Document:

exv10w48

Exhibit 10.48

      

WARRANT PURCHASE AGREEMENT

between

ALEXZA PHARMACEUTICALS, INC.

and

SYMPHONY ALLEGRO HOLDINGS LLC

 

Dated as of June 15, 2009

 

      

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	Section 1.01 Definitions
	 	 	1	 
	 
	ARTICLE II PURCHASE AND SALE OF WARRANTS
	 	 	1	 
	 
	Section 2.01 Authorization to Issue Warrants
	 	 	1	 
	 
	Section 2.02 Purchase and Sale of Warrants
	 	 	2	 
	 
	Section 2.03 Warrant Date
	 	 	2	 
	 
	ARTICLE III CONDITIONS OF PURCHASE
	 	 	2	 
	 
	Section 3.01 Conditions Precedent to Each Party’s Obligations
	 	 	2	 
	 
	Section 3.02 Conditions Precedent to Holdings’ Obligations
	 	 	3	 
	 
	Section 3.03 Conditions Precedent to Alexza’s Obligations
	 	 	4	 
	 
	ARTICLE IV REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	5	 
	 
	Section 4.01 Representations, Warranties and Covenants of Holdings
	 	 	5	 
	 
	Section 4.02 Representations, Warranties and Covenants of Alexza
	 	 	7	 
	 
	ARTICLE V INDEMNITY
	 	 	9	 
	 
	Section 5.01 Indemnification
	 	 	9	 
	 
	Section 5.02 Notice of Claims
	 	 	10	 
	 
	Section 5.03 Defense of Proceedings
	 	 	10	 
	 
	Section 5.04 Settlement
	 	 	12	 
	 
	ARTICLE VI TRANSFER RESTRICTIONS
	 	 	12	 
	 
	Section 6.01 Transfer Restrictions
	 	 	12	 
	 
	Section 6.02 Legends
	 	 	13	 
	 
	Section 6.03 Warrant Legend Removal
	 	 	14	 
	 
	Section 6.04 Improper Transfer
	 	 	14	 
	 
	ARTICLE VII MISCELLANEOUS
	 	 	14	 
	 
	Section 7.01 Notice of Breach
	 	 	14	 
	 
	Section 7.02 Notices
	 	 	15	 
	 
	Section 7.03 Governing Law; Consent to Jurisdiction and Service of Process
	 	 	16	 
	 
	Section 7.04 Waiver of Jury Trial
	 	 	16	 
	 
	Section 7.05 Entire Agreement
	 	 	17	 
	 
	Section 7.06 Amendment and Waivers
	 	 	17	 

 

 

	 	 	 	 	 
	 	 	Page
	Section 7.07 Counterparts
	 	 	17	 
	 
	Section 7.08 Assignment and Successors
	 	 	17	 

	 	 	 
	Annex A

	 	Certain Definitions
	Exhibit A

	 	Form of opinion of Cooley Godward Kronish LLP
	Exhibit B

	 	Form of Warrant
	Exhibit C

	 	Warrant Conversion Example

 

 

WARRANT PURCHASE AGREEMENT

     This WARRANT PURCHASE AGREEMENT (this “Agreement”) is dated as of June 15, 2009, by
and between Alexza Pharmaceuticals, Inc., a Delaware corporation (“Alexza”), and SYMPHONY
ALLEGRO HOLDINGS LLC, a Delaware limited liability company (together with its permitted successors,
assigns and transferees, “Holdings”).

     WHEREAS, contemporaneously with the execution of this Agreement, Holdings, Alexza, and
Symphony Allegro, Inc., a Delaware corporation (“Symphony Allegro”) are entering into an
Amended and Restated Purchase Option Agreement (the “Purchase Option Agreement”) pursuant
to which, among other things, Holdings is granting to Alexza an option to purchase all of the
equity securities of Symphony Allegro (the “Symphony Allegro Equity Securities”) owned, or
hereafter acquired, by Holdings on the terms set forth in the Purchase Option Agreement (the
“Purchase Option”); and

     WHEREAS, in consideration for Holdings’ grant of the Purchase Option to Alexza, Alexza desires
to issue and sell to Holdings the Warrants described herein on the terms hereof.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
(the “Parties”) agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.01 Definitions. Capitalized terms used but not defined herein are used as
defined in Annex A hereto.

ARTICLE II

PURCHASE AND SALE OF WARRANTS

     Section 2.01 Authorization to Issue Warrants. Alexza has authorized the issuance of
certain warrants (the “Warrants”) representing the right to purchase 5,000,000 shares of
Alexza’s common stock (“Alexza Common Stock”), par value $0.0001 per share (such shares,
the “Warrant Shares”). The Warrants shall have a term of five (5) years and shall be
evidenced by certificates issued pursuant to this Agreement in the form set forth in Exhibit
B hereto, with such appropriate insertions, omissions, substitutions, and other variations as
are required or permitted by this Agreement. If, after the date hereof and prior to the Warrant
Date (as defined below), the number of outstanding shares of Alexza Common Stock has been
increased, decreased, changed into or exchanged for a different number or kind of shares or
securities as a result of a reorganization, recapitalization, stock dividend, stock split, reverse
stock split or other

 

 

similar change in capitalization, an appropriate and proportionate adjustment shall be made to
the number of Warrant Shares to be issuable upon exercise of the Warrant.

     Section 2.02 Purchase and Sale of Warrants. Alexza hereby agrees to issue to
Holdings, and Holdings hereby agrees to acquire from Alexza, the Warrants on the Purchase Option
Closing Date (hereinafter, the “Warrant Date”), subject to the fulfillment of the
conditions precedent described in Article III below.

     Section 2.03 Warrant Date. Subject to the terms and conditions of this Agreement, the
issuance, sale and purchase of the Warrants contemplated by this Agreement shall take place at a
closing on the Warrant Date (the “Warrant Closing”) to be held at the offices of Paul,
Weiss, Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, New York 10019, at
4:30 P.M., Eastern Time, following the satisfaction or waiver of all other conditions to the
obligations of the Parties set forth in Article III hereof, or at such other place or at
such other time or such other date as Holdings and Alexza shall mutually agree upon in writing.

ARTICLE III

CONDITIONS OF PURCHASE

     Section 3.01 Conditions Precedent to Each Party’s Obligations. The respective
obligations of Alexza and Holdings to effect the transactions contemplated hereby shall be subject
to the satisfaction of the conditions precedent contained in this Section 3.01 or the
waiver thereof in writing by Holdings and Alexza prior to or on the Warrant Date.

          (a) Approvals. All Governmental Approvals imposed by any Governmental Authority in
connection with the transactions contemplated by this Agreement and the other Operative Documents
required to be in effect prior to or on the Warrant Date shall be in effect, the failure of which
to be in effect would, either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect on either of the Parties.

          (b) Litigation. No Governmental Authority of competent jurisdiction shall have
enacted, issued, promulgated, enforced or entered any law or Governmental Order (whether temporary,
preliminary or permanent) that is in effect and restrains, enjoins or otherwise prohibits the
consummation of the transactions contemplated hereby or in the other Operative Documents.

          (c) Stockholder Approval. Alexza shall have received approval by Alexza’s
stockholders of the issuance of the Warrant Shares and any shares of Alexza Common Stock issuable
in connection with the exercise of the Purchase Option by Alexza under the Purchase Option
Agreement, which such approval shall satisfy the requirements of NASDAQ Marketplace Rule 5635.

2

 

     Section 3.02 Conditions Precedent to Holdings’ Obligations. The obligation of
Holdings to effect the transactions contemplated hereby shall be subject to the satisfaction of the
further conditions precedent contained in this Section 3.02, or the waiver thereof in
writing by Holdings, prior to or on the Warrant Date.

          (a) Authorization, Execution and Delivery of Documents. This Agreement and each of
the other Operative Documents (including all schedules, annexes and exhibits thereto) required to
be entered into on or prior to the Warrant Date shall have been duly authorized, executed and
delivered by each of the parties thereto (other than Holdings) and shall be in full force and
effect.

          (b) Issuance of Warrants. All actions required by any applicable law, or necessary in
the reasonable opinion of Holdings, to issue the Warrants shall have been duly taken by Alexza (or
provisions therefor shall have been made), including, without limitation, the making of all
registrations and filings required to be made prior to or on the Warrant Date, and all necessary
consents shall have been received.

          (c) Performance of Obligations by Alexza; Representations and Warranties. Alexza
shall have performed in all material respects and complied in all material respects with all
agreements and conditions contained in this Agreement and the other Operative Documents that are
required to be performed or complied with by it prior to or on the Warrant Date. Alexza’s
representations and warranties set forth in Section 4.02 of this Agreement shall be true
and correct in all respects as of the Warrant Date.

          (d) Opinion of Counsel. Holdings shall have received an opinion letter from Cooley
Godward Kronish LLP, counsel to Alexza, substantially in the form attached hereto as Exhibit
A.

          (e) Closing Certificate. At the Warrant Closing, Holdings shall have received a
certificate from Alexza executed by its Chief Financial Officer or other duly authorized executive
officer, dated as of the Warrant Date, in form and substance reasonably satisfactory to Holdings,
certifying:

               (i) (A) that the Operative Documents to which Alexza is a party have been duly authorized,
executed and delivered by Alexza, and are in full force and effect, and (B) that Alexza has
satisfied all conditions precedent contained in the Operative Documents to which it is a party
required to be satisfied by it on or prior to the Warrant Date; and

               (ii) as to (A) the accuracy and completeness of the contents of Alexza’s charter documents,
(B) the resolutions of Alexza’s board of directors, duly authorizing Alexza’s execution, delivery
and performance of each Operative Document to which it is or is to be a party and each other
document required to be executed and delivered by it in accordance with the provisions hereof or
thereof, and (C) the incumbency and signature of Alexza’s representatives authorized to execute and

3

 

deliver documents on its behalf in connection with the obligations contemplated hereby and by
the other Operative Documents.

          (f) Further Documents, Certificates, Etc. Holdings shall have received such other
documents, certificates or opinions as Holdings may reasonably request in connection with the
consummation of the transactions contemplated by this Agreement.

          (g) No Events of Default. No breach, default, event of default or other similar event
by Alexza, and no event which with the giving of notice, the passage of time, or both, would
constitute any of the foregoing, under any Operative Document or any other material contract or
agreement to which Alexza is a party, shall have occurred and be continuing, and no condition shall
exist that constitutes, or with the giving of notice, the passage of time, or both, would
constitute such default, event of default or other similar event.

          (h) No Violation. The transactions contemplated hereby shall comply with all
applicable law in effect as of the Warrant Date, and no party (other than Holdings) to such
transactions shall be in violation of any such applicable law. Holdings shall not be subject to
any penalty or liability pursuant to any violation of applicable law in effect as of such Warrant
Date by virtue of the transactions contemplated hereby and by each of the other Operative
Documents.

          (i) Change in Law. There shall have been no change in any law, rule or regulation or
the interpretation thereof (including any law, rule or regulation relating to taxes) that prohibits
or prevents the consummation of this Agreement or any of the transactions contemplated hereby
(including the sale and purchase of the Warrants) or by the Operative Documents or that results in
any material increase in taxes payable by Holdings or Investors.

     Section 3.03 Conditions Precedent to Alexza’s Obligations. The obligation of Alexza
to effect the transactions contemplated hereby shall be subject to the satisfaction of the further
conditions precedent contained in this Section 3.03, or the waiver thereof in writing by
Alexza, prior to or on the Warrant Date.

          (a) Prior Warrant Delivery. Holdings shall deliver to Alexza for cancellation all
warrants issued by Alexza to Holdings or any Affiliate of Holdings under that certain Warrant
Purchase Agreement, dated December 1, 2006, between Alexza and Holdings, or upon the transfer of
any warrants so issued.

          (b) Authorization, Execution and Delivery of Documents. This Agreement and each of
the other Operative Documents (including all schedules and exhibits thereto) required to be entered
into on or prior to the Warrant Date shall have been duly authorized, executed and delivered by
each of the parties thereto (other than Alexza) and shall be in full force and effect.

4

 

          (c) Performance of Obligations by Holdings; Representations and Warranties. As of the
Warrant Date, Holdings shall have performed in all material respects and complied in all material
respects with all agreements and conditions contained in this Agreement and the other Operative
Documents required to be performed or complied with by it prior to or at the Warrant Date. Each of
Holdings’ representations and warranties set forth in Section 4.01 of this Agreement shall
be true and correct in all respects as of the Warrant Date with the same effect as though such
representations and warranties were made on and as of the Warrant Date (or if stated to have been
made as of an earlier date, as of such date).

          (d) No Events of Default. No breach, default, event of default or other similar event
by Holdings, and no event which with the giving of notice, the passage of time, or both, would
constitute any of the foregoing, under any Operative Document or any other material contract or
agreement to which Holdings is a party, shall have occurred and be continuing, and no condition
shall exist that constitutes, or with the giving of notice, the passage of time, or both, would
constitute such default, event of default or other similar event.

          (e) No Violation. The transactions contemplated hereby shall comply in all material
respects with all applicable law in effect as of the Warrant Date, and no party (other than Alexza)
to such transactions shall be in material violation of any such applicable law. Alexza shall not
be subject to any penalty or liability pursuant to any violation of applicable law in effect as of
such Warrant Date by virtue of the transactions contemplated hereby and by each of the other
Operative Documents, the failure to comply with which would, either individually or in the
aggregate, reasonably be expected to have a material adverse effect on the Programs.

ARTICLE IV

REPRESENTATIONS, WARRANTIES AND COVENANTS

     Section 4.01 Representations, Warranties and Covenants of Holdings.

          (a) Holdings hereby represents and warrants to Alexza that:

               (i) Organization. Holdings is a limited liability company, duly formed, validly
existing and in good standing under the laws of the State of Delaware.

               (ii) Authority and Validity. Holdings has all requisite limited liability company
power and authority to execute, deliver and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby. The execution, delivery and performance by
Holdings of this Agreement and the consummation of the transactions contemplated hereby have been
duly and validly authorized by all necessary action required on the part of Holdings, and no other
proceedings on the part of Holdings are necessary to authorize this Agreement or for Holdings to
perform its obligations under this Agreement. This Agreement constitutes

5

 

the lawful, valid and legally binding obligation of Holdings, enforceable in accordance with
its terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and general
equitable principles regardless of whether such enforceability is considered in a proceeding at law
or in equity.

               (iii) No Violation or Conflict. The execution, delivery and performance of this
Agreement and the transactions contemplated hereby do not (A) violate, conflict with or result in
the breach of any provision of the Organizational Documents of Holdings, (B) conflict with or
violate any law or Governmental Order applicable to Holdings or any of its assets, properties or
businesses, or (C) conflict with, result in any breach of, constitute a default (or event that with
the giving of notice or lapse of time, or both, would become a default) under, require any consent
under, or give to others any rights of termination, amendment, acceleration, suspension, revocation
or cancellation of, or result in the creation of any Encumbrance on any of the assets or properties
of Holdings, pursuant to, any note, bond, mortgage or indenture, contract, agreement, lease,
sublease, license, permit, franchise or other instrument or arrangement to which Holdings is a
party except, in the case of clauses (B) and (C), to the extent that such
conflicts, breaches, defaults or other matters would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect on Holdings.

               (iv) Governmental Consents and Approvals. Other than any HSR Filings which, if such
HSR Filings are required, will be obtained on or prior to the Warrant Date, the execution, delivery
and performance of this Agreement by Holdings do not, and the consummation of the transactions
contemplated hereby do not and will not, require any Governmental Approval which has not already
been obtained, effected or provided, except with respect to which the failure to so obtain, effect
or provide would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on Holdings.

               (v) Litigation. There are no actions by or against Holdings pending before any
Governmental Authority or, to the knowledge of Holdings, threatened to be brought by or before any
Governmental Authority, that would, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect on Holdings. There are no pending or, to the knowledge of Holdings,
threatened actions to which Holdings is a party (or threatened to be named as a party) to set
aside, restrain, enjoin or prevent the execution, delivery or performance of this Agreement or the
Operative Documents or the consummation of the transactions contemplated hereby or thereby by any
party hereto or thereto. Holdings is not subject to any Governmental Order (nor, to the knowledge
of Holdings, is there any such Governmental Order threatened to be imposed by any Governmental
Authority) that would, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on Holdings.

               (vi) Accredited Investor.

                    (A) Holdings is and will remain at all relevant times an “Accredited Investor”.

6

 

                    (B) Holdings has relied completely on the advice of, or has consulted with or has had the
opportunity to consult with, its own personal tax, investment, legal or other advisors and has not
relied on Alexza or any of its Affiliates for advice. Holdings has reviewed the Investment
Overview and is aware of the risks disclosed therein. Holdings acknowledges that it has had a
reasonable opportunity to conduct its own due diligence with respect to the Products, the Programs,
Symphony Allegro, Alexza and the transactions contemplated by the Operative Documents.

                    (C) Holdings has been advised and understands that the offer and sale of the Warrants and the
Warrant Shares have not been registered under the Securities Act. Holdings is able to bear the
economic risk of such investment for an indefinite period and to afford a complete loss thereof.

                    (D) Holdings is acquiring the Warrants and the Warrant Shares solely for Holdings’ own account
for investment purposes as a principal and not with a view to the resale of all or any part
thereof; provided, that Holdings may transfer the Warrants as set forth in Section 6.01
hereof. Holdings agrees that the Warrants and the Warrant Shares may not be resold (1) without
registration thereof under the Securities Act (unless an exemption from such registration is
available), or (2) in violation of any law. Holdings is not and will not be an underwriter within
the meaning of Section 2(11) of the Securities Act with respect to the Warrants and the Warrant
Shares.

                    (E) No person or entity acting on behalf of, or under the authority of, Holdings is or will be
entitled to any broker’s, finder’s, or similar fees or commission payable by Alexza or any of its
Affiliates.

                    (F) Holdings acknowledges and agrees to treat the Warrants for federal, state and local income
tax purposes as option premium paid in return for the grant, maintenance and exercise of the
Purchase Option.

     Section 4.02 Representations, Warranties and Covenants of Alexza.

          (a) Alexza hereby represents and warrants to Holdings that:

               (i) Organization. Alexza is a corporation, duly organized, validly existing and in
good standing under the laws of the State of Delaware.

               (ii) Authority and Validity. Alexza has all requisite corporate power and authority
to execute, deliver and perform its obligations under this Agreement and to consummate the
transactions contemplated hereby. The execution, delivery and performance by Alexza of this
Agreement and the consummation of the transactions contemplated hereby have been duly and validly
authorized by all necessary action required on the part of Alexza, and, other than the Stockholder
Approval, no other proceedings on the part of Alexza are necessary to authorize this Agreement or
for Alexza to perform its obligations under this Agreement. This Agreement constitutes the

7

 

lawful, valid and legally binding obligation of Alexza, enforceable in accordance with its
terms, except as the same may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and general
equitable principles regardless of whether such enforceability is considered in a proceeding at law
or in equity.

               (iii) No Violation or Conflict. The execution, delivery and performance of this
Agreement and the transactions contemplated hereby do not (A) violate, conflict with or result in
the breach of any provision of the Organizational Documents of Alexza, (B) conflict with or violate
any law or Governmental Order applicable to Alexza or any of its assets, properties or businesses,
or (C) conflict with, result in any breach of, constitute a default (or event that with the giving
of notice or lapse of time, or both, would become a default) under, require any consent under, or
give to others any rights of termination, amendment, acceleration, suspension, revocation or
cancellation of, or result in the creation of any Encumbrance on any of the assets or properties of
Alexza, pursuant to, any note, bond, mortgage or indenture, contract, agreement, lease, sublease,
license, permit, franchise or other instrument or arrangement to which Alexza is a party except, in
the case of clauses (B) and (C), to the extent that such conflicts, breaches,
defaults or other matters would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect on Alexza.

               (iv) Governmental Consents and Approvals. Other than any HSR Filings which, if such
HSR Filings are required, will be obtained on or prior to the Warrant Date, the execution, delivery
and performance of this Agreement by Alexza do not, and the consummation of the transactions
contemplated hereby do not and will not, require any Governmental Approval which has not already
been obtained, effected or provided, except with respect to which the failure to so obtain, effect
or provide would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect on Alexza.

               (v) Litigation. Except as disclosed in any Alexza Public Filings available as of the
date hereof, there are no actions by or against Alexza pending before any Governmental Authority
or, to the knowledge of Alexza, threatened to be brought by or before any Governmental Authority,
that would, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect on Alexza. There are no pending or, to the knowledge of Alexza, threatened actions, to
which Alexza is a party (or is threatened to be named as a party) to set aside, restrain, enjoin or
prevent the execution, delivery or performance of this Agreement or the Operative Documents or the
consummation of the transactions contemplated hereby or thereby by any party hereto or thereto.
Alexza is not subject to any Governmental Order (nor, to the knowledge of Alexza, is there any such
Governmental Order threatened to be imposed by any Governmental Authority) that would, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect on Alexza.

               (vi) Private Placement. Assuming the accuracy of Holdings’ representations and
warranties set forth in Section 4.01, (i) the purchase and sale of the Warrants is exempt
from the registration requirements of the Securities Act,

8

 

and (ii) no other offering of Common Stock by Alexza (other than the issuance of the Alexza
Closing Shares) will be integrated with the offering of the Warrants or the Warrant Shares.
Neither Alexza nor any Person acting on its behalf has or will offer the Warrants or the Warrant
Shares by any form of general solicitation or general advertising and all filings required under
Rule 503 of the Securities Act will be made in a timely manner.

          (b) Alexza covenants and agrees with Holdings that, so long as any of the Warrants are
outstanding (including as such Warrants may be reissued pursuant to transfer in accordance with
Section 6.01 hereof), Alexza shall take all action necessary to reserve and keep available
out of its authorized and unissued Alexza Common Stock, solely for the purpose of effecting the
exercise of the Warrants, 100% of the number of shares of Alexza Common Stock issuable upon
exercise of the Warrants. Upon exercise in accordance with the Warrants, the Alexza Common Stock
delivered thereby will be validly issued, fully paid and nonassessable and free from all taxes,
liens and charges with respect to the issue thereof, with the holders being entitled to all rights
accorded to a holder of the Alexza Common Stock.

          (c) Alexza acknowledges and agrees to treat the Warrants for federal, state and local income
tax purposes as option premium paid in return for the grant of the Purchase Option.

ARTICLE V

INDEMNITY

     Section 5.01 Indemnification. To the greatest extent permitted by applicable law,
Alexza shall indemnify and hold harmless Holdings, and Holdings shall indemnify and hold harmless
Alexza, and each of their respective Affiliates, officers, directors, employees, agents, partners,
members, successors, assigns, representatives of, and each Person, if any (including any officers,
directors, employees, agents, partners, members of such Person) who controls, Holdings and Alexza,
as applicable, within the meaning of the Securities Act or the Exchange Act, (each, an
“Indemnified Party”), from and against any and all actions, causes of action, suits,
claims, losses, costs, interest, fees, liabilities and damages, and expenses in connection
therewith (irrespective of whether any such Indemnified Party is a party to the action for which
indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements
(hereinafter, a “Loss”), incurred by any Indemnified Party to the extent resulting from,
arising out of or relating to: (i) in the case of Alexza being the Indemnifying Party, (A) any
breach of any representation or warranty made by Alexza herein, (B) any breach of any covenant,
agreement or obligation of Alexza contained herein, or (C) any untrue statement of a material fact
about Alexza contained in the reports filed by Alexza with the SEC, or the omission therefrom of a
material fact about Alexza required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading, to
the extent that such reports are attached to the Investment Overview; provided, that the
information contained in a later filed report filed prior to the date of this Agreement shall be
deemed to update any related information

9

 

contained in a previously filed report (the items set forth herein in clauses (A),
(B) and (C) being hereinafter referred to as the “Holdings Claims”), and
(ii) in the case of Holdings being the Indemnifying Party, (x) any breach of any representation or
warranty made by Holdings herein, (y) any breach of any covenant, agreement or obligation of
Holdings contained herein, or (z) any untrue statement or alleged untrue statement of a material
fact about Holdings contained in the Investment Overview or the omission or alleged omission
therefrom of a material fact about Holdings required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made, not
misleading, (the items set forth herein in clauses (x), (y) and (z) being
hereinafter referred to as the “Alexza Claims”). To the extent that the foregoing
undertaking by Alexza or Holdings may be unenforceable for any reason, such Party shall make the
maximum contribution to the payment and satisfaction of any Loss that is permissible under
applicable law.

     Section 5.02 Notice of Claims. Any Indemnified Party that proposes to assert a right
to be indemnified under this Article V shall notify Alexza or Holdings, as applicable (the
“Indemnifying Party”), promptly after receipt of notice of commencement of any action, suit
or proceeding against such Indemnified Party (an “Indemnified Proceeding”) in respect of
which a claim is to be made under this Article V, or the incurrence or realization of any
Loss in respect of which a claim is to be made under this Article V, of the commencement of
such Indemnified Proceeding or of such incurrence or realization, enclosing a copy of all relevant
documents, including all papers served and claims made, but the omission to so notify the
applicable Indemnifying Party promptly of any such Indemnified Proceeding or incurrence or
realization shall not relieve (x) such Indemnifying Party from any liability that it may have to
such Indemnified Party under this Article V or otherwise, except, as to such Indemnifying
Party’s liability under this Article V, to the extent, but only to the extent, that such
Indemnifying Party shall have been prejudiced by such omission, or (y) any other indemnitor from
liability that it may have to any Indemnified Party.

     Section 5.03 Defense of Proceedings. In case any Indemnified Proceeding shall be
brought against any Indemnified Party, it shall notify the applicable Indemnifying Party of the
commencement thereof as provided in Section 5.02, and such Indemnifying Party shall be
entitled to participate in, and provided such Indemnified Proceeding involves a claim
solely for money damages and does not seek an injunction or other equitable relief against the
Indemnified Party and is not a criminal or regulatory action, to assume the defense of, such
Indemnified Proceeding with counsel reasonably satisfactory to such Indemnified Party. After
notice from such Indemnifying Party to such Indemnified Party of such Indemnifying Party’s election
to so assume the defense thereof and the failure by such Indemnified Party to object to such
counsel within ten (10) Business Days following its receipt of such notice, such Indemnifying Party
shall not be liable to such Indemnified Party for legal or other expenses related to such
Indemnified Proceedings incurred after such notice of election to assume such defense except as
provided below and except for the reasonable costs of investigating, monitoring or cooperating in
such defense subsequently incurred by such Indemnified Party reasonably necessary in connection
with the defense thereof. Such Indemnified Party

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shall have the right to employ its counsel in any such Indemnified Proceeding, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Party unless:

               (i) the employment of counsel by such Indemnified Party at the expense of the applicable
Indemnifying Party has been authorized in writing by such Indemnifying Party;

               (ii) such Indemnified Party shall have reasonably concluded in its good faith (which
conclusion shall be determinative unless a court determines that such conclusion was not reached
reasonably and in good faith) that there is or may be a conflict of interest between the applicable
Indemnifying Party and such Indemnified Party in the conduct of the defense of such Indemnified
Proceeding or that there are or may be one or more different or additional defenses, claims,
counterclaims, or causes of action available to such Indemnified Party (it being agreed that in any
case referred to in this clause (ii) such Indemnifying Party shall not have the right to
direct the defense of such Indemnified Proceeding on behalf of the Indemnified Party);

               (iii) the applicable Indemnifying Party shall not have employed counsel reasonably acceptable
to the Indemnified Party, to assume the defense of such Indemnified Proceeding within a reasonable
time after notice of the commencement thereof; provided, however, that (A) this
clause (iii) shall not be deemed to constitute a waiver of any conflict of interest that
may arise with respect to any such counsel, and (B) an Indemnified Party may not invoke this
clause (iii) if such Indemnified Party failed to timely object to such counsel pursuant to
the first paragraph of this Section 5.03 above (it being agreed that in any case referred
to in this clause (iii) such Indemnifying Party shall not have the right to direct the
defense of such Indemnified Proceeding on behalf of the Indemnified Party); or

               (iv) any counsel employed by the applicable Indemnifying Party shall fail to timely commence
or diligently conduct the defense of such Indemnified Proceeding and such failure has prejudiced
(or is in immediate danger of prejudicing) the outcome of such Indemnified Proceeding (it being
agreed that in any case referred to in this clause (iv) such Indemnifying Party shall not
have the right to direct the defense of such Indemnified Proceeding on behalf of the Indemnified
Party);

in each of which cases the reasonable fees and expenses of counsel for such Indemnified Party shall
be at the expense of such Indemnifying Party. Only one counsel shall be retained by all
Indemnified Parties with respect to any Indemnified Proceeding, unless counsel for any Indemnified
Party reasonably concludes in good faith (which conclusion shall be determinative unless a court
determines that such conclusion was not reached reasonably and in good faith) that there is or may
be a conflict of interest between such Indemnified Party and one or more other Indemnified Parties
in the conduct of the defense of such Indemnified Proceeding or that there are or may be one or
more different or additional defenses, claims, counterclaims, or causes or action available to such
Indemnified Party.

11

 

     Section 5.04 Settlement. Without the prior written consent of such Indemnified Party,
such Indemnifying Party shall not settle or compromise, or consent to the entry of any judgment in,
any pending or threatened Indemnified Proceeding, unless such settlement, compromise, consent or
related judgment (i) includes an unconditional release of such Indemnified Party from all liability
for Losses arising out of such claim, action, investigation, suit or other legal proceeding, (ii)
provides for the payment of money damages as the sole relief for the claimant (whether at law or in
equity), (iii) involves no admission of fact adverse to the Indemnified Party or finding or
admission of any violation of law or the rights of any Person by the Indemnified Party, and (iv) is
not in the nature of a criminal or regulatory action. No Indemnified Party shall settle or
compromise, or consent to the entry of any judgment in, any pending or threatened Indemnified
Proceeding (A) in respect of which any payment would result hereunder or under, (B) which includes
an injunction that will materially adversely affect any Indemnifying Party, (C) which involves an
admission of fact adverse to the Indemnifying Party or a finding or admission of any violation of
law or the rights of any Person by the Indemnifying Party, or (D) which is in the nature of a
criminal or regulatory action, without the prior written consent of the Indemnifying Party, such
consent not to be unreasonably conditioned, withheld or delayed.

ARTICLE VI

TRANSFER RESTRICTIONS

     Section 6.01 Transfer Restrictions. Holdings agrees (and agrees to cause all of its
members and any subsequent transferees thereof to so agree) that (i) except as specifically set
forth in the proviso immediately below, it will not, directly or indirectly, offer, sell, assign,
transfer, distribute, grant or sell a participation in, pledge or otherwise dispose of any Warrants
or Warrant Shares or solicit any offers to buy or otherwise acquire, or take a pledge of, any
Warrants (collectively, “Transfer”) unless such Warrants or Warrant Shares are registered
and/or qualified under the Securities Act and applicable state securities laws, or unless an
exemption from the registration or qualification requirements is otherwise available;
provided, that, prior to such registration or qualification, (x) Holdings may
Transfer Warrants or Warrant Shares to Investors, RRD and each Symphony Fund, (y) Investors may
Transfer Warrants or Warrant Shares to its members, and (z) SCP may, in a single distribution,
further Transfer Warrants or Warrant Shares to its limited partners, but in no event shall any of
RRD, the members of Investors (other than SCP) or SCP’s limited partners further Transfer such
Warrants or Warrant Shares prior to their registration or qualification (unless in accordance with
clauses (x), (y) or (z)); (ii) (A) no Transfer of such Warrants, or (B)
with respect to a private placement of the Warrant Shares, no Transfer of such Warrant Shares,
shall be effective or recognized unless the transferor and the transferee make the representations
and agreements contained herein and furnish to Alexza such certifications and other information as
Alexza may reasonably request to confirm that any proposed transfer complies with the restrictions
set forth herein and any applicable laws; and (iii) (1) except with respect to a Transfer made
pursuant to the proviso in clause (i) above, Warrants may only be transferred in minimum
denominations of Warrants representing the right to

12

 

purchase at least 30,000 Warrant Shares, and (2) prior to the registration of Warrant Shares
as contemplated in the Registration Rights Agreement, the Warrant Shares may only be transferred in
minimum denominations of at least 30,000 Warrant Shares (other than a Transfer following a
Transaction Event); provided, however, that in the event that any holder of any
Warrants or Warrant Shares holds Warrants representing the right to purchase less than
30,000 Warrant Shares, or holds less than 30,000 Warrant Shares, as the case may be, such holder
shall be entitled to exercise all, but not less than all, such Warrants and sell all, but not less
than all, such Warrant Shares delivered to it in connection therewith, notwithstanding the fact
that the number of such Warrant Shares is less than 30,000; provided, further, that
Holdings agrees (and agrees to cause its members and any subsequent transferees thereof to so
agree), that with respect to the Warrants, such holder of Warrants will not sell or otherwise
transfer any Warrants, except in private placements to Accredited Investors or as otherwise
permitted hereunder. Notwithstanding anything to the contrary contained herein, it is understood
and agreed that Holdings (and its Affiliates) and any transferees thereof shall be entitled to
immediately exercise all or any portion of its Warrants and Transfer such Warrant Shares without
regard to the minimum share limitations hereunder at any time after a Transaction Event;
provided, however, that following the public announcement by Alexza that the
proposed transaction has been terminated in accordance with its terms, holders of Warrant Shares
shall be subject to the share limitations hereunder.

     Section 6.02 Legends.

          (a) Holdings acknowledges and agrees that Alexza shall affix to each certificate evidencing
outstanding Warrants (and any certificates issued upon the transfer of the Warrants) a legend in
substantially the following form (a “Warrant Legend”):

“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.

13

 

THE WARRANT EVIDENCED BY THIS CERTIFICATE IS SUBJECT TO CERTAIN
RESTRICTIONS ON TRANSFER AS SET FORTH IN THE WARRANT PURCHASE
AGREEMENT, DATED AS OF JUNE 15, 2009, 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.”

     Section 6.03 Warrant Legend Removal. If the certificates representing such Warrants,
include a Warrant Legend (as set forth in Section 6.02 hereof), Alexza shall, upon a
request from Holdings, or a member or subsequent transferee thereof, 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 Warrants cease to be restricted securities, the securities law portion of the Warrant Legend
and/or (ii) in the event of a sale of the Warrants in compliance with the transfer restrictions,
the transfer restriction portion of the Warrant Legend, from such certificates representing the
Warrants as Holdings, or such member or transferee, shall designate, in accordance with the terms
hereof and, if applicable, in accordance with the terms of the applicable Warrant.

     Section 6.04 Improper Transfer. Any attempt to sell, assign, transfer, grant or sell
a participation in, pledge or otherwise dispose of any Warrants or any Warrant Shares, not in
compliance with this Agreement shall be null and void and Alexza, and such transfer agent as Alexza
may employ, shall give no effect to, and shall not register or record a transfer pursuant to, such
attempted sale, assignment, transfer, grant, sale of a participation, pledge or other disposition
that is not made in accordance with the terms of this Agreement.

ARTICLE VII

MISCELLANEOUS

     Section 7.01 Notice of Breach. Each Party covenants and agrees that, upon its
acquiring Knowledge of any breach by it of any representation, warranty, covenant or any other term
or condition of this Agreement or acquiring Knowledge of a material event or development that is,
or is reasonably expected to be, adverse to the other Party with respect to any Program or the
transactions contemplated hereby, such Party shall promptly notify the other Party in writing
within three (3) Business Days of acquiring such Knowledge; provided, that the failure to
provide such notice shall not impair or otherwise be deemed a waiver of any rights any Party may
have arising from such breach, material event or development and that notice under this Section
7.01 shall not in itself constitute notice of any breach, unless explicitly stated in such
notice.

14

 

     Section 7.02 Notices. Any notice, request, demand, waiver, consent, approval or other
communication which is required or permitted to be given to any Party shall be in writing addressed
to the Party at its address set forth below and shall be deemed given (i) when delivered to the
Party personally, (ii) if sent to the Party by facsimile transmission (promptly followed by a
hard-copy delivered in accordance with this Section 7.02), when the transmitting Party
obtains written proof of transmission and receipt; provided, however, that notwithstanding the
foregoing, any communication sent by facsimile transmission after 5:00 PM (receiving Party’s time)
or not on a Business Day shall not be deemed received until the next Business Day, (iii) when
delivered by next Business Day delivery by a nationally recognized courier service, or (iv) if sent
by registered or certified mail, when received, provided postage and registration or certification
fees are prepaid and delivery is confirmed by a return receipt:

     Alexza:

Alexza Pharmaceuticals, Inc.

2091 Stierlin Court

Mountain View, CA 94043

Attn: August J. Moretti

Facsimile: (650) 944-7999

     with a copy to:

Cooley Godward Kronish LLP

380 Interlocken Crescent

Suite 900

Broomfield, CO 80021

Attn: Brent D. Fassett, Esq.

Facsimile: (720) 566-4099

     Holdings:

Symphony Allegro Holdings LLC

7361 Calhoun Place, Suite 325

Rockville, MD 20855

Attn: Robert L. Smith, Jr.

Facsimile: (301) 762-6154

     with a copy to:

Symphony Capital Partners, L.P.

875 Third Avenue, 18th Floor

New York, NY 10022

Attn: Mark Kessel

Facsimile: (212) 632-5401

     and

15

 

Symphony Strategic Partners, LLC

875 Third Avenue, 18th Floor

New York, NY 10022

Attn: Mark Kessel

Facsimile: (212) 632-5401

or to such other address as such Party may from time to time specify by notice given in the manner
provided herein to each other Party entitled to receive notice hereunder.

     Section 7.03 Governing Law; Consent to Jurisdiction and Service of Process.

          (a) This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York; except to the extent that this Agreement pertains to the internal
governance of Alexza, and to such extent this Agreement shall be governed and construed in
accordance with the laws of the State of Delaware.

          (b) Each of the Parties hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court and any Delaware State court
or federal court of the United States of America sitting in The City of New York, Borough of
Manhattan or Wilmington, Delaware, and any appellate court from any jurisdiction thereof, in any
action or proceeding arising out of or relating to this Agreement, or for recognition or
enforcement of any judgment, and each of the Parties hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and determined in any such
New York State court, any such Delaware State court or, to the fullest extent permitted by law, in
such federal court. Each of the Parties agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect any right that any
Party may otherwise have to bring any action or proceeding relating to this Agreement.

          (c) Each of the Parties irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection that it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement in any New
York State or federal court, or any Delaware State or federal court. Each of the Parties hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court. Each of the parties hereby consent
to service of process by mail.

     Section 7.04 Waiver of Jury Trial. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT.

16

 

     Section 7.05 Entire Agreement. This Agreement (including any Annexes, Schedules,
Exhibits or other attachments here) constitutes the entire agreement between the Parties with
respect to the matters covered hereby and supersedes all prior and contemporaneous agreements,
correspondence, discussion and understandings with respect to such matters between the Parties,
excluding the Operative Documents.

     Section 7.06 Amendment and Waivers. The terms of this Agreement shall not be waived,
altered, modified, amended or supplemented in any manner whatsoever except by a written instrument
signed by each of the Parties. Any Party may waive, solely with respect to itself, any one or more
of its rights hereunder without the consent of any other Party hereto; provided, that no such
waiver shall be effective unless set forth in a written instrument executed by the Party hereto
against whom such waiver is to be effective.

     Section 7.07 Counterparts. This Agreement may be executed in one or more
counterparts, each of which, when executed, shall be deemed an original but all of which taken
together shall constitute one and the same Agreement.

     Section 7.08 Assignment and Successors. Except as otherwise permitted pursuant to
Article VI hereof, neither Alexza nor Holdings may Transfer, in whole or in part, any or
all of its rights or obligations hereunder to any Person (a “Transferee”) without the prior
written approval of the other Party; provided, however, that Alexza, without the
prior approval of the other Party, may make such Transfer to any Person which acquires all or
substantially all of Alexza’s assets or business (or assets or business related to the Programs) or
which is the surviving or resulting Person in a merger or consolidation with Alexza;
provided further, that in the event of any permitted Transfer by Holdings, Holdings
shall provide written notice to Alexza of any such Transfer not later than thirty (30) days after
such Transfer setting forth the identity and address of the Transferee and summarizing the terms of
the Transfer. In the event that the surviving or resulting “parent” entity (the “Surviving
Entity”) in a merger or acquisition involving Alexza is an entity other than Alexza, then
Holdings or any subsequent holder of a Warrant shall either exercise such Warrant (which will
become immediately exercisable upon a Transaction Event) or surrender such Warrant in exchange for
a new Warrant exercisable for shares of the common stock of the Surviving Entity (the
“Replacement Warrant”); provided, that:

               (i) if the terms of such merger or acquisition shall provide for consideration that consists
of a combination of cash and stock of the Surviving Entity, then any Replacement Warrant issued to
the holders of the Warrants shall be solely for 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 Alexza Common Stock was
instead paid only in stock of the Surviving Entity at the time of such change of control (as
illustrated on Exhibit C hereto), 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; and

17

 

               (ii) if prior to the end of the Term, such a merger or acquisition shall occur and the
consideration for such merger or acquisition shall be paid entirely in cash, then any holder of any
outstanding Warrant shall then have the option to elect within fifteen (15) Business Days of
receiving notice of the public announcement of the merger or acquisition by written notice of
election to Alexza, either (A) to retain such Warrant and the right to exercise such Warrant for
shares of Alexza Common Stock in accordance with the terms of such Warrant and this Agreement,
which exercise shall occur no later than immediately prior to the closing of such merger or
acquisition; or (B) to surrender such outstanding Warrant to Alexza in consideration of a cash
payment for each share of Alexza Common Stock subject to purchase under such Warrant in an amount
equal to 40% of the per share cash consideration to be received by a holder of one share of Alexza
Common Stock to be tendered in the merger or acquisition (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 Alexza pursuant to this Section 7.08(ii) shall be deemed an election
of clause (A) of this Section 7.08(ii).

Following a merger or acquisition involving the payment of non-cash consideration in which Alexza
is not the Surviving Entity, any reference to “Alexza Common Stock” shall be deemed instead
to refer to the common stock of the Surviving Entity. For purposes of this Section 7.08
“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 7.08 shall similarly apply to successive mergers, acquisitions, consolidations
or disposition of assets.

[SIGNATURES FOLLOW ON NEXT PAGE]

18

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective
officers or other representatives thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	ALEXZA PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/ Thomas B. King
 	 
	 	 	Name:  	Thomas B. King 	 
	 	 	Title:  	President and
Chief Executive Officer 	 
	 
	 	SYMPHONY ALLEGRO HOLDINGS LLC

 	 
	 	By:  	Symphony Capital Partners, L.P.,
 	 
	 	 	its Manager 	 
	 	 	 
	 	By:  	                                                  Symphony Capital GP, L.P.,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	                                                  Symphony GP, LLC,
 	 
	 	 	its General Partner 	 
	 	 	 
	 	By:  	                                                  /s/ Mark Kessel
 	 
	 	 	Name:  	Mark Kessel 	 
	 	 	Title:  	Managing Member 	 
	 

Signature Page to Warrant Purchase Agreement

 

 

ANNEX A

CERTAIN DEFINITIONS

     “$” means United States dollars.

     “Accredited Investor” has the meaning set forth in Rule 501(a) of Regulation D
promulgated under the Securities Act of 1933, as amended.

     “Act” means the Delaware Limited Liability Company Act, 6 Del. C. § 18-101 et seq.

     “Ad Hoc Meeting” has the meaning set forth in Paragraph 6 of Annex B of the Amended
and Restated Research and Development Agreement.

     “Additional Party” has the meaning set forth in Section 14 of the
Confidentiality Agreement.

     “Additional Regulatory Filings” means such Governmental Approvals as required to be
made under any law applicable to the purchase of the Symphony Allegro Equity Securities under the
Purchase Option Agreement.

     “Adjusted Capital Account Deficit” has the meaning set forth in Section 1.01
of the Holdings LLC Agreement.

     “Affected Member” has the meaning set forth in Section 27 of the Investors LLC
Agreement.

     “Affiliate” means, with respect to any Person (i) any Person directly or indirectly
controlling, controlled by or under common control with such Person, (ii) any officer, director,
general partner, member or trustee of such Person, or (iii) any Person who is an officer, director,
general partner, member or trustee of any Person described in clauses (i) or (ii)
of this sentence. For purposes of this definition, the terms “controlling,” “controlled by” or
“under common control with” shall mean the possession, direct or indirect, of the power to direct
or cause the direction of the management and policies of a Person or entity, whether through the
ownership of voting securities, by contract or otherwise, or the power to elect at least 50% of the
directors, managers, general partners, or persons exercising similar authority with respect to such
Person or entities.

     “Alexza” means Alexza Pharmaceuticals, Inc., a Delaware corporation.

     “Alexza Accounting Advisor” means Ernst & Young LLP.

     “Alexza Board” means the board of directors of Alexza.

     “Alexza Closing Shares” has the meaning set forth in Section 2(b) of the Purchase
Option Agreement.

A-1

 

     “Alexza Common Stock” means the common stock, par value $0.0001 per share, of Alexza.

     “Alexza Obligations” has the meaning set forth in Section 6.1(a) of the
Amended and Restated Research and Development Agreement.

     “Alexza Personnel” has the meaning set forth in Section 8.4 of the Amended and
Restated Research and Development Agreement.

     “Alexza Public Filings” means all publicly available filings made by Alexza with the
SEC.

     “Alexza Subcontractor” means a third party that has entered into a Subcontracting
Agreement with Alexza.

     “Allegro Relevant Infringement” means an infringement, misappropriation, illegal use
or misuse of the Licensed Patent Rights or other Licensed Intellectual Property due to the
manufacture, use, sale or importation of a pharmaceutical product or device that delivers
Alprazolam (provided that Alexza has not exercised a Discontinuation Option for the AZ-002 Program)
or Loxapine (provided that Alexza has not exercised a Discontinuation Option for the AZ-004
Program), as applicable.

     “Alprazolam” means: (a) alprazolam and (b) all salts, metabolites, prodrug and other
physical forms thereof.

     “Amended and Restated Research and Development Agreement” means the Amended and
Restated Research and Development Agreement dated as of the Original Closing Date, among Alexza,
Holdings and Symphony Allegro.

     “Asset Value” has the meaning set forth in Section 1.01 of the Holdings LLC
Agreement.

     “Auditors” means an independent certified public accounting firm of recognized
national standing.

     “AZ-002 Product” means a pharmaceutical product in which Alprazolam is the sole active
ingredient and it is delivered using Staccato Technology.

     “AZ-002 Program” means the development, manufacture and/or use of any AZ-002 Product
in accordance with the Development Plan.

     “AZ-004 Product” means a pharmaceutical product in which Loxapine is the sole active
ingredient and it is delivered using Staccato Technology.

     “AZ-004 Program” means the development, manufacture and/or use of any AZ-004 Product
in accordance with the Development Plan.

     “Bankruptcy Code” means the United States Bankruptcy Code.

A-2

 

     “Business Day” means any day other than Saturday, Sunday or any other day on which
commercial banks in the City of New York or the City of San Francisco are authorized or required by
law to remain closed.

     “Capital Contributions” has the meaning set forth in Section 1.01 of the
Holdings LLC Agreement.

     “Capitalized Leases” means all leases that have been or should be, in accordance with
GAAP, recorded as capitalized leases.

     “Cash Available for Distribution” has the meaning set forth in Section 1.01 of
the Holdings LLC Agreement.

     “Chair” has the meaning set forth in Paragraph 4 of Annex B to the Amended and
Restated Research and Development Agreement.

     “Change of Control” means and includes the occurrence of any of the following events,
but specifically excludes (i) acquisitions of capital stock directly from Alexza for cash, whether
in a public or private offering, (ii) sales of capital stock by stockholders of Alexza, and
(iii) acquisitions of capital stock by or from any employee benefit plan or related trust:

     (a) the merger, reorganization or consolidation of Alexza into or with another corporation or
legal entity in which Alexza’s stockholders holding the right to vote with respect to matters
generally immediately preceding such merger, reorganization or consolidation, own less than fifty
percent (50%) of the voting securities of the surviving entity; or

     (b) the sale of all or substantially all of Alexza’s assets or business.

     “Class A Member” means a holder of a Class A Membership Interest.

     “Class A Membership Interest” means a Class A Membership Interest in Holdings.

     “Class B Member” means a holder of a Class B Membership Interest.

     “Class B Membership Interest” means a Class B Membership Interest in Holdings.

     “Class C Member” means a holder of a Class C Membership Interest.

     “Class C Membership Interest” means a Class C Membership Interest in Holdings.

     “Class D Member” means a holder of a Class D Membership Interest.

A-3

 

     “Class D Membership Interest” means a Class D Membership Interest in Holdings.

     “Client Schedules” has the meaning set forth in Section 5(b) of the RRD
Services Agreement.

     “Clinical Budget Component” has the meaning set forth in Section 4.1 of the
Amended and Restated Research and Development Agreement.

     “Clinical Trial Material” means Product and placebo for administration to animals for
pre-clinical testing or to humans for clinical testing.

     “CMC” means the chemistry, manufacturing and controls documentation as required for
filings with a Regulatory Authority relating to the manufacturing, production and testing of drug
products.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     “Committed Capital” means $50,000,000.00.

     “Common Stock” means the common stock, par value $0.01 per share, of Symphony Allegro.

     “Company Expenses” has the meaning set forth in Section 5.09 of the Holdings
LLC Agreement.

     “Company Property” has the meaning set forth in Section 1.01 of the Holdings
LLC Agreement.

     “Confidential Information” has the meaning set forth in Section 2 of the
Confidentiality Agreement.

     “Confidentiality Agreement” means the Confidentiality Agreement, dated as of the
Original Closing Date, among Symphony Allegro, Holdings, Alexza, SCP, SSP, Investors, Symphony
Capital and RRD, as such agreement may be amended or amended and restated from time to time.

     “Conflict Transaction” has the meaning set forth in Article X of the Symphony
Allegro Charter.

     “Control” means, with respect to any material, information or intellectual property
right, that a Party owns or has a license to such item or right, and has the ability to grant the
other Party access, a license or a sublicense (as applicable) in or to such item or right as
provided in the Operative Documents without violating the terms of any agreement or other
arrangement with any third party.

A-4

 

     “Corporate Governance Letter Agreement” has the meaning set forth in Section
2(e) of the Purchase Option Agreement.

     “Cross Program Expenses” are: (i) the Management Fee plus the Development Fee
pursuant to Section 6(a) of the RRD Services Agreement; (ii) actual expenses associated
with RRD carrying out its duties related to creating and maintaining the books of account, records,
financial statements and audit and tax preparation for Symphony Allegro pursuant to Section
5 of the RRD Services Agreement; and (iii) actual expenses for insurance procured for Symphony
Allegro pursuant to Section 1(a)(xi) of the RRD Services Agreement, reasonable legal
expenses incurred on behalf of Symphony Allegro, and travel and miscellaneous out of pocket
expenses of the Symphony Allegro Board, all as and to the extent reimbursable to RRD pursuant to
Section 6(b) of the RRD Services Agreement.

     “Current Products” has the meaning set forth in Section 5.1(g) of the Novated
and Restated Technology License Agreement.

     “Debt” of any Person means, without duplication:

     (a) all indebtedness of such Person for borrowed money,

     (b) all obligations of such Person for the deferred purchase price of property or services
(other than any portion of any trade payable obligation that shall not have remained unpaid for 91
days or more from the later of (A) the original due date of such portion and (B) the customary
payment date in the industry and relevant market for such portion),

     (c) all obligations of such Person evidenced by bonds, notes, debentures or other similar
instruments,

     (d) all obligations of such Person created or arising under any conditional sale or other
title retention agreement with respect to property acquired by such Person (whether or not the
rights and remedies of the seller or lender under such agreement in an event of default are limited
to repossession or sale of such property),

     (e) all Capitalized Leases to which such Person is a party,

     (f) all obligations, contingent or otherwise, of such Person under acceptance, letter of
credit or similar facilities,

     (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise acquire
for value any Equity Securities of such Person,

     (h) the net amount of all financial obligations of such Person in respect of Hedge Agreements,

     (i) the net amount of all other financial obligations of such Person under any contract or
other agreement to which such Person is a party,

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     (j) all Debt of other Persons of the type described in clauses (a) through (i)
above guaranteed, directly or indirectly, in any manner by such Person, or in effect guaranteed,
directly or indirectly, by such Person through an agreement (A) to pay or purchase such Debt or to
advance or supply funds for the payment or purchase of such Debt, (B) to purchase, sell or lease
(as lessee or lessor) property, or to purchase or sell services, primarily for the purpose of
enabling the debtor to make payment of such Debt or to assure the holder of such Debt against loss,
(C) to supply funds to or in any other manner invest in the debtor (including any agreement to pay
for property or services irrespective of whether such property is received or such services are
rendered) or (D) otherwise to assure a creditor against loss, and

     (k) all Debt of the type described in clauses (a) through (i) above secured by (or for which
the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any
Encumbrance on property (including accounts and contract rights) owned or held or used under lease
or license by such Person, even though such Person has not assumed or become liable for payment of
such Debt.

     “Development Budget” means the budget (comprised of the Management Budget Component
and the Clinical Budget Component) for the implementation of the Development Plan (the initial form
of which was agreed upon by Alexza and Symphony Allegro as of the Original Closing Date and
attached to the Amended and Restated Research and Development Agreement as Annex C thereto), as may
be further developed and revised from time to time in accordance with the Development Committee
Charter and the Amended and Restated Research and Development Agreement.

     “Development Committee” has the meaning set forth in Article 3 of the Amended and
Restated Research and Development Agreement.

     “Development Committee Charter” has the meaning set forth in Article 3 of the Amended
and Restated Research and Development Agreement.

     “Development Committee Member” has the meaning set forth in Paragraph 1 of Annex B to
the Amended and Restated Research and Development Agreement.

     “Development Plan” means the development plan covering all the Programs (the initial
form of which was agreed upon by Alexza and Symphony Allegro as of the Original Closing Date and
attached to the Amended and Restated Research and Development Agreement as Annex C thereto), as may
be further developed and revised from time to time in accordance with the Development Committee
Charter and the Amended and Restated Research and Development Agreement.

     “Development Product” means an AZ-002 Product or an AZ-004 Product that is
administered in a clinical trial performed pursuant to the Development Plan.

     “Development Services” has the meaning set forth in Section 1(b) of the RRD
Services Agreement.

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     “Development Subcontracting Agreement” means a Subcontracting Agreement that is
directly related to one or both of the Programs and is not a Manufacturing Subcontracting
Agreement.

     “Director(s)” means the Persons identified as such in the Preliminary Statement of the
Indemnification Agreement (including such Persons as may become parties thereto after the date
thereof).

     “Disclosing Party” has the meaning set forth in Section 4 of the
Confidentiality Agreement.

     “Discontinuation Option” has the meaning set forth in Section 11(a) of the
Amended and Restated Research and Development Agreement.

     “Discontinuation Option Closing Date” means the date of expiration of the
Discontinuation Option pursuant to Section 11(a) of the Amended and Restated Research and
Development Agreement.

     “Discontinuation Price” has the meaning set forth in Section 11(a) of the
Amended and Restated Research and Development Agreement.

     “Discontinued Program” has the meaning set forth in Section 2.10 of the
Novated and Restated Technology License Agreement.

     “Disinterested Directors” has the meaning set forth in Article IX of the
Symphony Allegro Charter.

     “Distribution” has the meaning set forth in Section 1.01 of the Holdings LLC
Agreement.

     “Drug Master Files” means all Regulatory Files with respect to the manufacture or
design of a Product, including without limitation drug master files, design history files and
similar files.

     “Effective Registration Date” has the meaning set forth in Section 1(b) of the
Registration Rights Agreement.

     “Encumbrance” means (i) any security interest, pledge, mortgage, lien (statutory or
other), charge or option to purchase, lease or otherwise acquire any interest, (ii) any adverse
claim, restriction, covenant, title defect, hypothecation, assignment, deposit arrangement, license
or other encumbrance of any kind, preference or priority, or (iii) any other security agreement or
preferential arrangement of any kind or nature whatsoever (including, without limitation, any
conditional sale or other title retention agreement).

     “Equity Securities” means, with respect to any Person, shares of capital stock of (or
other ownership or profit interests in) such Person, warrants, options or other rights for the
purchase or other acquisition from such Person of shares of capital stock of

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(or other ownership or profit interests in) such Person, securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person
or warrants, rights or options for the purchase or other acquisition from such Person of such
shares (or such other interests), and other ownership or profit interests in such Person
(including, without limitation, partnership, member or trust interests therein), whether voting or
nonvoting, and whether or not such shares, warrants, options, rights or other interests are
authorized or otherwise existing on any date of determination.

     “ERISA” means the United States Employee Retirement Income Security Act of 1974, as
amended.

     “Excepted Debt” has the meaning set forth in Section 5(c)(iii) of the Purchase
Option Agreement.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

     “Existing Confidentiality Agreement” has the meaning set forth in Section 2(a)
of the Confidentiality Agreement.

     “Exiting Product” means, with respect to a particular Program, any Development Product
that was administered in a clinical trial pursuant to the Development Plan at any time prior to (a)
the termination of the Discontinuation Option with respect to such Program without exercise by
Licensor or (b) the expiration or termination of the Purchase Option without exercise by Licensor,
whichever comes first.

     “Extension Funding” has the meaning set forth in Section 2 of the Research
Cost Sharing and Extension Agreement.

     “External Directors” means, at any time, up to two (2) Persons elected to the Symphony
Allegro Board after the Original Closing Date (who shall be neither employees of Symphony Capital
nor of Alexza) in accordance with the Symphony Allegro Charter, the Symphony Allegro By-laws and
Section 4(b)(iv) of the Purchase Option Agreement.

     “FDA” means the United States Food and Drug Administration or its successor agency in
the United States.

     “FDA Sponsor” has the meaning set forth in Section 5.1 of the Amended and
Restated Research and Development Agreement.

     “Financial Audits” has the meaning set forth in Section 6.7 of the Amended and
Restated Research and Development Agreement.

     “Financing” has the meaning set forth in the Preliminary Statement of the Purchase
Option Agreement.

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     “Fiscal Year” has the meaning set forth in each Operative Document in which it
appears.

     “Form S-3” means the Registration Statement on Form S-3 as defined under the
Securities Act.

     “FTE” means the time and effort of one or more qualified scientists working on the
AZ-002 Program or the AZ-004 Program that is equivalent to 1850 hours per year devoted exclusively
to the Programs by one (1) full-time employee. The portion of an FTE year devoted by any one
scientist to the Programs shall be determined by dividing the number of hours during any twelve
(12) month period devoted by such scientist to one or both Programs by 1850 hours, not to exceed
1.0 in any case.

     “GAAP” means generally accepted accounting principles in effect in the United States
of America from time to time.

     “Governmental Approvals” means authorizations, consents, orders, declarations or
approvals of, or filings with, or terminations or expirations of waiting periods imposed by any
Governmental Authority.

     “Governmental Authority” means any United States or non-United States federal,
national, supranational, state, provincial, local, or similar government, governmental, regulatory
or administrative authority, agency or commission or any court, tribunal, or judicial or arbitral
body.

     “Governmental Order” means any order, writ, judgment, injunction, decree, stipulation,
determination or award entered by or with any Governmental Authority.

     “Hedge Agreement” means any interest rate swap, cap or collar agreement, interest rate
future or option contract, currency swap agreement, currency future or option contract or other
similar hedging agreement.

     “Holdings” means Symphony Allegro Holdings LLC, a Delaware limited liability company.

     “Holdings Claims” has the meaning set forth in Section 5.01 of the Warrant
Purchase Agreement.

     “Holdings LLC Agreement” means the Amended and Restated Limited Liability Company
Agreement of Holdings dated as of the Original Closing Date.

     “HSR Filings” means the pre-merger notification and report forms required under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

     “IND” means an Investigational New Drug Application, as described in 21 U.S.C.
§ 355(i)(1) and 21 C.F.R. § 312 in the regulations promulgated by the United States Food and Drug
Administration, or any foreign equivalent thereof.

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     “Indemnification Agreement” means the Indemnification Agreement among Symphony Allegro
and the Directors named therein, dated as of the Original Closing Date, as such agreement may be
amended or amended and restated from time to time.

     “Indemnified Party” has the meaning set forth in each Operative Document in which it
appears.

     “Indemnified Proceeding” has the meaning set forth in each Operative Document in which
it appears.

     “Indemnifying Party” has the meaning set forth in each Operative Document in which it
appears.

     “IND-Enabling GLP Inhalation Toxicology Studies” means the pharmacokinetic and
toxicology studies required for filing an IND.

     “Initial Development Budget” means the initial development budget prepared by
representatives of Symphony Allegro and Alexza prior to the Original Closing Date, and attached to
the Amended and Restated Research and Development Agreement as Annex C thereto.

     “Initial Development Plan” means the initial development plan prepared by
representatives of Symphony Allegro and Alexza prior to the Original Closing Date, and attached to
the Amended and Restated Research and Development Agreement as Annex C thereto.

     “Initial Holdings LLC Agreement” means the Agreement of Limited Liability Company of
Holdings, dated October 24, 2006.

     “Initial Investors LLC Agreement” means the Agreement of Limited Liability Company of
Investors, dated October 24, 2006.

     “Initial LLC Member” has the meaning set forth in Section 1.01 of the Holdings
LLC Agreement.

     “Interest Certificate” has the meaning set forth in Section 1.01 of the
Holdings LLC Agreement.

     “Investment Company Act” means the Investment Company Act of 1940, as amended.

     “Investment Overview” means the investment overview describing the transactions
entered into pursuant to the Operative Documents.

     “Investment Policy” has the meaning set forth in Section 1(a)(vi) of the RRD
Services Agreement.

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     “Investors” means Symphony Allegro Investors LLC.

     “Investors LLC Agreement” means the Amended and Restated Agreement of Limited
Liability Company of Investors dated as of the Original Closing Date.

     “IRS” means the U.S. Internal Revenue Service.

     “Key Personnel” means those Alexza Personnel listed on Schedule 6.5 to the
Amended and Restated Research and Development Agreement, as such schedule may be updated from time
to time by mutual agreement of the parties to the Amended and Restated Research and Development
Agreement.

     “Know-How” means findings, discoveries, inventions, know-how, information, results and
data of any type whatsoever, including without limitation, technical information, techniques,
results of experimentation and testing, diagnostic and prognostic assays, specifications,
databases, manufacturing processes or protocols, any and all laboratory, research, pharmacological,
toxicological, analytical, quality control, pre-clinical and clinical data.

     “Knowledge” of Alexza, Symphony Allegro or Holdings, as the case may be, means the
actual (and not imputed) knowledge of the executive officers or managing member of such Person
without the duty of inquiry or investigation.

     “Law” means any law, statute, treaty, constitution, regulation, rule, ordinance, order
or Governmental Approval, or other governmental restriction, requirement or determination, of or by
any Governmental Authority.

     “License” has the meaning set forth in the Preliminary Statement of the Purchase
Option Agreement.

     “Licensed Intellectual Property” means the Licensed Patent Rights and the Licensed
Know-How.

     “Licensed Know-How” means any and all Know-How that is Controlled by Licensor on or
after the Original Closing Date and prior to the unexercised expiration or termination of the
Purchase Option that:

     (a) is necessary or useful to practice the inventions claimed in the Licensed Patent Rights;
or

     (b) is a Symphony Allegro Enhancement;

     provided, however, that Licensed Know-How shall not include any Licensed
Patent Rights or any Know-How for the manufacture of a Product, including Know-How associated with
Product quality control or stability testing.

     “Licensed Patent Rights” means any and all patents and patent applications Controlled
by Licensor that:

A-11

 

     (a) are listed on Annex D of the Novated and Restated Technology License Agreement;

     (b) are reissues, continuations, divisionals, continuations-in-part, reexaminations, renewals,
substitutes, extensions or foreign counterparts of the patents and patent applications described in
(a) and (i) are filed prior to the unexercised expiration or termination of the Purchase Option or
(ii) are filed after such expiration or termination, but solely to the extent claiming Know-How
conceived and reduced to practice prior to such expiration or termination;

     (c) contain a claim that covers an invention disclosed in an invention disclosure listed on
Annex D of the Novated and Restated Technology License Agreement and (i) are filed prior to
the unexercised expiration or termination of the Purchase Option or (ii) are filed after such
expiration or termination, but solely to the extent claiming such invention;

     (d) contain a claim that covers a Symphony Allegro Enhancement and (i) are filed prior to the
unexercised expiration or termination of the Purchase Option or (ii) are filed after such
expiration or termination, but solely to the extent claiming such Symphony Allegro Enhancement; or

     (e) contain a claim that covers a Development Product or the manufacture or use thereof and
(i) are filed prior to the unexercised expiration or termination of the Purchase Option or (ii) are
filed after such expiration or termination, but solely to the extent claiming Development
Product-related Know-How conceived and reduced to practice prior to such expiration or termination.

     “Licensor” means Alexza.

     “Lien” has the meaning set forth in Section 1.01 of the Holdings LLC
Agreement.

     “Liquidating Event” has the meaning set forth in Section 8.01 of the Holdings
LLC Agreement.

     “LLC Agreements” means the Initial Holdings LLC Agreement, the Holdings LLC Agreement,
the Initial Investors LLC Agreement and the Investors LLC Agreement.

     “Loss” has the meaning set forth in each Operative Document in which it appears.

     “Loxapine” means: (a) loxapine and (b) all salts, metabolites, prodrug and other
physical forms thereof.

     “Management Fee” has the meaning set forth in Section 6(a) of the RRD Services
Agreement.

A-12

 

     “Management Services” has the meaning set forth in Section 1(a) of the RRD
Services Agreement.

     “Manager” means (i) for each LLC Agreement in which it appears, the meaning set forth
in such LLC Agreement, and (ii) for each other Operative Document in which it appears, RRD in its
capacity as manager of Symphony Allegro.

     “Manager Event” has the meaning set forth in Section 3.01(g) of the Holdings
LLC Agreement.

     “Manufacturing Subcontracting Agreement” means a Subcontracting Agreement that is
directly related to the manufacture of Product (including procurement of components and development
of improved manufacturing methods) or the improvement of the Staccato Technology.

     “Material Adverse Effect” means, with respect to any Person, a material adverse effect
on (i) the business, assets, property or condition (financial or otherwise) of such Person or,
(ii) its ability to comply with and satisfy its respective agreements and obligations under the
Operative Documents or, (iii) the enforceability of the obligations of such Person of any of the
Operative Documents to which it is a party.

     “Material Subsidiary” means, at any time, a Subsidiary of Alexza having assets in an
amount equal to at least 5% of the amount of total consolidated assets of Alexza and its
Subsidiaries (determined as of the last day of the most recent reported fiscal quarter of Alexza)
or revenues or net income in an amount equal to at least 5% of the amount of total consolidated
revenues or net income of Alexza and its Subsidiaries for the 12-month period ending on the last
day of the most recent reported fiscal quarter of Alexza.

     “Medical Discontinuation Event” means a series of adverse events, side effects or
other undesirable outcomes that, when collected in a Program, would cause a reasonable FDA Sponsor
to discontinue such Program.

     “Membership Interest” means (i) for each LLC Agreement in which it appears, the
meaning set forth in such LLC Agreement, and (ii) for each other Operative Document in which it
appears, the meaning set forth in the Holdings LLC Agreement.

     “NASDAQ” means the Nasdaq Stock Market, Inc.

     “NDA” means a New Drug Application, as defined in the regulations promulgated by the
United States Food and Drug Administration, or any foreign equivalent thereof.

     “Non-Alexza Capital Transaction” means any (i) sale or other disposition of all or
part of the Symphony Allegro Shares or all or substantially all of the operating assets of Symphony
Allegro, to a Person other than Alexza or an Affiliate of Alexza or

A-13

 

(ii) distribution in kind of the Symphony Allegro Shares following the unexercised expiration
or termination of the Purchase Option.

     “Novated and Restated Technology License Agreement” means the Novated and Restated
Technology License Agreement, dated as of the Original Closing Date, among Alexza, Symphony Allegro
and Holdings.

     “Operative Documents” means, collectively, the Indemnification Agreement, the Holdings
LLC Agreement, the Purchase Option Agreement, the Warrant Purchase Agreement, the Registration
Rights Agreement, the Subscription Agreement, the Technology License Agreement, the Novated and
Restated Technology License Agreement, the RRD Services Agreement, the Research and Development
Agreement, the Research Cost Sharing and Extension Agreement, the Amended and Restated Research and
Development Agreement, the Confidentiality Agreement, the Corporate Governance Letter Agreement and
each other certificate and agreement executed in connection with any of the foregoing documents.

     “Organizational Documents” means any certificates or articles of incorporation or
formation, partnership agreements, trust instruments, bylaws or other governing documents.

     “Original Agreement” has the meaning set forth in the Preliminary Statement of the
Purchase Option Agreement.

     “Original Closing Date” means December 1, 2006.

     “Party(ies)” means, for each Operative Document or other agreement in which it
appears, the parties to such Operative Document or other agreement, as set forth therein. With
respect to any agreement in which a provision is included therein by reference to a provision in
another agreement, the term “Party” shall be read to refer to the parties to the document
at hand, not the agreement that is referenced.

     “Payment Terms” has the meaning set forth in Section 8.2 of the Amended and
Restated Research and Development Agreement.

     “Percentage” has the meaning set forth in Section 1.01 of the Holdings LLC
Agreement.

     “Permitted Investments” has the meaning set forth in Section 1.01 of the
Holdings LLC Agreement.

     “Permitted Lien” has the meaning set forth in Section 1.01 of the Holdings LLC
Agreement.

     “Person” means any individual, partnership (whether general or limited), limited
liability company, corporation, trust, estate, association, nominee or other entity.

A-14

 

     “Personnel” of a Party means such Party, its employees, subcontractors, consultants,
representatives and agents.

     “Prime Rate” means the quoted “Prime Rate” at JPMorgan Chase Bank or, if such
bank ceases to exist or is not quoting a base rate, prime rate reference rate or similar rate for
United States dollar loans, such other major money center commercial bank in New York City selected
by the Manager.

     “Products” means an AZ-002 Product and/or an AZ-004 Product.

     “Profit” has the meaning set forth in Section 1.01 of the Holdings LLC
Agreement.

     “Programs” means the AZ-002 Program and/or the AZ-004 Program.

     “Program-Specific Claim” means any claim in a patent or patent application in the
Licensed Patent Rights that is directed exclusively to AZ-002 Products and/or AZ-004 Products.

     “Program-Specific Patents” means any and all Licensed Patent Rights that contain at
least one Program-Specific Claim.

     “Protocol” means a written protocol that meets the substantive requirements of
Section 6 of the ICH Guideline for Good Clinical Practice as adopted by the FDA, effective
May 9, 1997, and is included within the Development Plan or later modified or added to the
Development Plan pursuant to the Amended and Restated Research and Development Agreement.

     “Public Companies” has the meaning set forth in Section 5(e) of the Purchase
Option Agreement.

     “Purchase Option” has the meaning set forth in Section 1(a) of the Purchase
Option Agreement.

     “Purchase Option Agreement” means the Amended and Restated Purchase Option Agreement
dated as of the date hereof, among Alexza, Holdings and Symphony Allegro.

     “Purchase Option Closing” has the meaning set forth in Section 2(a) of the
Purchase Option Agreement.

     “Purchase Option Closing Date” has the meaning set forth in Section 2(a) of
the Purchase Option Agreement.

     “Purchase Option Commencement Date” has the meaning set forth in
Section 1(c)(iii) of the Purchase Option Agreement.

A-15

 

     “Purchase Option Exercise Date” has the meaning set forth in Section 2(a) of
the Purchase Option Agreement.

     “Purchase Option Exercise Notice” has the meaning set forth in Section 2(a) of
the Purchase Option Agreement.

     “Purchase Option Offset Amount” shall mean, following the termination of the Amended
and Restated Research and Development Agreement by Alexza pursuant to Section 17.3 thereof, those
unpaid amounts actually owed to Alexza as a result of the material breach or default of any payment
obligation of Symphony Allegro to Alexza pursuant to the Amended and Restated Research and
Development Agreement by Symphony Allegro or Holdings that was the basis for such termination of
the Amended and Restated Research and Development Agreement by Alexza.

     “Purchase Option Period” has the meaning set forth in Section 1(c)(iii) of the
Purchase Option Agreement.

     “Purchase Price” has the meaning set forth in Section 2(b) of the Purchase
Option Agreement.

     “QA Audits” has the meaning set forth in Section 6.6 of the Amended and
Restated Research and Development Agreement.

     “Registration Rights Agreement” means the Amended and Restated Registration Rights
Agreement dated as of the date hereof, between Alexza and Holdings.

     “Registration Statement” has the meaning set forth in Section 1(b) of the
Registration Rights Agreement.

     “Regulatory Allocation” has the meaning set forth in Section 3.06 of the
Holdings LLC Agreement.

     “Regulatory Authority” means the United States Food and Drug Administration, or any
successor agency in the United States, or any health regulatory authority(ies) in any other country
that is a counterpart to the FDA and has responsibility for granting registrations or other
regulatory approval for the marketing, manufacture, storage, sale or use of drugs in such other
country.

     “Regulatory Files” means any IND, NDA or any other filings filed with any Regulatory
Authority with respect to the Programs.

     “Representative” of any Person means such Person’s shareholders, principals,
directors, officers, employees, members, managers and/or partners.

     “Research Cost Sharing and Extension Agreement” means the Research Cost Sharing and
Extension Agreement dated as of the Original Closing Date, among Alexza, Holdings and Symphony
Allegro.

A-16

 

     “Research and Development Agreement” means the Research and Development Agreement
dated as of the Original Closing Date, between Alexza and Holdings.

     “RRD” means RRD International, LLC, a Delaware limited liability company.

     “RRD Indemnified Party” has the meaning set forth in Section 10(a) of the RRD
Services Agreement.

     “RRD Loss” has the meaning set forth in Section 10(a) of the RRD Services
Agreement.

     “RRD Personnel” has the meaning set forth in Section 1(a)(ii) of the RRD
Services Agreement.

     “RRD Services Agreement” means the RRD Services Agreement between Symphony Allegro and
RRD, dated as of the Original Closing Date.

     “Schedule K-1” has the meaning set forth in Section 9.02(a) of the Holdings
LLC Agreement.

     “Scheduled Meeting” has the meaning set forth in Paragraph 6 of Annex B of the Amended
and Restated Research and Development Agreement.

     “Scientific Discontinuation Event” has the meaning set forth in Section 4.2(c)
of the Amended and Restated Research and Development Agreement.

     “SCP” means Symphony Capital Partners, L.P., a Delaware limited partnership.

     “SEC” means the United States Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Selling Stockholder Questionnaire” has the meaning set forth in Section 4(a)
of the Registration Rights Agreement.

     “Shareholder” means any Person who owns any Symphony Allegro Shares.

     “Solvent” has the meaning set forth in Section 1.01 of the Holdings LLC
Agreement.

     “SSP” means Symphony Strategic Partners, LLC, a Delaware limited liability company.

A-17

 

     “Staccato Technology” means Alexza’s proprietary technology for the vaporization of a
pharmaceutical composition via rapid-heating to form a condensation aerosol that allows rapid
systemic drug delivery to humans through lung inhalation.

     “Stockholder Approval” has the meaning set forth in Section 3(b)(v) of the
Purchase Option Agreement.

     “Stock Payment Date” has the meaning set forth in Section 2 of the
Subscription Agreement.

     “Stock Purchase Price” has the meaning set forth in Section 2 of the
Subscription Agreement.

     “Subcontracting Agreement” means (a) any written agreement between Alexza and a third
party pursuant to which the third party performs any Alexza Obligations or (b) any work order,
change order, purchase order or the like entered into pursuant to Section 6.2(b) of the Amended and
Restated Research and Development Agreement.

     “Sublicense Obligations” has the meaning set forth in Section 3.2 of the
Novated and Restated Technology License Agreement.

     “Sublicensed Intellectual Property” has the meaning set forth in Section 3.2
of the Novated and Restated Technology License Agreement.

     “Subscription Agreement” means the Subscription Agreement between Symphony Allegro and
Holdings, dated as the Original Closing Date.

     “Subsidiary” of any Person means any corporation, partnership, joint venture, limited
liability company, trust or estate of which (or in which) more than 50% of (a) the issued and
outstanding capital stock having ordinary voting power to elect a majority of the board of
directors of such corporation (irrespective of whether at the time capital stock of any other class
or classes of such corporation shall or might have voting power upon the occurrence of any
contingency); (b) the interest in the capital or profits of such partnership, joint venture or
limited liability company; or (c) the beneficial interest in such trust or estate is at the time
directly or indirectly owned or controlled by such Person, by such Person and one or more of its
other Subsidiaries or by one or more of such Person’s other Subsidiaries.

     “Surviving Entity” means the surviving legal entity which is surviving entity to
Alexza after giving effect to a Change of Control.

     “Symphony Allegro” means Symphony Allegro, Inc., a Delaware corporation.

     “Symphony Allegro Auditors” has the meaning set forth in Section 5(b) of the
RRD Services Agreement.

A-18

 

     “Symphony Allegro Board” means the board of directors of Symphony Allegro.

     “Symphony Allegro By-laws” means the By-laws of Symphony Allegro, as adopted by
resolution of the Symphony Allegro Board on the Original Closing Date.

     “Symphony Allegro Charter” means the Amended and Restated Certificate of Incorporation
of Symphony Allegro, dated as of the Original Closing Date.

     “Symphony Allegro Director Event” has the meaning set forth in
Section 3.01(h)(i) of the Holdings LLC Agreement.

     “Symphony Allegro Enhancements” means any and all Know-How, whether or not patentable,
that is made by or on behalf of Symphony Allegro during the Term, including Know-How generated or
derived by RRD and assigned to Symphony Allegro pursuant to Section 12 of the RRD Services
Agreement.

     “Symphony Allegro Equity Securities” means the Common Stock and any other stock or
shares issued by Symphony Allegro.

     “Symphony Allegro Loss” has the meaning set forth in Section 10(b) of the RRD
Services Agreement.

     “Symphony Allegro Shares” has the meaning set forth in Section 2.02 of the
Holdings LLC Agreement.

     “Symphony Capital” means Symphony Capital LLC, a Delaware limited liability company.

     “Symphony Fund(s)” means Symphony Capital Partners, L.P., a Delaware limited
partnership, and Symphony Strategic Partners, LLC, a Delaware limited liability company.

     “Tangible Materials” means any tangible technical, medical, regulatory or marketing
documentation, whether written or electronic, existing as of the Original Closing Date or made by
or on behalf of Symphony Allegro during the Term, that (a) is Controlled by the Licensor and (b)
embodies or relates solely to the Regulatory Files (other than Drug Master Files), Exiting Products
or the Programs; provided, however, that Tangible Materials shall not include any
manufacturing-related documentation or any documentation related to Licensed Intellectual Property.

     “Tax Amount” has the meaning set forth in Section 4.02 of the Holdings LLC
Agreement.

     “Technology License Agreement” means the Technology License Agreement, dated as of the
Original Closing Date, between Alexza and Holdings.

A-19

 

     “Term” has the meaning set forth in Section 4(b)(iii) of the Purchase Option
Agreement, unless otherwise stated in any Operative Document.

     “Territory” means the world.

     “Third Party IP” has the meaning set forth in Section 2.9 of the Novated and
Restated Technology License Agreement.

     “Third Party Licensor” means a third party from which Alexza has received a license or
sublicense to Licensed Intellectual Property.

     “Transaction Event” has the meaning set forth in Section 6.05 of the Warrant
Purchase Agreement.

     “Transfer” has for each Operative Document in which it appears the meaning set forth
in such Operative Document.

     “Transferee” has, for each Operative Document in which it appears, the meaning set
forth in such Operative Document.

     “Voluntary Bankruptcy” has the meaning set forth in Section 1.01 of the
Holdings LLC Agreement.

     “Warrant Closing” has the meaning set forth in Section 2.03 of the Warrant
Purchase Agreement.

     “Warrant Date” has the meaning set forth in Section 2.02 of the Warrant
Purchase Agreement.

     “Warrant Purchase Agreement” means the Warrant Purchase Agreement, dated as of the
date hereof, between Alexza and Holdings.

     “Warrant Shares” has the meaning set forth in Section 2.01 of the Warrant
Purchase Agreement.

     “Warrant Surrender Price” has the meaning set forth in Section 7.08 of the
Warrant Purchase Agreement.

     “Warrants” has the meaning set forth in Section 2.01 of the Warrant Purchase
Agreement.

A-20

 

EXHIBIT A

FORM OF OPINION OF COOLEY GODWARD KRONISH LLP

[                    ], 2009

Symphony Allegro Holdings LLC

7361 Calhoun Place, Suite 325

Rockville, MD 20855

Dear Ladies and Gentlemen:

We have acted as counsel for Alexza Pharmaceuticals, Inc., a Delaware corporation (the “Company”),
in connection with the financing of certain of the Company’s research and development programs (the
“Financing”). In connection with the amendment of certain terms of the Financing, the Company has
entered into the agreements listed on Schedule I hereto (collectively, the “Transaction
Agreements”). We are rendering this opinion pursuant to Section 3(b)(i) of the Purchase Option
Agreement (as defined in Schedule I hereto).

In connection with this opinion, we have examined and relied upon the representations and
warranties as to factual matters contained in and made pursuant to the Transaction Agreements by
the various parties and originals, or copies certified to our satisfaction, of such records,
documents, certificates, opinions, memoranda and other instruments as in our judgment are necessary
or appropriate to enable us to render the opinion expressed below.

As to certain factual matters, we have relied upon certificates of officers of the Company and have
not sought independently to verify such matters. Where we render an opinion “to our knowledge” or
concerning an item “known to us” or our opinion otherwise refers to our knowledge, it is based
solely upon (i) an inquiry of attorneys currently within this firm who have represented the Company
in this transaction, (ii) receipt of a certificate executed by an officer of the Company covering
such matters and (iii) such other investigation, if any, that we specifically set forth herein.

In rendering this opinion, we have assumed: the authenticity of all documents submitted to us as
originals; the conformity to originals of all documents submitted to us as copies; the accuracy,
completeness and authenticity of certificates of public officials; the due authorization, execution
and delivery of all documents (except the due authorization, execution and delivery by the Company
of the Transaction Agreements), where authorization, execution and delivery are prerequisites to
the effectiveness of such documents; and the genuineness and authenticity of all signatures on
original documents (except the signatures on behalf of the Company on the Transaction Agreements).
We have also assumed: that all individuals executing and delivering documents had the legal
capacity to so execute and deliver; that the Transaction Agreements are obligations binding upon
the parties thereto other than the Company; and that there are no extrinsic agreements or
understandings among the parties to the Transaction Agreements or to the Material Agreements (as
defined below) that would

 

 

modify or interpret the terms of any such agreements or the respective rights or obligations of the
parties thereunder.

Our opinion is expressed only with respect to the federal laws of the United States of America, the
laws of the State of California for the purposes of paragraphs 4 and 5 below, the laws of the State
of New York and the General Corporation Law of the State of Delaware. We express no opinion as to
whether the laws of any particular jurisdiction apply, and no opinion to the extent that the laws
of any jurisdiction other than those identified above are applicable to the subject matter hereof.

We express no opinion as to any provisions of the Transaction Agreements that: (a) relate to the
subject matter jurisdiction of any federal court of the United States of America or any federal
appellate court to adjudicate any controversy related to the Transaction Agreements, (b) contains a
waiver of an inconvenient forum, or (c) relates to advance waivers of claims, defenses, rights
granted by law, or notice, opportunity for hearing, evidentiary requirements, statutes of
limitations, trial by jury, or procedural rights.

We are not rendering any opinion as to any statute, rule, regulation, ordinance, decree or
decisional law relating to antitrust, banking, land use, environmental, pension, employee benefit,
tax, usury, laws governing the legality of investments for regulated entities, regulations T, U or
X of the Board of Governors of the Federal Reserve System or local law. Furthermore, we express no
opinion with respect to compliance with antifraud laws, rules or regulations relating to securities
or the offer and sale thereof; compliance with the Investment Company Act of 1940, as amended,
except as expressly set forth in paragraph 9 below; compliance with fiduciary duties by the
Company’s Board of Directors or stockholders; compliance with safe harbors for disinterested Board
of Director or stockholder approvals; compliance with state securities or blue sky laws except as
specifically set forth below; or compliance with laws that place limitations on corporate
distributions.

With regard to our opinion in paragraph 1 below, we have relied solely upon a certificate of the
Secretary of State of the State of Delaware as of a recent date. We have made no further
investigation.

With regard to our opinion in paragraph 3 below, with respect to the due and valid authorization of
each of the Transaction Documents, we have relied solely upon (i) a certificate of an officer of
the Company, (ii) a review of the certificate of incorporation and bylaws of the Company, (iii) a
review of the resolutions certified by an officer of the Company, and (iv) a review of the Delaware
General Corporation Law. We have made no further investigation.

With regard to our opinion in paragraph 4 below concerning material defaults under and any material
breaches of any agreement identified on Schedule II hereto, we have relied solely upon (i) a
certificate of an officer of the Company, (ii) a list supplied to us by the Company of material
agreements to which the Company is a party, or by which it is bound, a copy of which is attached
hereto as Schedule II (the “Material Agreements”) and (iii) an examination of the Material
Agreements in the form provided to us by the Company. We have made no further investigation.
Further, with regard to our opinion in paragraph 4 below concerning Material Agreements, we express
no opinion as to (i) financial covenants or similar provisions therein requiring financial
calculations or

 

 

determinations to ascertain compliance, (ii) provisions therein relating to the occurrence of a
“material adverse event” or words of similar import or (iii) any statement or writing that may
constitute parol evidence bearing on interpretation or construction.

With regard to our opinion in paragraph 7 below, we express no opinion to the extent that,
notwithstanding its current reservation of shares of Common Stock, future issuances of securities
of the Company and/or antidilution adjustments to outstanding securities of the Company may cause
the Warrant Shares (as defined in the Warrant Purchase Agreement (as defined on Schedule I hereto))
to exceed the number of shares of Common Stock that then remain authorized but unissued.

With regard to our opinion in paragraph 8 concerning exemption from registration, our opinion is
expressed only with respect to the offer and sale of the Alexza Closing Shares (as defined in the
Purchase Option Agreement), the Warrant (as defined in the Warrant Purchase Agreement) or the
Warrant Shares without regard to any offers or sales of securities occurring prior to or subsequent
to the date hereof.

With regard to our opinion in paragraph 9 below, we have based our opinion, to the extent we
consider appropriate, on Rule 3a-8 under the Investment Company Act of 1940, as amended, and a
certificate of an officer of the Company as to compliance with each of the requirements necessary
to comply with Rule 3a-8. We have conducted no further investigation.

On the basis of the foregoing, in reliance thereon and with the qualifications set forth herein, we
are of the opinion that:

	1.	 	The Company has been duly incorporated and is a validly existing corporation in good standing
under the laws of the State of Delaware.

	2.	 	The Company has the corporate power to perform its obligations under the Transaction
Agreements.

	3.	 	Each of the Transaction Agreements has been duly and validly authorized, executed and
delivered by the Company. The offer and sale of the Alexza Closing Shares and the Warrant
have been duly authorized by the Company.

	4.	 	The issuance of the Alexza Closing Shares and the Warrant pursuant to the Transaction
Agreements and the Warrant Shares pursuant to the Warrant (assuming the exercise of the
Warrant on the date hereof) will not (a) violate any provision of the Company’s certificate of
incorporation or by-laws, (b) violate any governmental statute, rule or regulation which in
our experience is typically applicable to transactions of the nature contemplated by the
Transaction Agreements, (c) violate any order, writ, judgment, injunction, decree,
determination or award which has been entered against the Company and of which we are aware or
(d) constitute a material default under or a material breach of any Material Agreement, in the
case of clauses (c) and (d) to the extent such default or breach would materially and
adversely affect the Company.

	5.	 	All consents, approvals, authorizations or orders of, and filings, registrations and
qualifications with, any U.S. Federal or California regulatory authority or governmental body
required for the sale and issuance of the Alexza Closing

 

 

	 	 	Shares and the Warrant have been made or obtained, except (a) for the filing of a Form D
pursuant to Securities and Exchange Commission Regulation D and (b) for the filing of the
notice to be filed under California Corporations Code Section 25102.1(d).

	6.	 	Each of the Transaction Agreements constitutes a valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms.

	7.	 	The Alexza Closing Shares and the Warrant Shares, when sold and issued in accordance with the
terms of the Purchase Option Agreement or the Warrant, as applicable, will be validly issued,
fully paid and non-assessable, and the issuance of the Alexza Closing Shares and the Warrant
Shares is not subject to preemptive rights pursuant to the General Corporation Law of the
State of Delaware, the certificate of incorporation or by-laws of the Company or similar
rights to subscribe pursuant to any Material Agreement.

	8.	 	The offer and sale of the Alexza Closing Shares, the Warrant and the Warrant Shares (assuming
exercise of the Warrant on the date hereof) are exempt from the registration requirements of
the Securities Act of 1933, as amended, subject to the timely filing of a Form D pursuant to
Securities and Exchange Commission Regulation D.

	9.	 	The Company is not an “investment company” as defined in the Investment Company Act of 1940,
as amended.

Our opinion in paragraph 6 above is specifically subject to the following limitations, exceptions,
qualifications and assumptions:

     A. The opinions expressed above are subject to, and may be limited by, applicable bankruptcy,
reorganization, insolvency, moratorium, fraudulent conveyance, debtor and creditor, and similar
laws which relate to or affect creditors’ rights generally. This opinion is also subject to, and
may be limited by, general principles of equity and the exercise of judicial discretion (regardless
of whether such validity or enforceability is considered in a proceeding in equity or at law),
including the possible unavailability of specific performance, injunctive relief or any other
equitable remedy and concepts of materiality, reasonableness, conscionability, good faith and fair
dealing.

     B. We express no opinion as to the effect of court decisions, invoking statutes or principles
of equity, which have held that certain covenants and provisions of agreements are unenforceable
where enforcement of such covenants or provisions under the circumstances would violate the
enforcing party’s implied covenant of good faith and fair dealing or would be limited by the
principles of course of dealing or course of performance.

     C. We express no opinion as to the effect of any federal or state law or equitable principle
which provides that a court may refuse to enforce, or may limit the application of, a contract or
any clause thereof that the courts find to be unconscionable at the time it was made or contrary to
public policy.

     D. We express no opinion as to the enforceability under certain circumstances of provisions
expressly or by implication waiving broadly or vaguely

 

 

stated rights, unknown future rights including without limitation rights to damages, or
defenses to obligations or rights granted by law, when such waivers are against public policy or
prohibited by law.

     E. We express no opinion as to the enforceability under certain circumstances of provisions to
the effect that rights or remedies are not exclusive, that rights or remedies may be exercised
without notice, that every right or remedy is cumulative and may be exercised in addition to or
with any other right or remedy, that election of a particular remedy or remedies does not preclude
recourse to one or more remedies, or that failure to exercise or delay in exercising rights or
remedies will not operate as a waiver of any such right or remedy.

     F. We express no opinion as to the enforceability of any provision of an applicable agreement
requiring that waivers must be in writing; such provision may not be binding or enforceable if a
non-executory oral agreement has been created modifying any such provision or if an implied
agreement by trade practice or course of conduct has given rise to a waiver.

     G. We express no opinion as to the enforceability of the following rights and remedies which
may be limited by applicable law: (i) any provision which provides for a rate of interest which
exceeds that permissible under applicable law; (ii) any provision which purports to affect the
jurisdiction of a court (including provisions as to methods of service of process and as to
property which may be subject to such jurisdiction) or may be subject to the discretion of a court
(including provisions as to venue); (iii) any provision which purports to make available remedies
for violations, breaches or defaults that are determined by a court of competent jurisdiction to be
non-material or unreasonable; (iv) any provision which provides for a choice of law or choice of
forum; (v) any provision relating to contribution to or the indemnification or exculpation of any
party; and (vi) any provision that contains a waiver of the benefits of statutory, regulatory, or
constitutional rights, unless and to the extent the statute, regulation, or constitution explicitly
allows waiver, including without limitation, any provision which purports to waive trial by jury.

     H. We express no opinion with respect to the following: (i) any document referenced in the
Transaction Agreements that is not a Transaction Agreement; and (ii) the enforceability of the
Transaction Agreements by or against any person or entity that is not a party thereto.

     I. We express no opinion as to the enforceability of any provision for penalties, liquidated
damages, acceleration of future amounts due (other than principal) without appropriate discount to
present value, late charges, prepayment charges, or increased interest rates upon default.

     J. We express no opinion as the enforceability of any provision stating that the provisions of
a contract are severable.

     K. We express no opinion as to the enforceability of any provision that would permit the other
party to require performance without requiring consideration of the impracticability or
impossibility of performance at the time of attempted enforcement due to unforeseen circumstances
not within the contemplation of the parties.

 

 

     L. We express no opinion as to the enforceability of any provision which purports to assign,
grant a lien upon or security interest in or to any contract, right, agreement or other property
right or the proceeds thereof (other than assignments or security interests in accounts, general
intangibles, chattel paper or promissory notes to the extent provided by Sections 9-406(d), 9-407
and 9-408 of the New York Uniform Commercial Code), which by its terms or under applicable law,
rule or regulation is not so assignable or under which the grant of such a lien or security
interest is prohibited.

This opinion is limited to the matters expressly set forth herein, and no opinion, express or
implied, is given beyond the matters expressly stated. This opinion speaks only as to the laws and
facts in effect or existing as of the date hereof, and we have no obligation to update or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our
attention or any changes in law that may hereafter occur.

This opinion is intended solely for your benefit and is not to be made available to or be relied
upon by any other person, firm, or entity without our prior written consent.

Sincerely,

Cooley Godward Kronish LLP

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Brent D. Fassett
	 	 

 

 

EXHIBIT B

FORM OF 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 JUNE 15, 2009, 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. CW-_
	 	[                    ], 2009

Void After [                    ], 2014

     THIS CERTIFIES THAT, for value received, SYMPHONY ALLEGRO HOLDINGS LLC, with its principal
office at 7361 Calhoun Place, Suite 325, Rockville, MD 20855, 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 2091
Stierlin Court, Mountain View, CA 94043 (the “Company”) up to five million (5,000,000)
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 June 15, 2009, 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:

B-1 

 

          (a) “Exercise Period” shall mean the period commencing on [                    ], 2009 and ending
on [                    ], 2014, except as otherwise provided below.

          (b) “Exercise Price” shall mean $2.26 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.

B-2 

 

          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)	 	 
	 

	 	 	 	 

B
	 	 
	 
	 	 	 	 	 	 
	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

B-3 

 

               (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
legend (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.”

               (b) If the certificates representing shares include the legend 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

B-4 

 

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 11 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;

B-5 

 

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.

B-6 

 

          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

B-7 

 

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 (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).

B-8 

 

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.

B-9 

 

     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. RESTRICTIONS. The Holder acknowledges that the Warrant Shares acquired upon the
exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws. The Holder hereby acknowledges and agrees that if a registration
statement under the Securities Act is not effective at the time this Warrant is exercised, the
Holder shall only be permitted to exercise this Warrant by means of a “cashless exercise” pursuant
to Section 2.2.

     11. 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.

     12. 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.

     13. ACCEPTANCE. Receipt of this Warrant by the Holder shall constitute acceptance of
and agreement to all of the terms and conditions contained herein.

     14. 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,

B-10 

 

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.

     15. 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.

     16. 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.

     17. 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.

     18. 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.

     19. 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]

B-11 

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized
officer as of                     , 2009.

	 	 	 	 	 	 	 
	 	 	ALEXZA PHARMACEUTICALS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	
Name:
	 	 

	 	 

	 

	 	
Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address:
	 	2091 Stierlin Court	 	 
	 

	 	 	 	Mountain View, CA 94043	 	 
	 

	 	 	 	Attn: August J. Moretti	 	 
	 

	 	 	 	Facsimile: (650) 944-7999	 	 
	 
	 	 	 	 	 	 
	 

	 	W/copy to:
	 	Cooley Godward Kronish LLP	 	 
	 

	 	 	 	380 Interlocken Crescent	 	 
	 

	 	 	 	Suite 900	 	 
	 

	 	 	 	Broomfield, CO 80021	 	 
	 

	 	 	 	Attn: Brent D. Fassett, Esq.	 	 
	 

	 	 	 	Facsimile: (720) 566-4099	 	 

B-12 

 

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

B-13 

 

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)
	 	 

B-14 

 

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:
	 	 	 	 
	 

	 	 

(Please Print)
	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 

(Please Print)
	 	 

Dated:                                         , 20__

	 	 	 	 	 
	Holder’s

Signature:
	 	 	 	 
	 

	 	 

	 	 
	Holder’s

Address:
	 	 	 	 
	 

	 	 

	 	 

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.

B-15 

 

EXHIBIT C

WARRANT CONVERSION EXAMPLE

          In the event that Alexza is the target of a merger or acquisition in which the share purchase
price paid by the acquiror is paid in cash or a mixture of cash and stock, the outstanding Warrants
are to be exchanged for Replacement Warrants of the Surviving Entity such that the holders of
Warrants shall receive additional Replacement Warrants in lieu of the cash portion of the share
purchase price, as set out in the following example:

	 	•	 	A holder hereunder holds Warrants exercisable for 100,000 shares of Alexza Common Stock
at an exercise price of $10.00 per share, and the share purchase price paid by the
acquiror is $15.00 per share of Alexza Common Stock, with $5.00 to be paid in cash and
$10.00 to be paid in shares of the common stock of the Surviving Entity (“New
Stock”), based on a price of $100.00 per share of New Stock.
	 
	 	•	 	The Warrants of the holder, exercisable for 100,000 shares of Alexza Common Stock,
shall be converted as follows:

	 	(1)	 	The New Stock portion of the purchase price ($10.00 / share, or a ratio of
New Stock to Alexza Common Stock of 10 to 1) shall yield Replacement Warrants
exercisable for 10,000 shares of New Stock; and
	 
	 	(2)	 	The cash portion of the purchase price ($5.00 / share, or $500,000 total)
shall, at the New Stock price of $100 /share, yield Replacement Warrants exercisable
for 5,000 shares of New Stock ($500,000 / $100 = 5,000).

	 	•	 	Therefore, in such a scenario, a holder of Warrants exercisable for 100,000 shares of
Alexza Common Stock would receive Replacement Warrants exercisable for 15,000 shares of
New Stock at an exercise price of $66.67 per share ($10.00 / $15.00 = 0.67 x $100.00 =
$66.67).exv10w49

Exhibit 10.49

 

AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT

between

ALEXZA PHARMACEUTICALS, INC.

and

SYMPHONY ALLEGRO HOLDINGS LLC

 

Dated as of June 15, 2009

 

 

 

 

Table of Contents

	 	 	 	 	 
	Section	 	Page	 
	Section 1. Definitions
	 	 	1	 
	 
	Section 2. Registration
	 	 	3	 
	 
	Section 3. Related Obligations
	 	 	3	 
	 
	Section 4. Obligations of the Investor(s)
	 	 	7	 
	 
	Section 5. Expenses of Registration
	 	 	8	 
	 
	Section 6. Indemnification
	 	 	8	 
	 
	Section 7. Contribution
	 	 	12	 
	 
	Section 8. Reports Under The Exchange Act
	 	 	13	 
	 
	Section 9. Assignment of Registration Rights
	 	 	13	 
	 
	Section 10. Amendment
	 	 	14	 
	 
	Section 11. Miscellaneous
	 	 	14	 
	 
	Exhibit A — Form of Selling Stockholder Questionnaire
	 	 	 	 

 

 

AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

     AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of
June 15, 2009, by and between ALEXZA PHARMACEUTICALS, INC., a Delaware corporation
(“Alexza”), and SYMPHONY ALLEGRO HOLDINGS LLC, a Delaware limited liability company
(together with its permitted successors, assigns and transferees, “Holdings”).

RECITALS:

     WHEREAS, in connection with the exercise by Alexza of the Purchase Option under the Amended
and Restated Purchase Option Agreement, by and among Alexza, Holdings and Symphony Allegro, Inc., a
Delaware corporation (“Symphony Allegro”), of even date herewith (the “Purchase Option
Agreement”), Alexza will issue shares of Alexza’s common stock, par value $0.0001 per share
(“Alexza Common Stock”) (such shares of Alexza Common Stock when issued, the “Purchase
Option Shares”) to Holdings in partial payment of the Purchase Price in accordance with the
terms of the Purchase Option Agreement;

     WHEREAS, in connection with the Warrant Purchase Agreement by and between the parties hereto
of even date herewith (the “Warrant Purchase Agreement”), Alexza has agreed, upon the terms
and subject to the conditions of the Warrant Purchase Agreement, to issue and sell to Holdings
certain warrants (the “Warrants”) which will be exercisable to purchase shares of Alexza
Common Stock (such shares of Alexza Common Stock as exercised, the “Warrant Shares”) in
accordance with the terms of the Warrants;

     WHEREAS, Alexza and Holdings are parties to that certain Registration Rights Agreement dated
as of December 1, 2006 (the “Original Agreement”), pursuant to which Alexza has agreed to
provide certain registration rights under the Securities Act of 1933, as amended (the
“Securities Act”), and applicable state securities laws with respect to the Purchase Option
Shares; and

     WHEREAS, the parties to the Original Agreement desire to amend and restate the Original
Agreement and accept the rights and covenants hereof in lieu of their rights and covenants under
the Original Agreement.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Alexza and Holdings (the “Parties”) hereby agree as follows:

     Section 1. Definitions.

          (a) Capitalized terms used but not defined herein are used as defined in the Purchase Option
Agreement (including Annex A thereto).

 

 

          (b) As used in this Agreement, the following terms shall have the following meanings:

               (i) “Effective Registration Date” means the date that the Registration Statement (as
defined below) is first declared effective by the SEC.

               (ii) “Investor(s)” means Holdings, any transferee or assignee thereof to whom Holdings
assigns its rights under this Agreement and who agrees to become bound by the provisions of this
Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a
transferee or assignee assigns its rights under this Agreement and who agrees to become bound by
the provisions of this Agreement in accordance with Section 9.

               (iii) “Purchase Option Related Registrable Securities” means (i) the Purchase Option
Shares, and (ii) any Alexza Common Stock issued with respect to the Purchase Option Shares as a
result of any stock split, stock dividend, recapitalization, exchange or similar event or
otherwise.

               (iv) “register,” “registered,” and “registration” refer to a
registration effected by preparing and filing one or more Registration Statements in compliance
with the Securities Act and pursuant to Rule 415, and the declaration or ordering of effectiveness
of such Registration Statement(s) by the SEC.

               (v) “Registrable Securities” means, collectively, the Warrant Related Registrable
Securities and the Purchase Option Related Registrable Securities; provided, however, that such
securities will cease to be Registrable Securities on the earlier of (A) the date as of which the
Investor(s) may sell such securities without restriction pursuant to Rule 144(b)(i) (or successor
thereto) promulgated under the Securities Act, or (B) the date on which the Investor(s) shall have
sold all such securities.

               (vi) “Registration Statement” means a registration statement or registration
statements of Alexza filed under the Securities Act covering the Registrable Securities.

               (vii) “Rule 144” has the meaning set forth in Section 8 of this Agreement.

               (viii) “Rule 415” means Rule 415 under the Securities Act or any successor rule
providing for offering securities on a continuous or delayed basis.

               (ix) “Warrant Related Registrable Securities” means (i) the Warrant Shares issued or
issuable upon exercise of the Warrants; and (ii) any shares of capital stock issued or issuable
with respect to the Warrant Shares or the Warrants as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise, and in the case of the Warrants, without
regard to any limitations on exercise.

2

 

     Section 2. Registration.

          (a) Right to Registration. Alexza shall prepare, and, as soon as practicable but in
no event later than two business days after the Purchase Option Closing Date, file with the SEC a
Registration Statement on Form S-3 covering the resale of all of the Registrable Securities. The
Registration Statement prepared pursuant hereto shall register for resale at least that number of
shares of Alexza Common Stock equal to the number of Registrable Securities as of the trading day
immediately preceding the date the Registration Statement is initially filed with the SEC, subject
to adjustment as provided in Section 2(c). Alexza shall use commercially reasonable
efforts to have the Registration Statement declared effective by the SEC as soon as practicable
following the Purchase Option Closing Date.

          (b) Ineligibility for Form S-3. In the event that Form S-3 is not available for the
registration of the resale of Registrable Securities hereunder, Alexza shall (i) register the
resale of the Registrable Securities on another appropriate form reasonably acceptable to Holdings
(which acceptable forms shall include Form S-1); and (ii) undertake to register the Registrable
Securities on Form S-3 as soon as such form is available; provided that Alexza shall
maintain the effectiveness of the Registration Statement then in effect until such time as a
Registration Statement on Form S-3 covering the Registrable Securities has been declared effective
by the SEC.

          (c) Sufficient Number of Shares Registered. In the event the number of shares
available under a Registration Statement filed pursuant to Section 2(a) is insufficient to
cover all of the Registrable Securities required to be covered by such Registration Statement,
Alexza shall amend the applicable Registration Statement, or file a new Registration Statement (on
the short form available therefor, if applicable), or both, so as to cover at least 100% of the
number of such Registrable Securities as of the trading day immediately preceding the date of the
filing of such amendment or new Registration Statement, in each case, as soon as practicable, but
in any event not later than fifteen (15) days after Alexza becomes aware of the necessity therefor.
Alexza shall use commercially reasonable efforts to cause such amendment and/or new Registration
Statement to become effective as soon as practicable following the filing thereof. For purposes of
the foregoing provision, the number of shares available under a Registration Statement shall be
deemed “insufficient to cover all of the Registrable Securities” if at any time the number of
shares of Alexza Common Stock available for resale under such Registration Statement is less than
the number of Registrable Securities. The calculation set forth in the foregoing sentence shall be
made without regard to any limitations on the exercise of the Warrants and such calculation shall
assume that the Warrants are then exercisable into shares of Alexza Common Stock.

     Section 3. Related Obligations. At such time as Alexza is obligated to file a
Registration Statement with the SEC pursuant to Section 2(a), (b) or (c),
Alexza will use commercially reasonable efforts to effect the registration of the Registrable
Securities in accordance with the intended method of disposition thereof and, pursuant thereto
(except at such times as Alexza may be required to suspend the use of a prospectus forming a part
of the Registration Statement pursuant to Section 3(1), at which

3

 

time Alexza’s obligations under Sections 3(a), (b), (c), (d),
(i) and (k) may also be suspended, as required), Alexza shall have the following
obligations:

          (a) Alexza shall keep each Registration Statement effective pursuant to Rule 415 at all times
until the earlier of (i) the date as of which the Investor(s) may sell all of the Registrable
Securities covered by such Registration Statement without restriction pursuant to Rule 144(b)(i)
(or successor thereto) promulgated under the Securities Act, or (ii) the date on which the
Investor(s) shall have sold all the Registrable Securities covered by such Registration Statement
(the “Registration Period”).

          (b) Alexza shall prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to a Registration Statement and the prospectus used in connection with
such Registration Statement as may be necessary to keep such Registration Statement effective at
all times during the Registration Period, and, during such period, comply with the provisions of
the Securities Act with respect to the disposition of all Registrable Securities of Alexza covered
by such Registration Statement until such time as all of such Registrable Securities shall have
been disposed of in accordance with the intended methods of disposition by the seller or sellers
thereof as set forth in such Registration Statement. In the case of amendments and supplements to
a Registration Statement which are required to be filed pursuant to this Agreement (including
pursuant to this Section 3(b)) by reason of Alexza filing a report on Form 10-K, Form 10-Q
or Form 8-K or any analogous report under the Exchange Act, Alexza shall have incorporated such
report by reference into such Registration Statement, if applicable, or shall file such amendments
or supplements with the SEC on the same day on which the Exchange Act report is filed which created
the requirement for Alexza to amend or supplement such Registration Statement.

          (c) Alexza shall furnish to each Investor whose Registrable Securities are included in any
Registration Statement, without charge, (i) promptly after the same is prepared and filed with the
SEC, at least one (1) copy of such Registration Statement and any amendment(s) thereto, including
financial statements and schedules, and each preliminary prospectus; (ii) upon the effectiveness of
any Registration Statement, ten (10) copies of the prospectus included in such Registration
Statement and all amendments and supplements thereto (or such other number of copies as such
Investor may reasonably request); and (iii) such other documents, including copies of any
preliminary or final prospectus, as such Investor may reasonably request from time to time in order
to facilitate the disposition of the Registrable Securities owned by such Investor.

          (d) Alexza shall use commercially reasonable efforts to (i) register and qualify, unless an
exemption from registration and qualification applies, the resale by Investor(s) of the Registrable
Securities covered by a Registration Statement under such other securities or “blue sky” laws of
such jurisdictions in the United States as Investor(s) reasonably request; (ii) prepare and file in
those jurisdictions such amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the effectiveness thereof during
the Registration Period; and (iii) take such other actions as may be necessary to

4

 

maintain such registrations and qualifications in effect at all times during the Registration
Period; provided, however, that Alexza shall not be required in connection
therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to
general taxation in any such jurisdiction, or (z) file a general consent to service of process in
any such jurisdiction. Alexza shall promptly notify each Investor who holds Registrable Securities
of the receipt by Alexza of any notification with respect to the suspension of the registration or
qualification of any of the Registrable Securities for sale under the securities or “blue sky” laws
of any jurisdiction in the United States or its receipt of actual notice of the initiation or
threatening of any proceeding for such purpose.

          (e) Alexza shall notify each Investor in writing of the happening of any event, as promptly as
practicable after becoming aware of such event, as a result of which the prospectus included in a
Registration Statement, as then in effect, includes an untrue statement of a material fact or
omission to state a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading, and, subject
to Section 3(l) hereof, promptly prepare a supplement or amendment to such Registration
Statement to correct such untrue statement or omission. Alexza shall also promptly notify each
Investor in writing when a prospectus or any prospectus supplement or post-effective amendment has
been filed, and when a Registration Statement or any post-effective amendment has become effective.

          (f) Alexza shall use commercially reasonable efforts to prevent the issuance of any stop order
or other suspension of effectiveness of a Registration Statement, or the suspension of the
qualification of any of the Registrable Securities for sale in any jurisdiction and, if such an
order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest
possible moment.

          (g) In the event that any Investor is deemed to be an “underwriter” with respect to the
Registrable Securities, upon the written request of such Investor in connection with such
Investor’s due diligence requirements, if any, Alexza shall make available for inspection by (i)
such Investor, and (ii) any legal counsel, accountants or other agents retained by the Investor
(collectively, “Inspectors”), all pertinent financial and other records, and pertinent
corporate documents and properties of Alexza (collectively, “Records”), as shall be
reasonably deemed necessary by each Inspector, and cause Alexza’s officers, directors and employees
to supply all information which any Inspector may reasonably request; provided,
however, that each Inspector and such Investor shall agree in writing to hold in strict
confidence and shall not make any disclosure (except with respect to an Inspector, to the relevant
Investor) or use of any Record or other information which Alexza determines in good faith to be
confidential, and of which determination the Inspectors are so notified, unless the release of such
Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government
body of competent jurisdiction. Each Investor agrees that it shall, upon learning that disclosure
of such Records is required or is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt notice to Alexza and allow Alexza, at its expense,
to undertake appropriate action to prevent

5

 

disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing
herein (or in any other confidentiality agreement between Alexza and any Investor) shall be deemed
to limit the Investor(s)’ ability to sell Registrable Securities in a manner which is otherwise
consistent with applicable laws and regulations.

          (h) Alexza shall hold in confidence and not make any disclosure of information concerning an
Investor provided to Alexza unless (i) disclosure of such information is necessary to comply with
federal or state securities laws or the rules of any securities exchange or trading market on which
the Alexza Common Stock is listed or traded, (ii) the disclosure of such information is necessary
to avoid or correct a misstatement or omission in any Registration Statement, or (iii) the release
of such information is ordered pursuant to a subpoena or other final, non-appealable order from a
court or governmental body of competent jurisdiction. Alexza agrees that it shall, upon learning
that disclosure of such information concerning an Investor is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt written notice to
such Investor and allow such Investor, at the Investor’s expense, to undertake appropriate action
to prevent disclosure of, or to obtain a protective order for, such information.

          (i) Alexza shall use commercially reasonable efforts either to (i) cause all the Registrable
Securities covered by a Registration Statement to be listed on each securities exchange on which
securities of the same class or series issued by Alexza are then listed, if any, if the listing of
such Registrable Securities is then permitted under the rules of such exchange, or (ii) secure
designation and quotation of all the Registrable Securities covered by a Registration Statement on
the NASDAQ Global Market. Alexza shall pay all fees and expenses in connection with satisfying its
obligation under this Section 3(i).

          (j) Alexza shall cooperate with the Investor(s) who hold Registrable Securities being offered
and, to the extent applicable, facilitate the timely preparation and delivery of certificates
representing the Registrable Securities to be offered pursuant to a Registration Statement and
enable such certificates to be in such denominations or amounts, as the case may be, as the
Investor(s) may reasonably request and registered in such names as the Investor(s) may request.

          (k) If requested by an Investor, Alexza shall (i) as soon as practicable incorporate in a
prospectus supplement or post-effective amendment such information as an Investor reasonably
requests to be included therein relating to the sale and distribution of Registrable Securities,
including, without limitation, information with respect to the number of Registrable Securities
being offered or sold, the purchase price being paid therefor and any other terms of the offering
of the Registrable Securities to be sold in such offering and (ii) as soon as practicable make all
required filings of such prospectus supplement or post-effective amendment after being notified of
the matters to be incorporated in such prospectus supplement or post-effective amendment.

          (l) Notwithstanding anything to the contrary herein, at any time after the Registration
Statement has been declared effective by the SEC, Alexza may

6

 

delay or suspend the effectiveness of any Registration Statement or the use of any prospectus
forming a part of the Registration Statement due to the non-disclosure of material, non-public
information concerning Alexza the disclosure of which at the time is not, in the good faith opinion
of Alexza, in the best interest of Alexza (a “Grace Period”); provided, that Alexza
shall promptly notify the Investor(s) in writing of the existence of a Grace Period in conformity
with the provisions of this Section 3(l) and the date on which the Grace Period will begin
(such notice, a “Commencement Notice”); and, provided further, that no Grace Period shall
exceed thirty (30) consecutive days, and such Grace Periods shall not exceed an aggregate total of
ninety (90) days during any three hundred sixty five (365) day period. For purposes of determining
the length of a Grace Period above, the Grace Period shall begin on and include the date specified
by Alexza in the Commencement Notice and shall end on and include the date the Investor(s) receive
written notice of the termination of the Grace Period by Alexza (which notice may be contained in
the Commencement Notice). The provisions of Section 3(f) hereof shall not be applicable
during any Grace Period. Upon expiration of the Grace Period, Alexza shall again be bound by the
first sentence of Section 3(e) with respect to the information giving rise thereto unless
such material, non-public information is no longer applicable. Notwithstanding anything to the
contrary, Alexza shall cause its transfer agent to deliver unlegended shares of Alexza Common Stock
to a transferee of an Investor in accordance with the terms of the Warrant Purchase Agreement in
connection with any sale of Registrable Securities with respect to which an Investor has entered
into a contract for sale, and delivered a copy of the prospectus included as part of the applicable
Registration Statement, prior to the Investor’s receipt of the notice of a Grace Period and for
which the Investor has not yet settled.

     Section 4. Obligations of the Investor(s).

          (a) At least seven (7) Business Days prior to the first anticipated filing date of a
Registration Statement, Alexza shall notify each Investor in writing of the information Alexza
requires from each such Investor if such Investor elects to have any of such Investor’s Registrable
Securities included in such Registration Statement and provide each such Investor with a copy of
Alexza’s then-current selling stockholder questionnaire (a copy of which is attached hereto as
Exhibit A hereto, a “Selling Stockholder Questionnaire”). It shall be a condition
precedent to the obligations of Alexza to complete the registration pursuant to this Agreement with
respect to the Registrable Securities of a particular Investor that such Investor shall furnish to
Alexza a completed Selling Stockholder Questionnaire, along with such other information regarding
itself, the Registrable Securities held by it and the intended method of disposition of the
Registrable Securities held by it as may reasonably be required to effect the effectiveness of the
registration of such Registrable Securities, and shall execute other such documents in connection
with such registration as Alexza may reasonably request.

          (b) Each Investor, by such Investor’s acceptance of the Registrable Securities, agrees to
cooperate with Alexza as reasonably requested by Alexza in connection with the preparation and
filing of any Registration Statement hereunder, unless such Investor has notified Alexza in writing
of such Investor’s election to exclude all of such Investor’s Registrable Securities from such
Registration Statement.

7

 

          (c) Each Investor agrees that, upon receipt of any notice from Alexza of the happening of any
event of the kind described in Section 3(f) or the first sentence of Section 3(e),
such Investor will immediately discontinue disposition of Registrable Securities pursuant to any
Registration Statement(s) covering such Registrable Securities until such Investor’s receipt of the
copies of the supplemented or amended prospectus contemplated by the second sentence of
Section 3(e) or receipt of notice that no supplement or amendment is required.

          (d) Each Investor covenants and agrees that it will comply with any applicable prospectus
delivery requirements of the Securities Act as applicable to it in connection with sales of
Registrable Securities pursuant to a Registration Statement.

     Section 5. Expenses of Registration. All reasonable expenses, other than underwriting
discounts and commissions, incurred in connection with registrations, filings or qualifications
pursuant to Sections 2 and 3 hereof, including, without limitation, all registration, listing and
qualifications fees, printers and accounting fees, and fees and disbursements of counsel for Alexza
shall be paid by Alexza. All underwriting discounts and selling commissions applicable to the sale
of the Registrable Securities shall be paid by the Investor(s), provided, however, that Alexza
shall reimburse the Investor(s) for the reasonable actual fees and disbursements of one legal
counsel designated by the holders of at least a majority of the Registrable Securities in
connection with registration, filing or qualification pursuant to Sections 2 and 3 of this
Agreement, which amount shall be limited to $25,000 in total over the term of this Agreement.

     Section 6. Indemnification. In the event any Registrable Securities are included in a
Registration Statement under this Agreement:

          (a) To the fullest extent permitted by law, Alexza will, and hereby does, indemnify and hold
harmless each Investor, the directors, officers, partners, members, employees, agents,
representatives of, and each Person, if any, who controls any Investor within the meaning of the
Securities Act or the Exchange Act (each, an “Investor Indemnified Person”), against any
losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable
attorneys’ fees, amounts paid in settlement or expenses, joint or several, (collectively,
“Claims”), incurred in investigating, preparing or defending any action, claim, suit,
inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or
governmental, administrative or other regulatory agency, body or the SEC, whether pending or
threatened, whether or not an Indemnified Person is or may be a party thereto (“Indemnified
Damages”), to which any of them may become subject to the extent that such Claims (or actions
or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based
upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration
Statement or any post-effective amendment thereto or in any filing made in connection with the
qualification of the offering under the securities or other “blue sky” laws of any jurisdiction in
which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged
omission to state a material fact required to be stated therein or necessary to make the statements
therein not misleading; (ii) any untrue statement or alleged untrue statement of a material fact
contained in any

8

 

preliminary prospectus if used prior to the Effective Registration Date of such Registration
Statement, or contained in any free-writing prospectus or in the final prospectus (as amended or
supplemented, if Alexza files any amendment thereof or supplement thereto with the SEC) or the
omission or alleged omission to state therein any material fact necessary to make the statements
made therein, in the light of the circumstances under which the statements therein were made, not
misleading; (iii) any violation or alleged violation by Alexza of any federal, state or common law,
rule or regulation applicable to Alexza in connection with any Registration Statement, prospectus
or any preliminary prospectus, any amendment or supplement thereto, or the issuance of any
Registrable Securities to Holdings; or (iv) any material violation of this Agreement (the matters
in the foregoing clauses (i) through (iv) being, collectively,
“Violations”). Subject to Section 6(c), Alexza shall reimburse the Investor
Indemnified Persons, promptly as such expenses are incurred and are due and payable, for any legal
fees or other reasonable expenses incurred by them in connection with investigating or defending
any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(a): (A) shall not apply to a Claim by an Investor
Indemnified Person arising out of or based upon a Violation that occurs in reliance upon and in
conformity with information furnished in writing to Alexza by or on behalf of any such Investor
Indemnified Person expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto if such information was timely made
available by Alexza pursuant to Section 3(c); (B) with respect to any preliminary
prospectus, shall not inure to the benefit of any such Person from whom the Person asserting any
such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of
any Person controlling such Person) if the untrue statement or omission of material fact contained
in the preliminary prospectus was corrected in the prospectus, as then amended or supplemented, if
such prospectus was timely made available by Alexza pursuant to Section 3(d), and the
Investor Indemnified Person was promptly advised in writing not to use the incorrect prospectus
prior to the use giving rise to a violation and such Investor Indemnified Person, notwithstanding
such advice, used it or failed to deliver the correct prospectus as required by the Securities Act
and such correct prospectus was timely made available pursuant to Section 3(d); (C) shall
not be available to the extent such Claim is based on a failure of the Investor Indemnified Person
to deliver or to cause to be delivered the prospectus made available by Alexza, including a
corrected prospectus, if such prospectus or corrected prospectus was timely made available by
Alexza pursuant to Section 3(d); and (D) shall not apply to amounts paid in settlement of
any Claim if such settlement is effected without the prior written consent of Alexza, which consent
shall not be unreasonably withheld or delayed. Such indemnity shall remain full force and effect
regardless of any investigation made by or on behalf of the Investor Indemnified Person and shall
survive the transfer of the Registrable Securities by the Investor(s) pursuant to
Section 9.

          (b) In connection with any Registration Statement in which an Investor is participating, each
such Investor agrees to severally and not jointly indemnify, and hold harmless, to the same extent
and in the same manner as is set forth in Section 6(a), Alexza, each of its directors, each
of its officers who signs the Registration Statement, each Person, if any, who controls Alexza
within the meaning of the Securities

9

 

Act or the Exchange Act, and Alexza’s general counsel to the extent that such counsel delivers
one or more legal opinions in conjunction with the preparation and filing of the Registration
Statement (each, a “Company Indemnified Person”), against any Claim or Indemnified Damages
to which any of them may become subject, under the Securities Act, the Exchange Act or otherwise,
insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each
case to the extent, and only to the extent, that such Violation occurs in reliance upon and in
conformity with written information furnished to Alexza by such Investor expressly for use in
connection with such Registration Statement; and, subject to Section 6(d), such Investor
will reimburse, promptly as such expenses are incurred and are due and payable, any legal or other
expenses reasonably incurred by a Company Indemnified Person in connection with investigating or
defending any such Claim; provided, however, that the indemnity agreement contained
in this Section 6(b) and the agreement with respect to contribution contained in
Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of such Investor, which consent shall not be
unreasonably withheld or delayed; provided, further, however, that an Investor shall be liable
under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not
exceed the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant
to such Registration Statement. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such Company Indemnified Person and shall survive the
transfer of the Registrable Securities by the Investor(s) pursuant to Section 9.
Notwithstanding anything to the contrary contained herein, the indemnification agreement contained
in this Section 6(b) with respect to any preliminary prospectus shall not inure to the
benefit of any Company Indemnified Person if the untrue statement or omission of material fact
contained in the preliminary prospectus was corrected on a timely basis in the prospectus, as then
amended or supplemented.

          (c) If either an Investor Indemnified Person or a Company Indemnified Person (an
“Indemnified Person”) proposes to assert a right to be indemnified under this
Section 6, such Indemnified Person shall notify either Alexza or the relevant Investor(s),
as applicable (the “Indemnifying Person”), promptly after receipt of notice of commencement
of any action, suit or proceeding against such Indemnified Person (an “Indemnified
Proceeding”) in respect of which a Claim is to be made under this Section 6, or the
incurrence or realization of any Indemnified Damages in respect of which a Claim is to be made
under this Section 6, of the commencement of such Indemnified Proceeding or of such
incurrence or realization, enclosing a copy of all relevant documents, including all papers served
and claims made, but the omission to so notify the applicable Indemnifying Person promptly of any
such Indemnified Proceeding or incurrence or realization shall not relieve (x) such Indemnifying
Person from any liability that it may have to such Indemnified Person under this Section 6
or otherwise, except, as to such Indemnifying Person’s liability under this Section 6, to
the extent, but only to the extent, that such Indemnifying Person shall have been prejudiced by
such omission, or (y) any other Indemnifying Person from liability that it may have to any
Indemnified Person under the Operative Documents.

10

 

          (d) In case any Indemnified Proceeding shall be brought against any Indemnified Person and it
shall notify the applicable Indemnifying Person of the commencement thereof as provided by
Section 6(c) and such Indemnifying Person shall be entitled to participate in, and provided
such Indemnified Proceeding involves a claim solely for money damages and does not seek an
injunction or other equitable relief against the Indemnified Person and is not a criminal or
regulatory action, to assume the defense of, such Indemnified Proceeding with counsel reasonably
satisfactory to such Indemnified Person, and after notice from such Indemnifying Person to such
Indemnified Person of such Indemnifying Person’s election so to assume the defense thereof and the
failure by such Indemnified Person to object to such counsel within ten (10) Business Days
following its receipt of such notice, such Indemnifying Person shall not be liable to such
Indemnified Person for legal or other expenses related to such Indemnified Proceedings incurred
after such notice of election to assume such defense except as provided below and except for the
reasonable costs of investigating, monitoring or cooperating in such defense subsequently incurred
by such Indemnified Person reasonably necessary in connection with the defense thereof. Such
Indemnified Person shall have the right to employ its counsel in any such Indemnified Proceeding,
but the fees and expenses of such counsel shall be at the expense of such Indemnified Person
unless:

               (i) the employment of counsel by such Indemnified Person at the expense of the applicable
Indemnifying Person has been authorized in writing by such Indemnifying Person;

               (ii) such Indemnified Person shall have reasonably concluded in its good faith (which
conclusion shall be determinative unless a court determines that such conclusion was not reached
reasonably and in good faith) that there is or may be a conflict of interest between the applicable
Indemnifying Person and such Indemnified Person in the conduct of the defense of such Indemnified
Proceeding or that there are or may be one or more different or additional defenses, claims,
counterclaims, or causes of action available to such Indemnified Person (it being agreed that in
any case referred to in this clause (ii) such Indemnifying Person shall not have the right
to direct the defense of such Indemnified Proceeding on behalf of the Indemnified Person);

               (iii) the applicable Indemnifying Person shall not have employed counsel reasonably acceptable
to the Indemnified Person, to assume the defense of such Indemnified Proceeding within a reasonable
time after notice of the commencement thereof; provided, however, that (A) this
clause (iii) shall not be deemed to constitute a waiver of any conflict of interest that
may arise with respect to any such counsel, and (B) an Indemnified Person may not invoke this
clause (iii) if such Indemnified Person failed to timely object to such counsel pursuant to
the first paragraph of this Section 6(d) above (it being agreed that in any case referred
to in this clause (iii) such Indemnifying Party shall not have the right to direct the
defense of such Indemnified Proceeding on behalf of the Indemnified Party); or

               (iv) any counsel employed by the applicable Indemnifying Person shall fail to timely commence
or reasonably conduct the defense of

11

 

such Indemnified Proceeding, and such failure has prejudiced (or is in immediate danger of
prejudicing) the outcome of such Indemnified Proceeding (it being agreed that in any case referred
to in this clause (iv) such Indemnifying Party shall not have the right to direct the
defense of such Indemnified Proceeding on behalf of the Indemnified Party);

in each of which cases the fees and expenses of counsel for such Indemnified Person shall be at the
expense of such Indemnifying Person. Only one counsel shall be retained by all Indemnified Persons
with respect to any Indemnified Proceeding, unless counsel for any Indemnified Person reasonably
concludes in good faith (which conclusion shall be determinative unless a court determines that
such conclusion was not reached reasonably and in good faith) that there is or may be a conflict of
interest between such Indemnified Person and one or more other Indemnified Persons in the conduct
of the defense of such Indemnified Proceeding or that there are or may be one or more different or
additional defenses, claims, counterclaims, or causes or action available to such Indemnified
Person.

          (e) Without the prior written consent of such Indemnified Person, such Indemnifying Person
shall not settle or compromise, or consent to the entry of any judgment in, any pending or
threatened Indemnified Proceeding, unless such settlement, compromise, consent or related judgment
(i) includes an unconditional release of such Indemnified Person from all liability for Losses
arising out of such claim, action, investigation, suit or other legal proceeding, (ii) provides for
the payment of money damages as the sole relief for the claimant (whether at law or in equity),
(iii) involves no admission of fact adverse to such Indemnified Person or finding or admission of
any violation of law or the rights of any Person by the Indemnified Person, and (iv) is not in the
nature of a criminal or regulatory action. No Indemnified Person shall or compromise, or consent
to the entry of any judgment in, any pending or threatened Indemnified Proceeding (A) in respect of
which any payment would result hereunder or under any other Operative Document, (B) which includes
an injunction that will adversely affect any Indemnifying Person, (C) which involves an admission
of fact adverse to any Indemnifying Person or finding or admission of any violation of law or the
rights of any Person by the Indemnifying Person, or (D) which is in the nature of a criminal or
regulatory action, without the prior written consent of the Indemnifying Person, such consent not
to be unreasonably conditioned, withheld or delayed.

          (f) The indemnification required by this Section 6 shall be made by periodic payments
of the amount of Claims during the course of the investigation or defense, as and when Indemnified
Damages are incurred.

     Section 7. Contribution. To the extent any indemnification by an Indemnifying Person
is prohibited or limited by law, such Indemnifying Person agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section 6 to the
fullest extent permitted by law; provided, however, that: (i) no Person involved in
the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within
the meaning Section 11(f) of the Securities Act) in connection with such sale shall be entitled to
contribution from any Person involved in such sale of Registrable Securities who was not guilty of
fraudulent

12

 

misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be
limited in amount to the net amount of proceeds received by such seller from the sale of such
Registrable Securities pursuant to such Registration Statement.

     Section 8. Reports Under The Exchange Act. With a view to making available to the
Investor(s) the benefits of Rule 144 promulgated under the Securities Act or any other similar rule
or regulation of the SEC that may at any time permit the Investor(s) to sell securities of Alexza
to the public without registration (“Rule 144”), Alexza agrees to use commercially
reasonable efforts to:

          (a) make and keep public information available, as those terms are understood and defined in
Rule 144;

          (b) file with the SEC in a timely manner all reports and other documents required of Alexza
under the Securities Act and the Exchange Act so long as Alexza remains subject to such
requirements and the filing of such reports and other documents is required for the applicable
provisions of Rule 144; and

          (c) furnish to each Investor so long as such Investor owns Registrable Securities, promptly
upon request, (i) a written statement by Alexza, if true, that it has complied with the reporting
requirements of Rule 144, the Securities Act and the Exchange Act, (ii) a copy of the most recent
annual or quarterly report of Alexza and such other reports and documents so filed by Alexza, and
(iii) such other information as may be reasonably requested to permit the Investor(s) to sell such
securities pursuant to Rule 144 without registration.

     Section 9. Assignment of Registration Rights. The rights under this Agreement with
respect to the Warrant Related Registrable Securities shall be automatically assignable by the
Investor(s) to any transferee of all or at least 30,000 shares of such Investor’s Registrable
Securities (or if an Investor shall hold less than 30,000 such shares, then a transfer of all such
shares) if: (i) the Investor agrees in writing with the transferee or assignee to assign such
rights, and a copy of such agreement is furnished to Alexza within a reasonable time after such
assignment; (ii) Alexza is, within a reasonable time after such transfer or assignment, furnished
with written notice of (A) the name and address of such transferee or assignee, and (B) the
securities with respect to which such registration rights are being transferred or assigned;
(iii) immediately following such transfer or assignment the further disposition of such securities
by the transferee or assignee is restricted under the Securities Act and applicable state
securities laws; (iv) at or before the time Alexza receives the written notice contemplated by
clause (ii) of this sentence the transferee or assignee agrees in writing with Alexza to be
bound by all of the provisions contained herein and has provided Alexza with a completed Selling
Stockholder Questionnaire; and (v) such transfer shall have been made in accordance with the
applicable transfer requirements set forth in Article VI of the Warrant Purchase Agreement.

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     Section 10. Amendment.

          (a) The terms of this Agreement shall not be altered, modified, amended, waived or
supplemented in any manner whatsoever except by a written instrument signed by each of (i) Alexza
and (ii) Investor(s) holding a majority of the Registrable Securities (other than in the case of
any alteration, modification, amendment, waiver or supplement which affects any individual Investor
in a manner that is less favorable or more detrimental to such Investor than to the other
Investor(s) solely based on the face of such alteration, modification, amendment, waiver or
supplement and without regard to the number of Registrable Securities held by such Investor, in
which case, such alteration, modification, amendment, waiver or supplement must also be approved by
such less favorably or more detrimentally treated Investor).

          (b) Notwithstanding Section 10(a), any party hereto may waive, solely with respect to
itself, any one or more of its rights hereunder without the consent of any other party hereto;
provided that no such waiver shall be effective unless set forth in a written instrument
executed by the party against whom such waiver is to be effective.

     Section 11. Miscellaneous.

          (a) A Person is deemed to be a holder of Registrable Securities whenever such Person owns or
is deemed to own of record such Registrable Securities. If Alexza receives conflicting
instructions, notices or elections from two or more Persons with respect to the same Registrable
Securities, Alexza shall act upon the basis of instructions, notice or election received from the
such record owner of such Registrable Securities.

          (b) Any notice, request, demand, waiver, consent, approval or other communication which is
required or permitted to be given to any Party shall be in writing addressed to the Party at its
address set forth below and shall be deemed given (i) when delivered to the Party personally, (ii)
if sent to the Party by facsimile transmission (promptly followed by a hard-copy delivered in
accordance with this Section 11(b)), when the transmitting Party obtains written proof of
transmission and receipt; provided, however, that notwithstanding the foregoing, any communication
sent by facsimile transmission after 5:00 PM (receiving Party’s time) or not on a Business Day
shall not be deemed received until the next Business Day, (iii) when delivered by next Business Day
delivery by a nationally recognized courier service, or (iv) if sent by registered or certified
mail, when received, provided postage and registration or certification fees are prepaid and
delivery is confirmed by return receipt:

If to Alexza:

Alexza Pharmaceuticals, Inc.

2091 Stierlin Court

Mountain View, CA 94043

Attn: August J. Moretti

Facsimile: (650) 944-7999

14

 

with a copy to:

Cooley Godward Kronish LLP

380 Interlocken Crescent

Suite 900

Broomfield, CO 80021

Attn: Brent D. Fassett, Esq.

Facsimile: (720) 566-4099

If to Holdings:

Symphony Allegro Holdings LLC

7361 Calhoun Place, Suite 325

Rockville, MD 20855

Attn: Robert L. Smith, Jr.

Fax: (301) 762-6154

with a copy to:

Symphony Capital Partners, L.P.

875 Third Avenue, 18th Floor

New York, NY 10022

Attn: Mark Kessel

Fax: (212) 632-5401

and

Symphony Strategic Partners, LLC

875 Third Avenue, 18th Floor

New York, NY 10022

Attn: Mark Kessel

Fax: (212) 632-5401

or to such other address as such party may from time to time specify by notice given in the manner
provided herein to each other party entitled to receive notice hereunder.

          (c) This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York; except to the extent that this Agreement pertains to the internal
governance of Holdings, and to such extent this Agreement shall be governed and construed in
accordance with the laws of the State of Delaware.

          (d) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of any New York State court, any Delaware State
court or federal court of the United States of America sitting in the City of New York, Borough of
Manhattan or Wilmington, Delaware, and any appellate court from any jurisdiction thereof, in any
action or

15

 

proceeding arising out of or relating to this Agreement, or for recognition or enforcement of
any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in any such New York
State court, any such Delaware State court or, to the fullest extent permitted by law, in such
federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect any right that any
party hereto may otherwise have to bring any action or proceeding relating to this Agreement.

          (e) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement in any New
York State or federal court, or any Delaware State or Federal court. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court. Each of the parties
hereby consent to service of process by mail.

          (f) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT.

          (g) Entire Agreement. This Agreement (including any Annexes, Schedules, Exhibits or
other attachments hereto) constitutes the entire agreement between the parties hereto with respect
to the matters covered hereby and supersedes all prior and contemporaneous agreements,
correspondence, discussion and understandings with respect to such matters between the parties
hereto, excluding the Operative Documents.

          (h) Successors; Assignment; Counterparts.

               (i) Nothing expressed or implied herein is intended or shall be construed to confer upon or to
give to any Person, other than the parties hereto, any right, remedy or claim under or by reason of
this Agreement or of any term, covenant or condition hereof, and all the terms, covenants,
conditions, promises and agreements contained herein shall be for the sole and exclusive benefit of
the parties hereto and their successors and permitted assigns provided, however,
that, subject to the requirements of Section 9, this Agreement shall inure to the benefit
of and be binding upon the permitted successors and assigns of each of the parties hereto.

               (ii) This Agreement may be executed in one or more counterparts, each of which, when executed,
shall be deemed an original but all of which taken together shall constitute one and the same
Agreement.

16

 

          (i) Each party shall do and perform, or cause to be done and performed, all such further acts
and things, and shall execute and deliver all such other agreements, certificates, instruments and
documents, as any other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

          (j) All consents and other determinations required to be made by the Investor(s) pursuant to
this Agreement shall be made, unless otherwise specified in this Agreement, by Investor(s) holding
at least a majority of the Registrable Securities.

          (k) The Original Agreement is hereby amended and superseded in its entirety and restated
herein. Such amendment and restatement is effective upon execution of this Agreement by the
parties hereto. Upon such execution, all provisions of, rights granted and covenants made in the
Original Agreement are hereby superseded in their entirety by the provisions hereof and shall have
no further force or effect provided, however, that, if the Purchase Option Closing shall not have
occurred by October 15, 2009, this Agreement shall terminate and become null and void ab initio and
the Original Agreement shall simultaneously be reinstated in its entirety and supersede this
Agreement in its entirety.

[SIGNATURES FOLLOW ON NEXT PAGE]

17

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers or other representatives thereunto duly authorized, as of the date first above
written.

	 	 	 	 	 
	 	ALEXZA PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/ Thomas B. King
 	 
	 	 	Name:  	Thomas B. King 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	 	SYMPHONY ALLEGRO HOLDINGS LLC
	 
	 	 	 	 
	 

	 	By:
	 	Symphony Capital Partners, L.P.,
	 

	 	 	 	its Manager
	 
	 	 	 	 
	 

	 	By:
	 	Symphony Capital GP, L.P.,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Symphony GP, LLC,
	 

	 	 	 	its General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	                        /s/Mark Kessel
 	 
	 	 	Name:  	Mark Kessel 	 
	 	 	Title:  	Managing Member 	 
	 

Solely for purposes of the consent required under

Section 10 of the Original Agreement:

SYMPHONY CAPITAL PARTNERS, L.P.

	 	 	 	 	 
	By:

	 	Symphony Capital GP, L.P.,	 	 
	its General Partner	 	 
	 
	 	 	 	 
	By:

	 	Symphony GP, LLC,	 	 
	its General Partner	 	 
	 
	 	 	 	 
	By:

	 	/s/ Mark Kessel	 	 
	Name:

	 	 

Mark Kessel
	 	 
	Title:

	 	Managing Member	 	 

Signature Page to Amended and Restated Registration Rights Agreement

 

 

EXHIBIT A

FORM OF SELLING STOCKHOLDER QUESTIONNAIRE

NOTICE

     The undersigned beneficial owner (the “Selling Securityholder”) of Registrable
Securities hereby gives notice to Alexza Pharmaceuticals, Inc. (the “Company”) of its
intention to sell or otherwise dispose of Registrable Securities beneficially owned by it and
listed below in Item 3 (unless otherwise specified under such Item 3) pursuant to
the Registration Statement, pursuant to the terms of the Amended and Restated Registration Rights
Agreement (the “Registration Rights Agreement”) dated as of June 15, 2009, by and between
Alexza and Symphony Allegro Holdings LLC (“Holdings”). Capitalized terms used but not
defined herein are used as defined in Registration Rights Agreement.

     The undersigned hereby gives notice to the Company of its intention to sell the Registrable
Securities listed in Item 3 below, pursuant to the Registration Statement and, provides the
following information to the Company and represents and warrants that such information is accurate
and complete:

QUESTIONNAIRE

	1.	 	Full legal name of Selling Securityholder:                                         

	 	(a)	 	Full legal name of registered holder of the Registrable Securities (if not
the same as (a) above) through which Registrable Securities listed in Item
3 below are held:
	 
	 	(b)	 	Full legal name of DTC participant (if applicable and if not the same as
(b) above) through which Registrable Securities listed in Item 3 below
are held:                                         
	 
	 	(c)	 	Status (yes/no) of Selling Securityholder as a registered broker-dealer or an
affiliate of a registered broker-dealer (please describe to the extent applicable):
                                        

	2.	 	Address for notices to Selling Securityholder:                                         
	 
	 	 	Telephone:                                         
	 
	 	 	Fax:                                         
	 
	 	 	Contact Person:                                         

	3.	 	Beneficial Ownership of Registrable Securities:

	 	(a)	 	Type and number of Registrable Securities beneficially owned:
                                        
	 
	 	(b)	 	CUSIP No(s). of such Registrable Securities beneficially owned:

 

 

	4.	 	Beneficial ownership of other securities of the Company owned by the Selling Securityholder.

          Except as set forth below in this Item 4, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable Securities listed
above in Item 3.

	 	(a)	 	Type and amount of other securities beneficially owned by the Selling
Securityholder:
	 
	 	(b)	 	CUSIP No(s). of such other securities beneficially owned:

	5.	 	Relationships with the Company:

          Except as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% or more of the equity securities of the
undersigned) has held any position or office or has had any other material relationship with the
Company (or its predecessors or affiliates) during the past three years.

State any exceptions here:

      

      

	6.	 	Plan of Distribution:

          Except as set forth below, the undersigned (including its donees, distributees or pledgees)
intends to distribute the Registrable Securities listed above in Item 3 pursuant to the
Registration Statement only as follows (if at all). Such Registrable Securities may be sold from
time to time directly by the undersigned or, alternatively, through underwriters, broker-dealers or
agents. If the Registrable Securities are sold through underwriters, broker-dealers or agents, the
Selling Securityholder will be responsible for any related underwriting discounts or commissions or
agents’ commissions. Such Registrable Securities may be sold in one or more transactions at fixed
prices, at prevailing market prices at the time of sale, at varying prices determined at the time
of sale or at negotiated prices. The selling stockholders may sell their shares by one or more of
or a combination of the following methods: (i) purchases by a broker-dealer as principal and resale
by such broker-dealer for its own account pursuant to this prospectus; (ii) ordinary brokerage
transactions and transactions in which the broker solicits purchasers; (iii) block trades in which
the broker-dealer so engaged will attempt to sell the shares as agent but may position and resell a
portion of the block as principal to facilitate the transaction; (iv) an over-the-counter
distribution in accordance with the rules of the Nasdaq Global Market; (v) in privately negotiated
transactions; and (vi) in options transactions. The undersigned may also sell Registrable
Securities short and

2

 

deliver Registrable Securities to close out short positions, or loan or pledge Registrable
Securities to broker-dealers that in turn may sell such securities.

State any exceptions here:

      

      

     Note: In no event will such method(s) of distribution take the form of an underwritten
offering of the Registrable Securities without the prior agreement of the Company.

     The undersigned acknowledges its obligation to comply with the provisions of the Exchange Act
and the rules thereunder relating to stock manipulation, particularly Regulation M thereunder (or
any successor rules or regulations), in connection with any offering of Registrable Securities
pursuant to the Registration Rights Agreement. The undersigned agrees that neither it nor any
person acting on its behalf will engage in any transaction in violation of such provisions.

     In the event that the Selling Securityholder transfers all or a portion of the Registrable
Securities listed in Item 3 above after the date on which such information is provided to
the Company, the Selling Securityholder agrees to notify the transferee(s) at the time of the
transfer of its rights and obligations under this Questionnaire and the Registration Rights
Agreement.

     The Selling Securityholder hereby acknowledges its obligations under the Registration Rights
Agreement to indemnify and hold harmless certain persons as set forth therein.

     Pursuant to the Registration Rights Agreement, the Company has agreed under certain
circumstances to indemnify the Selling Securityholder against certain liabilities.

     In accordance with the undersigned’s obligation under the Registration Rights Agreement to
provide such information as may be required by law for inclusion in the Registration Statement, the
undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information
provided herein that may occur subsequent to the date hereof at any time while the Registration
Statement remains effective, including, without limitation, any change in the undersigned’s
beneficial ownership of Registrable Securities.

     All notices hereunder and pursuant to the Registration Rights Agreement shall be made in
writing to the Selling Securityholder at the address set forth in Section 2 above, and to
the Company at the address set forth below.

     By signing below, the undersigned consents to the disclosure of the information contained
herein in its answers to Items 1 through 6 above and the inclusion of such

3

 

information in the Registration Statement and the related prospectus. The undersigned
understands that such information will be relied upon by the Company in connection with the
preparation or amendment of the Registration Statement and the related prospectus.

     Once this Questionnaire is executed by the Selling Securityholder and delivered to the
Company, the terms of this Questionnaire, and the representations and warranties contained herein,
shall be binding on, shall inure to the benefit of and shall be enforceable by the respective
successors, heirs, personal representatives and assigns of the Company and the Selling
Securityholder (with respect to the Registrable Securities beneficially owned by such Selling
Securityholder and listed in Item 3 above). This Agreement shall be governed in all
respects by the laws of the State of New York.

     IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Questionnaire to
be executed and delivered either in person or by its duly authorized agent.

	 	 	 	 	 	 	 
	Dated:                                         	 	Beneficial Owner:                                        	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

PLEASE RETURN THE COMPLETED AND EXECUTED QUESTIONNAIRE

TO ALEXZA PHARMACEUTICALS, INC. AT:

2091 Stierlin Court

Mountain View, CA 94043

Attn: General Counsel

WITH A COPY TO:

Cooley Godward Kronish LLP

380 Interlocken Crescent

Suite 900

Broomfield, CO 80021

Attn: Brent D. Fassett, Esq.

4

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