Document:

exv10w4

Exhibit 10.4

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

CONFIDENTIAL

AMENDMENT NO. 1 TO MANUFACTURING AND SUPPLY AGREEMENT

This Amendment No. 1 to Manufacturing and Supply Agreement (“Amendment”) is made and entered into
as of June 30, 2010 (the “Effective Date of the Amendment”) by and between Alexza Pharmaceuticals,
Inc., a Delaware corporation having an address at 2091 Stierlin Court, Mountain View, CA 94043
(“Alexza”) and Autoliv ASP, Inc., an Indiana corporation having an address at 3350 Airport Road,
Ogden, Utah 84405 (“Autoliv”).

WHEREAS Alexza and Autoliv are parties to a Manufacturing and Supply Agreement dated November 2,
2007 (the “Agreement”);

WHEREAS the parties now wish to amend the Agreement;

NOW, THEREFORE, in consideration of the foregoing and the covenants and promises contained in this
Amendment and in accordance with and subject to the terms and conditions specified below, the
parties agree as follows:

Amendment of the Agreement

The parties hereby agree to amend the Agreement as of the Effective Date of the Amendment as
provided below. Capitalized terms used in this Amendment that are not otherwise defined herein
shall have the meaning ascribed to them in the Agreement.

	 	1.	 	Section 1.31 (“Pilot Production Line”) is hereby deleted and replaced with the
following:

	 	 	 	“‘Commercial Production Line’ means a production line for the commercial manufacture
of the Chemical Heat Packages, and all modifications thereof, which is located at
Autoliv’s manufacturing site and is comprised of two (2) cells, each of which has a
nominal production capacity of [ * ] ([ * ]) Chemical Heat Packages per year. If
Autoliv does not achieve such output (i.e., each cell fabricated hereunder shall
have a nominal production capacity of [ * ] ([ * ]) Chemical Heat Packages per year)
following the completion, installation and qualification of each cell, then Autoliv
shall, at no additional cost to Alexza, have additional run time (hours) in order to
achieve such output.”

	 	2.	 	The following sentence is hereby added to Section 2.1 after the first sentence:

	 	 	 	“If Alexza assigns the Agreement in whole or in part, or any interest hereunder, to
one or more Third Parties to whom Alexza has granted Finished Product marketing
rights (each, a “Marketing Partner”) pursuant to Section 13.1, or if Alexza
delegates or subcontracts

1.

 

CONFIDENTIAL

	 	 	 	any or all of its rights and/or obligations under the Agreement to one or more
Marketing Partners pursuant to Section 2.2, then the parties further agree that
Autoliv shall manufacture, assemble and test, the Chemical Heat Packages in
conformance with the Specifications and in compliance with the terms and conditions
of this Agreement (including the Quality Terms), for sale solely to: (i) the
Marketing Partner, if Alexza assigns the entire Agreement to such Marketing Partner
or if Alexza delegates or subcontracts all of its rights and obligations under the
Agreement to such Marketing Partner, or (ii) Alexza and one or more Marketing
Partners, if Alexza only assigns the Agreement in part, or any interest hereunder,
to one or more Marketing Partners, or only delegates or subcontracts some of its
rights and/or obligations under the Agreement to one or more Marketing Partners.”

	 	3.	 	Section 2.2 is hereby amended in its entirety as follows:

	 	 	 	“Non-delegable Responsibility. Each party’s rights and obligations under
this Agreement may not be subcontracted to any Third Party, without the prior
written consent of the other party, except that Alexza may subcontract or delegate
any or all of its rights and/or obligations under the Agreement to one or more
Marketing Partners without the prior written consent of Autoliv; provided, however,
that Alexza will remain liable and responsible for the performance and observance of
all its duties and obligations hereunder.”

	 	4.	 	Section 2.5 is hereby amended as follows:

	 	(i)	 	The first sentence of Section 2.5(a) is hereby amended by the deletion
of the words “by mutual written agreement”.
	 
	 	(ii)	 	The first sentence of Section 2.5(b) is hereby amended by the deletion
of the words “by mutual written agreement”, and by the addition of the following
words to the end of the sentence: “or unless Alexza assigns the Agreement in whole
or in part, or any interest hereunder, to one or more Marketing Partners pursuant
to Section 13.1, or Alexza delegates or subcontracts any or all of its rights
and/or obligations under the Agreement to one or more Marketing Partners pursuant
to Section 2.2.”

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

2.

 

CONFIDENTIAL

	 	5.	 	Section 5.4 is hereby amended in its entirety as follows:
	 
	 	 	 	Expense Reimbursement.

	 	(i)	 	The parties acknowledge that Autoliv has made a substantial commitment
pursuant to the terms of the Development Agreement and will make a substantial
investment in capital equipment, personnel and facilities to provide up to three
(3) Commercial Production Lines with a total nominal capacity of [ * ] ([ * ])
Chemical Heat Packages per year pursuant to the terms of this Agreement. Alexza
shall compensate Autoliv for its investment in capital equipment, personnel and
facilities to provide up to three (3) Commercial Production Lines described above
as set forth in this Section 5.4.
	 
	 	(ii)	 	Upon the signing of this Amendment by both parties, Alexza shall pay
Autoliv four million dollars ($4,000,000) for the completion, installation and
qualification of the first cell of the first Commercial Production Line, and as
payment in full for Autoliv’s investment in capital equipment, personnel and
facilities through January 2010 in support of its commercialization efforts to
manufacture and supply Chemical Heat Packages for commercial use, including all
materials, components, supplies and services provided by or on behalf of Autoliv in
connection therewith. The parties shall, within thirty (30) days after the payment
by Alexza to Autoliv of the four million dollars ($4,000,000) provided for herein,
mutually agree in writing upon the completion, installation and qualification
schedule for the second and final cell of the first Commercial Production Line in
accordance with the then current production forecast for the Chemical Heat
Packages. Upon the payment by Alexza to Autoliv of the four million dollars
($4,000,000) provided for herein, Alexza shall own all right, title and interest in
and to the first cell of the first Commercial Production Line, free and clear of
any and all claims, encumbrances, liens and security interests, and Autoliv hereby
assigns its entire right, title and interest in and to the first cell of the first
Commercial Production Line, and all manufacturers warranties, guarantees and
indemnitees, to Alexza.
	 
	 	(iii)	 	Concurrently with entering into this Amendment, Alexza shall issue to
Autoliv an unsecured promissory note in the amount of four million dollars
($4,000,000) (the “Note”). Upon (a) the completion, installation and qualification
of the second cell of the first Commercial Production Line, and (b) the final
payment by Alexza to Autoliv

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

3.

 

CONFIDENTIAL

	 	 	 	under the Note, Alexza shall own all right, title and interest in and to the
second cell of the first Commercial Production Line, free and clear of any and
all claims, encumbrances, liens and security interests, and Autoliv hereby
assigns its entire right, title and interest in and to the second cell of the
first Commercial Production Line, and all manufacturers warranties, guarantees
and indemnitees, to Alexza. Autoliv shall cease work on the second cell of the
first Commercial Production Line upon the receipt of written notice from Alexza
to that effect. If Alexza notifies Autoliv to cease work on the second cell of
the first Commercial Production Line, or if for any reason the second cell of
the first Commercial Production Line is not completed, the parties will discuss
in good faith and agree upon an equitable reduction of the principal amount of
the Note.
	 
	 	(iv)	 	In the event and to the extent that Alexza requests in writing that
Autoliv shall provide any subsequent cells or Commercial Production Lines following
the completion, installation and qualification of the entire first Commercial
Production Line, provided that Alexza’s written request gives Autoliv a reasonable
amount of time to fabricate any such subsequent cells or Commercial Production
Lines in order to meet Alexza’s production demand for Chemical Heat Packages,
Autoliv shall complete, install and fully qualify such subsequent cells and
Commercial Production Lines in accordance with the terms and conditions of this
Agreement, subject to the following:

	 	(a)	 	Autoliv estimates that the completion,
installation and full qualification of each of the second and third
Commercial Production Lines will cost two million four hundred thousand
dollars ($2,400,000), which amount is inclusive of all fees, taxes,
tariffs, customs, duties and other charges and assessments. Therefore,
if Autoliv shall provide any subsequent cells or Commercial Production
Lines, then Autoliv shall invoice Alexza, on a milestone basis, for
Autoliv’s actual fully burdened cost of each such cell or Commercial
Production Line (as the case may be), not to exceed a total cost to
Alexza of two million four hundred thousand dollars ($2,400,000) for
the completion, installation and full qualification of each of the
second and third Commercial Production Lines. For the purposes hereof,
“milestone basis” means that Autoliv will invoice

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

4.

 

CONFIDENTIAL

	 	 	 	Alexza, for each additional Commercial Production Line: (1) a
deposit of thirty percent (30%) of the estimated total cost, assuming
the total cost will be two million four hundred thousand dollars
($2,400,000); (2) twenty-five percent (25%) of the estimated total
cost after all of the materials for such Commercial Production Line
have been purchased by Autoliv, as evidenced by Autoliv’s receipts
therefor, copies of which have been furnished to Alexza with the
invoice for the second milestone payment; (3) twenty-five percent
(25%) of the estimated total cost after all of the assembly of the
Commercial Production Line has been completed and debugged, as
evidenced by documentation of the completion of qualification of the
Commercial Production Line, copies of which have been furnished to
Alexza with the invoice for the third milestone payment; and (4)
twenty percent (20%) of the estimated total cost after final
production release of the Commercial Production Line, which shall be
deemed to have occurred following the completion of the design review
for the Commercial Production Line to Alexza’s reasonable
satisfaction. If the actual total cost of the completion,
installation and full qualification of the second or third Commercial
Production Line is less than two million four hundred thousand
dollars ($2,400,000), and the total of the milestone payments
described herein for the second or third Commercial Production Line
exceeds such actual total cost because such milestone payments were
based on an estimated total cost of two million four hundred thousand
dollars ($2,400,000) per Commercial Production Line, then either the
milestone payments shall be adjusted by the parties to reflect the
actual total cost, or Autoliv shall promptly refund to Alexza any
amounts paid by Alexza in excess of the actual total cost.
	 
	 	(b)	 	For the purposes hereof, Autoliv’s actual fully
burdened cost means the purchase price of the Commercial Production
Line, the cost of materials for the Commercial Production Line and the
fully burdened labor cost for the completion, installation and
qualification of the Commercial Production Line. Autoliv shall
maintain accurate books and records in sufficient detail to permit
Alexza to verify Autoliv’s actual fully

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

5.

 

CONFIDENTIAL

	 	 	 	burdened cost, and Alexza shall have the right to verify Autoliv’s
actual fully burdened cost in accordance with Section 5.8.
	 
	 	(c)	 	Alexza shall pay Autoliv within forty-five (45)
days after Alexza receives an invoice from Autoliv for payment in
relation to a second or third Commercial Production Line as provided
for in the preceding subsections (1) and (2), in each case accompanied
by documentation evidencing that the milestone for which such payment
is to be made has been achieved. Upon the payment by Alexza to Autoliv
of the final milestone payment for a Commercial Production Line, Alexza
shall own all right, title and interest in and to the Commercial
Production Line with respect to which such payment has been made, free
and clear of any and all claims, encumbrances, liens and security
interests, and Autoliv hereby assigns its entire right, title and
interest in and to such Commercial Production Line, and all
manufacturers warranties, guarantees and indemnitees, to Alexza,
subject to the terms of this Section 5.4(iv).
	 
	 	(d)	 	The parties acknowledge that under Section 5.2
of the Agreement, Autoliv has agreed to supply Alexza with one hundred
thousand (100,000) Chemical Heat Packages at no charge, in exchange for
Alexza transferring and assigning to Autoliv, Alexza’s right, title and
interest in and to the Pilot Production Line, including the associated
bridge wire welding equipment and washing system. As of the Effective
Date of the Amendment, Autoliv has supplied to Alexza approximately
seventy-five thousand (75,000) Chemical Heat Packages at no charge
under Section 5.2. Each Chemical Heat Package has a value of [ * ] ($[
* ]). The parties hereby agree that Alexza will (1) transfer and
assign only its right, title and interest in and to the Pilot
Production Line to Autoliv, (2) retain title to and sole ownership of
the associated bridge wire welding equipment and washing system, which
will be utilized in connection with the operation and use of the
Commercial Production Lines that have been fabricated, and will be
fabricated, under the Agreement and this Amendment, and (3) purchase
from Autoliv, the Resodyne mixing system and the FLIR camera/LAT
testing system. The number of

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

6.

 

CONFIDENTIAL

	 	 	 	Chemical Heat Packages that Autoliv is required to supply to Alexza
at no charge under Section 5.2 of the Agreement may be adjusted
pursuant to the following calculation:

The total of the current net book value of the associated bridge wire welding equipment, washing
system, Resodyne mixing system and the FLIR camera/LAT testing system

	 	 	 	Minus

The difference between 100,000 and the actual number of Chemical Heat Packages that have been
supplied by Autoliv to Alexza under Section 5.2 of the Agreement at no charge as of the Effective
Date of the Amendment (the “Balance”)

	 	 	 	Multiplied by $[ * ].

The result of the above calculation shall be divided by [ * ] (the “Final Number”).

	 	 	 	If the Final Number is larger than the Balance, then (A) Alexza shall
pay Autoliv an amount that is equal to the difference between the
Final Number and the Balance, multiplied by $[ * ], within forty-five
(45) days after the receipt by Alexza of an invoice therefor, and (B)
Autoliv shall not be required to supply to Alexza any more Chemical
Heat Packages at no charge under Section 5.2 of the Agreement. If
the Final Number is less than the Balance, then Autoliv shall
continue to supply to Alexza, at no charge, Chemical Heat Packages
until the Balance has been reached (i.e., when a total of 100,000
Chemical Heat Packages have been supplied by Autoliv to Alexza at no
charge under Section 5.2 of the Agreement). Alexza shall not bear
any incremental costs in connection with any bridge wire welding
equipment. However, if Autoliv is required to purchase any
additional washing systems for the Commercial Production Lines, then
Alexza shall reimburse Autoliv for the reasonable, direct, documented
out of pocket third party costs and expenses (without mark up)
incurred by Autoliv in purchasing such additional washing systems,
provided that Autoliv has purchased such additional washing systems
on a competitive bid basis and Autoliv shares documentation
evidencing the competitive bidding process that has been carried out
by Autoliv if requested by Alexza.

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

7.

 

CONFIDENTIAL

	 	(e)	 	If the Agreement terminates before the
completion, installation and full qualification of all three (3)
Commercial Production Lines, and such termination is not due to the
uncured material breach of Autoliv, then, subject to Section 10.5(d),
Alexza shall pay Autoliv the reasonable, documented, non-cancellable
and otherwise unavoidable direct out of pocket third party costs
incurred by Autoliv to purchase any materials and equipment to provide
those cells and Commercial Production Lines which have not yet been
completed, installed and fully qualified in accordance with the terms
and conditions of this Agreement, plus the reasonable, documented
costs, agreed by the parties in advance in writing, that are incurred
by Autoliv to shut down its facilities as a result of such termination,
and to transfer any technology and/or equipment from Autoliv’s
facilities to Alexza or a Third Party designee of Alexza. In no event
shall Alexza be obligated to pay Autoliv more than a total of eight
million dollars ($8,000,000) under this Section 5.4 if the Agreement is
terminated before any work has commenced in relation to the second
Commercial Production Line.
	 
	 	(f)	 	Once ownership of a Commercial Production Line
vests in Alexza hereunder, Alexza shall assume responsibility for the
costs of any capital improvements to such Commercial Production Line.

	 	6.	 	Section 5.8(a) is hereby amended in its entirety as follows:

	 	 	 	“Alexza will have the right, during normal business hours and upon at least thirty
(30) days prior notice, to have an independent audit firm selected by Alexza and
reasonably acceptable to Autoliv, audit Autoliv’s records for the preceding three
(3) years relating to Autoliv’s activities pursuant to this Agreement in order to
verify the amount for which Alexza must reimburse Autoliv in accordance with Section
3.2 or pay Autoliv in accordance with Section 5.4(ii), (iii) or (iv) as applicable,
including without limitation, to verify (by inspecting Autoliv’s records and
visiting Autoliv’s manufacturing site) that Autoliv has completed, installed and
fully qualified any one or more of the cells or Commercial Production Lines in
accordance with the terms and conditions of this Agreement, and to verify Autoliv’s
actual fully burdened cost under Section 5.4(iv)(b). For the avoidance of doubt:
(1) Alexza’s audit rights with respect to payments under

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

8.

 

CONFIDENTIAL

	 	 	 	Sections 5.4(ii), (iii) or (iv), and Autoliv’s actual fully burdened cost under
Section 5.4(iv)(b), shall commence on the Effective Date of the Amendment; and (2)
the beginning of the three (3) year period set forth hereinabove, as it pertains to
payments under Sections 5.4(ii), (iii) or (iv), and Autoliv’s actual fully burdened
cost under Section 5.4(iv)(b), shall be the Effective Date of the Amendment. In
addition, Alexza will have the right to conduct quality reviews in accordance with
the terms and conditions of the Quality Terms.”

	 	7.	 	Section 8.2 is hereby amended by the addition of the following:

	 	 	 	“Autoliv further represents, warrants and covenants that during the term hereof it
has obtained and will maintain any required permits, licenses, approvals,
registrations, certifications, exemptions or other authorizations required under any
applicable legal or regulatory requirements for the facilities where the Chemical
Heat Packages are manufactured, assembled and tested hereunder.”

	 	8.	 	Section 10.1 is hereby amended in its entirety as follows:

	 	 	 	“Term. Unless earlier terminated as provided for in this Article 10, the
term of this Agreement shall begin on the Effective Date and will continue until the
end of the Initial Term, at which time this Agreement shall automatically renew for
successive five (5) year renewal terms, unless a party has notified the other party
in writing, no less than thirty (36) months prior to the end of the Initial Term or
the then-current renewal term, that such party wishes to terminate the Agreement at
the end of the Initial Term or the then-current renewal term, as the case may be.”

	 	9.	 	Section 10.2 is hereby amended in its entirety as follows:

	 	 	 	“Termination for Convenience. After the end of the Initial Term, either
party may terminate this Agreement upon thirty-six (36) months prior written notice
to the other party for any reason or no reason, at any time, subject to Section
10.5.”

	 	10.	 	Section 10.3 is hereby amended in its entirety as follows:

	 	 	 	“Termination for Failure to Agree Upon Price. Either party may terminate
this Agreement upon thirty-six (36) months prior written notice to the other party
if the Parties fail to agree upon the purchase price for Chemical Heat Packages
pursuant to 5.1(b).”

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

9.

 

CONFIDENTIAL

	 	11.	 	Section 10.5 is hereby amended as follows:

	 	(i)	 	The prefatory language in Section 10.5(a) is hereby amended as
follows: “Upon termination of this Agreement by either party under this
Article 10:”.
	 
	 	(ii)	 	The prefatory language in Section 10.5(b) is hereby amended as
follows: “Upon termination of this Agreement by either party under this
Article 10:”.
	 
	 	(iii)	 	Section 10.5(c) is hereby amended as follows:
	 
	 	 	 	“Except as otherwise set forth in this Agreement, any termination of this
Agreement shall not relieve either party of any obligation which has accrued
prior to the effective date of such termination, which obligations shall
remain in full force and effect for the period provided therein.”

	 	12.	 	Section 13.1 is hereby amended by adding the following sentence after the first
sentence:

	 	 	 	“In addition to the foregoing, Alexza may assign this Agreement or any interest
hereunder, in whole or in part, to one or more Marketing Partners with the prior
written consent of Autoliv, which consent shall not be unreasonably withheld or
delayed.”

	 	13.	 	Exhibit C is hereby replaced in its entirety by the Exhibit C attached to this
Amendment.
	 
	 	14.	 	Miscellaneous

	 	(i)	 	Full Force and Effect. Except as expressly amended by
this Amendment, the Agreement shall remain unchanged and continue in full force
and effect as provided therein.
	 
	 	(ii)	 	Entire Agreement of the Parties. This Amendment and
the Agreement, and the Exhibits hereto and thereto, constitute the complete,
final and exclusive understanding and agreement of the parties with respect to
the subject matter of the Agreement, and supersede any and all prior or
contemporaneous negotiations, correspondence, understandings and agreements,
whether oral or written, between the parties respecting the subject matter of
the Agreement.
	 
	 	(iii)	 	Counterparts. This Amendment may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

10.

 

CONFIDENTIAL

IN WITNESS
WHEREOF, the parties hereto have executed this Amendment in duplicate originals by their authorized officers as of the Effective Date of the Amendment.

	 	 	 	 	 
	ALEXZA PHARMACEUTICALS, INC.

 	 
	By  	/s/ Christopher Kurtz 	 
	 	Print Name 	Christopher Kurtz 
	 	Title 	VP Global Supply Chain 
	 
	AUTOLIV ASP, INC.

 	 
	By  	/s/ Michael J. Ward 	 
	 	Print Name 	Michael J. Ward 
	 	Title 	President — Autoliv ASP 

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

11.

 

CONFIDENTIAL

EXHIBIT C

PURCHASE PRICE

	 	 	 
	Number of Chemical Heat Packages	 	Unit Price (in US dollars)
	[ * ]
	 	[ * ]
	[ * ]
	 	[ * ]
	[ * ]
	 	[ * ]
	[ * ]
	 	[ * ]
	[ * ]
	 	[ * ]
	[ * ]
	 	[ * ]

 

			
	[*]	 =   	Certain confidential information contained in this document, marked by brackets, has been
omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

12.exv10w5

Exhibit 10.5

CONFIDENTIAL

Unsecured Promissory Note

Dated June 30, 2010

For value received, Alexza Pharmaceuticals, Inc., a Delaware corporation (“Alexza” or “Maker”),
whose address is 2091 Stierlin Court, Mountain View, California 94043, promises to pay to the order
of Autoliv ASP, Inc., an Indiana corporation (“Autoliv” or “Payee”), whose address is 3350 Airport
Road, Ogden, UT 84405, at such place as Payee may designate, the principal sum of Four Million
Dollars ($4,000,000.00), plus interest on the unpaid principal balance from January 1, 2011 until
all amounts outstanding hereunder are paid in full at a fixed interest rate of eight percent (8%)
per annum, to be paid in lawful money of the United States in Forty-Eight (48) consecutive equal
monthly installments of principal and interest of Ninety-Seven Thousand Four Dollars and
Ninety-Nine Cents ($97,004.99).

The first monthly installment shall be due and payable on January 1, 2011 and subsequent monthly
installments shall be due and payable on the same day of each succeeding month; provided that any
payment due on a day that is not a business day shall be payable on the following business day.
Each payment may, at the option of the Payee, be calculated and applied on an assumption that such
payment would be made on its due date and that each year consists of twelve months of even
duration.

The acceptance of Payee of any payment which is less than payment in full of all amounts due and
owing at such time shall not constitute a waiver of Payee’s right to receive payment in full at
such time or at any prior or subsequent time.

Maker may, at any time, prepay in full or in part any indebtedness hereunder without penalty, which
prepayment shall be applied first to accrued but unpaid interest and then principal. If prepayment
is made in part, Maker will execute and tender, and Payee shall accept, a replacement note which
reflects the amortization of the remaining principal, plus interest, over the then-remaining
monthly installments.

This Note is issued pursuant to the terms and conditions of the Manufacturing and Supply Agreement
between Alexza and Autoliv dated November 2, 2007 as amended by Amendment No.1 thereto dated June
29, 2010 (the “MSA”), and if any amount payable hereunder is not paid when due, at the option of
Autoliv and upon written notice from Autoliv to Alexza, such failure to pay shall be deemed a
material breach of the MSA by Alexza, and Autoliv may terminate the MSA pursuant to Section 10.4(a)
of the MSA.

It is the intention of the parties hereto to comply with the applicable usury laws; accordingly, it
is agreed that, notwithstanding any provision to the contrary in this Note, in no event shall this
Note require the payment or permit the collection of interest in excess of the maximum amount
permitted by applicable law. Except as otherwise provided for herein, the Maker hereby waives
presentment, demand for payment, notice of nonpayment, protest, notice of protest, notice of

1

 

CONFIDENTIAL

dishonor, and all other notices in connection herewith, as well as filing of suit (if permitted by
law) and diligence in collecting this Note and agrees to pay all reasonable, documented expenses
incurred in collection, including Payee’s actual attorneys’ fees, upon demand.

ALEXZA PHARMACEUTICALS, INC.

	 	 	 	 	 

	By: 

	/s/ August J. Moretti
 

	 	 
	 

	Its: 
 

	CFO 	 	 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]