Document:

Exhibit

AGREEMENT AND GENERAL RELEASE
This Agreement and General Release (hereinafter, the “Agreement”) offered to James Hnat (the “Executive”) by JetBlue Airways Corporation (the “Company”) is dated as of May 17, 2018.
WHEREAS, the parties have determined that the Executive shall relinquish his role as Executive Vice President, Corporate Affairs, General Counsel and Corporate Secretary effective June 30, 2018 (the “End of Full-Time Service Date”).
WHEREAS, the Company desires and the Executive agrees to remain as a Senior Advisor on an at will basis from June 30, 2018 through December 31 2018 (the “Advisory Period”), unless terminated by either party sooner; and
WHEREAS, Executive will terminate his employment with the Company on December 31, 2018, or sooner as provided herein (the “Termination Date”): and
WHEREAS, this agreement, when executed by the Executive and the Company in accordance with the terms hereof, shall be effective as of the End of Full-Time Service Date; and
NOW THEREFORE, in consideration of the mutual covenants and conditions set forth below, and intending to be legally bound thereby, the Company and the Executive covenant and agree as follows:
1.Separation. The Executive shall separate from his position of Executive Vice President and General Counsel of the Company as of the End of Full Time Service Date, and will be employed in the alternate full-time position of Senior Advisor from July 1, 2018 through December 31, 2018 (the “Advisory Period”).
2.    Payment and Benefits. Provided that the Executive executes this Agreement within twenty-one days of May 17, 2018, does not revoke this Agreement as provided herein, and signs and does not revoke the Reaffirmation attached as Exhibit A within the time afforded him and remains in compliance with this Agreement or any other agreement to which he is subject, then in consideration for the Executive’s obligations herein, the Company shall provide the following payments and benefits:
(a)    Payments to Executive:
(i)    During the Advisory Period, Executive shall continue to be actively employed by the Company and shall receive a Base Salary at the annual rate of SEVEN HUNDRED AND THIRTY THOUSAND DOLLARS AND ZERO CENTS ($730,000.00) (the “Base Salary”), less all applicable withholdings and deductions, payable in equal installments on the Company’s regularly scheduled payroll dates during the Advisory Period; provided however, that either the Company or the Executive may terminate employment as a Senior Advisor at will at any time, subject to the provisions herein. During the Advisory Period, the Executive may perform his duties in, including but not limited to, any of the following jurisdictions: Arizona, California, Colorado, Florida, Monaco, Nevada, New York, Texas, Virginia, Washington, Washington, D.C. or Wyoming, and shall not be required to regularly attend the Company’s offices, access Company electronic systems, or conduct any business on behalf of the Company, other than in the performance of specific projects as requested by the Chief Executive Officer or his or her designee, for which the Executive shall allocate sufficient business time, skill, and effort.  Should the Chief Executive Officer request an in person meeting, Executive will attend in person at requested location.  Unless otherwise altered by the Chief Executive Officer, Executive’s duties during the Advisory Period shall include, without limitation, advising the Company as regards JetSuite, Inc., JetSuiteX and JetBlue Technology Ventures. Executive shall further remain available to, and shall assist in a timely and professional manner with the transition of Executive’s duties as requested by the Company. All reasonable travel and related expenses incurred by Executive in the fulfillment of his duties during the Advisory Period will be reimbursed in accordance with the applicable expense reimbursement policies and procedures of the Company as in effect from time to time. During the Advisory Period Executive shall remain an employee and shall continue to be bound by all policies, duties, and procedures except as otherwise provided herein; provided, however, that Executive shall no longer accrue Paid Time Off during the Advisory Period nor be eligible for any newly granted equity awards. 
(ii)    Effective as of the close of business on December 31, 2018, or sooner pursuant to the terms of this Agreement (if so provided in accordance with its terms) the Executive shall terminate employment and shall thereinafter (provided he signs and does not revoke the Reaffirmation attached as Appendix A in accordance with its terms thereof) receive compensation as provided in the JetBlue Airways Corporation Severance Plan (the “Severance Plan”) in accordance with the terms thereof. For the sake of clarity and without duplication, pursuant to the Severance Plan, the cash severance period pursuant to Article IV of the Severance Plan shall be twenty-four (24) months salary continuation, and his Pro-Rated Annual Average Bonus of $134,250.
(iii)    In addition to the payments provided herein, Executive shall receive a special bonus payment in a lump sum amount of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00)(the “Special Bonus Payment”), less all applicable withholdings and taxes, which shall be payable on the first pay period after July 1, 2018. 
(iv)    During the Advisory Period, Executive shall be reimbursed up to $5,000 for (a) taking continuing legal education (“CLE”) classes, and (b) up to three bar memberships.  Any reimbursement pursuant to this section shall be evidenced by proper evidence of payment and in all cases shall be subject to the Company’s policies. 
(v)    In the event that the Executive terminates the Advisory Period by resignation prior to December 31, 2018, or if his employment terminates by way of “Cause” (as defined in the Severance Plan) his entitlement to any further compensation pursuant to this Agreement shall cease, he shall be required to return the Special Bonus Payment made prior to his resignation, and his termination shall be considered a resignation without Good Reason for all purposes pursuant to the Severance Plan. Should the Company terminate Executive’s employment as a Senior Advisor without Cause (as defined in the Severance Plan), or, should the Executive die or become disabled, the Company shall include any remaining salary payments due to him through the Advisory End Date into a lump sum payment, less all applicable withholdings and deductions, to be made within 15 business days of the Executive’s execution and non-revocation of the Reaffirmation attached as Appendix A payable to Executive (or his designated beneficiary).  In addition, the amounts otherwise payable subsequent to the Termination Date pursuant to the Severance Plan shall remain payable, with the date of such termination thereinafter being utilized for all purposes as a  termination date pursuant to the Severance Plan. 
(vi)    If Executive is unable to execute Appendix A due to death or disability, any payments otherwise conditioned on such execution will be paid to his designated beneficiary, regardless.
(b)    401(k). The Company shall continue to make 401(k) matching contributions, if any, on behalf of the Executive during the Advisory Period, subject to the terms of the applicable plan.
(c)    Benefits. The Company agrees to continue the Executive’s existing medical and dental benefits during the Advisory Period, subject to the terms and conditions of the plans.  Benefit continuation thereinafter shall be subject to and pursuant to the terms of the Severance Plan, i.e., through December 31, 2019.  
(d)    Flight Benefits. Executive is entitled to his current JetBlue CrewTravel privileges during the Advisory Period and lifetime positive space flight benefits on JetBlue subject to the terms of JetBlue’s pass travel programs and any future changes to those programs including, but not limited to, any changes as may be required by Section 409A of the Internal Revenue Code.  Executive shall be permitted to add a spouse to his flight benefits following his separation from JetBlue, in accordance with the terms of JetBlue’s pass travel programs.
(e)    Restricted Stock Units and Performance Share Unit Grants. The Company agrees that there are 32,293 outstanding Restricted Stock Units and 22,596 Performance Share Unit held by the Executive, which will be treated per the terms and conditions of the applicable plans and agreements, in each case as effected by the Severance Plan, as more specifically provided in Schedule 1 annexed hereto. 
(f)    Career Transition. Executive shall be reimbursed up to $40,000 to be used for career transition support as determined by Executive as provided in the Severance Plan.
(g)    Moving Expenses. The Company agrees to pay relocation costs for the Executive up to a maximum of $30,000, pursuant to and in accordance with the terms of the Company relocation plan, from his current residence located in New York, NY (the “Current Residence”), to a location within the United States to be designated by Executive, provided Executive relocates and provides notice of such relocation on or before the conclusion of the Severance Period.
(h)    OAL Retiree Flight Privileges.  The Company agrees to assist Executive in obtaining OAL retiree flight privileges (and badge to the extent JetBlue issues such badges) upon Executive meeting the requirements of age plus years of service (minimum 10 years) adding up to 65.
(i)     Executive Physical.  Executive shall be eligible to have an executive physical in 2018 pursuant to the Company’s existing program.
3.    No Other Payments or Benefits. Except for the payments and benefits provided for in Paragraph 2 of this Agreement, and those accrued but unused benefits and obligations to which the Executive is entitled, the Executive hereby acknowledges and agrees that the Executive is not entitled to any other compensation or benefits of any kind from the Company, including, but not limited to, any claims for salary, bonuses, severance, or any other payments or benefits whatsoever under any Company plan or program. The obligations assumed by the Company in Section 2 of this Agreement reflect consideration provided to Executive over and above anything of value to which Executive already is entitled, and Executive acknowledges and agrees that no other sums or amounts are or will be due or owing to him and expressly waives any rights or claims to additional sums, amounts, privileges, or benefits not expressly provided for in this Agreement, whether written, oral, express or implied. The Executive’s equity grants shall be governed by the terms of the applicable plans as may be amended from time to time.
4.    Release. In consideration of the obligations of the Company herein, specifically some of the payment and benefits described in Paragraph 2 of this Agreement, of which the Executive acknowledges that the Executive is not otherwise entitled, the Executive hereby fully and forever unconditionally releases and discharges the Company and all of its past or present officers, directors, employees, insurers, agents, subsidiaries, successors and assigns (hereinafter referred to collectively as the “Releasees”), from any and all manner of actions and causes of action, suits, debts, dues, accounts, bonds, covenants, contracts, agreements, judgments, charges, claims and demands whatsoever which the Executive, the Executive’s heirs, executors, administrators and assigns has, or may hereafter have against the Releasees arising out of or by reason of any cause, matter or thing whatsoever occurring on or before the Effective Date of this Agreement, including, but without limitation to, any or all matters relating to the Executive’s employment by the Company and the separation thereof, the Executive’s benefits, and all matters arising under any international, federal, state, or local statute, rule or regulation or principle of contract law or common law, in law or in equity, including, but not limited to, claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Employee Retirement Income Security Act of 1974, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, all as amended, and any other federal, state or local laws regarding employment discrimination, excepting only claims for worker’s compensation, unemployment compensation , rights of indemnification pursuant to governing bylaws and/or charter documents, and rights arising after the Effective Date of this Agreement (until and unless released in the Reaffirmation) and rights under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”). Nothing in this agreement prohibits Executive from reporting possible violations of federal law or regulation to any governmental agency or regulatory authority, including but not limited to the U.S. Securities and Exchange Commission, or from making other disclosures that are protected under the whistleblower provisions of federal law or regulation (collectively, “Excluded Claims”).
(a)    Covenant not to Sue.  Executive represents and agrees that Executive has not filed any claim, charge, allegation, or complaint for monetary damages, whether formal, informal, or anonymous, with any governmental agency, department or division, whether federal, state or local, relating to any Released Party in any manner, including without limitation, any Released Party’s business or employment practices. Executive covenants and agrees never, individually or with any person or entity or in any way, to commence, aid in any way, prosecute or cause or permit to be commenced or prosecuted against any Released Party any action or other proceeding, including, without limitation, an arbitration or other alternative dispute resolution procedure, based upon any claim, demand, cause of action, obligation, damage, or liability that is the subject of the general release of claims contained in Section 4 of this Agreement (the “Release”) or is in connection with Executive’s employment or service with any Releasee or the termination thereof, excluding the Excluded Claims. If Executive takes any action to commence, aid in any way, prosecute or cause to permit to be commenced or prosecuted any action or proceeding against the Released Party that is the subject of the Release or is in connection with Executive’s employment or service with any Releasee or the termination thereof, excluding the Excluded Claims, or if Executive breaches this Agreement in any way, the Company’s obligation to provide any payments pursuant to Section 2 shall immediately cease and, promptly after the date of such action by Executive, Executive must repay to the Company (other than $1.00) any portion of the payments made pursuant to Section 2 previously paid. Executive also agrees to pay the attorneys’ fees and costs, or the proportions thereof, incurred by the applicable Releasee in defending against those claims. Notwithstanding the foregoing, nothing in this Agreement precludes Executive from challenging the validity of the Release under the requirements imposed by the Age Discrimination in Employment Act (“ADEA”), and Executive shall not be responsible for reimbursing the attorneys’ fees and costs of any Releasee in connection with a challenge under the ADEA to the validity of the Release. However, Executive acknowledges that the Release applies to all claims that he has under the ADEA, and that unless the Release is held to be invalid, all such ADEA claims shall be extinguished.
5.    Restrictive Covenants.
(a)    Non-Compete. The parties agree the Executive may not engage in any other paid work during the Advisory Period, including without limitation, Competitive Activity, which shall be defined as directly or indirectly owning, managing, operating, joining, controlling or participating in the ownership, management, operation or control of, or be employed by, any air carrier with its base of operations in North, Central or South America (the “Competitive Airlines”). To the extent the Executive engages in Competitive Activity prior to December 31, 2018, the Executive’s employment shall terminate, the Company’s obligation to make and/or continue future payments and benefits under this Agreement shall terminate, and the Executive shall be required to repay to the Company any payments and benefits previously paid to him (other than amounts required by law and $1.00) under this Agreement within 3 business days of him engaging in the Competitive Activity. The Executive must notify JetBlue Airways Corporation, 27-01 Queens Plaza North, Long Island City, New York 11101, Attention: General Counsel within 5 business days of his intent to resign his employment during the Advisory Period.
(b)    Non-Solicit. Unless the Company agrees and provides written consent to the contrary, the Executive agrees that during the Advisory Period, the Executive shall not directly or indirectly (i) interfere with or attempt to interfere with any person who is, or was during the then most recent 12-month period, an employee, officer, representative or agent of the Company or its affiliates, or solicit, induce or attempt to solicit, induce any of them to leave the employ of the Company or its affiliates or violate the terms of their contracts, or any employment arrangements, with the Company or its affiliates; (ii) induce or attempt to induce any employee of the Company or its affiliates to leave the employ of the Company or its affiliates, or interfere in any way with the relationship between the Company or its affiliates and any employee of the Company or its affiliates; or (iii) induce or attempt to induce any customer, supplier, licensee or other business relation of the Company or its affiliates to cease doing business with the Company or its affiliates, or in any way interfere with the relationship between the Company or its affiliates and any of their respective customers, suppliers, licensees or other business relations. As used herein, the term “indirectly” shall include, without limitation, the Executive’s permitting the use of the Executive’s name by any competitor of the Company to induce or interfere with any employee or business relationship of the Company.
(c)    Remedies. Executive acknowledges that, in view of the nature of the Company’s business and his prior position with the Company, the restrictions contained in Paragraphs 5(a) and 5(b) of this Agreement are reasonable and necessary to protect the Company’s legitimate business interests and that any violation of those provisions would result in irreparable injury to the Company. In the event of a breach, the Company shall be entitled to all available legal and equitable remedies of law, including, but not limited to a temporary restraining order and injunctive relief restraining the Executive from the commission of any breach (without proving actual damages or posting a bond or other security).
(d)    The courts shall be entitled to modify the duration and scope of any restriction contained in Paragraph 5 of this Agreement to the extent such restriction would otherwise be unenforceable, and such restriction as modified shall be enforceable. 
(e)    The Parties understand and agree that notwithstanding Executive’s duties hereunder, both during the Advisory Period and thereinafter, he may engage in teaching, serve on corporate and non-profit boards, and engage in other consulting activities.
6.    Company Property. The Executive shall retain use of all Company property in the Executive’s possession during the Advisory Period. Thereafter as of the Termination Date, or earlier upon request, the Executive shall return all Company property. After giving effect to the return of the property discussed herein, the Executive represents and warrants that the Executive has no Company records or copies of records or correspondence or copies of correspondence, other than non-confidential documents relating to the Executive’s own employment by the Company.
7.    Non-Disparagement. The Executive agrees that the Executive will not publish or communicate to any person or entity Disparaging (as defined herein) remarks, comments or statements concerning the Releasees. The Company’s officers shall not publish or communicate to any person or entity any Disparaging remarks comments or statements concerning the Executive. “Disparaging” remarks, comments, or statements are those that impugn the character, honesty, integrity, morality, or business acumen or abilities in connection with any aspect of the operation of the Company’s business or the Executive.
8.    Cooperation.    Executive agrees that he will cooperate with the Company and/or any Releasee and its or their respective counsel in connection with any investigation, administrative proceeding or litigation relating to any matter that occurred during Executive’s employment in which he was involved or of which he has knowledge. Such cooperation includes, but not limited to, the execution of truthful affidavits or documents, testifying truthfully, or providing truthful information requested by the Company. The Company agrees that, should a matter have a potential to become adverse between the Company and the Executive in either party’s good faith reasonable belief, the Executive is permitted to retain separate legal counsel of his choice in connection with providing such cooperation, and the Company agrees to advance legal expenses to Executive’s chosen counsel. The Company also agrees to reimburse Executive for any reasonable out of pocket expenses, including travel, meal or lodging costs as a result of such cooperation. Executive further agrees that in the event he is subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony (in a deposition, court proceeding or otherwise) which in any way relates to his employment by the Company and/or its affiliates, Executive will give prompt notice of such request to JetBlue Airways Corporation, 27-01 Queens Plaza North, Long Island City, New York 11101, Attention: General Counsel, and will make no disclosure until the Company and/or such affiliates have had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure. Executive agrees that in providing such services, Executive will be serving as an attorney for the Company, and that any communications between the Company (or any of its counsel) and Executive shall be subject to the attorney-client and attorney work product privilege. Executive acknowledges that he has no right or authority to waive any attorney-client or attorney work product privilege belonging to the Company and/or any of its affiliates, and that he shall not provide any information in violation of such privileges. Executive further agrees that he shall not meet or otherwise communicate with any counter-party or any representative of any counter party to any litigation in which the Company (or any of its officers or directors) is a party, whether or not nominal, without the prior written consent of the Company.
9.    Protection of Confidential Information. The Executive hereby acknowledges that Executive remains subject to and agrees to abide by any and all existing duties and obligations respecting confidential and/or proprietary information of the Company. Executive further acknowledges that any information known to Executive which is protected by the Company’s attorney-client or work product privilege shall, unless otherwise notified otherwise by the Company, remain subject to such privilege.
10.    Defend Trade Secret Act of 2016 Notice. Executive understands that under the Defend Trade Secret Act, Executive will not be held criminally or civilly liable under any federal or state trade secret law (including the Defend Trade Secrets Act of 2016) for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law. Executive also will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
11.    Non-Assignment of Rights. Executive warrants that the Executive has not assigned or transferred any right or claim described in the general release given in Paragraph 4 above.
12.    Voluntary and Knowing. The Executive represents and warrants that the Executive fully understands the terms of this Agreement and that the Executive knowingly and voluntarily, of the Executive’s own free will without any duress, being fully informed, after due deliberation and after consultation with the Executive’s own counsel, accepts its terms and signs the same as the Executive’s own free act.
13.    Revocation Period and Effective Date. Executive acknowledges that the Company has provided the Executive the opportunity to review and consider this Agreement for at least twenty-one (21) days from the date the Company provided the Executive this Agreement. Executive represents that he was advised by the Company to review this Agreement with an attorney before signing. If Executive executes this Agreement prior to the expiration of twenty-one (21) days from the date the Company provided the Executive with this Agreement, the Executive voluntarily and knowingly waives any right the Executive may have, prior to signing this Agreement, to additional time within which to consider the Agreement. The Executive may revoke this Agreement within seven (7) days after he executes this Agreement by providing written notification of the intended revocation to the Chief Executive Officer Robin Hayes, at the Company. This Agreement becomes effective on the eighth day after it is executed by both parties, provided that it is not revoked by the Executive prior to that date (the “Effective Date”). In the event that Executive does not accept this Agreement in the required time frames, if the Executive revokes this Agreement as provided in this Section 8, this Agreement, including but not limited to the obligation of the Company to provide the payment(s) and benefits, shall be deemed automatically null and void. Further, if the Executive does not sign the Reaffirmation attached as Appendix A in accordance with its terms thereof, he shall not be entitled to any amounts payable subsequent to the Termination Date.
14.    No Exit Incentive. The payments provided under this Agreement are not offered in connection with any specific exit incentive or other employment termination program.
15.    Governing Law. This Agreement shall be governed in all respects, whether as to validity, construction, capacity, and performance or otherwise by the laws of the State of New York.
16.    Entire Agreement. This Agreement constitutes the sole and entire agreement between the Company and the Executive and supersedes any and all understandings and agreements made prior hereto. 
17.    Modification. No provision of this Agreement shall be amended, waived or modified except by an instrument in writing signed by the parties hereto.
18.    Counterparts. This Agreement may be executed in counterparts, both of which together shall constitute the original agreement. This Agreement may also be executed by electronic facsimile signature.

19.    No Admission of Liability. It is understood and agreed that the execution of this Agreement by the Company is not to be construed as an admission of any liability on its part to Executive other than to comply with the terms of this Agreement.
ACCEPTED AND AGREED:
Date:  May 17, 2018

/s/ James Hnat___________________
JAMES HNAT
    
JETBLUE AIRWAYS CORPORATION

/s/ Robin Hayes ________________
     By:__Robin Hayes 
Title: Chief Executive Officer 

Exhibit A
Reaffirmation
I, James Hnat, hereby reaffirm the terms of the Separation Agreement previously entered into between JetBlue Airways Corporation, and me, dated May __, 2018 a copy of which is attached hereto and is incorporated by reference into this Reaffirmation. I hereby reaffirm that I have complied with the terms of the Separation Agreement and that I will continue to do so. I also reaffirm and agree to all the terms of the Separation Agreement. I understand that this Reaffirmation is required for me to receive the Separation Benefits stated in the Separation Agreement.
BY SIGNING THIS REAFFIRMATION, I STATE THAT: I HAVE READ IT; I UNDERSTAND IT AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS AND POSSIBLE LEGAL AND/OR ADMINISTRATIVE CLAIMS; I AGREE TO ALL THE TERMS AND CONDITIONS CONTAINED WITHIN THE AGREEMENT AND GENERAL RELEASE AGREEMENT; I AM AWARE OF MY RIGHT TO CONSULT AN ATTORNEY BEFORE SIGNING IT AND THE COMPANY HAS ADVISED ME THAT I SHOULD DO SO AND I HAVE HAD THE OPPORTUNITY TO DO SO; I HAVE SEVEN (7) DAYS AFTER SIGNING TO REVOKE THIS REAFFIRMATION; AND I HAVE SIGNED THIS REAFFIRMATION KNOWINGLY AND VOLUNTARILY.
I ratify and reaffirm the commitments set forth herein as of the Termination Date or the date I sign this reaffirmation if such date is later.
	
		
	 
	 

	James Hnat
	Date

Please sign and date the above on or after your Termination Date, and return one signed Reaffirmation to the Company at 27-01 Queens Plaza North, Long Island City, New York 11101, Attention: General Counsel within twenty-one days after the Termination Date.

SCHEDULE 1

	
				
	Equity Type
	Grant Date
	Units Granted
	Units Unvested

	RSU
	2/22/2018
	14,388
	14,388

	RSU
	2/24/2017
	20,439
	13,626

	RSU
	2/24/2016
	12,836
	4,279

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	SEVERANCE

	Equity Type
	Grant Date
	Units Granted
	11 Month Vest

	RSU
	2/22/2018
	14,388
	4,796

	RSU
	2/24/2017
	20,439
	6,813

	RSU
	2/24/2016
	12,836
	4,279

	PSU
	2018-2020
	7,672
	 

	PSU
	2017-2019
	7,075
	 

	PSU
	2016-2018
	7,849
	 

	 
	 
	 
	15,888

The 15,888 RSUs continue to vest; remaining equity will be forfeit at termination of employment.

DM_US 91754279-3.PG0410.0010Exhibit 4.2

 

 

 

	 	Form 4

Articles of Amendment	Formulaire 4

Clauses modificatrices
	 	Canada Business Corporations Act

(CBCA) (s. 27 or 177)	Loi canadienne sur les sociétés par

actions (LCSA) (art. 27 ou 177)

 

	 	 
	1	Corporate name
	 	Dénomination sociale 
	 	Correvio Pharma Corp.
	 	 
	2	Corporation number 
	 	Numéro de la société
	 	1066955-5
	 	 
	3	The articles are amended as follows
	 	Les statuts sont modifiés de la façon suivante

 

	 	The corporation changes the minimum and/or maximum number of directors to: 
	 	Les nombres minimal et/ou maximal d’administrateurs sont modifiés pour :

 

	 	Min. 3	Max. 10

 

	 	 
	4	Declaration:
I certify that I am a director or an officer of the corporation. 
	 	Déclaration : J’atteste que je suis un administrateur ou un dirigeant de la société.

 

	 	Original signed by / Original signé par

Justin Renz
	 	Justin Renz
	 	604-677-6905

 

	 
	Misrepresentation constitutes an offence and, on summary conviction, a person is liable to a fine not exceeding $5000 or to imprisonment for a term not exceeding six months or both (subsection 250 (1) of the CBCA).
	 
	Faire une fausse déclaration constitue une infraction et son auteur, sur déclaration de culpabilité par procédure sommaire, est passible d’une amende maximale de 5 000 $ et d’un emprisonnement maximal de six mois, ou l’une de ces peines (paragraphe 250(1) de la LCSA).
	 
	You are providing information required by the CBCA. Note that both the CBCA and the Privacy Act allow this information to be disclosed to the public. It will be stored in personal information bank number IC/PPU-049.
	 
	Vous fournissez des renseignements exigés par la LCSA. Il est à noter que la LCSA et la Loi sur les renseignements personnels permettent que de tels renseignements soient divulgués au public. Ils seront stockés dans la banque de renseignements personnels numéro IC/PPU-049.

 

	 	IC 3069 (2008/04)

 

     

     

    

 

 

 

	 	Form 4

Articles of Amendment	Formulaire 4

Clauses modificatrices
	 	Canada Business Corporations Act

(CBCA) (s. 27 or 177)	Loi canadienne sur les sociétés par

actions (LCSA) (art. 27 ou 177)

 

	 	 
	1	Corporate name
	 	Dénomination sociale 
	 	Correvio Pharma Corp.
	 	 
	2	Corporation number 
	 	Numéro de la société
	 	1066955-5
	 	 
	3	The articles are amended as follows
	 	Les statuts sont modifiés de la façon suivante

 

	  	See attached schedule / Voir l'annexe ci-jointe

 

	 	 
	4	Declaration:
I certify that I am a director or an officer of the corporation. 
	 	Déclaration : J’atteste que je suis un administrateur ou un dirigeant de la société.

 

	 	Original signed by / Original signé par

William Hunter
	 	William Hunter
	 	604-677-6905

 

	 
	Misrepresentation constitutes an offence and, on summary conviction, a person is liable to a fine not exceeding $5000 or to imprisonment for a term not exceeding six months or both (subsection 250 (1) of the CBCA).
	 
	Faire une fausse déclaration constitue une infraction et son auteur, sur déclaration de culpabilité par procédure sommaire, est passible d’une amende maximale de 5 000 $ et d’un emprisonnement maximal de six mois, ou l’une de ces peines (paragraphe 250(1) de la LCSA).
	 
	You are providing information required by the CBCA. Note that both the CBCA and the Privacy Act allow this information to be disclosed to the public. It will be stored in personal information bank number IC/PPU-049.
	 
	Vous fournissez des renseignements exigés par la LCSA. Il est à noter que la LCSA et la Loi sur les renseignements personnels permettent que de tels renseignements soient divulgués au public. Ils seront stockés dans la banque de renseignements personnels numéro IC/PPU-049.

 

	 	IC 3069 (2008/04)

 

     

     

    

 

SCHEDULE A

 

SHARES

 

The authorized capital of the Corporation
be altered by removing the Series A Preferred Shares and deleting the share rights, privileges, restrictions and conditions of
the Series A Preferred Shares in their entirety.

 

The classes and number of shares that the Corporation is authorized
to issue are as follows:

 

(a)       an unlimited
number of Common shares without par value; and

 

(b)       an unlimited
number of Preferred shares without par value.

 

1.       Rights,
Privileges, Restrictions & Conditions Attaching to the Preferred Shares

 

The Preferred shares
of the Corporation, as a class, shall have attached thereto the following rights, privileges, restrictions and conditions:

 

1.1       Directors’
Authority to Issue in One or More Series.

 

The board of directors of the Corporation
may issue the Preferred shares at any time and from time to time in one or more series. Before the first shares of a particular
series are issued, the board of directors of the Corporation shall fix the number of shares in such series and shall determine,
subject to the limitations set out in the articles, the designation, rights, privileges, restrictions and conditions to be attached
to the shares of such series including, without limitation, the rate or rates, amount or method or methods of calculation of dividends
thereon, the time and place of payment of dividends, whether cumulative or non-cumulative or partially cumulative and whether such
rate, amount or method of calculation shall be subject to change or adjustment in the future, the currency or currencies of payment
of dividends, the consideration and the terms and conditions of any purchase for cancellation, retraction or redemption rights
(if any), the conversion or exchange rights attached thereto (if any), the voting rights attached thereto (if any), and the terms
and conditions of any share purchase plan or sinking fund with respect thereto. Before the issue of the first shares of a series,
the board of directors of the Corporation shall send to the Director (as defined in the Canada Business Corporations Act)
articles of amendment containing a description of such series including the designation, rights, privileges, restrictions and conditions
determined by the board of directors of the Corporation.

 

1.2       Ranking
of Preferred Shares.

 

The Preferred shares of any series may
be given such preferences, not inconsistent with sections 1.1 and 1.3 hereof, over the Common shares and over any other shares
ranking junior to the Preferred shares as may be determined in the case of such series of Preferred shares. No rights, privileges,
restrictions or conditions attached to a series of Preferred shares shall confer upon a series a priority in respect of dividends
or return of capital over any other series of Preferred shares then outstanding. If any cumulative dividends or amounts payable
on a return of capital in respect of a series of Preferred shares are not paid in full, the Preferred shares of all series shall
participate rateably in respect of such dividends, including accumulations, if any, in accordance with the sums that would be payable
on such shares if all such dividends were declared and paid in full, and in respect of any repayment of capital in accordance with
the sums that would be payable on such repayment of capital if all sums so payable were paid in full; provided however, that in
the event of there being insufficient assets to satisfy in full all such claims to dividends and return of capital, the claims
of the holders of the Preferred shares with respect to repayment of capital shall first be paid and satisfied and any assets remaining
thereafter shall be applied towards the payment and satisfaction of claims in respect of dividends.

 

     

     

    

 

1.3       Voting
Rights.

 

Except as hereinafter referred to or as
otherwise required by law or in accordance with any voting rights which may from time to time be attached to any series of Preferred
shares, the holders of the Preferred shares as a class shall not be entitled as such to receive notice of, to attend or to vote
at any meeting of the shareholders of the Corporation.

 

2.       Rights,
Privileges, Restrictions & Conditions Attaching to the Common Shares

 

The Common shares of
the Corporation shall have attached thereto the following rights, privileges, restrictions and conditions:

 

2.1       Dividends.

 

Subject to the prior rights (if any) of
the holders of the Preferred shares and any other shares ranking senior to the Common shares with respect to priority in the payment
of dividends, the holders of Common shares shall be entitled to receive dividends and the Corporation shall pay dividends thereon,
as and when declared by the board of directors of the Corporation out of monies properly applicable to the payment of dividends,
in such amount and in such form as the board of directors of the Corporation may from time to time determine and all dividends
which the board of directors of the Corporation may declare on the Common shares shall be declared and paid in equal amounts per
share on all Common shares at the time outstanding.

 

2.2       Dissolution.

 

In the event of the dissolution, liquidation
or winding-up of the Corporation, whether voluntary or involuntary, or any other distribution of assets of the Corporation among
its shareholders for the purpose of winding-up its affairs, subject to the prior rights (if any) of the holders of the Preferred
shares and any other shares ranking senior to the Common shares with respect to priority in the distribution of assets upon dissolution,
liquidation, winding-up or distribution for the purpose of winding-up, the holders of the Common shares shall be entitled to receive
the remaining property and assets of the Corporation.

 

2.3       Voting
Rights.

 

The holders of the Common shares shall
be entitled to receive notice of and to attend all meetings of the shareholders of the Corporation and shall have one vote for
each Common share held at all meetings of the shareholders of the Corporation, except meetings at which only holders of another
specified class or series of shares of the Corporation are entitled to vote separately as a class or series.

 

    	 	2	 

     

    

 

 

 

	 	Form
1

Articles of Incorporation	Formulaire
1

Statuts constitutifs
	 	Canada
Business Corporations

Act (s. 6)	Loi
canadienne sur les sociétés

par actions (art. 6)

 

	 	 
	1	Corporate name
	 	Dénomination sociale
	 	Correvio Pharma Corp.
	 	 
	2	The province or territory in Canada where the registered office is situated
	 	La province ou le territoire au Canada où est situé le siège social
	 	BC
	 	 
	3	The classes and any maximum number of shares that the corporation is authorized to issue
	 	Catégories et le nombre maximal d’actions que la société est autorisée à émettre
	 	See attached schedule / Voir l'annexe ci-jointe
	 	 
	4 	Restrictions on share transfers
	 	Restrictions sur le transfert des actions
	 	None
	 	 
	5	Minimum and maximum number of directors
	 	Nombre minimal et maximal d’administrateurs
	 	Min. 3      Max. 20
	 	 
	6	Restrictions on the business the corporation may carry on
	 	Limites imposées à l’activité commerciale de la société
	 	None
	 	 
	7	Other Provisions
	 	Autres dispositions
	 	See attached schedule / Voir l'annexe ci-jointe
	 	 
	8	Incorporator’s Declaration: I hereby certify that I am authorized to sign and submit this form. 

Déclaration des fondateurs : J’atteste que je suis autorisé à signer et à soumettre le présent formulaire.

 

	 	Name(s) - Nom(s)	 	Original Signed by - Original signé par
	 	 	 	 
	 	Steven McKoen	 	Steven McKoen
	 	 	 	Steven McKoen

 

	 	 
	 	Misrepresentation constitutes an offence and, on summary conviction, a person is liable to a fine not exceeding $5000 or to imprisonment for a term not exceeding six months or both (subsection 250(1) of the CBCA).
	 	 
	 	Faire une fausse déclaration constitue une infraction et son auteur, sur déclaration de culpabilité par procédure sommaire, est passible d’une amende maximale de 5 000 $ et d’un emprisonnement maximal de six mois, ou l’une de ces peines (paragraphe 250(1) de la LCSA).
	 	 
	 	You are providing information required by the CBCA. Note that both the CBCA and the Privacy Act allow this information to be disclosed to the public. It will be stored in personal information bank number IC/PPU-049.
	 	 
	 	Vous fournissez des renseignements exigés par la LCSA. Il est à noter que la LCSA et la Loi sur les renseignements personnels permettent que de tels renseignements soient divulgués au public. Ils seront stockés dans la banque de renseignements personnels numéro IC/PPU-049.

 

	 	IC 3419 (2008/04)

 

 

     

     

    

 

SCHEDULE 1

 

ITEM 3 - SHARES

 

The classes and number of shares that the Corporation
is authorized to issue are as follows:

 

		(a)	an unlimited number of Common shares without par value; and

 

		(b)	an unlimited number of Preferred shares without par value of which an unlimited number have been
designated as Series A Preferred Shares.

 

1.       Rights,
Privileges, Restrictions & Conditions Attaching to the Preferred Shares

 

The Preferred
shares of the Corporation, as a class, shall have attached thereto the following rights, privileges, restrictions and conditions:

 

		1.1	Directors’ Authority
to Issue in One or More Series.

 

The board of directors of the
Corporation may issue the Preferred shares at any time and from time to time in one or more series. Before the first shares of
a particular series are issued, the board of directors of the Corporation shall fix the number of shares in such series and shall
determine, subject to the limitations set out in the articles, the designation, rights, privileges, restrictions and conditions
to be attached to the shares of such series including, without limitation, the rate or rates, amount or method or methods of calculation
of dividends thereon, the time and place of payment of dividends, whether cumulative or non-cumulative or partially cumulative
and whether such rate, amount or method of calculation shall be subject to change or adjustment in the future, the currency or
currencies of payment of dividends, the consideration and the terms and conditions of any purchase for cancellation, retraction
or redemption rights (if any), the conversion or exchange rights attached thereto (if any), the voting rights attached thereto
(if any), and the terms and conditions of any share purchase plan or sinking fund with respect thereto. Before the issue of the
first shares of a series, the board of directors of the Corporation shall send to the Director (as defined in the Canada Business
Corporations Act) articles of amendment containing a description of such series including the designation, rights, privileges,
restrictions and conditions determined by the board of directors of the Corporation.

 

		1.2	Ranking of Preferred Shares.

 

The Preferred shares of any series
may be given such preferences, not inconsistent with sections 1.1 and 1.3 hereof, over the Common shares and over any other shares
ranking junior to the Preferred shares as may be determined in the case of such series of Preferred shares. No rights, privileges,
restrictions or conditions attached to a series of Preferred shares shall confer upon a series a priority in respect of dividends
or return of capital over any other series of Preferred shares then outstanding. If any cumulative dividends or amounts payable
on a return of capital in respect of a series of Preferred shares are not paid in full, the Preferred shares of all series shall
participate rateably in respect of such dividends, including accumulations, if any, in accordance with the sums that would be payable
on such shares if all such dividends were declared and paid in full, and in respect of any repayment of capital in accordance with
the sums that would be payable on such repayment of capital if all sums so payable were paid in full; provided however, that in
the event of there being insufficient assets to satisfy in full all such claims to dividends and return of capital, the claims
of the holders of the Preferred shares with respect to repayment of capital shall first be paid and satisfied and any assets remaining
thereafter shall be applied towards the payment and satisfaction of claims in respect of dividends.

 

     

     

    

 

		1.3	Voting Rights.

 

Except as hereinafter referred
to or as otherwise required by law or in accordance with any voting rights which may from time to time be attached to any series
of Preferred shares, the holders of the Preferred shares as a class shall not be entitled as such to receive notice of, to attend
or to vote at any meeting of the shareholders of the Corporation.

 

		2.	Rights, Privileges, Restrictions & Conditions Attaching to the Common Shares

 

The Common
shares of the Corporation shall have attached thereto the following rights, privileges, restrictions and conditions:

 

		2.1	Dividends.

 

Subject to the prior rights (if
any) of the holders of the Preferred shares and any other shares ranking senior to the Common shares with respect to priority in
the payment of dividends, the holders of Common shares shall be entitled to receive dividends and the Corporation shall pay dividends
thereon, as and when declared by the board of directors of the Corporation out of monies properly applicable to the payment of
dividends, in such amount and in such form as the board of directors of the Corporation may from time to time determine and all
dividends which the board of directors of the Corporation may declare on the Common shares shall be declared and paid in equal
amounts per share on all Common shares at the time outstanding.

 

		2.2	Dissolution.

 

In the event of the dissolution,
liquidation or winding-up of the Corporation, whether voluntary or involuntary, or any other distribution of assets of the Corporation
among its shareholders for the purpose of winding-up its affairs, subject to the prior rights (if any) of the holders of the Preferred
shares and any other shares ranking senior to the Common shares with respect to priority in the distribution of assets upon dissolution,
liquidation, winding-up or distribution for the purpose of winding-up, the holders of the Common shares shall be entitled to receive
the remaining property and assets of the Corporation.

 

		2.3	Voting Rights.

 

The holders of the Common shares
shall be entitled to receive notice of and to attend all meetings of the shareholders of the Corporation and shall have one vote
for each Common share held at all meetings of the shareholders of the Corporation, except meetings at which only holders of another
specified class or series of shares of the Corporation are entitled to vote separately as a class or series.

 

		3.	Rights, Privileges, Restrictions & Conditions Attaching to the Series A Preferred Shares

 

The first
Series of Preferred shares of the Corporation, designated as the Series A Preferred Shares (the “Series
A Shares”) shall have attached thereto, in addition to the rights, privileges, restrictions
and conditions attaching to the Preferred shares as a class, the following rights, privileges, restrictions and conditions:

 

    	 	2	 

     

    

 

		3.1	Interpretation.

 

In this Article 1, the following terms shall have
the following meanings:

 

“Business
Day” means any day on which commercial banks are generally open for business in
New York, New York or Vancouver, British Columbia other than a Saturday or Sunday or a day observed as a holiday in New York, New
York under the laws of the State of New York or the federal laws of the United States of America applicable therein or in Vancouver,
British Columbia or the federal laws of Canada applicable therein.

 

“Change
of Control” means an acquisition of Common Shares by means of take-over bid, tender
offer, exchange offer, amalgamation, merger, acquisition, sale of shares, plan of arrangement or other form of corporate reorganization
in which outstanding Common Shares are exchanged for money, securities or other consideration paid, or caused to be issued or paid,
and upon completion of such transaction at least 50% of the voting securities of the Corporation or the reorganized, amalgamated,
continuing, merged, surviving or consolidated entity resulting from such transaction are “beneficially
owned” (within the meaning of that expression as defined in the Exchange Act), directly
or indirectly, by one or more “persons”
or “groups” (within the meaning
of such terms as used for purposes of Section 13(d) and 14(d) of the Exchange Act) other than persons who beneficially owned at
least 50% of the Common Shares (together with, if applicable, other shares of the Corporation that carry a voting right for the
election of directors generally either under all circumstances or under some circumstances that have occurred and are continuing)
immediately before the completion of such transaction.

 

“Change
of Control Price” means, in respect of any transaction constituting a Change of
Control, the value of the consideration paid per Common Share to holders of outstanding Common Shares under such transaction, expressed
in U.S. dollars. If any of the consideration paid is other than cash, the value of such consideration will be the amount the Board,
acting reasonably, determines is the fair value of such consideration, except where such consideration consists of publicly traded
securities, in which case the value of such consideration will be the last trade price for such securities on the principal securities
exchange or trading market where such security is listed or traded as reported by Bloomberg Financial Markets (“Bloomberg”),
or if the foregoing is not applicable the last trade price of such security in the over-the-counter market on the electronic bulletin
board for such security as reported by Bloomberg, or if no last trade price is reported for such security by Bloomberg the average
of the ask prices of any market makers for such security as reported in the “pink
sheets” by Pink Sheets LLC. If such trade price cannot be calculated for a security
on a particular date on any of the foregoing bases, the value of such security on such a date will be such value as the Board,
acting reasonably, determines is the fair market value of such consideration. In the event that the Board makes any determination
of the value of any consideration as contemplated herein, the Corporation shall promptly notify the holders in writing by facsimile
of such determination. If any holder objects in writing by facsimile to the Corporation to such determination within two Business
Days of receipt of such notice from the Corporation, the Corporation shall submit via facsimile the determination of the value
of such consideration to an independent, reputable investment bank selected by the Corporation and reasonably acceptable to the
holders of a majority of the Series A Shares, or failing agreement of such holders, an independent, reputable investment bank selected
by the auditors of the Corporation. The Corporation shall cause, at the Corporation’s
expense, such investment bank to make such determination and shall notify the holders of the results of such determination no later
than two Business Days from the time the Corporation receives such determination. Such investment bank’s
determination shall be final and binding on the Corporation and all holders, absent error.

 

    	 	3	 

     

    

 

“Common
Shares” means the Common shares of the Corporation as constituted on the Issue Date,
and any other shares or securities into which such shares may be exchanged (whether or not the Corporation is the issuer of such
other shares or securities) or any other consideration which may be received by the holders of such shares pursuant to a capital
reorganization, merger, amalgamation or arrangement of the Corporation or comparable transaction affecting the Common Shares of
the Corporation, provided that, where any such capital reorganization, merger, amalgamation, or arrangement or transaction requires
approval of shareholders of the Corporation, including holders of Series A Shares, such capital reorganization, merger, amalgamation,
arrangement or transaction is approved as required by these Articles.

 

“Conversion
Price” means initially U.S. $11.00, subject to adjustment from time to time pursuant
to Article 3.7.

 

“Conversion
Ratio” at any particular time means the Conversion Ratio determined at that time
by the following formula:

 

	 	Conversion Ratio =	Issue Price	 
	 	 	Conversion	 
	 	 	Price	 

 

“Exchange
Act” means the United States Securities Exchange Act of 1934, as amended.

 

A “holder”
means, with respect to any Series A Share, the person or entity in whose name Such Preferred Share is registered on the register
of Series A Shares maintained by the Corporation or its agent.

 

“Issue
Date” means the date on which the Corporation first issues Series A Shares.

 

“Issue
Price” means U.S. $11.00.

 

“Junior
Shares” means any class or Series of shares of the Corporation (other than the Common
Shares) hereafter created and authorized over which the Series A Shares have preference or priority in the distribution of assets
on any liquidation, dissolution or winding up of the Corporation or other distribution of assets of the Corporation for the purposes
of winding up its affairs.

 

“Parity
Shares” means any class or Series of shares of the Corporation (other than the
Series A Shares) that ranks on a parity with the Series A Shares in the distribution of assets on any liquidation, dissolution
or winding up of the Corporation or other distribution of assets of the Corporation for the purposes of winding up its affairs,
provided that the authorization or issuance of any such shares authorized or issued (including by reclassification) after the
Issue Date shall have been approved as required pursuant to Article 3.15.

 

    	 	4	 

     

    

 

“Reference Package”
initially means one fully paid and non-assessable Common Share, but is subject to adjustment as provided in Article 3.7.

 

“Strategic
Review Termination Date” means the date that is the earlier of the date that the
Corporation publicly announces that (a) the Corporation has terminated or is otherwise no longer continuing the review and evaluation
of partnership opportunities and other strategic alternatives announced by the. Corporation on March 17, 2008 (provided that this
clause (a) shall not be satisfied by a public announcement that the Corporation has elected to pursue a partnership opportunity
or other strategic transaction with one or more persons), or (b) the Corporation has entered into a strategic partnership or licensing
transaction with respect to Vernakalant (iv) or Vernakalent (oral) that does not constitute a Change of Control.

 

		3.2	Dividends.

 

The holders of Series A Shares
shall be entitled to receive, and the Corporation will pay thereon, if, as and when and as declared by the board of directors of
the Corporation (the “Board”),
but only out of money or property of the Corporation legally available for the payment of dividends, dividends (each, a “Participating
Dividend”) on each date (each, a “Payment
Date”) that any dividend or other distribution is payable or made (whether in the
form of cash, securities, rights, warrants or other property) on or in respect of the Common Shares in an amount per Series A Share
equal to the aggregate amount of the dividend that would be payable on the Payment Date to such holder if such holder had held,
on the record date for the dividend payable on such Payment Date, in lieu of such Series A Share, the Reference Package (without
giving effect to any limitations on conversion of Series A Shares contained in these Articles). Each such dividend shall be paid
to the holders of record of the Series A Shares on the date fixed by the Board to determine the holders of the Series A Shares
entitled to receive such Participating Dividend, which date shall not be more than 60 days before the Payment Date and shall be
the same as the record date fixed by the Board to determine the holders of Common Shares entitled to receive a dividend on such
Payment Date.

 

		3.3	Certain Restrictions.

 

So long as any Series A Share
is outstanding, no dividend shall be paid on or in respect of the Common Shares or any Junior Shares unless all of the Participating
Dividends on all of the outstanding Series A Shares payable prior thereto or contemporaneously therewith shall have been, or shall
contemporaneously be, paid in full.

 

		3.4	Liquidation, Dissolution or Winding Up.

 

In the event of any voluntary
or involuntary liquidation, dissolution or winding up of the affairs of the Corporation (or its subsidiaries whose assets constitute
all or substantially all of the assets of the Corporation and its subsidiaries, taken as whole), whether in a single transaction
or Series of transactions, or other distribution of assets of the Corporation among its shareholders (collectively, a “Liquidation”),
the holders of Series A Shares shall be entitled, before any distribution or payment is made on any date to the holders of the
Common Shares or any Junior Shares in connection with such Liquidation, to be paid in full out of the property and assets of the
Corporation available for distribution to its shareholders an amount per Series A Share equal to (i) the Issue Price, plus (ii)
all declared and unpaid dividends thereon (the “Liquidation Preference”).
After payment to the holders of the Series A Shares of the Liquidation Preference so payable to them as above provided, the holders
of Series A Shares as such shall not be entitled to share in any further distribution of property or assets of the Corporation
among its shareholders for the purpose of winding up its affairs and shall have no rights or claims to any remaining property or
assets of the Corporation. In the event the property and assets of the Corporation available for distribution to the holders of
Series A Shares in connection with any Liquidation shall be insufficient to pay in full all amounts to which such holders are entitled
pursuant to this Article 3.4 and all liquidation preferences to which all Parity Shares are entitled in connection with such Liquidation,
the holders of Series A Shares and such Parity Shares shall participate rateably in respect of the distribution of such amounts
in accordance with the sums that would be payable on such distributions if all amounts so payable were paid in full. For the purposes
of this Article 3.4, any transaction that constitutes a Change in Control shall not be deemed to constitute a Liquidation.

 

    	 	5	 

     

    

 

		3.5	Voting.

 

		(a)	Each holder of Series A Shares shall be entitled to receive the same notice of and to attend all
meetings of the shareholders of the Corporation (except meetings at which only holders of another specified class or Series of
shares of the Corporation are entitled to vote separately as a class or series) as is provided to the holders of Common Shares,
as well as prior notice of all shareholders’ actions to be taken by shareholders of
the Corporation by legally available means in lieu of a meeting of shareholders, and shall have the right to vote (at the rate
of one vote in person or by proxy for each Common Share which the holder would be entitled to receive upon full conversion of the
holder’s Series A Shares into Common Shares under Article 3.8) with the holders of Common
Shares as if they were a single class of shares upon any matter submitted to a vote of shareholders, except those matters required
by law or the terms hereof to be submitted to a class vote of the holders of Series A Shares, in which case the holders of Series
A Shares shall vote as a separate class and have one vote for each Series A Share held.

 

		(b)	Notwithstanding any other provision of these Articles, the Corporation shall not give effect to
any voting rights of a holder of Series A Shares, and such holder of Series A Shares will not have the right to exercise voting
rights with respect to any Series A Shares voting with the Common Shares pursuant to this Article 3.5 (as opposed to class voting
of only holders of Series A Shares), to the extent that giving effect to such voting rights would result in such holder (together
with its “affiliates” (within
the meaning of that expression as used in the Exchange Act)) being deemed (for the purposes of such Act) to beneficially own in
excess of 9.99% of the number of Common Shares outstanding immediately after giving effect to such exercise or result in such holder
or any other person having beneficial ownership of, or control or direction over, directly or indirectly, securities of the Corporation
carrying 10% or more of the voting rights attached to all of the Corporation’s outstanding
voting securities.

 

		3.6	Amalgamations and Arrangements.

 

Subject to the provisions of
the Canada Business Corporations Act, with respect to any vote to approve an amalgamation or an arrangement that constitutes
a Change of Control that would result in an acquisition, exchange or cancellation of the Series A Shares and the Common Shares
in exchange for money, securities or other consideration paid or caused to be paid to the holders thereof on substantially the
same basis, the holders of the Series A Shares shall be entitled to vote, on an as converted basis (with such holders having one
vote in person or by proxy for each Common Share which the holder would be entitled to receive upon full conversion of the holder’s
Series A Shares into Common Shares under Article 3.8), together with the holders of the Common Shares and of any other Series of
Preferred shares of the Corporation, but not separately as a class or Series (unless, and only to the extent, that Article 3.15(b)
is applicable).

 

    	 	6	 

     

    

 

		3.7	Adjustments.

 

		(a)	Extraordinary Common Share Event. If the Corporation shall (i) issue any additional Common
Shares as all or part of a dividend or other distribution on or in respect of outstanding Common Shares, (ii) subdivide the outstanding
Common Shares into a greater number of Common Shares, or (iii) combine the outstanding Common Shares into a smaller number of Common
Shares, then and in each such case:

 

		(i)	the Conversion Price shall simultaneously be adjusted upon the happening of each such event by
multiplying the Conversion Price in effect immediately prior to such event by a fraction, the numerator of which is the number
of Common Shares issued and outstanding immediately prior to such event and the denominator of which is the number of Common Shares
issued and outstanding immediately after completion of such event; and

 

		(ii)	the Reference Package shall simultaneously be adjusted upon the happening of each such event by
multiplying the Reference Package in effect immediately prior to such event by a fraction, the numerator of which is the number
of Common Shares issued and outstanding immediately after completion of such event and the denominator of which is the number of
Common Shares issued and outstanding immediately prior to such event.

 

		(b)	Changes in the Common Shares. Subject to the provisions hereof requiring approval of certain
matters by holders of Series A Shares, if the issued and outstanding Common Shares are exchanged for or changed into other shares
or securities, cash or any other property as a result of any amalgamation, arrangement, merger, consolidation, reclassification
or other transaction, then in any such case thereafter, on any conversion of Series A Shares into Common Shares pursuant to these
rights, privileges, restrictions and conditions, the holder of each Series A Share so converted shall be entitled to receive the
kind and amount of shares and other securities and property (including cash) that a holder of the Reference Package would have
received as a result of such transaction if it was entitled to participate therein.

 

		(c)	Certificate of Conversion Adjustment. Adjustments made under this Article 3.7 shall be successive
and each resulting new Conversion Price and Reference Package shall continue in effect until the next adjustment (if any) is made
hereunder. Upon the occurrence of each such adjustment, the Corporation shall compute the adjustment in accordance with the terms
thereof and promptly furnish to each holder a certificate setting forth:

 

    	 	7	 

     

    

 

		(i)	the adjustment calculations in detail;

 

		(ii)	the facts upon which the adjustment and calculations are based;

 

		(iii)	the resulting new Conversion Price and Reference Package; and

 

		(iv)	if applicable, the number and kind of other securities or property which would be received pursuant
to Article 3.7(b) by holders of Series A Shares upon conversion of each Series A Share.

 

Upon written request from time
to time of any holder, the Corporation shall promptly furnish to such holder a certificate setting out the then applicable Conversion
Price and Reference Package and, if applicable, the number and kind of other securities or property which would be received pursuant
to Article 3.7(b) by holders of Series A Shares upon conversion of each Series A Share, together with a copy of any certificate
previously furnished pursuant to this Article.

 

		(d)	Resolution of Conversion Adjustment Questions. If at any time a question arises with respect
to adjustments or calculations made under this Article 3.7, such questions shall be determined by the auditors of the Corporation,
or, if requested in writing by a holder of Series A Shares or the Corporation prior to such determination by the auditors of the
Corporation by arbitration administered by the American Arbitration Association’s International
Center for Dispute Resolution in New York, New York in accordance with its International Arbitration Rules then currently in effect
by a single arbitrator who will be appointed in accordance with such rules and the determination of such arbitrator shall be binding
upon the Corporation and all shareholders of the Corporation.

 

		3.8	Conversion.

 

		(a)	Conversion at Holder’s Option. Subject to Article
3.8(j), commencing on the earlier of the date which is three months after the Issue Date and the Strategic Review Termination Date,
each holder of Series A Shares shall have the right (the “Holder Conversion
Right”) at any time to convert all or from time to time to convert any part of the
Series A Shares held by such holder into fully paid Common Shares.

 

		(b)	Holder Conversion Notice. The Holder Conversion Right may be exercised by any holder of
the Series A Shares giving notice (the “Holder Conversion Notice”)
in writing delivered to the Corporation. The Holder Conversion Notice shall be irrevocable (unless the Corporation fails to
effect the conversion as required pursuant to these Articles) and shall specify the number of Series A Shares (the “Specified
Shares”) the holder, wishes to be converted and the date upon which the conversion
is to occur, which shall not be less than, three Business Days and not more than 30 days after the date of the Holder Conversion
Notice.

 

		(c)	Conversion at Corporation’s Option. Subject to
Article 3.8(j), at any time after the earlier of the first anniversary of the Issue Date and the Strategic Review Termination Date,
the Corporation shall have the right (the “Corporation Conversion Right”)
at any time to convert all or from time to time to convert any part of the Series A Shares held by any holder into fully paid Common
Shares.

 

    	 	8	 

     

    

  

		(d)	Corporation Conversion Notice. The Corporation Conversion Right may be exercised by the
Corporation giving notice (the “Corporation Conversion Notice”)
in writing delivered to each holder of Series A Shares to be converted. The Corporation Conversion Notice shall specify the
number of Series A Shares (the “Specified Shares”)
held by any holder that the Corporation wishes to be converted, and shall specify the date upon which the conversion is to occur,
which shall not be less than 10 days and not more than 30 days after the date of the Corporation Conversion Notice.

 

		(e)	Automatic Conversion Upon Change of Control. In the event that any Change of Control is
consummated, subject to Article 3.8(j), each issued and outstanding Series A Share shall be converted into fully paid Common Shares.

 

		(f)	Notice of Change of Control.In the event any Change of Control is consummated,
the Corporation shall give notice in writing to each holder of Series A Shares at least 10 days prior to such consummation notifying
such holder of the Change of Control and the conversion of Series A Shares pursuant to Article 3.8(e).

 

		(g)	Conversion Ratio. Any conversion of Series A Shares into Common Shares shall be at a conversion
ratio (a number of Common Shares for each 1.0 Series A Share) equal to the Conversion Ratio.

 

		(h)	Procedure for Conversion.

 

		(i)	A holder of Series A Shares subject to conversion under this Article 3.8 shall transmit by facsimile,
or otherwise deliver, a notice of conversion in the form attached hereto as Exhibit I (the “Conversion
Notice”) duly and properly completed and executed by the holder of Series A Shares
subject to such conversion to the Corporation and to the designated transfer agent (the “Transfer
Agent”) for the Common Shares and, subject to Article 3.8(n), shall surrender the
certificate or certificates representing the shares being converted to the Corporation at its principal office (which certificate
or certificates shall, if required by the Corporation, have the transfer form on the back thereof duly endorsed in such manner
as may be required by the Corporation or be accompanied by such instruments of transfer or appropriate share transfer power acceptable
to the Corporation duly endorsed in such manner as may be required by the Corporation). Subject to compliance by the holder with
the conditions specified above and, if applicable, in Article 3.8(h)(ii), upon receipt by the Corporation of such a Conversion
Notice, the Corporation shall, as soon as practicable, but in any event within two Business Days, send via facsimile, a confirmation
of receipt of such Conversion Notice to such holder and the Transfer Agent, which confirmation shall constitute an instruction
to the Transfer Agent to process such Conversion Notice and issue Common Shares in connection with such conversion.

 

    	 	9	 

     

    

 

		(ii)	If a holder of Series A Shares subject to conversion under this Article 3.8 wishes that any Common
Shares deliverable in connection with the conversion be issued to, registered in the name of, or delivered to, any person other
than the holder of the Series A Shares converted, the holder must deliver to the Corporation written notice in form and execution
satisfactory to the Corporation directing the Corporation to arrange for the registration of such Common Shares in some other name
or names (the “Transferee”
or “Transferees”) and stating
the name and addresses of the Transferee or Transferees in which a certificate or certificates or other appropriate instruments
evidencing the shares or other property to which such holder is entitled upon such conversion is to be registered. In such event,
if required by any applicable law or by the Corporation, such notice shall be accompanied by a written declaration as to the residence
and share ownership status of the Transferee or Transferees and such other matters as may be required by such law or the Corporation
in order to determine the entitlement of such Transferee or Transferees to such Common Shares. The holder of Series A Shares shall
(A) pay any applicable security transfer taxes including, without limitation, any documentary, stamp, transfer or other taxes that
may be payable in respect of any transfer involved in the issuance or delivery of any shares or securities to any person other
than the holder of Series A Shares or (B) shall provide the Corporation evidence satisfactory to the Corporation that such taxes,
if any, have been paid.

 

		(iii)	All declared and unpaid dividends payable on any Series A Shares converted pursuant to this Article
3.8 during the period from the close of business on any record date for the payment of such dividend on such shares to the opening
of business on the date of payment of such dividend shall be payable to the holder of record of such shares as of such record date
notwithstanding such conversion.

 

		(iv)	Effective upon (A) in respect of Article 3.8(a), the date specified in the Holder Conversion Notice,
subject to compliance by such holder with the other conditions specified above; or (B) in respect of Article 3.8(c), the date specified
in the Corporation Conversion Notice; or (C) in respect of Article 3.8(e), the date of the Change of Control (and contingent upon
the consummation of such Change of Control) causing the automatic conversion (each of (A), (B), or (C), a “conversion
date”), the Series A Shares to be converted shall be converted. Such conversion
shall be deemed to have been made as of the close of business on such conversion date (except in respect of a conversion pursuant
to Article 3.8(e), which shall be effective immediately prior to the completion of the Change of Control) or at such other time
as the Board may in good faith determine and as may be approved by holders holding not less than a majority of the aggregate Series
A Shares then outstanding, being no later than the close of business on such date, and the holder of the Series A Shares converted
(or, if applicable, subject to compliance by the holder with the conditions specified above prior to such time, the Transferee
or Transferees directed by the holder) shall be deemed to have become and treated for all purposes as a holder or holders of record
of Common Shares (or, in the case of securities or property not in registered form, the owner or owners) on such applicable conversion
date, notwithstanding any delay in the delivery of a certificate or certificates representing the Common Shares into which such
Series A Shares have been converted, and the rights of the holder of such converted Series A Shares shall cease.

 

    	 	10	 

     

    

 

		(v)	Subject to compliance by the holder with the conditions specified above, as promptly as practicable
after (but in no event later than two Business Days after) the later of (A) the date of receipt by the Transfer Agent of the confirmation
of receipt of a Conversion Notice as contemplated in Article 3.8(h)(i) and (B) the conversion date, the Corporation shall deliver
or cause to be delivered to the holder of the Series A Shares converted or, if applicable, subject to compliance by the holder
with the conditions specified above, the Transferee or Transferees directed by the holder, at the address specified in the Conversion
Notice, a certificate or certificates evidencing the number of whole Common Shares, or other securities and property to which such
person or persons shall be entitled as provided herein, and the amounts described in Article 3.8(h)(iii). Alternatively, in lieu
of such delivery of a share certificate representing such Common Shares, the Corporation may arrange to have the Transfer Agent
credit the number of Common Shares issued upon conversion to the applicable balance account of the holder or its designee at The
Depository Trust Company as specified in the Conversion Notice.

 

		(i)	Partial Conversion. In the event some but not all of the Series A Shares represented by
a certificate or certificates surrendered by a holder are converted under this Article 3.8, subject to Article 3.8(n), the holder
of such Series A Shares shall be entitled to receive within three Business Days after the later of (i) the date of receipt by the
Transfer Agent of the confirmation of receipt of a Conversion Notice as contemplated in Article 3.8(h)(i) and (ii) the conversion
date, a new certificate representing the number of Series A Shares comprised in the certificate or certificates surrendered which
were not converted.

 

    	 	11	 

     

    

 

		(j)	Deferral of Conversion. The Corporation shall not effect any conversion of Series A Shares
and the right of holders of Series A Shares to receive Common Shares upon the conversion of any Series A Shares shall continue
but be deferred to the extent that, after giving effect to such conversion, the holder of such Series A Shares, together with such
holder’s “affiliates”
(within the meaning of that term as defined in the Exchange Act) would have acquired, through conversion of Series A Shares or
otherwise, beneficial ownership (“Beneficial Ownership”)
of a number of Common Shares that exceeds 9.99% of the number of Common Shares outstanding immediately after giving effect to such
conversion or result in such holder or any other person having beneficial ownership of, or control or direction over (“Beneficial
Ownership or Control”), directly or indirectly, securities of the Corporation carrying
10% or more of the voting rights attached to all of the Corporation’s outstanding voting
securities. For the purposes of this Article 3.8(j): (i) the number of Common Shares Beneficially Owned by a holder and its affiliates
shall include the number of Common Shares issuable on conversion of the Series A Shares with respect to which the determination
of such clause is being made, but shall exclude the number of Common Shares which would be issuable upon (A) conversion of the
remaining, non-converted Series A Shares Beneficially Owned by such holder or any of its affiliates and (B) exercise or conversion
of the unexercised of unconverted portion of any other securities of the Corporation subject to a limitation on conversion or exercise
analogous to the limitation contained in this clause Beneficially Owned by such holder or any of its affiliates; (ii) except as
set forth in the preceding clause (i), Beneficial Ownership shall be calculated in accordance with Section 13(d) of the Exchange
Act; (iii) Beneficial Ownership or Control shall be calculated in accordance with applicable United States and Canadian securities
laws, rules and regulations (and in the event the calculation under applicable United States and Canadian securities laws, rules
and regulations, respectively, may yield different results, the calculation shall be made under the applicable laws, rules and
regulations that reflects the greater number of Common Shares being beneficially owned, or controlled or directed by such holder
or person); (iv) in determining the number of outstanding Common Shares, a holder may rely on the number of outstanding Common
Shares as reflected in (A) the Corporation’s most recent Form 40-F or Form 6-K, as the
case may be, filed under the Exchange Act, (B) a more recent public announcement by the Corporation, or (C) any other notice by
the Corporation or the transfer agent for the Common Shares setting out the number of Common Shares outstanding; (v) in determining
the number of Common Shares Beneficially Owned by a holder and its affiliates, the Corporation may rely on the number of Common
Shares stated to be Beneficially Owned by the holder and its affiliates as reflected in (A) any filing made by the holder or any
of its affiliates under the Exchange Act, or (B) any other notice by the holder or any of its affiliates setting forth the number
of Common Shares so beneficially owned; (vi) in calculating the number of voting securities over which the holder or any other
person has Beneficial Ownership or Control, the Corporation may rely on the number of such securities stated to be beneficially
owned, or over which control or direction is exercised in (A) any filing made by the holder or any other person under applicable
Canadian securities laws, or (B) any other notice by the holder or any other person setting forth such information; (vii) for any
reason at any time, upon written request of any holder, the Corporation shall within one Business Day following receipt of such
request, confirm orally and in writing to such holder the number of Common Shares then outstanding; (viii) for any reason at any
time, upon written request of the Corporation, any holder shall within one Business Day following receipt of such notice, confirm
orally and in writing to the Corporation the number of Common Shares Beneficially Owned by the holder and its affiliates and the
number of voting securities of the Corporation over which the holder exercises Beneficial Ownership or Control, directly or indirectly;
and (ix) the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities
of the Corporation, including the Series A Shares, by such holder and its affiliates. Notwithstanding any other provision of these
Articles, any holder may, by notice in writing to the Corporation, elect (a “Filing
Election”) that the provisions of this Article 3.8(j) and Article 3.5(b) do not
apply to such holder provided that, prior to giving such notice, such holder has filed with the Toronto Stock Exchange a “Personal
Information Form” and such other documents and forms as the Toronto Stock Exchange
may require in relation to such holder’s investment in the Corporation and the Toronto
Stock Exchange shall have accepted such forms and documents for filing and notified the Corporation in writing that it has accepted
such forms and documents for filing. In the event any holder provides such notice, thereafter the provisions of this Article 3.8(j)
and Article 3.5(b) will not apply to such holder.

 

    	 	12	 

     

    

 

		(k)	No Fractional Shares. Notwithstanding any other provision hereof, no fractional shares shall
be issued upon any conversion of Series A Shares and the number of Common Shares to be issued shall be rounded down to the nearest
whole share.

 

		(l)	Redemption of Unconverted Series A Shares. In the event that any Series A Shares to be converted
pursuant to Article 3.8(e) are not converted as provided in Article 3.8(j), on or after the occurrence of the Change of Control
referred to in Article 3.8(e) the Corporation shall redeem the whole of the outstanding Series A Shares that are so not convened
from any one or more of the holders thereof on payment of an amount for each Series A Share to be redeemed equal to the number
of Common Shares to be issued and delivered on conversion of such Series A Shares pursuant to Article 3.8(e), multiplied by the
Change of Control Price, plus all declared and unpaid dividends on such Series A Shares redeemed (the whole being referred to as
the “Change of Control Redemption Amount”),
on the following conditions:

 

		(i)	the Corporation shall redeem all such Series A Shares;

 

		(ii)	subject to Article 3.8(l)(iii), the Corporation must give notice in writing to each person who
at the record date for the determination of holders entitled to receive notice is a holder of Series A Shares to be redeemed pursuant
to this Article 3.8(l) at least three Business Days before the date specified for redemption of the intention of the Corporation
to redeem such Series A Shares. Such notice may be given by mail or delivered by courier (or with the consent of any particular
holder, otherwise delivered) and (subject to the consent of any particular holder as referred to above) may be mailed, postage
prepaid or delivered, addressed to each holder at the last address of such holder as it appears on the records of the Corporation
or in the event of the address of the holder not so appearing then to the last known address of such holder. The accidental failure
to give such notice to one or more such holders will not affect the validity of such redemption. Such notice will set out the Change
of Control Redemption Amount and the date on which redemption is to take place, which date shall not be later than 10 days after
the date of consummation of the Change of Control, and if only part of the shares held by the person to whom it is addressed are
to be redeemed the number thereof to be redeemed. The Corporation will use its best efforts to redeem such Series A Shares on the
date of conversion of Series A Shares pursuant to Article 3.8(e), or as soon as is reasonably practicable thereafter. For greater
certainty, at the option of the Corporation, such notice may be given prior to the completion of a Change of Control, conditional
upon such completion, and may provide that redemption of the Series A Shares to be redeemed will occur on the date of consummation
of such Change of Control and either concurrently with such consummation or immediately prior to such consummation but conditional
upon such completion.

 

    	 	13	 

     

    

 

		(iii)	any person who is otherwise entitled to notice pursuant to Article 3.8(l)(ii) may waive such notice
or any of the requirements for that notice or the time for giving that notice and that waiver, whether given before or after redemption,
will be effective for all purposes of these Articles and will cure any failure in respect of such notice, including without limitation,
any failure to give that notice, to give any specified or required form of notice, or to give such notice by any particular dates;

 

		(iv)	on or after the date specified for redemption, the Corporation will pay or cause to be paid to
the order of the holders of the Series A Shares to be redeemed the Change of Control Redemption Amount on presentation and surrender
at the registered office of the Corporation or any other place designated in such notice of the certificates representing the Series
A Shares called for redemption and upon such payment such Series A Shares will be redeemed. Such payment will be made by cheque
payable in U.S. currency at par at any branch of the Corporation’s bankers in Canada
(or, with the consent of the holder, by any other means of immediately available funds). In the case of any dispute as to the determination
of the value of any consideration forming all or part of the Change of Control Price where the determination has not been finally
determined as provided in the definition of “Change of Control Price”
prior to the date specified for redemption, in lieu of paying the Change of Control Redemption Amount in full pursuant to this
Article 3.8(l)(iv), the Corporation will pay or cause to be paid, on account of the Change of Control Redemption Amount (A) any
part of the Change of Control Redemption Amount that is not disputed, plus (B) in respect of any consideration where the value
has been disputed, the value of such consideration as determined by the Board. Upon such payment, the Series A Shares will be redeemed.
Thereafter, if it is subsequently finally determined as provided in the definition of “Change
of Control Price” that the value of any consideration forming part of the Change
of Control Price that was so disputed is greater than the value of such consideration as determined by the Board, such that the
amount so paid on account of the Change of Control Redemption Amount was less than the Change of Control Redemption Amount, the
Corporation will forthwith after such determination pay or cause to be paid to the order of the holders of the Series A Shares
so redeemed the balance of the Change of Control Redemption Amount. From and after the date specified for redemption in any such
notice the holders of the Series A Shares called for redemption will cease to be entitled to dividends (if any) to which they may
otherwise be entitled and will not be entitled to exercise any of the rights of holders of Series A Shares in respect thereof unless
payment of the Change of Control Redemption Amount is not made upon presentation of certificates in accordance with the foregoing
provisions, in which case the rights of the holder of the said Series A Shares will remain unaffected. The Corporation will have
the right at any time before or after mailing (or delivery, as the case may be) of the notice of its intention to redeem any Series
A Shares to deposit the Change of Control Redemption Amount of the shares called for redemption represented by certificates as
have not as at the date of such deposit been surrendered by the holders thereof in connection with such redemption to a special
account in any major Canadian chartered bank or any major trust company in Canada, in each case as named in such notice, or in
such other notice, the Corporation may send in the same manner to such holders, to be paid without interest to or to the order
of the respective holders of the such Series A Shares called for redemption upon presentation and surrender to such bank or trust
company of the certificates representing such shares, and upon such deposit being made or upon the date specified for redemption,
whichever is later, the Series A Shares in respect whereof such deposit has been made will be redeemed and the rights of the holders
thereof after such deposit or such redemption date, as the case may be, will be limited to receiving without interest their proportionate
part of the total Change of Control Redemption Amount so deposited against presentation and surrender of the said certificates
held by them respectively. Any interest allowed on such deposit will belong to the Corporation.

 

    	 	14	 

     

    

 

		(m)	Reservation of Common Shares. The Corporation shall at all times reserve and keep available
out of its authorized but unissued Common Shares a sufficient number of its Common Shares to effect the conversion of all the then
outstanding Series A Shares and shall take such corporate action as may be necessary in order to enable and effect the full conversion
thereof in accordance with the provisions hereof.

 

		(n)	Book Entry. Unless the Board otherwise determines in good faith that the following will
result in undue expense to the Corporation or be contrary to applicable law, notwithstanding anything to the contrary set forth
herein, upon conversion of Series A Shares in accordance with the terms hereof, the holder thereof shall not be required to physically
surrender the certificate representing the Series A Shares to the Corporation unless (i) the full or remaining number of Series
A Shares represented by the certificate are being converted or (ii) a holder has provided the Corporation with prior written notice
(which notice may be included in a Holder Conversion Notice) requesting reissuance of Series A Shares upon physical surrender of
any Series A Shares. The holder and the Corporation shall maintain records showing the number of Series A Shares converted and
the dates of such conversions or shall use such other method, reasonably satisfactory to the holder and the Corporation, so as
not to require physical surrender of the certificate representing the Series A Shares upon each such conversion. In the event of
any dispute or discrepancy, such records of the Corporation establishing the number of Series A Shares to which the record holder
is entitled shall be controlling and determinative in the absence of manifest error. In connection with any transfer of all or
any portion of Series A Shares held by any holder (subject to Article 3.11), such holder may physically surrender the certificate
representing the Series A Shares to the Corporation, whereupon the Corporation will forthwith issue and deliver upon the order
of such holder a new certificate or certificates of like tenor, registered as such holder may request, representing in the aggregate
the remaining number of Series A Shares represented by such certificate. A holder and any assignee, by acceptance of a certificate,
acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of any Series A Shares, the number
of Series A Shares represented, by such certificate may be less than the number of Series A Shares stated on the face thereof.
Each certificate representing Series A Shares shall bear the following legend:

 

    	 	15	 

     

    

 

“ANY
TRANSFEREE OF THIS CERTIFICATE SHOULD CAREFULLY REVIEW THE TERMS OF THE RIGHTS, PRIVILEGES, RESTRICTIONS AND CONDITIONS ATTACHED
TO THE SERIES A SHARES REPRESENTED BY THIS CERTIFICATE, INCLUDING ARTICLE 3.8(n) THEREOF. THE NUMBER OF SERIES A SHARES REPRESENTED
BY THIS CERTIFICATE MAY BE LESS THAN THE NUMBER OF SERIES A SHARES STATED ON THE FACE HEREOF PURSUANT TO ARTICLE 3.8(n) OF THE
RIGHTS, PRIVILEGES, RESTRICTIONS AND CONDITIONS ATTACHED TO THE SERIES A SHARES REPRESENTED BY THIS CERTIFICATE.”

 

		(o)	Corporation’s Failure to Timely Convert. Subject
to compliance by the holder with the conditions specified above, in the event the Corporation fails to deliver to the holder of
any Series A Shares converted or required to be converted pursuant to this Article 3.8 a certificate or certificates or other security
or property as required pursuant to Article 3.8(h)(v) no later than four Business Days after the later of (i) receipt by the Corporation
and the Transfer Agent of a facsimile copy of a properly completed Conversion Notice as contemplated in Article 3.8(h)(i) and (ii)
the conversion date, then due to the uncertainty and difficulty in estimating a holder’s
damages for any delay in such delivery and as a reasonable estimate of such holder’s
additional actual loss due to such delay in delivery and not as a penalty, the Corporation shall, in addition to any rights of
indemnification or other remedies at law or in equity which the holder may otherwise have against the Corporation, pay damages
to such holder for each thirty day period, or portion thereof, after such fourth Business Day that such delivery is not effected
in an amount equal to 1.5% of the product of (A) the sum of the number of Common Shares represented by the certificate not delivered
to such holder on or prior to such fourth Business Day and to which such holder is entitled and (B) the Closing Sale Price of the
Common Shares on such fourth Business Day. For the purposes hereof, the “Closing
Sale Price” of the Common Shares means the last closing trade price of such Common
Shares on the principal securities exchange or trading market where such shares are listed or traded as reported by Bloomberg.

 

		3.9	Notices.

 

		(a)	The Corporation shall distribute to the holders of Series A Shares copies of all notices, materials,
annual and quarterly reports, proxy statements, information statements and any other documents that it distributes generally to
the holders of Common Shares, at such times and by such method as such documents are distributed to such holders of Common Shares.

 

		(b)	The Corporation will give written notice to each holder at least 10 days prior to the date on which
the Corporation closes its books or takes a record (i) with respect to any dividend or distribution upon the Common Shares, or
(ii) with respect to any pro rata subscription offer to holders of Common Shares to acquire, securities of the Corporation.

 

    	 	16	 

     

    

 

		(c)	The Corporation will use reasonable commercial efforts to give each holder at least 30 days, and
in any event will give each holder not less than ten days, prior notice of any pending Change of Control or Liquidation, provided
that such information shall be made known to the public prior to or in conjunction with such notice being provided to such holder.

 

		3.10	No Reissuance.

 

No shares of Series A Shares
acquired by the Corporation by reason of redemption, purchase, conversion or otherwise shall be reissued and any such shares shall
be cancelled.

 

		3.11	Non-transferrable.

 

No Series A Shares shall be transferred
without the prior consent of the directors expressed by a resolution of the Board and the directors shall not be required to give
any reason for refusing to consent to any proposed transfer.

 

		3.12	Redemption at Option of the Corporation.

 

Any time after the first anniversary
of the Issue Date, the Corporation shall have the right, exercisable at any time and from time to time, to redeem the whole or
any part of the outstanding Series A Shares from any one or more of the holders thereof as the Board may in its sole discretion
determine on payment of an amount for each Series A Share to be redeemed equal to the Issue Price, plus all declared and unpaid
dividends thereon (the whole being referred to as the “Redemption Amount”)
on the following conditions:

 

		(a)	the Corporation may redeem all or any of such Series A Shares held by any holder and need not redeem
such Series A Shares on a pro rata basis among all holders of such Series A Shares, but the Corporation shall give notice of such
redemption to all holders of Series A Shares;

 

		(b)	subject to clause (d), the Corporation must give notice in writing to each person who at the record
date for the determination of holders entitled to receive notice is a holder of Series A Shares to be redeemed pursuant to this
Article 3.12 at least 10 days before the date specified for redemption of the intention of the Corporation to redeem such Series
A Shares. Such notice may be given by mail or delivered by courier (or with the consent of any particular holder, otherwise delivered)
and (subject to the consent of any particular holder as referred to above) may be mailed, postage prepaid or delivered, addressed
to each holder at the last address of such holder as it appears on the records of the Corporation or in the event of the address
of the holder not so appearing then to the last known address of such holder. The accidental failure to give such notice to one
or more such holders will not affect the validity of redemption from other holders. Such notice will set out the Redemption Amount
and the date on which redemption is to take place and if only part of the shares held by the person to whom it is addressed are
to be redeemed the number thereof to be redeemed;

 

		(c)	notwithstanding any other provision in these Articles, the Corporation will not redeem Series A
Shares pursuant to this Article 3.12 to the extent that such redemption would render the Corporation insolvent after such redemption,
or would be contrary to the solvency requirements or other provision of applicable law;

 

    	 	17	 

     

    

 

		(d)	any person who is otherwise entitled to notice pursuant to clause (b) may waive such notice or
any of the requirements for that notice or the time for giving that notice and that waiver, whether given before or after redemption,
will be effective for all purposes of these Articles and will cure any failure in respect of such notice, including, without limitation,
any failure to give that notice, to give any specified or required form of notice, or to give such notice by any particular dates;

 

		(e)	on or after the date specified for redemption, the Corporation will pay or cause to be paid to
the order of the holders of the Series A Shares to be redeemed the Redemption Amount on presentation and surrender at the registered
office of the Corporation or any other place designated in such notice of the certificates representing the Series A Shares called
for redemption and upon such payment such Series A Shares will be redeemed. Such payment will be made by cheque at par at any branch
of the Corporation’s bankers in Canada (or, with the consent of the holder, by any other
means of immediately available funds, or by issuance to the holder of a promissory note of the Corporation payable upon demand
without interest, or by the distribution of property or assets of the Corporation or by any other means). If only part of the shares
represented by any certificate are to be redeemed, a new certificate for the balance will be issued at the expense of the Corporation.
From and after the date specified for redemption in any such notice the holders of the Series A Shares called for redemption will
cease to be entitled to dividends (if any) to which they may otherwise be entitled and will not be entitled to exercise any of
the rights of holders of Series A Shares in respect thereof unless payment of the Redemption Amount is not made upon presentation
of certificates in accordance with the foregoing provisions, in which case the rights of the holder of the said Series A Shares
will remain unaffected. The Corporation will have the right at any time after mailing (or delivery, as the case may be) of the
notice of its intention to redeem any Series A Shares to deposit the Redemption Amount of the shares called for redemption represented
by certificates as have not as at the date of such deposit been surrendered by the holders thereof in connection with such redemption
to a special account in any major Canadian chartered bank or any major trust company in Canada, in each case as named in such notice,
or in such other notice the Corporation may send in the same manner to such holders, to be paid without interest to or to the order
of the respective holders of the such Series A Shares called for redemption upon presentation and surrender to such bank or trust
company of the certificates representing such shares, and upon such deposit being made or upon the date specified for redemption,
whichever is later, the Series A Shares in respect whereof such deposit has been made will be redeemed and the rights of the holders
thereof after such deposit or such redemption date, as the case may be, will be limited to receiving without interest their proportionate
part of the total Redemption Amount so deposited against presentation and surrender of the said certificates held by them respectively.
Any interest allowed on such deposit will belong to the Corporation.

 

		(f)	Other than as specifically permitted by Article 3.8(l) and this Article 3.12, the Corporation may
not redeem any of the outstanding Series A Shares.

 

    	 	18	 

     

    

 

		3.13	Conversion Rights Upon Redemption.

 

If the Corporation delivers a
notice of redemption pursuant to Article 3.12, each holder of Series A Shares shall have seven days from the date of such notice
of redemption to notify the Corporation pursuant to Article 3.8(b) that the holder wishes the Corporation to convert all or part
of the Series A Shares held by the holder that would otherwise be subject to the notice of redemption. If any holder delivers a
Holder Conversion Notice within such seven-day period and otherwise complies with the requirements of these Articles in respect
of the conversion of the Specified Shares referred to in such Holder Conversion Notice, the redemption of such Specified Shares
shall be suspended pending the conversion of such Specified Shares and, if such Specified Shares are converted pursuant to the
provisions of Article 3.8, such Specified Shares shall not be redeemed. If a holder fails to deliver a Holder Conversion Notice
within such seven-day period, or otherwise fails to comply with the requirements of these Articles in respect of the conversion
of such Specified Shares, the right of such holder to exercise the Holder Conversion Right in respect of the Series A Shares held
by such holder that are subject to the notice of redemption shall cease and terminate; provided, however, that if the Corporation
fails to redeem all or part of the Series A Shares referred to in the notice of redemption, the Holder Conversion Right in respect
of the Series A Shares of such holder which are not redeemed as a result of such failure shall thereupon be reinstated. Notwithstanding
the foregoing, if a holder exercises the Holder Conversion Right, but any of the Specified Shares to be converted pursuant to Article
3.8(a) are not converted as provided in Article 3.8(j), the Corporation may not redeem Series A Shares that are not so converted
from the holder thereof under Article 3.12 for a period of 180 days from the date on which such conversion was to have occurred.

 

		3.14	Withholding Rights; Other Taxes.

 

		(a)	The Corporation shall be entitled to deduct and withhold from any distribution, consideration or
other amount payable under these Articles to any holder of Series A Shares such amounts as the Corporation is required to deduct
and withhold with respect to such payment under the Income Tax Act (Canada), the United States Internal Revenue Code
of 1986 or any provision of provincial, state, local or foreign tax law, in each case as amended or succeeded. To the extent
that amounts are so withheld, such withheld amounts shall be treated for all purposes as having been paid to the holder of the
Series A Shares in respect of which such deduction and withholding was made, provided that such withheld amounts are actually remitted
to the appropriate taxing authority. To the extent that the amount so required or permitted to be deducted or withheld from any
payment to any holder of Series A Shares exceeds the cash portion of any consideration otherwise payable to such holder, the Corporation
is authorized to sell or otherwise dispose of such portion of the consideration as is necessary to provide sufficient funds to
the Corporation to enable it to comply with such deduction or withholding requirement and the Corporation shall notify such holder
and remit to such holder any unapplied balance of net proceeds of such sale. If the Corporation becomes aware that it must make
any deduction and withholding contemplated in this Article 3.14 (or that there is a change in the rate or basis for such withholding),
it will promptly notify the affected holders. As soon as practicable after making any deduction and withholding contemplated in
this Article 3.14 and remission of any withheld amount to the appropriate taxing authority the Corporation will deliver to any
affected holder evidence of such remission.

 

    	 	19	 

     

    

 

		(b)	The Corporation will pay in accordance with applicable law any stamp or documentary taxes or similar
levies (other than transfer taxes) that arise from any payment made hereunder or in connection with the rights, privileges, restrictions
and conditions set out herein. The Corporation shall promptly notify any affected holder of any such payment and deliver to any
affected holder evidence of such payment.

 

		3.15	Specific Matters Requiring Approval of Holders of Series
A Shares.

 

So long as any Series A Shares
are issued and outstanding, the Corporation shall only undertake or proceed with any of the following matters with the prior approval
of shareholders of the Corporation holding at least 50% of the issued and outstanding Series A Shares (which approval may be given
in writing signed in one or more counterparts):

 

		(a)	authorize the creation of, or allot or issue (including by reclassification) any preferred shares
of the Corporation of any class or Series that ranks in priority to or on a parity with the Series A Shares in respect of dividends
or in the distribution of assets on any liquidation, dissolution or winding up of the Corporation or its subsidiaries; or

 

		(b)	amend or repeal the Articles or by-laws of the Corporation, or any provision thereof, in any manner
which would alter or change the rights, privileges, restrictions and conditions attached to the Series A Shares or avoid or seek
to avoid the observance or performance of any of the terms to be observed or performed hereunder, including preferences, rights,
privileges, powers, restrictions and conditions contained, herein, so as to affect the holders of Series A Shares adversely, regardless
of how such amendment is effected, including by way of merger, consolidation, amalgamation or other voluntary action of the Corporation,
other than an acquisition, exchange or cancellation of Series A Shares in exchange for money, securities or other consideration
which constitutes a Change of Control as contemplated in Article 3.6; or

 

		(c)	authorize the creation of or issue any securities, where such authorization or issuance would result
in a breach of any of the terms, conditions or provisions of these rights, privileges, restrictions or conditions; or

 

		(d)	increase or decrease the authorized number of Preferred shares of the Corporation or Series A Shares.

 

		3.16	Lost or Stolen Certificates.

 

Upon receipt by the Corporation
of evidence satisfactory to the Corporation, acting reasonably, of the loss, theft, destruction or mutilation of any certificates
representing Series A Shares, and, in the case of loss, theft or destruction, the holder executing an agreement satisfactory to
the Corporation, acting reasonably, agreeing to indemnify the Corporation from loss incurred by it in connection with such certificates
and, in the case of mutilation, upon surrender of the mutilated certificate, the Corporation shall execute and deliver one or more
new share certificate(s) of like tenor and date; provided, however, the Corporation shall not be obligated to re-issue any share
certificate if the holder contemporaneously requests the Corporation to convert the Series A Shares represented by such certificate
into Common Shares.

 

    	 	20	 

     

    

 

		3.17	Failure or Indulgence Not Waiver.

 

No failure or delay on the part
of a holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power
or privilege.

 

		3.18	Notice.

 

Whenever notice or other communication
is required to be given under these rights, privileges restrictions and conditions, unless otherwise provided herein, such notice
shall be given in the manner provided for notices in the Securities Purchase Agreement dated July 23, 2008 and made among the Corporation
and the purchasers of Series A Shares.

 

		3.19	Preferred Share Register.

 

The Corporation shall maintain
at its principal executive offices (or such other office or agency of the Corporation as it may designate by notice to the holders),
a register for the Series A Shares, in which the Corporation shall record the name and address of the persons in whose name the
Series A Shares have been issued, as well as the name and address of each permitted transferee. The Corporation may treat the person
in whose name any Series A Share is registered on the register as the owner and holder thereof for all purposes, notwithstanding
any notice to the contrary, but in all events recognizing any properly made transfers.

 

		3.20	Currency.

 

All dollar amounts referred to herein shall be in
United States dollars (U.S.$).

 

    	 	21	 

     

    

 

EXHIBIT I

 

CORREVIO PHARMA CORP. CONVERSION NOTICE

 

Reference
is made to the Articles of Correvio Pharma Corp., as amended from time to time (the “Articles”).
In accordance with and pursuant to the Articles, the undersigned hereby elects to convert the number of Series A Preferred Shares
without par value (the “Preferred Shares”)
of Correvio Pharma Corp., a corporation existing under the laws of Canada (the “Company”),
indicated below into Common Shares without par value (the “Common Shares”)
of the Company, as of the date specified below.

 

	 	Date of Conversion:	 

 

	 	Number of Preferred Shares to be converted:	 

 

	 	Stock certificate no(s). of Preferred Shares to be converted:	 

 

	 	Tax ID Number (If applicable):	 

 

	 	Please confirm the following information:	 

 

	 	Conversion Ratio:	 

 

	 	Number of Common Shares to be issued:	 

 

Notwithstanding
anything to the contrary contained herein, this Conversion Notice shall constitute a representation by the holder of Preferred
Shares submitting this Conversion Notice that, after giving effect to the conversion provided for in this Conversion Notice, such
holder (together with its affiliates) will not have beneficial ownership (together with the beneficial ownership of such person’s
affiliates) of a number of Common Shares which exceeds 9.99% of the number of Common Shares outstanding immediately after giving
effect to such conversion or result in such holder or any other person having beneficial ownership of, or control or direction
over, directly or indirectly, securities of the Company carrying 10% or more of the voting rights attached to all of the Company’s
outstanding voting securities, determined in accordance with the provisions of the rights, privileges, restrictions and conditions
attached to the Preferred Shares, except to the extent that the holder of Preferred Shares has made a “Filing
Election” as defined in the Articles.

 

Please issue the Common Shares
into which the Preferred Shares are being converted in the following name and with the following address:

 

	 	Issue to:	 

 

	 	Address:	 

 

	 	Telephone Number:	 

 

	 	Facsimile Number:	 

 

	 	Authorization:	 

 

	 	By:	 	 
	 	 	 	 
	 	Title:	 	 
	 	 	 	 
	 	Dated:	 	 

 

	 	Account Number (if electronic book entry transfer):	 

 

	 	Transaction Code Number (if electronic book entry transfer):	 

 

[NOTE TO HOLDER - THIS FORM MUST BE SENT CONCURRENTLY
TO TRANSFER AGENT]

 

     

     

    

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges this Conversion
Notice and hereby directs [Transfer Agent] to issue the above indicated number of Common Shares in accordance with the
Irrevocable Transfer Agent Instructions dated ________________,______ from the Company and acknowledged and agreed to by [Transfer
Agent].

 

	CORREVIO PHARMA CORP.	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

     

     

    

 

SCHEDULE 2

 

ITEM 7 - OTHER PROVISIONS

 

		(1)	The directors may, within the maximum number permitted by the Articles, appoint one or more additional
directors, who shall hold office for a term expiring not later than the close of the next annual general meeting of the shareholders,
but the total number of directors so appointed may not exceed one-third of the number of directors elected at the previous annual
general meeting of shareholders.

 

		(2)	Meetings of the shareholders may be held anywhere in Canada or in New York, New York, Seattle,
Washington, San Francisco, California, Los Angeles, California, San Diego, California or Boston, Massachusetts.

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