Document:

EX-10.6

Exhibit 10.6

CAREFUSION CORPORATION

INDEMNIFICATION AGREEMENT

     This Indemnificaton Agreement, dated as of ___, 2009, is made by and between
CareFusion Corporation, a Delaware corporation (the “Company”), and ___(the
“Indemnitee”).

RECITALS

     A.     The Company and Indemnitee recognize the difficulties associated with obtaining liability
insurance for the Company’s directors, officers, employees and other agents, including the rising
cost of such insurance and the general reductions in the coverage of such insurance;

     B.     The Company and Indemnitee recognize the substantial increase in corporate litigation in
general, subjecting directors, officers, employees and other agents to expensive litigation risks
at the same time as the availability and coverage of liability insurance has been severely limited;

     C.     The Company desires to attract and retain the services of talented and experienced
individuals, such as Indemnitee, to serve as directors, officers, employees and agents of the
Company and its subsidiaries and wishes to indemnify its directors, officers, employees and other
agents to the maximum extent permitted by law;

     D.     Section 145 of the General Corporation Law of the State of Delaware, under which the
Company is organized (“Section 145”), empowers the Company to indemnify its directors, officers,
employees and agents by agreement and to indemnify persons who serve, at the request of the
Company, as the directors, officers, employees or agents of other corporations or enterprises, and
expressly provides that the indemnification provided by Section 145 is not exclusive; and

     E.     In order to induce Indemnitee to serve or continue to serve as a director, officer,
employee or agent of the Company and/or one or more subsidiaries of the Company free from undue
concern for claims for damages arising out of or related to such services to the Company and/or one
or more subsidiaries of the Company, the Company has determined and agreed to enter into this
Agreement with Indemnitee.

AGREEMENT

     NOW, THEREFORE, Indemnitee and the Company hereby agree as follows:

     1. Definitions. As used in this Agreement:

               (a) “Agent” means any person who is or was a director, officer, employee or other agent of the
Company or a subsidiary of the Company; or is or was serving at the request of, for the convenience
of, or to represent the interests of the Company or a

 

subsidiary of the Company as a director,
officer, employee or agent of another foreign or domestic corporation, limited liability company,
partnership, joint venture, employee benefit plan, trust, nonprofit entity or other enterprise; or
was a director, officer, employee or agent of a foreign or domestic corporation which was a
predecessor corporation of the Company or a subsidiary of the Company, or was a director, officer,
employee or agent of another enterprise at the request of, for the convenience of, or to represent
the interests of such predecessor corporation.

               (b) “Board” means the Board of Directors of the Company.

               (c) A “Change of Control” shall mean “Change of Control” as defined in the Company’s 2009
Long-Term Incentive Plan, as in effect as of the date of this Agreement.

               (d) “Disinterested Director” means a director of the Company who is not and was not a party to
the matter in respect of which indemnification is sought by Indemnitee.

               (e) “Expenses” shall include all out-of-pocket costs of any type or nature whatsoever
(including, without limitation, all attorneys’ fees and related disbursements), actually and
reasonably incurred by Indemnitee in connection with either the investigation, defense or appeal of
a Proceeding or establishing or enforcing a right to indemnification under this Agreement, or
Section 145 or otherwise; provided, however, that “Expenses” shall not include any judgments,
fines, ERISA excise taxes or penalties, or amounts paid in settlement of a Proceeding.

               (f) “Independent Counsel” means a law firm, or a partner (or, if applicable, member) of such a
law firm, or an independent practitioner, that is experienced in matters of corporation law.
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.

               (g) “Proceeding” means any threatened, pending, or completed action, suit or other proceeding,
whether civil, criminal, administrative, or investigative.

               (h) “Subsidiary” means any corporation of which more than 50% of the outstanding voting
securities is owned directly or indirectly by the Company, by the Company and one or more other
subsidiaries, or by one or more other subsidiaries.

     2. Agreement to Serve. Indemnitee agrees to serve and/or continue to serve as an
Agent of the Company, at its will (or under separate agreement, if such agreement
exists), in the capacity Indemnitee serves as an Agent of the Company as of the date of this
Agreement, so long as Indemnitee is duly appointed or elected and qualified in accordance with the
applicable provisions of the By-laws of the Company or any subsidiary of the Company or until such
time as Indemnitee tenders his or her resignation in writing; provided, however, that nothing
contained in this Agreement is intended to create any right to continued employment or other
service with the Company by Indemnitee.

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     3. Liability Insurance.

               (a) Maintenance of D&O Insurance. The Company hereby covenants and agrees that, so
long as Indemnitee shall continue to serve as an Agent of the Company and thereafter so long as
Indemnitee shall be subject to any possible Proceeding by reason of the fact that Indemnitee was an
Agent of the Company, the Company, subject to Section 3(c), shall promptly obtain and maintain in
full force and effect directors’ and officers’ liability insurance (“D&O Insurance”) in reasonable
amounts from established and reputable insurers, as more fully described below.

               (b) Rights and Benefits. In all policies of D&O Insurance, Indemnitee shall qualify
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 independent directors (as defined by the
insurer) if Indemnitee is such an independent director; of the Company’s non-independent directors
if Indemnitee is not an independent director; of the Company’s officers if Indemnitee is an officer
of the Company; or of the Company’s key employees, if Indemnitee is not a director or officer but
is a key employee. If Indemnitee is not a director, officer or an employee of the Company, but
rather is another agent of the Company, Indemnitee shall have rights and benefits under the D&O
Policy as are reasonable and customary for agents serving in such a capacity.

               (c) Limitation on Required Maintenance of D&O Insurance. Notwithstanding the the
provisions of Sections 3(a) and 3(b) hereof, the Company shall have no obligation to obtain or
maintain D&O Insurance if the Company determines in good faith that: such insurance is not
reasonably available; the premium costs for such insurance are disproportionate to the amount of
coverage provided; the coverage provided by such insurance is limited by exclusions so as to
provide an insufficient benefit; Indemnitee is covered by similar insurance maintained by a
subsidiary of the Company; the Company is to be acquired and a tail policy of reasonable terms and
duration is purchased for pre-closing acts or omissions by Indemnitee; or the Company is to be
acquired and D&O Insurance will be maintained by the acquirer that covers pre-closing acts and
omissions by Indemnitee.

     4. Mandatory Indemnification. Subject to the terms of this Agreement:

               (a) Third Party Actions. If Indemnitee is a person who was or is a party or is
threatened to be made a party to, or is otherwise involved in, any Proceeding (other than an action
by or in the right of the Company) by reason of the fact that Indemnitee is or was an Agent of the
Company, or by reason of anything done or not done by
Indemnitee in any such capacity, the Company shall indemnify Indemnitee against all Expenses
and liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA
excise taxes and penalties, and amounts paid in settlement) actually and reasonably incurred by
Indemnitee in connection with the investigation, defense, settlement or appeal of such Proceeding.

               (b) Derivative Actions. If Indemnitee is a person who was or is a party or is
threatened to be made a party to any Proceeding by or in the right of the Company by reason of the
fact that Indemnitee is or was an Agent of the Company, or by reason of anything done or not done
by Indemnitee in any such capacity, the Company shall indemnify Indemnitee

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against all Expenses
actually and reasonably incurred by Indemnitee in connection with the investigation, defense,
settlement or appeal of such Proceeding; except that no indemnification under this Section 4(b)
shall be made in respect to any claim, issue or matter as to which Indemnitee shall have been
finally adjudged to be liable to the Company by a court of competent jurisdiction unless and only
to the extent that the Delaware Court of Chancery or the court in which such 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 indemnity for such
amounts which the Delaware Court of Chancery or such other court shall deem proper.

               (c) Actions where Indemnitee is Deceased. If Indemnitee is a person who was or is a
party or is threatened to be made a party to any Proceeding by reason of the fact that Indemnitee
is or was an Agent of the Company, or by reason of anything done or not done by Indemnitee in any
such capacity, and if, prior to, during the pendency of or after completion of such Proceeding
Indemnitee is deceased, the Company shall indemnify Indemnitee’s heirs, executors and
administrators against all Expenses and liabilities of any type whatsoever to the extent Indemnitee
would have been entitled to indemnification pursuant to this Agreement were Indemnitee still alive.

               (d) Certain Terminations. 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 create a presumption that Indemnitee did not act in good faith and in a manner
which 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.

               (e) Limitations. Notwithstanding the provisions of Sections 4(a), 4(b), 4(c) and 4(d)
hereof, the Company shall not be obligated to indemnify Indemnitee for Expenses or liabilities of
any type whatsoever for which payment (and the Company’s indemnification obligations under this
Agreement shall be reduced by such payment) is actually made to or on behalf of Indemnitee, by the
Company or otherwise, under an insurance policy, or under a valid and enforceable indemnity clause,
by-law or agreement; and, in the event the Company has previously made a payment to Indemnitee for
an Expense or liability of any type whatsoever for which payment is actually made to or on behalf
of Indemnitee under an insurance policy, or under a valid and enforceable
indemnity clause, by-law or agreement, Indemnitee shall return to the Company the amounts
subsequently received by the Indemnitee from such other source of indemnification.

     5. Indemnification for Expenses in a Proceeding in Which Indemnitee is Wholly or Partly
Successful.

               (a) Successful Defense. Notwithstanding any other provisions of this Agreement, to
the extent Indemnitee has been successful, on the merits or otherwise, in defense of any Proceeding
(including, without limitation, an action by or in the right of the Company) in which Indemnitee
was a party by reason of the fact that Indemnitee is or was an Agent of the Company at any time,
the Company shall indemnify Indemnitee against all

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Expenses actually and reasonably incurred by or
on behalf of Indemnitee in connection with the investigation, defense or appeal of such Proceeding.

               (b) Partially Successful Defense. Notwithstanding any other provisions of this
Agreement, to the extent that Indemnitee is a party to or a participant in any Proceeding
(including, without limitation, an action by or in the right of the Company) in which Indemnitee
was a party by reason of the fact that Indemnitee is or was an Agent of the Company at any time and
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 all Expenses actually
and reasonably incurred by or on behalf of Indemnitee in connection with each successfully resolved
claim, issue or matter.

               (c) Dismissal. For purposes of this Section 5 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.

     6. Mandatory Advancement of Expenses. Subject to the terms of this Agreement and
following notice pursuant to Section 7(a) below, the Company shall advance all Expenses actually
and reasonably incurred by Indemnitee in connection with the investigation, defense, settlement or
appeal of any Proceeding to which the Indemnitee is a party or is threatened to be made a party by
reason of the fact that the Indemnitee is or was an Agent of the Company (unless there has been a
final judicial decision from which there is no further right of appeal (a “final determination”
that Indemnitee is not entitled to indemnification for such Expenses) upon receipt of (i) an
undertaking by or on behalf of Indemnitee to repay the amount advanced in the event that there
shall be a final determination that Indemnitee is not entitled to indemnification by the Company
and (ii) satisfactory documentation supporting such Expenses. Such advances are intended to be an
obligation of the Company to Indemnitee hereunder and shall in no event be deemed to be a personal
loan. The advances to be made hereunder shall be paid by the Company to Indemnitee within sixty
(60) days following delivery of a written request therefor by Indemnitee to the Company.

     7. Notice and Other Indemnification Procedures.

               (a) Notice by Indemnitee. Promptly after receipt by Indemnitee of notice of the
commencement of or the threat of commencement of any Proceeding, Indemnitee shall, if Indemnitee
believes that indemnification with respect thereto may be sought from the Company under this
Agreement, notify the Company in writing of the commencement or threat of commencement thereof.

               (b) Insurance. If the Company receives notice pursuant to Section 7(a) hereof of the
commencement of a Proceeding that may be covered under D&O Insurance then 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.

               (c) Defense. In the event the Company shall be obligated to pay the Expenses of any Proceeding
against Indemnitee, the Company shall be entitled to assume the defense

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of such Proceeding, with counsel selected by the Company and approved by Indemnitee (which
approval shall not be unreasonably withheld), upon the delivery to Indemnitee of written notice of
its election so to do. After delivery of such notice, 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 his or her own counsel in any such Proceeding at
Indemnitee’s expense; and (ii) Indemnitee shall have the right to employ his or her own counsel in
any such Proceeding at the Company’s expense if (A) the Company has authorized the employment of
counsel by Indemnitee at the expense of the Company, (B) Indemnitee shall have reasonably concluded
based on the written advice of Indemnitee’s legal counsel that there may be a conflict of interest
between the Company and Indemnitee in the conduct of any such defense, (C) after a Change of
Control not approved by a majority of the members of the Board who were directors immediately prior
to such Change of Control, the employment of counsel by Indemnitee has been approved by Independent
Counsel, or (D) the Company shall not, in fact, have employed counsel to assume the defense of such
Proceeding.

     8. Right to Indemnification.

          (a) Determination of Right to Indemnification. To obtain indemnification under this
Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith
such documentation and information as is (i) reasonably available to Indemnitee, (ii) reasonably
necessary and (iii) not privileged or otherwise protected from disclosure to determine whether and
to what extent Indemnitee is entitled to indemnification. Upon written request by Indemnitee for
indemnification pursuant to the preceding sentence, a determination with respect to Indemnitee’s
entitlement thereto shall be made as follows: (i) if requested by Indemnitee, by Independent
Counsel, or (ii) if no request is made by Indemnitee for a determination by Independent Counsel,
(A) by the Board by a majority vote of a quorum consisting of the Disinterested Directors, or (B)
if a quorum of the Board consisting of Disinterested Directors is not obtainable or, even if
obtainable, such quorum of Disinterested Directors so directs, by Independent Counsel in a written
opinion to the Board, a copy of which shall be delivered to Indemnitee, or (C) if a quorum of
Disinterested Directors so directs, by the stockholders of the Company. In the event the
determination of entitlement to indemnification is to be made by Independent Counsel at the request
of Indemnitee, the Independent Counsel shall be selected by the Board unless there shall have
occurred within two (2) years prior to the date of the commencement of the action, suit or
proceeding for which indemnification is claimed a “Change of Control”, in which case the
Independent Counsel shall be selected by Indemnitee unless Indemnitee shall request that such
selection be made by the Board. Any Independent Counsel, member of the Board or stockholder of the
Company shall act reasonably and in good faith in making a determination regarding Indemnitee’s
entitlement to indemnification under this Agreement.

          (b) Application to Court. If (i) the claim for indemnification or advancement of
Expenses is denied, in whole or in part, (ii) no disposition of such claim is made by the Company
within sixty (60) days after the request therefor, (iii) the advancement of Expenses is not timely
made pursuant to Section 6 of this Agreement or (iv) payment of indemnification is not made
pursuant to Section 5 of this Agreement, Indemnitee shall have

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the right to apply to the Delaware Court of Chancery, the court in which the Proceeding is or
was pending or any other court of competent jurisdiction, for the purpose of enforcing Indemnitee’s
right to indemnification (including the advancement of Expenses) pursuant to this Agreement.

          (c) Expenses Related to the Enforcement or Interpretation of this Agreement. The
Company shall indemnify Indemnitee against all reasonable Expenses incurred by Indemnitee in
connection with any hearing or proceeding under this Section 8 involving Indemnitee and against all
reasonable Expenses incurred by Indemnitee in connection with any other proceeding between the
Company and Indemnitee involving the interpretation or enforcement of the rights of Indemnitee
under this Agreement, unless a court of competent jurisdiction finds that each of the claims and/or
defenses of Indemnitee in any such proceeding was frivolous or made in bad faith.

     9. Exceptions. Any other provision herein to the contrary notwithstanding, the
Company shall not be obligated:

          (a) Claims Initiated by Indemnitee. 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, with a reasonable allocation where appropriate, unless (i) such indemnification is
expressly required to be made by law, (ii) the Proceeding was authorized by the Board, (iii) such
indemnification is provided by the Company, in its sole discretion, pursuant to the powers vested
in the Company under the General Corporation Law of the State of Delaware or (iv) the Proceeding is
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 in advance of a final determination;

          (b) Lack of Good Faith. 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;

          (c) Unauthorized Settlements. To indemnify Indemnitee under this Agreement for any
amounts paid in settlement of a Proceeding unless the Company provides its prior written consent to
such settlement, which consent shall not be unreasonably withheld;

          (d) Claims Under Section 16(b). To indemnify Indemnitee for Expenses associated with
any Proceeding related to, or the payment 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

          (e) Payments Contrary to Law. To indemnify or advance Expenses to Indemnitee for
which payment is prohibited by applicable law.

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     10. Non-Exclusivity. The provisions for indemnification and advancement of Expenses
set forth in this Agreement shall not be deemed exclusive of any other rights which Indemnitee may
have under any provision of law, the Company’s Certificate of Incorporation or By-laws, the vote of
the Company’s stockholders or disinterested directors, other agreements, or otherwise, both as to
action in Indemnitee’s official capacity and as to action in another capacity while occupying
Indemnitee’s position as an Agent of the Company, and Indemnitee’s rights hereunder shall continue
after Indemnitee has ceased acting as an Agent of the Company and shall inure to the benefit of the
heirs, executors and administrators of Indemnitee.

     11. Permitted Defenses. It shall be a defense to any action for which a claim for
indemnification is made under this Agreement (other than an action brought to enforce a claim for
expenses incurred in defending any proceeding in advance of its final disposition where the
Indemnitee has made an undertaking to repay any amounts advanced in the event that there shall be a
final determination that Indemnitee is not entitled to indemnification by the Company) that the
Indemnitee has not met the standard of conduct which makes it permissible under the General
Corporation Law of the State of Delaware for the Company to indemnify the Indemnitee for the amount
claimed (but the burden of proving such defense shall be on the Company) or that Indemnitee is not
entitled to indemnification because of the limitations set forth in Section 9 hereof. Neither the
failure of the Company (including its Board, Independent Counsel or stockholders) to have made a
determination prior to the commencement of such action that indemnification of the Indemnitee is
proper in the circumstances because he or she has met the applicable standard of conduct set forth
in the General Corporation Law of the State of Delaware, nor an actual determination by the Company
(including its Board, Independent Counsel or stockholders) that the Indemnitee has not met such
applicable standard of conduct, shall be a defense to the action or create a presumption that the
Indemnitee has not met the applicable standard of conduct.

     12. Subrogation. In the event the Company is obligated to make a payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of
recovery under an insurance policy or any other indemnity agreement covering Indemnitee, who shall
execute all documents required and take all action that may be necessary to secure such rights and
to enable the Company effectively to bring suit to enforce such rights (provided that the Company
pays Indemnitee’s costs and expenses of doing so), including without limitation by assigning all
such rights to the extent of such indemnification or advancement of Expenses.

     13. Survival of Rights.

          (a) All agreements and obligations of the Company contained herein shall continue during the
period Indemnitee is an Agent of the Company and shall continue thereafter so long as Indemnitee
shall be subject to any possible claim or threatened, pending or completed Proceeding by reason of
the fact that Indemnitee was serving in the capacity referred to herein.

          (b) The Company shall require any successor to the Company (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the

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business or assets of the Company, expressly to assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform if no such
succession had taken place.

     14. Interpretation of Agreement. It is understood that the parties hereto intend this
Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee to the
fullest extent permitted by law, including those circumstances in which indemnification would
otherwise be discretionary.

     15. Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of the Agreement (including, without limitation, all
portions of any paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to Section 15 hereof.

     16. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless it is in a writing signed by both of the parties hereto. No
waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

     17. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (a) upon delivery if
delivered by hand to the party to whom such notice or other communication shall have been directed,
(b) if mailed by certified or registered mail with postage prepaid, return receipt requested, on
the third business day after the date on which it is so mailed, (c) one business day after the
business day of deposit with a nationally recognized overnight delivery service, specifying next
day delivery, with written verification of receipt, or (d) on the same day as delivered by
confirmed facsimile transmission if delivered during business hours or on the next successive
business day if delivered by confirmed facsimile transmission after business hours. Addresses for
notice to either party shall be as shown on the signature page of this Agreement, or to such other
address as may have been furnished by either party in the manner set forth above.

     18. Governing Law. This Agreement shall be governed exclusively by and construed
according to the laws of the State of Delaware as applied to contracts between Delaware residents
entered into and to be performed entirely within Delaware. This Agreement is intended to be an
agreement of the type contemplated by Section 145 (f) of the General Corporation Law of the State
of Delaware.

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     19. 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 enforcement
is sought needs to be produced to evidence the existence of this Agreement.

     The parties hereto have entered into this Indemnification Agreement effective as of the date
first above written.

	 	 	 
	Indemnitee:

	 	The Company:
	 
	 

	 	CAREFUSION CORPORATION
 
	 

	 
	[Name of Indemnitee]	 	 
	 

	 	By:  

	Address: 
 

	 
	 
	 	Title:
 

10exv4w2

Exhibit 4.2

AMENDED AND RESTATED

MIDDLEBROOK PHARMACEUTICALS, INC.

STOCK INCENTIVE PLAN

1. Establishment, Purpose and Types of Awards

     MIDDLEBROOK PHARMACEUTICALS, INC., a Delaware corporation (the “Company” ), hereby establishes
the MIDDLEBROOK PHARMACEUTICALS, INC. STOCK INCENTIVE PLAN (the “Plan” ). The purpose of the Plan
is to promote the long-term growth and profitability of the Company by (i) providing key people
with incentives to improve stockholder value and to contribute to the growth and financial success
of the Company, and (ii) enabling the Company to attract, retain and reward the best-available
persons. This Plan is a continuation, and amendment and restatement, of the Company’s Amended and
Restated Advancis Pharmaceutical Corporation Stock Incentive Plan, the provisions of which shall
continue to control with respect to any options or stock awards outstanding thereunder to the
extent necessary to avoid establishment of a new measurement date for financial accounting purposes
and to preserve the status of any options that are intended to qualify as “incentive stock options”
within the meaning of Section 422 of the Internal Revenue Code.

     The Plan permits the granting of stock options (including incentive stock options qualifying
under Code section 422 and nonqualified stock options), stock appreciation rights, restricted or
unrestricted stock awards, phantom stock, performance awards, other stock-based awards, or any
combination of the foregoing.

2. Definitions

     Under this Plan, except where the context otherwise indicates, the following definitions
apply:

     (a) “Administrator” means the Board, the Compensation Committee of the Board or such other
committee(s) or officer(s) appointed by the Board that have authority to administer the Plan as
provided in Section 3 hereof.

     (b) “Affiliate” means any entity, whether now or hereafter existing, which controls, is
controlled by, or is under common control with, the Company (including, but not limited to, joint
ventures, limited liability companies, and partnerships). For this purpose, “control” shall mean
ownership of 50% or more of the total combined voting power or value of all classes of stock or
interests of the entity.

     (c) “Award” means any stock option, stock appreciation right, stock award, phantom stock
award, performance award, or other stock-based award.

     (d) “Board” means the Board of Directors of the Company.

     (e) “Change in Control” means: (i) the acquisition (other than from the Company), in one or
more transactions, by any Person of the beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Securities Exchange Act of 1934, as amended) of 33% or more of (A) the then
outstanding shares of the securities of the Company, or (B) the combined voting power of the then
outstanding Company Voting Stock; (ii) the closing of a sale or other conveyance of assets
representing 50% or more of the fair market value of the Company’s consolidated assets (in a single
transaction or in a series of related transactions); (iii) the dissolution or liquidation of the
Company; (iv) a change in the composition of the Company’s Board of Directors, as a result of
which, fewer than one-half of the incumbent directors after such change are directors who either
(A) had been directors of the Company 24 months prior to such change or (B) were elected, or
nominated for election, to the Board of Directors with the approval of at least a majority of the
directors who had been the Company’s directors 24 months prior to such change and who were still in
office at the time of the election or nomination; or (v) the effective time of any merger, share
exchange, consolidation, or other business combination involving the Company if immediately after
such transaction persons who hold a majority of the outstanding voting securities entitled to vote
generally in the election of directors of the surviving entity (or the entity owning 100% of such
surviving entity) are not persons who, immediately prior to such transaction, held a majority of
the Company Voting Stock; provided, however, that a Change in Control shall not include (X) a
public offering of capital stock of the Company; (Y) any distribution of capital stock of the
Company by a partnership or limited liability company to a partner of such partnership or member of
such limited liability company in respect of the interest of such partner or member and without the
payment of additional consideration; or (Z) any transaction pursuant to which shares of capital
stock of the Company are transferred or issued to any trust, charitable organization, foundation,
family partnership or other entity controlled directly or indirectly by, or established for the
benefit of any of the current or former executive officers of the Company or their immediate family
members (including spouses, children, grandchildren, parents, and siblings, in each case to include
adoptive relations), or transferred to any such immediate family members.

     (f) “Code” means the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder.

     (g) “Common Stock” means shares of common stock of the Company, par value of one cent ($0.01)
per share.

     (h) “Company Voting Stock” means securities of the Company entitled to vote generally in the
election of directors.

     (i) “Eligible Director” means a director of the Company who is not an employee of the Company
or any Affiliate.

 

 

     (j) “Fair Market Value” means, with respect to a share of the Company’s Common Stock for any
purpose on a particular date, the value determined by the Administrator in good faith. However, if
the Common Stock is registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934,
as amended, and listed for trading on a national exchange or market, “Fair Market Value” means,
as applicable, (i) either the closing price or the average of the high and low sale price on the
relevant date, as determined in the Administrator’s discretion, quoted on the New York Stock
Exchange, the American Stock Exchange, or the Nasdaq Global Market; (ii) the last sale price on the
relevant date quoted on the Nasdaq Capital Market; (iii) the average of the high bid and low asked
prices on the relevant date quoted on the Nasdaq OTC Bulletin Board Service or by the National
Quotation Bureau, Inc. or a comparable service as determined in the Administrator’s discretion; or
(iv) if the Common Stock is not quoted by any of the above, the average of the closing bid and
asked prices on the relevant date furnished by a professional market maker for the Common Stock, or
by such other source, selected by the Administrator. If no public trading of the Common Stock
occurs on the relevant date but the shares are so listed, then Fair Market Value shall be
determined as of the next preceding date on which trading of the Common Stock does occur. For all
purposes under this Plan, the term “relevant date” as used in this Section 2(j) means either the
date as of which Fair Market Value is to be determined or the next preceding date on which public
trading of the Common Stock occurs, as determined in the Administrator’s discretion.

     (k) “Grant Agreement” means a written document memorializing the terms and conditions of an
Award granted pursuant to the Plan and shall incorporate the terms of the Plan.

     (l) “Person” means any individual, entity or group within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended, other than: employee benefit plans
sponsored or maintained by the Company or by Affiliates controlled by the Company, or an
underwriter of the Common Stock in a registered public offering.

3. Administration

     (a) Administration of the Plan. The Plan shall be administered by the Board or by the
Compensation Committee of the Board or such other committee or committees as may be appointed by
the Board from time to time. To the extent allowed by applicable state law, the Board by resolution
may authorize an officer or officers to grant Awards (other than Stock Awards) to other officers
and employees of the Company and its Affiliates, and, to the extent of such authorization, such
officer or officers shall be the Administrator.

     (b) Powers of the Administrator. The Administrator shall have all the powers vested in it by
the terms of the Plan, such powers to include authority, in its sole and absolute discretion, to
grant Awards under the Plan, prescribe Grant Agreements evidencing such Awards and establish
programs for granting Awards.

     The Administrator shall have full power and authority to take all other actions necessary to
carry out the purpose and intent of the Plan, including, but not limited to, the authority to:
(i) determine the eligible persons to whom, and the time or times at which Awards shall be granted;
(ii) determine the types of Awards to be granted; (iii) except for Awards granted pursuant to
Section 6(a)(ii), determine the number of shares to be covered by or used for reference purposes
for each Award; (iv) impose such terms, limitations, restrictions and conditions upon any such
Award as the Administrator shall deem appropriate; (v) modify, amend, extend, renew or reprice
outstanding Awards, or accept the surrender of outstanding Awards and substitute new Awards
(provided however, that, except as provided in Section 7(d) of the Plan, any modification that
would materially adversely affect any outstanding Award shall not be made without the consent of
the holder); (vi) accelerate or otherwise change the time in which an Award may be exercised or
becomes payable and to waive or accelerate the lapse, in whole or in part, of any restriction or
condition with respect to such Award, including, but not limited to, any restriction or condition
with respect to the vesting or exercisability of an Award following termination of any grantee’s
employment or other relationship with the Company; (vii) establish objectives and conditions, if
any, for earning Awards and determining whether Awards will be paid after the end of a performance
period; and (viii) for any purpose, including but not limited to, qualifying for preferred tax
treatment under foreign tax laws or otherwise complying with the regulatory requirements of local
or foreign jurisdictions, to establish, amend, modify, administer or terminate sub-plans, and
prescribe, amend and rescind rules and regulations relating to such sub-plans.

     The Administrator shall have full power and authority, in its sole and absolute discretion, to
administer and interpret the Plan, Grant Agreements and all other documents relevant to the Plan
and Awards issued thereunder, and to adopt and interpret such rules, regulations, agreements,
guidelines and instruments for the administration of the Plan and for the conduct of its business
as the Administrator deems necessary or advisable.

     Awards to Eligible Directors, as provided in Section 6(a)(ii), shall be automatic and
nondiscretionary to the extent provided in Section 6(a)(ii).

     (c) Non-Uniform Determinations. The Administrator’s determinations under the Plan (including
without limitation, determinations of the persons to receive Awards, the form, amount and timing of
such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such
Awards) need not be uniform and may be made by the Administrator selectively among persons who
receive, or are eligible to receive, Awards under the Plan, whether or not such persons are
similarly situated.

     (d) Limited Liability. To the maximum extent permitted by law, no member of the Administrator
shall be liable for any action taken or decision made in good faith relating to the Plan or any
Award thereunder.

 

 

     (e) Indemnification. To the maximum extent permitted by law and by the Company’s charter and
by-laws, the members of the Administrator shall be indemnified by the Company in respect of all
their activities under the Plan.

     (f) Effect of Administrator’s Decision. All actions taken and decisions and determinations
made by the Administrator on all matters relating to the Plan pursuant to the powers vested in it
hereunder shall be in the Administrator’s sole and absolute discretion and shall be conclusive and
binding on all parties concerned, including the Company, its stockholders, any participants in the
Plan and any other employee, consultant, or director of the Company, and their respective
successors in interest.

4. Shares Available for the Plan; Maximum Awards

     Subject to adjustments as provided in Section 7(d) of the Plan, the shares of Common Stock
that may be issued with respect to Awards granted under the Plan shall not exceed an aggregate of
19,848,182 shares of Common Stock. The Company shall reserve such number of shares for Awards under
the Plan, subject to adjustments as provided in Section 7(d) of the Plan. If any Award, or portion
of an Award, under the Plan expires or terminates unexercised, becomes unexercisable or is
forfeited or otherwise terminated, surrendered or canceled as to any shares, or if any shares of
Common Stock are repurchased at or below cost by or surrendered to the Company in connection with
any Award (whether or not such surrendered shares were acquired pursuant to any Award), or if any
shares are withheld by the Company, the shares subject to such Award and the repurchased,
surrendered and withheld shares shall thereafter be available for further Awards under the Plan;
provided, however, that any such shares that are surrendered to or repurchased or withheld by the
Company in connection with any Award or that are otherwise forfeited after issuance shall not be
available for purchase pursuant to incentive stock options intended to qualify under Code
section 422.

     Subject to adjustments as provided in Section 7(d) of the Plan, the maximum number of shares
of Common Stock subject to Awards of any combination that may be granted during any one fiscal year
of the Company to any one individual under this Plan shall be limited to 3,000,000 shares. Such
per-individual limit shall not be adjusted to effect a restoration of shares of Common Stock with
respect to which the related Award is terminated, surrendered or canceled.

5. Participation

     Participation in the Plan shall be open to all employees, officers, and directors of, and
other individuals providing bona fide services to or for, the Company, or of any Affiliate of the
Company, as may be selected by the Administrator from time to time. The Administrator may also
grant Awards to individuals in connection with hiring, retention or otherwise, prior to the date
the individual first performs services for the Company or an Affiliate, provided that such Awards
shall not become vested or exercisable prior to the date the individual first commences performance
of such services.

6. Awards

     The Administrator, in its sole discretion, establishes the terms of all Awards granted under
the Plan. Awards may be granted individually or in tandem with other types of Awards. All Awards
are subject to the terms and conditions provided in the Grant Agreement. The Administrator may
permit or require a recipient of an Award to defer such individual’s receipt of the payment of cash
or the delivery of Common Stock that would otherwise be due to such individual by virtue of the
exercise of, payment of, or lapse or waiver of restrictions respecting, any Award. If any such
payment deferral is required or permitted, the Administrator shall, in its sole discretion,
establish rules and procedures for such payment deferrals.

     (a) Stock Options.

     (i) The Administrator may from time to time grant to eligible participants Awards of incentive
stock options as that term is defined in Code section 422 or nonqualified stock options; provided,
however, that Awards of incentive stock options shall be limited to employees of the Company or of
any current or hereafter existing “parent corporation” or “subsidiary corporation,” as defined in
Code sections 424(e) and (f), respectively, of the Company, and any other persons who are eligible
to receive incentive stock options within the meaning of Code section 422. Options intended to
qualify as incentive stock options under Code section 422 must have an exercise price at least
equal to Fair Market Value as of the date of grant, but nonqualified stock options may be granted
with an exercise price less than Fair Market Value. No stock option shall be an incentive stock
option unless so designated by the Administrator at the time of grant or in the Grant Agreement
evidencing such stock option.

     (ii) Notwithstanding anything in the Plan to the contrary, automatic options grants shall be
made under this Plan to Eligible Directors as follows:

     (A) Each person who first becomes an Eligible Director after September 2, 2003 shall be
granted an option to purchase 30,000 shares of Common Stock (the “Initial Grant") on the date on
which he or she is initially elected or appointed to the Board.

     (B) Each Eligible Director shall be granted an additional option to purchase 20,000 shares of
Common Stock, or an option to purchase 30,000 shares of common stock to the chairman of the board
of directors if he or she is a non- employee director, (an “Annual Grant” ) on the date of each
annual general stockholders’ meeting at which members of the Board are elected or re-elected,
provided however, that he or she continues to serve as an Eligible Director immediately following
the meeting.

 

 

     (C) The exercise price per share for each option granted under this Section 6(a)(ii) shall be
the Fair Market Value per share of Common Stock on the date of grant of the option. For purposes of
the immediately preceding sentence, Fair Market Value shall mean, at any time when the Common Stock
is listed on the Nasdaq Global Market or a similar national exchange or market, the closing price
per share of the Company’s Common Stock on the Nasdaq Global Market, or the principal exchange or
market on which the Common Stock is then listed, on the date of grant, and if no such price is
reported on such date, such price as reported on the nearest preceding date on which such price is
reported.

     (D) Each Initial Grant shall vest in 36 equal, monthly installments, in arrears, beginning
immediately following the grant date. Each Annual Grant shall vest in 12 equal, monthly
installments, in arrears, beginning immediately following the grant date. No option granted to an
Eligible Director under this Section 6(a)(ii) shall become vested with respect to any shares of
Common Stock after the date on which such Eligible Director ceases to serve as a member of the
Board. An option granted to an Eligible Director under this Section 6(a)(ii) may be exercised from
time to time, in whole or in part, prior to the earlier of (x) 180 days after a grantee ceases to
serve as a Director (one year if the grantee ceases to serve because of his or her death or
permanent and total disability) or (y) the tenth anniversary of the date of grant.

     (E) In the event of a Change in Control, any outstanding options granted pursuant to this
Section 6(a)(ii) prior to the date of such Change in Control shall be 100% vested and exercisable
on the date of, and immediately before, such Change in Control.

     (F) Options granted under this Section 6(a)(ii) may be exercised only by notice (in a form
prescribed by or acceptable to the Company) to the Company at its principal executive office.
Payment of the exercise price may be made by delivery of cash or check to the order of the Company
in an amount equal to the exercise price, or to the extent permitted by the Company, by delivery to
the Company of shares of Common Stock of the Company already owned that are “mature” shares under
Generally Accepted Accounting Standards of the United States and having a Fair Market Value equal
in amount to the exercise price of the option being exercised, or a combination thereof.

     (b) Stock Appreciation Rights. The Administrator may from time to time grant to eligible
participants Awards of Stock Appreciation Rights ( “SAR” ). An SAR entitles the grantee to receive,
subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value
equal to the product of (i) the excess of (A) the Fair Market Value on the exercise date of one
share of Common Stock over (B) the base price per share specified in the Grant Agreement, times
(ii) the number of shares specified by the SAR, or portion thereof, which is exercised. Payment by
the Company of the amount receivable upon any exercise of an SAR may be made by the delivery of
Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole
discretion of the Administrator. If upon settlement of the exercise of an SAR a grantee is to
receive a portion of such payment in shares of Common Stock, the number of shares shall be
determined by dividing such portion by the Fair Market Value of a share of Common Stock on the
exercise date. No fractional shares shall be used for such payment and the Administrator shall
determine whether cash shall be given in lieu of such fractional shares or whether such fractional
shares shall be eliminated.

     (c) Stock Awards.

     (i) The Administrator may from time to time grant restricted or unrestricted stock Awards to
eligible participants in such amounts, on such terms and conditions, and for such consideration,
including no consideration or such minimum consideration as may be required by law, as it shall
determine. A stock Award may be paid in Common Stock, in cash, or in a combination of Common Stock
and cash, as determined in the sole discretion of the Administrator.

     (ii) The Administrator may grant stock awards in a manner constituting “qualified
performance-based compensation” within the meaning of Code Section 162(m). The grant of, or lapse
of restrictions with respect to, such performance-based stock awards shall be based upon one or
more Performance Measures and objective performance targets to be attained relative to those
Performance Measures, all as determined by the Administrator. Performance targets may include
minimum, maximum and target levels of performance, with the size of the performance-based stock
award or the lapse of restrictions with respect thereto based on the level attained.

“Performance Measures” shall mean criteria established by the Administrator relating to any of the
following, as it may apply to an individual, one or more business units, divisions or subsidiaries,
or on a Company-wide basis, and in either absolute terms or relative to the performance of one or
more comparable companies or an index covering multiple companies: revenue; earnings before
interest, taxes, depreciation and amortization (EBITDA); income before income taxes and minority
interests; current value shareholders’ equity; corporate liquidity; financing activities; licensing
transactions; joint ventures; co-promotional partnerships; operating income; pre- or after-tax
income; cash flow; cash flow per share; net earnings; earnings per share; return on equity; share
price performance; total stockholder return; relative performance to a group of companies or
relevant market indices comparable to the Company, and strategic business criteria consisting of
one or more objectives based on the Company meeting specified goals relating to revenue, market
penetration, business expansion, costs or acquisitions or divestitures.

     (d) Phantom Stock. The Administrator may from time to time grant Awards to eligible
participants denominated in stock-equivalent units ( “phantom stock” ) in such amounts and on such
terms and conditions as it shall determine. Phantom stock units granted to a participant shall be
credited to a bookkeeping reserve account solely for accounting purposes and shall not require a
segregation of any of the Company’s assets. An Award of phantom stock may be settled in Common
Stock, in cash, or in a combination of Common Stock and cash, as determined in the sole discretion
of the Administrator. Except as otherwise provided in the applicable Grant Agreement, the grantee
shall not have the rights of a stockholder with respect to any shares of Common Stock represented
by a phantom stock unit solely as a result of the grant of a phantom stock unit to the grantee.

 

 

     (e) Performance Awards. In addition to the Awards described in Section 6(c)(ii), the
Administrator may, in its discretion, grant performance awards which become payable on account of
attainment of one or more performance goals established by the Administrator. Performance awards
may be paid by the delivery of Common Stock or cash, or any combination of Common Stock and cash,
as determined in the sole discretion of the Administrator. Performance goals established by the
Administrator may be based on the Company’s or an Affiliate’s operating income or one or more other
business criteria selected by the Administrator that apply to an individual or group of
individuals, a business unit, or the Company or an Affiliate as a whole, over such performance
period as the Administrator may designate.

     (f) Other Stock-Based Awards. The Administrator may from time to time grant other stock-based
awards to eligible participants in such amounts, on such terms and conditions, and for such
consideration, including no consideration or such minimum consideration as may be required by law,
as it shall determine. Other stock-based awards may be denominated in cash, in Common Stock or
other securities, in stock-equivalent units, in stock appreciation units, in securities or
debentures convertible into Common Stock, or in any combination of the foregoing and may be paid in
Common Stock or other securities, in cash, or in a combination of Common Stock or other securities
and cash, all as determined in the sole discretion of the Administrator.

7. Miscellaneous

     (a) Withholding of Taxes. Grantees and holders of Awards shall pay to the Company or its
Affiliate, or make provision satisfactory to the Administrator for payment of, any taxes required
to be withheld in respect of Awards under the Plan no later than the date of the event creating the
tax liability. The Company or its Affiliate may, to the extent permitted by law, deduct any such
tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award. In
the event that payment to the Company or its Affiliate of such tax obligations is made in shares of
Common Stock, such shares shall be valued at Fair Market Value on the applicable date for such
purposes and shall not exceed in amount the minimum statutory tax withholding obligation.

     (b) Loans. To the extent otherwise permitted by law, the Company or its Affiliate may make or
guarantee loans to grantees to assist grantees in exercising Awards and satisfying any withholding
tax obligations.

     (c) Transferability. Except as otherwise determined by the Administrator, and in any event in
the case of an incentive stock option or a stock appreciation right granted with respect to an
incentive stock option, no Award granted under the Plan shall be transferable by a grantee
otherwise than by will or the laws of descent and distribution. Unless otherwise determined by the
Administrator in accord with the provisions of the immediately preceding sentence, an Award may be
exercised during the lifetime of the grantee, only by the grantee or, during the period the grantee
is under a legal disability, by the grantee’s guardian or legal representative.

     (d) Adjustments; Business Combinations.

     (i) Upon a stock dividend of, or stock split or reverse stock split affecting, the Common
Stock of the Company, (A) the maximum number of shares reserved for issuance or with respect to
which Awards may be granted under the Plan and the maximum number of shares with respect to which
Awards may be granted during any one fiscal year of the Company to any individual, as provided in
Section 4 of the Plan, (B) the number of shares with respect to which Awards are to be granted as
provided in Section 6(a)(ii), and (C) the number of shares covered by and the exercise price and
other terms of outstanding Awards, shall, without further action of the Board, be adjusted to
reflect such event unless the Board determines, at the time it approves such stock dividend, stock
split or reverse stock split, that no such adjustment shall be made. The Administrator may make
adjustments, in its discretion, to address the treatment of fractional shares and fractional cents
that arise with respect to outstanding Awards as a result of the stock dividend, stock split or
reverse stock split.

     (ii) In the event of any other changes affecting the Company, the capitalization of the
Company or the Common Stock of the Company by reason of any spin-off, split-up, dividend,
recapitalization, merger, consolidation, business combination or exchange of shares and the like,
the Administrator, in its discretion and without the consent of holders of Awards, shall make:
(A) appropriate adjustments to the maximum number and kind of shares reserved for issuance or with
respect to which Awards may be granted under the Plan, in the aggregate and with respect to any
individual during any one fiscal year of the Company, as provided in Section 4 and 6(a)(ii) of the
Plan, and to the number, kind and price of shares covered by outstanding Awards; and (B) any other
adjustments in outstanding Awards, including but not limited to reducing the number of shares
subject to Awards or providing or mandating alternative settlement methods such as settlement of
the Awards in cash or in shares of Common Stock or other securities of the Company or of any other
entity, or in any other matters which relate to Awards as the Administrator shall, in its sole
discretion, determine to be necessary or appropriate.

     (iii) The Administrator is authorized to make, in its discretion and without the consent of
holders of Awards, adjustments in the terms and conditions of, and the criteria included in, Awards
in recognition of unusual or nonrecurring events affecting the Company, or the financial statements
of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting
principles, whenever the Administrator determines that such adjustments are appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan and outstanding Awards.

     (e) Substitution of Awards in Mergers and Acquisitions. Awards may be granted under the Plan
from time to time in substitution for Awards held by employees, officers, consultants or directors
of entities who become or are about to become employees, officers, consultants or directors of the
Company or an Affiliate as the result of a merger or consolidation of the employing entity with the
Company or an Affiliate, or the acquisition by the Company or an Affiliate of the assets or stock
of the employing entity. The terms and conditions of any substitute Awards so granted may vary from
the terms and conditions set forth herein to the extent that the

 

 

Administrator deems appropriate at the time of grant to conform the substitute Awards to the
provisions of the awards for which they are substituted.

     (f) Termination, Amendment and Modification of the Plan. The Board or the Administrator may
terminate, amend or modify the Plan or any portion thereof at any time. Except as otherwise
determined by the Board, termination of the Plan shall not affect the Administrator’s ability to
exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to
the date of such termination.

     (g) Non-Guarantee of Employment or Service. Nothing in the Plan or in any Grant Agreement
thereunder shall confer any right on an individual to continue in the service of the Company or
shall interfere in any way with the right of the Company to terminate such service at any time with
or without cause or notice.

     (h) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Company and a
grantee or any other person. To the extent that any grantee or other person acquires a right to
receive payments from the Company pursuant to an Award, such right shall be no greater than the
right of any unsecured general creditor of the Company.

     (i) Governing Law. The validity, construction and effect of the Plan, of Grant Agreements
entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made
by the Administrator relating to
the Plan or such Grant Agreements, and the rights of any and all persons having or claiming to have
any interest therein or thereunder, shall be determined exclusively in accordance with applicable
federal laws and the laws of the State of Delaware, without regard to its conflict of laws
principles.

     (j) Effective Date; Termination Date. The Plan was originally effective on May 17, 2000. As
amended, the effective date of the Plan is April 17, 2009. No Award shall be granted under the Plan
after October 6, 2013. Subject to other applicable provisions of the Plan, all Awards made under
the Plan prior to such termination of the Plan shall remain in effect until such Awards have been
satisfied or terminated in accordance with the Plan and the terms of such Awards.

Plan History

	 	 	 
	Date Approved by the Board

	 	Original Plan — Advancis Pharmaceutical Corporation Stock Incentive
Plan: May 17, 2000 (as amended March 8, 2001; July 20, 2001; October
25, 2001; April 9, 2002; September 2, 2003).
	 
	 	 
	 

	 	Amended and Restated Plan (first): October 7, 2003
	 
	 	 
	 

	 	Amended and Restated Plan (second): March 31, 2004
	 
	 	 
	 

	 	Amended and Restated Plan (third): April 12, 2005
	 
	 	 
	 

	 	Amended and Restated Plan (fourth): February 1, 2007
	 
	 	 
	 

	 	MiddleBrook Pharmaceuticals, Inc. Stock Incentive Plan: July 14, 2008
	 
	 	 
	 

	 	Amended and Restated Plan (first): April 17, 2009
	 
	 	 
	Date Approved by the Stockholders:

	 	Original Plan — Advancis Pharmaceutical Corporation Stock Incentive
Plan: September 18, 2000 (as amended March 8, 2001; July 20, 2001;
October 25, 2001; April 9, 2002; September 2, 2003).
	 
	 	 
	 

	 	Amended and Restated Plan (first): October 7, 2003
	 
	 	 
	 

	 	Amended and Restated Plan (second): June 3, 2004
	 
	 	 
	 

	 	Amended and Restated Plan (third): May 25, 2005
	 
	 	 
	 

	 	Amended and Restated Plan (fourth): May 21, 2007
	 
	 	 
	 

	 	MiddleBrook Pharmaceuticals, Inc. Stock Incentive Plan: September 4,
2008
	 
	 	 
	 

	 	Amended and Restated Plan (first): June 23, 2009

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