Document:

Form of Indemnification Agreement btwn the Registrant and each of its directors.

 EXHIBIT 10.1 
  
 INDEMNIFICATION AGREEMENT 
  
 This Indemnification Agreement (“Agreement”) is made as of [DATE] by and between CoTherix, Inc., a Delaware corporation (the
“Company”), and [            ] (“Indemnitee”). 
  
 RECITALS 
  
 WHEREAS, highly competent persons have become more reluctant to serve publicly held corporations as directors or in other capacities unless they are
provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation; 
  
 WHEREAS, the Board of Directors of the Company (the “Board”)
has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain
liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such
insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to
expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the business enterprise itself. The Amended and Restated Certificate of Incorporation of the Company (the
“Charter”) authorizes indemnification of the officers and directors of the Company and the By-laws of the Company (the “By-laws”) require such indemnification. Indemnitee may also be entitled to indemnification
pursuant to the General Corporation Law of the State of Delaware (“DGCL”). The Charter, By-laws and DGCL provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be
entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification; 
  
 WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;

  
 WHEREAS, the Board has determined that the increased
difficulty in attracting and retaining such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the
future; 
  
 WHEREAS, it is reasonable, prudent and necessary for
the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that
they will not be so indemnified; 

 WHEREAS, this Agreement is a supplement to and in furtherance of the indemnification provided in the
Charter and By-laws and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; 
  
 WHEREAS, Indemnitee is concerned that the protection available under the Charter, By-laws and DGCL and insurance may not be
adequate in the present circumstances, and in consideration of serving as a director desires to be assured of adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to
take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified; and 
  
 NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

  
 Section 1. Services to the Company. Indemnitee agrees
to serve as a                      [director, officer, etc.] of the Company. Indemnitee may at any time and for any reason resign from
such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position. This Agreement shall not be
deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. The foregoing notwithstanding, this Agreement shall continue in force after Indemnitee has ceased to serve as a director of the Company.

  
 Section 2. Definitions 
  
 As used in this Agreement: 
  
 (a) “Corporate Status” describes the status
of a person who is or was a director, officer, employee or agent of the Company or of any other corporation, partnership or joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the
Company. 
  
 (b) “Enterprise”
shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary.

  
 (c) “Expenses” shall include
all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other
disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also
shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedes bond, or other appeal 

  

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bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

  
 (d) “Independent Counsel”
means a law firm, or a partner (or, if applicable, member) of such a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in
any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to
a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully
indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 
  
 (e) The term “Proceeding” shall include any threatened, pending or completed action, suit,
arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal,
administrative or investigative nature, in which Indemnitee was, is or will be involved as a party or otherwise by reason of the fact that Indemnitee is or was a director [officer, etc.] of the Company, by reason of any action taken by him or
of any action on his part while acting as director [officer, etc.] of the Company, or by reason of the fact that he is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of expenses can be
provided under this Agreement; except one initiated by Indemnitee to enforce his rights under this Agreement. 
  
 Section 3. Indemnity in Third-Party Proceedings. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if
Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified
against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in
a manner he reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal proceeding, had no reasonable cause to believe that his conduct was unlawful. Indemnitee shall not enter into any settlement
in connection with a Proceeding without 10 days prior notice to the Company. 
  
 Section 4. Indemnity in Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a
party to or a participant in any Proceeding by or in 

  

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the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and
reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the
Company. No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that
the Delaware Court of Chancery (the “Delaware Court”) or any court in which the Proceeding was brought 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 indemnification for such expenses as the Delaware Court or such other court shall deem proper. 
  
 Section 5. Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, to
the extent that Indemnitee is a party to or a participant in and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against
all Expenses actually and reasonably incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in
such Proceeding, the Company shall indemnify Indemnitee against (a) all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter and (b) any claim, issue or matter related
to any such successfully resolved claim, issue or matter. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter. 
  
 Section
6. Indemnification For Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall
be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. 
  
 Section 7. Additional Indemnification. 
  
 (a) Notwithstanding any limitation in Sections 3, 4, or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by law
if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement
actually and reasonably incurred by Indemnitee in connection with the Proceeding. 
  
 (b) For purposes of Section 7(a), the meaning of the phrase “to the fullest extent permitted by law” shall include, but not be
limited to: 
  
 (i) to the fullest extent
permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL, and 
  

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 (ii) to the fullest extent authorized or permitted by any amendments to or replacements
of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors. 
  
 Section 8. Exclusions. Notwithstanding any provision in this Agreement to the contrary, the Company shall not be obligated under this Agreement to
make any indemnity in connection with any claim made against Indemnitee: 
  
 (a) for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy
or other indemnity provision. 
  
 (b) for an
accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory
law or common law; or 
  
 (c) for which payment
is prohibited by applicable law. 
  
 Section 9. Advances of
Expenses. The Company shall advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with any Proceeding, and such advancement shall be made within 30 days after the receipt by the Company of a statement or
statements requesting such advances (which shall include invoices received by Indemnitee in connection with such Expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditures made
that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the invoice) from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free.
Advances shall be made without regard to Indemnitee’s ability to repay the expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. Advances shall include any and all
reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed. The Indemnitee shall qualify for advances upon the
execution and delivery to the Company of this Agreement which shall constitute an undertaking providing that the Indemnitee undertakes to the fullest extent permitted by law to repay the advance if and to the extent that it is ultimately determined
by final judicial decision from which there is no further right to appeal that Indemnitee is not entitled to be indemnified by the Company. This Section 9 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to
Section 8. 
  
 Section 10. Procedure for Notification and
Defense of Claim. 
  
 (a) To obtain
indemnification under this Agreement, Indemnitee shall submit to the Company a written request therefor. 
  
 (b) The Company will be entitled to participate in the Proceeding at its own expense. 
  

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 Section 11. Procedure Upon Application for Indemnification. 
  
 (a) Upon written request by Indemnitee for indemnification
pursuant to Section 10(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case by Independent Counsel chosen in accordance Section 11(b) below and, if it is so
determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the Independent Counsel making such determination with respect to
Indemnitee’s entitlement to indemnification, including providing to such counsel upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available
to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the Independent Counsel shall be borne by the Company (irrespective
of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. 
  
 (b) The Independent Counsel shall be selected by Indemnitee. The Company may, within 10 days after written
notice of such selection, deliver to the Indemnitee a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the
requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall
act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection
is without merit. If, within 20 days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 10(a) hereof, and the final disposition of the Proceeding, no Independent Counsel shall have been selected
and not objected to, the Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company to the selection of Independent Counsel and/or for the appointment as Independent Counsel of
a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 11(a) hereof. Upon the
due commencement of any judicial proceeding or arbitration pursuant to Section 13(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of
professional conduct then prevailing). 
  
 Section 12.
Presumptions and Effect of Certain Proceedings. 
  
 (a) In making a determination with respect to entitlement to indemnification hereunder, the Independent Counsel making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has
submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making by the Independent Counsel of any determination
contrary to that presumption. Neither the failure of 

  

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the Company or of Independent Counsel to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is
proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company or by Independent Counsel that Indemnitee has not met such applicable standard of conduct, shall be a defense to
the action or create a presumption that Indemnitee has not met the applicable standard of conduct. 
  
 (b) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a
plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act
in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.

  
 (c) For purposes of any determination of good
faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the
Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or the Board or counsel selected by any committee of the Board or on information or records given or reports made to the Enterprise by an independent
certified public accountant or by an appraiser, investment banker or other expert selected with the reasonable care by the Company or the Board or any committee of the Board. The provisions of this Section 12(c) shall not be deemed to be exclusive
or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement. 
  
 (d) The knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the
Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. 
  
 Section 13. Remedies of Indemnitee. 
  
 (a) Subject to Section 13(e), in the event that (i) a determination is made pursuant to Section 11 of this Agreement that Indemnitee is
not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 11(a) of
this Agreement within 90 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5 or 6 or the last sentence of Section 11(a) of this Agreement within ten (10) days after
receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to Section 3, 4 or 7 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to
indemnification, Indemnitee shall be entitled to an adjudication by a court of his entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single
arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee
first has the right to commence such 

  

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proceeding pursuant to this Section 13(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by
Indemnitee to enforce his rights under Section 5 of this Agreement. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration. 
  
 (b) In the event that a determination shall have been made pursuant to Section 11(a) of this Agreement that
Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced
by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 13 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the
case may be. 
  
 (c) If a determination shall
have been made pursuant to Section 11(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 13, absent (i) a
misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such
indemnification under applicable law. 
  
 (d) The
Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 13 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such
court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by
the Company of a written request therefore) advance, to the extent not prohibited by law, such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses
from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification,
advancement of Expenses or insurance recovery, as the case may be. 
  
 (e) Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.

  
 Section 14. Non-exclusivity; Survival of Rights; Insurance;
Subrogation. 
  
 (a) The rights of
indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Charter, the Company’s By-laws, any
agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any
action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater 

  

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indemnification or advancement of Expenses than would be afforded currently under the Charter, By-laws and this Agreement, it is the intent of the parties
hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative
and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other right or remedy. 
  
 (b)
To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Company or of any other Enterprise, Indemnitee shall be covered by such policy or policies in
accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms 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 the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies. 
  
 (c) In the event of any 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 papers required and take all action necessary to secure such rights, including execution of such documents as are
necessary to enable the Company to bring suit to enforce such rights. 
  
 (d) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder) hereunder if and to the extent that Indemnitee has
otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. 
  
 (e) The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the
Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or
advancement of Expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise. 
  
 Section 15. Duration of Agreement. This Agreement shall continue until and terminate upon the later of: (a) 10 years after the date that Indemnitee
shall have ceased to serve as a director of the Company or (b) 1 year after the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any
proceeding commenced by Indemnitee pursuant to Section 13 of this Agreement relating thereto. This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his heirs, executors and
administrators. 

 Section 16. Severability. If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such
provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect
to the intent manifested thereby. 
  
 Section 17.
Enforcement. 
  
 (a) The Company expressly
confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director of the Company, and the Company acknowledges that Indemnitee is relying upon this
Agreement in serving as a director of the Company. 
  
 (b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with
respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Charter of the Company, the By-laws of the Company and applicable law, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee thereunder. 
  
 Section 18. Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties thereto. No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver. 
  
 Section 19. Notice by Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation,
subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not
relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise. 
  
 Section 20. Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have
been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on
which it is so mailed, (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been directed or (d) sent by facsimile transmission, with receipt of oral confirmation that such
transmission has been received: 

 (a) If to Indemnitee, at such address as Indemnitee shall provide to the Company.

  
 (b) If to the Company to: 
  
 CoTherix, Inc. 
 1301 Shoreway Road, Suite 320 
 Belmont, CA 94002 
 Attention: W. Scott Harkonen, M.D., CEO 
  
 or to any other address as may have been furnished to Indemnitee by the Company. 

 
 Section 21. Contribution. To the fullest extent permissible under
applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for
judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative
fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s). 
  
 Section 22. Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 13(a) of this Agreement, the Company and
Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court, and not in any other state or federal court in the United
States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) appoint, to the
extent such party is not otherwise subject to service of process in the State of Delaware, The Corporation Trust Company, Wilmington, Delaware as its agent in the State of Delaware as such party’s agent for acceptance of legal process in
connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such action or
proceeding in the Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. 
  
 Section 23. Identical Counterparts. This Agreement may be executed in
one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought
needs to be produced to evidence the existence of this Agreement. 

 Section 24. Termination of Prior Agreement. Upon execution of this Agreement by the Company and
Indemnitee, such parties hereto acknowledge that the certain Indemnification Agreement previously entered into by and between Indemnitee and the Company which provided for the indemnification of Indemnittee pursuant to the terms and conditions
thereof is hereby amended, restated and superseded in its entirety by this Agreement. 
  
 Section 25. Miscellaneous. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

  
 IN WITNESS WHEREOF, the parties have caused this Agreement to
be signed as of the day and year first above written. 
  

			
	 COTHERIX, INC.
  

		
	By:	 	 
	 	 	

	 Name:
 Title:
	 	 

  
  

			
	 INDEMNITEE:
  

		
	By:	 	 
	 	 	

	 Name:Employment Agreement between W. Scott Harkonen, M.D. & Registrant dated 10/8/03.

 EXHIBIT 10.2 
  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 This Executive Employment Agreement (“Agreement”) is entered into and employment (in the below capacities)
shall commence pursuant to its terms as of October 8, 2003 (the “Employment Date”), by and between Exhale Therapeutics, Inc. (to be renamed CoTherix, Inc.) a Delaware corporation (the “Company”), and W. Scott
Harkonen (the “Executive”), collectively herein the “Parties.” 
  
 WHEREAS, Executive is currently a member of and Chairman of the Board of Directors of the Company; 
  
 WHEREAS, the Company desires to employ the Executive pursuant to this Agreement in the capacities set forth below from (as to the employment only) and
after the Employment Date, and the Executive desires to enter into such employment with the Company from and after such date on the terms and conditions set forth below; 
  
 NOW, THEREFORE, in consideration of the foregoing recitals and the respective covenants and agreements of the Parties
contained in this document, the Company and the Executive agree as follows: 
  
 1. Employment and Duties. The Executive will serve as the Company’s Chief Executive Officer (“CEO”) and continue as Chairman of the Company’s Board of Directors. The duties, authorities,
powers and responsibilities of the Executive as CEO shall be those typical for such position in the industry, as well as those that the Company’s Board of Directors may from time to time reasonably assign to the Executive. The Executive shall
perform faithfully and competently such services and duties during his employment and the Executive shall report to the Company’s Board of Directors. By signing this Agreement, Executive confirms to the Company that Executive has no contractual
commitments or other legal obligations that would prohibit Executive from performing Executive’s duties for the Company. 
  
 2. Employment Relationship. Employment with the Company is for no specific period of time. Executive’s employment with the Company is “at
will,” meaning that either Executive or the Company may terminate Executive’s employment at any time and for any reason, with or without Cause (defined below). Any contrary representations that may have been made to Executive are
superseded by this Agreement. This is the full and complete agreement between Executive and the Company on this term. Although Executive’s job duties, title, compensation and benefits, as well as the Company’s personnel policies and
procedures, may change from time to time, the “at will” nature of Executive’s employment may only be changed in an express written agreement signed by Executive and a duly authorized member of the Company’s Board of Directors
(other than Executive). 
  
 3. Base Salary. For services
rendered by Executive pursuant to this Agreement, Executive shall be entitled to receive an initial base salary (“Base Salary”) at an annual rate of $350,000 as of the Employment Date. At present, Executive shall be entitled to no
additional compensation for service as Chairman of the Board of Directors of the Company. Executive’s Base Salary shall be reviewed no less than annually by the Board of Directors and 

  

 
may be increased, but in no event shall be decreased without the Executive’s written consent. Executive’s Base Salary, less applicable deductions,
shall be paid in periodic installments in accordance with the Company’s regular payroll practices. 
  
 4. Bonus. In addition to the Base Salary set forth above, the Company shall pay Executive a signing bonus of $25,000, less applicable deductions,
on the first regular payroll date following Executive’s employment commencement date with the Company. The Company agrees to implement a written bonus plan for Executive within two (2) months of the Employment Date whereby Executive shall have
the opportunity during each fiscal year of his employment with the Company to earn an annual bonus of up to 50% of his Base Salary (“Bonus”), upon achievement of certain mutually agreed-upon performance goals set with the Board of
Directors. Performance goals for the Company’s current fiscal year shall be established within one (1) month of the Employment Date. Performance goals for fiscal 2004 and succeeding fiscal years of the Company shall be specified at least six
weeks prior to the start of each such fiscal year. The Bonus, if any, for fiscal 2003, will be pro-rated. The reasonable determination of the Company’s Board of Directors with respect to the Bonus shall be final and binding. 
  
 5. Equity. In addition to all other compensation and benefits provided
hereunder, the Parties acknowledge and agree that, as additional incentive to Executive, Executive shall be granted, at the first meeting of the Company’s Board of Directors immediately following the closing of the Company’s Series C
Preferred Stock financing, an option to purchase 4,410,298 shares of Company common stock (the “Option”). The Option will represent the right to purchase 6.0% of the Company’s then (post-closing) total outstanding securities on
a fully-diluted basis, assuming an investment in the Company of $55,000,000 in connection with its Series C Preferred Stock financing. The exercise price per share of the Option shall be eleven and one-half cents ($.115) (the “Exercise
Price”). The Option will be subject to the terms and conditions applicable to options granted under the Company’s Amended and Restated 2000 Stock Plan (the “Plan”), as described in the Plan and the applicable Stock Option
Agreement. To the extent requested by the Executive, the Option will be a nonstatutory stock option and will be immediately exercisable, but any unvested purchased shares will be subject to repurchase by the Company at the Exercise Price in the
event that Executive’s service terminates for any reason before Executive vests in those particular shares. Subject to acceleration as described below, Executive will vest in 25% of the Option shares only on the first anniversary of the Vesting
Start Date (subject to Executive’s continuous employment hereunder from the Employment Date through such anniversary), and will vest in the remaining 75% of the Option shares over the following 36 months of continuous employment to the Company,
as described in the applicable Stock Option Agreement. The “Vesting Start Date” shall be the Employment Date. If the Company is subject to a Change in Control (as defined below) before Executive’s employment with the Company under
this Agreement terminates and Executive is subject to an Involuntary Termination (as defined below) (a) upon the effective date of the Change in Control or (b) within 60 days prior to the effective date of the Change in Control if on the date of the
Involuntary Termination a person authorized by the Company’s Board of Directors is in discussion with a potential acquiror or (c) within 12 months after that Change in Control, then Executive will become vested in all of the then unvested
shares subject to the Option. 
  

 Subject to Executive’s satisfaction and completion of the obligations described in Sections
10(a)(i), (ii) and (iii), if the Company terminates Executive’s employment under this Agreement for any reason other than Cause or Disability (both as defined below), prior to the first anniversary of the Vesting Start Date, then Executive will
become vested in 50% of the shares subject to the Option. If the Company terminates Executive’s employment under this Agreement for any reason other than for Cause or Disability (both as defined below) on or after the first anniversary of the
Vesting Start Date, then the total vested percentage of Executive’s Option shares will be determined by adding 12 months to the number of months of employment that Executive has provided for the Company under this Agreement. In no event shall
Executive receive both the vesting acceleration described in this paragraph and the immediately preceding paragraph, and in the event that Executive’s termination would trigger vesting acceleration according to both paragraphs, Executive shall
only receive the vesting acceleration in this paragraph or the immediately preceding paragraph, whichever provides him with the greater number of vested Option shares. 
  
 “Involuntary Termination” means either (a) involuntary discharge by the Company for reasons other than Cause (as
defined below) or (b) voluntary resignation following: (i) a change in Executive’s position with the Company that materially reduces Executive’s level of authorities, responsibilities, or duties without Executive’s written consent,
(ii) a reduction in Executive’s then base salary of more than 10% or (iii) receipt of notice that Executive’s principal workplace will be relocated more than 50 miles away. 
  
 For all purposes under this Agreement, “Cause” means (a) an unauthorized use or disclosure of the Company’s
confidential information or trade secrets, which use or disclosure causes material harm to the Company, (b) a material breach of this Agreement, which Executive has not cured within thirty (30) days of written notice thereof, (c) a material failure
to comply with the Company’s written policies or rules, which Executive has not cured within thirty (30) days of written notice thereof, (d) conviction of, or entry of plea of “guilty” or “no contest” to, a felony under the
laws of the United States or any state thereof, (e) gross negligence or willful misconduct in the scope of Executive’s services to the Company, which Executive has not cured within thirty (30) days of written notice thereof, or (f) a continued
material failure to perform assigned duties as Chief Executive Officer of the Company after receiving written notification of such failure from the Company’s Board of Directors, which failure Executive has not cured within 30 days of written
notice thereof. On behalf of the Company, the Company’s Board of Directors will determine whether Executive has cured any of the foregoing breaches or failures. 
  
 “Change in Control” means the consummation of a merger of the Company with another entity or the consummation of a
sale or other disposition of all, or substantially all, of the Company’s assets. The foregoing notwithstanding, the following transactions shall not constitute a “Change in Control”: (a) a merger of the Company, if immediately after
such merger a majority of the voting power of the securities of the continuing or surviving entity, or any direct or indirect parent corporation of such continuing or surviving entity, will be owned by the persons who were the Company’s
stockholders immediately prior to such merger in substantially the same proportions as their ownership of the voting power of the Company’s securities immediately prior to such merger; (b) a transaction whose sole purpose is to change the state
of the Company’s incorporation; and (c) a transaction whose sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who were the 

  

 
Company’s stockholders immediately before such transaction. For purposes of this definition, the term “merger” shall include a consolidation,
reorganization, acquisition or similar transaction. 
  
 On June 1,
2001, the Company’s Board of Directors granted Executive an option to purchase 85,000 shares of its common stock (“Outside Director Option”). Executive agrees that as of the date of this Agreement, he has already vested in 49,584
shares of Company common stock subject to the Outside Director Option. Executive acknowledges and agrees that he shall cease to vest in the Outside Director Option following the date of this Agreement, even if he continues to provide service as a
member of the Company’s Board of Directors or employment under this Agreement following such date, and he shall never be vested in more than his present 49,584 shares of Company common stock subject to the Outside Director Option. The term of
the Outside Director Option and Executive’s right to exercise the Outside Director Option shall continue, pursuant to the applicable stock option agreement, so long as Executive provides service to the Company, 
  
 6. Indemnification; Duty to Defend; Hold Harmless. As an employee,
officer, board member and agent of the Company, Executive shall continue to be fully indemnified, defended and held harmless by the Company to the fullest extent permitted by all applicable (e.g., Delaware) law. The Executive has executed the
attached indemnification agreement (the “Indemnification Agreement” – Exhibit A) for executives, officers and/or directors which shall be effective beginning from the date Executive’s Company Board membership began.
Executive shall thereafter also be entitled to the benefits of any subsequent amendments thereto made for the benefit of Company’s executives, officers and/or directors. 
  
 7. Expenses. The Executive, in the performance of his duties and responsibilities under this Agreement, shall be
entitled to reimbursement by the Company for all reasonable, ordinary and necessary travel, entertainment, and other expenses incurred by the Executive during his employment and/or board membership with the Company in accordance with the policies
and procedures established by the Company; provided, however, that Executive shall properly account for such expenses in accordance with the Company’s policies and procedures and shall timely submit accurate and complete reports of such
expenses. The Executive shall endeavor to submit such reports no less frequently than once per month. 
  
 8. Present and Future Benefits. During Executive’s employment with the Company, Executive and his eligible dependents (to the fullest extent
applicable), shall also be entitled to participate in and have the full benefits of all present and future vacation, holiday, paid leave, unpaid leave, life, accident, disability, dental, vision and health plans, pension, profit-sharing and savings
plans and all other plans and benefits which the Company now or in the future from time to time makes available to any of its management executives. 
  
 9. Vacation, Sick Time and Holidays. Executive shall be entitled to such annual vacation time with full pay as the Company may provide in its
standard policies and practices for any other management executives; provided, however, that in any event Executive shall be entitled to fully-paid vacation at a minimum of fifteen (15) business days per calendar year, provided, further,
however, that the Executive shall not be entitled to accrue beyond an outstanding balance of five (5) weeks of vacation at any one time. In addition, Executive shall 

  

 
be entitled to all sick time and holidays provided for under the Company’s existing and future sick time policy and regular holiday schedule.

  
 10. Termination Payments. 
  
 (a) Termination without Cause. Subject to (i) the
prior execution of the release by the Executive attached as Exhibit B (the “Release”), (ii) Executive’s written resignation from the Company’s Board of Directors and as its Chairman (unless otherwise agreed) and (iii)
Executive’s return of all Company property, if the Company terminates Executive’s employment for any reason other than Cause or Disability (as defined in Section 10(b) below), then, in addition to the acceleration of Executive’s
Option under Section 5 above, the Company shall continue to pay Executive his then-current Base Salary on a monthly basis in accordance with the Company’s standard payroll practices for a period of twelve (12) months after the date of
termination. If Executive elects to continue Executive’s health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) following the termination of Executive’s employment, then the Company will pay
Executive’s (and all his eligible dependents’) monthly premium under COBRA (“COBRA Premium Amount”) until the earlier of (x) the date on which Executive (or his eligible dependents) is no longer eligible for COBRA in accordance
with the requirements under COBRA and (y) the close of the twelve-month period following the month in which Executive’s employment termination occurs. In the event Executive chooses (including for all eligible dependents) health insurance
coverage other than through COBRA, the Company will reimburse Executive in an amount (“Other Coverage Amount”) not exceeding the COBRA Premium Amount, which amount shall be subject to applicable withholding. Executive agrees to notify the
Company in the event he no longer needs the Company’s assistance with respect to payment of his COBRA Premium Amount or the Other Coverage Amount, as applicable. 
  
 (b) Termination as a Result of Disability. Until such time as the Company offers disability insurance
benefits to its senior executives, then in the event of Executive’s Disability (as defined herein) during Executive’s employment under this Agreement, the Company shall have the right to terminate Executive’s employment under this
Agreement upon thirty (30) days prior written notice to Executive. Within ten (10) days following the termination of employment due to such Disability, the Company shall pay Executive all Base Salary due or accrued as of the date of termination due
to Disability, all accrued vacation pay, and a pro-rata portion of his Bonus earned, based on the number of days in the year to which the Bonus applies that the Executive was an employee of the Company. In addition, the Company shall continue to pay
Executive’s then-current Base Salary for six (6) months following the date of Disability, net of all proceeds of state disability insurance received by Executive during such period. “Disability” means a physical or mental disability,
the existence of which is confirmed by a licensed health care provider selected by the Company’s Board of Directors, that has caused Executive to be unable to perform consistently and materially the essential duties of his position hereunder
with or without reasonable accommodation for a period of three (3) consecutive months, provided, that in the event that the Executive fails or refuses to submit to an examination by the health care provider selected by the Company for reasons
unrelated to his Disability within twelve (12) days of written request by the Company, and if such health care provider has been made reasonably available to the Executive for such examination, such failure or refusal shall be deemed a material
breach of this Agreement constituting “Cause,” as defined in Section 

  

 
5 above if Executive has not cured the material breach within thirty (30) days of written notice thereof. In order to receive the continuation of
Executive’s Base Salary, as described in this Section 10(b), Executive must (i) execute the Release, (ii) resign from the Company’s Board of Directors and as its Chairman and (iii) return all Company property 
  
 (c) Termination as a Result of Death. Until such time
as the Company offers life insurance benefits to its senior executives, then in the event of the death of Executive during Executive’s employment under this Agreement, the Company, within ten (10) days of receiving notice of such death, shall
pay Executive’s estate all Base Salary due or accrued as of the date of his death, all accrued vacation pay, and a pro-rata portion of his Bonus earned, based on the number of days in the year to which the Bonus applies that the Executive was
an employee of the Company. 
  
 11. Other Activities.
Except as specified in this Agreement, Executive shall devote substantially all of his working time and efforts to the business and affairs of the Company, and to the diligent and faithful performance of the duties and responsibilities duly assigned
to him pursuant to this Agreement, except for vacations, holidays, weekends, sickness and as necessary to satisfy his limited remaining consulting obligations to InterMune, Inc. through and until June 30, 2004 (the “Consulting Period”)
only, i.e., to be reasonably available to assist reasonably and directly that company’s chief executive officer during regular business hours at mutually agreeable pre-scheduled times following advanced written request (including e-mail) for up
to (a maximum of only) 10 total hours per full month. However, the Executive may also devote a reasonable amount of time to civic, community or charitable activities and, with the prior written consent of the Board of Directors, to serve as a
director of or consultant to other companies, provided that nothing in this Section 11 shall be deemed to modify or reduce any obligations of the Executive under the Proprietary Information and Inventions Agreement referenced in Section 12 below.

  
 12. Confidential and Proprietary Information. The
Executive shall not, without the prior written consent of the Board of Directors, disclose or use for any purpose (except in the course of his employment under this Agreement and Board membership in furtherance of the business of the Company) any
confidential information, trade secrets or proprietary data of the Company. As an express condition of the Executive’s employment with the Company, the Executive agrees to execute and abide by the Company’s Proprietary Information and
Inventions Agreement, attached hereto as Exhibit C. The obligations of the Executive under this Section 12 shall survive any termination of this Agreement. 
  
 13. Absence of Conflict. Executive represents and warrants that his employment by the Company, and his performance of
his obligations as described herein, shall not conflict with, and will not be constrained by, any prior employment or prior/ existing consulting agreement or relationship, and that any limitations on the Executive’s ability to perform as
provided under this Agreement have been disclosed in writing to the Company. 
  
 14. Assignment. This Agreement, and all rights and obligations under this Agreement, shall be binding upon and inure to the benefit of: (a) the heirs, successors, executors, administrators and assigns of
Executive and (b) any successor or assignee of the Company. Any such successor or assignee of the Company will be deemed substituted for the Company under 

  

 
the terms of this Agreement for all purposes. Under this Agreement, “successor” means any person, firm, corporation, or other business entity which
at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of the Company. Executive, however, may not delegate any of his duties under this Agreement. 
  
 15. Notices. For purposes of this Agreement, notices and other
communications provided for in this Agreement (“Notice”), shall be in writing and shall be delivered personally or sent by United States certified mail, return receipt requested, postage prepaid, addressed to each party’s last
known address, or to such other address, or to the attention of such other persons, as the recipient Party has previously furnished to the other Party in writing in accordance with this paragraph. Such Notice shall be effective upon delivery, or
three days after it has been mailed as provided above, whichever occurs first. 
  
 16. Integration. This Agreement, Exhibits A-C and the other referenced agreements herein represent the entire agreement and understanding between the Parties as to the subject matter hereof, and supersede all
prior or contemporaneous agreements, whether written or oral. No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by Executive and by an authorized member of the Board of
the Company (other than Executive). 
  
 17. Waiver. Failure
or delay on the part of either Party hereto to enforce any right, power or privilege under this Agreement shall not be deemed to constitute a waiver thereof. Additionally, a waiver by either Party of a breach of any promise herein by the other party
shall not operate as, or be construed to constitute, a waiver of any subsequent breach by such other Party. 
  
 18. Severability. Each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law. However,
if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision, but this
Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein 
  
 19. Arbitration. Executive and the Company agree to waive any rights to a trial before a judge or jury and agree to
arbitrate before a neutral arbitrator (but in the event the Parties fail to agree on a neutral arbitrator within ten business days of a Party raising the selection issue, the Parties agree to select an arbitrator with the American Arbitration
Association (“AAA”) through its selection process), any and all claims or disputes arising out of this Agreement and any and all claims arising from or relating to Executive’s employment with the Company, including (but not limited
to) claims against any current or former employee, director or agent of the Company, claims of wrongful termination, retaliation, discrimination, harassment, breach of contract, breach of the covenant of good faith and fair dealing, defamation,
invasion of privacy, fraud, misrepresentation, constructive discharge or failure to provide a leave of absence, or claims regarding commissions, stock options or bonuses, infliction of emotional distress or unfair business practices. 
  

 The arbitrator’s decision must be written and must include the findings of fact and law that support
the decision. The arbitrator’s decision will be final and binding on both Parties, except to the extent applicable law allows for judicial review of arbitration awards. The arbitrator may award any remedies that would otherwise be available to
the Parties if they were to bring the dispute in court. The arbitration will be conducted in accordance with the National Rules for the Resolution of Employment Disputes of AAA; provided, however that the arbitrator must allow the discovery
authorized by the California Arbitration Act or the discovery that the arbitrator deems necessary for the parties to vindicate their respective claims or defenses. The arbitration will take place in San Mateo County, California or, at
Executive’s option, the county in which Executive primarily worked with the Company at the time when the arbitrable dispute or claim first arose. 
  
 The Company will bear the cost of the arbitrator’s fee and any other type of expense or cost that Executive would not be required to bear if
Executive were to bring the dispute or claim in court. Both the Company and Executive will be responsible for their own attorneys, fees, and the arbitrator may not award attorneys” fees unless a statute or contract at issue specifically
authorizes such an award. 
  
 The foregoing notwithstanding, this
arbitration provision does not apply to (a) workers’ compensation or unemployment insurance claims or (b) claims concerning the ownership, validity, infringement, misappropriation, disclosure, misuse or enforceability of any confidential
information, patent right, copyright, mask work, trademark or any other trade secret or intellectual property held or sought by Executive or the Company (whether or not arising under the Proprietary Information and Inventions Agreement between
Executive and the Company). 
  
 If an arbitrator or court of
competent jurisdiction (the “Neutral”) determines that any provision of this arbitration provision is illegal or unenforceable, then the Neutral shall modify or replace the language of this arbitration provision with a valid and
enforceable provision, but only to the minimum extent necessary to render this arbitration provision legal and enforceable. 
  
 20. Headings. The headings of the paragraphs contained in the Agreement are for reference purposes only, and shall not in any way affect the
meaning or interpretation of any provision of this Agreement. 
  
 21. Applicable Law. This Agreement shall be governed by and construed in accordance with, exclusively the laws of the State of California. 
  
 22. Counterparts. This Agreement may be executed (including by facsimile signature each of which will be treated as a valid original signature) in
any number of counterparts, none of which need contain the signature of more than one Party hereto, and each of which shall be deemed to be an original, and all of which together shall constitute a single agreement. 
  

 23. Attorneys Fees. The Company shall reimburse to Executive the reasonable attorneys fees
incurred by Executive with respect to the negotiation and drafting of this Agreement and the documents referred to herein, up to a maximum amount of $10,000. 
  
 [Remainder of page left intentionally blank.] 
  

 IN WITNESS WHEREOF, each of the Parties has executed this Agreement, in the case of the Company by its
duly authorized representative, as of the day and year first above written. 
  

			
	 W. Scott Harkonen

	 	 	Executive
		
	 	 	/s/    W. SCOTT HARKONEN        
	 	 	

  

					
	 Exhale Therapeutics, Inc.

			
	 	 	By:	 	/s/    DONALD J. SANTEL        
	 	 	 	 	

	 	 	 Name:
	 	DONALD J. SANTEL
	 	 	 Title:
	 	PRESIDENT & COO

  

 PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT 
  
 The following confirms and memorializes an agreement that Exhale
Therapeutics, Inc., a Delaware corporation (the “Company”) and I (W. Scott Harkonen) have had since the commencement of my employment with the Company in any capacity and that is and has been a material part of the consideration for my
employment by Company: 
  
 1. I have not entered into, and I agree
I will not enter into, any agreement either written or oral in conflict with this Agreement or my employment with Company. I will not violate any agreement with or rights of any third party or, except as expressly authorized by Company in writing
hereafter, use or disclose my own or any third party’s confidential information or intellectual property when acting within the scope of my employment or otherwise on behalf of Company. Further, I have not retained anything containing any
confidential information of a prior employer or other third party, whether or not created by me. 
  
 2. Company shall own all right, title and interest (including patent rights, copyrights, trade secret rights, mask work rights, sui generis
database rights and all other intellectual and industrial property rights of any sort throughout the world) relating to any and all inventions (whether or not patentable), works of authorship, mask works, designs, know-how, ideas and information
made or conceived or reduced to practice, in whole or in part, by me during the term of my employment with Company to and only to the fullest extent allowed by California Labor Code Section 2870 (which is attached as Appendix A) (collectively
“Inventions”) and I will promptly disclose all Inventions to Company. I hereby make all assignments necessary to accomplish the foregoing. I shall further assist Company, at Company’s expense, to further evidence, record and perfect
such assignments, and to perfect, obtain, maintain, enforce, and defend any rights specified to be so owned or assigned. I hereby irrevocably designate and appoint Company as its agent and attorney-in-fact, coupled with an interest and with full
power of substitution, to act for and in my behalf to execute and file any document and to do all other lawfully permitted acts to further the purposes of the foregoing with the same legal force and effect as if executed by me. If anything created
by me prior to my employment relates in any way to Company’s actual or proposed business, I have listed it on Appendix B in a manner that does not violate any third party rights. Without limiting Section 1 or Company’s other rights and
remedies, if, when acting within the scope of my employment or otherwise on behalf of Company, I use or disclose my own or any third party’s confidential information or intellectual properly (or if any Invention cannot be fully made, used,
reproduced, distributed and otherwise exploited without using or violating the foregoing). Company will have and I hereby grant Company a perpetual, irrevocable, worldwide royalty-free, non-exclusive, sublicensable right and license to exploit and
exercise all such confidential information and intellectual property rights. 
  
 3. To the extent allowed by law, paragraph 2 includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral rights,”
“artist’s rights,” “droit moral,” or the like (collectively “Moral Rights”). To the extent I retain any such Moral Rights under applicable law, I hereby ratify and consent to any action that may be taken with
respect to such Moral Rights by or authorized by Company and agree not to assert any Moral Rights with respect thereto. I will confirm any such ratifications, consents and agreements from time to time as requested by Company. 
  

 4. I agree that all Inventions and all other business, technical and financial information (including,
without limitation, the identity of and information relating to customers or employees) I develop, learn or obtain during the term of my employment that relate to Company or the business or demonstrably anticipated business of Company or that are
received by or for Company in confidence, constitute “Proprietary Information.” I will hold in confidence and not disclose or, except within the scope of my employment, use any Proprietary Information. However, I shall not be obligated
under this paragraph with respect to information I can document is or becomes readily publicly available without restriction through no fault of mine. Upon termination of my employment, I will promptly return to Company all items containing or
embodying Proprietary Information (including all copies), except that I may keep my personal copies of (i) my compensation records, (ii) materials distributed to shareholders generally and (iii) this Agreement. I also recognize and agree that I have
no expectation of privacy with respect to Company’s telecommunications, networking or information processing systems (including, without limitation, stored computer files, email messages and voice messages) and that my activity and any files or
messages on or using any of those systems may be monitored at any time without notice. 
  
 5. Until one year after the term of my employment, I will not encourage or solicit any employee or consultant of Company to leave Company for any reason (except for the bona fide firing of Company personnel within the
scope of my employment). 
  
 6. I agree that during the term of my
employment with Company (whether or not during business hours), I will not engage in any activity that is in any way competitive with the business or demonstrably anticipated business of Company, and I will not assist any other person or
organization in competing or in preparing to compete with any business or demonstrably anticipated business of Company. 
  
 7. I agree that this Agreement is not an employment contract for any particular term and that I have the right to resign and Company has the right to
terminate my employment at will, at any time, for any or no reason, with or without cause. In addition, this Agreement does not purport to set forth all of the terms and conditions of my employment, and, as an employee of Company, I have obligations
to Company which are not set forth in this Agreement. However, the terms of this Agreement govern over any inconsistent terms and can only be changed by a subsequent written agreement signed by the President of Company. 
  
 8. I agree that my obligations under paragraphs 2, 3, 4 and 5 of this
Agreement shall continue in effect after termination of my employment, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary on my part, and that Company is entitled to communicate my
obligations under this Agreement to any future employer or potential employer of mine. My obligations under paragraphs 2, 3 and 4 also shall be binding upon my heirs, executors, assigns, and administrators and shall inure to the benefit of Company,
it subsidiaries, successors and assigns. 
  
 9. Any dispute in the
meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of California without regard to the conflict of 

  

 2 

 
laws provisions thereof. I further agree that if one or more provisions of this Agreement are held to be illegal or unenforceable under applicable California
law, such illegal or unenforceable portion(s) shall be limited or excluded from this Agreement to the minimum extent required so that this Agreement shall otherwise remain in full force and effect and enforceable in accordance with its terms. I also
understand that any breach of this Agreement will cause irreparable harm to Company for which damages would not be a adequate remedy, and, therefore, Company will be entitled to injunctive relief with respect thereto in addition to any other
remedies and without any requirement to post bond. 
  
 I HAVE
READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND AND ACCEPT THE OBLIGATIONS WHICH IT IMPOSES UPON ME WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT. I SIGN THIS AGREEMENT VOLUNTARILY AND
FREELY, IN DUPLICATE, WITH THE UNDERSTANDING THAI THE COMPANY WILL RETAIN ONE COUNTERPART AND THE OTHER COUNTERPART WILL BE RETAINED BY ME. 
  

					
	 October 8, 2003
	 	 	 	 Employee

			
	  	 	 	 	/s/    W. SCOTT HARKONEN        
	 	 	 	 	

	 	 	 	 	 Signature

	 	 	 	 	W. Scott Harkonen

  

			
	 Accepted and Agreed to:

		
	 	 	/s/    DONALD J. SANTEL        
	 	 	

	 By
	 	DONALD J. SANTEL

  

 3 

 APPENDIX A 
  

California Labor Code Section 2870. Application of provision providing that employee shall assign or offer to assign rights in invention to
employer. 
  
 (a) Any provision in an employment agreement
which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the
employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either: 
  
 (1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably
anticipated research or development of the employer; or 
  
 (2) Result from any work performed by the employee for his employer. 
  
 (b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to
be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable. 
  

 4 

 APPENDIX B 
  

PRIOR MATTER

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