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Exhibit 10.40  

 
 

SECURITIES PURCHASE AGREEMENT    
    

        This Securities Purchase Agreement (this "Agreement") is dated as of December 12, 2006, among
Biomira Inc., a Canadian corporation (the "Company"), and each purchaser identified on the signature pages hereto (each, including its successors
and assigns, a "Purchaser" and collectively the "Purchasers"). 

        WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act of 1933, as amended (the "Securities
Act"), the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described
in this Agreement. 

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

 
 

ARTICLE I.
  DEFINITIONS    

        1.1    Definitions.    In addition to the terms defined elsewhere in this Agreement, for all purposes of this
Agreement, the following terms have the meanings indicated in this Section 1.1: 

        "Action" shall have the meaning ascribed to such term in Section 3.1(j). 

        "Affiliate" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under
common control with a Person as such terms are used in and construed under Rule 144 under the Securities Act. With respect to a Purchaser, any investment fund or managed account that is managed
on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser. 

        "Business Day" means any day except Saturday, Sunday, any day which shall be a federal legal holiday in the United States or any day on
which banking institutions in the State of New York or the Province of Alberta are authorized or required by law or other governmental action to close. 

        "Canadian Company Counsel" means Fraser Milner Casgrain LLP. 

        "Closing" means the closing of the purchase and sale of the Securities pursuant to Section 2.1. 

        "Closing Date" means the Trading Day when all of the Transaction Documents have been executed and delivered by the applicable parties
thereto, and all conditions precedent to (i) the Purchasers' obligations to pay the Subscription Amount and (ii) the Company's obligations to deliver the Securities have been satisfied
or waived. 

        "Closing Price" means on any particular date (a) the last reported closing bid price per share of Common Stock on such date on the
Trading Market (as reported by Bloomberg L.P. at 4:15 p.m. (New York City time)), or (b) if there is no such price on such date, then the closing bid price on the Trading Market on the
date nearest preceding such date (as reported by Bloomberg L.P. at 4:15 p.m. (New York City time)), or (c) if the Common Stock is not then listed or quoted on the Trading Market and if
prices for the Common Stock are then reported in the "pink sheets" published by the National Quotation Bureau Incorporated (or a similar organization or agency succeeding to its functions of reporting
prices), the most recent bid price per share of the Common Stock so reported, or (d) if the shares of Common Stock are not then publicly traded the 

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fair
market value of a share of Common Stock as determined by an appraiser selected in good faith by the Purchasers of a majority in interest of the Shares then outstanding. 

        "Commission" means the Securities and Exchange Commission. 

        "Common Stock" means the common stock of the Company and any other class of securities into which such securities may hereafter be
reclassified or changed into. 

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

        "Disclosure Schedules" means the Disclosure Schedules of the Company delivered concurrently herewith and attached hereto as
Exhibit A. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

        "Exempt Issuance" means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company
pursuant to any stock or option plan duly adopted by the Company, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities
exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of
this Agreement to increase the number of such securities or to decrease the exercise, exchange or conversion price of any such securities, and (c) securities issued pursuant to acquisitions or
strategic transactions approved by a majority of the disinterested directors, provided any such issuance shall only be to a Person which is, itself or through its subsidiaries, an operating company in
a business synergistic with the business of the Company and in which the Company receives benefits in addition to the investment of funds, but shall not include a transaction in which the Company is
issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities. 

        "FWS" means Feldman Weinstein LLP, with offices located at 420 Lexington Avenue, Suite 2620, New York, New York 10170-0002. 

        "GAAP" shall have the meaning ascribed to such term in Section 3.1(h). 

        "Intellectual Property Rights" shall have the meaning ascribed to such term in Section 3.1(o). 

        "Liens" means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction. 

        "Material Adverse Effect" shall have the meaning assigned to such term in Section 3.1(b). 

        "Material Permits" shall have the meaning ascribed to such term in Section 3.1(m). 

        "Per Unit Purchase Price" equals U.S.$1.35, subject to adjustment for reverse and forward stock splits, stock dividends, stock
combinations and other similar transactions of the Common Stock that occur after the date of this Agreement. 

        "Person" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

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        "Proceeding" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened. 

        "Prospectus" means the final prospectus filed for the Registration Statement. 

        "Prospectus Supplement" means the supplement to the Prospectus complying with applicable Canadian requirements and with General
Instruction II.L of Form F-10 and the rules and regulations of the Commission promulgated under the Securities Act that is filed with the Commission and delivered by the Company to
each Purchaser at the Closing. 

        "Purchaser Party" shall have the meaning ascribed to such term in Section 4.6. 

        "Registration Statement" means the effective registration statement with Commission file No. 333-137342 which registers
the sale of the Shares, the Warrants and the Warrant Shares by the Purchasers. 

        "Required Approvals" shall have the meaning ascribed to such term in Section 3.1(e). 

        "Rule 144" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from
time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

        "SEC Reports" shall have the meaning ascribed to such term in Section 3.1(h). 

        "Securities" means the Shares, the Warrants and the Warrant Shares. 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

        "Shares" means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement. 

        "Short Sales" shall include all "short sales" as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be
deemed to include the location and/or reservation of borrowable shares of Common Stock). 

        "Subscription Amount" means, as to each Purchaser, the aggregate amount to be paid for Shares and Warrants purchased hereunder as
specified below such Purchaser's name on the signature page of this Agreement and next to the heading "Subscription Amount", in United States Dollars and in immediately available funds. 

        "Subsidiary" means any subsidiary of the Company as set forth on Schedule 3.1(a). 

        "Trading Day" means a day on which the Common Stock is traded on a Trading Market. 

        "Trading Market" means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in
question: the Nasdaq Capital Market, the American Stock Exchange, the New York Stock Exchange, the Nasdaq Global Market, the Nasdaq Global Select Market or the OTC Bulletin Board. 

        "Transaction Documents" means this Agreement, the Warrants and any other documents or agreements executed in connection with the
transactions contemplated hereunder. 

        "U.S. Company Counsel" means Wilson Sonsini Goodrich & Rosati, Professional Corporation. 

        "Warrants" means collectively the Common Stock purchase warrants, in the form of  Exhibit B delivered to the Purchasers at the Closing in accordance with
Section 2.2(a) hereof, which Warrants shall be exercisable from
the expiry of six months from the Closing Date and will expire if not exercised within 48 months of the Closing Date. 

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        "Warrant Shares" means the shares of Common Stock issuable upon exercise of the Warrants. 

 
 

ARTICLE II.
  PURCHASE AND SALE    

        2.1    Closing.    On the Closing Date, upon the terms and subject to the conditions set forth herein, the Company
agrees to sell, and each Purchaser agrees to purchase in the aggregate, severally and not jointly, up to U.S.$12,999,999 of Shares and Warrants. Each Purchaser shall deliver to the Company via wire
transfer or a certified check immediately available funds equal to their Subscription Amount and, subject to satisfaction of the conditions set for in Section 2.2, the Company shall deliver to
each Purchaser their respective Shares and Warrants as determined pursuant to Section 2.2(a) and the other items set forth in Section 2.2 issuable at the Closing. Upon satisfaction of
the conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of Rodman & Renshaw, LLC, or such other location as the parties shall mutually agree. 

        2.2    Deliveries.    

        (a)   On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following: 

          (i)  this
Agreement duly executed by the Company; 

         (ii)  a
legal opinion of Canadian Company Counsel, the substantive provisions of which shall be in the form of  Exhibit C-1 attached hereto; 

        (iii)  a
legal opinion of U.S. Company Counsel, the substantive provisions of which shall be in the form of  Exhibit C-2attached hereto; 

        (iv)  a
copy of the irrevocable instructions to the Company's transfer agent instructing the transfer agent to deliver via the Depository Trust Company Deposit Withdrawal
Agent Commission System ("DWAC") Shares equal to such Purchaser's Subscription Amount divided by the Per Share Purchase Price, registered in the name of
such Purchaser; 

         (v)  a
Warrant registered in the name of such Purchaser to purchase up to a number of shares of Common Stock equal to 20% of the Shares purchased by such Purchaser hereunder,
with an exercise price equal to U.S.$1.86, subject to adjustment therein (such Warrant certificate may be delivered within ten Trading Days of the Closing Date); and 

        (vi)  the
Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act). 

        (b)   On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following: 

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

         (ii)  such
Purchaser's Subscription Amount by wire transfer of immediately available funds to the account as specified in writing by the Company. 

        2.3    Closing Conditions.    

        (a)   The
obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met: 

          (i)  the
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchasers contained herein; 

         (ii)  all
obligations, covenants and agreements of the Purchasers required to be performed at or prior to the Closing Date shall have been performed; 

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        (iii)  the
delivery by each of the Purchasers of the items set forth in Section 2.2(b) of this Agreement; 

        (iv)  the
receipt by the Company of all requisite approvals of the Toronto Stock Exchange with respect to the Transaction Documents and the transactions contemplated therein;
and 

         (v)  the
issuance by the Alberta Securities Commission of a final receipt for the Prospectus Supplement. 

        (b)   The
respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met: 

          (i)  the
accuracy in all material respects on the Closing Date of the representations and warranties of the Company contained herein; 

         (ii)  all
obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed; 

        (iii)  the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement; 

        (iv)  there
shall have been no Material Adverse Effect with respect to the Company or its business operations and financial condition since the date hereof; and 

         (v)  from
the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company's principal Trading Market (except
for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the Closing), and, at any time prior to the Closing Date, trading in
securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service,
or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation
of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment
of each Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing. 

 
 

ARTICLE III.
  REPRESENTATIONS AND WARRANTIES    

        3.1    Representations and Warranties of the Company.    Except as set forth in the Disclosure Schedule, which
Disclosure Schedule shall be deemed a part hereof and to qualify any representation or warranty otherwise made herein to the extent of such disclosure, the Company hereby makes the representations and
warranties set forth below to each Purchaser: 

        (a)    Subsidiaries.    Each significant subsidiary (as defined in Rule 1-02(w) of
Regulation S-X) of the Company is set forth on Schedule 3.1(a). The Company owns, directly or indirectly, all of the capital
stock or other equity interests of each Subsidiary, and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid and non-assessable. 

        (b)    Organization and Qualification.    The Company and each of the Subsidiaries is an entity duly incorporated or
otherwise organized, validly existing and in good standing (except, in the case of good standing, for entities organized under laws of any jurisdiction that does not recognize such concept) under the
laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently
conducted. Neither the Company nor any Subsidiary is in material violation 

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or
material default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries
is duly qualified to conduct business in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so
qualified will not result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of
operations, assets, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company's ability to perform
in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a "Material Adverse Effect")
and, to the knowledge of the Company, no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or
qualification. 

        (c)    Authorization; Enforcement.    The Company has the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction
Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part of the Company and no
further corporate action is required by the Company, its board of directors or its stockholders in connection therewith other than in connection with the Required Approvals. Each Transaction Document
has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof and executed and delivered by each of the other parties
hereto and thereto, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by general equitable
principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable
law. 

        (d)    No Conflicts.    The execution, delivery and performance of the Transaction Documents by the Company, the
issuance and sale of the Shares and the consummation by the Company of the other transactions contemplated hereby and thereby do not (i) conflict with or violate any provision of the Company's
or any Subsidiary's certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any
property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations),
or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as does not have a Material Adverse Effect. 

        (e)    Filings, Consents and Approvals.    The Company is not required to obtain any consent, waiver, authorization or
order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection 

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with
the execution, delivery and performance by the Company of the Transaction Documents the absence of which would have a Material Adverse Effect, other than (i) filings required pursuant to
Section 4.4 of this Agreement, (ii) the filing with the Commission and applicable Canadian provincial securities commissions of the Prospectus Supplement, (iii) application(s) to
each applicable Trading Market for the listing of the Securities for trading thereon in the time and manner required thereby, and (iv) such filings as are required to be made under applicable
state and provincial securities laws (collectively, the "Required Approvals"). 

        (f)    Issuance of the Securities.    The Securities are duly authorized and, when issued and paid for in accordance
with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company (other than as set forth in the Transaction
Documents). The Warrant Shares, when issued in accordance with the terms of the Warrants, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The
Company is authorized to issue an unlimited number of shares of Common Stock. 

        (g)    Capitalization.    The capitalization of the Company is as set forth on  Schedule 3.1(g). Except as set forth in
Schedule 3.1(g), the Company has not issued any capital stock since its most recently filed
periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company's stock option plans, the issuance of shares of Common Stock to employees
pursuant to the Company's employee stock purchase plan and pursuant to the conversion or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report
under the Exchange Act. Other than as set forth in the Transaction Documents, no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in
the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities, and except as set forth in the Prospectus and Schedule 3.1(g), there
are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any
Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of
Common Stock or other securities to any Person (other than the Purchasers) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset
price under any of such
securities. Other than as specified in this Agreement, no further approval or authorization of any stockholder, the Board of Directors of the Company or others is required for the issuance and sale of
the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party. 

        (h)    SEC Reports; Financial Statements.    The Company has filed all reports, schedules, forms, statements and other
documents required to be filed by it under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such
shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein,
together with the Prospectus and the Prospectus Supplement, being collectively referred to herein as the "SEC Reports") on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all
material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, as applicable, and none of the SEC Reports,
when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be 

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stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in
the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such
financial statements have been prepared in accordance with Canadian generally accepted accounting principles applied on a consistent basis during the periods involved
("GAAP"), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not
contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the
results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal year-end audit adjustments. 

        (i)    Material Changes; Undisclosed Events, Liabilities or Developments.    Since the date of the latest audited
financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report or the Prospectus, (i) there has been no event, occurrence or development that
has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements
pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued
any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans. Except for the issuance of the Securities contemplated by this Agreement or as set
forth on Schedule 3.1(i), no event, liability or development has occurred or exists with respect to the Company or its Subsidiaries or their
respective business, properties, operations or financial condition, that would be required to be disclosed by the Company
under applicable securities laws at the time this representation is made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made. 

        (j)    Litigation.    There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or,
to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative
agency or regulatory authority (federal, state, county, local or foreign) (collectively, an "Action") which (i) adversely affects or challenges
the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have a Material Adverse Effect. Neither the
Company nor any Subsidiary, nor, to the knowledge of the Company, any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal
or state securities laws or a claim of breach of fiduciary duty. There has not been in the past 12 months, and to the knowledge of the Company, there is not pending or contemplated, any
investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued in the past 12 months any stop order or other
order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. 

        (k)    Labor Relations.    No material labor dispute exists or, to the knowledge of the Company, is imminent with
respect to any of the employees of the Company which could reasonably be expected to result in a Material Adverse Effect. None of the Company's or its Subsidiaries' employees is a member of a union
that relates to such employee's relationship with the Company, 

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and
neither the Company or any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good.
No executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary
information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer does not
subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and
foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance does not,
individually or in the aggregate, have a Material Adverse Effect. 

        (l)    Compliance.    Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no
event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary
received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it
or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is
or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state
and local laws applicable to its business and all such laws that affect the environment, except in each case as does not have a Material Adverse Effect. 

        (m)    Regulatory Permits.    The Company and the Subsidiaries possess all certificates, authorizations and permits
issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess
such permits does not have a Material Adverse Effect ("Material Permits"), and neither the Company nor any Subsidiary has received in the past
12 months any written notice of proceedings relating to the revocation or modification of any Material Permit. 

        (n)    Title to Assets.    The Company and the Subsidiaries have good and marketable title in fee simple to all real
property owned by them that is material to the business of the Company and the Subsidiaries and good and marketable title in all personal property owned by them that is material to the business of the
Company and the Subsidiaries. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the
Company and the Subsidiaries are in material compliance. 

        (o)    Patents and Trademarks.    To the knowledge of the Company, the Company and the Subsidiaries have, or have
rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights
and similar rights necessary or material for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have a Material Adverse Effect
(collectively, the "Intellectual Property Rights"). Neither the Company nor any Subsidiary has received a written notice in the past 12 months
that the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual Property Rights
are enforceable and there is no existing infringement by another Person of any of the Intellectual Property rights. The Company and its Subsidiaries have taken reasonable security measures to protect
the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so does not, individually or in the aggregate, have a Material Adverse Effect. 

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        (p)    Insurance.    The Company and the Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. 

        (q)    Sarbanes-Oxley.    The Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002
which are applicable to it as of the Closing Date. 

        (r)    Certain Fees.    Except as set forth in the Prospectus Supplement, no brokerage or finder's fees or commissions
are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by
the Transaction Documents. The Purchasers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this
Section that may be due in connection with the transactions contemplated by the Transaction Documents. 

        (s)    Registration Rights.    Except as set forth in Schedule 3.1(s), to the knowledge of the Company, no
Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. 

        (t)    Listing and Maintenance Requirements.    The Company's Common Stock is registered pursuant to
Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the
Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. The Company has not, in the 12 months
preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or
maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and
maintenance requirements. Except as set forth in Schedule 3.1(t), neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any sales of any security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval
provisions of any Trading Market on which any of the securities of the Company are listed or designated. 

        (u)    Disclosure.    Except with respect to the material terms and conditions of the transactions contemplated by the
Transaction Documents, the Company confirms that, neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it
believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the Prospectus Supplement. The Company understands and confirms that the
Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company. All disclosure furnished by or on behalf of the Company to the Purchasers regarding the
Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, with respect to the representations and warranties made herein are true and
correct with respect to such representations and warranties and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made
therein, in the light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with
respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof. 

10

  

        (v)    Tax Status.    Except for matters that would not, individually or in the aggregate, have a Material Adverse
Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has
no knowledge of a material tax deficiency which has been asserted or threatened against the Company or any Subsidiary and which is outstanding. 

        (w)    Foreign Corrupt Practices.    Neither the Company, nor to the knowledge of the Company, any agent or other
person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic
political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds,
(iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or
(iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended. 

        (x)    Accountants.    The Company's accountants are identified in the Prospectus or Prospectus Supplement. 

        (y)    Acknowledgment Regarding Purchasers' Purchase of Securities.    The Company acknowledges and agrees that each
of the Purchasers is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges
that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any
advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the
Purchasers' purchase of the Securities. The Company further represents to each Purchaser that the Company's decision to enter into this Agreement and the other Transaction Documents has been based
solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives. 

        (z)    Acknowledgement Regarding Purchasers' Trading Activity.    Anything in this Agreement or elsewhere herein to
the contrary notwithstanding (except for Sections 3.2(f) and 4.13 hereof), it is understood and acknowledged by the Company (i) that none of the Purchasers have been asked to agree, nor has any
Purchaser agreed, to desist from purchasing or selling, long and/or short, securities of the Company, or "derivative" securities based on securities issued by the Company or to hold the Securities for
any specified term; (ii) that past or future open market or other transactions by any Purchaser, including Short Sales, and specifically including, without limitation, Short Sales or
"derivative" transactions, before or after the closing of this or future private placement transactions, may negatively impact the market price of the Company's publicly-traded securities;
(iii) that any Purchaser, and counter-parties in "derivative" transactions to which any such Purchaser is a party, directly or indirectly, presently may have a "short" position in the Common
Stock, and (iv) that each Purchaser shall not be deemed to have any affiliation with or control over any arm's length counter-party in any "derivative" transaction. The Company further
understands and acknowledges that (a) one or more Purchasers may engage in hedging activities at various times during the period that the Securities are outstanding, including, without
limitation, during the periods that the value of the Warrant Shares deliverable with respect to the exercise of the Warrant are being determined and (b) such hedging activities (if any) could
reduce the value of the existing stockholders' equity interests in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned
hedging activities do not constitute a breach of any of the Transaction Documents. 

11

 

        (aa)    Regulation M Compliance.    The Company has not, and to its knowledge no one acting on its behalf has,
(i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of
any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any person any
compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company's placement agent in
connection with the placement of the Securities. 

        (bb)    Effectiveness of Registration Statement.    Pursuant to the rules and regulations of the Commission, the
Registration Statement became effective under the Securities Act on September 26, 2006. The Form F-X of the Company was filed with the Commission prior to the effectiveness
of the Registration Statement. To the Company's knowledge, no stop order suspending the effectiveness of the Registration Statement or any part thereof has been issued, and no proceedings for that
purpose have been instituted or are pending under the Securities Act. The Warrant Shares when delivered and issued in compliance with the terms of the Warrants, will be covered under the Registration
Statement. 

        3.2    Representations and Warranties of the Purchasers.    Each Purchaser hereby, for itself and for no other
Purchaser, represents and warrants as of the date hereof and as of the Closing Date to the Company as follows: 

        (a)    Organization; Authority.    Such Purchaser is an entity duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction
Documents and otherwise to carry out its obligations hereunder and thereunder. The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been
duly authorized by all necessary corporate or similar action on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when
delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except
(i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights
generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and
contribution provisions may be limited by applicable law. 

        (b)    Own Account.    Such Purchaser is acquiring the Securities as principal for its own account and not with a view
to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such
Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the
distribution of such Securities (this representation and warranty not limiting such Purchaser's right to sell the Securities in compliance with applicable federal and state securities laws) in
violation of the Securities Act or any applicable state securities law. Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business. 

        (c)    Purchaser Status.    At the time such Purchaser was offered the Securities, it was, and at the date hereof it
is, and on each date on which it exercises any Warrants, it will be either: (i) an "accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the
Securities Act or (ii) a "qualified institutional buyer" as defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under
Section 15 of the Exchange Act. 

12

 

        (d)    Experience of Such Purchaser.    Such Purchaser, either alone or together with its representatives, has such
knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated
the merits and risks of such investment. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such
investment. 

        (e)    Short Sales and Confidentiality Prior To The Date Hereof.    Other than the transaction contemplated hereunder,
such Purchaser has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, executed any disposition, including Short Sales, in the
securities of the Company during the period commencing from the time that such Purchaser first
received a term sheet (written or oral) from the Company or any other Person setting forth the material terms of the transactions contemplated hereunder until the date hereof
("Discussion Time"). Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of such Purchaser's assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of
such Purchaser's assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the
Securities covered by this Agreement. Other than to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this transaction). 

        (f)    Canadian Securities Laws.    Such Purchaser's activities with respect to the Securities is and will be in
compliance with all applicable Canadian securities laws, rules and regulations and the rules and regulations of the Toronto Stock Exchange. 

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES 

        4.1    Transfer Restrictions.    If all or any portion of a Warrant is exercised at a time when there is an effective
registration statement to cover the issuance or resale of the Warrant Shares, such Warrant Shares shall be issued free of all legends. 

        4.2    Furnishing of Information.    As long as any Purchaser owns Securities, the Company covenants to timely file
(or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. As long as any
Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available in accordance with
Rule 144(c) such information as is required for the Purchasers to sell the Securities under Rule 144. The Company further covenants that it will take such further action as any holder of
Securities may reasonably request, to the extent required from time to time to enable such Person to sell such Securities without registration under the Securities Act within the requirements of the
exemption provided by Rule 144. 

        4.3    Integration.    The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in
respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any
Trading Market such that it would require shareholder approval prior to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction. 

        4.4    Securities Laws Disclosure; Publicity.    The Company shall, by 8:30 a.m. (New York City time) on the
Trading Day immediately following the date hereof, issue a press release describing the material terms of the transactions contemplated hereby. The Company shall not publicly disclose the name of 

13

 

any
Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of such Purchaser, except
(i) as required by applicable law in connection with the filing of final Transaction Documents (including signature pages thereto) with any applicable regulatory authority and (ii) to
the extent such disclosure is required by law or Trading Market regulations. 

        4.5    Non-Public Information.    Except with respect to the material terms and conditions of the
transactions contemplated by the Transaction Documents, the Company covenants and agrees that neither it nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel
with any information that the Company believes constitutes material non-public information, unless prior thereto such Purchaser shall have executed a written agreement regarding the
confidentiality and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing representations in effecting transactions in securities of the
Company. 

        4.6    Indemnification of Purchasers.    Subject to the provisions of this Section 4.6, the Company will
indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such
titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a "Purchaser Party") harmless from any and all losses,
liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys' fees and costs of
investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the
Company in this Agreement or in the other Transaction Documents or (b) any action instituted against a Purchaser, or any of them or their respective Affiliates, by any stockholder of the
Company who is not an Affiliate of such Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser's
representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser may have with any such stockholder or any violations by the Purchaser of
state or federal securities laws or any conduct by such Purchaser which constitutes fraud, negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in
respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense
thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the
defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized
by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable
opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible
for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (i) for any settlement by a Purchaser
Party effected without the Company's prior written consent, which shall not be unreasonably withheld or delayed or (ii) to the extent, but only to the extent that a loss, claim, damage or
liability is attributable to any Purchaser Party's breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction
Documents. 

14

 

        4.7    Listing of Common Stock.    The Company hereby agrees to use reasonable commercial efforts to maintain the
listing of the Common Stock on a Trading Market, and as soon as reasonably practicable following the Closing (but not later than the Closing Date) to list all of the Shares and Warrant Shares on such
Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will include in such application all of the Shares and Warrant
Shares, and will take such other action as is necessary to cause all of the Shares and Warrant Shares to be listed on such other Trading Market as promptly as possible. The Company will take all
action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company's reporting, filing and other obligations under
the bylaws or rules of the Trading Market. 

        4.8    Equal Treatment of Purchasers.    No consideration shall be offered or paid to any Person to amend or consent
to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents. For clarification
purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended to treat for the Company the Purchasers as a
class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise. 

        4.9    Short Sales and Confidentiality After The Date Hereof.    Each Purchaser severally and not jointly with the
other Purchasers covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any Short Sales during the period commencing at the Discussion
Time and ending at the time that the transactions contemplated by this Agreement are first publicly announced as described in Section 4.4. Each Purchaser, severally and not jointly with the
other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company as described in Section 4.4, such Purchaser will
maintain the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, no Purchaser
makes any representation, warranty or covenant hereby that it will not engage in Short Sales in the securities of the Company after the time that the transactions contemplated by this Agreement are
first publicly announced as described in Section 4.4. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers
manage separate portions of such Purchaser's assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such
Purchaser's assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities
covered by this Agreement. 

        4.10    Subsequent Equity Sales.    

        (a)   From
the date hereof until 60 days after the Closing Date, neither the Company nor any Subsidiary shall issue shares of Common Stock or Common Stock Equivalents;
provided, however, the 60 day period set forth in this Section 4.10 shall be extended for the number of Trading Days during such period in which trading in the Common Stock is suspended
by any Trading Market, or following the Closing Date, the Registration Statement is not effective or the Prospectus may not be used by the Purchasers for the purchase of Warrant Shares. 

        (b)   Notwithstanding
the foregoing, this Section 4.10 shall not apply in respect of an Exempt Issuance. 

        4.11    Delivery of Securities After Closing.    The Company shall deliver, or cause to be delivered, the respective
Securities purchased by each Purchaser to such Purchaser within 3 Trading Days of the Closing Date. 

15

 

        4.12    Capital Changes.    Until 90 days after the Closing Date, the Company shall not undertake a reverse or
forward stock split or reclassification of the Common Stock without the prior written consent of the Purchasers holding a majority in interest of the Shares. 

ARTICLE V.

MISCELLANEOUS 

        5.1    Termination.    This Agreement may be terminated by the Company or by any Purchaser, as to such Purchaser's
obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing has not been
consummated on or before December 29, 2006; provided, however, that no such termination will
affect the right of any party to sue for any breach by the other party (or parties). 

        5.2    Fees and Expenses.    Except as expressly set forth in the Transaction Documents to the contrary, each party
shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the
Purchasers. 

        5.3    Entire Agreement.    The Transaction Documents, together with the exhibits and schedules thereto, the
Prospectus and the Prospectus Supplement contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. 

        5.4    Notices.    Any and all notices or other communications or deliveries required or permitted to be provided
hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a
day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the 2nd Trading Day following the date of mailing, if sent by recognized
overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the
signature pages attached hereto. 

        5.5    Amendments; Waivers.    No provision of this Agreement may be waived or amended except in a written instrument
signed, in the case of an amendment, by the Company and each Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any
default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 

        5.6    Headings.    The headings herein are for convenience only, do not constitute a part of this Agreement and shall
not be deemed to limit or affect any of the provisions hereof. 

        5.7    Successors and Assigns.    This Agreement shall be binding upon and inure to the benefit of the parties and
their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger). Any
Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided such transferee agrees in writing to 

16

 

be
bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the "Purchasers". 

        5.8    No Third-Party Beneficiaries.    This Agreement is intended for the benefit of the parties hereto and their
respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.9. 

        5.9    Governing Law.    All questions concerning the construction, validity, enforcement and interpretation of the
Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each
party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought
against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New
York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby
irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an
inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by
law. The parties hereby waive all rights to a trial by jury. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in
such action or proceeding shall be reimbursed by the other party for its reasonable attorneys' fees and other costs and expenses incurred with the investigation, preparation and prosecution of such
action or proceeding. 

        5.10    Survival.    The representations and warranties contained herein shall survive the Closing and the delivery of
the Shares and Warrants for a period of two years. 

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

        5.12    Severability.    If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and
shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

        5.13    Replacement of Securities.    If any certificate or instrument evidencing any Securities is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued in exchange and 

17

 

substitution
for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including
customary indemnity) associated with the issuance of such replacement Securities. 

        5.14    Remedies.    In addition to being entitled to exercise all rights provided herein or granted by law, including
recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate
compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agrees to waive and not to assert in any action for specific performance of
any such obligation the defense that a remedy at law would be adequate. 

        5.15    Payment Set Aside.    To the extent that the Company makes a payment or payments to any Purchaser pursuant to
any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any
other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation
or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 

        5.16    Independent Nature of Purchasers' Obligations and Rights.    The obligations of each Purchaser under any
Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the
obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed
to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group
with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without
limitation, the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any
proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. For reasons of administrative
convenience only, Purchasers and their respective counsel have chosen to communicate with the Company through FWS. FWS does not represent all of the Purchasers but only Rodman & Renshaw, LLC,
who has acted as placement agent to the transaction. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because
it was required or requested to do so by the Purchasers. 

(Signature Pages Follow)

18

 

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

	BIOMIRA INC.	 	Address for Notice:
	

By:	
 	

/s/ Edward A. Taylor
 Name: Edward A. Taylor

Title: Vice President & CFO	
 	

 

With
a copy to (which shall not constitute notice): 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS] 

19

[PURCHASER SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Axa Framlington

	
Signature of Authorized Signatory of Purchaser:	

/s/ Gareth Powell

	

Name of Authorized Signatory:	

Gareth Powell

	

Title of Authorized Signatory:	

Portfolio Manager

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$500,000
	Shares:	 	 
	Warrant Shares:	 	 
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Bristol Investment Fund, Ltd.

	
Signature of Authorized Signatory of Purchaser:	

/s/ Paul Kessler

	

Name of Authorized Signatory:	

Paul Kessler

	

Title of Authorized Signatory:	

Director

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$750,000.00
	Shares:	 	555,556
	Warrant Shares:	 	111,111
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Cranshire Capital, L.P.

	
Signature of Authorized Signatory of Purchaser:	

/s/ Mitchell P. Kopin

	

Name of Authorized Signatory:	

Mitchell P. Kopin

	

Title of Authorized Signatory:	

President of Dounsier Capital, L.P. the General Partner

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$1,000,000.40
	Shares:	 	740,741
	Warrant Shares:	 	148,148
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	DAFNA LifeScience Ltd.

	
Signature of Authorized Signatory of Purchaser:	

/s/ Fariba Ghodsian, PhD, MBA

	

Name of Authorized Signatory:	

Fariba Ghodsian, PhD, MBA

	

Title of Authorized Signatory:	

Managing Member of the Investment Manager, DAFNA

Capital Management, LLC on behalf of DAFNA LifeScience Ltd.

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$226,800
	Shares:	 	168,000
	Warrant Shares:	 	33,600
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	DAFNA LifeScience Select Ltd.
	
Signature of Authorized Signatory of Purchaser:	

/s/ Fariba Ghodsian, PhD, MBA

	

Name of Authorized Signatory:	

Fariba Ghodsian, PhD, MBA

	

Title of Authorized Signatory:	

Managing Member of the Investment Manager, DAFNA Capital Management, LLC on behalf of DAFNA LifeScience Select Ltd.

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$473,850
	Shares:	 	351,000
	Warrant Shares:	 	70,200
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	GCA Strategic Investment Fund Limited

	
Signature of Authorized Signatory of Purchaser:	

/s/ Lewis N. Lester Sr.

	

Name of Authorized Signatory:	

Lewis N. Lester Sr.

	

Title of Authorized Signatory:	

Director

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$500,000.00
	Shares:	 	 
	Warrant Shares:	 	 
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Capital Ventures International,

by Heights Capital Management, Inc., its authorized agent

	
Signature of Authorized Signatory of Purchaser:	

/s/ Martin Kobinger

	

Name of Authorized Signatory:	

Martin Kobinger

	

Title of Authorized Signatory:	

Investment Manager

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$513,000
	Shares:	 	380,000
	Warrant Shares:	 	76,000
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Deerfield Special Situations Fund, L.P.

	
Signature of Authorized Signatory of Purchaser:	

/s/ Darren Levine

	

Name of Authorized Signatory:	

Darren Levine

	

Title of Authorized Signatory:	

CFO

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$901,800
	Shares:	 	668,000
	Warrant Shares:	 	133,000
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Deerfield Special Situations Fund International

	
Signature of Authorized Signatory of Purchaser:	

/s/ Darren Levine

	

Name of Authorized Signatory:	

Darren Levine

	

Title of Authorized Signatory:	

CFO

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$448,200
	Shares:	 	332,000
	Warrant Shares:	 	66,400
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Smithfield Fiduciary LLC

	
Signature of Authorized Signatory of Purchaser:	

/s/ Adam J. Chill

	

Name of Authorized Signatory:	

Adam J. Chill

	

Title of Authorized Signatory:	

Authorized Signatory

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$999,999.00
	Shares:	 	740,740
	Warrant Shares:	 	148,148
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Hudson Bay Fund LP

	
Signature of Authorized Signatory of Purchaser:	

/s/ Yoav Roth

	

Name of Authorized Signatory:	

Yoav Roth

	

Title of Authorized Signatory:	

Principal

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$192,000
	Shares:	 	142,222
	Warrant Shares:	 	28,444
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Hudson Bay Overseas Fund Ltd.

	
Signature of Authorized Signatory of Purchaser:	

/s/ Yoav Roth

	

Name of Authorized Signatory:	

Yoav Roth

	

Title of Authorized Signatory:	

Principal

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$208,000
	Shares:	 	154,074
	Warrant Shares:	 	30,815
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Iroquois Master Fund Ltd.

	
Signature of Authorized Signatory of Purchaser:	

/s/ Joshua Silverman

	

Name of Authorized Signatory:	

Joshua Silverman

	

Title of Authorized Signatory:	

Authorized Signatory

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$200,000
	Shares:	 	148,148
	Warrant Shares:	 	29,630
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	James R. Davis

	
Signature of Authorized Signatory of Purchaser:	

/s/ James R. Davis

	

Name of Authorized Signatory:	

James R. Davis

	

Title of Authorized Signatory:	

Same

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$100,000
	Shares:	 	74,074
	Warrant Shares:	 	14,815
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	JGB Capital Offshore Ltd.

	
Signature of Authorized Signatory of Purchaser:	

/s/ Brett Cohen

	

Name of Authorized Signatory:	

Brett Cohen

	

Title of Authorized Signatory:	

President

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$27,000
	Shares:	 	20,000
	Warrant Shares:	 	4,000
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	JGB Capital L.P.

	
Signature of Authorized Signatory of Purchaser:	

/s/ Brett Cohen

	

Name of Authorized Signatory:	

Brett Cohen

	

Title of Authorized Signatory:	

President

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$108,000
	Shares:	 	80,000
	Warrant Shares:	 	16,000
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Otago Partners, LLC

	
Signature of Authorized Signatory of Purchaser:	

/s/ Lindsay A. Rosenwald, MD

	

Name of Authorized Signatory:	

Lindsay A. Rosenwald, MD

	

Title of Authorized Signatory:	

Managing Member

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$300,000
	Shares:	 	222,222
	Warrant Shares:	 	 
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Radcliffe SPC, Ltd. for and on behalf of the Class A Segregated Portfolio

	
Signature of Authorized Signatory of Purchaser:	

 
	

Radcliffe SPC, Ltd. for and on behalf of the Class A Segregated Portfolio
	

	By: RG Capital Management, L.P.
	

	By: RGC Management Company, LLC
	

	

By: /s/ Gerald F. Stahlecker
	

	

Name of Authorized Signatory:	

Gerald F. Stahlecker

	

Title of Authorized Signatory:	

Managing Director

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$1,000,000.35
	Shares:	 	740,741
	Warrant Shares:	 	148,148
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Truk Opportunity Fund LLC

	
Signature of Authorized Signatory of Purchaser:	

/s/ Mitchell Fein

	

Name of Authorized Signatory:	

Mitchell Fein

	

Title of Authorized Signatory:	

Vice President

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$881,188.20
	Shares:	 	652,732
	Warrant Shares:	 	130,546
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Truk International Fund, LP

	
Signature of Authorized Signatory of Purchaser:	

/s/ Mitchell Fein

	

Name of Authorized Signatory:	

Mitchell Fein

	

Title of Authorized Signatory:	

Vice President

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$120,162.15
	Shares:	 	89,009
	Warrant Shares:	 	17,802
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Portside Growth and Opportunity Fund

	
Signature of Authorized Signatory of Purchaser:	

/s/ Jeffrey Smith

	

Name of Authorized Signatory:	

Jeffrey Smith

	

Title of Authorized Signatory:	

Authorized Signatory

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$1,999,999.35
	Shares:	 	1,481,481
	Warrant Shares:	 	296,296
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Crescent International Limited

	
Signature of Authorized Signatory of Purchaser:	

/s/ Maxi Brezzi

	

Name of Authorized Signatory:	

Maxi Brezzi

	

Title of Authorized Signatory:	

Authorized Signatory

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$250,000
	Shares:	 	 
	Warrant Shares:	 	 
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Evolution Master Fund Ltd. SPC, Segregated Portfolio M

	
Signature of Authorized Signatory of Purchaser:	

/s/ Adrian Brindle

	

Name of Authorized Signatory:	

Adrian Brindle

	

Title of Authorized Signatory:	

Director

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	 
	Shares:	 	 
	Warrant Shares:	 	 
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	The Tail Wind Fund Ltd.,

by Tail Wind Advisory & Management Ltd., as investment manager

	
Signature of Authorized Signatory of Purchaser:	

/s/ David Crook

	

Name of Authorized Signatory:	

David Crook

	

Title of Authorized Signatory:	

CEO of Tail Wind Advisory & Management Ltd.,

as investment manager

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$300,000
	Shares:	 	222,222
	Warrant Shares:	 	44,444
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
PAGES CONTINUE] 

[PURCHASER
SIGNATURE PAGES TO BIOM SECURITIES PURCHASE AGREEMENT] 

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

	Name of Purchaser:	Rockmore Investment Master Fund Ltd.

	
Signature of Authorized Signatory of Purchaser:	

/s/ Bruce Bernstein

	

Name of Authorized Signatory:	

Bruce Bernstein

	

Title of Authorized Signatory:	

Managing Partner

	

Email Address of Purchaser:	

 
	 	

	

Fax Number of Purchaser:	

 
	 	

Address
for Notice of Purchaser: 

Address
for Delivery of Securities for Purchase (if not same as above): 

	Subscription Amount:	 	$499,999.50
	Shares:	 	370,370
	Warrant Shares:	 	74,074
	EIN Number: [PROVIDE THIS UNDER SEPARATE COVER]

[SIGNATURE
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QuickLinks

SECURITIES PURCHASE AGREEMENT

ARTICLE I. DEFINITIONS

ARTICLE II. PURCHASE AND SALE

ARTICLE III. REPRESENTATIONS AND WARRANTIESQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.41  

        THIS SECURITY IS SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN SECTION 2.

	Issuance Date: December 18, 2006	 	No.            

 
 

BIOMIRA INC.    
    
    PURCHASE WARRANT    
    
    WARRANT ("WARRANT") TO PURCHASE SHARES OF
  COMMON STOCK, WITHOUT PAR
VALUE

        This
is to certify that, FOR VALUE RECEIVED,                        ("Warrantholder"), is entitled to purchase, subject to the
provisions of this Warrant, from Biomira Inc., a
corporation organized under the laws of the Canada Business Corporations Act ("Company"), at any time after June 18, 2007 ("Commencement Date") but not later than 8:00 P.M., Eastern
time, on December 18, 2010 ("Expiration Date"),            shares ("Warrant Shares") of Common Stock, without par value ("Common Stock"), of the Company, at an exercise price per share
equal to $1.86 U.S. Dollars (the exercise price in effect from time to time hereafter being herein called the "Warrant Price"). The number of Warrant Shares purchasable upon exercise of this Warrant
and the Warrant Price shall be subject to adjustment from time to time as described herein. 

        Section 1.    Registration.    The Company shall maintain books for the transfer and registration of the
Warrant. Upon the initial issuance of the Warrant, the Company shall issue and register the Warrant in the name of the Warrantholder. 

        Section 2.    Transfers.    The Company shall transfer this Warrant from time to time, upon the books to be
maintained by the Company for that purpose, upon surrender hereof for transfer properly endorsed or accompanied by appropriate instructions for transfer upon any such transfer, and a new Warrant shall
be issued to the transferee and the surrendered Warrant shall be canceled by the Company. 

        Section 3. 

        (a)    Exercise of Warrant.    Subject to the provisions hereof, the Warrantholder may exercise this Warrant in whole
or in part at any time and from time to time after the Commencement Date upon surrender of the Warrant, together with delivery of the duly executed Warrant exercise form attached hereto (the "Exercise
Agreement") (which may be by fax), to the Company on any business day at the Company's principal executive offices (or such other office or agency of the Company as it may designate by notice to the
holder hereof), and upon (i) payment to the Company in cash, by certified or official bank check or by wire transfer of immediately available funds for the account of the Company of the Warrant
Price for the Warrant Shares specified in the Exercise Agreement or (ii) if permitted, delivery to the Company of a written notice of an election to effect a "Cashless Exercise" (as defined
below) for the Warrant Shares specified in the Exercise Agreement. The Warrant Shares so purchased shall be deemed to be issued to the holder hereof or such holder's designee, as the record owner of
such shares, as of the close of business on the date on which the completed Exercise Agreement shall have been delivered to the Company (or such later date as may be specified in the Exercise
Agreement). Certificates for the Warrant Shares so purchased, representing the aggregate number of shares specified in the Exercise Agreement, shall be delivered to the holder hereof within a
reasonable time, not exceeding three (3) business days, after this Warrant shall have been so exercised. The certificates so delivered shall be in such denominations as may be requested by the
holder hereof and shall be registered in the name of such holder or such other name as shall be designated by such holder. If this Warrant shall have been exercised only in part, then, unless this
Warrant has expired, the Company shall (subject to Section 3(b) below), at its expense, at the time of delivery of such certificates, deliver to the holder 

 

a
new Warrant representing the number of shares with respect to which this Warrant shall not then have been exercised. 

        As
used herein, "business day" shall mean any day other than a Saturday, Sunday or a day on which commercial banks in the cities of New York, New York or Edmonton, Alberta are authorized
or required by law or executive order to remain closed. 

        The
Company shall permit this Warrant to be exercised by means of a "Cashless Exercise" if and only if the Company is not able, at the time of any attempted exercise, to issue to the
Warrantholder unlegended, freely tradeable shares of Common Stock pursuant to the United States Securities Act of 1933, as amended (the "Securities Act"). To effect a "Cashless Exercise", the
Warrantholder shall indicate on the Exercise Agreement, notice of the holder's intention to do so, including a calculation of the number of shares of Common Stock to be issued upon such exercise in
accordance with the terms hereof. In the event of a Cashless Exercise, in lieu of paying the Warrant Price in cash, the holder shall surrender this Warrant or the portion thereof being exercised for
that number of shares of Common Stock determined by multiplying the number of Warrant Shares to which it would otherwise be entitled by a fraction, the numerator of which shall be the difference
between the then current Fair Market Value per share of the Common Stock and the Warrant Price, and the denominator of which shall be the then current Fair Market Value per share of the Common Stock.
For this purpose, the "Fair Market Value" of the Common Stock shall be the closing price of the Common Stock as reported by the Nasdaq Stock Market (or other exchange or market on which the Common
Stock is principally traded) on the trading day immediately preceding the date of the Exercise Agreement. 

        (b)    Book-Entry.    Notwithstanding anything to the contrary set forth herein, upon exercise of any
portion of this Warrant in accordance with the terms hereof, the Warrantholder shall not be required to physically surrender this Warrant to the Company unless such holder is purchasing the full
amount of Warrant Shares represented by this Warrant. The Warrantholder and the Company shall maintain records showing the number of Warrant Shares so purchased hereunder and the dates of such
purchases or shall use such other method, reasonably satisfactory to the Warrantholder and the Company, so as not to require physical surrender of this Warrant upon each such exercise. The
Warrantholder and any assignee, by acceptance of this Warrant or a new Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following exercise of any portion of this
Warrant, the number of Warrant Shares which may be purchased upon exercise of this Warrant may be less than the number of Warrant Shares set forth on the face hereof. 

        Section 4.    Intentionally Omitted.    

        Section 5.    Payment of Taxes.    The Company will pay any documentary stamp taxes attributable to the initial
issuance of Warrant Shares issuable upon the exercise of the Warrant; provided, however, that the Company shall not be required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for Warrant Shares in a name other than that of the registered holder of this Warrant in respect of which such shares are issued. The holder
shall be responsible for income taxes due under federal or state law, if any such tax is due. 

        Section 6.    Mutilated or Missing Warrants.    In case this Warrant shall be mutilated, lost, stolen, or
destroyed, the Company shall issue in exchange and substitution of and upon cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant lost, stolen or destroyed, a new
Warrant of like tenor and for the purchase of a like number of Warrant Shares, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction of the
Warrant, and with respect to a lost, stolen or destroyed Warrant, reasonable indemnity or bond with respect thereto, if reasonably requested by the Company. 

2

 

        Section 7.    Reservation of Common Stock.    The Company hereby represents and warrants that there have been
reserved, and the Company shall at all applicable times keep reserved, out of the authorized and unissued Common Stock, a number of shares sufficient to provide for the exercise of the rights of
purchase represented by the Warrant in full (without regard to any restrictions on beneficial ownership contained herein), and the transfer agent for the Common Stock, including every subsequent
transfer agent for the Common Stock or other shares of the Company's capital stock issuable upon the exercise of any of the right of purchase aforesaid ("Transfer Agent"), shall be irrevocably
authorized and directed at all times to reserve such number of authorized and unissued shares of Common Stock as shall be requisite for such purpose. The Company agrees that all Warrant Shares issued
upon exercise of the Warrant in accordance with its terms shall be, at the time of delivery of the certificates for such Warrant Shares, duly authorized, validly issued, fully paid and
non-assessable shares of Common Stock of the Company. The Company will keep a conformed copy of this Warrant on file with its Transfer Agent. The Company will supply from time to time the
Transfer Agent with duly executed stock certificates required to honor the outstanding Warrant. 

        Section 8.    Warrant Price.    The Warrant Price, subject to adjustment as provided in Section 9,
shall, except for a cashless exercise if otherwise permitted, be payable in lawful money of the United States of America. 

        Section 9.    Adjustments.    Subject and pursuant to the provisions of this Section 9, the Warrant
Price and number of Warrant Shares subject to this Warrant shall be subject to adjustment from time to time as set forth hereinafter. 

        (a)   If
the Company or any of its subsidiaries shall at any time or from time to time while the Warrant is outstanding, pay a dividend or make a distribution on its capital
stock in shares of Common Stock, subdivide its outstanding shares of Common Stock into a greater number of shares or combine its outstanding shares into a smaller number of shares or issue by
reclassification of its outstanding shares of Common Stock any shares of its capital stock (including any such reclassification in connection with a consolidation or merger in which the Company is the
continuing corporation), then the number of Warrant Shares purchasable upon exercise of the Warrant and the Warrant Price in effect immediately prior to the date upon which such change shall become
effective, shall be adjusted by the Company so that the Warrantholder thereafter exercising the Warrant shall be entitled to receive the number of shares of Common Stock or other capital stock which
the Warrantholder would have received if the
Warrant had been exercised immediately prior to such event. Such adjustment shall be made successively whenever any event listed above shall occur. 

        (b)   If,
at any time while this Warrant is outstanding, (A) the Company effects any merger or consolidation of the Company with or into another person, (B) the
Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another Person)
is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company effects any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (each, a "Fundamental
Transaction"), then, upon any subsequent exercise of this Warrant, the Warrantholder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise
immediately prior to the occurrence of such Fundamental Transaction, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration (the "Alternate Consideration") receivable as a result of such merger, consolidation or disposition of assets by a Warrantholder of the number of shares
of Common Stock for which this Warrant is exercisable immediately prior to such event. For purposes of any such exercise, the determination of the Warrant Price shall be appropriately adjusted to
apply to 

3

 

such
Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the
Warrant Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given
any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Warrantholder shall be given the same choice as to the Alternate Consideration it receives upon
any exercise of this Warrant following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such
Fundamental Transaction shall issue to the Warrantholder a new warrant consistent with the foregoing provisions and evidencing the Warrantholder's right to exercise such warrant into Alternate
Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of
this Section 9(b) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.
Notwithstanding anything to the contrary, in the event of a Fundamental Transaction that is (1) a transaction where the consideration paid to the holders of the Common Stock consists of cash,
(2) a "Rule 13e-3 transaction" as defined in Rule 13e-3 under the Securities Exchange Act of 1934, as amended, or (3) a Fundamental Transaction
involving a person or entity not traded on a national securities exchange, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market (collectively a "Black-Scholes Takeout
Event"), if (A) the consideration per share of Common Stock in any Black-Scholes Takeout Event (the "Takeout Event Price") is equal to or less than the Warrant Price then in effect, then,
immediately prior to the date of consummation of any such Black-Scholes Takeout Event, the Warrant Price shall be decreased to an amount equal to (1) the Takeout Event Price minus (2)(a) the
value of this Warrant as determined in accordance with the Black-Scholes option pricing model using an expected volatility equal to the 100 day historical price volatility obtained from the HVT
function on Bloomberg L.P. as of the trading day immediately prior to the public announcement of the Fundamental Transaction divided by (b) the number of Warrant Shares for which this Warrant
is then exercisable (the "Per Warrant Black-Scholes Value"), or (B) the Takeout Event Price is greater than the Warrant Price then in effect, then this Warrant shall become exercisable,
immediately prior to the date of consummation of any such Black-Scholes Takeout Event, for an additional number of shares of Common Stock ("Additional Warrant Shares") as determined according to the
following formula:

	Additional Warrant Shares = Warrant Shares	 	x	 	Per Warrant Black Scholes Value—

(Takeout Event Price—Warrant Price)
 Takeout Event Price—Warrant Price

        (c)   Intentionally
Omitted. 

        (d)   Intentionally
Omitted. 

        (e)   An
adjustment shall become effective immediately after the record date in the case of each dividend or distribution and immediately after the effective date of each
other event which requires an adjustment. 

        (f)    In
the event that, as a result of an adjustment made pursuant to Section 9, the holder of this Warrant shall become entitled to receive any shares of capital
stock of the Company other than shares of Common Stock, the number of such other shares so receivable upon exercise of this Warrant shall be subject thereafter to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with respect to the Warrant Shares contained in this Warrant. 

4

 

        (g)   In
the event of any adjustment in the Warrant Price hereunder, the number of Warrant Shares issuable hereunder under exercise shall be inversely proportionately
increased or decreased, as the case may be, such that the aggregate purchase price for Warrant Shares upon full exercise of this Warrant shall remain the same. Similarly, in the event of any
adjustment in the number of Warrant Shares issuable hereunder upon exercise, the Warrant Price shall be inversely proportionately increased or decreased, as the case may be, such that the aggregate
purchase price for Warrant Shares upon full exercise of this Warrant shall remain the same. 

        Section 10.    Fractional Interest.    The Company shall not be required to issue fractions of Warrant Shares
upon the exercise of the Warrant. If any fraction of a Warrant Share would, except for the provisions of
this Section, be issuable upon the exercise of the Warrant (or specified portions thereof), the Company shall round such calculation to the nearest whole number and disregard the fraction. 

        Section 11.    Benefits.    Nothing in this Warrant shall be construed to give any person, firm or corporation
(other than the Company and the Warrantholder) any legal or equitable right, remedy or claim, it being agreed that this Warrant shall be for the sole and exclusive benefit of the Company and the
Warrantholder. 

        Section 12.    Notices to Warrantholder.    Upon the happening of any event requiring an adjustment of the
Warrant Price, the Company shall forthwith give written notice thereof to the Warrantholder at the address appearing in the records of the Company, stating the adjusted Warrant Price and the adjusted
number of Warrant Shares resulting from such event and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. In the event of a dispute with
respect to any such calculation, the certificate of the Company's independent auditors shall be conclusive evidence of the correctness of any computation made, absent manifest error. Failure to give
such notice to the Warrantholder or any defect therein shall not affect the legality or validity of the subject adjustment. At the Warrantholder's request, the Company shall deliver to the
Warrantholder as of a requested date a notice specifying the Warrant Price and the number of Warrant Shares into which this Warrant is exercisable as of such date. 

        Section 13.    Identity of Transfer Agent.    The initial Transfer Agent for the Common Stock is: 

Computershare
Trust Inc.

12039 West Alameda Parkway

Suite Z-2

Lakewood, CO 80228

Phone: (303) 984-4100

Fax: (303) 984-4110 

        Forthwith
upon the appointment of any subsequent transfer agent for the Common Stock or other shares of the Company's capital stock issuable upon the exercise of the rights of purchase
represented by the Warrant, the Company will fax to the Warrantholder a statement setting forth the name and address of such transfer agent. 

        Section 14.    Notices.    Any notice pursuant hereto to be given or made by the Warrantholder to or on behalf
of the Company shall be sufficiently given or made if delivered personally or by facsimile or if sent by an internationally recognized courier, addressed as follows: 

Biomira Inc.

Edmonton Research Park

2011-94th Street

Edmonton, Alberta T6N 1H1

Telephone: (780) 490-2806

Fax: (780) (780) 450-4772

Attention: Edward A. Taylor, Chief Financial Officer 

5

 

or
such other address as the Company may specify in writing by notice to the Warrantholder complying as to delivery with the terms of this Section 14. 

        Any
notice pursuant hereto to be given or made by the Company to or on the Warrantholder shall be sufficiently given or made if personally delivered or if sent by an internationally
recognized courier service by overnight or two-day service, to the address set forth on the books of the Company or, as to each of the Company and the Warrantholder, at such other address
as shall be designated by such party by written notice to the other party complying as to delivery with the terms of this Section 14. 

        All
such notices, requests, demands, directions and other communications shall, when sent by courier, be effective two (2) days after delivery to such courier as provided and
addressed as aforesaid. All faxes shall be effective upon receipt. 

        Section 15.    Intentionally Omitted.    

        Section 16.    Successors.    All the covenants and provisions hereof by or for the benefit of the
Warrantholder shall bind and inure to the benefit of its respective successors and assigns hereunder. 

        Section 17.    Governing Law.    This Warrant shall be deemed to be a contract made under the laws of the
Province of Alberta, without giving effect to its conflict of law principles, and for all purposes shall be construed in accordance with the laws of said Province. 

        Section 18.    9.9% and 19.9% Limitations.    

        (a)   Notwithstanding
anything to the contrary contained herein, the number of shares of Common Stock that the Warrantholder shall have the right to acquire upon exercise
pursuant to the terms hereof shall not exceed a number that, when added to the total number of shares of Common Stock deemed beneficially owned by such holder at such time (other than by virtue of the
ownership of convertible securities or rights to acquire securities (including the Warrant Shares) that have limitations on the holder's right to convert, exercise or purchase similar to the
limitation set forth herein), together with all shares of Common Stock deemed beneficially owned (other than by virtue of the ownership of convertible securities or rights to acquire securities that
have limitations on the right to convert, exercise or purchase similar to the limitation set forth herein) by the Warrantholder's "affiliates" at such time (as defined in Rule 144 of the Act)
("Aggregation Parties") that would be aggregated for purposes of determining whether a group under Section 13(d) of the Securities Exchange Act of 1934, as amended
("Exchange Act"), exists, would exceed 9.9% of the total issued and outstanding shares of the Common Stock (the "Restricted
Ownership Percentage"). Each holder shall have the right (x) at any time and from time to time to reduce its Restricted Ownership Percentage immediately upon notice to
the Company in the event and only to the extent that Section 16 of the Exchange Act or the rules promulgated thereunder (or any successor statute or rules) is changed to reduce the beneficial
ownership percentage limitation thereunder from 10% and (y) (subject to waiver) at any time and from time to time, to increase its Restricted Ownership Percentage immediately upon the happening
of a change of control transaction (including without limitation a transaction that results in a transfer of more than 50% of the Company's voting power or equity, or a sale of all or substantially
all of the Company's assets, or a transaction that results in a person or "group" being deemed the beneficial owner of 50% or more of the Company's voting power or equity). 

        The
Company's obligation to issue Common Stock which would exceed such limits referred to in this Section 18 shall be suspended to the extent necessary until such time, if any, as
shares of Common Stock may be issued in compliance with such restrictions. 

        (b)   Notwithstanding
anything contained herein, in the event that the Warrantholder has timely exercised this Warrant and the issuance of all or a portion of the Warrant
Shares to be issued pursuant to such exercise would either (i) constitute a breach of the Company's obligations 

6

 

under
the rules or regulations of the Nasdaq Global Market and the Toronto Stock Exchange as they apply to the Company, or any other principal securities exchange or market ("Principal Market") upon
which the Common Stock is or becomes traded (the "Cap Regulations") or (ii) would exceed the Restricted Ownership Percentage of the Warrantholder, then the Company shall not be obligated to
issue any such Warrant Shares to the extent such shares are in excess of the maximum permissible amount under such Cap Regulations ("Excess Shares") or in excess of the Restricted Ownership
Percentage. However, if the Company, within five (5) days following any occurrence of Excess Shares, does not issue such Excess Shares to the Warrantholder, then the Company shall promptly pay
to the Purchaser, in lieu of the Purchaser's right to receive such Excess Shares, an amount of cash (in U.S. Dollars) equal to 100% of the difference between (a) the number of Excess Shares
multiplied by the closing sale price per share of Common Stock on the Principal Market on the trading day immediately preceding the date of the exercise of this Warrant, and (b) the aggregate
exercise price for such Excess Shares. 

        Section 19.    Replacement Warrants.    The Company agrees that within ten (10) business days after any
request from time to time of the Warrantholder, it shall deliver to such holder a new Warrant in substitution of this Warrant which is identical in all respects except that the then Warrant Price
shall be appropriately specified in the Warrant, and the Warrant shall specify the fixed number of Warrant Shares into which this Warrant is then exercisable. Such changes are intended not as
amendments to the Warrant but only as clarification of the foregoing numbers for convenience purposes, and such changes shall not affect any provisions concerning adjustments to the Warrant Price or
number of Warrant Shares contained herein. 

        Section 20.    Obligation to Issue Warrant Shares.    The Company's obligations to issue and deliver Warrant
Shares in accordance with the terms hereof are not subject to the taking of any action or inaction by the holder hereof to enforce the same, any waiver or consent with respect to any provision hereof,
the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the holder
hereof or any other Person of any obligation to the Company or any violation or alleged violation of law by the holder or any other Person, and irrespective of any other circumstance which might
otherwise limit such obligation of the Company to the holder hereof in connection with the issuance of Warrant Shares. The Company will at no time close its shareholder books or records in any manner
which interferes with the timely exercise of this Warrant. 

        IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed as of the date first written above. 

	 	BIOMIRA INC.
	 	 	 	 
	 	 	 	 
	 	By:	 	/s/  EDWARD A. TAYLOR      
 Name: Edward A. Taylor

Title: Vice President & CFO

7

 
 
 

Schedule 1    
    

	Warrantholder
 
	 	Warrant Shares

	AXA Framlington	 	74,074.00
	Bristol Investment Fund, Ltd.	 	111,111.00
	Cranshire Capital, L.P.	 	148,448.00
	DAFNA LifeScience Ltd.	 	333,600.00
	DAFNA LifeScience Select Ltd.	 	70,200.00
	GCA Strategic Investment Fund Limited	 	74,074.00
	Capital Ventures International	 	76,000.00
	Deerfield Special Situations Fund, L.P.	 	66,400.00
	Deerfield Special Situations Fund International	 	133,600.00
	Smithfield Fiduciary LLC	 	148,148.00
	Hudson Bay Fund LP	 	28,444.00
	Hudson Bay Overseas Fund LTD	 	30,815.00
	Iroquois Master Fund Ltd.	 	29,630.00
	James R. Davis	 	14,815.00
	JGB Capital Offshore, Ltd.	 	4,000.00
	JGB Capital L.P.	 	16,000.00
	Otago Partners, LLC	 	44,444.00
	Radcliffe SPC, Ltd.	 	148,148.00
	Truk Opportunity Fund, LLC	 	130,546.00
	Truk International Fund, LP	 	17,802.00
	Portside Growth and Opportunity Fund	 	296,296.00
	Crescent International Ltd.	 	37,037.00
	Evolution Master Fund Ltd. SPC, Segregated Portfolio M	 	74,074.00
	The Tail Wind fund Ltd.	 	44,444.00
	Rockmore Investment Master Fund, Ltd.	 	74,074.00

8

QuickLinks

BIOMIRA INC. PURCHASE WARRANT WARRANT ("WARRANT") TO PURCHASE SHARES OF COMMON STOCK, WITHOUT PAR VALUE

Schedule 1

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