the Company and Subsidiaries 

 Notwithstanding any other provision of this Agreement, any Rights held by the Company or any of its Subsidiaries shall not be exercisable for so long as they are held by the Company or its Subsidiaries.

 ARTICLE 3 - ADJUSTMENTS TO THE RIGHTS IN THE 
 EVENT OF CERTAIN TRANSACTIONS 
  

	3.1	Flip-in Event 

  

	 	(a)	Subject to subsection 3.1(b), subsections 5.1(b) and 5.1(c) hereof, in the event that prior to the Expiration Time a Flip-in Event shall occur, the Company shall take
such action as shall be necessary to ensure and provide, within 10 Business Days of such occurrence or such longer period as may be required to satisfy the requirements of the securities acts or comparable legislation of each of the Provinces and
Territories of Canada then, except as provided below: 

  

	 	(i)	 each Right shall thereafter constitute the right to purchase from the Company upon exercise thereof in accordance with the terms hereof, that number of
Common Shares of the Company having an aggregate Market



  

 - 31 - 









	 	 
Price on the date of consummation or occurrence of such Flip-in Event equal to twice the Exercise Price for an amount in cash equal to the Exercise Price (such right to be appropriately adjusted
in a manner analogous to the applicable adjustment provided for in Section 2.3 in the event that after such date of consummation or occurrence an event of a type analogous to any of the events described in Section 2.3 shall have occurred);



  

	 	(ii)	in the event that there are insufficient authorized but unissued Shares to permit each holder of a Right (other than an Acquiring Person or a transferee of the kind
described in paragraph 3.1(b)(ii) to purchase from the Company that number of Common Shares per Right provided for in paragraph 3.1(a)(i), then until such time as holders of Common Shares approve an increase in the Company’s authorized capital
such that there are sufficient authorized but unissued Common Shares to permit each holder of a Right (other than an Acquiring Person or a transferee of the kind described in paragraph 3.1(b)(ii) to purchase from the Company that number of Common
Shares per Right provided for in paragraph 3.1(a)(i), each whole Right shall constitute, effective at the Close of Business on the eighth Trading Day after the Stock Acquisition Date, the right to purchase from the Company, upon exercise thereof in
accordance with the terms hereof, that number of Common Shares that is equal to one Common Share multiplied by the Adjustment Factor for an amount in cash equal to the Adjusted Exercise Price (such right to be appropriately adjusted in a manner
analogous to the applicable adjustment provided for in Section 2.3 in the event that after the consummation or occurrence or event, an event of a type analogous to any of the events described in Section 2.3 shall have occurred).


  

	 	(b)	Notwithstanding the foregoing, upon the occurrence of any Flip-in Event, any Rights that are or were Beneficially Owned on or after the earlier of the Separation Time
or the Stock Acquisition Date by: 

  

	 	(i)	an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or in concert with an Acquiring Person of any Associate or
Affiliate of an Acquiring Person); or 

  

	 	(ii)	a transferee or other successor in title directly or indirectly (a “Transferee”) of Rights held by any Acquiring Person (or any Affiliate or Associate
of an Acquiring Person or any Person acting jointly or in concert with an Acquiring Person or any Affiliate or Associate of an Acquiring Person) where such transferee becomes a transferee concurrently with or subsequent to the Acquiring Person
becoming an Acquiring Person becoming such in a transfer that the Board of Directors has determined is part of a plan, arrangement or scheme of an Acquiring Person (or any Affiliate or Associate of an Acquiring Person or any Person acting jointly or
in concert with an Acquiring Person or any Associate or Affiliate of an Acquiring Person), that has the purpose or effect of avoiding paragraph 3.1(b)(i); 

  


 - 32 - 








 shall become void and any holder of such Rights (including Transferees) shall thereafter
have no right to exercise such Rights under any provision of this Agreement and shall not have thereafter any other rights whatsoever with respect to such Rights, whether under any provision of this Agreement or otherwise. 
  

	 	(c)	Any Rights Certificate that represents Rights Beneficially Owned by a Person described in either paragraphs (i) or (ii) of subsection 3.1(b) or transferred to
any nominee of any such Person, and any Rights Certificate issued upon transfer, exchange, replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain the following legend: 

 “The Rights represented by this Rights Certificate were issued to a Person who was an Acquiring Person or an Affiliate or an Associate
of an Acquiring Person or a Transferee (as such terms are defined in the Rights Agreement) or acting jointly or in concert with any of them. This Rights Certificate and the Rights represented hereby are void or shall become void in the circumstances
specified in subsection 3.1(b) of the Rights Agreement.” 
 provided that the Rights Agent shall not be under any
responsibility to ascertain the existence of facts that would require the imposition of such legend by shall be required to impose such legend only if instructed to do so by the Company or if a holder fails to certify upon transfer or exchange in
the space provided on the Rights Certificate that such holder is not an Acquiring Person or an Affiliate or Associate thereof or acting jointly or in concert with any of them. 
 ARTICLE 4 - THE RIGHTS AGENT 
  

	4.1	General 

  

	 	(a)	 The Company hereby appoints the Rights Agent to act as agent for the Company and the holders of Rights in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such co-Rights Agents as it may deem necessary or desirable. In the event the Company appoints one or more co-Rights Agents, the respective
duties of the Rights Agent and co-Rights Agents shall be as the Company may determine. The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of the Rights
Agent, its reasonable expenses and counsel fees and other disbursements incurred in the administration and execution of this Agreement and the exercise and performance of its duties hereunder. The Company also agrees



  

 - 33 - 









	 	 
to indemnify the Rights Agent, its affiliates, their current and former directors, officers, employees and agents for, and to hold them harmless against, any and all claims, demands, losses,
penalties, costs, expenses, fees and liabilities, including without limitation, legal fees and expenses, directly or indirectly arising out of, or in connection with, or in respect of, this Agreement, except where same results from gross negligence,
wilful misconduct or bad faith on the part of the Rights Agent, which right to indemnification shall survive the termination of this Agreement. 


  

	 	(b)	The Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in connection with its administration
of this Agreement in reliance upon any certificate for Shares, Rights Certificates, certificate for other securities of the Company, instrument of assignment of transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by the proper Person or Persons. 

  

	 	(c)	The Company shall inform the Rights Agent in a reasonably timely manner of events which may materially affect the administration of this Agreement by the Rights Agent
and, at any time upon request, shall provide to the Rights Agent an incumbency certificate certifying the then current officers of the Company; provided that failure to inform the Rights Agent of any such events, or any defect therein shall not
affect the validity of any action taken hereunder in relation to such events. 

  

	4.2	Merger, Amalgamation or Consolidation or Change of Name of Rights Agent 

  

	 	(a)	Any company into which the Rights Agent or any successor Rights Agent may be merged or amalgamated or with which it may be consolidated, or any company resulting from
any merger, amalgamation or consolidation to which the Rights Agent or any successor Rights Agent is a party, or any company succeeding to the shareholder or stockholder services business of the Rights Agent or any successor Rights Agent, will be
the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided that such company would be eligible for appointment as a successor Rights Agent
under the provisions of Section 4.4 hereof. In case at the time such successor Rights Agent succeeds to the agency created by this Agreement any of the Rights Certificates have been countersigned but not delivered, any such successor Rights
Agent may adopt the counter signature of the predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, any successor Rights Agent may
countersign such Rights Certificates either in the name of the predecessor Rights Agent or in the name of the successor Rights Agent; and in all such cases such Rights Certificates will have the full force provided in the Rights Certificates and in
this Agreement. 

  

 - 34 - 









	 	(b)	In case at any time the name of the Rights Agent is changed and at such time any of the Rights Certificates shall have been countersigned but not delivered, the Rights
Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may countersign such Rights
Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 

  

	4.3	Duties of Rights Agent 

 The Rights Agent undertakes the duties and obligations imposed by this Agreement upon the following terms and conditions, by all of which the Company, and the holders of Rights Certificates, by their acceptance thereof, shall be bound:

  

	 	(a)	The Rights Agent may retain and consult with legal counsel (who may be legal counsel for the Company), and the opinion of such counsel will be full and complete
authorization and protection to the Rights Agent as to any action taken or omitted by it in good faith and in accordance with such opinion and the Rights Agent may also consult with such other experts as the Rights Agent shall consider necessary or
appropriate to properly carry out the duties and obligations imposed under this Agreement (at the Company’s expense) and the Rights Agent shall be entitled to act and rely in good faith on the advice of any such expert.


  

	 	(b)	Whenever in the performance of its duties under this Agreement the Rights Agent deems it necessary or desirable that any fact or matter be proved or established by the
Company prior to taking or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by a person
believed by the Rights Agent to be the Chairman of the Board, the President or any Vice President and by the Treasurer or any Assistant Treasurer or the Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent; and such
certificate will be full authorization to the Rights Agent for any action taken or suffered in good faith by it under the provisions of this Agreement in reliance upon such certificate. 

  

	 	(c)	The Rights Agent shall not be liable for any action taken or not taken by the Rights Agent under or in connection with this Agreement, except for losses arising
directly and principally from its gross negligence, wilful misconduct or bad faith. Notwithstanding any other provision of this Agreement, and whether such losses or damages are foreseeable or unforeseeable, the Rights Agent shall not be liable
under any circumstances whatsoever for any (a) breach by any other party of securities law or other rule of any securities regulatory authority, (b) lost profits or (c) special, indirect, incidental, consequential, exemplary,
aggravated or punitive losses or damages. 

  

 - 35 - 









	 	(d)	The Rights Agent will not be liable for or by reason of any of the statements of fact or recitals contained in this Agreement or in the certificates for Shares or the
Rights Certificates (except its countersignature thereof) or be required to verify the same, but all such statements and recitals are and will be deemed to have been made by the Company only. 

  

	 	(e)	The Rights Agent will not be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the due authorization,
execution and delivery hereof by the Rights Agent) or in respect of the validity or execution of any Share certificate or Rights Certificate (except its countersignature thereof); nor will it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Rights Certificate; nor will it be responsible for any change in the exercisability of the Rights (including the Rights becoming void pursuant to subsection 3.1(b) hereof) or any adjustment
required under the provisions of Section 2.3 hereof or responsible for the manner, method or amount of any such adjustment or the ascertainment of the existence of facts that would require any such adjustment (except with respect to the
exercise of Rights after receipt of the certificate contemplated by Section 2.3 describing any such adjustment); nor will it by any act hereunder be deemed to make any representation or warranty as to the authorization of any Share to be issued
pursuant to this Agreement or any Rights or as to whether any Shares will, when issued, be duly and validly authorized, executed, issued and delivered as fully paid and nonassessable. 

  

	 	(f)	The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other
acts, instruments and assurances as may reasonably be required by the Rights Agent for the carrying out or performance by the Rights Agent of the provisions of this Agreement. 

  

	 	(g)	The Rights Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any person believed by the Rights
Agent to be the Chairman of the Board, the President, any Vice President, the Secretary or any Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company, and to apply to such persons for advice or instructions in connection with
its duties, and it shall not be liable for any action taken or suffered by it in good faith in accordance with instructions of any such person. 

  

	 	(h)	The Rights Agent and any shareholder or stockholder, director, officer or employee of the Rights Agent may buy, sell or deal in Shares, Rights or other securities of
the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully and freely as though it were not Rights Agent under this Agreement.
Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other legal entity. 

  

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	 	(i)	The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or perform any duty hereunder either itself or by or through its attorneys or
agents, and the Rights Agent will not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company resulting from any such act, default, neglect or misconduct, provided
reasonable care was exercised by the Rights Agent in the selection and continued employment thereof. 

  

	4.4	Change of Rights Agent 

 The Rights Agent may resign and be discharged from its duties under this Agreement upon 90 days’ notice (or such lesser notice as is acceptable to the Company) in writing mailed to the Company and to each transfer agent of Shares by
registered or certified mail in accordance with Section 5.9. The Company may remove the Rights Agent upon 30 days’ notice in writing, mailed to the Rights Agent and to each transfer agent of the Shares by registered or certified mail, and
to the holders of the Rights in accordance with Section 5.9. If the Rights Agent should resign or be removed or otherwise become incapable of acting, the Company will appoint a successor to the Rights Agent. If the Company fails to make such
appointment within a period of 30 days after such removal or after it has been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of any Rights (which holder shall, with such notice,
submit such holder’s Rights Certificate for inspection by the Company), then the holder of any Rights may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by
the Company or by such a court, shall be a company incorporated under the laws of Canada or a province thereof authorized to carry on the business of a trust company in the Province of British Columbia. After appointment, the successor Rights Agent
will be vested with the same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any
property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company will file notice thereof in writing
with the predecessor Rights Agent and each transfer agent of the Shares, and mail a notice thereof in writing to the holders of the Rights in accordance with Section 5.9. Failure to give any notice provided for in this Section 4.4,
however, or any defect therein, shall not affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of any successor Rights Agent, as the case may be. 
  

	4.5	Compliance with Money Laundering Legislation 

 The Rights Agent shall retain the right not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever, the Rights Agent reasonably determines
that such an act might cause it to be in non-compliance with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline. Further, should the Rights Agent reasonably determine at any time that its acting under this
Agreement has resulted in it being in non-compliance with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline, then it shall have the right to resign on 10 days’ written notice to the

  

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Company, provided: (i) that the Rights Agent’s written notice shall describe the circumstances of such non-compliance; and (ii) that if such circumstances are rectified to the
Rights Agent’s satisfaction within such 10-day period, then such resignation shall not be effective. 
  

	4.6	Privacy Provision 

 The
parties acknowledge that federal and/or provincial legislation that addresses the protection of individual’s personal information (collectively, “Privacy Laws”) applies to obligations and activities under this Agreement.
Despite any other provision of this Agreement, neither party will take or direct any action that would contravene, or cause the other to contravene, applicable Privacy Laws. The Company will, prior to transferring or causing to be transferred
personal information to the Rights Agent, obtain and retain required consents of the relevant individuals to the collection, use and disclosure of their personal information, or will have determined that such consents either have previously been
given upon which the parties can rely or are not required under the Privacy Laws. The Rights Agent will use commercially reasonable efforts to ensure that its services hereunder comply with Privacy Laws. 
 ARTICLE 5 - MISCELLANEOUS 
  

	5.1	Redemption and Waiver 

  

	 	(a)	The Board of Directors acting in good faith may, at its option, at any time prior to the Separation Time elect to redeem all but not less than all of the then
outstanding Rights at a redemption price of $0.001 per Right appropriately adjusted in a manner analogous to the applicable adjustment provided for in Section 2.3 herein if an event of the type analogous to any of the events described in
Section 2.3 herein shall have occurred (such redemption price being herein referred to as the “Redemption Price”). The redemption of the Rights by the Board of Directors may be made effective at such time, on such basis and with such
conditions as the Board of Directors in its sole discretion may establish. 

  

	 	(b)	The Board of Directors may, until the expiration of 10 Business Days following the occurrence of a Flip-in Event, upon written notice delivered to the Rights Agent,
waive the application of Section 3.1 to any particular Flip-in Event. 

  

	 	(c)	Notwithstanding the provisions of subsection 5.1(b) herein, the Board of Directors may waive the application of Section 3.1 herein to any particular Flip-in Event,
provided that both of the following conditions are satisfied: 

  

	 	(i)	the Board of Directors has determined that the Acquiring Person became an Acquiring Person by inadvertence and without any intent or knowledge that he would become an
Acquiring Person; and 

  

	 	(ii)	such Acquiring Person has reduced its Beneficial Ownership of Voting Shares such that at the time of waiver pursuant to this subsection 5.1(c) herein it is no longer an
Acquiring Person; 

  

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 and, in the event of any such waiver, for the purposes of this Agreement, such Flip-in Event
shall be deemed not to have occurred as a result of such Person having inadvertently become an acquiring Person. 
  

	 	(d)	The Board of Directors shall, without further formality, be deemed to have elected to redeem the Rights at the Redemption Price on the date of expiry of a Permitted Bid
or a Competing Permitted Bid, provided that the Offeror takes up and pays for the Voting Shares pursuant to the terms and conditions of the Permitted Bid or Competing Permitted Bid. 

  

	 	(e)	If the Board of Directors elects or is deemed to have elected to redeem the Rights, the right to exercise the Rights will thereupon, without further action and without
notice, terminate and the only right thereafter of the holders of Rights, as such, shall be to receive the Redemption Price. 

  

	 	(f)	Within 10 days after the Board of Directors has elected or been deemed to have elected to redeem the Rights, the Company shall give notice of redemption to the holders
of the then outstanding Rights by mailing such notice to each such holder at his last address as it appears upon the registry books of the Rights Agent or, prior to the Separation Time, on the registry books of the Transfer Agent for the Shares. Any
notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption Price will be made. The Company
may not redeem, acquire or purchase for value any Rights at any time in any manner other than that specifically set forth in this Section 5.1, and other than in connection with the purchase of Shares prior to the Separation Time.


  

	5.2	Expiration 

 No Person
shall have any rights pursuant to this Agreement or in respect of any Right after the Expiration Time, except the Rights Agent as specified in subsection 4.1(a) herein. 
  

	5.3	Issuance of New Rights Certificates 

 Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by
the Board of Directors to reflect any adjustment or change in the number or kind or class of Shares purchasable upon exercise of Rights made in accordance with the provisions of this Agreement. 
  

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	5.4	Supplements and Amendments 

 Subject in each case to the Company having obtained the prior consent of applicable stock exchanges, the Company may from time to time supplement or amend this Agreement as follows: 
  

	 	(a)	to make any changes or amendments required hereunder or otherwise which the Board of Directors acting in good faith may deem necessary or desirable, including without
limitation amend the Exercise Price, provided that no such supplement or amendment made on or after the Stock Acquisition Date shall materially adversely affect the interest of the holders of Rights generally and provided further that no such
supplement or amendment shall be made to the provisions of Article 4 except with the written concurrence of the Rights Agent to such supplement or amendment; or 

  

	 	(b)	in order to cure any ambiguity or to correct or supplement any provision contained herein which may be inconsistent with any other provision herein or be otherwise
defective, provided the no such amendment or supplement shall be made to the provisions of Article 4 except with the written concurrence of the Rights Agent to such amendment or supplement. 

  

	5.5	Fractional Rights and Fractional Shares 

  

	 	(a)	The Company shall not be required to issue fractions of Rights or to distribute Rights Certificates which evidence fractional Rights. After the Separation Time there
shall be paid to the registered holders of the Rights Certificates with regard to which fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction of the Market Price of a whole Right in lieu of such Fractional
Rights. 

  

	 	(b)	The Company shall not be required to issue fractional Shares upon exercise of the Rights or to distribute certificates which evidence fractional Shares. In lieu of
issuing fractional Shares, the Company shall pay to the registered holder of Rights Certificates at the time such Rights are exercised as herein provided, an amount in cash equal to the same fraction of the Market Price of one whole Share.


  

	5.6	Rights of Action 

 Subject
to the terms of this Agreement, all rights of action in respect to this Agreement, other than rights of action vested solely in the Rights Agent, are vested in the respective holders of the Rights and any holder of any Rights, without the consent of
the Rights Agent or of the holder of any other Rights, may, on such holder’s own behalf and for such holder’s own benefit and the benefit of other holders of Rights, as the case may be, enforce, and may institute and maintain any suit,
action or proceeding against the Company to enforce, or otherwise act in respect of such holder’s right to exercise such holder’s Rights, or Rights to which it is entitled, in the manner provided in this Agreement, and in such
holder’s Rights Certificate. Without limiting the foregoing or any remedies available to the holders of Rights, it is specifically acknowledged that the holders of Rights would not have an adequate remedy at law for any breach of this Agreement
and will be entitled to specific performance of and injunctive relief against actual or threatened violations of, the obligations of any Person subject to this Agreement. 
  


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	5.7	Holder of Rights Not Deemed a Shareholder 

 No holder, as such, of any Right or Rights Certificate, shall be entitled to vote, receive dividends or be deemed for any purpose the holder of Shares or any other securities which may at any time be
issuable on the exercise of Rights, nor shall anything contained herein or in any Rights Certificate be construed to confer upon the holder of any Right or Rights Certificate, as such, any of the rights of a shareholder of the Company or any right
to vote at any meeting of shareholders of the Company whether for the election of directors or otherwise or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive
notice of meetings or other actions affecting shareholders (except as expressly provided herein), or to receive dividends or subscription rights or otherwise, until such Rights, or Rights to which such holder is entitled, shall have been exercised
in accordance with the provisions hereof. 
  

	5.8	Notice of Proposed Actions 

 In case the Company shall propose after the Separation Time and prior to the Expiration Time: 
  

	 	(a)	to effect or permit (in cases where the Company’s permission is required) any Flip-in Event; or 

  

	 	(b)	to effect the liquidation, dissolution or winding up of the Company or the sale of all or substantially all of the Company’s assets; 

 then, in each such case, the Company shall give to each holder of a Right, in accordance with Section 5.9 herein, a notice of such proposed action,
which shall specify the date on which such Flip-in Event, liquidation, dissolution, or winding up is to take place, and such notice shall be so given at least 20 Business Days prior to the date of the taking of such proposed action by the Company.

  

	5.9	Notices 

 Any Notice or
other communication authorized or required by this Agreement to be given or made by the Rights Agent or by the holder of any Rights to or on the Company shall be delivered, telecopied or sent by first-class mail, postage prepaid, addressed (until
another address is filed in writing with the Rights Agent) as follows: 
 Med BioGene Inc. 
 #300 - 2386 East Mall 
 Gerald McGavin Building 
 Vancouver, British Columbia 
 V6T 1Z3 
 Attention:
Chief Executive Officer 
 Fax: (604) 827-5120 
  


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 Any notice or other communication authorized or required by this Agreement to be given or made by the
Company or by the holder of any Rights to or on the Rights Agent shall be delivered, telecopied or sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows: 
 Computershare Investor Services Inc. 
 510 Burrard Street 
 Vancouver, British Columbia 
 V6C 3B9 
 Attention:
Manager, Client Services 
 Fax: (604) 661-9401 
 Any Notices or other communication authorized or required by this Agreement to be given or made by the Company or the Rights Agent to or on the holder of any Rights, shall be delivered or sent by
first-class mail, postage prepaid, addressed to such holder at the address of such holder as it appears upon the registry books of the Rights Agent or, prior to the Separation Time, on the registry books of the Company for the Common Shares.

 Any notice which is delivered or telecopied herewith shall be deemed to have been given and received on the business day next following the
date of delivery or telecopying, as the case may be. Any notice mailed as aforesaid shall be deemed to have been given and received on the third business day following the date it is posted, provided that if between the time of mailing and actual
receipt of the notice there shall be mail strike, slow-down or other labour dispute which might affect delivery of the notice by mail, then the notice shall be effective only when actually delivered. Each of the Company and the Rights Agent may from
time to time change its address for notice by notice to the other given in the manner aforesaid. 
  

	5.10	Costs of Enforcement 

 The
Company agrees that if the Company or any other Person the securities of which are purchasable upon exercise of Rights fails to fulfil any of its obligations pursuant to this Agreement, then the Company or such Person will reimburse the holder of
any Rights for the costs and expenses (including legal fees) incurred by such holder in actions to enforce its rights pursuant to any Rights or this Agreement. 
  

	5.11	Successors 

 All the
covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and enure to the benefit of their respective successors and assigns hereunder. 
  

	5.12	Benefits of this Agreement 

 Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the holders of the Rights any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for
the sole and exclusive benefit of the Company, the Rights Agent and the holders of the Rights. 
  

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	5.13	Governing Law 

 This
Agreement and each Right issued hereunder shall be deemed to be a contract made under the laws of the Province of British Columbia and for all purposes shall be governed by and construed in accordance with the laws of British Columbia applicable to
contracts to be made and performed entirely within British Columbia. 
  

	5.14	Counterparts 

 This
Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute one and the same instrument. 
  

	5.15	Severability 

 If any term
or provision hereof or the application thereof to any circumstances shall, in any jurisdiction and to any extent, be invalid or unenforceable, such term or provision shall be ineffective as to such jurisdiction to the extent of such invalidity or
unenforceability without invalidating or rendering unenforceable the remaining terms and provisions hereof or the application of such term or provision to circumstances other than those as to which it is held invalid or unenforceable. 
  

	5.16	Effective Date 

 This
Agreement is effective in accordance with its terms from the date hereof. If this Agreement is not confirmed by resolution passed by a majority of greater than 50% of the votes cast by Independent Shareholders who vote in respect of confirmation of
this Agreement at the special meeting of the shareholders of the Company to be held on February 12, 2010, or on such date on which the meeting is adjourned or postponed to, then this Agreement and any then outstanding Rights shall be of no
further force and effect from the Close of Business on the date of termination of such meeting. 
  

	5.17	Reconfirmation After Five Years 

 Notwithstanding the confirmation of this Agreement pursuant to Section 5.16 herein, if this Agreement is not reconfirmed by a resolution passed by a majority of greater than 50% of the votes cast by Independent Shareholders who vote in
respect of such reconfirmation of this Agreement at a meeting of shareholders to be held not earlier then January 1, 2015 and not later than the date on which the 2015 annual general meeting of shareholders of the Company terminates, this
Agreement and all outstanding Rights shall terminate and be void and of no further force and effect on and from the Close of Business on that date which is the earlier of the date of termination of the meeting called to consider the reconfirmation
of this Agreement and the date of termination of the 2015 annual general meeting of shareholders of the Company; provided, however, that no Flip-in Event has occurred prior to the date upon which this Agreement would otherwise terminate pursuant to
this Section 5.17, which has not been waived pursuant to Section 5.1 hereof. 
  

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	5.18	Determinations and Actions by the Board of Directors 

  

	 	(a)	The Board of Directors shall have the exclusive power and authority to administer and amend this Agreement and to exercise all rights and powers specifically granted to
the Board of Directors or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right and power to: 

  


	 	(i)	interpret the provisions of this Agreement; and 

  

	 	(ii)	make all actions, calculations, interpretations and determinations deemed necessary or advisable for the administration of this Agreement (including a determination to
redeem or not to redeem the Rights or to amend the Agreement in accordance with the terms hereof). 

 All such
actions, calculations, interpretations and determinations (including, for purposes of item (iv) below, all omissions with respect to the foregoing) which are done or made by the Board of Directors, in good faith shall: 
  

	 	(iii)	be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other parties; and 

  

	 	(iv)	not subject the Board of Directors to any liability to the holders of the Rights. 

  

	 	(b)	Nothing contained in this Agreement shall be deemed to be in derogation of the obligation of the Board of Directors to exercise its fiduciary duties. Without limiting
the generality of the foregoing, nothing contained herein shall be construed to suggest or imply that the Board of Directors shall not be entitled to recommend that the holders of the Voting Shares reject any Permitted Bid or any Competing Permitted
Bid or any Take-Over Bid, or to take any other action (including, without limiting the generality of the foregoing, the commencement, prosecution, defence or settlement of any litigation and the submission of additional or alternative Permitted Bids
or Competing Permitted Bids or Take-Over Bids) with respect to any Permitted Bid or any Competing Permitted Bid or any Take-Over Bid or otherwise that the Board of Directors believes is necessary or appropriate in the exercise of its fiduciary
duties. 

  

	5.19	Declaration as to Non-Canadian Holders 

 If in the opinion of the Board of Directors (who may rely upon the advice of counsel) any action or event contemplated by this Agreement would require compliance with the securities laws or comparable
legislation of a jurisdiction outside Canada, the Board of Directors acting in good faith may take such actions as it may deem appropriate to ensure that such compliance is not required, including without limitation establishing procedures for the
issuance

  

 - 44 - 








 
to a Canadian resident trust company registered under the trust company legislation of Canada or any province thereof or a portfolio manager registered under the securities legislation of one or
more provinces of Canada (herein called a “Fiduciary”) of Rights or securities issuable on exercise of Rights, the holding thereof in trust for the Persons entitled thereto (but reserving to the Fiduciary or to the Fiduciary and the
Company, as the Company may determine, absolute instrument discretion with respect thereto) and the sale thereof and remittance of the proceeds of such sale, if any, to the Persons entitled thereto. In no event shall the Company or the Rights Agent
be required to issue or deliver Rights or securities issuable on exercise of Rights to Persons who are citizens, residents or nationals of any jurisdiction other than Canada and any province or territory thereof in which such issue or delivery would
be unlawful without registration of the relevant Persons or securities for such purposes. 
  

	5.20	Successor Companies 

 The
Company shall not consummate or permit or suffer to occur any consolidation, amalgamation, merger or transfer of the undertaking or assets of the Company as an entirety or substantially as an entirety to another corporation (the “Successor
Company”) unless the Successor Company resulting from such consolidation, amalgamation, merger or transfer (if not the Company) shall expressly assume, by supplemental agreement in form satisfactory to the Rights Agent and executed and
delivered to the Rights Agent, the due and punctual performance and observance of each and every covenant and condition of this Agreement to be performed and observed by the Company. 
  

 - 45 - 









	5.21	Time of Essence 

 Time
shall be of the essence of this Agreement. 
 WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written. 
  

									
			
	MED BIOGENE INC.	 		 	COMPUTERSHARE INVESTOR SERVICES INC.
					
	Per: 	 	/S/ ERINN BROSHKO	 		 	Per: 	 	/S/ JUNE GLOVER
		 	Authorized Signatory	 		 		 	Authorized Signatory
					
		 		 		 	Per: 	 	/S/ BRIAN KIM
		 		 		 		 	Authorized Signatory

  

 - 46 - 








 EXHIBIT A 
 (Form of Rights Certificate) 
  

					
	Certificate No.                                    
                            	  		  	                                       
                          Rights

 THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES (SPECIFIED IN SUBSECTION 3.1(b) OF THE RIGHTS AGREEMENT),
RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR TRANSFEREES OF AN ACQUIRING PERSON OR ITS AFFILIATES OR ASSOCIATES (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR ANY PERSON ACTING JOINTLY OR IN CONCERT WITH ANY OF THEM MAY BECOME VOID
WITHOUT ANY FURTHER ACTION. 
 Rights Certificate 
 This certifies that ___________________________, or registered assigns, is the registered holder of the number of Rights set forth above, each of which entitles the registered holder thereof, subject to
the terms, provisions and conditions of the Shareholder Rights Plan Agreement dated as of January 15, 2010, as such may from time to time be amended, restated, varied or replaced (the “Rights Agreement”) between Med BioGene
Inc., a company amalgamated under the British Columbia Business Corporations Act (the “Company”) and Computershare Investor Services Inc., a trust company incorporated under the laws of Canada, as Rights Agent (the
“Rights Agent”) which term shall include any successor Rights Agent under the Rights Agreement, to purchase from the Company at any time after the Separation Time (as such term is defined in the Rights Agreement) and prior to the
Expiration Time (as such term is defined in the Rights Agreement), one fully paid common share of the Company (a “Common Share”) at the Exercise Price referred to below, upon presentation and surrender of this Rights Certificate
with the Form of Election to Exercise duly executed and submitted to the Rights Agent at its principal office in any of the cities of Vancouver and Toronto. The Exercise Price shall initially be US$100 per Right and shall be subject to adjustment in
certain events as provided in the Rights Agreement. The number of Common Shares which may be purchased for the Exercise Price is subject to adjustment as set forth in the Rights Agreement. 
 This Rights Certificate is subject to all the terms, provisions and conditions of the Rights Agreement which terms and provisions are hereby
incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Rights Agent, the Company
and the holders of the Rights Certificates. Copies of the Rights Agreement are on file at the registered office of the Company and are available upon written request. 
 This Rights Certificate, with or without other Rights Certificates, upon surrender at any of the offices of the Rights Agent designated for such purpose, may be exchanged for another Rights Certificate or
Rights Certificate of like tenor and date evidencing an aggregate number of Rights equal to the aggregate number of Rights evidenced by the Rights Certificate or








 
Rights Certificates surrendered. If this Rights Certificate is exercised in part, the registered holder shall be entitled to receive, upon surrender hereof, another Rights Certificate or Rights
Certificate to the number of whole Rights not exercised. Any exercise of the Rights is subject to completion of the Form of Election to Exercise attached as Exhibit 1 hereto. Any assignment of Rights is subject to completion of the Form of
Assignment attached as Exhibit 2 hereto. 
 Subject to the provisions of the Rights Agreement, the Rights evidenced by this
Certificate may be redeemed by the Company at a redemption price of $0.001 per Right, subject to adjustment in certain events, under certain circumstances at its option. 
 No fractional Common Shares will be issued upon the exercise of any Right or Rights evidenced hereby nor will Rights Certificates be issued for less than one whole Right. After the Separation Time, in
lieu of issuing fractional Rights a cash payment will be made as provided in the Rights Agreement. 
 No holder of this Rights
Certificate, as such, shall be entitled to vote or receive dividends or be deemed for any purpose the holder of Common Shares or of any other securities which may at any time be issuable upon the exercise hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the Rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting
thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings or other actions affecting shareholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Rights evidenced by this Rights Certificate shall have been exercised as provided in the Rights Agreement. 
 This
Rights Certificate is not valid or obligatory for any purpose until it has been countersigned by the Rights Agent. 
 IN
WITNESS the facsimile signature of the proper officers of the Company and its seal. 
  

									
					
	Date: 	 	 	 		 		 	
	ATTEST:	 		 		 	
				
	 	 		 	By: 	 	 
	Secretary	 		 		 	

  

			
	
	Countersigned: (By Rights Agent)
		
	By 	 	 
		 	Authorized Signature








 EXHIBIT 1 
 FORM OF ELECTION TO EXERCISE 
 (To be attached to
each Rights Certificate) 
 To: 
 The undersigned hereby irrevocably elects to exercise ______________ whole Rights represented by the attached Rights Certificate to purchase the Common Shares issuable upon the exercise of such Rights and requests that certificates
for such shares be issued in the name of: 
  

			
	Name: 	  	 


			
	Street: 	  	 


			
	City, Province & Postal Code: 	  	 


			
	Social Insurance Number or	  	
	other taxpayer identification number: 	  	 

 If such number of Rights shall not be all the
Rights evidenced by this Rights Certificate, the undersigned requests that a new Rights Certificate for the balance of such Rights be issued in the name of and delivered to: 
  

			
	Name: 	  	 


			
	Street: 	  	 


			
	City, Province & Postal Code: 	  	 


			
	Social Insurance Number or	  	
	other taxpayer identification number: 	  	 

  

									
				
	Dated:	 	 	 		 	 
		 		 		 	Signature
			
	Signature Guaranteed:	 		 	(The signature on this form must correspond with the name as recorded on the certificate(s) in every particular, without alteration or enlargement or any change
whatsoever)

 Signature must be guaranteed by a Canadian chartered bank, a member firm of a recognized stock exchange in Canada, a
member of a registered national securities exchange in the United States, or a member of the Securities Transfer Association Medallion (STAMP) Program. 
  
  
 (To be completed if true) 

The undersigned represents, for the benefit of all holders of Rights and Common Shares, that the Rights evidenced by this Rights Certificate are not,
and, to the best of the knowledge of the undersigned, never have been, Beneficially Owned by an Acquiring Person or an Affiliate or Associate thereof or a person “acting jointly or in concert” with an Acquiring Person or an Affiliate or
Associate thereof. Capitalized terms and “acting jointly or in concert” have the meanings set out in the Rights Agreement. 
  

	
	
	  
	Signature









 Notice 
 If the certification set forth above is not completed, the Company shall deem the Beneficial Owner of the Rights evidenced by this Rights Certificate to be an Acquiring Person or an Affiliate or Associate
thereof. The Company shall not issue Rights Certificates in exchange for a Rights Certificate owned or deemed to have been owned by an Acquiring Person or an Affiliate or Associate thereof or by a Person acting jointly or in concert with an
Acquiring Person or an Affiliate or Associate thereof. 







 EXHIBIT 2 
 FORM OF ASSIGNMENT 
 (To be executed by the
registered holder if such holder desires to transfer the Rights Certificate) 
  

			
	FOR VALUE RECEIVED 	  	 


			
		
	hereby sells, assigns and transfers unto 	  	 
	
	


			
	
	 
	(Please print name and address of transferee)

 the Rights represented by this Rights Certificate, together with all right, title and interest therein, and hereby irrevocably constitutes and appoints _______________, as attorney, to transfer the within
Rights on the books of the within-named Company, with full power of substitution. 
  

									
				
	Dated: 	 	 	 		 	 
		 		 		 	Signature
			
	Signature Guaranteed:	 		 	(The signature on this form must correspond with the name as recorded on the certificate(s) in every particular, without alteration or enlargement or any change
whatsoever)

 Signature must be guaranteed by a Canadian chartered bank, a member firm of a recognized stock exchange in Canada, a
member of a registered national securities exchange in the United States, or a member of the Securities Transfer Association Medallion (STAMP) Program. 
  
  
 (To be completed if true) 

The undersigned represents, for the benefit of all holders of Rights and Common Shares, that the Rights evidenced by this Rights Certificate are not,
and, to the best of the knowledge of the undersigned, never have been, Beneficially Owned by an Acquiring Person or an Affiliate or Associate thereof or a person “acting jointly or in concert” with an Acquiring Person or an Affiliate or
Associate thereof. Capitalized terms and “acting jointly or in concert” have the meanings set out in the Rights Agreement. 
  

	
	
	  
	Signature









 Notice 
 If the certification set forth above is not completed, the Company shall deem the Beneficial Owner of the Rights evidenced by this Rights Certificate to be an Acquiring Person or an Affiliate or Associate
thereof. The Company shall not issue Rights Certificates in exchange for a Rights Certificate owned or deemed to have been owned by an Acquiring Person or an Affiliate or Associate thereof or by a Person acting jointly or in concert with an
Acquiring Person or an Affiliate or Associate thereof.