ALEXZA PHARMACEUTICALS, INC. WARRANT TO PURCHASE COMMON STOCK
Exhibit 10.28
WARRANT
NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN THE SUBJECT OF
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY
STATE, AND THE SAME HAVE BEEN (OR WILL BE, WITH RESPECT TO THE SECURITIES ISSUABLE UPON EXERCISE
HEREOF) ISSUED IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH
LAWS. NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD,
TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT AS PERMITTED UNDER SUCH
SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
THE WARRANT EVIDENCED BY THIS CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET
FORTH IN THE WARRANT PURCHASE AGREEMENT, DATED AS OF DECEMBER 1, 2006, COPIES OF WHICH ARE ON FILE
AT THE PRINCIPAL EXECUTIVE OFFICES OF THE ISSUER. NO REGISTRATION OF TRANSFER OF THIS WARRANT WILL
BE MADE ON THE BOOKS OF THE ISSUER UNLESS AND UNTIL SUCH RESTRICTIONS SHALL HAVE BEEN COMPLIED
WITH.
ALEXZA PHARMACEUTICALS, INC.
WARRANT TO PURCHASE COMMON STOCK
| No. SA-001 | December 1, 2006 |
Void After December 1, 2011
THIS CERTIFIES THAT, for value received, SYMPHONY ALLEGRO HOLDINGS LLC, with its principal
office at 0000 Xxxxxxx Xxxxx, Xxxxx 000, Xxxxxxxxx, XX 00000, or its assigns (the
“Holder”), is entitled to subscribe for and purchase at the Exercise Price (defined below)
from Alexza Pharmaceuticals, Inc., a Delaware corporation, with its principal office at 0000 Xxxx
Xxxxxx Xxxxxx, Xxxx Xxxx, XX 00000 (the “Company”) up to two million (2,000,000) shares of
the Common Stock of the Company (the “Common Stock”), subject to adjustment as provided
herein. This Warrant is being issued pursuant to the terms of the Warrant Purchase Agreement,
dated December 1, 2006, by and among the Company and the Holder (the “Warrant Purchase
Agreement”). Capitalized terms not otherwise defined herein shall have the respective meanings
ascribed to such terms in the Warrant Purchase Agreement.
1. DEFINITIONS. As used herein, the following terms shall have the following
respective meanings:
(a) “Exercise Period” shall mean the period commencing on December 1, 2007 and ending
on December 1, 2011, except as otherwise provided below.
(b) “Exercise Price” shall mean $9.91 per share, subject to adjustment pursuant to
Section 6 below.
(c) “Exercise Shares” shall mean the shares of the Company’s Common Stock issuable
upon exercise of this Warrant, subject to adjustment pursuant to the terms herein, including but
not limited to adjustment pursuant to Section 6 below.
2. EXERCISE OF WARRANT.
2.1 Method of Exercise. The rights represented by this Warrant may be exercised in
whole or in part at any time during the Exercise Period or earlier at any time upon a Transaction
Event, by delivery of the following to the Company at its address set forth above (or at such other
address as it may designate by notice in writing to the Holder):
(a) An executed Notice of Exercise in the form attached hereto;
(b) Payment of the Exercise Price of the Exercise Shares purchased thereby (i) in cash or by
check or wire transfer of immediately available funds, (ii) pursuant to a Cashless Exercise, as
described below, or (iii) by a combination of (i) and (ii); and
(c) Upon the exercise of the rights represented by this Warrant, shares of Common Stock shall
be issued for the Exercise Shares so purchased, and shall be registered in the name of the Holder
or persons affiliated with the Holder, if the Holder so designates, within a reasonable amount of
time following receipt by the Company of all of the items designated in clauses (a),
(b) and (c) above, but in no event later than thirty (30) days after the date of
exercise pursuant to this Section 2.1. The Company shall (i) upon request of the Holder,
if available and if allowed under applicable securities laws, use commercially reasonable efforts
to deliver Exercise Shares electronically through the Depository Trust Corporation or another
established clearing corporation performing similar functions, or (ii) if requested by the Holder,
deliver to the Holder certificates evidencing the Exercise Shares. The person in whose name any
Exercise Shares are to be issued upon exercise of this Warrant shall be deemed to have become the
holder of record of such shares on the date on which delivery of the Notice of Exercise, delivery
of this Warrant and payment of the Exercise Price were made, irrespective of the date of issuance
of the shares of Common Stock, except that, if the date of such delivery and payment is a date when
the stock transfer books of the Company are closed, such person shall be deemed to have become the
holder of such shares at the close of business on the next succeeding date on which the stock
transfer books are open.
2.2 Cashless Exercise. Notwithstanding any provisions herein to the contrary, if, at
any time during the Exercise Period, the Current Market Price (as defined below) of one share of
Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), in
lieu of exercising this Warrant by payment of cash, the Holder may exercise this Warrant in whole
or part by a cashless exercise by surrender of this Warrant at the principal office of the Company
together with the properly endorsed Notice of Exercise and the Company shall issue to the Holder a
number of shares of Common Stock computed using the following formula:
| X = | Y (B-A)
|
|||||
| Where: | X = | the number of shares of Common Stock to be issued to the Holder. | ||||
| Y = | the number of shares of Common Stock purchasable upon exercise of all of the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (in each case subject to adjustment pursuant to the terms herein, including but not limited to adjustment pursuant to Section 6 below). | |||||
| A = | the Exercise Price. | |||||
| B = | the Current Market Price of one share of Common Stock. | |||||
| “Current Market Price” means on any particular date: | ||||||
(a) if the Common Stock is traded on the Nasdaq SmallCap Market or the Nasdaq Global Market,
the average of the closing prices of the Common Stock of the Company on such market over the five
(5) trading days ending immediately prior to the applicable date of valuation (in the case of a
cashless exercise, the date of valuation will be the exercise date);
(b) if the Common Stock is traded on any registered national stock exchange but is not traded
on the Nasdaq SmallCap Market or the Nasdaq Global Market, the average of the closing prices of the
Common Stock of the Company on such exchange over the five (5) trading days ending immediately
prior to the applicable date of valuation (in the case of a cashless exercise, the date of
valuation will be the exercise date).
(c) if the Common Stock is traded over-the-counter, but not on the Nasdaq SmallCap Market, the
Nasdaq Global Market or a registered national stock exchange, the average of the closing bid prices
over the five (5) trading day period ending immediately prior to the applicable date of valuation
(in the case of a cashless exercise, the date of valuation will be the exercise date); and
(d) if there is no active public market for the Common Stock, the value thereof, as determined
in good faith by the Board of Directors of the Company upon due consideration of the proposed
determination thereof by the Holder.
2.3 Partial Exercise. If this Warrant is exercised in part only, the Company shall,
upon surrender of this Warrant, execute and deliver, within ten (10) days of the date of exercise,
a new Warrant evidencing the rights of the Holder, or such other person as shall be designated in
the Notice of Exercise, to purchase the balance of the Exercise Shares purchasable hereunder. In
no event shall this Warrant be exercised for a fractional Exercise Share, and the Company shall not
distribute a Warrant exercisable for a fractional Exercise Share. Fractional Exercise Shares shall
be treated as provided in Section 5 hereof.
2.4 Legend.
(a) All certificates evidencing the shares to be issued to the Holder may bear the following
legends (provided that no such legend shall be borne by Exercise Shares issued following the valid
disposition of such shares pursuant to a registration statement which is effective under the
Securities Act):
“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE, AND THE SAME HAVE BEEN ISSUED IN
RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS. SUCH SHARES
MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT AS PERMITTED
UNDER SUCH SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.”
“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS
SET FORTH IN ARTICLE VI OF THE WARRANT PURCHASE AGREEMENT, DATED AS OF DECEMBER 1, 2006, BY
AND BETWEEN THE ISSUER HEREOF AND SYMPHONY ALLEGRO HOLDINGS LLC (COPIES OF WHICH ARE ON FILE AT THE
PRINCIPAL EXECUTIVE OFFICES OF THE ISSUER HEREOF), INCLUDING, BUT NOT LIMITED TO, A DAILY SHARE
DISPOSITION LIMIT, WHICH IS THE GREATER OF (X) 35,000 SHARES OR (Y) 25% OF THE AVERAGE DAILY
TRADING VOLUME OF ALEXZA COMMON STOCK OVER THE COURSE OF THE PREVIOUS TWENTY-EIGHT (28) CALENDAR
DAYS (AS REPORTED ON THE NASDAQ GLOBAL MARKET OR SUCH OTHER NATIONAL EXCHANGE REPRESENTING THE
PRIMARY EXCHANGE ON WHICH ALEXZA COMMON STOCK IS LISTED) PER DAY IN RESPECT OF THE WARRANT SHARES
OF THE HOLDER HEREOF. UPON A SALE OR OTHER TRANSACTION RESULTING IN A DIVISION OF THE SHARES
REPRESENTED HEREBY, SUCH MAXIMUM DAILY DISPOSITION AMOUNT WILL BE DIVIDED PRO RATA AMONG SUBSEQUENT
HOLDERS OF THE WARRANT SHARES”.
(b) If the certificates representing shares include either or both of the legends set forth in
Section 2.4(a) hereof, the Company shall, upon a request from a Holder, or subsequent
transferee of a Holder, as soon as practicable but in no event more than thirty (30) days after
receiving such request, remove or cause to be removed (i) if the shares cease to be restricted
securities, the securities law portion of the legend and/or (ii) in the event of a sale of the
shares subject to issuance following the transfer of the shares in compliance with the transfer
restrictions, the transfer restriction portion of the legend, from certificates representing the
shares delivered by a Holder (or a subsequent transferee).
2.5 Charges, Taxes and Expenses. Issuance of the Exercise Shares shall be made
without charge to the Holder for any issue or transfer tax or other incidental expense in respect
of the issuance of any electronic or paper certificate, all of which taxes and expenses shall be
paid by the Company, and such certificates shall be issued in the name of the Holder or in such
name or names as may be directed by the Holder; provided, however, that in the
event Exercise Shares are to be issued in a name other than the name of the Holder, this Warrant
when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly
executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto. Notwithstanding anything to
the contrary in this Section 2.5, all issue or transfer tax or other incidental expenses imposed by
a Governmental Authority outside the United States shall be 100% borne by the Holder.
3. COVENANTS OF THE COMPANY.
3.1 Covenants as to Exercise Shares. The Company covenants and agrees that all
Exercise Shares that may be issued upon the exercise of the rights represented by this Warrant
will, upon issuance, be duly authorized and validly issued and outstanding, fully paid and
nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof.
The Company further covenants and agrees that the Company will at all times during the Exercise
Period, have authorized and reserved, free from preemptive rights, a sufficient number of shares of
its Common Stock to provide for the exercise of the rights represented by this Warrant. If at any
time during the Exercise Period the number of authorized but unissued shares of Common Stock shall
not be sufficient to permit exercise of this Warrant, the Company will take such corporate action
as may, in the opinion of counsel, be necessary to increase its authorized but unissued shares of
Common Stock (or other securities as provided herein) to such number of shares as shall be
sufficient for such purposes.
3.2 No Impairment. Except and to the extent as waived or consented to by the Holder
in accordance with Section 10 hereof, the Company will not, by amendment of its Certificate
of Incorporation (as such may be amended from time to time), or through any means, avoid or seek to
avoid the observance or performance of any of the terms to be observed or performed hereunder by
the Company, but will at all times in good faith carry out of all the provisions of this Warrant
and take all such action
as may be necessary or appropriate in order to protect the exercise rights of the Holder
against such impairment.
3.3 Notices of Record Date. If at any time:
(a) the Company shall take a record of the holders of Common Stock for the purpose of
entitling them to receive a dividend or other distribution, or any right to subscribe for or
purchase any evidences of its indebtedness, any shares of stock of any class or any other
securities or property, or to receive any other right (other than with respect to any equity or
equity equivalent security issued pursuant to a rights plan adopted by the Company’s Board of
Directors);
(b) there shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or merger of the Company,
or any sale, transfer or other disposition of all or substantially all the property, assets or
business of the Company; or
(c) there shall be a voluntary or involuntary dissolution, liquidation or winding up of the
Company;
then, in any one or more of such cases, the Company shall use commercially reasonable efforts to
give to the Holder, provided that such action is available and permitted under the
applicable securities laws, at least ten (10) days’ prior written notice of the record date for
such dividend, distribution or right or for determining rights to vote in respect of any such
reorganization, reclassification, recapitalization, consolidation, merger, sale, transfer,
disposition, dissolution, liquidation or winding up of the Company. Any notice provided hereunder
shall specify the date on which the holders of Common Stock shall be entitled to any such dividend,
distribution or right, and the amount and character thereof, and the then current estimated date
for the closing of the transaction contemplated by any proposed reorganization, reclassification,
recapitalization, consolidation, merger, sale, transfer, disposition, dissolution, liquidation or
winding up of the Company.
4. REPRESENTATIONS OF HOLDER.
4.1 Acquisition of Warrant for Personal Account. The Holder represents and warrants
that it is acquiring the Warrant and the Exercise Shares solely for its account for investment and
not with a present view toward the public sale or public distribution of said Warrant or Exercise
Shares or any part thereof and has no intention of selling or distributing said Warrant or Exercise
Shares or any arrangement or understanding with any other persons regarding the sale or
distribution of said Warrant or the Exercise Shares, except as would not result in a violation of
the Securities Act. The Holder will not, directly or indirectly, offer, sell, pledge, transfer or
otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge
of) the Warrant except in accordance with the provisions of Article VI of the Warrant
Purchase Agreement and will not, directly or indirectly, offer, sell, pledge, transfer or otherwise
dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of)
the Exercise Shares except in accordance with the provisions of Article VI of the
Warrant Purchase Agreement or pursuant to and in accordance with the Securities Act.
4.2 Securities Are Not Registered.
(a) The Holder understands that the offer and sale of neither the Warrant nor the Exercise
Shares has been registered under the Securities Act.
(b) The Holder recognizes that the Warrant and the Exercise Shares must be held indefinitely
unless they are subsequently registered under the Securities Act or an exemption from such
registration is available. The Holder recognizes that the Company has no obligation to register
the Warrant or, except as provided in the Warrant Purchase Agreement and the Registration Rights
Agreement, the Exercise Shares, or to comply with any exemption from such registration.
(c) The Holder is aware that neither the Warrant nor the Exercise Shares may be sold pursuant
to Rule 144 adopted under the Securities Act unless certain conditions are met, including, among
other things, the availability of certain current public information about the Company and the
expiration of the required holding period under Rule 144.
4.3 Disposition of Warrant and Exercise Shares.
(a) The Holder further agrees not to make any disposition of all or any part of the Warrant or
Exercise Shares in any event unless and until one of the following occurs:
(i) The Company shall have received a letter secured by the Holder from the SEC stating that
no action will be recommended to the Commission with respect to the proposed disposition;
(ii) There is then in effect a registration statement under the Securities Act covering the
Exercise Shares and such disposition is made in accordance with said registration statement; or
(iii) The Holder shall have furnished the Company with an opinion of counsel, reasonably
satisfactory to the Company, for the Holder to the effect that such disposition will not require
registration of such Warrant or Exercise Shares under the Securities Act or any applicable state
securities laws; provided, that so long as the Holder provides the Company with a representation
letter in customary form with respect to such Rule 144 disposition, no opinion shall be required
for any disposition made or to be made in accordance with the provisions of Rule 144.
5. FRACTIONAL SHARES. No fractional shares shall be issued upon the exercise of this
Warrant as a consequence of any adjustment pursuant hereto. All Exercise Shares (including
fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining
whether the exercise would result in the issuance of any fractional share. If, after aggregation,
the exercise would result in the issuance of
a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the
Holder otherwise entitled to such fraction a sum in cash equal to the product resulting from
multiplying the then Current Market Price (as of the applicable exercise date) of an Exercise Share
by such fraction.
6. CERTAIN EVENTS.
6.1 Dividends, Subdivisions, Combinations and Reclassifications. The number and kind
of securities purchasable upon the exercise of this Warrant and the Exercise Price shall be subject
to adjustment from time to time upon the happening of any of the following. In case the Company
shall (i) pay a dividend in shares of Common Stock or make a distribution in shares of Common Stock
to holders of its outstanding Common Stock, (ii) subdivide its outstanding shares of Common Stock
into a greater number of shares, (iii) combine its outstanding shares of Common Stock into a
smaller number of shares of Common Stock, or (iv) issue any shares of its capital stock in a
reclassification of the Common Stock, then the number of Warrant Shares purchasable upon exercise
of this Warrant immediately prior thereto shall be adjusted so that the Holder shall be entitled to
receive the kind and number of Warrant Shares or other securities of the Company which it would
have owned or have been entitled to receive had such Warrant been exercised in advance thereof.
Upon each such adjustment of the kind and number of Warrant Shares or other securities of the
Company which are purchasable hereunder, the Holder shall thereafter be entitled to purchase the
number of Warrant Shares or other securities resulting from such adjustment at an Exercise Price
per Warrant Share or other security obtained by multiplying the Exercise Price in effect
immediately prior to such adjustment by the number of Warrant Shares purchasable pursuant hereto
immediately prior to such adjustment and dividing by the number of Warrant Shares or other
securities of the Company resulting from such adjustment. An adjustment made pursuant to this
paragraph shall become effective immediately after the effective date of such event retroactive to
the record date, if any, for such event.
6.2 Corporate Transactions. In the event that the Company enters into a merger or
acquisition in which the surviving or resulting “parent” entity is an entity other than the
Company, then the Holder shall either exercise the Warrant or surrender the Warrant in exchange for
a new warrant exercisable in return for shares or common stock of the Surviving Entity (as defined
in the Warrant Purchase Agreement) (the “Replacement Warrant”), provided that:
(i) in accordance with Section 7.08 of the Warrant Purchase Agreement, if the
consideration for a merger or acquisition consists of a combination of cash and stock of the
Surviving Entity, then the Replacement Warrant issued to the Holder shall be solely for common
stock of the Surviving Entity at an exchange ratio reflecting the total consideration paid by the
Surviving Entity at the time of such change in control as if the total consideration (including
cash) for each share of the Common Stock was instead paid only in common stock of the Surviving
Entity at the time of such change of control (as illustrated on Exhibit C to the Warrant
Purchase Agreement), and the holders of the Replacement Warrants shall have the registration
rights for stock issuable upon exercise of the Replacement Warrants as provided under the
Registration Rights Agreement; or
(ii) in accordance with Section 7.08 of the Warrant Purchase Agreement, if prior to
the end of the Term (as defined in the Warrant Purchase Agreement), a merger or acquisition shall
occur and the consideration for such merger or acquisition shall be paid entirely in cash, then the
Holder of this Warrant shall then have the option to irrevocably elect within fifteen (15) Business
Days of the public announcement of the merger or acquisition by written notice of election to the
Company, either (A) to retain the Warrant and the right to exercise the Warrant then outstanding
for Exercise Shares in accordance with the terms of this Warrant, which exercise shall occur no
later than immediately prior to the closing of such merger or acquisition, or (B) to surrender the
Warrant to the Company in consideration of a cash payment for each share of the Common Stock
subject to purchase under this Warrant in an amount equal to 40% of the per share cash
consideration to be received by a holder of one share of the Common Stock to be tendered in the
merger or acquisition, provided that the aggregate total cash payments to all holders of
outstanding Warrants shall not exceed $10,000,000 (the “Warrant Surrender Price”). The
Warrant Surrender Price shall be paid upon the surrender of the Warrants promptly following the
closing of the all cash merger or acquisition. Any failure by the Holder to deliver a written
notice of election to the Company pursuant to this Section 6.3(ii) shall be deemed an
election of clause (B) of this Section 6.2(ii).
Following a merger or acquisition involving consideration of cash and stock in which the Surviving
Entity is other than the Company, reference to the Common Stock shall instead be deemed a reference
to the common stock of the Surviving Entity. For purposes of Section 6.2(i), “common stock
of the Surviving Entity” shall include stock of such corporation of any class which is not
preferred as to dividends or assets over any other class of stock of such corporation and which is
not subject to redemption and shall also include any evidences of indebtedness, shares of stock or
other securities which are convertible into or exchangeable for any such stock, either immediately
or upon the arrival of a specified date or the occurrence of a specified event and any warrants or
other rights to subscribe for or purchase any such stock. The foregoing provisions of this
Section 6.2 shall similarly apply to successive reorganizations, reclassifications,
mergers, acquisitions, consolidations or disposition of assets.
6.3 Adjustment of Exercise Price. The form of this Warrant need not be changed
because of any adjustment in the number, class, and kind of shares subject to this Warrant. The
Company shall promptly provide a certificate from its principal accounting officer notifying the
Holder in writing of any adjustment in the Exercise Price and/or the total number, class, and kind
of shares (and other securities or property) issuable upon exercise of this Warrant, which
certificate shall specify the Exercise Price and number, class and kind of shares (and other
securities or property) under this Warrant after giving effect to such adjustment and shall set
forth a brief statement of the facts requiring such adjustment and setting forth the computation by
which such adjustment was made.
7. NO STOCKHOLDER RIGHTS. Except to the extent specified in Section 6, this
Warrant in and of itself shall not entitle the Holder to any voting rights or other rights as a
stockholder of the Company. Upon the exercise of this Warrant in accordance with Section
2, the Exercise Shares so purchased shall be and be deemed to be issued to such Holder as the
record owner of such shares as of the close of business on the date of such exercise.
8. TRANSFER OF WARRANT. Subject to applicable laws, the restriction on transfer set
forth on the first page of this Warrant and the provisions of Article VI of the Warrant
Purchase Agreement, this Warrant and all rights hereunder are transferable by the Holder, in person
or by duly authorized attorney, upon delivery of this Warrant, the Assignment Form attached hereto
and funds sufficient to pay any transfer taxes (in accordance with Section 2.5 hereof) payable upon
the making of such transfer, to any transferee designated by Holder. The transferee will sign and
deliver to the Company an investment letter in a form that is commercially reasonable, customary
for use in similar transactions and reasonably satisfactory to the Company. Upon such delivery
and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in
the name of the assignee or assignees and in the denomination or denominations specified in such
instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of
this Warrant not so assigned, and this Warrant shall promptly be cancelled. A Warrant, if properly
assigned, may be exercised by a new holder for the purchase of Exercise Shares without having a new
Warrant issued.
9. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this Warrant is lost, stolen,
mutilated or destroyed, the Company may, on such terms as to indemnity or otherwise as it may
reasonably impose (which shall, in the case of a mutilated Warrant, include the surrender thereof),
issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or
destroyed. Any such new Warrant shall constitute an original contractual obligation of the
Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any
time enforceable by anyone.
10. MODIFICATIONS AND WAIVER. This Warrant and any provision hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the Company and the
Holder.
11. NOTICES, ETC. All notices required or permitted hereunder shall be in writing and
shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when
sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on
the next business day, (c) five days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (d) one business day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt.
All communications shall be sent to the Company at the address listed on the signature page and to
the Holder at the addresses on the Company records, or at such other address as the Company or
Holder may designate by ten days’ advance written notice to the other party hereto.
12. ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of
and agreement to all of the terms and conditions contained herein.
13. GOVERNING LAW. This Warrant and all rights, obligations and liabilities hereunder
shall be governed by the laws of the State of New York without regard to the principles of conflict
of laws. The Company and, by accepting this Warrant, the Holder, each irrevocably submits and
consents to the exclusive jurisdiction of the courts of the State of New York located in New York
County and the United States District Court for the Southern District of New York for the purpose
of any suit, action, proceeding or judgment relating to or arising out of this Warrant and the
transactions contemplated hereby. The Company and, by accepting this Warrant, the Holder, each
irrevocably waives any objection to the laying of venue of any such suit, action or proceeding
brought in such courts and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum. EACH OF THE COMPANY AND, BY
ITS ACCEPTANCE HEREOF, THE HOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY
AS TO THIS WAIVER.
14. DESCRIPTIVE HEADINGS. The descriptive headings of the several paragraphs of this
Warrant are inserted for convenience only and do not constitute a part of this Warrant. The
language in this Warrant shall be construed as to its fair meaning without regard to which party
drafted this Warrant.
15. SUCCESSORS AND ASSIGNS. Subject to applicable securities laws, this Warrant and
the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the
successors of the Company and the successors and permitted assigns of the Holder.
16. SEVERABILITY. The invalidity or unenforceability of any provision of this Warrant
in any jurisdiction shall not affect the validity or enforceability of such provision in any other
jurisdiction, or affect any other provision of this Warrant, which shall remain in full force and
effect.
17. REGISTRATION RIGHTS. The holder of this Warrant and of the Exercise Shares shall
be entitled to the registration rights and other applicable rights with respect to the Exercise
Shares as and to the extent set forth in the Warrant Purchase Agreement and the Registration Rights
Agreement.
18. ENTIRE AGREEMENT. This Warrant constitutes the entire agreement between the
parties pertaining to the subject matter contained in it and supersedes all prior and
contemporaneous agreements, representations, and undertakings of the parties, whether oral or
written, with respect to such subject matter.
[Signature Page Follows]
IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized
officer as of December 1, 2006.
| ALEXZA PHARMACEUTICALS, INC. | ||||||
| By: | /s/ Xxxxxx X. Xxxx
|
|||||
| Name: | Xxxxxx X. Xxxx | |||||
| Title: | President and CEO | |||||
| Address: | 0000 Xxxx Xxxxxx Xxxxxx | |||
| Xxxx Xxxx, XX 00000 | ||||
| Attn: August X. Xxxxxxx | ||||
| Facsimile: (000) 000-0000 | ||||
| W/copy to: | Cooley Godward Kronish LLP | |||
| Five Palo Alto Square | ||||
| 0000 Xx Xxxxxx Xxxx | ||||
| Xxxx Xxxx, XX 00000-0000 | ||||
| Attn: Xxxxxxx X. Xxxxxx, Esq. | ||||
| Facsimile: (000) 000-0000 |
NOTICE OF EXERCISE
TO: ALEXZA PHARMACEUTICALS, INC.
(1) The undersigned hereby elects to (check one box only):
o purchase shares of the Common Stock of Alexza Pharmaceuticals, Inc. (the
“Company”) pursuant to the terms of the attached Warrant, and tenders herewith payment of
the exercise price in full for such shares.
o purchase the number of shares of Common Stock of the Company by cashless exercise pursuant
to the terms of the Warrant as shall be issuable upon cashless exercise of the portion of the
Warrant relating to shares.
(2) Please issue a certificate or certificates representing said shares of Common Stock in the
name of the undersigned or in such other name as is specified below:
(Name)
(Address)
(3) If the Warrant is not being exercised in full, please issue a certificate representing a
new Warrant evidencing the right of the Holder to purchase the balance of the Exercise Shares
purchasable under the Warrant, such certificate to be registered in the name of the undersigned or
in such other name as is specified below:
(Name)
(Address)
(4) The undersigned represents that (i) the aforesaid shares of Common Stock are being
acquired for the account of the undersigned not with a view to, or for resale in connection with,
the distribution thereof in violation of the Securities Act of 1933, as amended (the
“Securities Act”) and that the undersigned has no present intention of distributing or
reselling such shares in violation of the Securities Act; (ii) the undersigned is aware of the
Company’s business affairs and financial condition and has acquired sufficient information about
the Company to reach an informed and knowledgeable decision regarding its investment in the
Company; (iii) the undersigned is experienced in making investments of this type and has such
knowledge and background in financial and business matters that the undersigned is capable of
evaluating the merits and risks of this investment and protecting the undersigned’s own interests;
(iv) the
undersigned understands that the shares of Common Stock issuable upon exercise of this Warrant
must be held indefinitely unless subsequently registered under the Securities Act or an exemption
from such registration is available, and (v) the undersigned agrees not to make any disposition of
all or any part of the aforesaid shares of Common Stock unless and until there is then in effect a
registration statement under the Securities Act covering such proposed disposition and such
disposition is made in accordance with said registration statement, or the undersigned has provided
the Company with an opinion of counsel satisfactory to the Company, stating that such registration
is not required.
(Date)
|
(Signature) | |
| (Print Name) |
ASSIGNMENT FORM
(To assign the foregoing Warrant, subject to compliance with
Section 4.3 hereof, execute this form and supply required
information. Do not use this form to purchase shares.)
FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned
to
Name: |
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| (Please Print) |
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Address: |
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| (Please Print) |
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Dated: ____________________, 20__
Holder’s |
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Signature: |
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Holder’s |
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Address: |
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NOTE: The signature to this Assignment Form must correspond with the name as it appears on the
face of the Warrant, without alteration or enlargement or any change whatever. Officers of
corporations and those acting in a fiduciary or other representative capacity should file proper
evidence of authority to assign the foregoing Warrant.
