Document:

Exhibit 4.5

 

CONFIDENTIAL TREATMENT REQUESTED UNDER RULE
24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

 [...***...] INDICATES OMITTED MATERIAL THAT IS THE SUBJECT
OF A CONFIDENTIAL TREATMENT REQUEST FILED SEPARATELY WITH THE COMMISSION. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE
COMMISSION

 

Exclusive License and Supply Agreement

 

by and between

 

Cardiome Pharma Corp. and Correvio International
Sárl

 

and

 

SteadyMed Ltd.

 

     

    CONFIDENTIAL

    

 

TABLE OF CONTENTS

 

	Article 1 DEFINITIONS	1
	 	 
	Article 2 LICENSE	13
	 	 
	Article 3 JOINT STEERING COMMITTEE	18
	 	 
	Article 4 MANUFACTURING AND SUPPLY	20
	 	 
	Article 5 REGULATORY MATTERS	26
	 	 
	Article 6 COMMERCIALIZATION	30
	 	 
	Article 7 FINANCIAL TERMS OF LICENSE	35
	 	 
	Article 8 PAYMENTS; RECORDS; AUDITS	36
	 	 
	Article 9 BUSINESS ETHICS	39
	 	 
	Article 10 CONFIDENTIALITY	39
	 	 
	Article 11 INTELLECTUAL PROPERTY	42
	 	 
	Article 12 WARRANTIES; INDEMNITIES; INSURANCE	47
	 	 
	Article 13 INDEMNIFICATION; INSURANCE	51
	 	 
	Article 14 TERM AND TERMINATION	53
	 	 
	Article 15 MISCELLANEOUS	57

 

	Schedule 1.6(a)	 
	 	 
	Schedule 1.6(b)	 
	 	 
	Schedule 1.34	 
	 	 
	Schedule 1.107	 
	 	 
	Schedule 10.5	 

 

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Exclusive License and Supply Agreement

 

This Exclusive License
and Supply Agreement (this “Agreement”) is made as of 28th June 2015 (the “Effective Date”),
by and between Cardiome Pharma Corp., a company duly incorporated under the
laws of Canada, with its principal place of business at 1441 Creekside Drive, 6th Floor, Vancouver BC V6J 4S7 and Correvio International
Sàrl, a company duly incorporated and existing under the laws of Switzerland, with its principal place of business at Rue
des Alpes 21, 1201 Geneva, Switzerland (hereinafter collectively referred to as “Cardiome”), and SteadyMed
Ltd., a company organized and existing under the laws of Israel with its principal place of business at 5 Oppenheimer
Street, Rehovot 7670105, Israel (“SteadyMed”). Each of Cardiome and SteadyMed is referred to individually as
a “Party” and collectively as the “Parties”.

 

WITNESSETH:

 

WHEREAS, Cardiome manufactures
and markets several pharmaceutical products worldwide;

 

WHEREAS, SteadyMed is engaged
in the development of its Trevyent® (Patch Pump® enabled treprostinil) therapeutic candidate for the treatment of pulmonary
arterial hypertension (the “Product”, as defined in more detail below) and is the owner of patent rights and other
intellectual property related thereto; and

 

WHEREAS, Cardiome desires
to obtain from SteadyMed an exclusive license to register and market the Product in certain regions outside the United States of
America and to have SteadyMed supply Cardiome’s requirements of the Product for such purpose, and SteadyMed is willing to
grant such license and supply such Product; in each case, on the terms and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration
of the foregoing premises, the Parties, intending to be legally bound, do hereby agree as follows:

 

Article
1

 

DEFINITIONS

 

The following terms shall
have their indicated meanings when used in this Agreement:

 

1.1        “Accounting
Period” means a Quarter or Year, as applicable.

 

1.2        “Accounting
Standards” means U.S. generally accepted accounting standards consistently applied throughout the organization of a Party.

 

1.3        “Affiliate”
means, with respect to a Party, any company or other business entity controlled by, controlling, or under common control with a
Party hereto, for as long as such control exists. As used in this Section, “control” shall mean: (a) possession, directly
or indirectly, of the power to direct the management and policies of such company or entity, whether through ownership of voting
securities or by contract relating to voting rights or corporate governance; or (b) direct or indirect beneficial ownership of
more than 50% (or such lesser percentage that is the maximum allowed to be owned by a foreign corporation in a particular jurisdiction)
of the voting share capital in such company or entity.

 

     

    CONFIDENTIAL

    

 

1.4        “After-Acquired
Third-Party IP” means (a) any Patent of a Third Party with respect to which SteadyMed first acquires Control after the
Effective Date and which would fall within the definition of Platform Patents or Product-Specific Patents, or (b) any Information
of a Third Party with respect to which SteadyMed first acquires Control after the Effective Date and which would fall within the
definition of SteadyMed Know-How; in each case, under an agreement that would obligate SteadyMed to pay royalties and/or milestone
payments to such Third Party were Cardiome, its Affiliates, Sublicensees or Subdistributors to use or practice such After-Acquired
Third Party IP in the use, sale, offer for sale, import or Commercialization of Product or Infusion set.

 

1.5        “Anti-Corruption
Laws” means the U.S. Foreign Corrupt Practices Act, as amended, the UK Bribery Act 2010, as amended, the Organization
for Economic Co-operation and Development (OECD) Convention on combating bribery of foreign public officials in international business
transactions, and any other applicable anti-corruption laws.

 

1.6        “Anti-Corruption
Policy” means (a) with respect to Cardiome, the Cardiome Pharma Corp. Code of Conduct, a copy of which, in its existing
form as of the Effective Date, is attached hereto as Schedule 1.6(a); and (b) with respect to SteadyMed, the SteadyMed Code
of Conduct, a copy of which, in its existing form as of the Effective Date, is attached hereto as Schedule 1.6(b). Upon
either Party’s written request at any time and from time to time during the Term, the other Party shall promptly provide
the requesting Party with a copy of its then-current Anti-Corruption Policy (if it differs in any material respect from Schedule
1.6(a) or Schedule 1.6(b), as applicable).

 

1.7        “API”
means the active pharmaceutical ingredient known as treprostinil sodium [...***...].

 

1.8        “Applicable
Law” means the applicable provisions of any and all laws, treaties, statutes, rules, regulations, administrative codes,
guidance, ordinances, judgments, decrees, directives, injunctions, orders, permits (including Regulatory Approvals and Pricing
Approvals) of or from any Governmental Agency having jurisdiction over or related to the subject item or subject person as they
may be in effect from time to time.

 

1.9        “Approved
Labeling” means the approved labeling for Product or Infusion set as set forth in the applicable Regulatory Approval
in a particular jurisdiction.

 

1.10       “Average
Net Selling Price” means, for a particular Supplied Item sold in a country of the Territory during a Quarter, the weighted
(by unit sales volume) average net selling price per unit of such Supplied Item in cash-only, arm’s-length sales of such
Supplied Item to Third Parties, when such Supplied Item is sold alone or only with other Supplied Item(s) (and, in each case, not
with any product that is not a Supplied Item), in such country during such Quarter.

 

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1.11        “Average
Transfer Price” means, for a particular Supplied Item sold by Cardiome, its Affiliates and Sublicensees in a country
of the Territory during a Quarter, the weighted average Transfer Price (by SKU or concentration), determined in accordance with
the first paragraph of Section 4.6(a) and without regard to Section 4.6(a)(ii), of such Supplied Item for the total
unit volume of such Supplied Item sold by Cardiome, its Affiliates and Sublicensees in the entire Territory during such Quarter,
with such total unit volume determined in accordance with applicable Accounting Standards.

 

1.12        “Bankruptcy
Laws” has the meaning provided in Section 15.10.

 

1.13        “Bright
Stock” has the meaning provided in Section 4.2.

 

1.14        “Cardiome
House Marks” means (i) the Cardiome trade name and logo, and (ii) any pending or future Trademark registrations, applications
and unregistered Trademark rights, in each case, relating to the Cardiome trade name and/or logo.

 

1.15        “Cardiome
Margin” means, for a particular Supplied Item sold by Cardiome or its Affiliates in a country of the Territory in a given
Quarter, the quotient of the amount determined using the fraction A/B, where:

 

		A =	[...***...]; and

 

		B =	[...***...].

 

1.16        “CFR”
means the United States Code of Federal Regulations.

 

1.17        “COGS”
means SteadyMed’s fully-burdened aggregate cost of Manufacturing, or having Manufactured, a particular Supplied Item, determined
and recorded in accordance with Accounting Standards, consistently applied throughout the SteadyMed organization for financial
reporting purposes, calculated on a per-unit (by SKU) basis. Such costs include, without limitation: (a) in the case of a Supplied
Item, raw materials, API, Drug Product, Devices, Device components or other materials supplied by a Third Party, the amounts paid
by SteadyMed or its Affiliate to such Third Party for the applicable items (without mark-up of the Third Party’s invoice);
(b) in the case of other Manufacturing activities performed by a Third Party, the amounts actually paid by SteadyMed or its Affiliate
to such Third Party for performance of such activities (without mark-up of the Third Party’s invoice); (c) in the case of
Manufacturing activities performed by SteadyMed or its Affiliate, SteadyMed’s or its Affiliate’s costs of performing
such activities. For clarity, these costs include: (i) standard unit cost of such Supplied Item, consisting of direct materials,
direct labor, and production overhead (including depreciation) directly attributable to such Supplied Item, at standard; and (ii)
cost variances, consisting of direct materials variances, including material usage variances and purchase price variances, direct
labor variances, and production overhead variances, including variable and fixed production overhead spending variances. In no
circumstances, however, may the indirect overhead costs defined in (d) exceed [...***...], excluding such indirect overhead costs,
and will be lowered based upon increased volume of purchases on a sliding scale (e.g., [...***...]. The JSC will discuss indirect
overhead costs on an annual basis.

 

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1.18        “Commercialization”
means marketing, Promoting, detailing, offering for sale, selling and distributing the Product or Infusion Set, as applicable,
and other similar activities related to the commercial sale of the Product or Infusion Set, but excluding for clarity all
activities relating to research, development or manufacturing of Product or Infusion Set. When used as a verb, “Commercializing”
means engaging in Commercialization, and “Commercialize” and “Commercialized” shall have corresponding
meanings.

 

1.19        “Commercialization
Standards” has the meaning provided in Section 6.9(a).

 

1.20        “Commercially
Reasonable Efforts” means, with respect to a Party’s obligations under this Agreement to Manufacture, supply, register,
Commercialize, or perform any other activity related to, Product, the level of reasonable, diligent, good faith efforts and resources
that comparable companies (defined below) typically devote to products owned by them that are at a similar stage in their development
or product life and are of similar market potential to the Product. As used in this Section, “comparable companies”
shall mean companies in the pharmaceutical or biotechnology industry of a size and stage of development similar to that of such
Party, including having human pharmaceutical product candidates or products in a similar stage of development or product life to
the Product.

 

1.21        “Competing
Product” means a pharmaceutical product for the treatment of pulmonary arterial hypertension.

 

1.22        “Competitive
Infringement” of a SteadyMed Patent means any infringement of such SteadyMed Patent in a country of the Territory, wherein
[...***...].

 

1.23        “Confidential
Information” of a Party means any and all information or material (including, but not limited to, Information) that is
disclosed, provided or made available by or on behalf of such Party (the “Disclosing Party”) or its Affiliates
to the other Party (the “Receiving Party”) or its Affiliates, whether before or after the Effective Date, in
connection with this Agreement or the transactions contemplated hereby; in each case, whether in oral, visual, electronic, written
or other form. Without limiting the generality of the foregoing, Confidential Information of a Party shall include all “Confidential
Information” (as such term is defined in the Confidentiality Agreement) disclosed, provided or made available by or on behalf
of such Party or any of its Affiliates to the other Party or its Affiliates (or any of their respective Representatives) pursuant
to the Confidentiality Agreement.

 

1.24        “Confidentiality
Agreement” means the Confidentiality and Non-Disclosure Agreement between Cardiome Pharma Corp. and SteadyMed dated May
1, 2015.

 

1.25        “Contract
Manufacturer” means:

 

(a)        the
FP Manufacturer in the case of Finished Product; and

 

(b)        the
FIS Manufacturer in the case of Finished IS.

 

1.26        “Control”
or “Controlled” means, with respect to any Information, Patent or other intellectual property rights, possession
by a Party of the ability (whether by ownership, license or otherwise) to grant access to, to grant use of, or to grant a license
or a sublicense of or under such Information, Patents or intellectual property rights without violating the terms of any agreement
or other arrangement with any Third Party.

 

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1.27        “Copyrights”
means all copyrights, copyright registrations and applications therefor, and all other rights corresponding thereto throughout
the world. For the avoidance of doubt, the term “Copyrights” excludes Patents, Information and Trademarks.

 

1.28        “Defective
Product” has the meaning provided in Section 4.9(a).

 

1.29        “Delivery
Date” means, with respect to a Supplied Item Manufactured by or on behalf of SteadyMed for Cardiome hereunder and released
by SteadyMed to Cardiome in accordance with the Quality Agreement, the date of delivery of such Supplied Item to Cardiome or its
designated carrier at the applicable Manufacturing Facility.

 

1.30        “Device”
means SteadyMed’s proprietary PatchPump® drug administration device for intravenous and subcutaneous delivery of drugs.

 

1.31        “Disclosing
Party” has the meaning provided in Section 1.23.

 

1.32        “Drug
Product” means any formulation or presentation of the API, in any dosage strength or concentration, for intravenous and
subcutaneous administration.

 

1.33        “EMA”
means the European Medicines Agency and any successor agency thereto.

 

1.34        “Europe”
means the states, territories and/or countries listed in Schedule 1.34 hereto.

 

1.35        “Export
Control Laws” has the meaning provided in Section 2.7(a).

 

1.36        “FDA”
means the United States Food and Drug Administration and any successor agency thereto.

 

1.37        “FFDCA”
means the United States Federal Food, Drug, and Cosmetic Act, as amended.

 

1.38        “Field”
means the treatment of pulmonary arterial hypertension (PAH) (WHO Group 1).

 

1.39        “Finished
IS” means a carton containing a specified number of Infusion Sets and the applicable Regulatory Authority-approved package
insert (if any), packaged and labeled in final form as described in the applicable Regulatory Approval for Finished Product, suitable
for commercial sale and distribution for use with Finished Product in the Field in the Territory.

 

1.40        “Finished
Product” means a carton containing a Device pre-filled with a specified quantity of Drug Product and the applicable Regulatory
Authority-approved package insert, packaged and labeled in final form as described in the applicable Regulatory Approval for Finished
Product, suitable for commercial sale and distribution in the Field in the Territory.

 

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1.41        “FIS
Manufacturer” means SteadyMed’s Finished IS contract manufacturer. As of the Effective Date, the FIS Manufacturer
is Ypsomed AG.

 

1.42        “FIS
Manufacturing Facility” means the FIS Manufacturer’s manufacturing facility for Finished IS located at Phillips-Medisize
Corporation, Av. La Montãna, 76220 Santiago de Querétaro, Querétaro, Mexico.

 

1.43        “Forecast”
has the meaning set forth in Section 4.5(b).

 

1.44        “FP
Manufacturer” means SteadyMed’s Finished Product contract manufacturer. As of the Effective Date, the FP Manufacturer
is Bespak Europe Ltd.

 

1.45        “FP
Manufacturing Facility” means the FP Manufacturer’s manufacturing facility for Finished Product located in Bergenway,
King’s Lynn, Norfolk PE30 2JJ, United Kingdom

 

1.46        “GMP”
means:

 

(a)        the
current good manufacturing practices and standards for the production of drugs and finished pharmaceuticals, as set forth in 21
CFR Sections 210 and 211 and as interpreted by relevant ICH guidelines; in each case, as amended from time to time; and

 

(b)        the
current good manufacturing practices and standards for the manufacture of medicinal products and active substances used as starting
materials as set forth in the applicable European Community law and guidance, including the applicable good manufacturing practices
set forth in European Community Directive 2003/94/EC, the Rules Governing Medicinal Products in the European Union, Volume 4 (Medicinal
Products for Human and Veterinary Use: Good Manufacturing Practice) and European Community Directive 2001/83/EC, all relevant implementations
of such directives and relevant guidelines, as interpreted by relevant ICH guidelines; in each case, as amended from time to time.

 

1.47        “Government
Agency” means any supranational, national, regional, state or local governmental agency, authority, department, bureau,
commission, court, council, administrative body or other governmental entity, including, without limitation, any Regulatory Authority.

 

1.48        “Government
Official” means any individual employed by or acting on behalf of a government, government- controlled entity or public
international organization; any political party, party official or candidate; any individual who holds or performs the duties of
an appointment, office or position created by custom or convention; or any individual who holds himself out to be the authorized
intermediary of any of the foregoing.

 

1.49        “ICH”
means the International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use.

 

1.50        “Improvement”
means any Invention that: (a) is made either (i) solely by one or more employees, consultants or contractors of Cardiome or any
of its Affiliates, or (ii) jointly by one or more employees, consultants or contractors of Cardiome or any of its Affiliates and
one or more employees, consultants or contractors of SteadyMed or any of its Affiliates; and (b) constitutes an improvement or
modification to the Product or any of its components, including any new formulation, dosage, dosage form, delivery, method of use,
indication or line extension of the Product or any component thereof.

 

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1.51        “Information”
means tangible and intangible techniques, technology, practices, trade secrets, inventions (whether patentable or not), methods,
knowledge, know-how, skill, experience, test data and results (including pharmacological, toxicological and clinical test data
and results), analytical and quality control data, results or descriptions, software and algorithms, compositions of matter, and
physical, biological or chemical material; that, in each case, are not in the public domain.

 

1.52        “Infusion
Set” means SteadyMed’s medical device for use with the Product that connects the Device incorporated in the Product
to the patient’s body, either subcutaneously or intravenously.

 

1.53        “Initial
Forecast” has the meaning provided in Section 4.5(a).

 

1.54        “Initial
Forecast Period” means the period beginning on the Launch Date and ending on the last day of the fourth (4th) full Quarter
following the Launch Date.

 

1.55        “Initial
Sales Force Training” has the meaning provided in Section 6.10(a).

 

1.56        “Interested
Persons” has the meaning provided in Section 9.1(d).

 

1.57        “Invention”
means any invention or discovery, whether or not patentable, made in the course and as a result of the conduct of the activities
contemplated by this Agreement.

 

1.58        “Joint
Steering Committee” or “JSC” has the meaning set forth in Section 3.1.

 

1.59        “Latent
Defect” means a defect that causes a Supplied Item to fail to conform to the applicable Specifications, which defect
is not discoverable upon reasonable physical inspection and testing performed pursuant to Section 4.9(a) but is discovered
at a later time (e.g., in the course or as a result of long-term stability studies).

 

1.60        “Launch
Date” means the date of the first sale of Finished Product by Cardiome or any of its Affiliates or Sublicensees to a
Third Party (other than a Sublicensee) anywhere in the Territory following receipt of the first Regulatory Approval and Pricing
Approval for Finished Product and/or finished Bright Stock in the jurisdiction of such sale.

 

1.61        “Launch
Period” means the period beginning on the Launch Date and ending on the last day of the second full Quarter following
the Launch Date.

 

1.62        “LIBOR”
means the London Interbank Offered Rate for deposits in U.S. dollars having a maturity of one (1) month published by the British
Bankers’ Association, as adjusted from time to time on the first (1st) London business day of each month.

 

1.63        “Major
Market” means any of Canada, France, Germany, Italy and the United Kingdom.

 

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1.64        “Manufacture”
(including, with correlative meanings, “Manufactured” and “Manufacturing”) means any steps, processes and
activities necessary to produce Product, including without limitation, the manufacturing, processing, formulation, fill/finish,
handling, labeling, packaging, inspection, quality control testing, release and storage of Product, and SteadyMed’s oversight
of said steps, processes and activities.

 

1.65        “Manufacturing
Facility” means:

 

(a)        the
FP Manufacturing Facility in the case of Finished Product; and

 

(b)        the
FIS Manufacturing Facility in the case of Finished IS.

 

1.66        “Manufacturing
Standards” means GMP and/or QSR, as applicable to a particular Supplied Item.

 

1.67        “Middle
East” means [...***...].

 

1.68        “MSL”
means a medical science liaison for the Territory or any portion of the Territory.

 

1.69        “Net
Sales” means the gross amounts invoiced by Cardiome and its Affiliates for sales of Supplied Item to Third Parties in
the Territory, less the following deductions to the extent actually incurred, allowed, paid, taken, accrued or otherwise specifically
attributable to sales of Supplied Item by the selling party:

 

(a)        refunds
or credits actually given to purchasers for rejections or returns of Supplied Item, including for recalls, damaged goods and billing
errors;

 

(b)        [...***...],
to the extent separately set forth in the applicable invoice;

 

(c)        normal
and customary quantity, trade and cash discounts actually allowed or taken with respect to sales of Supplied Items (to the extent
not already reflected in the amount invoiced);

 

(d)        rebates
(including pursuant to governmental regulation), charge-backs, retroactive price reductions, credits or allowances actually allowed
or taken;

 

(e)        [...***...]
to the extent separately itemized on the invoice [...***...]; and

 

(f)        [...***...].

 

In no event shall any particular
amount of deduction identified above be deducted more than once in calculating Net Sales (i.e., no “double counting”
of reductions). All discounts, allowances, credits, rebates, and other deductions shall be fairly and equitably allocated between
Supplied Item and other products of Cardiome and its Affiliates and Sublicensees such that Supplied Item does not bear a disproportionate
portion of such deductions. Sales of Supplied Item between Cardiome and any of its Affiliates or Sublicensees for resale shall
be excluded from the computation of Net Sales, but the subsequent resale of Supplied Item to a Third Party shall be included within
the computation of Net Sales. Supplied Item distributed as free promotional samples, donated for charitable purposes, or used in
research, development or registration activities shall be disregarded in determining Net Sales.

 

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1.70        “Non-Commercial
Quantity” has the meaning provided in Section 4.5(c).

 

1.71        “Non-Commercial
Transfer Price” has the meaning provided in Section 4.6(a)(i).

 

1.72        “Non-Commercial
Unit” means, with respect to a Supplied Item, a unit of such Supplied Item that is intended solely for distribution as
a free promotional sample in the Territory or for use in analytical testing required by Regulatory Authorities in the Territory.

 

1.73        “Official”
has the meaning provided in Section 12.1(e)(ii)(2).

 

1.74        “Other
Drug” means any active pharmaceutical ingredient other than treprostinil, or any drug substance or drug product other
than treprostinil drug substance or treprostinil drug product.

 

1.75        “PatchPump
Mark” means (i) the PatchPump® mark and (ii) any pending or future Trademark registrations, applications and unregistered
Trademark rights, in each case, relating to the PatchPump® mark; but excluding, in each case, any SteadyMed House Mark.

 

1.76        “Patents”
means (a) national, regional and international patents and patent applications filed in any country of the world, including, without
limitation, provisional patent applications, (b) patent applications filed either from such patents and patent applications or
from a patent application claiming priority from either of these, including any continuation, continuation-in-part, division, provisional,
converted provisional and continued prosecution applications, or any substitute applications, (c) any patent issued with respect
to or in the future issued from any such patent applications, including utility models, petty patents and design patents and certificates
of invention, and (d) any and all extensions or restorations by existing or future extension or restoration mechanisms, including
revalidations, reissues, reexaminations and extensions (including any supplementary protection certificates and the like) of the
foregoing patents or patent applications.

 

1.77        “Permitted
Subdistributor” has the meaning provided in Section 2.3(b).

 

1.78        “Person”
means any individual, organization or entity, including a government or political subdivision, department or agency of a government.

 

1.79        “Platform
Patents” means Patents Controlled by SteadyMed during the Term that (a) claim any aspect of the SteadyMed Platform, any
of its components, or any combination of two or more of its components, including, without limitation, the design, use, function,
assembly and manufacture of any of the foregoing; and (b) in the absence of a license thereunder, would be infringed (if issued
or granted) by the manufacture, use, sale, offer for sale or import of the Product.

 

1.80        “Post-Approval
Study” has the meaning set forth in Section 5.2.

 

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1.81        “Pricing
Approval” means any and all pricing or reimbursement approvals of any Pricing Authority in any jurisdiction, in or outside
of the Territory, that may be required for Commercialization of Product and Infusion set in such jurisdiction and/or for reimbursement
of Product and Infusion set by national health insurance (or its local equivalent) or other governmental payors in such jurisdiction.

 

1.82        “Pricing
Authority” means any supranational, national, regional, state or local Regulatory Authority in any jurisdiction, in or
outside of the Territory, whose approval or authorization of pricing or reimbursement is required for Commercialization of Product
and Infusion set in such jurisdiction and/or for reimbursement of Product and Infusion set by national health insurance (or its
local equivalent) or other governmental payors in such jurisdiction.

 

1.83        “Product”
means a product comprising Device pre-filled with Drug Product, including, without limitation, (a) the product known as TrevyentTM
(PatchPump®-enabled treprostinil) as it exists, and is under development by, SteadyMed or its Affiliate in the Field in the
U.S. as of the Effective Date, and (b) any improved or modified version of such product that is made by or on behalf of SteadyMed
or any of its Affiliates during the Term for which SteadyMed or any of its Affiliates seeks or obtains Regulatory Approval in the
Field in the U.S. from the FDA during the Term or which is actually Commercialized by SteadyMed or any of its Affiliates in the
Field in the U.S. during the Term.

 

1.84        “Product
Labels and Inserts” means (i) any display of written, printed or graphic matter upon the immediate container, outside
container, wrapper or other packaging of a Supplied Item and (ii) any written, printed or graphic material on or within the package
from which a Supplied Item is to be dispensed.

 

1.85        “Product
Marks” means the Trevyent Mark and the PatchPump Mark.

 

1.86        “Product-Specific
Patents” means Patents Controlled by SteadyMed or its Affiliates during the Term that: (a) specifically claim any formulation
of treprostinil, any use or therapeutic application of any such formulation, or any method of making any such formulation; and
(b) in the absence of a license thereunder, would be infringed (if issued or granted) by the manufacture, use, sale, offer for
sale or import of the Drug Product; provided, however, that if any such Patent also claims (i) the formulation of
any Other Drug, any use or therapeutic application of any formulation of any Other Product, or any method of making any formulation
of any Other Product, and/or (ii) any aspect of the SteadyMed Platform, any of its components, or any combination of two or more
of its components, including, without limitation, the design, use, function, assembly and manufacture of any of the foregoing,
then, in each case, such Patent shall be deemed a Platform Patent and shall not be considered a Product-Specific Patent for purposes
of this Agreement.

 

1.87        “Product
Warranty” has the meaning provided in Section 12.3.

 

1.88        “Promotion”
means any activities undertaken by a pharmaceutical company aimed at encouraging the use of a particular pharmaceutical product.
When used as a verb, “Promoting” means engaging in such activities and “Promote” and “Promoted”
shall have corresponding meanings.

 

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1.89        “Promotional
Materials” means all sales representative training materials and all written, printed, graphic, electronic, audio or
video matter, including, without limitation, journal advertisements, sales visual aids, leave-behind items, formulary binders,
reprints, direct mail, direct-to-consumer advertising, internet postings and sites and broadcast advertisements intended for use
or used by or on behalf of Cardiome, any of its Affiliates or Sublicensees, and any of their respective Sales Forces, sales managers
and other sales personnel in connection with Promotion of any Supplied Item.

 

1.90        “Quality
Agreement” has the meaning provided in Section 4.3.

 

1.91        “Quarter”
means a calendar quarter.

 

1.92        “QSR”
means the Quality System Regulation for medical devices, as described in 21 CFR Section 820, as amended from time to time.

 

1.93        “Receiving
Party” has the meaning provided in Section 1.23.

 

1.94        “Region”
means any of (a) Europe, (b) the Middle East, or (c) Canada.

 

1.95        “Regulatory
Application” has the meaning provided in Section 5.1(c).

 

1.96        “Regulatory
Approval” means any approval, authorization or clearance of any Regulatory Authority in any jurisdiction (in or outside
of the Territory) that is necessary to market or sell Product and Infusion set in the Field in such jurisdiction, but excluding
any Pricing Approval.

 

1.97        “Regulatory
Authority” means any supranational, national, regional, state or local regulatory agency, department, bureau, commission,
council or other governmental entity whose review, approval or authorization is necessary for the manufacture, packaging, use,
storage, import, export, distribution, promotion, marketing, offer for sale or sale of Product and Infusion set in any jurisdiction,
in or outside of the Territory (including the FDA in the United States and the EMA in the European Union), but excluding any Pricing
Authority.

 

1.98        “Representatives”
means, with respect to a Party, such Party’s and its Affiliates’ respective officers, directors, employees, agents
and representatives.

 

1.99        “Royalty
Base” means, with respect to sales of a particular Product (i.e., SKU) in a particular country in a given Accounting
Period, the difference between: (a) Net Sales of such Product in such country in such Accounting Period; and (b) the aggregate
Transfer Price of such Product sold in such country in such Accounting Period, determined on a first-in, first-out (FIFO) basis
(i.e., units of Products held in inventory for the longest time are assumed to be the first to be sold) in accordance with applicable
Accounting Standards.

 

1.100      “Sales
Force” means Cardiome’s and its Affiliates’ and Sublicensees’ respective Sales Representatives.

 

1.101      “Sales
Representative” means a sales representative employed by Cardiome or any of its Affiliates or Sublicensees to Promote
the Product in the Territory.

 

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1.102      “SDEA”
has the meaning provided in Section 5.6.

 

1.103      “SDNs”
has the meaning provided in Section 2.7(b).

 

1.104      “Specifications”
means the specifications for a particular Supplied Item as set forth in the Quality Agreement, as the same may be amended from
time to time in accordance with the Quality Agreement.

 

1.105      “SteadyMed
House Marks” means (i) the SteadyMed trade name and logo, and (ii) any pending or future Trademark registrations, applications
and unregistered Trademark rights, in each case, relating to the SteadyMed trade name and/or logo.

 

1.106      “SteadyMed
Know-How” means Information Controlled by SteadyMed or its Affiliates during the Term that is necessary or useful for
the use, sale, offer for sale, import or Commercialization of Product and Infusion set in the Field.

 

1.107      “SteadyMed
Patents” means the Product-Specific Patents and the Platform Patents. Schedule 1.107 hereto lists the SteadyMed
Patents existing as of the Effective Date.

 

1.108      “SteadyMed
Platform” means SteadyMed’s proprietary PatchPump® drug administration technology for intravenous and subcutaneous
delivery of liquid drugs, including, without limitation, the ECell expanding battery, hardware and software [...***...], various
sensors [...***...], feedback LEDs to tell the patient the status of the product and an external status-check button.

 

1.109      “SteadyMed
Technology” means the SteadyMed Patents and SteadyMed Know-How.

 

1.110      “SteadyMed
Trademarks” means the Product Marks and the SteadyMed House Marks.

 

1.111      “Subdistributor”
means a Third Party distributor of Supplied Items appointed or contracted by Cardiome or any of its Affiliates in a particular
country of the Territory, where either:

 

(a)        such
country is not a Major Market and such Third Party distributor has no royalty or other payment obligation to Cardiome or any of
its Affiliates that is calculated based on amounts invoiced or received by such Third Party for in-market sales of Supplied Item
in such country; or

 

(b)        such
Third Party distributor (i) does not take title to Supplied Item, (ii) does not invoice Supplied Item sales to Third Party customers
and (iii) is responsible only for inventory management and distribution on behalf of Cardiome or its Affiliate.

 

1.112      “Sublicense”
means: (a) a sublicense under all or any portion of the license granted to Cardiome pursuant to Section 2.1; or (b) a right
to promote, distribute and sell Supplied Item in any country of the Territory.

 

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1.113       “Sublicensee”
means any Third Party to which Cardiome or any of its Affiliates grants a Sublicense, but excluding a Permitted Subdistributor.

 

1.114       “Supplied
Item” means Finished Product, Bright Stock and/or Finished IS, as applicable.

 

1.115       “Term”
has the meaning provided in Section 14.1.

 

1.116       “Territory”
means: (a) Europe; (b) the Middle East; and (c) Canada.

 

1.117       “Third
Party” means any person or entity other than Cardiome, SteadyMed, and their respective Affiliates.

 

1.118       “Trademark”
means any trademark, trade dress, brand mark, trade name, brand name, corporate name, logo, business symbol, Internet domain name
or e-mail address, whether or not registered.

 

1.119       “Transfer
Price” has the meaning provided in Section 4.6(a).

 

1.120       “Trevyent
Mark” means (i) the TrevyentTM mark and (ii) any pending or future Trademark registrations, applications and unregistered
Trademark rights, in each case, relating to the TrevyentTM mark; but excluding, in each case, any SteadyMed House Mark.

 

1.121       “Year”
means a calendar year.

 

Article
2

 

LICENSE

 

2.1          License
Grant. Subject to the terms and conditions of this Agreement, SteadyMed hereby grants to Cardiome during the Term an exclusive
(even as to SteadyMed except as expressly set forth below), royalty-bearing license, under the SteadyMed Technology, solely: (a)
to use, sell, have sold, offer for sale, import and Commercialize Finished Products and/or Bright Stock in the Field in the Territory;
and (b) to use, sell, have sold, offer for sale, import and Commercialize Finished IS in the Field in the Territory, solely and
exclusively for use with Finished Products.

 

2.2          License
Exclusions. The license granted to Cardiome pursuant to Section 2.1 specifically excludes:

 

(a)        any
right under the SteadyMed Technology to Manufacture, or have Manufactured, Finished Product, API, Drug Product, Device, any Device
component, Finished IS or any Finished IS component; and

 

(b)        any
right under the SteadyMed Technology to use, sell, have sold, offer for sale, import or Commercialize:

 

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(i)        any
Product other than Finished Product, Bright Stock or Finished IS supplied by SteadyMed hereunder;

 

(ii)        API,
Drug Product, Device or any Device component except, in each case, as incorporated in Finished Product, Bright Stock or Finished
IS supplied by SteadyMed hereunder;

 

(iii)        any
subcutaneous, intravenous or other infusion device to connect Finished Product (or the Device incorporated therein) or Bright Stock
to the patient’s body, other than Finished IS;

 

(iv)        Finished
IS independently of Finished Product or Bright Stock or for any use other than use with Finished Product or Bright Stock; and

 

(v)        Infusion
Sets, other than Finished IS supplied by SteadyMed hereunder.

 

In addition, and for the
avoidance of doubt, the license granted to Cardiome pursuant to Section 2.1 excludes any license or other right with respect
to any Other Drug, including, without limitation, any Device or other product using SteadyMed Technology that is pre-filled with
any Other Drug or that an end user may pre-fill with any Other Product, or any Infusion set for use with any Other Drug.

 

2.3          Sublicensing;
Appointment of Subdistributors.

 

(a)        The
license granted to Cardiome pursuant to Section 2.11 includes the right to grant Sublicenses: (i) in the Territory or any portion
thereof, to Cardiome’s Affiliates Correvio International Sárl, Correvio GmbH (Germany), Cardiome UK and Correvio UK
without SteadyMed’s consent; and (ii) in the Territory or any portion thereof, to any other Affiliate of Cardiome upon [...***...]
prior written notice to SteadyMed, provided that if SteadyMed in good faith objects to the grant of a Sublicense to any such Affiliate
and so notifies Cardiome thereof within such [...***...] period, then Cardiome shall not have the right to grant a Sublicense to
such Affiliate. Cardiome shall not have the right to grant Sublicenses to any Third Party without SteadyMed’s prior written
consent, which may not be unreasonably withheld. Any and all Sublicenses granted by Cardiome shall be in writing and shall be subject
to, and consistent with, the terms and conditions of this Agreement. Cardiome shall be fully responsible for the compliance of
its Affiliates and Sublicensees with the terms and conditions of this Agreement. Within [...***...] after execution of any Sublicense
agreement with a Third Party, Cardiome shall provide SteadyMed with a full and complete copy of such Sublicense agreement (provided
that Cardiome may redact any confidential information contained therein that is not necessary to ascertain compliance with this
Agreement).

 

(b)        Cardiome
and its Affiliates shall have the right, without SteadyMed’s consent, to appoint any Subdistributor that Cardiome or any
of its Affiliates has appointed, and actually uses, as a subdistributor (as defined in Section 1.111, mutatis mutandis)
of pharmaceutical products of Cardiome and its Affiliates in a country of the Territory as of the Effective Date, solely to distribute
Finished Product, and Finished IS with Finished Product, in such country (each, a “Permitted Subdistributor”).
Neither Cardiome nor any of its Affiliates shall have the right to appoint any Subdistributor other than a Permitted Subdistributor
without the prior written consent of SteadyMed, which consent may not be unreasonably withheld. Any appointment of a Permitted
Subdistributor shall be in writing and shall be subject to, and consistent with, the terms and conditions of this Agreement. Cardiome
shall be fully responsible for the compliance of its and its Affiliates’ Permitted Subdistributors with the terms and conditions
of this Agreement.

 

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2.4          Reservation
of Rights. Notwithstanding the exclusivity of the license granted to Cardiome pursuant to Section 2.1, SteadyMed hereby
reserves such non-exclusive rights under the SteadyMed Technology as are necessary or useful for the performance of SteadyMed’s
obligations under Article 4. SteadyMed hereby reserves the exclusive (even as to Cardiome) right to practice and grant
licenses under the SteadyMed Technology for all purposes other than the use, sale, offer for sale, import and Commercialization
of Products and Infusion Sets (including, without limitation, Finished Product, Bright Stock and Finished IS), in each case, in
the Field in the Territory. Without limiting the generality of the foregoing, SteadyMed specifically reserves the exclusive right
to practice and grant licenses under the SteadyMed Technology:

 

(a)        to
research, develop, use, sell, have sold, offer for sale, import and Commercialize Products (including, without limitation, Finished
Products and Bright Stock), API, Drug Product, Devices and Infusion Sets (including, without limitation, Finished IS) outside the
Territory for any and all purposes;

 

(b)        to
research, develop, use, sell, have sold, offer for sale, import and Commercialize the SteadyMed Platform and products based on
or using the SteadyMed Platform (except, in each case and solely in the Territory, as incorporated in Product) throughout the world,
whether with or without any Other Drug; and

 

(c)        to
research, develop, use, sell, have sold, offer for sale, import and Commercialize Devices (except, in each case and solely in the
Territory, as incorporated in Product) and Infusion Sets (except, in each case and solely in the Territory, for use with Product)
throughout the world, whether with or without any Other Drug.

 

2.5          Negative
Covenant. Cardiome hereby covenants not to practice, and not to permit or cause any Affiliate, Sublicensee or other Third
Party to practice, any SteadyMed Technology for any purpose other than as expressly authorized in this Agreement.

 

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2.6          Territory.

 

(a)        Cardiome
hereby covenants and agrees that neither Cardiome nor any of its Affiliates shall, and each of them shall require their respective
Sublicensees and Permitted Subdistributors not to, directly or indirectly, sell, have sold, offer for sale, import, export, deliver
or Commercialize Product outside of the Territory. Without limiting the generality of the foregoing, neither Cardiome nor any of
its Affiliates shall, and each of them shall require their respective Sublicensees and Permitted Subdistributors not to: (i) engage
in any advertising or promotional activities relating to Product directed to customers or other buyers or users of Product outside
the Territory; or (ii) solicit orders from any prospective purchaser located outside the Territory. Cardiome further covenants
and agrees that neither Cardiome nor any of its Affiliates shall knowingly sell Product to any person inside the Territory that
Cardiome or its Affiliate knows intends to use or sell such Product outside the Territory. If Cardiome or its Affiliate, Sublicensee
or Permitted Subdistributor receives any order for Product from a prospective purchaser located outside the Territory, Cardiome
shall promptly notify SteadyMed in writing. Neither Cardiome nor any of its Affiliates, Sublicensees or Permitted Subdistributors
shall accept any such orders. Notwithstanding anything in this Agreement to the contrary, SteadyMed acknowledges and agrees that
certain advertising, promotion or marketing of the Product in the Territory, including the advertising, promotion and marketing
of the Product through the use of the internet and pan-regional print advertisements and at conferences and seminars held in the
Territory, may reach Persons outside the Territory, and Cardiome shall not be in breach of this Agreement by reason thereof so
long as (1) the objective of such advertising, promotion or marketing is to reach Persons within the Territory or otherwise to
promote sales of the Product within the Territory, or (2) the receipt by Persons located outside the Territory of such advertising,
promotion or marketing of the Product is merely incidental to the objectives of such advertising, promotion or marketing in the
Territory. Notwithstanding the above, the Parties through the JSC may elect to jointly participate in worldwide or global conferences.

 

2.7          Export
Control.

 

(a)        Export
Control Laws. In exercising its rights under this Agreement, each Party agrees to comply strictly and fully with U.S. export
control laws, including the Arms Export Controls Act (22 U.S.C. Ch. 39), the International Emergency Economic Powers Act (50 U.S.C.
§§ 1701 et seq.), the Trading With the Enemy Act (50 U.S.C. app. §§ 1 et seq.), the Export Administration
Act of 1979 (50 U.S.C. app. §§ 2401 et seq.), International Boycott Provisions of Section 999 of the U.S. Internal Revenue
Code of 1986, and all rules, regulations and executive orders relating to any of the foregoing, including but not limited to the
International Traffic in Arms Regulations (22 C.F.R. §§ 120 et seq.), the Export Administration Regulations (15 C.F.R.
§§ 730 et. seq.), and the regulations administered by the Office of Foreign Assets Controls of the United States Department
of the Treasury, and all export controls imposed on the Supplied Items by any country or organization or nations within whose jurisdiction
Cardiome operates or does business (collectively, “Export Control Laws”). Cardiome will not export or permit
exportation of any part of the Supplied Items or any related technical data or any direct product of any related technical data,
outside of the United States without obtaining SteadyMed’s prior written consent and any required written permission, license,
or approval to do so from the Bureau of Industry and Security of the U.S. Department of Commerce and/or other appropriate governmental
agencies of the United States.

 

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(b)          Restricted
Destinations and End-Users. Cardiome shall not (i) export, reexport, or transfer any Supplied Items to any country that is
at the time of export, reexport or transfer subject to an embargo by the U.S. government; (ii) export, reexport, or transfer any
Supplied Items to any instrumentality, agent, entity, or individual that is acting on behalf of, or directly or indirectly owned
or controlled by, any governmental entity that is subject to an embargo by the U.S. government; (iii) export, reexport or transfer
any Supplied Items to a national of a country that is subject to an embargo of the U.S. government; and (iv) engage in any transactions
or dealings with any organization, entity, or individual identified on the List of Specially Designated Nationals and Blocked Persons
(“SDNs”) or the Foreign Sanctions Evaders List, which are both maintained by the Office of Foreign Assets Control
of the U.S. Treasury Department, or the Entity List, Denied Persons List, or Unverified List, which are maintained by the Bureau
of Industry and Security of the U.S. Commerce Department. Notwithstanding the above, Cardiome may export, reexport, or transfer
any Supplied Items as permitted by Applicable Law or based upon specific or general licenses allowed by Applicable Law at the export,
reexport or transfer of the Supplied Item. The Parties acknowledge that the above prohibitions do change from time to time, and
any changes in the above can be discussed by the Joint Steering Committee.

 

(c)          Obligation
to Report. Either Party will immediately report to the to the Party (i) any concerns, suspicions, or actual knowledge of violations
of the Export Control Laws or any other similar applicable export control law, or (ii) if either Party becomes the subject of any
formal or informal investigation, prosecution, or government or judicial determination related to a violation of Export Control
Laws or any other similar applicable export control law.

 

(d)          Obligation
to Cooperate: Each Party will fully cooperate and cause its Representative Persons to cooperate with the other Party in the
other Party’s review or investigation in relation to an actual or potential violation of any applicable export law or regulation.

 

(e)          Termination
for Non-Compliance. Each Party understands and acknowledges that, notwithstanding any provision contained herein,

 

(i)        a
knowing intentional violation of this Section 2.7 by any either Party shall be deemed a material breach of this Agreement
and will entitle the other Party to (i) terminate this Agreement immediately for cause, and (ii) be indemnified for and held harmless
against any and all damages, fines, penalties, disgorgements, settlements, determinations, or claims faced by or imposed on the
non-breaching Party or any of its representatives to the extent attributable to the material breach of this Section by the breaching
Party or any of its respective directors, officers, employees, consultants, agents, Sublicensees, subcontractors, distributors,
Subdistributors or other representatives’ and

 

(ii)        a
non-intentional violation of this Section 2.7 by either Party shall be deemed a non-material breach of this Agreement. Such
a breach may be cured by reporting as soon as practicable the basis of the breach to the regulatory agency responsible for the
applicable export control laws. In addition each Party must thereafter cooperate with said agency during any investigation and
with any subsequent fines or remediation imposed by said agency.

 

2.8        No
Implied License. No right or license under any Patents or Information of either Party is granted or shall be granted by implication.
All such rights or licenses are or shall be granted only as expressly provided in this Agreement.

 

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Article
3

 

JOINT
STEERING COMMITTEE

 

3.1        Joint
Steering Committee Formation; Composition. Within 10 days after the Effective Date, the Parties shall establish a joint steering
committee (the “JSC”) composed of no more three (3) representatives of each of SteadyMed and Cardiome. Each
Party may change its representatives to the JSC, or delegate another representative to attend any meeting thereof, from time to
time in its sole discretion, effective upon notice to the other Party of such change or delegation. These representatives shall
have appropriate technical credentials, experience and knowledge. The JSC will be jointly chaired by the Parties, with each Party
designating one of its JSC representatives as its co-chairperson. The chairpersons shall set agendas for JSC meetings in advance,
provided that the agendas will include any matter requested by either Party and within the scope of the JSC’s authority.
A reasonable number of additional representatives of a Party may attend meetings of the JSC in a non-voting capacity.

 

3.2        Responsibilities
and Authority. The JSC’s overall responsibility shall be to encourage and facilitate ongoing cooperation and communication
between the Parties and to perform the other obligations specifically delegated to it by this Agreement, subject to the limitations
set forth in this Article 3. In particular, the JSC shall:

 

(a)        review,
coordinate, and discuss the overall strategy for obtaining Regulatory Approvals, Pricing Approvals and reimbursement status for
the Product in the Field in the Territory;

 

(b)        review
and discuss the protocols for any Post-Approval and/or Reimbursement Study to be conducted by or on behalf of Cardiome or any of
its Affiliates, subject to Section 5.2 hereof;

 

(c)        review
and discuss ongoing and planned Commercialization activities and spending in the Territory, including, without limitation, countries
in which Product will be launched and priority thereof, pre-launch activities, retention of reimbursement consultant(s), efforts
to obtain Pricing Approvals and reimbursement status, sales and marketing commitment and strategy, use and distribution of Promotional
Materials and Non-Commercial Product, reimbursement and third-party payor status, and product distribution logistics;

 

(d)        determine
the number of Non-Commercial Product samples to be supplied by SteadyMed, whether for the Launch Period or otherwise;

 

(e)        review
progress of Commercialization activities and metrics with respect to Product in the Field in the Territory against Commercialization
Plans;

 

(f)        ensure
consistency of Commercialization activities in the Territory with SteadyMed’s global marketing strategy and efforts for the
Product;

 

(g)        monitor
Cardiome inventory levels of Supplied Items;

 

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(h)        provide
a forum for discussion of Product Manufacturing and supply matters, subject to Article 4 hereof; and

 

(i)        perform
such other duties as are specifically assigned by the Parties to the Joint Steering Committee pursuant to this Agreement.

 

Each Party shall be responsible
for ensuring that, at all times, its representatives on the JSC act reasonably and in good faith in carrying out their respective
responsibilities hereunder.

 

3.3        JSC
Meetings. The JSC shall meet as deemed necessary by the JSC members, but, no less often than quarterly, commencing January
2016. The location for such meetings shall mutually agreed by the Parties. Alternatively, the JSC may meet by means of teleconference,
videoconference or other similar communications equipment. Each Party shall be responsible for all of its own expenses of participating
in JSC meetings.

 

3.4        Quarterly
Review/Monthly Supply Chain Meeting. In addition to the JSC Meetings (or, as part of the JSC Meetings) the Parties agree to
meet at least once per calendar quarter to review current Forecasts and to discuss Cardiome’s future projected requirements
for supply of the Product as well as Regulatory or other related matters, beginning October 2016.

 

3.5        Minutes.
Responsibility for preparing definitive minutes of each JSC meeting shall alternate between the Parties. The responsible Party
shall circulate a draft of the minutes of each meeting to all members of the JSC for comments within 10 days after such meeting.
Such minutes shall provide a description, in reasonable detail, of the discussions at the meeting and shall document all actions
and determinations approved by the JSC at such meeting. The Parties shall promptly discuss any comments on such minutes and finalize
the minutes no later than the date of the next JSC meeting.

 

3.6        Decision-Making.
Decisions of the JSC shall be made by unanimous vote, with each Party’s representatives on the JSC collectively having one
vote. No vote of the JSC may be taken unless at least one of each Party’s representatives is present and participating in
such vote. The JSC’s decision-making authority shall be limited to those matters expressly delegated to it in this Agreement.
The JSC shall use reasonable efforts to resolve any disputes or disagreements concerning the matters within the scope of its authority.

 

3.7        Disputes.
If the JSC cannot reach consensus regarding any matter within the scope of its authority within [...***...] after it has met and
attempted to reach such consensus, then either Party may, by written notice to the other Party (an “Escalation Notice”),
refer such matter to the Chief Executive Officer of SteadyMed and the Chief Executive Officer of Cardiome (collectively, the “Senior
Executives”) for attempted resolution. The Senior Executives shall use good faith efforts to resolve any matter referred
to them as soon as practicable. If the Senior Executives are unable to resolve any matter set forth in an Escalation Notice within
[...***...].

 

3.8        Scope
of Governance. Notwithstanding the creation of the JSC, each Party shall retain the rights, powers and discretion granted
to it under this Agreement, and the JSC shall not be delegated or vested with any rights, powers or discretion unless such delegation
or vesting is expressly provided in this Agreement. The JSC shall not have any power to amend or modify this Agreement, and no
decision of the JSC shall be enforceable to the extent it is in contravention of any terms and conditions of this Agreement.

 

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3.9        Alliance
Managers. Within 30 days after the Effective Date, each Party shall appoint a representative (“Alliance Manager”)
to facilitate ongoing communications and exchange of information between the Parties and to act as a liaison between the Parties.
Each Party may replace its Alliance Manager at any time upon notice to the other Party.

 

Article
4

 

MANUFACTURING
AND SUPPLY

 

4.1        Manufacture
and Supply. Subject to the terms and conditions of this Agreement, SteadyMed, itself or through its Affiliates or Third Party
contract manufacturers, shall be responsible for Manufacturing, or having Manufactured, Supplied Items for Commercialization in
the Territory, and shall supply (or have supplied) to Cardiome, and Cardiome shall purchase exclusively from SteadyMed, its requirements
of Supplied Items for Commercialization by Cardiome and its Affiliates, Sublicensees and Permitted Subdistributors in the Territory.
Cardiome acknowledges and agrees that SteadyMed may perform any of its Manufacturing and supply obligations under this Article
4 through one or more Third Party contract manufacturers, provided that SteadyMed shall be fully responsible for the compliance
of its Third Party contract manufacturers with the terms and conditions of this Agreement.

 

4.2        Packaging
and Labeling. Finished Product will be fully labeled and packaged as required by each market when supplied to Cardiome including
product serialization according to the destination market requirements and supported with the required electronic data files as
specified by the markets. Bright Stock will be supplied by SteadyMed to Cardiome for sale in the Middle East. As utilized herein,
“Bright Stock” refers to unlabeled Product having a Device pre-filled with a specified quantity of Drug, and
an Infusion Set. The cost complied with complying with this paragraph will be included in COGS.

 

4.3        Quality
Agreement. No later than three (3) months after the Effective Date, the Parties shall enter into a written quality assurance
agreement setting forth the specific responsibilities, procedures and guidelines for batch release, quality control testing, quality
assurance review, acceptance testing and other quality-related aspects of the manufacture and release of Supplied Items hereunder
(as such agreement may be amended from time to time by mutual written agreement of the Parties, the “Quality Agreement”).
Each Party agrees to perform the responsibilities assigned to such Party under the Quality Agreement in accordance with the terms
and conditions of the Quality Agreement. In case of any conflict between the provisions of this Agreement and those of the Quality
Agreement, the Quality Agreement shall prevail as to any quality-related matter, and this Agreement shall prevail as to all other
matters.

 

4.4        Manufacturing
Standards. SteadyMed shall be responsible for ensuring that Supplied Items supplied to Cardiome hereunder conform to the applicable
Specifications in effect as of the applicable Delivery Date and are Manufactured in accordance with applicable Manufacturing Standards
and SteadyMed’s obligations under the Quality Agreement. SteadyMed shall also be responsible for ensuring that, as of the
Delivery Date of any Supplied Item, such Supplied Item shall have a remaining shelf-life of at least [...***...] as of the Launch
Date, and at least [...***...] after the Launch Date. In addition, SteadyMed will endeavor to [...***...].

 

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4.5          Forecasts
and Purchase Orders.

 

(a)        Initial
Forecast. No later than [...***...] prior to the expected Launch Date, Cardiome shall provide SteadyMed Cardiome’s good
faith estimate of anticipated orders of each Supplied Item for the Territory for delivery during [...***...] of the Initial Forecast
Period (the “Initial Forecast”). In addition, the Initial Forecast shall separately specify: (i) Cardiome’s
good faith estimate of the Launch Quantity; and (ii) Cardiome’s good faith estimate of the number of Non-Commercial Units
of each Supplied Item required for delivery during the Launch Period, provided that the aggregate number of Non-Commercial Units
of a Supplied Item for the Launch Period shall not exceed the JSC-approved quantity of such Supplied Item. Cardiome shall have
the right, but not the obligation, to provide SteadyMed one or more updated Initial Forecasts no later than the date that is [...***...]
prior to the expected Launch Date. The forecasted Launch Quantity and forecasted Non-Commercial Quantity set forth in the last
Initial Forecast (or update thereto) provided by Cardiome prior to the date specified in the preceding sentence shall be a binding
commitment by Cardiome to place purchase orders for such forecasted quantities.

 

(b)        Rolling
Forecasts. On the first day of each Quarter after the last date on which an updated Initial Forecast may be delivered under
Section 4.5(b), Cardiome shall provide SteadyMed a rolling [...***...] Quarter forecast of Cardiome’s good faith estimate
of anticipated orders of each Supplied Item for each country of the Territory for delivery during each Quarter of such [...***...]
period (each, a “Forecast”). For clarity, the [...***...] covered by each Forecast shall be [...***...] beginning
no earlier than [...***...] after the date such Forecast is submitted to SteadyMed. The [...***...] of each such Forecast shall
be a binding commitment by Cardiome to place purchase orders for the forecasted quantities of Supplied Items. The [...***...] of
each such forecast may be increased or decreased by no more than [...***...] without the written consent of SteadyMed. The [...***...]
of each such forecast may be increased or decreased by no more than [...***...] without the written consent of SteadyMed. Each
such Forecast shall otherwise be non-binding, except as provided below, but shall reflect Cardiome’s good faith expectation
(at the time of submitting the Forecast) of the orders of Supplied Item to be delivered during the Forecast period.

 

(c)        Orders.
Subject to Sections 4.5(a) and 4.5(b), Cardiome shall order Supplied Items by submitting written purchase orders,
in such form as the Parties shall agree from time to time, to SteadyMed specifying (i) the quantity of each Supplied Item ordered
for each country of the Territory, separately set forth on a country-by-country basis, and (ii) the desired Delivery Date for such
Supplied Item, which Delivery Date shall be no earlier than [...***...] from submission of purchase order. Cardiome shall submit
its purchase order for the binding portion of each Forecast to SteadyMed at least [...***...] in advance of the desired Delivery
Date. In addition, Cardiome shall submit its purchase order for the Launch Quantities and the number of Non-Commercial Units of
each Supplied Item required for the Launch Period (the “Non-Commercial Quantity”), not to exceed the applicable
JSC-approved number of Non-Commercial Units of such Supplied Product for the Launch Period, no later than [...***...] prior to
the anticipated Launch Date. All purchase orders shall be subject to acceptance by SteadyMed. Each purchase order submitted by
Cardiome to SteadyMed shall reference this Agreement and shall be governed exclusively by the terms contained herein. The Parties
hereby agree that the terms and conditions of this Agreement shall supersede any term or condition in any purchase order, confirmation
or other document furnished by Cardiome or SteadyMed that is in any way inconsistent with these terms and conditions. Not later
than [...***...] after receipt of a purchase order, SteadyMed shall confirm its receipt of the purchase order and the expected
Delivery Date(s) of the ordered quantities to Cardiome in writing. For any purchase order that exceeds the forecasted quantity
specified in the binding portion of a Forecast, SteadyMed shall notify Cardiome whether or not SteadyMed will be able to fulfill
the excess portion of such purchase order (or part thereof) and the expected Delivery Date(s) for such excess quantities. SteadyMed
shall use Commercially Reasonable Efforts to supply to Cardiome any such excess quantities as soon as reasonably practicable. Each
purchase order shall be for a minimum of [...***...], subject to renegotiation [...***...].

 

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4.6         Transfer
Prices and Payment for Supplied Items.

 

(a)        Transfer
Price. The transfer price payable by Cardiome for each unit of a particular Supplied Item (i.e., having a particular
SKU) supplied hereunder (including, without limitation, each Non-Commercial Unit of such Supplied Item) shall equal [...***...]
of such Supplied Item (the “Transfer Price”), except that:

 

(i)        solely
for Non-Commercial Quantity of a Supplied Item, the “Transfer Price” payable by Cardiome for Non-Commercial
Units of such Supplied Item shall equal [...***...] of the applicable Transfer Price determined in accordance with the first paragraph
of this Section 4.6(a) (the “Non-Commercial Transfer Price”); and

 

(ii)        if,
after a particular Supplied Item has been commercially sold by Cardiome or its Affiliate or Sublicensee in a particular country
of the Territory [...***...], the Cardiome Margin for such Supplied Item in such country [...***...], then for subsequent [...***...],
the Transfer Price of units of such Supplied Item supplied hereunder for such country only (as set forth in purchase orders submitted
by Cardiome) shall be [...***...]; provided, however, that if, after the [...***...], then, for subsequent [...***...]
shall cease to apply.

 

(iii)        The
COGS of the Supplied Item [...***...] will not [...***...].

 

(b)          Deposit.
[...***...] shall pay the applicable invoiced amount within [...***...] after receipt of invoice in accordance with Section
8.2.

 

(c)          Invoicing
and Payment of Transfer Price. For each delivery of a Supplied Item, SteadyMed shall issue an invoice to Cardiome, no earlier
than the Delivery Date, for, as applicable:

 

(i)        the
Transfer Price for the number of units of such Supplied Item (other than the Non-Commercial Product Quantities) in such delivery,
which invoice shall specify [...***...]; or

 

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(ii)        solely
in the case of the Non-Commercial Product Quantities, the Non-Commercial Transfer Price for the number of Non-Commercial Units
of such Supplied Item in such delivery, which invoice shall specify [...***...].

 

In each case, Cardiome
shall pay the applicable invoiced amount, net of the applicable deposit paid by Cardiome pursuant to Section 4.6(b), within
[...***...] after receipt of invoice in accordance with Section 8.2.

 

4.7        Specifications;
Change Management. Any change to the Specifications for a Supplied Item will require the mutual written agreement of the Parties.
The formal procedures for the approval and documentation of all changes to the Specifications for a Supplied Item or to the materials,
equipment, process or procedures used to Manufacture a Supplied Item to be supplied to Cardiome hereunder shall be as set forth
in the Quality Agreement.

 

4.8        Delivery;
Packaging. SteadyMed shall use Commercially Reasonable Efforts to deliver all Supplied Items ordered by Cardiome by the desired
Delivery Date set forth on the applicable purchase order, provided that such desired Delivery Date is at least [...***...] after
the date of the applicable purchase order and such order is consistent with Cardiome’s binding forecast quantities. Delivery
of Supplied Items ordered by Cardiome hereunder shall be made [...***...]. [...***...] shall be responsible for obtaining
all licenses or other authorizations for the exportation of Supplied Items out of the country where the applicable Manufacturing
Facility is located and importation of Supplied Items into the Territory, and for all customs duties and tariffs in connection
therewith, as well as for complying with all import reporting requirements for customs and duty classification and reporting.
[...***...] agrees to cooperate with and provide any necessary documentation required for exportation, and aggress to cause its
vendors to provide such cooperations. [...***...] shall be responsible for contracting, at its own expense, for shipment of Supplied
Items from the [...***...]. Title and risk of loss shall pass to Cardiome upon delivery of the Supplied Item to [...***...]. Supplied
Items shall be packaged for shipment in accordance with the applicable Specifications and SteadyMed’s or its Contract Manufacturer’s
standard operating procedures.

 

4.9         Acceptance
and Rejection.

 

(a)        Cardiome
shall inspect all shipments of Supplied Items promptly upon receipt and may reject any shipment of Supplied Items or portion thereof
that fails to conform to the Product Warranty (“Defective Product”). In order to reject any shipment of Supplied
Items or portion thereof, Cardiome must give written notice of rejection to SteadyMed within [...***...] after receipt of such
Supplied Item at Cardiome’s or its designee’s address for delivery specified in the applicable purchase order (or,
in the case of any Latent Defect, within [...***...] after discovery by Cardiome of the Latent Defect, but [...***...]). Should
Cardiome fail to give written notice of rejection to SteadyMed within [...***...] after such receipt or [...***...] after discovery
of a Latent Defect, as applicable, then the Supplied Item will be deemed to have been accepted by Cardiome on the [...***...] after
such receipt or the [...***...] after discovery of the Latent Defect, as applicable.

 

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(b)        Promptly
after timely delivery to SteadyMed of any notice of rejection, Cardiome shall cooperate with SteadyMed in determining whether such
rejection is necessary or justified. SteadyMed will evaluate process issues and other reasons for any non-conformity. SteadyMed
shall notify Cardiome as promptly as reasonably possible whether it accepts Cardiome’s basis for any rejection. Whether or
not SteadyMed accepts Cardiome’s assertion that certain Supplied Item is Defective Product, SteadyMed shall use Commercially
Reasonable Efforts to replace such allegedly Defective Product with Supplied Item that conforms to the Product Warranty as promptly
as practicable. If SteadyMed disagrees with Cardiome’s assertion that certain Supplied Item is Defective Product, a sample
of the rejected Supplied Item shall be submitted to a mutually acceptable independent Third Party laboratory, which shall determine
whether such Supplied Item is Defective Product. The Parties agree that such laboratory’s determination shall be final and
binding upon the Parties. The Party against whom the Third Party laboratory rules shall bear the reasonable costs of such testing.
If the Third Party laboratory rules that the Supplied Item is not Defective Product, Cardiome shall purchase such Supplied Item
at the agreed-upon price, irrespective of whether SteadyMed has already replaced it.

 

4.10        Remedy
for Defective Products. In the event of Cardiome’s rejection of Defective Products in accordance with Section 4.9,
SteadyMed shall promptly, at Cardiome’s election, either: (i) refund the aggregate amount paid for the Defective Products,
if Cardiome previously paid for such Defective Products; (ii) offset the amount paid for the Defective Products, if Cardiome previously
paid for such Defective Products, against other amounts due to SteadyMed hereunder; or (iii) at no cost to Cardiome beyond the
amount invoiced for the Defective Products, replace the Defective Products with Supplied Items conforming to the Product Warranty
as promptly as practicable. This Section 4.10 and Section 4.9 above collectively set forth Cardiome’s exclusive
remedy, and SteadyMed’s sole liability, for delivery of Defective Product.

 

4.11        Disposition
of Rejected Product. Cardiome shall dispose of rejected Supplied Items as instructed by SteadyMed in writing. If SteadyMed
fails to instruct Cardiome as to the disposition of rejected Supplied Items within [...***...] after SteadyMed notifies Cardiome
that SteadyMed accepts Cardiome’s basis for rejection of such Supplied Item or the issuance of the Third Party laboratory’s
determination regarding the conformity or non-conformity of the rejected Supplied Items to the Product Warranty (as applicable),
Cardiome may either return such rejected Supplied Item to SteadyMed or destroy such rejected Supplied Item in compliance with
Applicable Laws, and SteadyMed shall promptly reimburse Cardiome for all direct, documented out-of-pocket costs incurred by Cardiome
in respect of such return or destruction.

 

4.12        Cardiome
Review of Quality Control Documentation. SteadyMed, or SteadyMed’s vendors shall maintain all quality control documentation
and Product acceptance test results for Supplied Item supplied hereunder for a period and in a manner consistent the Quality Agreement
and applicable Manufacturing Standards. Cardiome may periodically review as often as necessary such documentation and results,
and, as set forth in the Quality Agreement, verify the adherence of SteadyMed to the quality control procedures and standards
set forth in the Quality Agreement or prescribed by applicable Manufacturing Standards. Such review shall be on reasonable prior
notice and conducted during business hours and in a manner that does not unreasonably disrupt SteadyMed’s business or operations.

 

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4.13        Facility
Inspection by Cardiome. SteadyMed agrees, and shall use Commercially Reasonable Efforts to obtain each Contract Manufacturer’s
agreement, that a reasonable number of Cardiome representatives (but no more than a total of three persons per inspection) shall
have the right, pursuant to a reasonable confidentiality agreement with SteadyMed and the applicable Contract Manufacturer, no
more than once per Year (unless any such inspection reveals a material compliance issue, in which event Cardiome and its respective
agents shall have the right to conduct such additional inspections during such Year as necessary to verify that such issue has
been remedied), upon reasonable prior notice to SteadyMed and the applicable Manufacturer and during business hours, and in a
manner that does not disrupt SteadyMed’s or the applicable Manufacturer’s operations, to inspect the portion of the
applicable Manufacturing Facility where the applicable Supplied Item is Manufactured as well as to observe the Manufacturing of
the Supplied Item. If the request for inspection is made at Cardiome’s request, Cardiome will pay for the costs of said
inspection if so required by the applicable Contract Manufacturer (unless such inspection reveals a material compliance issue).
Following such inspection, Cardiome shall discuss its observations and conclusions with SteadyMed. If the Parties mutually agree
that any corrective actions by SteadyMed or a Manufacturer are necessary, SteadyMed shall use Commercially Reasonable Efforts
to implement, or cause the Manufacturer to implement, such agreed corrective actions as soon as practicable.

 

4.14        Regulatory
Inspections.

 

(a)        Inspection
by Regulatory Authorities in the Territory. Upon the request of any Regulatory Authority in a country of the Territory in which
Cardiome or its Affiliate has filed a Regulatory Application or obtained Regulatory Approval for Finished Product or finished Bright
Stock in the Field, SteadyMed shall provide, and use its Commercially Reasonable Efforts to contractually require and cause each
Contract Manufacturer listed in the registration dossier to provide, such Regulatory Authority reasonable access to observe and
inspect the applicable Manufacturing Facility and the procedures used for the Manufacture of the applicable Supplied Item and to
audit such facility for compliance with applicable Manufacturing Standards. Without limiting the generality of the foregoing, SteadyMed
agrees to cooperate, and to use Commercially Reasonable Efforts to cause each Contract Manufacturer to cooperate, with any inspection
by any such Regulatory Authority, and to provide Cardiome a copy of any inspection or audit report resulting from any such inspection.

 

(b)        Notification
of Inspections. SteadyMed agrees to notify or to cause the applicable Contract Manufacturer to notify Cardiome within [...***...]
of any written or oral inquiries, notifications or inspection activity by the FDA or the applicable Regulatory Authority in a Major
Market specifically in regard to a Supplied Item and immediately by telephone after learning of any such unannounced visit or inspection.
SteadyMed shall furnish to Cardiome (i) within [...***...] after receipt, any report or correspondence issued by the FDA or any
such Regulatory Authority in a Major Market in connection with such inquiry, notification or inspection, including any FDA Form
483 (List of Inspectional Observations) or applicable portions of any FDA Warning Letters that pertain to a Supplied Item, and
(ii) not later than [...***...] after submission to FDA or any such other Regulatory Authority, copies of responses or explanations
relating to items set forth above, in each case redacted of trade secrets or other confidential information of SteadyMed or the
applicable Contract Manufacturer that are unrelated to SteadyMed’s obligations under this Article 4 and the Manufacture
of Supplied Items hereunder. After the filing of such response with the FDA or such other Regulatory Authority, SteadyMed shall
promptly notify Cardiome of any further contacts with the FDA or such Regulatory Authority relating to the subject matter of the
response.

 

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(c)        Remedial
Actions. SteadyMed shall notify, or shall cause the applicable Contract Manufacturer to notify, Cardiome immediately in writing
in the event any action is taken or threatened by FDA or any Regulatory Authority in a Major Market relating to the Manufacture
of a Supplied Item or to the applicable Manufacturing Facility that, in each case, would reasonably be expected to impair the ability
of SteadyMed to Manufacture, or have Manufactured, and supply such Supplied Item in accordance with this Agreement. SteadyMed shall
use Commercially Reasonable Efforts to address and resolve as soon as possible any issues, concerns or warnings from any such Regulatory
Authority that would reasonably be expected to affect SteadyMed’s ability to Manufacture, or have Manufactured, and supply
Supplied Items in accordance with this Agreement. To the extent SteadyMed or the applicable Contract Manufacturer is required by
such Regulatory Authority to implement a plan of remediation or to make other modifications or changes to the applicable Manufacturing
Facility or Manufacturing processes in order to address and resolve any such issues, concerns or warnings, SteadyMed shall prepare,
or cause the Contract Manufacturer to prepare, such plan as soon as possible and provide a copy thereof to Cardiome, and shall
use Commercially Reasonable Efforts to implement, or to cause the Contract Manufacturer to implement, such plan as soon as possible.

 

Article
5

 

REGULATORY
MATTERS

 

5.1         Regulatory
Responsibility.

 

(a)        Cardiome
shall be solely responsible for regulatory matters for Supplied Items in the Field in the Territory, at Cardiome’s sole expense
(except as expressly set forth below). Without limiting the generality of the foregoing, Cardiome shall be solely responsible,
at its sole expense (except as expressly set forth below), for: (i) filing and maintaining applications for Regulatory Approval
and obtaining and maintaining Regulatory Approvals for Supplied Items in the Field in the Territory; (ii) complying with all post-approval
regulatory and medical reporting obligations for Supplied Items in the Territory; and (iii) verifying and assuring the compliance
of Product Labels and Inserts and Promotional Materials with Applicable Laws in the Territory. SteadyMed shall cover [...***...]
of the filing fees payable to Regulatory Authorities in the Major Markets with respect to applications for Regulatory Approval
for Supplied Items in the Field in the Major Markets up to a maximum of [...***...] in the aggregate. Cardiome shall be the sponsor
and sole owner of all applications for Regulatory Approval and all Regulatory Approvals for Supplied Items in the Field in the
Territory.

 

(b)        For
the avoidance of doubt, and notwithstanding Section 5.1(a) or any other provision of this Agreement to the contrary: (i)
SteadyMed shall be solely responsible for, and shall have the sole right to control, all worldwide regulatory matters for the Device
and the SteadyMed Platform, and SteadyMed shall be the sole owner of all regulatory filings and regulatory approvals with respect
to the Device (other than as incorporated in Finished Product or Bright Stock for Commercialization in the Field in the Territory)
and the SteadyMed Platform, provided that SteadyMed shall grant Cardiome the right to access and reference, and authorize Regulatory
Authorities in the Territory to access and reference, such regulatory filings and regulatory approvals of SteadyMed to the extent
necessary for Cardiome to apply for, obtain and maintain Regulatory Approvals for Supplied Items in the Field in the Territory
in accordance with this Agreement; and (ii) no regulatory filing or regulatory approval in the Territory with respect to the Device
(other than as incorporated into a Supplied Item) or the SteadyMed Platform shall be considered Regulatory Applications or Regulatory
Approvals for Supplied Items in the Field in the Territory for any purpose under this Agreement.

 

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(c)        SteadyMed
will provide to Cardiome their complete dossier in a suitable format (and any supporting information) which is utilized for Regulatory
Approval in the United States on or before submission in the United States. Cardiome shall (i) consult in good faith with SteadyMed
in preparing applications for Regulatory Approval in the Field in the Territory; and (ii) provide SteadyMed with copies of all
draft applications for Regulatory Approval in the Field in the Territory for review and comment prior to submission. Cardiome will
also provide copies of all further routine regulatory submissions to SteadyMed subsequent to submission on an annual basis.

 

5.2         Further
Studies for Regulatory Approval. The JSC will be responsible for reviewing any further clinical studies that may be required
by a Regulatory Authority (for example, pK studies) in order to complete an application for Regulatory Approval in the Field in
the Territory. If the JSC determines to proceed, then SteadyMed will pay [...***...] of the cost of such study(s).

 

5.3         Post-Approval
and Reimbursement Studies. Should any Regulatory Authority in a Major Market require the conduct, after granting Regulatory
Approval in such Major Market, of any clinical study of Finished Product or finished Bright Stock (with or without Finished IS)
as a condition to the grant or continuing effectiveness of Regulatory Approval in such Major Market, or for reimbursement for
a Finished Product or finished Bright Stock (with or without Finished IS) (a “Post-Approval or Reimbursement Study”),
then, subject to the Parties’ mutual written approval of the protocol for such Post-Approval or Reimbursement Study and
mutual written agreement on the budget for the conduct of such Post-Approval Study:

 

(a)        Cardiome
shall be responsible for conducting such Post-Approval or Reimbursement Study in accordance with the requirements of such Regulatory
Authority and in compliance with Applicable Laws, including, without limitation, applicable good clinical practices in effect in
such Major Market;

 

(b)        the
Parties shall share approve a budget through the JSC and [...***...] the cost of required clinical supply of Supplied Items for
such Post-Approval or Reimbursement Study;

 

(c)        SteadyMed
shall reimburse Cardiome for [...***...] of all other documented external (i.e., out-of-pocket) costs of conducting such Post-Approval
or Reimbursement Study, to the extent such costs are within the approved budget;

 

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(d)        Cardiome
shall prepare and deliver to SteadyMed as promptly as reasonably practicable the draft and final reports of the results of such
Post-Approval or Reimbursement Study; and

 

(e)        SteadyMed
shall have the right to use and disclose such results (i) in support of SteadyMed’s regulatory filings and regulatory approvals
with respect to (A) Product outside the Territory or (B) the Device, Infusion Sets or the SteadyMed Platform anywhere in the world,
(ii) as contemplated by the SDEA, or (ii) as otherwise required by Applicable Law.

 

For the avoidance of doubt
a “Reimbursement Study” shall not include market research, pricing research, third-party payor analysis, or, similar
work.

 

Except as expressly permitted
above in this Section 5.2 with respect to Post-Approval or Reimbursement Studies, Cardiome and its Affiliates shall not
conduct or have conducted, or permit any Sublicensee, Subdistributor or other Third Party to conduct, any clinical study of (1)
Product (including, without limitation, Finished Product or Bright Stock), whether with or without Infusion set (including, without
limitation, Finished IS), (2) Device, (3) Drug Product, or (4) Infusion set (including, without limitation, Finished IS). Further,
in no event shall Cardiome and its Affiliates conduct or have conducted, or permit any Sublicensee, Subdistributor or other Third
Party to conduct, any such clinical study.

 

5.4        Regulatory
Cooperation. SteadyMed shall cooperate with any reasonable request by Cardiome for SteadyMed Know-How or other information
in the possession of SteadyMed or its Affiliates that is necessary for Cardiome to file and maintain Regulatory Applications or
obtain and maintain Regulatory Approvals for the Supplied Items in the Field in the Territory. Without limiting the generality
of the foregoing, SteadyMed shall disclose or make available to Cardiome in a timely manner all available manufacturing and quality
control data, CMC data and other information related to Supplied Items and the Manufacture thereof in the possession of SteadyMed
or its Affiliates as is reasonably necessary for Cardiome to perform its obligations under this Article 5.

 

5.5        Regulatory
Communications. Cardiome shall keep SteadyMed informed of any material correspondence and communications with Regulatory Authorities
in the Territory that would reasonably be expected to affect the status or scope of Regulatory Approvals for Supplied Item in
the Field in the Territory.

 

5.6        Safety
Reporting; Pharmacovigilance. Cardiome shall be solely responsible, at its own expense, for complying with, and shall require
its Affiliates and Sublicensees to comply with, all requirements of Applicable Laws which relating to pharmacovigilance and the
reporting and investigation of adverse events and product complaints with respect to the Product in the Territory. SteadyMed will
be responsible at SteadyMed’s expense for conducting investigations of manufacturing elements of product complaints and
issuing an investigation report as soon as reasonably possible. No later than three (3) months after the Effective Date, the Parties
shall negotiate in good faith and enter into a pharmacovigilance/safety data exchange agreement for the Product (the “SDEA”),
which shall set forth standard operating procedures governing the collection, investigation, reporting, and exchange of information
concerning adverse drug reactions/experiences. The terms of the SDEA shall be no less stringent than those required by FDA, EMA
and ICH guidelines and shall be sufficient to permit each Party to comply with its regulatory and legal requirements for the management
and reporting of safety data regarding the Product by providing for the exchange of relevant information in appropriate format
within applicable timeframes. SteadyMed shall be responsible for maintaining, at its own expense, a global safety database for
the Product. In the event of a conflict between the provisions of this Agreement and the SDEA, the SDEA shall control solely with
respect to the pharmacovigilance/safety data exchange obligations and responsibilities of the Parties with respect to Product,
and this Agreement shall control with respect to all other matters.

 

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5.7         Threatened
Agency Action. Each Party shall promptly notify the other Party’s Regulatory Affairs Department contacts designated
in writing by the other Party of any information that such Party receives regarding any threatened or pending action by any Regulatory
Authority that may affect the proposed labeling or Approved Labeling for a Product or Infusion set in the Field in the U.S. or
any Major Market or the continued Commercialization of a Product or Infusion set in the U.S. or any Major Market. Upon receipt
of any such information, each Party shall consider in good faith the other Party’s comments with respect to the appropriate
action to be taken; provided, however, that nothing herein shall be construed to prevent a Party from complying
with its obligations under the SDEA or with such Party’s regulatory reporting obligations under Applicable Laws.

 

5.8         Product
Recalls.

 

(a)        In
the event that any Regulatory Authority issues or requests a recall or takes similar action in connection with a Supplied Item
in the Territory, or in the event either Party determines that an event, incident or circumstance has occurred that may result
in the need for a Supplied Item recall or market withdrawal in the Territory, the Party notified of or desiring such recall or
similar action shall, within 24 hours, advise the other Party thereof by telephone (confirmed by email or facsimile), email or
facsimile. The Parties shall, to the extent practicable, endeavor to discuss and agree upon whether to recall or withdraw such
Supplied Item in the Territory; provided that if such discussion is not practicable or if the Parties fail to so agree within
an appropriate time period (recognizing the exigencies of the situation), then such recall or withdrawal shall be undertaken. If
any Regulatory Authority issues or requests a recall or takes similar action in connection with a Supplied Item in the Territory,
or a Party decides that a recall or withdrawal of a Supplied Item in the Territory is necessary, Cardiome shall be responsible
for conducting such recall or withdrawal in the Territory in accordance with Applicable Law, the requirements of the applicable
Regulatory Authority, and SteadyMed’s instructions. The costs of conducting such recall or withdrawal shall be allocated
as set forth below in Section 5.8(b). To the extent that it is necessary or appropriate to communicate with any person in
the Territory, including any Regulatory Authority, the media or any customer, concerning any recall, withdrawal, other remedial
action, event, incidence or circumstance concerning a Supplied Item in the Territory, as between the Parties, Cardiome shall be
responsible for such communication.

 

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(b)        Any
recall conducted, or required to be conducted, by Cardiome with respect to a Supplied Item in the Territory will be conducted at
Cardiome’s sole cost and expense, unless the fact or circumstance giving rise to the need to conduct such recall was proximately
caused in whole or in part by a breach of, or non-compliance with, this Agreement or the Quality Agreement by SteadyMed or by both
Parties (such breach or non-compliance, a “Fault”; and the Party(ies) at Fault, the “At-Fault Party(ies)”).
If Cardiome believes in good faith that SteadyMed is at Fault, Cardiome shall notify SteadyMed in writing thereof as soon as possible
after Cardiome first receives notice or otherwise becomes aware that such recall is required, and if SteadyMed believes in good
faith that Cardiome is at Fault, SteadyMed shall so notify Cardiome as soon as possible after receipt of notice from Cardiome.
Within [...***...] after SteadyMed’s receipt of notice from Cardiome, the Parties will attempt in good faith to reach mutual
written agreement as to the relative Fault (if any) of each Party in causing the fact or circumstance giving rise to such recall
and as to how the associated costs and expenses should be borne by the Parties. If the Parties are unable to reach mutual written
agreement within an additional [...***...], then the Parties shall mutually select an independent expert with at least [...***...]
of industry experience with recalls of pharmaceutical products to determine whether or not one or both of the Parties is/are at
Fault and, if so, to assess the relative Fault (if any) of the At-Fault Party(ies). SteadyMed and Cardiome shall promptly respond
to the independent expert’s requests for information that the independent expert deems necessary to make his/her determination.
The determination of the independent expert will be binding on the Parties. Responsibility for the costs and expenses incurred
by Cardiome in conducting a recall of Supplied Item and the fees and costs of the independent expert shall be allocated as set
forth below:

 

(i)        If
the independent expert determines that neither Party is at Fault or that only Cardiome is at Fault, then Cardiome shall be solely
responsible for the costs and expenses of conducting such recall and for the fees and costs of the independent expert.

 

(ii)        If
the independent expert determines that both Parties are at Fault, then the reasonable and documented out-of-pocket (i.e., external)
costs and expenses incurred by Cardiome in conducting the recall and the fees and costs of the independent expert shall be shared
by the Parties in proportion to their relative Fault as determined by the independent expert.

 

(iii)        If
the independent expert determines that only SteadyMed is at Fault, then the reasonable and documented out-of-pocket (i.e., external)
costs and expenses incurred by Cardiome in conducting the recall and the fees and costs of the independent expert shall be borne
entirely by SteadyMed.

 

Article
6

 

COMMERCIALIZATION

 

6.1        Commercialization
Responsibility. Cardiome shall be solely responsible for Commercializing, at Cardiome’s sole expense, and has the exclusive
right to Commercialize, the Product in the Field in the Territory, subject to the terms and conditions of this Agreement.

 

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6.2        Commercialization
Plan. No later than 12 months prior to the anticipated Launch Date, Cardiome shall prepare and deliver to SteadyMed for review
a reasonably detailed written plan for the Commercialization of the Product in the Territory during the period beginning six (6)
months prior to the anticipated Launch Date and ending on the fifth (5th) anniversary thereof (the “Commercialization
Plan”). The Commercialization Plan shall include information regarding planned Commercialization activities for Supplied
Item in the Territory, including, without limitation, pre-launch activities, establishment of government or private payor and
reimbursement capabilities and pharmaceutical logistics capabilities, supply and inventory-related activities, Promotion, anticipated
number and geographic distribution/coverage of Sales Representatives by country, and Sales Force and tactical marketing activities
(such as market research to develop Product positioning key messages). Cardiome may amend or update the Commercialization Plan
from time to time to reflect changes in Cardiome’s Commercialization plans, and shall in any event provide SteadyMed with
annual updates to the Commercialization Plan, in each case, subject to the requirements of this Article 6. SteadyMed may
provide comments and suggestions regarding the Commercialization Plan and any amendment or update thereto to Cardiome, and Cardiome
agrees to consider such comments and suggestions in good faith. As used herein, the term “Commercialization Plan”
means the version of the Commercialization Plan most recently provided by Cardiome to SteadyMed. Cardiome shall deliver annual
written reports to SteadyMed of the Commercialization activities and efforts conducted by or on behalf of Cardiome and its Affiliates
for Supplied Item in the Territory during each Quarter, which shall include such detail regarding the matters described in Sections
3.2(c), and Sections 3.2(c) through 3.2(g), as the JSC may request or require or as may be reasonably required
for SteadyMed to assess Cardiome’s compliance with its obligations under Sections 6.3 and 6.4.

 

6.3        Commercialization
Diligence. Subject to Cardiome’s receipt of access to a complete electronic copy of SteadyMed’s New Drug Application
for Product and Infusion set in the Field as filed with the FDA and the required stability data for Product described below in
this Section 6.3, Cardiome shall use Commercially Reasonable Efforts: (a) to obtain and maintain Regulatory Approvals in
at least the Major Markets; (b) to obtain and maintain required Pricing Approvals in at least the Major Markets; (c) to initiate
commercial sale of Supplied Items in each Major Market within six (6) months after receipt of Regulatory Approval and any required
Pricing Approvals in such Major Market, and thereafter to Commercialize, and maximize Net Sales of, Supplied Items in the Field
in such Major Market; and (d) otherwise to conduct material Commercialization Plan activities substantially in accordance with
the timeline set forth in the Commercialization Plan. Without limiting the generality of the foregoing, no later than six (6)
months after the later of (i) Cardiome’s receipt of access to a complete electronic copy of SteadyMed’s New Drug Application
for Product as filed with the FDA and (ii) Cardiome’s receipt from SteadyMed of 12 months of stability data for Product,
Cardiome shall file a Regulatory Application with each of the EMA and the applicable national Regulatory Authority in Canada.
For clarity, SteadyMed shall be solely responsible for conducting the activities necessary to generate 12 months of stability
data for Product, at SteadyMed’s sole cost.

 

6.4        Pricing
Approvals; Reimbursement Efforts. Cardiome shall be solely responsible for obtaining and maintaining Pricing Approvals for
Supplied Items in the Field in the Territory and reimbursement status for Supplied Items in the Field in the Territory from key
governmental and non-governmental payors in the Territory, in each case, at Cardiome’s sole expense. Cardiome and its Affiliates
shall use Commercially Reasonable Efforts to obtain Pricing Approvals and reimbursement status for Supplied Items in the Field
in at least the Major Markets. Without limiting the generality of the foregoing, Cardiome shall have retained a qualified reimbursement
consultant (or have established internal reimbursement expertise and capability) for Supplied Items in the Territory no later
than the first filing of a Regulatory Application with the applicable Regulatory Authority in the first Major Market. Cardiome
shall keep SteadyMed regularly informed of the status of its efforts to obtain and maintain such Pricing Approvals and reimbursement
status.

 

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6.5         Terms
of Sale. The Parties acknowledge and agree that Cardiome will be solely responsible for establishing all terms of commercial
sale of Supplied Items in the Territory (including the price(s) at which Supplied Items will be sold).

 

6.6         Product
Returns. Cardiome shall have the sole responsibility for processing Supplied Item returns in the Territory.

 

6.7         Non-Compete.
Neither Cardiome nor any of its Affiliates shall directly or indirectly Commercialize any Competing Product in the Territory during
the Term.

 

6.8         Promotional
Materials; Product Labels and Inserts.

 

(a)        Cardiome
shall provide SteadyMed with samples of all proposed Promotional Materials proposed to be used in the Territory, and shall obtain
SteadyMed’s approval of the form and content of such Promotional Materials prior to the first use or distribution thereof
anywhere in the Territory. Upon Cardiome’s reasonable request, SteadyMed shall provide Cardiome with samples of appropriate
(as determined by SteadyMed in good faith) promotional materials for Products and Infusion sets used by SteadyMed outside the Territory
solely to assist Cardiome in developing Promotional Materials for the Territory, subject to SteadyMed’s approval as set forth
above. Cardiome shall be solely responsible for verifying and ensuring that all Promotional Materials used in any country of the
Territory comply with Commercialization Standards and Applicable Laws in such country, and for translating, and ensuring the accuracy
of any translation, of such Promotional Materials into other languages; in each case, at Cardiome’s sole cost. Cardiome warrants
and represents that all Promotional Materials shall be in compliance with all Applicable Laws at the time they are used. In the
event that any of the Promotional Materials is found to be not in compliance with Applicable Laws, Cardiome shall immediately cease
using and distributing such non-compliant Promotional Materials and shall alter or amend the Promotional Materials to ensure compliance.

 

(b)        Cardiome
shall be solely responsible for ensuring that the Product Labeling and Inserts to be used in the Manufacture of Supplied Items
for any country of the Territory, which Cardiome shall provide to SteadyMed or the applicable Contract Manufacturer for use in
the Manufacture of such Supplied Item: (i) conforms strictly to the Approved Labeling for such Supplied Item in such country; and
(ii) otherwise complies to Applicable Laws in such country; in each case, at Cardiome’s sole cost. Cardiome shall also be
solely responsible for all translation, and ensuring the accuracy of translation, of Product Labels and Inserts into any other
language; in each case, at Cardiome’s sole cost. For the avoidance of doubt, the manufacturing costs related to the production
of the Product Labeling and Inserts should be paid by SteadyMed, but considered part of COGS.

 

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(c)        SteadyMed
shall own all right, title and interest in and to all Promotional Materials and Product Labels and Inserts, in each case including
all content contained therein, all Copyrights therein and all SteadyMed Trademarks contained therein (but excluding any Cardiome
House Marks contained therein). To the extent Cardiome (or any of its Affiliates, Sublicensees or other agents) obtains or otherwise
has a claim to any of the foregoing, Cardiome shall assign, and hereby does assign, to SteadyMed all of Cardiome’s (and its
Affiliates’, Sublicensees’ and other agents’) right, title and interest in and to such Promotional Materials
and Product Labels and Inserts, in each case including all content contained therein, all Copyrights therein and all SteadyMed
Trademarks contained therein (but excluding any Cardiome House Marks).

 

(d)        Except
for the use of the SteadyMed House Marks and Cardiome House Marks in Promotional Materials and Product Labels and Inserts as expressly
permitted by this Agreement, Cardiome shall Promote Product and Infusion set in the Territory only under the Product Marks.

 

(e)        Subject
to the terms and conditions of this Agreement, including, without limitation, Section 11.7 and the preceding provisions
of this Section 6.8, SteadyMed hereby grants to Cardiome during the Term: (i) a non-exclusive, royalty-free license to use
and display the SteadyMed Trademarks on Promotional Materials and Product Labels and Inserts, in each case, solely in connection
with the Commercialization of Supplied Items in the Field in the Territory in accordance with this Agreement; and (ii) a non-exclusive,
royalty-free license under SteadyMed’s Copyrights in the Promotional Materials and Product Labels and Inserts, to copy, use,
distribute and publicly display Promotional Materials and Product Labels and Inserts, in each case, solely connection with the
Commercialization of Supplied Items in the Field in the Territory in accordance with this Agreement. The foregoing licenses are
non-transferable and non-assignable (except as expressly set forth in Section 15.6), and Cardiome shall have the right to
grant sublicenses under the foregoing licenses solely in conjunction with the grant of a Sublicense in accordance with Section
2.3. The licenses granted under this Section 6.8(e), including all sublicenses granted thereunder, shall automatically
terminate upon the expiration or termination of this Agreement. In addition, SteadyMed may terminate the SteadyMed Trademark license
if, in SteadyMed’s reasonable discretion, Cardiome’s use of any SteadyMed Trademark tarnishes, blurs or dilutes the
quality associated with such SteadyMed Trademarks or the associated goodwill and such unauthorized use is not cured within [...***...]
of notice of breach.

 

(f)        Requests
for Medical Information. Cardiome shall have the exclusive right and responsibility to respond to all questions and requests
for information regarding Product received by the Sales Force or any MSL from prescribers or health care providers in the Territory
in accordance with Commercialization Standards and Applicable Laws.

 

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    CONFIDENTIAL

    

 

6.9          Compliance
with Laws and Policies.

 

(a)        Cardiome
and its Affiliates shall comply, and shall require Sublicensees and Permitted Subdistributors to comply, with: (i) all Applicable
Laws in Commercializing the Products in the Territory, including Anti-Corruption Laws; the EU Data Protection Directive 95/46/EC,
other Applicable Laws concerning data privacy and data protection, and any applicable national legislation enacted thereunder;
supranational, national, regional and local insurance “fraud and abuse,” consumer protection and false claims statutes
and regulations, any other mandatory corporate governance laws; (ii) the Cardiome Code of Business Conduct and Ethics; and (iii)
applicable industry codes and guidelines concerning the advertising or promotion of prescription medicines in the Territory, including
the EFPIA HCP Code (EFPIA code on the Promotion of Prescription-Only Medicines to, and Interactions with, Healthcare Professionals),
the EFPIA HCP/HCO Code (EFPIA code on Disclosures of Transfers of Value from Pharmaceutical Companies to Healthcare Professionals
and Healthcare Organizations), other applicable EFPIA codes, and equivalents thereof in the Territory (collectively, “Commercialization
Standards”). Cardiome and its Affiliates that are involved in Commercializing the Product in the Territory shall establish,
and maintain throughout the Term, adequate procedures to support compliance with the Commercialization Standards and shall promptly
notify SteadyMed in writing of any material non-compliance with the Commercialization Standards by Cardiome and its Affiliates,
Sublicensees and Permitted Subdistributors, or any Sales Representative or other Representative of any of them.

 

(b)        Cardiome
shall ensure that all Sales Representatives promoting Supplied Items in the Territory (i) have skills, training and experience
consistent with industry standards applicable to the promotion, marketing and sale of a prescription pharmaceutical product, (ii)
have satisfactorily completed all training required by this Agreement and (iii) are adequately equipped and knowledgeable with
respect to the Supplied Items.

 

(c)        Cardiome
shall not, and shall ensure that its Affiliates and Sublicensees and its and their respective Sales Representatives, sales managers,
MSLs and contract sales forces shall not: (i) make any statement, representation or warranty, oral or written, concerning any Supplied
Item, or use any Promotional Material, that is inconsistent with, or contrary to, the Approved Labeling in the applicable country
of the Territory or in violation of any Applicable Laws; or (ii) make any arrangements with, make payments to or provide gifts
or other incentives to any healthcare professionals in violation of Applicable Laws relating thereto. Cardiome shall ensure that
all such Sales Representatives, sales managers, MSLs and contract sales forces are familiar with the procedures, obligations, rights,
and responsibilities imposed by the terms of this Agreement as applicable to the performance of Promotional activities hereunder.

 

6.10        Training
Programs.

 

(a)        Prior
to Launch, SteadyMed shall provide [...***...] of mutually-agreed initial training, at a single location, to the Sales Force, sales
managers and/or medical directors of Cardiome and its Affiliates with respect to: (i) pulmonary arterial hypertension, (ii) Product
knowledge, (iii) competitive Product knowledge, (iv) reporting of adverse events and product complaints in accordance with the
terms of the SDEA, and (v) use of any Promotional Materials provided by SteadyMed (collectively, the “Initial Sales Force
Training”). SteadyMed shall provide Cardiome with a copy of all training materials to be used by SteadyMed in the Initial
Sales Force Training reasonably in advance of such training for review. For clarity, SteadyMed shall have no responsibility for
training the Sales Force, sales managers and/or medical directors of Cardiome and its Affiliates with respect to compliance with
Applicable Laws in the Territory.

 

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(b)        The
Initial Sales Force Training will be conducted, and all training materials provided by SteadyMed to Cardiome shall be prepared,
in English. Cardiome shall be responsible for any required translation of the Initial Sales Force Training and any training materials
provided by SteadyMed.

 

(c)        Except
for the Initial Sales Force Training, both before and after Launch, Cardiome shall provide training to the Sales Force, sales managers
and/or medical directors of Cardiome and its Affiliates with respect to: (i) compliance with the Commercialization Standards and
other Applicable Laws in the Territory; (ii) all subject matter covered by the Initial Sales Force Training and any training materials
provided by SteadyMed; and (iii) compliance with any other Applicable Laws in the Territory or any portion thereof pertaining to
the Commercialization of Supplied Items (or pharmaceutical products generally).

 

Article
7

 

FINANCIAL TERMS OF LICENSE

 

7.1         One-Time
Exclusivity Fee. Cardiome (or an Affiliate) will pay to SteadyMed a one-time, non-refundable, non-creditable license fee in
the amount of $3,000,000 within [...***...] of the Effective Date.

 

7.2         One-Time
Regulatory Milestones. Cardiome (or an Affiliate) shall pay to SteadyMed each of the following one-time, non-refundable, non-creditable
milestone payments within [...***...] after the first achievement (whether by Cardiome or any of its Affiliates or Sublicensees)
of the corresponding milestone event by a Product:

	Regulatory Milestone Event	 	Milestone

Payment
	 	 	 
	First Regulatory Approval for Product in the Field either (i) by EMA if the centralized European Union filing procedure is used or (i) by the applicable Regulatory Authority in the first Major Market in Europe if the centralized European Union filing procedure is not used, whichever occurs first	 	[...***...]
	 	 	 
	Regulatory Approval for Product in the Field in Canada	 	[...***...]
	 	 	 
	Receipt of Pricing Approval for Product in the United Kingdom	 	[...***...]
	 	 	 
	Receipt of Pricing Approval for Product in Italy	 	[...***...]
	 	 	 
	Receipt of Pricing Approval for Product in France	 	[...***...]
	 	 	 
	Receipt of Pricing Approval for Product in Germany	 	[...***...]
	 	 	 
	Receipt of Pricing Approval for Product in Canada	 	[...***...]

 

Each of the milestone payments
above shall be payable only one time, for the first achievement by any Product of the applicable milestone event.

 

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7.3         One-Time
Cumulative Net Sales Milestone. Cardiome (or an Affiliate) shall pay to SteadyMed a one-time, non-refundable, non-creditable
milestone payment of [...***...] within [...***...] in which cumulative Net Sales of all Supplied Items by Cardiome, its Affiliates
and Sublicensees in the Territory since the Launch Date equal or exceed [...***...] in the aggregate. The foregoing milestone
payment shall be payable only one time, for the first achievement of the foregoing milestone.

 

7.4         Royalties.
Cardiome (or an Affiliate) shall pay royalties to SteadyMed on the aggregate annual Royalty Base for sales of all Supplied Items
by Cardiome, its Affiliates and Sublicensees in each Year at the applicable rate(s) set forth below:

	Annual Royalty Base Increments	 	Royalty Rate
	 	 	 
	That portion of the aggregate annual Royalty Base for sales of all Supplied Items by Cardiome, its Affiliates and Sublicensees in a Year that is less than or equal to [...***...]	 	[...***...]
	 	 	 
	That portion of aggregate annual Royalty Base for sales of all Supplied Items by Cardiome, its Affiliates and Sublicensees in such Year that is greater than [...***...] and less than or equal to [...***...]	 	[...***...]
	 	 	 
	That portion of aggregate annual Royalty Base for sales of Products by Cardiome, its Affiliates and Sublicensees in such Year that is greater than [...***...]	 	[...***...]

 

Article
8

PAYMENTS; RECORDS; AUDITS

 

8.1         Payment;
Reports. Royalties under Section 7.4 shall be reported and paid as follows:

 

(a)        Cardiome
will provide a written royalty estimate within [...***...] after the end of each Quarter; and

 

(b)        Cardiome
will provide a final written royalty report and the quarterly royalty payment within [...***...] after the end of the Quarter.
Each payment of royalties shall be accompanied by a report of the Royalty Base for such Quarter, in sufficient detail to permit
confirmation of the accuracy of the payment made, including: (a) [...***...], (i) gross sales, (ii) Net Sales, (iii) [...***...],
(iv) the Royalty Base, (v) Transfer Price (determined in accordance with the definition of Royalty Base), (vi) Average Net Selling
Price, (vii) Average Transfer Price, and (viii) the Cardiome Margin (b) the royalty payable; and (c) the exchange rates used.

 

8.2        Exchange
Rate; Manner and Place of Payment. All payment amounts in this Agreement are expressed in U.S. dollars, and all payments hereunder
shall be payable in U.S. dollars. When conversion of payments from any foreign currency is required, such conversion shall be
calculated using an exchange rate equal to the average of the interbank rates of exchange for such currency as reported at OANDA.com
during the Quarter for which payment is due. All payments owed under this Agreement shall be made by wire transfer in immediately
available funds to the bank and account designated in writing by SteadyMed.

 

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    CONFIDENTIAL

    

 

8.3         Income
Tax Withholding. SteadyMed shall pay any and all taxes levied on account of any payments made to it under this Agreement.
If any taxes are required to be withheld by Cardiome from any payment made to SteadyMed under this Agreement, Cardiome shall (a)
deduct such taxes from the payment made to SteadyMed, (b) timely pay the taxes to the proper taxing authority, (c) send proof
of payment to SteadyMed and certify its receipt by the taxing authority within [...***...] following such payment, and (d) cooperate
with SteadyMed in any way reasonably requested by SteadyMed to obtain available reductions, credits or refunds of such taxes.
Without limiting the generality of the foregoing, upon request by SteadyMed, Cardiome shall provide SteadyMed such information
in Cardiome’s possession as may be reasonably necessary for SteadyMed to obtain the benefit of any present or future treaty
against double taxation which may apply to payments made to SteadyMed under this Agreement.

 

8.4         Records.
Each Party shall keep, or shall cause to be kept, for a period of [...***...] after the expiration or termination hereof or such
longer period as required by Applicable Law, complete and accurate books and records (financial and otherwise) pertaining to the
performance of its obligations hereunder, to the extent such information is tracked by such Party.

 

8.5         Compliance
Audits. Each Party shall maintain complete and accurate books and records relating to its compliance with Applicable Law,
and their Policies and the Compliance Provisions (AB/AC) (collectively, the “Compliance Records”) with respect
to its obligations under this Agreement for a period of [...***...] after the period to which such records relate or such longer
period as required by Applicable Law, which Compliance Records shall include: (a) its policies and procedures concerning compliance
with Applicable Law, (b) records of any investigations and remedial and disciplinary actions taken to address material violations
of Applicable Law, and (c) records of any payments made in connection with this Agreement.

 

8.6         Audits.

 

(a)        By
SteadyMed. Cardiome shall keep, and shall cause its Affiliates and Sublicensees to keep, complete and accurate records pertaining
to the purchase and sale or other disposition of Supplied Items in sufficient detail to permit SteadyMed to confirm the accuracy
of all royalty payments due hereunder for at least [...***...] following the end of the Year to which they pertain. SteadyMed shall
have the right, once annually, to cause an independent, certified public accountant reasonably acceptable to Cardiome to audit
such records solely to confirm the Royalty Base and royalties for a period covering not more than the preceding [...***...]. No
Year shall be subject to audit under this Section 8.6(a) more than once, except in the event of a restatement by Cardiome
of its audited financial statements for such Year. Such audits may be exercised during normal business hours upon reasonable prior
written notice of not less than [...***...] to Cardiome in the location where the records are maintained. The auditor shall execute
a reasonable written confidentiality agreement with Cardiome and shall disclose to SteadyMed only such information as is reasonably
necessary to provide SteadyMed with information regarding any actual or potential discrepancies between amounts reported and actually
paid and amounts payable under this Agreement. The auditor shall send a copy of the report to Cardiome at the same time it is sent
to SteadyMed. The report sent to both parties shall include the methodology and calculations used to determine the results. Prompt
adjustments shall be made by the parties to reflect the results of such audit. SteadyMed shall bear the full cost of such audit
unless such audit discloses an underpayment by Cardiome of more than [...***...] of the amount due for any Year under this Agreement,
in which case, Cardiome shall bear the full cost of such audit and shall promptly remit to SteadyMed the amount of any underpayment.
If such audit discloses an overpayment by Cardiome, then Cardiome shall deduct the amount of such overpayment from amounts otherwise
owed to SteadyMed under this Agreement.

 

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    CONFIDENTIAL

    

 

(b)        By
Cardiome. SteadyMed shall keep, and shall cause its Affiliates and Sublicensees to keep, complete and accurate records pertaining
to the Manufacture of Supplied Items in sufficient detail to permit Cardiome to confirm the accuracy of the COGS reported by SteadyMed
in invoices for Supplied Items hereunder for at least [...***...] following the end of the Year to which they pertain. Cardiome
shall have the right, once annually, to cause an independent, certified public accountant reasonably acceptable to SteadyMed to
audit such records solely to confirm the COGS reported by SteadyMed in invoices for Supplied Items for a period covering not more
than the preceding [...***...], and to confirm the COGS of similar Supplied Items destined for the United States market, in reference
to Section 4.5. No Year shall be subject to audit under this Section 8.6(b) more than once, except in the event of
a restatement by SteadyMed of its audited financial statements for such Year. Such audits may be exercised during normal business
hours upon reasonable prior written notice of not less than [...***...] to SteadyMed in the location where the records are maintained.
The auditor shall execute a reasonable written confidentiality agreement with SteadyMed and shall disclose to Cardiome only such
information as is reasonably necessary to provide Cardiome with information regarding any actual or potential discrepancies between
the COGS reported and actual COGS that resulted Cardiome’s payment of inaccurately-calculated Transfer Price(s) for Supplied
Item(s) under this Agreement. The auditor shall send a copy of the report to SteadyMed at the same time it is sent to Cardiome.
The report sent to both parties shall include the methodology and calculations used to determine the results. Prompt adjustments
shall be made by the parties to reflect the results of such audit. Cardiome shall bear the full cost of such audit unless such
audit discloses an overstatement of the aggregate COGS of all Supplied Items supplied by SteadyMed of more than [...***...] of
the aggregate actual COGS of such Supplied Items for any Year under this Agreement, in which case, SteadyMed shall bear the full
cost of such audit and shall promptly issue a credit to Cardiome in the amount of the overstatement.

 

8.7        Late
Payments. In the event that any payment due under this Agreement (including but not limited to Sections 8.5 and 8.6
above) is not made when due, the payment shall accrue interest at a rate equal to [...***...] for the period from the due
date for payment until the date of actual payment. The payment of such interest shall not limit any Party to this Agreement from
exercising any other rights it may have as a consequence of the lateness of any payment.

 

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Article
9

 

BUSINESS
ETHICS

 

9.1        Compliance
Program. Each Party shall maintain, implement and enforce an anti-bribery/anti-corruption (“AB/AC”) compliance
program to ensure compliance by such Party, its Affiliates, and its and their respective Representatives with applicable Anti-Corruption
Laws in connection with the matters that are the subject of this Agreement or the performance of its obligations hereunder. In
addition, Cardiome shall require each Sublicensee, Permitted Subdistributor or other Third Party engaged after the Effective Date
to Promote the Product in the Territory to maintain, implement and enforce an AB/AC compliance program to ensure compliance, mutatis
mutandis, by such Sublicensee, Permitted Subdistributor or other Third Party, their respective affiliates, and their respective
officers, directors, employees, agents and representatives with applicable Anti-Corruption Laws in connection with the matters
that are the subject of this Agreement or the performance of its obligations hereunder.

 

9.2        Compliance
Certificate. Each Party shall, at the written request of the other Party no more than once per Year, deliver to the other
Party a certificate executed by an authorized officer of the delivering Party certifying compliance by such Party, its Affiliates,
and its and their respective Representatives with applicable Anti-Corruption Laws in connection with the matters that are the
subject of this Agreement or the performance of its obligations hereunder.

 

Article
10

 

CONFIDENTIALITY

 

10.1        Confidential
Information. Except to the extent expressly authorized by this Agreement, the Receiving Party agrees that, at all times during
the Term and for [...***...] following the expiration or termination hereof, the Receiving Party (i) shall keep completely confidential
and shall not publish or otherwise disclose any Confidential Information furnished to it by the Disclosing Party, except to those
Representatives of the Receiving Party and its Affiliates who have a need to know such information to perform the Receiving Party’s
obligations hereunder (and who shall be advised of the Receiving Party’s obligations hereunder and who are bound by confidentiality
obligations with respect to such Confidential Information no less onerous than those set forth in this Agreement) and (ii) shall
not use any Confidential Information of the Disclosing Party directly or indirectly for any purpose other than performing its
obligations hereunder.

 

Exceptions
to Confidentiality. The Receiving Party’s obligations set forth in this Agreement shall not extend to any Confidential
Information of the Disclosing Party that the Receiving Party can establish by competent evidence: (a) is now, or hereafter becomes,
through no act or failure to act on the part of the Receiving Party, generally known or available; (b) is known by the Receiving
Party and/or any of its Affiliates at the time of receiving such information, as evidenced by its records; (c) is hereafter furnished
to the Receiving Party and/or any of its Affiliates by a Third Party, as a matter of right and without restriction on disclosure;
or (d) is independently discovered or developed by the Receiving Party and/or any of its Affiliates, without the aid, use or application
of any Confidential Information of the Disclosing Party.

 

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10.2        Authorized
Disclosure. Notwithstanding the provisions of Section 10.1, the Receiving Party may disclose Confidential Information
of the Disclosing Party as expressly permitted by this Agreement, or if and to the extent such disclosure is reasonably necessary
in the following instances:

 

(a)        filing
or prosecuting Patents as permitted by this Agreement;

 

(b)        enforcing
such Party’s rights and performing its obligations under this Agreement;

 

(c)        prosecuting
or defending litigation as permitted by this Agreement;

 

(d)        complying
with applicable court orders, applicable laws, rules or regulations, or the listing rules of any exchange on which the Receiving
Party’s securities are traded;

 

(e)        in
the case of Cardiome, disclosure to actual and potential Sublicensees, Permitted Subdistributors and other Third Party contractors
of Cardiome and its Affiliates, who, in each case, have a need to know such information in order for Cardiome to exercise its rights
or fulfill its obligations under this Agreement, provided, in each case, that any such Person agrees to be bound by terms of confidentiality
and non-use comparable in scope to those set forth in this Article 10;

 

(f)        in
the case of SteadyMed, the Contract Manufacturers, actual and potential licensees and sublicensees of SteadyMed’s retained
or reserved rights hereunder, and actual and potential Third Party contractors of SteadyMed or its Affiliates who have a need to
know such information in order for SteadyMed to exercise its rights or fulfill its obligations under this Agreement, provided,
in each case, that any such Person agrees to be bound by terms of confidentiality and non-use comparable in scope to those set
forth in this Article 10; and

 

(g)        disclosure
to Third Parties in connection with due diligence or similar investigations by such Third Parties, and disclosure to potential
Third Party investors, lenders or other financing sources in confidential financing documents, provided, in each case, that any
such Third Party agrees to be bound by reasonable obligations of confidentiality and non-use.

 

Notwithstanding the
foregoing, in the event the Receiving Party is required to make a disclosure of the Disclosing Party’s Confidential Information
pursuant to Section 10.2(c) or 10.2(d), it will, except where impracticable, give reasonable advance notice to the
Disclosing Party of such disclosure and use efforts to secure confidential treatment of such information at least as diligent as
the Receiving Party would use to protect its own confidential information, but in no event less than reasonable efforts. In any
event, the Receiving Party agrees to take all reasonable action to avoid disclosure of Confidential Information hereunder.

 

10.3        Notification.
The Receiving Party shall notify the Disclosing Party promptly, and cooperate with the Disclosing Party as the Disclosing Party
may reasonably request, upon the Receiving Party’s discovery of any loss or compromise of the Disclosing Party’s Confidential
Information.

 

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10.4        Remedies.
Each Party acknowledges that the failure by the Receiving Party to comply with any of the provisions of this Article 10
may result in irreparable injury and continuing damage to the Disclosing Party such that no remedy at law may adequately protect
or appropriately compensate the Disclosing Party for such injury, and that, in the event of any such failure, the Disclosing Party
shall be entitled to seek enforcement of this Article 10 and any of its provisions by injunction, specific performance
or other equitable relief, without prejudice to any other rights and remedies that the Disclosing Party may have for a breach
of this Article 10.

 

10.5        Publicity.

 

(a)        Press
Releases. No later than one (1) business day following the Effective Date, the Parties shall issue a joint press release
announcing the execution of this Agreement in substantially the form attached hereto as Schedule 10.5. It is further
acknowledged that each Party may desire or be required to issue subsequent press releases relating to this Agreement or
activities hereunder. The Parties agree to consult with each other reasonably and in good faith with respect to the text and
timing of subsequent press releases prior to the issuance thereof, provided that a Party may not withhold consent to such
releases that the other Party may determine, based on advice of counsel, are reasonably necessary to comply with applicable
law, including disclosure requirements of the U.S. Securities and Exchange Commission, or with the requirements of any stock
exchange on which securities issued by a Party or its Affiliates are traded. In the event of a required public announcement,
to the extent practicable under the circumstances, the Party making such announcement shall provide the other Party with a
copy of the proposed text of such announcement sufficiently in advance of the scheduled release to afford such other Party a
reasonable opportunity to review and comment upon the proposed text. Each Party may make public statements regarding this
Agreement in response to questions by the press, analysts, investors or those attending industry conferences or financial
analyst calls, or issue press releases, so long as any such public statement or press release is not inconsistent with prior
public disclosures or public statements approved by the other Party pursuant to this Section 10.5 or permitted by Section
10.2 and does not reveal non-public information about the other Party.

 

(b)        Filing
of this Agreement. The Parties shall coordinate in advance with each other in connection with the filing of this Agreement
(including redaction of certain provisions of this Agreement) with any securities authority or with any stock exchange on which
securities issued by a Party or its Affiliate are traded, and each Party will use reasonable efforts to seek confidential treatment
for the terms proposed to be redacted; provided that each Party will ultimately retain control over what information to
disclose to any securities authority or stock exchange, as the case may be, and provided further that the Parties will use
their reasonable efforts to file redacted versions with any governing bodies which are consistent with redacted versions previously
filed with any other governing bodies. Other than such obligation, neither Party (nor any of its Affiliates) will be obligated
to consult with or obtain approval from the other Party with respect to any filings to any securities authority or stock exchange.

 

10.6        Prior
Non-Disclosure Agreements. As of the Effective Date, the terms of this Article 10 shall supersede any prior non-disclosure,
secrecy or confidentiality agreement between the Parties (or their Affiliates) dealing with the subject of this Agreement, including
the Confidentiality Agreement. Any information disclosed by a Party pursuant to any such prior agreement shall be deemed Confidential
Information of such Party for purposes of this Agreement.

 

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Article
11

 

INTELLECTUAL PROPERTY

 

11.1        Ownership
of SteadyMed Technology. SteadyMed shall at all times be and remain the sole and exclusive owner of all SteadyMed Technology.

 

11.2        Ownership
of Inventions. Inventorship of all Inventions shall be determined on a worldwide basis in accordance with U.S. patent laws.
As between the Parties, ownership of Inventions shall be determined as follows:

 

(a)        Any
Invention, excluding any Improvement, that is made solely by one or more employees, consultants or contractors of a Party or any
of its Affiliates (each, a “Sole Invention”) shall be owned solely by such Party. Cardiome hereby grants to
SteadyMed a non-exclusive, royalty-free, fully-paid, irrevocable, perpetual license, including the right to sublicense through
multiple tiers, under Patents and other intellectual property rights Controlled by Cardiome or any of its Affiliates that claim
any Sole Invention owned by Cardiome and/or any of its Affiliates, solely: (i) to research, develop, make, have made, use, sell,
have sold, offer for sale, import and Commercialize Product (including, without limitation, Finished Product) and Infusion set
(including, without limitation, Finished IS) outside the Territory; (ii) to make and have made Product (including, without limitation,
Finished Product) and Infusion set (including, without limitation, Finished IS) in the Territory solely for the purpose of Commercialization
outside the Territory; and (iii) to make, have made, use, sell, have sold, offer for sale, import and Commercialize API, Drug Product,
Device, any Device component or Infusion set throughout the world, except for sale, offer for sale, import and Commercialization
of any of the foregoing as incorporated in Finished Product or Finished IS, as applicable, in the Field in the Territory

 

(b)        Any
Invention, other than an Improvement, that is made jointly by one or more employees, consultants or contractors of Cardiome or
any of its Affiliates, and one or more employees, consultants or contractors of SteadyMed or any of its Affiliates (each, a “Joint
Invention”), shall be owned jointly by the Parties, and each Party, on behalf of itself and its Affiliates, hereby assigns
to the other Party an undivided one-half ownership interest in and to all Joint Inventions. Each Party shall ensure that its and
its Affiliates’ respective employees, consultants and contractors are bound by written agreement to assign to such Party
all right, title and interest in and to all Joint Inventions as necessary for such Party to comply with its assignment obligations
under this Section. Each Party and its Affiliates shall, promptly upon request by the other Party, execute and deliver, and shall
require its and their respective employees, consultants and contractors to execute and deliver, such papers and instruments as
are necessary to effectuate the ownership of Joint Inventions set forth in this Section (including Patents claiming Joint Inventions).

 

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(c)        Any
Improvement, regardless of the inventorship thereof, shall be owned solely by SteadyMed, and Cardiome, on behalf of itself and
its Affiliates, hereby assigns to SteadyMed all right, title and interest in and to all Improvements. Cardiome shall ensure that
its and its Affiliates’ respective employees, consultants and contractors are bound by written agreement to assign to Cardiome
all right, title and interest in and to all Improvements as necessary for Cardiome to comply with its assignment obligations under
this Section. Promptly upon request by SteadyMed, Cardiome and its Affiliates shall execute and deliver, and shall require its
and their respective employees, consultants and contractors to execute and deliver, such papers and instruments as are necessary
to effectuate the ownership of Improvements set forth in this Section (including Patents claiming Improvements).

 

11.3        Patent
Prosecution and Maintenance. SteadyMed shall have the sole right, but not the obligation, to prepare, file, prosecute and
maintain all SteadyMed Patents, at SteadyMed’s sole expense.

 

11.4        Enforcement.

 

(a)        Notice.
Each Party shall promptly notify the other Party of any alleged or actual infringement of any SteadyMed Patent in the Territory
of which it becomes aware.

 

(b)        SteadyMed
Patents.

 

(i)        Enforcement
of SteadyMed Patents Generally. Except as expressly set in Section 11.4(c), SteadyMed shall have the sole right, but
not the obligation, to bring and control any action or proceeding against a Third Party for infringement of any SteadyMed Patent
in the Territory, at its own expense and by counsel of its own choice.

 

(c)        Competitive
Infringement of Product-Specific Patent. Solely in the case of infringement of a Product-Specific Patent in the Field in a
country of the Territory and only to the extent that the applicable infringing activity is competitive with Product in the Field
in such country (“Competitive Infringement”), SteadyMed shall have the first right, but not the obligation,
to bring and control any action or proceeding against a Third Party for infringement of such Product-Specific Patent in the Field
in such country, at its own expense and by counsel of its own choice. If SteadyMed decides that it does not wish to bring any such
action or proceeding, or SteadyMed has not brought any such action or proceeding by the date that is [...***...] before the time
limit, if any, set forth in the appropriate laws and regulations for the filing of such actions, whichever comes first, then Cardiome
shall have the right, but not the obligation, to bring and control any such action or proceeding to enforce such Product-Specific
Patent in such country solely with respect to such Competitive Infringement, at its own expense and by counsel of its own choice,
and SteadyMed shall have the right, but not the obligation, at its own expense, to be represented in any such action by counsel
of its own choice.

 

(d)        Cooperation;
Recoveries. In the event a Party brings an infringement action or proceeding in accordance with Section 11.4(b), the
other Party shall cooperate fully, including, if required to bring such action, the furnishing of a power of attorney or being
named as a party. Neither Party shall enter into any settlement or compromise of any action or proceeding under Section 11.4(b)
in a manner that diminishes the rights or interests of the other Party without the written consent of such other Party, which shall
not be unreasonably withheld. Except as otherwise agreed by the Parties in connection with a cost-sharing arrangement, any recovery
realized by SteadyMed as a result of any action or proceeding pursuant to Section 11.4(b), whether by way of settlement
or otherwise, shall be used first to reimburse each Party for the unreimbursed out-of-pocket litigation expenses incurred by such
Party in such action or proceeding, provided that if such recovery is insufficient to fully reimburse both Parties for such litigation
expenses, such recovery shall be allocated between the Parties on a pro rata basis in proportion to the relative share of such
costs incurred by each Party. Any remaining recovery after such reimbursement shall be allocated as follows:

 

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(i)          in
the case of any such action or proceeding brought by SteadyMed, any remaining recovery shall belong to SteadyMed; provided,
however, that to the extent such recovery is attributable to Competitive Infringement:

 

(1)        that
portion of such remaining recovery that represents compensatory damages for such Competitive Infringement shall be allocated [...***...]
to SteadyMed and [...***...] to Cardiome; and

 

(2)        that
portion of such remaining recovery that represents non-compensatory damages for such Competitive Infringement shall be allocated
[...***...] to SteadyMed and [...***...] to Cardiome; and

 

(ii)          in
the case of any such action or proceeding brought by Cardiome:

 

(1)        that
portion of any remaining recovery that represents compensatory damages for Competitive Infringement shall be allocated [...***...]
to Cardiome and [...***...] to SteadyMed; and

 

(2)        that
portion of any remaining recovery that represents non-compensatory damages for Competitive Infringement shall be allocated [...***...]
to Cardiome and [...***...] to SteadyMed.

 

11.5        Infringement
of Third Party Patents. Each Party shall promptly notify the other in writing of any allegation by a Third Party that the
activity of either Party pursuant to this Agreement infringes or may infringe the intellectual property rights of such Third Party.
Without limiting the generality of the foregoing, in the event either Party receives any written communication from any Third
Party alleging that the manufacture, use, sale, offer for sale or import of a Supplied Item in the Territory infringes or may
infringe a Patent of a Third Party, such Party shall deliver a copy of such communication to the other Party within [...***...]
of receipt. SteadyMed shall have the sole right and responsibility to respond to such communication and to determine the course
of action, including whether or not to seek a license under such Third Party’s Patent or contest and defend against such
allegation (subject to Section 13.2 hereof), in such manner as SteadyMed, in its sole judgment, deems appropriate, and
at SteadyMed’s sole expense. In no event shall Cardiome or any of its Affiliates, directly or indirectly, make or cause
to be made any admission or acknowledgment, whether orally, in writing or otherwise, that the manufacture, use, sale, offer for
sale or import of any Supplied Item in the Territory infringes or may infringe, or otherwise is or may be within the scope of,
such Third Party’s Patent. If SteadyMed or its Affiliate obtains a license under such Third Party’s Patent to make,
have made, use, sell, have sold, offer for sale or import Product or Infusion Set in the Field in the Territory (whether in connection
with the settlement of any infringement action or proceeding by such Third Party or otherwise), such Patent shall be included
in the SteadyMed Patents licensed to Cardiome under Section 2.1, and SteadyMed shall be solely responsible for the payment
to such Third Party of all royalties and milestone payments that become due to such Third Party under the license agreement with
such Third Party as a result of the Commercialization by or on behalf of Cardiome, its Affiliates, Sublicensees or Subdistributors
of Product or Infusion Set in the Field in the Territory in accordance with this Agreement, provided that Cardiome shall provide
to SteadyMed on a timely basis all such information regarding Cardiome’s and its Affiliates’, Sublicensees’
and Subdistributors’ activities as is necessary for SteadyMed to ascertain and comply with its royalty and milestone payment
obligations to such Third Party. Neither Party shall have the right to settle any patent infringement litigation under this Section
11.5 in a manner that diminishes the rights or interests of the other Party without the written consent of such other Party
(which consent shall not be unreasonably conditioned, withheld or delayed).

 

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(a)        SteadyMed
will be responsible for, and compensate Cardiome for any actual damages obtained by a Third Party against Cardiome for infringement
of said Third Party’s Patent as a result of the Commercialization by or on behalf of Cardiome, its Affiliates, Sublicensees
or Distributors of Product or Infusion Set in the Field in the Territory in accordance with this Agreement. Notwithstanding the
above, SteadyMed will not be responsible for infringing act(s) if such act(s) are principally due to Cardiome marketing and/or
selling outside the Field and/or outside the Territory, outside of the claims of any Product label or insert, or any substantially
similar act.

 

(b)        Notwithstanding
the above if Cardiome does not agree to share some of the potential liability through discussions at the JSC, at SteadyMed’s
written request, Cardiome, its Affiliates, Sublicensee or Distributor will discontinue sales of Product or Infusion Sets under
this Agreement in a country in which said Third Party has sued Cardiome, its Affiliate, Sublicensee or Distributor for patent infringement.

 

11.6        Patent
Term Extensions. SteadyMed shall have the final decision-making authority as to whether or not to apply for patent term extensions
for SteadyMed Patents for Product in the Field in the Territory and, if so, as to the selection of the applicable SteadyMed Patent,
and if SteadyMed elects to do so, it shall do so at its own expense. Cardiome shall cooperate fully with SteadyMed in making such
filings or actions, for example and without limitation, by making available all required regulatory data and information and executing
any required authorizations to apply for such patent term extension.

 

11.7        Trademarks.

 

(a)        Ownership.
SteadyMed shall at all times own all right, title, and interest in and to the SteadyMed Trademarks, including all corresponding
trademark applications and registrations thereof, and all common law rights thereto, throughout the world. All goodwill of the
business associated with or symbolized by the SteadyMed Trademarks, including all goodwill arising out of Cardiome’s and
its Affiliates’, Sublicensees’ and Permitted Subdistributors’ use of the SteadyMed Trademarks in the Territory,
shall inure to the benefit of SteadyMed, and, to that end, Cardiome shall assign, and hereby does assign, to SteadyMed, and shall
obtain from its Affiliates, Sublicensees and Permitted Subdistributors a present assignment and agreement to assign to SteadyMed,
all rights any of them may have therein. Cardiome acknowledges SteadyMed’s exclusive ownership of the SteadyMed Trademarks,
and all goodwill of the business associated with or symbolized by the SteadyMed Trademarks, and agrees not to take, and to require
its Affiliates, Sublicensees and Permitted Subdistributors not to take, any action inconsistent with such ownership. SteadyMed
acknowledges Cardiome’s exclusive ownership of the Cardiome House Marks and all goodwill of the business associated with
or symbolized by the Cardiome House Marks and acknowledges and agrees that no right or license under Cardiome House Marks is granted
to SteadyMed hereunder.

 

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(b)        Use
of Trademarks. Except to the extent prohibited by Applicable Laws, all Promotional Materials and Product Labels and Inserts
shall bear both the SteadyMed Trademarks and the Cardiome House Marks, and the Parties shall mutually agree as to the placement
and relative prominence of the SteadyMed House Marks and the Cardiome House Marks on all Promotional Materials and Product Labels
and Inserts, subject to Applicable Laws. Cardiome shall discuss and refer to Products and Infusion sets only under the Product
Marks, and shall use the SteadyMed Trademarks only on the Promotional Materials and Product Labels and Inserts and only in accordance
with the terms and conditions of this Agreement. In using any SteadyMed Trademark, Cardiome shall comply with all Trademark policies,
instructions and guidelines provided by SteadyMed from time to time to maintain the goodwill and value of the SteadyMed Trademarks.
Cardiome shall not, and shall require its Affiliates and Sublicensees not to, (i) use, seek to register, or otherwise claim rights
in the Territory in any Trademark that is confusingly similar to, misleading or deceptive with respect to, or that materially dilutes,
any SteadyMed Trademark, (ii) adopt, use, or attempt to register any Trademarks that are confusingly similar to the SteadyMed Trademarks
or use any SteadyMed Trademark in such a way as to create combination marks with such SteadyMed Trademark (including, without limitation,
any such combination mark with any Cardiome House Mark or other Cardiome Trademarks); or (iii) knowingly do, cause to be done,
or knowingly omit to do any act, the doing, causing or omitting of which endangers, undermines, impairs, destroys or similarly
affects, in any material respect, the validity or strength of any SteadyMed Trademark (including any registration or pending registration
application relating thereto) or the value of the goodwill pertaining to any SteadyMed Trademark. All rights to use the SteadyMed
Trademarks granted hereunder shall automatically terminate upon the expiration or termination of this Agreement.

 

(c)        Registration.
SteadyMed shall have the sole right, but not the obligation, to apply for registration of, register and renew any registration
of the SteadyMed Trademarks, at SteadyMed’s sole expense.

 

(d)        Infringement.
Cardiome shall promptly inform SteadyMed of any infringement of, or challenge to, any SteadyMed Trademark in the Territory, in
each case whether actual or threatened, which comes to the attention of Cardiome. SteadyMed shall have the exclusive right (in
its sole discretion) to take (or not take, as applicable) action in respect of the defense or infringement of the SteadyMed Trademarks,
at SteadyMed’s sole expense, and, at SteadyMed’s request and expense, Cardiome shall provide reasonable assistance
and cooperation in connection therewith.

 

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Article
12

 

REPRESENTATIONS AND WARRANTIES; DISCLAIMER; LIMITATION OF LIABILITY

 

12.1        Mutual
Representations and Warranties. Each Party represents and warrants to the other Party that, as of the Effective Date:

 

(a)         such
Party is duly organized and validly existing under the laws of its jurisdiction of incorporation or formation, and has full corporate
or other power and authority to enter into this Agreement and to carry out the provisions hereof;

 

(b)         it
is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder;

 

(c)         this
Agreement is legally binding upon it, enforceable in accordance with its terms, and does not violate, conflict with, or constitute
a default under, its charter or similar organization document, its by-laws or partnership agreement, or the terms or provisions
of any material agreement or other instrument to which it is a party or by which it is bound, or any order, award, judgment or
decree to which it is a party or by which it is bound;

 

(d)         neither
such Party nor any of its Affiliates is debarred under Applicable Laws in the US, including 21 U.S.C. §335a, or any comparable
Applicable Laws outside of the U.S.; and

 

(e)         Representations
and Warranties. With respect to their performance under this Agreement, each Party hereby represents, warrants, covenants and
certifies the following

 

(i)         None
of each Party or their respective Representatives has caused nor shall cause the other Party or its Affiliates to be in violation
of the Anti-Corruption Laws or the U.S. Travel Act.

 

(ii)         Additional
Provisions:

 

(1)        Each
Party and its Representatives shall not with a corrupt intent directly or indirectly offer, promise, authorize, pay, or give any
money, favor, advantage, bribe, kickback, or anything else of value to an Official (as defined below) or to any other individual
or entity for purposes of obtaining, retaining, or directing business or any other improper advantage;

 

(2)        Each
Party understands that “Official” means (i) a director, officer, employee, agent or representative of any government,
military, or state-owned or affiliated entity or organization; (ii) any department, agency, corporate entity, instrumentality or
political subdivision of any government or military; (iii) any person or commercial entity acting in an official capacity for or
on behalf of any government or military; (iv) any candidate for political office, any political party or any official of a political
party; or (v) any officer, employee, agent or representative of any public international organization such as the United Nations
or the World Bank; and

 

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(3)        Neither
Cardiome nor, to Cardiome’s knowledge, any of its affiliates or representatives or its and their respective equity shareholders,
officers, directors, employees, representatives, members, partners or managers or, to Cardiome’s knowledge, any immediate
family member of the foregoing persons (collectively, “Interested Persons”) is an Official or a potential customer
of SteadyMed in the Territory. Cardiome shall notify SteadyMed promptly if (i) an Interested Person becomes a Foreign Official
or (ii) a Foreign Official becomes an Interested Person or acquires a personal interest in the income of Cardiome.

 

(4)        Nothing
within this Section 12.1(e) should be construed or understood to expand the reach of the Anti-Corruption Laws or the U.S.
Travel Act.

 

(f)        Both
Parties agree to vet and approve any new third party broker, agent, sub representative or other contractor who interacts with Officials
in the performance of services under this Agreement, and to periodically update the JSC with respect to the same.

 

(g)        Each
Party shall respond to the other Party’s requests for information, to the extent reasonable and related to each Party’s
efforts to ensure compliance with the Anti-Corruption Laws and any other applicable law.

 

(h)        Each
Party shall cooperate and shall cause Representative Persons to maintain receipts, material documents, and books and records (collectively
“Records”) that reflect completely and in reasonable detail its transactions and other expenses related to the
performance of services under this Agreement. Each Party may in its sole discretion audit such books and records if other Party
reasonably suspects that a material issue or a violation has or will occur with respect to the Anti-Corruption Laws, Export Control
Laws, or any other law or regulation applicable to either or both Parties. Each Party shall provide the other Party and its Representatives
reasonable access to Records for up to [...***...] after the expiration or termination of this Agreement. Each Party may also reasonably
suspend all payments owed to the other Party pursuant to this Agreement until such time that the first Party has reasonably determined
that such payment will not cause a material violation of the Anti-Corruption Laws, Export Control Laws, or any other applicable
law or regulation.

 

(i)        Each
Party shall immediately notify the other Party if the Party has any information or suspicion that there may be a violation of the
Anti-Corruption Laws or any other applicable law in connection with this Agreement.

 

(j)        Each
Party shall reasonably cooperate with the other Party in regard to any matter, dispute or controversy related to this Agreement
and in which each Party may become involved and of which the other Party may have knowledge. Such obligation shall continue after
the expiration or termination of this Agreement.

 

(k)        During
the term of this Agreement, each Party shall, upon the other Party’s reasonable request, certify in writing from time to
time its compliance with the representations and warranties contained in this Section 9.1.

 

(l)        Each
Party shall maintain and shall reasonably cause its Representatives to comply with policies and procedures which are (i) substantially
consistent with the foregoing representations, warranties, covenants and certifications and (ii) in compliance with all anti-corruption
laws and regulations applicable to each Party and their respective Representatives.

 

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(m)        Termination
for Non-Compliance. A violation of the foregoing representations, warranties, covenants or certifications by either Party or
their respective Representatives set forth in this Section 12.1 shall constitute a material breach of this Agreement. However,
notwithstanding anything else in this Agreement to the contrary, once a senior officer of either Party receives notices of any
violation of this Section 12.1, such Party may cure the breach by

 

(i)        the
Party will immediately cease the action that gives rise to the breach until the matter is resolved favorably;

 

(ii)        investigate
the activities and nature of the breach, and determine immediate and/or near term corrective action(s); and

 

(iii)        assess
the need for self-reporting, and if self-reporting is necessary, cooperate with the agency responsible for overseeing the breach
during any investigation and with any subsequent fines or remediation imposed by said agency.

 

12.2        Mutual
Covenants. In addition to any covenants made by either Party elsewhere in this Agreement, each Party hereby covenants to the
other Party that:

 

(a)        neither
such Party nor any of its Affiliates will employ or use the services of any Person who is debarred under Applicable Laws in the
U.S., including 21 U.S.C. §335a, or any comparable Applicable Laws outside of the U.S., in connection with the matters that
are the subject of this Agreement or the performance of its obligations hereunder; and in the event that such Party becomes aware
of the debarment or threatened debarment of any Person providing services to such Party or any of its Affiliates in connection
with the matters that are the subject of this Agreement or the performance of its obligations hereunder, such Party will immediately
notify the other Party in writing and will cease, or cause its Affiliate to cease (as applicable), employing, contracting with,
or retaining, any such Person to perform any activity contemplated by this Agreement; and

 

(b)        such
Party will not enter into any agreement or other instrument that would conflict with its obligations under this Agreement.

 

12.3        Product
Warranty. SteadyMed represents and warrants to Cardiome that all Supplied Items delivered by or on behalf of SteadyMed pursuant
to this Agreement: (a) as of the Delivery Date, will conform to the applicable Specifications for such Supplied Items as then
in effect; (b) will have been Manufactured in compliance with applicable Manufacturing Standards and SteadyMed’s obligations
under the Quality Agreement; and (c) will not be adulterated or misbranded within the meaning of the FFDCA (collectively, the
“Product Warranty”); provided, however, that SteadyMed makes no representation or warranty, and
the Product Warranty specifically excludes any representation or warranty, with respect to: (i) the conformity of any Product
Labels and Inserts provided by Cardiome to SteadyMed or the applicable Contract Manufacturer for use in the Manufacture of a Supplied
Item for a particular country of the Territory, to the Approved Labeling for such Supplied Item in such country; (ii) the compliance
of any Product Labels and Inserts provided by Cardiome to SteadyMed or the applicable Contract Manufacturer for use in the Manufacture
of a Supplied Item for a particular country of the Territory, with Applicable Laws in such country; or (iii) the accuracy of the
translation of any Product Labels and Inserts provided by Cardiome to SteadyMed or the applicable Contract Manufacturer for use
in the Manufacture of a Supplied Item for a particular country of the Territory, into any language.

 

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12.4        Representations,
Warranties and Covenants by SteadyMed. SteadyMed hereby represents and warrants to Cardiome that, as of the Effective Date:

 

(a)        the
Patents listed in Schedule 1.107 hereto constitute all of the SteadyMed Patents existing as of the Effective Date;

 

(b)        to
SteadyMed’s knowledge, the issued patents listed in Schedule 1.107 hereto are valid and enforceable;

 

(c)        the
patent applications listed in Schedule 1.107 have been duly filed;

 

(d)        SteadyMed
is the sole owner of all right, title and interest in and to the SteadyMed Patents existing on the Effective Date, free of any
encumbrances;

 

(e)        SteadyMed
(i) has the right to grant the license under SteadyMed Technology that it purports to grant pursuant to Section 2.1, and
(ii) has not granted to any Third Party any license or other right with respect to any SteadyMed Technology that conflicts with
the license granted pursuant to Section 2.1;

 

(f)        to
SteadyMed’s knowledge, the manufacture, use, sale, offer for sale and import of Product and Infusion set in the Field in
the Territory do not infringe any issued patent of any Third Party;

 

(g)        SteadyMed
is not a party to any legal action, suit or other legal proceeding relating to the SteadyMed Technology, and SteadyMed has not
received any written communication from any Third Party threatening such action, suit or proceeding; and

 

(h)        As
of the Launch Date, SteadyMed will have the manufacturing infrastructure in place in order to be able to produce Supplied Items.

 

Representations
and Warranties by Cardiome. Cardiome hereby represents and warrants to SteadyMed that, as of the Effective Date:

 

(a)        Cardiome
has the commercial expertise to market the Product in the Territory and will use Commercially Reasonable Efforts to sell Supplied
Items on a FIFO (First-In, First-Out basis);

 

(b)        there
is no pending, nor, to the knowledge of Cardiome any threatened investigation or audit by the FDA, EMA, or other governmental entity
and/or Agency which is a counterpart of the FDA or EMA into Cardiome that would impact Cardiome’s ability to commercialize
the Product in the Territory; and

 

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(c)        Cardiome
is not currently suspended or excluded from participating, or otherwise ineligible to participate, in any national health insurance
program or system or other governmental reimbursement program in any country of the Territory, or in any governmental procurement
or non-procurement programs in the Territory, or otherwise excluded from contracting with the government of any country in the
Territory.

 

12.5        Disclaimer
of Warranties. Except as expressly set forth in this Agreement, THE TECHNOLOGY AND INTELLECTUAL PROPERTY RIGHTS PROVIDED BY
EACH PARTY HEREUNDER ARE PROVIDED “AS IS.” Except as expressly set forth in this Agreement, EACH PARTY EXPRESSLY DISCLAIMS
ANY AND ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING THE WARRANTIES OF DESIGN, MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, VALIDITY OF PATENTS, NON-INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD PARTIES, OR ARISING FROM A COURSE
OF DEALING, USAGE OR TRADE PRACTICES.

 

12.6        Limitation
on Liability. EXCEPT FOR LIABILITY FOR BREACH OF Article 10, NEITHER PARTY SHALL BE ENTITLED TO RECOVER FROM THE OTHER
PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT OR ANY LICENSE GRANTED HEREUNDER;
provided, however, that this Section 12.6 shall not be construed to limit either Party’s indemnification
obligations under Article 13.

 

Article
13

 

INDEMNIFICATION;
INSURANCE

 

13.1        Indemnification
by Cardiome. Subject to the procedures set forth in Section 13.3, Cardiome shall indemnify SteadyMed, its Affiliates
and its and their respective directors, officers, employees, consultants and agents (the “SteadyMed Indemnitees”),
and defend and save each of them harmless, from and against any and all losses, damages, liabilities, expenses and costs, including
reasonable legal expense and attorneys’ fees (collectively, “Losses”), to which any SteadyMed Indemnitee
may become subject as a result of any claim, demand, action or other proceeding by any Third Party (each, a “Third Party
Claim”), to the extent such Losses arise out of or relate to (a) any theory of product liability (including without
limitation tort, warranty, or strict liability) that is applicable in the Territory with respect to the death, personal injury,
or illness of any person in the Territory, arising from the use, Commercialization, storage, release or handling by or on behalf
of Cardiome or any of its Affiliates, Sublicensees or Permitted Subdistributors of any Supplied Item in the Territory; (b) the
gross negligence or willful misconduct of any Cardiome Indemnitee (defined below); or (c) the breach by Cardiome of any warranty,
representation, covenant or agreement made by Cardiome in this Agreement; except, in each case, to the extent such Losses result
from the gross negligence or willful misconduct of any SteadyMed Indemnitee or the breach by SteadyMed of any warranty, representation,
covenant or agreement made by SteadyMed in this Agreement.

 

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13.2        Indemnification
by SteadyMed. Subject to the procedures set forth in Section 13.3, SteadyMed shall indemnify Cardiome, its Affiliates
and its and their respective directors, officers, employees, consultants and agents (the “Cardiome Indemnitees”),
and defend and save each of them harmless, from and against any and all Losses to which any SteadyMed Indemnitee may become subject
as a result of any Third Party Claim, to the extent such Losses arise out of or relate to (a) any theory of product liability
(including without limitation tort, warranty, or strict liability) that is applicable in the Territory with respect to the death,
personal injury, or illness of any person in the Territory, arising from the Manufacture, storage, release or handling by or on
behalf of SteadyMed or any of its Affiliates or Contract Manufacturers of any Supplied Item; (b) the gross negligence or willful
misconduct of any SteadyMed Indemnitee; (c) the breach by SteadyMed of any warranty, representation, covenant or agreement made
by SteadyMed in this Agreement; or (d) any Third Party Claim that the manufacture, use, sale, offer for sale or import of any
Supplied Item in the Field in the Territory in accordance with this Agreement infringes any Third Party’s Patent in the
Territory; except, in each case, to the extent such Losses result from the gross negligence or willful misconduct of any Cardiome
Indemnitee or the breach by Cardiome of any warranty, representation, covenant or agreement made by Cardiome in this Agreement.

 

13.3        Indemnification
Procedure. In the event a Party (the “Indemnified Party”) seeks indemnification under Section 13.1
or Section 13.2, it shall inform the other Party (the “Indemnifying Party”) of a Third Party Claim as
soon as reasonably practicable after it receives notice of the Third Party Claim (it being understood and agreed, however, that
the failure by an Indemnified Party to give notice of a claim as provided in this Section 13.3 shall not relieve the Indemnifying
Party of its indemnification obligation under this Agreement unless and only to the extent that such Indemnifying Party is actually
damaged as a result of such failure to give notice), shall permit the Indemnifying Party to assume direction and control of the
defense of the Third Party Claim (including the right to settle the Third Party Claim solely for monetary consideration) using
counsel reasonably satisfactory to the Indemnified Party, and shall cooperate as requested (at the expense of the Indemnifying
Party) in the defense of the Third Party Claim. If the Indemnifying Party does not assume control of such defense within [...***...]
after receiving notice of the Third Party Claim from the Indemnified Party, the Indemnified Party shall control such defense and,
without limiting the Indemnifying Party’s indemnification obligations, the Indemnifying Party shall reimburse the Indemnified
Party for all costs, including reasonable attorney fees, incurred by the Indemnified Party in defending itself within [...***...]
after receipt of any invoice therefor from the Indemnified Party. The Party not controlling such defense may participate therein
at its own expense. The Party controlling such defense shall keep the other Party advised of the status of such action, suit,
proceeding or claim and the defense thereof and shall consider recommendations made by the other Party with respect thereto. The
Indemnified Party shall not agree to any settlement of such action, suit, proceeding or claim without the prior written consent
of the Indemnifying Party, which shall not be unreasonably withheld, delayed or conditioned. The Indemnifying Party shall not
agree to any settlement of such action, suit, proceeding or claim or consent to any judgment in respect thereof that does not
include a complete and unconditional release of the Indemnified Party from all liability with respect thereto, that imposes any
liability or obligation on the Indemnified Party or that acknowledges fault by the Indemnified Party without the prior written
consent of the Indemnified Party.

 

13.4        Insurance.
Each Party shall at all times maintain insurance policies or self-insurance in such amounts and with such scope of coverage as
are normal and customary for companies in the pharmaceutical or biotechnology industry of a size and stage of development similar
to that of such Party and engaged in activities comparable to the activities in which such Party engages hereunder. If requested
by the other Party, the insured Party shall furnish a Certificate of Insurance or other reasonable proof of coverage (which may
be a certificate or other evidence issued by a Party under a program of self-insurance) evidencing the requisite coverage required
under this Section 13.4 during the Term.

 

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Article
14

 

TERM AND TERMINATION

 

14.1        Term.
The term of this Agreement (the “Term”) shall begin on the Effective Date and, subject to earlier termination
of this Agreement as expressly permitted herein, shall expire on the tenth (10th) anniversary after the Launch Date.

 

14.2        Termination.
In addition to any termination right expressly granted to a Party elsewhere in this Agreement, this Agreement may be terminated
by a Party prior to its expiration as follows:

 

(a)          Major
Safety Issue. Either Party may terminate this Agreement upon written notice to the other Party with immediate effect in the
event that: (i) the Parties determine that the continued Commercialization of the Product in the Territory poses an unacceptable
medical risk to patients; or (ii) the EMA or any other Regulatory Authority in the Territory requires Cardiome to cease Commercializing
the Product in the Territory.

 

(b)          Debarment.
By either Party if the other Party is debarred or disqualified by any Regulatory Authority in the Territory, or, is determined
by a court or other Governmental Agency in the Territory (whether or not such determination is appealable).

 

(c)          Termination
for Insolvency. Either Party may terminate this Agreement upon written notice to the other Party with immediate effect in the
event that the other Party shall file in any court or agency, pursuant to any statute or regulation of any state or country, a
petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee
of the other Party or of its assets, or if the other Party proposes a written agreement of composition or extension of its debts,
or if the other Party shall be served with an involuntary petition against it, filed in any insolvency proceeding, and such petition
shall not be dismissed within [...***...] after the filing thereof, or if the other Party shall propose or be a Party to any dissolution
or liquidation.

 

(d)          Termination
for Material Breach.

 

(i)        This
Agreement may be terminated by a Party upon written notice to the other Party if the other Party is in material breach of this
Agreement and has not cured such breach within [...***...] ([...***...] with respect to any payment breach under Section
7.1, [...***...] with respect to any payment breach under Sections 7.2 and 7.3, along with interest as provided
for in Section 8.7) after written notice from the terminating Party requesting cure of the breach. Any such termination
shall become effective at the end of such [...***...] ([...***...] with respect to any payment breach under Section
7.1, [...***...] with respect to any payment breach under Sections 7.2 and 7.3, along with any interest as provided
for in Section 8.7) period unless the breaching Party has cured any such breach or default prior to the end of such period;
provided, however, that any right to terminate this Agreement under this Section shall be stayed and the cure period
tolled in the event that, during any cure period, the Party alleged to have been in material breach shall have initiated dispute
resolution in accordance with Section 15.1(b) with respect to the alleged breach, which stay and tolling shall continue
until such dispute has been resolved in accordance with Section 15.1(b).

 

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(ii)        Notwithstanding
Section 14.2(b)(i), solely in the event of Cardiome’s material breach of its obligations under Section 6.3
or Section 6.4 in either Europe or Canada (but not both of such Regions), SteadyMed shall have the right to terminate all
rights and licenses granted to Cardiome under this Agreement with respect solely to such Region, upon [...***...] written notice
to Cardiome, if Cardiome has not cured such material breach by the end of such [...***...] period, in which event, from and after
the effectiveness of such notice of termination, the Territory shall be deemed to exclude such Region for all purposes under this
Agreement, but this Agreement shall otherwise remain in full force and effect in accordance with its terms; provided, however,
that any right to terminate under this Section 14.2(b)(ii) shall be stayed and the cure period tolled in the event that,
during any cure period, Cardiome shall have initiated dispute resolution in accordance with Section 15.1(b) with respect
to the alleged breach, which stay and tolling shall continue until such dispute has been resolved in accordance with Section
15.1(b).

 

(e)        At-Will
Termination by Cardiome.

 

(i)        Termination
of Agreement. Cardiome shall have the right to terminate this Agreement for any reason or for no reason at any time upon [...***...]
prior written notice to SteadyMed.

 

(ii)        Termination
as to a Region. Cardiome shall have the right to terminate all rights and licenses granted to Cardiome under this Agreement
with respect solely to a particular Region, or to a country with a particular Region, for any reason or for no reason at any time,
upon [...***...] prior written notice to SteadyMed, in which event, from and after the effectiveness of such notice of termination,
the Territory shall be deemed to exclude such Region for all purposes under this Agreement, but this Agreement shall otherwise
remain in full force and effect in accordance with its terms.

 

14.3        Effect
of Expiration or Termination.

 

(a)        Upon
the effective date of expiration or termination of this Agreement, the licenses granted by SteadyMed to Cardiome hereunder shall
terminate and revert to SteadyMed, and all other rights and obligations of the Parties under this Agreement shall terminate and
be of no force or effect, except as expressly set forth below in this Section 14.3 or in Section 14.4.

 

    	 	54	 

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(b)        In
the event of any termination of this Agreement by SteadyMed pursuant to Section 14.2(a) to (d), or by Cardiome pursuant
to Section 14.2(a) to (e), the following shall apply (in addition to the provisions of Section 14.3(a) and
14.4):

 

(i)        Regulatory
and Pricing Approvals. Cardiome shall, at Steadymed’s cost and written request, promptly: (A) transfer or assign, or
cause to be transferred or assigned, to SteadyMed or its designee (or to the extent transfer or assignment is not permitted by
Applicable Law, take all reasonable actions to make available to SteadyMed or its designee the full benefits of) all Regulatory
Applications, Regulatory Approvals, regulatory dossiers, applications for Pricing Approval, and Pricing Approvals, for Product
in the Territory, whether held in the name of Cardiome, its Affiliate or a Sublicensee or Subdistributor; (B) provide to SteadyMed
or its designee a complete copy of all of the foregoing documents, as well as copies of all correspondence with Regulatory Authorities
or Pricing Authorities pertaining to Products in the Territory; and (C) take such other actions and execute such other instruments,
assignments and documents as may be necessary to effect, evidence, register and record the transfer, assignment or other conveyance
of rights under this Section 14.3(b)(i) to SteadyMed or its designee. Notwithstanding the above, if Cardiome cannot complete
(A) through (C) as set forth above due to Applicable Law or contracts that prohibit the same, Cardiome will take all reasonable
actions to make the above available to SteadyMed or SteadyMed’s designee at SteadyMed’s cost.

 

(ii)        Transition.
Cardiome shall, at SteadyMed’s cost and written request, cooperate with SteadyMed or its designee to effect a smooth and
orderly transition of Commercialization activities with respect to Product and Infusion Set in the Territory.

 

(iii)        Inventory.
SteadyMed shall have the right, but not the obligation, to purchase from Cardiome any or all of the usable inventory of any Supplied
Item, including Non-Commercial Units, in Cardiome’s or its Affiliates’ possession as of the date of termination, at
a purchase price equal to the Transfer Price paid by Cardiome for such inventory. Any packaging, transport, insurance and other
costs relating to delivery shall be borne by SteadyMed. In addition, if SteadyMed does not purchase the inventory, Cardiome may
sell off any inventory of Supplied Items in its or its possession as of the termination date during the [...***...] period beginning
on the termination date, at a price no less than existed prior to the termination date, or if applicable, complete performance
of any and all bid and tender agreements that had been entered into prior to the termination date.

 

(iv)        Promotional
Materials. Cardiome shall, if requested by SteadyMed, deliver to SteadyMed all Promotional Materials in Cardiome’s or
its Affiliates’ possession (including electronic files of all Promotional Materials) at Cardiome’s out-of-pocket cost
for printing and delivering such materials.

 

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    CONFIDENTIAL

    

 

(v)        Commercial
Agreements. Cardiome shall promptly provide to SteadyMed a list of all agreements in effect between Cardiome or any of its
Affiliates and any Third Party wholesalers, hospitals, large EU/Middle East/Canadian - centric points of sale, retail pharmacies,
mail-order pharmacies, group purchasing organizations and other similar organizations, relating to Product in the Territory (“Cardiome
Commercial Agreements”), including the identity of and contact information for each such Third Party, the type of agreement,
and whether such Cardiome Commercial Agreement relates solely to Product, Infusion Set and/or Supplied Items, or also covers other
products of Cardiome and its Affiliates. Upon SteadyMed’s request, Cardiome shall provide SteadyMed with a true and complete
copy of any such Cardiome Commercial Agreement that relates solely to Product, Infusion Set and/or Supplied Items. At the written
request of SteadyMed, Cardiome shall assign, or cause its Affiliate to assign, to SteadyMed or its designee any Cardiome Commercial
Agreement that relates solely to Product, Infusion Set and/or Supplied Items, to the extent such Cardiome Commercial Agreement
permits such assignment. Cardiome shall use Commercially Reasonable Efforts to include provisions requiring compliance with the
foregoing provision in Cardiome Commercial Agreements.

 

(c)        In
the event of any termination of all rights and licenses granted to Cardiome under this Agreement with respect solely to a particular
Region, either by SteadyMed pursuant to Section 14.2(b)(ii) or by Cardiome pursuant to Section 14.2(d) (ii), the
provisions of Section 14.3(b) shall apply, mutatis mutandis, solely with respect to such Region.

 

(d)        In
the event of any termination of this Agreement by Cardiome pursuant to Section 14.2(b) , Cardiome and its Affiliates shall
have the right, at Cardiome’s option, to sell off any inventory of Supplied Items in its or their possession as of the termination
date during the [...***...] period beginning on the termination date, or if applicable, complete performance of any and all bid
and tender agreements that had been entered into prior to the termination date, subject to the terms and conditions of this Agreement,
including, without limitation, payment of royalties in accordance with Section 7.4.

 

14.4        Return
of Confidential Information. Upon termination or expiration of this Agreement, each Party shall promptly return to the other
Party, or delete or destroy, all relevant records and materials in such Party’s possession or control containing Confidential
Information of the other Party; provided, however, that: (a) SteadyMed shall not be obligated to return, delete
or destroy any such materials that contain Confidential Information of Cardiome that is necessary or useful for the use, sale,
offer for sale, import or Commercialization of Product and Infusion Set in the Territory; and (b) each Party may retain one copy
of such materials in its secure archives solely (i) for the purpose of monitoring compliance with its obligations under Article
10 or (ii) as necessary to comply with Applicable Laws, subject to Article 10.

 

14.5        Accrued
Rights; Survival.

 

(a)        Termination
or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit
of a Party prior to such termination or expiration (including any amounts payable by either Party in accordance with the terms
hereof with respect to periods prior to such termination or expiration), nor will expiration or termination of this Agreement preclude
either Party from pursuing all rights and remedies it may have under this Agreement, at law or in equity, with respect to any breach
of this Agreement.

 

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(b)        Articles
10, 12 and 15 of this Agreement shall survive expiration or termination of this Agreement for any reason.

 

Article
15

 

MISCELLANEOUS

 

15.1        Governing
Law; Dispute Resolution; Arbitration.

 

(a)         Governing
Law. This Agreement shall be governed and construed in accordance with the laws of the New York State (USA), without giving
effect to any choice of law provisions thereof with the exception of sections 5-1401 and 5-1402 of New York General Obligations
Law.

 

(b)         Dispute
Resolution; Arbitration.

 

(i)        Dispute
Resolution. Subject to Section 15.1(c), any claim, dispute, or controversy as to the breach, enforcement, interpretation
or validity of this Agreement (each, a “Dispute”) will be referred to the Executives for attempted resolution.
In the event such Executives are unable to resolve such Dispute within [...***...] of such Dispute being referred to them, then,
upon the written request of either Party to the other Party, the Dispute shall be subject to arbitration in accordance with Section
15.1(b)(ii), except as expressly set forth in Section 15.1(c).

 

(ii)        Arbitration.

 

(1)        Claims.
Subject to Section 15.1(c) below, any Dispute that is not resolved under Section 15.1(b)(i) within the applicable
[...***...] period shall be resolved by final and binding arbitration administered by the International Centre for Dispute Resolution
in accordance with its then-effective International Dispute Resolution Procedures (the “Rules”), except to the
extent any such Rule conflicts with the express provisions of this Section 15.1(b)(ii). (Capitalized terms used but not
otherwise defined in this Agreement shall have the meanings provided in the Rules.) The Arbitration shall be conducted by one neutral
arbitrator selected in accordance with the Rules, provided that such individual shall not be a current or former employee or director,
or a current stockholder, of either Party or any of their respective Affiliates (or any licensee or sublicensee of the rights granted
to such Party under this Agreement) and shall have at least 15 years of pharmaceutical industry experience. The arbitration and
all associated discovery proceedings and communications shall be conducted in English, and the arbitration shall be held in San
Francisco, California, USA.

 

(2)        Discovery.
Within [...***...] after selection of the Arbitrator, the Arbitrator shall conduct the Preliminary Conference. In addressing any
of the subjects within the scope of the Preliminary Conference, the Arbitrator shall take into account both the desirability of
making discovery efficient and cost-effective and the needs of the Parties for an understanding of any legitimate issue raised
in the Arbitration. In addition, each Party shall have the right to take up to 40 hours of deposition testimony, including expert
deposition testimony.

 

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(3)        Hearing;
Decision. The Hearing shall commence within [...***...] after the selection of the Arbitrator. The Arbitrator shall require
that each Party submit concise written statements of position and shall permit the submission of rebuttal statements, subject to
reasonable limitations on the length of such statements to be established by the Arbitrator. The Hearing shall be no longer than
[...***...] in duration. The Arbitrator shall also permit the submission of expert reports. The Arbitrator shall render the Award
within [...***...] after the Arbitrator declares the Hearing closed, and the Award shall include a written statement describing
the essential findings and conclusions on which the Award is based, including the calculation of any damages awarded. The Arbitrator
will, in rendering his or her decision, apply the substantive law of the State of New York, USA, excluding its conflicts of laws
principles with the exception of sections 5-1401 and 5-1402 of New York General Obligations Law. The Arbitrator’s
authority to award special, incidental, consequential or punitive damages shall be subject to the limitation set forth in Section
12.6. The Award rendered by the Arbitrator shall be final, binding and non-appealable, and judgment may be entered upon it
in any court of competent jurisdiction.

 

(4)        Costs.
Each Party shall bear its own attorney’s fees, costs, and disbursements arising out of the arbitration, and shall pay an
equal share of the fees and costs of the arbitrator; provided, however, that the Arbitrator shall be authorized,
but not required, to determine whether a Party is the prevailing party, and if so, to award to that prevailing party reimbursement
for any or all of its reasonable attorneys’ fees, costs and disbursements (including, for example, expert witness fees and
expenses, photocopy charges, travel expenses, etc.), and/or the fees and costs of the Administrator and the Arbitrator.

 

(c)        Court
Actions. Nothing contained in this Agreement shall deny either Party the right to seek injunctive or other equitable relief
from a court of competent jurisdiction in the context of a bona fide emergency or prospective irreparable harm, and such
an action may be filed and maintained notwithstanding any ongoing discussions between the Parties or any ongoing arbitration proceeding.
In addition, either Party may bring an action in any court of competent jurisdiction to resolve disputes pertaining to the validity,
construction, scope, enforceability, infringement or other violations of Patents, Trademarks, Copyrights or other intellectual
property rights, and no such claim shall be subject to arbitration pursuant to Section 15.1(b)(ii).

 

15.2        Force
Majeure. Except with respect to either Party’s payment obligations under this Agreement, no liability shall result from
delay in performance or non-performance, in whole or in part, by either of the Parties to the extent that such delay or non-performance
is caused by an event of Force Majeure. “Force Majeure” means an event that is beyond a non- performing Party’s
reasonable control, including an act of God, act of the other Party, strike, lock-out or other industrial/labor dispute, war,
acts of war (whether war to be declared or not) riot, civil commotion, terrorist act, malicious damage, epidemic, quarantine,
fire, flood, storm, natural disaster or compliance with any law or government order, rule, regulation or direction, whether or
not it is later held to be invalid. The non-performing Party shall promptly after the occurrence of the Force Majeure event give
written notice to the other Party stating the nature of the Force Majeure event, its anticipated duration and any action being
taken to avoid or minimize its effect. Any suspension of performance shall be of no greater scope and of no longer duration than
is reasonably required and the non-performing Party shall use Commercially Reasonable Efforts to remedy its inability to perform;
provided, however, if the suspension of performance continues for [...***...] after the date of the occurrence,
and such failure to perform would constitute a material breach of this Agreement in the absence of such event of Force Majeure,
the Parties shall meet and discuss in good faith any amendments to this Agreement to permit the other Party to exercise its rights
under the Agreement.

 

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15.3        Waiver
and Non-Exclusion of Remedies. A Party’s failure to enforce, at any time or for any period of time, any provision of
this Agreement, or to exercise any right or remedy, does not constitute a waiver of such provision, right or remedy, or prevent
such Party thereafter from enforcing any or all provisions of this Agreement and exercising any or all other rights and remedies.
To be effective any waiver must be in writing. Except as expressly set forth herein, the rights and remedies provided herein are
cumulative and do not exclude any other right or remedy provided by Applicable Law.

 

15.4        Notices.
Unless otherwise expressly provided for herein, any notice required or permitted to be provided by either Party to the other Party
under this Agreement shall be in writing. Notices shall refer specifically to this Agreement and shall be sent by registered mail,
by internationally recognized overnight delivery service, costs prepaid, or by facsimile or electronic mail, to the respective
addresses specified below (or to such other address as may be specified by notice to the other Party):

 

	If to Cardiome:	General Counsel

Cardiome International Sárl 

Rue des Alpes 21

Case Postale 1674

1201 Geneva Switzerland

Facsimile No.: [...***...]

E-mail address:
	 	 
	With a copy to:	General Counsel 

Cardiome Pharma Corp.

1441 Creekside Drive, 6th Floor

Vancouver, BC V6J 4S7

Canada

Facsimile No.: [...***...] 

E-mail address: [...***...]
	 	 
	If to SteadyMed:	SteadyMed Ltd.

c/o Therapeutics Inc.

2603 Camino Ramon

Suite 250

San Ramon, CA

94583

E-mail: [...***...]

 

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Any notice delivered electronically
or by facsimile shall be confirmed by a hard copy delivered as soon as practicable thereafter. The effective date of any notice
shall be the date of the addressee’s receipt, if received by 5:00 p.m. local time on a business day or, if not, the first
business day after receipt.

 

15.5        Entire
Agreement. This Agreement (including the Schedules attached hereto, which are incorporated herein by this reference) constitutes
the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior or contemporaneous
understandings or agreements, whether written or oral, with respect to the subject matter hereof, including the Confidentiality
Agreement. Each Party confirms that it is not relying on any representations, warranties or covenants of the other Party except
as specifically set forth herein. No amendment, modification, release or discharge of this Agreement shall be binding upon the
Parties unless in writing and duly executed by authorized representatives of both Parties.

 

15.6        Assignment.
Except as expressly provided hereunder, neither this Agreement nor any rights or obligations hereunder may be assigned or otherwise
transferred by either Party without the prior written consent of the other Party (which consent shall not be unreasonably withheld);
provided, however, that either Party may assign this Agreement and all of its rights and obligations hereunder without
the other Party’s consent:

 

(a)        in
connection with the transfer or sale of all or substantially all of the business of such Party to which this Agreement relates
to a Third Party (“Third Party Acquirer”), whether by merger, sale of stock, sale of assets or otherwise (each,
a “Sale Transaction”), provided that in the event of a Sale Transaction (whether this Agreement is actually
assigned or is assumed by the Third Party Acquirer or the surviving corporation resulting from such Sale Transaction by operation
of law (e.g., in the context of a reverse triangular merger)), intellectual property rights of the Third Party Acquirer that existed
prior to the Sale Transaction shall not be included in the technology licensed hereunder or otherwise subject to this Agreement;
or

 

(b)        to
an Affiliate, provided that the assigning Party shall remain liable and responsible to the non-assigning Party hereto for the performance
and observance of all such duties and obligations by such Affiliate.

 

The rights and obligations
of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the
Parties, and the name of a Party appearing herein will be deemed to include the name of such Party’s successors and permitted
assigns to the extent necessary to carry out the intent of this section. Any assignment not in accordance with this Section shall
be void.

 

15.7        Counterparts.
This Agreement may be executed by original, facsimile, or electronic signature (e.g., in a PDF format) and in several counterparts,
all of which shall be deemed to be originals, and all of which shall constitute one and the same Agreement.

 

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15.8        Severability;
Blue Pencil. To the fullest extent permitted by Applicable Law, the Parties waive any provision of law that would render any
provision in this Agreement invalid, illegal or unenforceable in any respect. If any provision of this Agreement is held to be
invalid, illegal or unenforceable, in any respect, then such provision will be given no effect by the Parties and shall not form
part of this Agreement. To the fullest extent permitted by Applicable Law and if the rights or obligations of either Party will
not be materially and adversely affected, all other provisions of this Agreement shall remain in full force and effect and the
Parties will use their best efforts to negotiate a provision in replacement of the provision held invalid, illegal or unenforceable
that is consistent with Applicable Law and achieves, as nearly as possible, the original intention of the Parties.

 

15.9        Expenses.
Each of the Parties shall pay the fees and expenses of its counsel and other experts and all other expenses incident to its negotiation,
preparation, execution, and delivery of this Agreement.

 

15.10      Further
Assurances. Each Party shall duly execute and deliver, or cause to be duly executed and delivered, such further instruments
and do and cause to be done such further acts and things, including the filing of such assignments, agreements, documents and
instruments, as may be necessary or as the other Party may reasonably request to carry out more effectively the provisions and
purposes hereof, or to better assure and confirm unto such other Party its rights and remedies under this Agreement.

 

15.11      Headings.
The section headings of this Agreement are for convenience of reference only and in no way define, describe, extend or limit the
scope or intent of this Agreement or the intent of any provision contained in this Agreement.

 

15.12      English
Language. All information, documents, materials, data, notices and other written communications provided by one Party to the
other Party shall be in the English language.

 

15.13     No
Joint Venture. Nothing contained in this Agreement shall be construed as creating a partnership, joint venture or agency relationship
between the Parties or, except as otherwise expressly provided herein, as granting to either Party the authority to bind or contract
any obligation in the name of or on the account of the other Party, or to make any statements, representations, guarantees or
warranties on behalf of the other Party. All persons employed by a Party shall be employees of such Party and not of the other
Party and all costs and obligations incurred by reason of any such employment shall be for the account and expense of such Party.
The Parties agree that the rights and obligations under this Agreement are not intended to constitute a partnership or similar
arrangement that will require separate reporting for tax purposes consistent with the intent reflected in the foregoing sentence
and agree that they shall not file any reports, documents or other item relating to taxes or state or acknowledge to any tax authority
that such relationship is a partnership or similar arrangement unless required by Applicable Law.

 

15.14      No
Third Party Beneficiaries. The provisions of this Agreement are for the sole benefit of the Parties and their successors and
permitted assigns, and they shall not be construed as conferring any rights in any other Persons.

 

[The remainder of this page was left intentionally
blank]

 

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IN WITNESS WHEREOF, the Parties have caused
this Agreement to be executed by their representatives thereunto duly authorized as of the Effective Date above.

 

	 	SteadyMed Ltd.
	 	 	 
	 	 	/s/ Jonathan M.N. Rigby
	 	Signature
	 	 	Name:	Jonathan M.N. Rigby
	 	 	Title:	President and CEO
	 	 	 	 
	 	Cardiome Pharma Corp.
	 	 	 	 
	 	 	/s/ William Hunter
	 	Signature
	 	 	Name:	William Hunter
	 	 	Title:	President and CEO
	 	 	 	 
	 	 	/s/Jennifer Archibald
	 	Signature
	 	 	Name:	Jennifer Archibald
	 	 	Title:	CFO
	 	 	 	 
	 	Correvio International Sárl
	 	 	 	 
	 	 	/s/ David D. McMasters
	 	Signature
	 	 	Name:	David D. McMasters
	 	 	Title:	Director
	 	 	 	 
	 	 	/s/ Jennifer Archibald
	 	Signature
	 	 	Name:	Jennifer Archibald
	 	 	Title:	Director

  

    	 	62Exhibit 4.6

 

Execution Version

 

CIPHER PHARMACEUTICALS INC.

 

and

 

CARDIOME PHARMA CORP.

 

and

 

CORREVIO PHARMA CORP.

 

ARRANGEMENT AGREEMENT

 

March 19, 2018

 

     

     

    

  

TABLE OF
CONTENTS

 

	Article 1 INTERPRETATION	1
	1.1	Definitions	1
	1.2	Interpretation	12
	1.3	Number, Gender and Persons	13
	1.4	Date for Any Action	13
	1.5	Currency	13
	1.6	Accounting Matters	13
	1.7	Knowledge	13
	1.8	Schedules	13
	 	 	 
	Article 2 THE ARRANGEMENT	14
	2.1	Arrangement	14
	2.2	Obligations	14
	2.3	Interim Order	14
	2.4	Cardiome Meeting	15
	2.5	Cardiome Circular	16
	2.6	Final Order	17
	2.7	Court Proceedings	18
	2.8	Articles of Arrangement and Effective Date	18
	2.9	Payment of Consideration	18
	2.10	Announcements and Consultations	19
	2.11	Withholding Taxes	19
	2.12	List of Shareholders	19
	2.13	U.S. Securities Law Matters	19
	2.14	United States Tax Matters	20
	2.15	Canadian Income Tax Matters	20
	2.16	Incentive Plan Matters	21
	2.17	Reorganization	22
	 	 	 
	Article 3 REPRESENTATIONS AND WARRANTIES OF CARDIOME AND CORREVIO	23
	3.1	Representations and Warranties of Cardiome	23
	3.2	Survival of Representations and Warranties of Cardiome	23
	3.3	Representations and Warranties of Correvio	23
	3.4	Survival of Representations and Warranties of Correvio	23
	 	 	 
	Article 4 REPRESENTATIONS AND WARRANTIES OF CIPHER	24
	4.1	Representations and Warranties of Cipher	24
	4.2	Survival of Representations and Warranties of Cipher	24
	 	 	 
	Article 5 COVENANTS	24
	5.1	Covenants of Cardiome Relating to the Arrangement	24
	5.2	Covenants of Cardiome Relating to the Conduct of Business	25
	5.3	Transferred Employees	28
	5.4	Post-Closing Filings	28
	 	 	 
	Article 6 CONDITIONS	28
	6.1	Mutual Conditions Precedent	28
	6.2	Additional Conditions Precedent in Favour of Cipher	30
	6.3	Additional Conditions Precedent in Favour of Cardiome	31
	6.4	Notice and Cure Provisions	31
	6.5	Satisfaction of Conditions	32
	 	 	 
	Article 7 ADDITIONAL COVENANTS	32
	7.1	Covenant Regarding Non-Solicitation	32

 

     

     

    

 

	7.2	Covenant Regarding Acquisition Proposal	32
	7.3	Right to Accept a Superior Proposal	34
	7.4	Access to Information; Confidentiality; Transition	35
	7.5	Insurance and Indemnification	36
	7.6	ROFR on New Canadian Products	36
	7.7	Product Introduction Fee	36
	 	 	 
	Article 8 TERM, TERMINATION, AMENDMENT AND WAIVER	37
	8.1	Term	37
	8.2	Termination	37
	8.3	Expenses	38
	8.4	Termination Payments	38
	8.5	Termination Payment to Cardiome	39
	8.6	Amendment	39
	8.7	Waiver	40
	 	 	 
	Article 9 INDEMNITY AND WARRANTY	40
	9.1	Correvio Indemnity	40
	9.2	Cipher Indemnity	41
	9.3	Taxable Gain Warranty	41
	9.4	Claim Notice	42
	9.5	Agency for Non-Parties	42
	9.6	Procedure for Indemnification – Direct Claims	42
	9.7	Procedure for Indemnification – Third Party Claims	42
	9.8	Cooperation	43
	9.9	Holdback Amount	44
	9.10	Exclusive Remedy	44
	9.11	No Double Recovery	44
	9.12	Price Purchase Consideration Adjustment	45
	 	 	 
	Article 10 GENERAL PROVISIONS AND MISCELLANEOUS	45
	10.1	Privacy	45
	10.2	Notices	45
	10.3	Governing Law	46
	10.4	Injunctive Relief	46
	10.5	Time of Essence	46
	10.6	Entire Agreement, Binding Effect and Assignment	47
	10.7	No Liability	47
	10.8	Severability	47
	10.9	Counterparts, Execution	47

 

SCHEDULES

 

SCHEDULE A 

SCHEDULE B 

SCHEDULE C 

SCHEDULE D 

SCHEDULE E 

SCHEDULE F 

SCHEDULE G 

SCHEDULE H 

SCHEDULE I 

SCHEDULE J 

 

    	 	- 2 -	 

     

    

  

ARRANGEMENT
AGREEMENT

 

Arrangement Agreement dated March 19, 2018
among Cipher Pharmaceuticals Inc. (“Cipher”), Cardiome Pharma Corp. (“Cardiome”) and Correvio
Pharma Corp. (“Correvio”).

 

WHEREAS:

 

A.       Cipher,
Cardiome and Correvio wish to complete a transaction whereby, among other things: (i) all of the outstanding Cardiome Shares (as
hereinafter defined) will be assigned and transferred to Correvio in exchange for Correvio Shares (as hereinafter defined); (ii)
all of the assets and liabilities of Cardiome, other than the Retained Assets and Retained Liabilities (each as hereinafter defined),
will be transferred to and assumed by Correvio; and (iii) Cipher will subsequently acquire all of the outstanding Cardiome Shares
from Correvio;

 

B.       The
Parties intend to carry out the transactions contemplated herein by way of a statutory plan of arrangement, which is to be completed
under the provisions of the CBCA (as hereinafter defined), and on and subject to the terms and conditions contained herein;

 

C.       Cipher
has entered into the Cardiome Voting Agreements (as hereinafter defined) with the Cardiome Supporting Shareholders (as hereinafter
defined), pursuant to which, among other things, such Cardiome Supporting Shareholders agree, subject to the terms and conditions
thereof, to vote the Cardiome Shares and any securities convertible, exercisable or exchangeable into Cardiome Shares held by them
in favour of the Cardiome Arrangement Resolution (as hereinafter defined); and

 

D.       The
Parties have entered into this Agreement to provide for the matters referred to in the foregoing recitals and for other matters
relating to such arrangement.

 

NOW THEREFORE in consideration of
the covenants and agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged), the Parties hereto covenant and agree as follows:

 

Article
1

INTERPRETATION

 

		1.1	Definitions

 

In this Agreement, unless the context otherwise
requires:

 

“Acquisition Proposal”
means, other than the transactions contemplated by this Agreement, any bona fide offer, proposal or inquiry from any Person
or group of Persons acting jointly or in concert, whether or not in writing and whether or not made public, made after the date
hereof relating to: (a) any acquisition or purchase, direct or indirect, of: (i) all or any part of the assets comprising the Retained
Assets held by Cardiome or any of its subsidiaries, or (ii) 20% or more of the issued and outstanding voting or equity securities
of Cardiome; (b) any take-over bid, tender offer or exchange offer that, if consummated, would result in such Person or group of
Persons beneficially owning 20% or more of the issued and outstanding voting or equity securities of Cardiome; or (c) any plan
of arrangement, merger, amalgamation, consolidation, share exchange, business combination, reorganization, recapitalization, liquidation,
dissolution or other similar transaction involving Cardiome or all or any part of the assets comprising the Retained Assets held
by Cardiome or any of its subsidiaries but not such a transaction affecting solely the Assigned Assets; in all cases, whether in
a single transaction or in a series of related transactions; provided, that, an Acquisition Proposal shall not include any bona
fide offer, proposal or inquiry relating solely to the acquisition of Assigned Assets;

 

“affiliate” has the
meaning ascribed thereto in the Securities Act;

 

     

     

    

  

“Agreement” means this
arrangement agreement, including all schedules annexed hereto, together with the Cardiome Disclosure Letter, as the same may be
amended, supplemented or otherwise modified from time to time, in accordance with the terms hereof;

 

“Ancillary Agreements (Aggrastat)”
means, with respect to the Aggrastat product, collectively (i) a transition services agreement, and (ii) a supply agreement, in
each case to be entered into between Correvio (and any affiliates of Correvio to the extent necessary or advisable) and Cardiome,
containing terms and conditions consistent with the term sheets relating thereto as agreed to by the Parties as of the date hereof,
together with such other terms and conditions as are typical for agreements of such nature and as may otherwise be agreed to by
the Parties, each acting reasonably;

 

“Ancillary Agreements (Brinavess)”
means, with respect to the Brinavess product, collectively (i) a transition services agreement, and (ii) a supply agreement, in
each case to be entered into between Correvio (and any affiliates of Correvio to the extent necessary or advisable) and Cardiome,
containing terms and conditions consistent with the term sheets relating thereto as agreed to by the Parties as of the date hereof,
together with such other terms and conditions as are typical for agreements of such nature and as may otherwise be agreed to by
the Parties, each acting reasonably;

 

“Arrangement” means
the arrangement of Cardiome under Section 192 of the CBCA on the terms and subject to the conditions set out in the Plan of Arrangement,
subject to any amendments or variations to the Plan of Arrangement made in accordance with the terms of this Agreement or Article
7 of the Plan of Arrangement or made at the direction of the Court in the Final Order with the consent of the Parties, each acting
reasonably;

 

“Articles of Arrangement”
means the articles of arrangement of Cardiome in respect of the Arrangement required by the CBCA to be filed with the Director
after the Final Order is made, which shall be in form and content satisfactory to the Parties, each acting reasonably;

 

“Assigned Assets” means
all of the assets, properties, interests and rights of Cardiome and its subsidiaries (of any nature or kind whatsoever), other
than the Retained Assets;

 

“Assignment and Assumption Agreement”
means the assignment and assumption agreement to be entered into on the Effective Date between Cardiome and Correvio, evidencing
the assignment to and the assumption by Correvio of all of the Assumed Liabilities;

 

“Assumed Liabilities”
means all of the Liabilities of Cardiome and its subsidiaries, other than the Retained Liabilities, whether arising before, as
of, or after the Effective Time;

 

“Authorization” means
any authorization, order, Permit, approval, grant, licence, registration, consent, right, notification, condition, franchise, privilege,
certificate, judgment, writ, injunction, award, determination, direction, decision, decree, bylaw, rule or regulation, whether
or not having the force of Law, and includes any Environmental Permit;

 

“Books and Records”
means all information in any form relating to Cardiome (including all predecessor corporations) or the Retained Assets and Retained
Liabilities, including books of account, financial, tax, business, marketing, personnel and research information and records, equipment
logs, operating guides and manuals and all other documents, files, correspondence and other information;

 

“Brinavess Assets” means
all patents, trademarks and goodwill owned by Cardiome related to the Brinavess product and the royalty agreement between Correvio
International Sarl and Cardiome with respect to royalties on non-Canadian Brinavess, but not including any Canadian patents, trademarks
and goodwill related to the Brinavess product;

 

“Business Day” means
any day of the year, other than a Saturday, Sunday or any statutory holiday in Toronto, Ontario or Vancouver, British Columbia;

 

    	 	- 2 -	 

     

    

  

“Cardiome Annual Financial Statements”
means the audited consolidated financial statements of Cardiome as at, and for the financial years ended, December 31, 2016 and
December 31, 2015, including the notes thereto;

 

“Cardiome Arrangement Resolution”
means the special resolution of the Cardiome Shareholders approving the Arrangement, the Plan of Arrangement and this Arrangement
Agreement to be considered at the Cardiome Meeting, substantially in the form attached as Schedule B;

 

“Cardiome Board” means
the board of directors of Cardiome, as the same is constituted from time to time;

 

“Cardiome Circular”
means the notice of the Cardiome Meeting and accompanying management information circular, including all schedules, appendices
and exhibits thereto and enclosures therewith, to be sent to the Cardiome Shareholders and other securityholders of Cardiome, as
required, in connection with the Cardiome Meeting, as amended, supplemented or otherwise modified from time to time;

 

“Cardiome Disclosure Documents”
means all information, disclosure, forms, reports, schedules, statements, certifications and other documents, including without
limitation all press releases, forms, reports, schedules, financial statements and notes and schedules to such financial statements,
management’s discussion and analysis of financial condition and operations, certifications, annual information forms, management
information circulars, material change reports and other documents required to be publicly disclosed or filed by Cardiome with
Securities Authorities pursuant to applicable Securities Laws, and which are available for review under Cardiome’s SEDAR
profile at www.sedar.com;

 

“Cardiome Disclosure Letter”
means the disclosure letter executed by Cardiome and delivered to Cipher prior to or concurrently with the execution of this Agreement;

 

“Cardiome Financial Advisor”
means Evans & Evans, Inc.;

 

“Cardiome Financial Statements”
means, collectively, the Cardiome Annual Financial Statements and the Cardiome Interim Financial Statements;

 

“Cardiome Interim Financial Statements”
means the unaudited consolidated interim financial statements of Cardiome as at, and for the three and nine months ended, September
30, 2017 and September 30, 2016, including the notes thereto;

 

“Cardiome Material Contracts”
means any Contract to which Cardiome is a party or by which Cardiome is bound pursuant to which Cardiome has any material Liability
or for which there is a reasonable potential for Cardiome to have a material Liability but shall not include any contract terminable
with no additional consideration by Cardiome on 30 days or less notice to the counterparty. Without limiting the foregoing, the
term “Cardiome Material Contact” shall include any:

 

		(a)	Contract concerning or relating to the Retained Assets (including the Intellectual Property Assets)
or Retained Liabilities;

 

		(b)	lease or other Contract concerning or relating to real property leased by Cardiome;

 

		(c)	employment or consulting Contract with any officer, employee or consultant of Cardiome (except
for employment or consulting contracts of indefinite hire or subject to automatic renewal entered into in the ordinary course of
business);

 

		(d)	collective bargaining agreement or other Contract with any labour union;

 

    	 	- 3 -	 

     

    

  

		(e)	profit sharing, bonus, stock option, pension, retirement, disability, stock purchase, medical,
dental, hospitalization, insurance or similar plan or agreement providing benefits to any current or former director, officer,
employee or consultant of Cardiome;

 

		(f)	orders or other Contracts for the purchase of products, supplies, equipment or services which involves
aggregate annual expenditures in excess of $50,000;

 

		(g)	orders or other Contracts for the sale of products, supplies, equipment or services which involves
aggregate annual expenditures in excess of $25,000;

 

		(h)	loan or credit agreement, trust indenture, mortgage, promissory note or other Contract for the
borrowing of money under which Cardiome has any obligations;

 

		(i)	agreement of guarantee, support, assumption or endorsement of, or any other similar commitment
with respect to, the Liabilities of, or any agreement to provide financial assistance of any kind to, any other Person;

 

		(j)	Contract pursuant to which Cardiome has any continuing obligations relating to indemnification
that could reasonably be expected to give rise to a Claim in excess of $25,000;

 

		(k)	commitment for charitable contributions;

 

		(l)	Contract providing for annual capital expenditures in excess of $25,000 in the aggregate;

 

		(m)	Contract for the sale of any assets, other than sales of inventory to customers in the ordinary
course of business;

 

		(n)	Contract pursuant to which Cardiome is a lessor of any machinery, equipment, motor vehicles, office
furniture, fixtures or other personal property which involves aggregate payments in excess of $25,000;

 

		(o)	any non-competition or similar Contract or any agreement that prohibits the ability of Cardiome
to participate in any type of business or to conduct business in any geographic area;

 

		(p)	Contract with any officer, director, employee, consultant, shareholder or any other person not
dealing at arm’s length with Cardiome (within the meaning of the Tax Act), except for employment or consultant contracts;

 

		(q)	Contract containing any “change in control”, “assignment” or other similar
provisions that will be triggered by consummation of the transactions contemplated by this Agreement, including the Arrangement;
or

 

		(r)	other Contract, not described above, under which Cardiome has any Liabilities or potential Liabilities
in excess of $50,000 per annum in the aggregate.

 

“Cardiome Meeting” means
the special meeting of Cardiome Shareholders, including any adjournment or postponement thereof, to be called and held in accordance
with the Interim Order to consider the Cardiome Arrangement Resolution and for any other purpose as may be set out in the Cardiome
Circular and agreed to by Cipher;

 

“Cardiome Option Plan”
means the stock option plan of Cardiome, last
approved by Cardiome Shareholders on June 20, 2017;

 

“Cardiome Options” means,
at any time, options to acquire Cardiome Shares granted under the Cardiome Option Plan which are, at such time, outstanding and
unexercised (whether or not vested);

 

    	 	- 4 -	 

     

    

  

“Cardiome Shareholder Approval”
has the meaning ascribed thereto in Subsection 2.3(c);

 

“Cardiome Shareholders”
means the holders of Cardiome Shares;

 

“Cardiome Shares” means
issued and outstanding common shares in capital of Cardiome;

 

“Cardiome Supporting Shareholders”
means, collectively, those senior officers and directors of Cardiome who have entered into Cardiome Voting Agreements;

 

“Cardiome Termination Fee”
has the meaning ascribed thereto in Subsection 8.5(a);

 

“Cardiome Voting Agreements”
means the voting agreements (including all amendments thereto) between Cipher and the Cardiome Supporting Shareholders setting
forth the terms and conditions upon which they have agreed, among other things, to vote their Cardiome Shares in favour of the
Cardiome Arrangement Resolution;

 

“Cardiome Warrants”
means, at any time, purchase warrants to acquire Cardiome Shares which are, at such time, outstanding and unexercised;

 

“CBCA” means the Canada
Business Corporations Act;

 

“Certificate of Arrangement”
means the certificate of arrangement to be issued by the Director pursuant to subsection 192(7) of the CBCA in respect of the Articles
of Arrangement;

 

“Change in Recommendation”
has the meaning ascribed thereto in Subsection 7.2(a)(iv);

 

“Cipher Board” means
the board of directors of Cipher as the same is constituted from time to time;

 

“Cipher Indemnified Parties”
has the meaning ascribed thereto in Subsection 9.1(a);

 

“Claim” means any demand,
action, cause of action, investigation, inquiry, suit, proceeding, claim, complaint, arbitration, charge, prosecution, assessment
or reassessment, including any appeal or application for review, judgment, arbitration, award, grievance, settlement or compromise;

 

“Claim Notice” has the
meaning ascribed thereto in Section 9.4;

 

“Confidentiality Agreement” means the confidentiality
agreement between the Parties made with effect as of October 23, 2017, as amended on February 1, 2018;

 

“Consideration” means
the consideration to be received by Cardiome Shareholders (other than Dissenting Shareholders) for their Cardiome Shares pursuant
to the Plan of Arrangement, consisting of one (1) Consideration Share for each one (1) Cardiome Share in accordance with the Exchange
Ratio (subject to any adjustment of the Exchange Ratio);

 

“Consideration Shares”
means the Correvio Shares to be issued in exchange for Cardiome Shares pursuant to the Arrangement;

 

“Contract” means any
contract, agreement, license, franchise, lease, arrangement, commitment, understanding, joint venture, partnership or other right
or obligation (written or oral) to which a Party or any of its subsidiaries is a party or by which a Party or any of its subsidiaries
is bound or to which any of their respective properties or assets is subject;

 

    	 	- 5 -	 

     

    

  

“Correvio” means Correvio
Pharma Corp., a corporation incorporated under the CBCA, that is and will be a wholly-owned subsidiary of Cardiome immediately
prior to the Effective Time;

 

“Correvio Canada” means
a corporation to be incorporated under the CBCA, that is and will be a wholly-owned subsidiary of Cardiome immediately prior to
the Effective Time;

 

“Correvio Canada Shares”
means issued and outstanding common shares in the capital of Correvio Canada;

 

“Correvio Indemnified Parties”
has the meaning ascribed thereto in Subsection 9.2(a);

 

“Correvio Replacement Option”
has the meaning ascribed thereto in Subsection 2.16(a);

 

“Correvio Shares” means
the issued and outstanding common shares in the capital of Correvio;

 

“Correvio Option Plan”
means the stock option plan of Correvio to be adopted by Correvio prior to the Effective Time, having identical terms and conditions
to the Cardiome Option Plan (except all references to Cardiome shall be references to Correvio);

 

“Court” means the Supreme
Court of British Columbia;

 

“CRG Loan” means the
amended and restated term loan agreement dated as of May 11, 2017 among Cardiome and its senior lenders (and their agent, CRG Servicing
LLC) and all agreements ancillary thereto;

 

“Damages” has the meaning
ascribed thereto in Section 9.4;

 

“Damages Claim” has
the meaning ascribed thereto in Section 9.4;

 

“Depositary” means Computershare
Trust Company of Canada, appointed for the purpose of, among other things, exchanging certificates representing Cardiome Shares
for certificates representing Consideration Shares;

 

“Director” means the
Director appointed pursuant to Section 260 of the CBCA;

 

“Direct Claim” has the
meaning ascribed thereto in Section 9.4;

 

“Dissent Rights” means
the rights of dissent exercisable by the Cardiome Shareholders under Section 190 of the CBCA in respect of the Arrangement, as
described in the Plan of Arrangement;

 

“Dissenting Shareholder”
has the meaning ascribed thereto in the Plan of Arrangement;

 

“Effective Date” means
the date shown on the Certificate of Arrangement giving effect to the Arrangement, which shall be no later than the Outside Date;

 

“Effective Time” has
the meaning ascribed thereto in the Plan of Arrangement;

 

“Employee Obligations”
has the meaning ascribed thereto in Section 5.3;

 

“Employee Plans” means
all benefit, bonus, incentive, pension, retirement, savings, stock purchase, profit sharing, stock option, stock appreciation,
phantom stock, termination, change of control, life insurance, medical, health, welfare, hospital, dental, vision care, drug, sick
leave, disability, and similar plans, programmes, arrangements or practices relating to any current or former director, officer
or employee of Cardiome or any of its subsidiaries;

 

    	 	- 6 -	 

     

    

  

"Encumbrance" includes
any mortgage, pledge, assignment, charge, lien, claim, security interest, adverse interest, adverse claim, other third person interest
or encumbrance of any kind, whether contingent or absolute, and any agreement, option, right or privilege (whether by Law, Contract
or otherwise) capable of becoming any of the foregoing;

 

“Environmental Laws”
means all Laws aimed at, or relating to, the reclamation or restoration of properties, protection of the environment, abatement
of pollution, protection of wildlife, ensuring public safety from environmental hazards, occupational health and safety, and all
other Laws relating to the management processing, use, treatment, storage, disposal, discharge, transport or handling of any Hazardous
Substances;

 

“Environmental Permits”
means any Permits issued or required under any Environmental Law;

 

“Exchange Ratio” means
a ratio of one (1) Consideration Share for each one (1) Cardiome Share; provided however, that the Cardiome Board may by resolution
determine to adjust and set the number of Cardiome Shares in such ratio at any number between one (1) and ten (10) so as to permit
compliance with any applicable stock exchange requirements;

 

“Final Order” means
an order of the Court granted pursuant to Section 192 of the CBCA, in a form acceptable to the Parties, each acting reasonably,
approving the Arrangement after a hearing upon the procedural and substantive fairness of the terms and conditions of the Arrangement,
as such order may be affirmed, amended, modified, supplemented or varied by the Court (with the consent of the Parties, each acting
reasonably) at any time prior to the Effective Date or, if appealed, as affirmed or amended (provided, however, that any such amendment
is acceptable to the Parties, each acting reasonably) on appeal, unless such appeal is withdrawn, abandoned or denied;

 

“Governmental Entity”
means (i) any multinational or supranational body or organization, nation, government, state, province, country, territory, municipality,
quasi-government, administrative, judicial or regulatory authority, agency, board, body, bureau, commission, instrumentality, court
or tribunal or any political subdivision thereof, or any central bank (or similar monetary or regulatory authority) thereof, any
taxing authority, any ministry or department or agency of any of the foregoing, (ii) any self-regulatory organization or stock
exchange, including the TSX and Nasdaq, (iii) any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government; and (iv) any corporation or other entity owned or controlled, through stock or capital
ownership or otherwise, by any of such entities or other bodies pursuant to the foregoing;

 

“Hazardous Substance”
means any waste or other substance that is prohibited, listed, defined, designated or classified as hazardous, radioactive, corrosive,
explosive, infectious, carcinogenic, or toxic or a pollutant or a contaminant under or pursuant to, or that could result in any
Liability under, any applicable Environment Laws including petroleum and all derivatives thereof or synthetic substitutes therefor,
hydrogen sulphide, arsenic, cadmium, lead, mercury, polychlorinated biphenyls (“PCBs”), PCB-containing equipment
and material, mould, asbestos, asbestos-containing material, urea-formaldehyde, urea-formaldehyde-containing material and any other
material or substance that may impair the environment;

 

“Holdback Amount” means
an amount equal to (i) $1,000,000, if all of the conditions referenced in Subsections 6.1(i), 6.1(j) and 6.1(k) have been satisfied
on prior to the Effective Time, or (ii) $2,500,000, in any other case, which amount forms part of the Share Purchase Consideration
and shall be paid to Correvio pursuant to the terms and conditions of Section 9.9;

 

“including” means including
without limitation, and “include” and “includes” have a corresponding meaning;

 

“Indemnification Claim”
has the meaning ascribed thereto in Section 9.4;

 

“Indemnified Party”
means a Cardiome Indemnified Party or Cipher Indemnified Party, as applicable;

 

    	 	- 7 -	 

     

    

  

“Intellectual Property Assets”
means the Intellectual Property Rights owned or licensed by Cardiome which form part of the Retained Assets, as listed in Schedule
C(x) of the Cardiome Disclosure Letter;

 

“Intellectual Property Rights”
means all rights in intellectual property and industrial property, whether or not registrable, patentable or otherwise formally
protectable, and whether or not registered, patented, otherwise formally protected or the subject of a pending application for
registration, patent or any other formal protection, including all rights, titles, interests, and benefits in and to (a) trade-marks,
trade dress, corporate, partnership and business names and other trade names, (b) inventions, patent rights, arts, processes, machines,
manufactures, compositions of matter, (c) copyrights, software and databases, (d) designs and industrial designs, (e) know-how,
trade secrets, proprietary information, formulae, recipes, systems, methods and techniques and related documentation, customer
and supplier information, and market and survey information, (f) telephone numbers, domain names and social media identities, and
all derivatives, modifications and improvements of the foregoing;

 

“Inter-company Agreements”
means any agreements between Cardiome and one or more of its subsidiaries;

 

“Interim Order” means
an order of the Court in a form acceptable to the Parties, each acting reasonably, providing for, among other things, the calling
and holding of the Cardiome Meeting, as the same may be amended by the Court with the consent of the Parties, each acting reasonably;

 

“Key Regulatory Approvals”
means those sanctions, rulings, consents, orders, exemptions, permits and other approvals of Governmental Entities, necessary to
proceed with the transactions contemplated by this Agreement and the Plan of Arrangement, including but not limited to, in relation
to Cardiome, the approval of the TSX and Nasdaq in respect of the Arrangement and the grant of the Interim Order and the Final
Order, as listed in Schedule C(i) of the Cardiome Disclosure Letter;

 

“Key Third Party Consents”
means those notices, consents or approvals required to be delivered to or obtained from any third party (other than any Governmental
Entity), including under any Contract, to proceed with the transactions contemplated by this Agreement and the Plan of Arrangement,
as listed in Schedule C(i) of the Cardiome Disclosure Letter;

 

“Law” means, with respect
to any Person, any and all applicable law (statutory, common or otherwise), constitution, treaty, convention, ordinance, code,
rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement, whether domestic or foreign, enacted,
adopted, promulgated or applied by a Governmental Entity that is binding upon or applicable to such Person or its business, undertaking,
property or securities, and to the extent that they have the force of law, policies, guidelines, notices and protocols of any Governmental
Entity, as amended;

 

"Liability" means, in
respect of any Person, any debt, liability or obligation of any kind or nature whatsoever, including (i) any right against such
Person to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
disputed, undisputed, legal, equitable, secured or unsecured, (ii) any right against such Person to an equitable remedy for breach
of performance if such breach gives rise to a right to payment, whether or not such right to any equitable remedy is reduced to
judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured, and (iii) any obligation of such Person
for the performance of any covenant or agreement (whether for the payment of money or otherwise);

 

“Losses” means any and
all loss, liability, damage, cost, expense, charge, fine, penalty or assessment, interest charges, punitive damages, fines, penalties
and reasonable professional fees and disbursements, including in connection with any Claim;

 

    	 	- 8 -	 

     

    

  

“Material Adverse Effect”
means any effect that is, or would reasonably be expected to be, material and adverse to the Retained Assets or Retained Liabilities,
taken as a whole, or the business, condition (financial or otherwise), properties, assets (tangible or intangible), liabilities
(whether absolute, accrued, conditional or otherwise), operations or results of operations of Cardiome and its subsidiaries, taken
as a whole, other than any effect relating to or affecting, as applicable (i) the Canadian economy, political conditions (including
the outbreak of war or any acts of terrorism) or securities markets in general, (ii) the pharmaceutical industry in general, (iii)
any generally applicable change in Laws (other than orders, judgments or decrees against Cardiome or any of its subsidiaries),
or (iv) a change in the market trading price of the Cardiome Shares that is either (A) related to this Agreement and the Arrangement
or the announcement thereof, or (B) primarily a result of a change, effect, event or occurrence excluded from this definition of
Material Adverse Effect referred to in clause (i), (ii) or (iii) above; provided, however, that the effect referred to in clause
(i), (ii) or (iii) above does not primarily relate to (or have the effect of primarily relating to) Cardiome and its subsidiaries,
taken as a whole, or disproportionately adversely affect Cardiome and its subsidiaries, taken as a whole, compared to other companies
of similar size operating in the industry in which Cardiome and its subsidiaries operate;

 

“material change”, “material
fact” and “misrepresentation” have the meanings ascribed thereto in the Securities Act;

 

“MI 61-101” means Multilateral
Instrument 61-101 - Protection of Minority Security Holders in Special Transactions;

 

“Moved SARL Plus SA Assets”
means those assets listed Schedule J;

 

“Moved Trevyent Assets”
means those assets listed in Schedule I;

 

“Nasdaq” means the Nasdaq
Capital Market;

 

“New Canadian Product”
has the meaning ascribed thereto in Subsection 7.6(a);

 

“Notice of Acceptance”
has the meaning ascribed thereto in Subsection 7.6(b);

 

“ordinary course of business”,
“ordinary course of business consistent with past practice”, or any similar reference, means, with respect to
an action taken by a Person, that such action is consistent with the past practices of such Person and is taken in the ordinary
course of the normal day-to-day business and operations of such Person; provided that in any event such action is not unreasonable
or unusual;

 

“Offered Interest” has
the meaning ascribed thereto in Subsection 7.6(a);

 

“Office Lease” means
the office lease agreement between Cardiome and Central 1 Credit Union dated July 23, 2014;

 

“Option Period” has
the meaning ascribed thereto in Subsection 7.6(b);

 

“Outside Date” means
June 30, 2018 or such later date as may be agreed to in writing by the Parties;

 

“Parties” means, collectively,
Cardiome, Correvio and Cipher and “Party” means any one of them;

 

“Permit” means any license,
permit, certificate, consent, order, grant, approval, agreement, classification, restriction, registration or other Authorization
of, from or required by any Governmental Entity;

 

“Person” includes any
individual, firm, partnership, limited partnership, limited liability partnership, joint venture, venture capital fund, limited
liability company, unlimited liability company, association, trust, trustee, executor, administrator, legal personal representative,
estate, body corporate, corporation, company, unincorporated association or organization, Governmental Entity, syndicate or other
entity, whether or not having legal status;

 

    	 	- 9 -	 

     

    

  

“Plan of Arrangement”
means the plan of arrangement of Cardiome, substantially in the form attached as Schedule A, and any amendments or variations thereto
made from time to time in accordance with this Agreement, the Plan of Arrangement or upon the direction of the Court in the Interim
Order or the Final Order with the consent of the Parties, each acting reasonably;

 

“Pre-Closing Reorganization”
has the meaning ascribed thereto in Subsection 2.17(a);

 

“PSU Plan” means Cardiome’s
2014 Phantom Share Unit Plan adopted with effect from December 6, 2014;

 

“PSUs” means, as of
any date, phantom share units issued under the PSU Plan outstanding as of such date;

 

“Representative” means,
collectively, in respect of a Person, its subsidiaries and its affiliates and its and their respective officers, directors, employees,
consultants, advisors, agents or other representatives (including financial, legal or other advisors);

 

“Retained Assets” means
only those assets listed in Schedule F and includes the Books and Records;

 

“Retained Employees”
means only those employees of Cardiome or its subsidiaries listed in Schedule H;

 

“Retained Liabilities”
means only those Liabilities listed in Schedule G;

 

“Right of First Refusal”
has the meaning ascribed thereto in Subsection 7.6(b);

 

“RSU Plan” means Cardiome’s
Amended Restricted Share Unit Plan adopted with effect from May 9, 2014;

 

“RSUs” means, as of
any date, restricted share units issued under the RSU Plan outstanding as of such date;

 

“SEC” means the U.S.
Securities and Exchange Commission;

 

“Securities Act” means
the Securities Act (British Columbia) and the rules, regulations and published policies made thereunder, as now in effect
and as they may be promulgated or amended from time to time;

 

“Securities Authorities”
means all applicable securities regulatory authorities, including the applicable securities commissions or similar regulatory authorities
in each of the provinces and territories of Canada and the TSX, Nasdaq and the SEC;

 

“Securities Laws” means
the Securities Act, together with all other applicable Canadian provincial securities laws, the U.S. Securities Act, U.S. Exchange
Act, and applicable securities laws of the United States and the states thereof, and the rules and regulations and published policies
of the securities authorities thereunder, as now in effect and as they may be promulgated or amended from time to time, and includes
the rules and policies of the TSX and Nasdaq;

 

“Share Purchase Consideration”
means an amount equal to $25,500,000 to be paid by Cipher to Correvio as payment for all of the outstanding Cardiome Shares held
by Correvio pursuant to the terms of the Arrangement (inclusive, for greater certainty, of the Holdback Amount);

 

“Sublicense Agreement (Trevyent)”
means a sublicense and supply agreement to be entered into between Correvio International Sarl and Cardiome, in substantially the
form agreed to by the Parties as of the date hereof (and as approved by SteadyMed Ltd.), pursuant to which Cardiome will be granted
certain rights with respect of the commercialization of Trevyent® (a drug device combination that delivers Remodulin® (treprostinil))
in Canada;

 

    	 	- 10 -	 

     

    

  

“Sublicense Agreement (Xydalba)”
means a sublicense and supply agreement to be entered into between Correvio International Sarl and Cardiome, in substantially the
form agreed to by the Parties as of the date hereof (and as approved by Allergan Pharmaceuticals International Limited), pursuant
to which Cardiome will be granted certain rights with respect of the commercialization of XydalbaTM (dalbavancin hydrochloride)
in Canada;

 

“subsidiary” has the
meaning ascribed thereto in the Securities Act;

 

“Superior Proposal”
means any bona fide Acquisition Proposal that relates to the acquisition of 100% of the outstanding Cardiome Shares, made
in writing by a third party or third parties acting jointly or in concert with one another, who deal at arm’s length to Cardiome,
that in the good faith determination of the Cardiome Board, after receipt of advice from its outside financial advisor and legal
counsel: (i) is reasonably capable of being completed in accordance with its terms without undue delay, taking into account all
legal, financial, regulatory and other aspects of such proposal and the party making such proposal; (ii) in respect of which any
required financing to complete such Acquisition Proposal has been demonstrated to be available; (iii) is not subject to a due diligence
or access condition; (iv) did not result from a breach of Article 7; (v) is made available to all Cardiome Shareholders on the
same terms and conditions; (vi) failure to recommend such Acquisition Proposal to the Cardiome Shareholders would be inconsistent
with the Cardiome Board’s fiduciary duties; and (vii) taking into account all of the terms and conditions of such Acquisition
Proposal, if consummated in accordance with its terms (but not assuming away any risk of non-completion), would result in a transaction
more favourable to Cardiome Shareholders, from a financial point of view, than the Arrangement (after taking into account any adjustment
to the terms and conditions of the Arrangement proposed by Cipher pursuant to Section 7.3);

 

“Superior Proposal Notice”
has the meaning ascribed thereto in Subsection 7.3(a)(iv);

 

“Superior Proposal Notice Period”
has the meaning ascribed thereto in Subsection 7.3(a)(iv);

 

“Tax Act” means the
Income Tax Act (Canada) and the regulations made thereunder, as now in effect and as they may be promulgated or amended
from time to time;

 

“Tax Returns” means
all returns, reports, declarations, elections, notices, filings, forms, statements and other documents (whether in tangible, electronic
or other form) and including any amendments, schedules, attachments, supplements, appendices and exhibits thereto, made, prepared,
filed or required to be made, prepared or filed by Law in respect of Taxes;

 

“Taxes” means any and
all domestic and foreign federal, state, provincial, municipal and local taxes, assessments and other governmental charges, duties,
impositions and liabilities imposed by any Governmental Entity, including without limitation pension plan contributions, tax instalment
payments, unemployment insurance contributions and employment insurance contributions, workers’ compensation and deductions
at source, including taxes based on or measured by gross receipts, income, profits, sales, capital, use, and occupation, and including
goods and services, value added, ad valorem, sales, capital, transfer, franchise, non-resident withholding, customs, payroll, recapture,
employment, excise and property duties and taxes, together with all interest, penalties, fines and additions imposed with respect
to such amounts;

 

“Termination Payment”
means an amount equal to $2,500,000;

 

“Termination Payment Event”
has the meaning ascribed thereto in Subsection 8.4(a);

 

“Third Party Claim”
has the meaning ascribed thereto in Section 9.4;

 

    	 	- 11 -	 

     

    

  

“Transfer Agreement”
means the transfer agreement / bill of sale to be entered into on the Effective Date, between the Cardiome and Correvio, which
effects the sale, conveyance, grant, transfer and assignment to Correvio of all of Cardiome’s, right, title or interest in
or to the Assigned Assets;

 

“Transfer Offer” has
the meaning ascribed thereto in Subsection 7.6(a);

 

“Transaction Personal Information”
has the meaning ascribed thereto in Section 10.1;

 

“TSX” means the Toronto
Stock Exchange;

 

“United States” means
the United States of America, its territories and possessions, any state of the United States and the District of Columbia;

 

“U.S. Exchange Act”
means the United States Securities Exchange Act of 1934, as amended and the rules and regulations promulgated thereunder;

 

“U.S. GAAP” means United
States generally accepted accounting principles;

 

“U.S. Securities Act”
means the United States Securities Act of 1933, as amended and the rules and regulations promulgated thereunder; and

 

“U.S. Tax Code” has
the meaning ascribed thereto in Section 2.14;

 

		1.2	Interpretation

 

For the purposes of this Agreement, except
as otherwise expressly provided:

 

		(a)	“this Agreement” means this Arrangement Agreement, including the recitals and
Schedules hereto, and not any particular Article, Section, Subsection or other subdivision, recital or Schedule hereof, and includes
any agreement, document or instrument entered into, made or delivered pursuant to the terms hereof, as the same may, from time
to time, be supplemented or amended and in effect;

 

		(b)	the words “hereof”, “herein”, “hereto”
and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular
Article, Section, Subsection, or other subdivision, recital or Appendix hereof;

 

		(c)	all references in this Agreement to a designated “Article”, “Section”,
“Subsection” or other subdivision, recital or “Schedule” hereof are references to the designated
Article, Section, Subsections or other subdivision, recital or Schedule to, this Agreement;

 

		(d)	the division of this Agreement into Article, Sections, Subsections and other subdivisions, recitals
or Schedule, the inclusion of a table of contents and the insertion of headings and captions are for convenience of reference only
and are not intended to interpret, define or limit the scope, extent or intent of this Agreement or any provision hereof;

 

		(e)	a reference to a statute in this Agreement includes all regulations, rules, policies or instruments
made thereunder, all amendments to the statute, regulations, rules, policies or instruments in force from time to time, and any
statutes, regulations, rules, policies or instruments that supplement or supersede such statute, regulations, rules, policies or
instruments; and

 

		(f)	the word “including” is not limiting, whether or not non-limiting language (such as
“without limitation” or “but not limited to” or words of similar import) is used with reference thereto.

 

    	 	- 12 -	 

     

    

  

		1.3	Number, Gender and Persons

 

In this Agreement, unless the context otherwise
requires, words importing the singular shall include the plural and vice versa, words importing the use of either gender shall
include both genders and neuters and the word person and words importing persons shall include a natural person, firm, trust, partnership,
association, corporation, joint venture or government (including any governmental agency, political subdivision or instrumentality
thereof) and any other entity or group of persons of any kind or nature whatsoever.

 

		1.4	Date for Any Action

 

If the date on which any action is required
to be taken hereunder by a Party is not a Business Day, such action shall be required to be taken on the next succeeding day which
is a Business Day.

 

		1.5	Currency

 

Unless otherwise stated, all references
in this Agreement to sums of money are expressed in lawful money of Canada and “$” refers to Canadian dollars. All
references to US$ refers to Untied States dollars.

 

		1.6	Accounting Matters

 

Unless otherwise stated, all accounting
terms used in this Agreement in respect of Cardiome shall have the meanings attributable thereto under U.S. GAAP and all determinations
of an accounting nature in respect of Cardiome required to be made shall be made in a manner consistent with U.S. GAAP consistently
applied.

 

		1.7	Knowledge

 

Where any representation or warranty is
expressly qualified by reference to the knowledge of Cardiome, it shall be deemed to refer to the actual knowledge, after making
reasonable inquiries regarding the relevant subject matter, of any of William Hunter (President and Chief Executive Officer), Justin
Renz (Chief Financial Officer), David Dean (Chief Business Development Officer) and David McMasters (General Counsel).

 

		1.8	Schedules

 

The following Schedules are annexed to
this Agreement and are incorporated by reference into this Agreement and form a part hereof:

 

Schedule A – Plan of Arrangement

 

Schedule B – Cardiome Arrangement
Resolution

 

Schedule C – Representations
and Warranties of Cardiome

 

Schedule D – Representations
and Warranties of Correvio

 

Schedule E – Representations
and Warranties of Cipher

 

Schedule F – Retained Assets

 

Schedule G – Retained Liabilities

 

Schedule H – Retained Employees

 

    	 	- 13 -	 

     

    

  

Schedule I – Moved Trevyent
Assets

 

Schedule J – Moved SARL
Plus SA Assets

 

Article
2

THE ARRANGEMENT

 

		2.1	Arrangement

 

The Parties agree that the Arrangement
will be implemented in accordance with and subject to the terms and conditions contained in this Agreement and the Plan of Arrangement.

 

		2.2	Obligations

 

		(a)	Subject to the terms and conditions of this Agreement, in order to facilitate the Arrangement,
Cardiome will take all action reasonably necessary in accordance with all applicable Laws, including Securities Laws, to:

 

		(i)	to make and diligently prosecute a motion to the Court for the Interim Order in connection with
the application for the Final Order in respect of the Arrangement;

 

		(ii)	in accordance with the terms of and the procedures contained in the Interim Order, duly call, give
notice of, convene and hold the Cardiome Shareholder Meeting as soon as practicable, and in any event not later than May 23, 2018,
to vote upon the Arrangement;

 

		(iii)	solicit proxies of the Cardiome Shareholders in favour of the Cardiome Arrangement Resolution and
against any resolution submitted by any Person that is inconsistent with the Cardiome Arrangement Resolution and the completion
of any of the transactions contemplated by this Agreement;

 

		(iv)	provide Cipher with copies of or access to information regarding the Cardiome Shareholder Meeting
generated by any dealer and/or proxy solicitation agent, as requested from time to time by Cipher;

 

		(v)	consult with Cipher in fixing the date of the Cardiome Shareholder Meeting, give notice to Cipher
of the Cardiome Shareholder Meeting and allow Cipher’s Representatives (including legal counsel) to attend the Cardiome Shareholder
Meeting;

 

		(vi)	not change the record date for the Cardiome Shareholders entitled to vote at the Cardiome Shareholder
Meeting, including in connection with any adjournment or postponement of the Cardiome Shareholder Meeting, unless required by applicable
Law;

 

		(vii)	subject to obtaining the approvals as contemplated in the Interim Order and as may be directed
by the Court in the Interim Order, take all steps necessary or desirable to submit the Arrangement to the Court and appear at Court
to seek the Final Order as soon as reasonably practicable (and, in any event, within five (5) Business Days following the approval
of the Cardiome Shareholder Meeting); and

 

		(viii)	deliver the Articles of Arrangement to the Director in accordance with Section 2.8 upon satisfaction
or waiver of the conditions set out in Article 6.

 

		2.3	Interim Order

 

As soon as reasonably practicable, Cardiome
shall apply to the Court in a manner and on terms acceptable to Cipher, acting reasonably, pursuant to Section 192 of the CBCA
and, in cooperation with Cipher, prepare, file and diligently pursue an application for the Interim Order, which shall provide,
among other things:

 

    	 	- 14 -	 

     

    

  

		(a)	for the class of Persons to whom notice is to be provided in respect of the Arrangement and the
Cardiome Meeting and for the manner in which such notice is to be provided;

 

		(b)	fix the record date for the purposes of determining the Cardiome Shareholders entitled to receive
notice of and vote at the Cardiome Meeting;

 

		(c)	that the requisite approval for the Cardiome Arrangement Resolution shall be at least two-thirds
of the votes cast by the Cardiome Shareholders present in person or by proxy at the Cardiome Meeting and such other approval, if
any, as is required pursuant to MI 61-101 (the “Cardiome Shareholder Approval”);

 

		(d)	that, in all other respects, the terms, conditions and restrictions of the constating documents
of Cardiome, including quorum requirements and other matters, shall apply in respect of the Cardiome Meeting;

 

		(e)	for the grant of Dissent Rights to the Cardiome Shareholders who are registered Cardiome Shareholders,
as set out in the Plan of Arrangement;

 

		(f)	that the Cardiome Meeting may be adjourned or postponed from time to time by Cardiome subject to
the terms of this Agreement without the need for additional approval of the Court;

 

		(g)	for the notice requirements with respect to the presentation of the application to the Court for
the Final Order;

 

		(h)	that the record date for Cardiome Shareholders entitled to notice of and to vote at the Cardiome
Meeting will not change in respect of any adjournment(s) of the Cardiome Meeting, unless required pursuant to applicable Securities
Laws;

 

		(i)	that the Parties intend to rely upon the exemption from registration provided by Section 3(a)(10)
of the U.S. Securities Act with respect to the issuance of the Consideration Shares and the Correvio Replacement Options to be
issued pursuant to the Arrangement;

 

		(j)	that each Cardiome Shareholder and holder of Cardiome Options shall have the right to appear before
the Court at the hearing of the Court to approve the application for the Final Order so long as they enter a notice of appearance
within a reasonable time; and

 

		(k)	for such other matters as Cipher and/or Cardiome may reasonably require, subject to obtaining the
prior consent of Cardiome and/or Cipher, respectively, such consent not to be unreasonably withheld or delayed.

 

		2.4	Cardiome Meeting

 

Subject to the terms of this Agreement:

 

		(a)	Cardiome agrees to convene and conduct the Cardiome Meeting in accordance with the Interim Order,
the constating documents of Cardiome and applicable Law as soon as practicable with a current target date of May 9, 2018, and in
any event not later than May 23, 2018.

 

		(b)	Cardiome shall not adjourn, postpone or cancel (or propose or permit the adjournment, postponement
or cancellation of) the Cardiome Meeting without Cipher’s prior written consent, except:

 

    	 	- 15 -	 

     

    

  

		(i)	as required for quorum purposes (in which case the meeting will be adjourned and not cancelled)
or by applicable Law or by a Governmental Entity; or

 

		(ii)	as otherwise required or permitted under this Agreement;

 

provided, however,
that, if Cardiome provides Cipher with a Superior Proposal Notice prior to the Cardiome Meeting, Cardiome may, and shall upon the
request of Cipher, adjourn the Cardiome Meeting to a date that is not less than five (5) Business Days and not more than fifteen
(15) days after the date of the Superior Proposal Notice.

 

		(c)	Cardiome will advise Cipher from time to time as Cipher may reasonably request, and at least on
a daily basis on each of the last ten (10) Business Days prior to the date of the Cardiome Meeting, as to the aggregate tally of
the proxies received by Cardiome in respect of the Cardiome Arrangement Resolution.

 

		(b)	Cardiome will promptly advise Cipher of any written communication from or written claims brought
by (or threatened, orally or in writing, to be brought by) any Person in opposition to the Arrangement and/or purported exercise
by any Cardiome Shareholder of Dissent Rights received by Cardiome and any withdrawal of Dissent Rights received by Cardiome and
any written communications sent by or on behalf of Cardiome to any Cardiome Shareholder exercising or purporting to exercise Dissent
Rights. Cardiome shall not settle or compromise, or agree to settle or compromise, any such claims without the prior written consent
of Cipher, not to be unreasonably withheld or delayed.

 

		(c)	Except as required by applicable Laws, Cardiome will not propose or submit for consideration at
the Cardiome Shareholder Meeting any business other than the Arrangement and the approval of the Cardiome Arrangement Resolution
without Cipher’s prior written consent, which consent shall not be unreasonably withheld or delayed.

 

		2.5	Cardiome Circular

 

		(a)	As soon as reasonably practicable following execution of this Agreement, but subject to Subsection 2.5(c),
Cardiome shall (i) prepare, in consultation with Cipher, the Cardiome Circular, together with any other documents required by applicable
Laws, and (ii) cause the Cardiome Circular to be sent to Cardiome Shareholders and holders of Cardiome Options and filed in all
jurisdictions where the same is required to be filed, all in accordance with all applicable Laws and the Interim Order. Cardiome
shall ensure that the Cardiome Circular complies in all material respects with all applicable Laws and, without limiting the generality
of the foregoing, that the Cardiome Circular represents full, true and plain disclosure of all material facts concerning Cardiome
and does not include any misrepresentation (other than with respect to any information relating solely to Cipher and provided by
Cipher for inclusion in the Cardiome Circular) and contains sufficient detail to permit the Cardiome Shareholders to form a reasoned
judgement concerning the matters to be placed before them at the Cardiome Meeting.

 

		(b)	Cardiome shall disclose in the Cardiome Circular:

 

		(i)	that the Cardiome Board has received a fairness opinion from the Cardiome Financial Advisor that
the Arrangement is fair, from a financial point of view, to the Cardiome Shareholders;

 

		(ii)	the general terms of the fairness opinion from the Cardiome Financial Advisor and such fairness
opinion shall be included in the Cardiome Circular;

 

		(iii)	that the Cardiome Board has unanimously determined, after receiving financial and legal advice,
that (i) the Arrangement is fair and reasonable to the Cardiome Shareholders, (ii) the Arrangement is in the best interests of
Cardiome, and (iii) the Cardiome Board recommends that the Cardiome Shareholders vote in favour of the Cardiome Arrangement Resolution;
and

 

    	 	- 16 -	 

     

    

  

		(iv)	that each director and senior officer of Cardiome intends to vote all of such Person’s Cardiome
Shares (including any Cardiome Shares issued upon the exercise of any securities convertible, exercisable or exchangeable into
Cardiome Shares) in favour of the Cardiome Arrangement Resolution, subject to the other terms of this Agreement and the Cardiome
Voting Agreements.

 

		(c)	Cipher shall promptly provide to Cardiome all information regarding Cipher or its subsidiaries
and affiliates, as required by the Interim Order and applicable Laws for inclusion in the Cardiome Circular, or in any amendments
or supplements to such Cardiome Circular. Cipher shall ensure that no such information provided by Cipher for inclusion in the
Cardiome Circular will contain any misrepresentation concerning Cipher.

 

		(d)	Cipher and its legal counsel shall be given a reasonable opportunity to review and comment on the
Cardiome Circular and all such other documents and the Cardiome Circular and all such other documents shall be in form and substance
satisfactory to Cipher, acting reasonably, before they are printed and mailed to Cardiome Shareholders or filed with any Governmental
Entity, subject to any disclosure obligations imposed on Cardiome by any Securities Authorities.

 

		(e)	Each of Cardiome and Cipher shall promptly notify the other Party if at any time before the Effective
Date either becomes aware that the Cardiome Circular contains a misrepresentation, or otherwise requires an amendment or supplement,
and the Parties shall co-operate in the preparation of any amendment or supplement to the Cardiome Circular as required or appropriate,
and Cardiome shall promptly mail or otherwise publicly disseminate any amendment or supplement to the Cardiome Circular to Cardiome
Shareholders and, if required by the Court or applicable Laws, file the same with any Governmental Entity and as otherwise required.

 

		(f)	Cardiome shall keep Cipher informed of any material requests or comments made by any Securities
Authorities in connection with the Cardiome Circular and promptly provide Cipher with copies of any correspondence received by
Cardiome from, or sent by Cardiome to, any Securities Authorities in connection with the Cardiome Circular.

 

		2.6	Final Order

 

If the Interim Order is obtained and the
Cardiome Arrangement Resolution is passed at the Cardiome Meeting as required by applicable Law then, subject to the terms of this
Agreement, Cardiome shall as soon as practicable (and, in any event, within five (5) Business Days following the approval of the
Cardiome Shareholder Meeting) apply to the Court for the Final Order pursuant to Section 192(4)(e) of the CBCA approving the Arrangement
on terms reasonably satisfactory to each of Cardiome and Cipher.

 

    	 	- 17 -	 

     

    

  

		2.7	Court Proceedings

 

Cardiome will provide Cipher and its legal
counsel with a reasonable opportunity to review and comment upon drafts of all material to be filed with the Court in connection
with the Interim Order and the Final Order, and will give reasonable consideration to all such comments. Subject to applicable
Law, Cardiome will not file any material with the Court in connection with the Interim Order and the Final Order, or serve any
such material, and will not agree to modify or amend materials so filed or served, except as contemplated by this Agreement, the
Plan of Arrangement, or with Cipher’s prior written consent, such consent not to be unreasonably withheld, conditioned or
delayed; provided, however, that nothing herein shall require Cipher to agree or consent to any increase in the Share Purchase
Consideration or other modification or amendment to such filed or served materials that expands or increases Cipher’s obligations
set forth in any such filed or served materials or under this Agreement or the Plan of Arrangement, or diminishes or limits Cipher’s
and/or Cardiome’s rights in respect of the Retained Assets following the Effective Time. Cardiome shall also provide to Cipher
and to Cipher’s legal counsel on a timely basis copies of any notice of appearance or other Court documents served on Cardiome
in respect of the application for the Interim Order or the Final Order or any appeal therefrom and of any notice, whether written
or oral, received by Cardiome indicating any intention to oppose the granting of the Interim Order or the Final Order or to appeal
the Interim Order or the Final Order. Cardiome will ensure that all materials filed with the Court in connection with the Interim
Order and the Final Order, are consistent in all material respects with the terms of this Agreement and the Plan of Arrangement.
In addition, Cardiome will not object to legal counsel to Cipher making such submissions on the hearing of the motion for the Interim
Order and the application for the Final Order as such counsel considers appropriate, provided, however, that Cardiome is advised
of the nature of any submissions prior to the hearing and such submissions are consistent with this Agreement and the Plan of Arrangement.
Cardiome will also oppose any proposal from any party that the Final Order contain any provision inconsistent with this Agreement,
and, if at any time after the issuance of the Final Order and prior to the Effective Date, Cardiome is required by the terms of
the Final Order or by Law to return to Court with respect to the Final Order, it shall do so after notice to, and in consultation
and cooperation with, Cipher.

 

		2.8	Articles of Arrangement and Effective Date

 

		(a)	The Articles of Arrangement shall implement the Plan of Arrangement and will become effective as
of the Effective Time. On the second (2nd) Business Day after the satisfaction or, where permitted, the waiver of the
conditions (excluding conditions that, by their terms, cannot be satisfied until the Effective Date, but subject to the satisfaction
or, where not prohibited, the waiver of those conditions as of the Effective Date) set forth in Article 6, unless another time
or date is agreed to in writing by the Parties, the Articles of Arrangement shall be filed by Cardiome with the Director, provided,
however, that the Articles of Arrangement shall not be sent to the Director, for endorsement and filing by the Director, except
as contemplated hereby or with Cipher’s prior written consent. From and after the Effective Time, the Plan of Arrangement
will have all of the effects provided by applicable Law, including the CBCA. Each of Cardiome and Cipher agrees to amend the Plan
of Arrangement at any time prior to the Effective Time in accordance with Section 8.6 of this Agreement to include such other
terms determined to be reasonably necessary or desirable by Cipher or Cardiome, as the case may be, provided, however, that the
Plan of Arrangement shall not be amended in any manner which has the effect of changing the Share Purchase Consideration or the
Consideration, or which is otherwise prejudicial to the Cardiome Shareholders or other parties to be bound by the Plan of Arrangement
or is inconsistent with the provisions of this Agreement.

 

		(b)	The closing of the Arrangement will take place at the offices of Blake, Cassels & Graydon LLP
in Vancouver, British Columbia at 10:00 a.m. (Vancouver time) on the Effective Date, or at such other time and place as may be
agreed to by the Parties. The Parties acknowledge that the Effective Date is currently targeted to occur on May 14, 2018,

 

		2.9	Payment of Consideration

 

		(a)	Correvio will, following receipt by Cardiome of the Final Order and prior to the filing by Cardiome
of the Articles of Arrangement, deposit in escrow with the Depositary sufficient Consideration Shares to pay the aggregate Consideration
payable by Correvio to Cardiome Shareholders on the Effective Date pursuant to the Plan of Arrangement.

 

		(b)	Cipher will, following receipt by Cardiome of the Final Order and prior to the filing by Cardiome
of the Articles of Arrangement, make arrangements satisfactory to Correvio, acting reasonably, to pay the aggregate Share Purchase
Consideration (less the Holdback Amount calculated in accordance with Section 9.9) to Correvio, in immediately available funds,
on the Effective Date pursuant to the Arrangement.

 

    	 	- 18 -	 

     

    

  

		2.10	Announcements and Consultations

 

Cipher and Cardiome shall consult with
each other in respect to issuing any press release, preparing any presentations or otherwise making any public statement with respect
to this Agreement or the Arrangement and in making any filing with any Governmental Entity with respect to this Agreement or the
Arrangement. Each of Cipher and Cardiome shall use commercially reasonable efforts to enable the other Party to review and comment
on all such press releases, presentations, public statements and filings prior to the release or filing, respectively, thereof,
and neither Cipher nor Cardiome shall release, make or file any press release, presentation, public statements or filing without
the prior written consent of the other Party (which consent shall not be unreasonably withheld or delayed); provided, however,
that the obligations herein shall not prevent a Party from making such disclosure as is required by applicable Laws or the rules
and policies of any applicable stock exchange, and the Party making such disclosure shall use all commercially reasonable efforts
to enable the other Party to review or comment on the disclosure or filing, and if such prior notice is not possible, to give such
notice immediately following the making of such disclosure or filing. Reasonable consideration shall be given to any comments made
by the other Party and its counsel.

 

		2.11	Withholding Taxes

 

The Parties, the Depositary and any Person
on their behalf shall be entitled to deduct and withhold from any consideration payable or otherwise deliverable to any Person
hereunder and from all dividends, interest or other amounts payable to any Person (including, for greater certainty, any Cardiome
Shareholder, any Dissenting Shareholder, any holder of RSUs or any holder of PSUs) such amounts as any of the Parties or the Depositary
or any Person on their behalf may be required or permitted to deduct and withhold therefrom under any provision of applicable Laws
in respect of Taxes. To the extent that such amounts are so deducted, withheld and remitted, such amounts shall be treated for
all purposes under this Agreement as having been paid to the Person to whom such amounts would otherwise have been paid. The Parties
and the Depositary shall also have the right to withhold and sell, on their own account or through a broker, and on behalf of any
aforementioned Person to whom a withholding obligation applies, or require such Person to irrevocably direct the sale through a
broker and irrevocably direct the broker to pay the proceeds of such sale to the Parties or the Depositary, as appropriate, such
number of Consideration Shares issued to such Person pursuant to the Arrangement as is necessary to produce sale proceeds (after
deducting commissions payable to the broker and other costs and expenses) sufficient to fund any withholding obligations. None
of the Parties or the Depositary will be liable for any Loss arising out of any sale.

 

		2.12	List of Shareholders

 

Subject to Section 10.1, at the reasonable
request of Cipher from time to time, Cardiome shall provide Cipher with a list (in both written and electronic form) of the registered
Cardiome Shareholders, together with their addresses and respective holdings of Cardiome Shares, with a list of the names and addresses
and holdings of all Persons having rights issued by Cardiome to acquire Cardiome Shares and a list of non-objecting beneficial
owners of Cardiome Shares, together with their addresses and respective holdings of Cardiome Shares. Cardiome shall from time to
time furnish Cipher with such additional information, including updated or additional lists of Cardiome Shareholders and lists
of holders of Cardiome Options, Cardiome Warrants, PSUs or RSUs, and such other assistance as Cipher may reasonably request.

 

		2.13	U.S. Securities Law Matters

 

The Parties agree that the Arrangement
will be carried out with the intention that all Consideration Shares and Correvio Replacement Options issued pursuant to the Arrangement
will be issued by Correvio in reliance on the exemption from the registration requirements of the U.S. Securities Act provided
by Section 3(a)(10) thereunder. In order to ensure the availability of the exemption under Section 3(a)(10) of the U.S. Securities
Act, the Parties agree that the Arrangement will be carried out on the following basis:

 

    	 	- 19 -	 

     

    

  

		(a)	the Arrangement will be subject to the approval of the Court;

 

		(b)	the Court will be advised as to the intention of the Parties to rely on the exemption under Section
3(a)(10) of the U.S. Securities Act prior to the hearing required to approve the Arrangement;

 

		(c)	the Court will be required to satisfy itself as to the procedural and substantive fairness of the
terms and conditions of the Arrangement to the Cardiome Shareholders and holders of Cardiome Options;

 

		(d)	Cardiome will ensure that each Person entitled to receive Consideration Shares and Correvio Replacement
Options on completion of the Arrangement will be given adequate notice advising them of their right to attend the hearing of the
Court to give approval of the Arrangement and providing them with sufficient information necessary for them to exercise that right;

 

		(e)	each Person entitled to receive Consideration Shares or Correvio Replacement Options will be advised
that the Consideration Shares and Correvio Replacement Options issued pursuant to the Arrangement have not been registered under
the U.S. Securities Act and will be issued by Correvio in reliance on the exemption under Section 3(a)(10) of the U.S. Securities
Act;

 

		(f)	the Final Order approving the Arrangement that is obtained from the Court will state that the Arrangement
is approved by the Court as being substantively and procedurally fair to the Cardiome Shareholders and the holders of Cardiome
Options; and

 

		(g)	the Interim Order approving the Cardiome Meeting will specify that each Cardiome Shareholder and
each other holder of Cardiome Options will have the right to appear before the Court at the hearing of the Court to give approval
of the Arrangement so long as they enter an appearance within a reasonable time.

 

		2.14	United States Tax Matters

 

The Parties agree that
(a) the exchange is intended to qualify as a reorganization within the meaning of 368(a)(1)(B) of the U.S. Internal Revenue Code
(the “U.S. Tax Code”); (b) the Plan of Arrangement is intended to be a “plan of reorganization”
within the meaning of the Treasury Regulations promulgated under Section 368 of the U.S. Tax Code for purposes of Sections 354
and 361 of the U.S. Tax Code and (c) the reorganization is intended to qualify as a nonrecognition transaction for purposes of
the U.S. Tax Code.

 

		2.15	Canadian Income Tax Matters

 

		(a)	Section 85.1.  It is intended that pursuant to the Arrangement each outstanding
Cardiome Share will be exchanged for Consideration Shares and no other consideration such that the share exchange qualifies under
Section 85.1 of the Tax Act.

 

		(b)	Subsection 85(1) Tax Election.
Cardiome shall, and Correvio shall cause Correvio Canada to, elect jointly in the prescribed form under subsection 85(1) of the
Tax Act within the time period permitted under the Tax Act and under any other applicable provincial or territorial statute at
an elected amount that results in the transfer of the Brinavess Assets from Cardiome to Correvio Canada in exchange for
the issuance of 100 common shares in the capital of Correvio Canada to
Cardiome under the Plan of Arrangement taking place on a tax-free basis. Cardiome shall file such election within the time period
prescribed under subsection 85(6) of under the Tax Act.

 

		(c)	Section 22 Tax Election.
If available, Correvio and Cardiome shall elect jointly in the prescribed form under section 22 of the Tax Act and the corresponding
provisions of any other applicable Tax statute as to the sale of any receivables from Cardiome to Correvio and designate in such
election an amount equal to the fair market value of such receivables. This election, or these elections, shall be made within
the time prescribed for such elections.

 

    	 	- 20 -	 

     

    

  

		(d)	Subsection 20(24) Tax Election.
Correvio and Cardiome shall, if applicable, jointly execute and file an election under subsection 20(24) of the Tax Act in the
manner required by subsection 20(25) of the Tax Act and under the equivalent or corresponding provisions of any other applicable
provincial or territorial statute, in the prescribed forms and within the time period permitted under the Tax Act and under any
other applicable provincial or territorial statute, as to such amount paid by Cardiome to Correvio for assuming future obligations.
In this regard, Correvio and Cardiome acknowledge that a portion of the assets of Cardiome transferred by Cardiome to Correvio
pursuant to the Arrangement and having a value equal to the amount elected under subsection 20(24) of the Tax Act and the equivalent
provisions of any applicable provincial or territorial statute, is being transferred by Cardiome as a payment for the assumption
of such future obligations by Correvio.

 

		(e)	Other Tax Elections. Correvio
and Cardiome shall also execute and deliver such other Tax elections and forms as they may mutually agree upon.

 

		(f)	GST and PST. To the extent
that a transfer of assets from Cardiome to Correvio or from Cardiome to Correvio Canada, as the case may be, is subject to GST
under the Excise Tax Act (Canada) or provincial sales tax (“PST”) under the Provincial Sales Tax Act
(British Columbia), or both, Cardiome shall collect on or before the Effective Time from Correvio or Correvio Canada, or from
both, as the case may be, and remit to the appropriate Government Entity the appropriate amount of GST or PST, or both.

 

		(g)	Purchase Exemption Certificates. Correvio shall provide Cardiome with properly completed
purchase exemption certificates, or their equivalent, where applicable, to support any reasonable exemption claimed by Correvio
in respect of provincial sales tax.

 

		(h)	Payment of Taxes. Except as otherwise may be provided in this Agreement, Correvio, or Correvio
Canada as the case may be, shall pay all Taxes applicable to, or resulting from the transactions contemplated by, this Agreement
(other than Taxes payable by Cardiome under applicable Law as arising as of and after the Effective Time) and any filing, registration,
recording or transfer fees payable in connection with the instruments of transfer provided for in this Agreement.

 

		2.16	Incentive Plan Matters

 

		(a)	Each Cardiome Option outstanding immediately prior to the Effective Time shall be exchanged for
an option (each, a “Correvio Replacement Option”) to purchase from Correvio, without further act or formality,
the number of Correvio Shares equal to the product of (A) the number of Cardiome Shares subject to the Cardiome Option immediately
before the Effective Time, and (B) the Exchange Ratio, provided that if the foregoing would result in the issuance of a fraction
of a Correvio Share on any particular exercise of Correvio Replacement Options, then the number of Correvio Shares otherwise issued
shall be rounded down to the nearest whole number of Correvio Shares. The exercise price per Correvio Share subject to any such
Correvio Replacement Option shall be an amount equal to the quotient of (A) the exercise price per Cardiome Share under the exchanged
Cardiome Option immediately prior to the Effective Time divided by (B) the Exchange Ratio (provided that the aggregate exercise
price payable on any particular exercise of Correvio Replacement Options shall be rounded up to the nearest whole cent). Except
as set out above, all terms and conditions of a Correvio Replacement Option, including the term to expiry, conditions to and manner
of exercising, will be the same as the Cardiome Option for which it was exchanged, and shall be governed by the terms of the Correvio
Option Plan and any document evidencing a Cardiome Option shall thereafter evidence and be deemed to evidence such Correvio Replacement
Option. If the exchange contemplated by this paragraph results in a disposition of Cardiome Options, it is intended that the provisions
of subsection 7(1.4) of the Tax Act apply to any such disposition. Accordingly, and notwithstanding the foregoing, if required,
the exercise price of a Correvio Replacement Option will be increased such that the In-The-Money Amount (as defined in the Plan
of Arrangement) of the Correvio Replacement Option immediately after the exchange does not exceed the In-The-Money Amount of the
Cardiome Option immediately before the exchange.

 

    	 	- 21 -	 

     

    

  

		(b)	Immediately following the issuance of the Correvio Replacement Options pursuant to the Plan of
Arrangement, the Cardiome Option Plan shall be terminated. Following the Effective Time, Cardiome shall have no further Liability
with respect to the Cardiome Option Plan or any Cardiome Options (or any Liability to any former holder thereof).

 

		(c)	Each Cardiome Warrant shall be adjusted in accordance with the adjustment provisions in the relevant
warrant certificate or warrant indenture and Correvio covenants and agrees to be bound by the terms of such warrant certificate
or warrant indenture. Following the Effective Time, Cardiome shall have no further Liability with respect to any Cardiome Warrants
(or any Liability to any holder or former holder thereof).

 

		(d)	Each RSU outstanding immediately prior to the Effective Time (whether vested or unvested), notwithstanding
the terms of the RSU Plan, shall be deemed to be unconditionally vested, and such RSU shall, without any further action by or on
behalf of a holder of RSUs, be deemed to be assigned and transferred by such holder to Cardiome in exchange for a cash payment
from Cardiome equal to the fair market value of each RSU on the trading day two days prior to the Effective Date, subject to applicable
withholdings, and each such RSU shall immediately be cancelled. Following the Effective Time, Cardiome shall have no further Liability
with respect to any Cardiome RSUs (or any Liability to any holder or former holder thereof).

 

		(e)	Each PSU outstanding immediately prior to the Effective Time (whether vested or unvested), notwithstanding
the terms of the PSU Plan, shall be deemed to be unconditionally vested, and such PSU shall, without any further action by or on
behalf of a holder of PSUs, be deemed to be assigned and transferred by such holder to Cardiome in exchange for a cash payment
from Cardiome equal to the fair market value of each PSU on the trading day two days prior to the Effective Date, subject to applicable
withholdings, and each such PSU shall immediately be cancelled. Following the Effective Time, Cardiome shall have no further Liability
with respect to any Cardiome PSUs (or any Liability to any holder or former holder thereof).

 

		2.17	Reorganization

 

		(a)	Prior to the Effective Time, Cardiome shall, or shall cause certain subsidiaries (as identified
below) to, carry out the following transactions (the “Pre-Closing Reorganization”), which Pre-Closing Reorganization
is hereby specifically acknowledged and permitted by the Parties to occur on or prior to the Effective Date:

 

		(i)	Cardiome shall cause Correvio Canada to be incorporated as a wholly owned subsidiary of Cardiome
and shall cause Correvio Canada to be registered for the purposes of the Excise Tax Act (Canada);

 

		(ii)	Cardiome shall assign any and all of its right, title or interest in or to the Moved Trevyent Assets
to Correvio International Sarl, in consideration of Correvio International Sarl issuing to Cardiome, a non-interest bearing promissory
note with a principal amount equal to the fair market value of Cardiome’s interest in the Moved Trevyent Assets;

 

		(iii)	Cardiome and Correvio International Sarl shall enter into the Sublicense Agreement (Trevyent) and
Sublicense Agreement (Xydalba) as partial repayment of an existing loan from Cardiome to Correvio International Sarl by an amount
equal to the aggregate fair market value of the Sublicense Agreement (Trevyent) and Sublicense Agreement (Xydalba); and

 

    	 	- 22 -	 

     

    

  

		(iv)	Cardiome International SA, Correvio International Sarl and Cardiome (UK) Ltd., shall assign any
and all of their right, title or interest in or to the Moved SARL Plus SA Assets to Cardiome as partial repayment of existing loans
from Cardiome to Cardiome International SA, Correvio International Sarl and Cardiome (UK) Ltd. by an amount equal to the aggregate
fair market value of the Moved SARL Plus SA Assets transferred by each to Cardiome.

 

		(b)	After the Effective Time, if the Effective Time is on or prior to June 28, 2018, and in any event
prior to June 30, 2018, Cardiome International SA and Correvio International Sarl shall amalgamate and continue as one corporation.

 

		(c)	Cardiome shall provide to Cipher all documentation reasonably requested by Cipher related to the
Pre-Closing Reorganization for its review and comment at least five (5) Business Days prior to the Effective Date.

 

Article
3

REPRESENTATIONS AND WARRANTIES OF CARDIOME AND CORREVIO

 

		3.1	Representations and Warranties of Cardiome

 

Cardiome represents and warrants to Cipher
as set forth in Schedule C, except to the extent that such representations and warranties are qualified by the Cardiome Disclosure
Letter (which shall make reference to the corresponding section or subsection of Schedule C), and acknowledges and agrees that
Cipher is relying upon such representations and warranties in connection with the entering into of this Agreement and the completion
of the transactions contemplated herein. Any investigation by Cipher or its Representatives shall not mitigate, diminish or affect
the representations and warranties of Cardiome pursuant to this Agreement.

 

		3.2	Survival of Representations and Warranties of Cardiome

 

The representations and warranties of Cardiome
contained in this Agreement shall not survive the completion of the Arrangement and shall expire and be terminated on the earlier
of the Effective Time and the date on which this Agreement is terminated in accordance with its terms.

 

		3.3	Representations and Warranties of Correvio

 

Correvio represents and warrants to Cipher
as set forth in Schedule D, and acknowledges and agrees that Cipher is relying upon such representations and warranties in connection
with the entering into of this Agreement and the completion of the transactions contemplated herein. Any investigation by Cipher
or its Representatives shall not mitigate, diminish or affect the representations and warranties of Correvio pursuant to this Agreement.

 

		3.4	Survival of Representations and Warranties of Correvio

 

The representations and warranties of Correvio
contained in this Agreement shall not survive the completion of the Arrangement and shall expire and be terminated on the earlier
of the Effective Time and the date on which this Agreement is terminated in accordance with its terms.

 

    	 	- 23 -	 

     

    

  

Article
4

REPRESENTATIONS AND WARRANTIES OF CIPHER

 

		4.1	Representations and Warranties of Cipher

 

Cipher represents and warrants to Cardiome
as set forth in Schedule E, and acknowledges and agrees that Cardiome is relying upon such representations and warranties in connection
with the entering into of this Agreement and the completion of the transactions contemplated herein. Any investigation by Cardiome
or its Representatives shall not mitigate, diminish or affect the representations and warranties of Cipher pursuant to this Agreement.

 

		4.2	Survival of Representations and Warranties of Cipher

 

The representations and warranties of Cipher
contained in this Agreement shall not survive the completion of the Arrangement and shall expire and be terminated on the earlier
of the Effective Time and the date on which this Agreement is terminated in accordance with its terms.

 

Article
5

COVENANTS

 

		5.1	Covenants of Cardiome Relating to the Arrangement

 

Cardiome shall perform all obligations
required to be performed by Cardiome under this Agreement, co-operate with Cipher in connection therewith, and do all such other
acts and things as may be necessary or desirable in order to consummate and make effective, as soon as reasonably practicable,
the transactions contemplated in this Agreement and, without limiting the generality of the foregoing, Cardiome shall:

 

		(a)	apply for and use commercially reasonable efforts to obtain all Key Regulatory Approvals and all
Key Third Party Consents, keep Cipher reasonably informed as to the status of the proceedings related to obtaining the Key Regulatory
Approvals and Key Third Party Consents, including providing Cipher with copies of all related applications and notifications, in
draft form (except where such material is confidential in which case it will be provided (subject to applicable Laws) to Cipher’s
outside counsel on an “external counsel” basis), in order for Cipher to provide its comments thereon, which shall be
given due and reasonable consideration;

 

		(b)	use commercially reasonable efforts to satisfy all conditions precedent in this Agreement and take
all steps set forth in the Interim Order and Final Order applicable to it and comply promptly with all requirements which applicable
Laws may impose on Cardiome with respect to the Arrangement or the other transactions contemplated by this Agreement;

 

		(c)	use commercially reasonable efforts to obtain, effective as of the Effective Time, releases, in
favour of Cardiome, in respect of Liabilities under the Cardiome Material Contracts from the respective counterparties thereto,
in each case in form and substance acceptable to the Parties, each acting reasonably;

 

		(d)	if requested to do so in writing by Cipher on or before the fifth (5th) Business Day
before the Effective Date, terminate, cancel or withdraw, as applicable, any one or more of the contracts, attestations and statement
of works listed in subsections 5(h)(i) to (v) of Schedule F;

 

		(e)	defend all lawsuits or other legal, regulatory or other proceedings against Cardiome challenging
or affecting this Agreement or the consummation of the transactions contemplated hereby and use commercially reasonable efforts
to have lifted or rescinded any injunction or restraining order or other order relating to Cardiome which may materially impede
the ability of the Parties to consummate the Arrangement or the other transactions contemplated by this Agreement;

 

    	 	- 24 -	 

     

    

  

		(f)	not take any action that is intended to, or would reasonably be expected to, individually or in
the aggregate, prevent, materially delay or materially impede the ability of Cardiome to consummate the Arrangement or the other
transactions contemplated by this Agreement;

 

		(g)	prior to the Effective Time, terminate without any Liability to Cardiome all Inter-company Agreements,
except for those Inter-company Agreements that constitute Retained Assets or Retained Liabilities (as listed in Schedules F and
G, respectively);

 

		(h)	until the earlier of the Effective Time and termination of this Agreement in accordance with its
terms, subject to applicable Law, make available and cause to be made available to Cipher, and its Representatives, information
reasonably requested by Cipher for the purposes of preparing, considering and implementing integration and strategic plans for
the acquisition by Cipher of the Retained Assets and Retained Liabilities following the Effective Date and confirming the representations
and warranties of Cardiome set out in this Agreement, except as provided for in any sublicense or transition and supply agreements
entered into by the Parties regarding the Retained Assets and Retained Liabilities (and in which case the terms of such agreements
shall govern the conduct of the Parties); and

 

		(i)	until the earlier of the Effective Time and termination of this Agreement in accordance with its
terms, Cardiome shall, to the extent not precluded by applicable Law, promptly notify Cipher, in writing, when Cardiome has knowledge
of:

 

		(i)	any Material Adverse Effect or any change, effect, event, development, occurrence, circumstance
or state of facts which would reasonably be expected to have a Material Adverse Effect;

 

		(ii)	any notice or other communication from any Person alleging that the consent (or waiver, permit,
exemption, order, approval, agreement, amendment or confirmation) of such Person (or other Person) is or may be required in connection
with this Agreement or the Arrangement;

 

		(iii)	any notice or other communication from any Governmental Entity in connection with the Arrangement
or this Agreement (and contemporaneously provide a copy of any such written notice or communication to Cipher); or

 

		(iv)	any filing, actions, suits, claims, investigations or proceedings commenced or, to the knowledge
of Cardiome, threatened orally or in writing against, relating to or involving or otherwise affecting Cardiome, its subsidiaries
or any of their respective assets that would reasonably be expected to have a Material Adverse Effect.

 

		5.2	Covenants of Cardiome Relating to the Conduct of Business

 

Cardiome covenants and agrees that at all
times prior to the Effective Time, except as disclosed in the Cardiome Disclosure Letter or as otherwise expressly contemplated
or permitted by this Agreement (including, the Pre-Closing Reorganization permitted under Section 2.17 of this Agreement), or as
Cipher shall otherwise agree in writing, Cardiome shall, and shall cause its subsidiaries (as applicable) to:

 

		(a)	conduct its businesses and affairs related to the Retained Assets and Retained Liabilities in,
and not take any action related to the Retained Assets and Retained Liabilities except in, the ordinary course of business consistent
with past practice;

 

		(b)	use commercially reasonable efforts to maintain and preserve all of its material rights under each
Contract or Authorization related to any Retained Asset or Retained Liability;

 

    	 	- 25 -	 

     

    

  

		(c)	pay, discharge or satisfy, in the ordinary course of business consistent with past practice, Liabilities
reflected or reserved against in the Cardiome Financial Statements or incurred in the ordinary course of business consistent with
past practice, and not incur any new Liability outside the ordinary course of business;

 

		(d)	without limiting the foregoing, pay, discharge or satisfy the Retained Liabilities in the ordinary
course of business consistent with past practice;

 

		(e)	use commercially reasonable efforts to preserve intact its present business organization, the Retained
Assets and Retained Liabilities (including associated intellectual property) and goodwill related to the Retained Assets, and preserve
the current material relationships with suppliers, distributors, employees, consultants, customers and others having business relationships
with it related to the Retained Assets and Retained Liabilities;

 

		(f)	continue to employ the Retained Employees on their current terms and conditions;

 

		(g)	not:

 

		(i)	amend or propose to amend the articles or by-laws or
other constating documents of Cardiome;

 

		(ii)	except as contemplated by this Agreement, split, consolidate or reclassify, or propose to split,
consolidate or reclassify, any of the Cardiome Shares or undertake or propose to undertake any other capital reorganization or
change in the Cardiome Shares or any other securities of Cardiome;

 

		(iii)	amend the terms of any outstanding equity securities of Cardiome;

 

		(iv)	declare, set aside or pay any dividend or other distribution or payment (whether in cash, securities
or property or any combination thereof) in respect of the Cardiome Shares or any other securities of Cardiome,

 

		(v)	redeem, purchase or otherwise acquire, or offer to redeem, purchase or otherwise acquire, any Cardiome
Shares or any other securities of Cardiome;

 

		(vi)	adopt a plan of liquidation or resolution providing for the liquidation or dissolution of Cardiome;

 

		(vii)	acquire or agree to acquire (by merger, amalgamation, acquisition of shares or assets or otherwise)
any company, partnership or other business organization or division, or incorporate or form, or agree to incorporate or form, any
company, partnership or other business organization or make or agree to make any investment either by purchase of shares or securities,
contributions of capital, property transfer or purchase of, any property or assets of any other Person, company, partnership or
other business organization;

 

		(viii)	except as contemplated by this Agreement, pursue any corporate acquisition, merger or make any
other material change to its business or affairs;

 

		(ix)	enter into or agree to the terms of any joint venture or similar agreement, arrangement or relationship;

 

		(x)	sell, pledge, lease, dispose of or encumber any of the Retained Assets or Retained Liabilities,
except in the ordinary course of business consistent with past practice;

 

    	 	- 26 -	 

     

    

  

		(xi)	waive, release, grant or transfer any rights in respect of, or modify or change in any material
respect, any Retained Asset or Retained Liability, without first advising Cipher and obtaining Cipher’s consent and direction,
acting reasonably, as to any action to be taken in that regard, and forthwith taking any action directed by Cipher, acting reasonably;

 

		(xii)	take any action or fail to take any action which action or failure to act would result in the loss,
expiration or surrender of, or the loss of any material benefit under, or reasonably be expected to cause any Governmental Entities
to institute proceedings for the suspension, revocation or limitation of rights under, any material Authorizations relating to
any Retained Asset or Retained Liability; or fail to prosecute with commercially reasonable due diligence any pending applications
to any Governmental Entities relating to any Retained Asset or Retained Liability;

 

		(xiii)	waive, release, transfer, modify or amend, in any material respect, any Contract or Authorization
related to any Retained Asset or Retained Liability;

 

		(xiv)	enter into or adopt any shareholder rights plan or similar agreement or arrangement;

 

		(xv)	make any changes to existing accounting policies, other than as required by applicable Laws or
by U.S. GAAP;

 

		(xvi)	change any method of Tax accounting, make or change any Tax election, file any materially amended
Tax Returns, settle or compromise any Tax liability, agree to an extension or waiver of the limitation period with respect to the
assessment, reassessment, or determination of Taxes, enter into any closing agreement with respect to any Tax or surrender any
right to claim a material Tax refund;

 

		(xvii)	take any action that would reasonably be expected to interfere with or be inconsistent with the
completion of the Arrangement or the transactions contemplated in this Agreement; or

 

		(xviii)	announce an intention, enter into any formal or informal agreement, or otherwise make a commitment
to do any of the things prohibited by any of the foregoing subsections.

 

		(h)	Subject to Section 7.5, Cardiome shall use commercially reasonable efforts to cause its current
insurance (or re-insurance) policies not to be cancelled or terminated or any of the coverage thereunder to lapse before the Outside
Date, unless simultaneously with such termination, cancellation or lapse, replacement policies underwritten by insurance and re-insurance
companies of nationally recognized standing providing coverage equal to or greater than the coverage under the cancelled, terminated
or lapsed policies for substantially similar premiums are in full force and effect.

 

		(i)	(i) Duly and timely file all Tax Returns required to be filed by it on or after the date hereof
and all such Tax Returns will be true, complete and correct in all material respects; (ii) timely withhold, collect, remit and
pay all Taxes which are to be withheld, collected, remitted or paid by it to the extent due and payable, except for any Taxes contested
in good faith pursuant to applicable Laws or that are immaterial in amount (either individually or in the aggregate); (iii) not
make or rescind any material express or deemed election relating to Taxes except as required or desirable in respect of the Arrangement;
(iv) not make a request for a tax ruling or enter into a closing agreement with any taxing authorities; (v) not settle or compromise
any material claim, action, suit, litigation, proceeding, arbitration, investigation, audit or controversy relating to Taxes; and
(vi) not change in any material respect any of its methods of reporting income, deductions or accounting for income tax purposes
from those employed in the preparation of its income Tax Return for the tax year ending December 31, 2016, except as may be required
by applicable Laws.

 

    	 	- 27 -	 

     

    

  

		5.3	Transferred Employees

 

Cardiome shall terminate the employment
of all employees of Cardiome (other than the Retained Employees) as of the Effective Time and Correvio shall either offer employment
to all such employees of Cardiome, with effect from and after the Effective Time, on terms that are substantially the same as the
terms applicable to such employees when they were employees of Cardiome or make arrangements for the payment of termination pay
or severance to such employees, such payment obligations to be assumed by and be solely the responsibility of Correvio. From and
after the Effective Date, Correvio shall assume and be responsible for all obligations with respect to the engagement or employment
of all employees (other than Retained Employees) and directors of Cardiome engaged or employed by Cardiome prior to and as of the
Effective Time, including with respect to all notice of termination and severance pay in accordance with applicable Law (including
employment standards) and Contract, if applicable, obligations under Employee Plans and for all unpaid wages, accrued vacation
pay, change of control, and other amounts owing to employees or directors of Cardiome up to and as of the Effective Time (whether
payable before or after the Effective Time), and for all Claims of any nature or kind relating to employment or engagement by Cardiome
up to the Effective Time, including for breach of contract or wrongful dismissal. Cardiome shall retain liability and be responsible
for any amounts payable to all Retained Employees on account of their employment with Cardiome or the termination of that employment
that accrue or become payable after the Effective Date. The obligations contained in this Section 5.3 (the “Employee Obligations”)
shall survive the execution and delivery of this Agreement and the completion of the transactions contemplated by this Agreement,
including the Arrangement.

 

		5.4	Post-Closing Filings

 

Following the Effective Time, the Parties
shall co-operate with each other in respect of any filings to be made with Securities Authorities pursuant to applicable Securities
Laws or Governmental Entities arising in connection with, or resulting from, the Arrangement and other transactions contemplated
by this Agreement. Without limiting the foregoing, if Cipher is obliged to file a business acquisition report (“Business
Acquisition Report”) with Canadian Securities Authorities in respect of the Arrangement, pursuant to National Instrument
51-102 Continuous Disclosure Obligations (“NI 51-102”), Correvio shall provide all such assistance (at
the cost and expense of Cipher) as is reasonably necessary to prepare all such financial statements (including carve-out statements)
as may required to be included in the Business Acquisition Report, within the applicable time period prescribed by NI 51-102.

 

Article
6

CONDITIONS

 

		6.1	Mutual Conditions Precedent

 

The obligations of the Parties to complete
the Arrangement are subject to the fulfillment of each of the following conditions precedent on or before the Effective Time, each
of which may only be waived with the mutual written consent of the Parties without prejudice to their right to rely on any other
of such conditions:

 

		(a)	the Interim Order having been granted on terms consistent with this Agreement and the Interim Order
not having been set aside or modified in a manner unacceptable to any Party, acting reasonably, on appeal or otherwise;

 

		(b)	the Cardiome Arrangement Resolution having been passed by the Cardiome Shareholders in accordance
with the Interim Order;

 

    	 	- 28 -	 

     

    

  

		(c)	the Final Order having been granted on terms consistent with this Agreement and the Final Order
not having been set aside or modified in a manner unacceptable to any Party, acting reasonably, on appeal or otherwise;

 

		(d)	there shall have been no action taken under any applicable Law or by any Governmental Entity which
make it illegal or otherwise directly or indirectly restrains, enjoins or prohibits the completion of the Arrangement;

 

		(e)	the Key Regulatory Approvals shall have been obtained;

 

		(f)	the Key Third Party Consents shall have been obtained;

 

		(g)	the Transfer Agreement and all other documentation reasonably necessary for, or otherwise relating
to, the sale, conveyance, grant, transfer and assignment of the Assigned Assets to Correvio shall be in form and substance acceptable
to each Party, acting reasonably;

 

		(h)	the Assignment and Assumption Agreement and all other documentation reasonably necessary for, or
otherwise relating, the assumption of the Assumed Liabilities by Correvio shall be in form and substance acceptable to each Party,
acting reasonably;

 

		(i)	a release in favour of Cardiome in respect of Liabilities under the CRG Loan, in form and substance
acceptable to the Parties, each acting reasonably, shall have been obtained from the counterparties thereto;

 

		(j)	a release in favour of Cardiome in respect of Liabilities under the Office Lease, in form and substance
acceptable to the Parties, each acting reasonably, shall have been obtained from the counterparties thereto, or, alternatively,
a valid notice of termination of the Office Lease, in form and substance acceptable to the Parties, each acting reasonably, shall
have been delivered to the counterparties thereto;

 

		(k)	a release in favour of Cardiome in respect of Liabilities under the obligations of Cardiome as
a guarantor referenced in Schedule C(p) of the Disclosure Letter, in form and substance acceptable to the Parties, each acting
reasonably, shall have been obtained from the counterparties thereto;

 

		(l)	the Articles of Arrangement to be filed with the Director in accordance with this Agreement shall
be in form and substance acceptable to the Parties, each acting reasonably;

 

		(m)	the distribution of the Consideration Shares pursuant to the Arrangement shall be exempt from the
prospectus and registration requirements of applicable Canadian securities laws either by virtue of exemptive relief from the securities
regulatory authorities of each of the provinces of Canada or by virtue of applicable exemptions under Canadian securities laws
and shall not be subject to resale restrictions under applicable Canadian securities laws (other than as applicable to control
persons or pursuant to section 2.6 of National Instrument 45-102);

 

		(n)	the Consideration Shares and Correvio Replacement Options shall be exempt from the registration
requirements of the U.S. Securities Act pursuant to Section 3(a)(10) thereof based on the Court’s approval of the Arrangement;
provided however, that Cardiome shall not be entitled to rely on the provisions of this Subsection 6.1(l) in failing to complete
the transactions contemplated by this Agreement in the event that Cardiome fails to advise the Court prior to the hearing in respect
of the Final Order, as required by the terms of the foregoing exemptions, that Correvio will rely on the foregoing exemption based
on the Court’s approval of the Arrangement, and

 

		(o)	this Agreement shall not have been terminated in accordance with its terms.

 

    	 	- 29 -	 

     

    

  

		6.2	Additional Conditions Precedent in Favour of Cipher

 

The obligation of Cipher to complete the
Arrangement is subject to the fulfillment of each of the following additional conditions precedent on or before the Effective Time
(each of which is for the exclusive benefit of Cipher and may be only waived by Cipher):

 

		(a)	all covenants of Cardiome and Correvio under this Agreement to be performed on or before the Effective
Time which have not been waived by Cipher shall have been duly performed by Cardiome and Correvio in all material respects and
Cipher shall have received a certificate of each of Cardiome and Correvio addressed to Cipher and dated the Effective Date, signed
on behalf of each of Cardiome and Correvio by two of its senior executive officers (without personal liability), confirming the
same as of the Effective Date;

 

		(b)	the representations and warranties of Cardiome and Correvio set forth in this Agreement shall be
true and correct in all respects, without regard to any materiality or Material Adverse Effect qualifications contained in them
as of the Effective Time, as though made on and as of the Effective Time (except for representations and warranties made as of
a specified date, the accuracy of which shall be determined as of that specified date), except where the failure or failures of
all such representations and warranties to be so true and correct in all respects would not reasonably be expected to have a Material
Adverse Effect, provided however that it is understood and agreed that the representations and warranties set out in paragraphs
(a), (d), (f), (g), (i), (r) and (ee) of Schedule C and (a), (d), (e) and (g) of Schedule D must be true and correct in all respects
when made on and as of the Effective Time, and Cipher shall have received a certificate of each of Cardiome and Correvio addressed
to Cipher and dated the Effective Date, signed on behalf of each of Cardiome and Correvio by two of its senior executive officers
(without personal liability), confirming the same as at the Effective Date;

 

		(c)	the Sublicense Agreement (Trevyent) shall have been entered into with effect prior to or as of
the Effective Time;

 

		(d)	the Sublicense Agreement (Xydalba) shall have been entered into with effect prior to or as of the
Effective Time;

 

		(e)	the Ancillary Agreements (Aggrastat), in form and substance acceptable to Cipher, acting reasonably,
shall have been entered into with effect prior to or as of the Effective Time;

 

		(f)	the Ancillary Agreements (Brinavess), in form and substance acceptable to Cipher, acting reasonably,
shall have been entered into with effect prior to or as of the Effective Time;

 

		(g)	any Retained Assets, to the extent not held by Cardiome as of the date hereof, will be transferred
or assigned to Cardiome, to the satisfaction of Cipher, acting reasonably, with effect prior to or as of the Effective Time;

 

		(h)	there shall not have occurred a Material Adverse Effect that has not been publicly disclosed by
Cardiome prior to the date hereof, and since the date of this Agreement, there shall not have occurred a Material Adverse Effect,
and Cipher shall have received a certificate of Cardiome addressed to Cipher and dated the Effective Date, signed on behalf of
Cardiome by two of its senior executive officers (without personal liability), confirming the same as at the Effective Date;

 

		(i)	there shall be no suit, action or proceeding by any Governmental Entity or any other Person that
has resulted in an imposition of material limitations on the ability of Cipher to acquire or hold, or exercise full rights of ownership
of, any Cardiome Shares; and

 

    	 	- 30 -	 

     

    

  

		(j)	Cipher shall have received all of the Cardiome Voting Agreements executed by the Cardiome Supporting
Shareholders and all covenants of the Cardiome Supporting Shareholders under the Cardiome Voting Agreements to be performed on
or before the Effective Time which have not been waived by Cipher shall have been duly performed by the parties thereto (other
than Cipher) in all material respects.

 

The foregoing conditions will be for the
sole benefit of Cipher and may be waived by it in whole or in part at any time.

 

		6.3	Additional Conditions Precedent in Favour of Cardiome

 

The obligation of Cardiome to complete
the Arrangement is subject to the fulfillment of each of the following additional conditions precedent on or before the Effective
Time (each of which is for the exclusive benefit of Cardiome and may be waived only by Cardiome):

 

		(a)	all covenants of Cipher under this Agreement to be performed on or before the Effective Time which
have not been waived by Cardiome shall have been duly performed by Cipher in all material respects and Cardiome shall have received
a certificate of Cipher addressed to Cardiome and dated the Effective Date, signed on behalf of Cipher by two of its senior executive
officers (without personal liability), confirming the same as of the Effective Date;

 

		(b)	the representations and warranties of Cipher set forth in this Agreement shall be true and correct
in all respects, without regard to any materiality or material adverse effect qualifications contained in them as of the Effective
Time, as though made on and as of the Effective Time (except for representations and warranties made as of a specified date, the
accuracy of which shall be determined as of that specified date), except where the failure or failures of all such representations
and warranties to be so true and correct in all respects would not reasonably be expected to have a material adverse effect, and
Cardiome shall have received a certificate of Cipher addressed to Cardiome and dated the Effective Date, signed on behalf of Cipher
by two senior executive officers of Cipher (without personal liability), confirming the same as at the Effective Date;

 

		(c)	Cardiome shall have received satisfactory evidence of the conditional approval for listing of the
Consideration Shares from the TSX and Nasdaq, subject only to customary listing conditions of the TSX and Nasdaq;

 

		(d)	Cipher shall have made arrangements satisfactory to Correvio, acting reasonably, to pay the aggregate
Share Purchase Consideration (less the Holdback Amount) to Correvio, in immediately available funds, on the Effective Date pursuant
to the Arrangement; and

 

		(e)	holders of no more than five percent (5%) of the Cardiome Shares shall have exercised, and at the
date of the Cardiome Meeting, have not withdrawn, Dissent Rights.

 

The foregoing conditions will be for the
sole benefit of Cardiome and may be waived by it in whole or in part at any time.

 

		6.4	Notice and Cure Provisions

 

		(a)	Each Party will give prompt notice to the other of the occurrence, or failure to occur, at any
time from the date hereof until the earlier to occur of the termination of this Agreement and the Effective Time, of any event
or state of facts which occurrence or failure would, or would be likely to:

 

		(i)	cause any of the representations or warranties of any Party contained herein to be untrue or inaccurate
in any material respect on the date hereof or at the Effective Time; or

 

    	 	- 31 -	 

     

    

  

		(ii)	result in the failure to comply with or satisfy any covenant, condition or agreement to be complied
with or satisfied by any Party hereunder prior to the Effective Time.

 

		(b)	Cipher may not exercise its rights to terminate this Agreement pursuant to Subsection 8.2(a)(iii)C
and Cardiome may not exercise its right to terminate this Agreement pursuant to Subsection 8.2(a)(iv)A unless the Party intending
to rely thereon has delivered a written notice to the other Party specifying in reasonable detail all breaches of covenants, representations
and warranties or other matters which the Party delivering such notice is asserting as the basis for the non-fulfilment or the
applicable condition or termination right, as the case may be. If any such notice is delivered, provided that a Party is proceeding
diligently to cure such matter and such matter is capable of being cured, no Party may terminate this Agreement until the expiration
of a period of three (3) Business Days from such notice, and then only if such matter has not been cured by such date. If such
notice has been delivered prior to the making of the application for the Final Order, such application and such filing shall be
postponed until the expiry of such period. For greater certainty, in the event that such matter is cured within the time period
referred to herein without a Material Adverse Effect, this Agreement may not be terminated as a result of the cured breach.

 

		6.5	Satisfaction of Conditions

 

Other than as set forth in this section,
the conditions precedent set out in Section 6.1, Section 6.2 and Section 6.3 shall be conclusively deemed to have
been satisfied, waived or released when the Certificate of Arrangement is issued by the Director following filing of the Articles
of Arrangement with the consent of the Parties in accordance with the terms of this Agreement.

 

Article
7

ADDITIONAL COVENANTS

 

		7.1	Covenant Regarding Non-Solicitation

 

Cardiome shall, and shall
direct and cause its Representatives to, immediately cease and cause to be terminated any solicitation, encouragement, activity,
discussion or negotiation with any parties that may be ongoing with respect to an Acquisition Proposal whether or not initiated
by Cardiome, and Cardiome shall request the return of information regarding Cardiome and its subsidiaries previously provided to
such parties and shall request the destruction of all materials including or incorporating any confidential information regarding
Cardiome and its subsidiaries. Cardiome agrees not to release any third party from any confidentiality agreement relating to a
potential Acquisition Proposal to which such third party is a party. Cardiome further agrees not to release any third party from
any standstill or similar agreement or obligation to which such third party is a party or by which such third party is bound (it
being understood and agreed that the automatic termination of a standstill provision due to the announcement of the Arrangement
or the entry into this Agreement shall not be a violation of this Section 7.1).

 

		7.2	Covenant Regarding Acquisition Proposal

 

		(a)	Subject to Section 7.3 or unless expressly permitted pursuant to this Section 7.2, Cardiome agrees
that it shall not, and shall not authorize or permit any of its Representatives, directly or indirectly, to:

 

		(i)	make, solicit, initiate, entertain, encourage, promote or facilitate, (including by way of furnishing
information, permitting any visit to its facilities or properties or entering into any form of agreement, arrangement or understanding)
any inquiries or the making of any proposals regarding an Acquisition Proposal or that may be reasonably be expected to lead to
an Acquisition Proposal;

 

    	 	- 32 -	 

     

    

  

		(ii)	participate, directly or indirectly, in any discussions or negotiations regarding, or furnish to
any Person any information or otherwise co-operate with, respond to, assist or participate in any Acquisition Proposal or potential
Acquisition Proposal, provided however that Cardiome may communicate and participate in discussions with a third party for the
purpose of (A) clarifying the terms of any proposal in order to determine if it may reasonably be expected to lead to a Superior
Proposal; and (B) advising such third party that an Acquisition Proposal does not constitute a Superior Proposal and cannot reasonably
be expected to result in a Superior Proposal;

 

		(iii)	remain neutral with respect to, or agree to, approve or recommend any, Acquisition Proposal or
potential Acquisition Proposal (it being understood that publicly taking no position or a neutral position with respect to an Acquisition
Proposal until five (5) Business Days following formal announcement of such Acquisition Proposal shall not be considered to be
a violation of this Subsection 7.2(a)(iii);

 

		(iv)	withdraw, modify, qualify or change in a manner adverse to Cipher, or publicly propose to or publicly
state that it intends to withdraw, modify, qualify or change in a manner adverse to Cipher, the approval, recommendation or declaration
of advisability of its Board or any committee thereof of this Agreement or the Arrangement (a “Change in Recommendation”)
(it being understood that failing to affirm the approval or recommendation of its Board of this Agreement or the Arrangement within
five (5) Business Days after an Acquisition Proposal has been publicly announced shall be considered to be an adverse modification);

 

		(v)	enter into any agreement, arrangement or understanding related to any Acquisition Proposal or requiring
it to abandon, terminate or fail to consummate the Arrangement or providing for the payment of any break, termination or other
fees or expenses to any Person in the event that the Arrangement is completed or in the event that it completes any other transaction
with Cipher or with an affiliate of Cipher that is agreed to prior to any termination of this Agreement; or

 

		(vi)	make any public announcement or take any other action inconsistent with the recommendation of its
Board to approve the Arrangement.

 

		(b)	Notwithstanding anything contained in this Section 7.2 and any other provisions of this Agreement:

 

		(i)	the Cardiome Board may consider, participate in any discussions or negotiations with and provide
information to, any Person who has delivered a written Acquisition Proposal which was not solicited or encouraged by Cardiome after
the date of this Agreement and did not otherwise result from a breach of this Section 7.2 and that the Cardiome Board determines
in good faith after consultation with its financial advisor and outside legal counsel that such Acquisition Proposal may reasonably
be expected to lead to a Superior Proposal; provided, however, that prior to taking any such action the Cardiome Board determines
in good faith, after consultation with outside counsel that it is necessary to take such action in order to discharge properly
its fiduciary duties, and if Cardiome provides confidential non-public information to such Person, Cardiome obtains a confidentiality
and standstill agreement from the Person making such Acquisition Proposal that is substantively the same as the Confidentiality
Agreement, and otherwise on terms no more favourable to such Person than the Confidentiality Agreement, including a standstill
provision at least as stringent as contained in the Confidentiality Agreement (provided that, such confidentiality agreement shall
not preclude such Person from making a Superior Proposal and such agreement shall not restrict or prohibit Cardiome from disclosing
to Cipher any details concerning the Acquisition Proposal or any Superior Proposal made by such Person). Cardiome shall be permitted
to provide such Person with access to information regarding Cardiome and its subsidiaries; provided that Cardiome sends a copy
of any such confidentiality agreement to Cipher promptly upon its execution and Cipher is provided with a list of the information
provided to such Person and is promptly provided with access to the same information to which such Person was provided.

 

    	 	- 33 -	 

     

    

  

		(ii)	Nothing in this Agreement shall prohibit the Cardiome Board from making a Change in Recommendation
or from making any disclosure to any of its securityholders prior to the Effective Time if, in the good faith judgment of such
Board, after consultation with outside legal counsel, failure to take such action or make such disclosure would be inconsistent
with the exercise of its fiduciary duties or such action or disclosure is otherwise required under applicable Law (including by
responding to an Acquisition Proposal under a directors’ circular or otherwise as required under applicable Securities Laws);
provided that, no Change in Recommendation may be made in relation to an Acquisition Proposal unless Cardiome complies with Section
7.3.

 

		(c)	Cardiome shall promptly (and in any event within 24 hours) notify Cipher, at first orally and then
in writing, of any proposals, offers or written inquiries relating to or constituting an Acquisition Proposal or any request for
non-public information relating to Cardiome or any of its subsidiaries. Such notice shall include a description of the terms and
conditions of any proposal, inquiry or offer, the identity of the Person making such proposal, inquiry or offer and provide such
other details of the proposal, inquiry or offer as Cipher may reasonably request. Cardiome shall keep Cipher fully informed on
a prompt basis of the status, including any change to the material terms, of any such proposal, inquiry or offer.

 

		(d)	Cardiome shall ensure that its officers, directors and any financial advisors or other advisors
or Representatives retained by it are aware of the provisions of this Section 7.2, and it shall be responsible for any breach of
this Section 7.2 by such officers, directors, financial advisors or other advisors or Representatives.

 

		7.3	Right to Accept a Superior Proposal

 

		(a)	If Cardiome has complied with Section 7.2 of this Agreement, Cardiome may accept, approve, recommend
or enter into any agreement, understanding or arrangement in respect of a Superior Proposal (other than a confidentiality agreement,
the execution of which shall not be subject to the conditions of this Section 7.3) received prior to the date of approval of the
Arrangement and the transactions contemplated by this Agreement by Cardiome’s Shareholders and terminate this Agreement if,
and only if:

 

		(i)	Cardiome has provided Cipher with a copy of the Superior Proposal document;

 

		(ii)	Cardiome has provided the other Party with the information regarding such Superior Proposal required
under Subsection 7.2(c);

 

		(iii)	the Cardiome Board has determined in good faith, after consultation with outside legal counsel
and its financial advisors, that it is necessary in order for the Cardiome Board to discharge properly its fiduciary duties to
withdraw or modify its approval or recommendation of this Agreement and to approve or recommend such Superior Proposal; and

 

		(iv)	five (5) Business Days (the “Superior Proposal Notice Period”) shall have elapsed
from the later of (A) the date Cipher received written notice (a "Superior Proposal Notice") advising it that
the Cardiome has resolved to accept, approve, recommend or enter into an agreement in respect of such Superior Proposal, subject
only to this Section 7.3, and (B) the date that Cipher received a copy of such Superior Proposal document.

 

    	 	- 34 -	 

     

    

  

In the event
that Cardiome provides Cipher with a Superior Proposal Notice on a date that is less than seven (7) Business Days prior to the
scheduled date of the Cardiome Meeting, Cardiome shall, at the request of Cipher, adjourn such meeting to a date that is not less
than five (5) Business Days and not more than fifteen (15) days after the date of the Superior Proposal Notice. If
the Cardiome Circular has been sent to Cardiome Shareholders prior to the expiry of the Superior Proposal Notice Period and, during
such period, Cipher requests in writing that the Cardiome Meeting proceed, unless otherwise ordered by a court, Cardiome shall
continue to take all reasonable steps necessary to hold the Cardiome Meeting and to cause the Arrangement and the transactions
contemplated by this Agreement to be voted on at such meeting.

 

		(b)	During the Superior Proposal Notice Period, Cardiome agrees that Cipher shall have the right, but
not the obligation, to offer in writing to amend the terms of this Agreement. The Cardiome will review any written proposal to
amend the terms of this Agreement in good faith in order to determine, in its discretion in the exercise of its fiduciary duties,
whether any such amended proposal would, upon acceptance by Cardiome, result in such Superior Proposal ceasing to be a Superior
Proposal. If the Cardiome Board so determines, Cardiome will enter into an amended agreement with Cipher reflecting the amended
proposal.

 

		(c)	Upon the expiry of the Superior Proposal Notice Period, if: (i) Cipher has determined not to offer
in writing to amend the terms of this Agreement pursuant to Subsection 7.3(b); or (ii) the Cardiome Board has determined that any
offer by Cipher in writing to amend the terms of this Agreement (pursuant to Subsection 7.3(b)) would, upon acceptance by Cardiome,
not result in any Superior Proposal ceasing to be a Superior Proposal, then Cardiome may accept, approve, recommend or enter into
an agreement, understanding or arrangement in respect of such Superior Proposal, subject to compliance with the Termination Payment
provisions in Section 8.4 of this Agreement.

 

		(d)	Cardiome also acknowledges and agrees that each successive material modification of any Acquisition
Proposal shall constitute a new Acquisition Proposal for purposes of the requirement under Subsection 7.3(a)(iv) and will initiate
a new and additional Superior Proposal Notice Period.

 

		7.4	Access to Information; Confidentiality; Transition

 

From the date hereof until the earlier
of the Effective Time and the termination of this Agreement pursuant to its terms, subject to compliance with applicable Law and
the terms of any existing Contracts: (a) Cardiome shall, and shall cause its Representatives to, afford to Cipher and to Representatives
of Cipher full access during normal business hours upon reasonable notice, to all properties, information and records relating
to Cipher, including but not limited to, all related facilities, books, contracts, financial statements, forecasts, financial projections
(to the extent permitted by confidentiality agreements in force on the date hereof), studies, records, operating Permits and any
other documentation (whether in writing or stored in computerized, electronic, disk, tape, microfilm or any other form) or materials
of any kind or nature whatsoever, and Cipher and Cardiome acknowledge and agree that information furnished pursuant to this Section
7.4 shall be subject to the terms and conditions of the Confidentiality Agreement; (b), Cardiome shall promptly notify Cipher of
any significant developments or material changes relating the Retained Assets and the Retained Liabilities, promptly after becoming
aware of any such development or change, and (c) each of Cipher and Correvio shall, and shall cause their subsidiaries and their
respective Representatives to, as the case may be, work cooperatively and in good faith to ensure an orderly transition following
the Effective Time, including with respect to transitional planning, transitional services, and the retention of personnel (and
any related arrangements thereto).

 

    	 	- 35 -	 

     

    

  

		7.5	Insurance and Indemnification

 

		(a)	Prior to the Effective Date, Cardiome may purchase customary “run-off” policies of
directors’ and officers’ liability insurance providing protection no less favourable in the aggregate to the protection
provided by the policies maintained by Cardiome which are in effect immediately prior to the Effective Date and providing protection
in respect of claims arising from facts or events which occurred on or prior to the Effective Date and Cipher will, or will cause
Cardiome to, maintain such tail policies in effect without any reduction in scope or coverage for six (6) years from the Effective
Date; provided that neither Cipher nor Cardiome shall be required to expend any funds in respect of this Section 7.5 following
the Effective Time (and Correvio shall be solely responsible for maintaining such policies, including the payment of all costs
and expenses associated therewith after the Effective Time).

 

		(b)	Following the Effective Time, Cardiome shall not be obligated to honour any rights to indemnification
or exculpation now existing in favour of present and former officers or directors of Cardiome and any such Liabilities shall constitute
Assumed Liabilities.

 

		7.6	ROFR on New Canadian Products

 

		(a)	For the period commencing on the Effective Date and expiring on date that is five (5) years following
the Effective Date, if Correvio or any of its affiliates receives from any Person a bona fide offer to license all or part
of any pharmaceutical product that Correvio or its affiliates do not have any Canadian rights to on the date of this Agreement
(each, a “New Canadian Product”), which Correvio is willing to accept (a “Transfer Offer”),
whether in whole or in part (the “Offered Interest”), Correvio shall give written notice to Cipher of the
Transfer Offer including all terms and of its intention to accept the Transfer Offer to Cipher.

 

		(b)	Within ninety (90) days after receipt by Cipher of the written notice of a Transfer Offer under
Subsection 7.6(a) (the “Option Period”), Cipher (or, for the purposes of this Section 7.6, any affiliate
of Cipher) shall be entitled to sublicense the Offered Interest on terms to be negotiated by and between Correvio and Cipher (the “Right
of First Refusal”). Cipher shall, within the Option Period, notify Correvio of its desire (the “Notice
of Acceptance”) to sublicense the Offered Interest. If Cipher fails to exercise its Right of First Refusal within the
Option Period, Cipher will be deemed to have definitively waived such Right of First Refusal.

 

		(c)	If Cipher elects to exercise its Right of First Refusal, the parties shall use commercially reasonable
efforts to complete such sublicense transaction within 60 days following the delivery of the Notice of Acceptance (or such
longer period as may reasonably be required to comply with all applicable statutory and regulatory requirements or to obtain all
required consents or as may be agreed to by Correvio and Cipher).

 

		(d)	If Cipher elects not to exercise, or is deemed to have waived, its Right of First Refusal, Correvio
shall be entitled to thereafter sublicense the Offered Interest offered pursuant to the Transfer Offer to any Person or to commercialize
the New Canadian Product itself.

 

		(e)	Notwithstanding the foregoing (or anything to the contrary in this Section 7.6), upon a change
of control of either Cipher or Correvio (being the acquisition (directly or indirectly) by any Person or group of Persons acting
jointly or in concert, of greater than 50% of the voting securities of either Cipher or Correvio) each of Cipher and Correvio shall
have the right, exercisable at any time within thirty (30) days following the date of such change of control, to terminate the
obligations of Cipher and Correvio under this Section 7.6.

 

		7.7	Product Introduction Fee

 

		(a)	For the period commencing on the Effective Date and expiring on December 31, 2019, if Correvio
or any of its affiliates introduces Cipher to any New Canadian Product and Cipher enters into a binding agreement to license all
or part of such New Canadian Product as a result of such an introduction, Cipher shall pay $500,000 to Correvio by wire transfer
of immediately available funds on the date that such binding agreement is entered into.

 

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Article
8

TERM, TERMINATION, AMENDMENT AND WAIVER

 

		8.1	Term

 

This Agreement shall be effective from
the date hereof until the earlier of the Effective Time and the termination of this Agreement in accordance with its terms.

 

		8.2	Termination

 

		(a)	This Agreement may be terminated:

 

		(i)	at any time prior to the Effective Time by mutual written agreement of Cardiome and Cipher;

 

		(ii)	by either Cardiome or Cipher, if:

 

		A.	the Effective Time shall not have occurred on or before the Outside Date, except that the right
to terminate this Agreement under this Subsection 8.2(a)(ii)A shall not be available to any Party whose failure to fulfil
any of its obligations or breach any of its covenants, representations and warranties under this Agreement has been the cause of,
or resulted in, the failure of the Effective Time to occur by the Outside Date;

 

		B.	any Governmental Entity shall have issued an order, decree or ruling or there shall be enacted
or made any applicable Law that makes consummation of the Arrangement illegal or otherwise prohibited or otherwise restrains, enjoins
or prohibits Cardiome or Cipher from consummating the Arrangement (unless such order, decree, ruling or applicable Law has been
withdraw, reversed or otherwise made inapplicable) and such order, decree, ruling or applicable Law or enjoinment shall have become
final and non-appealable; or

 

		C.	Cardiome Shareholder Approval shall not have been obtained at the Cardiome Meeting in accordance
with applicable Laws and the Interim Order.

 

		(iii)	by Cipher, if:

 

		A.	prior to the Effective Time (1) the Cardiome Board shall have made a Change in Recommendation,
(2) the Cardiome Board shall have approved or recommended an Acquisition Proposal, or (3) Cardiome shall have entered into a definitive
agreement with respect to a Superior Proposal;

 

		B.	the Cardiome Meeting has not occurred on or before May 23, 2018 or such later date as may be agreed
by Cardiome and Cipher in writing, provided that the right to terminate this Agreement pursuant to this Section 8.2(a)(iii)B shall
not be available to Cipher if the failure by Cipher to fulfil any obligation hereunder is the cause of, or results in, the failure
of the Cardiome Meeting to occur on or before such date; or

 

		C.	subject to Section 6.4, Cardiome or Correvio is in default of a covenant or obligation hereunder
such that the condition contained in Subsection 6.2(a) would be incapable of satisfaction, or any representation or warranty of
Cardiome or Correvio under this Agreement is untrue or incorrect or shall have become untrue or incorrect such that the condition
contained in Subsection 6.2(b) would be incapable of satisfaction; provided that Cipher is not then in breach of this Agreement
so as to cause any of the conditions set forth in Subsection 6.2(a) or Subsection 6.2(b) not to be satisfied.

 

    	 	- 37 -	 

     

    

  

		(iv)	by Cardiome, if:

 

		A.	subject to Section 6.4, Cipher is in default of a covenant or obligation hereunder such that the
condition contained in Subsection 6.3(a) would be incapable of satisfaction, or any representation or warranty of Cipher under
this Agreement is untrue or incorrect or shall have become untrue or incorrect such that the condition contained in Subsection
6.3(b) would be incapable of satisfaction; provided that Cardiome is not then in breach of this Agreement so as to cause any of
the conditions set forth in Subsection 6.3(a) or Subsection 6.3(b) not to be satisfied; or

 

		B.	at any time prior to receipt of the Cardiome Shareholder Approval, Cardiome wishes to enter into
a definitive agreement with respect to a Superior Proposal (other than a confidentiality and standstill agreement permitted by
Section 7.2), subject to, and in compliance with, Section 7.3.

 

		(b)	The Party desiring to terminate this Agreement pursuant to this Section 8.2 (other than pursuant
to Subsection 8.2(a)(i)) shall give notice of such termination to the other Parties, specifying in reasonable detail the basis
for such Party’s exercise of its termination right.

 

		(c)	If this Agreement is terminated pursuant to this Section 8.2, this Agreement shall become
void and be of no further force or effect without Liability of any Party (or any shareholder, director, officer, employee, agent,
consultant or representative of such Party) to any other Party hereto, except that the provisions of Section 7.5, this Subsection
8.2(c) and Sections 8.3, 8.4, 8.5, 10.1, 10.2, 10.3, 10.4, 10.6, 10.7 and 10.8 and all related definitions set forth in Section 1.1
and the provisions of the Confidentiality Agreement shall survive any termination of this Agreement; provided further that neither
the termination of this Agreement nor anything contained in this Section 8.2 shall relieve a Party from any Liability arising prior
to such termination.

 

		8.3	Expenses

 

Except as otherwise provided
herein, the Parties agree that all costs and expenses of the Parties relating to the Arrangement and the transactions contemplated
in this Agreement, including legal fees, accounting fees, financial advisory fees, strategic advisory fees, regulatory filing fees,
stock exchange fees, all disbursements of advisors and printing and mailing costs, shall be paid by the Party incurring such expenses.
For greater certainty, any such costs or expenses of Cardiome shall not form part of the Retained Liabilities.

 

		8.4	Termination Payments

 

		(a)	A Termination Payment shall be payable by Cardiome to Cipher in the event that the Agreement is
terminated in the following circumstances (each being a “Termination Payment Event”):

 

		(i)	the termination of this Agreement pursuant to Subsection 8.2(a)(iii)A, 8.2(a)(iii)B or 8.2(a)(iii)C,
in which case the Termination Fee shall be paid to Cipher as soon as practicable and in any event within two (2) Business Days
of the day on which this Agreement is terminated;

 

		(ii)	the termination of this Arrangement Agreement pursuant to Subsection 8.2(a)(iv)B, in which case
the Termination Fee shall be paid to Cipher prior to or concurrently with termination of this Agreement; or

 

    	 	- 38 -	 

     

    

  

		(iii)	the termination of this Agreement pursuant to Subsection 8.2(a)(ii)A or 8.2(a)(ii)C if, in either
case, prior to the earlier of the termination of this Agreement or the holding of the Cardiome Meeting, (A) a bona fide Acquisition
Proposal, or the intention to make an Acquisition Proposal, with respect to Cardiome shall have been made to Cardiome or publicly
announced by any Person (other than Cipher or any of its affiliates) and not withdrawn prior to the Cardiome Meeting, and (B) within
nine (9) months after the date of termination of this Agreement or the holding of the Cardiome Meeting either (x) such Acquisition
Proposal has been accepted, recommended or approved by the Cardiome Board and has not expired, been withdrawn or been publicly
abandoned, or (y) any Person or company acquires, directly or indirectly, more than 50% of the issued and outstanding Cardiome
Shares or more than 50% of the consolidated assets of Cardiome under such Acquisition Proposal, in which case the Termination Fee
shall be paid to Cipher on the date the Cardiome Shares or assets of Cardiome are acquired as described in paragraph (y) above.
For the purpose of this Subsection 8.4(b)(iii), the term "Acquisition Proposal" shall have the meaning ascribed to such
term in Section 1.1, except that references to "20%" shall be deemed to be "50%".

 

		(b)	Cipher hereby acknowledges that the Termination Payment to which it may become entitled to is a
payment of liquidated damages which is a genuine pre-estimate of the damages which such it will suffer or incur as a result of
the event giving rise to such damages and the resultant non-completion of the Arrangement and the transactions contemplated by
this Agreement and is not a penalty. Cipher hereby irrevocably waives any right it may have to raise as a defence that any such
liquidated damages are excessive or punitive. Upon receipt by Cipher of any Termination Payment, Cipher shall have no further Claim
against Cardiome or Correvio at Law or in equity or otherwise (including injunctive relief to restrain any breach or threatened
breach by Cardiome of any of its obligations hereunder or otherwise to obtain specific performance).

 

		8.5	Termination Payment to Cardiome

 

		(a)	In the event that Cardiome terminates this Agreement pursuant to Subsection 8.2(a)(iv)A of this
Agreement, then Cipher shall pay to Cardiome $2,500,000 (the “Cardiome Termination Fee”) within two (2) Business
Days of the day on which this Agreement is terminated.

 

		(b)	Cardiome hereby acknowledges that the Cipher Termination Payment to which it may become entitled
to is a payment of liquidated damages which is a genuine pre-estimate of the damages which such it will suffer or incur as a result
of the event giving rise to such damages and the resultant non-completion of the Arrangement and the transactions contemplated
by this Agreement and is not a penalty. Cardiome hereby irrevocably waives any right it may have to raise as a defence that any
such liquidated damages are excessive or punitive. Upon receipt by Cardiome of any Cipher Termination Payment, Cardiome shall have
no further Claim against Cipher at Law or in equity or otherwise (including injunctive relief to restrain any breach or threatened
breach by Cipher of any of its obligations hereunder or otherwise to obtain specific performance).

 

		8.6	Amendment

 

Subject to the provisions of the Interim
Order and Final Order, the Plan of Arrangement and applicable Laws, this Agreement and the Plan of Arrangement may, at any time
and from time to time prior to the Effective Time, be amended only by mutual written agreement of Cipher and Cardiome, without
further notice to or authorization on the part of the Cardiome Shareholders, and any such amendment may without limitation:

 

		(a)	change the time for performance of any of the obligations or acts of the Parties;

 

		(b)	waive any inaccuracies or modify any representation or warranty contained herein or in any document
delivered pursuant hereto;

 

    	 	- 39 -	 

     

    

  

		(c)	waive compliance with or modify any of the covenants herein contained and waive or modify performance
of any of the obligations of the Parties; and

 

		(d)	waive compliance with or modify any mutual conditions precedent herein contained.

 

		8.7	Waiver

 

Any Party may (a) extend the time for the
performance of any of the obligations or acts of the other Party, (b) waive compliance, except as provided herein, with any of
the other Party’s agreements or the fulfilment of any conditions to its own obligations contained herein, or (c) waive inaccuracies
in any of the other Party’s representations or warranties contained herein or in any document delivered by the other Party,
in each case only to the extent such obligations, agreements and conditions are intended for its benefit. No extension or waiver
shall be valid unless set forth in an instrument in writing signed on behalf of such Party and, unless otherwise provided in the
written waiver, will be limited to the specific breach or condition waived and shall not extent to any other matter or occurrence.
No failure or delay in exercising any right, power or privilege under this Agreement will operate as a waiver thereof, nor will
any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege
under this Agreement.

 

Article
9

INDEMNITY AND WARRANTY

 

		9.1	Correvio Indemnity

 

		(a)	From and after the Effective Time, Correvio shall indemnify and save harmless Cipher and its subsidiaries
and Cardiome and their respective directors, officers, employees and agents (the “Cipher Indemnified Parties”)
in respect of any Claim, including relating to Taxes, and from and against any and all Losses arising in connection with or relating
in any manner to:

 

		(i)	the Retained Assets or Retained Liabilities, in respect of the period prior to the Effective Time;

 

		(ii)	the Assigned Assets;

 

		(iii)	the Assumed Liabilities;

 

		(iv)	the Employee Obligations;

 

		(v)	all Contracts relating to the Assigned Assets, Assigned Liabilities or Employee Obligations;

 

		(vi)	the business or operations of Cardiome or its subsidiaries in respect of the period prior to the
Effective Time, including any product liability claims in respect of products developed or commercialized by Cardiome or its subsidiaries;

 

		(vii)	the carrying out or implementation of the Pre-Closing Reorganization or the transactions contemplated
by the Arrangement;

 

		(viii)	the exercise of any Dissent Rights by Dissenting Shareholders; or

 

		(ix)	all Taxes payable by Cardiome with respect to all periods ending on or before the Effective Date
(including those arising as a result of the carrying out or implementation of the transactions contemplated by this Agreement,
including the Arrangement).

 

    	 	- 40 -	 

     

    

  

		(b)	The obligations of Correvio under Subsection 9.1(a) shall survive the execution and delivery of
this Agreement and the completion of the transactions contemplated by this Agreement, including the Arrangement, provided that:

 

		(i)	if a Claim or Loss relates to Subsection 9.1(a)(i), the obligations of Correvio shall survive for
a period of two (2) years following the Effective Date and, provided further that: (A) no Losses may be recovered from Correvio
pursuant to Subsection 9(a)(i) unless and until the accumulated aggregate amount of Losses of Cipher Indemnified Parties arising
pursuant thereto exceeds $200,000, in which event the accumulated aggregate amount of all such Losses may be recovered; and (B)
Correvio shall not be liable for any Losses pursuant to Subsection 9(a)(i) in excess of $3,000,000;

 

		(ii)	if a Claim or Loss relates to any of Subsection 9.1(a)(ii) to Subsection 9.1(a)(viii), inclusive,
the obligations of Correvio shall survive until expiration of any limitation periods imposed by Law applicable to the subject matter
of the Claim or Loss; or

 

		(iii)	if a Claim or Loss relates to Subsection 9.1(a)(ix), the obligations of Correvio shall survive
until one year after the expiration of any limitation periods imposed by Law applicable to the relevant taxation year (giving effect
to any waiver, mitigation or extension thereof).

 

		(c)	The rights to indemnification of the Cipher Indemnified Parties under Section 9.1(a) shall apply
notwithstanding any investigation, inspection or inquiries made by or on behalf of any of the Cipher Indemnified Parties.

 

		9.2	Cipher Indemnity

 

		(a)	From and after the Effective Time, Cipher shall indemnify and save harmless Correvio and its subsidiaries
and their respective directors, officers, employees and agents (the “Correvio Indemnified Parties”) in respect
of any Claim, and from and against any and all Losses, arising in connection with or relating in any manner to:

 

		(i)	the Retained Assets, in respect of the period following the Effective Time; or

 

		(ii)	the Retained Liabilities, in respect of the period following the Effective Time.

 

		(b)	The obligations of Cipher in under Subsection 9.2(a) shall survive the execution and delivery of
this Agreement and the completion of the transactions contemplated by this Agreement, including the Arrangement, until expiration
of any limitation periods imposed by Law applicable to the subject matter of the Claim or Loss.

 

		(c)	The rights to indemnification of the Correvio Indemnified Parties under Section 9.2(a) shall apply
notwithstanding any investigation, inspection or inquiries made by or on behalf of any of the Correvio Indemnified Parties.

 

		9.3	Taxable Gain Warranty

 

		(a)	Correvio warrants to Cipher that the aggregate amount of (i) income in excess of losses, and (ii)
taxable capital gains in excess of allowable capital losses, in all cases realized by Cardiome as a result of the transactions
contemplated in this Agreement, including the Arrangement, will not exceed $1,000,000.

 

		(b)	The warranty of Correvio under Subsection 9.3(a) shall survive the execution and delivery of this
Agreement and the completion of the transactions contemplated by this Agreement, including the Arrangement, until one year after
the expiration of any limitation periods imposed by Law applicable to the relevant taxation year (giving effect to any waiver,
mitigation or extension thereof).

 

    	 	- 41 -	 

     

    

  

		9.4	Claim Notice

 

If an Indemnified Party becomes aware of
any act, omission or state of facts that may give rise to Losses in respect of which a right of indemnification is provided or
a claim for breach of warranty is permitted for under this Article 9, a Party entitled to and seeking indemnification pursuant
to the terms of this Agreement (the “Indemnified Party”) shall promptly give written notice (a “Claim
Notice”) to the Party responsible for indemnifying the Indemnified Party (the “Indemnifying Party”)
of any claim for indemnification pursuant to Sections 9.1 or 9.2 (an “Indemnification Claim”, which term shall
include more than one Indemnification Claim) or a claim for damages for breach of warranty pursuant to Section 9.3 (a “Damages
Claim”). The Claim Notice shall specify whether Indemnification Claim or Damages Claim arises as a result of a claim
by a Person against the Indemnified Party (a “Third Party Claim”) or whether the Indemnification Claim arises
as a result of a claim directly by the Indemnified Party against the Indemnifying Party (a “Direct Claim”),
and shall also specify with reasonable particularity (to the extent that the information is available):

 

		(a)	the factual basis for the Direct Claim or Third Party Claim, as the case may be; and

 

		(b)	the amount of the potential Damages Claim (“Damages”) or Losses arising from
the Indemnification Claim, if known.

 

If, through the fault of the Indemnified
Party, the Indemnifying Party does not receive a Claim Notice in time effectively to contest the determination of any Liability
susceptible of being contested or to assert a right to recover an amount under applicable insurance coverage, then the liability
of the Indemnifying Party to the Indemnified Party under this Article 9 shall be reduced to the extent that Losses or Damages are
incurred by the Indemnifying Party resulting from the Indemnified Party’s failure to give the Claim Notice on a timely basis.

 

		9.5	Agency for Non-Parties

 

Each Party hereby accepts
each indemnity in favour of each of its Indemnified Parties who are not Parties as agent and trustee of that Indemnified Party.
Each Party may enforce an indemnity in favour of any of that Party’s Indemnified Parties on behalf of each such Indemnified
Party.

 

		9.6	Procedure for Indemnification – Direct Claims

 

In the case of a Direct
Claim, the Indemnifying Party shall have 45 days from receipt of a Claim Notice to make such investigation as the Indemnifying
Party considers necessary or desirable. For the purpose of such investigation, the Indemnified Party shall make available to the
Indemnifying Party the information relied upon by the Indemnified Party to substantiate its Indemnification Claim, together with
all such other information as the Indemnifying Party may reasonably request. If the Indemnified Party and the Indemnifying Party
agree at or prior to the expiration of such 45 day period (or any mutually agreed upon extension thereof) to the validity and amount
of such Indemnification Claim, the Indemnifying Party shall immediately pay to the Indemnified Party the full agreed upon amount
of the Indemnification Claim. If the Indemnified Party and the Indemnifying Party fail to agree at or before the expiration of
such 45 day period (or any mutually agreed upon extension thereof), the Indemnified Party shall be free to pursue all remedies
as may be available to it.

 

		9.7	Procedure for Indemnification – Third Party Claims

 

		(a)	In the case of a Third Party Claim, the Indemnifying Party shall have the right, at its expense,
to control the negotiation, settlement or defence of the Third Party Claim, through counsel of its choice (such counsel to be acceptable
to the Indemnified Party, acting reasonably); provided, however, that notwithstanding the foregoing, the Indemnifying Party shall
not be permitted to assume control of the negotiation, settlement or defence of the Third Party Claim if such Third Party Claim
involves criminal liability.

 

    	 	- 42 -	 

     

    

  

		(b)	If the Indemnifying Party elects to assume control as contemplated in Subsection 9.9(a), the
Indemnifying Party shall reimburse the Indemnified Party for all of the Indemnified Party’s out-of-pocket expenses incurred
as a result of such assumption. The Indemnified Party shall continue to have the right to participate in the negotiation, settlement
or defence of such Third Party Claim and to retain counsel to act on its behalf, provided that the fees and disbursements of such
counsel shall be paid by the Indemnified Party unless the Indemnifying Party consents to the retention of such counsel at its expense
or unless the named parties to any action or proceeding include both the Indemnifying Party and the Indemnified Party and the representation
of both the Indemnifying Party and the Indemnified Party by the same counsel would be inappropriate due to the actual or potential
differing interests between them (such as the availability of different defences), in which case the fees and disbursements of
such counsel of the Indemnified Party shall be paid by the Indemnifying Party. The Indemnified Party shall co-operate with the
Indemnifying Party so as to permit the Indemnifying Party to conduct and control such negotiation, settlement and defence and for
this purpose shall preserve all relevant documents in relation to the Third Party Claim, allow the Indemnifying Party access on
reasonable notice to inspect and take copies of all such documents and require its personnel to provide such statements as the
Indemnifying Party may reasonably require and to attend and give evidence at any trial or hearing in respect of the Third Party
Claim. If the Indemnifying Party, having elected to assume such control, thereafter fails to defend any such Third Party Claim
within a reasonable time, the Indemnified Party shall be entitled to assume such control and the Indemnifying Party shall be bound
by the results obtained by the Indemnified Party with respect to such Third Party Claim.

 

		(c)	If the Indemnifying Party assumes the defence of a Third Party Claim, it shall be deemed to have
acknowledged its obligation to indemnify and hold the Indemnified Party harmless with respect to such Third Party Claim.

 

		(d)	If any Third Party Claim is of a nature such that the Indemnified Party is required by applicable
Law to make a payment to any Person (a “Third Party”) with respect to such Third Party Claim before the completion
of settlement negotiations or related legal proceedings, the Indemnified Party may make such payment and the Indemnifying Party
shall, forthwith after demand by the Indemnified Party, reimburse the Indemnified Party for any such payment. If the amount of
any Losses of the Indemnified Party under the Third Party Claim in respect of which such a payment was made, as finally determined,
is less than the amount which was paid by the Indemnifying Party to the Indemnified Party, the Indemnified Party shall, forthwith
after receipt of the difference from the Third Party, pay the amount of such difference to the Indemnifying Party with interest
at the then current Court Order Interest Act rate.

 

		(e)	The Indemnifying Party shall not settle any Third Party Claim or conduct any related legal or administrative
proceeding in a manner which would, in the opinion of the Indemnified Party, acting reasonably, have a material adverse impact
on the Indemnified Party.

 

		9.8	Cooperation

 

Each Indemnified Party
and Indemnifying Party shall reasonably cooperate and assist each other in determining the validity of any Indemnification Claim
by an Indemnified Party and otherwise in resolving such matters. Such assistance and cooperation will include providing reasonable
access to information, records and documents relating to such matters and furnishing employees to assist in the investigation,
defence and resolution of such matters.

 

    	 	- 43 -	 

     

    

  

		9.9	Holdback Amount

 

		(a)	To the extent that a Cipher Indemnified Party is entitled to Losses arising from an Indemnification
Claim or Damages arising from a Damages Claim pursuant to this Agreement, then, in addition to any rights of set-off or other rights
that such Cipher Indemnified Party may have at common law or otherwise, Cipher (on behalf of such Cipher Indemnified Party) shall
have the right to set-off any Losses or Damages to which such Cipher Indemnified Party may be entitled to under this Agreement
against the Holdback Amount (on a dollar-for-dollar basis), provided that: (i) in the event a Cipher Indemnified Party is required
to satisfy any such Losses with an out-of-pocket cash payment to any Third Party, Cipher (on behalf of such Cipher Indemnified
Party) may, in its sole discretion, require that Correvio satisfy any indemnification obligations hereunder relating to such Losses
in cash; and (ii) if the aggregate amount of any Losses in respect of Indemnification Claims or Damages in respect of a Damages
Claim exceeds the Holdback Amount, Correvio shall be required to satisfy all such amounts in excess of the Holdback Amount in cash.

 

		(b)	Notwithstanding the foregoing, and without in any manner limiting the rights of indemnification
in favour of the Cipher Indemnified Parties under this Article 9, Cipher shall pay to Correvio the Holdback Amount, as follows:

 

		(i)	twenty-five percent (25%) of the Holdback Amount on the date that is three (3) months following
the Effective Date,

 

		(ii)	twenty-five percent (25%) of the Holdback Amount on the date that is six (6) months following the
Effective Date,

 

		(iii)	twenty-five percent (25%) of the Holdback Amount on the date that is nine (9) months following
the Effective Date, and

 

		(iv)	twenty-five percent (25%) of the Holdback Amount on the date that is twelve (12) months following
the Effective Date,

 

less, in each
case, any amounts that are permitted to be deducted from, and subject to set-off against, the Holdback Amount pursuant to Subsection
9.9(a), as at each respective payment date.

 

		9.10	Exclusive Remedy

 

After the Effective Date,
the rights of the Parties hereto and the Indemnified Parties to indemnification relating to this Agreement or the transactions
shall be strictly limited to those contained in this Article 9, and such indemnification rights shall be sole and exclusive remedies
of the Parties hereto and the Indemnified Parties subsequent to the Effective Date with respect to any matter in any way relating
to this Agreement or its subject or arising in connection herewith. Except as provided in this Article 9, no Claim shall be brought
or maintained by any Party against any other Party, and no recourse be brought or granted against any of them, by virtue of or
based upon any alleged misstatement or omission respecting an inaccuracy in or breach of any of the representations, warranties,
or agreements of any of the Parties hereto set forth or contained in this Agreement.
Notwithstanding the foregoing, nothing in this Agreement shall limit any Party’s remedies against another Party for fraud,
willful misconduct, fraudulent misrepresentation or intentional misrepresentation.

 

		9.11	No Double Recovery

 

An Indemnifying Party
shall not be liable under any Indemnification Claim to the extent that the Losses that are the subject of the relevant Indemnification
Claim have already been recovered in respect of another Indemnification Claim.

 

    	 	- 44 -	 

     

    

  

		9.12	Price Purchase Consideration Adjustment

 

To the extent permitted pursuant to applicable
Laws, all payments made by or on behalf of an Indemnifying Party to an Indemnified Party in respect of any Indemnification Claim
pursuant to this Article 9 shall be treated as adjustments to the Share Purchase Consideration for Tax purposes.

 

Article
10

GENERAL PROVISIONS AND MISCELLANEOUS

 

		10.1	Privacy

 

Each Party shall comply with applicable
privacy Laws in the course of collecting, using and disclosing personal information about identifiable individuals in connection
with the transactions contemplated hereby (the “Transaction Personal Information”). Neither Party shall disclose
Transaction Personal Information originally collected by the other Party to any Person other than to its advisors who are evaluating
and advising on the transactions contemplated by this Agreement. If Cipher completes the transactions contemplated by this Agreement,
Cipher shall not, following the Effective Date, without the consent of the individuals to whom such Transaction Personal Information
relates or as permitted or required by applicable Law, use or disclose Transaction Personal Information originally collected by
Cardiome:

 

		(a)	for purposes other than those for which such Transaction Personal Information was collected by
Cardiome prior to the Effective Date; and

 

		(b)	which does not relate directly to the carrying on of the business of Cardiome or to the carrying
out of the purposes for which the transactions contemplated by this Agreement were implemented.

 

The Parties shall protect and safeguard
the Transaction Personal Information against unauthorized collection, use or disclosure. Cipher shall cause its advisors to observe
the terms of this Section 10.1 and to protect and safeguard all Transaction Personal Information in their possession. If this Agreement
shall be terminated, each Party shall promptly deliver to the other Party all Transaction Personal Information originally collected
by such other Party in its possession or in the possession of any of its advisors, including all copies, reproductions, summaries
or extracts thereof, except, unless prohibited by applicable Law, for electronic backup copies made automatically in accordance
with the usual backup procedures of the Party returning such Transaction Personal Information.

 

		10.2	Notices

 

All notices and other communications given
or made pursuant to this Agreement shall be in writing and shall be deemed to have been duly given and received on the day it is
delivered, provided, however, that it is delivered on a Business Day prior to 4:30 p.m. Vancouver time in the place of delivery
or receipt. However, if notice is delivered after 4:30 p.m. Vancouver time or if such day is not a Business Day then the notice
shall be deemed to have been given and received on the next Business Day. Notice shall be sufficiently given if delivered (either
in Person, by courier service or other personal method of delivery), or if transmitted by email to the Parties at the following
addresses (or at such other addresses as shall be specified by any Party by notice to the other given in accordance with these
provisions):

 

		(a)	if to Cipher:

 

Cipher Pharmaceuticals Inc.

2345 Argentia Road, Suite 100A

Mississauga, Ontario L5N 8K4

 

	Attention:	Robert Tessarolo
	Email:	rtessarolo@cipherpharma.com

 

    	 	- 45 -	 

     

    

  

with a copy (which shall not
constitute notice) to:

 

Wildeboer Dellelce LLP

365 Bay Street, Suite 800

Toronto, ON M5H 2V1

 

	Attention:	James Brown
	Email:	jbrown@wildlaw.ca

 

		(b)	if to Cardiome or Correvio:

 

Cardiome Pharma Corp.

1441 Creekside Drive

6th Floor

Vancouver, British Columbia V6J
4S7

 

	Attention:	Bill Hunter
	Email:	bhunter@cardiome.com

 

with a copy (that shall not constitute
notice) to:

 

Blake, Cassels & Graydon LLP

595 Burrard Street

Suite 2600, Three Bentall Centre

Vancouver BC V7X 1L3

 

	Attention:	Joe Garcia
	Email:	joseph.garcia@blakes.com

 

		10.3	Governing Law

 

This Agreement shall be governed, including
as to validity, interpretation and effect, by the Laws of the Province of British Columbia and the Laws of Canada applicable therein,
without giving effect to any principles of conflict of Laws thereof which would result in the application of the Laws of any other
jurisdiction. Each of the Parties hereby irrevocably attorns to the exclusive jurisdiction of the courts of the Province of British
Columbia in respect of all matters arising under and in relation to this Agreement and the Arrangement.

 

		10.4	Injunctive Relief

 

Subject to Section 8.4 and Section 8.5,
the Parties acknowledge and agree that irreparable harm would occur for which money damages would not be an adequate remedy at
Law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached. Accordingly, the Parties agree that, in the event of any breach or threatened breach of this Agreement by a
Party, the non-breaching Party will be entitled, without the requirement of posting a bond or other security, to equitable relief,
including injunctive relief and specific performance, and the Parties shall not object to the granting of injunctive or other equitable
relief on the basis that there exists an adequate remedy at Law. Subject to Section 8.4 and Section 8.5, such remedies will not
be the exclusive remedies for any breach of this Agreement but will be in addition to all other remedies available at Law or equity
to each of the Parties.

 

		10.5	Time of Essence

 

Time shall be of the essence in this Agreement.

 

    	 	- 46 -	 

     

    

  

		10.6	Entire Agreement, Binding Effect and Assignment

 

This Agreement (including the exhibits
and schedules hereto and the Cardiome Disclosure Letter) and the Confidentiality Agreement constitute the entire agreement, and
supersede all other prior agreements and understandings, both written and oral, among the Parties, or any of them, with respect
to the subject matter hereof and thereof and, except as expressly provided herein, this Agreement is not intended to and shall
not confer upon any Person other than the Parties any rights or remedies hereunder. This Agreement shall enure to the benefit of
and be binding upon the Parties and their respective successors and permitted assigns. Neither this Agreement nor any of the rights,
interests or obligations hereunder may be assigned by any of the Parties without the prior written consent of the other Parties.

 

		10.7	No Liability

 

No director or officer of Cipher shall
have any personal liability whatsoever to Cardiome under this Agreement, or any other document delivered in connection with the
transactions contemplated hereby on behalf of Cipher. No director or officer of Cardiome shall have any personal liability whatsoever
to Cipher under this Agreement, or any other document delivered in connection with the transactions contemplated hereby on behalf
of Cardiome.

 

		10.8	Severability

 

If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule or Law or public policy, all other conditions and provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions
contemplated hereby are fulfilled to the fullest extent possible.

 

		10.9	Counterparts, Execution

 

This Agreement may be executed in one or
more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same
instrument. The Parties shall be entitled to rely upon delivery of an executed facsimile or similar executed electronic copy of
this Agreement, and such facsimile or similar executed electronic copy shall be legally effective to create a valid and binding
agreement among the Parties.

 

[Remainder of page intentionally left
blank]

 

    	 	- 47 -	 

     

    

  

IN WITNESS WHEREOF the Parties have executed
this Arrangement Agreement as of the date first written above by their respective officers thereunto duly authorized.

 

	 	CIPHER PHARMACEUTICALS INC.
	 	 
	 	Per:	 
	 	 	Name:  Robert Tessarolo
	 	 	Title:   President and CEO
	 	 	 
	 	CARDIOME PHARMA CORP.
	 	 
	 	Per:	 
	 	 	Name:  William Hunter
	 	 	Title:    President and CEO
	 	 	 
	 	CORREVIO PHARMA CORP.
	 	 
	 	Per:	 
	 	 	Name:  William Hunter
	 	 	Title:    President and CEO

 

Signature Page
to Arrangement Agreement

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