Executive Officer Bonus Plan

Exhibit 10.29

EXHIBIT A-1

Anadys Pharmaceuticals, Inc.
Executive Officer Bonus Plan

Purpose of the Plan :

The bonus plan is intended to:

Plan Governance:

The Compensation Committee of the Board of Directors (the “Committee”) is responsible for reviewing and approving the Plan and any proposed modifications to the Plan. The Committee is also responsible for determining final bonus award amounts under the Plan for all Executive Officers. Notwithstanding any provisions of the Plan, the Compensation Committee retains absolute discretion to determine whether any bonus payments will be made in a particular year and the amount of any bonus payments. Bonus determinations under this Plan will be made on an annual basis for the applicable calendar year (each a “Plan Year”).

Eligibility:

In order to be eligible to receive any bonus award under this Plan, a participant (a) must have commenced his/her employment with the Company prior to October 1 ^st of the Plan Year and remained continuously employed through the end of the Plan Year; (b) must be an employee in good standing (i.e., not on a performance improvement plan or an Unacceptable Performance performer (performance category = 1)), and (c) must be an executive officer of the Company as of October 1 ^st of the Plan Year.

Bonus Awards:

Bonus awards will be paid annually in cash, based on achievement of the Plan Year Corporate Goals and individual performance. Bonus awards will be calculated by using the base salary, bonus opportunity, weighting factor, and performance-based multipliers as set forth below (pro-ration will be applied for those employees employed less than the full year and for salary changes during the year). Bonus awards will generally be paid on or about January 15 of the year immediately following the Plan Year, though this timing may be altered at the discretion of the Committee.

Bonus Opportunity; Weighting Factors:

The bonus opportunity and weighting factors will be reviewed annually and adjusted as necessary or appropriate. The bonus opportunities and weightings for the initial Plan Year and for subsequent years unless and until adjusted will be as follows: