##### 








---



##### 



TABLE OF CONTENTS
 PageARTICLE 1DefinitionsSection 1.01.
    
    Definitions
    
    
    2Section 1.02.
    
    Other Defined Terms
    
    
    9Section 1.03.
    
    Other Definitional and Interpretative Provisions
    
    
    9ARTICLE 2Rights and Obligations of the PartiesSection 2.01.
    
    Development Program
    
    
    10Section 2.02.
    
    Review Committee
    
    
    10Section 2.03.
    
    Obligations of the Parties in Respect of the Review Committee
    
    
    11Section 2.04.
    
    Responsibilities of the Review Committee
    
    
    12Section 2.05.
    
    Diligent Efforts
    
    
    12Section 2.06.
    
    Use Restrictions
    
    
    13Section 2.07.
    
    Alternative Technology
    
    
    13Section 2.08.
    
    Noncompetition
    
    
    15Section 2.09.
    
    Product Liability
    
    
    16ARTICLE 3Grant of LicenseSection 3.01.
    
    License
    
    
    16Section 3.02.
    
    Sublicense
    
    
    16Section 3.03.
    
    Additional Licenses
    
    
    16Section 3.04.
    
    Publicly Available Information
    
    
    17ARTICLE 4SupplySection 4.01.
    
    Novo Nordisk Supply Obligations
    
    
    18ARTICLE 5Royalty PaymentsSection 5.01.
    
    Royalty Payment
    
    
    18Section 5.02.
    
    Royalty Payments Schedule
    
    
    19Section 5.03.
    
    Additional Royalty Provisions
    
    
    20Section 5.04.
    
    Record Keeping
    
    
    20Section 5.05.
    
    Audit Right
    
    
    21Section 5.06.
    
    Withholding Taxes
    
    
    21Section 5.07.
    
    Currency
    
    
    21
 i




---



##### 



PageARTICLE 6Intellectual PropertySection 6.01.
    
    Aradigm Intellectual Property Rights
    
    
    22Section 6.02.
    
    Novo Nordisk Intellectual Property Rights
    
    
    22Section 6.03.
    
    Notice by Aradigm
    
    
    23Section 6.04.
    
    Notice by Novo Nordisk
    
    
    24Section 6.05.
    
    Pursuit of Patents
    
    
    25Section 6.06.
    
    License Option in Lieu of Ownership
    
    
    26ARTICLE 7Patent CooperationSection 7.01.
    
    Enforcement of Patent Rights
    
    
    27Section 7.02.
    
    Initiation of Action Relating to Patents
    
    
    27Section 7.03.
    
    Interferences
    
    
    32Section 7.04.
    
    Defense and Settlement of Third Party Patent Claims
    
    
    33Section 7.05.
    
    Sharing Of License Revenue
    
    
    34ARTICLE 8SecrecySection 8.01.
    
    Confidentiality
    
    
    34Section 8.02.
    
    Publication Planning
    
    
    36Section 8.03.
    
    Term of Confidentiality Provisions
    
    
    36ARTICLE 9NoticeSection 9.01.
    
    Notice
    
    
    36Section 9.02.
    
    Deemed Receipt of Notice
    
    
    37ARTICLE 10Term and TerminationSection 10.01.
    
    Term
    
    
    37Section 10.02.
    
    Termination by Novo Nordisk
    
    
    37Section 10.03.
    
    Termination by Aradigm
    
    
    38Section 10.04.
    
    Termination By Either Party
    
    
    38Section 10.05.
    
    Rights and Obligations of the Parties after Termination
    
    
    38Section 10.06.
    
    Additional Effects of Termination or Expiration
    
    
    45ARTICLE 11Dispute Resolution and Governing LawSection 11.01.
    
    Dispute Resolution
    
    
    45Section 11.02.
    
    Governing Law
    
    
    46
 ii




---



##### 



PageARTICLE 12MiscellaneousSection 12.01.
    
    Bankruptcy Code Considerations
    
    
    46Section 12.02.
    
    Binding Agreement
    
    
    47Section 12.03.
    
    Severability
    
    
    47Section 12.04.
    
    Amendments and Waivers
    
    
    47Section 12.05.
    
    Expenses
    
    
    47Section 12.06.
    
    Successors and Assigns
    
    
    47Section 12.07.
    
    Counterparts; Third Party Beneficiaries
    
    
    47Section 12.08.
    
    Entire Agreement
    
    
    48Appendix A
   
    
    Transferred PatentsAppendix B
    
    Transferred Selected Pulmonary Delivery Patents
 iii




---



##### 



SECOND AMENDED AND RESTATED AND LICENSE AGREEMENT
 Agreement Aradigm Novo Nordisk
 Development
and License Agreement
 Novo Nordisk Delivery
Technologies, Inc. Restructuring Agreement
 First Amended License Agreement
 U.S. Patent Assignment Non-U.S. Patent Assignment Patent Assignment
 Loan and Security Agreement




---



##### 



Definitions
 . Definitions.
  Affiliates
 Alternative Technology
 Alternative Technology Effective Date
 Alternative Technology Notice
 Aradigm Background IPR
 2




---



##### 



provided that
 Aradigm Know-How
 Aradigm New IPR provided that
 Aradigm Patent Rights
 3




---



##### 



Baselines Baseline
 Broad Regulatory Approval
 Business Day
 Co-Existence Agreement
 Development Program
 Device
 Diligent Efforts
 4




---



##### 



Field GLP
 First Marketed Product and Device
 First Marketing
 First Marketing Commencement Date
  Insulin Compound
 Insulin Compound Packaged Product
 Joint Marketing Partners
 Later Marketed Product and Device
 
 ****
    
    Certain confidential information in this document, marked by brackets, has
been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 5




---



##### 



Know-How
 Made Jointly made jointly
 Net Sales
 Novo Nordisk Affiliate Group
 Novo Nordisk Background IPR
 Novo Nordisk Know-How
 Novo Nordisk New IPR
 6




---



##### 



Novo Nordisk Patent Rights
 Original Effective Date
 Packaged Product
 Parties Party
 Patent Rights
 Person
 7




---



##### 



Program Compounds
 Regulatory Approval
 Regulatory Submission
 Stage 1 Commercialization Period
 Stage 2 Commercialization Period
 Stage 3 Commercialization Period provided that
 Status Report
 Territory
 Transaction Agreements
 Transferred Patents
 8




---



##### 



Transferred Selected Pulmonary Delivery Patents
 . Other Defined Terms.
 Term
    
    SectionAgreement
    
    RecitalsAradigm
    
    RecitalsBankruptcy Code
    
    12.01(a)Confidential Information
    
    8.01(d)Development and License Agreement
    
    RecitalsDirectly Infringing Product
    
    7.02(e)Field Claim
    
    7.02(d)Field Infringement
    
    7.04(a)First Amended License Agreement
    
    RecitalsIndependent Auditor
    
    5.05(a)Loan and Security Agreement
    
    RecitalsNon-Insulin Compound
    
    2.07(b)Non-U.S. Patent Assignment
    
    RecitalsNovo Nordisk
    
    RecitalsNovo Nordisk Delivery Technologies, Inc.
    
    RecitalsPatent Assignment
    
    RecitalsRepresentatives
    
    8.01(d)Restructuring Agreement
    
    RecitalsReview Committee
    
    2.02Royalty Paying Party
    
    5.02Royalty Receiving Party
    
    5.02substantially the same as
    
    7.02(e)U.S. Patent Assignment
    
    Recitals
 . Other Definitional and Interpretative Provisions.
 9




---



##### 



Rights and Obligations of the Parties
 . Development Program.
 . Review Committee. Review
Committee
  provided that
  10




---



##### 



. Obligations of the Parties in Respect of the Review Committee.
   11




---



##### 



. Responsibilities of the Review Committee.
        . Diligent Efforts.
     
 ****
    
    Certain confidential information in this document, marked by brackets, has
been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. 12




---



##### 



. Use Restrictions.
 . Alternative Technology.
 Non-Insulin Compound provided that
 provided that
 13




---



##### 



14




---



##### 



provided that
 . Noncompetition.
 15




---



##### 



. Product Liability.
 Grant of License
 . License.
 . Sublicense.
 . Additional Licenses.
 16




---



##### 



. Publicly Available Information.
 17




---



##### 



Supply
 . Novo Nordisk Supply Obligations.
 Royalty Payments
 . Royalty Payment.
 plus plus plus
 18




---



##### 



provided
that plus
 . Royalty Payments Schedule. Royalty Paying
Party Royalty Receiving Party
 19




---



##### 



. Additional Royalty Provisions.
   . Record Keeping.
 20




---



##### 



. Audit Right. Independent Auditor
  . Withholding Taxes.
 . Currency.
 21




---



##### 



i.e. Wall Street Journal
 Intellectual Property
 . Aradigm Intellectual Property Rights.
  . Novo Nordisk Intellectual Property Rights.
  22




---



##### 



. Notice by Aradigm.
  23




---



##### 



provided that
  . Notice by Novo Nordisk.
  24




---



##### 



provided that
  . Pursuit of Patents.
 i.e.
 25




---



##### 



. License Option in Lieu of Ownership.
 26




---



##### 



Patent Cooperation
 . Enforcement of Patent Rights.
  . Initiation of Action Relating to Patents.
 27




---



##### 



28




---



##### 



Field Claim
 29




---



##### 



Directly
Infringing Product substantially the same as substantially the same as
  30




---



##### 



31




---



##### 



e.g.
 . Interferences.
 32




---



##### 



. Defense and Settlement of Third Party Patent Claims. Field Infringement
   33




---



##### 



provided that
 . Sharing Of License Revenue.
 Secrecy
 . Confidentiality.
  34




---



##### 



provided that
    Confidential Information provided that Representatives
 35




---



##### 



. Publication Planning. provided that
 . Term of Confidentiality Provisions.
 Notice
 . Notice.
  
 36




---



##### 



. Deemed Receipt of Notice.
 Term and Termination
 . Term.
 . Termination by Novo Nordisk.
  37




---



##### 



. Termination by Aradigm. provided that
 . Termination By Either Party.
      . Rights and Obligations of the Parties after Termination. provided that
  38




---



##### 



39




---



##### 



40




---



##### 



provided that
 41




---



##### 



42




---



##### 



provided that
  43




---



##### 



provided that provided that
    
  44




---



##### 



. Additional Effects of Termination or Expiration.
 Dispute Resolution and Governing Law
 . Dispute Resolution.
    45




---



##### 



. Governing Law.
 Miscellaneous
 . Bankruptcy Code Considerations. Bankruptcy Code
  46




---



##### 



. Binding Agreement.
 . Severability.
 . Amendments and Waivers.
  . Expenses.
 . Successors and Assigns. provided that
 . Counterparts; Third Party Beneficiaries.
 47




---



##### 



. Entire Agreement.
  48




---



##### 



ARADIGM CORPORATIONBy:Name:Title:NOVO NORDISK A/SBy:Name:Title:




---



##### 



Appendix A
 Transferred Patents
 TerminalPatent
    
    Disclaimer
    
    Patents/ApplicationsNo./Application
    
    Filed As of
    
    Related by TerminalSerial No.
    
    June 30, 2006
    
    Disclaimer
  Patent No./
    
    
    
    Corresponding or RelatedSerial No.
    
    Foreign Filed
    
    Patents/Applications Filed
 [****]




---



##### 



Appendix B
 Transferred Selected Pulmonary Delivery Patents
 Patent No.