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Exhibit 10.7
NUCRYST PHARMACEUTICALS CORP.
DEFERRED SHARE UNIT PLAN
1.   Definitions
  (a)   “Act” means the Income Tax Act (Canada).
 
  (b)   “Board” means the Board of Directors of the Company.
 
  (c)   “Code” means the Internal Revenue Code of 1986, as amended.
 
  (d)   “Common Shares” means the common shares of the Company.
 
  (e)   “Committee” means the committee appointed by the Board to administer the DSU Plan.
 
  (f)   “Company” means Nucryst Pharmaceuticals Corp.
 
  (g)   “DSU Plan” means this Deferred Share Unit Plan, as may be amended from time to time.
 
  (h)   “DSUs” means deferred share units granted pursuant to the DSU Plan as described herein.
 
  (i)   “Effective Payout Date” means the date the Participant receives a payment in respect of the DSUs, on the terms set out in section 4.
 
  (j)   “Exchange” means the NASDAQ National Market or, if the Common Shares are not then listed and posted for trading on the NASDAQ National Market, on such stock exchange or quotation system on which such shares are listed, posted for trading or quoted.
 
  (k)   “Market Price” means the closing price of the Common Shares of the Company on the Exchange for the trading day immediately preceding (i) the date on which the granting of the DSU is approved by the Committee, or (ii) the Effective Payout Date, a

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