Document:

Exhibit 10.28

 

AAR CORP. Short-Term Incentive Plan

 

1.                                       Purpose.

 

The
purpose of the AAR CORP. Short-Term Incentive Plan (“STIP”) is to provide an
incentive for selected senior executives of AAR CORP. (the “Company”) and its
subsidiaries to achieve the Company’s short-term performance goals by providing
them with an annual cash incentive payment based on the financial and operating
success of the Company.

 

2.                                       Definitions.

 

(a)           “Board” means the Board of Directors of the Company.

 

(b)           “Bonus” means the cash annual incentive paid to a
Participant under this STIP for a fiscal year of the Company.

 

(c)           “Cause” shall have the meaning ascribed to it in the
Amended and Restated AAR CORP. Stock Benefit Plan or successor plan thereto.

 

(d)           “Code” means the Internal Revenue Code of 1986, as
amended.

 

(e)           “Committee” means the Compensation Committee of the Board,
or if the Committee is not comprised of “outside directors” as defined in Section 162(m) of
the Code, then by a subset of the Committee comprised of at least two “outside
directors” (the “Committee”).

 

(f)            “Company” means AAR CORP.

 

(g)           “Disability” means the inability of the Participant to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or which has lasted or can be expected to last for a continuous period of
not less than 12 months.

 

(h)           “Leverage Ratio” means Total Recourse Net Debt divided by
Total Capital, where (i) Total Recourse Net Debt means all recourse debt
obligations (long-term and short-term) on the Company’s balance sheet at face
value less cash and cash equivalents, excluding debt in excess of $10 million
incurred during the fiscal year as a result of a merger, acquisition, or joint
venture, and as adjusted for changes in Generally Accepted Accounting
Principles, and (ii) Total Capital means Total Recourse Net Debt plus the
book value of Shareholders Equity. 
Leverage Ratio for a fiscal year will be the average of the Leverage
Ratio at the end of each fiscal quarter of such fiscal year.

 

(i)            “Net Income” means total consolidated net income less
joint venture results attributable to non-controlling interests, excluding
special charges or unusual or infrequent items incurred during the fiscal year,
and as adjusted for changes in Generally Accepted Accounting Principles.

 

 

(j)            “Participant” means any active executive of the Company
or subsidiary who has been selected by the Committee as eligible to earn a
Bonus under the STIP.

 

(k)           “Retirement” means the Participant’s voluntary termination
of his employment, or his termination of employment by the Company or a
subsidiary without Cause when he has (i) attained age 65 or (ii) attained
age 55 and his age plus the number of his consecutive years of service with the
Company and subsidiaries is at least 75.

 

(l)            “Salary” means a Participant’s base annual salary earned
during a fiscal year of the Company while a Participant.

 

(m)          “STIP” means this AAR CORP. Short-Term Incentive Plan.

 

3.                                       Administration.

 

The
STIP shall be administered by the Committee. 
The Committee has full authority to select the senior executives
eligible to participate in the STIP and determine when the senior executive’s
participation in the STIP will begin and end. 
Subject to the express provisions of the STIP, the Committee shall be
authorized to interpret the STIP and to establish, amend and rescind any rules and
regulations relating to the STIP and to make all other determinations deemed
necessary or advisable for the proper administration of the STIP.  The determinations of the Committee in the
proper administration of the STIP shall be conclusive and binding.

 

4.                                       Eligibility and
Participation.

 

Participation
in the STIP is limited to those senior executives of the Company or a subsidiary
who the Committee designates as Participants. 
When the Committee selects an executive to become a Participant under
the STIP, it shall designate the date as of which the executive’s participation
shall begin.

 

5.                                       Annual Bonus
Awards.

 

(a)           Determination of Participants, Performance Goals and
Target Bonus Amounts. On or before the 90th day of each
fiscal year of the Company, the Committee shall (i) determine the
Participants for such fiscal year, (ii) establish threshold, target and
maximum Net Income and Leverage Ratio goals for such fiscal year, and (iii) approve
the target Bonus payment for each Participant expressed as a percentage of the
Participant’s Salary.

 

(b)           Bonus Payment. 
As soon as reasonably practicable after the end of the applicable fiscal
year, the Committee shall determine the extent to which each of the Net Income
and Leverage Ratio targets were attained for such fiscal year.  The Bonus payable to each Participant will be
equal to the sum of (i) 50% of the Participant’s target Bonus multiplied
by the applicable Net Income Multiplier Percentage and (ii) 50% of the
Participant’s target Bonus multiplied by the Leverage Ratio Multiplier
Percentage:

 

2

 

	
  Net Income (50%)

  	
   

  	
  Leverage Ratio (50%)

  
	
  Achievement

  of Target

  	
   

  	
  Multiplier

  Percentage

  	
   

  	
  Average

  Leverage Ratio

  	
   

  	
  Multiplier

  Percentage

  
	
  Threshold

  	
   

  	
  70%

  	
   

  	
  Threshold

  	
   

  	
  70%

  
	
  Target

  	
   

  	
  100%

  	
   

  	
  Target

  	
   

  	
  100%

  
	
  Maximum

  	
   

  	
  150%

  	
   

  	
  Maximum

  	
   

  	
  150%

  

 

For achievement of Net Income and Leverage Ratio
goals between established ranges, the Multiplier Percentage will be
interpolated on a straight-line basis. 
For performance at less than threshold level, the Multiplier Percentage
for the applicable performance goal will be zero.

 

Notwithstanding the foregoing, no Bonus will be
payable for a fiscal year if Net Income for such fiscal year is not positive.

 

6.                                       STIP
Limitations.

 

Notwithstanding
the foregoing, no Bonus shall be paid under the STIP for a fiscal year to a
Participant whose employment with the Company and all subsidiaries terminates
during such fiscal year unless the termination is due to death, Disability or
Retirement, or as otherwise approved by the Committee.  If the Participant terminates during the
fiscal year due to death, Disability or Retirement, the Participant will be
entitled to a prorata portion of the Bonus he would have earned under the STIP
had he remained employed through the end of the fiscal year.  Such Bonus will be paid at the same time
Bonuses are paid to active Participants.

 

7.                                       Payment of Bonuses.

 

A
Participant’s Bonus for a fiscal year shall be paid in cash to the Participant,
or to the Participant’s beneficiary (ies) in the event of his death, within two
and one-half months after the end of such fiscal year, unless the Participant
has previously elected to have all or a portion of the Bonus deferred in
accordance with the AAR CORP. Supplemental Executive Retirement Plan.  The Company shall deduct all taxes required
by law to be withheld from all Bonus payments.

 

8.                                       No Assignment.

 

Except
in the event of a Participant’s death, the rights and interests of a
Participant under the STIP shall not be assigned, encumbered or transferred.

 

9.                                       Termination of
Participation.

 

The
Committee reserves the right to cancel a Participant’s participation in the
STIP at any time.

 

10.                                 Employment
Rights.

 

Nothing
contained in the STIP shall be construed as conferring a right upon any
employee to continue in the employment of the Company or any subsidiary.

 

3

 

11.                                 Amendment/Termination.

 

The
Board may either amend or terminate the STIP at any time, without the consent
of the Participants and without the approval of the stockholders of the
Company; provided, that such modification or elimination shall not affect the
obligation of the Company to pay any Bonus after it has been earned under the
STIP.

 

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  Exhibit 4.2    
    

THIS
WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED. 

 
 

  WARRANT TO PURCHASE STOCK    
    

Corporation:
ePocrates, Inc., a California corporation.

Number of Shares: Warrant Coverage is 13% (subject to the provisions below).

Class of Stock: Series A Preferred, provided, however, if the Series B Preferred round closes on or before the Bridge Loan Maturity Date, (as defined in that certain Loan and Security
Agreement of even date herewith, the "Loan Agreement") the Class of Stock shall be that of Series B Preferred.

Initial Exercise Price: If the Class of Stock is Series A Preferred the Initial Exercise Price shall be $1.00 per share, provided, however, if
the Class of Stock is Series B Preferred, the Share Price shall be that given at the close of the Series B Preferred round.

Issue Date: June 2, 2000.

Expiration Date: Is the later occurrence of any of the following events: (i) June 2, 2010; or (ii) seven (7) years from closing of Company's initial
public offering.

Warrant Coverage shall be defined as $                        divided by the Initial Exercise Price multiplied by the applicable
Warrant Coverage percentage. 

Defined
terms used but not otherwise defined herein shall have the same meanings as in the Loan Agreement. 

        THIS
WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for other good and valuable consideration,
                                    ("Holder") is entitled to purchase
the number of fully paid
and nonassessable shares of the class of securities (the "Shares") of the corporation (the "Company") at the initial exercise price per Share (the "Warrant Price") all as set forth above and as
adjusted pursuant to Article 2 of this Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant. 

        In
the event Company does not request Bridge Loan Advances in excess of the Cap Amount, as defined in the Loan Agreement, Holder shall not be entitled to 3% of the 13% of the Warrant
Coverage, as described in the Number of Shares above. 

        In
the event the Company does not repay in full all amounts outstanding under that certain Bridge Loan on or before Bridge Loan Maturity Date (described therein), the Company shall grant
Holder additional shares equal to 2% Warrant Coverage, plus an additional 4% Warrant Coverage (pro rated) if the Bridge Loan is not paid off 30 days after the Bridge Loan Maturity Date, plus an
additional 6% Warrant Coverage (pro rated) if the Bridge Loan is not paid off 60 days after the Bridge Loan Maturity Date (collectively, the "Additional Shares"). Notwithstanding the foregoing,
such grant of the Additional Shares shall not be construed in any way as Holder's agreement to (i) waive an Event of Default under the Loan Agreement; (ii) forbear from exercising its
rights and remedies if an Event of Default occurs, exists or continues under the Loan Agreement; or (iii) extend the Bridge Loan Maturity Date. 

        In
addition to above Number of Shares, in the event Company request Equipment Advances, as defined in Loan Agreement, Holder shall be entitled to an additional 3% Warrant Coverage,
provided, however, if any Equipment Advances are used to finance Other Equipment then Holder shall be entitled to an additional 5.5% Warrant Coverage. 

 

ARTICLE 1.  EXERCISE.  

        1.1    Method of Exercise.    Holder may exercise this Warrant by
delivering a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion right set forth
in Section 1.2, Holder shall also deliver to the Company a check for the aggregate Warrant Price for the Shares being purchased. 

        1.2    Conversion Right.    In lieu of exercising this Warrant as
specified in Section 1,1, Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares determined by dividing (a) the aggregate fair market value of
the Shares or other securities otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of such Shares by (b) the fair market value of one Share. The fair market value
of the Shares shall be determined pursuant to Section 1.3. 

        1.3    Fair Market Value.    If the Shares are traded in a public
market, the fair market value of the Shares shall be the closing price of the Shares (or the closing price of the Company's stock into which the Shares are convertible) reported for the business day
immediately before Holder delivers its Notice of Exercise to the Company. If the Shares are not traded in a public market, the Board of Directors of the Company shall determine fair market value in
its reasonable good faith judgment. The foregoing notwithstanding, if Holder advises the Board of Directors in writing that Holder disagrees with such determination, then the Company and Holder shall
promptly agree upon a reputable investment banking firm to undertake such valuation. If the valuation of such investment banking firm is greater than that determined by the Board of Directors, then
all fees and expenses of such investment banking firm shall be paid by the Company. In all other circumstances, such fees and expenses shall be paid by Holder. 

        1.4    Delivery of Certificate and New Warrant.    Promptly after
Holder exercises or converts this Warrant, the Company shall deliver to Holder certificates for the Shares acquired and, if this Warrant has not been fully exercised or converted and has not expired,
a new Warrant representing the Shares not so acquired. 

        1.5    Replacement of Warrants.    On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory
in form and amount to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like
tenor. 

        1.6    Assumption Upon Sale, Merger, or Consolidation of the
Company.    

        1.6.1    "Acquisition".    For the purpose of this Warrant,
"Acquisition" means any sale, license, or other disposition of all or substantially all of the assets of the Company, or any reorganization, consolidation, or merger of the Company where the holders
of the Company's securities before the transaction beneficially own less than 50% of the outstanding voting securities of the surviving entity after the transaction. 

        1.6.2    Assumption of Warrant.    Upon the closing of any Acquisition
the successor entity shall assume the obligations of this Warrant, and this Warrant shall be exercisable for the same securities, cash, and property as would be payable for the Shares issuable upon
exercise of the unexercised portion of this Warrant as if such Shares were outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price shall be adjusted accordingly. 

ARTICLE 2.  ADJUSTMENTS TO THE SHARES.  

        2.1    Stock Dividends, Splits, Etc.    lf the Company
(i) declares or pays a dividend on its common stock (or the Shares if the Shares are securities other than common stock) payable in common stock, or other securities, or (ii) subdivides
the outstanding common stock into a greater amount of common stock, or, if the Shares are securities other than common stock, subdivides the Shares in a transaction 

2

 

that
increases the amount of common stock into which the Shares are convertible, then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total
number and kind of securities to which Holder would have been entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred. 

        2.2    Reclassification, Exchange or Substitution.    Upon any
reclassification, exchange, substitution, or other event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall be
entitled to receive, upon exercise or conversion of this Warrant, the number and kind of securities and property that Holder would have received for the Shares if this Warrant had been exercised
immediately before such reclassification, exchange, substitution, or other event. Such an event shall include any automatic conversion of the outstanding or issuable securities of the Company of the
same class or series as the Shares to common stock pursuant to the terms of the Company's Articles of Incorporation upon the closing of a registered public offering of the Company's common stock. The
Company or its successor shall promptly issue to Holder a new Warrant for such new securities or other property. The new Warrant shall provide for adjustments which shall be as nearly equivalent as
may be practicable to the adjustments provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon
exercise of the new Warrant. The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, substitutions, or other events. 

        2.3    Adjustments for Combinations, Etc.    If the outstanding shares
are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased. 

        2.4    Adjustments for Diluting Issuances.    The Warrant Price and
the number of Shares issuable upon exercise of this Warrant or, if the Shares are Preferred Stock, the number of shares of common stock issuable upon conversion of the Shares, shall be subject to
adjustment, from time to time in the manner set forth in the Company's Articles (Certificate) of Incorporation. The provisions set forth for the Shares in the Company's Articles (Certificate) of
Incorporation relating to the above in effect as of the Issue Date may not be amended, modified or waived, without the prior written consent of Holder unless such amendment, modification or waiver
effects Holder in the same manner as they effect all other shareholders of the Shares. 

        2.5    No Impairment.    The Company shall not, by amendment of its
Articles of Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out of all the provisions of this
Article 2 and in taking all such action as may be necessary or appropriate to protect Holder's rights under this Article against impairment. If the Company takes any action affecting the Shares
or its common stock other than as described above that adversely affects Holder's rights under this Warrant, the Warrant Price shall be adjusted downward and the number of Shares issuable upon
exercise of this Warrant shall be adjusted upward in such a manner that the aggregate Warrant Price of this Warrant is unchanged. 

        2.6    Fractional Shares.    No fractional shares shall be issuable
upon exercise or conversion of the Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise or conversion
of the Warrant, the Company shall eliminate such fractional share interest by paying Holder an amount computed by multiplying the fractional interest by the fair market value of a full Share. 

        2.7    Certificate as to Adjustments.    Upon each adjustment of the
Warrant Price, the Company at its expense shall promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon
which such adjustment is based. The 

3

 

Company
shall, upon written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such Warrant Price. 

ARTICLE 3.  REPRESENTATIONS AND COVENANTS OF THE COMPANY.  

        3.1    Representations and Warranties.    The Company hereby
represents and warrants to the Holder as follows: 

        (a)   The initial Warrant Price referenced on the first page of this Warrant is not greater than (i) the price per share
at which the Shares were last issued in an arms-length transaction in which at least $500,000 of the Shares were sold and (ii) the fair market value of the Shares as of the date of
this Warrant. 

        (b)   All Shares which may be issued upon the exercise of the purchase right represented by this Warrant, and all securities,
if any, issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions
on transfer provided for herein or under applicable federal and state securities laws. 

        (c)   The Capitalization table attached hereto is true and correct. 

        3.2    Notice of Certain Events.    If the Company proposes at any
time (a) to declare any dividend or distribution upon its common stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) to offer for
subscription pro rata to the holders of any class or series of its stock any additional shares of stock of any class or series or other rights; (c) to effect any reclassification or
recapitalization of common stock; (d) to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all or substantially all of its assets, or to liquidate,
dissolve or wind up; or (e) offer holders of registration rights the opportunity to participate in an underwritten public offering of the company's securities far cash, then, in connection with
each such event, the Company shall give Holder (1) at least 20 days prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription
rights (and specifying the date on which the holders of common stock will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (c) and
(d) above; (2) in the case of the matters referred to in (c) and (d) above at least 20 days prior written notice of the date when the same will take place (and
specifying the date on which the holders of common stock will be entitled to exchange their common stock for securities or other property deliverable upon the occurrence of such event); and
(3) in the case of the matter referred to in (e) above, the same notice as is given to the holders of such registration rights. 

        3.3    Information Rights.    So long as the Holder holds this Warrant
and/or any of the Shares, the Company shall deliver to the Holder (a) promptly after mailing, copies of all notices or other written communications to the shareholders of the Company,
(b) within 90 days after the end of each fiscal year of the Company, the annual audited financial statements of the Company certified by independent
public accountants of recognized standing and (c) such other financial statements required under and in accordance with any loan documents between Holder and the Company (or if there are no
such requirements or if the subject loan(s) no longer are outstanding), then within 45 days after the end of each of the first three quarters of each fiscal year, the Company's quarterly,
unaudited financial statements. 

        3.4    Registration Under Securities Act of 1933, as amended.    The
Company agrees that the Shares or, if the Shares are convertible into common stock of the Company, such common stock, shall be subject to the registration rights set forth in the Company's Investors'
Rights Agreement or similar agreement. The provisions set forth in Company's Investors' Right Agreement or similar agreement relating to the above in effect as of the Issue Date may not be amended,
modified or waived without 

4

 

the
prior written consent of Holder unless such amendment, modification or waiver effects Holder in the same manner as they effect all other shareholders of the Shares. 

ARTICLE 4.  MISCELLANEOUS.  

        4.1    Term.    This Warrant is exercisable, in whole or in part, at
any time and from time to time on or before the Expiration Date set forth above. 

        4.2    Legends.    This Warrant and the Shares (and the securities
issuable, directly or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following form: 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH
ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED. 

        4.3    Compliance with Securities Laws on Transfer.    This Warrant
and the Shares issuable upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in
part without compliance with applicable federal and
state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company,
as reasonably requested by the Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to an affiliate of Holder or if there is no material question as to
the availability of current information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling broker
represents that it has complied with Rule 144(f), and the Company is provided with a copy of Holder's notice of proposed sale. 

        4.4    Transfer Procedure.    Subject to the provisions of
Section 4.3, Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable, directly or indirectly, upon conversion of the
Shares, if any) at any time to                                    , or,
 to any other transferee by giving the Company notice of the portion of the Warrant being transferred setting forth the name, address and taxpayer
identification number of the transferee and surrendering this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable). Unless the Company is filing financial information
with the SEC pursuant to the Securities Exchange Act of 1934, the Company shall have the right to refuse to transfer any portion of this Warrant to any person who directly competes with the Company. 

        4.5    Notices.    All notices and other communications from the
Company to the Holder, or vice versa, shall be deemed delivered and effective when given personally or mailed by first-class registered or certified mail, at such address as may have been furnished to
the Company or the Holder, as the case may be, in writing by the Company or such holder from time to time. All notices to be provided under this Warrant shall be sent to the following address: 

  

  

  

        4.6    Waiver.    This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

5

 

        4.7    Attorneys Fees.    In the event of any dispute between the
parties concerning the terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including
reasonable attorneys' fees. 

        4.8    Governing Law.    This Warrant shall be governed by and
construed in accordance with the laws of the State of California, without giving effect to its principles regarding conflicts of law. 

 

 

					
	 	 	 "COMPANY"
	

 	
 	

ePocrates, Inc.
	

 	
 	
 By:	
 	
 

 
	

 	
 	
 Name:	
 	
  

  (Print)
	

 	
 	
 Title:	
 	
Chairman of the Board, President or

Vice President
	

 	
 	
By:	
 	
  

 
	

 	
 	
 Name:	
 	
  

  (Print)
	

 	
 	
 Title:	
 	
Chief Financial Officer, Secretary,

Assistant Treasurer or Assistant

Secretary

 

 6

 
 

  APPENDIX 1
  
    NOTICE OF EXERCISE    
    

        1.    The undersigned hereby elects to
purchase                        shares of the Common/Preferred Series     
[Strike one] Stock of ePocrates, Inc. pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full. 

or

        1.    The
undersigned hereby elects to convert the attached Warrant into Shares/cash [strike one] in the manner specified in the Warrant. This
conversion is exercised with respect to                        of the Shares covered by the Warrant. 

        2.    Please
issue a certificate or certificates representing said shares in the name of the undersigned or in such other name as is specified below: 

 

 

					
	

 	
 	

  (Name)	
 	

 
	 	 	 	 	 
	

 	
 	

  	
 	

 
	

 	
 	

  (Address)

	
 	

 

 

         3.    The
undersigned represents it is acquiring the shares solely for its own account and not as a nominee for any other party and not with a view toward the resale or
distribution thereof except in compliance with applicable securities laws. 

 

 

							
	

 	
 	
 	
 	

  (Signature)
	

  (Date)

	
 	

 	
 	

 	
 	

 

 

 

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Exhibit 4.2

WARRANT TO PURCHASE STOCK

APPENDIX 1 NOTICE OF EXERCISE

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