Document:

[FORM OF]
                             STOCK OPTION AGREEMENT
                              UNDER THE E-REX, INC.
                 2002 NON-QUALIFIED STOCK GRANT AND OPTION PLAN

     THIS  STOCK OPTION AGREEMENT is entered into the ____ day of _____________,
2002, between E-Rex, Inc., a Nevada corporation (the "Corporation" or "Grantor")
and  [GRANTEE  NAME]  (the  "Grantee"),  with  respect  to  the following facts:
     Pursuant  and  subject  to the Corporation's 2002 Non-Qualified Stock Grant
and  Option  plan,  a  copy  of  which  is  attached  hereto  as Exhibit "A" and
incorporated  herein  by this reference (the "Plan"), the Corporation's Board of
Directors  has  determined  that  it  is  to  the  advantage and interest of the
Corporation  and  its  stockholders  to  grant the option provided for herein to
Grantee.  The  parties  agree  as  follows:

     1.     GRANT  OF OPTION:  For value received, the Corporation hereby grants
            ----------------
to  Grantee  the  right  and  option  to  purchase,  on the terms and conditions
hereinafter  set  forth, an aggregate of ____________ shares of the Corporations
Common  Stock.  The  purchase  price  shall  be  $___________  per  share.

     2.     TIME  AND  MANNER  OF  EXERCISE:  From  and after January 1, ______,
            -------------------------------
and  during  each  of the four (4) succeeding one-year periods commencing on the
anniversary  thereof,  Grantee  shall  have  the  right to purchase from Grantor
twenty  percent  (20%)  of  the  aggregate  number  of shares of Common Stock of
Grantor  subject  to  this  Option,  on  a  cumulative basis (total ____________
shares).  The  purchase  shall  be  made upon delivery to Grantor of a notice of
exercise  accompanied  by  a  certified  or  cashier's  check  in payment of the
aggregate  option price, or Grantee's promissory note in the form of Exhibit "B"
hereto,  secured  by  a pledge of the shares purchased. Promptly upon receipt of
such material, Grantor will deliver to Grantee stock certificate(s) representing
the  number  of  shares  purchased  in  accordance with the foregoing and during
Grantee's  lifetime, duly registered in the name(s) of Grantee and, at Grantee's
election,  his  or her spouse. The failure to exercise an option with respect to
any  shares of Grantor's Common Stock for which the right has accrued during any
one-year  period  shall not result in the termination of the option with respect
to  such  shares  of  Stock;  rather the same shall cumulate and be eligible for
exercise  during  the  remainder  of  the  option  term.

     3.     ANTIDILUTION  PROVISIONS:  The  number  of  shares  that  Grantee is
            ------------------------
entitled  to purchase upon the exercise of this Option and the purchase price of
those shares are subject only to the adjustments set forth in Section 5.6 of the
Plan.

     4.     INVESTMENT  UNDERTAKING; NONASSIGNABILITY:  This Option may be exer-
            -----------------------------------------
cised  only by Grantee during his or her lifetime. Grantee will hold this Option
and  the  rights  arising  hereunder  for  investment  and  not  with  a view to
distribution,  and  upon  exercise  will  deliver  a letter confirming Grantee's
nondistributive  intent  with  respect  to  the shares of Common Stock received.
Grantee  will  not transfer or assign this Option, except by will or the laws of
intestate  succession.

     5.     EXPIRATION:  This  Option  shall terminate and expire at midnight on
            ----------
the  date  that is seven (7) years after the date of this Agreement, or four (4)
months  after  the date that Grantee ceases to be eligible to participate in the
Plan in accordance with Section 3 of the Plan, whichever is earlier. However, if
Grantee  dies  while  still  eligible  to  participate  in  the Plan, his or her
executor(s)  or  administrator(s),  or  any  person  or persons who acquired the
Option  from  the  Grantee by bequest or inheritance, shall, during the 12-month
period commencing on the date of the Grantee's death, have the right to exercise
this  Option  with  respect  to the shares that remain subject to this Option on
that  date,  subject to the conditions that this Option (i) shall in no event be
exercisable  after  its expiration in accordance with this Section 5 and (ii) it
shall  be  exercisable  by  such  representative(s)  or successor(s) only to the
extent  that the Grantee's right to exercise this Option had accrued pursuant to
Paragraph  2  hereof  at  the time of the Grantee's death and had not previously
been exercised. Any options not exercisable or not exercised prior to the end of
such  12-month  period  shall  be  automatically  null  and  void.

     6.     BUY-OUT  AGREEMENT:
            ------------------
     [The  Stock  purchased by the Grantee upon exercise of this Option shall be
subject  to the Buy-Out Agreement, a copy of which is attached hereto as Exhibit
"C"]

     [Grantee  agrees  that he or she will not dispose of or encumber any shares
in the Corporation acquired pursuant to this Option, except as is required under
the  following  provisions:

     (a)    If  Grantee's  employment  with the Corporation terminates prior  to
______________  (e.g.,  five  (5)  years from date hereof), for any reason other
than  his or her death or total permanent disability, Grantee shall sell and the
Corporation  shall  purchase  all  shares  of  stock of the Corporation owned by
Grantee  at  the  price  of  $_____  per  share.

OR,

     (b)    If  Grantee's  employment  with the Corporation terminates prior  to
_______________  (e.g.,  five  (5)  years  from  the date hereof), on account of
Grantee's  death  or  total  permanent disability, on and after such termination
Grantee  or  Grantee's  estate shall sell and the Corporation shall purchase all
shares  of  stock  of  the  Corporation  acquired  by  Grantee  pursuant to this
Agreement  at  the  price  of $_____ per share.  Said sale and purchase shall be
made  not  later than sixty (60) days after Grantee's termination of employment,
or,  if  terminated  by  Grantee's  death,  within  sixty  (60)  days  after the
appointment  of  a  legal  representative  for  Grantee's  estate.]

     7.     REPRESENTATIONS  OF  GRANTOR:  So  long  as this Option remains out-
            ----------------------------
standing  and  unexpired, Grantor will reserve for issuance upon the exercise of
this  Option  the number of shares of Grantor's Common Stock that are subject to
this Option. The shares of Common Stock of Grantor subject to this Option shall,
when  issued, be validly issued, fully paid and nonassessable. Grantor will pay,
when  due  and  payable, any and all federal and state taxes or fees that may be
payable  by  Grantor with respect to the grant of this Option or the issuance of
any  shares  of  Common  Stock or certificates therefore subject to this Option.
However,  this  does not include any federal, state or other personal income tax
payable  by  the  Grantee  by  virtue  of (i) the grant of this Option; (ii) the
issuance  of  any  share  of  Common  Stock  upon exercise thereof; or (iii) any
subsequent  disposition  of such shares which shall remain the obligation of the
Grantee.

     8.     WITHHOLDING TAXES: If the Corporation determines that it is required
            -----------------
to  withhold  federal,  state  or  local tax as a result of the exercise of this
Option,  the  Grantee, as a condition to the exercise of this Option, shall make
arrangements  satisfactory  to  the  Corporation  to  enable  it to satisfy such
withholding  requirements.

     9.     NOTICE:  Any  notice,  request,  or instructions given in connection
            ------
with  this  Option  shall  be  in writing and shall be delivered in person or by
certified  mail  as  follows:

     (a)    If to Grantor, at ____________________________,  [State], Attention:
Corporate  Secretary.

     (b)    If  to  Grantor,  at  ___________________________,  or at such other
address  as  either  of  the  parties  shall  have  given notice to the other in
accordance  with  the  provisions  hereof.

     10.    COMMITTEE DETERMINATION FINAL:  The interpretation and  construction
            -----------------------------
of the Plan and this Stock Option Agreement, including any inconsistency between
the  two  documents, shall be reserved to and made by the Committee of the Board
of  Directors provided for under the Plan.  The Committee's determinations shall
be  final as between the parties hereto unless otherwise determined by the Board
of  Directors  of  Grantor.

     11.    GOVERNING LAW:  This Option is granted and delivered in the State of
            -------------
Nevada  and  is  intended  to  be construed and enforced under the laws thereof.

     IN  WITNESS  WHEREOF,  this Option is executed on behalf of Grantor and its
duly  authorized  officers  and  by Grantee as of this ___ day of _____________,
2002.

                              GRANTOR:

                              E-Rex, Inc.,
                              a Nevada corporation

                              By:
                              Its:

                              GRANTEE

<PAGE>

                                   EXHIBIT "A"
                                   -----------

                         NON-QUALIFIED STOCK OPTION PLAN

<PAGE>

                                   EXHIBIT "B"
                                   -----------

                             FORM OF PROMISSORY NOTE

<PAGE>

                                   EXHIBIT "C"
                                   -----------

                                BUY-OUT AGREEMENTExhibit 10.9

	

EXHIBIT 10.9

     THIS
TERMINATION AGREEMENT (the “Agreement”), dated as of September 21,
2001 (the “Effective Date”), is hereby entered into by and between
BIOCRYST PHARMACEUTICALS, INC., a Delaware corporation having its principal
place of business at 2190 Parkway Lake Drive, Birmingham, Alabama 35244
(hereinafter referred to as “BIOCRYST”) and ORTHO-McNEIL
PHARMACEUTICAL, INC., a Delaware corporation having its principal office at U.S.
Route 202, Raritan, NJ 08869 and THE R. W. JOHNSON PHARMACEUTICAL RESEARCH
INSTITUTE, a division of ORTHO-McNEIL PHARMACEUTICAL, INC., having its principal
place of business at U.S. Route 202, Raritan, NJ 08869 (hereinafter collectively
referred to as “ORTHO”). BIOCRYST and ORTHO are sometimes referred to
herein individually as a “Party” and collectively as the
“Parties” and all references to BIOCRYST and ORTHO shall include their
respective Affiliates (hereinafter defined), where appropriate under the terms
of this Agreement. 

W I T N E S S E T H

     WHEREAS,
BIOCRYST and ORTHO previously entered into a license agreement dated September
14, 1998 (the “License Agreement”); 

     WHEREAS,
On April 27, 2001 pursuant to Section 12.1 of the License Agreement, ORTHO
provided notice to BIOCRYST of its election to terminate the License Agreement,
with such termination effective as of the August 27, 2001, and the parties, by
letter agreement, subsequently extended the effective date of termination until
the Effective Date; and, 

     WHEREAS,
the Parties desire to clarify the rights and responsibilities of each Party in
respect of such termination in order to facilitate and expedite the transfer to
BIOCRYST of all activities under the License Agreement related to the
development, manufacture and marketing of a Neuraminidase Inhibitor Product
(collectively, the “Development Program”). 

     NOW,
THEREFORE, in consideration of the foregoing premises, and the mutual
promises, covenants and agreement hereinafter set forth, the receipt and
sufficiency of which is hereby acknowledged, both Parties to this Agreement
hereby mutually agree as follows: 

SECTION 1. DEFINITIONS

     Capitalized
terms used in this Agreement shall have the meanings set forth in the License
Agreement unless otherwise defined in this Agreement or unless the context
clearly indicates to the contrary: 

     1.1
“Agreement” shall mean this Termination Agreement. 

     1.2
“Clinical and Clinical Support Studies” shall mean any and all
scientific evaluations of neuraminidase inhibitors, including Neuraminidase
Inhibitor Products, performed in connection with the Development Program, and
all related contracts, data and materials arising in connection therewith,
including but not limited to the clinical trials, clinical support studies and
the other items set forth on Schedule A, attached hereto. 

     1.3
“Contracts” shall mean the contracts set forth on Schedule B, attached hereto. 

     1.4
“Data” shall mean all data, notes, databases and information in any
tangible or intangible form, including but not limited to paper, electronic and
magnetic media, arising out of or related to the Development Program, including
but not limited to that (i) arising out of or related to Clinical and Clinical
Support Studies, (ii) underlying or supporting the Regulatory Filings; (iii)
required in order to maintain the integrity of New Drug Application files as
required by law, rule or regulation, and (iv) which is set forth on Schedule D,
attached hereto. 

21

	

     1.5
“Domain Names” shall mean the Internet domain names set forth in the
Trademark Assignment Agreement, attached hereto as Schedule F. 

     1.6
“Drug Substance” shall mean the approximately one thousand six hundred
(1,600) kilograms of GMP grade neuraminidase inhibitor drug substance
(manufactured and maintained in accordance with GMP requirements), approximately
900 kilograms of which has been manufactured according to the final synthesis
method, all of which has been manufactured by ORTHO during the term of the
License Agreement and which is being stored at ORTHO’s facilities in Spring
House, Pennsylvania as of the Effective Date. 

     1.7
“Drug Tablets” shall mean the drug tablets specified in Schedule C,
attached hereto, including both placebos and tablets comprised of the
neuraminidase inhibitor manufactured by ORTHO or its Affiliates. 

     1.8
“License Agreement Effective Date” shall mean the effective date of
the License Agreement, September 14, 1998. 

     1.9
“Materials” shall mean those tangible materials generated by,
purchased by or allocated to the Development Program by ORTHO, its contractors
and agents as set forth on Schedule C. 

     1.10
“Purchase Order” shall have the meaning set forth in Section 9.2. 

     1.11
“Regulatory Filings” shall mean all filings with regulatory agencies,
departments, bureaus or other government entities, made in connection with the
Development Program by ORTHO, its agent and contractors in order to allow ORTHO
to market or sell a Neuraminidase Inhibitor Product anywhere in the world,
including but not limited to those regulatory filings set forth on Schedule E,
attached hereto. 

     1.12
“Trademarks” shall mean the trademarks set forth in the Trademark
Assignment Agreement, attached hereto as Schedule F. 

SECTION 2. TERMINATION
OF LICENSE AGREEMENT

     2.1
The Parties hereby confirm that the License Agreement is hereby terminated in
its entirety pursuant to Section 12.1 of the License Agreement, with such
termination effective as of the Effective Date. 

     2.2
The Parties hereby confirm and agree that all provisions, rights and obligations
which survive termination of the License Agreement pursuant to the terms of the
License Agreement shall continue to survive, except for Article 26 of the
License Agreement which the Parties hereby agree shall not survive. All
surviving provisions in the License Agreement are hereby supplemented by the
terms of this Agreement. 

22

	

SECTION 3. PATENTS AND
INVENTIONS

     3.1
ORTHO hereby acknowledges and agrees that (i) all of its rights to the Existing
Know-How, Improvements, Existing Patents, and Improvement Patents which arose by
virtue of the License Agreement are terminated; and (ii) BIOCRYST is and shall
be the exclusive owner of all right, title and interest in and to the Existing
Know-How, Improvements, Existing Patents, and Improvement Patents. To the extent
necessary to effectuate the foregoing, ORTHO hereby assigns to BIOCRYST any and
all right, title and interest throughout the world that ORTHO may have in and to
the Existing Know-How, Improvements, Existing Patents, and Improvement Patents. 

     3.2
ORTHO hereby acknowledges and agrees that (i) all of its rights to the Joint
Inventions and Joint Patents by virtue of the License Agreement are terminated;
and (ii) BIOCRYST is and shall be the exclusive owner of all right, title and
interest in and to the Joint Inventions and Joint Patents. To the extent
necessary to effectuate the foregoing, ORTHO hereby assigns to BIOCRYST all of
ORTHO’s right, title and interest throughout the world in and to the Joint
Inventions and the Joint Patents, including but not limited to the Joint
Inventions and Joint Patents set forth on Schedule G, attached hereto. 

     3.3
BIOCRYST hereby grants to ORTHO a royalty-free, perpetual, non-sublicenseable,
non-transferable, fully paid-up limited license to use the manufacturing process
claimed in the patent application PCT/US00/15969, all national filings thereof,
and any continuations or divisionals reissues or re-examinations of the
foregoing, solely for ORTHO’s internal business purposes. For purposes of
clarity, internal business purposes shall not include performance of such
processes for any third party or supply of the product of the process to any
third party; however, internal purposes shall include sale of ORTHO products
which are derived from the use of the processes, but which are materially
changed from the product of the process. 

SECTION 4. TRADEMARKS,
DOMAIN NAMES AND GENERIC NAME

     4.1
The Parties hereby acknowledge that as of the Effective Date and pursuant to the
assignment agreement attached hereto as Schedule F (the “Trademark
Assignment”), ORTHO has assigned to BIOCRYST, at BIOCRYST’s expense,
all right, title and interest in and to the Trademarks and Domain Names and the
applications or registrations therefor, together with the goodwill of the
business symbolized by the Trademarks and Domain Names. The Trademark Assignment
includes the right to sue and recover damages for past and future infringements
of ORTHO’s rights in the Trademarks and the Domain Names and to bring any
proceeding in the United States Patent and Trademark Office or any equivalent
agency in any other country for cancellation or opposition or other proceeding
in connection with the Trademarks and the Domain Names. The right, title and
interest is to be held and enjoyed by BIOCRYST and BIOCRYST’s successors
and assigns as fully and exclusively as it would have been held and enjoyed by
ORTHO had this assignment not been made. 

4.2 The Parties acknowledge
that the USAN Council has adopted “peramivir” as the United States
Adopted Name for the neuraminidase inhibitor RWJ-270201 for publication in the
USP Dictionary of USAN and International Nonproprietary Names. ORTHO agrees to
provide BIOCRYST with reasonable assistance in updating such publication, or as
other otherwise reasonably requested by BIOCRYST in relation to the use and
maintenance of peramivir as a nonproprietary name. BIOCRYST agrees to bear
ORTHO’s reasonable and actual out-of-pocket costs related thereto. 

SECTION 5. CONTRACTS

     Excepting
only the Excluded Contract Liabilities (defined below), ORTHO hereby assigns and
transfers to BIOCRYST all of ORTHO’s right, title and interest in and to, and
obligations under, the Contracts. BIOCRYST hereby assumes all of the obligations of ORTHO
under the Contracts arising from and after the Effective Date, and agrees to make any
payments, perform all covenants, stipulations, agreements, and obligations under the
Contracts accruing after the Effective Date. In no event, however, shall BIOCRYST be
deemed to have assumed, with respect to the Contracts, (i) any obligation to perform
which accrued prior to the Effective Date, (ii) any financial obligations, including
obligations to make payments or reimburse expenses, which accrued prior to the Effective
Date; (iii) any liabilities arising out of the actions or inactions of ORTHO, its agents
and contractors; or (iv) any liability or obligation attributable to ORTHO’s (or its
agents’ or contractors’) breach of any provision of the Contracts or any other
agreements with any third parties, ((i) through (iv) shall be collectively referred to as
the “Excluded Contract Liabilities”).  

23

	

SECTION 6. CLINICAL AND
CLINICAL SUPPORT STUDIES, DATA AND MATERIALS

     Excepting
only the Excluded Development Program Liabilities (defined below), ORTHO hereby
assigns to BIOCRYST any and all right, title and interest throughout the world
that ORTHO may have in and to the Clinical and Clinical Support Studies, Data
and Materials. In no event, however, shall BIOCRYST be deemed to have assumed,
with respect to the Clinical and Clinical Support Studies, Data and Materials,
(i) any obligation to perform which accrued prior to the Effective Date, (ii)
any financial obligations, including obligations to make payments or reimburse
expenses, which accrued prior to the Effective Date; (iii) any liabilities
arising out of the actions or inactions of ORTHO its agents and contractors or
arising out of the infringement of any third party intellectual property rights
by ORTHO, its agents and contractors; or (iv) any liability or obligation
attributable to ORTHO’s (or its agents’ or contractors’) breach
of any agreements with any third parties, ((i) through (iv) shall be
collectively referred to as the “Excluded Development Program
Liabilities”). 

SECTION 7. REGULATORY
FILINGS

     Excepting
only the Excluded Regulatory Liabilities (defined below), ORTHO hereby assigns
to BIOCRYST any and all right, title and interest throughout the world that
ORTHO may have in and to the Regulatory Filings. In no event, however, shall
BIOCRYST be deemed to have assumed, with respect to the Regulatory Filings, (i)
any obligation to perform which accrued prior to the Effective Date, (ii) any
financial obligations, including obligations to make payments or reimburse
expenses, which accrued prior to the Effective Date; (iii) any liabilities
arising out of the actions or in actions of ORTHO, its agents and contractors or
arising out of the infringement of any third party intellectual property rights
by ORTHO, its agents and contractors; or (iv) any liability or obligation
attributable to ORTHO’s (or its agents’ or contractors’) breach
of any agreements with any third parties; or (v) any liabilities attributable to
any failure of ORTHO (or its agents or contractors) to comply with any
applicable laws, regulations or rules, (collectively, the “Excluded
Regulatory Liabilities”). 

SECTION 8.
CONFIDENTIALITY

     8.1
The Confidentiality provisions set forth in Article 6 of the License Agreement
are hereby incorporated into this Agreement by reference as if fully set forth
herein, and are hereby extended to cover all information transmitted by either
Party to the other in furtherance of either Party’s obligations under this
Agreement. The parties hereby agree that for confidential information
transmitted pursuant to this Agreement the Parties’ confidentiality
obligations shall remain in effect for five (5) years from the date of each such
transmission. 

8.2 The Parties hereby
understand and agree that ORTHO may keep copies of the Data, Materials and
Regulatory Filings and such items reasonably related thereto, solely for
archival and regulatory or legal compliance purposes. 

24

	

SECTION 9. DRUG SUBSTANCE

     9.1
ORTHO hereby agrees to maintain the Drug Substance, as specified in Schedule C,
and to sell to BIOCRYST or its agents or designee(s) (BIOCRYST, its agents and
designees shall be collectively referred to in this Section 9 as
“BIOCRYST”) Drug Substance as requested by BIOCRYST upon the terms and
conditions set forth herein. The provisions of this Section 9 shall apply until
the earlier of (i) such time that all Drug Substance has been purchased from
ORTHO or (ii) August 31, 2002. ORTHO shall not otherwise use the Drug Substance
for itself or on behalf of a Third Party, nor shall it sell the Drug Substance
to any Third Party. 

     9.2
ORTHO agrees to supply BIOCRYST with such quantities of Drug Substance as
BIOCRYST may order by issuing a “Purchase Order” to ORTHO. ORTHO shall
comply with the terms set forth on each Purchase Order. Each Purchase Order will
be substantially in the form of Schedule H, attached hereto, which further sets
forth the terms and conditions that shall govern the purchases of Drug
Substance. In the event of a conflict between the terms of the Purchase Order
and the terms of this Agreement, this Agreement shall prevail. Purchase Orders
shall be delivered to ORTHO via fax, electronically or by any other mutually
agreeable method. ORTHO hereby agrees to fully cooperate with BIOCRYST in
supplying such Drug Substance to BIOCRYST, and agrees to promptly notify
BIOCRYST of any deficiencies in a Purchase Order and of any and all events that
would prevent ORTHO from timely or completely fulfilling any Purchase Order. 

     9.3
Until the earlier of (a) such time that all Drug Substance has been purchased
from ORTHO or (b) August 31, 2002, ORTHO agrees to store the Drug Substance in
its facilities located in Springhouse, PA in a controlled environment (with
respect to temperature, humidity and otherwise) so as to prevent degradation and
contamination of the Drug Substance to the fullest extent possible and as
otherwise required by the FDA or other law, rule, regulation or standards. 

     9.4
BIOCRYST shall pay to ORTHO Four Thousand Dollars ($4,000) per kilogram of Drug
Substance delivered by ORTHO pursuant to a Purchase Order. ORTHO’s right to
payment for delivery of Drug Substance pursuant to a Purchase Order shall accrue
upon delivery of the Drug Substance, however, BIOCRYST shall not be required to
make payment in respect of such delivered Drug Substance unless and until
BIOCRYST enters into an agreement with a third party for such third party to
develop and market a Neuraminidase Inhibitor Product, at which time all accrued
amounts shall become due and payable within 60 days. Thereafter, accrued
payments shall be due and payable within thirty (30) days of receipt by BIOCRYST
of a correct and undisputed invoice from ORTHO. BIOCRYST agrees to provide ORTHO
with prompt notice of its entering into an agreement with a third party for such
third party to develop and market a Neuraminidase Inhibitor Product. 

     9.5
BIOCRYST shall have the right to credit its out-of-pocket expenses related to
testing of the Drug Substance transferred or to be transferred to BIOCRYST
pursuant to this Agreement against the amounts payable to ORTHO pursuant to
Section 9.4, above. 

     9.6
BIOCRYST agrees to bear the reasonable costs of shipping Drug Substance from
storage to BIOCRYST. BIOCRYST agrees to pay any sales tax or other state, city
or Federal taxes related to the purchase of Drug Substance, other than taxes
based on the income or real property of ORTHO. Such shipping costs and taxes
shall be set forth on each invoice and shall be due and payable as set forth in
Section 9.4, above. 

25

	

     9.7
Notwithstanding anything to the Contrary in this Agreement, ORTHO agrees to
provide BIOCRYST, free of charge and promptly upon BIOCRYST’s request with: 

     (a)
such amounts of Drug Substance as BIOCRYST deems reasonably necessary in order
to complete the clinical studies with the designations PHI 026, PHI 030, and
TX003 and such amounts of the Drug Substance for carcinogenicity studies, animal
studies and QA as referred to in item number 19 of Schedule C-5: and, 

     (b)
reasonable amount of Drug Substance for BIOCRYST'S own use as laboratory reference
material and for BIOCRYST'S internal research purposes. 

SECTION 10. PAYMENT
PROVISIONS

     The
parties acknowledge and agree that as of the Effective Date, each Party is in
complete satisfaction of all of its financial obligations to the other in
connection with the termination of the License Agreement and the transfer to
BIOCRYST of the Development Program. Except as explicitly provided for in this
Agreement, neither Party shall be entitled to seek any further fees, expenses or
reimbursements from the other in connection with the termination of the License
Agreement and the transfer to BIOCRYST of the Development Program including, but
not limited to, all inventions, patents, trademarks, clinical trials and support
studies, data, materials, contracts and regulatory filings. 

SECTION 11.
REPRESENTATIONS AND WARRANTIES

     11.1
Each Party hereby represents and warrants that it is a corporation duly
organized, validly existing and in good standing under the laws of the state of
Delaware and has full organizational power and authority to enter into and
perform this Agreement, and to carry out the transactions contemplated under
this Agreement. 

     11.2
ORTHO hereby represents and warrants that (i) the execution, delivery and
performance by ORTHO of this Agreement, and the consummation by ORTHO of the
transactions contemplated herein, have been duly authorized by all requisite
organizational action; (ii) this Agreement and all of the obligations entered
into and undertaken in connection with the transactions contemplated herein to
which ORTHO is a party constitute, or will constitute upon the execution of such
agreements, the valid and binding obligations of ORTHO enforceable in accordance
with their respective terms, and (iii) the execution of and performance of the
transactions contemplated by this Agreement and compliance with its provisions
by ORTHO will not violate any provision of applicable law and will not conflict
with or result in any breach of any of the terms, conditions or provisions of,
or constitute a default under, or require a consent or waiver under,
ORTHO’s organizational documents or any indenture, lease, agreement or
other instrument to which ORTHO is a party or by which it or any of its
properties is bound, or any decree, judgment, order, statute, rule or regulation
applicable to ORTHO. 

     11.3
ORTHO hereby represents and warrants that: (i) it has made diligent efforts to
transfer to BIOCRYST (and will in the future) all Regulatory Filings, Clinical
and Clinical Support Studies, Data and Materials, according to the time
schedules set forth in Schedules E, A, D and C, respectively and should
additional items related to the foregoing be discovered by ORTHO or otherwise,
ORTHO will use diligent efforts to transfer such items to BIOCRYST and otherwise
assist BIOCRYST in connection therewith; (ii) it has filed all letters and other
documents with the FDA (and all foreign equivalents) in order to effect a
transfer of the Regulatory Filings to BIOCRYST; (iii) the Regulatory Filings,
Clinical and Clinical Support Studies, Data and Materials transferred to
BIOCRYST include all Regulatory Filings, Clinical and Clinical Support Studies,
Data and Materials initiated, conducted or generated in the Development Program;
and, (iv) it has or will otherwise fully comply with Article 14 of the License
Agreement together with all related time schedules set forth in this Agreement
and the Schedules hereto. 

26

	

     11.4
ORTHO hereby represents and warrants that it has the full power and authority to
assign to BIOCRYST all right title and interest in and to, and obligations
under, the Regulatory Filings, Clinical and Clinical Support Studies, Data and
Materials. 

     11.5
ORTHO hereby represents and warrants that, to the best of its knowledge, and
except for the interests of BIOCRYST, it has the full power and authority to
assign to BIOCRYST all right title and interest in and to the Joint Inventions,
Joint Patents, Existing Know-How, Existing Patents, Improvements and Improvement
Patents free and clear of all liens, claims and encumbrances of any nature.
ORTHO further represents and warrants that it has not granted and will not grant
any right to any Third Party in or to the Joint Inventions, Joint Patents,
Existing Know-How, Existing Patents, Improvements and Improvement Patents. 

     11.6
ORTHO hereby represents and warrants (i) that it has the full power and
authority to assign to BIOCRYST all right, title and interest in and to, and
obligations under, the Contracts, (ii) that it has satisfied all financial
obligations under, and all liabilities arising out of, the Contracts which
accrued prior to the Effective Date, and (iii) that it is not in breach of any
of the Contracts. 

     11.7
ORTHO hereby represents and warrants that it has complied and in the future will
continue to comply with all applicable laws, rules and regulations in connection
with its, or its agents and contractors, conduct of the Development Program. 

     11.8
ORTHO hereby represents and warrants that there is no threatened or pending
litigation related to the Development Program including but not limited to the
Licensed Products, the Contracts and the Clinical and Clinical Support Studies. 

     11.9
ORTHO hereby represents that all Drug Substance and other drug materials
transferred to BIOCRYST hereunder and in connection with the termination of the
License Agreement and the transfer to BIOCRYST of the Development Program at the
time of transfer to BIOCRYST that are labeled for use in human clinical trials,
pursuant to Schedule C, and not labeled for laboratory use or otherwise shipped
under quarantine pursuant to Schedule C, met (or will meet) all applicable FDA
requirements and were approved to be administered to humans in connection with
clinical trials. However, it is understood that, pursuant to Schedule C some
Drug Substance may be shipped to BIOCRYST in quarantine status. 

     11.10
THE EXPRESS REPRESENTATIONS AND WARRANTIES STATED IN THIS ARTICLE 11 ARE IN LIEU
OF ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION, THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. 

SECTION 12.
INDEMNIFICATION

     12.1
BIOCRYST agrees to indemnify, defend and hold ORTHO and its directors, officers,
employees and agents (the “ORTHO Indemnitees”) harmless from and
against any losses, costs, claims, damages, liabilities or expenses (including
without limitation, fees and disbursements of counsel incurred by ORTHO
Indemnitees in any action or proceeding between ORTHO and ORTHO Indemnitees and
ORTHO Indemnitees and any third party or otherwise) (collectively,
“Liabilities”) arising out of, or in connection with Third Party
claims relating to: (i) any breach by BIOCRYST of the confidentiality provisions
of this Agreement, (ii) personal injury or other liability, which occurs after
the Effective Date, to a participant in any clinical trial conducted by BIOCRYST
of a neuraminidase inhibitor which was the subject of the Development Program;
(iii) Liabilities, accruing after the Effective Date based upon BIOCRYST’S
or its agents or contractor’s, use, sale, distribution or marketing of any
neuraminidase inhibitor which was the subject of the Development Program; (iv)
BIOCRYST’s failure to comply with any law, regulation or rule; and, (v) the
gross negligence or intentional misconduct of BIOCRYST. 

27

	

     12.2
ORTHO agrees to indemnify, defend and hold BIOCRYST and its directors, officers,
employees and agents (the “BIOCRYST Indemnitees”) harmless from and
against any losses, costs, claims, damages, liabilities or expense (including
without limitation, fees and disbursements of counsel incurred by BIOCRYST
Indemnitees in any action or proceeding between ORTHO and BIOCRYST Indemnitees
and BIOCRYST Indemnitees and any third party or otherwise) (collectively,
“Liabilities”) arising out of, or in connection with Third Party
claims relating to: (i) the Development Program prior to the Effective Date;
(ii) any breach by ORTHO of its representations and warranties under this
Agreement; (iii) any breach by ORTHO of the confidentiality provisions of this
Agreement, (iv) any breach by ORTHO in the performance or observation of any
covenant, agreement, obligation or provision in any of the Contracts to be
performed or observed by ORTHO, (v) the Clinical and Clinical Support Studies
prior to the Effective Date, (vi) ORTHO’s failure to comply with any law,
regulation or rule, (vii) the administration of Drug Tablets, Drug Substance or
any other drug tablets manufactured by ORTHO from Drug Substance, to humans, to
the extent that such Liabilities are attributable to any failure of ORTHO in
properly manufacturing or storing the foregoing, or any failure of ORTHO to meet
any and all requirements of the FDA with respect to manufacture or storage of
the foregoing, and (viii) the negligence or intentional misconduct of ORTHO. 

     12.3
An indemnitee that intends to claim indemnification under this Agreement shall
promptly notify indemnifying party of any claim, demand, action or other
proceeding for which the Indemnitee intends to claim such indemnification, and
the indemnifying party shall have the right to participate in, and, to the
extent the indemnifying party so desires, to assume sole control of the defense
thereof with counsel selected by the indemnifying party; provided, however, that
the Indemnitee shall have the absolute right to retain its own counsel, with the
fees and expenses to be paid by the Indemnitee. The indemnity obligations under
this Agreement shall not apply to amounts paid in settlement of any loss, claim,
damage, liability or action if such settlement is effected without the consent
of the indemnifying party, which consent shall not be unreasonably withheld or
delayed. The Indemnitee, its employees and agents, shall cooperate fully with
the indemnifying party and its legal representatives in the investigation of any
action, claim or liability covered by an indemnification from the indemnifying
party. The Indemnifying party shall not, without the prior written consent of
the Indemnitee, effect any settlement of any pending or threatened action, suit
or proceeding in respect of which any Indemnitee is or could have been a party
and indemnity could have been sought hereunder by such Indemnitee, unless such
settlement includes an unconditional release of such Indemnitee from all
liability on claims that are the subject matter of such action, suit or
proceeding. 

SECTION 13. FURTHER
ASSURANCES

     13.1
In addition to the actions specifically provided for elsewhere in this
Agreement, from and after the Effective Date, each of the parties hereto shall
take, or cause to be taken, all actions, and to do, or cause to be done, all
things reasonably necessary, proper or advisable under applicable laws,
regulations and agreements to consummate and make effective the transactions
contemplated by this Agreement and to reasonably aid BIOCRYST in its assumption
and continuation of the Development Program, including the execution and
delivery of instruments of conveyance, assignment and transfer, cooperation in
all filings with, and to obtain all consents, approvals or authorizations of,
any governmental authority or any other person under any permit, license,
agreement, indenture or other instrument, at the expense of the requesting
party. 

28

	

     13.2
In the event that following the Effective Date ORTHO discovers any document,
data, contract, invention, patent, or any other item related to the Development
Program, which has not been transferred to BIOCRYST but which ORTHO is obligated
to transfer and/or assign to BIOCRYST pursuant to the License Agreement, or
makes any invention that would be characterized as a Joint Invention under the
License Agreement, ORTHO shall promptly notify BIOCRYST and assign and transfer
the foregoing to BIOCRYST. 

     13.3
In the event that ORTHO is contacted by any third party (including for example,
the FDA), in any fashion regarding the subject matter of the Development
Program, ORTHO shall promptly notify BIOCRYST of the of the nature and substance
of such contact or inquiry and shall comply with its confidentiality obligations
set forth herein. 

SECTION 14.
INTERPRETATION

     The
construction, validity and performance of this Agreement shall be governed in
all respects by the laws of the State of New York, without giving effect to
principles of conflict of laws. 

SECTION 15. DISPUTE
RESOLUTION

     The
Dispute Resolution provisions set forth in Article 19 of the License Agreement
are hereby incorporated into this Agreement by reference, and shall apply to
this Agreement as if fully set forth herein. 

SECTION 16. NOTICES

     16.1
Any notice required or permitted to be given under this Agreement shall be
mailed by registered or certified mail, postage prepaid, addressed to the Party
to be notified at its address stated below, or at such other address as may
hereafter be furnished in writing to the notifying Party or by telefax (with
confirmation sent by mail) to the numbers set forth below or to such changed
telefax numbers as may thereafter be furnished. 

	 	
If
to BIOCRYST:

	 	
BIOCRYST Pharmaceuticals, Inc.

2190 Parkway Lake Drive

Birmingham, Alabama 35244

Telefax No.: (205) 444-4640

Attention:  Chief Executive Officer

	 	
If
to ORTHO:

	 	
President

ORTHO-McNeil Pharmaceutical, Inc.

U.S. Route 202 South

Raritan, NJ 08869-0602

Telefax No.: (908) 218-1416

	

Any such notice shall be
deemed to have been received when it has been delivered in the ordinary course
of post or received by telefax. 

29

	

SECTION 17. WAIVER

     The
failure on the part of BIOCRYST or ORTHO to exercise or enforce any rights
conferred upon it hereunder shall not be deemed to be a waiver of any such
rights nor operate to bar the exercise or enforcement thereof at any time or
times thereafter. 

SECTION 18. ENTIRE
AGREEMENT

     This
Agreement constitutes the entire agreement between the Parties hereto concerning
the subject matter hereof and any representation, promise or condition in
connection therewith, not incorporated herein, shall not be binding upon either
Party. 

SECTION 19. ASSIGNMENT

     This
Agreement, and all rights and obligations hereunder, is personal to ORTHO and
shall not be assigned in whole or in part by ORTHO to any other person or
company (other than Affiliates of ORTHO) without the prior written consent of
BIOCRYST. When assigned as permitted herein this Agreement shall be binding on
each Party’s successors and assigns. 

SECTION 20. TITLES

     It
is agreed that the marginal headings appearing at the beginning of the numbered
Articles hereof have been inserted for convenience only and do not constitute
any part of this Agreement. 

SECTION 21.
UNENFORCEABLE PROVISIONS

     Any
provision hereof which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective only to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provisions in any other
jurisdiction. 

SECTION 22. OTHERS

     As
used in this Agreement, singular includes the plural and plural includes the
singular, wherever so required by fact or context. 

SECTION 23. EXECUTION

     This
Agreement shall be executed in two (2) counterparts each of which shall for all
purposes be deemed an original. 

     IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by
their respective duly authorized officers or representatives as of the day and
year first above written. 

30

	

	 	 	BIOCRYST PHARMACEUTICALS, INC.
	 	 	 
	WITNESS		
By:

          —————————————

Title:

          —————————————

Date:

          —————————————

	 	 	ORTHO-McNEIL PHARMACEUTICAL, INC.
	 	 	 
	WITNESS		
By:

          —————————————

Title:

          —————————————

Date:

          —————————————

	 	 	R.W. JOHNSON PHARMACEUTICAL RESEARCH INSTITUTE, DIVISION OF ORTHO-McNEIL PHARMACEUTICAL, INC.
	 	 	 
	WITNESS		
By:

          —————————————

Title:

          —————————————

Date:

          —————————————

	

31

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]