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Cardiome Pharma Corp. Permitting Automatic Securities Disposition and Purchase Plans
Date:12/21/2009

liquidity requirements or requirements for funds for personal purposes, including a home purchase, mortgage payments, vacations or university expenses for family members. In addition, Cardiome recognizes that officers or other employees may have a substantial portion of their personal net worth represented by securities of Cardiome and that directors and officers and other employees have been subject to very lengthy restrictions on their ability to effect trades in the Company's shares because of trading blackouts imposed under the Company's Disclosure Policy.

In addition to the requirements of Canadian and U.S. securities laws, in amending its Disclosure Policy Cardiome has considered and attempted to conform with various "best practices" relating to automatic securities disposition and purchase plans. Cardiome's amended Disclosure Policy contemplates that, in determining whether to clear the adoption of an automatic disposition or purchase plan, Cardiome will consider whether the plan complies with various guidelines set out in the Disclosure Policy, including the following: (i) a plan may not be adopted during a trading blackout period (and only adopted at a time when the restricted person is not in possession of material, non public information); (ii) a "cooling off" period of at least 60 days will generally be required between the adoption of a plan and the first disposition or acquisition under the plan; (iii) a plan should have a limited duration (e.g. 12-24 months); (iv) the plan must contain meaningful restrictions on the ability of the restricted person to modify or terminate the plan; (v) the restricted person should avoid complex sales formulae; (vi) the plan should generally provide for regular sales or purchases of smaller amounts (relative to a restricted person's holdings) over a period of time rather than large sales or purchases during a short period of time after adoption of the plan; and (vii) the brokerage firm should not have an esta
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SOURCE Cardiome Pharma Corp.
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