Document:

Form of Indemnification Agreement

 Exhibit 10.1 
  
 INDEMNIFICATION AGREEMENT 
  
 This Indemnification Agreement (this “Agreement”) is made as of
                    , 200        , by and between Corus Pharma, Inc., a Delaware corporation
(the “Company”), and                      (“Indemnitee”). 
  
 RECITALS 
  
 The Company desires to retain the services of highly qualified individuals,
such as Indemnitee, and to indemnify its directors, officers and key employees so as to provide them with the maximum protection permitted by law. 
  
 AGREEMENT 
  
 In consideration of the mutual promises made in this Agreement, and for other good and valuable consideration, receipt of which is hereby acknowledged,
the Company and Indemnitee hereby agree as follows: 
  
 1.
Indemnification. 
  
 (a)
Third-Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in the right of the Company) by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or is or was serving at the request of the Company as a
director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including, without limitation, any subsidiary of the Company, against expenses (including attorneys’ fees), judgments, fines and
amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in connection with such action, suit or proceeding if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe Indemnitee’s conduct was
unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in
a manner that Indemnitee reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal action or proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was
unlawful. 
  
 (b) Proceedings by or in the
Right of the Company. The Company shall indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or completed action or proceeding by or in the right of the Company or any subsidiary
of the Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company, or is or was serving at the request of the Company as a
director, officer, employee 

  

 
or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees) and, to the fullest
extent permitted by law, amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld), in each case to the extent actually and reasonably incurred by Indemnitee in
connection with the defense or settlement of such action or suit if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, except that no indemnification shall be
made in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudicated by court order or judgment to be liable to the Company in the performance of Indemnitee’s duty to the Company unless and only to the extent
that the court in which such action or proceeding is or was pending shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnity for such expenses that such court shall deem proper. 
  
 (c) Mandatory Payment of Expenses. To the extent that Indemnitee has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Section 1(a) or Section 1(b)
hereof or in defense of any claim, issue or matter therein, Indemnitee shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by Indemnitee in connection therewith. 
  
 2. No Employment Rights. Nothing contained in this
Agreement is intended to create in Indemnitee any right to continued employment with the Company. 
  
 3. Expenses; Indemnification Procedure. 
  
 (a) Advancement of Expenses. The Company shall pay all expenses (including attorneys’ fees) incurred by Indemnitee in
connection with the investigation, defense, settlement or appeal of any civil, criminal, administrative or investigative action, suit or proceeding referred to in Section l(a) or Section 1(b) hereof (including amounts actually paid in settlement of
any such action, suit or proceeding) in advance of any final disposition of such action, suit or proceeding; provided, however, that Indemnitee hereby undertakes to repay such amounts advanced if, and to the extent that, it shall ultimately be
determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby. 
  
 (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to his or her right to be indemnified under
this Agreement, give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification will or could be sought under this Agreement. Notice to the Company shall be directed to the Chief Financial
Officer of the Company and shall be given in accordance with the provisions of Section 12(d) hereof. In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably require and as shall be within
Indemnitee’s power. 
  
 (c)
Procedure. Any indemnification and advances provided for in Section 1 hereof and this Section 3 shall be made no later than thirty (30) days after receipt of the written request of Indemnitee. If a claim under this Agreement, under any
statute, or under any provision of the Company’s Amended and Restated Certificate of Incorporation or Amended and Restated 

  

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Bylaws providing for indemnification, is not paid in full by the Company within thirty (30) days after a written request for payment thereof has first been
received by the Company, Indemnitee may, but need not, at any time thereafter bring an action against the Company to recover the unpaid amount of the claim and, subject to Section 11 hereof, Indemnitee shall also be entitled to be paid for the
expenses (including attorneys’ fees) of bringing such action. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in connection with any action, suit or proceeding in advance of its
final disposition) that Indemnitee has not met the standards of conduct that make it permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed, but the burden of proving such defense shall be on the Company, and
Indemnitee shall be entitled to receive interim payments of expenses pursuant to Section 3(a) hereof unless and until such defense may be finally adjudicated by court order or judgment from which no further right of appeal exists. It is the
parties’ intention that if the Company contests Indemnitee’s right to indemnification, the question of Indemnitee’s right to indemnification shall be for the court to decide, and neither the failure of the Company (including its Board
of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the
applicable standard of conduct required by applicable law, nor an actual determination by the Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) that
Indemnitee has not met such applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct. 
  

(d) Notice to Insurers. If, at the time of the receipt of a notice of a claim pursuant to Section 3(b) hereof, the
Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies. 
  
 (e) Selection of Counsel. In the event the
Company shall be obligated under Section 3(a) hereof to pay the expenses of any proceeding against Indemnitee, the Company shall be entitled to assume the defense of such proceeding, with counsel reasonably acceptable to Indemnitee, upon the
delivery to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this
Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same proceeding, provided that (i) Indemnitee shall have the right to employ counsel in any such proceeding at Indemnitee’s expense and (ii) if (A) the
employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense or (C)
the Company shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the expense of the Company. 
  

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 4. Additional Indemnification Rights; Nonexclusivity. 
  
 (a) Scope. Notwithstanding any other provision
of this Agreement, the Company hereby agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company’s
Amended and Restated Certificate of Incorporation, the Company’s Amended and Restated Bylaws or by statute. In the event of any change, after the date of this Agreement, in any applicable law, statute or rule that expands the right of a
Delaware corporation to indemnify a member of its board of directors or an officer, such changes shall be deemed to be within the purview of Indemnitee’s rights and the Company’s obligations under this Agreement. In the event of any change
in any applicable law, statute or rule that narrows the right of a Delaware corporation to indemnify a member of its board of directors or an officer, such changes, to the extent not otherwise required by such law, statute or rule to be applied to
this Agreement, shall have no effect on this Agreement or the parties’ rights and obligations hereunder. 
  
 (b) Nonexclusivity. The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which
Indemnitee may be entitled under the Company’s Amended and Restated Certificate of Incorporation, the Company’s Amended and Restated Bylaws, any agreement, any vote of stockholders or disinterested members of the Company’s Board of
Directors, the Delaware General Corporation Law, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity while holding such office. The indemnification provided under this Agreement shall continue
as to Indemnitee for any action taken or not taken while serving in an indemnified capacity even though the Indemnitee may have ceased to serve in any such capacity at the time of any action, suit or other covered proceeding. 
  
 5. Partial Indemnification. If Indemnitee is entitled
under any provision of this Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually or reasonably incurred in the investigation, defense, appeal or settlement of any civil or criminal
action, suit or proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled. 
  
 6. Mutual Acknowledgment. Both the Company and
Indemnitee acknowledge that, in certain instances, federal law or public policy may override applicable state law and prohibit the Company from indemnifying its directors, officers and key employees under this Agreement or otherwise. For example,
the Company and Indemnitee acknowledge that the Securities and Exchange Commission (the “SEC”) has taken the position that indemnification is not permissible for liabilities arising under certain federal securities laws, and federal
legislation prohibits indemnification for certain ERISA violations. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake with the SEC to submit the question of indemnification to a
court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee. 
  

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 7. Officer and Director Liability Insurance. The Company shall, from time to time,
make the good-faith determination whether it is commercially reasonable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the Company’s officers and directors with coverage for
losses from wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection
afforded by such coverage. In all policies of officer and director liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of
the Company’s directors, if Indemnitee is a director, or of the Company’s officers, if Indemnitee is not a director of the Company but is an officer, or of the Company’s key employees, if Indemnitee is neither an officer nor a
director but is a key employee. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs
for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by
a parent or subsidiary of the Company. 
  
 8.
Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company’s inability, pursuant to court order, to
perform its obligations under this Agreement shall not constitute a breach of this Agreement. The provisions of this Agreement shall be severable as provided in this Section 8. If this Agreement or any portion hereof shall be invalidated on any
ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement
not so invalidated shall be enforceable in accordance with its terms. 
  
 9. Exceptions. Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement: 
  
 (a) to indemnify or advance expenses to Indemnitee with respect to proceedings or claims initiated or
brought voluntarily by Indemnitee and not by way of defense, except with respect to proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise as required under Section 145 of
the Delaware General Corporation Law, but such indemnification or advancement of expenses may be provided by the Company in specific cases if the Board of Directors finds it to be appropriate; 
  
 (b) to indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such proceeding was not made in
good faith or was frivolous; 
  

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 (c) to indemnify Indemnitee for expenses or liabilities of any type whatsoever
(including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) to the extent such expenses or liabilities have been paid directly to Indemnitee by an insurance carrier under a policy of
officers’ and directors’ liability insurance maintained by the Company; 
  
 (d) to indemnify Indemnitee for expenses or the payment of profits arising from the purchase or sale by Indemnitee of securities in
violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute; or 
  
 (e) to indemnify Indemnitee for expenses or liabilities for any transaction from which the director derived an improper personal benefit.

  
 10. Construction of Certain Phrases. 

 
 (a) For purposes of this Agreement, references to the
“Company” shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers, employees or agents, so that if Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or
surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued. 
  
 (b) For purposes of this Agreement, references to “other enterprises” shall include employee benefit plans, references to
“fines” shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan and references to “serving at the request of the Company” shall include any service as a director, officer,
employee or agent of the Company that imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries, and, if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner “not opposed to the best interests of the Company”
as referred to in this Agreement. 
  
 11.
Attorneys’ Fees. In the event that any action is instituted by Indemnitee under this Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and expenses, including
reasonable attorneys’ fees, incurred by Indemnitee with respect to such action, unless, as a part of such action, the court of competent jurisdiction determines that each of the material assertions made by Indemnitee as a basis for such action
were not made in good faith or were frivolous. In the event of an action instituted by or in the name of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all
court costs and expenses, including attorneys’ fees, incurred by Indemnitee in defense of such action (including with respect to Indemnitee’s counterclaims and cross-claims made in such action), unless as a part of such action 

  

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the court determines that each of Indemnitee’s material defenses to such action were made in bad faith or were frivolous. 
  
 12. Miscellaneous. 
  
 (a) Governing Law. This Agreement and all acts
and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the state of Delaware, without giving effect to principles of conflict of law.

  
 (b) Entire Agreement; Enforcement of
Rights. This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter herein and merges all prior discussions between them. No modification of or amendment to this Agreement, nor any waiver of
any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party.

  
 (c) Construction. This
Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of both of the parties hereto, and no ambiguity
shall be construed in favor of or against any of the parties hereto. 
  
 (d) Notices. Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed sufficient when delivered personally or sent by fax or
forty-eight (48) hours after being sent by nationally recognized courier or deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address or fax number as
set forth below or as subsequently modified by written notice. 
  
 (e) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. 
  
 (f) Successors and Assigns. This Agreement
shall be binding upon the Company and its successors and assigns, and inure to the benefit of Indemnitee and Indemnitee’s heirs, legal representatives and assigns. 
  
 (g) Subrogation. In the event of payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company to effectively bring suit to enforce
such rights. 
  
 [Signature Page Follows]

  

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 The parties hereto have executed this Agreement as of the day and year set forth on the first page of
this Agreement. 
  

			
	 CORUS PHARMA, INC.

		
	 By:
	 	 
		
	 Name:
	 	 
		
	 Title:
	 	 
		
	 Address:
	 	 2025 First Avenue, Suite 800
 Seattle, Washington 98121

		
	 Fax No:
	 	 (206) 728-5095

  

			
	 AGREED TO AND ACCEPTED:

		
	 By:
	 	 
	 	 	 (Signature)

	 Name:
	 	 
	 	 	 (Print Name)

		
	 Address:
	 	 
	 	 	 
	 	 	 
		
	 Fax No.:
	 	 

  

 -8-2001 Stock Plan

 Exhibit 10.2 
  
 CORUS PHARMA, INC. 
 2001 STOCK PLAN 
  
 (as amended and restated on
August 25, 2004 by the Board of Directors and 
 approved by the stockholders on [DATE], 2004) 
  
 SECTION 1. Establishment And Purpose. 
  
 The purpose of the Plan is to offer selected individuals an opportunity to
acquire a proprietary interest in the success of the Company, or to increase such interest, by purchasing Shares of the Company’s Stock, in order to: 
  

	 	•	Encourage long-term management perspective and reward sustained, long-term performance; 

  

	 	•	Focus Participants on key measures of value creation for the Company’s shareholders; 

  

	 	•	Provide significant reward potential commensurate with shareholder value creation; and 

  

	 	•	Enhance the ability of Corus Pharma Inc. to attract and retain highly talented and competent individuals. 

  
 The Plan provides for the direct award or sale of Shares, the grant of Options to purchase Shares, and the grant of
Performance Shares, Restricted Stock, Stock Appreciation Rights or Phantom Stock. Options granted under the Plan may include Nonstatutory Options as well as ISOs intended to qualify under Section 422 of the Code. 
  
 Capitalized terms are defined in Section 12. 
  
 SECTION 2. Administration. 
  
 2.1 Committees of the Board of Directors. The Plan may be administered
by one or more Committees. Each Committee shall consist of one or more members of the Board of Directors who have been appointed by the Board of Directors. Each Committee shall have such authority and be responsible for such functions as the Board
of Directors has assigned to it. If no Committee has been appointed, the Compensation Committee of the Board of Directors (the “Committee”) shall administer the Plan. Any reference to the Board of Directors in the Plan shall be construed
as a reference to the Committee, its delegate or such other Committee to whom the Board of Directors has assigned a particular function. 
  
 2.2 Authority of the Committee. Subject to the provisions of the Plan, or specific limitation imposed by the Board of Directors, the Committee
shall have full and exclusive power and authority to interpret the Plan and to adopt such rules, regulations and guidelines for carrying out the Plan as it may deem necessary or appropriate. The Committee may delegate its duties hereunder to the
Chief Executive Officer or other senior officers of the Company subject to such rules and regulations as the Committee 

  

 
establishes. The Committee may, in its discretion, retain the services of an outside administrator for the purpose of performing any of its ministerial
functions hereunder. The Committee may, in its discretion, provide for the extension of the exercisability of an Award, accelerate the vesting or of an Award, eliminate or make less restrictive any restrictions contained in an Award Agreement, waive
any restriction or other provision of the Plan (other than the number of shares reserved for issuance under the Plan as set forth in Section 4.1) or an Award Agreement or otherwise amend or modify an Award in any manner that is either (i) not
adverse to the Participant holding the Award or (ii) consented to by such Participant. The Committee may grant an Award to an individual whom it expects to become an Employee of the Company or any of its Subsidiaries within the following six months,
with such Award being subject to the individual’s actually becoming an Employee within such time period, and subject to such other terms and conditions as may be established by the Committee. The Committee may correct any defect, supply any
omission, reconcile any inconsistency and remedy or resolve any ambiguity in the Plan or in any Award Agreement in the manner and to the extent the Committee deems necessary or desirable to further the Plan purposes. Any decision of the Committee in
the interpretation and administration of the Plan shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties concerned. 
  
 2.3 Limitation of Liability. No member of the Board of Directors and no officer of the Company to whom the Board of
Directors has delegated authority in accordance with the Plan shall be liable for anything done or omitted to be done by him or her in connection with the performance of any duties under the Plan, except for his or her own willful misconduct or as
expressly provided by statute. 
  
 SECTION 3. Eligibility,
Participation and Awards. 
  
 3.1 General Rule. All
Employees and certain other selected individuals (such as Outside Directors and Consultants) who may not be Employees but who, in the judgment of the Board of Directors, are in a position to contribute significantly to its long-term profitability
and growth objectives, are eligible for Awards under the Plan. The Board of Directors shall select the Participants from time to time by the grant of Awards under the Plan and, subject to the terms and conditions of the Plan, shall determine all
terms and conditions of the Award. Only Employees shall be eligible for the grant of ISOs. 
  
 3.2 Awards Generally. Awards may be made under the Plan, in such numbers or amounts and to such individuals determined by the Board of Directors, in the following form: 
  

	 	3.2.1 	Award or Sale of Shares. An Award may be in the form of Restricted Stock or Common Stock pursuant to provisions of Section 5 of the Plan. 

  

	 	3.2.2 	Options for Shares. An award may be in the form of Options pursuant to the provisions of Section 6 of the Plan. 

  

	 	3.2.3 	Performance Shares. An Award may be in the form of Performance Shares. Performance Shares shall be payable, in the sole discretion of the Board of Directors in cash, in
Shares, or any combination thereof. The terms, conditions and limitations applicable to an Award of Performance Shares shall be determined by the Board of Directors. 

  

	 	3.2.4 	Phantom Stock. An Award may be in the form of Phantom Stock, or other bookkeeping account tied to the value of Shares. The terms, conditions, and limitations applicable to
any Awards of Phantom Stock shall be determined by the Board of Directors. 

  

	 	3.2.5 	Stock Appreciation Rights. An Award may be in the form of SARs. The conversion price of an SAR unit shall not be less than the Fair Market Value of a Share on the Grant Date.
The terms, conditions, and limitations applicable to any Awards of SARs shall be determined by the Board of Directors. 

  

	 	3.2.6 	Cash Awards. An Award may be in the form of a Cash Award. The terms, conditions and limitations applicable to any Cash Awards shall be determined by the Board of Directors.

  
 3.3 Award Agreement. Each Award granted
under the Plan, other than a Cash Award, shall be evidenced by an Award Agreement between the Participant and the Company. Such Award shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and
conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in an Award Agreement. The provisions of the various Award Agreements need not be identical. The Board of Directors shall prescribe
written guidelines for the issuance of a Cash Award. 
  
 3.4
Performance-Based Awards. Without limiting the type or number of Awards that may be made under the other provisions of the Plan, an Award may be in the form of a Performance-Based Award. Performance-Based Awards are Awards that shall be paid,
vested or otherwise deliverable solely on account of the attainment of one or more pre-established, objective Performance Goals established by the Board of Directors prior to the earlier to occur of (i) 90 days after the commencement of the period
of service to which the Performance Goal relates and (ii) the lapse of 25% of the period of service (as scheduled in good faith at the time the goal is established), and in any event while the outcome is substantially uncertain. A Performance Goal
is objective if a third party having knowledge of the relevant facts could determine whether the goal is met. Such a Performance Goal may be based on one or more business criteria that apply to the Employee, one or more business units of the
Company, or the Company as a whole, and may include one or more of the following: economic value, achievement of project milestones, decrease in costs, shareholder value, and total market value. Prior to the payment of any compensation based on the
achievement of Performance Goals, the Board of Directors must certify in writing that applicable Performance Goals and any of the material terms thereof were, in fact, satisfied. In interpreting Plan provisions 

  

 
applicable to Performance Goals and Performance-Based Awards, it is the intent of the Plan to conform with the standards of Section 162(m) of the Code and
Treasury Regulation Section 1.162-27(e)(2)(i), and the Board of Directors in establishing Performance Goals and interpreting the Plan shall be guided by such provisions. A Performance-Based Award may include Performance Shares, Options, Restricted
Stock, Stock Appreciation Rights, Cash Awards or Phantom Stock. 
  
 3.5 Ten-Percent Stockholders. An individual who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its Parent or any of its Subsidiaries shall not be eligible for the grant of an
ISO unless (i) the Exercise Price is at least 110% of the Fair Market Value of a Share on the date of grant and (ii) such ISO by its terms is not exercisable after the expiration of five years from the date of grant. For purposes of this Section
3.5, in determining stock ownership, the attribution rules of Section 424(d) of the Code shall be applied. 
  
 3.6 Termination of Employment. Upon the termination of employment of an Employee, any unexercised, deferred or unpaid Awards shall be treated as
provided in the specific Award Agreement evidencing the Award. Unless otherwise specifically provided in the Award Agreement, each Award granted pursuant to the Plan which is an Option shall immediately terminate to the extent the Option is not
vested (or does not become vested as a result of such termination of employment) on the date the Employee’s employment with the Company or its Subsidiaries is terminated. 
  
 SECTION 4. Stock Subject To Plan. 
  
 4.1 Basic Limitation. Shares offered under the Plan may be authorized but unissued Shares. The aggregate number of
Shares that may be issued under the Plan (upon exercise of Options or other rights to acquire Shares) shall not exceed [NUMBER] Shares, subject to adjustment pursuant to Section 8. The number of Shares that are subject to Options or other rights
outstanding at any time under the Plan shall not exceed the number of Shares that then remain available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy
the requirements of the Plan. The aggregate number of Shares which may be issued upon the exercise of ISOs shall in no event exceed [NUMBER] Shares (subject to adjustment pursuant to Section 8). Notwithstanding anything to the contrary, as of the
IPO Date, no further Awards may be granted under this Plan. 
  
 4.2 Additional Shares. In the event that any outstanding Option or other right for any reason expires or is canceled or otherwise terminated, the Shares allocable to the unexercised portion of such Option or other right or Shares
issued under the Plan that are reacquired by the Company pursuant to any forfeiture provision, right of repurchase or right of first refusal (all such Shares being, “Recycled Shares”) shall again be available for purposes of the Plan.
After the IPO Date, Recycled Shares shall become available for award under the Company’s 2004 Stock Incentive Plan (“2004 Plan”). 
  

 SECTION 5. Terms And Conditions Of Awards Or Sales. 
  
 5.1 Stock Purchase Agreement. Each award or sale of Shares under the
Plan (other than upon exercise of an Option) shall be evidenced by a Stock Purchase Agreement between the Purchaser and the Company. Such award or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any
other terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in a Stock Purchase Agreement. The provisions of the various Stock Purchase Agreements entered into under the Plan
need not be identical. 
  
 5.2 Duration of Offers and
Nontransferability of Rights. Any right to acquire Shares under the Plan (other than an Option) shall automatically expire if not exercised by the Purchaser within 30 days after the grant of such right was communicated to the Purchaser by the
Company. Such right shall not be transferable and shall be exercisable only by the Purchaser to whom such right was granted. 
  
 5.3 Purchase Price. The Purchase Price of Shares to be offered under the Plan, if newly issued, shall not be less than the par value of such
Shares. Subject to the preceding sentence, the Purchase Price shall be determined by the Board of Directors at its sole discretion. The Purchase Price shall be payable in a form described in Section 7. 
  
 5.4 Withholding Taxes. As a condition to the purchase of Shares, the
Purchaser shall make such arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such purchase. 
  
 5.5 Restrictions on Transfer of Shares. Any Shares awarded or sold
under the Plan shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable
Stock Purchase Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally. 
  
 5.7 Accelerated Vesting. Unless the applicable Stock Purchase Agreement provides otherwise, any right to repurchase a Purchaser’s Shares at
the original Purchase Price (if any) upon termination of the Purchaser’s Service shall lapse and all of such Shares shall become vested if: 
  
 (i) The Company is subject to a Change in Control before the Purchaser’s Service terminates; and 
  
 (ii) The Purchaser is subject to an Involuntary Termination
within 12 months following such Change in Control. 
  

 SECTION 6. Terms And Conditions Of Options. 
  
 6.1. Stock Option Agreement. Each grant of an Option under the Plan
shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with
the Plan and which the Board of Directors deems appropriate for inclusion in a Stock Option Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 
  
 6.2. Number of Shares. Each Stock Option Agreement shall specify the
number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or a Nonstatutory Option. 
  
 6.3. Exercise Price. Each Stock Option Agreement shall specify the
Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, and a higher percentage may be required by Section 3.5. The Exercise Price of a Nonstatutory Option to purchase newly
issued Shares shall not be less than the par value of such Shares. Subject to the preceding two sentences, the Exercise Price under an Option shall be determined by the Board of Directors at its sole discretion. The Exercise Price shall be payable
in a form described in Section 7. 
  
 6.4. Withholding
Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in
connection with such exercise. The Optionee shall also make such arrangements as the Board of Directors may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the
disposition of Shares acquired by exercising an Option. 
  
 6.5.
Exercisability. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. The exercisability provisions of a Stock Option Agreement shall be determined by the Board of Directors at
its sole discretion. 
  
 6.6. Accelerated Exercisability.
Unless the applicable Stock Option Agreement provides otherwise, all of an Optionee’s Options shall become exercisable in full if: 
  
 (i) The Company is subject to a Change in Control before the Optionee’s Service terminates; and 
  
 (ii) The Optionee is subject to an Involuntary Termination
within 12 months following such Change in Control. 
  
 A Stock
Option Agreement may also provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events. 
  

 6.7 Basic Term. The Stock Option Agreement shall specify the term of the Option. The term shall
not exceed 10 ears from the date of grant, and in the case of an ISO a shorter term may be required by Section 3.5. Subject to the preceding sentence, the Board of Directors at its sole discretion shall determine when an Option is to expire. A Stock
Option Agreement may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service or the Optionee’s death. 
  
 6.8 Nontransferability. No Option shall be transferable by the Optionee other than by beneficiary designation, will
or the laws of descent and distribution. Subject to applicable exercise and vesting terms, an Option may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal representative. No Option or
interest therein may be transferred, assigned, pledged or hypothecated by the Optionee during the Optionee’s lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. 
  
 6.9 No Rights as a Stockholder. An Optionee, or a transferee of an
Optionee, shall have no rights as a stockholder with respect to any Shares covered by the Optionee’s Option until such person becomes entitled to receive such Shares by filing a notice of exercise and paying the Exercise Price pursuant to the
terms of such Option and such person has been issued the applicable share certificate by the Company. 
  
 6.10 Modification, Extension and Assumption of Options. Within the limitations of the Plan, the Board of Directors may modify, extend or assume
outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in return for the grant of new Options for the same or a different number of Shares and at the same or a different Exercise
Price. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s obligations under such Option. 
  
 6.11 Restrictions on Transfer of Shares. Any Shares issued upon
exercise of an Option shall be subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the
applicable Stock Option Agreement and shall apply in addition to any restrictions that may apply to holders of Shares generally. 
  
 6.12 Accelerated Vesting. Unless the applicable Stock Option Agreement provides otherwise, any right to repurchase Shares issued upon exercise of
an Option at the original Exercise Price (if any) upon termination of the Optionee’s Service shall lapse and all of such Shares shall become vested if: 
  
 (iii) The Company is subject to a Change in Control before the Optionee’s Service terminates; and 
  
 (iv) The Optionee is subject to an Involuntary Termination
within 12 months following such Change in Control. 
  
 A Stock
Option Agreement may also provide for accelerated vesting in the event of the Optionee’s death or disability or other events. 
  

 SECTION 7. Payment For Shares. 
  
 7.1 General Rule. The entire Purchase Price or Exercise Price of Shares issued under the Plan shall be payable in
cash or cash equivalents at the time when such Shares are purchased, except as otherwise provided in this Section 7. 
  
 7.2 Surrender of Stock. To the extent that a Stock Option Agreement so provides, all or any part of the Exercise Price may be paid by surrendering,
or attesting to the ownership of, Shares that are already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value on the date when the Option is exercised. The
Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to the Option for
financial reporting purposes. 
  
 7.3 Services Rendered. At
the discretion of the Board of Directors, Shares may be awarded under the Plan in consideration of services rendered to the Company, a Parent or a Subsidiary prior to the award. At the discretion of the Board of Directors, Shares may also be awarded
under the Plan in consideration of services to be rendered to the Company, a Parent or a Subsidiary after the award, except that the par value of such Shares, if newly issued, shall be paid in cash or cash equivalents. 
  
 7.4 Promissory Note. To the extent that a Stock Option Agreement or
Stock Purchase Agreement so provides, all or a portion of the Exercise Price or Purchase Price (as the case may be) of Shares issued under the Plan may be paid with a full-recourse promissory note. However, the par value of the Shares, if newly
issued, shall be paid in cash or cash equivalents. The Shares shall be pledged as security for payment of the principal amount of the promissory note and interest thereon. The interest rate payable under the terms of the promissory note shall not be
less than the minimum rate (if any) required to avoid the imputation of additional interest under the Code. Subject to the foregoing, the Board of Directors (at its sole discretion) shall specify the term, interest rate, amortization requirements
(if any) and other provisions of such note. 
  
 7.5
Exercise/Sale. To the extent that a Stock Option Agreement so provides, and if Stock is publicly traded, payment may be made all or in part by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities
broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes. 
  
 7.6 Exercise/Pledge. To the extent that a Stock Option Agreement so provides, and if Stock is publicly traded,
payment may be made all or in part by the delivery (on a form prescribed by the Company) of an irrevocable direction to pledge Shares to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the
loan proceeds to the Company in payment of all or part of the Exercise Price and any withholding taxes. 
  

 7.7 Deferral. The Board of Directors may, in its discretion, (i) permit selected Participants to
elect to defer payments of some or all types of Awards in accordance with procedures established by the Board of Directors or (ii) provide for the deferral of an Award in an Award Agreement or otherwise. Any such deferral may be in the form of
installment payments or a future lump sum payment. Any deferred payment, whether elected by the Participant or specified by the Award Agreement or by the Board of Directors, may be forfeited if and to the extent that the Award Agreement so provides.

  
 SECTION 8. Adjustment Of Shares. 
  
 8.1 General. In the event of a subdivision of the outstanding Stock, a
declaration of a dividend payable in Shares, a declaration of an extraordinary dividend payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of the Stock, a combination or consolidation of the
outstanding Stock into a lesser number of Shares, a recapitalization, a spin-off, a reclassification or a similar occurrence, the Board of Directors shall make appropriate adjustments in one or more of (i) the number of Shares available for future
grants under Section 4, (ii) the number of Shares covered by each outstanding Option or (iii) the Exercise Price under each outstanding Option. Under no circumstances shall the Company be required to authorize or issue fractional shares and no
consideration shall be provided as a result of any fractional shares not being issued or authorized. 
  
 8.2 Mergers and Consolidations. In the event that the Company is a party to a merger, consolidation or other reorganization, outstanding Options
shall be subject to the agreement of merger, consolidation or reorganization. Such agreement, without the Optionees’ consent, may provide for: 
  
 (i) The continuation of such outstanding Options by the Company (if the Company is the surviving corporation); 
  
 (ii) The assumption of the Plan and such outstanding Options
by the surviving corporation or its parent; 
  
 (iii) The substitution by the surviving corporation or its parent of options with substantially the same terms for such outstanding Options, provided that, upon such substitution, all such substituted options shall become fully vested; or

  
 (iv) The cancellation of each outstanding
Option after payment to the Optionee of an amount in cash or cash equivalents equal to (A) the Fair Market Value of the Shares subject to such Option at the time of the merger or consolidation minus (B) the Exercise Price of the Shares subject to
such Option. 
  
 8.3 Reservation of Rights. Except as
provided in this Section 8, an Optionee or Purchaser shall have no rights by reason of (i) any subdivision or consolidation of shares of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of
shares of stock of any class. Any issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, 

  

 
shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant
of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve,
liquidate, sell or transfer all or any part of its business or assets. 
  
 SECTION 9. Securities Law Requirements. 
  
 Shares
shall not be issued under the Plan unless the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations
promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded. 
  
 SECTION 10. No Retention Rights. 
  
 Nothing in the Plan or in any right, Award or Option granted under the Plan
shall confer upon a Participant any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining a Participant) or
of a Participant, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause. 
  
 SECTION 11. Duration and Amendments. 
  
 11.1 Term of the Plan. The Plan, as amended and restated as set forth herein, is effective on the date of its adoption by the Board of Directors
subject to approval by the Company’s stockholders within twelve months. Without timely approval by the Company stockholders, then the pre-amended Plan shall continue in effect. The Plan shall terminate automatically on May 8, 2011 and may be
terminated on any earlier date pursuant to Section 11.2 below. 
  
 11.2 Right to Amend or Terminate the Plan. The Board of Directors may amend, suspend or terminate the Plan at any time and for any reason; provided, however, that any amendment of the Plan which increases the number of
Shares available for issuance under the Plan (except as provided in Section 8), or which materially changes the class of persons who are eligible for the grant of ISOs, shall be subject to the approval of the Company’s stockholders. Stockholder
approval shall not be required for any other amendment of the Plan. 
  
 11.3 Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan after the termination thereof, except upon exercise of an Option granted prior to such termination. The termination of the Plan, or any
amendment thereof, shall not affect any Share previously issued or any Option or Award previously granted under the Plan. 
  

 SECTION 12. Definitions. 
  
 12.1 “Award” means any Option, Performance Shares, Restricted Stock, Phantom Stock, Cash Award or Stock
Appreciation Right granted to a Participant (whether granted singly, in combination or in tandem) pursuant to the Plan and subject to any applicable terms, conditions and limitations as the Board of Directors may establish in order to fulfill the
objectives of the Plan. 
  
 12.2 “Award
Agreement” means an agreement between the Company and a Participant, in the form prescribed by the Board of Directors, which contains the terms, conditions and restrictions pertaining to an Award and shall include, without limitation, a
Stock Option Agreement and a Stock Purchase Agreement. 
  
 12.3
“Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 
  
 12.4 “Cause” shall mean (i) the unauthorized use or disclosure of the confidential information or trade secrets of the Company, which use
or disclosure causes material harm to the Company, (ii) conviction of, or a plea of “guilty” or “no contest” to, a felony under the laws of the United States or any state thereof, (iii) gross negligence or (iv) continued failure
to perform assigned duties after receiving written notification from the Company or the Board of Directors. The foregoing, however, shall not be deemed an exclusive list of all acts or omissions that the Company (or a Parent or Subsidiary) may
consider as grounds for the discharge of an Optionee or Purchaser. 
  
 12.5 “Change in Control” shall mean: 
  
 (a) The consummation of a merger, consolidation or other reorganization of the Company with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing
or surviving entity’s securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons who were not stockholders of the Company immediately prior to such merger, consolidation or other
reorganization; or 
  
 (b) The sale, transfer or
other disposition of all or substantially all of the Company’s assets. 
  
 A transaction shall not constitute a Change in Control if either: (i) its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the
same proportions by the persons who held the Company’s securities immediately before such transaction, or (ii) any dilution in the proportions of ownership (rising to the level contemplated by 12.5(a)) inadvertently occurs in the normal course
of the Company’s financing activities or the Plan’s operations and outside of the context of a merger, consolidation or other reorganization of the Company. 
  
 12.6 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  

 12.7 “Committee” shall mean a committee of the Board of Directors, as described in
Section 2.1. 
  
 12.8 “Company” shall mean Corus
Pharma, Inc., a Delaware corporation. 
  
 12.9
“Consultant” shall mean a person who performs bona fide services for the Company, a Parent or a Subsidiary as a consultant or advisor, excluding Employees and Outside Directors. 
  
 12.10 “Employee” shall mean any individual who is a
common-law employee of the Company, a Parent or a Subsidiary. 
  
 12.11 “Exercise Price” shall mean the amount for which one Share may be purchased upon exercise of an Option, as specified by the Board of Directors in the applicable Stock Option Agreement. 
  
 12.12 “Fair Market Value” shall mean the fair market value
of a Share, as determined by the Board of Directors in good faith. Such determination shall be conclusive and binding on all persons. 
  
 12.13 “Involuntary Termination” shall mean the termination of the Optionee’s or Purchaser’s Service by reason of: 

 
 (a) The involuntary discharge of the Optionee or
Purchaser by the Company (or the Parent or Subsidiary employing him or her) for reasons other than Cause; or 
  
 (b) The voluntary resignation of the Optionee or Purchaser following (A) a change in his or her position with the Company (or the Parent
or Subsidiary employing him or her) that materially reduces his or her level of authority or responsibility or (B) a reduction in his or her compensation (including base salary, fringe benefits and participation in bonus or incentive programs based
on corporate performance) by more than 15%. 
  
 12.14 “IPO
Date” shall mean the date on which Shares are first made available to the general public pursuant to an initial public offering of Shares. 
  
 12.15 “ISO” shall mean an employee incentive stock option described in Section 422(b) of the Code. 
  
 12.16 “Nonstatutory Option” shall mean a stock option not
described in Sections 422(b) or 423(b) of the Code. 
  
 12.17
“Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
  
 12.18 “Optionee” shall mean an individual who holds an Option. 
  

 12.19 “Outside Director” shall mean a member of the Board of Directors who is not an
Employee. 
  
 12.20 “Parent” shall mean any
corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one
of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date. 
  
 12.21 “Participant” means an individual who is selected by
the Board of Directors to receive an Award and who executes and delivers to the Company an Award Agreement and shall include, without limitation, an Optionee and a Purchaser. 
  
 12.22 “Performance-Based Award” means an Award that is paid, vested or otherwise deliverable solely based
on the achievement of one or more Performance Goals. 
  
 12.23
“Performance Goal” means a standard established by the Board of Directors to determine in whole or in part whether Performance-Based Awards shall be earned. 
  
 12.24 “Performance Shares” means the contingent right to receive an amount in cash or a number of Shares,
as determined by the Board of Directors in its sole discretion, that is subject to the attainment of one or more Performance Goals. 
  
 12.25 “Phantom Stock” means a right to receive the value of a specified number of Shares. 
  
 12.26 “Plan” shall mean this Corus Pharma 2001 Stock Plan.

  
 12.27 “Purchase Price” shall mean the
consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Board of Directors. 
  
 12.28 “Purchaser” shall mean an individual to whom the Board of Directors has offered the right to acquire Shares under the Plan (other
than upon exercise of an Option). 
  
 12.29 “Restricted
Stock” means Shares that are restricted or subject to forfeiture provisions. 
  
 12.30 “Service” shall mean service as an Employee, Outside Director or Consultant. 
  
 12.31 “Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if applicable). 
  

 12.32 “Stock” shall mean the common stock of the Company, with a par value of $0.001 per
Share. 
  
 12.33 “Stock Appreciation Right” or
“SAR” means the right to receive an amount in cash or a number of Shares equal to the appreciation in value of a specified number of Shares (typically expressed as units) over a particular period of time. 
  
 12.34 “Stock Option Agreement” shall mean the agreement
between the Company and an Optionee, which contains the terms, conditions and restrictions pertaining to the Optionee’s Option. 
  
 12.35 “Stock Purchase Agreement” shall mean the agreement between the Company and a Purchaser who acquires Shares under the Plan, which
contains the terms, conditions and restrictions pertaining to the acquisition of such Shares. 
  
 12.36 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the
unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the
Plan shall be considered a Subsidiary commencing as of such date. 
  

 SECTION 13. Execution. 
  
 To record the adoption of the Plan by the Board of Directors, the Company has caused its authorized officer to execute the
same. 
  

			
	 CORUS PHARMA, INC.

		
	By:	 	 
	 Title:
	 	 Chief Executive Officer

		
	 Dated:
	 	 

  
 *         *         *         * 
  

Originally adopted by Board of Directors on May 9, 2001 with 2,049,492 shares of common stock reserved; approved by stockholders on May 9, 2001. 
  
 Amended by Board on June 25, 2002 to increase shares reserved from 2,049,492 to 2,500,000;
approved by stockholders on July 23, 2002. 
  
 Amended by Board on February
14, 2003 to increase shares reserved from 2,500,000 to 4,000,000; approved by stockholders on February 19, 2003. 
  
 Amended by Board on October 28, 2003 to increase shares reserved from 4,000,000 to 8,000,000; approved by stockholders on January 26, 2004. 
  
 Amended by Board April 5, 2004 to increase shares reserved from 8,000,000 to 12,000,000;
approved by stockholders on April 7, 2004. 
  
 Amended by Board August 25,
2004 to preclude further awards after the Company’s initial public offering and to decrease number of shares available for issuance and to provide that shares released from unexercised stock options due to forfeiture, cancellation or expiration
shall become eligible for award under the Company’s 2004 Stock Incentive Plan; approved by stockholders on [DATE], 2004.

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