Securities Purchase Agreement, dated October 13, 2010.



  
 EXHIBIT 10.4

 SECURITIES PURCHASE AGREEMENT 
 THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”) is dated as of October 13, 2010, by and among World Heart Corporation, a Delaware corporation (the
“Company”), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively, the “Purchasers”).

 RECITALS 
 A. The Company and each Purchaser is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(2) of the Securities
Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the
“Commission”) under the Securities Act. 
 B. Each Purchaser, severally and not jointly,
wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) that aggregate number of shares of the common stock (the “Common Stock”) of the Company, set forth below
such Purchaser’s name on the signature page of this Agreement (which aggregate amount for all Purchasers together shall be 11,850,118 shares of Common Stock and shall be collectively referred to herein as the
“Shares”) and (ii) warrants, in substantially the form attached hereto as Exhibit A (the “Warrants”), to acquire up to that number of additional shares of Common Stock equal to 100% of
the number of shares purchased by such Purchaser on the Closing Date, set forth below such Purchaser’s name on the signature page of this Agreement (the shares of Common Stock issuable upon exercise of or otherwise pursuant to the Warrants
collectively are referred to herein as the “Warrant Shares”). 
 C. The Shares, the Warrants
and the Warrant Shares collectively are referred to herein as the “Securities”. 

D. Contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a
Registration Rights Agreement, substantially in the form attached hereto as Exhibit B (the “Registration Rights Agreement”), pursuant to which, among other things, the Company will agree to provide certain
registration rights with respect to the Shares and the Warrant Shares under the Securities Act and the rules and regulations promulgated thereunder and applicable state securities laws. 

NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the Company and the Purchasers hereby agree as follows: 







  
 ARTICLE 1

 DEFINITIONS 
 1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms shall have the meanings indicated in this
Section 1.1: 
 “Action” means any action, suit, inquiry, notice of violation, proceeding
(including any partial proceeding such as a deposition) or investigation pending or, to the Company’s Knowledge, threatened in writing (or otherwise) against the Company or any of their respective properties or any officer, director or employee
of the Company acting in his or her capacity as an officer, director or employee before or by any federal, state, county, local or foreign court, arbitrator, governmental or administrative agency, regulatory authority, stock market, stock exchange
or trading facility. 
 “Affiliate” means, with respect to any Person, any other Person that, directly
or indirectly through one or more intermediaries, Controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 144. With respect to a Purchaser, any investment fund or managed
account that is managed on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser. 
 “Agreement” shall have the meaning ascribed to such term in the Preamble. 
 “Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business. 

“Closing” means the closing of the purchase by the Purchasers listed on Annex A hereto and sale by the Company of
Shares and Warrants to such Purchasers pursuant to this Agreement on the Closing Date as provided in Section 2.1(a) hereof. 
 “Closing Bid Price” means, for any security as of any date, the last closing price for such security on the Principal Trading Market, as reported by Bloomberg. 

“Closing Date” means the third (3rd) Trading Day after the date on which this Agreement has been executed
and delivered by all parties hereto, unless on such date the conditions set forth in Sections 2.1, 2.2, 5.1 and 5.2 (other than those to be satisfied at the Closing) shall not have been satisfied or waived, in which case the Closing Date shall
be on the third (3rd) Trading Day after the date on which the last to be satisfied or waived of the conditions set forth in Sections 2.1, 2.2, 5.1 and 5.2 (other than those to be satisfied at the Closing) shall have been satisfied or
waived. 
 “Common Stock” has the meaning set forth in the Recitals, and also includes any securities
into which the Common Stock may hereafter be reclassified or changed. 







  
 “Common
Stock Equivalents” means any securities of the Company which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument
that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock or other securities that entitle the holder to receive, directly or indirectly, Common Stock. 

“Company Counsel” means Cooley LLP. 
 “Company Deliverables” has the meaning set forth in Section 2.2(a). 
 “Company’s Knowledge” means the actual knowledge of the executive officers (as defined in Rule 405 under the Securities Act) of the Company, after due inquiry.

 “Control” (including the terms “controlling”,
“controlled” by or “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise. 
 “Disclosure Materials” has the meaning set
forth in Section 3.1(h). 
 “Effective Date” means the date on which the initial Registration
Statement required by Section 2(a) of the Registration Rights Agreement is first declared effective by the Commission. 
 “Effectiveness Deadline” means the date on which the initial Registration Statement is required to be declared effective by the Commission under the terms of the Registration
Rights Agreement. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any
successor statute, and the rules and regulations promulgated thereunder. 
 “GAAP” means U.S.
generally accepted accounting principles, as applied by the Company. 
 “Intellectual Property” means
all of the following: (i) patents, patent applications, patent disclosures and inventions (whether or not patentable and whether or not reduced to practice); (ii) trademarks, service marks, trade dress, trade names, corporate names, logos,
slogans and Internet domain names, together with all goodwill associated with each of the foregoing; (iii) copyrights and copyrightable works; (iv) registrations, applications and renewals for any of the foregoing; and (v) proprietary
computer software (including but not limited to data, data bases and documentation). 
 “Irrevocable Transfer Agent
Instructions” means, with respect to the Company, the Irrevocable Transfer Agent Instructions, in the form of Exhibit D, executed by the Company and delivered to and acknowledged in writing by the Transfer Agent. 

“Lien” means any lien, charge, claim, encumbrance, security interest, right of first refusal, preemptive right or
other restrictions of any kind. 







  
 “Material
Adverse Effect” means a material adverse effect on (a) the results of operations, assets, liabilities, business, or financial condition of the Company and its Subsidiaries, taken as a whole, or (b) the ability of the Company
to perform its obligations under the Transaction Documents, except that any of the following, either alone or in combination, shall not be deemed a Material Adverse Effect: (i) effects caused by changes or circumstances affecting general
market conditions in the U.S. economy or which are generally applicable to the industry in which the Company operates, (ii) effects resulting from or relating to the announcement or disclosure of the sale of the Securities or other transactions
contemplated by this Agreement, or (iii) effects caused by any event, occurrence or condition resulting from or relating to the taking of any action in accordance with this Agreement. 

“Material Contract” means any contract of the Company or any of its Subsidiaries that has been filed or was
required to have been filed as an exhibit to the SEC Reports pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K. 
 “New York Courts” means the state and federal courts sitting in the City of New York, Borough of Manhattan. 

“Officer’s Certificate” has the meaning set forth in Section 2.2(a)(vi). 

“Outside Date” means November 13, 2010. 

“Person” means an individual, corporation, partnership, limited liability company, trust, business trust,
association, joint stock company, joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein. 

“Principal Trading Market” means the Trading Market on which the Common Stock is primarily listed on and quoted
for trading, which, as of the date of this Agreement and the Closing Date, shall be the Nasdaq Capital Market. 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced or threatened. 
 “Purchase
Price” means $2.135 per unit. 
 “Purchaser Deliverables” has the meaning set forth in
Section 2.2(b). 
 “Registration Rights Agreement” has the meaning set forth in the Recitals.

 “Registration Statement” means a registration statement meeting the requirements set forth in the
Registration Rights Agreement and covering the resale by the Purchasers of the Registrable Securities (as defined in the Registration Rights Agreement). 
 “Required Approvals” has the meaning set forth in Section 3.1(e). 
 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 







  
 “SEC
Reports” has the meaning set forth in Section 3.1(h). 
 “Securities Act” means
the Securities Act of 1933, as amended. 
 “Short Sales” include, without limitation, (i) all
“short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short
sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements (including on a total return basis), and (ii) sales and other transactions through non-U.S. broker
dealers or foreign regulated brokers. 
 “Subscription Amount” means with respect to each Purchaser, the
aggregate amount to be paid for the Shares and the related Warrants purchased hereunder as indicated opposite such Purchaser’s name on Annex A to this Agreement under the heading “Aggregate Purchase Price (Subscription Amount)”.

 “Subsidiary” means another Person, an amount of the voting securities, other voting ownership or
voting partnership interests of which is sufficient to elect at least a majority of its board of directors or other governing body or, if there are no such voting interests, 50% or more of the equity interests of which is owned directly or
indirectly by the Company. 
 “Trading Affiliate” has the meaning set forth in Section 3.2(h).

 “Trading Day” means a day on which the Common Stock is listed or quoted and traded on its Principal
Trading Market. 
 “Trading Market” means whichever of the New York Stock Exchange, the American Stock
Exchange, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market or the OTC Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question. 

“Transaction Documents” means this Agreement, the schedules and exhibits attached hereto, the Warrants, the
Registration Rights Agreement, the Irrevocable Transfer Agent Instructions and any other documents or agreements executed in connection with the transactions contemplated hereunder. 

“Transfer Agent” means BNY Mellon Shareowner Services, or any successor transfer agent for the Company.

 “Warrants” has the meaning set forth in the Recitals to this Agreement. 







  
 ARTICLE 2

 PURCHASE AND SALE 
 2.1 Closing. 
 (a) Amount. Subject to the terms and
conditions set forth in this Agreement, at the Closing, the Company shall issue and sell to each Purchaser listed on Annex A hereto, and each Purchaser listed on Annex A hereto shall, severally and not jointly, purchase from the Company, such number
of Shares of Common Stock equal to the quotient resulting from dividing (i) the Subscription Amount for such Purchaser by (ii) the Purchase Price. In addition, each Purchaser listed on Annex A hereto shall receive a Warrant to purchase a
number of Warrant Shares equal to 100% of the number of Shares purchased by such Purchaser on the Closing Date, as indicated opposite such Purchaser’s name on Annex A to this Agreement. The Warrants shall have an exercise price equal to $2.31
per Warrant Share. 
 (b) Closing. The Closing of the purchase and sale of the Shares and Warrants shall take place
at the offices of Company Counsel, 3175 Hanover Street, Palo Alto, California on the Closing Date or at such other locations or remotely by facsimile transmission or other electronic means as the parties may mutually agree. 

(c) Form of Payment. Unless alternative arrangements are agreed to with a particular Purchaser, on the Closing
Date, (i) each Purchaser listed on Annex A hereto shall wire its Subscription Amount, in United States dollars and in immediately available funds, in the amount set forth as the “Aggregate Purchase Price (Subscription Amount)”
indicated opposite such Purchaser’s name on Annex A hereto by wire transfer to the Company’s account, as set forth in instructions previously provided to the Purchasers, (ii) the Company shall irrevocably instruct the Transfer Agent
to deliver to each Purchaser listed on Annex A hereto one or more stock certificates, free and clear of all restrictive and other legends except as expressly provided in Section 4.1(b) hereof, evidencing the number of Shares such Purchaser
is purchasing as is set forth opposite such Purchaser’s name on Annex A to this Agreement under the heading “Number of Shares to be Acquired”, within three (3) Business Days after the Closing and (iii) the Company shall
issue to each Purchaser listed on Annex A hereto a Warrant pursuant to which such Purchaser shall have the right to acquire such number of Warrant Shares as is set forth opposite such Purchaser’s name on Annex A to this Agreement under the
heading “Underlying Shares Subject to Warrant”, in the case of clauses (ii) and (iii), duly executed on behalf of the Company and registered in the name of such Purchaser. 

2.2 Closing Deliveries. (a) On or prior to the Closing with respect to the Purchasers listed on Annex A hereto the
Company shall issue, deliver or cause to be delivered to each such Purchaser the following (the “Company Deliverables”): 
 (i) this Agreement, duly executed by the Company; 

(ii) unless alternative arrangements are agreed to with a particular Purchaser, facsimile copies of one or more stock
certificates, free and clear of all restrictive and other legends except as provided in Section 4.1(b) hereof, evidencing the Shares subscribed for by such Purchaser hereunder, registered in the name of such Purchaser as set forth on the
Stock Certificate Questionnaire included as Exhibit C-2 hereto (the “Stock Certificates”), with the original Stock Certificates delivered within three (3) Business Days of Closing; 







  
 (iii) a
Warrant, executed by the Company and registered in the name of such Purchaser as set forth on the Stock Certificate Questionnaire included as Exhibit C-2 hereto, pursuant to which such Purchaser shall have the right to acquire such
number of Warrant Shares equal to 100% of the number of Shares purchased by such Purchaser on the Closing Date, on the terms set forth therein; 
 (iv) the Registration Rights Agreement, duly executed by the Company; 

(v) duly executed Irrevocable Transfer Agent Instructions acknowledged in writing by the Transfer Agent; 

(vi) a certificate of the Company (the “Officer’s Certificate”), dated as of the Closing Date,
(a) certifying the resolutions adopted by the Board of Directors of the Company or a duly authorized committee thereof approving the transactions contemplated by this Agreement and the other Transaction Documents and the issuance of the
Securities and the reservation for issuance of the Warrant Shares, (b) certifying the current versions of the Certificate of Incorporation, as amended, and bylaws of the Company (c) certifying as to the signatures and authority of persons
signing the Transaction Documents and related documents on behalf of the Company, in the form attached hereto as Exhibit E and (d) certifying good standing certificates with respect to the Company and its Subsidiary World Hearts
Inc. from the Secretary of State of the State of Delaware, dated a recent date before the Closing Date; 

(vii) the Compliance Certificate referred to in Section 5.1(g). 

(b) On or prior to the Closing with respect to the Purchasers listed on Annex A hereto each such Purchaser shall deliver or
cause to be delivered to the Company the following (the “Purchaser Deliverables”): 

(i) this Agreement, duly executed by such Purchaser; 

(ii) its Subscription Amount, in United States dollars and in immediately available funds, in the amount set forth as the
“Aggregate Purchase Price (Subscription Amount)” indicated below such Purchaser’s name on the applicable signature page hereto by wire transfer to the Company’s account as previously provided to the Purchasers; 

(iii) the Registration Rights Agreement, duly executed by such Purchaser; 

(iv) a fully completed and duly executed Selling Stockholder Questionnaire in the form attached as Annex B to the
Registration Rights Agreement; and 
 (v) a fully completed and duly executed Accredited Investor Questionnaire and
Stock Certificate Questionnaire in the forms attached hereto as Exhibits C-1 and C-2, respectively. 







  
 ARTICLE 3

 REPRESENTATIONS AND WARRANTIES 
 3.1 Representations and Warranties of the Company. The Company hereby represents and warrants as of the date hereof and the Closing Date (except for the representations and warranties that
speak as of a specific date, which shall be made as of such date), to each of the Purchasers that, except as set forth in the Schedules delivered herewith or disclosed in the SEC Reports: 

(a) Subsidiaries. Except as disclosed in the SEC Reports, the Company does not have any direct and indirect Subsidiaries.

 (b) Organization and Qualification. The Company and each Subsidiary is an entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of the jurisdiction of its respective incorporation, with the requisite corporate power and authority to own or lease and use its properties and assets and to carry on its business as
currently conducted. Neither the Company nor any of its Subsidiaries is in violation of any of the provisions of its respective Certificate of Incorporation or bylaws, or other organizational documents, as applicable. The Company and each Subsidiary
is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the
failure to be so qualified or in good standing, as the case may be, would not have a Material Adverse Effect. 

(c) Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by each of the Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents to which the
Company is a party and the consummation by it of the transactions contemplated hereby and thereby (including, but not limited to, the sale and delivery of the Shares and the Warrants and the reservation for issuance and the subsequent issuance of
the Warrant Shares upon exercise of the Warrants) have been duly authorized by all necessary corporate action on the part of the Company, and no further corporate action is required by the Company, its Board of Directors or its stockholders in
connection therewith, other than in connection with the Required Approvals to be obtained, made, filed or given by the Company after the Closing pursuant to Section 4 hereof or the Registration Rights Agreement. Each of the Transaction
Documents to which it is a party has been (or upon delivery will have been) duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute the legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the
enforcement of, creditors’ rights and remedies or by other equitable principles of general application. Except as disclosed in the SEC Reports, there are no stockholder agreements, voting agreements, or other similar arrangements with
respect to the Company’s capital stock to which the Company is a party or, to the Company’s Knowledge, between or among any of the Company’s stockholders. 







  
 (d) No
Conflicts. The execution, delivery and performance by the Company of the Transaction Documents to which it is a party and the consummation by the Company of the transactions contemplated hereby or thereby (including, without limitation, the
issuance of the Shares and Warrants and the reservation for issuance and issuance of the Warrant Shares pursuant to the Warrants) do not and will not (i) conflict with or violate any provisions of the Company’s Certificate of Incorporation
or bylaws or otherwise result in a violation of the organizational documents of the Company or any Subsidiary, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under,
result in the creation of any Lien upon any of the properties or assets of the Company or any of its Subsidiaries or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both)
of, any Material Contract or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or any of its Subsidiaries is subject
(including federal, state and applicable foreign securities laws and regulations and the rules and regulations, assuming the correctness of the representations and warranties made by the Purchasers herein, of any self regulatory organization to
which the Company or its securities are subject, including all applicable Trading Markets), or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except in the case of clause (iii) such as would not,
individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. 
 (e) Filings, Consents and
Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents (including the issuance of the Securities and reservation for issuance of the Warrant Shares pursuant to the Warrants), other than
(i) the filing with the Commission of one or more Registration Statements in accordance with the requirements of the Registration Rights Agreement, (ii) filings required by applicable state securities laws, (iii) the filing of a
Notice of Sale of Securities on Form D with the Commission under Regulation D of the Securities Act, (iv) the filing of any requisite notices and/or application(s) to the Principal Trading Market for the issuance and sale of the
Shares and the Warrants, and the issuance of the Warrant Shares upon exercise of the Warrants, and the listing of the Shares and the Warrant Shares for trading or quotation, as the case may be, thereon in the time and manner required thereby and
(v) those that have been made or obtained prior to the date of this Agreement (collectively, the “Required Approvals”). 
 (f) Issuance of the Securities. The Shares have been duly authorized and, when issued and paid for in accordance with the terms of the Transaction Documents, will be duly and validly issued,
fully paid and nonassessable and free and clear of all Liens, other than restrictions on transfer provided for in the Transaction Documents or imposed by applicable securities laws, and shall not be subject to preemptive or similar rights. The
Warrants have been duly authorized and, when issued and paid for in accordance with the terms of the Transaction Documents, will be duly and validly issued, free and clear of all Liens, other than restrictions on transfer provided for in the
Transaction Documents or imposed by applicable securities laws, and shall not be subject to preemptive or similar rights of stockholders. The Warrant Shares issuable upon exercise of the Warrants have been duly authorized and, when issued and paid
for in accordance with the terms of the Transaction Documents and the Warrants will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens, other than restrictions on transfer provided for in the Transaction Documents
or imposed by applicable securities laws, and shall not be subject to preemptive or similar rights of stockholders. Assuming the accuracy of the representations and warranties of the Purchasers in this Agreement, the Warrants, the Shares and the
Warrant Shares will be issued in compliance with all applicable federal and state securities laws. As of the Closing Date, the Company shall have reserved from its duly authorized capital stock not less than the maximum number of shares of Common
Stock issuable upon exercise of the Warrants (without taking into account any limitations on the exercise of the Warrants set forth in the Warrants). The Company shall, so long as any of the Warrants are outstanding, take all action necessary to
reserve and keep available out of its authorized and unissued capital stock, solely for the purpose of effecting the exercise of the Warrants, the number of shares of Common Stock issuable upon exercise of the Warrants (without taking into account
any limitations on the exercise of the Warrants set forth in the Warrants). 







  

(g) Capitalization. The number of shares and type of all authorized, issued and outstanding capital stock,
options and other securities of the Company (whether or not presently convertible into or exercisable or exchangeable for shares of capital stock of the Company) has been set forth in the SEC Reports and has changed since the date set forth in such
SEC Reports only to reflect stock option exercises and grants and warrant exercises that have not, individually or in the aggregate, had a material effect on the issued and outstanding capital stock, options and other securities and have not
otherwise been required to be reported by the Company under the Exchange Act. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and non-assessable, have been issued in compliance in all
material respects with all applicable federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase any capital stock of the
Company. Except as set forth in the SEC Reports: (i) no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any Liens or encumbrances suffered or permitted by the Company;
(ii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital
stock of the Company, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional shares of capital stock of the Company or options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company; (iii) there are no outstanding debt securities, notes, credit
agreements, credit facilities or other agreements, documents or instruments evidencing indebtedness of the Company or by which the Company is or may become bound; (iv) there are no financing statements securing obligations in any material
amounts, either singly or in the aggregate, filed in connection with the Company; (v) there are no agreements or arrangements under which the Company is obligated to register the sale of any of their securities under the Securities Act (except
the Registration Rights Agreement); (vi) there are no outstanding securities or instruments of the Company or which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which
the Company is or may become bound to redeem a security of the Company; (vii) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (viii) the
Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (ix) the Company has no liabilities or obligations required to be disclosed in the SEC Reports but not so
disclosed in the SEC Reports, other than those incurred in the ordinary course of the Company’s business and which, individually or in the aggregate, do not or would not have a Material Adverse Effect. 







  
 (h) SEC
Reports and Disclosure. The Company has filed all reports, schedules, forms, statements and other documents required to be filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for twelve
(12) months preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
being collectively referred to herein as the “SEC Reports” and together with this Agreement and the Schedules to this Agreement (if any), the “Disclosure Materials”), on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. To the Company’s Knowledge, no event or circumstance has occurred or information exists with respect to the
Company or any of its Subsidiaries or its or their business, properties, operations or financial condition, which, under applicable law, rule or regulation requires the filing of a Form 8-K after the Closing, or otherwise requires public
disclosure or announcement by the Company but which has not been so publicly announced or disclosed (other than the transactions contemplated by the Transaction Documents). As of their respective filing dates, or to the extent corrected by a
subsequent amendment, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when
filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not
misleading. None of the representations, warranties, or covenants in this Agreement, the Warrants or any other Transaction Documents, or other disclosures made to the Purchasers in connection with the transactions contemplated by this
Agreement, the Warrants and the other Transaction Documents, when taken together, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein, in light of the
circumstances under which they were made, not misleading. 
 (i) Financial Statements. The financial statements of
the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements
have been prepared in accordance with GAAP applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not
contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries taken as a whole as of and for the dates thereof and the results of operations and cash flows
for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments. Each of the Material Contracts to which the Company or any of its Subsidiaries is a party or to which the property or assets of the
Company or any of its Subsidiaries is subject has been filed as an exhibit to the SEC Reports. 
 (j) Tax Matters.
The Company and its Subsidiaries (i) have prepared and filed all foreign, federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which they are subject, (ii) have paid all taxes and
other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith, with respect to which adequate reserves have been set aside
on the books of the Company and its Subsidiaries and (iii) have set aside on the books of the Company and its Subsidiaries provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns,
reports or declarations apply, except, in the case of clauses (i) and (ii) above, where the failure to so pay or file any such tax, assessment, charge or return would not have a Material Adverse Effect. 







  
 (k) Material
Changes. Since the date of the latest financial statements included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be
expected to have, either individually or in the aggregate, a Material Adverse Effect, (ii) the Company and its Subsidiaries have not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued
expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or to be disclosed in filings
made with the Commission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of
cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company),
(v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends, or pursuant to existing Company stock option or stock purchase plans or executive and
director corporate arrangements disclosed in the SEC Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any Material Contract under which the Company or any of its assets is bound
or subject. Except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company or its business, properties, operations or financial condition that would be
required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed at least one Trading Day prior to the date that this representation is made. 

(l) Litigation. Except as disclosed in the SEC Reports, there is no Action which (i) adversely affects or challenges the
legality, validity or enforceability of any of the Transaction Documents or the Securities, (ii) involves a claim of material violation of or material liability under any federal, state, local or foreign laws governing the Company’s and
its Subsidiaries operations, including without limiting the generality of the foregoing, laws regulating the protection of human health, including without limiting the generality of the foregoing, laws relating to the manufacture, processing,
packaging, labeling, marketing, distribution, use, inspection, treatment, storage, disposal, transport or handling of the Company’s and its Subsidiaries’ products, and regulated or hazardous substances, as well as all authorizations,
codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder, all as may be in effect from time to time and all
successors, replacements and expansions thereof, (iii) involves injury to or death of any person arising from or relating to any of the Company’s or its Subsidiaries’ products, or (iv) could, if there were an unfavorable
decision, individually or in the aggregate, have a Material Adverse Effect. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the Exchange Act or the
Securities Act. 







  
 (m) Regulatory
Matters. 
 (i) The Company and its Subsidiaries are in compliance, in all material respects, with all
applicable laws administered or issued by the United States Food and Drug Administration (the “FDA”) or the similar governmental entity in any applicable jurisdiction (together with the FDA, the “Regulating
Authority”). 
 (ii) The Company and its Subsidiaries have obtained all necessary and applicable
exemptions, approvals, clearances, authorizations, licenses and registrations required by Regulating Authorities to permit the development, manufacture, pre-clinical and clinical testing of its products, if any, as presently conducted in
jurisdictions where the Company and its Subsidiaries currently conduct such activities. The Company and its Subsidiaries have properly registered any human clinical trials to the extent required by applicable law. 

(iii) All preclinical and clinical studies conducted by or (to the Company’s Knowledge) for the Company and its
Subsidiaries (i) have been conducted in accordance with recognized good clinical and good laboratory practices in all material respects, and (ii) are in compliance with applicable laws administered or promulgated by the Regulating
Authority regarding preclinical and clinical studies in all material respects. 
 (iv) There have been no recalls
ordered or adverse regulatory actions taken (or, to the Company’s Knowledge, threatened) by the FDA or any other Regulating Authority with respect to any of the products of the Company and its Subsidiaries, if any, including any facilities
where any such products are manufactured, processed, packaged or stored by the Company and its Subsidiaries. 

(v) No false information or significant omission has been made in any products application or products-related submission to
the Regulating Authority by or, to the Company’s Knowledge, on behalf of the Company and its Subsidiaries. 

(n) Title to Assets. The Company and its Subsidiaries have good and marketable title in fee simple to all real property owned
by them as set forth in the SEC Reports. The Company and its Subsidiaries have good and marketable title to all tangible personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and
clear of all liens, encumbrances and defects except such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company and its Subsidiaries. Any real property
and facilities held under lease by the Company or its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such
property and buildings by the Company and its Subsidiaries. 







  

(o) Intellectual Property. 
 (i) All Intellectual Property of the Company and its Subsidiaries is currently in compliance with all legal requirements (including timely filings, proofs and payments of fees). No
Intellectual Property of the Company or its Subsidiaries which is necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted has been or is
now involved in any cancellation, dispute or litigation, and, to the Company’s Knowledge, no such action is threatened. No patent of the Company or its Subsidiaries has been or is now involved in any interference, reissue, re-examination
or opposition proceeding. 
 (ii) All of the licenses and sublicenses and consent, royalty or other agreements
concerning Intellectual Property which are necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted to which the Company or any
Subsidiary is a party or by which any of their assets are bound (other than generally commercially available, non-custom, off-the-shelf software application programs having a retail acquisition price of less than $10,000 per license) (collectively,
“License Agreements”) are valid and binding obligations of the Company or its Subsidiaries that are parties thereto and, to the Company’s Knowledge, the other parties thereto, enforceable in accordance with their terms,
except to the extent that enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally, and there exists no event
or condition which will result in a material violation or breach of or constitute (with or without due notice or lapse of time or both) a default by the Company or any of its Subsidiaries under any such License Agreement. 

(iii) To the Company’s Knowledge, the Company and its Subsidiaries own or have the valid right to use all of the
Intellectual Property that is necessary for the conduct of the Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted and for the ownership, maintenance and operation
of the Company’s and its Subsidiaries’ properties and assets, free and clear of all liens, encumbrances, adverse claims or obligations to license all such owned Intellectual Property, other than licenses entered into in the ordinary course
of the Company’s and its Subsidiaries’ businesses. To the Company’s Knowledge, the Company and its Subsidiaries have a valid and enforceable right to use all third party Intellectual Property used or held for use in the
respective businesses of the Company and its Subsidiaries. 
 (iv) To the Company’s Knowledge, the conduct of
the Company’s and its Subsidiaries’ businesses as currently conducted does not infringe or otherwise impair or conflict with (collectively, “Infringe”) any Intellectual Property rights of any third party or any
confidentiality obligation owed to a third party, and, to the Company’s Knowledge, the Intellectual Property of the Company and its Subsidiaries which are necessary for the conduct of the Company’s and each of its Subsidiaries’
respective businesses as currently conducted or as currently proposed to be conducted are not being Infringed by any third party. There is no litigation or order pending or outstanding or, to the Company’s Knowledge, threatened or
imminent, that seeks to limit or challenge or that concerns the ownership, use, validity or enforceability of any Intellectual Property of the Company and its Subsidiaries and the Company’s and its Subsidiaries’ use of any Intellectual
Property owned by a third party, and, to the Company’s Knowledge, there is no valid basis for the same. 







  
 (v) The
consummation of the transactions contemplated hereby and by the other Transaction Documents will not result in the alteration, loss, impairment of or restriction on the Company’s or any of its Subsidiaries’ ownership or right to use any of
the Intellectual Property which is necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as currently conducted or as currently proposed to be conducted. 

(vi) The Company and its Subsidiaries have taken reasonable steps to protect the Company’s and its Subsidiaries’
rights in their Intellectual Property. Each employee, consultant and contractor who has had access to confidential information which is necessary for the conduct of Company’s and each of its Subsidiaries’ respective businesses as
currently conducted or as currently proposed to be conducted has executed an agreement to maintain the confidentiality of such confidential information and has executed appropriate agreements that are substantially consistent with the Company’s
standard forms thereof. Except under confidentiality obligations, there has been no material disclosure of any of the Company’s or its Subsidiaries’ confidential information to any third party. 

(p) Private Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in
Section 3.2 of this Agreement and the accuracy of the information disclosed in the Accredited Investor Questionnaires, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the
Purchasers under the Transaction Documents. 
 (q) Registration Rights. Other than each of the Purchasers, no Person
has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company other than those securities which are currently registered on an effective registration statement on file with the Commission.

 (r) No Directed Selling Efforts or General Solicitation. Neither the Company, nor any Person acting on behalf of
the Company has conducted any “general solicitation” or “general advertising” (as those terms are used in Regulation D) in connection with the offer or sale of any of the Securities. 

(s) No Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in
Section 3.2, neither the Company nor any Person acting on its behalf has, directly or indirectly, made any offers or sales of any Company security or solicited any offers to buy any security under circumstances that would (i) eliminate the
availability of the exemption from registration under Regulation D under the Securities Act in connection with the offer and sale by the Company of the Securities as contemplated hereby or (ii) cause the offering of the Securities pursuant
to the Transaction Documents to be integrated with prior offerings by the Company or aggregated with prior offerings by the Company for purposes of any applicable law, regulation or stockholder approval provisions, including, without limitation,
under the rules and regulations of any Trading Market on which any of the securities of the Company are listed or designated. 







 (t) Listing and Maintenance Requirements. The Company’s Common Stock is
registered pursuant to Section 12(b) of the Exchange Act, and the Company has taken no action designed to terminate the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the
Commission is contemplating terminating such registration. Except as set forth in the SEC Reports, the Company has not, in the 12 months preceding the date hereof, received written or oral notice from any Trading Market on which the Common
Stock is or has been listed or quoted or from the Financial Industry Regulatory Authority to the effect that the Company is not in compliance with the listing or maintenance requirements of any such Trading Market. Except as set forth in the SEC
Reports, the Company is in compliance in all material respects with the listing and maintenance requirements for continued trading of the Common Stock on the Principal Trading Market. The issuance and sale of the Securities under this Agreement
does not contravene the rules and regulations of the Principal Trading Market, and no approval of the stockholders of the Company thereunder is required for the Company to issue and deliver the Securities to the Purchasers. 

(u) Investment Company. The Company is not required to be registered as, and is not an Affiliate of, and immediately
following the Closing will not be required to register as, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 (v) Transactions with Affiliates. Except as disclosed in the SEC Reports or as contemplated by this Agreement, none of the officers or directors of the Company and, to the Company’s
Knowledge, none of the employees of the Company or any Subsidiary or stockholders of the Company holding 5% or more of the outstanding voting securities of the Company is presently a party to any material transaction with the Company or any
Subsidiary (other than, in the case of officers, directors and employees of the Company, as holders of stock options or warrants in consideration for services as employees, officers or directors, as applicable), including, without limitation, any
material contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or employee or, to
the Company’s Knowledge, any entity in which any officer, director or any employee has a substantial interest or is an officer, director, trustee or partner. 
 (w) Sarbanes-Oxley Act. The Company is in compliance in all material respects with applicable requirements of the Sarbanes-Oxley Act of 2002 and applicable rules and regulations
promulgated by the Commission thereunder. 
 (x) Disclosure Controls and Procedures. The Company has
established and maintains disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) that are effective in all material respects to ensure that material information relating to the Company, including its
Subsidiaries, is made known to its chief executive officer and chief financial officer by others within those entities. The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of
December 31, 2009. The Company presented in its Annual Report on Form 10-K for the fiscal year ended December 31, 2009 the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures
based on their evaluations as of December 31, 2009. Since December 31, 2009, there have been no significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of Regulation S-K under the
Exchange Act) or, to the Company’s Knowledge, in other factors that could significantly affect the Company’s internal controls, except as disclosed in the SEC Reports. 







 3.2 Representations and Warranties of the Purchasers. Each Purchaser hereby, for
itself and for no other Purchaser, represents and warrants as of the date hereof and as of the Closing Date in the case of the Purchasers listed on Annex A hereto to the Company as follows: 

(a) Organization; Authority. Such Purchaser is an entity duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization with the requisite corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents to which it is a party and otherwise to carry out its
obligations hereunder and thereunder. The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or, if such Purchaser is not a corporation, such
partnership, limited liability company or other applicable like action, on the part of such Purchaser. Each of this Agreement and the Registration Rights Agreement has been (or upon delivery will have been) duly executed by such Purchaser, and when
delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application.

 (b) No Conflicts. The execution, delivery and performance by such Purchaser of this Agreement and the
Registration Rights Agreement and the consummation by such Purchaser of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of such Purchaser, (ii) conflict with, or
constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such
Purchaser is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Purchaser, except in the case of clauses (ii) and
(iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Purchaser to perform its obligations hereunder.

 (c) Investment Intent. Such Purchaser understands that the Securities are “restricted securities” and
have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities and, upon exercise of the Warrants, will acquire the Warrant Shares issuable upon exercise thereof as principal for its own
account and not with a view to, or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities laws, provided, however, that by making the representations
herein, such Purchaser does not agree to hold any of the Securities for any minimum period of time and reserves the right, subject to the provisions of this Agreement and the Registration Rights Agreement, at all times to sell or otherwise dispose
of all or any part of such Securities, including, without limitation, the Warrant Shares, pursuant to an effective registration statement under the Securities Act or under an exemption from such registration and in compliance with applicable federal
and state securities laws. Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. Such Purchaser does not presently have any agreement, plan or understanding, directly or indirectly, with any Person to
distribute or effect any distribution of any of the Securities (or any securities which are derivatives thereof) to or through any person or entity; such Purchaser is not a registered broker-dealer under Section 15 of the Exchange Act or an
entity engaged in a business that would require it to be so registered as a broker-dealer. 







 (d) Purchaser Status. At the time such Purchaser was offered the Securities, it
was, and at the date hereof it is, and on each date on which it exercises the Warrants it will be, an “accredited investor” as defined in Rule 501(a) under the Securities Act. 

(e) General Solicitation. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice
or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general advertisement. 

(f) Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is
able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment. 
 (g) Access to Information. Such Purchaser acknowledges that it has had the opportunity to review the Disclosure Materials and has been afforded (i) the opportunity to ask such questions
as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information
about the Company and its respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf
of such Purchaser or its representatives or counsel shall modify, amend or affect such Purchaser’s right to rely on the truth, accuracy and completeness of the Disclosure Materials and the Company’s representations and warranties contained
in the Transaction Documents. Such Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed decision with respect to its acquisition of the Securities. 

(h) Certain Trading Activities. Other than with respect to the transactions contemplated herein, since the time that such
Purchaser was first contacted by the Company or any other Person regarding the transactions contemplated hereby, neither the Purchaser nor, to the knowledge of such Purchaser, any Affiliate of such Purchaser which (x) had knowledge of the
transactions contemplated hereby, (y) has knowledge or shares discretion relating to such Purchaser’s investments or trading or information concerning such Purchaser’s investments, including in respect of the Securities, and
(z) is subject to such Purchaser’s review or input concerning such Affiliate’s investments or trading (collectively, “Trading Affiliates”) has directly or indirectly, nor has any Person acting on behalf
of or pursuant to any understanding with such Purchaser or Trading Affiliate, effected or agreed to effect any transactions in the securities of the Company (including, without limitation, any Short Sales involving the Company’s securities).
Notwithstanding the foregoing, in the case of a Purchaser and/or Trading Affiliate that is, individually or collectively, a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s or
Trading Affiliate’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s or Trading Affiliate’s assets, the representation
set forth above shall apply only with respect to the portion of assets managed by the portfolio manager that have knowledge about the financing transaction contemplated by this Agreement. Other than to other Persons (a) party to this Agreement
or (b) advising such Purchaser in relation to the Transaction Documents and the transactions contemplated herein and therein, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction
(including the existence and terms of this transaction). 







 (i) Brokers and Finders. No Person will have, as a result of the transactions
contemplated by this Agreement, any valid right, interest or claim against or upon the Company or any Purchaser for any commission, fee or other compensation pursuant to any agreement, arrangement or understanding entered into by or on behalf of the
Purchaser. 
 (j) Independent Investment Decision. Such Purchaser has independently evaluated the merits of its
decision to purchase Securities pursuant to the Transaction Documents, and such Purchaser confirms that it has not relied on the advice of any other Purchaser’s business and/or legal counsel in making such decision. Such Purchaser understands
that nothing in this Agreement or any other materials presented by or on behalf of the Company to the Purchaser in connection with the purchase of the Securities constitutes legal, tax or investment advice. Such Purchaser has consulted such legal,
tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Securities. 
 (k) Reliance on Exemptions. Such Purchaser understands that the Securities being offered and sold to it in reliance on specific exemptions from the registration requirements of United States
federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgements and understandings of such Purchaser
set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser to acquire the Securities. 
 (l) No Governmental Review. Such Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or
endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities. 

(m) Regulation M. Such Purchaser is aware that the anti-manipulation rules of Regulation M under the Exchange
Act may apply to sales of Common Stock and other activities with respect to the Common Stock by the Purchasers. 







 (n) Residency. Such Purchaser’s principal executive offices are in the
jurisdiction set forth immediately below such Purchaser’s name on the applicable signature page attached hereto. 

The Company and each of the Purchasers acknowledge and agree that no party to this Agreement has made or makes any representations or
warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Article III and the Transaction Documents. 
 ARTICLE 4 
 OTHER AGREEMENTS OF THE PARTIES 

4.1 Transfer Restrictions. 
 (a) Compliance with Laws. Notwithstanding any other provision of this Article 4, each Purchaser covenants that the Securities may be disposed of only pursuant to an effective registration
statement under, and in compliance with the requirements of, the Securities Act, or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, and in compliance with any
applicable state and federal securities laws. In connection with any transfer of the Securities other than (i) pursuant to an effective registration statement, (ii) to the Company, (iii) to an Affiliate of a Purchaser,
(iv) pursuant to Rule 144 (provided that the Purchaser provides the Company with reasonable assurances (in the form of seller and broker representation letters) that the securities may be sold pursuant to such rule) or
Rule 144A, (v) pursuant to Rule 144 without restriction following the applicable holding period or (vi) in connection with a bona fide pledge, the Company may require an opinion of counsel reasonably acceptable to the Company,
the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act (the reasonable fees of such counsel to
be borne by the Company). As a condition of any such transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of a Purchaser under this Agreement and the Registration Rights Agreement.

 (b) Legends. Certificates evidencing the Securities shall bear any legend as required by the “blue sky”
laws of any state and a restrictive legend in substantially the following form until such time as they are not required under Section 4.1(c) (and a stock transfer order may be placed against transfer of the certificates for the Securities
in violation of this Agreement): 
 THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT AS PROVIDED BY SECTION 4 OF THAT CERTAIN SECURITIES PURCHASE AGREEMENT, DATED
AS OF OCTOBER 13, 2010, BY AND AMONG WORLD HEART CORPORATION AND EACH PURCHASER IDENTIFIED ON THE SIGNATURE PAGES THERETO. 







 In addition, if any Purchaser is an Affiliate of the Company, certificates evidencing the
Securities issued to such Purchaser shall bear a customary “affiliates” legend. 
 (c) Removal of Legends.
The legend set forth in Section 4.1(b) above shall be removed and the Company shall issue a certificate without such legend or any other legend to the holder of the applicable Securities upon which it is stamped or issue the applicable
Securities without such a legend or any other legend to such holder by electronic delivery at the applicable balance account at DTC, if (i) such Securities are sold pursuant to an effective Registration Statement and the Purchaser has delivered
a signed and completed Purchaser’s Certificate of Subsequent Sale in substantially the form of Exhibit G attached hereto (the “Certificate of Sale” ) with respect to such Securities, (ii) such Securities
are sold or transferred pursuant to Rule 144 (if the transferor is not an Affiliate of the Company), or (iii) such Securities are eligible for sale under Rule 144 without restriction. Any fees (with respect to the Transfer Agent,
Company Counsel or otherwise) associated with the removal of such legend shall be borne by the Company. Following such time as a legend is no longer required for certain Securities, the Company will no later than three (3) Trading Days
following the delivery by a Purchaser to the Company or the Transfer Agent (with notice to the Company) of a legended certificate representing such Securities (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form
necessary to affect the reissuance and/or transfer), deliver or cause to be delivered to the transferee of such Purchaser or such Purchaser, as applicable, a certificate representing such Securities that is free from all restrictive and other
legends. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section 4.1. Certificates for Shares or Warrant Shares subject to legend
removal hereunder may be transmitted by the Transfer Agent to the Purchasers, as applicable, by crediting the account of the transferee’s Purchaser’s prime broker with DTC. If (1) a certificate representing the Shares or Warrant
Shares is not delivered to the Purchaser within three (3) Trading Days after receipt by the Company or the Transfer Agent of all documents necessary for the removal of the legend set forth above, including, but not limited to the signed and
completed Certificate of Sale and (2) prior to the time such certificate is received by the Purchaser, the Purchaser, or any third party on behalf of the Purchaser or for the Purchaser’s account, purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Purchaser of shares represented by such certificate (a “Buy-In”), then the Company shall pay in cash to the Purchaser (for costs incurred either
directly by such Purchaser or on behalf of a third party) the amount by which the total purchase price paid for Common Stock as a result of the Buy-In (including brokerage commissions, if any) exceeds the proceeds received by such Purchase as a
result of the sale to which such Buy-In relates. The Purchaser shall provide the Company written notice indicating the amounts payable to the Purchaser in respect of the Buy-In. 

(d) Irrevocable Transfer Agent Instructions. The Company shall issue irrevocable instructions to its Transfer Agent, and any
subsequent transfer agent, in the form of Exhibit D attached hereto (the “Irrevocable Transfer Agent Instructions”). The Company represents and warrants that no instruction other than the Irrevocable Transfer
Agent Instructions or instructions consistent therewith will be given by the Company to its transfer agent in connection with this Agreement, and that the Securities shall otherwise be freely transferable on the books and records of the Company as
and to the extent provided in this Agreement, the other Transaction Documents and applicable law. The Company acknowledges that a breach by it of its obligations under this Section 4.1(d) will cause irreparable harm to a Purchaser.
Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 4.1(d) will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this
Section 4.1(d), that a Purchaser shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss
and without any bond or other security being required. 







 (e) Acknowledgement. Each Purchaser hereunder acknowledges its primary
responsibilities under the Securities Act and accordingly will not sell or otherwise transfer the Warrants, Shares, the Warrant Shares or any interest therein without complying with the requirements of the Securities Act. While the Registration
Statement remains effective, each Purchaser hereunder may sell the Shares and Warrant Shares in accordance with the plan of distribution contained in the Registration Statement and, if it does so, it will comply therewith and with the related
prospectus delivery requirements unless an exemption therefrom is available. Each Purchaser, severally and not jointly with the other Purchasers, agrees that if it is notified by the Company in writing at any time that the Registration Statement
registering the resale of the Shares or the Warrant Shares is not effective or that the prospectus included in such Registration Statement no longer complies with the requirements of Section 10 of the Securities Act, the Purchaser will refrain
from selling such Shares and Warrant Shares until such time as the Purchaser is notified by the Company that such Registration Statement is effective or such prospectus is compliant with Section 10 of the Securities Act, unless such Purchaser
is able to, and does, sell such Shares or Warrant Shares pursuant to an available exemption from the registration requirements of Section 5 of the Securities Act. 
 4.2 Reservation of Common Stock. The Company shall take all action necessary to at all times have authorized, and reserved for the purpose of issuance from and after the Closing Date, no less
than the maximum number of shares of Common Stock issuable upon exercise of the Warrants issued at the Closing. On the Closing Date, the Company will notify the Transfer Agent of the reservation of the Warrant Shares as required by this
Section 4.2. 
 4.3 Furnishing of Information. In order to enable the Purchasers to sell the Securities under
Rule 144 of the Securities Act, for a period of one (1) year from the Closing Date, the Company shall use its commercially reasonable efforts to timely file (or obtain extensions in respect thereof and file within the applicable grace
period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. During such one (1) year period, if the Company is not required to file reports pursuant to such laws, it will prepare and furnish to
the Purchasers and make publicly available in accordance with Rule 144(c) such information as is required for the Purchasers to sell the Securities under Rule 144. 

4.4 Form D and Blue Sky. The Company agrees to timely file a Form D with respect to the Securities as required
under Regulation D and to provide a copy thereof to each Purchaser who requests a copy in writing promptly after such filing. The Company, on or before the Closing Date, shall take such action as the Company shall reasonably determine is
necessary in order to obtain an exemption for or to qualify the Securities for sale to the Purchasers at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain
an exemption from such qualification), and shall provide evidence of any such action so taken to the Purchasers who request in writing such evidence on or prior to the Closing Date. The Company shall make all filings and reports relating to the
offer and sale of the Securities required under applicable securities or “Blue Sky” laws of the states of the United States following the Closing Date. 







 4.5 No Integration. The Company shall not, and shall use its commercially
reasonable efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that will be integrated with
the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities to the Purchasers, or that will be integrated or aggregated with the offer or sale of the Securities for
purposes of the rules and regulations of any Trading Market such that it would require stockholder approval prior to the closing of such other transaction unless stockholder approval is obtained before the closing of such subsequent
transaction. 
 4.6 Listing of Securities. In the time and manner required by the Principal Trading Market, the
Company shall prepare and file with such Trading Market an additional shares listing application covering all of the Shares and Warrant Shares and shall use its commercially reasonable efforts to take all steps necessary to maintain, so long as any
other shares of Common Stock shall be so listed, such listing. 
 4.7 Use of Proceeds. The Company intends to use
the net proceeds from the sale of the Securities hereunder for working capital and general corporate purposes. 

4.8 Dispositions and Confidentiality After The Date Hereof. Each Purchaser covenants that neither it nor any Person acting on
its behalf or pursuant to any understanding with it will engage in any transactions in the Company’s securities (including, without limitation, any Short Sales involving the Company’s securities) during the period from the date hereof
until the earlier of such time as (i) the transactions contemplated by this Agreement are first publicly announced or (ii) this Agreement is terminated in full pursuant to Section 6.17. Notwithstanding the foregoing, in the case of a
Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s assets, the representation set forth above shall apply only with respect to the portion of assets managed by the portfolio managers that have knowledge about the financing transaction
contemplated by this Agreement. Each Purchaser understands and acknowledges, severally and not jointly with any other Purchaser, that the Commission currently takes the position that covering a short position established prior to effectiveness of a
resale registration statement with shares included in such registration statement would be a violation of Section 5 of the Securities Act, as set forth in Item 65, Section 5 under Section A, of the Manual of Publicly Available
Telephone Interpretations, dated July 1997, compiled by the Office of Chief Counsel, Division of Corporation Finance. 







  
 ARTICLE 5

 CONDITIONS PRECEDENT TO CLOSING 
 5.1 Conditions Precedent to the Obligations of the Purchasers to Purchase Securities at the Closing. The obligation of each Purchaser listed on Annex A hereto to acquire Securities at the
Closing is subject to the fulfillment to such Purchaser’s satisfaction, on or prior to the Closing Date, of each of the following conditions, any of which may be waived by such Purchaser (as to itself only): 

(a) Representations and Warranties. The representations and warranties of the Company contained herein shall be true and
correct in all material respects (except for those representations and warranties which are qualified as to materiality, in which case such representations and warranties shall be true and correct in all respects) as of the date of this Agreement
and as of the Closing Date, as though made on and as of the Closing Date, except for such representations and warranties that speak as of a specific date. 
 (b) Performance. The Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be
performed, satisfied or complied with by it at or prior to the Closing. 
 (c) No Injunction. No statute, rule,
regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Transaction Documents. 
 (d) Consents. The Company shall have obtained in a timely fashion any
and all consents, permits, approvals, registrations and waivers necessary for consummation of the purchase, sale and issuance of the Securities at the Closing (including all Required Approvals), all of which shall be and remain so long as necessary
in full force and effect. The Company shall have filed with the Principal Trading Market an additional shares listing application covering all of the Shares and the Warrants Shares. 

(e) No Suspensions of Trading in Common Stock; Listing. The Common Stock (i) shall be designated for quotation or listed
on the Principal Trading Market and (ii) shall not have been suspended, as of the Closing Date, by the Commission or the Principal Trading Market from trading on the Principal Trading Market. 

(f) Company Deliverables. The Company shall have delivered the Company Deliverables in accordance with
Section 2.2(a). 
 (g) Compliance Certificate. The Company shall have delivered to each Purchaser a
certificate, dated as of the Closing Date and signed by its Chief Executive Officer or its Chief Financial Officer, dated as of the Closing Date, certifying to the fulfillment of the conditions specified in Sections 5.1(a), (b) and
(d) in the form attached hereto as Exhibit F. 
 (h) Termination. This Agreement shall not have
been terminated as to any Purchaser in accordance with Section 6.17 herein, and the Company shall have received aggregate proceeds at the Closing of not less than Twenty-Five Million Dollars ($25,000,000). 

(i) Legal Opinion. The Purchasers shall have received an opinion of Company Counsel to the Company in a customary form
reasonably acceptable to the Purchasers. 







 5.2 Conditions Precedent to the Obligations of the Company to sell Securities at the
Closing. The Company’s obligation to sell and issue the Securities to each Purchaser listed on Annex A hereto at the Closing is subject to the fulfillment to the satisfaction of the Company on or prior to the Closing Date of the following
conditions, any of which may be waived by the Company: 
 (a) Representations and Warranties. The representations
and warranties made by such Purchaser in Section 3.2 hereof shall be true and correct in all material respects as of the date of this Agreement, and as of the Closing Date as though made on and as of the Closing Date, except for representations
and warranties that speak as of a specific date. 
 (b) Performance. Such Purchaser shall have performed, satisfied
and complied in all material respects with all covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by such Purchaser at or prior to the Closing Date. 

(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted,
entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents. 

(d) Consents. The Company shall have obtained in a timely fashion any and all consents, permits, approvals, registrations and
waivers necessary for consummation of the purchase and sale of the Securities, all of which shall be and remain so long as necessary in full force and effect, provided that the Company shall use best efforts to obtain in a timely fashion any and all
such consents, permits, approvals, registrations and waivers. 
 (e) Purchasers Deliverables. Such Purchaser shall
have delivered its Purchaser Deliverables in accordance with Section 2.2(b). 
 (f) Termination. This Agreement
shall not have been terminated as to such Purchaser in accordance with Section 6.17 herein. 
 ARTICLE 6

 MISCELLANEOUS 
 6.1 Fees and Expenses. Except as set forth in this Section 6.1, the Company and the Purchasers shall each pay the fees and expenses of their respective advisers, counsel, accountants and
other experts, if any, and all other expenses incurred by such party in connection with the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes
and duties levied. 
 6.2 Entire Agreement. The Transaction Documents, together with the Exhibits and Schedules
thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules. At or after the Closing, and without further consideration, the Company and the Purchasers will execute and deliver to the other such further documents as may be reasonably
requested in order to give practical effect to the intention of the parties under the Transaction Documents. 







  

6.3 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be
in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile (provided the sender receives a machine-generated confirmation of successful
transmission) at the facsimile number specified in this Section prior to 5:00 p.m., New York City time, on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section on a day that is not a Trading Day or later than 5:00 p.m., New York City time, on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service with next day delivery specified, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows:

  

			
	If to the Company:	  	 World Heart Corporation

4750 Wiley Post Way, Suite 120
 Salt Lake
City, UT 84116
 Telephone No.: (801) 303-4361
 Facsimile No.: (801) 355-7622
 Attention: Morgan R. Brown

		
	With a copy to:	  	 Cooley LLP
 3175 Hanover
Street
 Palo Alto, California 94304-1130

Telephone No.: (650) 843-5180
 Facsimile
No.: (650) 849-7400
 Attention: Mark Weeks

		
	If to a Purchaser:	  	To the address set forth under such Purchaser’s name on the signature page hereof;
		
		  	or such other address as may be designated in writing hereafter, in the same manner, by such Person.

 With a copy to: 
 6.4 Amendments; Waivers; No Additional
Consideration. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchasers holding or having the right to acquire a majority of the Shares and the
Warrant Shares on a fully-diluted basis at the time of such amendment or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement
of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any
right hereunder in any manner impair the exercise of any such right. No consideration shall be offered or paid to any Purchaser to amend or consent to a waiver or modification of any provision of any Transaction Document unless the same
consideration is also offered to all Purchasers who then hold Securities. 







  

6.5 Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be
deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any
party. This Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement or any of the
Transaction Documents. 
 6.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of
and be binding upon the parties and their successors and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by the Company without the prior written consent of the Purchasers. Any Purchaser may assign its
rights hereunder in whole or in part to any Person to whom such Purchaser assigns or transfers any Securities in compliance with the Transaction Documents and applicable law, provided such transferee shall agree in writing to be bound, with respect
to the transferred Securities, by the terms and conditions of this Agreement that apply to the “Purchasers”. 
 6.7 No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may
any provision hereof be enforced by, any other Person. 
 6.8 Governing Law. All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.
Each party agrees that all Proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective
Affiliates, employees or agents) shall be commenced exclusively in the New York Courts. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is
not personally subject to the jurisdiction of any such New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process
being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 







 6.9 Survival. The representations and warranties contained herein shall survive
the Closing and the delivery of the Securities for a period of one (1) year from the Closing Date. The agreements and covenants contained herein shall survive for the applicable statute of limitations. 

6.10 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile signature page were an original thereof. 

6.11 Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and
upon so agreeing, shall incorporate such substitute provision in this Agreement. 
 6.12 Replacement of Securities.
If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company and the Transfer Agent of such loss, theft or destruction and the execution by the holder thereof of a customary lost certificate
affidavit of that fact and an agreement to indemnify and hold harmless the Company and the Transfer Agent for any losses in connection therewith or, if required by the Transfer Agent, a bond in such form and amount as is required by the Transfer
Agent. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Securities. If a replacement certificate or instrument evidencing any
Securities is requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement. 

6.13 Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of
damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of
obligations described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation (other than in connection with any action for a temporary restraining order) the defense that a remedy at law
would be adequate. 







  
 6.14 Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such
enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, by a trustee,
receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 
 6.15 Adjustments in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable in shares of Common Stock (or other securities or rights
convertible into, or entitling the holder thereof to receive directly or indirectly shares of Common Stock), combination or other similar recapitalization or event occurring after the date hereof, each reference in any Transaction Document to a
number of shares or a price per share shall be deemed to be amended to appropriately account for such event. 

6.16 Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction
Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Transaction Document. The decision of each
Purchaser to purchase Securities pursuant to the Transaction Documents has been made by such Purchaser independently of any other Purchaser and independently of any information, materials, statements or opinions as to the business, affairs,
operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company which may have been made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no
Purchaser and any of its agents or employees shall have any liability to any other Purchaser (or any other Person) relating to or arising from any such information, materials, statement or opinions. Nothing contained herein or in any Transaction
Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way
acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making its
investment hereunder and that no Purchaser will be acting as agent of such Purchaser in connection with monitoring its investment in the Securities or enforcing its rights under the Transaction Documents. Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party
in any proceeding for such purpose. The Company acknowledges that each of the Purchasers has been provided with the same Transaction Documents for the purpose of closing a transaction with multiple Purchasers and not because it was required or
requested to do so by any Purchaser. The Company’s obligations to each Purchaser under this Agreement are identical to its obligations to each other Purchaser other than such differences resulting solely from the number of Securities purchased
by such Purchaser, but regardless of whether such obligations are memorialized herein or in another agreement between the Company and a Purchaser. 







  

6.17 Termination. This Agreement may be terminated and the sale and purchase of the Shares and the Warrants abandoned at any
time prior to the Closing by either the Company or any Purchaser listed on Annex A hereto (with respect to itself only), upon written notice to the other, if the Closing has not been consummated on or prior to 5:00 p.m., New York City time, on
the Outside Date; provided, however, that the right to terminate this Agreement under this Section 6.17 shall not be available to any Person whose failure to comply with its obligations under this Agreement has been the cause of or
resulted in the failure of the Closing to occur on or before such time. Nothing in this Section 6.17 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or the other
Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents. In the event of a termination pursuant to this Section, the
Company shall promptly notify all non-terminating Purchasers. Upon a termination in accordance with this Section, the Company and the terminating Purchaser(s) shall not have any further obligation or liability (including arising from such
termination) to the other, and no Purchaser will have any liability to any other Purchaser under the Transaction Documents as a result therefrom. 
 6.18 Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any
Purchaser exercises a right, election, demand or option owed to such Purchaser by the Company under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then, prior to the
performance by the Company of the Company’s related obligation, such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part
without prejudice to its future actions and rights. 
 6.19 Conflict Waiver. Each party to this
Agreement acknowledges that Cooley LLP (“Cooley”), outside general counsel to the Company, has in the past performed and is or may now or in the future represent one or more Purchasers or their affiliates in matters unrelated
to the transactions contemplated by this Agreement (the “Financing”), including representation of such Purchasers or their affiliates in matters of a similar nature to the Financing. The applicable rules of
professional conduct require that Cooley inform the parties hereunder of this representation and obtain their consent. Cooley has served as outside general counsel to the Company and has negotiated the terms of the Financing solely on behalf of
the Company. The Company and each Purchaser hereby (a) acknowledge that they have had an opportunity to ask for and have obtained information relevant to such representation, including disclosure of the reasonably foreseeable adverse
consequences of such representation; (b) acknowledge that with respect to the Financing, Cooley has represented solely the Company, and not any Purchaser or any stockholder, director or employee of the Company or any Purchaser; and
(c) gives its informed consent to Cooley’s representation of the Company in the Financing. 







  
 IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above. 

 

			
	WORLD HEART CORPORATION
		
	By:	 	 /s/ Morgan R. Brown

	Name:	 	Morgan R. Brown
	Title:	 	Chief Financial Officer









  
 
			
	 NAME OF PURCHASER: Austin Marxe

		
	 By:
	 	 /s/ Austin Marxe

	 Name: Austin Marxe

	
	 Aggregate Purchase Price (Subscription Amount):
 $999,999.84

	
	 Number of Shares to be Acquired: 468,384

	
	 Underlying Shares Subject to Warrants: 468,384
(the number of Shares to
be acquired)

	
	 Tax ID No.:
                

	
	 Address for Notice:

	
	 Special Situations Fund III QP, L.P.

	 527 Madison Avenue, Suite 2600

	 New York, New York 10022

	
	 Telephone No.: 212-319-6670

	
	 Email: Austin@ssf.com

	
	 Attention: Austin Marxe / Marianne Kelly




 

			
	
	 Delivery Instructions:

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	 NAME OF PURCHASER: David Greenhouse

		
	 By:
	 	 /s/ David Greenhouse

	 Name: David Greenhouse

	
	 Aggregate Purchase Price (Subscription Amount):
 $256,200

	
	 Number of Shares to be Acquired: 120,000

	
	 Underlying Shares Subject to Warrants: 120,000
(the number of Shares to
be acquired)

	
	 Tax ID No.:             

	
	 Address for Notice:

	
	 c/o Special Situations Funds

	 527 Madison Avenue, Suite 2600

	 New York, New York 10022

	
	 Telephone No.: 212-319-6625

	
	 Email: david@ssffund.com

	
	 Attention: David Greenhouse




 

			
	
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NAME OF PURCHASER:   Special Situations Fund III OP , L.P.

		
	 By:
	 	 /s/ David Greenhouse

	 Name: David Greenhouse

	 Title: Managing Director

	
	 Aggregate Purchase Price (Subscription Amount):
 $1,160,001.01

	
	 Number of Shares to be Acquired: 543,326

	
	 Underlying Shares Subject to Warrants: 543,326
(the number of Shares to
be acquired)

	
	 Tax ID No.: 13-3737427

	
	 Address for Notice:

	
	 527 Madison Avenue, Suite 2600

	 New York, New York 10022

	
	 Telephone No.: 212-319-6625

	
	 Email: Marianne@ssf.com

	
	 Attention: David Greenhouse / Marianne Kelly




 

			
	
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NAME OF PURCHASER:    Special Situations Cayman Fund, L.P.

		
	 By:
	 	 /s/ David Greenhouse

	 Name: David Greenhouse

	 Title: Managing Director

	
	 Aggregate Purchase Price (Subscription Amount):
 $419,999.34

	
	Number of Shares to be Acquired: 196,721
	
	 Underlying Shares Subject to Warrants: 196,721
(the number of Shares to be acquired)

	
	Tax ID No.: 98-0132442
	
	Address for Notice:
	
	527 Madison Avenue, Suite 2600
	New York, New York 10022
	
	Telephone No.: 212-319-6625
	
	Email: Marianne@ssf.com
	
	Attention: David Greenhouse / Marianne Kelly



			
	
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	NAME OF PURCHASER:	 	Special Situations Private Equity Fund, L.P.



			
		
	By:	 	 /s/ David Greenhouse

	Name: David Greenhouse
	Title: Managing Director
	
	Aggregate Purchase Price (Subscription Amount):
	$419,999.34
	
	Number of Shares to be Acquired: 196,721
	
	 Underlying Shares Subject to Warrants: 196,721
(the number of Shares to be acquired)

	
	Tax ID No.: 13-3916551
	
	Address for Notice:
	
	527 Madison Avenue, Suite 2600
	New York, New York 10022
	
	Telephone No.: 212-319-6625
	
	Email: Marianne@ssf.com
	
	Attention: David Greenhouse / Marianne Kelly


  

			
	
	(if different than above)


			
		
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	NAME OF PURCHASER: Special Situations Life Sciences Fund,
L.P.



			
		
	By:	 	 /s/ David
Greenhouse




			
	Name:	 	David Greenhouse
	Title:	 	Managing Director
	
	 Aggregate Purchase Price (Subscription Amount):
 $1,999,796.86

	
	Number of Shares to be Acquired: 936,673
	
	 Underlying Shares Subject to Warrants: 936,673
(the number of Shares to be acquired)

	
	Tax ID No.: 56-2514790
	
	Address for Notice:
	
	 527 Madison Avenue, Suite 2600
 New York, New York 10022

	
	Telephone No.: 212-319-6625
	
	Email: Marianne@ssf.com
	
	Attention: David Greenhouse / Marianne Kelly


  

			
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	NAME OF PURCHASER:	 	VENROCK ASSOCIATES V, L.P.
		 		 	By: Venrock Management V, LLC
		 		 	Its: General Partner
		
	By:	 	 /s/ David L. Stepp

	Name:  David L. Stepp
	Title:  Authorized Signatory
	
	 Aggregate Purchase Price (Subscription Amount):
 $4,060,349.41

	
	Number of Shares to be Acquired: 1,901,803
	
	Underlying Shares Subject to Warrants: 1,901,803
  (the number of Shares to be acquired)
		
	Tax ID No: 41-2236453	 	
		
	Address for Notice:	 	
		
	c/o David L. Stepp	 	
	3340 HIllview Avenue	 	
	Palo Alto, CA 94304	 	
	
	Telephone No.: 650-561-9580
		
	Fax: 650-561-9180	 	
	
	Email: dstepp@venrock.com
		
	Attention: David L. Stepp	 	


  

			
	
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	Street:	 	  



			
		
	City/State/Zip:	 	  



			
		
	Attention:	 	  









  
 
			
	NAME OF PURCHASER: VENROCK PARTNERS V, L.P.
		 	                              
      By: Venrock Management V, LLC
		 	                              
      Its: General Partner
		
	By:	 	 /s/ David L. Stepp

	Name:	 	David L. Stepp
	Title:	 	Authorized Signatory
	
	 Aggregate Purchase Price (Subscription Amount):
 $344,249.54

	
	Number of Shares to be Acquired: 161,241
	
	 Underlying Shares Subject to Warrants: 161,241
(the number of Shares to be acquired)

	
	Tax ID No. 20-8536996
	
	Address for Notice:
	
	c/o David L. Stepp
	3340 HIllview Avenue
	Palo Alto, CA 94304
	
	Telephone No.: 650-561-9580
	
	Fax: 650-561-9180
	
	Email: dstepp@venrock.com
	
	Attention: David L. Stepp


  

			
	 Delivery Instructions:
 (if different than above)

		
	c/o	 	  

		
	Street:	 	  



			
		
	City/State/Zip:	 	  



			
		
	Attention:	 	  









  
 
									
	NAME OF PURCHASER:	 	 VENROCK ENTREPRENEURS FUND
  V, L.P.

		 		 		 	 By: VEF Management V, LLC
		 		 		 	 Its: General Partner
		
	By:	 	 /s/ David L. Stepp

	Name:	 	David L. Stepp
	Title:	 	Authorized Signatory
	
	Aggregate Purchase Price (Subscription Amount):
	$95,400.34	 	
	
	Number of Shares to be Acquired: 44,684
	
	Underlying Shares Subject to Warrants: 44,684
	    (the number of Shares to be acquired)
	
	Tax ID No: 20-8536980
	
	Address for Notice:
	
	c/o David L. Stepp
	3340 HIllview Avenue
	Palo Alto, CA 94304
	
	Telephone No.: 650-561-9580
	
	Fax: 650-561-9180
	
	Email: dstepp@venrock.com
	
	Attention: David L. Stepp


  


							
	Delivery Instructions:
	(if different than above)
		
	c/o	 	  



							
		
	Street:	 	  



							
		
	City/State/Zip:	 	  



							
		
	Attention:	 	  









  
 
			
	NAME OF PURCHASER: NEW LEAF VENTURES II, L.P.
		
	By:	 	New Leaf Venture Associates II, L.P.
	Its:	 	General Partner
		
	By:	 	New Leaf Venture Management II, L.L.C.
	Its:	 	General Partner
		
	By:	 	 /s/ Craig L.
Slutzkin




			
	Name:	 	Craig L. Slutzkin
	Title:	 	Chief Financial Officer
	
	Aggregate Purchase Price (Subscription Amount): $4,999,999.20
	
	Number of Shares to be Acquired: 2,341,920
	
	 Underlying Shares Subject to Warrants: 2,341,920
(the number of Shares to be acquired)

	
	Tax ID No.: _32-0214549
	
	Address for Notice:
	
	7 Times Square, Suite 3502
	
	New York, NY 10036
	
	Attention: Craig L. Slutzkin
	
	Telephone No.: 646-871-6400
	
	Email: craig@nlvpartners.com


  

			
	 Delivery Instructions:
 (if different than above)

		
	c/o	 	  



			
		
	Street:	 	  



			
		
	City/State/Zip:	 	  



			
		
	Attention:	 	  



			
		
	Telephone No.:	 	  









  
 
			
	 NAME OF PURCHASER:  Oppenheim Asset Management

                         
                      Services S.ar.l. on behalf of
                                   
             FCPOP Medical BioHe@lth-Trends

		
	By:	 	 /s/ Julia Brauckmann

		 	Julia Brauckmann
		 	Title: Vice President
		
	By:	 	 /s/ Helene Braun

		 	Helene Braun
		 	Title: Senior Assoicate
	
	Aggregate Purchase Price (Subscription Amount):
	$749,854.70
	
	Number of Shares to be Acquired: 351,220
	
	 Underlying Shares Subject to Warrants: 351,220
(the number of Shares to be acquired)

	
	Tax ID No.: LU20197837
	
	Address for Notice:
	
	 Oppenheim Asset Management Services S.ar.l.
 4 rue Jean Monnet

	L-2180 Luxembourg
	
	Telephone No.: 00352 22 15 22 1
	
	Email: OPAMPre-Trade-KontrolleIM@oppenheim.lu
	
	Attention: Investment Management



 

			
	 Delivery Instructions:
 (if different than above)

	
	c/o Brown Brothers Harriman (Luxembourg) S.C.A.
	Street: 2-8 Avenue Charles de Gaulle
	City/State/Zip: B.P. 403; L-2014 Luxembourg
	Attention: Linda Tessin
	Telephone No.: 00352 474 066 6665








  
 
			
	 NAME OF PURCHASER: THE OSGOOD FAMILY

	
                   
                           TRUST UAD 4/14/2000

		
	 By:	 	 /s/ Richard H.
Osgood




			
	Name:	 	Richard H. Osgood
	Title:	 	Richard H. Osgood, Trustee
	
	 Aggregate Purchase Price (Subscription Amount):

	 $99,918.00

	
	 Number of Shares to be Acquired: 46,800

	
	 Underlying Shares Subject to Warrants: 46,800

  (the number of Shares to be acquired)

	
	 Tax ID No.: ###-##-####

	
	 Address for Notice:

	
	 One Bush Street #1700

	 San Francisco, CA 94104

	
	 Telephone No.: 415-274-6833

	
	 Email: rick.osgood@wedbush.com

	
	 Attention: Vinnie Devone




 

			
	 Delivery Instructions:

	 (if different than above)



			
		
	 c/o
	 	  



			
		
	 Street:
	 	  



			
		
	 City/State/Zip:
	 	  



			
		
	 Attention:
	 	  



			
		
	 Telephone No.:
	 	  









  
 
			
	NAME OF PURCHASER:     Zeke, LP
		
	By:	 	 /s/ Edward N.
Antoian




			
	Name:	 	Edward N. Antoian



			
	Title:	 	Zeke, LP-6P
	
	Aggregate Purchase Price (Subscription Amount):
	$500,017.00
	
	Number of Shares to be Acquired: 234,200
	
	Underlying Shares Subject to Warrants: 234,200
	    (the number of Shares to be acquired)
	
	Tax ID No.: 23-2910350
	
	Address for Notice:
	
	c/o Chartwell Inv. Partners
	1235 Westlakes Drive, Ste 400
	Berwyn, PA 19312
	
	Telephone No.: 610-407-4829
	
	Email: antoian@chartwellip.com
	
	Attention: Ed Antoian


  

			
	
	 Delivery Instructions:

(if different than above)



			
		
	c/o	 	
 



			
		
	 Street:
	 	
 



			
		
	 City/State/Zip:
	 	
 



			
		
	 Attention:
	 	
 



			
		
	 Telephone No.:
	 	  









  
 
			
	NAME OF PURCHASER: Medical Strategy GmbH for Pharma/Whealth Management Company S.A. on behalf of Pharma/wHealth
		
	By:	 	 /s/ Harold Schwartz

	Name:	 	      Harold Schwartz
	Title:	 	      General Manager
		
	By:	 	 /s/ Stefan Kraft

	Name:	 	      Stefan Kraft
	Title:	 	      Analyst
	
	Aggregate Purchase Price (Subscription Amount):
	$149,983.75
	
	Number of Shares to be Acquired: 70,250
	
	Underlying Shares Subject to Warrants: 70,250
	    (the number of Shares to be acquired)
	
	Tax ID No.: LU21822485
	
	Address for Notice:
	
	Pharma/Whealth Management Company S.A.
	4 rue Jean Monnet
	L-2180 Luxembourg
	
	Telephone No.: 00352 22 15 22 1
	
	Email: OPAMPre-Trade-KontrolleIM@oppenheim.lu
	
	Attention:    Investment Management



 

	
	Delivery Instructions:
	(if different than above)
	
	c/o Brown Brothers Harriman (Luxembourg) S.C.A.
	Street:    2-8 Avenue Charles de Gaulle
	City/State/Zip:    B.P. 403; L-2014 Luxembourg
	Attention:    Linda Tessin
	Telephone No.:    00352 474 066 6665








  
 
			
	NAME OF PURCHASER: Arthur J. Remillard Jr. Trust
		
	 By:
	 	 /s/ Stephen Du
Bois




			
	 Name:
	 	 Stephen Du Bois
	 Title:
	 	 Managing Member of Investment Manager
	
	Aggregate Purchase Price (Subscription Amount):
	$211,051.16
	  
 Number of Shares to be Acquired:
98,853

	  
 Underlying Shares Subject to Warrants:
98,853

	    (the number of Shares to be acquired)
	  
 Tax ID No.:
                    

	  
 Address for Notice:

	
	101 Huntington Avenue
	Suite 2550
	Boston, MA 02199
	  
 Telephone No.: 617-717-6605

	  
 Email:
sgeorge@cambercapital.com

	  
 Attention: Sean
George



  

			
	Delivery Instructions:	 	
	 (if different than above)
  

c/o Goldman Sachs
	 	
	Street: 30 Hudson Street, 4rth Floor	 	
	City/State/Zip: Jersey City, NJ	 	
	Attention: Diti Patel	 	
	Telephone No.: 212-934-3933	 	








  
 
			
	NAME OF PURCHASER: Ayer Capital Partners Master Fund, L.P.
		
	 By:
	 	 /s/ Jay
Venkatesan




			
	 Name:
	 	Jay Venkatesan
	 Title:
	 	Managing Member
	
	Aggregate Purchase Price (Subscription Amount): $1,772,538.92
	
	Number of Shares to be Acquired: 830,229
	
	Underlying Shares Subject to Warrants: 830,229
	    (the number of Shares to be acquired)
	
	Tax ID No.: 98-058-0035
	
	Address for Notice:
	230 California Street
	Suite 600
	San Francisco, CA 94111
	
	Telephone No.: 415-874-4800
	
	Facsimile No.: 415-520-6826
	
	Email: tmg@ayercapital.com
	
	Attention: Tom Glaser


  

	
	Delivery Instructions:
	 (if different than above)

	
	 c/o Morgan Stanley

	 Street: 901 South Bond Street

	 City/State/Zip: Baltimore, MD 21231

	 Attention: Alicia Alvez/ Deborah Mullin

	 Telephone No.: 410-534-1582









  
 
			
	NAME OF PURCHASER: Ayer Capital Partners Kestrel Fund, LP
		
	By:	 	 /s/ Jay
Venkatesan




			
	Name:	 	Jay Venkatesan
	Title:	 	Managing Member
	
	 Aggregate Purchase Price (Subscription Amount):
 $60,819.75

	
	Number of Shares to be Acquired: 28,487
	
	Underlying Shares Subject to Warrants: 28,487
	    (the number of Shares to be acquired)
	
	Tax ID No.: 98-058-0035
	
	Address for Notice:
	230 California Street
	Suite 600
	San Francisco, CA 94111
	
	Telephone No.: 415-874-4800
	
	Facsimile No.: 415-520-6826
	
	Email: tmg@ayercapital.com
	
	Attention: Tom Glaser


  

	
	 Delivery Instructions:
 (if
different than above)

	
	 c/o Morgan Stanley

	 Street: 901 South Bond Street

	 City/State/Zip: Baltimore, MD 21231

	 Attention: Alicia Alvez/ Deborah Mullin

	 Telephone No.: 410-534-1582









  
 
			
	NAME OF PURCHASER: Camber Capital Fund II, LP
		
	By:	 	 /s/ Stephen Du
Bois




			
	Name:	 	Stephen Du Bois
	Title:	 	Managing Member of Investment Manager
	
	 Aggregate Purchase Price (Subscription Amount):
 $80,150.04

	
	Number of Shares to be Acquired: 37,541
	
	Underlying Shares Subject to Warrants: 37,541
	    (the number of Shares to be acquired)
	
	Tax ID No.: 26-3439761
	
	Address for Notice:
	
	101 Huntington Avenue
	Suite 2550
	Boston, MA 02199
	
	Telephone No.: 617-717-6605
	
	Email: sgeorge@cambercapital.com
	
	Attention: Sean George


  

	
	 Delivery Instructions:

(if different than above)

	
	 c/o Goldman Sachs

	 Street: 30 Hudson Street, 4rth Floor

	 City/State/Zip: Jersey City, NJ

	 Attention: Diti Patel

	 Telephone No.: 212-934-3933









  
 
			
	NAME OF PURCHASER: Camber Capital Master Fund, LP



			
		
	By:	 	/s/ Stephen Du Bois



			
	Name:	 	Stephen Du Bois
	Title:	 	Managing Member of Investment Manager



			
	
	Aggregate Purchase Price (Subscription Amount):
	$3,208,800.39
	
	Number of Shares to be Acquired: 1,502,951
	
	Underlying Shares Subject to Warrants: 1,502,951
	    (the number of Shares to be acquired)
	
	Tax ID No.: 98-0602379
	
	Address for Notice:
	
	101 Huntington Avenue
	Suite 2550
	Boston, MA 02199
	
	Telephone No.: 617-717-6605
	
	Email: sgeorge@cambercapital.com
	
	Attention: Sean George


  

			
	 Delivery Instructions:

(if different than above)
  
	 	
	 c/o Goldman Sachs
	 	
	 Street: 30 Hudson Street, 4rth Floor
	 	
	 City/State/Zip: Jersey City, NJ
	 	
	 Attention: Diti Patel
	 	
	 Telephone No.: 212-934-3933
	 	








  
 
			
	NAME OF PURCHASER: Cougar Trading, LLC
		
	By:	 	 /s/ Carl J. Bennett

	Name:	 	     Carl J. Bennett
	Title:	 	     Chief Financial Officer
	
	Aggregate Purchase Price (Subscription Amount):
	$99,918.00
	
	Number of Shares to be Acquired: 46,800
	
	Underlying Shares Subject to Warrants: 46,800
	    (the number of Shares to be acquired)
	
	Tax ID No.: 26-0040893
	
	Address for Notice:
	
	1370 Avenue of the Americas
	30th Floor
	New York, NY 10019
	
	Telephone No.: 212-702-0693
	
	Email: cbennett@cougartrading.com
	
	Attention:    Carl J. Bennett


  

			
	 Delivery Instructions:
 (if different than above)

		
	c/o	 	  



			
		
	Street:	 	  



			
		
	City/State/Zip:	 	  



			
		
	Attention:	 	  



			
		
	Telephone No.:	 	  









  
 
			
	NAME OF PURCHASER: Cranshire Capital LP
		
	By:  	 	 /s/ Keith A.
Goodman




			
	Name:	 	  Keith A. Goodman
	Title:	 	  COO, Downsview Capital Inc., The General   Partner
	
	Aggregate Purchase Price (Subscription Amount):
	$95,001.10
	
	Number of Shares to be Acquired: 44,497
	
	Underlying Shares Subject to Warrants: 44,497
	    (the number of Shares to be acquired)
	
	Tax ID No.:
	
	Address for Notice:
	
	Cranshire Capital LP
	3100 Dundee Road, Ste 703
	Northbrook, IL 60062
	
	Telephone No.: 847-562-9030
	
	 Email:mkopin@cranshirecapital.com /
 kgoodman@cranshirecapital.com

	
	Attention: Mitchell Kopin


  

			
	 Delivery Instructions:
 (if different than above)

		
	c/o	 	  



			
		
	Street:	 	  



			
		
	City/State/Zip:	 	  



			
		
	Attention:	 	  



			
		
	Telephone No.:	 	  









  
 
			
	NAME OF PURCHASER: DAFNA LifeScience Ltd
		
	By:	 	 /s/  Nathan
Fischel




			
	Name:	 	 Nathan Fischel
	Title:	 	 Managing Member
	
	Aggregate Purchase Price (Subscription Amount): $99,999.13
	
	Number of Shares to be Acquired: 46,838
	
	 Underlying Shares Subject to Warrants: 46,838
     (the number of Shares to be acquired)

	
	Tax ID No.: 98-0357042
	
	Address for Notice:
	
	10990 Wilshire Blvd., #1400
	Los Angeles, CA 90024
	
	Telephone No.: 310-954-3200
	
	Email: dfische@dafnacapital.com
	
	Attention: David Fischel



			
	
	 Delivery Instructions:

(if different than above)

		
	 c/o
	 	  



			
		
	 Street:
	 	  



			
		
	 City/State/Zip:
	 	  



			
		
	 Attention:
	 	  



			
		
	 Telephone No.:
	 	  









  
 
			
	NAME OF PURCHASER: DAFNA LifeScience Select Ltd
		
	By:  	 	 /s/ Nathan
Fischel




			
	Name:	 	  Nathan Fischel
	Title:	 	  Managing Member
	
	Aggregate Purchase Price (Subscription Amount):
	$228,000.92
	
	Number of Shares to be Acquired: 106,792
	
	Underlying Shares Subject to Warrants: 106,792
	    (the number of Shares to be acquired)
	
	Tax ID No.: 20-0522253
	
	Address for Notice:
	
	10990 Wilshire Blvd., #1400
	Los Angeles, CA 90024
	
	Telephone No.: 310-954-3200
	
	Email: dfische@dafnacapital.com
	
	Attention: David Fischel


  

			
	 Delivery Instructions:
 (if different than above)

		
	c/o	 	  



			
		
	Street:	 	  



			
		
	City/State/Zip:	 	  



			
		
	Attention:	 	  



			
		
	Telephone No.:	 	  









  
 
			
	NAME OF PURCHASER: DAFNA LifeScience Market Neutral Ltd
		
	By:	 	 /s/ Nathan
Fischel




			
	Name:	 	Nathan Fischel
	Title:	 	Managing Member
	
	 Aggregate Purchase Price (Subscription Amount):
 $72,000.74

	
	Number of Shares to be Acquired: 33,724
	
	 Underlying Shares Subject to Warrants: 33,724
     (the number of Shares to be acquired)

	
	Tax ID No.: 98-0392547
	
	Address for Notice:
	
	10990 Wilshire Blvd., #1400
	Los Angeles, CA 90024
	
	Telephone No.: 310-954-3200
	
	Email: dfische@dafnacapital.com
	
	Attention: David Fischel


  

			
	 Delivery Instructions:

(if different than above)



			
		
	 c/o
	 	  



			
		
	 Street:
	 	  



			
		
	 City/State/Zip:
	 	  



			
		
	 Attention:
	 	  



			
		
	 Telephone No.:
	 	  









  
 
			
	
NAME OF PURCHASER: Deerfield Special Situations Fund LP

		
	By:	 	/s/ James Flynn
	Name:   James Flynn
	Title:     General Partner
	
	 Aggregate Purchase Price (Subscription Amount):

	 $576,001.65

	
	 Number of Shares to be Acquired: 269,790

	
	 Underlying Shares Subject to Warrants: 269,790

	     (the number of Shares to be acquired)

	
	 Tax ID No.: 20-3665010

	
	 Address for Notice:

	
	 780 3rd Avenue, 37th Floor

	 New York NY 10017

	
	 Telephone No.: 212-551-1600

	
	 Email: dlevine@deerfieldpartners.com

	
	 Attention: Darren Levine




 

			
	 Delivery Instructions:

(if different than above)



			
		
	 c/o  
	 	 


			
		
	 Street:  
	 	 


			
		
	 City/State/Zip:  
	 	 


			
		
	 Attention:  
	 	 


			
		
	 Telephone No.:  
	 	 








  
 
			
	NAME OF PURCHASER: Deerfield Special Situations Fund International, LTD
		
	By:	 	 /s/ James Flynn

	Name:	 	     James Flynn
	Title:	 	     General Partner
	
	Aggregate Purchase Price (Subscription Amount):
	$924,000.25
	
	Number of Shares to be Acquired: 432,787
	
	 Underlying Shares Subject to Warrants: 432,787
     (the number of Shares to be acquired)

	
	Tax ID No.: n/a
	
	Address for Notice:
	
	780 3rd Avenue, 37th
Floor
	New York NY 10017
	
	Telephone No.: 212-551-1600
	
	Email: dlevine@deerfieldpartners.com
	
	Attention: Darren Levine


  

			
	 Delivery Instructions:

(if different than above)



			
		
	 c/o  
	 	 


			
		
	 Street:  
	 	 


			
		
	 City/State/Zip:  
	 	 


			
		
	 Attention:  
	 	 


			
		
	 Telephone No.:  
	 	 








  
 
			
	NAME OF PURCHASER: Hartz Capital Investments, LLC
	
	By: Empery Asset Management, LP, it’s authorized agent
		
	By:	 	 /s/ Ryan Lane

	Name:	 	     Ryan Lane
	Title:	 	     Managing Partner of the GP
	
	Aggregate Purchase Price (Subscription Amount):
	$118,515.99
	
	Number of Shares to be Acquired: 55,511
	
	Underlying Shares Subject to Warrants: 55,511
	    (the number of Shares to be acquired)
	
	Tax ID No.: 26-1474239
	
	Address for Notice:
	
	120 Broadway, Suite 1019
	New York NY 10271
	
	Telephone No.: 212-608-3300
	
	Email: notices@emperyam.com
	
	Attention: Ryan Lane


  

			
	 Delivery Instructions:
 (if different than above)



			
		
	c/o	 	  



			
		
	Street:	 	  



			
		
	City/State/Zip:	 	  



			
		
	Attention:	 	  



			
		
	Telephone No.:	 	  









  
 
			
	 NAME OF PURCHASER: Empery Asset Master, LTD

	
	 By: Empery Asset Management, LP, it’s authorized agent

		
	By:	 	 /s/ Ryan Lane

	Name:	 	     Ryan Lane
	 Title:
	 	     Managing Partner of the GP
	
	 Aggregate Purchase Price (Subscription Amount):
 $118,513.85

	
	Number of Shares to be Acquired: 55,510
	
	 Underlying Shares Subject to Warrants: 55,510
     (the number of Shares to be acquired)

	
	Tax ID No.: 98-0571318
	
	Address for Notice:
	
	 120 Broadway, Suite 1019
 New York NY 10271

	
	Telephone No.: 212-608-3300
	
	Email: notices@emperyam.com
	
	Attention: Ryan Lane


  

			
	 Delivery Instructions:

(if different than above)

		
	 c/o  
	 	  



			
		
	 Street:
	 	  



			
		
	 City/State/Zip:
	 	  



			
		
	 Attention:
	 	  



			
		
	 Telephone No.:
	 	  









  
 
					
	NAME OF PURCHASER:  Epworth-Ayer Capital
		
	By:	 	/s/ Jay Venkatesan
	Name:	 		 	    Jay Venkatesan
	Title:	 		 	    Managing Member
	
	Aggregate Purchase Price (Subscription Amount):
	$166,645.29
	
	Number of Shares to be Acquired: 78,054
	
	Underlying Shares Subject to Warrants: 78,054
	    (the number of Shares to be acquired)
	
	Tax ID No.: 98-058-5921
	
	Address for Notice:
	
	230 California Street
	Suite 600
	San Francisco, CA 94111
	
	Telephone No.: 415-874-4800
	
	Facsimile No.: 415-520-6826
	
	Email: tmg@ayercapital.com
	
	Attention: Tom Glaser


  

	
	 Delivery Instructions:

(if different than above)

	
	c/o Morgan Stanley
	Street: 901 South Bond Street
	City/State/Zip: Baltimore, MD 21231
	Attention: Alicia Alvez/ Deborah Mullin
	Telephone No.: 410-534-1582








  
 
					
	NAME OF PURCHASER: Freestone Advantage Partners, LP
		
	By:	 	 /s/ Keith A. Goodman

	Name:	 		 	    Keith A. Goodman
	Title:	 		 	    COO, Downsview Capital Inc., The General Partner
	
	 Aggregate Purchase Price (Subscription Amount):
 $5,000.17

	
	Number of Shares to be Acquired: 2,342
	
	Underlying Shares Subject to Warrants: 2,342
	    (the number of Shares to be acquired)
	
	Tax ID No.:
	
	Address for Notice:
	
	c/o Downsview Capital, Inc.
	3100 Dundee Road, Ste 703
	Northbrook, IL 60062
	
	Telephone No.: 847-562-9030
	
	Email:mkopin@cranshirecapital.com / kgoodman@cranshirecapital.com
	
	Attention: Mitchell Kopin



			
	 Delivery Instructions:
 (if different than above)



			
		
	 c/o
	 	
 



			
		
	 Street:
	 	
 



			
		
	 City/State/Zip:
	 	
 



			
		
	 Attention:
	 	
 



			
		
	 Telephone No.:
	 	  









  
 
			
	NAME OF PURCHASER: IPConcept Fund Management S.A., an administration company according to Luxembourg Law, acting in its own name but on behalf of Apo Medical
Opportunities – Medical Strategy (“ICP”)
		
	By:	 	 /s/ Matthias Schirpke

	Name:	 	     Matthias Schirpke
	Title:	 	     CEO
		
	By:	 	 /s/ Marco Onischschenko

	Name:	 	     Marco Onischschenko
	Title:	 	     Proxy
	
	Aggregate Purchase Price (Subscription Amount):
	$99,982.05
	
	Number of Shares to be Acquired: 46,830
	
	Underlying Shares Subject to Warrants: 46,830
	    (the number of Shares to be acquired)
	
	Tax ID No.:
	
	Address for Notice:
	
	4, rue Thomas-Edison
	L-1445 Luxembourg
	
	Telephone No.: 352-2602-484950
	
	Email: amc@ipconcept.lu
	
	Attention: Mr. Matthias Schirpke


  

	
	 Delivery Instructions:
 (if
different than above)

	
	c/o DZ PRIVATBANK S.A.
	
	Street: 4, rue Thomas-Edison
	City/State/Zip: L-1445 Luxembourg
	Attention: EFFEKTENKASSE
	
	Telephone No.: 352- 44903 4630








  
 
					
	NAME OF PURCHASER: Iroquois Master Fund Ltd.
		
	By:	 	 /s/ Joshua Silverman

		 	Name:	 	Joshua Silverman
		 	Title:	 	Authorized Signer
	
	 Aggregate Purchase Price (Subscription Amount):

	$100,001.27
	
	Number of Shares to be Acquired: 46,839
	
	Underlying Shares Subject to Warrants: 46,839
	    (the number of Shares to be acquired)
	
	Tax ID No.: 98-0445485
	
	Address for Notice:
	
	641 Lexington Avenue, 26th Floor
	
	New York, NY 10022
	
	Telephone No.: 212-924-3070
	
	Email: jsilvermant@icfund.com
	
	Attention: Josh Silverman


  

			
	 Delivery Instructions:
 (if different than above)



			
		
	 c/o
	 	
 



			
		
	 Street:
	 	
 



			
		
	 City/State/Zip:
	 	
 



			
		
	 Attention:
	 	
 



			
		
	 Telephone No.:
	 	  









  
 
			
	NAME OF PURCHASER: Jalu Capital Partners LP
		
	By:	 	 /s/ Mark Fain

		 	Name: Mark Fain
		 	Title: Managing Partner
	
	 Aggregate Purchase Price (Subscription Amount):
 $99,918.00

	
	Number of Shares to be Acquired: 46,800
	
	Underlying Shares Subject to Warrants: 46,800
	    (the number of Shares to be acquired)
	
	Tax ID No.: 27-2241513
	
	Address for Notice:
	
	39 Hewlett Lane
	Fort Washington, NY 10050
	
	Telephone No.: 516-439-5392
	
	Email: mark@jalucapital.com
	
	Attention: Mark Fain


  

	
	 Delivery Instructions:

	 (if different than above)

	
	 c/o BT1GLLC

	 Street: 825 3rd Avenue, 7th Floor

	 City/State/Zip: New York, NY 10022

	 Attention: Michael Petronzi

	 Telephone No.: 212-593-7551









  
 
			
	NAME OF PURCHASER: J. Goldman Master Fund L.P.
		
	By:	 	 /s/




			
	Name:	 	  




			
	Title:	 	  




			
	
	Aggregate Purchase Price (Subscription Amount): $907,375.00
	
	Number of Shares to be Acquired: 425,000
	
	Underlying Shares Subject to Warrants: 425,000
	    (the number of Shares to be acquired)
	
	Tax ID No.: 26-3804314
	
	Address for Notice:
	
	152 West 57th Street, 48th
Floor
	New York, NY 10019
	
	Telephone No.: 212-262-4268
	
	Email: areback@jgoldman.net
	
	Attention:


  

			
	 Delivery Instructions:
 (if different than above)

		
	c/o	 	  



			
		
	Street:	 	  



			
		
	City/State/Zip:	 	  



			
		
	Attention:	 	  



			
		
	Telephone No.:	 	  









  
 ANNEX A

 SCHEDULE OF PURCHASERS 
  

													
	 Security Holder
	  	Aggregate
Purchase Price
(Subscription
Amount)	 	  	Number of
Shares to be
Acquired	 	  	Underlying
Shares
Subject to
Warrant	 
	 Special Situations Cayman Fund, L.P.
	  	 	419,999.34	  	  	 	196,721	  	  	 	196,721	  
	 Special Situations Fund III QP, L.P.
	  	 	1,160,001.01	  	  	 	543,326	  	  	 	543,326	  
	 Special Situations Private Equity Fund, L.P.
	  	 	419,999.34	  	  	 	196,721	  	  	 	196,721	  
	 Special Situations Life Sciences Fund, L.P.
	  	 	1,999,796.86	  	  	 	936,673	  	  	 	936,673	  
	 David Greenhouse
	  	 	256,200.00	  	  	 	120,000	  	  	 	120,000	  
	 Austin Marxe
	  	 	999,999.84	  	  	 	468,384	  	  	 	468,384	  
	 New Leaf Ventures II, L.P.
	  	 	4,999,999.20	  	  	 	2,341,920	  	  	 	2,341,920	  
	 Venrock Associates V, L.P.
	  	 	4,060,349.41	  	  	 	1,901,803	  	  	 	1,901,803	  
	 Venrock Entrepreneurs Fund V, L.P.
	  	 	95,400.34	  	  	 	44,684	  	  	 	44,684	  
	 Venrock Partners V, L.P.
	  	 	344,249.54	  	  	 	161,241	  	  	 	161,241	  
	 Camber Capital Fund II, LP
	  	 	80,150.04	  	  	 	37,541	  	  	 	37,541	  
	 Camber Capital Master Fund, LP
	  	 	3,208,800.39	  	  	 	1,502,951	  	  	 	1,502,951	  
	 Arthur J. Penillard Jr. Trust
	  	 	211,051.16	  	  	 	98,853	  	  	 	98,853	  
	 Ayer Capital Partners Master Fund, L.P.
	  	 	1,772,538.92	  	  	 	830,229	  	  	 	830,229	  
	 Ayer Capital Partners Kestrel Fund, L.P.
	  	 	60,819.75	  	  	 	28,487	  	  	 	28,487	  
	 Epworth-Ayer Capital
	  	 	166,645.29	  	  	 	78,054	  	  	 	78,054	  
	 Deerfield Special Situations Fund, L.P.
	  	 	576,001.65	  	  	 	269,790	  	  	 	269,790	  
	 Deerfield Special Situations Fund International, Limited
	  	 	924,000.25	  	  	 	432,787	  	  	 	432,787	  
	 J. Goldman Master Fund LP
	  	 	907,375.00	  	  	 	425,000	  	  	 	425,000	  
	 Oppenheim Asset Management Services S.ar.l. on behalf of FCPOP Medical BioHe@lth-Trends
	  	 	749,854.70	  	  	 	351,220	  	  	 	351,220	  
	 Zeke, LP
	  	 	500,017.00	  	  	 	234,200	  	  	 	234,200	  
	 DAFNA LifeScience Ltd.
	  	 	99,999.13	  	  	 	46,838	  	  	 	46,838	  
	 DAFNA LifeScience Select Ltd.
	  	 	228,000.92	  	  	 	106,792	  	  	 	106,792	  
	 DAFNA LifeScience Market Neutral Ltd.
	  	 	72,000.74	  	  	 	33,724	  	  	 	33,724	  
	 Medical Strategy GmbH for Pharma/Whealth Management Company S.A. on behalf of Pharma/wHealth
	  	 	149,983.75	  	  	 	70,250	  	  	 	70,250	  
	 Empery Asset Master, LTD
	  	 	118,513.85	  	  	 	55,510	  	  	 	55,510	  
	 Hartz Capital Investments, LLC
	  	 	118,515.99	  	  	 	55,511	  	  	 	55,511	  
	 Iroquois Master Fund Ltd.
	  	 	100,001.27	  	  	 	46,839	  	  	 	46,839	  
	 IPConcept Fund Management S.A., an administration company according to Luxembourg Law, acting in its own name but on behalf of
Apo Medical Opportunities – Medical Strategy (“ICP”)
	  	 	99,982.05	  	  	 	46,830	  	  	 	46,830	  
	 Cougar Trading LLC
	  	 	99,918.00	  	  	 	46,800	  	  	 	46,800	  
	 Jalu Capital Partners LP
	  	 	99,918.00	  	  	 	46,800	  	  	 	46,800	  
	 The Osgood Family Trust UAD 4/14/2000
	  	 	99,918.00	  	  	 	46,800	  	  	 	46,800	  
	 Cranshire Capital LP
	  	 	95,001.10	  	  	 	44,497	  	  	 	44,497	  
	 Freestone Advantage Partners, LP
	  	 	5,000.17	  	  	 	2,342	  	  	 	2,342	  
	 Total
	  	 	25,300,002.00	  	  	 	11,850,118	  	  	 	11,850,118	  








  
 EXHIBITS: 

 

			
	A:	  	Form of Warrant
	B:	  	Form of Registration Rights Agreement
	C-1:	  	Accredited Investor Questionnaire
	C-2:	  	Stock Certificate Questionnaire
	D:	  	Irrevocable Transfer Agent Instructions
	E:	  	Form of Officer’s Certificate
	F:	  	Form of Compliance Certificate
	G:	  	Purchaser’s Certificate of Subsequent Sale


  
 1 








  
 EXHIBIT A

 FORM OF WARRANT 

  
 1 








  
 EXHIBIT B

 FORM OF REGISTRATION RIGHTS AGREEMENT 

  
 1