<SUBMISSION>
<ACCESSION-NUMBER>0000912057-02-001419
<TYPE>S-8 POS
<PUBLIC-DOCUMENT-COUNT>8
<FILING-DATE>20020115
<EFFECTIVENESS-DATE>20020115
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>INHALE THERAPEUTIC SYSTEMS INC
<CIK>0000906709
<ASSIGNED-SIC>2834
<IRS-NUMBER>943134940
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>S-8 POS
<ACT>33
<FILE-NUMBER>333-71936
<FILM-NUMBER>2509839
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>150 INDUSTRIAL RD.
<CITY>SAN CARLOS
<STATE>CA
<ZIP>94070
<PHONE>6506313100
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>150 INDUSTRIAL ROAD
<CITY>SAN CARLOS
<STATE>CA
<ZIP>94070
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>INHALE THERAPEUTIC SYSTEMS
<DATE-CHANGED>19940303
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>S-8 POS
<SEQUENCE>1
<FILENAME>a2067786zs-8pos.htm
<DESCRIPTION>FORM S-8
<TEXT>
<HTML>
<HEAD>
<TITLE> Prepared by MERRILL CORPORATION
</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
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<FONT SIZE=3 ><A HREF="#02PAL1058_1">QuickLinks</A></FONT>
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<P ALIGN="CENTER"><FONT SIZE=2><B>As filed with the Securities and Exchange Commission on January&nbsp;15, 2002  </B></FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2><B> Registration No.&nbsp;333-71936  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=5><B>SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>Washington, D.C. 20549  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=3><B>Post Effective Amendment No.&nbsp;1<BR>
to<BR>  </B></FONT><FONT SIZE=5><B>FORM S-8<BR>  </B></FONT><FONT SIZE=2><B>REGISTRATION STATEMENT<BR>
UNDER<BR>
THE SECURITIES ACT OF 1933  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=5><B>INHALE THERAPEUTIC SYSTEMS,&nbsp;INC.<BR>  </B></FONT><FONT SIZE=2>(Exact name of registrant as specified in its charter) </FONT></P>

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<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>Delaware</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>94-3134940</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2>(State of incorporation)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2>(I.R.S. Employer Identification No.)</FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2><B>150 Industrial Road<BR>
San Carlos, CA 94070<BR>  </B></FONT><FONT SIZE=2>(Address of principal executive offices) </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><B>2000 NON-OFFICER EQUITY INCENTIVE PLAN<BR>  </B></FONT><FONT SIZE=2>(Full title of the plans) </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><B>Ajit S. Gill<BR>
Chief Executive Officer and President<BR>
Inhale Therapeutic Systems,&nbsp;Inc.<BR>
150 Industrial Road<BR>
San Carlos, CA 94070<BR>
(650)&nbsp;631-3100<BR>  </B></FONT><FONT SIZE=2>(Name, address, including zip code, and telephone number, including area code, of agent for service) </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><B>Copies to:  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B> Mark P. Tanoury, Esq.<BR>
John M. Geschke, Esq.<BR>  </B></FONT><FONT SIZE=2>Cooley Godward </FONT><FONT SIZE=2>LLP</FONT><FONT SIZE=2><BR>
Five Palo Alto Square<BR>
3000 El Camino Real<BR>
Palo Alto, California 94306<BR>
(650)&nbsp;843-5000 </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1058_explanatory_note"> </A>
<A NAME="toc_de1058_1"> </A>
<BR></FONT><FONT SIZE=2><B>EXPLANATORY NOTE    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;19, 2001, Inhale Therapeutic Systems,&nbsp;Inc. (the "Registrant") registered on a Form&nbsp;S-8 Registration Statement with the
Securities and Exchange Commission, Registration Number 333-71936 (the "Registration Statement"), 1,900,000 shares of the Registrant's Common Stock, $0.0001 par value, pursuant to the
Registrant's 2000 Non-Officer Equity Incentive Plan. This Post-Effective Amendment No.&nbsp;1 to the Registration Statement is filed solely to amend Exhibit&nbsp;99.1 and
to add Exhibits 99.2&nbsp;-&nbsp;99.5 not previously filed with respect to such Registration Statement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1058_exhibits"> </A>
<A NAME="toc_de1058_2"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBITS    <BR>  </B></FONT></P>

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<TH WIDTH="10%" ALIGN="CENTER"><FONT SIZE=1><B>Exhibit<BR>
Number</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="4%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="81%" ALIGN="CENTER"><FONT SIZE=1><B>Description</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>3.1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>(1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>Certificate of Incorporation of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3.2</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Bylaws of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3.3</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(2</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Certificate of Amendment of the Amended Certificate of Incorporation of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3.4</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(11</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Certificate of Designation of Series A Junior Participating Preferred Stock of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3.5</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(12</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Certificate of Designation of Series B Convertible Preferred Stock of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Reference is made to Exhibits 3.1, 3.2, 3.3, 3.4 and 3.5.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.2</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(3</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Restated Investor Rights Agreement, dated April 29, 1993, as amended October 29, 1993, by and among the Registrant and certain other persons named therein.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.3</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(4</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Stock Purchase Agreement, dated January 18, 1995, by and between the Registrant and Pfizer Inc.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.4</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(5</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Form of Purchase Agreement, dated January 28, 1997, by and between the Registrant and the individual Purchasers.</FONT></TD>
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<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.5</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(6</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Stock Purchase Agreement, dated December 8, 1998, by and between the Registrant and Capital Research and Management Company.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.6</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(7</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Purchase Agreement, dated October 6, 1999, by and among the Registrant and Lehman Brothers Inc., Deutsche Bank Securities Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.7</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(7</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Resale Registration Rights Agreement, dated October 13, 1999, by and among the Registrant and Lehman Brothers Inc., Deutsche Bank Securities Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.8</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(7</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Indenture, dated October 13, 1999, by and between the Registrant as Issuer and Chase Manhattan Bank and Trust Company, National Association as Trustee.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.9</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(7</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Form of the Registrant Registration Rights Agreement, dated January 25, 2000, by and between the Registrant and Selling Shareholder.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.10</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(8</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Purchase Agreement, dated February 2, 2000, by and among the Registrant and Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated, Deutsche Bank Securities Inc., Lehman Brothers Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.11</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(8</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Resale Registration Rights Agreement, dated February 8, 2000, by and among the Registrant and Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated, Deutsche Bank Securities Inc., Lehman Brothers Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.12</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(8</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Indenture, dated February 8, 2000, by and between the Registrant as Issuer and Chase Manhattan Bank and Trust Company, National Association as Trustee.  </FONT></TD>
</TR>
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<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.13</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(2</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Specimen common stock certificate of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.14</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(9</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Specimen warrants to purchase shares of common stock of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.15</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(10</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Purchase Agreement, dated October 11, 2000, by and among the Registrant and Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated, Deutsche Bank Securities Inc., Lehman Brothers Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.16</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(10</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Resale Registration Rights Agreement, dated October 17, 2000, by and among the Registrant and Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated, Deutsche Bank Securities Inc., Lehman Brothers Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.17</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(10</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Indenture, dated October 17, 2000, by and between the Registrant as Issuer and Chase Manhattan Bank and Trust Company, National Association as Trustee.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.18</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(11</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Rights Agreement, dated June 1, 2001, by and between the Registrant and Mellon Investor Services LLC.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.19</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(11</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Form of Right Certificate of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.20</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(12</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Stock Purchase Agreement, dated January 7, 2002, by and between the Registrant and Enzon, Inc.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.21</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(13</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Inhale Therapeutic Systems, Inc. 401(k) Retirement Plan.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.22</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(13</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Non-Standardized Adoption Agreement No. 001 for use with Inhale Therapeutic Systems, Inc. 401(k) Retirement Plan.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
5.1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(14</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Opinion of Cooley Godward LLP.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
23.1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(15</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Consent of Ernst &amp; Young LLP, Independent Auditors.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
23.2</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(15</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Consent of Independent Auditors.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
23.3</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(14</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Consent of Cooley Godward LLP. Reference is made to Exhibit 5.1.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
24.1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(14</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
Power of Attorney. Reference is made to Signature Page.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(15</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
2000 Non-Officer Equity Incentive Plan, as amended.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.2</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(15</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
2000 Non-Officer Equity Incentive Plan Stock Option Agreement with respect to approved stock options.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.3</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(15</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
2000 Non-Officer Equity Incentive Plan Stock Option Grant Notice with respect to approved stock options.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.4</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(15</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
2000 Non-Officer Equity Incentive Plan Stock Option Agreement with respect to unapproved stock options.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.5</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2><BR>
(15</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>)</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2><BR>
2000 Non-Officer Equity Incentive Plan Stock Option Grant Notice with respect to unapproved stock options.</FONT></TD>
</TR>
</TABLE>
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<DL compact>
<DT><FONT SIZE=2>(1)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 1998.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(2)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2000.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(3)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-1 (No. 33-75942), as amended.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(4)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-1 (No. 33-89502), as amended. </FONT></DD></DL>
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<DL compact>
<DT><FONT SIZE=2>(5)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-3 (No. 333-20787).
<BR><BR></FONT></DD><DT><FONT SIZE=2>(6)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-3 (No. 333-68897), as amended.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(7)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-3 (No. 333-94161), as amended.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(8)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Annual Report on Form 10-K for the year ended December 31, 1999.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(9)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2000.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(10)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-3 (No. 333-53678), filed on January 12, 2001.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(11)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Current Report on Form 8-K, filed on June 4, 2001.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(12)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Current Report on Form 8-K, filed on January 8, 2002.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(13)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-8 (No. 333-76638), filed on January 11, 2002.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(14)</FONT></DT><DD><FONT SIZE=2>Previously
filed.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(15)</FONT></DT><DD><FONT SIZE=2>Filed
herewith. </FONT></DD></DL>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dg1058_signatures"> </A>
<A NAME="toc_dg1058_1"> </A>
<BR></FONT><FONT SIZE=2><B>SIGNATURES    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form&nbsp;S-8, as amended, and has duly caused this Post-Effective Amendment to Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of San Carlos, County of San Mateo, State of California on January&nbsp;15, 2002. </FONT></P>

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<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="45%" ALIGN="CENTER"><FONT SIZE=2>/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>BRIGID A. MAKES </FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Brigid A. Makes<BR></FONT> <FONT SIZE=2><I>Chief Financial Officer
and Vice President<BR>
(Principal Financial and Accounting Officer)</I></FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, this Post-Effective Amendment No.&nbsp;1 to the Registration Statement has been signed by the following persons
in the capacities and on the dates indicated: </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="45%" ALIGN="CENTER"><FONT SIZE=1><B>SIGNATURE</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="29%" ALIGN="CENTER"><FONT SIZE=1><B>TITLE</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="21%" ALIGN="CENTER"><FONT SIZE=1><B>DATE</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="45%" ALIGN="CENTER" VALIGN="CENTER"><BR><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="29%" VALIGN="CENTER"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" VALIGN="CENTER"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="45%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2>*</FONT><HR NOSHADE><FONT SIZE=2> Ajit S. Gill</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="29%" VALIGN="CENTER"><FONT SIZE=2>President, Chief Executive Officer and Director (Principal Executive Officer)</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2>January 15, 2002</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="45%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
*</FONT><HR NOSHADE><FONT SIZE=2> Robert B. Chess</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="29%" VALIGN="CENTER"><FONT SIZE=2><BR>
Chairman of the Board</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
January 15, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="45%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>BRIGID A. MAKES </FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Brigid A. Makes</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="29%" VALIGN="CENTER"><FONT SIZE=2><BR>
Chief Financial Officer and Vice President (Principal Financial and Accounting Officer)</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
January 15, 2002</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="45%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
*</FONT><HR NOSHADE><FONT SIZE=2> John S. Patton</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="29%" VALIGN="CENTER"><FONT SIZE=2><BR>
Vice President and Director</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
January 15, 2002</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="45%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
*</FONT><HR NOSHADE><FONT SIZE=2> James B. Glavin</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="29%" VALIGN="CENTER"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
January 15, 2002</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="45%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
*</FONT><HR NOSHADE><FONT SIZE=2> Melvin Perelman</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="29%" VALIGN="CENTER"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
January 15, 2002</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="45%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
*</FONT><HR NOSHADE><FONT SIZE=2> Irvin Lerner</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="29%" VALIGN="CENTER"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
January 15, 2002</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="45%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
*</FONT><HR NOSHADE><FONT SIZE=2> Roy A. Whitfield</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="29%" VALIGN="CENTER"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
January 15, 2002</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="45%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Chris Kuebler</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="29%" VALIGN="CENTER"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="2%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="21%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
</TABLE>
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<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2><BR>
*By:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="42%" ALIGN="CENTER" VALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>BRIGID A. MAKES </FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="28%" VALIGN="CENTER"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="CENTER"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%" VALIGN="CENTER"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="5%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="42%" ALIGN="CENTER" VALIGN="CENTER"><HR NOSHADE><FONT SIZE=2> Brigid A. Makes<BR></FONT> <FONT SIZE=2><I>As Attorney-in-Fact.</I></FONT></TD>
<TD WIDTH="3%" VALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="28%" VALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%" VALIGN="CENTER"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="di1058_exhibits"> </A>
<A NAME="toc_di1058_1"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBITS    <BR>  </B></FONT></P>

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<TABLE WIDTH="81%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="10%" ALIGN="CENTER"><FONT SIZE=1><B>Exhibit<BR>
Number</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="5%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="80%" ALIGN="CENTER"><FONT SIZE=1><B>Description</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>3.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2>(1)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2>Certificate of Incorporation of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(1)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Bylaws of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(2)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Certificate of Amendment of the Amended Certificate of Incorporation of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(11)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Certificate of Designation of Series A Junior Participating Preferred Stock of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
3.5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(12)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Certificate of Designation of Series B Convertible Preferred Stock of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Reference is made to Exhibits 3.1, 3.2, 3.3, 3.4 and 3.5.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(3)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Restated Investor Rights Agreement, dated April 29, 1993, as amended October 29, 1993, by and among the Registrant and certain other persons named therein.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(4)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Stock Purchase Agreement, dated January 18, 1995, by and between the Registrant and Pfizer Inc.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(5)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Form of Purchase Agreement, dated January 28, 1997, by and between the Registrant and the individual Purchasers.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(6)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Stock Purchase Agreement, dated December 8, 1998, by and between the Registrant and Capital Research and Management Company.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.6</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(7)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Purchase Agreement, dated October 6, 1999, by and among the Registrant and Lehman Brothers Inc., Deutsche Bank Securities Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.7</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(7)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Resale Registration Rights Agreement, dated October 13, 1999, by and among the Registrant and Lehman Brothers Inc., Deutsche Bank Securities Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.8</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(7)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Indenture, dated October 13, 1999, by and between the Registrant as Issuer and Chase Manhattan Bank and Trust Company, National Association as Trustee.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.9</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(7)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Form of the Registrant Registration Rights Agreement, dated January 25, 2000, by and between the Registrant and Selling Shareholder.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.10</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(8)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Purchase Agreement, dated February 2, 2000, by and among the Registrant and Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated, Deutsche Bank Securities Inc., Lehman Brothers Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.11</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(8)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Resale Registration Rights Agreement, dated February 8, 2000, by and among the Registrant and Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated, Deutsche Bank Securities Inc., Lehman Brothers Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.12</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(8)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Indenture, dated February 8, 2000, by and between the Registrant as Issuer and Chase Manhattan Bank and Trust Company, National Association as Trustee.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.13</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(2)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Specimen common stock certificate of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.14</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(9)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Specimen warrants to purchase shares of common stock of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.15</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(10)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Purchase Agreement, dated October 11, 2000, by and among the Registrant and Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated, Deutsche Bank Securities Inc., Lehman Brothers Inc. and U.S. Bancorp Piper Jaffray Inc.  </FONT></TD>
</TR>
</TABLE>
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<TABLE WIDTH="81%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.16</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(10)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Resale Registration Rights Agreement, dated October 17, 2000, by and among the Registrant and Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated, Deutsche Bank Securities Inc., Lehman Brothers Inc. and U.S. Bancorp Piper Jaffray Inc.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.17</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(10)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Indenture, dated October 17, 2000, by and between the Registrant as Issuer and Chase Manhattan Bank and Trust Company, National Association as Trustee.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.18</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(11)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Rights Agreement, dated June 1, 2001, by and between the Registrant and Mellon Investor Services LLC.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.19</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(11)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Form of Right Certificate of the Registrant.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.20</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(12)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Stock Purchase Agreement, dated January 7, 2002, by and between the Registrant and Enzon, Inc.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.21</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(13)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Inhale Therapeutic Systems, Inc. 401(k) Retirement Plan.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
4.22</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(13)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Non-Standardized Adoption Agreement No. 001 for use with Inhale Therapeutic Systems, Inc. 401(k) Retirement Plan.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
5.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(14)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Opinion of Cooley Godward LLP.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
23.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(15)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Consent of Ernst &amp; Young LLP, Independent Auditors.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
23.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(15)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Consent of Independent Auditors.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
23.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(14)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Consent of Cooley Godward LLP. Reference is made to Exhibit 5.1.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
24.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(14)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
Power of Attorney. Reference is made to Signature Page.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(15)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
2000 Non-Officer Equity Incentive Plan, as amended.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(15)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
2000 Non-Officer Equity Incentive Plan Stock Option Agreement with respect to approved stock options.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(15)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
2000 Non-Officer Equity Incentive Plan Stock Option Grant Notice with respect to approved stock options.</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(15)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
2000 Non-Officer Equity Incentive Plan Stock Option Agreement with respect to unapproved stock options.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="5%"><FONT SIZE=2><BR>
(15)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="80%"><FONT SIZE=2><BR>
2000 Non-Officer Equity Incentive Plan Stock Option Grant Notice with respect to unapproved stock options.</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT><FONT SIZE=2>(1)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 1998.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(2)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2000.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(3)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-1 (No. 33-75942), as amended.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(4)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-1 (No. 33-89502), as amended.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(5)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-3 (No. 333-20787).
<BR><BR></FONT></DD><DT><FONT SIZE=2>(6)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-3 (No. 333-68897), as amended. </FONT></DD></DL>
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<DL compact>
<DT><FONT SIZE=2>(7)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-3 (No. 333-94161), as amended.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(8)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Annual Report on Form 10-K for the year ended December 31, 1999.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(9)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2000.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(10)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-3 (No. 333-53678), filed on January 12, 2001.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(11)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Current Report on Form 8-K, filed on June 4, 2001.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(12)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Current Report on Form 8-K, filed on January 8, 2002.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(13)</FONT></DT><DD><FONT SIZE=2>Incorporated
by reference to the indicated exhibit in the Registrant's Registration Statement on Form S-8 (No. 333-76638), filed on January 11, 2002.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(14)</FONT></DT><DD><FONT SIZE=2>Previously
filed.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(15)</FONT></DT><DD><FONT SIZE=2>Filed
herewith. </FONT></DD></DL>
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<FONT SIZE=2><A HREF="#toc_de1058_1">EXPLANATORY NOTE</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1058_2">EXHIBITS</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_dg1058_1">SIGNATURES</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_di1058_1">EXHIBITS</A></FONT><BR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>a2067786zex-23_1.htm
<DESCRIPTION>EXHIBIT 23.1
<TEXT>
<HTML>
<HEAD>
<TITLE> Prepared by MERRILL CORPORATION
</TITLE>
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<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="ke1058_exhibit_23.1"> </A>
<A NAME="toc_ke1058_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit 23.1    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ke1058_consent_of_ernst___young_llp,_independent_auditors"> </A>
<A NAME="toc_ke1058_2"> </A>
<BR></FONT><FONT SIZE=2><B>CONSENT OF ERNST &amp; YOUNG LLP, INDEPENDENT AUDITORS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>We
consent to the incorporation by reference in Amendment No.&nbsp;1 to the Registration Statement (Form&nbsp;S-8 No.&nbsp;333-71936) pertaining to the 2000 Non-Officer Equity Incentive Plan of
Inhale Therapeutic Systems, Inc. and to the incorporation by reference therein of our report dated January&nbsp;23, 2001, with respect to the consolidated financial statements of Inhale Therapeutic
Systems, Inc. included in its Amended Annual Report (Amendment No.&nbsp;2 to Form 10-K) for the year ended December&nbsp;31, 2000, filed with the Securities and Exchange Commission, and of our
report dated January&nbsp;5, 2001, with respect to the financial statements of Bradford Particle Design, plc included in Amendment No.&nbsp;1 to the Current Report on Form&nbsp;8-K of Inhale
Therapeutic Systems, Inc., filed with the Securities and Exchange Commission. </FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2>/s/
Ernst &amp; Young LLP </FONT></P>

<P><FONT SIZE=2>Palo
Alto, California<BR>
January&nbsp;8, 2002 </FONT></P>

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<FONT SIZE=2><A HREF="#toc_ke1058_1">Exhibit 23.1</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_ke1058_2">CONSENT OF ERNST &amp; YOUNG LLP, INDEPENDENT AUDITORS</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>4
<FILENAME>a2067786zex-23_2.htm
<DESCRIPTION>EXHIBIT 23.2
<TEXT>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kg1058_exhibit_23.2"> </A>
<A NAME="toc_kg1058_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;23.2    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg1058_consent_of_independent_auditors"> </A>
<A NAME="toc_kg1058_2"> </A></FONT> <FONT SIZE=2><B>CONSENT OF INDEPENDENT AUDITORS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;We consent to the reference to our firm in the Registration Statement (Post Effective Amendment No.&nbsp;1 to Form&nbsp;S-8) of Inhale Therapeutic Systems,
Inc. for the registration of 1,900,000 shares of its common stock and to the incorporation by reference therein, of our report dated February&nbsp;7, 2001, with respect to the financial statements
of Shearwater Polymers, Inc. for the year ended June&nbsp;30, 2000 included in the Inhale Therapeutic Systems, Inc. Current Report on Form&nbsp;8-K Amendment No.&nbsp;2, filed with the
Securities and Exchange Commission. </FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2>/s/
Ernst &amp; Young LLP </FONT></P>

<P><FONT SIZE=2>Birmingham,
Alabama<BR>
January 10, 2002 </FONT></P>

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<FONT SIZE=2><A HREF="#toc_kg1058_2">CONSENT OF INDEPENDENT AUDITORS</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>5
<FILENAME>a2067786zex-99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99.1  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ki1058_inhale_therapeutic_systems,_in__inh02517"> </A>
<A NAME="toc_ki1058_1"> </A>
<BR></FONT><FONT SIZE=2><B>INHALE THERAPEUTIC SYSTEMS,&nbsp;INC.    <BR>    <BR>    2000 NON-OFFICER EQUITY INCENTIVE PLAN    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>Adopted August&nbsp;18, 1998<BR>
Amended February&nbsp;23, 1999<BR>
Amended December&nbsp;14, 1999<BR>
Amended and Restated June&nbsp;6, 2000<BR>
Adjusted for 2-for-1 Stock Split on August&nbsp;22, 2000<BR>
Amended August&nbsp;22, 2000<BR>
Amended January&nbsp;16, 2001<BR>
Amended April&nbsp;25, 2001<BR>
Amended June&nbsp;28, 2001<BR>
Amended September&nbsp;6, 2001<BR>
Stockholder Approval Not Required<BR>
Termination Date: None  </B></FONT></P>

<P><FONT SIZE=2><B>1.&nbsp;&nbsp;PURPOSES.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Amendment and Restatement.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The 1998 Non-Officer Equity Incentive Plan initially was adopted on
August&nbsp;18, 1998 (the "1998 Plan"). The 1998 Plan hereby is amended and restated in its entirety,
effective upon adoption by the Board, and renamed the "2000 Non-Officer Equity Incentive Plan." The terms of the Plan shall apply to all Stock Awards granted pursuant to the Initial Plan. </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) Eligible Stock Award Recipients.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The persons eligible to receive Stock Awards are the Employees and Consultants of
the Company and its Affiliates who are neither Officers nor Directors. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(c) Available Stock Awards.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The purpose of the Plan is to provide a means by which eligible recipients of Stock Awards
may be given an opportunity to benefit from increases in value of the Common Stock through the granting of the following Stock Awards: (i)&nbsp;Nonstatutory Stock Options, (ii)&nbsp;stock bonuses
and (iii)&nbsp;rights to acquire restricted stock. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(d) General Purpose.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Company, by means of the Plan, seeks to retain the services of the group of persons eligible
to receive Stock Awards, to secure and retain the services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and its
Affiliates. </FONT></P>

<P><FONT SIZE=2><B>2.&nbsp;&nbsp;DEFINITIONS.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) "</B></FONT><FONT SIZE=2><B><I>Affiliate</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means any parent corporation or subsidiary corporation
of the Company, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of the Code. </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) "</B></FONT><FONT SIZE=2><B><I>Board</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means the Board of Directors of the Company. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(c) "</B></FONT><FONT SIZE=2><B><I>Code</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means the Internal Revenue Code of 1986, as amended. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(d) "</B></FONT><FONT SIZE=2><B><I>Committee</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means a Committee appointed by the Board in accordance
with subsection 3(c). </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(e) "</B></FONT><FONT SIZE=2><B><I>Common Stock</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means the common stock of the Company. </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(f) "</B></FONT><FONT SIZE=2><B><I>Company</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means Inhale Therapeutic Systems,&nbsp;Inc., a Delaware
corporation. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(g) "</B></FONT><FONT SIZE=2><B><I>Consultant</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means any person, including an advisor,
(i)&nbsp;engaged by the Company or an Affiliate to render consulting or advisory services and who is compensated for such services or (ii)&nbsp;who </FONT></P>

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<P><FONT SIZE=2>
is a member of the Board of Directors of an Affiliate. However, the term "Consultant" shall not include Directors of the Company </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(h) "</B></FONT><FONT SIZE=2><B><I>Continuous Service</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means that the Participant's service with the
Company or an Affiliate, whether as an Employee or Consultant, is not interrupted or terminated. The Participant's Continuous Service shall not be deemed to have terminated merely because of a change
in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service,
provided that there is no interruption or termination of the Participant's Continuous Service. For example, a change in status from an Employee of the Company to a Consultant of an Affiliate or a
Director of the Company will not constitute an interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party's sole discretion, may determine whether
Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(i) </B></FONT><FONT SIZE=2><B><I>"Director</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means a member of the Board of Directors of the Company. </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(j) "</B></FONT><FONT SIZE=2><B><I>Disability</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means the permanent and total disability of a person
within the meaning of Section&nbsp;22(e)(3) of the Code. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(k) "</B></FONT><FONT SIZE=2><B><I>Employee</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means any person employed by the Company or an
Affiliate. Mere service as a Director or payment of a director's fee by the Company or an Affiliate shall not be sufficient to constitute "employment" by the Company or an Affiliate. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(l) "</B></FONT><FONT SIZE=2><B><I>Exchange Act</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means the Securities Exchange Act of 1934, as
amended. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(m) "</B></FONT><FONT SIZE=2><B><I>Fair Market Value</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means, as of any date, the value of the Common
Stock determined as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(i)</B></FONT><FONT SIZE=2>&nbsp;If the Common Stock is listed on any established stock exchange or traded on the Nasdaq National Market System or
the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock
shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in
the Common Stock) on the last market trading day prior to the day of determination, as reported in </FONT><FONT SIZE=2><I>The Wall Street Journal </I></FONT><FONT SIZE=2>or such other source as the
Board deems reliable. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(ii)</B></FONT><FONT SIZE=2>&nbsp;In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the
Board. </FONT></P>

</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(n) "</B></FONT><FONT SIZE=2><B><I>Nonstatutory Stock Option</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means an option not intended to qualify
as an Incentive Stock Option within the meaning of Section&nbsp;422 of the Code and the regulations promulgated thereunder. </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(o) "</B></FONT><FONT SIZE=2><B><I>Officer</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means (i)&nbsp;a person who is an officer of the
Company within the meaning of Section&nbsp;16 of the Exchange Act and the rules and regulations promulgated thereunder and (ii)&nbsp;any other person designated by the Company as an officer. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(p) "</B></FONT><FONT SIZE=2><B><I>Option</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means a Nonstatutory Stock Option granted pursuant to the
Plan. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(q) "</B></FONT><FONT SIZE=2><B><I>Option Agreement</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means a written agreement between the Company
and an Optionholder evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(r) "</B></FONT><FONT SIZE=2><B><I>Optionholder</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means a person to whom an Option is granted pursuant
to the Plan or, if applicable, such other person who holds an outstanding Option. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(s) "</B></FONT><FONT SIZE=2><B><I>Participant</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means a person to whom a Stock Award is granted
pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(t) "</B></FONT><FONT SIZE=2><B><I>Plan</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means this Inhale Therapeutic Systems,&nbsp;Inc. 2000
Non-Officer Equity Incentive Plan. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(u) "</B></FONT><FONT SIZE=2><B><I>Rule&nbsp;16b-3</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means Rule&nbsp;16b-3
promulgated under the Exchange Act or any successor to Rule&nbsp;16b-3, as in effect from time to time. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(v) "</B></FONT><FONT SIZE=2><B><I>Securities Act</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means the Securities Act of 1933, as amended. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(w) "</B></FONT><FONT SIZE=2><B><I>Stock Award</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means any right granted under the Plan, including an
Option, a stock bonus and a right to acquire restricted stock. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(x) "</B></FONT><FONT SIZE=2><B><I>Stock Award Agreement</I></B></FONT><FONT SIZE=2><B>"</B></FONT><FONT SIZE=2>&nbsp;&nbsp;means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. </FONT></P>

<P><FONT SIZE=2><B>3.&nbsp;&nbsp;ADMINISTRATION.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Administration by Board.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Board will administer the Plan unless and until the Board delegates administration to
a Committee, as provided in subsection 3(c). </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) Powers of Board.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Board shall have the power, subject to, and within the limitations of, the express provisions
of the Plan: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(i)</B></FONT><FONT SIZE=2>&nbsp;To determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards; when and
how each Stock Award shall be granted; what type or combination of types of Stock Award shall be granted; the provisions of each Stock Award granted (which need not be identical), including the time
or times when a person shall be permitted to receive stock pursuant to a Stock Award; and the number of shares with respect to which a Stock Award shall be granted to each such person. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(ii)</B></FONT><FONT SIZE=2>&nbsp;To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and
regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the
extent it shall deem necessary or expedient to make the Plan fully effective. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iii)</B></FONT><FONT SIZE=2>&nbsp;To amend the Plan or a Stock Award as provided in Section&nbsp;12. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iv)</B></FONT><FONT SIZE=2>&nbsp;Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote
the best interests of the Company that are not in conflict with the provisions of the Plan. </FONT></P>

</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(c) Delegation to Committee.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Board may delegate administration of the Plan to a Committee or Committees of one
(1)&nbsp;or more members of the Board, and the term "Committee" shall apply to any person or persons to whom such authority has been delegated. If administration is delegated to a Committee, the
Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative
powers the Committee is authorized to exercise (and references in this Plan to the Board shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent
with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(d) Effect of Board's Decision.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;All determinations, interpretations and constructions made by the Board in good faith
shall not be subject to review by any person and shall be final, binding and conclusive on all persons. </FONT></P>

<P><FONT SIZE=2><B>4.&nbsp;&nbsp;SHARES SUBJECT TO THE PLAN.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Share Reserve.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Subject to the provisions of Section&nbsp;11 relating to adjustments upon changes in stock, the
stock that may be issued pursuant to Stock Awards shall not exceed in the aggregate eleven million two hundred fifty thousand (11,250,000)(1) shares of Common Stock. </FONT></P>

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT><FONT SIZE=2>(1)</FONT></DT><DD><FONT SIZE=2>The
3,525,000 shares in the share reserve automatically were adjusted to 7,050,000 shares pursuant to the 2-for-1 stock split on August 22, 2000. The Board of Directors amended the
Plan on August 22, 2000 and increased this number by 1,500,000 shares (post stock split) to a total of 8,550,000 shares. The Board of Directors amended the plan on January&nbsp;16, 2001 and
increased this number by 800,000 shares to a total of 9,350,000 shares. The Board of Directors amended the Plan on June&nbsp;28, 2001 and increased this number by 900,000 to a total of 10,250,000
shares. The Board of Directors amended the Plan on September&nbsp;6, 2001 and increased this number by 1,000,000 to a total of 11,250,000 shares. </FONT></DD></DL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) Reversion of Shares to the Share Reserve.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;If any Stock Award shall for any reason expire or otherwise terminate, in
whole or in part, without having been exercised in full (or vested in the case of Restricted Stock), the stock not acquired under such Stock Award shall revert to and again become available for
issuance under the Plan. If any Common Stock acquired pursuant to a Stock Award shall for any reason be reacquired by the Company, the stock shall revert to and again become available for reissuance
under the Plan. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(c) Source of Shares.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The stock subject to the Plan may be unissued shares or reacquired shares, bought on the market
or otherwise. </FONT></P>

<P><FONT SIZE=2><B>5.&nbsp;&nbsp;ELIGIBILITY.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Eligibility.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Stock Awards may be granted only to Employees and Consultants who are neither Officers nor Directors. </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) Consultants.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;A Consultant shall not be eligible for the grant of a Stock Award if, at the time of grant, a
Form&nbsp;S-8 Registration Statement under the Securities Act ("Form&nbsp;S-8") is not available to register either the offer or the sale of the Company's securities to
such Consultant because of the nature of the services that the Consultant is providing to the Company, or because the Consultant is not a natural person, or as otherwise provided by the rules
governing the use of Form&nbsp;S-8, unless the Company determines both (i)&nbsp;that such grant (A)&nbsp;shall be registered in another manner under the Securities Act
(</FONT><FONT SIZE=2><I>e.g.,</I></FONT><FONT SIZE=2> on a Form&nbsp;S-3 Registration Statement) or (B)&nbsp;does not require registration under the Securities Act in order to comply
with the requirements of the Securities Act, if applicable, and (ii)&nbsp;that such grant complies with the securities laws of all other relevant jurisdictions.(2) </FONT></P>

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT><FONT SIZE=2>(2)</FONT></DT><DD><FONT SIZE=2>Form
S-8 generally is available to consultants and advisors only if (i) they are natural persons; (ii) they provide bona fide services to the issuer, its parents, its majority-owned
subsidiaries or majority-owned subsidiaries of the issuers's parent; and (iii) the services are not in connection with the offer or sale of securities in a capital-raising transaction, and do not
directly or indirectly promote or maintain a market for the issuer's securities. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2><B>6.&nbsp;&nbsp;OPTION PROVISIONS.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The provisions of separate Options need not
be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Exercise Price.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Board shall determine the exercise price of each Option. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) Consideration.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(i)</B></FONT><FONT SIZE=2>&nbsp;The purchase price of stock acquired pursuant to an Option shall be paid, to the extent permitted by applicable
statutes and regulations, either (A)&nbsp;in cash at the time the Option is exercised or (B)&nbsp;at the discretion of the Board at the time of the grant of the Option (or subsequently) by
delivery to the Company of other Common Stock, according to a deferred payment or other similar arrangement (which may include, without limiting the generality of the foregoing, the use of other
Common Stock) with the Participant or in any other form of legal consideration that may be acceptable to the Board; provided, however, that at any time that the Company is incorporated in Delaware,
payment of the Common Stock's "par value," as defined in the Delaware General Corporation Law, shall not be made by deferred payment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(ii)</B></FONT><FONT SIZE=2>&nbsp;Unless otherwise specifically provided in the Option, the purchase price of Common Stock acquired pursuant to an
Option that is paid by delivery to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the Company that have been
held for more than six (6)&nbsp;months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iii)</B></FONT><FONT SIZE=2>&nbsp;In the case of any deferred payment arrangement, interest shall be compounded at least annually and shall be
charged at the minimum rate of interest necessary to avoid the treatment as interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the
deferred payment arrangement. </FONT></P>

</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(c) Transferability.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;An Option shall be transferable to the extent provided in the Option Agreement. If the Option does
not provide for transferability, then the Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder. Notwithstanding the foregoing provisions of this subsection 6(c), the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company,
designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(d) Vesting Generally.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The total number of shares of Common Stock subject to an Option may, but need not, vest and
therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised
(which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this subsection 6(d) are subject to
any Option provisions governing the minimum number of shares as to which an Option may be exercised. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(e) Termination of Continuous Service.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;In the event an Optionholder's Continuous Service terminates (other than upon
the Optionholder's death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination) but only within
such period of time ending on the earlier of (i)&nbsp;the date three (3)&nbsp;months following the termination of the Optionholder's Continuous Service (or such longer or shorter period specified
in the Option Agreement), or (ii)&nbsp;the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option
within the time specified in the Option Agreement, the Option shall terminate. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_kk1058_1_6"> </A> </FONT> <FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(f) Extension of Termination Date.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;An Optionholder's Option Agreement may also provide that if the exercise of the
Option following the termination of the Optionholder's Continuous Service (other than upon the Optionholder's death or Disability) would be prohibited at any time solely because the issuance of shares
would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i)&nbsp;the expiration of the term of the Option set forth in subsection 6(a)
or (ii)&nbsp;the expiration of three months (or such longer or shorter period specified in the Option Agreement) after the termination of the Optionholder's Continuous Service during which the
exercise of the Option would not be in violation of such registration requirements. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(g) Disability of Optionholder.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;In the event an Optionholder's Continuous Service terminates as a result of the
Optionholder's Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination), but only within such period
of time ending on the earlier of (i)&nbsp;the date twelve (12)&nbsp;months following such termination (or such longer or shorter period specified in the Option Agreement) or (ii)&nbsp;the
expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option
shall terminate. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(h) Death of Optionholder.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;In the event an Optionholder's Continuous Service terminates as a result of the
Optionholder's death, then, subject to any restrictions in the Option Agreement, the Option shall become fully vested and exercisable as of the date of termination. In the event (i)&nbsp;an
Optionholder's Continuous Service terminates as a result of the Optionholder's death or (ii)&nbsp;the Optionholder dies within the period (if any) specified in the Option Agreement after the
termination of the Optionholder's Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise the Option as of the date
of death) by the Optionholder's estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder's
death pursuant to subsection 6(c), but only within the period ending on the earlier of (1)&nbsp;the date eighteen (18)&nbsp;months following the date of death (or such longer or shorter period
specified in the Option Agreement) or (2)&nbsp;the expiration of the term of such Option as set forth in the Option Agreement. If, after death, the Option is not exercised within the time specified
herein, the Option shall terminate. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(i) Early Exercise.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Option may, but need not, include a provision whereby the Optionholder may elect at any time
before the Optionholder's Continuous Service terminates to exercise the Option as to any part or all of the shares subject to the Option prior to the full vesting of the Option. Any unvested shares so
purchased may be subject to an unvested share repurchase option in favor of the Company or to any other restriction the Board determines to be appropriate. </FONT></P>


<P><FONT SIZE=2><B>7.&nbsp;&nbsp;PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Stock Bonus Awards.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Each stock bonus agreement shall be in such form and shall contain such terms and conditions as
the Board shall deem appropriate. The terms and conditions of stock bonus agreements may change from time to time, and the terms and conditions of separate stock bonus agreements need not be
identical, but each stock bonus agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(i)&nbsp;Consideration</B></FONT><FONT SIZE=2>. A stock bonus shall be awarded in consideration for past services actually rendered to the Company or
an Affiliate for its benefit. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(ii)&nbsp;Vesting</B></FONT><FONT SIZE=2>. Shares of Common Stock awarded under the stock bonus agreement may, but need not, be subject to a share
repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<UL>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>(iii)&nbsp;Termination of Participant's Continuous Service</B></FONT><FONT SIZE=2>. In the event a Participant's Continuous Service terminates, the
Company may reacquire any or all of the shares of Common Stock held by the Participant that have not vested as of the date of termination under the terms of the stock bonus agreement; provided,
however, that in the event a Participant's Continuous Service terminates as a result of the Participant's death, then, subject to any restrictions in the stock bonus agreement, the shares acquired
pursuant to the stock bonus agreement shall become fully vested as of the date of termination. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iv)&nbsp;Transferability</B></FONT><FONT SIZE=2>. Rights to acquire shares under the stock bonus agreement shall be transferable by the Participant
only upon such terms and conditions as are set forth in the stock bonus agreement, as the Board shall determine in its discretion, so long as stock awarded under the stock bonus agreement remains
subject to the terms of the stock bonus agreement. </FONT></P>

</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) Restricted Stock Awards.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Each restricted stock purchase agreement shall be in such form and shall contain such
terms and conditions as the Board shall deem appropriate. The terms and conditions of the restricted stock purchase agreements may change from time to time, and the terms and conditions of separate
restricted stock purchase agreements need not be identical, but each restricted stock
purchase agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(i)&nbsp;Purchase Price</B></FONT><FONT SIZE=2>. The purchase price under each restricted stock purchase agreement shall be such amount as the Board
shall determine and designate in such restricted stock purchase agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(ii)&nbsp;Consideration</B></FONT><FONT SIZE=2>. The purchase price of stock acquired pursuant to the restricted stock purchase agreement shall be
paid either: (1)&nbsp;in cash at the time of purchase; (2)&nbsp;at the discretion of the Board, according to a deferred payment or other similar arrangement with the Participant; or (3)&nbsp;in
any other form of legal consideration that may be acceptable to the Board in its discretion; provided, however, that at any time that the Company is incorporated in Delaware, payment of the Common
Stock's "par value," as defined in the Delaware General Corporation Law, shall not be made by deferred payment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iii)&nbsp;Vesting</B></FONT><FONT SIZE=2>. Shares of Common Stock acquired under the restricted stock purchase agreement may, but need not, be
subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(iv)&nbsp;Termination of Participant's Continuous Service</B></FONT><FONT SIZE=2>. In the event a Participant's Continuous Service terminates, the
Company may repurchase or otherwise reacquire any or all of the shares of Common Stock held by the Participant that have not vested as of the date of termination under the terms of the restricted
stock purchase agreement; provided, however, that in the event a Participant's Continuous Service terminates as a result of the Participant's death, then, subject to any restrictions in the restricted
stock purchase agreement, the shares acquired pursuant to the restricted stock purchase agreement shall become fully vested as of the date of termination. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(v)&nbsp;Transferability</B></FONT><FONT SIZE=2>. Rights to acquire shares under the restricted stock purchase agreement shall be transferable by the
Participant only upon such terms and conditions as are set forth in the restricted stock purchase agreement, as the Board shall determine in its discretion, so long as stock awarded under the
restricted stock purchase agreement remains subject to the terms of the restricted stock purchase agreement. </FONT></P>

</UL>

<P><FONT SIZE=2><B>8.&nbsp;&nbsp;COVENANTS OF THE COMPANY.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Availability of Shares.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;During the terms of the Stock Awards, the Company shall keep available at all times the
number of shares of Common Stock required to satisfy such Stock Awards. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) Securities Law Compliance.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Company shall seek to obtain from each regulatory commission or agency having
jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this
undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any stock issued or issuable pursuant to any such Stock Award. If, after reasonable efforts,
the Company is unable to obtain from any such regulatory commission or agency the authority that counsel for the Company deems necessary for the lawful issuance and sale of stock under the Plan, the
Company shall be relieved from any liability for failure to issue and sell stock upon exercise of such Stock Awards unless and until such authority is obtained. </FONT></P>

<P><FONT SIZE=2><B>9.&nbsp;&nbsp;USE OF PROCEEDS FROM STOCK.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of stock pursuant to Stock Awards shall constitute general funds of the Company. </FONT></P>


<P><FONT SIZE=2><B>10.&nbsp;MISCELLANEOUS.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Acceleration of Exercisability and Vesting.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Board shall have the power to accelerate the time at which a Stock
Award may first be exercised or the time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at
which it may first be exercised or the time during which it will vest. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) Stockholder Rights.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;No Participant shall be deemed to be the holder of, or to have any of the rights of a holder
with respect to, any shares subject to such Stock Award unless and until such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms. </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(c) No Employment or other Service Rights.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Nothing in the Plan or any instrument executed or Stock Award granted
pursuant thereto shall confer upon any Participant or other holder of Stock Awards any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was
granted or shall affect the right of the Company or an Affiliate to terminate (i)&nbsp;the employment of an Employee with or without notice and with or without cause or (ii)&nbsp;the service of a
Consultant pursuant to the terms of such Consultant's agreement with the Company or an Affiliate. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(d) Investment Assurances.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Company may require a Participant, as a condition of exercising or acquiring stock under
any Stock Award, (i)&nbsp;to give written assurances satisfactory to the Company as to the Participant's knowledge and experience in financial and business matters and/or to employ a purchaser
representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the
purchaser representative, the merits and risks of exercising the Stock Award; and (ii)&nbsp;to give written assurances satisfactory to the Company stating that the Participant is acquiring the stock
subject to the Stock Award for the Participant's own account and not with any present intention of selling or otherwise distributing the stock. The foregoing requirements, and any assurances given
pursuant to such requirements, shall be inoperative if (1)&nbsp;the issuance of the shares upon the exercise or acquisition of stock under the Stock Award has been registered under a then currently
effective registration statement under the Securities Act or (2)&nbsp;as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in
the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems
necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the stock. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>

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<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(e) Withholding Obligations.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;To the extent provided by the terms of a Stock Award Agreement, the Participant may
satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of stock under a Stock Award by any of the following means (in addition to the Company's right to
withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i)&nbsp;tendering a cash payment; (ii)&nbsp;authorizing the Company to withhold shares
from the shares of the Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of stock under the Stock Award, provided, however, that no shares of Common Stock
are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (iii)&nbsp;delivering to the Company owned and unencumbered shares of the Common Stock. </FONT></P>

<P><FONT SIZE=2><B>11.&nbsp;ADJUSTMENTS UPON CHANGES IN STOCK.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Capitalization Adjustments.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;If any change is made in the stock subject to the Plan, or subject to any Stock Award,
without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock
split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company), the Plan will be
appropriately adjusted in the class(es) and maximum number of securities subject to the Plan pursuant to subsection 4(a), and the outstanding Stock Awards will be appropriately adjusted in the
class(es) and number of securities and price per share of stock subject to such outstanding Stock Awards. Such adjustments shall be made by the Board, the determination of which shall be final,
binding and conclusive. (The conversion of any convertible securities of the Company shall not be treated as a transaction "without receipt of consideration" by the Company.) </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) Dissolution or Liquidation.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;In the event of a dissolution or liquidation of the Company, then such Stock Awards
shall be terminated if not exercised (if applicable) prior to such event. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(c) Corporate Transaction.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;In the event of (1)&nbsp;a sale, lease or other disposition of all or substantially all of
the assets of the Company, (2)&nbsp;a merger or consolidation in which the Company is not the surviving corporation or (3)&nbsp;a reverse merger in which the Company is the surviving corporation
but the shares of Common Stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise (a
"Corporate Transaction"), then any surviving corporation or acquiring corporation shall assume any Stock Awards outstanding under the Plan or shall substitute similar stock awards (including an award
to acquire the same consideration paid to the stockholders in the Corporate Transaction) for those outstanding under the Plan. In the event any surviving corporation or acquiring corporation refuses
to assume such Stock Awards or to substitute similar stock awards for those outstanding under the Plan, then with respect to Stock Awards held by Participants whose Continuous Service has not
terminated, the vesting of such Stock Awards (and, if applicable, the time during which such Stock Awards may be exercised) shall be accelerated in full, and the Stock Awards shall terminate if not
exercised (if applicable) at or prior to such Corporate Transaction. With respect to any other Stock Awards outstanding under the Plan, such Stock Awards shall terminate if not exercised (if
applicable) prior to such Corporate Transaction. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(d) Securities Acquisition.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;In the event of an acquisition by any person, entity or group within the meaning of
Section&nbsp;13(d) or 14(d) of the Exchange Act, or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or an
Affiliate) of the beneficial ownership (within the meaning of Rule&nbsp;13d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the Company representing
at least fifty percent (50%) of the combined voting power entitled to vote in the election of Directors and provided that such acquisition is not a result of, and does not constitute, a Corporate
Transaction described in subsection 11(c) hereof, then with respect to Stock Awards held by Participants whose Continuous </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

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<P><FONT SIZE=2>
Service has not terminated, the vesting of such Stock Awards (and, if applicable, the time during which such Stock Awards may be exercised) shall be accelerated in full. </FONT></P>

<P><FONT SIZE=2><B>12.&nbsp;AMENDMENT OF THE PLAN AND STOCK AWARDS.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Amendment of Plan.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Board at any time, and from time to time, may amend the Plan; provided however, that the
rights under any Stock Award shall not be impaired by any amendment of the Plan unless (i)&nbsp;the Company requests the consent of the Participant and (ii)&nbsp;the Participant consents in
writing. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) Amendment of Stock Awards.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Board at any time, and from time to time, may amend the terms of any one or more
Stock Awards; provided, however, that the rights under any Stock Award shall not be impaired by any such amendment unless (i)&nbsp;the Company requests the consent of the Participant and
(ii)&nbsp;the Participant consents in writing. </FONT></P>

<P><FONT SIZE=2><B>13.&nbsp;TERMINATION OR SUSPENSION OF THE PLAN.  </B></FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(a) Plan Term.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The Board may suspend or terminate the Plan at any time. No Stock Awards may be granted under the Plan
while the Plan is suspended or after it is terminated. </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;(b) No Impairment of Rights.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Rights and obligations under any Stock Award granted while the Plan is in effect shall not
be impaired by suspension or termination of the Plan, except with the written consent of the Participant. </FONT></P>

<P><FONT SIZE=2><B>14.&nbsp;EFFECTIVE DATE OF PLAN.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Plan shall become effective upon adoption by the Board. </FONT></P>


<P><FONT SIZE=2><B>15.&nbsp;CHOICE OF LAW.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such
state's conflict of laws rules. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_km1058_1_11"> </A> </FONT> <FONT SIZE=2><B><I>Inhale Therapeutic Systems,&nbsp;Inc. 2000 Non-Officer Equity Incentive Plan ("the Plan")  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This section of the Plan will be known as the Approved Section of the Inhale Therapeutic Systems,&nbsp;Inc. 2000 Non-Officer Equity Incentive
Plan (the "Approved Section"). The Approved Section has been adopted by way of amendment to the Plan for the sole purpose of providing for the grant of options to United Kingdom-based employees of
Inhale Therapeutic System,&nbsp;Inc. and its Subsidiaries and to directors of the Subsidiaries under Section&nbsp;6 of the Plan where the Committee wishes to grant the employees of Inhale
Therapeutic Systems,&nbsp;Inc. and its Subsidiaries and to directors of the Subsidiaries options under a plan approved by the Board of the Inland Revenue under Schedule&nbsp;9 of the Income and
Corporation Taxes Act 1988 in addition to or as an alternative to the grant of Options and other Stock Awards under the Plan. The Approved Section shall only be used in connection with option grants
to United Kingdom-based employees of Inhale Therapeutic Systems,&nbsp;Inc. and its Subsidiaries and United Kingdom-based directors of the Subsidiaries. All other Stock Awards made under the Plan
shall be governed by the Plan without reference to the Approved Section. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;For
the purposes of the Approved Section, the Sections set forth in the Plan shall apply subject to the amendments provided for below and any provision in the Plan that is
inconsistent with the following provisions shall not form part of the Approved Section. Any Approved Option (as defined below) granted under the Approved Section shall be governed by the Plan subject
to the amendments provided for below: </FONT></P>


<P><FONT SIZE=2><B>1.&nbsp;&nbsp;DEFINITIONS AND INTERPRETATION  </B></FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>1.1</B></FONT></DT><DD><FONT SIZE=2>The following words and expressions shall have the following meanings for the purposes of the Approved Section, unless the context
otherwise requires: </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>"the
</FONT><FONT SIZE=2><B>Adoption Date</B></FONT><FONT SIZE=2>" means the date on which the Approved Section is approved by the Inland Revenue; </FONT></P>

<P><FONT SIZE=2>"the
</FONT><FONT SIZE=2><B>Appropriate Period</B></FONT><FONT SIZE=2>" has the same meaning as in paragraph&nbsp;15(2) of Schedule&nbsp;9 to the Taxes Act; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Approved Option</B></FONT><FONT SIZE=2>" means an Option to acquire Section Shares which is granted under Section&nbsp;6 and satisfies the conditions of the Approved
section; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Approved Section</B></FONT><FONT SIZE=2>" means the Approved Section of the Inhale Therapeutic Systems,&nbsp;Inc. 200 Non-Officer Equity Incentive Plan
constituted and governed by the Plan subject to the amendments set out herein; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Associated Company</B></FONT><FONT SIZE=2>" has the same meaning as in Section&nbsp;187(2) of the Taxes Act; </FONT></P>

<P><FONT SIZE=2>"the
</FONT><FONT SIZE=2><B>Company</B></FONT><FONT SIZE=2>" means Inhale Therapeutic Systems,&nbsp;Inc., a Delaware corporation with business address 150 Industrial Road, San Carlos, California
94070-6256; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Control</B></FONT><FONT SIZE=2>" has the same meaning as in section&nbsp;840 of the Taxes Act and "controlled" shall be construed accordingly; </FONT></P>


<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Date of Grant</B></FONT><FONT SIZE=2>" means the date on which an Approved Option is, was, or is to be granted under the Approved Section; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Eligible Employee</B></FONT><FONT SIZE=2>" means a person who is at the relevant Date of Grant: </FONT></P>

<UL>
<UL>
<DL compact>
<DT><FONT SIZE=2><B>(A)</B></FONT></DT><DD><FONT SIZE=2>a Full-time Director or a Qualifying Employee selected by the Committee to participate in the Approved Section; and
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(B)</B></FONT></DT><DD><FONT SIZE=2>not precluded by paragraph&nbsp;8 of Schedule&nbsp;9 (material interest in close company) to the Taxes Act from participating in
the Approved Section; </FONT></DD></DL>
</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

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<UL>
<UL>
</UL>
</UL>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Full-Time Director</B></FONT><FONT SIZE=2>" means a director of a Subsidiary whose terms of office or employment require such director to work for at least
twenty-five hours per week (excluding meal breaks); </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Qualifying Employee</B></FONT><FONT SIZE=2>" means an employee of the Company or a Subsidiary who is not a director of the Company or Subsidiary; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Qualifying Employment</B></FONT><FONT SIZE=2>" means office or employment either as a Full-Time Director or as a Qualifying Employee as the case may be; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Section Shares</B></FONT><FONT SIZE=2>" means Shares which satisfy the conditions specified in Paragraphs 10 to 14 of Schedule&nbsp;9 to the Taxes Act (fully paid up,
unrestricted, ordinary share capital) to be acquired by a Participant on the exercise by such participant of an Approved Option which Shares shall as to voting, dividend, transfer and other rights
including those arising in the liquidation of the Company rank pari passu in all respects and as to one class with the Shares of the Company in issue at that time; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Subsidiary</B></FONT><FONT SIZE=2>" means a body corporate of which the Company is for the time being to be taken to have Control and which is a subsidiary of the Company
within section&nbsp;736 of the Companies Act 1985; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Subsisting Option</B></FONT><FONT SIZE=2>" means an Approved Option which has neither lapsed nor been exercised; </FONT></P>

<P><FONT SIZE=2>"</FONT><FONT
SIZE=2><B>Taxes Act</B></FONT><FONT SIZE=2>" means the Income and Corporation Taxes Act 1988; </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>1.2</B></FONT></DT><DD><FONT SIZE=2>Where the context so permits the singular shall include the plural and vice versa and the masculine shall include the feminine.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>1.3</B></FONT></DT><DD><FONT SIZE=2>Reference to any Act shall include any statutory modification, amendment or re-enactment thereof; </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>2.&nbsp;&nbsp;ELIGIBILITY  </B></FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>2.1</B></FONT></DT><DD><FONT SIZE=2>Notwithstanding Section&nbsp;5 of the Plan, Approved Options shall only be granted to Eligible Employees. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>3.&nbsp;&nbsp;OPTION PROVISIONS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6 of the Plan shall apply provided that the grant of each Approved Option shall comply with the following conditions: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>3.1</B></FONT></DT><DD><FONT SIZE=2>An Approved Option may not be exercised later than the day before the tenth anniversary of the Date of Grant on which day the same
(if it has not already ceased to be exercisable) shall lapse.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>3.2</B></FONT></DT><DD><FONT SIZE=2>The exercise price payable for each Section Share in the event of an Approved Option being exercised shall be:
<BR><BR></FONT>
<DL compact>
<DT><FONT SIZE=2><B>(A)</B></FONT></DT><DD><FONT SIZE=2>where Approved Options are granted when the Shares are not quoted on the New York Stock Exchange, the greater of:
<BR><BR></FONT>
<DL compact>
<DT><FONT SIZE=2><B>(1)</B></FONT></DT><DD><FONT SIZE=2>the par value of a Share; and
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(2)</B></FONT></DT><DD><FONT SIZE=2>the amount determined to be the market value of a Share on the Date of grant in accordance with the provisions of Part&nbsp;VIII of
the Taxation of Chargeable Gains Act of 1992 and agreed for the purposes of the Approved Section with the Inland Revenue Share Valuation Division prior to the date on which an Approved Option is
granted to a Participant; </FONT></DD></DL>
</DD></DL>
</DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

<HR NOSHADE>
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<A NAME="page_km1058_1_13"> </A>
<UL>
<UL>
<UL>
<UL>
</UL>
</UL>
</UL>
<UL>
<DL compact>
<DT><FONT SIZE=2><B>(B)</B></FONT></DT><DD><FONT SIZE=2>where Approved Options are granted when the Shares are quoted on the New York Stock Exchange, the greater of:
<BR><BR></FONT>
<DL compact>
<DT><FONT SIZE=2><B>(1)</B></FONT></DT><DD><FONT SIZE=2>the par value of a Share; and
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(2)</B></FONT></DT><DD><FONT SIZE=2>on any Date of Grant, the closing sales price for a Share on the New York Stock Exchange on the immediately preceding day on which
Shares were traded on the New York Stock Exchange as published in the Wall Street Journal; </FONT></DD></DL>
</DD></DL>
</UL>
</UL>
<BR>
<UL>
<DL compact>
<DT><FONT SIZE=2><B>3.3</B></FONT></DT><DD><FONT SIZE=2>The form of grant of an Approved Option shall be executed by the Company as a deed, and shall state the exercise price, the number of
Shares, the Date of Grant and any performance conditions applicable to the exercise of the approved Option.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>3.4</B></FONT></DT><DD><FONT SIZE=2>Any Approved Option granted to an Eligible Employee shall be limited and take effect so that at the Date of Grant of such Approved
Option the aggregate of:
<BR><BR></FONT>
<DL compact>
<DT><FONT SIZE=2><B>(A)</B></FONT></DT><DD><FONT SIZE=2>the market value of Shares comprised in such Approved Option; and
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(B)</B></FONT></DT><DD><FONT SIZE=2>the market value of Shares comprised in any Subsisting Options which have been granted to that Eligible Employee; and
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(C)</B></FONT></DT><DD><FONT SIZE=2>the market value of any Shares the Eligible Employee may acquire in pursuance of options granted to such Eligible Employee (and not
exercised) under any other scheme approved under Schedule&nbsp;9 to the Taxes Act and established by the Company or any Associated Company of the Company providing for the grant of options to
acquire Shares (other than a savings related share option scheme) </FONT></DD></DL>
</DD></DL>
</UL>

<P><FONT SIZE=2>shall
not exceed &pound;30,000 (or such other amount as may be prescribed by Paragraph&nbsp;28 of Schedule&nbsp;9 to the Taxes Act from time to time). </FONT></P>

<P><FONT SIZE=2>For
the purposes of this paragraph "market value" shall be calculated in accordance with Paragraph&nbsp;28 of Schedule&nbsp;9 to the Taxes Act at the respective Dates of Grant. </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>3.5</B></FONT></DT><DD><FONT SIZE=2>The type of consideration in which the exercise price of an Approved Option is to be paid shall be in monetary form.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>3.6</B></FONT></DT><DD><FONT SIZE=2>An Approved Option shall be personal to the Eligible Employee to whom it is granted and shall not be capable of assignment. Any
purported sale, pledge, assignment, hypothecation, transfer or disposal of or dealing with an Approved Option shall cause the Approved Option to lapse forthwith.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>3.7</B></FONT></DT><DD><FONT SIZE=2>No Approved Option may be exercised at any time when the Shares which may be thereby acquired are not Section Shares.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>3.8</B></FONT></DT><DD><FONT SIZE=2>Upon the exercise of an Approved Option in accordance with the Plan, the Company shall promptly and in any event not later than
30&nbsp;days after the exercise of an Approved Option issue or cause to be issued a stock certificate to the Participant or a book-entry crediting the Participant's account with the
appropriate number of Section Shares.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>3.9</B></FONT></DT><DD><FONT SIZE=2>No Approved Option may be exercised when the Participant to who it was granted is precluded from participating in the Approved
Section by virtue of paragraph&nbsp;8 of Schedule&nbsp;9 to the Taxes Act (material interest in close company). </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>4.&nbsp;&nbsp;TERMINATION OF EMPLOYMENT  </B></FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>4.1</B></FONT></DT><DD><FONT SIZE=2>Except as provided in Section&nbsp;6 paragraph&nbsp;(e) (Termination of continuous Service), Section paragraph&nbsp;(g)
(Disability of the Optionholder) and Section&nbsp;6 paragraph&nbsp;(h) (Death of the </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

<HR NOSHADE>
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<A NAME="page_km1058_1_14"> </A>
<UL>
<UL>

<P><FONT SIZE=2>Optionholder)
of the Plan no Approved Option may be exercised unless the Participant shall have been in Qualifying Employment since the date of the grant of such Approved Option. </FONT></P>

</UL>
<DL compact>
<DT><FONT SIZE=2><B>4.2</B></FONT></DT><DD><FONT SIZE=2>Section&nbsp;6 paragraph&nbsp;(h) (Death of the Optionholder) of the Plan shall apply for the purposes of the Approved Section
provided that no Approve Option may be exercised more than one year later the death of a Participant and following the death of a Participant an Approved Option may only be exercised by the personal
representatives of that Participant.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>4.3</B></FONT></DT><DD><FONT SIZE=2>A female Participant whose employment has been terminated in circumstances such that, pursuant to the Employment Rights Act 1996, she
has a right to return to work shall be deemed for the purposes of the Approved Section not to have eased to be in Qualifying Employment until such time as she is no longer capable, pursuant to the
said Act, of exercising a right to return to work and has not exercised such right. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>5.&nbsp;&nbsp;PROVISIONS OF THE PLAN NOT TO APPLY TO APPROVED OPTIONS  </B></FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>5.1</B></FONT></DT><DD><FONT SIZE=2>Section&nbsp;6 paragraphs 6 (b)(I)(B), (ii)&nbsp;and (iii)&nbsp;(Consideration) and (i)&nbsp;(Early Exercise), 7 (Provisions
of Stock Awards other than Options) and 10 paragraphs (a) (Acceleration of Exercisability and Vesting) and (d)&nbsp;(Investment Assurances) of the Plan shall not apply for the purposes of the
Approved Section. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>6.&nbsp;&nbsp;NO OBLIGATION TO EMPLOY  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;10 paragraph&nbsp;(c) (No Employment or other Service Rights) of the Plan shall apply subject to the following further condition for the
purposes of the Approved Section: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>6.1</B></FONT></DT><DD><FONT SIZE=2>Participation in the Approved Section by a participant is a matter entirely separate from, and shall not affect, the Participant's
pension rights and terms of employment and, in particular (but without prejudice to the foregoing), if a Participant shall cease for any reason (including wrongful dismissal) to be employed by or hold
office with the Company or a Subsidiary the Participant shall not be entitled by way of compensation for loss or otherwise howsoever, to any sum or benefit to compensate the Participant for the loss
of any right or benefit under the Approved Section. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>7.&nbsp;&nbsp;WITHHOLDING OBLIGATIONS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The following provision shall be substituted for Section&nbsp;10 paragraph&nbsp;(e) (Withholding Obligations) of the Plan for the purposes of the Approve
Section: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>7.1</B></FONT></DT><DD><FONT SIZE=2>If a Participant is liable to tax, duties and social security contributions on the exercise of an Approved Option and the Company or
the Participant's employing company or former employing company is liable to make payment to appropriate authorities on account of that liability, then the Participant will enter into such
arrangements as necessary for ensuring that that company is put in sufficient funds to enable it to discharge its liability to make the payment to the appropriate authority, or is reimbursed for any
payment made. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>8.&nbsp;&nbsp;ADJUSTMENT UPON CHANGES IN STOCK  </B></FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>8.1</B></FONT></DT><DD><FONT SIZE=2>The provisions of Section&nbsp;11 paragraphs (c)&nbsp;(Corporate Transaction) and (d)&nbsp;(Securities Acquisition) of the Plan
shall be modified for the purposes of the Approved Section so that they applies only where a company ("the Acquiring Company") </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

<HR NOSHADE>
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<DT><FONT SIZE=2><B>(A)</B></FONT></DT><DD><FONT SIZE=2>obtains Control of the Company as a result of:
<BR><BR></FONT>
<DL compact>
<DT><FONT SIZE=2><B>(1)</B></FONT></DT><DD><FONT SIZE=2>a general offer to acquire the whole of the issued share capital of the Company (other than that which is already owned by it) made
on a condition such that if satisfied the Acquiring Company will have Control of the Company; or
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(2)</B></FONT></DT><DD><FONT SIZE=2>a general offer to acquire all the Ordinary Shares (or such Ordinary Shares as are not already owned by the Acquiring Company); or </FONT></DD></DL>
</DD></DL>
</UL>
</UL>
<BR>
<UL>
<UL>
<DL compact>
<DT><FONT SIZE=2><B>(B)</B></FONT></DT><DD><FONT SIZE=2>obtains Control of the Company in pursuance of a compromise or arrangement sanctioned by the Court under Section&nbsp;425 of the
Companies Act 1985;
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(C)</B></FONT></DT><DD><FONT SIZE=2>becomes bound or entitled to acquire Ordinary Shares under sections 428 to 430 of the Companies Act 1985. </FONT></DD></DL>
</UL>
</UL>
<BR>
<UL>
<DL compact>
<DT><FONT SIZE=2><B>8.2</B></FONT></DT><DD><FONT SIZE=2>Where Rule&nbsp;8.1 applies any Option subsisting at the date of the Corporate Transaction or Securities Acquisition (as defined in
the Plan) may be released by the Participant at any time during the Appropriate period, at the option of the Committee and with the agreement of the Acquiring Company, for an equivalent option over
shares of the Acquiring Company which satisfies the conditions that it:
<BR><BR></FONT>
<DL compact>
<DT><FONT SIZE=2><B>(A)</B></FONT></DT><DD><FONT SIZE=2>is over shares in the acquiring company or a company which has Control of the acquiring company which satisfy the conditions
specified in paragraphs 10 to 14 of Schedule&nbsp;9 to the Taxes Act (and the terms "Ordinary Shares" and "Scheme Shares" in this Scheme shall thereafter be construed accordingly);
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(B)</B></FONT></DT><DD><FONT SIZE=2>is the right to acquire such number of Scheme Shares as has on acquisition of the new Option as aggregate market value equal to the
aggregate market value of the Scheme Shares subject to the old Option immediately before its release;
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(C)</B></FONT></DT><DD><FONT SIZE=2>has an Option Price per Scheme Share such that the total amount payable on exercise is equal to the total amount payable on exercise
of the old Option; and
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(D)</B></FONT></DT><DD><FONT SIZE=2>is otherwise in identical terms to the old Option and for this purpose references to "the Company" in the Plan other than
Section&nbsp;(6) shall, unless the context otherwise requires, be deemed to refer to the acquiring company or, as the case may be, to the other company over whose shares the new Option is granted. </FONT></DD></DL>
</DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
new Option shall for all other purposes of the Scheme be treated as having been acquired at the same time as the old Option in respect of which it is granted. </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>8.3</B></FONT></DT><DD><FONT SIZE=2>Every alteration or variation made pursuant to Section&nbsp;11 for the purposes of the Approved Section shall be subject to the
prior approval of the Board of Inland Revenue.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>8.4</B></FONT></DT><DD><FONT SIZE=2>Following the adjustment, the Shares continue to be Section Shares. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>9.&nbsp;&nbsp;AMENDMENT OF THE PLAN AND STOCK AWARDS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;12 of the Plan shall operate for the purposes of the Approved Section of the Plan subject to the following condition: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>9.1</B></FONT></DT><DD><FONT SIZE=2>Following the approval of the Approved Section under Schedule&nbsp;9 to the Taxes Act, no alteration of the Approved Section shall
have effect until approved by the Board of Inland Revenue. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

<HR NOSHADE>
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<UL>
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</UL>
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<P><FONT SIZE=2><B>10.&nbsp;CHOICE OF LAW  </B></FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>10.1</B></FONT></DT><DD><FONT SIZE=2>Notwithstanding Section&nbsp;15 of the Plan, the Approved Section shall be governed by and construed in accordance with the laws
of England, except that any matters relating to the internal governance of the Company shall be governed by Delaware law. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

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<FONT SIZE=2><A HREF="#toc_ki1058_1">INHALE THERAPEUTIC SYSTEMS, INC. 2000 NON-OFFICER EQUITY INCENTIVE PLAN</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>6
<FILENAME>a2067786zex-99_2.htm
<DESCRIPTION>EXHIBIT 99.2
<TEXT>
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99.2  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ko1058_approved_section_of_the_inhale__app03493"> </A>
<A NAME="toc_ko1058_1"> </A>
<BR></FONT><FONT SIZE=2><B>APPROVED SECTION OF THE INHALE THERAPEUTIC SYSTEMS,&nbsp;INC.<BR>  2000 NON-OFFICER EQUITY INCENTIVE PLAN    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ko1058_stock_option_agreement(1)_(nonstatutory_stock_option)"> </A>
<A NAME="toc_ko1058_2"> </A></FONT> <FONT SIZE=2><B>STOCK OPTION AGREEMENT(1)<BR>  (NONSTATUTORY STOCK OPTION)</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the Nonstatutory Stock Option Notice ("Option Notice") and this Stock Option Agreement, Inhale Therapeutic Systems,&nbsp;Inc. (the "Company") has granted you an option
under the Approved Section of its 2000 Non-Officer Equity Incentive Plan (the "Plan") to purchase the number of shares of the Company's Common Stock indicated in the Option Notice at the
exercise price indicated in the Option Notice. Defined terms not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same definitions as in the Plan. </FONT></P>

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT><FONT SIZE=2>(1)</FONT></DT><DD><FONT SIZE=2>In
the event of any conflict, the rules of the Plan and Schedule 9 of the Income and Corporation Taxes Act 1988 shall take precedence over the terms of this document. Any references
to taxation consequenses are for guidence only. </FONT></DD></DL>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
details of your options are as follows: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2><B>1.</B></FONT></DT><DD><FONT SIZE=2><B>VESTING.</B></FONT><FONT SIZE=2> Subject to the limitations contained herein, your option will vest as provided in the Option Notice,
provided that vesting will cease upon the termination of your Continuous Service.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>2.</B></FONT></DT><DD><FONT SIZE=2><B>NUMBER OF SHARES AND EXERCISE PRICE.</B></FONT><FONT SIZE=2> The number of shares subject to your option and your exercise price per
share referenced in the Option Notice may be adjusted from time to time for capitalization adjustments, as provided in the Plan.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>3.</B></FONT></DT><DD><FONT SIZE=2><B>METHOD OF PAYMENT</B></FONT><FONT SIZE=2>. Payment of the exercise price is due in full upon exercise of all or any part of your
option. You may elect to make payment of the exercise price in cash or by check;
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>4.</B></FONT></DT><DD><FONT SIZE=2><B>SECURITIES LAW COMPLIANCE</B></FONT><FONT SIZE=2>. Notwithstanding anything to the contrary contained herein, your option may not be
exercised unless the shares issuable upon exercise of your option are then registered under the Securities Act or, if such shares are not then so registered, the Company has determined that such
exercise and issuance would be exempt from the registration requirements of the Securities Act. The exercise of your option must also comply with other applicable laws and regulations governing the
option, and the option may not be exercised if the Company determines that the exercise would not be in material compliance with such laws and regulations.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>5.</B></FONT></DT><DD><FONT SIZE=2><B>TERM</B></FONT><FONT SIZE=2>. The term of your option commences on the Grant Date and expires upon the </FONT> <FONT SIZE=2><I>earliest </I></FONT><FONT SIZE=2>of the
following:
<BR><BR></FONT>
<DL compact>
<DT><FONT SIZE=2><B>(a)</B></FONT></DT><DD><FONT SIZE=2>three (3)&nbsp;months after the termination of your Continuous Service for any reason other than death of Disability, provided that
if during any part of such three (3)-month period the option is not exercisable solely because of the condition set forth in paragraph&nbsp;5, the option shall not expire until the earlier of the
Expiration Date or until it shall have been exercisable for an aggregate period of three (3)&nbsp;months after the termination of your Continuous Service:
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(b)</B></FONT></DT><DD><FONT SIZE=2>twelve (12)&nbsp;months after the termination of your Continuous Service due to Disability;
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(c)</B></FONT></DT><DD><FONT SIZE=2>twelve (12)&nbsp;months after your death if you die either during your Continuous Service or within three (3)&nbsp;months after
your Continuous Service terminates;
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(d)</B></FONT></DT><DD><FONT SIZE=2>the Expiration Date indicated in the Option Notice; or
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(e)</B></FONT></DT><DD><FONT SIZE=2>the day before the tenth (10<SUP>th</SUP>) anniversary of the Grant Date. </FONT></DD></DL>
</DD></DL>
</UL>
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</UL>
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<DL compact>
<DT><FONT SIZE=2><B>6.</B></FONT></DT><DD><FONT SIZE=2><B>EXERCISE.</B></FONT><FONT SIZE=2>
<BR><BR></FONT>
<DL compact>
<DT><FONT SIZE=2><B>(a)</B></FONT></DT><DD><FONT SIZE=2>You may exercise the vested portion of your option (and the unvested portion of your option if approved by the Board) during its term
by delivering a Notice of Exercise (in a form designated by the Company) together with the exercise price to the Secretary of the Company, or to such other person as the Company may designate, during
regular business hours, together with such additional documents as the Company may then require.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>(b)</B></FONT></DT><DD><FONT SIZE=2>By exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to enter into an
arrangement to ensure that the Company or any Affiliate is put in sufficient funds, or reimbursed, to enable it to discharge any liability it may have to make a payment to the appropriate authority in
respect of any liability which may arise to you respect of tax, duties and social security contributions on the exercise of your option. </FONT></DD></DL>
</DD></DL>
</UL>
<BR>
<UL>
<DL compact>
<DT><FONT SIZE=2><B>7.</B></FONT></DT><DD><FONT SIZE=2><B>TRANSERABILITY.</B></FONT><FONT SIZE=2> You option is not transferable, except by will or by the laws of descent and distribution,
and is exercisable during your life only by you. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a third party who,
in the event of your death, shall thereafter be entitled to exercise your option.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>8.</B></FONT></DT><DD><FONT SIZE=2><B>OPTION NOT A SERVICE CONTRACT.</B></FONT><FONT SIZE=2> Your option is not an employment or service contract, and nothing in you
option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to continue your
employment. In addition, nothing in your option shall obligate the Company or an Affiliate, their respective shareholders, Boards of Directors, Officers or Employees to continue any relationship that
you might have as a Consultant for the Company or an Affiliate. Your option is a matter entirely separate from, and shall not affect, the your pension rights and terms of employment and, in particular
(but without prejudice to the foregoing), if you shall cease for any reason (including your wrongful dismissal) to be employed by or hold office with the Company or an Affiliate you shall not be
entitled by way of compensation for loss or otherwise howsoever, to any sum or benefit to compensate you for the loss of any right or benefit under the Plan.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>9.</B></FONT></DT><DD><FONT SIZE=2><B>NOTICES</B></FONT><FONT SIZE=2>. Any notices provided for in your option or the Plan shall be given in writing and shall be deemed
effectively given upon receipt.
<BR><BR></FONT></DD><DT><FONT SIZE=2><B>10.</B></FONT></DT><DD><FONT SIZE=2><B>GOVERNING PLAN DOCUMENT.</B></FONT><FONT SIZE=2> Your option is subject to all the provisions of the Plan, the provisions of which
are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In
the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control. </FONT></DD></DL>
</UL>
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<FONT SIZE=2><A HREF="#toc_ko1058_1">APPROVED SECTION OF THE INHALE THERAPEUTIC SYSTEMS, INC. 2000 NON-OFFICER EQUITY INCENTIVE PLAN</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_ko1058_2">STOCK OPTION AGREEMENT(1) (NONSTATUTORY STOCK OPTION)</A></FONT><BR>
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<TYPE>EX-99.3
<SEQUENCE>7
<FILENAME>a2067786zex-99_3.htm
<DESCRIPTION>EXHIBIT 99.3
<TEXT>
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99.3  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kq1058_the_approved_section_of_the_in__the04670"> </A>
<A NAME="toc_kq1058_1"> </A></FONT> <FONT SIZE=2><B>THE APPROVED SECTION OF THE INHALE THERAPEUTIC SYSTEMS,&nbsp;INC.<BR>  2000 NON-OFFICER EQUITY INCENTIVE PLAN<BR>  STOCK OPTION GRANT NOTICE(2)    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Inhale Therapeutic Systems,&nbsp;Inc. (the "Company"), pursuant to the Approved Section of its 2000 Non-Officer Equity Incentive Plan (the
"Plan"), hereby grants to Optionholder an option to purchase the number of shares of the Company's Common Stock set forth below. This option is subject to all of the terms and conditions as set forth
herein and in the Stock Option Agreement, the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their entirety. </FONT></P>

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT><FONT SIZE=2>(2)</FONT></DT><DD><FONT SIZE=2>In
the event of any conflict, the rules of the Plan and Schedule 9 or the Income and Corporation Taxes Act 1988 shall take precedence over the terms of this document. Any references
to taxation consequences are for guidance only. </FONT></DD></DL>
<BR>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Optionholder:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Date of Grant:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Vesting Commencement Date:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Number of Shares Subject to Option:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Exercise Price Per Share:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>Expiration Date:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="52%"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><BR><FONT SIZE=2><B>Type of Grant:</B></FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="52%"><FONT SIZE=2><BR>
Nonstatutory Stock Option (Approved)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><BR><FONT SIZE=2><B>Exercise Schedule</B></FONT><FONT SIZE=2>:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="52%"><FONT SIZE=2><BR>
/&nbsp;/ Same as Vesting Schedule</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><BR><FONT SIZE=2><B>Vesting Schedule:</B></FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="52%"><FONT SIZE=2><BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of the shares vest one year after the Vesting Commencement Date.<BR>
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of the shares vest monthly thereafter over the next ___&nbsp;years.</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Option is exercisable in accordance with the terms of the Plan rules. If there is to be no charge to income tax on the exercise of the Option then, in addition to complying with
the rules of the Plan, the exercises must be: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>made
at a time when the Plan retains Inland Revenue approval;
<BR><BR></FONT></DD><DT><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>not
earlier than 3 nor later than 10&nbsp;years after the Option was granted; and
<BR><BR></FONT></DD><DT><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>not
earlier than 3&nbsp;years following the latest previous exercise by the Optionholder of an Option (obtained under this or any other option scheme
(except a savings related share option plan) approved by the Inland Revenue) which enjoyed relief from income tax. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;Additional Terms/Acknowledgements:</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The undersigned Optionholder acknowledges receipt of, and understands and agrees to,
this Grant Notice, the Stock Option Agreement and the Plan. Optionholder further acknowledges that as of the Date of Grant, this Grant Notice, the Stock Option Agreement and the Plan set forth the
entire understanding between Optionholder and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements </FONT></P>

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<P><FONT SIZE=2>
on that subject with the exception of (i)&nbsp;options previously granted and delivered to Optionholder under the Plan, and (ii)&nbsp;the following agreements only: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<DIV ALIGN="CENTER"><TABLE WIDTH="63%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="58%"><FONT SIZE=2><B>OTHER AGREEMENTS:</B></FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="58%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%" ALIGN="CENTER"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="58%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="41%" ALIGN="CENTER"><HR NOSHADE></TD>
</TR>
</TABLE></DIV>
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<TABLE WIDTH="78%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=5><FONT SIZE=2><B>INHALE THERAPEUTIC SYSTEMS,&nbsp;INC.</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><B>OPTIONHOLDER:</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5><FONT SIZE=2><BR>
Signed as a Deed by:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2>Signature</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2>Signature</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2><BR>
Title:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
Date:</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>Date:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B>ATTACHMENTS:</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Stock Option Agreement, 2000 Non-Officer Equity Incentive Plan and
Notice of Exercise </FONT></P>

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<FONT SIZE=2><A HREF="#toc_kq1058_1">THE APPROVED SECTION OF THE INHALE THERAPEUTIC SYSTEMS, INC. 2000 NON-OFFICER EQUITY INCENTIVE PLAN STOCK OPTION GRANT NOTICE(2)</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>8
<FILENAME>a2067786zex-99_4.htm
<DESCRIPTION>EXHIBIT 99.4
<TEXT>
<HTML>
<HEAD>
<TITLE> Prepared by MERRILL CORPORATION
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="ks1058_exhibit_99.4"> </A>
<A NAME="toc_ks1058_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit 99.4    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ks1058_inhale_therapeutic_systems,_in__inh02517"> </A>
<A NAME="toc_ks1058_2"> </A></FONT> <FONT SIZE=2><B>INHALE THERAPEUTIC SYSTEMS,&nbsp;INC.<BR>  2000 NON-OFFICER EQUITY INCENTIVE PLAN    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>STOCK OPTION AGREEMENT<BR>
(NONSTATUTORY (UNAPPROVED) STOCK OPTION)  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Nonstatutory Stock Option Notice ("Option Notice") and this Stock Option Agreement, Inhale Therapeutic Systems,&nbsp;Inc. (the "Company") has
granted you an option under its 2000 Non-Officer Equity Incentive Plan (the "Plan") to purchase the number of shares of the Company's Common Stock indicated in the Option Notice at the
exercise price indicated in the Option Notice. Defined terms not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same definitions as in the Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
details of your option are as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>1.&nbsp;&nbsp;VESTING.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Subject to the limitations contained herein, your option will vest as provided in the
Option Notice, provided that vesting will cease upon the termination of your Continuous Service. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.&nbsp;&nbsp;NUMBER OF SHARES AND EXERCISE PRICE.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The number of shares subject to your option and your exercise
price per share referenced in the Option Notice may be adjusted from time to time for capitalization adjustments, as provided in the Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>3.&nbsp;&nbsp;EXERCISE PRIOR TO VESTING ("EARLY EXERCISE").</B></FONT><FONT SIZE=2>&nbsp;&nbsp;If approved in advance by the Board of Directors, and
subject to the provisions of this option, you may elect at any time that is both (i)&nbsp;during
the period of your Continuous Service and (ii)&nbsp;during the term of your option, to exercise all or part of your option, including the nonvested portion of your option; provided, however, that. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)</B></FONT><FONT SIZE=2>&nbsp;a partial exercise of your option shall be deemed to cover first vested shares and then the earliest vesting
installment of unvested shares; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(b)</B></FONT><FONT SIZE=2>&nbsp;any shares so purchased from installments which have not vested as of the date of exercise shall be subject to the
purchase option in favor of the Company as described in the Company's form of Early Exercise Stock Purchase Agreement; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(c)</B></FONT><FONT SIZE=2>&nbsp;you shall enter into the Company's form of Early Exercise Stock Purchase Agreement with a vesting schedule that will
result in the same vesting as if no early exercise had occurred. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>4.&nbsp;&nbsp;METHOD OF PAYMENT</B></FONT><FONT SIZE=2>.&nbsp;&nbsp;Payment of the exercise price is due in full upon exercise of all or any part of
your option. You may elect to make payment of the exercise price in one or more of the following forms </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)</B></FONT><FONT SIZE=2>&nbsp;In cash or by check; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(b)</B></FONT><FONT SIZE=2>&nbsp;In the Company's sole discretion at the time your option is exercised and provided that at the time of exercise the
Common Stock is publicly traded and quoted regularly in </FONT><FONT SIZE=2><I>The Wall Street Journal</I></FONT><FONT SIZE=2>, pursuant to a program developed under Regulation&nbsp;T as
promulgated by the Federal Reserve Board which, prior ED the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay
the aggregate exercise price to the Company from the sales proceeds; or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(c)</B></FONT><FONT SIZE=2>&nbsp;Provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in </FONT> <FONT SIZE=2><I>The Wall Street Journal</I></FONT><FONT SIZE=2>, by delivery of already-owned shares
of Common Stock, held for the period required to avoid a charge to the Company's reported
earnings (generally six months) or were not acquired, directly or indirectly from the Company, owned free and clear of any liens, claims, encumbrances or security interests, and valued at its Fair
Market Value an the date of exercise. "Delivery" for these purposes, in the sole discretion of the Company at the time </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<UL>

<P><FONT SIZE=2>
your option is exercised, shall include delivery to the Company of your attestation of ownership of such shares of Common Stock in a form approved by the Company. Notwithstanding the foregoing, your
option may not be exercised by tender to the Company of Common Stock to the extent such tender would constitute a violation of the provisions of any law, regulation or agreement restricting the
redemption of the Company's stock. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.&nbsp;&nbsp;SECURITIES LAW COMPLIANCE.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Notwithstanding anything to the contrary contained herein, your option
may not be exercised unless the shares issuable upon exercise of your option are then registered under the Securities Act or, if such shares are not then so registered, the Company has determined that
such exercise and issuance would be exempt from the registration requirements of the Securities Act. The exercise of your option must also comply with other applicable laws and regulations governing
the option, and the option may not be exercised if the Company determines that the exercise would not be in material compliance with such laws and regulations. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>6.&nbsp;&nbsp;TERM.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;The term of your option commences on the Grant Date and expires upon the earliest of the
following: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)</B></FONT><FONT SIZE=2>&nbsp;three (3)&nbsp;months after the termination of your Continuous Service for any reason other than death or
Disability, provided that if during any part of such three (3)-month period the option is not exercisable solely because of the condition set forth in paragraph&nbsp;6, the option shall not expire
until the earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of three (3)&nbsp;months after the termination of your Continuous Service; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(b)</B></FONT><FONT SIZE=2>&nbsp;twelve (12)&nbsp;months after the termination of your Continuous Service due to Disability; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(c)</B></FONT><FONT SIZE=2>&nbsp;eighteen (18)&nbsp;months after your death if you die either during your Continuous Service or within three
(3)&nbsp;months after your Continuous Service terminates; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(d)</B></FONT><FONT SIZE=2>&nbsp;the Expiration Date indicated in the Option Notice, or </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(e)</B></FONT><FONT SIZE=2>&nbsp;the day before the tenth (10th) anniversary of the Grant Date, </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>7.&nbsp;&nbsp;EXERCISE</B></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)</B></FONT><FONT SIZE=2>&nbsp;You may exercise the vested portion of your option (and the unvested portion of your option if approved by the
Board) during its term by delivering a Notice of Exercise (in a form designated by the Company) together with the exercise price to the Secretary of the Company, or to such other person is the Company
may designate, during regular business hours, together with such additional documents as the Company may then require. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(b)</B></FONT><FONT SIZE=2>&nbsp;By exercising your option you agree that, as a condition to any exercise of your option, the Company will require
you to enter an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company (including pursuant to the Election to Transfer Liability to Employer's
National Insurance) arising by reason of (1)&nbsp;the exercise of your option, (2)&nbsp;the lapse of any substantial risk of forfeiture to which the shares are subject at the time of exercise, or
(3)&nbsp;the disposition of shares acquired upon such exercise. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>8.&nbsp;&nbsp;TRANSFERABILITY.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Your option is not transferable, except by will or by the laws of descent and
distribution, and is exercisable during your life only by you. Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Company, you may designate a
third party who, in the event of your death, shall thereafter be entitled to exercise your option. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>9.&nbsp;&nbsp;OPTION NOT A SERVICE CONTRACT.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Your option is not an employment or service contract, and nothing in
your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to continue your
employment. In addition, nothing in your option shall obligate the Company or an Affiliate, their respective shareholders, Boards of Directors, Officers or Employees to continue any </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P><FONT SIZE=2>
relationship that you might have as a Consultant for the Company or an Affiliate. Your option is a matter entirely separate from, and shall not affect, your pension rights and terms of employment and,
in particular (but without prejudice to the foregoing), if you shall cease for any reason (including your wrongful dismissal) to be employed by or hold office with the Company or an Affiliate you
shall not be entitled by way of compensation for loss or otherwise howsoever, to any sum or benefit to compensate you for the loss of any right or benefit under the Plan. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>10.&nbsp;&nbsp;WITHHOLDING OBLIGATIONS.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(a)</B></FONT><FONT SIZE=2>&nbsp;At the time your option is exercised, in whole or in put, or at any time thereafter as requested by the Company, you
hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by means of a "cashless exercise" pursuant to a program
developed under Regulation&nbsp;T as promulgated by the Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax
withholding obligations of the Company or an Affiliate (including, without limitation PAYE income tax and employer's and employee's national insurance contributions), if any, which arise in connection
with your option. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(b)</B></FONT><FONT SIZE=2>&nbsp;Upon your request and subject to approval by the Company, in its sole discretion, and compliance with any applicable
conditions or restrictions of law, the Company may withhold from fully vested
shares of Common Stock otherwise issuable to you upon the exercise of your option a number of whole shares having a value, determined by the Company as of the date of exercise, not in excess of the
amount of tax required to be withheld by law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>(c)</B></FONT><FONT SIZE=2>&nbsp;Your option is not exercisable unless the tax withholding obligations of the Company and/or any Affiliate and the
withholding pursuant to the Election to Transfer Liability to Employer's National Insurance are satisfied. Accordingly, you may not be able to exercise your option when desired even though your option
is vested, and the Company shall have no obligation to issue a certificate for such shares or release such shares from any escrow provided for herein, </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>11.&nbsp;&nbsp;NOTICES.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Any notices provided for in your option or the Plan shall be given in writing and shall be
deemed effectively given upon receipt. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>12.&nbsp;&nbsp;GOVERNING PLAN DOCUMENT.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;Your option is subject to all the provisions of the Plan, the provisions
of which are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the
Plan provided that the terms of this agreement shall be governed by the law of England and Wales except that any matters relating to the internal governance of the Company shall be governed by
Delaware law. In the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<FONT SIZE=2><A HREF="#toc_ks1058_2">INHALE THERAPEUTIC SYSTEMS, INC. 2000 NON-OFFICER EQUITY INCENTIVE PLAN</A></FONT><BR>
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<TYPE>EX-99.5
<SEQUENCE>9
<FILENAME>a2067786zex-99_5.htm
<DESCRIPTION>EXHIBIT 99.5
<TEXT>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="ku1058_exhibit_99.5"> </A>
<A NAME="toc_ku1058_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit 99.5    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ku1058_inhale_therapeutic_systems,_in__inh03553"> </A>
<A NAME="toc_ku1058_2"> </A></FONT> <FONT SIZE=2><B>INHALE THERAPEUTIC SYSTEMS,&nbsp;INC.<BR>  STOCK OPTION GRANT NOTICE<BR>  (2000 Non-Officer Equity Incentive Plan)    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Inhale Therapeutic Systems,&nbsp;Inc. (the "Company"), pursuant to its 2000 Non-Officer Equity Incentive Plan (the "Plan"), hereby grants to
Optionholder an option to purchase the number of shares of the Company's Common Stock set forth below. This option is subject to all of the terms and conditions as set forth herein and in the Stock
Option Agreement, the Election to Transfer Liability to Employer's National Insurance, the Plan and the Notice of Exercise, all of which are attached hereto and incorporated herein in their entirety. </FONT></P>

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<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Optionholder:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Date of Grant:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Vesting Commencement Date:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Number of Shares Subject to Option:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Exercise Price Per Share:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Expiration Date:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> (NB must be tenth anniversary of grant or before)</FONT></TD>
</TR>
</TABLE>
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<TD WIDTH="32%"><FONT SIZE=2>Type of Grant:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Nonstatutory Stock Option (Unapproved)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Exercise Schedule:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2><BR>
/&nbsp;/&nbsp;Same as Vesting Schedule</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2><BR>
/&nbsp;/&nbsp;Early Exercise Permitted</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
Vesting Schedule:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
___ of the shares vest one year after the Vesting Commencement Date.<BR>
___ of the shares vest monthly thereafter over the next ___ years.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><BR><FONT SIZE=2><B>Payment:</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
By one or a combination of the following items (described in the Stock Option Agreement):</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2><BR>
By cash or check<BR>
Pursuant to a Regulation T Program if the Shares are publicly traded<BR>
By delivery of already-owned shares if the Shares are publicly traded</FONT></TD>
</TR>
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<P><FONT SIZE=2><B>Additional Terms/Acknowledgements: </B></FONT><FONT SIZE=2>The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this Grant Notice, the Stock
Option Agreement, the Election to Transfer Liability to Employer's National Insurance and the Plan. Optionholder further acknowledges that as of the Dare of Grant this Grant Notice, the Stock Option
Agreement and the Plan set forth the entire understanding between Optionholder and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on
that subject with the exception of (i)&nbsp;options previously granted and delivered to Optionholder under the Plan and (ii)&nbsp;the following agreements only: </FONT></P>

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<TD COLSPAN=3><FONT SIZE=2><B>OTHER AGREEMENTS:</B></FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2>&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=3 VALIGN="TOP"><BR><FONT SIZE=2><B>INHALE THERAPEUTIC SYSTEMS, INC.</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT SIZE=2><B><BR>&nbsp;</B></FONT></TD>
<TD COLSPAN=3 VALIGN="TOP"><FONT SIZE=2><B><BR>
OPTIONHOLDER:</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="40%" ALIGN="CENTER"><FONT SIZE=2><BR>
&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Signature</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=3 ALIGN="CENTER"><FONT SIZE=2><BR>
&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Signature</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2><BR>
Title:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2><BR>
&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
Date:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2><BR>
&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><FONT SIZE=2><BR>
Date:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2><BR>
&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="6%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="40%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
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<TD WIDTH="15%"><FONT SIZE=2>Attachments:</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="82%"><FONT SIZE=2>Stock Option Agreement, Election to Transfer Liability to Employer's National Insurance, 2000 Non-Officer Equity Incentive Plan and Notice of Exercise</FONT></TD>
</TR>
</TABLE>
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<FONT SIZE=2><A HREF="#toc_ku1058_1">Exhibit 99.5</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_ku1058_2">INHALE THERAPEUTIC SYSTEMS, INC. STOCK OPTION GRANT NOTICE (2000 Non-Officer Equity Incentive Plan)</A></FONT><BR>
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