Document:

exv10w1

Exhibit 10.1

PURCHASE AND SALE AGREEMENT

dated as of March 9, 2011

between

BIOCRYST PHARMACEUTICALS, INC.

and

JPR ROYALTY SUB LLC

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I	 	 	 	 
	DEFINED TERMS AND RULES OF CONSTRUCTION	 	 	 	 
	 
	Section 1.1 Defined Terms
	 	 	1	 
	Section 1.2 Rules of Construction
	 	 	9	 
	 
	ARTICLE II	 	 	 	 
	PURCHASE AND SALE OF THE PURCHASED ASSETS	 	 	 	 
	 
	Section 2.1 Purchase and Sale
	 	 	11	 
	Section 2.2 Entitlement to Payments
	 	 	12	 
	Section 2.3 Purchase Price
	 	 	12	 
	Section 2.4 No Assumed Obligations
	 	 	12	 
	Section 2.5 Excluded Assets
	 	 	13	 
	 
	ARTICLE III	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF THE SELLER	 	 	 	 
	 
	Section 3.1 Organization
	 	 	13	 
	Section 3.2 Seller Authorization
	 	 	13	 
	Section 3.3 Governmental and Third Party Authorizations
	 	 	13	 
	Section 3.4 Ownership
	 	 	14	 
	Section 3.5 Solvency
	 	 	14	 
	Section 3.6 No Litigation
	 	 	14	 
	Section 3.7 Compliance with Laws
	 	 	15	 
	Section 3.8 No Conflicts
	 	 	15	 
	Section 3.9 Intellectual Property Rights
	 	 	16	 
	Section 3.10 Regulatory Approval, Manufacturing and Marketing
	 	 	18	 
	Section 3.11 No Subordination
	 	 	18	 
	Section 3.12 Counterparty License Agreement and UAB Agreement.
	 	 	18	 
	Section 3.13 Set-off and Other Sources of Royalty Reduction
	 	 	20	 
	Section 3.14 UCC Matters
	 	 	20	 
	Section 3.15 Tax Matters
	 	 	20	 
	Section 3.16 UAB Agreement
	 	 	20	 
	Section 3.17 Margin Stock
	 	 	21	 
	Section 3.18 Disclosure
	 	 	21	 
	 
	ARTICLE IV	 	 	 	 
	COVENANTS	 	 	 	 
	 
	Section 4.1 Books and Records; Notices
	 	 	21	 

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	 	 	Page	 

	Section 4.2 Confidentiality; Public Announcement
	 	 	22	 
	Section 4.3 Further Assurances
	 	 	23	 
	Section 4.4 Payments on Account of the Purchased Assets
	 	 	24	 
	Section 4.5 Counterparty License Agreement
	 	 	25	 
	Section 4.6 Termination of the Counterparty License Agreement; Mergers, Consolidations and Asset Sales Involving Counterparty
	 	 	28	 
	Section 4.7 Audits
	 	 	28	 
	Section 4.8 Existence
	 	 	29	 
	Section 4.9 Approval of Actions of Purchaser
	 	 	29	 
	Section 4.10 Payments to UAB
	 	 	29	 
	Section 4.11 Currency Hedge Agreement
	 	 	29	 
	 
	ARTICLE V	 	 	 	 
	THE CLOSING	 	 	 	 
	 
	Section 5.1 Closing
	 	 	32	 
	Section 5.2 Closing Deliverables of the Seller
	 	 	32	 
	Section 5.3 Closing Deliverables of the Purchaser
	 	 	32	 
	 
	ARTICLE VI	 	 	 	 
	INDEMNIFICATION	 	 	 	 
	 
	Section 6.1 Indemnification by the Seller
	 	 	32	 
	Section 6.2 Procedures
	 	 	33	 
	Section 6.3 Exclusive Remedy
	 	 	34	 
	 
	ARTICLE VII	 	 	 	 
	MISCELLANEOUS	 	 	 	 
	 
	Section 7.1 Survival
	 	 	35	 
	Section 7.2 Specific Performance
	 	 	35	 
	Section 7.3 Notices
	 	 	35	 
	Section 7.4 Successors and Assigns
	 	 	36	 
	Section 7.5 Independent Nature of Relationship
	 	 	36	 
	Section 7.6 Entire Agreement
	 	 	36	 
	Section 7.7 Governing Law
	 	 	37	 
	Section 7.8 Waiver of Jury Trial
	 	 	37	 
	Section 7.9 Severability
	 	 	38	 
	Section 7.10 Counterparts
	 	 	38	 
	Section 7.11 Amendments; No Waivers
	 	 	38	 
	Section 7.12 Limited Recourse
	 	 	38	 
	Section 7.13 Cumulative Remedies
	 	 	39	 
	Section 7.14 Table of Contents and Headings
	 	 	39	 
	Section 7.15 Acknowledgment and Agreement
	 	 	39	 

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	Exhibit A
	 	Form of Bill of Sale

	Exhibit B
	 	Form of Counterparty Instruction

	Exhibit C
	 	Intellectual Property Matters

iii

 

PURCHASE AND SALE AGREEMENT

     This PURCHASE AND SALE AGREEMENT (this “Purchase and Sale Agreement”) dated as of
March 9, 2011 is between BIOCRYST PHARMACEUTICALS, INC., a Delaware corporation (the
“Seller”), and JPR ROYALTY SUB LLC, a Delaware limited liability company (the
“Purchaser”).

W I T N E S S E T H

:

     WHEREAS, the Seller has the right to receive royalties based on Net Sales of the Licensed
Products in the Territory under the Counterparty License Agreement; and

     WHEREAS, the Seller desires to sell, transfer, convey, assign, contribute and grant to the
Purchaser, and the Purchaser desires to purchase, acquire and accept from the Seller, the Purchased
Assets, upon and subject to the terms and conditions set forth in this Purchase and Sale Agreement;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements, representations
and warranties set forth herein and of other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto covenant and agree as follows:

ARTICLE I

DEFINED TERMS AND RULES OF CONSTRUCTION

     Section 1.1 Defined Terms. The following terms, as used herein, shall have the
following respective meanings:

     “Affiliate” means, with respect to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such Person or is a
director, officer or manager of such Person. For purposes of this definition, “control” of
a Person means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the ownership of Voting
Securities, by contract or otherwise, and the terms “controlled” and “controlling”
have meanings correlative to the foregoing. For purposes hereof, the term “Affiliate” when
used in respect of the Seller shall be deemed to exclude the Purchaser.

     “Bankruptcy Event” means the occurrence of any of the following in respect of a
Person: (i) an admission in writing by such Person of its inability to pay its debts generally or a
general assignment by such Person for the benefit of creditors; (ii) the filing of any petition or
answer by such Person seeking to adjudicate itself as bankrupt or insolvent, or seeking for itself
any liquidation, winding-up, reorganization, arrangement, adjustment, protection, relief or
composition of such Person or its debts under any law relating to bankruptcy, insolvency,
receivership, winding-up, liquidation, reorganization, examination, relief of debtors or other
similar law now or hereafter in effect, or seeking, consenting to or acquiescing in the entry of an
order for relief in any case under any such law, or the appointment of or taking possession by a

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receiver, trustee, custodian, liquidator, examiner, assignee, sequestrator or other similar
official for such Person or for any substantial part of its property; (iii) corporate or other
entity action taken by such Person to authorize any of the actions set forth in clause (i) or
clause (ii) above; or (iv) without the consent or acquiescence of such Person, the entering of an
order for relief or approving a petition for relief or reorganization or any other petition seeking
any reorganization, arrangement, composition, readjustment, liquidation, dissolution or other
similar relief under any present or future bankruptcy, insolvency or similar statute, law or
regulation, or the filing of any such petition against such Person, or, without the consent or
acquiescence of such Person, the entering of an order appointing a trustee, custodian, receiver or
liquidator of such Person or of all or any substantial part of the property of such Person, in each
case where such petition or order shall remain unstayed or shall not have been stayed or dismissed
within 90 days from entry thereof.

     “Bill of Sale” means that certain bill of sale dated as of the Closing Date executed
by the Seller and the Purchaser substantially in the form of Exhibit A.

     “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by applicable law to remain closed.

     “Capital Securities” means, with respect to any Person, all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s capital, whether now outstanding or issued after the Closing Date, including common
shares, ordinary shares, preferred shares, membership interests or share capital in a limited
liability company or other Person, limited or general partnership interests in a partnership,
beneficial interests in trusts or any other equivalent of such ownership interest or any options,
warrants and other rights to acquire such shares or interests, including rights to allocations and
distributions, dividends, redemption payments and liquidation payments.

     “Closing” has the meaning set forth in Section 5.1.

     “Closing Date” has the meaning set forth in Section 5.1.

     “Collateral” has the meaning set forth in the Granting Clause of the Indenture.

     “Collection Account” has the meaning set forth in Section 3.1(a) of the Indenture.

     “Commercial Sales” has the meaning set forth in Section 9.3(a) of the Counterparty
License Agreement.

     “Compound” has the meaning set forth in Section 1.1(m) of the Counterparty License
Agreement.

     “Confidential Information” means, as it relates to the Seller and its Affiliates, the
Licensed Products and the Intellectual Property Rights, all information (whether written or oral,
or in electronic or other form) furnished after the Closing Date involving or relating in any way,

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directly or indirectly, to the Purchased Assets or the Royalties, including (a) any license,
sublicense, assignment, product development, royalty, sale, supply or other agreements (including
the Counterparty License Agreement, the UAB Agreement and the Currency Hedge Agreement) involving
or relating in any way, directly or indirectly, to the Purchased Assets, the Royalties or the
intellectual property, compounds or products giving rise to the Purchased Assets, and including all
terms and conditions thereof and the identities of the parties thereto, (b) any reports, data,
materials or other documents of any kind concerning or relating in any way, directly or indirectly,
to the Seller, the Purchased Assets, the Royalties or the intellectual property, compounds or
products giving rise to the Purchased Assets, and including reports, data, materials or other
documents of any kind delivered pursuant to or under any of the agreements referred to in clause
(a) above, and (c) any inventions, devices, improvements, formulations, discoveries, compositions,
ingredients, patents, patent applications, know-how, processes, trial results, research,
developments or any other intellectual property, trade secrets or information involving or relating
in any way, directly or indirectly, to the Purchased Assets or the compounds or products giving
rise to the Purchased Assets; provided, however, that, solely for purposes of this
Purchase and Sale Agreement, Confidential Information shall not include information that is (i)
already in the public domain at the time the information is disclosed, (ii) lawfully obtainable
from other sources, (iii) required to be disclosed in any document to be filed with any
Governmental Authority or (iv) required to be disclosed by court or administrative order or under
laws, rules and regulations applicable to the Seller or the Purchaser or their respective
Affiliates (including securities laws, rules and regulations), as the case may be, or pursuant to
the rules and regulations of any stock exchange or stock market on which securities of the Seller
or the Purchaser or their respective Affiliates may be listed for trading.

     “Counterparty” means Shionogi & Co., Ltd., a Japanese corporation.

     “Counterparty Instruction” means the irrevocable direction to Counterparty in the form
set forth in Exhibit B.

     “Counterparty License Agreement” means that certain License, Development and
Commercialization Agreement dated as of February 28, 2007, as amended by that certain First
Amendment to License, Development and Commercialization Agreement dated as of September 30, 2008,
that certain letter agreement dated May 10, 2010 and that certain Consent Agreement dated as of
November 2, 2010, between the Seller and Counterparty. The term “Counterparty License
Agreement” shall include all rights that arise therefrom and relate thereto.

     “Currency Hedge Agreement” means that certain Confirmation (including the related
letter agreement) dated as of March 9, 2011 and the ISDA Master Agreement (including the schedule
and credit support annex included therein) (solely insofar as such ISDA Master Agreement relates to
such Confirmation and not to any other “Transaction” as such term is defined in such ISDA Master
Agreement) dated as of March 7, 2011, in each case between the Seller and the Currency Hedge
Provider (and any replacement foreign currency hedge arrangement entered into by the Seller as
permitted by Section 4.11(e)(i) of this Purchase and Sale Agreement) and, with respect to such
letter agreement, among the Seller, the Currency Hedge Provider, the Purchaser and the Trustee.

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     “Currency Hedge Payments” means the amounts required to be paid to the Seller by the
Currency Hedge Provider pursuant to the Currency Hedge Agreement (subject to all of the Currency
Hedge Provider’s rights under the Currency Hedge Agreement (including, to the extent provided in
the Currency Hedge Agreement, liquidation, netting and setoff rights, specified conditions
precedent to the Currency Hedge Provider’s required payments and performance and rights to realize
on margin or other collateral)) except any amount required to be paid to the Seller by the Currency
Hedge Provider pursuant to the Currency Hedge Agreement as a result of a termination of the
Currency Hedge Agreement by the Seller permitted by Section 4.11(e) of this Purchase and Sale
Agreement.

     “Currency Hedge Provider” means Morgan Stanley Capital Services Inc.

     “Discrepancy” has the meaning set forth in Section 2.2(b).

     “Disputes” has the meaning set forth in Section 3.9(e).

     “Dollar” or the sign “$” means United States dollars.

     “Event of Default” has the meaning set forth in Section 4.1 of the Indenture.

     “Excluded Liabilities and Obligations” has the meaning set forth in Section 2.4.

     “FDA” means the U.S. Food and Drug Administration and any successor agency thereto.

     “Field” has the meaning set forth in Section 1.1(u) of the Counterparty License
Agreement.

     “Future Data” has the meaning set forth in Section 2.5(c)(i) of the Counterparty
License Agreement.

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

     “Governmental Authority” means the government of the United States, any other nation
or any political subdivision thereof, whether state or local, and any agency, authority (including
supranational authority), commission, instrumentality, regulatory body, court, central bank or
other Person exercising executive, legislative, judicial, taxing, regulatory or administrative
powers or functions of or pertaining to government, including each Patent Office, the FDA and any
other government authority in any country.

     “Indenture” means that certain indenture, dated as of the Closing Date, by and between
the Purchaser and U.S. Bank National Association, a national banking association, as initial
trustee thereunder, and any successor appointed in accordance with the terms thereof.

     “Intellectual Property Rights” means: (a) patents and patent applications; (b)
continuations, continuations-in-part, divisionals and substitute applications with respect to any
such patent application; (c) patents issued based on or claiming priority to any such patent

4

 

applications; (d) reissue, reexamination, renewal or extension (including any supplemental
patent certificate) of any such patents; and (e) confirmation patent or registration patent or
patent of addition based on any such patents, in each case, owned, licensed or controlled by the
Seller, that are filed in the Territory solely to the extent that any of the foregoing relate to
the manufacture, use or sale of Licensed Products and/or Compound in the Field.

     “Issuer Pledged Collateral” has the meaning set forth in Section 2.1 of the Pledge and
Security Agreement.

     “Know-How” has the meaning set forth in Section 1.1(hh) of the Counterparty License
Agreement.

     “Knowledge” means the actual knowledge of any of the following officers or employees
of the Seller: the Chief Executive Officer; the Chief Financial Officer; the General Counsel; the
Vice President, Drug Discovery; the Vice President, Strategic Planning and Commercialization; and
the Chief Medical Officer.

     “Licensed Product” has the meaning set forth in Section 1.1(jj) of the Counterparty
License Agreement.

     “Lien” means any security interest, mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or otherwise), charge against or interest in
property or other priority or preferential arrangement of any kind or nature whatsoever, including
any conditional sale, any sale with recourse or any agreement to give any security interest.

     “Loss” means any loss, Set-off, cost, charge, expense, interest, fee, payment, demand,
liability, claim, action, proceeding, penalty, fine, damages, judgment, order or other sanction.

     “Material Adverse Change” means any event, circumstance or change resulting in a
material adverse effect on (a) the legality, validity or enforceability of any of the Transaction
Documents, the Counterparty License Agreement or the back-up security interest granted pursuant to
Section 2.1(d), (b) the right or ability of the Servicer, the Seller (or any permitted assignee) or
the Purchaser to perform its obligations under any of the Transaction Documents or the Counterparty
License Agreement, in each case to which it is a party, or to consummate the transactions
contemplated hereunder or thereunder, (c) the rights or remedies of the Purchaser under any of the
Transaction Documents or the Counterparty License Agreement, (d) the timing, amount or duration of
the Royalties or any Currency Hedge Payments, (e) the Purchased Assets, (f) the Intellectual
Property Rights or (g) the ability of the Trustee to realize the practical benefit of the Pledge
and Security Agreement (including any failure to have a perfected Lien on any of the Issuer Pledged
Collateral as required by the Indenture).

     “Material Use” has the meaning set forth in Section 1.1(mm) of the Counterparty
License Agreement.

     “Memorandum” means the private placement memorandum of the Purchaser dated March 1,
2011.

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     “Net Sales” has the meaning set forth in Section 1.1(pp) of the Counterparty License
Agreement.

     “New Formulations” has the meaning set forth in Section 1.1(jj) of the Counterparty
License Agreement.

     “NI Option” has the meaning set forth in Section 12.1 of the Counterparty License
Agreement.

     “NI Option Period” has the meaning set forth in Section 12.1 of the Counterparty
License Agreement.

     “Non-Commercial Sales” has the meaning set forth in Section 9.3(a) of the Counterparty
License Agreement.

     “Noteholder” means any Person in whose name a Note is registered from time to time in
the Register for such Note.

     “Notes” means any notes issued under the Indenture from time to time, including the
JPR PhaRMASM Senior Secured 14% Notes due 2020 of the Purchaser in the initial
outstanding principal balance of $30,000,000 issued on the Closing Date.

     “Option” means a foreign currency exchange option set forth in the Currency Hedge
Agreement.

     “Options” means, collectively, the foreign currency exchange options set forth in the
Currency Hedge Agreement.

     “Patent” means any pending or issued patent or continuation, continuation in part,
division, extension or reissue thereof.

     “Patent Office” means the applicable patent office, including the United States Patent
and Trademark Office and any comparable foreign patent office, for any Intellectual Property Rights
that are Patents.

     “Person” means any natural person, firm, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust, unincorporated organization,
Governmental Authority or any other legal entity, including public bodies, whether acting in an
individual, fiduciary or other capacity.

     “Pledge and Security Agreement” means that certain pledge and security agreement dated
as of the Closing Date made by the Seller to the Trustee.

     “Purchase Agreements” means those certain note purchase agreements dated the Closing
Date among the Purchaser, the Seller and the note purchasers named therein.

     “Purchase and Sale Agreement” has the meaning set forth in the preamble.

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     “Purchased Assets” means, collectively, the Seller’s (a) right, title and interest in,
to and under the Counterparty License Agreement to (i) receive all of the Royalties, (ii) receive
the reports produced by Counterparty pursuant to the Counterparty License Agreement in respect of
sales of Licensed Products in the Territory, (iii) audit the records of Counterparty in respect of
such sales pursuant to the Counterparty License Agreement and receive an audit report summarizing
the results of any such audit and (iv) make indemnification claims against Counterparty pursuant to
the Counterparty License Agreement, (b) rights under the Currency Hedge Agreement to receive the
Currency Hedge Payments, (c) right to disapprove of an assignment of the Counterparty License
Agreement by Counterparty and (d) right to transfer, assign or pledge the foregoing, in whole or in
part, and the proceeds of and the rights to enforce each of the foregoing. For the avoidance of
doubt, Purchased Assets do not include (x) any amounts payable by Counterparty to the Seller in
consideration for the supply by the Seller of Compound to Counterparty or (y) any royalties payable
by Counterparty to the Seller arising out of, related to or resulting from Non-Commercial Sales.

     “Purchase Price” has the meaning set forth in Section 2.3.

     “Purchaser” has the meaning set forth in the preamble.

     “Purchaser Indemnified Party” has the meaning set forth in Section 6.1.

     “RAPIACTA” means (i) the brand name for peramivir in Japan and (ii) the equivalent
product sold by Counterparty or its Affiliates in Taiwan under such brand name or another brand
name.

     “Register” has the meaning set forth in Section 2.3(a) of the Indenture.

     “Regulatory Agency” means a Governmental Authority with responsibility for the
approval of the marketing and sale of pharmaceuticals or other regulation of pharmaceuticals in any
country.

     “Regulatory Approvals” means, collectively, all regulatory approvals, registrations,
certificates, authorizations, permits and supplements thereto, as well as associated materials
(including the product dossier) pursuant to which the Licensed Products may be marketed, sold and
distributed in a jurisdiction, issued by the appropriate Regulatory Agency.

     “Royalties” means (a) all royalties paid, owed, accrued or otherwise required to be
paid to the Seller or any of its Affiliates under the Counterparty License Agreement arising out
of, related to or resulting from Commercial Sales by Counterparty or its Affiliates of Licensed
Product in the Territory (including not only from the Commercial Sale of currently approved
indications for Licensed Product in the Territory, but also from any additionally approved
indications and from any off-label usage for Licensed Product in the Territory) and, in each case,
attributable to the period commencing on the Royalties Commencement Date, including (i) all amounts
due or to be paid to the Seller or any of its Affiliates under Section 9.3(b) of the Counterparty
License Agreement and (ii) all amounts due or to be paid to the Seller or any of its Affiliates in
lieu thereof (whether based upon Commercial Sales of Licensed Product in the

7

 

Territory or otherwise), (b) all future milestone payments paid, owed, accrued or otherwise
required to be paid to the Seller or any of its Affiliates under the Counterparty License
Agreement, (c) all indemnity payments, recoveries, damages or award or settlement amounts paid or
payable to the Seller or any of its Affiliates by any third party and arising out of or relating to
the Commercial Sale of Licensed Products in the Territory or as a result of a breach by any Person
other than the Seller of the Counterparty License Agreement with respect to the Commercial Sale of
Licensed Products in the Territory and attributable to the period commencing on the Royalties
Commencement Date, including pursuant to Section 4.5(d) or Section 4.5(e), (d) all other amounts
paid by Counterparty or any other Person pursuant to the Counterparty License Agreement arising out
of, related to or resulting from the Commercial Sale by Counterparty or its Affiliates of Licensed
Products in the Territory and attributable to the period commencing on the Royalties Commencement
Date, (e) all accounts (as defined under the UCC) evidencing the rights to the payments and amounts
described herein and (f) all proceeds (as defined under the UCC) of any of the foregoing.

     “Royalties Commencement Date” means January 1, 2011.

     “SEC” means the U.S. Securities and Exchange Commission.

     “Seller” has the meaning set forth in the preamble.

     “Seller Account” has the meaning set forth in Section 4.4(d).

     “Seller Shortfall” means the amount, if any, payable by the Seller to Counterparty
under the Counterparty License Agreement or to the Currency Hedge Provider under the Currency Hedge
Agreement that is due and payable but that has not been paid by the Seller.

     “Seller Shortfall Payment” means any payment made by the Trustee in respect of any
Seller Shortfall.

     “Servicer” means the Seller, acting in its capacity as servicer pursuant to the
Servicing Agreement (or any other Person appointed to succeed the Seller as such or any successor
thereto pursuant to the Servicing Agreement).

     “Servicing Agreement” means that certain servicing agreement dated as of the Closing
Date between the Purchaser and the Seller.

     “Set-off” means any set-off, off-set, rescission, counterclaim, reduction, deduction
or defense.

     “Subsidiary” means, with respect to any Person, any other Person of which more than
50% of the outstanding Voting Securities of such other Person (irrespective of whether at the time
Capital Securities of any other class or classes of such other Person shall or might have voting
power upon the occurrence of any contingency) is at the time directly or indirectly owned or
controlled by such Person, by such Person and one or more other Subsidiaries of such Person

8

 

or by one or more other Subsidiaries of such Person. For purposes hereof, the term
“Subsidiary” when used in respect of the Seller shall be deemed to exclude the Purchaser.

     “Territory” means Japan and Taiwan.

     “Third Party New Formulations License” has the meaning set forth in Section 9.3(e)(i)
of the Counterparty License Agreement.

     “Transaction Documents” means this Purchase and Sale Agreement, the Bill of Sale, the
Counterparty Instruction, the Indenture, the Notes, the Pledge and Security Agreement, the
Servicing Agreement, the Purchase Agreements and the Currency Hedge Agreement.

     “Trustee” means U.S. Bank National Association, a national banking association, as
initial trustee of the Notes under the Indenture, and any successor appointed in accordance with
the terms of the Indenture.

     “UAB” means The UAB Research Foundation, a non-profit corporation.

     “UAB Agreement” means that certain Joint Research and License Agreement dated as of
November 23, 1994 between the Seller and UAB, as amended by that certain letter agreement dated
October 9, 1996 and by that certain Agreement dated as of December 16, 2010 between the Seller and
UAB.

     “UCC” means the Uniform Commercial Code as in effect from time to time in the State of
New York; provided, that, if, with respect to any financing statement or by reason of any
provisions of law, the perfection or the effect of perfection or non-perfection of the back-up
security interest granted pursuant to Section 2.1(d) is governed by the Uniform Commercial Code as
in effect in a jurisdiction of the United States other than the State of New York, then
“UCC” means the Uniform Commercial Code as in effect from time to time in such other
jurisdiction for purposes of the provisions of this Purchase and Sale Agreement and any financing
statement relating to such perfection or effect of perfection or non-perfection.

     “U.S.” or “United States” means the United States of America, its 50 states,
each territory thereof and the District of Columbia.

     “Voting Securities” means, with respect to any Person, Capital Securities of any class
or kind ordinarily having the power to vote for the election of directors, managers or other voting
members of the governing body of such Person.

     “Yen” or the sign “¥” means Japanese yen.

     Section 1.2 Rules of Construction. Unless the context otherwise requires, in this
Purchase and Sale Agreement:

          (a) A term has the meaning assigned to it and an accounting term not otherwise defined has the
meaning assigned to it in accordance with GAAP.

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          (b) Unless otherwise defined, all terms used herein that are defined in the UCC shall have the
meanings stated in the UCC.

          (c) Words of the masculine, feminine or neuter gender shall mean and include the correlative
words of other genders, and words in the singular shall include the plural, and vice versa.

          (d) The terms “include”, “including” and similar terms shall be construed as if followed by
the phrase “without limitation”.

          (e) References to an agreement or other document include references to such agreement or
document as amended, restated, reformed, supplemented or otherwise modified in accordance with the
terms thereof and include any annexes, exhibits and schedules attached thereto, and the provisions
thereof apply to successive events and transactions.

          (f) References to any statute or other legislative provision shall include any statutory or
legislative modification or re-enactment thereof, or any substitution therefor.

          (g) References to any Person shall be construed to include such Person’s successors and
permitted assigns.

          (h) The word “will” shall be construed to have the same meaning and effect as the word
“shall”.

          (i) The
words
“hereof”, “herein”,
“hereunder” and similar terms when used in this Purchase and Sale Agreement shall
refer to this Purchase and Sale Agreement as a whole and not to any particular provision hereof,
and Article, Section and Exhibit references herein are references to Articles and Sections of, and
Exhibits to, this Purchase and Sale Agreement unless otherwise specified.

          (j) In the computation of a period of time from a specified date to a later specified date,
the word
“from” means “from and including” and each of the
words
“to”
and “until” means “to but excluding”.

          (k) Where any payment is to be made, any funds are to be applied or any calculation is to be
made under this Purchase and Sale Agreement on a day that is not a Business Day, unless this
Purchase and Sale Agreement otherwise provides, such payment shall be made, such funds shall be
applied and such calculation shall be made on the next succeeding Business Day, and payments shall
be adjusted accordingly.

          (l) Any reference herein to a term that is defined by reference to its meaning in the
Counterparty License Agreement or the UAB Agreement shall refer to such term’s meaning in the
Counterparty License Agreement or the UAB Agreement, as the case may be, as in existence on the
date hereof (and not to any new, substituted or amended version thereof).

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ARTICLE II

PURCHASE AND SALE OF THE PURCHASED ASSETS

     Section 2.1 Purchase and Sale.

          (a) Subject to the terms and conditions of this Purchase and Sale Agreement, on the Closing
Date, the Seller shall sell, transfer, convey, assign, contribute and grant to the Purchaser, and
the Purchaser shall purchase, acquire and accept from the Seller, all of the Seller’s right, title
and interest in and to the Purchased Assets, free and clear of any and all Liens, other than those
Liens created in favor of the Purchaser by the Transaction Documents.

          (b) The Seller and the Purchaser intend and agree that the sale, transfer, conveyance,
assignment, contribution and granting of the Purchased Assets under this Purchase and Sale
Agreement shall be, and are, a true, complete, absolute and irrevocable assignment and sale by the
Seller to the Purchaser of the Purchased Assets and that such assignment and sale shall provide the
Purchaser with the full benefits of ownership of the Purchased Assets. Neither the Seller nor the
Purchaser intends the transactions contemplated hereunder to be, or for any purpose characterized
as, a loan from the Purchaser to the Seller or a pledge or assignment of only a security agreement.
The Seller waives any right to contest or otherwise assert that this Purchase and Sale Agreement
is other than a true, complete, absolute and irrevocable sale and assignment by the Seller to the
Purchaser of the Purchased Assets under applicable law, which waiver shall be enforceable against
the Seller in any Bankruptcy Event relating to the Seller. The sale, transfer, conveyance,
assignment, contribution and granting of the Purchased Assets shall be reflected on the Seller’s
financial statements and other records as a sale of assets to the Purchaser (except to the extent
GAAP or the rules of the SEC require otherwise with respect to the Seller’s consolidated financial
statements).

          (c) The Seller hereby authorizes the Purchaser or its designee to execute, record and file,
and consents to the Purchaser or its designee executing, recording and filing, at the Purchaser’s
sole cost and expense, financing statements in the appropriate filing offices under the UCC (and
continuation statements with respect to such financing statements when applicable), and amendments
thereto or assignments thereof, meeting the requirements of applicable law in such manner and in
such jurisdictions as are necessary or appropriate to evidence the purchase, acquisition and
acceptance by the Purchaser of the Purchased Assets and to perfect the security interest in the
Purchased Assets granted by the Seller to the Purchaser pursuant to Section 2.1(d).

          (d) Notwithstanding that the Seller and the Purchaser expressly intend for the sale, transfer,
conveyance, assignment, contribution and granting of the Purchased Assets to be a true, complete,
absolute and irrevocable sale and assignment, the Seller hereby grants, conveys, pledges and
assigns to the Purchaser, as security for its obligations created hereunder in the event that the
transfer contemplated by this Purchase and Sale Agreement is held not to be a sale, a security
interest in and to all of the Seller’s right, title and interest in, to and under the Purchased
Assets and, in such event, this Purchase and Sale Agreement shall constitute a security agreement.

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     Section 2.2
Entitlement to Payments. The Purchaser shall be entitled to receive the
following transfers and payments in respect of the Purchased Assets:

          (a) The Seller agrees that the
Purchaser is entitled to the Purchased Assets and may enforce such entitlement directly against
Counterparty pursuant to the Counterparty License Agreement and the Currency Hedge Provider
pursuant to the Currency Hedge Agreement and, notwithstanding any claim or Set-off that the Seller
may have against the Purchaser or that Counterparty or the Currency Hedge Provider may have against
the Seller, the Seller agrees and will use its best efforts to ensure (including taking such
actions as the Purchaser shall reasonably request) that each of Counterparty and the Currency Hedge
Provider remits all payments that Counterparty or the Currency Hedge Provider, as the case may be,
is required to pay to the Seller under the Counterparty License Agreement and the Currency Hedge
Agreement, as the case may be, with respect to the Purchased Assets directly to the Collection
Account, pursuant to the Counterparty Instruction and the irrevocable direction described in
Section 5.2(c).

          (b) For the avoidance of doubt, the parties hereto understand and agree that if Counterparty
fails to pay any Royalties when the Seller or the Purchaser reasonably believes such Royalties are
due under the Counterparty License Agreement, except for any Set-off contemplated by Section 2.2(c)
(each such unpaid amount, a “Discrepancy”), and if such Discrepancy is not the result of a
default or breach by the Seller under the Counterparty License Agreement, then the Seller shall not
be obligated to pay to the Purchaser or otherwise compensate or make the Purchaser whole with
respect to any such Discrepancy so long as the Seller is in compliance with the provisions of this
Purchase and Sale Agreement; provided, however, that nothing in this Section 2.2(b)
shall limit or affect in any respect the rights of any Purchaser Indemnified Party under Article
VI.

          (c) The Seller agrees that it will promptly (and in any event within three Business Days) pay
to the Purchaser in accordance with Section 4.4 the amount of any Set-off by Counterparty against
any Royalties or other Purchased Assets to the extent that such Set-off arises out of or relates to
any period prior to the Royalties Commencement Date or to any events occurring, circumstances
existing or actions taken prior to the Royalties Commencement Date and that in each case has the
effect of reducing amounts to be paid to the Purchaser following the Closing Date.

     Section 2.3 Purchase Price. In full consideration for the sale, transfer, conveyance,
assignment, contribution and granting of the Purchased Assets, and subject to the terms and
conditions set forth herein, the Purchaser shall pay (or cause to be paid) to the Seller, or the
Seller’s designee, on the Closing Date, the sum of $24,023,660, in immediately available funds by
wire transfer to the Seller Account (the “Purchase Price”), it being understood that any
excess portion of the consideration for the Purchased Assets, where the total consideration for the
Purchased Assets is equal to the fair market value of the Purchased Assets as agreed at arm’s
length by the Seller and the Purchaser, shall be deemed a capital contribution by the Seller to the
Purchaser in an amount equal to such excess portion.

     Section 2.4 No Assumed Obligations. Notwithstanding any provision in this Purchase and
Sale Agreement or any other writing to the contrary, the Purchaser is purchasing, acquiring

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and accepting only the Purchased Assets and is not assuming any liability or obligation of the
Seller or any of the Seller’s Affiliates of whatever nature, whether presently in existence or
arising or asserted hereafter, whether under the Counterparty License Agreement (including any
obligation to pay any amounts to, or accept any Set-off by, Counterparty or any of Counterparty’s
Affiliates), any Transaction Document or otherwise. All such liabilities and obligations shall be
retained by and remain liabilities and obligations of the Seller or the Seller’s Affiliates (the
“Excluded Liabilities and Obligations”).

          Section 2.5 Excluded Assets. The Purchaser
does not, by purchase, acquisition or acceptance of the rights granted hereunder or otherwise
pursuant to any of the Transaction Documents, purchase, acquire or accept any assets or contract
rights of the Seller under the Counterparty License Agreement or the UAB Agreement, other than the
Purchased Assets, or any other assets of the Seller.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE SELLER

     The Seller hereby represents and warrants to the Purchaser as of the date hereof as follows:

     Section 3.1 Organization. The Seller is duly incorporated, validly existing as a
corporation and in good standing under the laws of the State of Delaware and has all corporate
power and authority, and all licenses, permits, franchises, authorizations, consents and approvals
of all Governmental Authorities, required to own its property and carry on its business as
described in the filings made by the Seller with the SEC from time to time, to execute and deliver,
and perform its obligations under, the Transaction Documents to which it is party and to exercise
its rights and to perform its obligations under the Counterparty License Agreement. The Seller is
duly licensed or qualified to do business as a foreign entity and is in good standing in every
jurisdiction in which the conduct of its business or its ownership or leasing of property requires
such license or qualification, except where the failure to do so would not, individually or in the
aggregate, be a Material Adverse Change.

     Section 3.2 Seller Authorization. Each Transaction Document to which the Seller is
party has been duly authorized, executed and delivered by the Seller. When each Transaction
Document to which the Seller is party has been duly executed and delivered by all other parties
thereto, such Transaction Document constitutes the legal, valid and binding obligation of the
Seller, enforceable against the Seller in accordance with its respective terms, subject to
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally, general equitable principles and principles of public policy.

     Section 3.3
Governmental and Third Party Authorizations. The execution and delivery by
the Seller of the Transaction Documents to which the Seller is party, the performance by the Seller
of its obligations hereunder and thereunder and the consummation of any of the transactions
contemplated hereunder and thereunder do not require any consent, approval, license, order,
authorization or declaration from, notice to, action or registration by or filing with

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any Governmental Authority or any other Person, except for filings with the SEC, the filing of
the UCC financing statements referred to in Section 2.1, the notice to Counterparty contained in
the Counterparty Instruction, the irrevocable direction described in Section 5.2(c) and any third
party consents previously obtained.

     Section 3.4 Ownership. The Seller is the exclusive owner of the entire right, title
(legal and equitable) and interest in, to and under the Purchased Assets and the Intellectual
Property Rights and has good and valid title thereto, free and clear of all Liens. The Seller has
filed or applied for registration for its ownership interest in the Patents included in the
Intellectual Property Rights in the appropriate agencies in Japan, and the Seller is the exclusive
“owner of record” of such patents in each such jurisdiction. The Purchased Assets sold,
transferred, conveyed, assigned, contributed and granted to the Purchaser on the Closing Date have
not been pledged, sold, transferred, conveyed, assigned, contributed or granted by the Seller to
any other Person. The Seller has full right to sell, transfer, convey, assign, contribute and
grant the Purchased Assets to the Purchaser. Upon the sale, transfer, conveyance, assignment,
contribution and granting by the Seller of the Purchased Assets to the Purchaser, the Purchaser
shall acquire good and marketable title to the Purchased Assets free and clear of all Liens, other
than Liens in favor of the Trustee, and shall be the exclusive owner of the Purchased Assets. The
Purchaser has or shall have the same rights as the Seller would have with respect to the Purchased
Assets (if the Seller were still the owner of such Purchased Assets) against any other Person.

     Section 3.5 Solvency. The Seller has determined that, and by virtue of its entering
into the transactions contemplated by the Transaction Documents and its authorization, execution
and delivery of the Transaction Documents to which the Seller is a party, the Seller’s incurrence
of any liability hereunder or thereunder or contemplated hereby or thereby is in its own best
interests. On the Closing Date, (a) the fair saleable value of the Seller’s assets will be greater
than the sum of its debts and other obligations, including contingent liabilities, (b) the present
fair saleable value of the Seller’s assets will be greater than the amount that would be required
to pay its probable liabilities on its existing debts and other obligations, including contingent
liabilities, as they become absolute and matured, (c) the Seller will be able to realize upon its
assets and pay its debts and other obligations, including contingent obligations, as they mature,
(d) the Seller will not have unreasonably small capital with which to engage in its business or be
unable to pay its debts as they mature, (e) the Seller has not incurred and does not have present
plans or intentions to incur debts or other obligations or liabilities beyond its ability to pay
such debts or other obligations or liabilities as they become absolute and matured, (f) the Seller
will not have become subject to any Bankruptcy Event and (g) the Seller will not have been rendered
insolvent within the meaning of Section 101(32) of Title 11 of the United States Code. No step has
been taken or is intended by the Seller or, so far as it is aware, any other Person to make the
Seller subject to a Bankruptcy Event.

     Section 3.6 No Litigation. There is no (a) action, suit, arbitration proceeding,
claim, investigation or other proceeding (whether civil, criminal, administrative, regulatory or
investigative) pending or, to the Knowledge of the Seller, threatened by or against the Seller or,
to the Knowledge of the Seller, pending or threatened by or against Counterparty with respect to

14

 

RAPIACTA, at law or in equity, or (b) inquiry or investigation (whether civil, criminal,
administrative, regulatory or investigative) by or before a Governmental Authority pending or, to
the Knowledge of the Seller, threatened against the Seller or, to the Knowledge of the Seller,
pending or threatened against Counterparty with respect to RAPIACTA, that, in each case, (i) if
adversely determined, would, individually or in the aggregate, be a Material Adverse Change, or
(ii) challenges, or would have the effect of preventing, delaying, making illegal, or otherwise
would reasonably be expected to interfere with, any of the transactions contemplated by any of the
Transaction Documents. To the Knowledge of the Seller, no event has occurred or circumstance
exists that could reasonably be expected to give rise to or serve as a basis for the commencement
of any such action, suit, arbitration, claim, investigation, proceeding or inquiry.

     Section 3.7 Compliance with Laws. The Seller is not (a) in violation of and has not
violated, and, to the Knowledge of the Seller, is not under investigation with respect to, and has
not been threatened to be charged with or been given notice of any violation of, any law, statute,
rule, ordinance or regulation of, or any judgment, order, writ, decree, injunction, stipulation,
consent order, permit or license granted, issued or entered by, any Governmental Authority or (b)
subject to any judgment, order, writ, decree, injunction, stipulation, consent order, permit or
license granted, issued or entered by any Governmental Authority, that, in the case of clause (a)
or clause (b), would, individually or in the aggregate, be a Material Adverse Change. To the
Knowledge of the Seller, no event has occurred or circumstance exists that (with or without notice
or lapse of time, or both) would reasonably be expected to constitute or result in a violation by
the Seller of, or a failure on the part of the Seller to comply with, any such law, rule, ordinance
or regulation of, or any judgment, order, writ, decree, permit or license granted, issued or
entered by, any Governmental Authority, in each case, that would, individually or in the aggregate,
be a Material Adverse Change. The Seller is in compliance with the requirements of all applicable
laws, a breach of any of which would be a Material Adverse Change.

     Section 3.8 No Conflicts.

          (a) None of the execution and delivery by the Seller of any of the Transaction Documents to
which the Seller is party, the performance by the Seller of the obligations contemplated hereby or
thereby or consummation of the transactions contemplated hereby or thereby conflict with, result in
a breach or violation of or constitute a default (with or without notice or lapse of time, or both)
under any term or provision of any of the organizational documents of the Seller. Except as would
not, individually or in the aggregate, be a Material Adverse Change, none of the execution and
delivery by the Seller of any of the Transaction Documents to which the Seller is party, the
performance by the Seller of the obligations contemplated hereby or thereby or consummation of the
transactions contemplated hereby or thereby: (i) conflict with, result in a breach or violation of
or constitute a default (with or without notice or lapse of time, or both) under (A) any statute,
law, rule, ordinance or regulation of any Governmental Authority, or any judgment, order, writ,
decree, permit or license of any Governmental Authority, to which the Seller or any of its assets
or properties may be subject or bound or (B) any term or provision of any contract, agreement,
indenture, lease, license, deed, commitment or instrument to which the Seller is a party or by
which the Seller or any of its assets or properties is bound or committed (including the
Counterparty License Agreement); or

15

 

(ii) except as provided in any of the Transaction Documents to which it is party, result in or
require the creation or imposition of any Lien on the Intellectual Property Rights, RAPIACTA, the
Counterparty License Agreement or the Purchased Assets.

          (b) The Seller has not granted, nor does there exist, any Lien on the Transaction Documents,
the Counterparty License Agreement, the Intellectual Property Rights or the Purchased Assets.
Except for the license granted by the Seller to Counterparty under the Counterparty License
Agreement, any joint ownership interest of UAB that may arise upon any termination of the UAB
Agreement (which joint ownership interest would be subject to the license granted by the Seller to
Counterparty under the Counterparty License Agreement), or as would not otherwise, individually or
in the aggregate, be a Material Adverse Change, there are no licenses, sublicenses, or other rights
under the Intellectual Property Rights in the Territory that have been granted to any other Person.

     Section 3.9 Intellectual Property Rights.

          (a) Exhibit C sets forth an accurate and complete list of all Intellectual Property
Rights that are Patents. For each of such Intellectual Property Rights listed on Exhibit
C, the Seller has indicated (i) the countries in which such Patent is pending, allowed, granted
or issued, (ii) the patent number or patent serial number, (iii) the scheduled expiration date of
such issued patent, (iv) the scheduled expiration date of such pending patent application once
issued and (v) the owner of such Patent.

          (b) To the Knowledge of the Seller, each claim that has been issued or granted by the
appropriate Patent Office included in the relevant Intellectual Property Rights that are patents
and that covers RAPIACTA is valid and enforceable.

          (c) There are no unpaid maintenance or renewal fees payable by the Seller to any third party
that currently are overdue for any of the Intellectual Property Rights that are Patents covering
RAPIACTA. No Intellectual Property Rights that are Patents covering RAPIACTA have lapsed or been
abandoned, cancelled or expired. To the Knowledge of the Seller, each individual associated with
the filing and prosecution of the Intellectual Property Rights that are Patents covering RAPIACTA
has complied in all material respects with all applicable duties of candor and good faith in
dealing with any Patent Office, including any duty to disclose to any Patent Office all information
known by such individuals to be material to the patentability of each of the Intellectual Property
Rights that are Patents covering RAPIACTA (including any relevant prior art), in each case, in
those jurisdictions in the Territory where such duties exist.

          (d) Subsequent to the issuance of any Patents included in the Intellectual Property Rights
covering RAPIACTA, neither the Seller nor, to the Knowledge of the Seller, Counterparty has filed
any disclaimer or made or permitted any other voluntary reduction in the scope of such Patents. To
the Knowledge of the Seller, no allowable or allowed subject matter of the Patents included in the
Intellectual Property Rights covering RAPIACTA is subject to any competing conception claims of
allowable or allowed subject matter of any Patents of any third party and have not been the subject
of any interference, re-examination or opposition proceedings.

16

 

          (e) There is no opposition, interference, reexamination, injunction, claim, suit, action,
hearing, inquiry, investigation (by the International Trade Commission or otherwise), complaint,
arbitration, mediation, demand, decree or other dispute, disagreement, proceeding or claim of which
the Seller has received written notice or that, to the Knowledge of the Seller, is threatened
(collectively, “Disputes”) challenging the validity, enforceability or ownership of any of
the Intellectual Property Rights or that could give rise to a credit pursuant to Section 9.3(e)(ii)
of the Counterparty License Agreement against the payments due to the Seller under the Counterparty
License Agreement for the use of the related Intellectual Property Rights. There are no Disputes
by or with any third party against the Seller involving RAPIACTA of which the Seller has received
written notice. None of the Intellectual Property Rights is subject to any outstanding injunction,
judgment, order, decree, ruling, change, settlement or other disposition of a Dispute of which the
Seller has received written notice.

          (f) To the Knowledge of the Seller, there is no pending or threatened, and no event has
occurred or circumstance exists that (with or without notice or lapse of time, or both) would
reasonably be expected to give rise to or serve as a basis for any, action, suit or proceeding, or
any investigation or claim by any Person to which the Seller or, to the Knowledge of the Seller, to
which Counterparty is or could reasonably be expected to be a party, and the Seller has not
received any written notice of the foregoing, that claims that the manufacture, use, marketing,
sale, offer for sale, importation or distribution of RAPIACTA in the Territory by Counterparty
pursuant to the Counterparty License Agreement does or could infringe on any patent or other
intellectual property rights of any other Person or constitute misappropriation of any other
Person’s trade secrets or other intellectual property rights arising under the laws of any
jurisdiction in the Territory. To the Knowledge of the Seller, there are no pending patent
applications owned by any third party that, if issued, would limit or prohibit, in any material
respect, the manufacture, use or sale of RAPIACTA by Counterparty in the Territory.

          (g) Peramivir is a Licensed Product.

          (h) To the Knowledge of the Seller, there is no third party infringing any Intellectual
Property Rights, nor has the Seller received any written notice under the Counterparty License
Agreement of infringement of any of the Intellectual Property Rights that is continuing.

          (i) Each of the Seller and, to the Knowledge of the Seller, Counterparty has taken reasonable
precautions to protect the secrecy and confidentiality of all Know-How protected as a trade secret
under applicable law that is used in connection with the manufacture, use or sale of RAPIACTA by
Counterparty or its Affiliates in the Territory.

          (j) The Intellectual Property Rights constitute all of the intellectual property owned or
licensed by the Seller or any of the Seller’s Affiliates necessary for the sale by Counterparty of
RAPIACTA in the Territory.

          (k) Except for the product clearance opinion dated December 20, 2010 of Abe, Ikubo & Katayama
and the validity opinion dated December 20, 2010 of Abe, Ikubo & Katayama, the Seller has not
received and is not otherwise in possession of any written legal

17

 

opinion concerning or with respect to any third party intellectual property rights in the
Territory relating to RAPIACTA in the Field, including any freedom-to-operate, product clearance,
patentability or right-to-use opinion.

     Section 3.10 Regulatory Approval, Manufacturing and Marketing.

          (a) To the Knowledge of the Seller, Counterparty has complied with its obligations to develop
RAPIACTA and seek and obtain Regulatory Approval for RAPIACTA pursuant to the Counterparty License
Agreement.

          (b) To the Knowledge of the Seller, RAPIACTA has received Regulatory Approval for marketing
and distribution in Japan.

     Section 3.11 No Subordination. The claims and rights of the Purchaser created by any
Transaction Document in and to the Purchased Assets are not and shall not, at any time, be
subordinated to any creditor of the Seller.

     Section 3.12 Counterparty License Agreement and UAB Agreement.

          (a) Other than the Transaction Documents, the Counterparty License Agreement and the UAB
Agreement, there is no contract, agreement or other arrangement (whether written or oral) to which
the Seller is a party or by which any of its assets or properties is bound or committed (i) that
creates a Lien on, or affects or relates in any material respect to, the Purchased Assets, the
Counterparty License Agreement or the Intellectual Property Rights, or (ii) for which breach,
nonperformance, cancellation or failure to renew would, individually or in the aggregate, be a
Material Adverse Change.

          (b) The Seller has provided to the Purchaser a true, correct and complete copy of the
Counterparty License Agreement (it being understood that neither Schedule 1.1(q) nor Exhibit G to
the Counterparty License Agreement are included therewith) and the UAB Agreement and any
confidentiality agreement relating to any of the foregoing.

          (c) The Counterparty License Agreement is in full force and effect and is the legal, valid and
binding obligation of the Seller and, to the Knowledge of the Seller, Counterparty, enforceable
against the Seller and, to the Knowledge of the Seller, Counterparty in accordance with its
respective terms, subject, as to enforcement of remedies, to bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors’ rights generally, general equitable
principles and principles of public policy. The execution, delivery and performance of the
Counterparty License Agreement was and is within the powers of the Seller and, to the Knowledge of
the Seller, Counterparty. The Counterparty License Agreement was duly authorized by all necessary
action on the part of, and validly executed and delivered by, the Seller and, to the Knowledge of
the Seller, Counterparty. The Seller is not in breach or violation of or in default under the
Counterparty License Agreement. There is no event or circumstance that, upon notice or the passage
of time, or both, would reasonably be expected to constitute or
give rise to any breach or default in the performance of the Counterparty License Agreement by
the Seller or, to the Knowledge of the Seller, Counterparty.

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          (d) The Seller has not waived any rights or defaults under the Counterparty License Agreement
or released Counterparty, in whole or in part, from any of its obligations under the Counterparty
License Agreement, in any case that would adversely affect the Purchaser’s rights under any of the
Transaction Documents.

          (e) To the Knowledge of the Seller, no event has occurred that would give the Seller (pursuant
to Section 14.2 of the Counterparty License Agreement) or Counterparty (pursuant to Section 14.3(a)
of the Counterparty License Agreement) the right to terminate the Counterparty License Agreement or
give Counterparty the right to cease paying Royalties under the Counterparty License Agreement.
The Seller has not received any notice of an intention by Counterparty to terminate or breach the
Counterparty License Agreement, in whole or in part, or challenging the validity or enforceability
of the Counterparty License Agreement or the obligation to pay the Royalties under the Counterparty
License Agreement, or that the Seller or Counterparty is in default of its obligations under the
Counterparty License Agreement. The Seller is not aware of any default by Counterparty under the
Counterparty License Agreement. The Seller has no intention of terminating the Counterparty
License Agreement and has not given Counterparty any notice of termination of the Counterparty
License Agreement, in whole or in part.

          (f) Except as provided in the Counterparty License Agreement or for the UAB Agreement, the
Seller is not a party to any agreement providing for or permitting a sharing of, or Set-off
against, the Royalties payable under the Counterparty License Agreement to the Seller.

          (g) The sale by the Seller of the Purchased Assets to the Purchaser and the execution and
delivery of and performance of obligations under the Transaction Documents will not require the
approval, consent, ratification, waiver or other authorization of Counterparty under the
Counterparty License Agreement or otherwise (except to the extent previously obtained) and will not
constitute a breach of or default or event of default under the Counterparty License Agreement or
any other agreement or law applicable thereto.

          (h) The Seller has not consented to an assignment by Counterparty of any of Counterparty’s
rights or obligations under the Counterparty License Agreement and the Seller does not have
Knowledge of any such assignment by Counterparty.

          (i) Neither the Seller nor Counterparty has made any claim of indemnification under the
Counterparty License Agreement of which, in the case of Counterparty, the Seller has received any
written notice.

          (j) The Seller has not exercised its rights to conduct an audit under the Counterparty License
Agreement.

          (k) To the Knowledge of the Seller, the Seller has received all amounts owed to it under the
Counterparty License Agreement.

          (l) The Seller has received payment from Counterparty of the signing fee and milestone
payments set forth in Section 9.1 and Section 9.2 of the Counterparty License

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Agreement. The date of first commercial sale of RAPIACTA was January 26, 2010. Counterparty has exercised its option
to manufacture or have manufactured Compound for the Territory. The NI Option was not exercised by
Counterparty, and the NI Option Period has expired. There are no New Formulations.

     Section 3.13 Set-off and Other Sources of Royalty Reduction. Except as provided in the
Counterparty License Agreement or for any set-off rights that might be available under law,
Counterparty has no right of Set-off under any contract or other agreement against the Royalties or
any other amounts payable to the Seller under the Counterparty License Agreement. Counterparty has
not exercised, and, to the Knowledge of the Seller, Counterparty has not had the right to exercise,
any Set-off against the Royalties or any other amounts payable to the Seller under the Counterparty
License Agreement. To the Knowledge of the Seller, there are no third party patents that, if
licensed by Counterparty, would provide a basis for a reduction in the royalties due to the Seller
pursuant to the Counterparty License Agreement based on the royalty or other payments made by
Counterparty in consideration of such license. There are no compulsory licenses that have been
granted by the Seller or, to the Knowledge of the Seller, threatened with respect to the
Intellectual Property Rights, except as provided in the Counterparty License Agreement or rights
reserved to any government under law. For the avoidance of doubt, the term “Set-off” as used in
this Section 3.13 does not include any items that may reduce Net Sales in accordance with the
definition thereof.

     Section 3.14 UCC Matters. The Seller’s exact legal name is, and for the immediately
preceding 10 years has been, “BioCryst Pharmaceuticals, Inc.” The Seller’s principal place of
business is, and for the immediately preceding 10 years has been, located in Birmingham, Alabama or
Durham, North Carolina. The Seller’s jurisdiction of organization is, and for the immediately
preceding 10 years has been, the State of Delaware. For the immediately preceding 10 years, the
Seller has not been the subject of any merger or other corporate or other reorganization in which
its identity or status was materially changed, except in each case when it was the surviving or
resulting entity.

     Section 3.15 Tax Matters. No deduction or withholding for or on account of any tax has
been made, or was required under applicable law to be made, from any payment to the Seller under
the Counterparty License Agreement. Except as individually or in the aggregate would not be a
Material Adverse Change, the Seller has filed (or caused to be filed) all tax returns and reports
required by law to have been filed by it and has paid all taxes required to be paid by it, except
any such taxes that are being diligently contested in good faith by appropriate proceedings and for
which adequate reserves in accordance with GAAP have been set aside on its books. The Seller has
never filed any tax return or report under any name other than its exact legal name.

     Section 3.16 UAB Agreement. Under the UAB Agreement, payments due to UAB in respect of
RAPIACTA are equal to 4% of royalties and milestone payments received by the Seller from
Counterparty under the Counterparty License Agreement, and no other payment provisions of the UAB
Agreement are applicable to the Purchased Assets. The failure of the UAB Agreement to continue to
be in full force and effect would not (a) result in Counterparty
infringing any patent or intellectual property rights of UAB in respect of RAPIACTA or
misappropriating any of UAB’s trade secrets or other intellectual property rights in respect of

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RAPIACTA or (b) give rise to an independent right of termination of the Counterparty
License Agreement (subject to Counterparty’s right to terminate the Counterparty License Agreement
at any time in its discretion pursuant to Section 14.3(b) thereof) or result in Counterparty being
entitled to cease the payment of royalties or milestone payments thereunder. There are no patents
or other intellectual property rights licensed to Counterparty under the Counterparty License
Agreement for which Counterparty would require a license from UAB to sell RAPIACTA in the Territory
if the UAB Agreement failed to continue to be in full force and effect.

     Section 3.17 Margin Stock. The Seller is not engaged in the business of extending
credit for the purpose of buying or carrying margin stock, and no portion of the Purchase Price
shall be used by the Seller for a purpose that violates Regulation T, U or X promulgated by the
Board of Governors of the Federal Reserve System from time to time.

     Section 3.18 Disclosure. The Memorandum, taken as a whole, does not contain any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein not misleading in light of the circumstances under which they were made. From
the date of the Memorandum until the date hereof and except as disclosed therein (or in any
supplement thereto), there has been no material adverse change or development involving or
anticipated to involve a prospective material adverse change in the Seller’s business relating to
the Purchased Assets or the Counterparty License Agreement or its ability to perform its
obligations under the Transaction Documents. As of the date hereof, there is no fact known to the
Seller that could reasonably be expected to have a material adverse effect on its business relating
to the Purchased Assets or the Counterparty License Agreement or its ability to perform its
obligations under the Transaction Documents that has not been set forth in the Memorandum or in any
supplement thereto.

ARTICLE IV

COVENANTS

     So long as the Notes are outstanding, the parties hereto covenant and agree as follows:

     Section 4.1
 Books and Records; Notices.

          (a) After receipt by the Seller of notice of any action, claim, demand, dispute,
investigation, arbitration or proceeding (commenced or threatened) relating to the transactions
contemplated by any Transaction Document, the Purchased Assets or the Counterparty License
Agreement or any default or termination by any Person under the Counterparty License Agreement or
the Currency Hedge Agreement, the Seller shall (i) promptly inform the Purchaser in writing of the
receipt of such notice and the substance thereof and (ii) if such notice is in
writing, promptly furnish the Purchaser with a copy of such notice and any related materials
with respect thereto and received therewith.

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          (b) The Seller shall keep and maintain, or cause to be kept and maintained, at all times books
and records adequate to reflect accurately all financial information it has received from
Counterparty with respect to the Royalties.

          (c) Promptly after receipt by the Seller (but in no event more than five Business Days
following receipt by the Seller) of any written notice, certificate, offer, proposal, report or
other material correspondence or material written communication relating to the Counterparty
License Agreement, the Royalties, the Intellectual Property Rights, the Purchased Assets or
Licensed Products, the Seller shall (i) inform the Purchaser in writing of such receipt, (ii)
provide to the Purchaser in writing a reasonably detailed description of the substance thereof and
(iii) furnish the Purchaser with a copy of such notice, certificate, offer, proposal,
correspondence, report or other communication.

          (d) The Seller shall provide the Purchaser with written notice as promptly as practicable (and
in any event within five Business Days) after becoming aware of any of the following: (i) the
occurrence of a Bankruptcy Event in respect of the Seller; (ii) any material breach or default by
the Seller of any covenant, agreement or other provision of this Purchase and Sale Agreement or any
other Transaction Document; (iii) any representation or warranty made by the Seller in any of the
Transaction Documents or in any certificate delivered to the Purchaser pursuant hereto shall prove
to be untrue, inaccurate or incomplete in any material respect on the date as of which made (except
that any such representations and warranties that are qualified in respect of materiality or
Material Adverse Change shall prove to be untrue, inaccurate or incomplete in any respect); or (iv)
any change, effect, event, occurrence, state of facts, development or condition that would
reasonably be expected to be a Material Adverse Change.

          (e) The Seller shall notify the Purchaser in writing not less than 30 days prior to any change
in, or amendment or alteration of, the Seller’s (i) legal name, (ii) form or type of organization
or corporate structure or (iii) jurisdiction of organization.

          (f) Subject to applicable confidentiality restrictions and securities laws, the Seller shall
make available such other information as the Purchaser may, from time to time, reasonably request
with respect to the Purchased Assets.

     Section 4.2 Confidentiality; Public Announcement.

          (a) Except as otherwise required by law, by the rules and regulations of the SEC or any
securities exchange or trading system or by the FDA or any other Governmental Authority with
similar regulatory authority and except as otherwise set forth in this Section 4.2, all
Confidential Information furnished by the Seller to the Purchaser, as well as the terms, conditions
and provisions of this Purchase and Sale Agreement and any other Transaction Document, shall be
kept confidential by the Purchaser and shall be used by the Purchaser only in connection with this
Purchase and Sale Agreement and any other Transaction Document and the
transactions contemplated hereby and thereby. Notwithstanding the foregoing, the Purchaser
may disclose such information to its actual and potential partners, directors, employees, managers,
officers, agents, investors (including any holder of debt securities of the Purchaser and

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such
holder’s advisors, agents and representatives), co-investors, insurers and insurance brokers,
underwriters, financing parties, equity holders, brokers, advisors, lawyers, bankers, trustees and
representatives; provided, that such Persons (i) shall be informed of the confidential
nature of such information and shall be obligated to keep such information confidential pursuant to
obligations of confidentiality no less onerous than those set out herein or (ii) shall have
executed and delivered a confidentiality agreement substantially in the form attached as Exhibit B
to the Indenture.

          (b) The Seller and the Purchaser acknowledge that each party hereto may, after execution of
this Purchase and Sale Agreement, make a public announcement of the transactions contemplated by
the Transaction Documents. The Seller and the Purchaser agree that, after the Closing, public
announcements may be issued in the form of one or more press releases, and in disclosures contained
in documents to be filed with or furnished to the SEC, in each case subject to the Purchaser or the
Seller having a reasonable prior opportunity to review such public announcement, and which
announcement shall be in a form mutually acceptable to the Purchaser and the Seller, and either
party hereto may thereafter disclose any information contained in such press release or SEC
documents at any time without the consent of the other party hereto.

     Section 4.3 Further Assurances.

          (a) Subject to the terms and conditions of this Purchase and Sale Agreement, each party hereto
will use commercially reasonable efforts to take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary under applicable laws and regulations to consummate the
transactions contemplated by the Transaction Documents, including to perfect the sale, transfer,
conveyance, assignment, contribution and granting of the Purchased Assets to the Purchaser pursuant
to this Purchase and Sale Agreement. The Purchaser and the Seller agree to execute and deliver
such other documents, certificates, instruments, agreements and other writings and to take such
other actions as may be reasonably necessary in order to consummate or implement expeditiously the
transactions contemplated by any Transaction Document and to perfect, protect, more fully evidence,
vest and maintain in the Purchaser good, valid and marketable rights and interests in and to the
Purchased Assets free and clear of all Liens (other than those permitted by the Transaction
Documents) or enable the Purchaser to exercise or enforce any of the Purchaser’s rights under any
Transaction Document, including following the Closing.

          (b) The Seller and the Purchaser shall cooperate and provide assistance as reasonably
requested by the other party hereto, at the expense of such other party hereto, in connection with
any litigation, arbitration or other proceeding (whether threatened, existing, initiated or
contemplated prior to, on or after the date hereof) to which the other party hereto, any of its
Affiliates or controlling Persons or any of their respective officers, directors, equityholders,
members, controlling Persons, managers, agents or employees is or may become a party or is or may
become otherwise directly or indirectly affected or as to which any such Persons have a direct or
indirect interest, in each case relating to any Transaction Document, the Purchased
Assets or the transactions described herein or therein but in all cases excluding any
litigation brought by the Seller against the Purchaser or brought by the Purchaser against the
Seller.

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          (c) The Seller shall comply with all applicable laws with respect to the Transaction
Documents, the Counterparty License Agreement, the Purchased Assets and all ancillary agreements
related thereto, the violation of which would reasonably be expected to be a Material Adverse
Change.

     Section 4.4 Payments on Account of the Purchased Assets.

          (a) Notwithstanding the terms of the Counterparty Instruction and the irrevocable direction
described in Section 5.2(c), if Counterparty, the Currency Hedge Provider or any other Person makes
any payment to the Seller (or any of its Subsidiaries other than the Purchaser) directly and not to
the Collection Account on account of the Purchased Assets, then (i) the portion of such payment
that represents the Royalties or the Currency Hedge Payments shall be held by the Seller (or such
Subsidiary) in trust for the benefit of the Purchaser in a segregated account, (ii) the Seller (or
such Subsidiary) shall have no right, title or interest whatsoever in such portion of such payment
and shall not create or suffer to exist any Lien thereon and (iii) the Seller (or such Subsidiary)
promptly, and in any event no later than five Business Days following the receipt by the Seller (or
such Subsidiary) of such portion of such payment, shall remit such portion of such payment to the
Collection Account pursuant to Section 4.4(b) in the exact form received with all necessary
endorsements.

          (b) The Seller shall make all payments to be made by the Seller pursuant to this Purchase and
Sale Agreement by wire transfer of immediately available funds, without Set-off, to the Collection
Account.

          (c) If Counterparty or any other Person makes any payment to the Purchaser of Royalties
relating to periods prior to the Royalties Commencement Date, then (i) such payment shall be held
by the Purchaser in trust for the benefit of the Seller in a segregated account, (ii) the Purchaser
shall have no right, title or interest whatsoever in such payment and shall not create or suffer to
exist any Lien thereon and (iii) the Purchaser promptly, and in any event no later than two
Business Days following the receipt by the Purchaser of such payment, shall remit such payment to
the Seller Account pursuant to Section 4.4(d) in the exact form received with all necessary
endorsements.

          (d) The Purchaser shall make all payments of Royalties relating to periods prior to the
Royalties Commencement Date to be made by the Purchaser pursuant to this Purchase and Sale
Agreement by wire transfer of immediately available funds, without Set-off, to the following
account (or to such other account as the Seller shall notify the Purchaser in writing from time to
time) (the “Seller Account”):

Bank Name: Wachovia Bank, N.A.

Address: 420 North 20th Street, Birmingham, AL 35203

Account Name: BioCryst Pharmaceuticals Inc.

ABA/Routing Number: 111025013

Account Number: 2000019335913

Swift Code: PNBPUS33

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          (e) If Counterparty takes any Set-off in accordance with the terms of the Counterparty License
Agreement where such Set-off (or any portion thereof) is made in respect of any event occurring,
circumstance existing or action taken prior to the Royalties Commencement Date but has the effect
of reducing amounts to be paid to the Purchaser following the Closing Date, then the Seller shall
cause the amount of such Set-off (or portion thereof, as the case may be) to be paid promptly (but
in no event later than five Business Days following such Set-off) to the Collection Account. For
the avoidance of doubt, the term “Set-off” as used in this Section 4.4(e) does not include any
items that may reduce Net Sales in accordance with the definition thereof.

     Section 4.5 Counterparty License Agreement.

          (a) The Seller shall timely perform and comply in all material respects with its duties and
obligations under the Counterparty License Agreement and, without the prior written consent of the
Purchaser, shall not (i) forgive, release or compromise any amount owed to or becoming owing to the
Seller or the Purchaser under the Counterparty License Agreement and relating to or affecting the
Royalties in any respect, (ii) waive, amend, cancel, terminate or fail to exercise any rights or
options constituting or involving the right to receive the Royalties, (iii) except as contemplated
by the Transaction Documents, create or permit to exist any Lien on the Counterparty License
Agreement, the Purchased Assets or the Intellectual Property Rights, (iv) grant any license,
sublicense or other right under the Intellectual Property Rights in respect of the Field in the
Territory (except for licenses granted by the Seller to Counterparty under the Counterparty License
Agreement as in existence on the Closing Date, any joint ownership interest of UAB that may arise
upon any termination of the UAB Agreement (which joint ownership interest would be subject to the
license granted by the Seller to Counterparty under the Counterparty License Agreement), or in
accordance with Section 4.6(a), (v) challenge or assist in a challenge of the legality, validity or
enforceability of any of the Intellectual Property Rights in respect of the Field in the Territory,
(vi) assign, amend (including to add a New Formulation), modify, restate, cancel, supplement,
terminate (in whole or in part), consent to any termination of (in whole or in part) or waive the
Counterparty License Agreement or any provision thereof relating to or affecting the Royalties in
any respect or grant any consent under or with respect to the Purchased Assets, RAPIACTA (in
respect of the Field in the Territory) or the Counterparty License Agreement, in each case relating
to or affecting the Royalties in any respect (including in respect of a Third Party New
Formulations License), (vii) enter into any agreement with Counterparty in respect of or relating
to the Purchased Assets or (in respect of the Field in the Territory) RAPIACTA, except in
accordance with Section 4.6(a), (viii) select to make Material Use of the Future Data of
Counterparty or (ix) agree to do any of the foregoing.

          (b) The Seller shall not, without the prior written consent of the Purchaser and except as set
forth in Section 4.5(a), exercise or waive any right or option, fail to exercise any right or
option or exercise or fail to exercise any action in respect of the Purchased Assets, RAPIACTA (in
respect of the Field in the Territory) or the Counterparty License Agreement in any manner that
would, in each case, (i) be reasonably likely to be a Material Adverse Change or
(ii) cause an event of default under, or breach or termination of, this Purchase and Sale
Agreement, any other Transaction Document or the Counterparty License Agreement.

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          (c) Promptly after (i) receiving notice from Counterparty (A) terminating the Counterparty
License Agreement (in whole or in part), (B) alleging any breach of or default under the
Counterparty License Agreement by the Seller or (C) asserting the existence of any facts,
circumstances or events that, alone or together with other facts, circumstances or events, could
reasonably be expected (with or without the giving of notice or passage of time, or both) to give
rise to a breach of or default under the Counterparty License Agreement by the Seller or the right
to terminate the Counterparty License Agreement (in whole or in part) by Counterparty pursuant to
Section 14.3(a) of the Counterparty License Agreement or (ii) the Seller otherwise has knowledge of
any fact, circumstance or event that, alone or together with other facts, circumstances or events,
could reasonably be expected (with or without the giving of notice or passage of time, or both) to
give rise to a breach of or default under the Counterparty License Agreement by the Seller or give
the right to terminate the Counterparty License Agreement (in whole or in part) by Counterparty
pursuant to Section 14.3(a) of the Counterparty License Agreement, in each case, the Seller shall
(A) promptly give a written notice to the Purchaser describing in reasonable detail the relevant
breach, default or termination event, including a copy of any written notice received from
Counterparty or the other relevant Person, and, in the case of any breach or default or alleged
breach or default by the Seller, describing in reasonable detail any corrective action the Seller
proposes to take, and (B) use commercially reasonable efforts to promptly cure such breach or
default and shall give written notice to the Purchaser upon curing such breach or default;
provided, however, that, if the Seller fails to promptly cure such breach or
default, the Purchaser or the Trustee shall, to the extent permitted by the Counterparty License
Agreement, be entitled to take any and all actions the Purchaser considers reasonably necessary to
promptly cure such breach or default (including by making a Seller Shortfall Payment), and the
Seller shall cooperate with the Purchaser for such purpose and reimburse the Purchaser promptly
(but in no event later than five Business Days following notice thereof) for all costs and expenses
incurred in connection therewith (including for any such Seller Shortfall Payment funded by the
Purchaser or the Trustee), with any such reimbursement to be made directly to the Collection
Account.

          (d) Promptly after the Seller obtains knowledge of a breach or default or alleged breach or
default under the Counterparty License Agreement by Counterparty or of the existence of any facts,
circumstances or events that, alone or together with other facts, circumstances or events, could
reasonably be expected (with or without the giving of notice or passage of time, or both) to give
rise to a breach or default under the Counterparty License Agreement by Counterparty or the right
to terminate the Counterparty License Agreement (in whole or in part) by the Seller pursuant to
Section 14.2 of the Counterparty License Agreement, in each case, the Seller shall (i) promptly
give a written notice to the Purchaser describing in reasonable detail the relevant breach, default
or termination event and (ii) proceed in consultation with the Purchaser and take such permissible
actions (including commencing legal action against Counterparty and the selection of legal counsel
reasonably satisfactory to the Purchaser) to enforce compliance by Counterparty with the relevant
provisions of the Counterparty License Agreement and to exercise any or all of the Purchaser’s or
the Seller’s rights and remedies, whether under the
Counterparty License Agreement or by operation of law, with respect thereto. The Seller
acknowledges and agrees that, if an Event of Default occurs and is continuing, the Seller and the
Purchaser shall, at the request of the Trustee (at the direction of Noteholders of a majority of
the

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outstanding principal balance of the Notes), jointly with the Trustee enforce their respective
contractual rights under the Counterparty License Agreement.

          (e) The Seller shall (i) subject to the provisions of the Counterparty License Agreement and
any rights of Counterparty or UAB, take such actions as are commercially reasonable, and prepare,
execute, deliver and file any and all agreements, documents and instruments in connection therewith
that are reasonably necessary, to diligently preserve and maintain the Intellectual Property
Rights, including payment of maintenance fees or annuities, at the sole expense of the Seller, and
(ii) take commercially reasonable measures to diligently defend (and enforce) the Intellectual
Property Rights, in such manner as it determines in the exercise of reasonable business judgment,
against infringement or interference by any other Person, and against any claims of invalidity or
unenforceability, in any relevant jurisdiction (including by bringing legal action for infringement
or defending counterclaims of invalidity or action of a third party for declaratory judgment of
non-infringement or non-interference), with counsel reasonably satisfactory to the Purchaser and
whose reasonable fees and expenses shall be borne by the Seller, in each case, where the failure to
defend or enforce the Intellectual Property Rights would reasonably be expected to be a Material
Adverse Change. The Seller shall not disclaim or abandon, or fail to take any commercially
reasonable action necessary to prevent the disclaimer or abandonment of, any Patents included in
the Intellectual Property Rights. The Purchaser shall have the right, at its sole expense, to
participate in and control, with counsel appointed by it, any meeting, discussion, action, suit or
proceeding involving the infringement, legality, validity or enforceability of the Intellectual
Property Rights or the Counterparty License Agreement to the same extent that the Seller has such
rights under the Counterparty License Agreement consistent with the exercise of reasonable business
judgment, including any counterclaim, settlement discussions or meetings, and the Seller shall
exercise and enforce such rights on its own behalf (and on behalf of the Purchaser) to the fullest
extent permissible under the terms of the Counterparty License Agreement; provided, that
the Seller’s exercise and enforcement of such rights shall not result in a breach of this Purchase
and Sale Agreement or a Material Adverse Change; provided, further, that the fees
and expenses of the Purchaser’s counsel in connection therewith shall be borne by the Seller if
such infringement, legality, validity or enforceability is caused by the Seller.

          (f) Except in connection with an assignment by the Seller to any other Person with which the
Seller may merge or consolidate or to which the Seller may sell all or substantially all of its
assets or all of its assets related to Licensed Products in accordance with the provisions of
Section 7.4, the Seller shall not dispose of or encumber the Intellectual Property Rights (in whole
or in part).

          (g) The Seller shall to the extent reasonably practicable make available its records and
personnel to the Purchaser in connection with any prosecution of litigation by the Purchaser
against any party to the Counterparty License Agreement (other than the Seller) to enforce any of
the Purchaser’s rights under the Counterparty License Agreement, and, to the
extent commercially reasonable, provide assistance and authority to file and bring the
litigation, including, if required to bring the litigation, being joined as a party plaintiff.

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     Section 4.6 Termination of the Counterparty License Agreement; Mergers, Consolidations and
Asset Sales Involving Counterparty.

          (a) Following any termination of the Counterparty License Agreement in respect of one or more
countries in the Territory, the Seller shall use commercially reasonable efforts to (i) enter into
a new agreement or other arrangement to license and sublicense the Intellectual Property Rights (or
any portion thereof), as such rights may revert back to the Seller under and subject to the terms
and conditions of the Counterparty License Agreement and the UAB Agreement, to one or more third
parties in such country or countries of the Territory under which such third party will agree to
use commercially reasonable efforts to develop, manufacture, commercialize and market RAPIACTA in
such country or countries in the Territory, in which case the Seller shall instruct such third
parties to make the corresponding royalty payments in respect of Commercial Sales, if any, directly
to the Collection Account, and (ii) develop, manufacture, commercialize and market RAPIACTA in such
country or countries in the Territory through such third party or by itself (in which case the
Seller shall make the corresponding royalty payments directly to the Collection Account), it being
understood that any such royalty payments shall only be an amount equivalent to the royalty that
would have been payable by Counterparty, net of all deductions and adjustments, if the Counterparty
License Agreement was still in effect and such commercialization was effected by Counterparty).

          (b) If there occurs a merger or consolidation of the Seller, on the one hand, and Counterparty
or its Affiliates, on the other hand, a sale of all or substantially all of the Seller’s assets to
Counterparty or a sale or assignment of the Counterparty License Agreement or the Intellectual
Property Rights by the Seller to Counterparty, and in any such case the Counterparty License
Agreement is terminated in connection therewith, the Seller (or its successor) shall pay to the
Purchaser royalties on Commercial Sales of the Licensed Products in the Territory for the term of
the Counterparty License Agreement on the same basis as if the Counterparty License Agreement had
continued and the Purchaser’s rights with respect to the Purchased Assets and the covenants of the
Seller under this Purchase and Sale Agreement shall continue to apply on the same basis as if the
Counterparty License Agreement was in place between the Seller and Counterparty.

     Section 4.7 Audits. The Seller shall not, without the prior written consent of the
Purchaser, and the Seller shall, upon the written request of the Purchaser, cause an inspection or
audit of Counterparty’s books and records to be conducted pursuant to, and in accordance with,
Section 9.8 of the Counterparty License Agreement; provided, however, that the
Seller shall retain the exclusive right to inspect and audit Counterparty’s books and records at
any time and from time to time at its sole discretion for payments that are paid or payable to the
Seller pursuant to the Counterparty License Agreement with respect to Net Sales and Royalties
attributable to the period prior to the Royalties Commencement Date. For the purposes of
exercising the Purchaser’s rights pursuant to this Section 4.7, the Seller shall select such public
accounting firm as the Purchaser shall
reasonably recommend for such purpose. The Seller and the Purchaser agree that all of the
expenses of any inspection or audit carried out for the benefit of the Purchaser that would
otherwise be borne by the Seller pursuant to the Counterparty License Agreement shall instead be
borne by the Purchaser, including such fees and expenses of

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such public accounting firm as are to
be borne by the Seller pursuant to Section 9.8 of the Counterparty License Agreement together with
the Seller’s reasonable out-of-pocket costs incurred in connection with such examination or audit.
The Seller will furnish any inspection or audit report prepared by such public accounting firm to
the Purchaser. The Purchaser shall have the right to require the Seller, in writing, at the sole
expense of the Purchaser, to exercise the Seller’s rights under the Counterparty License Agreement
to cause Counterparty to cure such discrepancy in accordance with the Counterparty License
Agreement.

     Section 4.8 Existence. The Seller shall (i) preserve and maintain its existence
(provided, however, that nothing in this Section 4.8(i) shall prohibit the Seller from entering
into any merger, consolidation or amalgamation with, or selling or otherwise transferring all or
substantially all of its assets to, any other person if the Seller is the continuing or surviving
entity or if the surviving or continuing or acquiring entity assumes all of the obligations of the
Seller), (ii) preserve and maintain its rights, franchises and privileges unless failure to do any
of the foregoing would not be a Material Adverse Change, and (iii) qualify and remain qualified in
good standing in each jurisdiction where the failure to preserve and maintain such existence,
rights, franchises, privileges and qualifications would be a Material Adverse Change, including
appointing and employing such agents or attorneys in each jurisdiction where it shall be necessary
to take action under this Purchase and Sale Agreement.

     Section 4.9 Approval of Actions of Purchaser. To the extent approval by the members
of the Purchaser is required prior to any action by the Purchaser to perform its obligations under
the Transaction Documents to which the Purchaser is party, the Seller, so long as it is the holder
of a majority of the Capital Securities of the Purchaser, shall approve any such action.

     Section 4.10 Payments to UAB. The Seller shall pay to UAB, no later than when
required under the UAB Agreement, the amounts paid by the Purchaser to the Seller pursuant to
Section 3.4 of the Indenture. The Seller shall receive and hold such funds in one or more separate
accounts and shall not commingle such funds with any other funds of the Seller.

     Section 4.11 Currency Hedge Agreement.

          (a) Except to the extent specifically described in Section 4.11(e) or Section 4.11(f), the
Seller shall not, without the prior written consent of the Purchaser, (i) forgive or release, or
fail to exercise any rights or options constituting or involving the right to receive, any Currency
Hedge Payment, (ii) terminate or cancel (in whole or in part), or consent to any
termination or cancellation of (in whole or in part), the Currency Hedge Agreement, (iii)
waive, amend, supplement, modify or restate the Currency Hedge Agreement or any provision thereof
that could adversely affect any Currency Hedge Payments, (iv) assign any of its obligations under
the Currency Hedge Agreement or (v) agree to do any of the foregoing.

          (b) Promptly after (i) receiving notice from the Currency Hedge Provider (A) terminating the
Currency Hedge Agreement (in whole or in part), (B) alleging any breach of or default under the
Currency Hedge Agreement by the Seller or (C) asserting the existence of any facts, circumstances
or events that, alone or together with other facts, circumstances or events, could reasonably be
expected (with or without the giving of notice or passage of time, or both) to

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give rise to a
breach of or default under the Currency Hedge Agreement by the Seller or the right to terminate the
Currency Hedge Agreement (in whole or in part) for cause by the Currency Hedge Provider or (ii) the
Seller otherwise has knowledge of any fact, circumstance or event that, alone or together with
other facts, circumstances or events, could reasonably be expected (with or without the giving of
notice or passage of time, or both) to give rise to a breach of or default under the Currency Hedge
Agreement by the Seller or give the right to terminate the Currency Hedge Agreement (in whole or in
part) for cause by the Currency Hedge Provider, in each case, the Seller shall promptly give a
written notice to the Purchaser describing in reasonable detail the relevant breach, default or
termination event, including a copy of any written notice received from the Currency Hedge
Provider, and, in the case of any breach or default or alleged breach or default by the Seller,
describing in reasonable detail any corrective action the Seller proposes to take. If the Seller
fails to promptly cure such breach or default, the Purchaser or the Trustee shall, to the extent
permitted by the Currency Hedge Agreement, be entitled to take any and all actions the Purchaser
considers reasonably necessary to promptly cure such breach or default (including by making a
Seller Shortfall Payment), and the Seller shall cooperate with the Purchaser for such purpose and
reimburse the Purchaser promptly (but in no event later than five Business Days following notice
thereof) for all costs and expenses incurred in connection therewith (including for any such Seller
Shortfall Payment funded by the Purchaser or the Trustee), with any such reimbursement to be made
directly to the Collection Account.

          (c) Promptly after the Seller obtains knowledge of a breach or default or alleged breach or
default under the Currency Hedge Agreement by the Currency Hedge Provider or of the existence of
any facts, circumstances or events that, alone or together with other facts, circumstances or
events, could reasonably be expected (with or without the giving of notice or passage of time or
both) to give rise to a breach or default under the Currency Hedge Agreement by the Currency Hedge
Provider or the right to terminate the Currency Hedge Agreement (in whole or in part) for cause by
the Seller, in each case, the Seller shall (i) promptly give a written notice to the Purchaser
describing in reasonable detail the relevant breach, default or termination event and (ii) proceed
in consultation with the Purchaser and take commercially reasonable actions (including commencing
legal action against the Currency Hedge Provider and the selection of legal counsel reasonably
satisfactory to the Purchaser) to enforce compliance by the Currency Hedge Provider with the
relevant provisions of the Currency Hedge Agreement and to exercise any or all of the Seller’s or
the Purchaser’s rights and remedies, whether under the Currency Hedge Agreement or by operation of
law, with respect thereto. The Seller
acknowledges and agrees that, if an Event of Default occurs and is occurring, the Seller and
the Purchaser shall, at the request of the Trustee (at the direction of Noteholders of a majority
of the outstanding principal balance of the Notes), jointly with the Trustee enforce their
respective contractual rights under the Currency Hedge Agreement.

          (d) The Seller shall provide the Purchaser and the Trustee with an officer’s certificate of
the Seller within five Business Days in the event the Seller (i) effects any permitted
cancellation, unwind, termination, disposition, amendment or modification of the Currency Hedge
Agreement or all or any portion of an Option or (ii) enters into any replacement foreign currency
hedge arrangement, in each case, as described in Section 4.11(e), and certifying as to

30

 

the
satisfaction of the conditions set forth thereunder. For the avoidance of doubt, any such
permitted cancellation, unwind, termination, disposition, amendment or modification of the Currency
Hedge Agreement or all or any portion of an Option and/or the entry into any such permitted
replacement foreign currency hedge arrangement shall not be deemed to constitute or result in a
Material Adverse Change for any purpose.

          (e) The Seller shall not cancel, unwind, terminate, dispose of, amend or modify all or any
portion of the Currency Hedge Agreement unless (i) the Seller contemporaneously enters into one or
more replacement foreign currency hedge arrangements with the Currency Hedge Provider (which
replacement foreign currency hedge arrangements may be in the form of one or more options or a
different type of foreign currency hedge), provided that the replacement foreign currency hedge
arrangements provide for a foreign currency hedge in respect of at least an equivalent notional
amount of yen as the Option(s) (or portion(s) thereof) so replaced, provide for a hedge of the
yen-dollar exchange rate at an exchange rate at least as favorable to Noteholders as the exchange
rate set forth in the Option(s) (or portion(s) thereof) so replaced, are otherwise on terms not
materially less favorable to Noteholders (as determined in the reasonable good faith judgment of
the Purchaser) than the Option(s) (or portion(s) thereof) so replaced, and provide for payments
payable in respect of such replacement foreign currency hedge arrangements by the Currency Hedge
Provider to be made to the Collection Account, (ii) there has been a material breach of the
Currency Hedge Agreement by the Currency Hedge Provider permitting the Seller to so cancel, unwind,
terminate or dispose of all or any portion of the Currency Hedge Agreement pursuant to its terms
(in which case, with respect to this clause (ii), the Seller will be permitted, but shall not be
obligated, to enter into new foreign currency hedging arrangements with another currency hedge
provider, in which case the Seller will not be required to direct any payments payable in respect
of such replacement foreign currency hedge arrangements by such other currency hedge provider to
the Collection Account), (iii) the Notes are no longer outstanding, (iv) the Noteholders have
foreclosed on all or any portion of the Collateral or the Issuer Pledged Collateral in connection
with an exercise of remedies under the Indenture or (v) in the case of all or any portion of an
Option, the Purchaser has effected foreign currency exchange spot market transactions of yen to
dollars at a yen-dollar foreign currency exchange spot rate of $1≤¥100 (but only in respect of the
notional amount of yen in respect of such Option that is less than or equal to the amount of yen so
exchanged during the period to which such Option relates).

          (f) The Seller shall not exercise its one-time right to terminate the Options expiring
beginning in 2016 through and including 2020 pursuant to the Confirmation (or any replacement
thereof) constituting part of the Currency Hedge Agreement unless the provisions of Section
4.11(e)(i), Section 4.11(e)(iii) or Section 4.11(e)(iv) apply.

          (g) The Seller shall not enter into any “Transaction” under any ISDA Master Agreement
constituting part of the Currency Hedge Agreement (with “Transaction” for this purpose having the
meaning specified in such ISDA Master Agreement) except for the Options entered into under the
Confirmation constituting part of the Currency Hedge Agreement on the date hereof and any other
foreign currency hedge arrangements entered into by the Seller as permitted by Section 4.11(e)(i)
of this Purchase and Sale Agreement.

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ARTICLE V

THE CLOSING

     Section 5.1 Closing. The closing of the transactions contemplated hereby (the
“Closing”) shall take place on the date hereof (the “Closing Date”) at the offices
of Pillsbury Winthrop Shaw Pittman LLP located at 1540 Broadway, New York, New York 10036, or such
other place as the parties mutually agree.

     Section 5.2 Closing Deliverables of the Seller. At the Closing, the Seller shall
deliver or cause to be delivered to the Purchaser the following:

          (a) the Bill of Sale, the Pledge and Security Agreement, the Servicing Agreement, the Purchase
Agreements and the Currency Hedge Agreement, each executed by the Seller;

          (b) an irrevocable direction to Counterparty to pay the Royalties directly to the Collection
Account, and as to such other matters, in the form set forth in Exhibit B executed by the
Seller;

          (c) an irrevocable direction to the Currency Hedge Provider to pay the Currency Hedge Payments
directly to the Collection Account, executed by the Seller; and

          (d) such other certificates, documents and financing statements as the Purchaser may
reasonably request, including (i) the documents contemplated by Article VI of the Purchase
Agreements and (ii) a financing statement satisfactory to the Purchaser to create, evidence and
perfect the sale of the Purchased Assets pursuant to Section 2.1(c) and the back-up security
interest granted pursuant to Section 2.1(d).

     Section 5.3 Closing Deliverables of the Purchaser. At the Closing, the Purchaser shall deliver or cause to be delivered to the Seller the
following:

          (a) the Bill of Sale executed by the Purchaser; and

          (b) payment of the Purchase Price in accordance with Section 2.3.

ARTICLE VI

INDEMNIFICATION

     Section 6.1 Indemnification by the Seller. The Seller hereby indemnifies and holds
each of the Purchaser and its Affiliates and any and all of their respective partners, directors,
managers, members, officers, employees, agents and controlling Persons (each, a “Purchaser
Indemnified Party”) harmless from and against, and will pay to each Purchaser Indemnified Party
the amount of, any and all Losses (including attorneys’ fees) awarded against or incurred or
suffered by such Purchaser Indemnified Party, whether or not involving a third party claim, demand,
action or proceeding, arising out of (i) any breach of any representation, warranty or
certification made by the Seller in any of the Transaction Documents to which the Seller is party

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or certificates given by the Seller to the Purchaser in writing pursuant to this Agreement or any
other Transaction Document, (ii) any breach of or default under any covenant or agreement by the
Seller to the Purchaser pursuant
to any Transaction Document to which the Seller is party or the Counterparty License
Agreement, (iii) any Excluded Liabilities and Obligations (unless such Excluded Liabilities and
Obligations are due to the Purchaser not complying with any confidentiality provisions set forth in
the Counterparty License Agreement), (iv) claims arising on or after the Closing Date and asserted
against a Purchaser Indemnified Party relating to the transactions contemplated in any Transaction
Document or the Counterparty License Agreement and (v) any fees, expenses, costs, liabilities or
other amounts incurred or owed by the Seller to any brokers, financial advisors or comparable other
Persons retained or employed by it in connection with the transactions contemplated by this
Purchase and Sale Agreement; provided, however, that the foregoing shall exclude
any indemnification to any Purchaser Indemnified Party that (A) has the effect of imposing on the
Seller any recourse liability for Royalties because of the insolvency or other creditworthiness
problems of Counterparty or the insufficiency of the Royalties, whether as a result of the amount
of cash flow arising from sales of RAPIACTA or otherwise, unless resulting from the failure of the
Seller to perform its obligations under this Purchase and Sale Agreement, (B) results from the bad
faith, gross negligence or willful misconduct of such Purchaser Indemnified Party, (C) results from
the failure of any other Person to perform any of its obligations under any of the Transaction
Documents or (D) results from the Seller’s acts or omissions based upon the written instructions
from any Purchaser Indemnified Party. Any amounts due to any Purchaser Indemnified Party hereunder
shall be payable by the Seller to such Purchaser Indemnified Party upon demand. In addition to the
foregoing obligations of the Seller, the Seller agrees (a) to pay to the Purchaser on demand all
reasonable costs and expenses incurred by the Purchaser in connection with the enforcement of the
Transaction Documents against the Seller or any Affiliates of the Seller, (b) to indemnify the
Purchaser on an after-tax
basis for any stamp and other taxes and fees payable or determined to be payable in connection
with the execution, delivery, filing and recording of the Transaction Documents, and to indemnify
each Purchaser Indemnified Party on an after-tax basis in respect of any liabilities with respect
to such taxes and fees, and (c) to indemnify the Purchaser on an after-tax basis for any U.S.
federal, state or local or any foreign income, franchise or other taxes imposed on income or assets
(including any interest, penalties or accountant or counsel fees incurred in connection with such
taxes) asserted against, withheld from or required to be withheld by the Purchaser at any time that
the Notes are outstanding.

     Section 6.2 Procedures. If any claim, demand, action or proceeding (including any
investigation by any Governmental Authority) shall be brought or alleged against an indemnified
party in respect of which indemnity is to be sought against an indemnifying party pursuant to
Section 6.1, the indemnified party shall, promptly after receipt of notice of the commencement of
any such claim, demand, action or proceeding, notify the indemnifying party in writing of the
commencement of such claim, demand, action or proceeding, enclosing a copy of all papers served, if
any; provided, that the omission to so notify such indemnifying party will not relieve the
indemnifying party from any liability that it may have to any indemnified party under Section 6.1
unless, and only to the extent that, such omission results in the forfeiture of, or has a material
adverse effect on the exercise or prosecution of, substantive rights or defenses by the
indemnifying party. In case any such action is brought against an indemnified party and it

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notifies the indemnifying party of the commencement thereof, the indemnifying party will be
entitled, at the indemnifying party’s sole cost and expense, to participate therein and, to the
extent that it may wish, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified party (who shall not, except with the consent of the indemnified party, be counsel
to the indemnifying party), and, after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, the indemnifying party will not be liable to such
indemnified party under this Article VI for any legal or other expenses subsequently incurred by
such indemnified party in connection with the defense thereof other than reasonable costs of
investigation. In any such proceeding, an indemnified party shall have the right to retain its own
counsel, but the reasonable fees and expenses of such counsel shall be at the expense of such
indemnified party unless (a) the indemnifying party and the indemnified party shall have mutually
agreed to the retention of such counsel, (b) the indemnifying party has assumed the defense of such
proceeding and has failed within a reasonable time to retain counsel reasonably satisfactory to
such indemnified party or (c) the named parties to any such proceeding (including any impleaded
parties) include both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential conflicts of
interests between them based on the advice of counsel to the indemnifying party. It is agreed that
the indemnifying party shall not, in connection with any proceeding or related proceedings in the
same jurisdiction, be liable for the reasonable fees and expenses of more than one separate law
firm (in addition to local counsel where necessary) for all such indemnified parties. The
indemnifying party shall not be liable for any settlement of any proceeding effected without its
written consent, but, if settled with such consent or if there be a final judgment for the
plaintiff, the indemnifying party agrees to indemnify the indemnified party
from and against any Loss by reason of such settlement or judgment. No indemnifying party
shall, without the prior written consent of the indemnified party, effect any settlement,
compromise or discharge of any claim or pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been sought hereunder by
such indemnified party, unless such settlement, compromise or discharge, as the case may be, (i)
includes an unconditional written release of such indemnified party, in form and substance
reasonably satisfactory to the indemnified party, from all liability on claims that are the subject
matter of such claim or proceeding, (ii) does not include any statement as to an admission of
fault, culpability or failure to act by or on behalf of any indemnified party and (iii) does not
impose any continuing material obligation or restrictions on any indemnified party.

     Section 6.3 Exclusive Remedy. Except in the case of fraud or intentional breach,
following the Closing, the indemnification afforded by this Article VI shall be the sole and
exclusive remedy for any and all Losses sustained or incurred by a party hereto in connection with
the transactions contemplated by the Transaction Documents, including with respect to any breach of
any representation, warranty or certification made by a party hereto in any of the Transaction
Documents or certificates given by a party hereto in writing pursuant hereto or thereto or any
breach of or default under any covenant or agreement by a party hereto pursuant to any Transaction
Document. Notwithstanding anything in this Purchase and Sale Agreement to the contrary, in the
event of any breach or failure in performance of any covenant or agreement contained in any
Transaction Document, the non-breaching party shall be entitled to specific performance,
injunctive or other equitable relief pursuant to Section 7.2.

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ARTICLE VII

MISCELLANEOUS

     Section 7.1 Survival. All representations, warranties and covenants made herein and
in any other Transaction Document or any certificates delivered pursuant to this Purchase and Sale
Agreement shall survive the execution and delivery of this Purchase and Sale Agreement and the
Closing. The rights hereunder to indemnification, payment of Losses or other remedies based on
such representations, warranties and covenants shall not be affected by any investigation conducted
with respect to, or any knowledge acquired (or capable of being acquired) at any time (whether
before or after the execution and delivery of this Purchase and Sale Agreement or the Closing) in
respect of the accuracy or inaccuracy of or compliance with, any such representation, warranty or
covenant. The waiver of any condition based on the accuracy of any representation or warranty, or
on the performance of or compliance with any covenant, shall not affect the rights hereunder to
indemnification, payment of Losses or other remedies based on such representations, warranties and
covenants.

     Section 7.2 Specific Performance. Each of the parties hereto acknowledges that the other party hereto will have no adequate
remedy at law if it fails to perform any of its obligations under any of the Transaction Documents.
In such event, each of the parties hereto agrees that the other party hereto shall have the right,
in addition to any other rights it may have (whether at law or in equity), to specific performance
of this Purchase and Sale Agreement.

     Section 7.3 Notices. All notices, consents, waivers and other communications
hereunder shall be in writing and shall be effective (a) upon receipt when sent through the mails,
registered or certified mail, return receipt requested, postage prepaid, with such receipt to be
effective the date of delivery indicated on the return receipt, (b) upon receipt when sent by an
overnight courier, (c) on the date personally delivered to an authorized officer of the party to
which sent or (d) on the date transmitted by legible telecopier transmission with a confirmation of
receipt, in all cases, with a copy emailed to the recipient at the applicable address, addressed to
the recipient as follows:

     if to the Seller (including as Servicer under the Servicing Agreement), to:

BioCryst Pharmaceuticals, Inc.

4505 Emperor Boulevard, Suite 200

Durham, North Carolina 27703

Attention: General Counsel

Telephone: 919-859-1302

Facsimile: 919-851-1416

Email: abarnes@biocryst.com

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if to the Purchaser, to:

JPR Royalty Sub LLC

c/o BioCryst Pharmaceuticals, Inc.

4505 Emperor Boulevard, Suite 200

Durham, North Carolina 27703

Attention: General Counsel

Telephone: 919-859-1302

Facsimile: 919-851-1416

Email: abarnes@biocryst.com

Each party hereto may, by notice given in accordance herewith to each of the other party hereto,
designate any further or different address to which subsequent notices, consents, waivers and other
communications shall be sent.

     Section 7.4 Successors and Assigns. The provisions of this Purchase and Sale
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns. The Seller shall not be entitled to assign any of its
obligations and rights under any of the Transaction
Documents without the prior written consent of the Purchaser; provided,
however, that the Seller may, without the consent of the Purchaser, assign any of its
obligations or rights under the Transaction Documents to any other Person with which it may merge
or consolidate or to which it may sell all or substantially all of its assets or all of its assets
related to the Licensed Products, provided that the assignee under such assignment agrees
to be bound by the terms of the Transaction Documents and furnish a written agreement to the
Purchaser in form and substance reasonably satisfactory to the Purchaser to that effect. The
Purchaser may assign any of its obligations and rights hereunder without restriction and without
the consent of the Seller. The Purchaser shall give notice of any such assignment to the Seller
and Counterparty promptly after the occurrence thereof. The Seller shall be under no obligation to
reaffirm any representations, warranties or covenants made in this Purchase and Sale Agreement or
any of the other Transaction Documents or take any other action in connection with any such
assignment by the Purchaser.

     Section 7.5 Independent Nature of Relationship. Except for any Capital Securities of the Purchaser held by the Seller, the relationship
between the Seller and the Purchaser is solely that of seller and purchaser, and neither the Seller
nor the Purchaser has any fiduciary or other special relationship with the other party hereto or
any of its Affiliates. Nothing contained herein or in any other Transaction Document shall be
deemed to constitute the Seller and the Purchaser as a partnership, an association, a joint venture
or any other kind of entity or legal form.

     Section 7.6 Entire Agreement. This Purchase and Sale Agreement, together with the
Exhibits hereto (which are incorporated herein by reference), and the other Transaction Documents
constitute the entire agreement between the parties hereto with respect to the subject matter
hereof and supersede all prior agreements, understandings and negotiations, both written and oral,
between the parties hereto with respect to the subject matter of this Purchase and Sale Agreement.
No representation, inducement, promise, understanding, condition or warranty not set forth herein
(or in the Exhibits hereto or the other Transaction Documents) has been made or

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relied upon by
either party hereto. Except as described in Section 7.15, neither this Purchase and Sale Agreement
nor any provision hereof is intended to confer upon any Person other than the parties hereto and
the other Persons referenced in Article VI any rights or remedies hereunder.

     Section 7.7 Governing Law.

          (a) THIS PURCHASE AND SALE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING
TO CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

          (b) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the non-exclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Purchase and Sale Agreement, or for recognition or enforcement of any judgment,
and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such New York State court
or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

          (c) Each of the parties hereto hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection that it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to this Purchase and
Sale Agreement in any court referred to in Section 7.7(b). Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

          (d) Each of the parties hereto irrevocably consents to service of process in the manner
provided for notices in Section 7.3. Nothing in this Purchase and Sale Agreement will affect the
right of any party hereto to serve process in any other manner permitted by law. Each of the
parties hereto waives personal service of any summons, complaint or other process, which may be
made by any other means permitted by New York law.

     Section 7.8 Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS PURCHASE AND SALE AGREEMENT,
OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE
OTHER

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PARTY HERETO
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY HERETO WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS PURCHASE AND SALE AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.8.

     Section 7.9 Severability. If one or more provisions of this Purchase and Sale
Agreement are held to be invalid or unenforceable by a court of competent jurisdiction, such
provision shall be excluded from this Purchase and Sale Agreement and the balance of this Purchase
and Sale Agreement shall be
interpreted as if such provision were so excluded and shall remain in full force and effect be
enforceable in accordance with its terms. Any provision of this Purchase and Sale Agreement held
invalid or unenforceable only in part or degree by a court of competent jurisdiction shall remain
in full force and effect to the extent not held invalid or unenforceable.

     Section 7.10 Counterparts. This Purchase and Sale Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. This Purchase and Sale Agreement
shall become effective when each party hereto shall have received a counterpart hereof signed by
the other party hereto. Any counterpart may be executed by facsimile signature and such facsimile
signature shall be deemed an original.

     Section 7.11 Amendments; No Waivers. Neither this Purchase and Sale Agreement nor any term or provision hereof may be amended,
supplemented, restated, waived, changed or modified except with the written consent of the parties
hereto. No waiver of any right hereunder shall be effective unless such waiver is signed in
writing by the party hereto against whom such waiver is sought to be enforced. No failure or delay
by either party hereto in exercising any right, power or privilege hereunder shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. No notice to or demand on
either party hereto in any case shall entitle it to any notice or demand in similar or other
circumstances. No waiver or approval hereunder shall, except as may otherwise be stated in such
waiver or approval, be applicable to subsequent transactions. No waiver or approval hereunder
shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder. The
rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

     Section 7.12 Limited Recourse. The Seller accepts that the enforceability against the
Purchaser of any obligations of the Purchaser hereunder shall be limited to the assets of the
Purchaser, whether tangible or intangible, real or personal and the proceeds thereof. Once all
such assets have been realized upon and such assets (and proceeds thereof) have been applied in
accordance with the Indenture, any outstanding obligations of the Purchaser to the Seller hereunder
shall be extinguished. The Seller further agrees that it shall take no action against any
employee, director, officer or administrator of the Purchaser in relation to this Purchase and Sale
Agreement; provided, that nothing herein shall limit the Purchaser (or its permitted
successors or assigns) from pursuing claims, if any, against any such Person; provided,
further, that the

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foregoing shall not in any way limit, impair or otherwise affect any
rights of the Seller to proceed against any employee, director, officer or administrator of the
Purchaser (a) for intentional and willful fraud or intentional and willful misrepresentations on
the part of or by such employee, director, officer or administrator or (b) for the receipt of any
distributions or payments to which the Seller or any successor in interest is entitled, other than
distributions expressly permitted pursuant to the other
Transaction Documents. For the avoidance of doubt, this Section 7.12 does not affect the
obligations of any holder of Capital Securities of the Purchaser under the Pledge and Security
Agreement or the ability of the Trustee or any Noteholder to exercise any rights or remedies it may
have under the Pledge and Security Agreement.

     Section 7.13 Cumulative Remedies. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law. Without limiting the foregoing, the Seller hereby
authorizes the Purchaser, at any time and from time to time, to the fullest extent permitted by
law, to offset any amounts payable by the Purchaser to, or for the account of, the Seller against
any obligations of the Seller to the Purchaser arising in connection with the Transaction Documents
(including amounts payable pursuant to Article VI) that are then due and payable.

     Section 7.14 Table of Contents and Headings. The Table of Contents and headings of the Articles and Sections of this Purchase and Sale
Agreement have been inserted for convenience of reference only, are not to be considered a part
hereof and shall in no way modify or restrict any of the terms or provisions hereof.

     Section 7.15 Acknowledgment and Agreement. The Seller expressly acknowledges and
agrees that all of the Purchaser’s right, title and interest in, to and under this Purchase and
Sale Agreement shall be pledged and assigned to the Trustee as collateral by the Purchaser pursuant
to the Indenture, and the Seller consents to such pledge and assignment, without regard to whether
an event of default has occurred and is continuing under the Indenture. Each of the parties hereto
acknowledges and agrees that the Trustee, acting on behalf of the Noteholders, is a third party
beneficiary of the rights of the Purchaser arising hereunder and shall be entitled to exercise
and/or enforce certain rights of the Purchaser hereunder.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have executed this Purchase and Sale Agreement as of
the day and year first written above.

	 	 	 	 	 
	 	BIOCRYST PHARMACEUTICALS, INC.,

as Seller

 	 
	 	By:  	/s/ Stuart Grant
 	 
	 	 	Name:  	Stuart Grant 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	JPR ROYALTY SUB LLC

as Purchaser

 	 
	 	By:  	BioCryst Pharmaceuticals, Inc., its Manager
 	 
	 	 	 
	 	By:  	                                              /s/ Stuart Grant
 	 
	 	 	Name:  	Stuart Grant 	 
	 	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 

EXHIBIT A

FORM OF BILL OF SALE

     This BILL OF SALE is dated as of March 9, 2011 (the “Closing Date”) by BIOCRYST
PHARMACEUTICALS, INC., a Delaware corporation (the “Seller”), in favor of JPR ROYALTY SUB
LLC, a Delaware limited liability company (the “Purchaser”).

RECITALS

     WHEREAS, the Seller and the Purchaser are parties to that certain Purchase and Sale Agreement,
dated as of the Closing Date (the “Purchase and Sale Agreement”), pursuant to which, among
other things, the Seller agrees to sell, transfer, convey, assign, contribute and grant to the
Purchaser, and the Purchaser agrees to purchase, acquire and accept from the Seller, all of the
Seller’s right, title and interest in, to and under the Purchased Assets, for the consideration
described in the Purchase and Sale Agreement; and

     WHEREAS, the parties hereto now desire to carry out the purposes of the Purchase and Sale
Agreement by the execution and delivery of this instrument evidencing the Purchaser’s purchase,
acquisition and acceptance of the Purchased Assets;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth in the
Purchase and Sale Agreement and of other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

	 	1.	 	The Seller, by this Bill of Sale, does hereby sell, transfer, convey, assign,
contribute, grant, release, set over, confirm and deliver to the Purchaser, and the
Purchaser does hereby purchase, acquire and accept, all of the Seller’s right, title
and interest in, to and under the Purchased Assets.
	 
	 	2.	 	The parties hereto acknowledge that the Purchaser is not assuming any of the
Excluded Liabilities and Obligations.
	 
	 	3.	 	The Seller hereby covenants that, at any time or from time to time after the
Closing Date, at the Purchaser’s reasonable request and without further consideration,
the Seller shall execute and deliver to the Purchaser such other instruments of sale,
transfer, conveyance, assignment, contribution, granting and confirmation, provide such
materials and information and take such other actions, each as the Purchaser may
reasonably deem necessary to sell, transfer, convey, assign, contribute, grant,
release, set over, confirm and deliver to the Purchaser, and to confirm the Purchaser’s
title to, the Purchased Assets and to put the Purchaser in actual possession of such
Purchased Assets and assist the Purchaser in exercising all rights with respect
thereto.
	 
	 	4.	 	This Bill of Sale shall be binding upon and inure to the benefit of the Seller,
the Purchaser and their respective successors and assigns, for the uses and purposes
set forth and referred to above, effective immediately upon its delivery to the
Purchaser.

A-1

 

	 	5.	 	THIS BILL OF SALE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE RULES
THEREOF RELATING TO CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.
	 
	 	6.	 	This Bill of Sale may be executed in any number of counterparts, each of which
so executed shall be deemed to be an original, but all of such counterparts shall
together constitute but one and the same instrument.
	 
	 	7.	 	The following terms as used herein shall have the following respective
meanings:
	 
	 	 	 	“Affiliate” means, with respect to any Person, any other Person that,
directly or indirectly, controls, is controlled by or is under common control with
such Person or is a director, officer or manager of such Person. For purposes of
this definition, “control” of a Person means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of Voting Securities, by
contract or otherwise, and the terms “controlled” and “controlling”
have meanings correlative to the foregoing. For purposes hereof, the term
“Affiliate” when used in respect of the Seller shall be deemed to exclude
the Purchaser.
	 
	 	 	 	“Capital Securities” means, with respect to any Person, all shares,
interests, participations or other equivalents (however designated, whether voting
or non-voting) of such Person’s capital, whether now outstanding or issued after the
Closing Date, including common shares, ordinary shares, preferred shares, membership
interests or share capital in a limited liability company or other Person, limited
or general partnership interests in a partnership, beneficial interests in trusts or
any other equivalent of such ownership interest or any options, warrants and other
rights to acquire such shares or interests, including rights to allocations and
distributions, dividends, redemption payments and liquidation payments.
	 
	 	 	 	“Commercial Sales” has the meaning set forth in Section 9.3(a) of the
Counterparty License Agreement.
	 
	 	 	 	“Compound” has the meaning set forth in Section 1.1(m) of the Counterparty
License Agreement.
	 
	 	 	 	“Counterparty” means Shionogi & Co., Ltd., a Japanese corporation.
	 
	 	 	 	“Counterparty License Agreement” means that certain License, Development and
Commercialization Agreement dated as of February 28, 2007, as amended by that
certain First Amendment to License, Development and Commercialization Agreement
dated as of September 30, 2008, that certain letter agreement dated

A-2

 

	 	 	 	May 10, 2010 and that certain Consent Agreement dated as of November 2, 2010,
between the Seller and Counterparty. The term “Counterparty License
Agreement” shall include all rights that arise therefrom and relate thereto.
	 
	 	 	 	“Currency Hedge Agreement” means that certain Confirmation (including the
related letter agreement) dated as of March 9, 2011 and the ISDA Master Agreement
(including the schedule and credit support annex included therein) (solely insofar
as such ISDA Master Agreement relates to such Confirmation and not to any other
“Transaction” as such term is defined in such ISDA Master Agreement) dated as of
March 7, 2011, in each case between the Seller and the Currency Hedge Provider (and
any replacement foreign currency hedge arrangement entered into by the Seller as
permitted by Section 4.11(e)(i) of the Purchase and Sale Agreement) and, with
respect to such letter agreement, among the Seller, the Currency Hedge Provider, the
Purchaser and the Trustee.
	 
	 	 	 	“Currency Hedge Payments” means the amounts required to be paid to the
Seller by the Currency Hedge Provider pursuant to the Currency Hedge Agreement
(subject to all of the Currency Hedge Provider’s rights under the Currency Hedge
Agreement (including, to the extent provided in the Currency Hedge Agreement,
liquidation, netting and setoff rights, specified conditions precedent to the
Currency Hedge Provider’s required payments and performance and rights to realize on
margin or other collateral)) except any amount required to be paid to the Seller by
the Currency Hedge Provider pursuant to the Currency Hedge Agreement as a result of
a termination of the Currency Hedge Agreement by the Seller permitted by Section
4.11(e) of the Purchase and Sale Agreement.
	 
	 	 	 	“Currency Hedge Provider” means Morgan Stanley Capital Services Inc.
	 
	 	 	 	“$” means United States dollars.
	 
	 	 	 	“Excluded Liabilities and Obligations” has the meaning set forth in Section
2.4 of the Purchase and Sale Agreement.
	 
	 	 	 	“FDA” means the U.S. Food and Drug Administration and any successor agency
thereto.
	 
	 	 	 	“Field” has the meaning set forth in Section 1.1(u) of the Counterparty
License Agreement.
	 
	 	 	 	“Governmental Authority” means the government of the United States, any
other nation or any political subdivision thereof, whether state or local, and any
agency, authority (including supranational authority), commission, instrumentality,
regulatory body, court, central bank or other Person exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of
or pertaining to government, including each Patent Office, the FDA and any other
government authority in any country.

A-3

 

	 	 	 	“Indenture” means that certain indenture, dated as of the Closing Date, by
and between the Purchaser and U.S. Bank National Association, a national banking
association, as initial trustee thereunder, and any successor appointed in
accordance with the terms thereof.
	 
	 	 	 	“Intellectual Property Rights” means: (a) patents and patent applications;
(b) continuations, continuations-in-part, divisionals and substitute applications
with respect to any such patent application; (c) patents issued based on or claiming
priority to any such patent applications; (d) reissue, reexamination, renewal or
extension (including any supplemental patent certificate) of any such patents; and
(e) confirmation patent or registration patent or patent of addition based on any
such patents, in each case, owned, licensed or controlled by the Seller, that are
filed in the Territory solely to the extent that any of the foregoing relate to the
manufacture, use or sale of Licensed Products and/or Compound in the Field.
	 
	 	 	 	“Licensed Product” has the meaning set forth in Section 1.1(jj) of the
Counterparty License Agreement.
	 
	 	 	 	“Notes” means any notes issued under the Indenture from time to time,
including the JPR PhaRMASM Senior Secured 14% Notes due 2020 of the
Purchaser in the initial outstanding principal balance of $30,000,000 issued on the
Closing Date.
	 
	 	 	 	“Non-Commercial Sales” has the meaning set forth in Section 9.3(a) of the
Counterparty License Agreement.
	 
	 	 	 	“Patent” means any pending or issued patent or continuation, continuation in
part, division, extension or reissue thereof.
	 
	 	 	 	“Patent Office” means the applicable patent office, including the United
States Patent and Trademark Office and any comparable foreign patent office, for any
Intellectual Property Rights that are Patents.
	 
	 	 	 	“Person” means any natural person, firm, corporation, limited liability
company, partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, Governmental Authority or any other legal entity,
including public bodies, whether acting in an individual, fiduciary or other
capacity.
	 
	 	 	 	“Purchased Assets” means, collectively, the Seller’s (a) right, title and
interest in, to and under the Counterparty License Agreement to (i) receive all of
the Royalties, (ii) receive the reports produced by Counterparty pursuant to the
Counterparty License Agreement in respect of sales of Licensed Products in the
Territory, (iii) audit the records of Counterparty in respect of such sales pursuant
to the Counterparty License Agreement and receive an audit report summarizing the
results of any such audit and (iv) make indemnification claims against Counterparty
pursuant to the Counterparty License Agreement, (b) rights under the Currency Hedge
Agreement to receive the Currency Hedge Payments, (c) right to disapprove of an
assignment of the Counterparty License Agreement by Counterparty and (d) right to
transfer, assign or pledge the foregoing, in whole or

A-4

 

	 	 	 	in part, and the proceeds of and the rights to enforce each of the foregoing. For
the avoidance of doubt, Purchased Assets do not include (x) any amounts payable by
Counterparty to the Seller in consideration for the supply by the Seller of Compound
to Counterparty or (y) any royalties payable by Counterparty to the Seller arising
out of, related to or resulting from Non-Commercial Sales.
	 
	 	 	 	“Royalties” means (a) all royalties paid, owed, accrued or otherwise
required to be paid to the Seller or any of its Affiliates under the Counterparty
License Agreement arising out of, related to or resulting from Commercial Sales by
Counterparty or its Affiliates of Licensed Product in the Territory (including not
only from the Commercial Sale of currently approved indications for Licensed Product
in the Territory, but also from any additionally approved indications and from any
off-label usage for Licensed Product in the Territory) and, in each case,
attributable to the period commencing on the Royalties Commencement Date, including
(i) all amounts due or to be paid to the Seller or any of its Affiliates under
Section 9.3(b) of the Counterparty License Agreement and (ii) all amounts due or to
be paid to the Seller or any of its Affiliates in lieu thereof (whether based upon
Commercial Sales of Licensed Product in the Territory or otherwise), (b) all future
milestone payments paid, owed, accrued or otherwise required to be paid to the
Seller or any of its Affiliates under the Counterparty License Agreement, (c) all
indemnity payments, recoveries, damages or award or settlement amounts paid or
payable to the Seller or any of its Affiliates by any third party and arising out of
or relating to the Commercial Sale of Licensed Products in the Territory or as a
result of a breach by any Person other than the Seller of the Counterparty License
Agreement with respect to the Commercial Sale of Licensed Products in the Territory
and attributable to the period commencing on the Royalties Commencement Date,
including pursuant to Section 4.5(d) or Section 4.5(e) of the Purchase and Sale
Agreement, (d) all other amounts paid by Counterparty or any other Person pursuant
to the Counterparty License Agreement arising out of, related to or resulting from
the Commercial Sale by Counterparty or its Affiliates of Licensed Products in the
Territory and attributable to the period commencing on the Royalties Commencement
Date, (e) all accounts (as defined under the UCC) evidencing the rights to the
payments and amounts described herein and (f) all proceeds (as defined under the
UCC) of any of the foregoing.
	 
	 	 	 	“Royalties Commencement Date” means January 1, 2011.
	 
	 	 	 	“Territory” means Japan and Taiwan.
	 
	 	 	 	“Trustee” means U.S. Bank National Association, a national banking
association, as initial trustee of the Notes under the Indenture, and any successor
appointed in accordance with the terms of the Indenture.
	 
	 	 	 	“UCC” means the Uniform Commercial Code as in effect from time to time in
the State of New York; provided, that, if, with respect to any financing
statement or by reason of any provisions of law, the perfection or the effect of
perfection or

A-5

 

	 	 	 	non-perfection of the back-up security interest granted pursuant to Section 2.1(d)
of the Purchase and Sale Agreement is governed by the Uniform Commercial Code as in
effect in a jurisdiction of the United States other than the State of New York, then
“UCC” means the Uniform Commercial Code as in effect from time to time in
such other jurisdiction for purposes of the provisions of the Purchase and Sale
Agreement and any financing statement relating to such perfection or effect of
perfection or non-perfection.
	 
	 	 	 	“U.S.” or “United States” means the United States of America, its 50
states, each territory thereof and the District of Columbia.
	 
	 	 	 	“Voting Securities” means, with respect to any Person, Capital Securities of
any class or kind ordinarily having the power to vote for the election of directors,
managers or other voting members of the governing body of such Person.

A-6

 

     IN WITNESS WHEREOF, the parties hereto have executed this Bill of Sale as of the day and year
first written above.

	 	 	 	 	 
	 	BIOCRYST PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/ Stuart Grant
 	 
	 	 	Name:  	Stuart Grant 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	JPR ROYALTY SUB LLC

 	 
	 	By:  	BioCryst Pharmaceuticals, Inc., its Manager
 	 
	 	 	 
	 	By:  	                                              /s/ Stuart Grant
 	 
	 	 	Name:  	Stuart Grant 	 
	 	 	Title:  	Chief Financial Officer 	 

A-7

 

	 	 	 	 	 

EXHIBIT B

FORM OF COUNTERPARTY INSTRUCTION

     March 9, 2011

VIA OVERNIGHT COURIER

SHIONOGI & CO., LTD.

12-4, Sagisu 5 chome

Fukushima-ku, Osaka 553-0002

Japan

Attention: General Manager, License Department

Ladies and Gentlemen:

Reference is hereby made to that certain License, Development and Commercialization Agreement dated
as of February 28, 2007 between BioCryst Pharmaceuticals, Inc., a Delaware corporation
(“BioCryst”), and Shionogi & Co., Ltd., a Japanese corporation (“Shionogi”), as
amended by that certain First Amendment to License, Development and Commercialization Agreement
dated as of September 30, 2008 between BioCryst and Shionogi, that certain letter agreement dated
May 10, 2010 executed by BioCryst and Shionogi and that certain Consent Agreement dated as of
November 2, 2010 between BioCryst and Shionogi (collectively, the “License Agreement”).

Effective as of March 9, 2011, as evidenced by a Bill of Sale dated as of March 9, 2011 between JPR
Royalty Sub LLC, a Delaware limited liability company (the “Purchaser”), and BioCryst (the
“Bill of Sale”), which is attached hereto as Appendix A, BioCryst is selling,
transferring, conveying, assigning, contributing and granting the “Purchased Assets”
described in such Bill of Sale.

In addition, the Purchaser has granted a security interest in the Purchased Assets to U.S. Bank
National Association, a national banking association (the “Trustee”), for the benefit of
certain noteholders of the Purchaser.

Accordingly, you are hereby irrevocably and unconditionally directed to make all payments of
Royalties (as defined in the Bill of Sale, and which definition includes certain milestone
payments) to BioCryst by Shionogi on or after January 1, 2011 by wire transfer in United States
dollars to the following account:

U.S. Bank National Association

ABA No. 091000022

Account No. 173103321092

Ref: JPR Royalty Collection Account

Attention: Josh Tripi

In addition, you are hereby irrevocably and unconditionally instructed to send all reports or other
notices sent or required to be sent to BioCryst pursuant to the License Agreement, including the

B-1

 

reports produced by Shionogi pursuant to Section 9.3(f) of the License Agreement, to the following
party at the following address, beginning immediately:

JPR Royalty Sub LLC

c/o BioCryst Pharmaceuticals, Inc., as Manager and Servicer

4505 Emperor Boulevard, Suite 200

Durham, North Carolina 27703

Attention: General Counsel

Telephone: 919-859-1302

Facsimile: 919-851-1416

Email: abarnes@biocryst.com

Thank you for your cooperation regarding this matter.

	 	 	 	 	 
	 	Very truly yours,

BIOCRYST PHARMACEUTICALS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

B-2

 

	 	 	 	 	 

APPENDIX A

Bill of Sale

See attached.

B-A-1

 

EXHIBIT C

INTELLECTUAL PROPERTY MATTERS

“PTE” in the chart below means patent term extension.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Application Serial	 	Application Filing	 	Publication /	 	 
	Country	 	Owner	 	No.	 	Date	 	Patent Number	 	Expiration Date
	Japan

	 	BioCryst
Pharmaceuticals,
Inc.
	 	2000-526468
	 	December 17, 1998
	 	 	4102022	 	 	October 2, 2020
(PTE granted)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Japan

	 	BioCryst
Pharmaceuticals,
Inc.
	 	2001-506133
	 	June 9, 2000
	 	 	4532801	 	 	June 9, 2020
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Japan

	 	BioCryst
Pharmaceuticals,
Inc.
	 	2001-506983
	 	June 9, 2000
	 	 	4262920	 	 	May 2, 2021 (PTE
granted)
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Japan

	 	BioCryst
Pharmaceuticals,
Inc.
	 	2008-25550
	 	February 5, 2008
	 	 	2008-163035	 	 	If granted,
expiration will be
December 17, 2018
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Japan

	 	BioCryst
Pharmaceuticals,
Inc.
	 	2008-314190
	 	December 10, 2008
	 	 	4597237	 	 	June 9, 2020
	 
	 	 	 	 	 	 	 	 	 	 	 	 

C-1exv10w2

Exhibit 10.2

PLEDGE AND SECURITY AGREEMENT

MADE BY

EACH UNDERSIGNED EQUITYHOLDER

TO

U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE

Dated as of March 9, 2011

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
 RULES OF CONSTRUCTION AND DEFINED TERMS	 	 	 	 
	 
	Section 1.1 Rules of Construction and Defined Terms
	 	 	1	 
	 
	ARTICLE II 
 PLEDGE	 	 	 	 
	 
	Section 2.1 Pledge
	 	 	2	 
	 
	ARTICLE III
 DELIVERY OF ISSUER PLEDGED COLLATERAL	 	 	 	 
	 
	Section 3.1 Delivery of Issuer Pledged Collateral
	 	 	2	 
	Section 3.2 Capital Securities
	 	 	3	 
	 
	ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES	 	 	 	 
	 
	Section 4.1 Representations and Warranties
	 	 	3	 
	 
	ARTICLE V 
 SUPPLEMENTS; FURTHER ASSURANCES	 	 	 	 
	 
	Section 5.1 Supplements
	 	 	5	 
	Section 5.2 Further Assurances
	 	 	5	 
	 
	ARTICLE VI 
 COVENANTS	 	 	 	 
	 
	Section 6.1 No Sale and No Liens
	 	 	6	 
	Section 6.2 Notices
	 	 	6	 
	Section 6.3 Voting Rights
	 	 	6	 
	Section 6.4 Dividends and Distributions
	 	 	7	 
	Section 6.5 Capital Securities
	 	 	7	 
	Section 6.6 Legal Existence
	 	 	7	 
	Section 6.7 Compliance with Laws
	 	 	7	 
	Section 6.8 Modifications
	 	 	7	 
	Section 6.9 No Liquidation or Dissolution
	 	 	8	 
	Section 6.10 Monies Held in Trust
	 	 	8	 
	Section 6.11 No Claims
	 	 	8	 

i

 

	 	 	 	 	 
	 	 	Page	 
	Section 6.12 Notice to Trustee
	 	 	8	 
	Section 6.13 Other Covenants
	 	 	8	 
	 
	ARTICLE VII 
 TRUSTEE APPOINTED ATTORNEY-IN-FACT	 	 	 	 
	 
	Section 7.1
Trustee Appointed Attorney-In-Fact
	 	 	9	 
	 
	ARTICLE VIII 
 REASONABLE CARE	 	 	 	 
	 
	Section 8.1 Reasonable Care
	 	 	9	 
	 
	ARTICLE IX 
 NO LIABILITY	 	 	 	 
	 
	Section 9.1 No Liability
	 	 	10	 
	 
	ARTICLE X 
 REMEDIES UPON EVENT OF DEFAULT	 	 	 	 
	 
	Section 10.1 Remedies Upon Event of Default
	 	 	10	 
	 
	ARTICLE XI 
 PURCHASE OF THE ISSUER PLEDGED COLLATERAL	 	 	 	 
	 
	Section 11.1 Purchase of the Issuer Pledged Collateral
	 	 	12	 
	 
	ARTICLE XII 
 EXPENSES	 	 	 	 
	 
	Section 12.1 Expenses
	 	 	12	 
	 
	ARTICLE XIII 
 NO WAIVER; REMEDIES	 	 	 	 
	 
	Section 13.1 No Waiver; Remedies
	 	 	13	 
	 
	ARTICLE XIV 
 AMENDMENTS	 	 	 	 
	 
	Section 14.1 Amendments
	 	 	13	 
	 
	ARTICLE XV 
 RELEASE; TERMINATION	 	 	 	 
	 
	Section 15.1 Release; Termination
	 	 	13	 
	 
	ARTICLE XVI
 NOTICES	 	 	 	 
	 
	Section 16.1 Notices
	 	 	14	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE XVII 
 CONTINUING SECURITY INTEREST	 	 	 	 
	 
	Section 17.1 Continuing Security Interest
	 	 	14	 
	 
	ARTICLE XVIII 
 SECURITY INTEREST ABSOLUTE	 	 	 	 
	 
	Section 18.1 Security Interest Absolute
	 	 	14	 
	Section 18.2 Obligations of Equityholders Several and Not Joint
	 	 	15	 
	 
	ARTICLE XIX
 INDEMNITY	 	 	 	 
	 
	Section 19.1 Indemnity
	 	 	15	 
	 
	ARTICLE XX
 OBLIGATIONS SECURED BY ISSUER PLEDGED COLLATERAL	 	 	 	 
	 
	Section 20.1 Obligations Secured by Issuer Pledged Collateral
	 	 	16	 
	 
	ARTICLE XXI 
 SEVERABILITY	 	 	 	 
	 
	Section 21.1 Severability
	 	 	16	 
	 
	ARTICLE XXII 
 COUNTERPARTS; EFFECTIVENESS	 	 	 	 
	 
	Section 22.1 Counterparts; Effectiveness
	 	 	16	 
	 
	ARTICLE XXIII 
 REINSTATEMENT	 	 	 	 
	 
	Section 23.1 Reinstatement
	 	 	17	 
	 
	ARTICLE XXIV 
 SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL	 	 	 	 
	 
	Section 24.1 SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL
	 	 	17	 
	 
	ARTICLE XXV 
 GOVERNING LAW	 	 	 	 
	 
	Section 25.1 GOVERNING LAW
	 	 	18	 
	 
	ARTICLE XXVI 
 TABLE OF CONTENTS AND HEADINGS	 	 	 	 
	 
	Section 26.1 Table of Contents and Headings
	 	 	18	 

Annex A            Rules of Construction and Defined Terms

iii

 

PLEDGE AND SECURITY AGREEMENT

     This PLEDGE AND SECURITY AGREEMENT, dated as of March 9, 2011, is made by each undersigned
Equityholder in favor of U.S. BANK NATIONAL ASSOCIATION, a national banking association, as the
Trustee under the Indenture, as grantee hereunder.

WITNESSETH :

     WHEREAS, contemporaneously with the execution and delivery of this Pledge and Security
Agreement, pursuant to the Purchase and Sale Agreement, the Seller has sold, transferred, conveyed,
assigned, contributed and granted all of the Purchased Assets to the Issuer, in consideration of
the payment by the Issuer to the Seller of the Purchase Price and the issuance by the Issuer to the
Seller of all of the Capital Securities of the Issuer owned by the Seller;

     WHEREAS, contemporaneously with the execution and delivery of this Pledge and Security
Agreement, pursuant to the Indenture, the Issuer has issued its Original Class A Notes to the
Noteholders;

     WHEREAS, in order to secure the repayment of such Original Class A Notes, the Issuer shall,
except as otherwise expressly provided in the Indenture, grant a security interest in all of its
property and rights to the Trustee for the benefit of the Noteholders, including the Purchased
Assets, its rights under the Purchase and Sale Agreement, any Accounts and certain other collateral
in accordance with the terms and conditions thereof; and

     WHEREAS, in addition to the grant of security interest by the Issuer to the Trustee as set
forth in the immediately preceding recital, in order to further secure repayment of the Original
Class A Notes, the Trustee desires that each Equityholder pledge all of the Capital Securities of
the Issuer owned by such Equityholder to the Trustee for the benefit of the Noteholders;

     NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and in order to induce
the Noteholders to purchase the Original Class A Notes issued pursuant to the Indenture, each
Equityholder agrees, severally but not jointly, for the benefit of the Trustee on behalf of each
Noteholder, as follows:

ARTICLE I

RULES OF CONSTRUCTION AND DEFINED TERMS

     Section
1.1 Rules of Construction and Defined Terms. The rules of construction set forth in
Annex A shall apply to this Pledge and Security Agreement and are hereby incorporated by
reference into this Pledge and Security Agreement as if set forth fully in this Pledge and Security
Agreement. Capitalized terms used but not otherwise defined in this Pledge and Security Agreement
shall have the respective meanings given to such terms in Annex A, which is hereby
incorporated by reference into this Pledge and
Security Agreement as if set forth fully in this Pledge and Security Agreement. Not all terms
defined in Annex A are used in this Pledge and Security Agreement.

1

 

Article II

 PLEDGE 

     Section 2.1 Pledge. As security for the payment and performance of the Secured Obligations and
subject to and in accordance with the provisions of this Pledge and Security Agreement, each
Equityholder hereby pledges, grants, assigns, hypothecates, transfers and delivers (subject to
Section 3.1) to the Trustee, its successors and assigns, for the security and benefit of the
Noteholders, a continuing security interest in all of such Equityholder’s right, title and interest
in, to and under the following property, whether now owned or hereafter acquired (the “Issuer
Pledged Collateral”):

          (a) all of such Equityholder’s Capital Securities in the Issuer, whether now owned or acquired
in the future, and all certificates, agreements or other instruments, if any, representing such
Capital Securities (the “Issuer Pledged Equity”);

          (b) subject to Section 6.4, the right to receive all monies and property representing a
distribution in respect of the Issuer Pledged Equity of such Equityholder (except for proceeds of
the Notes to the extent not applicable to any Redemption of the Notes), whether by way of dividend,
redemption, liquidation payments, repurchase or otherwise; and

          (c) subject to Section 6.4, all proceeds of the Issuer Pledged Equity of such Equityholder and
any of the foregoing, including all shares, securities, rights, monies or other property accruing,
offered or issued at any time by way of redemption, conversion, exchange, substitution, preference,
option or otherwise in respect of the Issuer Pledged Equity of such Equityholder; provided,
however, that all of the proceeds received or unbilled but to be received by such
Equityholder in respect of any sale, transfer or other disposition of such Issuer Pledged Equity
shall be excluded (x) to the extent such Issuer Pledged Equity remains or concurrently therewith
becomes subject to this Pledge and Security Agreement and (y) such sale, transfer or other
disposition is permitted pursuant to Sections 6.1 and 17.1;

TO HAVE AND TO HOLD the Issuer Pledged Collateral of such Equityholder, together with all right,
title, interest, powers, privileges and preferences pertaining or incidental thereto, unto the
Trustee, its successors and assigns, subject to the terms and conditions set forth herein.

ARTICLE III

DELIVERY OF ISSUER PLEDGED COLLATERAL

     Section
3.1 Delivery of Issuer Pledged Collateral. Contemporaneously with the execution of this
Pledge and Security Agreement, each Equityholder shall deliver or cause to be delivered to the
Trustee, to the extent not previously delivered, (a) any and all certificates and other instruments
evidencing the Issuer Pledged Equity
then held in the form of certificates or other instruments by such Equityholder, together with
undated stock powers or assignments of such certificates duly executed and signed in blank, (b) any
and all certificates or other instruments or documents representing any of the Issuer Pledged
Collateral then held by such Equityholder and (c) all other property comprising part of the Issuer
Pledged Collateral then held in the form of certificates or other instruments by such Equityholder
with proper instruments of

2

 

assignment or transfer duly executed and such other instruments or
documents as the Trustee may reasonably request to effect the purposes contemplated hereby.

     Section 3.2 Capital Securities. If any Equityholder shall become entitled to receive or shall
receive, in respect of the Issuer Pledged Equity, any Capital Securities, options, warrants, rights
or other similar property, including any certificate representing any distribution in connection
with any recapitalization, reclassification or increase or reduction of capital (whether as an
addition to, in substitution of or in exchange for such Issuer Pledged Equity or otherwise), such
Equityholder agrees:

          (a) to accept the same as the agent of the Trustee;

          (b) to hold the same in trust on behalf of and for the benefit of the Trustee and separate and
apart from its other property; and

          (c) to deliver any and all certificates or instruments evidencing the same to the Trustee on
or before the close of business on the fifth Business Day following the receipt thereof by such
Equityholder, in the exact form received, with the endorsement or assignment in blank of such
Equityholder when necessary and with appropriate undated irrevocable proxies duly executed in blank
(with signatures properly guaranteed), to be held by the Trustee, subject to the terms of this
Pledge and Security Agreement, as additional Issuer Pledged Collateral.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.1 Representations and Warranties. Each Equityholder represents and warrants to the
Trustee, as of the date such Equityholder becomes a party to this Pledge and Security Agreement,
severally but not jointly, as follows:

          (a) If such Equityholder is not a natural person, such Equityholder has been duly organized,
is validly existing and is in good standing under the laws of its jurisdiction of organization and,
except where the failure to do so would be a Material Adverse Change, has all licenses, permits,
franchises and governmental authorizations necessary to carry on its business as now being
conducted and shall appoint and employ agents or attorneys in each jurisdiction where it shall be
necessary to take action under this Pledge and Security Agreement. Such Equityholder is duly
licensed or qualified to do business in good standing in each jurisdiction in which such
qualification is required by law, except where the failure to do so would be a Material Adverse
Change. Such Equityholder has the full power and authority to own the property it purports to own
and to carry on its business as presently conducted and as proposed to
be conducted. The jurisdiction of organization and principal place of business of such
Equityholder as of the date hereof is set forth under such Equityholder’s signature hereto.

          (b) Such Equityholder is the sole legal and beneficial owner of the Issuer Pledged Collateral
of such Equityholder, free and clear of any Lien other than the Lien created pursuant to this
Pledge and Security Agreement and the Indenture or other Permitted Liens. No security agreement,
financing statement or other public notice with respect to all or any part of the Issuer Pledged
Collateral of such Equityholder is on file or of record in any public office,

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except such as may
have been filed in favor of the Trustee pursuant to this Pledge and Security Agreement and the
Indenture.

          (c) The consummation of the transactions contemplated hereby has been duly and validly
authorized by such Equityholder. Such Equityholder has full power to execute and deliver this
Pledge and Security Agreement and to perform its obligations hereunder and to pledge all the Issuer
Pledged Collateral of such Equityholder pursuant to this Pledge and Security Agreement. This
Pledge and Security Agreement has been duly authorized, executed and delivered by such
Equityholder. This Pledge and Security Agreement constitutes a legal, valid and binding obligation
of such Equityholder enforceable against such Equityholder in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, moratorium or other similar
laws affecting creditors’ rights generally and except as enforceability may be limited by general
principles of equity (whether considered in a suit at law or in equity). All requisite action has
been taken by such Equityholder to make this Pledge and Security Agreement valid and binding upon
such Equityholder.

          (d) All necessary governmental approvals and consents of other parties (including directors,
officers, partners, members, managers or creditors of such Equityholder) have been obtained that
are required (i) for the execution, delivery and performance by such Equityholder of this Pledge
and Security Agreement or (ii) for the pledge by such Equityholder of the Issuer Pledged Collateral
of such Equityholder pursuant to this Pledge and Security Agreement (except as may be required (w)
in connection with filings of any UCC financing statements, (x) in connection with any disposition
of all or any part of the Issuer Pledged Collateral of such Equityholder under any laws affecting
the offering and sale of securities generally, (y) under applicable federal and state laws, rules
and regulations and applicable interpretations thereof providing for the supervision or regulation
of the banking or trust businesses generally and applicable to the Trustee and (z) with respect to
the Trustee as a result of any relationship that the Trustee may have with Persons not parties to,
or any activity or business the Trustee may conduct other than pursuant to, any of the Deal
Documents).

          (e) This Pledge and Security Agreement creates a valid security interest in the Issuer Pledged
Collateral of such Equityholder securing the Secured Obligations, and such Equityholder has done
such other acts, if any, reasonably requested by the Trustee to perfect the security interest in
the Issuer Pledged Collateral of such Equityholder granted hereunder (including permitting the
Trustee to file any appropriate UCC financing statement against such Equityholder).

          (f) The execution, delivery and performance by such Equityholder of this Pledge and Security
Agreement and the consummation of the transactions contemplated by this Pledge
and Security Agreement with respect to such Equityholder do not (i) violate the provisions of
the organizational documents of such Equityholder, (ii) violate the provisions of any Applicable
Law (including any usury law), regulation or order of any Governmental Authority applicable to such
Equityholder except where such violation would not reasonably be expected to be a Material Adverse
Change, (iii) result in a breach of, or constitute a default under, any material agreement relating
to the management or affairs of such Equityholder, or any indenture, credit agreement or loan
agreement or any other similar material agreement, lease or instrument to which such Equityholder
is a party or by which such Equityholder or any of its material properties may be

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bound (which
default or breach has not been permanently waived by the other party to such document) except where
such breach or default would not be a Material Adverse Change or (iv) result in or create any Lien
(other than Permitted Liens) under, or require any consent that has not been obtained under, any
indenture (including the Indenture), credit agreement or loan agreement or any other material
agreement, instrument or document or the provisions of any order, writ, judgment, injunction,
decree, determination or award of any Governmental Authority, binding upon the Issuer Pledged
Collateral of such Equityholder.

          (g) There are no proceedings and there is no action, suit or proceeding at law or in equity or
by or before any Governmental Authority now pending against such Equityholder or, to the best
knowledge of such Equityholder, threatened against such Equityholder that questions the validity or
legality of or seeks damages in connection with this Pledge and Security Agreement or that seeks to
prevent the consummation of any of the transactions contemplated by this Pledge and Security
Agreement.

          (h) The percentage of limited liability company interests of Issuer Pledged Equity held by
such Equityholder is set forth under such Equityholder’s signature hereto.

ARTICLE V

SUPPLEMENTS; FURTHER ASSURANCES

     Section 5.1 Supplements. Each Equityholder agrees that, at any time and from time to time, at
such Equityholder’s expense and upon the Trustee’s reasonable request and without assuming any
obligation for which it is not otherwise liable, such Equityholder will promptly execute and
deliver all further instruments and documents, and take all further action, that may be necessary,
in order to perfect the security interest of the Trustee in the Issuer Pledged Collateral of such
Equityholder and to carry out the provisions of this Pledge and Security Agreement or to enable the
Trustee to exercise and enforce its rights and remedies hereunder with respect to any Issuer
Pledged Collateral of such Equityholder. Each Equityholder hereby authorizes the Trustee to file
(or cause to be filed) such UCC financing statements or continuation statements, or amendments
thereto, and such other instruments or notices as may be necessary to perfect and preserve the
security interests and other rights granted or purported to be granted to the Trustee hereby in
respect of the Issuer Pledged Collateral of such Equityholder. With respect to the foregoing and
the grant of the security interest hereunder, each Equityholder hereby authorizes the Trustee to
file one or more financing or continuation statements, and amendments thereto, relative to all or
any part of the Issuer Pledged Collateral of such Equityholder.

     Section 5.2 Further Assurances. If any Equityholder fails to perform any agreement contained
herein on its part after receipt of a written request to do so from the Trustee (it being
understood that no such request need be given after the occurrence and during the continuance of an
Event of Default), the Trustee may itself perform, or cause performance of, such agreement, in
which case the reasonable expenses of the Trustee, including the reasonable fees and expenses of
its counsel, incurred in connection therewith shall be payable by such Equityholder under Section
12.1 to the extent such Equityholder would have otherwise been responsible therefor under this
Pledge and Security Agreement.

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ARTICLE VI

COVENANTS

     Section 6.1 No Sale and No Liens. Each Equityholder agrees that, without the consent of the
Trustee pursuant to Section 9.1 or Section 9.2 of the Indenture, as applicable, it will not (a)
sell or otherwise dispose of the Issuer Pledged Collateral of such Equityholder or any interest
therein or (b) except for Permitted Liens, create or permit to exist any Lien upon or with respect
to any of the Issuer Pledged Collateral of such Equityholder or any interest therein;
provided, however, that, so long as no Event of Default has occurred and is
continuing in respect of which such Equityholder has received written notice from the Trustee or
otherwise has actual knowledge thereof, each Equityholder will be entitled to sell, transfer,
assign, convey, contribute or grant the Issuer Pledged Equity of such Equityholder (x) subject to
the lien of this Pledge and Security Agreement and (y) so long as (i) such Issuer Pledged Equity in
the hands of each transferee remains subject to the pledge under this Pledge and Security
Agreement, (ii) the Trustee shall have been provided with an Opinion of Counsel as to the
continuing validity of such pledge and perfection of the security interest of the Trustee therein
and a written acknowledgement from the transferee that it is acquiring such Issuer Pledged Equity
subject to such pledge and security interest and making representations and warranties to the
effect set forth in Article IV, (iii) the Trustee shall have been provided with an Opinion of
Counsel from a law firm with a nationally recognized tax practice that such sale, transfer,
assignment, conveyance, contribution or granting should not cause a “significant modification” of
the Notes for U.S. federal income tax purposes; provided, however, that,
notwithstanding the foregoing, the Trustee shall not be required to be provided with such an
Opinion of Counsel if there has been a Change in Law and counsel to such Equityholder determines in
good faith that it is unable to render such an Opinion of Counsel (whereas it would have been able
to render such an Opinion of Counsel had the Change in Law not occurred), (iv) the transferee
agrees in writing for the benefit of the Trustee to be bound by the provisions of this Pledge and
Security Agreement and (v) the transferee is not subject to Japanese withholding tax in respect of
the Royalties.

     Section 6.2 Notices. Each Equityholder shall promptly provide the Trustee with copies of all
notices and other communications received by such Equityholder with respect to any Issuer Pledged
Collateral registered in the name of such Equityholder that could adversely affect in any material
respect the validity, perfection or priority of the pledge of the Issuer Pledged Collateral
owned by it pursuant to this Pledge and Security Agreement.

     Section 6.3 Voting Rights. So long as any Equityholder is the owner of the Issuer Pledged
Collateral of such Equityholder, notwithstanding anything to the contrary in this Pledge and
Security Agreement or any other Deal Document, unless an Event of Default has occurred and is
continuing in respect of which such Equityholder has received written notice from the Trustee or
otherwise has actual knowledge thereof, such Equityholder may exercise any and all voting and
consensual powers pertaining to the Issuer Pledged Collateral of such Equityholder or any part
thereof. If an Event of Default has occurred and is continuing in respect of which such
Equityholder has received written notice from the Trustee, and the Trustee shall have notified such
Equityholder that the Trustee shall thereafter exercise all voting and consensual powers pertaining
to the Issuer Pledged Collateral of such Equityholder or any specified part thereof, such
Equityholder shall thereafter not be entitled to exercise any of the powers described in the
preceding sentence as to the Issuer Pledged Collateral of such Equityholder or the specified part

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thereof, which powers shall be exercised exclusively by the Trustee, until further notice to the
contrary from the Trustee.

     Section 6.4 Dividends and Distributions. So long as no Event of Default has occurred and is
continuing in respect of which such Equityholder has received written notice from the Trustee or
otherwise has actual knowledge thereof, each Equityholder may receive and retain any dividends and
other distributions on the Issuer Pledged Equity of such Equityholder. If an Event of Default has
occurred and is continuing in respect of which such Equityholder has received written notice from
the Trustee or otherwise has actual knowledge thereof, such Equityholder shall not be entitled to
receive any subsequent dividends or other distributions on the Issuer Pledged Equity of such
Equityholder and, unless otherwise agreed by the Senior Trustee at the Direction of Noteholders of
a majority of the Outstanding Principal Balance of the Senior Class of Notes, all such subsequent
dividends and other distributions otherwise payable or distributable thereafter in respect of such
Equityholder’s Issuer Pledged Collateral shall constitute Issuer Pledged Collateral of such
Equityholder.

     Section 6.5 Capital Securities. Each Equityholder agrees that it will not accept any Capital
Securities of the Issuer or any rights or options to acquire any such Capital Securities, each in
addition to or in substitution for the Issuer Pledged Collateral of such Equityholder, without
prior written consent from the Trustee pursuant to Section 9.1 or Section 9.2 of the Indenture, as
applicable, unless the foregoing are pledged to the Trustee pursuant hereto.

     Section 6.6 Legal Existence. Each Equityholder shall preserve and maintain (a) its legal
existence as an entity in good standing under the laws of its jurisdiction of organization and (b)
its qualification to do business in every jurisdiction where the ownership of its properties and
the nature of its business
require it to be so qualified and where the failure to be so qualified would have a material
adverse effect on the security interest created by this Pledge and Security Agreement in respect of
the Issuer Pledged Collateral owned by it; provided, however, that a Change of
Control shall not be deemed a violation of this Section 6.6.

     Section 6.7 Compliance with Laws. Each Equityholder shall use commercially reasonable efforts to
comply with all laws, and obtain, maintain and comply with all government approvals as shall now or
hereafter be necessary under Applicable Law, in each case in connection with the making and
performance by such Equityholder of any material provision of this Pledge and Security Agreement in
respect of the Issuer Pledged Collateral owned by it.

     Section 6.8 Modifications. No Equityholder shall agree to or permit (a) the amendment,
supplement, modification, cancellation or termination of, or waiver with respect to, any of the
organizational documents of the Issuer, except upon the expiration of the stated term thereof (but
in no event prior to the Final Legal Maturity Date), or (b) any amendment, supplement or
modification of, or waiver with respect to, any of the provisions of any of such organizational
documents, if any such amendment, supplement, modification or waiver would result in a material
adverse change in respect of the validity, perfection or priority of the pledge of the Issuer
Pledged Collateral owned by it pursuant to this Pledge and Security Agreement or the exercise of
the rights by the Trustee of the rights granted to it hereunder in respect thereof.

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     Section 6.9 No Liquidation or Dissolution. Without the prior written direction by the Trustee
pursuant to Section 9.1 or Section 9.2 of the Indenture, as applicable, no Equityholder shall take
any action to liquidate, dissolve or terminate the Issuer, or to authorize or cause any such
liquidation, dissolution or termination, until all of the Secured Obligations are paid in full.

     Section 6.10 Monies Held in Trust. Subject to Section 2.1(c) and Section 6.4, each Equityholder
shall hold all monies received by it that constitute Issuer Pledged Collateral of such Equityholder
(including any payment or other benefit in breach of this Section 6.10 or Section 6.11) in trust
for the Trustee.

     Section 6.11 No Claims. Subject to Section 6.4, no Equityholder shall claim payment, whether
directly or by set-off, lien, counterclaim or otherwise, of any amount that may be or has become
due to such Equityholder from the Issuer (other than Expenses in accordance with Section 3.7(a) of
the Indenture, net proceeds from any Subordinated Note Issuance and proceeds of the issuance of the
Original Class A Notes) until all of the Secured Obligations have been paid in full, other than if
any amount received in respect thereof becomes Issuer Pledged Collateral or is entitled to become
Issuer Pledged Collateral or to prevent a claim from becoming time-barred.

     Section 6.12 Notice to Trustee. Upon any sale, transfer, assignment, conveyance, contribution or
granting of any Issuer Pledged Equity by an Equityholder, such Equityholder shall cause the
transferee (and, if any Issuer Pledged Equity is retained by such Equityholder, the Equityholder)
to provide the Trustee with executed signature pages to this Pledge and Security Agreement, which
shall set forth the percentage of limited liability company interests of Issuer Pledged Equity held
by the transferee and, if applicable, such Equityholder.

     Section 6.13 Other Covenants. Each Equityholder shall:

          (a) file all tax returns and reports required by law to be filed by it and pay all taxes
required to be paid by it, except any such taxes that are being diligently contested in good faith
by appropriate proceedings and for which adequate reserves in accordance with GAAP have been set
aside on its books, and it shall not file any tax return or report under any name other than its
exact legal name;

          (b) maintain, and shall cause the Issuer to maintain, the status of the Issuer as an entity
that is not classified as a corporation or publicly traded partnership taxable as a corporation for
U.S. federal income tax purposes;

          (c) cause the Issuer to use commercially reasonable efforts to file any form (or comply with
any other administrative formalities) required for an exemption from or a reduction of any
withholding tax for which the Issuer is eligible;

          (d) treat the Notes as debt for U.S. federal income tax purposes;

          (e) maintain in place all policies and procedures, and take and continue to take all actions,
described in the assumptions as to facts relating to the separateness of the Issuer and the Seller
set forth in, and forming the basis of, the true sale and non-consolidation opinion delivered
pursuant to Section 6.1 of the Purchase Agreements, and comply with the provisions of Section
5.2(o) of the Indenture (as to the Issuer);

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          (f) not take any action to cause the Issuer (except as required by law) to become subject to
any Voluntary Bankruptcy or Involuntary Bankruptcy;

          (g) not institute against the Issuer, or join any Person in instituting against the Issuer,
any Voluntary Bankruptcy or Involuntary Bankruptcy until one year and one day after the date on
which the Notes have been paid in full;

          (h) not cause the Issuer to petition for a Voluntary Bankruptcy or an Involuntary Bankruptcy
before one year and one day have elapsed since the Notes have been paid in full or, if longer, the
applicable preference period then in effect; and

          (i) not pass a resolution to cause the Issuer to be liquidated before one year and two days
have elapsed since the Notes have been paid in full.

ARTICLE VII

TRUSTEE APPOINTED ATTORNEY-IN-FACT

     Section 7.1 Trustee Appointed Attorney-In-Fact. Each Equityholder hereby appoints the Trustee, or
any Person (including any officer or agent) whom the Trustee may designate, as such Equityholder’s
true and lawful attorney-in-fact, with full irrevocable power and authority in the place and stead
of such Equityholder and in the name of such Equityholder or in its own name, at such
Equityholder’s cost and expense, from time to time in the Trustee’s reasonable discretion to take
any action and to execute any instrument that the Trustee may reasonably deem necessary or
advisable to enforce its rights under this Pledge and Security Agreement, including authority to
receive, endorse and collect all instruments made payable to such Equityholder representing any
distribution, interest payment or other payment in respect of the Issuer Pledged Collateral of such
Equityholder or any part thereof and to give full discharge for the same and to sign, complete and
deliver all transfers, proxies and letters of resignation; provided, however, that
the Trustee will not exercise its powers under this Section 7.1 unless so instructed by the
Noteholders pursuant to and in accordance with the Indenture; provided, further,
that if there is more than one Equityholder, the Trustee will enforce its rights and exercise its
remedies against all Equityholders ratably and shall not enforce its rights or exercise its
remedies against one Equityholder without similarly enforcing its rights and exercising its
remedies against all Equityholders in the same manner.

ARTICLE VIII

REASONABLE CARE

     Section 8.1 Reasonable Care. The Trustee shall be deemed to have exercised reasonable care in the
custody and preservation of the Issuer Pledged Collateral in its possession if the Issuer Pledged
Collateral is accorded treatment substantially equivalent to that which the Trustee accords its own
property of the type of which the Issuer Pledged Collateral consists, it being understood that the
Trustee shall have no responsibility for (a) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relative to any Issuer Pledged
Collateral, whether or not the Trustee has or is deemed to have knowledge of such matters, or (b)
taking any necessary steps to preserve rights against any parties with respect to any Issuer
Pledged Collateral absent its bad faith, gross negligence or willful misconduct.

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ARTICLE IX

NO LIABILITY

     Section 9.1 No Liability. Neither the Trustee nor any of its directors, officers, employees or
agents shall be deemed to have assumed any of the liabilities or obligations of any Equityholder as
a result of the pledge and security interest granted under or pursuant to this Pledge and Security
Agreement. In the absence of bad faith, gross negligence or willful misconduct, the Trustee or any
of its directors, officers, employees or agents shall not be liable for any failure to collect or
realize
upon the Secured Obligations or any collateral security or guarantee therefor, or any part
thereof, or for any delay in so doing nor shall it be under any obligation to take any action
whatsoever with regard thereto.

ARTICLE X

REMEDIES UPON EVENT OF DEFAULT

     Section 10.1 Remedies Upon Event of Default. Subject to Section 4.3 of the Indenture and to the
extent permitted by Applicable Law, if an Event of Default shall have occurred and be continuing
and the Trustee shall have given written notice of such Event of Default to the Equityholders:

          (a) The Trustee may exercise the power of attorney described in Section 7.1 with respect to
any of the certificates or other instruments delivered pursuant to Section 3.1 with respect to the
Issuer Pledged Collateral and may sign, complete and deliver all transfers, proxies and letters of
resignation and do all acts and things that the Trustee may in its absolute discretion specify to
enable or assist the Trustee to perfect or improve its security over the Capital Securities, to
vest ownership of the Capital Securities in the Trustee or its nominee, to provide that the Trustee
is registered as the holder of the Capital Securities, to exercise any rights or powers attaching
to the Capital Securities, to sell the Capital Securities or otherwise to enforce any of the rights
of the Trustee under this Pledge and Security Agreement.

          (b) The Trustee may exercise in respect of the Issuer Pledged Collateral, in addition to other
rights and remedies provided for herein or otherwise available to it, all the rights and remedies
of a secured party on default under the UCC, to the extent permitted by Applicable Law or the UCC
as then in effect in any applicable jurisdiction, and the Trustee may also in its sole discretion,
without notice except as specified below or except as required by mandatory provisions of the UCC
and other Applicable Law, sell, subject to Section 11.1, the Issuer Pledged Collateral or any part
thereof in one or more parcels at public or private sale or at any of the Trustee’s offices or
elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such
other terms as the Trustee may deem commercially reasonable, irrespective of the impact of any such
sales on the market price of the Issuer Pledged Collateral at any such sale. Each purchaser at any
such sale shall hold the property, sold absolutely, free from any claim or right on the part of any
Equityholder, and each Equityholder hereby waives (to the extent permitted by law) all rights of
redemption, stay and/or appraisal that it now has or may at any time in the future have under any
rule of law or statute now existing or hereafter enacted. Each Equityholder agrees that, to the
extent notice of sale shall be required by law, at least ten days’ notice to such Equityholder of
the time and place of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. The Trustee shall not be

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obligated to make any sale of Issuer
Pledged Collateral regardless of notice of sale having been given. The Trustee may adjourn any
public or private sale from time to time by announcement at the time and place fixed therefor, and
such sale may, without further notice, be made at the time and place to which it was so adjourned.
The Trustee shall incur no liability as a result of the sale of the Issuer Pledged Collateral, or
any part thereof, at any public or private sale, absent bad faith, gross negligence or willful
misconduct.

          (c) Each Equityholder recognizes that the Trustee may elect in its sole discretion to sell all
or a part of the Issuer Pledged Collateral to one or more purchasers in privately negotiated
transactions in which the purchasers will be obligated to agree, among other things, to acquire the
Issuer Pledged Collateral for their own account, for investment and not with a view to the
distribution or resale thereof. Each Equityholder acknowledges that any such private sales may be
at prices and on terms less favorable than those obtainable through a public sale (including a
public offering made pursuant to a registration statement under the Securities Act), and the
Equityholders and the Trustee agree that such private sales shall be deemed to have been made in a
commercially reasonable manner and that the Trustee has no obligation to engage in public sales or
to delay sale of any Issuer Pledged Collateral to permit the Issuer to register the Issuer Pledged
Collateral for a form of public sale thereof requiring registration under the Securities Act.

          (d) Any cash held by the Trustee as Issuer Pledged Collateral and all cash proceeds received
by the Trustee in respect of any sale of, collection from or other realization upon all or any part
of the Issuer Pledged Collateral shall, as soon as reasonably practicable, be applied (after
payment of any amounts payable to the Trustee pursuant to Section 12.1) by the Trustee
first to the payment of the costs and expenses of such sale, collection or other
realization, if any, including reasonable out-of-pocket costs and expenses of the Trustee
(including the reasonable fees and out-of-pocket expenses of its counsel), and all reasonable
expenses, liabilities and advances made or incurred by the Trustee in connection therewith,
second to the payment of the Secured Obligations in accordance with the terms of the
Indenture and third to each Equityholder or its successors or assigns in respect to its
respective Issuer Pledged Collateral as indicated in the signature page hereto (or pursuant to
Section 6.12) and in respect to its respective portion of the proceeds from any sale of, collection
from or other realization upon all or any part of the Issuer Pledged Collateral.

          (e) Each Equityholder agrees that:

          (i) in any sale of any of the Issuer Pledged Collateral, whenever an Event of Default
shall have occurred and be continuing, the Trustee is hereby authorized to comply with any
limitation or restriction in connection with such sale as it may be advised by counsel is
necessary in order to:

                    (A) avoid any violation of Applicable Law (including compliance with such procedures as may
restrict the number of prospective bidders and purchasers, require that such prospective bidders
and purchasers have certain qualifications and restrict such prospective bidders and purchasers to
Persons who will represent and agree that they are purchasing for their own account for investment
and not with a view to the distribution or resale of such Issuer Pledged Collateral); or

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                         (B) obtain any required approval of the sale or of the purchaser by any Governmental Authority
or official; and

          (ii) such compliance shall not result in such sale being considered or deemed not to
have been made in a commercially reasonable manner, nor shall the Trustee be liable or
accountable to any Equityholder for any discount allowed by the
reason of the fact that such Issuer Pledged Collateral is sold in compliance with any
such limitation or restriction.

ARTICLE XI

PURCHASE OF THE ISSUER PLEDGED COLLATERAL

     Section 11.1 Purchase of the Issuer Pledged Collateral. In connection with the potential
foreclosure or sale of any Issuer Pledged Collateral upon the occurrence and continuation of an
Event of Default, the Seller (as long as it holds any of the Capital Securities of the Issuer)
shall have the right, but not the obligation, to match any offer to purchase all or any portion of
such Issuer Pledged Collateral from a third party. In the event that the Seller does not offer to
purchase any Issuer Pledged Collateral within 10 Business Days of such offer, the Trustee may sell
any remaining Issuer Pledged Collateral to third parties; provided, that such third parties
shall have first executed a confidentiality agreement substantially similar to the Confidentiality
Agreement and delivered such confidentiality agreement to the Trustee and the Seller. Subject to
the immediately preceding sentence, any Equityholder may, but shall not be required to, bid on and
be a purchaser of the Issuer Pledged Collateral or any part thereof (including any Issuer Pledged
Collateral of such Equityholder) or any right or interest therein at any sale thereof, whether
pursuant to foreclosure, power of sale or otherwise. In connection with any such sale of any
Issuer Pledged Collateral by the Trustee pursuant to this Section 11.1, the Trustee may apply the
purchase price to the payment of the Secured Obligations secured hereby. Any purchaser of all or
any part of the Issuer Pledged Collateral shall, upon any such purchase, acquire good title to the
Issuer Pledged Collateral so purchased, free of the security interests created by this Pledge and
Security Agreement.

ARTICLE XII

EXPENSES

     Section 12.1 Expenses. Each Equityholder will upon demand pay to the Trustee the amount of any and
all reasonable expenses, including the reasonable fees and expenses of its counsel and of any
experts and the Trustee, and any transfer taxes, in each case payable upon sale of the Issuer
Pledged Collateral of such Equityholder, which the Trustee may incur solely in connection with (a)
the custody or preservation of, or the sale of, collection from or other realization upon, any of
the Issuer Pledged Collateral of such Equityholder, (b) the exercise or enforcement of any of the
rights of the Trustee hereunder against such Equityholder or the Issuer Pledged Collateral of such
Equityholder, (c) the failure by such Equityholder to perform or observe any of the provisions
hereof or (d) the administration of this Pledge and Security Agreement in respect of such
Equityholder. Any amount payable by an Equityholder pursuant to this Section 12.1 shall constitute
Secured Obligations secured hereby; provided, however, that in

12

 

no event shall the
Issuer Pledged Collateral of one Equityholder be used to satisfy the failure by another
Equityholder to make any such payment.

ARTICLE XIII

NO WAIVER; REMEDIES

     Section 13.1 No Waiver; Remedies. No failure or delay on the part of the Trustee to exercise, and
no course of dealing with respect to, and no delay in exercising, any right, power or remedy
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by the
Trustee of any right, power or remedy preclude any additional exercise by the Trustee of such
right, power or remedy. The remedies herein provided are to the fullest extent permitted by law
cumulative and are not exclusive of any remedies provided by law. No notice to or demand on any
Equityholder in any case shall entitle such Equityholder to any other or further notice or demand
in similar or other circumstances.

ARTICLE XIV

AMENDMENTS

     Section 14.1 Amendments.

          (a) No waiver, amendment, modification or termination of any provision of this Pledge and
Security Agreement, or consent to any departure by any Equityholder therefrom, shall in any event
be effective without the written concurrence of the Trustee pursuant to Section 9.1 or Section 9.2
of the Indenture, as applicable, and (except as otherwise provided in Section 15.1) none of the
Issuer Pledged Collateral shall be released without the written consent of the Trustee pursuant to
Section 9.1 or Section 9.2 of the Indenture, as applicable. Any such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given.

          (b) As long as the Seller is the holder of any Capital Securities of the Issuer, no amendment,
modification or termination of any provision of this Pledge and Security Agreement shall be
effective without the written concurrence of the Seller.

ARTICLE XV

RELEASE; TERMINATION

     Section 15.1 Release; Termination. Upon payment and performance in full of the Secured Obligations
or discharge of the Indenture pursuant to Section 11.1 of the Indenture, this Pledge and Security
Agreement shall terminate automatically, and the Trustee (a) upon written request by any
Equityholder shall promptly deliver to such Equityholder any remaining Issuer Pledged Collateral of
such Equityholder and money received in respect thereof in its possession, and all documents,
agreements or instruments representing the Issuer Pledged Collateral of such Equityholder held by
the Trustee prior to such termination, and (b) upon written request by any Equityholder, shall
promptly execute and deliver to such Equityholder and, if necessary, file or record, at such
Equityholder’s expense, all such documentation (including UCC termination statements) necessary to
release, and evidence the release of, the liens on the Issuer Pledged

13

 

 Collateral of
such Equityholder, such documentation to be prepared by such Equityholder and delivered to the
Trustee. If the Trustee fails to promptly deliver or file or record the UCC termination statements
referred to in, and in accordance with, clause (b) in the immediately preceding sentence, then such
Equityholder may file or record such UCC termination statements.

ARTICLE XVI

NOTICES

     Section 16.1 Notices. All Notices shall be in writing and shall be effective (a) upon receipt when
sent through the mails, registered or certified mail, return receipt requested, postage prepaid,
with such receipt to be effective the date of delivery indicated on the return receipt, (b) upon
receipt when sent by an overnight courier, (c) on the date personally delivered to an authorized
officer of the party to which sent, (d) on the date transmitted by legible telecopier transmission
with a confirmation of receipt or (e) in the case of any report that is of a routine nature, on the
date sent by first class mail or overnight courier or transmitted by legible telecopier
transmission, in all cases, with a copy emailed to the recipient at the applicable address,
addressed to an Equityholder as set forth under such Equityholder’s signature hereto and to the
Trustee in accordance with Section 12.5 of the Indenture. Each party hereto may, by notice given
in accordance herewith to each other party hereto, designate any further or different address to
which subsequent Notices shall be sent.

ARTICLE XVII

CONTINUING SECURITY INTEREST

     Section 17.1 Continuing Security Interest. Subject to the provisions of Section 6.1, this Pledge
and Security Agreement shall create a continuing Lien in the Issuer Pledged Collateral and remain
in full force and effect until the release thereof pursuant to Section 15.1 or the sale thereof
pursuant to Section 11.1, shall be binding upon each Equityholder and its respective successors,
transferees and assigns and shall inure to the benefit of and be enforceable by the Trustee and its
successors, transferees and assigns; provided, however, that no Equityholder may
(unless otherwise permitted hereunder) assign any of its obligations hereunder without the prior
written consent of the Noteholders or the Trustee pursuant to the Indenture. The Trustee and the
Noteholders may assign or otherwise transfer any indebtedness held by any of them secured by this
Pledge and Security Agreement to any other Person in accordance with the Indenture, and such other
Person shall thereupon become vested with all the benefits in respect thereof granted to the
Trustee herein or otherwise.

ARTICLE XVIII

SECURITY INTEREST ABSOLUTE

     Section 18.1 Security Interest Absolute. All rights of the Trustee and security interests
hereunder, and all obligations of each Equityholder hereunder, shall be absolute and unconditional
irrespective of, and each
Equityholder hereby irrevocably waives vis-à-vis the Trustee any defenses it may now have or
may hereafter acquire in any way relating to, any or all of the following:

14

 

          (a) any lack of validity or enforceability of any of the Deal Documents or any other
agreement or instrument relating thereto (other than against the Trustee);

          (b) any change in the time, manner or place of payment of, or in any other term of, all or any
of the Secured Obligations, or any other amendment or waiver of or any consent to any departure
from the Deal Documents or any other agreement or instrument relating thereto, including any
increase in the Secured Obligations resulting from the extension of additional credit;

          (c) any taking, exchange, surrender, release or non-perfection of any Issuer Pledged
Collateral or any other collateral securing the Secured Obligations, or any release or amendment or
waiver of or consent to any departure from any guaranty, for all or any of the Secured Obligations;

          (d) any manner of application of any other collateral, or proceeds thereof, to all or any of
the Secured Obligations, or any manner of sale or other disposition of any other collateral
securing all or any of the Secured Obligations or any other obligations of the Issuer under or in
respect of the Deal Documents or of any other assets of the Issuer;

          (e) any change, restructuring or termination of the limited liability company structure or
existence of the Issuer;

          (f) the release or reduction of liability of any guarantor or surety with respect to the
Secured Obligations; or

          (g) any other circumstance (including any statute of limitations) or any existence of or
reliance on any representation to the Trustee that might otherwise constitute a defense available
to, or a discharge of, the obligations of any Equityholder.

     Section 18.2 Obligations of Equityholders Several and Not Joint. Notwithstanding any other
provision of this Pledge and Security Agreement, the obligations of each Equityholder hereunder
shall be several and not joint and in no event shall the Issuer Pledged Collateral of one
Equityholder be used to satisfy the failure by any other Equityholder to perform any obligation
hereunder.

ARTICLE XIX

INDEMNITY

     Section 19.1 Indemnity. Each Equityholder agrees, severally and not jointly, to indemnify,
reimburse, defend and save and hold the Trustee and its officers, directors, employees, trustees,
agents, advisors and affiliates (each, an “Indemnitee” and, collectively, the
“Indemnitees”) harmless from and against, and shall pay on demand, any and all liabilities,
losses, obligations, damages, injuries, penalties, claims, demands, actions, suits, judgments and
any and all costs and expenses (including attorneys’ fees and disbursements) of whatsoever kind and
nature imposed on,
asserted against or incurred by any of the Indemnitees solely (a) in connection with the
custody or preservation of, or the sale of, collection from or other realization upon, any of the
Issuer Pledged Collateral of such Equityholder pursuant to the exercise or

15

 

enforcement of any of
the rights of the Trustee hereunder, (b) in connection with the failure by such Equityholder to
perform or observe any of the provisions hereof to be performed by it or (c) arising out of or in
connection with or resulting from this Pledge and Security Agreement and the transactions
contemplated hereby in respect of such Equityholder, excluding those arising out of the bad faith,
gross negligence or willful misconduct of any Indemnitee. Each Indemnitee agrees to use its best
efforts to promptly notify the indemnitor(s) of any assertion of any such liability, damage,
injury, penalty, claim, demand, action, judgment or suit of which such Indemnitee has knowledge.

     The obligations of each Equityholder in this Section 19.1 shall survive the termination of
this Pledge and Security Agreement.

ARTICLE XX

OBLIGATIONS SECURED BY ISSUER PLEDGED COLLATERAL

     Section 20.1 Obligations Secured by Issuer Pledged Collateral. Any amounts paid by any Indemnitee
as to which such Indemnitee has the right to indemnification, and any amounts paid by the Trustee
in preservation of any of its rights or interest in the Issuer Pledged Collateral, shall constitute
Secured Obligations secured by the Issuer Pledged Collateral.

ARTICLE XXI

SEVERABILITY

     Section 21.1 Severability. Any provision of this Pledge and Security Agreement that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without, to the extent permitted by Applicable Law,
invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not, to the extent permitted by Applicable Law, invalidate or render
unenforceable such provision in any other jurisdiction. Where provisions of any law or regulation
resulting in such prohibition or unenforceability may be waived, they are hereby waived by the
parties hereto to the full extent permitted by law so that this Pledge and Security Agreement shall
be deemed a valid, binding agreement in accordance with its terms, to the extent permitted by
Applicable Law.

ARTICLE XXII

COUNTERPARTS; EFFECTIVENESS

     Section 22.1 Counterparts; Effectiveness . This Pledge and Security Agreement and any amendments, waivers, consents or supplements may
be executed in counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the same instrument.
This Pledge and Security Agreement shall become effective upon the execution and delivery of a
counterpart hereof by each of the original parties hereto and, with respect to any Person becoming
a party hereto after the date hereof, upon the execution and delivery hereof by such Person.

16

 

ARTICLE XXIII

REINSTATEMENT

     Section 23.1 Reinstatement. This Pledge and Security Agreement shall continue to be effective or
be reinstated, as the case may be, with respect to any Equityholder if at any time any amount
received by the Trustee hereunder or pursuant hereto is rescinded or must otherwise be restored or
returned by the Trustee, as the case may be, upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of such Equityholder or upon the appointment of any intervenor or
conservator of, or trustee or similar official for, such Equityholder or any substantial part of
its assets, or upon the entry of an order by a bankruptcy court avoiding the payment of such
amount, or otherwise, all as though such payments had not been made.

ARTICLE XXIV

SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL

     Section 24.1 SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.

          (a) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS PLEDGE AND SECURITY AGREEMENT OR ANY
DOCUMENT RELATED HERETO MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK LOCATED IN THE
BOROUGH OF MANHATTAN, THE CITY OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND EACH EQUITYHOLDER HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS RESPECTIVE PROPERTY,
GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH
EQUITYHOLDER AND THE TRUSTEE HEREBY IRREVOCABLY WAIVE TRIAL BY JURY, AND EACH EQUITYHOLDER HEREBY
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS.

          (b) EACH EQUITYHOLDER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE SENDING OF COPIES THEREOF BY FEDERAL
EXPRESS OR OTHER OVERNIGHT COURIER COMPANY, TO SUCH EQUITYHOLDER
AT ITS ADDRESS SPECIFIED BY SECTION 16.1, SUCH SERVICE TO BECOME EFFECTIVE UPON DELIVERY
THEREOF TO SUCH EQUITYHOLDER.

          (c) NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE TRUSTEE TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY EQUITYHOLDER IN
ANY OTHER JURISDICTION.

17

 

ARTICLE XXV

GOVERNING LAW

     Section 25.1 GOVERNING LAW. THIS PLEDGE AND SECURITY AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE INTERNAL SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE
RULES THEREOF RELATING TO CONFLICTS OF LAW OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW
OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL
BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, EXCEPT TO THE EXTENT THE VALIDITY OR PERFECTION OF THE
SECURITY INTEREST HEREUNDER, OR THE REMEDIES HEREUNDER, ARE GOVERNED BY THE LAWS OF ANY
JURISDICTION OTHER THAN THE STATE OF NEW YORK.

ARTICLE XXVI

TABLE OF CONTENTS AND HEADINGS

     Section 26.1 Table of Contents and Headings. The Table of Contents and headings of the Articles
and Sections of this Pledge and Security Agreement have been inserted for convenience of reference
only, are not to be considered a part hereof and shall in no way modify or restrict any of the
terms or provisions hereof.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the parties hereto have executed this Pledge and Security Agreement as of
the day and year first written above.

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

not in its individual capacity but solely as Trustee

 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                   /s/ Alison D.B. Nadeau
 	 
	 	 	Name:  	Alison D.B. Nadeau 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 
	 	BIOCRYST PHARMACEUTICALS, INC.

 	 

	 	 	 	 	 
	 	By:  	                   /s/       Stuart Grant
 	 
	 	 	Name:  	Stuart Grant 	 
	 	 	Title:  	Chief Financial Officer	 
	 
	 	 	

Percentage of Limited Liability Company Interests

   of Issuer Pledged Equity as of the date hereof: 100%

Notice Information pursuant to Section 16.1:

Address: 4505 Emperor Boulevard, Suite 200

               Durham, North Carolina 27703

Attention: General Counsel

Telephone: 919-859-1302

Facsimile: 919-851-1416

Email: abarnes@biocryst.com

Jurisdiction of Organization as of

     the date hereof: Delaware 	 

 

 

	 	 	 	 	 

ANNEX A

RULES OF CONSTRUCTION AND DEFINED TERMS

Unless the context otherwise requires, in this Annex A and each Transaction Document (or
other document) to which this Annex A is attached:

	(a)	 	A term has the meaning assigned to it and an accounting term not otherwise defined has the
meaning assigned to it in accordance with GAAP.
	 
	(b)	 	Unless otherwise defined, all terms used herein or therein that are defined in the UCC shall
have the meanings stated in the UCC.
	 
	(c)	 	Words of the masculine, feminine or neuter gender shall mean and include the correlative
words of other genders, and words in the singular shall include the plural, and vice versa.
	 
	(d)	 	The terms “include”, “including” and similar terms shall be construed as if followed by the
phrase “without limitation”.
	 
	(e)	 	References to an agreement or other document include references to such agreement or document
as amended, restated, reformed, supplemented or otherwise modified in accordance with the
terms thereof and include any Annexes, Exhibits and Schedules attached thereto, and the
provisions thereof apply to successive events and transactions.
	 
	(f)	 	References to any statute or other legislative provision shall include any statutory or
legislative modification or re-enactment thereof, or any substitution therefor.
	 
	(g)	 	References to any Person shall be construed to include such Person’s successors and permitted
assigns.
	 
	(h)	 	The word “will” shall be construed to have the same meaning and effect as the word “shall”.
	 
	(i)	 	The words “hereof”, “herein”,
“hereunder” and similar terms when used in this Annex A or any
Transaction Document (or other document) shall refer to this Annex A or such
Transaction Document (or other document) as a whole and not to any particular provision hereof
or thereof, and Article, Section, Annex, Schedule and Exhibit references herein and therein
are references to Articles and Sections of, and Annexes, Schedules and Exhibits to, the
relevant Transaction Document (or other document) unless otherwise specified.
	 
	(j)	 	In the computation of a period of time from a specified date to a later specified date, the
word “from“ means “from and including“ and each of the
words “to“ and “until“ means “to but excluding”.
	 
	(k)	 	References to a class of Notes shall be to the Original Class A Notes, to a class of
Subordinated Notes or to a class of Refinancing Notes, as applicable.

 

 

	(l)	 	References to the Notes include the terms and conditions in the relevant Transaction Document
(or other document) applicable to the Notes, and any reference to any amount of money due or
payable by reference to the Notes shall include any sum covenanted to be paid by the Issuer
under the relevant Transaction Document (or other document) in respect of the Notes.
	 
	(m)	 	References to any action, remedy or method of judicial proceeding for the enforcement of the
rights of creditors or of security shall be deemed to include, in respect of any jurisdiction
other than the State of New York, references to such action, remedy or method of judicial
proceeding for the enforcement of the rights of creditors or of security available or
appropriate in such jurisdiction as shall most nearly approximate such action, remedy or
method of judicial proceeding described or referred to in the relevant Transaction Document
(or other document).
	 
	(n)	 	Where any payment is to be made, any funds are to be applied or any calculation is to be made
under any Transaction Document (or other document) on a day that is not a Business Day, unless
any Transaction Document (or other document) otherwise provides, such payment shall be made,
such funds shall be applied and such calculation shall be made on the next succeeding Business
Day, and payments shall be adjusted accordingly, including interest unless otherwise
specified; provided, however, that no interest shall accrue in respect of any
payments made on Fixed Rate Notes on that next succeeding Business Day.
	 
	(o)	 	References to any Calculation Date or Relevant Calculation Date, in each case that would be
prior to the first Calculation Date that follows the Closing Date, shall be deemed to refer to
the Closing Date.
	 
	(p)	 	Any reference herein to a term that is defined by reference to its meaning in the
Counterparty License Agreement or the UAB Agreement shall refer to such term’s meaning in the
Counterparty License Agreement or the UAB Agreement, as the case may be, as in existence on
the date of the relevant Transaction Document (or other document) to which this Annex
A is attached (and not to any new, substituted or amended version thereof).

A-3

 

     “144A Global Note” has the meaning set forth in Section 2.1(b) of the Indenture.

     “Acceleration Default” means any Event of Default of the type described in Section
4.1(f) of the Indenture.

     “Acceleration Notice” means a written notice given after the occurrence and
continuation of an Event of Default to the Issuer by the Senior Trustee pursuant to Section 4.2 of
the Indenture declaring all Outstanding principal of and accrued and unpaid interest on the Notes
to be immediately due and payable.

     “Accounts” means the Collection Account, the Redemption Account, the Escrow Account,
the Capital Account, the Interest Reserve Account and any other account established pursuant to
Section 3.1 of the Indenture.

     “Act” has the meaning set forth in Section 1.3(a) of the Indenture.

     “Actual Beneficial Holder List” has the meaning set forth in Section 2.5(d) of the
Indenture.

     “Additional Interest” means, with respect to the Notes, interest accrued on the amount
of any interest and Premium, if any, in respect of such Notes that is not paid when due at the
Stated Rate of Interest of such Notes for each Interest Accrual Period until any such unpaid
interest or Premium is paid in full, compounded annually on each Payment Date, to the fullest
extent permitted by Applicable Law.

     “Affiliate” means, with respect to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such Person or is a
director, officer or manager of such Person. For purposes of this definition, “control” of
a Person means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the ownership of Voting
Securities, by contract or otherwise, and the terms “controlled” and “controlling”
have meanings correlative to the foregoing.

     “Agent Members” has the meaning set forth in Section 2.10(a) of the Indenture.

     “Applicable Law” means, with respect to any Person, all laws, rules, regulations and
orders of Governmental Authorities applicable to such Person or any of its properties or assets.

     “Applicants” has the meaning set forth in Section 6.13 of the Indenture.

     “Approved Holder List” has the meaning set forth in Section 2.5(d) of the Indenture.

     “Audit Expenses” has the meaning set forth in Section 6.14(b) of the Indenture.

     “Authorized Agent” means, with respect to the Notes, any authorized Calculation Agent,
Paying Agent or Registrar acting as such for the Notes.

A-4

 

     “Available Collections Amount” means, for any Payment Date, the sum of (a) the amount
of U.S. dollars on deposit in the Collection Account as of the Calculation Date immediately
preceding such Payment Date and (b) the amount of any net investment income on amounts on deposit
in the Accounts (other than the Capital Account) as of such Calculation Date.

     “Bankruptcy Code” means Title 11 of the United States Code, as amended.

     “Beneficial Holder” means any Person that holds a Beneficial Interest in any Global
Note through an Agent Member.

     “Beneficial Interest” means any beneficial interest in any Global Note, whether held
directly by an Agent Member or held indirectly through an Agent Member’s beneficial interest in
such Global Note.

     “Bill of Sale” means that certain bill of sale dated as of the Closing Date executed
by the Seller and the Issuer.

     “Business Day” means (a) any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by Applicable Law to remain closed or
a day on which the Corporate Trust Office is closed for business and (b) for purposes of
calculating any amounts at the London interbank offered rate and related calculations relative to
the making, continuing, prepaying or repaying of Indebtedness in respect thereof, any day that is a
Business Day described in clause (a) that is also a day on which dealings in dollars are carried on
in the London interbank market.

     “Calculation Agent” means U.S. Bank National Association, a national banking
association, as Calculation Agent under the Indenture, and any successor appointed pursuant to
Section 2.3 of the Indenture.

     “Calculation Date” means, for any Payment Date, the fifth Business Day preceding such
Payment Date.

     “Calculation Date Information” means, with respect to any Calculation Date, the
information provided by the Servicer under Section 3.1(c) of the Servicing Agreement with respect
to such Calculation Date.

     “Calculation Report” has the meaning set forth in Section 3.5(b) of the Indenture.

     “Capital Account” has the meaning set forth in Section 3.1(a) of the Indenture.

     “Capital Securities” means, with respect to any Person, all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s capital, whether now outstanding or issued after the Closing Date, including common
shares, ordinary shares, preferred shares, membership interests or share capital in a limited
liability company or other Person, limited or general partnership interests in a partnership,
beneficial interests in trusts or any other equivalent of such ownership interest or any options,
warrants and other rights to acquire such shares or interests, including rights to allocations and
distributions,

A-5

 

dividends, redemption payments and liquidation payments, but in any event excluding any
membership interest in the Issuer held by the Independent Member.

     “Change in Law” means the occurrence, after the date of the Memorandum, of any of the
following: (a) the adoption or taking effect of any law, rule, statute, ordinance, regulation or
treaty; (b) any change in any law, rule, statute, ordinance, regulation or treaty or in the
administration, interpretation or application thereof by any Governmental Authority whether or not
such change can be relied on as precedent; or (c) the making or issuance of any guideline,
directive, private ruling or administrative guidance (whether or not having the force of law) by
any Governmental Authority (including any IRS private letter ruling or field service advisory).

     “Change of Control” means, with respect to an Equityholder (or any parent entity of an
Equityholder), any merger, consolidation or amalgamation (or any transaction substantially similar
to any of the foregoing) with, or, in the case of clause (a) below, a sale of all or substantially
all of the assets of such Equityholder (or such parent entity) to, any other Person if such
Equityholder (or such parent entity) (a) is not the continuing or surviving entity but the
continuing or surviving entity shall have assumed all of the obligations of such Equityholder under
the Deal Documents to which such Equityholder is a party immediately prior to such transaction
(including such Equityholder’s obligations under the Pledge and Security Agreement in accordance
with Sections 6.1 and 17.1 of the Pledge and Security Agreement) or (b) is the continuing or
surviving entity.

     “Class A Notes” means the Original Class A Notes and any Refinancing Notes issued to
refinance the foregoing.

     “Clearstream” means Clearstream Banking, a French société anonyme.

     “Closing Date” means March 9, 2011.

     “Closing Day Accounts” has the meaning set forth in Section 3.1(b) of the Indenture.

     “Code” means the Internal Revenue Code of 1986, as amended, and the regulations
thereunder.

     “Collateral” has the meaning set forth in the Granting Clause of the Indenture.

     “Collection Account” has the meaning set forth in Section 3.1(a) of the Indenture.

     “Collections” means, without duplication, (a) the Royalties, (b) the Currency Hedge
Payments, (c) any net investment income on amounts on deposit in the Accounts (other than the
Capital Account) and (d) any other amounts received by the Issuer (other than the proceeds of any
Notes and capital contributions from the Equityholders), including any amounts payable to the
Issuer pursuant to Section 4.5(c) of the Purchase and Sale Agreement or Article VI of the Purchase
and Sale Agreement in respect of the Royalties.

     “Compound” has the meaning set forth in Section 1.1(m) of the Counterparty License
Agreement.

A-6

 

     “Confidential Information” means, as it relates to the Seller and its Affiliates, the
Licensed Products and the Intellectual Property Rights, all information (whether written or oral,
or in electronic or other form) furnished after the Closing Date involving or relating in any way,
directly or indirectly, to the Purchased Assets or the Royalties, including (a) any license,
sublicense, assignment, product development, royalty, sale, supply or other agreements (including
the Counterparty License Agreement, the UAB Agreement and the Currency Hedge Agreement) involving
or relating in any way, directly or indirectly, to the Purchased Assets, the Royalties or the
intellectual property, compounds or products giving rise to the Purchased Assets, and including all
terms and conditions thereof and the identities of the parties thereto, (b) any reports, data,
materials or other documents of any kind concerning or relating in any way, directly or indirectly,
to the Seller, the Purchased Assets, the Royalties or the intellectual property, compounds or
products giving rise to the Purchased Assets, and including reports, data, materials or other
documents of any kind delivered pursuant to or under any of the agreements referred to in clause
(a) above, and (c) any inventions, devices, improvements, formulations, discoveries, compositions,
ingredients, patents, patent applications, know-how, processes, trial results, research,
developments or any other intellectual property, trade secrets or information involving or relating
in any way, directly or indirectly, to the Purchased Assets or the compounds or products giving
rise to the Purchased Assets.

     “Confidentiality Agreement” means, with respect to Noteholders or Beneficial Holders
at the Closing Date with respect to the Original Class A Notes (or, with respect to Noteholders or
Beneficial Holders with respect to any Subordinated Notes or any Refinancing Notes), a
confidentiality agreement for the benefit of the Issuer provided to the Registrar on or prior to
the Closing Date (or on or prior to the date of issuance of any such Subordinated Notes or
Refinancing Notes), and otherwise means a confidentiality agreement for the benefit of the Issuer
substantially in the form of Exhibit B to the Indenture or substantially in the form of any
confidentiality agreement referenced in Schedule 1 to an applicable Purchase Agreement.

     “Confidential Parties” has the meaning set forth in Section 12.13 of the Indenture.

     “Corporate Trust Office” means the office of the Trustee in the city at which at any
particular time the Trustee’s duties under the Transaction Documents shall be principally
administered and, on the Closing Date, shall be U.S. Bank National Association, One Federal Street,
3rd Floor, Boston, Massachusetts 02110, Attention: Corporate Trust Services (JPR Royalty Sub LLC /
BioCryst).

     “Counterparty” means Shionogi & Co., Ltd., a Japanese corporation.

     “Counterparty Instruction” has the meaning set forth in Section 1.1 of the Purchase
and Sale Agreement.

     “Counterparty License Agreement” means that certain License, Development and
Commercialization Agreement dated as of February 28, 2007, as amended by that certain First
Amendment to License, Development and Commercialization Agreement dated as of September 30, 2008,
that certain letter agreement dated May 10, 2010 and that certain Consent Agreement dated as of
November 2, 2010, between the Seller and Counterparty.

A-7

 

     “Currency Hedge Agreement” means that certain Confirmation (including the related
letter agreement) dated as of March 9, 2011 and the ISDA Master Agreement (including the schedule
and credit support annex included therein) (solely insofar as such ISDA Master Agreement relates to
such Confirmation and not to any other “Transaction” as such term is defined in such ISDA Master
Agreement) dated as of March 7, 2011, in each case between the Seller and the Currency Hedge
Provider (and any replacement foreign currency hedge arrangement entered into by the Seller as
permitted by Section 4.11(e)(i) of the Purchase and Sale Agreement) and, with respect to such
letter agreement, among the Seller, the Currency Hedge Provider, the Issuer and the Trustee.

     “Currency Hedge Payments” means the amounts required to be paid to the Seller by the
Currency Hedge Provider pursuant to the Currency Hedge Agreement (subject to all of the Currency
Hedge Provider’s rights under the Currency Hedge Agreement (including, to the extent provided in
the Currency Hedge Agreement, liquidation, netting and setoff rights, specified conditions
precedent to the Currency Hedge Provider’s required payments and performance and rights to realize
on margin or other collateral)) except any amount required to be paid to the Seller by the Currency
Hedge Provider pursuant to the Currency Hedge Agreement as a result of a termination of the
Currency Hedge Agreement by the Seller permitted by Section 4.11(e) of the Purchase and Sale
Agreement.

     “Currency Hedge Provider” means Morgan Stanley Capital Services Inc.

     “Deal Documents” means the Transaction Documents, the Purchase and Sale Agreement, the
Bill of Sale and the Counterparty Instruction.

     “Default” means a condition, event or act that, with the giving of notice or the lapse
of time or both, would constitute an Event of Default.

     “Definitive Notes” has the meaning set forth in Section 2.1(b) of the Indenture.

     “Direction” has the meaning set forth in Section 1.3(c) of the Indenture.

     “Distribution Report” has the meaning set forth in Section 2.13(a) of the Indenture.

     “Dollar” or the sign “$” means United States dollars.

     “DTC” means The Depository Trust Company, its nominees and their respective
successors.

     “DTC List” has the meaning set forth in Section 2.5(d) of the Indenture.

     “Eligibility Requirements” has the meaning set forth in Section 2.3(c) of the
Indenture.

     “Eligible Account” means a trust account maintained on the books and records of an
Eligible Institution in the name of the Issuer.

     “Eligible Institution” means any bank organized under the laws of the U.S. or any
state thereof or the District of Columbia (or any domestic branch of a foreign bank), which at all
times

A-8

 

has either (a) a long-term unsecured debt rating of at least A2 by Moody’s and A by S&P or (b)
a certificate of deposit rating of at least P-1 by Moody’s and A-1 by S&P.

     “Eligible Investments” means, in each case, book-entry securities, negotiable
instruments or securities represented by instruments in bearer or registered form that evidence:

     (a) direct obligations of, and obligations fully Guaranteed as to timely payment of
principal and interest by, the U.S. or any agency or instrumentality thereof the
obligations of which are backed by the full faith and credit of the U.S. (having original
maturities of no more than 365 days or such lesser time as is required for the distribution
of funds); or

     (b) demand deposits, time deposits or certificates of deposit of the Operating Bank or
of depositary institutions or trust companies organized under the laws of the U.S. or any
state thereof or the District of Columbia (or any domestic branch of a foreign bank) with
capital and surplus of not less than $500,000,000 (i) having original maturities of no more
than 365 days or such lesser time as is required for the distribution of funds;
provided, that, at the time of investment or contractual commitment to invest
therein, the short-term debt rating of such depositary institution or trust company shall
be at least P-1 by Moody’s and A-1 by S&P or (ii) having maturities of more than 365 days
and, at the time of the investment or contractual commitment to invest therein, a rating of
at least A2 by Moody’s and A by S&P;

provided, however, that no investment shall be made in any obligations of any
depositary institution or trust company that is identified in a written notice to the Trustee from
the Issuer or the Servicer as having a contractual right to set off and apply any deposits held, or
other indebtedness owing, by the Issuer to or for the credit or the account of such depositary
institution or trust company, unless such contractual right by its terms expressly excludes all
Eligible Investments.

     “Equityholder” means a holder of Capital Securities of the Issuer. The only
Equityholder as of the Closing Date is the Seller.

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

     “ERISA Affiliate” means any trade or business that is treated as a single employer
with the Issuer or the Seller under Section 414 of the Code.

     “Escrow Account” has the meaning set forth in Section 3.1(a) of the Indenture.

     “Escrow List” has the meaning set forth in Section 2.5(d) of the Indenture.

     “Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear system.

     “Event of Default” has the meaning set forth in Section 4.1 of the Indenture.

     “Excess Holder Event” has the meaning set forth in Section 2.17 of the Indenture.

A-9

 

     “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

     “Expenses” means any and all reasonable out-of-pocket fees, costs and expenses of the
Issuer, including the reasonable fees, expenses and indemnities of the Service Providers
(provided, that, with respect to the Servicer, such expenses shall only be the Servicing
Fee and reasonable out-of-pocket expenses), reasonable and customary directors and officers
liability insurance for any directors and officers of the Issuer, the fees and out-of-pocket
expenses of counsel to the Independent Member, the Trustee and the Issuer incurred after the
Closing Date in connection with the transactions contemplated by the Deal Documents, any Audit
Expenses, the fees and expenses of any nationally recognized independent public accounting firm
engaged as auditors of the Issuer (including any fees incurred by any accounting firm in connection
with auditing the records of Counterparty), any expenses incurred in connection with the exercise
of audit rights at the direction of the Issuer or at the direction of the Noteholders pursuant to
Section 6.14(a) of the Indenture and any payments by the Issuer to third parties in respect of
obligations for which indemnification payments have been received from the Seller;
provided, however, that, except as expressly provided in the Indenture, Expenses
shall not include any Transaction Expenses, any amounts related to any indemnification or
contribution obligations of the Issuer set forth in the Issuer Organizational Documents, any
Servicing Fee to the extent greater than $20,000 per year, any amounts payable on the Notes
pursuant to Section 3.7(a)(i), 3.7(a)(iii), 3.7(a)(iv) and 3.7(a)(v) of the Indenture, any fees,
costs or expenses relating to the Subordinated Notes or any other amounts ranking pari passu with
or junior to interest payable on the Class A Notes in the priority of payments set forth under
Section 3.7 of the Indenture.

     “Field” has the meaning set forth in Section 1.1(u) of the Counterparty License
Agreement.

     “Final Legal Maturity Date” means, with respect to (a) the Original Class A Notes,
December 1, 2020, and (b) with respect to any Subordinated Notes or Refinancing Notes, the date
specified in the indenture supplemental to the Indenture providing for their issuance;
provided, that the Final Legal Maturity Date with respect to any Subordinated Notes where
the proceeds thereof are not used to redeem or refinance all of the Outstanding Class A Notes shall
be no earlier than December 1, 2020.

     “Fixed Rate Notes” means (a) the Original Class A Notes and (b) any Subordinated Notes
or Refinancing Notes issued with a fixed rate of interest.

     “Floating Rate Notes” means any Subordinated Notes or Refinancing Notes issued with a
floating or variable rate of interest.

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

     “Global Notes” means any 144A Global Note and Regulation S Global Note.

     “Governmental Authority” means the government of the United States, any other nation
or any political subdivision thereof, whether state or local, and any agency, authority (including
supranational authority), commission, instrumentality, regulatory body, court, central bank or

A-10

 

other Person exercising executive, legislative, judicial, taxing, regulatory or administrative
powers or functions of or pertaining to government.

     “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness or other obligation of any other Person and, without
limiting the generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of such Person (a) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Indebtedness or other obligation of such other Person or (b) entered into for
purposes of assuring in any other manner the obligee of such Indebtedness or other obligation of
the payment thereof or to protect such obligee against loss in respect thereof (in whole or in
part); provided, that the term “Guarantee” shall not include endorsements for
collection or deposit in the ordinary course of business. The term “Guarantee” when used
as a verb has a corresponding meaning.

     “Holder Lists” has the meaning set forth in Section 2.17 of the Indenture.

     “Incur” has the meaning set forth in Section 5.2(d) of the Indenture.

     “Indebtedness” means, with respect to any Person at any date of determination (without
duplication), (a) all indebtedness of such Person for borrowed money or other similar monetary
obligations, (b) all obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments, (c) all obligations of such Person as an account party in respect of letters
of credit or other similar instruments (including reimbursement obligations with respect thereto),
(d) all the obligations of such Person to pay the deferred and unpaid purchase price of property or
services (other than obligations to trade creditors incurred in the ordinary course of business in
connection with the obtaining of goods, materials or services), which purchase price is due more
than 90 days after the date of purchasing such property or service or taking delivery and title
thereto or the completion of such services, and payment deferrals arranged primarily as a method of
raising funds to acquire such property or service, (e) all monetary obligations of such Person and
its Subsidiaries under any leasing or similar arrangement that have been (or, in accordance with
GAAP, should be) classified as capitalized leases, (f) all Guarantees of such Person in respect of
any of the foregoing, (g) all monetary obligations of such Person with respect to any interest rate
hedge, cap, floor, swap, option or other interest rate hedge agreement, (h) all Indebtedness (as
defined in clauses (a) through (g) of this definition) of other Persons secured by a lien on any
asset of such Person, whether or not such Indebtedness is assumed by such Person, and (i) all
Indebtedness (as defined in clauses (a) through (g) of this definition) of other Persons Guaranteed
by such Person. Notwithstanding the foregoing, “Indebtedness” shall not include any surety
or performance bonds required to be obtained in connection with the performance or enforcement by
the Issuer of any Deal Document or the Counterparty License Agreement or the Issuer’s defense of
any action, suit or proceeding.

     “Indemnitee” has the meaning set forth in Section 19.1 of the Pledge and Security
Agreement.

     “Indemnitees” has the meaning set forth in Section 19.1 of the Pledge and Security
Agreement.

A-11

 

     “Indenture” means that certain indenture, dated as of the Closing
Date, by and between the Issuer and the Trustee.

     “Indenture Estate” has the meaning set forth in the Granting Clause of the Indenture.

     “Independent Member” means a Member (i) who is not at the time of such Person’s
admission to the Issuer, (ii) who is not and (iii) who has not been at any time during the
preceding five years: (a) a director, manager, officer or employee of the Issuer or an Equityholder
(other than in the capacity of Independent Member) or any Affiliate of the Issuer or an
Equityholder (other than in the capacity of Independent Member); (b) a Person related to any
officer, director, manager or employee of the Issuer or an Equityholder (other than in the capacity
of Independent Member) or any Affiliate of the Issuer or an Equityholder (other than in the
capacity of Independent Member); (c) a holder (directly or indirectly) of any Voting Securities of
the Issuer or an Equityholder or any Affiliate of the Issuer or an Equityholder (other than in the
capacity of Independent Member); (d) a Person related to a holder (directly or indirectly) of any
Voting Securities of the Issuer or an Equityholder or any Affiliate of the Issuer or an
Equityholder (other than in the capacity of Independent Member); (e) a creditor, supplier,
contractor, purchaser, customer or any other Person who derives any of his, her or its revenues
from interactions with the Issuer or an Equityholder or any Affiliate of the Issuer or an
Equityholder or a family member of such creditor, supplier, contractor, purchaser, customer or
other Person; (f) a trustee in bankruptcy or other insolvency proceeding for, or a reorganization
of, an Equityholder or any Affiliate of an Equityholder; or (g) a Person who controls (directly or
indirectly) the Issuer or an Equityholder or any Affiliate of the Issuer or an Equityholder or any
creditor, supplier, employee, officer, director, manager or contractor of the Issuer or an
Equityholder or any Affiliate of the Issuer or an Equityholder.

     “Initial Interest Reserve Amount” means $3,000,000.

     “Institutional Accredited Investor” means a Person that is an accredited investor as
that term is defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act.

     “Intellectual Property Rights” has the meaning set forth in Section 1.1 of the
Purchase and Sale Agreement.

     “Interest Accrual Period” means the period beginning on (and including) the Closing
Date (or, with respect to any Subordinated Notes or any Refinancing Notes, the date of issuance of
such Subordinated Notes or Refinancing Notes) and ending on (and including) September 1, 2011 and
each successive period beginning on (and including) September 2 of each year and ending on (and
including) September 1 of the succeeding year; provided, however, that the final
Interest Accrual Period shall end on but exclude the final Payment Date (or, if earlier, with
respect to any class of Notes repaid in full, the date such class of Notes is repaid in full).

     “Interest Amount” means, with respect to the Outstanding Principal Balance of any
class of Notes, on any Payment Date, the amount of accrued and unpaid interest at the Stated Rate
of Interest with respect to the Outstanding Principal Balance of such class of Notes on such
Payment Date (including any Additional Interest, if any), determined in accordance with the

A-12

 

terms thereof (including interest accruing after the commencement of a proceeding in
bankruptcy, insolvency or similar law, whether or not permitted as a claim under such law).

     “Interest Reserve Account” has the meaning set forth in Section 3.1(a) of the
Indenture.

     “Interest Shortfall” has the meaning set forth in Section 3.5(a)(x) of the Indenture.

     “Involuntary Bankruptcy” means, without the consent or acquiescence of the Issuer, the
entering of an order for relief or approving a petition for relief or reorganization or any other
petition seeking any reorganization, arrangement, composition, readjustment, liquidation,
dissolution or other similar relief under any present or future bankruptcy, insolvency or similar
statute, law or regulation, or the filing of any such petition against the Issuer, or, without the
consent or acquiescence of the Issuer, the entering of an order appointing a trustee, custodian,
receiver or liquidator of the Issuer or of all or any substantial part of the property of the
Issuer, in each case where such petition or order shall remain unstayed or shall not have been
stayed or dismissed within 90 days from entry thereof.

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

     “Issuer” means JPR Royalty Sub LLC, a Delaware limited liability company, as issuer of
the Notes pursuant to the Indenture.

     “Issuer Organizational Documents” means the certificate of formation of the Issuer
dated January 14, 2011 and effective January 20, 2011 and the limited liability company agreement
of the Issuer dated as of the Closing Date.

     “Issuer Pledged Collateral” has the meaning set forth in Section 2.1 of the Pledge and
Security Agreement.

     “Issuer Pledged Equity” has the meaning set forth in Section 2.1(a) of the Pledge and
Security Agreement.

     “Judgment Currency” has the meaning set forth in Section 12.9(e) of the Indenture.

     “Legend” has the meaning set forth in Section 2.2 of the Indenture.

     “Licensed Product” has the meaning set forth in Section 1.1(jj) of the Counterparty
License Agreement.

     “Lien” means any security interest, mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or otherwise), charge against or interest in
property or other priority or preferential arrangement of any kind or nature whatsoever, including
any conditional sale, any sale with recourse or any agreement to give any security interest.

     “Loss” means any loss, set-off, off-set, rescission, counterclaim, reduction,
deduction, defense, cost, charge, expense, interest, fee, payment, demand, liability, claim,
action, proceeding, penalty, fine, damages, judgment, order or other sanction.

A-13

 

     “Manager” means the manager of the Issuer.

     “Material Adverse Change” means any event, circumstance or change resulting in a
material adverse effect on (a) the legality, validity or enforceability of any of the Deal
Documents, the Counterparty License Agreement or the back-up security interest granted pursuant to
Section 2.1(d) of the Purchase and Sale Agreement, (b) the right or ability of the Seller (or any
permitted assignee), the Issuer or the Servicer, as the case may be, to perform its obligations
under any of the Deal Documents or the Counterparty License Agreement, in each case to which it is
a party, or to consummate the transactions contemplated under any of the Transaction Documents or
the Counterparty License Agreement, (c) the rights or remedies of the Issuer under any of the Deal
Documents or the Counterparty License Agreement, (d) the timing, amount or duration of the
Royalties or any Currency Hedge Payments, (e) the Purchased Assets, (f) the Intellectual Property
Rights or (g) the ability of the Trustee to realize the practical benefit of the Pledge and
Security Agreement (including any failure to have a perfected Lien on any of the Issuer Pledged
Collateral as required by the Indenture).

     “Member” means a member of the Issuer.

     “Memorandum” means the private placement memorandum of the Issuer for the Original
Class A Notes dated March 1, 2011.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto or, if such
corporation or its successor shall for any reason no longer perform the functions of a rating
agency, “Moody’s” shall be deemed to refer to any other nationally recognized statistical
rating organization (within the meaning ascribed thereto by the Exchange Act) designated by the
Issuer.

     “Non-U.S. Person” means a person who is not a U.S. person within the meaning of
Regulation S.

     “Noteholder” means any Person in whose name a Note is registered from time to time in
the Register for such Note.

     “Note Purchase Price” has the meaning set forth in Section 3.1 of the Purchase
Agreements.

     “Note Purchasers” has the meaning set forth in Section 1.1 of the Purchase Agreements.

     “Notes” means the Original Class A Notes, any Subordinated Notes and any Refinancing
Notes.

     “Notices” means notices, demands, certificates, requests, directions, instructions and
communications.

     “Officer’s Certificate” means a certificate signed by, with respect to the Issuer, a
Responsible Officer of the Issuer and, with respect to any other Person, any officer, director,
manager, partner, trustee or equivalent representative of such Person.

A-14

 

     “Operating Bank” means U.S. Bank National Association or any other Eligible
Institution at which the Accounts are held; provided, that (a) upon the resignation or
removal and the replacement of the Trustee pursuant to the terms of the Indenture, the successor
trustee appointed thereunder shall be the Operating Bank, and (b) if at any time the Operating Bank
ceases to be an Eligible Institution, a successor shall be appointed by the Issuer (or the
Servicer) on behalf of the Trustee and all Accounts shall thereafter be transferred to and be
maintained at such successor in the name of the Trustee and such successor shall thereafter be the
“Operating Bank”.

     “Opinion of Counsel” means a written opinion signed by legal counsel, who may be an
employee of or counsel to the Issuer or the Seller, that meets the requirements of Section 1.2 of
the Indenture.

     “Option” means a foreign currency exchange option set forth in the Currency Hedge
Agreement.

     “Options” means, collectively, the foreign currency exchange options set forth in the
Currency Hedge Agreement.

     “Optional Redemption” has the meaning set forth in Section 3.9(b) of the Indenture.

     “Original Class A Notes” means the JPR PhaRMASM Senior Secured 14% Notes
due 2020 of the Issuer in the initial Outstanding Principal Balance of $30,000,000, substantially
in the form of Exhibit A to the Indenture.

     “Other Agreements” has the meaning set forth in Section 3.1 of the Purchase
Agreements.

     “Other Note Purchasers” has the meaning set forth in Section 3.1 of the Purchase
Agreements.

     “Other Prices” has the meaning set forth in Section 3.1 of the Purchase Agreements.

     “Outstanding” means (a) with respect to the Notes of any class at any time, all Notes
of such class theretofore authenticated and delivered by the Trustee except (i) any such Notes
cancelled by, or delivered for cancellation to, the Trustee, (ii) any such Notes, or portions
thereof, for the payment of principal of and accrued and unpaid interest on which moneys have been
distributed to Noteholders by the Trustee and any such Notes, or portions thereof, for the payment
or redemption of which moneys in the necessary amount have been deposited in the Redemption Account
for such Notes; provided, that, if such Notes are to be redeemed prior to the maturity
thereof in accordance with the requirements of Section 3.9 of the Indenture, written notice of such
Redemption shall have been given and not rescinded as provided in Section 3.10 of the Indenture, or
provision satisfactory to the Trustee shall have been made for giving such written notice, and, if
Redemption does not occur, then this clause (ii) ceases to apply as of the Payment Date that was
supposed to be the date of Redemption, and (iii) any such Notes in exchange or substitution for
which other Notes, as the case may be, have been authenticated and delivered, or which have been
paid pursuant to the terms of the Indenture (unless proof satisfactory to the Trustee is presented
that any of such Notes is held by a Person in whose hands such Note is a legal, valid and binding
obligation of the Issuer), and (b) when used with respect

A-15

 

to any other evidence of Indebtedness, at any time, any principal amount thereof then unpaid
and outstanding (whether or not due or payable).

     “Outstanding Principal Balance” means, with respect to any Note or other evidence of
Indebtedness Outstanding, the total principal amount of such Note or other evidence of Indebtedness
unpaid and Outstanding at any time, as determined in the case of the Notes in the Calculation
Report to be provided to the Issuer (or the Servicer) and the Trustee by the Calculation Agent
pursuant to Section 3.5 of the Indenture.

     “Paying Agent” has the meaning set forth in Section 2.3(a) of the Indenture.

     “Payment Date” means each September 1, commencing on September 1, 2011, and the Final
Legal Maturity Date; provided, that, if any such date would otherwise fall on a day that is
not a Business Day, the Payment Date falling on such date shall be the first following day that is
a Business Day; provided, further, however, that, if any such date on or
after September 1, 2016 would otherwise fall on a day that is not a Business Day, the Payment Date
falling on such date shall be the first preceding day that is a Business Day (in which case the
full interest payment for the related Interest Accrual Period shall nonetheless be payable on such
first preceding Business Day).

     “Permanent Regulation S Global Note” has the meaning set forth in Section 2.1(b) of
the Indenture.

     “Permitted Holder” means (a) the Seller, (b) the Issuer and (c) any Person (including
the Noteholders) that has executed a Confidentiality Agreement and delivered such Confidentiality
Agreement to the Registrar in accordance with the terms of the Indenture.

     “Permitted Lien” means (a) any lien for Taxes, assessments and governmental charges or
levies not yet due and payable or that are being diligently contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP have been set aside on the
books of the relevant Person, (b) any Lien created in favor of the Trustee and (c) any other Lien
expressly permitted under the Deal Documents (including any security interest created or required
to be created under the Indenture, including in connection with the issuance of any Subordinated
Notes and any Refinancing Notes).

     “Person” means any natural person, firm, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust, unincorporated organization,
Governmental Authority or any other legal entity, including public bodies, whether acting in an
individual, fiduciary or other capacity.

     “Placement Agent” means Morgan Stanley & Co. Incorporated.

     “Plan” means, with respect to any Person, any employee benefit plan (within the
meaning of Section 3(3) of ERISA), whether or not subject to ERISA, in each case that is (or within
the preceding six years has been) maintained, or to which contributions are (or within the
preceding six years have been) required to be made by such Person or an ERISA Affiliate or with
respect to which such Person may have any liability.

A-16

 

     “Plan Assets” has the meaning given to such term by Section 3(42) of ERISA and
regulations issued by the U.S. Department of Labor, but also includes assets of an employee benefit
plan (within the meaning of Section 3(3) of ERISA) subject to Similar Laws.

     “Pledge and Security Agreement” means that certain pledge and security agreement dated
as of the Closing Date made by the Equityholders to the Trustee.

     “Premium” means, with respect to any Note on any Redemption Date, any Redemption
Premium, if applicable, or, with respect to any Redemption Date, the portion of the Redemption
Price of the Notes being redeemed in excess of the Outstanding Principal Balance of the Notes being
redeemed.

     “Price” has the meaning set forth in Section 3.1 of the Purchase Agreements.

     “Purchase Agreement” means that certain note purchase agreement dated the Closing Date
among the Issuer, the Seller and the Purchaser party thereto.

     “Purchase Agreements” means, collectively, each Purchase Agreement and the Other
Agreements.

     “Purchase and Sale Agreement” means that certain purchase and sale agreement dated as
of the Closing Date between the Seller and the Issuer.

     “Purchased Assets” has the meaning set forth in Section 1.1 of the Purchase and Sale
Agreement.

     “Purchase Price” has the meaning set forth in Section 2.3 of the Purchase and Sale
Agreement.

     “Purchaser” has the meaning set forth in Section 1.1 of the Purchase Agreements.

     “Purchaser Indemnified Party” has the meaning set forth in Section 6.1 of the Purchase
and Sale Agreement.

     “QIB” means a qualified institutional buyer within the meaning of Rule 144A.

     “RAPIACTA” means (i) the brand name for peramivir in Japan and (ii) the equivalent
product sold by Counterparty or its Affiliates in Taiwan under such brand name or another brand
name.

     “Receiver” means any Person or Persons appointed as (and any additional Person or
Persons appointed or substituted as) administrative receiver, receiver, manager or receiver and
manager.

     “Record Date” means, with respect to each Payment Date, the close of business on the
fifteenth day preceding such Payment Date and, with respect to the date on which any Direction is
to be given by the Noteholders, the close of business on the last Business Day prior to the
solicitation of such Direction.

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     “Redemption” means any Optional Redemption and any other redemption of Notes described
in Section 3.9(c) of the Indenture.

     “Redemption Account” has the meaning set forth in Section 3.1(a) of the Indenture.

     “Redemption Date” means the date, which may be any Business Day on or after March 9,
2012, on which Notes are redeemed pursuant to a Redemption.

     “Redemption Premium” means, in the case of any Subordinated Notes or Refinancing
Notes, the amount, if any, specified in the Resolution and set forth in any indenture supplemental
to the Indenture to be paid in the event of a Redemption of such Subordinated Notes or Refinancing
Notes separately from the Redemption Price.

     “Redemption Price” means (a) in respect of an Optional Redemption of the Original
Class A Notes, an amount equal to the product of (x) the applicable Class A Redemption Percentage
as set forth below and (y) the Outstanding Principal Balance of the Original Class A Notes that are
being redeemed on such Business Day, plus the accrued and unpaid interest to the Redemption Date on
the Original Class A Notes that are being redeemed:

	 	 	 	 	 
	Business Day	 	Class A Redemption Percentage	 
	From and including March 9, 2012
to and including March 8, 2013
	 	 	107.00	%
	From and including March 9, 2013
to and including March 8, 2014
	 	 	103.50	%
	From and including March 9, 2014 and thereafter
	 	 	100.00	%

and (b) in respect of any Subordinated Notes or Refinancing Notes, the redemption price, if any,
plus the accrued and unpaid interest to the Redemption Date on the Subordinated Notes or
Refinancing Notes, as the case may be, established by or pursuant to a Resolution and set forth in
any indenture supplemental to the Indenture providing for the issuance of such Notes or designated
as such in the form of such Notes (any such Redemption Price in respect of any Subordinated Notes
or Refinancing Notes may include a Redemption Premium, and such Resolution and indenture
supplemental to the Indenture may specify a separate Redemption Premium).

     “Reference Date” means, with respect to each Interest Accrual Period, the day that is
two Business Days prior to the Payment Date on which such Interest Accrual Period commences;
provided, however, that the Reference Date with respect to the initial Interest
Accrual Period means the date that is two Business Days prior to the Closing Date (or, with respect
to any Subordinated Notes or any Refinancing Notes, the date that is two Business Days prior to the
date of issuance of such Subordinated Notes or Refinancing Notes).

     “Refinancing” has the meaning set forth in Section 2.15(a) of the Indenture.

     “Refinancing Expenses” means all Transaction Expenses incurred in connection with an
offering and issuance of Refinancing Notes.

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     “Refinancing Notes” means any class (or sub-class) of Notes issued by the Issuer under
the Indenture at any time and from time to time after the Closing Date pursuant to Section 2.15 of
the Indenture, the proceeds of which are used to repay all of the Outstanding Principal Balance of
a class of Notes.

     “Register” has the meaning set forth in Section 2.3(a) of the Indenture.

     “Registrar” has the meaning set forth in Section 2.3(a) of the Indenture.

     “Regulation S” means Regulation S under the Securities Act.

     “Regulation S Global Note Exchange Date” means the date of exchange of any Temporary
Regulation S Global Note for any Permanent Regulation S Global Note, which date shall be 40 days
after the Closing Date (or, with respect to any Subordinated Notes or any Refinancing Notes, 40
days after the date of issuance of such Subordinated Notes or Refinancing Notes).

     “Regulation S Global Notes” has the meaning set forth in Section 2.1(b) of the
Indenture.

     “Relevant Calculation Date” has the meaning set forth in Section 3.5(a) of the
Indenture.

     “Relevant Information” means any information provided to the Trustee, the Calculation
Agent or the Paying Agent in writing by any Service Provider retained from time to time by the
Issuer pursuant to the Deal Documents.

     “Resolution” means a copy of a resolution certified by a Responsible Officer of the
Issuer as having been duly adopted by the Issuer and being in full force and effect on the date of
such certification.

     “Responsible Officer” means (a) with respect to the Trustee, any officer within the
Corporate Trust Office, including any principal, vice president, managing director, director,
manager, associate or other officer of the Trustee customarily performing functions similar to
those performed by any of the above-designated officers and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such officer’s knowledge and
familiarity with the particular subject, (b) with respect to the Seller, any officer of the Seller,
and (c) with respect to the Issuer, any officer of the Manager or person designated by the
governing body of the Manager as a Responsible Officer for purposes of the Deal Documents.

     “Royalties” has the meaning set forth in Section 1.1 of the Purchase and Sale
Agreement.

     “Rule 144A” means Rule 144A under the Securities Act.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., and any successor thereto or, if such division or its successor shall for any
reason no longer perform the functions of a rating agency, “S&P” shall be deemed to refer
to any other nationally recognized statistical rating organization (within the meaning ascribed
thereto by the Exchange Act) designated by the Issuer.

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     “SEC” means the U.S. Securities and Exchange Commission.

     “Secured Obligations” has the meaning set forth in the Granting Clause of the
Indenture.

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

     “Security Interest” means the security interest granted or expressed to be granted in
the Collateral pursuant to the Granting Clause of the Indenture and in the Issuer Pledged
Collateral pursuant to the Pledge and Security Agreement.

     “Seller” means BioCryst Pharmaceuticals, Inc., a Delaware corporation.

     “Seller Payments” has the meaning set forth in Section 3.4 of the Indenture.

     “Seller Shortfall” means the amount, if any, payable by the Seller to Counterparty
under the Counterparty License Agreement or to the Currency Hedge Provider under the Currency Hedge
Agreement that is due and payable but that has not been paid by the Seller.

     “Seller Shortfall Payment” means any payment made by the Trustee in respect of any
Seller Shortfall.

     “Senior Claim” has the meaning set forth in Section 10.1(a) of the Indenture.

     “Senior Class of Notes” means (a) so long as any Class A Notes are Outstanding, the
Class A Notes, or (b) if no Class A Notes are Outstanding, the class or classes (or sub-class or
sub-classes) of Subordinated Notes defined as such pursuant to the Resolution(s) and/or
indenture(s) supplemental to the Indenture providing for the issuance of such Subordinated Notes.

     “Senior Trustee” means the Trustee, acting in its capacity as the trustee of the
Senior Class of Notes.

     “Service Providers” means the Servicer, the Trustee, the Independent Member, the
Calculation Agent, the Paying Agent, the Registrar, the Operating Bank, any outside law firm or
accounting firm providing services to the Issuer and any Person that becomes a Servicer, the
Trustee, the Independent Member, the Calculation Agent, the Paying Agent, the Registrar or the
Operating Bank in accordance with the terms of the applicable agreement and, subject to the written
approval of the Noteholders of a majority of the Outstanding Principal Balance of the Senior Class
of Notes, any other Person designated as a Service Provider by the Issuer.

     “Servicer” means the Seller, acting in its capacity as servicer pursuant to the
Servicing Agreement (or any other Person appointed to succeed the Seller as such or any successor
thereto pursuant to the Servicing Agreement).

     “Servicer Termination Event” means any one of the following events:

     (a) the Seller shall resign as Servicer in accordance with the terms of the Servicing
Agreement;

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     (b) the Servicer shall fail to pay any amount when due under the Servicing Agreement
and such failure shall continue unremedied for five Business Days;

     (c) the Servicer shall fail to deliver the Distribution Report and the other required
accompanying materials with respect to any Payment Date in accordance with the provisions
of the Servicing Agreement within five Business Days of the date such Distribution Report
and the other required accompanying materials are required to be delivered under the
Servicing Agreement; provided, however, that the Servicer shall have
received in a timely manner any Calculation Report (unless the failure to receive such
Calculation Report was due to the breach by the Servicer of Section 3.1(c)(vi) of the
Servicing Agreement);

     (d) the Servicer shall fail to carry out its obligations under Section 3.1(c)(ii) of
the Servicing Agreement that shall have or reasonably be expected to have a material
adverse effect on the Noteholders;

     (e) the Servicer shall fail to carry out its obligations under Section 3.1(c)(v),
Section 3.1(c)(viii) or Section 3.1(c)(ix) of the Servicing Agreement;

     (f) the Servicer shall fail to observe or perform in any material respect any of the
covenants or agreements on the part of the Servicer contained in the Servicing Agreement
(other than for which provision is made in clauses (a) through (e) above) and such failure
shall continue unremedied for a period of 30 days after the date on which written notice of
such failure requiring the same to be remedied shall have been given to the Servicer by the
Trustee, and such failure continues to materially adversely affect the Noteholders for such
period;

     (g) a court having jurisdiction in the premises enters a decree or order for (i)
relief in respect of the Servicer under any Applicable Law relating to bankruptcy,
insolvency, receivership, winding-up, liquidation, reorganization, examination, relief of
debtors or other similar law in effect now or after the Closing Date, (ii) appointment of a
receiver, liquidator, examiner, assignee, custodian, trustee, sequestrator or similar
official of the Servicer or (iii) the winding-up or liquidation of the affairs of the
Servicer and, in each case, such decree or order shall remain unstayed or such writ or
other process shall not have been stayed or dismissed within 90 days from entry thereof;

     (h) the Servicer (i) commences a voluntary case under any Applicable Law relating to
bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization, examination,
relief of debtors or other similar law in effect now or after the Closing Date, or consents
to the entry of an order for relief in any involuntary case under any such law, (ii)
consents to the appointment of or taking possession by a receiver, liquidator, examiner,
assignee, custodian, trustee, sequestrator or similar official of the Servicer or for all
or substantially all of the property and assets of the Servicer or (iii) effects any
general assignment for the benefit of creditors;

     (i) the Servicer’s business activities are terminated by any Governmental Authority;

A-21

 

     (j) a material adverse change occurs in the financial condition or operations of the
Servicer that is a Material Adverse Change;

     (k) an Event of Default shall have occurred, other than an Event of Default solely
caused by the Trustee, the Calculation Agent, the Paying Agent or the Registrar failing to
perform any of its respective obligations under the Indenture or any other Transaction
Document; or

     (l) so long as the Seller is the Servicer, the Seller sells, transfers, conveys,
assigns, contributes or grants a majority of the Capital Securities of the Issuer to
another Person or Persons.

     “Servicing Agreement” means that certain servicing agreement dated as of the Closing
Date between the Issuer and the Seller.

     “Servicing Fee” has the meaning set forth in Section 2.1 of the Servicing Agreement.

     “Similar Laws” means, with respect to a Plan that is not subject to Section 406 of
ERISA or Section 4975 of the Code, all Applicable Laws that may affect the Plan’s investment in the
Notes and that is substantially similar to Section 406 of ERISA or Section 4975 of the Code.

     “Stated Rate of Interest” means, with respect to any class of the Notes for any
Interest Accrual Period, the interest rate set forth in such class of Notes for such Interest
Accrual Period.

     “Subordinated Claim” has the meaning set forth in Section 10.1(a) of the Indenture.

     “Subordinated Note Issuance” has the meaning set forth in Section 2.16(a) of the
Indenture.

     “Subordinated Notes” means any class (or sub-class) of Notes issued in such form as
shall be authorized by a Resolution and set forth in any indenture supplemental to the Indenture in
respect thereof pursuant to Section 2.16 of the Indenture and any Refinancing Notes issued to
refinance the foregoing.

     “Subsidiary” means, with respect to any Person, any other Person of which more than
50% of the outstanding Voting Securities of such other Person (irrespective of whether at the time
Capital Securities of any other class or classes of such other Person shall or might have voting
power upon the occurrence of any contingency) is at the time directly or indirectly owned or
controlled by such Person, by such Person and one or more other Subsidiaries of such Person or by
one or more other Subsidiaries of such Person.

     “Taxes” means (a) any and all taxes, fees, levies, duties, tariffs, imposts and other
charges of any kind (together with any and all interest, penalties, loss, damage, liability,
expense, additions to tax and additional amounts or costs incurred or imposed with respect thereto)
now or hereafter imposed, levied, collected, withheld or otherwise assessed by the U.S. or by any
state, local, foreign or other Governmental Authority (or any subdivision or agency thereof) or
other taxing authority, including taxes or other charges on or with respect to income, franchise,
windfall or other profits, gross receipts, property, sales, use, capital stock, payroll,
employment,

A-22

 

social security, workers’ compensation, unemployment compensation or net worth and similar
charges and taxes or other charges in the nature of excise, deduction, withholding, ad valorem,
stamp, transfer, value added, taxes on goods and services, escheat, gains taxes, license,
registration and documentation fees, customs duties, tariffs and similar charges, (b) liability for
such a tax that is imposed by reason of United States Treasury Regulation Section 1.1502-6 or
similar provision of law and (c) liability for the payment of any amounts as a result of any
express or implied obligation to indemnify any other Person with respect to the payment of any
amounts described in clause (a) or clause (b).

     “Temporary Regulation S Global Note” has the meaning set forth in Section 2.1(b) of
the Indenture.

     “Territory” means Japan and Taiwan.

     “Transaction Documents” means the Indenture, the Notes, the Servicing Agreement, the
Pledge and Security Agreement, the Purchase Agreements and the Currency Hedge Agreement, and each
other agreement pursuant to which the Trustee (or its agent) is granted a Lien to secure the
obligations under the Indenture or the Notes.

     “Transaction Expenses” means the out-of-pocket expenses payable by the Issuer in
connection with (a) the issuance of the Original Class A Notes, including placement fees, any
initial fees payable to Service Providers and the documented fees and expenses of Pillsbury
Winthrop Shaw Pittman LLP, counsel to the Noteholders in connection with the offering and issuance
of the Original Class A Notes, as set forth in the Purchase Agreements, and (b) the offering and
issuance of any Subordinated Notes or any Refinancing Notes, to the extent specified in the
Resolution authorizing such offering and issuance.

     “Trustee” means U.S. Bank National Association, a national banking association, as
initial trustee of the Notes under the Indenture, and any successor appointed in accordance with
the terms of the Indenture; provided, that, for purposes of Section 3.1(b) of the
Indenture, “Trustee” means U.S. Bank National Association, a national banking association,
as the Operating Bank and/or initial trustee of the Notes under the Indenture, as the context may
require.

     “Trustee Closing Account” means the account of the Issuer maintained with the Trustee
at U.S. Bank National Association, ABA No. 091000022, Account No. 173103321092, Ref. JPR Royalty,
Attention: Josh Tripi.

     “Trust Indenture Act” means the U.S. Trust Indenture Act of 1939, as amended.

     “UAB” means The UAB Research Foundation, a non-profit corporation.

     “UAB Agreement” means that certain Joint Research and License Agreement dated as of
November 23, 1994 between the Seller and UAB, as amended by that certain letter agreement dated
October 9, 1996 and by that certain Agreement dated as of December 16, 2010 between the Seller and
UAB.

A-23

 

     “UCC” means the Uniform Commercial Code as in effect from time to time in the State of
New York; provided, that, if, with respect to any financing statement or by reason of any
provisions of law, the perfection or the effect of perfection or non-perfection of the Liens
granted to the Trustee pursuant to the applicable Transaction Document is governed by the Uniform
Commercial Code as in effect in a jurisdiction of the United States other than the State of New
York, then “UCC” means the Uniform Commercial Code as in effect from time to time in such
other jurisdiction for purposes of the provisions of each Transaction Document and any financing
statement relating to such perfection or effect of perfection or non-perfection.

     “United States Treasury” means the U.S. Department of the Treasury.

     “U.S.” or “United States” means the United States of America, its 50 states,
each territory thereof and the District of Columbia.

     “U.S. Person” means a U.S. person within the meaning of Regulation S.

     “Voluntary Bankruptcy” means (a) an admission in writing by the Issuer of its
inability to pay its debts generally or a general assignment by the Issuer for the benefit of
creditors, (b) the filing of any petition or answer by the Issuer seeking to adjudicate itself as
bankrupt or insolvent, or seeking for itself any liquidation, winding-up, reorganization,
arrangement, adjustment, protection, relief or composition of the Issuer or its debts under any law
relating to bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization,
examination, relief of debtors or other similar law now or hereafter in effect, or seeking,
consenting to or acquiescing in the entry of an order for relief in any case under any such law, or
the appointment of or taking possession by a receiver, trustee, custodian, liquidator, examiner,
assignee, sequestrator or other similar official for the Issuer or for any substantial part of its
property, or (c) limited liability company action taken by the Issuer to authorize any of the
actions set forth in clause (a) or clause (b) above.

     “Voting Securities” means, with respect to any Person, Capital Securities of any class
or kind ordinarily having the power to vote for the election of directors, managers or other voting
members of the governing body of such Person.

     “Yen” or the sign “¥” means Japanese yen.

A-24

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