exhibit 10. 3 aradigm - grifols option terms for license, development and commercialization agreement for use of aerx inhaler with alpha - 1 antitrypsin background in connection with the license and collaboration agreement related to inhaled ciprofloxacin ( the “ ciprofloxacin license agreement ” ) and stock purchase agreement pursuant to which grifols will purchase an amount equivalent to 35 % of the outstanding common shares of aradigm ( the “ stock purchase agreement ” ) to be entered into by grifols and aradigm, grifols wishes to obtain, and aradigm wishes to grant to grifols, an exclusive option for the right to elect, in grifols ’ sole discretion, to enter into an agreement with aradigm under which grifols would be granted an exclusive, worldwide license to aradigm ’ s proprietary inhalation delivery platform consisting of aerx inhalation devices, aerx dosage forms and breath control technology ( including all underlying intellectual property, including related patents, technology, trademarks, know - how, and all improvements thereto ) ( the “ aerx inhaler platform ” ) for use with grifols ’ alpha - 1 antitrypsin ( “ a1at ” ) molecule ( such option, the “ option ” and such resulting license agreement, the “ a1at agreement ” ). the a1at agreement would be consistent with the terms outlined herein, and shall be supplemented with terms that are customary in license agreements similar in nature to the a1at agreement. option details option period duration : the option period ( during which time grifols may exercise the option ) shall begin at the execution of the ciprofloxacin license agreement and the closing of the transaction set forth in the stock purchase agreement and shall continue for a period of four ( 4 ) months ( the “ option period ” ). responsibilities during the option period : during the option period, aradigm employees will provide reasonable consultation and information about the aerx inhaler platform to grifols to enable grifols to decide whether it wishes to exercise the option. during the option period, grifols shall have reasonable access to ( a ) aradigm ’ s chief executive officer and other senior leadership for purposes of negotiating and finalizing the a1at agreement and ( b ) aradigm responses to any diligence and document requests relating to