Document:

EX-10.3

 Exhibit 10.3 

EXECUTION VERSION 

AGREEMENT 
 This agreement
(this “Agreement”) is made and entered into as of May 17, 2018, by and between BioDelivery Sciences International, Inc., a Delaware corporation (the “Company”), and Broadfin Healthcare Master Fund, Ltd., a Cayman
Islands exempted company (“Broadfin Healthcare”), and its affiliates (such Affiliates (as defined herein) together with Broadfin Healthcare, “Broadfin”). Each of the Company and Broadfin is referred to herein as a
“Party” and, collectively, as the “Parties”. 
 RECITALS 

WHEREAS, the Company and Broadfin have engaged in discussions regarding, among other things, the composition of the Board of Directors of the
Company (the “Board”); 
 WHEREAS, Broadfin has nominated certain individuals for election as directors at the
Company’s 2018 annual meeting of stockholders (the “2018 Annual Meeting”); 
 WHEREAS, as of the date of this
Agreement (prior to the consummation of the Financing (as defined below)), Broadfin beneficially owns (as determined under Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) 4,278,819 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), constituting approximately 7.3% of the Common Stock issued and
outstanding; 
 WHEREAS, simultaneously with the execution of this Agreement, each of Thomas W. D’Alonzo, Barry I. Feinberg, Samuel P.
Sears, Jr. and Timothy C. Tyson (collectively, the “Resigning Directors”) has entered into a Retirement Agreement in the form attached hereto as Exhibit A (collectively, the “Retirement Agreements”),
providing for, among other things, his irrevocable resignation from the Board, certain compensation terms and non-disparagement and release of claims provisions with respect to the Company and Broadfin, each
effective subject to and contingent on the closing of the Financing (as defined below) (the “Closing”); 
 WHEREAS,
simultaneously with their entry into this Agreement, the Company and Broadfin are entering into a Securities Purchase Agreement (the “Purchase Agreement”) pursuant to which Broadfin and certain other institutional investors named
therein will agree to acquire shares of Series B Preferred Stock of the Company in an equity financing (the “Financing”); and 

WHEREAS, in connection with the Purchase Agreement, the Parties jointly desire to come to an agreement with respect to the composition of the
Board and certain other matters as provided in this Agreement, effective subject to and contingent on the Closing. 
 NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties, intending to be legally bound, agree
as follows: 
  

 EXECUTION VERSION 

 

 1.    Effectiveness; Board Appointments and Related Agreements.

 (a)    The Parties expressly agree that each of the transactions and actions contemplated by this Agreement shall be
effective subject to and contingent on the Closing, and shall occur simultaneously with the Closing (the “Effective Time”) except as specifically provided herein. 

(b)    Board Appointments. 

(i)    The Company agrees that, simultaneously with the execution of this Agreement, the Board and all applicable
committees of the Board shall take all necessary actions to, as of the Effective Time (A) cause each of the Resigning Directors to resign from the Board in accordance with the Retirement Agreements, (B) appoint to the Board the following
three (3) new directors – Kevin Kotler as a Class II director with a term expiring at the Company’s 2019 annual meeting of stockholders (the “2019 Annual Meeting”), and each of Todd C. Davis and Peter S.
Greenleaf as Class I directors with terms expiring at the 2018 Annual Meeting (Messrs. Kotler, Davis and Greenleaf, each a “Broadfin Director”, and collectively, the “Broadfin Directors”), and (C) set the
size of the Board at seven (7) directors. 
 (ii)    The Company will nominate and support the election of Messrs.
Davis and Greenleaf (or any applicable Broadfin Replacement Director (as defined below)) as Class I directors (the “2018 Nominees”) at the 2018 Annual Meeting, and will nominate and support the election of any other Broadfin
Director(s) at any other stockholder meeting that may be held during the Standstill Period (as defined below), as applicable. 

(iii)    If any Broadfin Director (or any Broadfin Replacement Director) is unable or unwilling to serve as a director,
resigns as a director, is removed as a director or ceases to serve as a director for any reason prior to the expiration of the Standstill Period, and at such time Broadfin beneficially owns (as determined under Rule
13d-3 promulgated under the Exchange Act) at least the lesser of (x) 2.0% of the Company’s then outstanding Common Stock (calculated on an as converted into Common Stock basis, assuming full conversion of
all outstanding shares of the Company’s Series A Non-Voting Convertible Preferred Stock and Series B Non-Voting Convertible Preferred Stock), and (y) 2.0% of the
Common Stock outstanding at the Closing (calculated on an as converted into Common Stock basis, assuming full conversion of all outstanding shares of the Company’s Series A Non-Voting Convertible
Preferred Stock and Series B Non-Voting Convertible Preferred Stock, and subject to adjustment for stock splits, reclassifications, combinations and similar adjustments) (such lesser amount, the
“Minimum Ownership Threshold”), Broadfin shall have the ability to recommend a substitute person(s) for appointment to the Board (any such replacement nominee, a “Broadfin Replacement Director”). Any Broadfin
Replacement Director must qualify as “independent” pursuant to Nasdaq listing standards and satisfy the Company’s publicly disclosed guidelines and policies with respect to service on the Board. Subject to the approval of the
Nominating and Corporate Governance Committee of the Board, not to be unreasonably withheld, delayed or conditioned, the Board shall appoint any such Broadfin Replacement Director to the Board to serve the unexpired term of the departed Broadfin
Director, and such replacement shall be considered a Broadfin Director for all purposes of this Agreement; provided, however, that only one (1) Broadfin Director serving on the Board at any time can be an employee or Affiliate of
Broadfin Healthcare, or otherwise fail to be independent of Broadfin. 

  
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 EXECUTION VERSION 

 

 (iv)    During the period commencing at the Effective Time through the
expiration or termination of the Standstill Period, the Board and all applicable committees of the Board shall take all necessary actions (including with respect to nominations for election at the 2018 Annual Meeting) to fix the size of the Board at
seven (7) directors, unless Broadfin Healthcare consents in writing to otherwise alter the size of the Board. 

(v)    The Board shall give the Broadfin Directors the same due consideration for membership to any committee of the
Board as any other independent director. Additionally, subject to Nasdaq rules and applicable laws, rules and regulations, the Board and all applicable committees of the Board shall take all necessary actions to ensure that, during the Standstill
Period, each committee of the Board, including any new committee(s) that may be established, shall include at least one (1) Broadfin Director; provided, however, that Mr. Kotler shall not (A) serve on the Audit Committee
of the Board if, in the determination of the Board after consultation with counsel to the Company, such service would violate applicable laws, rules or regulations and (B) simultaneously serve on each and every committee of the Board (provided,
that Mr. Kotler and each other Broadfin Director shall be invited to participate in each regular meeting of each Board committee). 

(vi)    During the Standstill Period, if at any time none of the Broadfin Directors serving on the Board is an employee
or Affiliate of Broadfin Healthcare, or otherwise fail to be independent of Broadfin, and at such time Broadfin’s beneficial ownership of Common Stock (calculated on an as converted into Common Stock basis, assuming full conversion of all
outstanding shares of the Company’s Series A Non-Voting Convertible Preferred Stock and Series B Non-Voting Convertible Preferred Stock) is no less than the Minimum
Ownership Threshold, Broadfin will have the right to select and appoint an observer to the Board and the committees thereof (the “Observer”) who shall receive copies of all documents distributed to the Board and the committees
thereof, including notice of all meetings thereof, all written consents executed thereby, all materials prepared for consideration at any meeting thereof, and all minutes related to each meeting thereof contemporaneous with their distribution to the
Board or any committee; provided, however, the Company shall not provide the Observer with any material, nonpublic information about the Company unless, in advance of the delivery of such information, Broadfin Healthcare
(x) consents to the Observer’s receipt of such information and (y) enters into a customary confidentiality agreement in the form substantially similar to that utilized by the Company for third party consultants and reasonably
acceptable to Broadfin. The Observer shall be permitted to attend and reasonably participate, but not vote, at all meetings of the Board and the committees thereof (whether such meetings are held in person, telephonically or otherwise).
Notwithstanding the foregoing, the Company reserves the right to exclude the Observer from access to any material or meeting or portion thereof if, and only to the extent that, the Board determines reasonably and in good faith that such exclusion is
necessary to preserve the attorney-client privilege. It is understood by the Parties that at such time that Broadfin’s beneficial ownership of Common Stock is less than the Minimum Ownership Threshold, Broadfin and the Observer shall no longer
be entitled to exercise any of the rights enumerated in this Section 1(b)(vi), including, without limitation, attendance and participation at any and all meetings of the Board and the committees thereof or the receipt of copies of any and all
documents distributed to the Board and the committees in connection with such meetings or otherwise. 

  
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 EXECUTION VERSION 

 

 (c)    2018 Annual Meeting. 

(i)    The Company agrees to hold the 2018 Annual Meeting no later than seventy-five (75) days after the date hereof.

 (ii)    As of the Effective Time, Broadfin hereby (A) irrevocably withdraws the notice of stockholder
nomination of individuals for election as directors at the 2018 Annual Meeting submitted to the Company on April 27, 2018, and (B) irrevocably withdraws any related materials or notices submitted to the Company in connection therewith.

 (d)    Additional Agreements. 

(i)    Each Party will cause each of its Affiliates and Associates to comply with the terms of this Agreement and will be
responsible for any breach of this Agreement by any such Affiliate or Associate. As used in this Agreement, the terms “Affiliate” and “Associate” shall have the respective meanings set forth in Rule
12b-2 promulgated under the Exchange Act, and include all persons or entities that at any time during the term of this Agreement become Affiliates or Associates of any person or entity referred to in this
Agreement. 
 (ii)    Upon the Effective Time, except as provided herein, Broadfin will not, and will not permit any of
its Associates to, directly or indirectly, (A) nominate or recommend for nomination any person for election at the 2018 Annual Meeting, (B) submit any proposal for consideration at, or bring any other business before, the 2018 Annual
Meeting, or (C) initiate, encourage or participate in any “vote no,” “withhold” or similar campaign with respect to the 2018 Annual Meeting. Broadfin will not publicly or privately encourage or support any other stockholder,
person or entity to take any of the actions described in this Section 1(d)(ii). 
 (iii)    Broadfin will appear
in person or by proxy at the 2018 Annual Meeting and will cause all shares of Common Stock that it beneficially owns as of the record date for the 2018 Annual Meeting (which may include shares of preferred stock) to be voted at the 2018 Annual
Meeting in favor of the election of the 2018 Nominees and otherwise in accordance with the recommendations of the Board, to the extent permissible under Nasdaq rules. 

(iv)    Each Broadfin Director shall adhere to and act as necessary to be in compliance with all Company policies
generally applicable to the Company’s independent directors, including but not limited to policies related to insider trading and securities law compliance. 

  
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 EXECUTION VERSION 

 

 2.    Standstill Provisions. Broadfin agrees that, from the
Effective Time through the thirtieth (30th) calendar day prior to the deadline for stockholder nominations for the 2019 Annual Meeting (the “Standstill Period”), neither it nor any of its Associates will, and it will cause each of
its Associates not to, directly or indirectly, in any manner: 
 (i)    engage in any solicitation of proxies or
consents or become a “participant” in a “solicitation” (as such terms are defined in Regulation 14A under the Exchange Act) of proxies or consents (including, without limitation, any solicitation of consents that seeks to call a
special meeting of stockholders), in each case, with respect to securities of the Company; 
 (ii)    form, join or in
any way participate in any “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to the Common Stock (other than a “group” that is comprised of all or some of the entities and persons identified
as “Reporting Persons” in Broadfin’s Schedule 13D filed with respect to the Common Stock, as amended); provided, however, that nothing herein shall limit the ability of an Affiliate of Broadfin Healthcare to join a
“group” with Broadfin following the execution of this Agreement, so long as any such Affiliate agrees to be bound by the terms and conditions of this Agreement; 

(iii)    deposit any Common Stock or other voting securities of the Company in any voting trust or subject any such
securities to any arrangement or agreement with respect to the voting of any such securities, other than any such voting trust, arrangement or agreement solely among the members of Broadfin and otherwise in accordance with this Agreement; 

(iv)    seek or submit, or encourage any person or entity to seek or submit, nomination(s) in furtherance of a
“contested solicitation” for the appointment, election or removal of directors with respect to the Company or seek, encourage or take any other action with respect to the appointment, election or removal of any directors; provided,
however, that nothing in this Agreement shall prevent Broadfin or its Associates from taking actions in furtherance of identifying director candidates in connection with the 2019 Annual Meeting, so long as such actions do not create a public
disclosure obligation for Broadfin or the Company, and are undertaken on a basis reasonably designed to be confidential and in accordance in all material respects with Broadfin’s normal practices; 

(v)    (A) make any proposal for consideration by stockholders at any annual or special meeting of stockholders of the
Company, (B) make any offer or proposal (with or without conditions) with respect to any merger, acquisition, recapitalization, restructuring, disposition or other business combination involving Broadfin Healthcare or any of its Affiliates and
the Company, (C) affirmatively solicit a third party, on an unsolicited basis, to make an offer or proposal (with or without conditions) with respect to any merger, acquisition, recapitalization, restructuring, disposition or other business
combination involving the Company, or publicly encourage or support any third party in making such an offer or proposal, (D) publicly comment on any third party proposal regarding any merger, acquisition, recapitalization, restructuring,
disposition, or other business combination with respect to the Company by such third party prior to such proposal becoming public or (E) call or seek to call a special meeting of stockholders; 

  
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 EXECUTION VERSION 

 

 (vi)    seek, alone or in concert with others, representation on the
Board, except as specifically permitted in Section 1; 
 (vii)    advise, encourage, support or influence any
person or entity with respect to the voting or disposition of any securities of the Company at any annual or special meeting of stockholders, except in accordance with Section 1; 

(viii)    make any public proposal, alone or in concert with others, to amend any provision of the Company’s
certificate of incorporation or bylaws; 
 (ix)    demand an inspection of the Company’s books and records under
Section 220 of the General Corporation Law of the State of Delaware or other statutory or regulatory provisions providing for stockholder access to books and records; or 

(x)    make any request or submit any proposal to amend the terms of this Agreement other than through non-public communications with the Company that would not be reasonably determined to trigger public disclosure obligations for any Party; 

provided that the restrictions in this Section 2(a) will terminate automatically upon the earlier of: (x) as a
non-exclusive remedy for any material breach of this Agreement (including, without limitation, a failure to appoint a Broadfin Replacement Director in accordance with Section 1(b)(iii) or any breach of
Section 11), upon five (5) business days’ prior written notice by Broadfin to the Company following such breach, if such breach has not been cured within such notice period; provided, further, that Broadfin is not in
material breach of this Agreement at the time such notice is given; and (y) such time as the Company files with the Securities and Exchange Commission (the “SEC”) or delivers to its stockholders any preliminary proxy statement,
definitive proxy statement or other proxy materials in connection with the 2018 Annual Meeting that is inconsistent with the terms of this Agreement or the Purchase Agreement. 

(b)    Except as expressly provided in Section 1 or Section 2(a), Broadfin shall be entitled to (i) vote
the Company stock that it beneficially owns as Broadfin determines in its sole discretion and (ii) disclose, publicly or otherwise, how it intends to vote or act with respect to any securities of the Company, any stockholder proposal or other
matter to be voted on by the stockholders of the Company and the reasons therefor (in each case, subject to Section 1(d)(iii)). 

(c)    Nothing in this Section 2 shall be deemed to limit the exercise in good faith by a Broadfin Director of his or
her fiduciary duties solely in his or her capacity as a director of the Company and in a manner consistent with such person’s and Broadfin’s obligations under this Agreement. 

3.    Representations and Warranties of the Company. The Company represents and warrants to Broadfin that
(a) the Company has the corporate power and authority to execute this Agreement and to bind it hereto, (b) this Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding
obligation and agreement of the Company, and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or
similar laws generally affecting the rights 

  
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 EXECUTION VERSION 

 

 
of creditors and subject to general equity principles, (c) the execution, delivery and performance of this Agreement by the Company does not and will not (i) violate or conflict with
any law, rule, regulation, order, judgment or decree applicable to the Company, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both would constitute such a breach,
violation or default) under or pursuant to, or result in the loss of a material benefit under, or give rise to any right of termination, amendment, acceleration or cancellation under, any organizational document or any agreement or instrument to
which the Company is a party or by which it is bound, including but not limited to giving rise to any “Change of Control” or “Change in Control” under any Company plan, agreement or instrument. 

4.    Representations and Warranties of Broadfin. Broadfin represents and warrants to the Company that
(a) Broadfin has the corporate power and authority to execute this Agreement and to bind it hereto, (b) this Agreement has been duly and validly authorized, executed and delivered by Broadfin, constitutes a valid and binding obligation and
agreement of Broadfin, and is enforceable against Broadfin in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally
affecting the rights of creditors and subject to general equity principles, (c) the execution, delivery and performance of this Agreement by Broadfin does not and will not (i) violate or conflict with any law, rule, regulation, order,
judgment or decree applicable to Broadfin, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both would constitute such a breach, violation or default) under or pursuant to,
or result in the loss of a material benefit under, or give rise to any right of termination, amendment, acceleration or cancellation under, any organizational document or any agreement or instrument to which Broadfin is a party or by which it is
bound and (d) as of the date of this Agreement (prior to the consummation of the Financing), Broadfin beneficially owns 4,278,819 shares of Common Stock. 

5.    Press Release. Within twenty-four (24) hours following the execution of this Agreement, the Company and
Broadfin shall jointly issue a mutually agreeable press release (the “Press Release”) announcing certain terms of this Agreement in the form attached hereto as Exhibit B. Prior to the issuance of the Press Release and subject
to the terms of this Agreement, neither the Company (including the Board and any committee thereof) nor Broadfin shall issue any press release or make public announcement regarding this Agreement or the matters contemplated hereby without the prior
written consent of the other Party. During the Standstill Period, neither the Company nor Broadfin shall make any public announcement or statement that is inconsistent with or contrary to the terms of this Agreement. 

6.    Specific Performance. Each of Broadfin, on the one hand, and the Company, on the other hand, acknowledges and
agrees that irreparable injury to the other Party hereto would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that such injury would not be
adequately compensable by the remedies available at law (including the payment of money damages). It is accordingly agreed that Broadfin, on the one hand, and the Company, on the other hand (the “Moving Party”), shall each be
entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof, and the other Party hereto will not take action, directly or indirectly, in opposition to the Moving Party seeking such relief on the grounds
that any other remedy or relief is available at law or in equity. This Section 6 is not the exclusive remedy for any violation of this Agreement. 

  
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 EXECUTION VERSION 

 

 7.    Expenses. The Company shall reimburse Broadfin for its
reasonable, documented out-of-pocket fees and expenses (including legal and administrative costs and expenses) incurred through the Closing in connection with
Broadfin’s involvement at the Company, Broadfin’s director nominations and the appointment of the Broadfin Directors to the Board, including, but not limited to its Schedule 13D filings and the negotiation and execution of this Agreement.
Such reimbursement shall be made only upon submission by Broadfin to the Company of reasonable documentation evidencing such out-of-pocket fees and expenses for which
Broadfin is seeking reimbursement. 
 8.    Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected,
impaired or invalidated. It is hereby stipulated and declared to be the intention of the Parties that the Parties would have executed the remaining terms, provisions, covenants and restrictions without including any of such which may be hereafter
declared invalid, void or unenforceable. In addition, the Parties agree to use their best efforts to agree upon and substitute a valid and enforceable term, provision, covenant or restriction for any of such that is held invalid, void or enforceable
by a court of competent jurisdiction. 
 9.    Notices. Any notices, consents, determinations, waivers or other
communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; (b) upon receipt, when sent by facsimile
(provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending Party); (c) upon confirmation of receipt, when sent by email (provided such confirmation is not automatically generated); or
(d) one (1) business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the Party to receive the same. The addresses and facsimile numbers for such communications shall be: 

If to the Company: 
 BioDelivery
Sciences International, Inc. 
 131 ParkLake Ave., Suite 225 

Raleigh, North Carolina 27612 

Attention:        Ernest R. De Paolantonio 

Chief Financial Officer, Treasurer and Secretary 

Facsimile:        (919) 582-9051 

E-mail:             ernied@bdsi.com

  
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 EXECUTION VERSION 

 

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

Ellenoff Grossman & Schole LLP 

1345 Avenue of the Americas, 11th Floor 

New York, New York 10105 

Attention:         Barry I. Grossman, Esq. 

Facsimile:        (646) 895-7204 

E-mail:             bigrossman@egsllp.com

 If to Broadfin or any member thereof: 

Broadfin Capital, LLC 
 300 Park
Avenue, 25th Floor 
 New York, New York 10022 

Attention:         Kevin Kotler 

Facsimile:         (212) 808-2464 

Email:               kevin@broadfincapital.com 

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

Olshan Frome Wolosky LLP 
 1325
Avenue of the Americas 
 New York, New York 10019 

Attention:          Steve Wolosky, Esq. 

  Kenneth Mantel, Esq. 

Facsimile:         (212) 451-2222 

Email:               swolosky@olshanlaw.com 

kmantel@olshanlaw.com 

10.    Applicable Law. This Agreement shall be governed by and construed and enforced in accordance with the laws
of the State of Delaware without reference to the conflict of laws principles thereof. Each Party irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights and obligations arising hereunder, or for
recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other Party hereto or its successors or assigns, shall be brought and determined exclusively in the Delaware
Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any federal court within the State of Delaware). Each Party
hereby irrevocably submits with regard to any such action or proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action
relating to this Agreement in any court other than the aforesaid courts. Each Party hereby irrevocably waives, and agrees not to assert in any action or proceeding with respect to this Agreement, (a) any claim that it is not personally subject
to the jurisdiction of the above-named courts for any reason, (b) any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice,
attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) to the fullest extent 

  
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 EXECUTION VERSION 

 

 
permitted by applicable legal requirements, any claim that (i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or
proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. 

11.    Mutual Non-Disparagement. Subject to applicable law, each Party
covenants and agrees that, during the Standstill Period, neither it nor any of its Affiliates, nor any of their respective principals, members, general partners, directors (or former directors, including the Resigning Directors), officers (or former
officers), employees or agents shall in any way criticize, disparage, call into disrepute or otherwise defame or slander the other Party or any of its Affiliates, or any of their respective principals, members, general partners, directors (or former
directors, including the Resigning Directors), officers (or former officers), employees or agents, in any manner that would reasonably be expected to damage the business or reputation thereof. The foregoing shall not restrict the ability of any
person or entity to comply with any subpoena or other legal process or respond to a request for information (provided that such request is not targeted at this Agreement or the other Party hereto) from any governmental authority with competent
jurisdiction over the party from whom information is sought. Mutual Releases. In consideration of the mutual agreements and covenants herein contained, as of the Effective Time, each Party knowingly and voluntarily releases and forever
discharges the other Party and its Affiliates, subsidiaries, divisions, insurers, predecessors, successors and assigns, and each of their current and former principals, members, general partners, directors (including the Resigning Directors),
officers, employees, attorneys, agents and representatives (collectively, the “Released Parties”), of and from any and all claims, known and unknown, asserted or unasserted, which any Party or its Affiliates, subsidiaries,
divisions, insurers, predecessors, successors or assigns, or any of their current or former principals, members, general partners, directors (including the Resigning Directors), officers, employees, attorneys, agents or representatives, has or may
have against any Released Parties as of the date of this Agreement, including but not limited to (a) any claims, whether statutory, common law, or otherwise; (b) any claims for breach of contract, breach of fiduciary duty, conversion,
quantum meruit, unjust enrichment, breach of oral promise, tortuous interference with business relations, injurious falsehood, defamation, and any other common law contract and tort claims; (c) any claims for attorneys’ fees, costs,
disbursements, or other expenses; and (d) any claims for damages; provided, however, this release does not include any Party’s right to enforce the terms of this Agreement. Nothing in this Agreement extinguishes any claims
any Party may have: (A) against the other Party for breach of this Agreement; or (B) against any of the Released Parties for any claims arising from events that occur following the date hereof. 

13.    Entire Agreement; Amendment and Waiver; Successors and Assigns; Third Party Beneficiaries; Term. This
Agreement, together with the Purchase Agreement, the Retirement Agreement and the other agreements contemplated thereby, contains the entire understanding of the Parties with respect to the subject matter thereof. There are no restrictions,
agreements, promises, representations, warranties, covenants or undertakings between the Parties with respect to the subject matter of this Agreement other than those expressly set forth herein or in the Purchase Agreement, the Retirement Agreement
and the other agreements contemplated thereby. No amendments or modifications of this Agreement can be made except (i) in writing signed by an authorized representative of each the Company and Broadfin and (ii) with the approval of a
majority of the disinterested directors serving on the Board (which group will include all 

  
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 EXECUTION VERSION 

 

 
Broadfin Directors who are independent of Broadfin). No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not
exclusive of any other remedies provided by law. The terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the Parties hereto and their respective successors, heirs, executors, legal
representatives, and permitted assigns. No Party shall assign this Agreement or any rights or obligations hereunder without, with respect to Broadfin, the prior written consent of the Company, and with respect to the Company, the prior written
consent of Broadfin. This Agreement is solely for the benefit of the Parties and is not enforceable by any other persons or entities. This Agreement shall terminate at the end of the Standstill Period; provided, however, that either
Party may bring an action following such termination alleging a breach of this Agreement occurring prior to the end of the Standstill Period. 

14.    Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each of the Parties and delivered to the other Party (including by means of electronic delivery or facsimile). 

[The remainder of this page intentionally left blank] 

  
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 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly
authorized signatories of the Parties as of the date hereof. 
  

			
	COMPANY:
	
	BIODELIVERY SCIENCES INTERNATIONAL, INC.
	By:	 	 /s/ Frank E. O’Donnell, Jr.

	Name:	 	Frank E. O’Donnell, Jr.
	Title:	 	Chairman of the Board

  

			
	BROADFIN:
	
	BROADFIN HEALTHCARE MASTER FUND, LTD.
		
	By:	 	 /s/ Kevin Kotler

	Name:	 	Kevin Kotler
	Title:	 	Director

 [Signature Page to Agreement] 

  
 [Signature Page to
Settlement Agreement] 

 EXHIBIT A 

Form of Retirement Agreement 

(see attached) 

  
 A-1 

 EXHIBIT B 

Press Release 
 (see
attached) 

  
 B-2EX-10.4

 Exhibit 10.4 

Execution Version 

AMENDMENT 2 TO TERM LOAN AGREEMENT 

THIS AMENDMENT 2 TO TERM LOAN AGREEMENT, dated as of May 16, 2018 (this “Amendment”) is made among BioDelivery
Sciences International, Inc. (“Borrower”), CRG Servicing LLC, as administrative agent and collateral agent (in such capacity, “Administrative Agent”) and the lenders listed on the signature pages
hereof under the heading “LENDERS” (each a “Lender” and, collectively, the “Lenders”), with respect to the Term Loan Agreement. 

RECITALS 
 WHEREAS, the
Borrower, Agent and the Lenders are parties to the Term Loan Agreement, dated as of February 21, 2017, with the Subsidiary Guarantors from time to time party thereto, as amended by Amendment 1 to Term Loan Agreement, dated as of
December 15, 2017 (collectively, the “Loan Agreement”). 
 WHEREAS, the parties hereto desire to amend each of
the Term Loan Agreement on the terms and subject to the conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual
agreements, provisions and covenants contained herein, the parties agree as follows: 
 SECTION 1.    Definitions;
Interpretation. 
 (a)    Terms Defined in Loan Agreement. All capitalized terms used in this Amendment
(including in the recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Loan Agreement. 

(b)    Interpretation. The rules of interpretation set forth in Section 1.03 of the Loan
Agreement shall be applicable to this Amendment and are incorporated herein by this reference. 
 SECTION 2.    Amendments to
Term Loan Agreement. Subject to Section 3 of this Amendment, the Loan Agreement is hereby amended as follows: 

2.1    The definition of “Interest Only Period” in Section 1.01 of the Loan Agreement
is amended and restated in its entirety as follows: 
 “Interest-Only Period” means the period from
and including the first Borrowing Date and through and including (a) the twelfth (12th) Payment Date following the first Borrowing Date or (b) so long as no Default or Event of Default has occurred and is continuing, the sixteenth (16th)
Payment Date following the first Borrowing Date. 
 2.2    The definition of “PIK Period” in
Section 1.01 of the Loan Agreement is amended and restated in its entirety as follows: 

“PIK Period” means the period beginning on the first Borrowing Date through and including the earlier
to occur of (a) the sixteenth (16) Payment Date after the first Borrowing Date), and (b) the date on which any Default 

 
shall have occurred (provided that (i) if such Default shall have been cured or waived, the PIK Period shall resume until the earlier to occur of the next Default and sixteenth (16th) Payment Date, after the first Borrowing Date). 
 2.3    Section
3.01(a) of the Loan Agreement is amended and restated in its entirety as follows: 

(a)    Repayment. During the Interest-Only Period, no scheduled payments of principal of the Loans
shall be due. Borrower agrees to repay to the Lenders the outstanding principal amount of the Loans (1) on each Payment Date occurring after the Interest-Only Period, in equal installments, or (2) if Borrower achieves a Market
Capitalization of at least $200,000,000 prior to the end of the Interest-Only Period, the Stated Maturity Date; provided that if after such achievement, Borrower’s Market Capitalization decreases to below $200,000,000 any time following the end
of the Interest-Only Period, payments of principal shall resume on the next Payment Date regardless of whether Borrower’s achieves a Market Capitalization of at least $200,000,00 thereafter. The amounts of such installments, if any, shall be
calculated by dividing (i) the sum of the aggregate principal amount of the Loans outstanding on the first day following the end of the Interest-Only Period or such next Payment Date on which payments of principal are to begin, by (ii) the
number of Payment Dates remaining prior to and including the Stated Maturity Date. 
 2.4    Clauses (b) through
(f) of Section 10.02 of the Loan Agreement are amended and restated in its entirety as follows: 

(b)    during the twelve month period beginning on January 1, 2018, of at least $40,000,000; 

(c)    during the twelve month period beginning on January 1, 2019, of at least $50,000,000; 

(d)    during the twelve month period beginning on January 1, 2020, of at least $60,000,000; 

(e)    during the twelve month period beginning on January 1, 2021, of at least $70,000,000; and 

(f)    during the twelve month period beginning on January 1, 2022, of at least $80,000,000. 

2.5    Exhibit D of the Term Loan Agreement is hereby amended and restated in its entirety as Exhibit A attached hereto.

  
 2 

 SECTION 3.    Conditions of Effectiveness. The effectiveness of
Section 2 of this Amendment shall be subject to the following conditions precedent: 

(a)    Borrower and all of the Lenders shall have duly executed and delivered this Amendment pursuant to
Section 13.04 of the Loan Agreement; provided, however, that this Amendment shall have no binding force or effect unless all conditions set forth in this Section 3 have been satisfied; 

(b)    No Default or Event of Default under the Loan Agreement shall have occurred and be continuing; 

(c)    Borrower shall have received gross cash proceeds of at least $40,000,000 from a Qualified Equity Issuance during
the period from the date hereof to 30 days after the date hereof in a single transaction or series of related transactions and have delivered to Administrative Agent evidence satisfactory to the Administrative Agent thereof; 

(d)    the Borrower shall have paid or reimbursed Lenders for Lenders’ reasonable out of pocket costs and expenses
incurred in connection with this Amendment, including Lenders’ reasonable and documented out of pocket legal fees and costs, pursuant to Section 13.03(a)(i)(z) of the Loan Agreement; and 

(e)    the Administrative Agent has confirmed to Borrower in writing of its receipt of the executed Amendment required in
Section 3(a), receipt of satisfactory evidence required by Section 3(c) and receipt of costs and expenses required by Section 3(d). 

SECTION 4.    Representations and Warranties; Reaffirmation. 

(a)    Each Obligor hereby represents and warrants to each Lender as follows: 

(i)    The Borrower has full power, authority and legal right to make and perform this Amendment. This Amendment is within
the Borrower’s corporate powers and has been duly authorized by all necessary corporate board of directors and, if required, by all necessary shareholder action. This Amendment has been duly executed and delivered by the Borrower and
constitutes a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar
laws of general applicability affecting the enforcement of creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). This
Amendment (x) does not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any third party, except for such as have been obtained or made and are in full force and effect,
(y) will not violate any applicable law or regulation or the charter, bylaws or other organizational documents of the Borrower and its Subsidiaries or any order of any Governmental Authority, other than any such violations that, individually or
in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (z) will not violate or result in an event of default under any material indenture, agreement or other instrument binding upon the Borrower and its
Subsidiaries or assets, or give rise to a right thereunder to require any payment to be made by any such Person. 

(ii)    No Default has occurred or is continuing or will result after giving effect to this Amendment. 

  
 3 

 (iii)    The representations and warranties made by or with respect to the
Borrower in Section 7 of the Loan Agreement are (A) in the case of representations qualified by “materiality,” “Material Adverse Effect” or similar language, true and correct in all respects and
(B) in the case of all other representations and warranties, true and correct in all material respects (except that the representation regarding representations and warranties that refer to a specific earlier date are true and correct on the
basis set forth above as of such earlier date), in each case taking into account any changes made to schedules updated in accordance with Section 7.21 of the Loan Agreement or attached hereto. 

(iv)    There has been no Material Adverse Effect since the date of the Loan Agreement. 

(b)    Each Obligor hereby ratifies, confirms, reaffirms, and acknowledges its obligations under the Loan Documents to
which it is a party and agrees that the Loan Documents remain in full force and effect, undiminished by this Amendment, except as expressly provided herein. The Borrower acknowledges and affirms that the
Back-End Facility Fee payable under the Fee Letter is calculated based on the principal amount of Loans advanced, which includes PIK Loans. By executing this Amendment, the Borrower acknowledges that it has
read, consulted with its attorneys regarding, and understands, this Amendment. 
 (c)    Borrower and Lenders hereby
acknowledge and agree that upon an event of an acceleration or other mandatory prepayment event, the “Redemption Date” for purposes of calculating the Prepayment Premium will be date of such acceleration or such obligation to
mandatorily prepay arose. 
 (d)    Borrower further acknowledges that the Prepayment Premium (as a component of the
Redemption Price) and the back-end facility fee specified in the Fee Letter shall be due and payable whenever so stated in the Loan Documents, or by any applicable operation of law, regardless of the
circumstances causing any related acceleration or payment prior to the Stated Maturity Date, including without limitation any Event of Default or other failure to comply with the terms of this Agreement, whether or not notice thereof has been given,
or any acceleration by, through, or on account of any bankruptcy filing. 
 (e)    The Administrative Agent and the
Lenders acknowledge that the Borrower has disclosed to them that it is contemplating a financing transaction (the “Broadfin Transaction”) consisting of an offering of Series B
Non-Voting Convertible Preferred Stock (the “Series B Stock”) with gross proceeds of at least $40 million pursuant to which Broadfin Capital LLC or its
affiliates (“Broadfin”) would participate, and in connection with which four (4) members of the Borrower’s board of directors will resign and three (3) individuals selected by Broadfin would be appointed as
members of the Borrower’s board of directors (such appointments, “Board Appointments”). The Administrative Agent and the Lenders agree that neither the acquisition by Broadfin of Series B Stock in the
Broadfin Transaction (or any acquisition of common stock by Broadfin upon conversion thereof) nor the Board Appointments, in each case if consummated, would not constitute a Change of Control for purposes of the Loan Agreement. For the avoidance of
doubt, this Section 4(e) shall not be deemed to constitute a waiver of any Change of Control arising from any events (including any acquisitions of the Borrower’s Equity Interests or any change in the members of the Borrower’s board
of directors), other than as expressly noted above in connection with the Broadfin Transaction. 

  
 4 

 SECTION 5.    GOVERNING LAW;
SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL. 

(a)    Governing Law. This Amendment and the rights and obligations of the parties hereunder shall be governed by,
and construed in accordance with, the law of the State of New York, without regard to principles of conflicts of laws that would result in the application of the laws of any other jurisdiction; provided that
Section 5-1401 of the New York General Obligations Law shall apply. 

(b)    Submission to Jurisdiction. The Borrower agrees that any suit, action or proceeding with respect to this
Amendment or any other Loan Document to which it is a party or any judgment entered by any court in respect thereof may be brought initially in the federal or state courts in Houston, Texas or in the courts of its own corporate domicile and
irrevocably submits to the non-exclusive jurisdiction of each such court for the purpose of any such suit, action, proceeding or judgment. This Section 6 is for the benefit of the
Lenders only and, as a result, no Lender shall be prevented from taking proceedings in any other courts with jurisdiction. To the extent allowed by applicable Laws, the Lenders may take concurrent proceedings in any number of jurisdictions. 

(c)    Waiver of Jury Trial. THE BORROWER AND EACH
LENDER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY SUIT,
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT,
THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 

SECTION 6.    Miscellaneous. 

(a)    No Waiver. Nothing contained herein shall be deemed to constitute a waiver of compliance with any term or
condition contained in the Loan Agreement or any of the other Loan Documents or constitute a course of conduct or dealing among the parties. Except as expressly stated herein, the Lenders reserve all rights, privileges and remedies under the Loan
Documents. Except as amended hereby, the Loan Agreement and other Loan Documents remain unmodified and in full force and effect. All references in the Loan Documents to the Loan Agreement shall be deemed to be references to the Loan Agreement as
amended hereby. 
 (b)    Severability. In case any provision of or obligation under this Amendment shall be
invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired
thereby. 
 (c)    Headings. Headings and captions used in this Amendment (including the Exhibits, Schedules and
Annexes hereto, if any) are included for convenience of reference only and shall not be given any substantive effect. 

(d)    Integration. This Amendment constitutes a Loan Document and, together with the other Loan Documents,
incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof. 

  
 5 

 (e)    Counterparts. This Amendment may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Amendment by signing any such counterpart. Signatures to this Amendment transmitted by facsimile transmission, by
electronic mail in “portable document format” (.pdf) form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper
document bearing the original signature. 
 (f)    Controlling Provisions. In the event of any inconsistencies
between the provisions of this Amendment and the provisions of any other Loan Document, the provisions of this Amendment shall govern and prevail. Except as expressly modified by this Amendment, the Loan Documents shall not be modified and shall
remain in full force and effect. 
 (g)    Notices. Agent and Lenders hereby designate that all notices,
requests, instructions, directions and other communications provided for herein and in any loan Document, shall be given or made in writing (including by telecopy) delivered to Administrative Agent or any Lender to its address specified on the
signature page hereto. 
 [Remainder of page intentionally left blank] 

  
 6 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first
above written. 
  

			
	BORROWER:
	
	BIODELIVERY SCIENCES INTERNATIONAL INC.

 
			
		
	By:	 	 /s/ Mark A. Sirgo

	Name:	 	Mark A. Sirgo Pharm. D.
	Title:	 	Vice Chairman

 
			
	
	SUBSIDIARY GUARANTORS:
	
	ARIUS PHARMACEUTICALS, INC.

 
			
		
	By:	 	 /s/ Ernest De Paolantonio

	Name:	 	Ernest De Paolantonio
	Title:	 	CFO

 
			
	
	ARIUS TWO, INC.

 
			
		
	By:	 	 Ernest De Paolantonio

	Name:	 	Ernest De Paolantonio
	Title:	 	CFO

 Signature Page to Amendment 2 to Term Loan Agreement (BDSI) 

			
	ADMINISTRATIVE AGENT:
	CRG SERVICING LLC
		
	By	 	 /s/ Nathan Hukill

		 	Nathan Hukill
		 	Authorized Signatory
	
	Address for Notices:
	1000 Main Street, Suite 2500
	Houston, TX 77002
	Attn:	 	General Counsel
	Tel.:	 	713.209.7350
	Fax:	 	713.209.7351
	Email:	 	notices@crglp.com

 LENDERS: 
  

			
	CRG ISSUER 2017-1
	        By: CRG SERVICING LLC, acting by                 power of
attorney

  

									
		 	By:	 	 /s/ Nathan Hukill
	  		  	
		 		 	Nathan Hukill	  		  	
		 		 	Authorized Signatory	  		  	

  

			
	
	Address for Notices:
	1000 Main Street, Suite 2500
	Houston, TX 77002
	Attn:	 	General Counsel
	Tel.:	 	713.209.7350
	Fax:	 	713.209.7351
	Email:	 	notices@crglp.com

  

							
	 CRG PARTNERS III – PARALLEL FUND “A”
L.P.

  

							
		 	 By CRG PARTNERS III – PARALLEL FUND

“A” GP L.P., its General Partner

		 		 	 By CRG PARTNERS III – PARALLEL FUND

“A” GP LLC, its General Partner

 

									
		 	By	 	 /s/ Nathan Hukill
	  		  	
		 		 	Nathan Hukill	  		  	
		 		 	Authorized Signatory	  		  	

  

			
	Address for Notices:
	1000 Main Street, Suite 2500
	Houston, TX 77002
	Attn:	  	General Counsel
	Tel.:	  	713.209.7350
	Fax:	  	713.209.7351
	Email:	  	notices@crglp.com

  
 Signature Page to
Amendment 2 to Term Loan Agreement (BDSI) 

							
	 CRG PARTNERS III (CAYMAN) UNLEV AIV I L.P.
	  	
		 	 By CRG PARTNERS III (CAYMAN) GP L.P.,

its General Partner
	  	
		 		 	 By CRG PARTNERS III (CAYMAN) GP LLC,

its General Partner
	  	

  

									
		 	By	 	 /s/ Nathan Hukill
	  		  	
		 		 	Nathan Hukill	  		  	
		 		 	Authorized Signatory	  		  	
		 		 		  		  	

  

							
				
	Witness:	 	  
	  		  	
				
	Name:	 	  
	  		  	

  

			
	Address for Notices:
	1000 Main Street, Suite 2500
	Houston, TX 77002
	Attn:	  	General Counsel
	Tel.:	  	713.209.7350
	Fax:	  	713.209.7351
	Email:	  	notices@crglp.com

  
 Signature Page to
Amendment 2 to Term Loan Agreement (BDSI) 

 EXHIBIT D 

TO TERM LOAN AGREEMENT 

FORM OF COMPLIANCE CERTIFICATE 

[DATE] 
 This certificate is
delivered pursuant to Section 8.01(d) of, and in connection with the consummation of the transactions contemplated in, the Term Loan Agreement, dated as of February 21, 2017 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Loan Agreement”), among Borrower, CRG Servicing LLC, as administrative agent and collateral agent (in such capacities, the “Administrative
Agent”), and the lenders and the subsidiary guarantors from time to time party thereto. Capitalized terms used herein and not otherwise defined herein are used herein as defined in the Loan Agreement. 

The undersigned, a duly authorized Responsible Officer of Borrower having the name and title set forth below under his signature, hereby
certifies, on behalf of Borrower for the benefit of the Secured Parties and pursuant to Section 8.01(d) of the Loan Agreement that such Responsible Officer of Borrower is familiar with the Loan Agreement and that, in
accordance with each of the following sections of the Loan Agreement, each of the following is true on the date hereof, both before and after giving effect to any Loan to be made on or before the date hereof: 

In accordance with Section 8.01[(a)/(b)] of the Loan Agreement, attached hereto as Annex A are the financial
statements for the [fiscal quarter/fiscal year] ended [                    ] required to be delivered pursuant to
Section 8.01[(a)/(b)] of the Loan Agreement. Such financial statements fairly present in all material respects the consolidated financial position, results of operations and cash flow of Borrower and its Subsidiaries
as at the dates indicated therein and for the periods indicated therein in accordance with GAAP [(subject to the absence of footnote disclosure and normal year-end audit adjustments)]1 [The examination by such auditors in connection with such financial statements has been made in accordance with the standards of the United States’ Public Company accounting Oversight Board (or
any successor entity).]2 
 Attached hereto as Annex B are the calculations used
to determine compliance with each financial covenant contained in Section 10 of the Loan Agreement. 
 No Default
or Event of Default is continuing as of the date hereof[, except as provided for on Annex C attached hereto, with respect to each of which Borrower proposes to take the actions set forth on Annex C]. 

As of the date hereof, the representations and warranties made by Borrower in Section 7 of the Loan Agreement
(A) in the case of representations and warranties qualified by “materiality”, “Material Adverse Effect” or “knowledge”, are true and correct in all respects and (B) in the case of all other representations and
warranties, are true and correct in all material respects, with the same force and effect as if made on and as of the date hereof (except that the representation regarding representations and warranties that refer to a specific earlier date shall be
that they were true on such earlier date)[, except as provided for on Annex D attached hereto, with respect to each of which Borrower proposes to take the actions set forth on Annex D]. 

 
  

	1 	Insert language in brackets only for quarterly certifications. 

	2 	Insert language in brackets only for annual certifications. 

 IN WITNESS WHEREOF, the undersigned has executed this certificate on the date first written
above. 
  

			
	BIODELIVERY SCIENCES INTERNATIONAL, INC.

 
			
		
	 By
	 	  

	 Name:
	 	
	 Title:
	 	

 ANNEX A TO COMPLIANCE CERTIFICATE 

Financial Statements 
 [see
attached] 

 ANNEX B TO COMPLIANCE CERTIFICATE 

Calculations of Financial Covenant Compliance 
  

					
	I.	  	Section 10.01: Minimum Liquidity	  	
	    A.	  	Amount of (i) a cash that is unencumbered by Liens (other than Liens securing the Obligations and Liens permitted pursuant to Section 9.02(j)) plus (ii) the amount of Permitted Cash Equivalent
Investments (which for greater certainty shall not include any undrawn credit lines), in each case, to the extent held in an account over which the Secured Parties have a perfected security interest.:	  	$                
			
		  	Is Line IA equal to or greater than $10,000,000	  	Yes: In compliance; No: Not in compliance
			
	II.	  	Section 10.02(a)-(e): Minimum Revenue—Subsequent Periods	  	
	    A.	  	Product Revenues during the twelve month period beginning on January 1, 2017	  	$                
			
		  	[Is line II.A equal to or greater than $30,000,000?	  	Yes: In compliance; No: Not in compliance]3
			
	    B.	  	Product Revenues during the twelve month period beginning on January 1, 2018	  	$                
			
		  	[Is line II.B equal to or greater than $40,000,000?	  	Yes: In compliance; No: Not in compliance]4
			
	    C.	  	Product Revenues during the twelve month period beginning on January 1, 2019	  	$                
			
		  	[Is line II.C equal to or greater than $50,000,000?	  	Yes: In compliance; No: Not in compliance]5
			
	    D.	  	Product Revenues during the twelve month period beginning on January 1, 2020	  	$                

  
  
  

 

	3 	Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2017 pursuant to Section 8.01(b) of the Loan Agreement. 

	4 	Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2018 pursuant to Section 8.01(b) of the Loan Agreement. 

	5 	Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2019 pursuant to Section 8.01(b) of the Loan Agreement. 

					
			
		 	[Is line II.D equal to or greater than $60,000,000?	 	 Yes: In compliance;
 No: Not
in compliance]6

			
	    E.	 	Product Revenues during the twelve month period beginning on January 1, 2021	 	$                
			
		 	[Is line II.E equal to or greater than $70,000,000?	 	 Yes: In compliance;
 No: Not
in compliance]7

			
	    F.	 	Product Revenues during the twelve month period beginning on January 1, 2021	 	$                
			
		 	[Is line II.E equal to or greater than $80,000,000?	 	 Yes: In compliance;
 No: Not
in compliance]8

  
  
  

 

	6 	Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2020 pursuant to Section 8.01(b) of the Loan Agreement. 

	7 	Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2021 pursuant to Section 8.01(b) of the Loan Agreement. 

	8 	Include bracketed entry only on the Compliance Certificate to be delivered within 90 days of the end of 2022 pursuant to Section 8.01(b) of the Loan Agreement.

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