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                                                                   EXHIBIT 10.32

AMENDMENT NUMBER 2 TO RESEARCH AND LICENSE AGREEMENT BY AND BETWEEN MICROCIDE
PHARMACEUTICALS, INC., ORTHO PHARMACEUTICAL CORPORATION AND R.W. JOHNSON
PHARMACEUTICAL RESEARCH INSTITUTE

This Amendment Number 2 ("AMENDMENT NO. 2"), dated this 19th day of December,
2000 is made to the RESEARCH AND LICENSE AGREEMENT (hereinafter called the
"AGREEMENT"), made as of October 24, 1995 by and between MICROCIDE
PHARMACEUTICALS, INC., a corporation organized under Delaware law having its
principal office at 850 Maude Avenue, Mountain View, California 94043
(hereinafter called "MICROCIDE") as amended by Amendment Number 1 thereto, dated
as of October 23, 1998;

ON THE ONE HAND, AND:

ORTHO MCNEIL PHARMACEUTICAL, INCORPORATED (hereinafter called "ORTHO"), a
company organized under Delaware law, having its principal office at U.S. Route
202, Raritan, New Jersey, 08869 (successor to Ortho Pharmaceutical Corporation);
and

the R.W. JOHNSON PHARMACEUTICAL RESEARCH INSTITUTE (hereinafter called
"RWJPRI"), a division of Ortho McNeil Pharmaceutical, Incorporated, having its
principal office at U.S. Route 202, Raritan, New Jersey 08869 (ORTHO and RWJPRI
hereinafter collectively called "LICENSEE")

ON THE OTHER HAND,

WITNESSETH:

A.   WHEREAS, MICROCIDE and LICENSEE have entered into the AGREEMENT providing
for a collaborative research drug discovery program in the FIELD as generally
described in the RESEARCH PLAN attached thereto as Appendix A;

B.   WHEREAS, the RESEARCH PLAN provided for several projects to be completed by
the parties over a three year RESEARCH TERM which was extended for an additional
period, but which has since expired in accordance with the terms of the
AGREEMENT;

C.   WHEREAS, the parties wish to enter into an agreement to extend the RESEARCH
TERM and provide for an extension of the RESEARCH PROGRAM to conduct
collaborative research into the discovery of an orally active cephalosporin:

NOW, THEREFORE, in consideration of the premises and the performance of the
covenants herein contained, the parties agree to amend the AGREEMENT as follows:

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1.   Unless otherwise defined herein, all capitalized terms used herein shall
have the same meaning as set forth in the AGREEMENT.

2.   In accordance with the terms of this Amendment Agreement, the RESEARCH TERM
under Section 2.3.3 of the AGREEMENT shall be extended for an additional period
commencing upon signature of this Amendment Agreement and terminating on the
first anniversary thereof, unless further extended by written agreement of the
parties. The RESEARCH PROGRAM shall be extended to include the additional
collaborative research conducted in accordance with the extended RESEARCH PLAN
attached hereto as Appendix A (hereinafter the "ORAL CEPHALOSPORIN RESEARCH
PROGRAM"). It is understood that the definition of COLLABORATION COMPOUND under
Section 1(b) of the AGREEMENT shall include compounds discovered, identified,
synthesized or acquired by or on behalf of MICROCIDE as of the EFFECTIVE DATE of
this AGREEMENT or during the extended RESEARCH TERM, in any case specifically in
the course of the ORAL CEPHALOSPORIN RESEARCH PROGRAM, but shall not include any
other compounds discovered, identified, synthesized or acquired by or on behalf
of Microcide that were not included in the definition of COLLABORATION COMPOUND
as originally defined in the AGREEMENT prior to this AMENDMENT NO. 2. Except as
set forth above, the definition of RESEARCH TERM for all purposes under the
AGREEMENT including but not limited to Sections 4.4.1, 4.4.3 and 12.5 shall not
be changed.

3.   Section 2.4 of the AGREEMENT shall be amended by adding the following
section 2.4 (d):

"(d) Toward the performance of the ORAL CEPHALOSPORIN RESEARCH PROGRAM by
Microcide hereunder, RWJPRI shall pay MICROCIDE [*] dollars ($ [*]) upon
signature of this Amendment Agreement and a further [*] dollars ($ [*]) in 2001,
paid as follows:

     (i)  [*] dollars ($ [*]) on [*] following delivery to RWJPRI of two
          compounds with microbiological profiles comparable to[*] that are
          amenable to derivatization as oral prodrugs;

     (ii) [*] dollars ($ [*]) on [*] following delivery of a compound with a
          microbiological profile comparable to [*] having at least 25% oral
          bioavailability in a rodent;

for a total of $ [*]."

4.   Section 5.1 of the AGREEMENT shall be amended by adding the following:

"In addition, ORTHO shall pay an additional initial license fee for the ORAL
CEPHALOSPORIN RESEARCH PROGRAM of [*] dollars ($ [*]), payable within ten (10)
days of signature of this Amendment Agreement."

[*]  Certain information on this page has been omitted and filed separately
     with the Securities and Exchange Commission. Confidential treatment has
     been requested with respect to the omitted portions.

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5.   Section 5.2(i) shall be amended to add the following:

"For a COLLABORATION COMPOUND arising from the ORAL CEPHALOSPORIN RESEARCH
PROGRAM, ORTHO shall pay MICROCIDE an additional [*] dollars ($ [*]), within
thirty days of IND submission or the dosing of the first human patient in
clinical trials, whichever shall first occur."

6.   Except as amended herein, all of the terms and conditions of the AGREEMENT
shall remain in full force and effect.

7.   This AGREEMENT may be executed by telefax transmission and in one or more
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute but one and the same agreement.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and duly
executed this Amendment Agreement on the date(s) indicated below, to be
effective the day and year first above written.

For and on Behalf of MICROCIDE PHARMACEUTICALS, INC.

By:     /s/ James E. Rurka
    ------------------------------
Name:   James E. Rurka
Title:  Chief Executive
Date:   12-19-00

For and on Behalf of THE R.W. JOHNSON PHARMACEUTICAL RESEARCH INSTITUTE

By:     /s/ Per A. Peterson
    -------------------------------
Name:   Per A. Peterson
Title:  Chairman
Date:   12-19-00

For and on behalf of ORTHO-MCNEIL PHARMACEUTICAL, INC.

By:     /s/ Patrick Verheyen
    -------------------------------
Name:   Patrick Verheyen
Title:  Vice President, Corporate Development
Date:   12-19-2000

[*]  Certain information on this page has been omitted and filed separately
     with the Securities and Exchange Commission. Confidential treatment has
     been requested with respect to the omitted portions.<PAGE>   1
                                                                    Exhibit 10.4

                                                                    CONFIDENTIAL

                          SALARY CONTINUATION AGREEMENT
                     FOR WCB POLICYMAKING EXECUTIVE OFFICERS

        This SALARY CONTINUATION AGREEMENT ("Agreement") is dated as of October
17, 2000 (the "Effective Date"). The parties to the Agreement ("Parties") are
WEST COAST BANCORP ("Bancorp"), West Coast Bank ("Bank"), and Richard R.
Rasmussen ("Executive").

                                    RECITALS

A.      Executive is employed by Bank in a managerial capacity, presently
        holding the position of Executive Vice President, General Counsel, and
        Secretary.

B.      Bancorp and Bank (collectively, "Company") wishes to ensure the
        continued availability of Executive's services in the event of a change
        in control of Bancorp, in order to assist Bancorp in maximizing the
        benefits obtainable from such a change.

C.      To encourage Executive's continued services, Bancorp wishes to provide
        an incentive for Executive's continued employment.

Therefore, the parties agree as follows:

                                    AGREEMENT

1.      EFFECTIVE DATE AND TERM. As of the Effective Date, this Agreement is a
        binding obligation of the parties and is not subject to revocation or
        amendment, except by mutual consent or in accordance with its terms. The
        initial term of this Agreement ("Initial Term") begins on the Effective
        Date and ends on March 31, 2001. Following the Initial Term, this
        Agreement will automatically renew on April 1 of each year for
        subsequent one-year terms (each a "Renewal Term"), unless (a) the Board,
        before the next Renewal Term begins, takes action to cancel the
        Agreement at the end of its current term, or (b) Executive, before the
        next Renewal Term begins, gives Bancorp written notice of Executive's
        election to cancel the Agreement at the end of its current term. If a
        definitive agreement providing for a Change in Control (as defined
        below) is entered into on or before the expiration of the Initial Term
        or any Renewal Term, the term then in effect will automatically be
        extended to 24 months after the consummation of the Change in Control,
        and the Board will not have authority to cancel this Agreement during
        that period, unless Executive consents in writing to the cancellation.

2.      COMMITMENT OF EXECUTIVE. If any person extends any proposal or offer
        intended to or with the potential to result in a Change in Control (a
        "Change in Control Proposal"), Executive must, at Bancorp's request,
        assist Bancorp in evaluating the Proposal. Further, as a condition to
        receipt of the Salary Continuation Payment described below, Executive
        will not resign Executive's position with the Company during the period
        beginning when the Company receives a Change in Control Proposal and
        ending when the transaction contemplated by the Proposal is either
        consummated or abandoned.

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3.      SALARY CONTINUATION PAYMENT.

        (a)     Payment Trigger and Timing. If a Termination Event After a
                Change in Control (as defined in Section 4) occurs, Executive
                will receive a salary continuation payment ("Salary Continuation
                Payment"). Unless limited below, the Salary Continuation Payment
                will equal the Regular Salary Continuation Payment plus the
                Bonus Continuation Payment. The Company will pay this Salary
                Continuation Payment to Executive on the later of (i) the date
                Executive's employment terminates or (ii) the date the Change in
                Control occurs.

        (b)     Payment Amount. The Regular Salary Continuation Payment will
                equal Executive's regular monthly salary in effect when
                Executive's employment terminates (as reportable on Executive's
                IRS Form W-2, but including the amount of any voluntary
                deferrals of salary, and excluding any expense allowances or
                reimbursements, any bonuses, any gain from exercise of stock
                options, or any other similar non-recurring payments) that would
                be payable to Executive but for the termination from the day
                Executive's employment terminates to the date 24 months after
                the later of (i) the date the Change in Control occurs or (ii)
                the date Executive's employment terminates. The Bonus
                Continuation Payment will equal (i) the most recent annual bonus
                paid to Executive, multiplied by (ii) the number of days during
                which Executive was employed but as to ------------- which no
                annual bonus has been paid plus the number of days from the date
                of termination of ---- employment to the date 24 months after
                the later of (x) the date the Change in Control occurs or (y)
                the date Executive's employment terminates, divided by 365. If a
                Change in Control occurs before Executive's 2001 bonus is
                determined, Executive's most recent annual bonus will be deemed
                to be $37,500.

        (c)     Limitation on Payment. The Salary Continuation Payment will not
                exceed an amount equal to $1.00 less than the amount which would
                cause the payment, together with any other payments received
                from the Company, to be a "parachute payment" as defined in
                Section 280G(b)(2)(A) of the Internal Revenue Code.

4.      TERMINATION EVENT AFTER CHANGE IN CONTROL. A Termination Event After a
        Change in Control will be deemed to occur when, and only when, one or
        more of the following events occur:

        (a)    Executive terminates Executive's employment for any reason, other
               than Retirement, Disability, or death within 24 months after a
               Change In Control; or

        (b)    The Company terminates Executive's employment other than for
               Cause, Disability, Retirement or death within 24 months after a
               Change In Control; or

        (c)     The Company terminates Executive's employment other than for
                Cause, Disability, Retirement, or death before a Change In
                Control, if the termination occurs during the period beginning
                six months before the execution of a definitive agreement
                providing for the Change in Control and ending upon occurrence
                of the Change in Control, but only if the Change in Control in
                fact occurs.

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5.      DEFINITIONS.

        (a)     Cause. "Cause" means only any one or more of the following:

                (i)     Willful misfeasance or gross negligence in the
                        performance of Executive's duties; or

                (ii)    Conviction of a crime in connection with such duties; or

                (iii)   Conduct demonstrably and significantly harmful to the
                        financial condition of the Company.

        (b)     Disability. "Disability" means a physical or mental impairment
                that renders Executive incapable of substantially performing the
                duties required under this Agreement and that is expected to
                continue rendering Executive so incapable for the reasonably
                foreseeable future.

        (c)     Retirement. "Retirement" means voluntary termination by
                Executive in accordance with the Company's applicable retirement
                policies, including early retirement, if applicable to its
                salaried employees.

        (d)     Change In Control. "Change In Control" means one of the
                following:

                (i)     A Person or Entity acquiring or otherwise becoming the
                        owner (as a result of a purchase, merger, stock
                        exchange, or otherwise) of more than 50% of Bancorp's
                        outstanding common stock; or

                (ii)    Bancorp's merger into any corporation or other business
                        entity, or the merger of any corporation or other
                        business entity into Bancorp, where more than 50% of the
                        stock (or other form of ownership) of the corporation or
                        business entity ("Surviving Corporation") is owned by
                        other than the owners of the common stock of Bancorp
                        before the merger; or

                (iii)   A Person or Entity acquiring more than fifty percent of
                        the Company's assets, measured by the total fair market
                        value of all of the Company's assets immediately before
                        the acquisition, during the twelve-month period ending
                        on the date of the most recent acquisition. A Change in
                        Control does not include a transfer of assets by the
                        Company if the assets are transferred to an Entity, 50%
                        or more of the total value or voting power of which is
                        owned, directly or indirectly, by the Company.

        (e)     Person or Entity. "Person or Entity" includes, without
                limitation, any one or more persons and/or entities acting in
                concert with respect to their interests in the Surviving
                Corporation.

6.      OTHER COMPENSATION AND TERMS OF EMPLOYMENT. This Agreement is not an
        employment agreement. Accordingly, other than providing for the Salary
        Continuation Payment, this Agreement will not affect the determination
        of any compensation payable by the Company to Executive, nor will it
        affect the other terms of Executive's employment with the Company. The
        specific arrangements referred to in this Agreement are not intended to
        exclude or circumvent any other benefits that may be available to
        Executive under the Company's employee benefit or other applicable
        plans, if his or her employment terminates.

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7.      WITHHOLDING. All payments made to Executive under this Agreement are
        subject to the withholding of amounts for tax and other payroll
        deductions that the Company reasonably determines appropriate under
        applicable law or regulation.

8.      ASSIGNABILITY. The Company may assign this Agreement and its rights
        under it in whole, but not in part, to any corporation, financial
        institution or other entity with or into which Bancorp merges or
        consolidates or to which Bancorp transfers all or substantially all of
        its assets. But, the corporation, financial institution, or other entity
        accepting assignment (the "assignee") must by operation of law or
        expressly in writing assume all obligations of the Company under this
        Agreement, as fully as if the assignee had been an original party. The
        Company may not otherwise assign this Agreement or any of its rights
        under it. The Company may not through assignment avoid an obligation to
        pay a Salary Continuation Payment once the obligation is triggered under
        this Agreement, although it may assign to assignee the obligation to
        pay, as long as assignee agrees to pay in accordance with this
        Agreement. Executive may not assign or transfer this Agreement or any
        rights or obligations under it.

9.      GENERAL PROVISIONS.

        (a)     Choice of Law/Venue. The parties intend that Oregon law govern
                this Agreement and its interpretation. Any dispute arising out
                of this Agreement must be brought in either Clackamas County or
                Multnomah County in Oregon, and the parties will submit to
                personal jurisdiction in either of those counties.

        (b)     Arbitration. Any dispute or claim arising out of or brought in
                connection with this Agreement, will, if requested by any party,
                be submitted to and settled by, arbitration under the rules then
                in effect of the American Arbitration Association (or under any
                other form of arbitration mutually acceptable to the parties
                involved). Any award rendered in arbitration will be final and
                will bind the parties, and a judgement on it may be entered in
                the highest court of the forum having jurisdiction. The
                arbitrator will render a written decision, naming the
                substantially prevailing party in the action, and will award
                such party all costs and expenses incurred, including reasonable
                attorneys' fees.

        (c)     Attorney Fees. If any breach of or default under this Agreement
                results in either party incurring attorney or other fees, costs
                or expenses (including in arbitration), the substantially
                prevailing party is entitled to recover from the non-prevailing
                party any and all legal fees, costs and expenses, including
                attorney fees.

        (d)     Waiver. This Agreement supercedes all previous agreements
                between Executive and the Company and any of its affiliates
                pertaining to this subject matter. By signing this Agreement,
                Executive waives any and all rights Executive may have had under
                any previous salary continuation, severance, or other similar
                Agreements Executive may have entered into with the Company or
                any of its affiliates or predecessors.

        (e)     Successors. This Agreement binds and inures to the benefit of
                the parties and each of their respective affiliates, legal
                representatives, successors and assigns.

        (f)     Construction. This Agreement contains the entire agreement among
                the parties with respect to its subject matter, and may be
                amended only through a written document signed by all of the
                parties. Its language is the language chosen by the parties
                jointly to express their mutual intent. No rule of construction
                based on which party drafted the Agreement or certain of its
                provisions will be applied against any party.

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        (g)     Section Headings. The section headings used in this Agreement
                have been included for convenience and reference only.

        (h)     Counterparts. This Agreement may be executed in one or more
                counterparts, and all counterparts will be construed together as
                one Agreement.

Signed as of October 17, 2000:

                             BANCORP AND BANK:

                             /s/ Robert D. D Sznewajs
                             -----------------------------
                             By:    Robert D. Sznewajs
                             Its:   President and CEO

                             EXECUTIVE:

                             /s/ Richard R. Rasmussen
                             -----------------------------
                             Richard R. Rasmussen

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