Exhibit 10.3

 

AMENDMENT NO. 1 TO

EXCHANGE AGREEMENT

 

This Amendment Number 1 (the “Amendment”) is made and entered into as of October
16, 2003, by and between NEKTAR THERAPEUTICS, a Delaware corporation (the
“Company”) and ALEXANDRA GLOBAL MASTER FUND LTD. (the “Holder”).

 

RECITALS

 

WHEREAS, the Company and the Holders entered into an Exchange Agreement dated
October 10, 2003 (the “Agreement”) pursuant to which the Holders shall exchange
and cancel an aggregate of $20,815,000 in principal of the Holders’ beneficial
interest in the Company’s 3.5% Convertible Subordinated Notes due 2007 (the
“Prior Notes”) in consideration for the issuance by the Company to the Holders
of $13,987,000 in principal of the Company’s 3% Convertible Subordinated Notes
due 2010 (the “New Notes”) (the “Exchange”); and

 

WHEREAS, the Company and the Holders desire to enter into this Amendment to
amend the Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the mutual agreements, covenants and
considerations contained herein, the receipt of which are hereby acknowledged,
the undersigned hereby agree as follows:

 

1.             SECTION 1.  Section 1 is hereby amended, restated and replaced
with the following:

 

1.1          Cancellation of Beneficial Interest in Prior Notes.  Upon and
subject to the terms of this Agreement, the Holder hereby agrees, at the Closing
(as defined below), to exchange, transfer, cancel and assign all of its right,
title, interest and beneficial interest in and to that portion of the Prior
Notes set forth opposite the name of such Holder on Appendix I to the Company in
exchange for the issuance of New Notes in the principal amount set forth
opposite the name of such Holder on Appendix I hereto which in the aggregate
amount as issued to the Holder shall equal $13,978,000.  After the cancellation,
the Holder shall have no further right, title, interest or beneficial interest
in the Prior Notes.

 

1.2          Purchase of New Notes.  Upon and subject to the terms of this
Agreement and in reliance of the representations and warranties set forth
herein, the Company hereby agrees to issue to the Holder, and the Holder agrees
to acquire from the Company, at the Closing, New Notes in the aggregate
principal amount of $13,978,000 in exchange for the cancellation of the Holder’s
beneficial interests in the Prior Notes as described in Section 1.1 above.

 

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2.             APPENDIX I.  Appendix I is hereby amended, restated and replaced
with the following:

 

APPENDIX I

 

HOLDER

 

PRIOR NOTES

 

NEW NOTES

Alexandra Global Master Fund Ltd.

 

$

20,815,000

 

$

13,978,000

TOTAL:

 

$

20,815,000

 

$

13,978,000

 

3.             COUNTERPARTS.  This Amendment may be executed in any number of
counterparts, each of which shall be an original, and all of which shall
constitute one instrument.

 

4.             FULL FORCE AND EFFECT.  The provisions of the Agreement shall
remain in full force and effect, except as set forth herein.

 

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IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT as of the
date set forth in the first paragraph hereof.

 

COMPANY:

 

NEKTAR THERAPEUTICS

 

 

Signature:

 

/s/ Ajit S. Gill

 

 

Ajit S. Gill

 

 

President, Chief Executive Officer and
Director

 

 

 

 

Address:

150 Industrial Road

 

 

San Carlos, CA 94070

 

 

 

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HOLDER:

 

ALEXANDRA GLOBAL MASTER FUND LTD.

 

By:

Alexandra Investment Management, LLC,
as Investment Advisor

 

 

Signature:

/s/ Mikhail Filimonov

 

 

Print Name:

Mikhail Filimonov

 

 

Title:

Chairman, CEO & Chief Investment Officer

 

 

Address:

 

c/o Alexandra Investment Management, LLC

767 Third Avenue 

39th Floor

New York, New York  10017

Facsimile No.:  (212) 301-1810

 

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