Document:

Exhibit 10.28

 

AMENDMENT TO PURCHASE AGREEMENT AND WAIVER

 

THIS AMENDMENT TO PURCHASE AGREEMENT AND WAIVER (the
“Amendment”)
is made as of March 19, 2004, by and between AEROGEN, INC., a Delaware
corporation (the “Company”),
Xmark Fund L.P., a Delaware Limited Partnership (“Xmark LP”), Xmark Fund, Ltd., a Cayman
Islands exempted company (together with Xmark LP, the “Lead Investor”) and
the other Investors.  Capitalized terms
not otherwise defined herein shall have the meanings ascribed to them in the
Purchase Agreement (defined below).

 

WHEREAS,
the Investors and the Company agreed to the purchase and sale of Preferred
Stock and Warrants (the “Securities”)
pursuant to that certain Purchase Agreement dated as of March 11, 2004 (the “Purchase Agreement”);

 

WHEREAS,
the obligation of the Investors to purchase the Securities at Closing is
subject to the fulfillment to the Lead Investor’s satisfaction, on or prior to
the relevant Closing Date, of certain conditions, any of which may be waived in
writing by the Lead Investor;

 

WHEREAS,
one of the conditions to the Closing is that the Rights Plan Termination shall
have been approved by the Company’s Board of Directors, the Company shall have
taken all of the steps specified in Section 23(c) or Section 23(d) of the Rights
Plan, and the Company shall have entered into a written agreement with the
Rights Agent (as defined in the Rights Plan) providing for the termination of
the Rights Plan immediately, without further action or deed, upon completion of
the redemption procedures specified in Section 23 of the Rights Plan;

 

WHEREAS,
the Company has covenanted and agreed that the Rights Plan and all rights
provided to the Company’s stockholders thereunder shall be terminated by the
Company’s Board of Directors within 10 calendar days after the Signing Date by
means of a redemption in accordance with Section 23(c) and/or Section 23(d) of
the Rights Plan; and

 

WHEREAS,
the Company and the Investors desire to amend the Purchase Agreement to allow
the Company to terminate the Rights Plan by accelerating the expiration date of
the Rights Plan rather than following the redemption procedures specified in
Section 23 of the Rights Plan;

 

NOW,
THEREFORE, for good and valuable consideration, and intending
to be legally bound, each of the Company, the Lead Investor and the other
Investors agree as follows:

 

1.             Amendment.  The Company and each
Investor agree as follows:

 

1.1          Section 8.1(m) of
the Purchase Agreement shall be amended in its entirety to read as follows:

 

“(m)        The Rights Plan Termination shall have
been approved by the Company’s Board of Directors and the Company shall have
entered into a written agreement with the Rights Agent (as defined in the
Rights Plan) providing for the amendment and termination of the Rights Plan as
of March 19, 2004.

 

1.2          Section 9.17 of the
Purchase Agreement shall be amended in its entirety to read as follows:

 

“9.17       Rights Plan Termination.  The Rights Plan and all Rights provided to
the

 

 

Company’s stockholders thereunder shall be terminated
by the Company’s Board of Directors (the “Rights Plan Termination”) within 10
calendar days after the Signing Date.”

 

2.             Waiver.  If any Investor fails to validly execute
this Amendment and cause it to be delivered to the Company on or before March
22, 2004, then: (a) pursuant to Section 8.1 of the Purchase Agreement, the Lead
Investor hereby waives the condition in Section 8.1(m) of the Purchase
Agreement which requires that the Company shall have (i) taken all of the steps
specified in Section 23(c) or Section 23(d) of the Rights Plan and (ii)
completed the redemption procedures specified in Section 23 of the Rights Plan;
and (b) the Lead Investor acknowledges that if the Rights Plan is validly
terminated on or before March 22, 2004 by means other than the redemption
procedures in Section 23 of the Rights Plan, the failure to follow such
redemption procedures could not reasonably be expected to have a Material
Adverse Effect, and the termination of the Rights Plan on or before March 22,
2004 shall constitute performance, in all material respects, of the Company’s
obligation in Section 9.17 of the Purchase Agreement.

 

3.             Form of Amendment to Rights
Plan.  The Company
shall enter into an agreement with the Rights Agent substantially in the form
attached hereto as Exhibit A.

 

4.             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.

 

5.             Severability.  If any term, provision, covenant or
restriction of this Amendment is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Amendment shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/
  Robert S. Breuil

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
    /s/
  David Cavalier

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  	
  David
  Cavalier

  
	
   

  	
  Chief
  Financial Officer

  	
   

  	
  COO

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):

  	
   

  
								

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  HealthCap IV GP SA for and on behalf of

  HealthCap IV, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Hampus Hillerstrom

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Hampus Hillerstrom

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Authorized Signatory

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  HealthCap IV GP SA for and on behalf of

  HealthCap IV Bis, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Hampus Hillerstrom

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Hampus Hillerstrom

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Authorized Signatory

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  HealthCap IV KB by HealthCap IV GP AG,
Its General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Per Samuelson

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Anki Forsberg

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):

  	
  Per Samuelson

  	
   

  
	
   

  	
  Anki Forsberg

  	
   

  
	
   

  	
   

  
	
  Title (if applicable): 

  	
  Partner

  	
   

  
	
   

  	
  Partner

  	
   

  
	
  OTHER

  	
  INVESTORS:

  
								

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  OFCO Club IV, by Odlander, Fredrikson
& Co AB, its member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Per Samuelson

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Anki Forsberg

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):

  	
  Per Samuelson

  	
   

  
	
   

  	
  Anki Forsberg

  	
   

  
	
   

  	
   

  
	
  Title (if applicable): 

  	
  Partner

  	
   

  
	
   

  	
  Partner

  	
   

  
								

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  SF Capital Partners Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Brian H. Davidson

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Brian H. Davidson

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Authorized Signatory

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  North Sounds Legacy Fund LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Andrew Wilder

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Andrew Wilder

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Chief Financial Officer

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  North Sound Legacy Institutional Fund LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Andrew Wilder

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Andrew Wilder

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Chief Financial Officer

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  North Sound Legacy International Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Andrew Wilder

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Andrew Wilder

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Chief Financial Officer

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  Bay Star Capital II, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
     /s/ Steve Derby

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Steve Derby

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Managing Member

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  SDS Capital Group SPC, Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
     /s/ Steve Derby

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Steve Derby

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Managing Member

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  Perceptive Life Sciences Master Fund, Ltd
By: Perceptive Advisors, LLC
Investment Manager

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Andrew C. Sankin

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Andrew C. Sankin

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Chief Operating Officer

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  Porter Partners, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
     /s/ Jeff Porter

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Jeff Porter

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  General Partner

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  EDJ Limited

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Jeff Porter

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Jeff Porter

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Trading Advisor

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  Orbimed Advisors, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Carl Gordon

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Carl Gordon

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  General Partner

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  Ursus Capital, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Evan Sturza

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Evan Sturza

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  General Partner

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  Ursus Offshore Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Evan Sturza

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Evan Sturza

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  General Partner

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  Paul & Theresa Brown 1994 Trust

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Paul W. Brown

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Paul W. Brown

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Trustee

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  ProMed Partners, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
     /s/ David B. Musket

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  David B. Musket

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Managing Partner

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  ProMed Partners II, L.P.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
     /s/ David B. Musket

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  David B. Musket

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Managing Partner

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
  ProMed Offshore Fund, Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ David B. Musket

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  David B. Musket

  	
   

  
	
   

  	
   

  
	
  Title (if applicable):
  Managing Member

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Paul Scharfer

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  Paul Scharfer

  	
   

  
	
   

  	
   

  
	
  Title (if applicable): 

  	
   

  
							

 

 

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

 

	
  COMPANY:

  	
  LEAD INVESTOR:

  
	
   

  	
   

  
	
  AEROGEN, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Robert S.
  Breuil

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  OTHER INVESTORS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ David B. Musket

  	
   

  	
   

  
	
   

  	
   

  
	
  Name (please print):
  David B. Musket

  	
   

  
	
   

  	
   

  
	
  Title (if applicable): 

  	
   

  
							

 

 

EXHIBIT
A

 

Amendment
No. 2 to Rights Plan

 

[Filed separately as Exhibit 10.29 of the Company's Current Report

on Form 8-K, filed on March 26, 2004.]Exhibit
10.29

 

AMENDMENT NO. 2 TO

RIGHTS AGREEMENT

 

This AMENDMENT TO RIGHTS AGREEMENT (the
“Amendment”) is made as of March 19, 2004, by and between AEROGEN, INC., a Delaware
corporation (the “Company”) and MELLON INVESTOR SERVICES LLC, a New Jersey
limited liability company, as Rights Agent (the “Rights Agent”).

 

WHEREAS, the Company and the Rights Agent are
parties to that certain Rights Agreement, dated as of June 5, 2001, as amended
February 24, 2003 (the “Rights Agreement”);

 

WHEREAS, pursuant to the Rights Agreement,
the Company authorized and declared a dividend of one preferred share purchase
right (a “Right”) for each Common Share (as defined in the Rights Agreement)
outstanding at the close of business on June 26, 2001 (the “Record Date”), each
Right representing the right to purchase one one-hundredth of a share of Series
A Junior Participating Preferred Stock, par value $0.001 per share, upon the
terms and subject to the conditions set forth in the Rights Agreement, and
further authorized and directed the issuance of one Right with respect to each
Common Share that became outstanding between the Record Date and the earliest
to occur of the Distribution Date, the Redemption Date and the Final Expiration
Date (as such terms are defined in the Rights Agreement), which Rights
currently expire on June 26, 2011;

 

WHEREAS, the Company has entered into an
agreement (the “Purchase Agreement”) with Xmark Funds, L.P., certain of its
affiliates and other investors (the “Investors”) to issue Series A-1 Preferred
Stock and Warrants in exchange for approximately $32,500,000, the closing of
which is conditioned upon the termination of the Rights and Rights Agreement;

 

WHEREAS, the Board of Directors of the
Company has elected to terminate the Rights Agreement by changing the Final
Expiration Date as defined in Section 7(a) of the Rights Agreement from June
26, 2011 to March 19, 2004;

 

WHEREAS, pursuant to Section 27 of the
Rights Agreement, prior to the Distribution Date (which has not yet occurred),
the Company and the Rights Agent shall, if the Company so directs, supplement
or amend any provision of the Rights Agreement without the approval of any
holders of the Rights; and

 

WHEREAS, the Board of Directors has
approved this Amendment and authorized its appropriate officers to execute and
deliver the same to the Rights Agent.

 

NOW, THEREFORE, in consideration of the
foregoing and the mutual agreements herein set forth, the parties hereby agree
as follows:

 

1.             CAPITALIZED TERMS.  Capitalized but undefined terms used herein
shall have the meanings ascribed to them in the Rights Agreement.

 

1

 

2.             AMENDMENT
TO RIGHTS AGREEMENT. 
The Rights Agreement shall be amended as follows:

 

2.1           Section
7(a) shall be amended in its entirety to read as follows:

 

“(a)         The registered holder of any Right
Certificate may exercise the Rights evidenced thereby (except as otherwise
provided herein) in whole or in part at any time after the Distribution Date
upon surrender of the Right Certificate, with the form of election to purchase
on the reverse side thereof duly executed, to the Rights Agent at the office of
the Rights Agent designated for such purpose, together with payment of the
Purchase Price for each one one-hundredth of a Preferred Share (or such other
number of shares or other securities) as to which the Rights are exercised, at
or prior to the earliest of (i) the Close of Business on March 19, 2004 (the
“Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided
in Section 23 hereof (the “Redemption Date”), or (iii) the time at which such
Rights are exchanged as provided in Section 24 hereof.”

 

2.2           Section
1(a) shall be amended to add the following proviso to the end of the definition
of Acquiring Person:

 

“; provided further, that none of the
entities on the attached Schedule 1, nor any transferee of said entities, shall
be an Acquiring Person.

 

2.3           Schedule
1 to the Rights Agreement is attached hereto as Schedule 1.

 

3.             TERMINATION
OF RIGHTS AGREEMENT.  Immediately
upon the First Closing (as defined in the Purchase Agreement), the Rights
having expired, the parties hereto agree and acknowledge, without further
action or deed, that the Rights Agreement shall be terminated and of no further
force and effect.  The Company will
timely notify the Rights Agent of the First Closing Date.

 

4.             SUCCESSORS.  All the covenants and provisions in this
Amendment by or for the benefit of the Company or the Rights Agent shall bind
and inure to the benefit of their respective successors and assigns hereunder.

 

5.             SEVERABILITY.  If any term, provision, covenant or
restriction of this Amendment is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Amendment shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

 

6.             GOVERNING
LAW.  This Amendment shall be
deemed to be a contract made under the laws of the State of Delaware and for
all purposes shall be governed by and construed in accordance with the laws of
such State applicable to contracts to be made and performed entirely within
such State; provided that all provisions regarding the rights, duties and
obligations of the Rights Agent shall be governed by and construed in
accordance with the laws

 

2

 

of the State of New York applicable to contracts to be made and
performed entirely within such state.

 

7.             COUNTERPARTS.  This Amendment may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

 

[The remainder of this
page is intentionally left blank.]

 

3

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed and attested, all as of the date
first written above.

 

	
  ATTEST:

  	
  AEROGEN, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Robert S.
  Breuil

  	
   

  	
  By:

  	
  /s/ Jane E. Shaw

  	
   

  
	
  Name:  Robert S. Breuil

  	
  Name:  Jane
  E. Shaw

  
	
  Title:  Chief
  Financial Officer

  	
  Title: 
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
  MELLON INVESTOR SERVICES, LLC,

  
	
   

  	
  as Rights Agent

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  

 

4

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed and attested,
all as of the date first written above.

 

 

	
  ATTEST:

  	
  AEROGEN, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Name:  Robert S. Breuil

  	
  Name:  Jane
  E. Shaw

  
	
  Title:  Chief
  Financial Officer

  	
  Title: 
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
  MELLON INVESTOR SERVICES, LLC,

  
	
   

  	
  as Rights Agent

  
	
   

  	
   

  
	
  By:

  	
  /s/ Cecil Bobey

  	
   

  	
  By:

  	
  /s/ Asa Drew

  	
   

  
	
  Name:  Cecil Bobey

  	
  Name:  Asa Drew

  
	
  Title:    Assistant Vice
  President

  	
  Title:   Assistant Vice President

  

 

 

SCHEDULE
1

 

•                  Xmark Fund, L.P.

•                  Xmark Fund, Ltd.

•                  TNC Partners II,
LLC

•                  HealthCap IV,
L.P.

•                  HealthCap IV
Bis, L.P.

•                  HealthCap IV KB

•                  OFCO Club IV

•                  Pequot Scout Fund,
L.P.

•                  Pequot Navigator
Offshore Fund, Inc.

•                  Pequot Navigator
Onshore Fund

•                  SF Capital
Partners, Ltd.

•                  North Sound
Legacy Fund LLC

•                  North Sound
Legacy Institutional Fund LLC

•                  North Sound
International Ltd.

•                  BayStar Capital
II, L.P.

•                  SDS Capital
Group SPC, Ltd.

•                  Perceptive Life
Sciences Master Fund, Ltd.

•                  Porter Partners,
L.P.

•                  EDJ Limited

•                  Winchester
Global Trust Company Limited as Trustee for Caduceus Capital Trust

•                  Caduceus Capital
II, L.P.

•                  UBS Eucalyptus
Fund, L.L.C.

•                  PW Eucalyptus Fund,
Ltd.

•                  Finsbury
Worldwide Pharmaceutical Trust

•                  HFC SHC
Aggressive Fund

•                  Anders D. Hove

•                  Ursus Capital,
L.P.

•                  Ursus Offshore
Ltd.

•                  Paul W. Brown
& Theresa Donovan Brown TTEE Paul & Theresa Brown 1994 Trust dated
10/8/94

•                  ProMed Partners,
L.P.

•                  ProMed Partners
II, L.P.

•                  ProMed Offshore
Fund, Ltd.

•                  Paul Scharfer

•                  David Musket

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