Document:

Filed by Bowne Pure Compliance

 

Exhibit 4.2

FORM OF WARRANT

NEITHER THIS WARRANT NOR THE COMMON STOCK OF BIOCRYST PHARMACEUTICALS, INC. FOR WHICH THIS WARRANT
IS EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
UNDER THE SECURITIES LAWS OF ANY STATE AND ACCORDINGLY, MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
OR HYPOTHECATED, OR OTHERWISE TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH
RESPECT THERETO UNDER THE ACT UNLESS SOLD PURSUANT TO RULE 144 OF THE ACT OR UNLESS SUCH SALE,
PLEDGE, HYPOTHECATION OR TRANSFER IS OTHERWISE EXEMPT FROM REGISTRATION AND ANY APPLICABLE STATE
SECURITIES LAWS. THE ISSUER OF THIS WARRANT MAY REQUEST A WRITTEN OPINION OF COUNSEL, REASONABLY
SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH
SUCH SALE OR OTHER TRANSFER.

BIOCRYST PHARMACEUTICALS, INC.

WARRANT TO PURCHASE          SHARES OF COMMON STOCK

THIS WARRANT MAY NOT BE EXERCISED

AFTER THE EXPIRATION DATE, IN NO EVENT LATER THAN 5:00 P.M.,

NEW YORK CITY TIME, ON AUGUST [__], 2012

THIS CERTIFIES THAT, for value received, or registered assigns
(the “Registered Holder”) is entitled to, upon the terms and conditions hereinafter set forth,
subscribe for and purchase at the Exercise Price (defined below) from BioCryst Pharmaceuticals,
Inc., a Delaware corporation (the “Company”), fully paid and nonassessable shares
(the “Warrant Shares”) of Common Stock, $0.01 par value (the “Common Stock”), of the Company, at
the initial exercise price of $10.25 per Warrant Share (the “Exercise Price”) at any time during
the period beginning after the date hereof and ending on the Expiration Date (as hereinafter
defined) (the “Exercise Period”), by surrendering this Warrant, with the Form of Election to
Purchase duly executed at the principal office of the Company and by paying in full the Exercise
Price, plus transfer taxes, if any. The term “Warrant” as used herein shall include this Warrant,
and any warrant delivered in substitution or exchange for this Warrant as provided herein. Payment
of the Exercise Price shall be made in United States currency, by federal wire transfer of
immediately available funds, or by certified check or money order payable to the order of the
Company.

This Warrant has been issued pursuant to a private placement of Common Stock and Warrants.

1. Purchase Agreement and Registration Rights. This Warrant is issued under and in
accordance with the Stock and Warrant Purchase Agreement dated as of August 6, 2007 (the “Purchase
Agreement”) between the Company and the Registered Holder and is
subject to the terms and provisions contained in the Purchase Agreement. Section 7 of the
Purchase Agreement governs the registration rights of the Warrant Shares.

 

 

 

2. Definitions. Unless otherwise defined herein, the capitalized terms used herein
shall have the meanings assigned to such terms in the Purchase Agreement.

3. Issuance of Warrant Shares. As soon as practicable after the date of exercise of
this Warrant the Company shall issue, or cause the transfer agent for the Common Stock, if any, to
issue a certificate or certificates for the number of full Warrant Shares to which the Registered
Holder is entitled, registered in accordance with the instructions set forth in the Form of
Election to Purchase; provided, however, that such certificate or certificates shall be delivered
within no later than three (3) business days after the Company’s receipt of the Purchaser’s
surrender of this Warrant, including, without limitation, a properly completed Form of Election To
Purchase. All Warrant Shares shall be validly authorized and issued, fully paid and nonassessable,
and free from all taxes, liens and charges created by the Company in respect of the issue thereof.
Each person in whose name any such certificate for Warrant Shares is issued shall for all purposes
be deemed to have become the holder of record of the Warrant Shares represented thereby on the date
of exercise of this Warrant resulting in the issuance of such Warrant Shares, irrespective of the
date of issuance or delivery of such certificate for such Warrant Shares.

4. Partial Exercise. If this Warrant is exercised in part only, the Company shall,
upon surrender of this Warrant, execute and deliver, within 10 days of the date of exercise, a new
Warrant evidencing the rights of the Registered Holder, or such other person as shall be designated
in the Form of Election to Purchase, to purchase the balance of the Warrant Shares purchasable
hereunder. In no event shall this Warrant be exercised for a fractional Warrant Share, and the
Company shall distribute no Warrant exercisable for a fractional Warrant Share. Fractional Warrant
shares shall be treated as provided for herein.

5. Available Authorized Shares. The Company shall at all times reserve and keep
available for issuance upon the exercise of this Warrant a number of its authorized but unissued
shares of Common Stock that will be sufficient to permit the exercise in full of this Warrant.

6. Adjustments. Subject to the provisions hereof, the Exercise Price and the number
of Warrant Shares in effect from time to time shall be subject to adjustment, as follows:

(a) In case the Company shall at any time after the date hereof (i) declare a dividend on the
outstanding Common Stock payable in shares of its capital stock, (ii) subdivide the outstanding
Common Stock, (iii) combine the outstanding Common Stock into a smaller number of shares, or (iv)
issue any shares of its capital stock by reorganization or reclassification of the Common Stock
(including any such reorganization or reclassification in connection with a consolidation or merger
in which the Company is the continuing corporation), then, in each case, the Exercise Price, and
the number of Warrant Shares issuable upon exercise of this Warrant in effect at the time of the
record date for such dividend or of the effective date of such subdivision, combination, or
reorganization or reclassification, shall be proportionately adjusted so that the Registered Holder
after such time shall be entitled to receive the aggregate number and kind of
 shares which, if such Warrants had been exercised immediately prior to such time, the
Registered Holder would have owned upon such exercise and been entitled to receive by virtue of
such dividend, subdivision, combination or reclassification. Such adjustment shall be made
successively whenever any event listed above shall occur.

 

B-2

 

(b) (i) In case the Company shall issue or fix a record date for the issuance to all holders
of Common Stock of rights, options, or warrants to subscribe for or purchase Common Stock (or
securities convertible into or exchangeable for Common Stock) at a price per share (or having a
conversion or exchange price per share, if a security convertible into or exchangeable for Common
Stock) less than the Current Market Price per share of Common Stock on such record date, then, in
each case, the Exercise Price shall be adjusted by multiplying the Exercise Price in effect
immediately prior to such record date by a fraction, the numerator of which shall be the number of
shares of Common Stock outstanding on such record date plus the number of shares of Common Stock
which the aggregate offering price of the total number of shares of Common Stock so to be offered
(or the aggregate initial conversion or exchange price of the convertible or exchangeable
securities so to be offered) would purchase at such Current Market Price and the denominator of
which shall be the number of shares of Common Stock outstanding on such record date plus the number
of additional shares of Common Stock so issued or to be offered for subscription or purchase (or
into which the convertible or exchangeable securities so to be offered are initially convertible or
exchangeable). Such adjustment shall become effective at the close of business on such record
date; provided, however, that, to the extent the shares of Common Stock (or securities convertible
into or exchangeable for shares of Common Stock) are not delivered, the Exercise Price shall be
readjusted after the expiration of such rights, options, or warrants (but only with respect to the
exercise of this Warrant after such expiration), to the Exercise Price which would then be in
effect had the adjustments made upon the issuance of such rights, options, or warrants been made
upon the basis of delivery of only the number of shares of Common Stock (or securities convertible
into or exchangeable for shares of Common Stock) actually issued and the Exercise Price shall also
be adjusted for any subsequent adjustment or other change to the number of shares of Common Stock
issuable upon exercise, exchange or conversion of such rights, options, warrants or other
securities.

(ii) Notwithstanding anything to the contrary contained herein, no adjustment shall be made
to the Exercise Price until any condition to the vesting (a “Vesting Condition”) of such rights,
options or warrants (“Issued Rights”) shall be fulfilled or satisfied (and then only with respect
to the portion thereof which shall have vested). If this Warrant is exercised in whole or in part
after any such Issued Rights have been issued, but prior to all Vesting Conditions to such Issued
Rights being met, each Warrant Share shall include the same right as one share of Common Stock to
such Issued Rights upon all Vesting Conditions being met.

(iii) In case any subscription price may be paid in a consideration part or all of which
shall be in a form other than cash, the value of such consideration shall be as determined in good
faith by the Board of Directors of the Company, whose determination shall be conclusive absent
manifest error. Shares of Common Stock owned by or held for the account of the Company or any
majority-owned subsidiary shall not be deemed outstanding for the purpose of any such computation.
If any event occurs of the type contemplated by the provisions of this paragraph but not expressly
provided for by such provisions (including, without
limitation, the granting of stock appreciation rights, phantom stock rights or other rights
with equity features), then the Board of Directors shall make an appropriate adjustment in the
Exercise Price so as to equitably protect the rights of holders of this Warrant.

 

B-3

 

(c) In case the Company shall distribute to all holders of Common Stock (including any such
distribution made to the stockholders of the Company in connection with a consolidation or merger
in which the Company is the continuing corporation) evidences of its indebtedness, cash (other than
any cash dividend which, together with any cash dividends paid within the twelve (12) months prior
to the record date for such distribution, does not exceed 5% of the Current Market Price at the
record date for such distribution), assets or rights to acquire such assets (other than
distributions and dividends payable in shares of Common Stock), or rights, options, or warrants to
subscribe for or purchase Common Stock, or securities convertible into or exchangeable for shares
of Common Stock (excluding those with respect to the issuance of which an adjustment of the
Exercise Price is provided pursuant to the foregoing paragraph), then, in each case, the Exercise
Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record
date for the determination of stockholders entitled to receive such distribution by a fraction, the
numerator of which shall be the Current Market Price per share of Common Stock on such record date,
less the fair market value (as determined in good faith by the Board of Directors of the Company,
whose determination shall be conclusive absent manifest error) of the portion of the evidences of
indebtedness or assets so to be distributed, or of such rights, options, or warrants or convertible
or exchangeable securities, or the amount of such cash, applicable to one share, and the
denominator of which shall be such Current Market Price per share of Common Stock. Such adjustment
shall become effective on the date of such distribution.

(d) No adjustment in the Exercise Price shall be required if such adjustment is less than
$0.01; provided, however, that any adjustments which by reason of this Warrant are not required to
be made shall be carried forward and taken into account in any subsequent adjustment. All
calculations under this Warrant shall be made to the nearest cent or to the nearest one thousandth
of a share, as the case may be.

(e) In any case in which this Warrant shall require that an adjustment in the Exercise Price
be made effective as of a record date for a specified event, the Company may elect to defer, until
the occurrence of such event, issuing to the Registered Holder of, if the Registered Holder has
exercised this Warrant after such record date, the shares of Common Stock, if any, issuable upon
such exercise over and above the shares of Common Stock, if any, issuable upon such exercise on the
basis of the Exercise Price in effect prior to such adjustment; provided, however, that the Company
shall deliver to the exercising Registered Holder a due bill or other appropriate instrument
evidencing the Registered Holder’s right to receive such additional shares upon the occurrence of
the event requiring such adjustment.

(f) Upon each adjustment of the Exercise Price as a result of the calculations made above this
Warrant shall thereafter evidence the right to purchase, at the adjusted Exercise Price, that
number of shares (calculated to the nearest thousandth) obtained by dividing (A) the product
obtained by multiplying the number of shares purchasable upon exercise of this Warrant prior to
adjustment of the number of shares by the Exercise Price in effect prior to adjustment of the
Exercise Price by (B) the Exercise Price in effect after such adjustment of the Exercise Price.

 

B-4

 

(g) (i) In case of any capital reorganization, other than in the cases referred to above, or
the consolidation or merger of the Company with or into another corporation (other than a merger or
consolidation in which the Company is the continuing corporation and which does not result in any
reclassification of the outstanding shares of Common Stock or the conversion of such outstanding
shares of Common Stock into shares of other stock or other securities or property), or the sale of
the property of the Company as an entirety or substantially as an entirety (collectively such
actions being hereinafter referred to as “Reorganizations”), the Registered Holder shall have the
right thereafter to receive upon exercise of this Warrant solely the kind and amount of shares of
stock and other securities, property, cash, or any combination thereof receivable upon such
Reorganization by a holder of the number of shares of Common Stock for which this Warrant might
have been exercised immediately prior to such Reorganization and the term “Warrant Shares” shall
thereafter include, without limitation, such stock and other securities. Thereafter, appropriate
provision shall be as nearly equivalent as practicable to the adjustments in this Warrant. The
Company or the successor corporation, as the case may be, shall execute and deliver to the
Registered Holder a supplemental agreement so providing, and the terms of any agreement pursuant to
which any such consolidation or merger is effected shall include terms requiring the Company or the
successor corporation to comply with the provisions of this subsection 6(g)(i). The above
provisions of this section 6(g)(i) shall similarly apply to successive Reorganizations.

(ii) Notwithstanding the foregoing, (1) in the event of a Fundamental Transaction (as defined
below), in which the consideration consists of substantially all cash, the Company (or the
successor entity) shall purchase this Warrant from the Holder by paying to the Holder, on the
effective date of the Fundamental Transaction, cash in an amount equal to the Black Scholes Value
(as defined below) of the remaining unexercised portion of this Warrant on the effective date of
such Fundamental Transaction or (2) in the event of a Fundamental Transaction in which the
consideration consists of substantially all securities of a private company, the Company (or the
successor entity), in its sole discretion, may (x) purchase this Warrant from the Holder by paying
to the Holder, on the effective date of the Fundamental Transaction, cash in an amount equal to the
Black Scholes Value (as defined below) of the remaining unexercised portion of this Warrant on the
date of such Reorganization or (y) comply with the provisions of Section 6(g)(i). For purposes
hereof, a “Fundamental Transaction” means a Reorganization, other than a merger or consolidation in
which the Company is the continuing corporation and which does not result in any reclassification
of the outstanding shares of Common Stock or the conversion of such outstanding shares of Common
Stock into shares of other stock or other securities or property; and “Black Scholes Value” means
the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the
“OV” function on Bloomberg Financial Markets (“Bloomberg”) determined as of the day immediately
following the public announcement of the applicable Fundamental Transaction and reflecting (i) a
risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining
term of this Warrant as of the effective date of the Fundamental Transaction and (ii) an expected
volatility equal to the greater of 50% and the 100 day volatility obtained from the HVT function on
Bloomberg.

(h) In case of any reclassification or change of the shares of Common Stock issuable upon
exercise of this Warrant other than in the cases referred to above, including, without limitation,
in any reorganization (other than a change in par value or from no par value to a specified par
value, or as a result of a subdivision or combination, but including any change

 

B-5

 

in the shares into two or more classes or series of shares), the Registered Holder of this Warrant
shall have the right thereafter to receive upon exercise of this Warrant solely the kind and amount
of shares of stock and other securities, property, cash, or any combination thereof receivable upon
such reclassification or change by a Registered Holder of the number of shares of Common Stock for
which this Warrant might have been exercised immediately prior to such reclassification or change
and the term “Warrant Shares” shall thereafter include, without limitation, such stock and other
securities. Thereafter, appropriate provision shall be as nearly equivalent as practicable to the
adjustments in this Warrant. The above provisions of this paragraph shall similarly apply to
successive reclassifications and changes of shares of Common Stock.

(i) Whenever the Exercise Price is adjusted as provided in this Warrant, the Company will
promptly obtain a certificate of the chief financial officer of the Company setting forth the
Exercise Price as so adjusted and a brief statement of the facts accounting for such adjustment.
Whenever any adjustment is made pursuant to this Warrant, the Company shall cause notice of such
adjustment to be mailed to the Registered Holder within fifteen (15) days thereafter, such notice
to include in reasonable detail (i) the events precipitating the adjustment, (ii) the computation
of any adjustments, and (iii) the Exercise Price, the number of shares or the securities or other
property purchasable upon exercise of this Warrant after giving effect to such adjustment.

(j) In no event shall the Exercise Price be adjusted below the par value per share of the
Common Stock.

(k) Irrespective of any adjustments pursuant to this Warrant, any Warrant theretofore or
thereafter issued need not be amended or replaced, but certificates thereafter issued shall bear an
appropriate legend or other notice of any adjustments.

(l) The Company shall not be required upon the exercise of any Warrant to issue fractional
shares of Common Stock which may result from adjustments in accordance with this Warrant to the
Exercise Price or number of shares of Common Stock purchasable under each Warrant. If more than
one Warrant is exercised at one time by the same Registered Holder, the number of full shares of
Common Stock which shall be deliverable shall be computed based on the number of shares deliverable
in exchange for the aggregate number of Warrants exercised. With respect to any fractional Warrant
Share called for upon the exercise this Warrant, the Company shall pay a cash adjustment in respect
of such fractional Warrant Share in an amount equal to the same fraction of the Current Market
Price of a share of Common Stock calculated in accordance with this Warrant.

(m) Directors of the Company who are affiliates of a Registered Holder shall not participate
in any decisions of the Board of Directors regarding appropriate adjustments under this Warrant,
unless required by applicable law.

7. Expiration Date. This Warrant may not be exercised after the earliest to occur
(such earliest date, the “Expiration Date”) of (i) 5:00 p.m., New York City time, on August
 _____ 
,
2012; or (ii) the purchase of the Warrant from the Holder
pursuant to a Fundamental Transaction as defined in subsection 6(g)(ii) above.

 

B-6

 

8. No Rights as Stockholder. This Warrant shall not entitle the Registered Holder to
any of the rights of a stockholder of the Company, including, without limitation, the right to
vote, to receive dividends and other distributions, to receive any notice of, or to attend,
meetings of stockholders or any other proceedings of the Company.

9. Mutilation, Loss, Theft or Destruction of Warrant. If this Warrant shall be
mutilated, lost, stolen or destroyed, the Company in its discretion may execute and deliver, in
exchange and substitution for and upon cancellation of this Warrant, or in lieu of or in
substitution for a lost, stolen or destroyed Warrant and upon receipt of an affidavit of the
Registered Holder or other evidence reasonably satisfactory to the Company of the loss, theft or
destruction of such Warrant and an indemnification of loss by the Registered Holder in favor of the
Company, a new Warrant for the number of Warrant Shares represented by the Warrant so mutilated,
lost, stolen or destroyed but only upon receipt of evidence of such loss, theft or destruction of
such Warrant Certificate, and of the ownership thereof, and indemnity, if requested, all reasonably
satisfactory to the Company. Applicants for such substitute Warrant shall also comply with such
other reasonable regulations and pay such other reasonable charges incidental thereto as the
Company may prescribe. Any such new Warrant shall constitute an original contractual obligation of
the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at
any time enforceable by anyone.

10. Representations of Registered Holders.

(a) The Registered Holder agrees not to make any disposition of all or any part of the Warrant
or Common Stock in any event unless and until:

(i) The Company shall have received a letter secured by the Registered Holder from the
Securities and Exchange Commission stating that no action will be recommended to the Commission
with respect to the proposed disposition;

(ii) There is then in effect a registration statement under the Act covering such proposed
disposition and such disposition is made in accordance with said registration statement; or

(iii) The Registered Holder shall have notified the Company of the proposed disposition and
shall have furnished the Company with a statement briefly describing the circumstances surrounding
the proposed disposition, and if reasonably requested by the Company, the Registered Holder shall
have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, for
the Registered Holder to the effect that such disposition will not require registration of such
Warrant or Common Stock under the Act or any applicable state securities laws; provided that such
statement will not be required if the disposition is permitted under Rule 144 of the Securities
Act.

(b) The Registered Holder understands and agrees that all certificates evidencing the Common
Stock to be issued to the Registered Holder may bear a legend in substantially the following form:

 

B-7

 

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”),
OR UNDER THE SECURITIES LAWS OF ANY STATE AND ACCORDINGLY, MAY NOT BE
SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED, OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH
RESPECT THERETO UNDER THE ACT UNLESS SOLD PURSUANT TO RULE 144 OF THE
ACT OR UNLESS SUCH SALE, PLEDGE, HYPOTHECATION OR TRANSFER IS OTHERWISE
EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS. THE ISSUER OF THESE SECURITIES MAY REQUEST A
WRITTEN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY, TO
THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH SUCH
SALE OR OTHER TRANSFER.

11. Split Up, Combination, Exchange or Transfer of Warrant.

(a) Prior to the latest time at which this Warrant may be exercised, subject to any applicable
laws, rules or regulations restricting transferability, this Warrant, subject to the provisions
hereof, may be split up, combined with or exchanged for other Warrants representing a like
aggregate number of Warrant Shares or may be transferred in whole or in part. Any holder desiring
to split up, combine, exchange or transfer this Warrant shall make such request in writing
delivered to the Company at its principal office and shall surrender this Warrant to be split up,
combined or exchanged at said office with the Form of Assignment. Upon any such surrender for
split up, combination, exchange or transfer, the Company shall execute and deliver to the person
entitled thereto a new Warrant or Warrants, as the case may be, as so requested in the Form of
Assignment. The Company may require the holder to pay a sum sufficient to cover any tax or
governmental charge that may be imposed in connection with any split up, combination, exchange or
transfer of this Warrant prior to the issuance of any new Warrant.

(b) If this Warrant is surrendered upon its exercise or for split up, combination, exchange or
transfer, or purchased or otherwise acquired by the Company, this Warrant shall be canceled and
shall not be reissued by the Company; and, except as otherwise provided herein in case of the
exercise of this Warrant for less than all of the Warrant Shares or in case of a split up,
combination, exchange or transfer, no Warrant shall be issued hereunder in lieu of such canceled
Warrant. Any Warrant so canceled shall be destroyed by the Company.

(c) By accepting this Warrant, the Registered Holder consents and agrees with the Company
that:

(i) transfer of this Warrant shall be registered on the books of the Company only if
surrendered at the principal office of the Company, duly endorsed or accompanied by a proper
instrument of transfer; and

(ii) prior to due presentment for registration of transfer, the Company may deem and treat
the person in whose name this Warrant is registered as the absolute owner thereof
and of the rights evidenced thereby (notwithstanding any notations of ownership or writing on
the Warrant made by anyone other than the Company) for all purposes whatsoever, and the Company
shall not be affected by any notice to the contrary.

 

B-8

 

12. Headings. The headings of the various sections of this Warrant are for
convenience of reference only and shall not be deemed to be part of this Warrant.

13. Governing Law. The laws of the State of New York shall govern this Warrant.

 

B-9

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed.

	 	 	 	 	 
	 	 	BIOCRYST PHARMACEUTICALS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

B-10

 

FORM OF

ELECTION TO PURCHASE

The undersigned hereby irrevocably elects to purchase
 _____ 
shares of BioCryst Pharmaceuticals,
Inc. (the “Company”) common stock (“Common Stock”) pursuant to the terms of the attached warrant
(the “Warrant”), and tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.

The undersigned represents and warrants to the Company as of the date hereof the same statements
with respect to the shares being acquired upon exercise of this warrant as are set forth in Section
5 of the Stock and Warrant Purchase Agreement dated August
 _____ 
, 2007, pursuant to which the
above-referenced Warrant was sold, regarding the securities purchased thereby.

The undersigned requests that certificates for such shares be issued and delivered as follows:

	 	 	 	 	 
	ISSUE	 	 
	TO:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(NAME)	 	 

 

 

(ADDRESS, INCLUDING ZIP CODE)

 

 

(SOCIAL SECURITY OR OTHER TAX IDENTIFYING NUMBER)

	 	 	 	 	 
	DELIVER	 	 
	TO:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(NAME)	 	 

 

 

(ADDRESS, INCLUDING ZIP CODE)

 

 

 

If the attached Warrant is exercised in part only, the undersigned requests that a new Warrant
evidencing the right to purchase the balance of the shares purchasable under the Warrant be issued
and delivered as set forth below.

	 	 	 	 	 
	ISSUE	 	 
	TO:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(NAME)	 	 

 

 

(ADDRESS, INCLUDING ZIP CODE)

 

 

(SOCIAL SECURITY OR OTHER TAX IDENTIFYING NUMBER)

	 	 	 	 	 
	DELIVER	 	 
	TO:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	(NAME)	 	 

 

 

(ADDRESS, INCLUDING ZIP CODE)

Dated:                                        

 

	 	 	 
	 

	 	 
	(Insert Social Security or

	 	(Signature of registered
	other identifying number

	 	holder)
	of holder)
	 	 
	 
	 	 
	 

	 	 
	 

	 	(Signature of registered
	 

	 	holder, if co-owned)

NOTE: Signature must conform in all respects to name of holder as specified on

the face of the Warrant.

 

 

 

FORM OF

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto the Assignee named
below all of the rights of the undersigned represented by the within Warrant, with respect to the
number of Warrant Shares set forth below:

 

					
	Name of Assignee
	 	Address
	 	No. of Warrant Shares
	 

and does hereby irrevocably constitute and appoint                      Attorney to make such transfer
on the books of BioCryst Pharmaceuticals, Inc. maintained for that purpose, with full power of
substitution in the premises.

Dated:                    , 200
 _____ 
..

 

	 	 	 
	 

	 	 
	(Insert Social Security or other identifying

	 	Signature
	number of holder)Filed by Bowne Pure Compliance

 

EXHIBIT 10.2

COMPENSATION AGREEMENT

This COMPENSATION AGREEMENT (the “Agreement”) has been made and entered into as of this 25th
day of June, 2007 by and between CORUS BANK, N.A. (the “Company”) and MICHAEL STEIN (individually
“Executive” or “Mr. Stein” and, collectively with the Company, the “Parties”).

WITNESSETH:

WHEREAS, the Company has heretofore established the Corus Bank Commission Program for
Commercial Loan Officers (the “Commission Program”); and

WHEREAS, the undersigned executive officer, Michael Stein, has been a participant in the
Commission Program;

WHEREAS, Section 21 of the Commission Program provides that “Management reserves the right to
modify or cancel this Commission Program at any time for any officer or all officers in its sole
discretion;”

WHEREAS, the Parties previously entered into a Commission Agreement and Release dated December
12, 2006 (the “Prior Agreement”), which provides that Executive will not participate in the
Commission Program with respect to loans originated after October 31, 2005;

WHEREAS, the Parties desire to set forth their respective rights and obligations with respect
to the modification of Executive’s compensation package and the modification of Executive’s
participation in the Commission Program;

NOW, THEREFORE, in consideration of the covenants and conditions set forth herein, the
Parties, intending to be legally bound, agree as follows:

	 	1.	 	Salary Compensation. The Parties hereby agree that during the 2007
calendar year, Executive’s salary compensation shall be $400,000, retroactive to the
beginning of the year. For 2008 and all subsequent calendar years, Executive’s salary
compensation shall be determined in accordance with Company’s normal salary review
procedures and nothing herein shall obligate the Company to pay Executive a salary of
any amount, or any salary whatsoever, in such future years. Executive’s salary
compensation shall be paid in accordance with Company’s normal payroll practices and
shall be subject to any applicable withholdings required by law. As soon as practical,
but no later than the second payroll date after execution of this Agreement, Company
shall make a one-time payment of additional salary to bring the year-to-date salary
compensation up to what it would have been if Executive’s annual salary had been
$400,000 since the beginning of the year.

 

Page 1 of 5

 

	 	2.	 	Cash Bonus Compensation. The Parties hereby agree that for the
calendar year 2007, Executive’s cash bonus will be $400,000, payable on the second to
last
payroll cycle of the year. Nothing in this Agreement shall obligate the Company to
pay Executive a cash bonus of any amount, or any bonus at all, in 2008 and
subsequent calendar years, and payment of a bonus, if any, in such years shall be
subject to the Company’s normal bonus compensation procedures. Any bonus
compensation due to Executive shall be paid in accordance with Company’s normal
payroll practices and shall be subject to any applicable withholdings required by
law.

	 	3.	 	Restricted Stock Compensation. For the calendar year 2007, Executive
shall receive a grant of 30,000 shares of restricted stock under the Corus Bankshares,
Inc. Equity Award and Incentive Plan. Nothing in this Agreement shall obligate the
Company to make restricted stock or stock option grants to Executive in 2008 or
subsequent calendar years in any amount, or at all. However, even though Company is not
required to provide any restricted stock or stock option grants in 2008 or thereafter,
nothing in this agreement will be construed to suggest that Executive is ineligible to
receive such compensation pursuant to the Company’s programs, at the Company’s sole
discretion.

Any compensation relating to the grant of restricted stock or stock options to
Executive shall be handled in accordance with Company’s normal payroll practices and
shall be subject to any applicable withholdings required by law.

	 	4.	 	Commission Program Compensation. The Parties hereby agree to the
following with respect to Executive’s participation in the Commission Program. For
purposes of this Agreement, the Commission Program is governed by the Commission
Program Guidelines dated 11/1/2006, unless Executive consents in writing to any
subsequent version of the Commission Program Guidelines, in which case such subsequent
version would govern.

	 	a.	 	Loans originated prior to November 1, 2005, other than the
three loans listed at the end of this section, are referred to as the “Released
Loans.” The Loans listed at the end of this section are referred to as the “CLG
Loans.”

	 	b.	 	Effective January 1, 2007,  Executive shall not
receive any additional commissions under the Commission Program with respect
any Released Loans, but shall continue to share in losses pertaining to such
loans as provided for in the Commission Program. Losses shall be limited to
amounts in holdback and shall not be deducted from any current year’s salary or
bonus.

	 	c.	 	Subject to the terms and conditions of the Commission Program,
Executive shall continue to earn commissions and share in losses with respect
to the CLG Loans. Losses shall be limited to amounts in holdback and shall not
be deducted from any current year’s salary or bonus.

	 	d.	 	The Executive’s Holdback, as of this date, is comprised of the
following: 208,996 shares of Corus stock and 26.9 units of S&P 500 index. The
Executive’s Holdback will be paid out, held back or reduced for the
Executive’s share of any losses on the Released Loans or the CLG Loans in
the manner described in the Commission Program.

 

Page 2 of 5

 

	 	e.	 	Pursuant to the Prior Agreement, Executive ceased participation
in the Commission Program, effective January 1, 2006, with respect to loans
originated after October 31, 2005 and shall neither receive commissions nor
share in any losses incurred with respect to such loans.

“CLG Loans” shall mean those three loans with account numbers 62030-10547,
64320-10715 and 63950-10673 with a total balance of $16,376,833 as of March 31, 2007
(and a total remaining unfunded commitment of $1,302,000).

	 	5.	 	Release of Claims.

	 	a.	 	Executive agrees, in consideration of the compensation and
rights set forth in this Agreement, which compensation he is not entitled to
absent execution of this agreement, to release and discharge the Company from
any and all claims or causes of action arising out of Executive’s cessation of
receipt commissions on loans other than the CLG Loans, as described above, or
arising out of the cancellation of bonuses or benefits of any kind or nature as
a result of such cessation.

	 	b.	 	Executive acknowledges that he may have claims that he may not
have discovered that would be released by the preceding clause 5. Executive
acknowledges that he fully intends to release any and all such unknown or
suspected claims, provided that they fall within the scope of the preceding
clause 5.

	 	6.	 	Effective Date. This Agreement is only valid if signed by Executive as
provided below:

	 	a.	 	Executive acknowledges that Company has provided him with a
reasonable amount of time from the date upon which this Agreement is delivered
to him within which to consider the terms and effect of this Agreement.
Executive voluntarily waives any right he may have, prior to signing this
Agreement, to additional time with which to consider the Agreement.

	 	b.	 	Company hereby advises Executive to consult with an attorney
prior to signing this Agreement.

	 	c.	 	Executive has three (3) days following the date he signs this
Agreement during which to revoke it, by notifying in writing, Robert Glickman
at 3959 N. Lincoln Ave., Chicago, IL 60613 (773) 832-3456.

	 	7.	 	General.

	 	a.	 	This Agreement contains the entire agreement and understanding
of the Parties with respect to the subject matter hereof, and supersedes all
prior agreements and understandings, if any, with respect hereto and cannot be
modified, amended, waived or terminated, in whole or in part, except in
writing signed by the party to be charged. This Agreement shall not alter
the effectiveness of the Prior Agreement, except that this Agreement
supersedes the provisions of clause 1(b) of the Prior Agreement.

 

Page 3 of 5

 

	 	b.	 	The provisions of this Agreement are severable, and if any
clause or provision shall be held invalid or unenforceable in whole or in part
in any jurisdiction, then such invalidity or unenforceability shall affect only
such clause or provision, or part thereof, in such jurisdiction and shall not
in any manner affect such clause or provisions in any other jurisdiction, or
any other clause or provision of this Agreement in any other jurisdiction.

	 	c.	 	This Agreement shall be governed by the laws of the State of
Illinois without giving effect to principles of conflicts of laws.

EXECUTIVE HEREBY ACKNOWLEDGES THAT, BEFORE ENTERING INTO THIS AGREEMENT, HE HAS RECEIVED A
REASONABLE PERIOD OF TIME WITHIN WHICH TO CONSIDER ALL OF THE PROVISIONS CONTAINED IN THIS
AGREEMENT, THAT HE HAS FULLY READ AND UNDERSTANDS ALL OF THE TERMS, CONTENTS, CONDITIONS AND
EFFECTS OF ALL PROVISIONS OF THIS AGREEMENT, THAT NO PROVISION OR REPRESENTATION OF ANY KIND
HAS BEEN MADE, EXCEPT THOSE EXPRESSLY STATED IN THIS AGREEMENT, AND THAT HE ENTERS INTO THIS
AGREEMENT KNOWINGLY AND VOLUNTARILY. EXECUTIVE FURTHER ACKNOWLEDGES THAT HE HAS BEEN
ENCOURAGED TO CONSULT WITH AN ATTORNEY OF HIS OWN CHOOSING CONCERNING ALL OF THE TERMS AND
CONDITIONS OF THIS AGREEMENT.

 

Page 4 of 5

 

IN WITNESS WHEREOF, the parties hereof have executed this Agreement.

	 	 	 	 	 
	 	 	CORUS BANK, N.A.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Glickman
	 

	 	 	 	 
	 

	 	 	 	Robert J. Glickman
	 

	 	 	 	President & CEO
	 
	 	 	 	 
	 

	 	Date:
	 	June 25, 2007
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	/s/ Michael G. Stein
	 	 	 
	 	 	Michael G. Stein
	 
	 	 	 	 
	 

	 	Date:
	 	June 25, 2007
	 

	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	STATE OF Illinois

	 	 	)	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	)	 	 	ss:
	COUNTY OF Cook

	 	 	)	 	 	 	 	 	 	 

On June 25, 2007, before me personally came Robert Glickman and Michael Stein to me
known and known to me to be the individual described in, and who executed, the foregoing Agreement,
and duly acknowledged to me that he executed the same.

	 	 	 
	 

	 	/s/ Eva Hehn
	 

	 	 
	 

	 	Notary Public

 

Page 5 of 5

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