Document:

exv10w7

 

Exhibit 10.7

ARADIGM CORPORATION

EMPLOYEE STOCK PURCHASE PLAN

Adopted April 16, 1996

Approved by the Shareholders on June 5, 1996

Amended by the Board of Directors on April 7, 1998

Approved by the Shareholders on May 15, 1998

Amended by the Board of Directors on February 2, 1999

Approved by the Shareholders on May 21, 1999

Amended by the Board of Directors on April 3, 2000

Approved by the Shareholders on May 19, 2000

Amended by the Board of Directors on April 2, 2001

Approved by the Shareholders on May 18, 2001

Amended by the Board of Directors on December 17, 2001

Approved by the Shareholders on February 2, 2002

Amended by the Board of Directors on February 19, 2003

Approved by the Shareholders on May 15, 2003

Amended and Restated by the Board of Directors on March 21, 2005

Approved by the Shareholders on May 19, 2005

Amended and Restated by the Board of Directors on August 8, 2006

Termination Date: March 20, 2015

1.   Purpose. 

     (a)   The purpose of the Employee Stock Purchase Plan (the “Plan”) is to provide a means by
which employees of Aradigm Corporation, a California corporation (the “Company”), and its
Affiliates, as defined in subparagraph 1(b), which are designated as provided in subparagraph 2(b),
may be given an opportunity to purchase stock of the Company.

     (b)   The word “Affiliate” as used in the Plan means any parent corporation or subsidiary
corporation of the Company, as those terms are defined in Sections 424(e) and (f), respectively, of
the Internal Revenue Code of 1986, as amended (the “Code”).

     (c)   The Company, by means of the Plan, seeks to retain the services of its employees, to
secure and retain the services of new employees, and to provide incentives for such persons to
exert maximum efforts for the success of the Company.

     (d)   The Company intends that the rights to purchase stock of the Company granted under the
Plan be considered options issued under an “employee stock purchase plan” as that term is defined
in Section 423(b) of the Code.

2.   Administration. 

     (a)   The Plan shall be administered by the Board of Directors (the “Board”) of the Company
unless and until the Board delegates administration to a Committee, as provided in
subparagraph 2(c). Whether or not the Board has delegated administration, the Board shall have the
final power to determine all questions of policy and expediency that may arise in the
administration of the Plan.

 

 

     (b)   The Board shall have the power, subject to, and within the limitations of, the express
provisions of the Plan:

          (i)   To determine when and how rights to purchase stock of the Company shall be granted and the
provisions of each offering of such rights (which need not be identical).

          (ii)   To designate from time to time which Affiliates of the Company shall be eligible to
participate in the Plan.

          (iii)   To construe and interpret the Plan and rights granted under it, and to establish, amend
and revoke rules and regulations for its administration. The Board, in the exercise of this power,
may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent it
shall deem necessary or expedient to make the Plan fully effective.

          (iv)   To amend the Plan as provided in paragraph 13.

          (v)   Generally, to exercise such powers and to perform such acts as the Board deems necessary
or expedient to promote the best interests of the Company and its Affiliates and to carry out the
intent that the Plan be treated as an “employee stock purchase
plan” within the meaning of Section 423 of the Code.

     (c)   The Board may delegate administration of the Plan to a Committee composed of not fewer
than two (2) members of the Board (the “Committee”) constituted in accordance with the requirements
of Rule 16b-3 under the Exchange Act. If administration is delegated to a Committee, the Committee
shall have, in connection with the administration of the Plan, the powers theretofore possessed by
the Board, subject, however, to such resolutions, not inconsistent with the provisions of the Plan,
as may be adopted from time to time by the Board. The Board may abolish the Committee at any time
and revest in the Board the administration of the Plan.

3.   Shares Subject to the Plan.

     (a)   Subject to the provisions of paragraph 12 relating to adjustments upon changes in stock,
the stock that may be sold pursuant to rights granted under the Plan shall not exceed in the
aggregate one million fifty thousand (1,050,000) shares of the Company’s common stock (the “Common
Stock”). If any right granted under the Plan shall for any reason terminate without having been
exercised, the Common Stock not purchased under such right shall again become available for the
Plan.

     (b)   The stock subject to the Plan may be unissued shares or reacquired shares, bought on the
market or otherwise.

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     4.   Grant of Rights; Offering.

     The Board or the Committee may from time to time grant or provide for the grant of rights to
purchase Common Stock of the Company under the Plan to eligible employees (an “Offering”) on a date
or dates (the “Offering Date(s)”) selected by the Board or the Committee. Each Offering shall be
in such form and shall contain such terms and conditions as the Board or the Committee shall deem
appropriate, which shall comply with the requirements of Section 423(b)(5) of the Code that all
employees granted rights to purchase stock under the Plan shall have the same rights and
privileges. The terms and conditions of an Offering shall be incorporated by reference into the
Plan and treated as part of the Plan. The provisions of separate Offerings need not be identical,
but each Offering shall include (through incorporation of the provisions of this Plan by reference
in the document comprising the Offering or otherwise) the period during which the Offering shall be
effective, which period shall not exceed twenty-seven (27) months beginning with the Offering Date,
and the substance of the provisions contained in paragraphs 5 through 8, inclusive.

5.   Eligibility. 

     (a)   Rights may be granted only to employees of the Company or, as the Board or the Committee
may designate as provided in subparagraph 2(b), to employees of any Affiliate of the Company.
Except as provided in subparagraph 5(b), an employee of the Company or any Affiliate shall not be
eligible to be granted rights under the Plan, unless, on the Offering Date, such employee has been
in the employ of the Company or any Affiliate for such continuous period preceding such grant as
the Board or the Committee may require, but in no event shall the required period of continuous
employment be equal to or greater than two (2) years. In addition, unless otherwise determined by
the Board or the Committee and set forth in the terms of the applicable Offering, no employee of
the Company or any Affiliate shall be eligible to be granted rights under the Plan, unless, on the
Offering Date, such employee’s customary employment with the Company or such Affiliate is for at
least twenty (20) hours per week and at least five (5) months per calendar year.

     (b)   The Board or the Committee may provide that, each person who, during the course of an
Offering, first becomes an eligible employee of the Company or designated Affiliate will, on a date
or dates specified in the Offering which coincides with the day on which such person becomes an
eligible employee or occurs thereafter, receive a right under that Offering, which right shall
thereafter be deemed to be a part of that Offering. Such right shall have the same characteristics
as any rights originally granted under that Offering, as described herein, except that:

          (i)   the date on which such right is granted shall be the “Offering Date” of such right for all
purposes, including determination of the exercise price of such right;

          (ii)   the period of the Offering with respect to such right shall begin on its Offering Date
and end coincident with the end of such Offering; and

          (iii)   the Board or the Committee may provide that if such person first becomes an eligible
employee within a specified period of time before the end of the Offering, he or she will not
receive any right under that Offering.

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     (c)   No employee shall be eligible for the grant of any rights under the Plan if, immediately
after any such rights are granted, such employee owns stock possessing five percent (5%) or more of
the total combined voting power or value of all classes of stock of the Company or of any
Affiliate. For purposes of this subparagraph 5(c), the rules of Section 424(d) of the Code shall
apply in determining the stock ownership of any employee, and stock which such employee may
purchase under all outstanding rights and options shall be treated as stock owned by such employee.

     (d)   An eligible employee may be granted rights under the Plan only if such rights, together
with any other rights granted under “employee stock purchase plans” of the Company and any
Affiliates, as specified by Section 423(b)(8) of the Code, do not permit such employee’s rights to
purchase stock of the Company or any Affiliate to accrue at a rate which exceeds twenty five
thousand dollars ($25,000) of fair market value of such stock (determined at the time such rights
are granted) for each calendar year in which such rights are outstanding at any time.

     (e)   Officers of the Company and any designated Affiliate shall be eligible to participate in
Offerings under the Plan, provided, however, that the Board may provide in an Offering that certain
employees who are highly compensated employees within the meaning of

Section 423(b)(4)(D) of the
Code shall not be eligible to participate.

6.   Rights; Purchase Price.

     (a)   On each Offering Date, each eligible employee, pursuant to an Offering made under the
Plan, shall be granted the right to purchase up to the number of shares of Common Stock of the
Company purchasable with a percentage designated by the Board or the Committee not exceeding
fifteen percent (15%) of such employee’s Earnings (as defined by the Board or the Committee in each
Offering) during the period which begins on the Offering Date (or such later date as the Board or
the Committee determines for a particular Offering) and ends on the date stated in the Offering,
which date shall be no later than the end of the Offering. The Board or the Committee shall
establish one or more dates during an Offering (the “Purchase Date(s)”) on which rights granted
under the Plan shall be exercised and purchases of Common Stock carried out in accordance with such
Offering.

     (b)   In connection with each Offering made under the Plan, the Board or the Committee may
specify a maximum number of shares that may be purchased by any employee as well as a maximum
aggregate number of shares that may be purchased by all eligible employees pursuant to such
Offering. In addition, in connection with each Offering that contains more than one Purchase Date,
the Board or the Committee may specify a maximum aggregate number of shares which may be purchased
by all eligible employees on any given Purchase Date under the Offering. If the aggregate purchase
of shares upon exercise of rights granted under the Offering would exceed any such maximum
aggregate number, the Board or the Committee shall make a pro rata allocation of the shares
available in as nearly a uniform manner as shall be practicable and as it shall deem to be
equitable.

     (c)   The purchase price of stock acquired pursuant to rights granted under the Plan shall be
not less than the lesser of (i) an amount equal to eighty-five percent (85%) of the fair market
value of the stock on the Offering Date or (ii) an amount equal to eighty-five percent
(85%) of the fair market value of the stock on the Purchase Date; provided, however, so long as the
Company is subject to Section 260.140.42 of Title 10 of the California Code of Regulations, the
purchase price of stock acquired by a “Ten Percent Shareholder” shall be not less than the lesser
of (i) an amount equal to one hundred percent (100%) of the fair market value of the stock on the
Offering Date or (ii) an amount equal to one hundred percent (100%) of the fair market value of the
stock on the Purchase Date. For purposes of this Section 6(c), “Ten Percent Shareholder” shall
mean a person who owns securities possessing more than 10% of the total combined voting power (as
defined in Section 194.5 of the California Corporation Code) of all classes of securities of the
issuer or its parent or subsidiaries possessing voting power and, so long the Company is subject to
Section 260.140.42 of Title 10 of the California Code of Regulations, the fair market value shall
be calculated in a manner consistent with Section 260.140.50 of Title 10 of the California Code of
Regulations.

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7.   Participation; Withdrawal; Termination.

     (a)   An eligible employee may become a participant in the Plan pursuant to an Offering by
delivering a participation agreement to the Company within the time specified in the Offering, in
such form as the Company provides. Each such agreement shall authorize payroll deductions of up to
the maximum percentage specified by the Board or the Committee of such employee’s Earnings during
the Offering (as defined by the Board or Committee in each Offering). The payroll deductions made
for each participant shall be credited to an account for such participant under the Plan and shall
be deposited with the general funds of the Company. A participant may reduce (including to zero)
or increase such payroll deductions, and an eligible employee may begin such payroll deductions,
after the beginning of any Offering only as provided for in the Offering. A participant may make
additional payments into his or her account only if specifically provided for in the Offering and
only if the participant has not had the maximum amount withheld during the Offering.

     (b)   At any time during an Offering, a participant may terminate his or her payroll deductions
under the Plan and withdraw from the Offering by delivering to the Company a notice of withdrawal
in such form as the Company provides. Such withdrawal may be elected at any time prior to the end
of the Offering except as provided by the Board or the Committee in the Offering. Upon such
withdrawal from the Offering by a participant, the Company shall distribute to such participant all
of his or her accumulated payroll deductions (reduced to the extent, if any, such deductions have
been used to acquire stock for the participant) under the Offering, without interest, and such
participant’s interest in that Offering shall be automatically terminated. A participant’s
withdrawal from an Offering will have no effect upon such participant’s eligibility to participate
in any other Offerings under the Plan but such participant will be required to deliver a new
participation agreement in order to participate in subsequent Offerings under the Plan.

     (c)   Rights granted pursuant to any Offering under the Plan shall terminate immediately upon
cessation of any participating employee’s employment with the Company and any designated Affiliate,
for any reason, and the Company shall distribute to such terminated employee all of his or her
accumulated payroll deductions (reduced to the extent, if any, such deductions have been used to
acquire stock for the terminated employee) under the Offering, without interest.

5

 

     (d)   Rights granted under the Plan shall not be transferable by a participant otherwise than by
will or the laws of descent and distribution, or by a beneficiary designation as provided in
paragraph 14 and, otherwise during his or her lifetime, shall be exercisable only by the person to
whom such rights are granted.

8.   Exercise. 

     (a)   On each Purchase Date specified therefor in the relevant Offering, each participant’s
accumulated payroll deductions and other additional payments specifically provided for in the
Offering (without any increase for interest) will be applied to the purchase of whole shares of
stock of the Company, up to the maximum number of shares permitted pursuant to the terms of the
Plan and the applicable Offering, at the purchase price specified in the Offering. No fractional
shares shall be issued upon the exercise of rights granted under the Plan. The amount, if any, of
accumulated payroll deductions remaining in each participant’s account after the purchase of shares
which is less than the amount required to purchase one share of stock on the final Purchase Date of
an Offering shall be held in each such participant’s account for the purchase of shares under the
next Offering under the Plan, unless such participant withdraws from such next Offering, as
provided in subparagraph 7(b), or is no longer eligible to be granted rights under the Plan, as
provided in paragraph 5, in which case such amount shall be distributed to the participant after
such final Purchase Date, without interest. The amount, if any, of accumulated payroll deductions
remaining in any participant’s account after the purchase of shares which is equal to the amount
required to purchase whole shares of stock on the final Purchase Date of an Offering shall be
distributed in full to the participant after such Purchase Date, without interest.

     (b)   No rights granted under the Plan may be exercised to any extent unless the shares to be
issued upon such exercise under the Plan (including rights granted thereunder) are covered by an
effective registration statement pursuant to the Securities Act of 1933, as amended (the
“Securities Act”) and the Plan is in material compliance with all applicable state, foreign and
other securities and other laws applicable to the Plan. If on a Purchase Date in any Offering
hereunder the Plan is not so registered or in such compliance, no rights granted under the Plan or
any Offering shall be exercised on such Purchase Date, and the Purchase Date shall be delayed until
the Plan is subject to such an effective registration statement and such compliance, except that
the Purchase Date shall not be delayed more than twelve (12) months and the Purchase Date shall in
no event be more than twenty-seven (27) months from the Offering Date. If on the Purchase Date of
any Offering hereunder, as delayed to the maximum extent permissible, the Plan is not registered
and in such compliance, no rights granted under the Plan or any Offering shall be exercised and all
payroll deductions accumulated during the Offering (reduced to the extent, if any, such deductions
have been used to acquire stock) shall be distributed to the participants, without interest.

9.   Covenants of the Company.

     (a)   During the terms of the rights granted under the Plan, the Company shall keep available at
all times the number of shares of stock required to satisfy such rights.

6

 

     (b)   The Company shall seek to obtain from each federal, state, foreign or other regulatory
commission or agency having jurisdiction over the Plan such authority as may be required to issue
and sell shares of stock upon exercise of the rights granted under the Plan. If, after reasonable
efforts, the Company is unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the lawful issuance and sale of stock
under the Plan, the Company shall be relieved from any liability for failure to issue and sell
stock upon exercise of such rights unless and until such authority is obtained.

10.   Use of Proceeds from Stock.

     Proceeds from the sale of stock pursuant to rights granted under the Plan shall constitute
general funds of the Company.

11.   Rights as a Shareholder.

     A participant shall not be deemed to be the holder of, or to have any of the rights of a
holder with respect to, any shares subject to rights granted under the Plan unless and until the
participant’s shareholdings acquired upon exercise of rights under the Plan are recorded in the
books of the Company.

12.   Adjustments upon Changes in Stock.

     (a)   If any change is made in the stock subject to the Plan, or subject to any rights granted
under the Plan (through merger, consolidation, reorganization, recapitalization, reincorporation,
stock dividend, dividend in property other than cash, stock split, liquidating dividend,
combination of shares, exchange of shares, change in corporate structure or other transaction not
involving the receipt of consideration by the Company), the Plan and outstanding rights will be
appropriately adjusted in the class(es) and maximum number of shares subject to the Plan and the
class(es) and number of shares and price per share of stock subject to outstanding rights. Such
adjustments shall be made by the Board or the Committee, the determination of which shall be final,
binding and conclusive. (The conversion of any convertible securities of the Company shall not be
treated as a “transaction not involving the receipt of consideration by the Company.”)

     (b)   In the event of: (1) a dissolution or liquidation of the Company; (2) a merger or
consolidation in which the Company is not the surviving corporation; (3) a reverse merger in which
the Company is the surviving corporation but the shares of the Company’s Common Stock outstanding
immediately preceding the merger are converted by virtue of the merger into other property, whether
in the form of securities, cash or otherwise; or (4) the acquisition by any person, entity or group
within the meaning of Section 13(d) or 14(d) of the Exchange Act or any comparable successor
provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the
Company or any Affiliate of the Company) of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the
Company representing at least fifty percent (50%) of the combined voting power entitled to vote in
the election of directors, then, as determined by the Board in its sole discretion (i) any
surviving or acquiring corporation may assume outstanding rights or substitute similar rights for
those under the Plan, (ii) such rights may continue in full force and effect, or (iii) participants’ accumulated payroll deductions may be
used to purchase Common Stock immediately prior to the transaction described above and the
participants’ rights under the ongoing Offering terminated.

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13.   Amendment of the Plan.

     (a)   The Board at any time, and from time to time, may amend the Plan. However, except as
provided in paragraph 12 relating to adjustments upon changes in stock, no amendment shall be
effective unless approved by the shareholders of the Company within twelve (12) months before or
after the adoption of the amendment, where the amendment will:

          (i)   Increase the number of shares reserved for rights under the Plan;

          (ii)   Modify the provisions as to eligibility for participation in the Plan (to the
extent such modification requires shareholder approval in order for the Plan to obtain
employee stock purchase plan treatment under Section 423 of the Code or to comply with the
requirements of Rule 16b-3 promulgated under the Exchange Act as amended (“Rule 16b-3”)); or

          (iii)   Modify the Plan in any other way if such modification requires shareholder
approval in order for the Plan to obtain employee stock purchase plan treatment under
Section 423 of the Code or to comply with the requirements of Rule 16b-3.

It is expressly contemplated that the Board may amend the Plan in any respect the Board deems
necessary or advisable to provide eligible employees with the maximum benefits provided or to be
provided under the provisions of the Code and the regulations promulgated thereunder relating to
employee stock purchase plans and/or to bring the Plan and/or rights granted under it into
compliance therewith.

     (b)   Rights and obligations under any rights granted before amendment of the Plan shall not be
impaired by any amendment of the Plan, except with the consent of the person to whom such rights
were granted, or except as necessary to comply with any laws or governmental regulations, or except
as necessary to ensure that the Plan and/or rights granted under the Plan comply with the
requirements of Section 423 of the Code.

14.   Designation of Beneficiary.

     (a)   A participant may file a written designation of a beneficiary who is to receive any shares
and cash, if any, from the participant’s account under the Plan in the event of such participant’s
death subsequent to the end of an Offering but prior to delivery to the participant of such shares
and cash. In addition, a participant may file a written designation of a beneficiary who is to
receive any cash from the participant’s account under the Plan in the event of such participant’s
death during an Offering.

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     (b)   Such designation of beneficiary may be changed by the participant at any time by written
notice. In the event of the death of a participant and in the absence of a beneficiary validly
designated under the Plan who is living at the time of such participant’s death, the
Company shall deliver such shares and/or cash to the executor or administrator of the estate of the
participant, or if no such executor or administrator has been appointed (to the knowledge of the
Company), the Company, in its sole discretion, may deliver such shares and/or cash to the spouse or
to any one or more dependents or relatives of the participant, or if no spouse, dependent or
relative is known to the Company, then to such other person as the Company may designate.

15.   Termination or Suspension of the Plan.

     (a)   The Board in its discretion, may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the date the
Plan is adopted by the Board or approved by the shareholders of the Company, whichever is earlier.
No rights may be granted under the Plan while the Plan is suspended or after it is terminated.

     (b)   Rights and obligations under any rights granted while the Plan is in effect shall not be
impaired by suspension or termination of the Plan, except as expressly provided in the Plan or with
the consent of the person to whom such rights were granted, or except as necessary to comply with
any laws or governmental regulation, or except as necessary to ensure that the Plan and/or rights
granted under the Plan comply with the requirements of Section 423 of the Code.

16.   Information Obligation.

     To the extent required by Section 260.140.46 of Title 10 of the California Code of
Regulations, the Company shall deliver financial statements to participants under the Plan at least
annually. This Section 16 shall not apply to key employees whose duties in connection with the
Company assure them access to equivalent information.

17.   Effective Date of Plan.

     The Plan shall become effective on the same day that the Company’s initial public offering of
shares of common stock becomes effective (the “Effective Date”), but no rights granted under the
Plan shall be exercised unless and until the Plan has been approved by the shareholders of the
Company within twelve (12) months before or after the date the Plan is adopted by the Board or the
Committee, which date may be prior to the Effective Date.

9exv10w15

 

Exhibit 10.15

AMENDED AND RESTATED

STOCK PURCHASE AGREEMENT

ARADIGM CORPORATION

January 26, 2005

 

 

Table Of Contents

	 	 	 	 	 
	1. AGREEMENTS OF THE PARTIES
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Amendment and Restatement of Purchase Agreement
	 	 	1	 
	1.3 “Market Stand-Off” Agreements
	 	 	2	 
	1.4 Public Offering Lock-Up
	 	 	3	 
	1.5 Demand Registration
	 	 	3	 
	2. REPRESENTATIONS AND WARRANTIES OF THE PARTIES
	 	 	4	 
	2.1 Legal Power
	 	 	4	 
	2.2 Due Execution
	 	 	4	 
	3. COVENANTS OF ARADIGM
	 	 	4	 
	3.1 Access to Information
	 	 	4	 
	3.2 Delivery of Certain Information
	 	 	5	 
	4. COVENANTS OF NOVO NORDISK
	 	 	6	 
	4.1 Voting Agreement
	 	 	6	 
	5. MISCELLANEOUS
	 	 	6	 
	5.1 Governing Law
	 	 	6	 
	5.2 Successors and Assigns
	 	 	6	 
	5.3 Entire Agreement
	 	 	7	 
	5.4 Severability
	 	 	7	 
	5.5 Amendment and Waiver
	 	 	7	 
	5.6 Delays or Omissions
	 	 	7	 
	5.7 Notices,
etc.
	 	 	7	 
	5.8 Information Confidential
	 	 	8	 
	5.9 Specific Performance
	 	 	9	 
	5.10 Titles and Subtitles
	 	 	9	 
	5.11 Counterparts
	 	 	9	 

 

 

AMENDED AND RESTATED

STOCK PURCHASE AGREEMENT

     This Amended and Restated Stock Purchase Agreement (the “Agreement”) is made and
entered into as of January 26, 2005, by and among Aradigm Corporation, a corporation duly
organized and existing under the law of the State of California (“Aradigm”), Novo Nordisk A/S, a
company organized and existing under the Law of Denmark (“Novo Nordisk”) and Novo Nordisk
Pharmaceuticals, Inc. a corporation duly organized and existing under the law of the State of
Delaware (“Novo Nordisk Pharmaceuticals, Inc.”).

Recitals

     WHEREAS, pursuant to a Stock Purchase Agreement dated as of June 2, 1998 by and between
Aradigm and Novo Nordisk, Novo Nordisk purchased 1,020,612 shares (the “Initial Shares”) of
Aradigm’s Common Stock, no par value (the “Common Stock”);

     WHEREAS, pursuant to a Stock Purchase Agreement dated as of October 22, 2001 by and between
Aradigm and Novo Nordisk Pharmaceuticals, Inc. (the “Purchase Agreement”), Novo Nordisk
Pharmaceuticals, Inc. purchased 6,847,757 shares of Common Stock (together with the Initial Shares,
the “Shares”);

     WHEREAS, Aradigm, Novo Nordisk and Novo Nordisk Delivery Technologies, Inc., a corporation
duly organized and existing under the law of the State of Delaware (“Novo Nordisk Delivery
Technologies, Inc.”) entered into a Restructuring Agreement dated as of September 28, 2004 (the
“Restructuring Agreement”); and

     WHEREAS, it is a precondition to performance on the part of Aradigm, Novo Nordisk and Novo
Nordisk Delivery Technologies, Inc. of their respective obligations under the Restructuring
Agreement that Aradigm, Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. amend and restate the
Purchase Agreement.

     NOW, THEREFORE, in consideration of the premises set forth above and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as
follows:

1. Agreements of the Parties

     1.1 Definitions. All capitalized terms used herein but not defined herein shall have the
meanings set forth in the Restructuring Agreement.

     1.2 Amendment and Restatement of Purchase Agreement. The Purchase Agreement is hereby amended
and restated in its entirety. Aradigm and Novo Nordisk Pharmaceuticals, Inc. agree to accept the
rights and obligations contained in this Agreement in lieu of their rights and obligations under
the Purchase Agreement.

1.

 

     1.3 “Market Stand-Off” Agreements.

          (a) Subject to Section 1.3(b), Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. hereby
agree that prior to the earlier of (i) First Marketing (as such term is defined under the Amended
and Restated License Agreement dated as of the date hereof by and between Aradigm and Novo Nordisk
Delivery Technologies, Inc. (the “Amended and Restated License Agreement”) in the Territory (as
such term is defined under the Amended and Restated License Agreement), (ii) the acquisition of, or
the commencement of a tender offer acceptance of which is recommended by Aradigm’s Board of
Directors for, all or substantially all of the outstanding Common Stock by a third party other than
Common Stock beneficially owned by such third party, (iii) the termination by Aradigm or Novo
Nordisk of the Amended and Restated License Agreement, (iv) the filing by Aradigm of a voluntary
petition for bankruptcy protection (or the filing of an involuntary petition that is not dismissed
or withdrawn within 60 days after it is filed), (v) the initiation by Aradigm of an assignment for
the benefit of creditors or other similar insolvency proceeding, (vi) the cessation of all of
Aradigm’s business activities, (vii) a judicial or other governmental determination of the
insolvency of Aradigm, (viii) the occurrence of a material change in Aradigm’s business activities
that is incompatible with accepted ethical standards within the pharmaceutical industry, and (ix)
January 1, 2009 (the “Market Stand-Off Period”), neither of them shall, directly or indirectly,
sell, offer to sell, contract to sell, pledge, grant any option for sale or purchase of, agree to
sell or otherwise transfer or dispose of any of the Shares. Aradigm may impose stop-transfer
instructions with respect to the Shares until the end of the Market Stand-Off Period.

          (b) Notwithstanding the restrictions set forth in Section 1.3(a), Novo Nordisk and/or Novo
Nordisk Pharmaceuticals, Inc. may sell the Shares in any sale, transfer or other disposition made
to an Affiliate of Novo Nordisk that agrees to be bound by the provisions of this Agreement. In
addition, Novo Nordisk and Novo Nordisk Pharmaceuticals may (i) no later than six (6) months after
the completion of any transaction or series of related transactions in which holders of Common
Stock other than Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. have transferred in excess of
thirty percent (30%) of the outstanding Common Stock (all such shares of Common Stock that are so
transferred being referred to as the “Transferred Shares”) to a third party, transfer up to the
number of shares then held by Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. multiplied by a
fraction, the numerator of which shall be the total number of Transferred Shares and the
denominator of which shall be the total number of shares of Common Stock held by shareholders other
than Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. and (ii) sell, offer to sell, contract to
sell, pledge, grant any option for sale or purchase of, agree to sell or otherwise transfer and/or
dispose of some or all of the Shares to employees of Novo Nordisk Delivery Technologies, Inc.
pursuant to the arrangements contemplated in the offer letters delivered to the Development Program
Employees (as such term is defined in the Restructuring Agreement) on or prior to the Closing Date,
the option grants contemplated therein and delivery of Shares in connection with the exercise of
any such options or pursuant to such other equity incentive plans or arrangements as may be
approved by Aradigm, such approval not to be unreasonably withheld or delayed. Aradigm will lift
the stop-transfer instructions with respect to any of the Shares transferred pursuant to
arrangements set forth in (i) and (ii) above.

2.

 

     1.4 Public Offering Lock-Up. In addition, Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc.
hereby agree that during the time period recommended by a nationally-recognized underwriter not to
exceed one hundred eighty (180) days following the effective date of a registration statement of
Aradigm filed under the 1933 Act, to the extent requested by such underwriter, neither Novo Nordisk
nor Novo Nordisk Pharmaceuticals, Inc. shall sell or otherwise transfer or dispose of the Shares at
any time during such period (except for any Shares included in such registration or any sale,
transfer or other disposition of any Shares made to an Affiliate of Novo Nordisk that agrees to be
bound by the provisions of this Agreement); provided, that:

          (a) Such agreement shall be applicable only to registration statements of Aradigm which cover
Common Stock (or other securities) to be sold on its behalf to the public;

          (b) Such agreement shall be applicable only if Novo Nordisk (together with its Affiliates)
holds at least five percent (5%) of the Common Stock then outstanding; and

          (c) All officers and directors of Aradigm and any other stockholders owning at least five
percent (5%) of the Common Stock then outstanding (excluding stockholders that acquired their
positions in the public market) enter into similar agreements.

During the period in which this Section 1.4 remains in effect, if Novo Nordisk and Novo Nordisk
Pharmaceuticals, Inc. are requested to enter into such a lock-up agreement in connection with a
public offering of Common Stock in which any other shareholders of Aradigm are allowed to sell
shares held by them, Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. shall have a “piggyback”
right at their option to include shares of Common Stock then held by them in such offering on a pro
rata basis with such other selling shareholders.

     1.5 Demand Registration. If at any time after the Market Stand-Off Period Novo Nordisk and
Novo Nordisk Pharmaceuticals, Inc. desire to effect the registration on Form S-3 or other
applicable form under the 1933 Act of any of the Shares owned by them or any of their Affiliates
(“Registrable Shares”), they may make one (1) written request (the “Demand Request”) that Aradigm
effect such registration; provided that such request is made no earlier than (i) sixty (60) days
prior to the expiration of the Market Stand-Off Period or (ii) sixty (60) days prior to the
expiration of any “lock-up” period required of Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc.
by the underwriters in connection with a public offering by Aradigm. The Demand Request will
specify the number of Registrable Shares proposed to be sold and will also specify the intended
method of disposition thereof. Upon receipt of such Demand Request, Aradigm shall, at its own
expense (which expense shall include all fees and expenses of counsel, public accountants or other
advisors or experts retained by Aradigm, all reasonable fees and expenses of counsel for Novo
Nordisk, Novo Nordisk Pharmaceuticals, Inc. and their Affiliates (which counsel shall be selected
by Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc.) in an amount which shall not exceed fifty
thousand dollars ($50,000), all filing fees, all fees and expenses incurred to comply with blue sky
or other securities laws, all printing expenses and all internal expenses of Aradigm, but shall not
include underwriting fees, discounts or commissions attributable to the sale of the Registrable
Shares, out-of-pocket expenses of Novo Nordisk, Novo Nordisk Pharmaceuticals, Inc. or any of their
Affiliates, transfer taxes or the fees and expenses of underwriter’s counsel) prepare and file with
the SEC a registration statement on Form S-3 or

3.

 

other applicable form (the “Resale
Registration Statement”) under the 1933 Act to provide for the resale by Novo Nordisk, Novo Nordisk
Pharmaceuticals, Inc. and their Affiliates of the number of Registrable Shares specified in the
Demand Request. In the event Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. deliver to
Aradigm a Demand Request prior to the end of a Market Stand-Off Period or a “lock-up” period,
Aradigm shall use its reasonable efforts to file and cause the Resale Registration Statement to be
effective prior to the expiration of such Market Stand-Off Period or “lock-up” period, as the case
may be. In all other cases, Aradigm will use its reasonable efforts to cause the Resale
Registration Statement to be filed and become effective as soon as reasonably practicable after
receipt of the Demand Request. Aradigm shall cause the Resale Registration Statement filed
pursuant to this Section 1.4 to remain effective for no less than six (6) months (or, if earlier,
until the date all of the Registrable Shares covered by the Resale Registration Statement have been
sold); provided, however, Aradigm may suspend the use of, or delay the effective date of, any
Resale Registration Statement by giving written notice to the sellers identified therein, if
Aradigm shall have determined, in its good faith reasonable judgment, that such suspension or delay
in the effective date of the Resale Registration Statement is advisable because the filing or
effectiveness of the Resale Registration Statement would be detrimental to Aradigm and its
shareholders; and provided further that Aradigm suspends the use of or delays the effective date of
all other registration statements of Aradigm that register the securities of Aradigm being or to be
resold by the holders thereof. Any suspension or delay in the effective date of the Resale
Registration Statement by Aradigm pursuant to this Section 1.4 shall be for the shortest reasonable
period of time (but shall not exceed one hundred twenty (120) days).

2. Representations And Warranties Of the Parties

     Aradigm, Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc., each hereby represents and
warrants as follows:

     2.1 Legal Power. It has the requisite legal power to enter into this Agreement and to carry
out and perform its obligations under the terms of this Agreement.

     2.2 Due Execution. This Agreement has been duly authorized, executed and delivered by it,
and, upon due execution and delivery by it, this Agreement will be a valid and binding agreement of
it.

3. Covenants of Aradigm

     3.1 Access to Information. So long as Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc.,
together with their Affiliates, own at least five percent (5%) of the Common Stock outstanding,
Aradigm will afford promptly to Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. and their
authorized agents reasonable access to the properties, books, records, employees and auditors of
Aradigm to the extent reasonably related to their holding of shares of Common Stock. Without
limiting the generality of the foregoing, Aradigm agrees to make its auditors and appropriate
employees available to Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. to discuss the
accounting practices and
policies of Aradigm with respect to certain items in order to allow Novo Nordisk to properly
account for such items in its books and records as may be necessary.

4.

 

     3.2 Delivery of Certain Information.

          (a) So long as Novo Nordisk is required to report its share of Aradigm’s earnings or loss from
its investment in Aradigm under the equity method of accounting, Aradigm shall cause to be prepared
and delivered to Novo Nordisk the following information, which, in the case of financial
information, shall be prepared in accordance with GAAP consistently applied:

               (i) no later than thirty (30) Business Days after the end of each fiscal month, an unaudited
consolidated balance sheet of Aradigm as of the end of such fiscal month and the related unaudited
consolidated statements of income and cash flows for such fiscal month and for the elapsed portion
of the fiscal year ended with the last day of such month, and where Aradigm prepares such financial
information, setting forth in comparative form the figures for the corresponding periods in the
previous fiscal year for the periods in such fiscal year and providing corresponding information
indicating the total number of shares of Common Stock issued and outstanding, the total number of
shares of Common Stock issuable upon exercise of issued and outstanding incentive stock options,
the total changes reflected in the consolidated statements of income due to the grant or exercise
of incentive stock options (if any) and a summary narrative explaining the reason for and the
financial impact of changes in accounting principles having a material impact on Aradigm’s
operations (if any); provided that if Aradigm believes that the financial information required to
be delivered to Novo Nordisk pursuant to this Section 3.2(a) will not be available for delivery
within the time prescribed by this Section 3.2(a), then Aradigm shall (i) promptly (but in no event
later than thirty (30) Business Days after the end of the relevant fiscal month) deliver to Novo
Nordisk an estimated unaudited consolidated balance sheet of Aradigm as of the end of such fiscal
month and the related estimated unaudited consolidated statements of income and cash flows for such
fiscal month and for the elapsed portion of the fiscal year ended with the last day of such month
(in each case clearly indicating that such financial information represents estimates) and (ii)
deliver to Novo Nordisk the final version of such financial information no later than five (5)
Business Days after Aradigm prepares the final version of the estimated financial information;

               (ii) within ten (10) days of receipt, any notice or other communication from any lender, bank
or other person to whom Aradigm is indebted, alleging the existence of any facts or circumstances
that, individually or in the aggregate, constitute or with the passing of time would constitute, a
default under, or give rise to any termination, cancellation or acceleration of any right or
obligation of Aradigm or to a loss of any benefit to which Aradigm is entitled under any provision
of any note, loan, credit or similar instrument or agreement; and

               (iii) no later than April 30, July 31, October 31, and January 31 of each calendar year in
which Novo Nordisk is required to report its share of Aradigm’s earnings or loss from its
investment in Aradigm under the equity method of accounting, a condensed forecasted statement of
income representing one (1) quarterly forecast for a three (3) month period only once every three
(3) months.

          (b) Novo Nordisk promptly shall deliver written notification to Aradigm at such time when Novo
Nordisk is no longer required to report its share of Aradigm’s earnings or loss from its investment
in Aradigm under the equity method of accounting.

5.

 

4. Covenants of Novo Nordisk

     4.1 Voting Agreement.

          (a) Novo Nordisk agrees that at each election of directors of Aradigm in which the
shareholders are entitled to elect directors of Aradigm, neither Novo Nordisk nor any of its
Affiliates that holds Shares will nominate, or vote any shares of Common Stock so as to elect, any
person who is employed by Novo Nordisk or any of its Affiliates, including without limitation any
of their respective current and past directors and officers, and current employees, advisors and
sales agents. Except as expressly set forth in this Section 4.1(a), nothing in this Agreement
shall restrict or otherwise limit the rights of Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc.
to vote Shares held by them in their discretion on any matters to be voted upon by the shareholders
of Aradigm.

          (b) Subject to Section 4.1(c), Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. acknowledge
that each certificate representing the Shares will be endorsed with the following restrictive
legend:

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND
CONDITIONS OF AN AGREEMENT WHICH PLACES CERTAIN RESTRICTIONS ON THE VOTING
OF THE SHARES REPRESENTED HEREBY. ANY PERSON ACCEPTING ANY INTEREST IN SUCH
SHARES SHALL BE DEEMED TO AGREE AND SHALL BECOME BOUND BY ALL THE PROVISIONS
OF SUCH AGREEMENT. A COPY OF SUCH AGREEMENT WILL BE FURNISHED TO THE RECORD
HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON WRITTEN REQUEST TO ARADIGM
CORPORATION AT ITS PRINCIPAL PLACE OF BUSINESS.”

          (c) The provisions of Sections 4.1(a) and (b) shall not be binding upon successors in interest
to any of the Shares who are not Affiliates of Novo Nordisk.

          (d) Aradigm agrees to remove the legend set forth in Section 4.1(b) from any Shares (i) held
by Novo Nordisk or any of its Affiliates upon the expiration of the Market Stand-Off Period or (ii)
that are transferred or otherwise disposed of by Novo Nordisk or any of its Affiliates to a third
party that is not an Affiliate of Novo Nordisk in compliance with the terms and conditions of this
Agreement.

5. Miscellaneous.

     5.1 Governing Law. This Agreement shall be governed by and construed under the laws of the
State of California as applied to agreements among California residents, made and to be performed
entirely within the State of California.

     5.2 Successors and Assigns. Except as otherwise expressly provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs,

6.

 

executors, and administrators of the parties hereto; provided that, any third party that is
not an Affiliate of Novo Nordisk to whom any Shares are transferred in compliance with the terms
and conditions of this Agreement shall not be bound by the terms and conditions of this Agreement.
The foregoing notwithstanding, no party may assign its rights or obligations hereunder to any other
person, except that Novo Nordisk or Novo Nordisk Pharmaceuticals, Inc. may assign its rights
hereunder to one or more Affiliates of Novo Nordisk; provided, that such Affiliate(s) agree to be
bound by the provisions of this Agreement.

     5.3 Entire Agreement. This Agreement, together with the Restructuring Agreement and the other
agreements described therein, constitutes the entire agreement between the parties hereto with
respect to the subject matter of this Agreement and supersedes all prior agreements and
understandings, both oral and written with respect to the subject matter hereof.

     5.4 Severability. In case any provision of this Agreement shall be invalid, illegal, or
unenforceable, it shall, to the extent practicable, be modified so as to make it valid, legal and
enforceable and to retain as nearly as practicable the intent of the parties, and the validity,
legality, and enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

     5.5 Amendment and Waiver. Any term of this Agreement may be amended and the observance of any
term of this Agreement may be waived (either generally or in a particular instance, either
retroactively or prospectively, and either for a specified period of time or indefinitely), with
the written consent of Aradigm, Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. Any amendment
or waiver effected in accordance with this Section shall be binding upon Novo Nordisk and Novo
Nordisk Pharmaceuticals, Inc., each future holder of the Shares, and Aradigm.

     5.6 Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing
to Novo Nordisk, Novo Nordisk Pharmaceuticals, Inc. or any subsequent holder of any Shares upon any
breach, default or noncompliance of Aradigm under this Agreement, shall impair any such right,
power, or remedy, nor shall it be construed to be a waiver of any such breach, default or
noncompliance, or any acquiescence therein, or of any similar breach, default or noncompliance
thereafter occurring. It is further agreed that any waiver, permit, consent, or approval of any
kind or character on Novo Nordisk’s or Novo Nordisk Pharmaceuticals, Inc.’s part of any breach,
default or noncompliance under this Agreement or any waiver on Novo Nordisk’s or Novo Nordisk
Pharmaceuticals, Inc.’s part of any provisions or conditions of this Agreement must be in writing
and shall be effective only to the extent specifically set forth in such writing, and that all
remedies, either under this
Agreement, by law, or otherwise afforded to Novo Nordisk or Novo Nordisk Pharmaceuticals,
Inc., shall be cumulative and not alternative.

     5.7 Notices, etc. All notices and other communications required or permitted hereunder shall
be in writing and shall be deemed effectively given (a) upon personal delivery, (b) on report of
successful transmission by facsimile machine that automatically generates a printed report
indicating whether transmission was completed successfully, at the conclusion of each transmission,
(c) on the first Business Day after receipted delivery to a courier service which guarantees next
business-day delivery, under circumstances in which such guaranty is

7.

 

applicable, or (d) on the
earlier of delivery or five (5) Business Days after mailing by United States certified by mail,
postage and fees prepaid, to the appropriate party at the address set forth below or to such other
address as the part so notifies the other in writing:

     (a) if to Aradigm, to:

Aradigm Corporation

3929 Point Eden Way

Hayward, California 94545

Telephone: (510) 265-8850

Facsimile: (510) 265-0277

Attention: Chairman and Chief Executive Officer

with a copy to:

Cooley Godward llp

3175 Hanover Street

Palo Alto, CA 94304-1130

Attention: James C. Kitch, Esq.

Facsimile: (650) 849-7400

     (b) if to Novo Nordisk and/or Novo Nordisk Pharmaceuticals, Inc., to:

Novo Nordisk Pharmaceuticals, Inc.

100 College Road West

Princeton, New Jersey 08540

Attention: Phil Fornecker, Chief Financial Officer

Telephone: (609) 989-5800

Telefax: (609) 987-2792

Novo Nordisk A/S

Novo Alle

DK-2880 Bagsvaerd

Denmark

Attention: General Counsel

Telephone: +45 44 44 88 88

Telefax: +45 44 42 18 30

or to such other addresses and telecopier numbers as may from time to time be notified by either
party to the other hereunder.

     5.8 Information Confidential. Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. acknowledge
that any non-public information regarding Aradigm received by them pursuant hereto is confidential
and for their use only, and they will refrain from using such information or disclosing or
disseminating such information to any other person (other than their employees, affiliates, agents,
or partners having a need to know the contents of such information and their attorneys, in each
case who are made aware of this Section 5.8), except in connection with the

8.

 

exercise of rights
under this Agreement, unless such information (i) becomes available to the public generally, (ii)
was or becomes available to Novo Nordisk and Novo Nordisk Pharmaceuticals, Inc. on a
non-confidential basis from a source other than Aradigm, which source is or was (at time of receipt
of the relevant information) not, to the best of their knowledge, bound by a confidentiality
agreement with (or other confidentiality obligation to) Aradigm or (iii) is required to be
disclosed by a Governmental Authority (as such term is defined in the Restructuring Agreement).

     5.9 Specific Performance. The parties hereto hereby declare that it is impossible to measure
in money the damages which will accrue to a party hereto or to its successors or assigns by reason
of a failure to perform any of the obligations under Section 4 of this Agreement and agree that the
terms of Section 4 of this Agreement shall be specifically enforceable. If any party hereto or its
successors or assigns institutes any action or proceeding to specifically enforce the provisions of
Section 4 of this Agreement, any party against whom such action or proceeding is brought hereby
waives the claim or defense therein that such party or such successor or assign has an adequate
remedy at law, and such party shall not offer in any such action or proceeding the claim or defense
that such remedy at law exists.

     5.10 Titles and Subtitles. The titles of the sections and subsections of this Agreement are
for convenience of reference only and are not to be considered in construing this Agreement.

     5.11 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute one instrument.

9.

 

     The foregoing Agreement is hereby executed as of the date first above written.

	 	 	 	 	 	 	 
	Aradigm Corporation	 	Novo Nordisk A/S
	 
	 	 	 	 	 	 
	By:

	 	/s/ Richard P. Thompson
	 	By:
	 	/s/ Per Valstorp
	 

	 	 
	 	 	 	 
	 

	 	Richard P. Thompson
	 	 	 	Name: Per Valstorp
	 

	 	Chairman
	 	 	 	Title: Senior Vice President,
          Product Supply
	 
	 	 	 	 	 	 
	 	 	 	 	Novo Nordisk Inc.
	 	 	 	 	(formerly known as Novo Nordisk
Pharmaceuticals, Inc.)
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 /s/ James C. Shehan
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: James C. Shehan
	 

	 	 	 	 	 	Title: Secretary

[Signature page to Amended and Restated Stock Purchase Agreement]

10.

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