Award of warrants The Board of Directors of Bavarian Nordic has awarded warrants to a newly-employed employee that gives the right to subscribe to a maximum of 3,000 shares of a nominal value of DKK 10 per share at a subscription rate of DKK 673 per share. The award is part of the terms for the employment. The subscription rate is based on the Copenhagen Stock Exchange close price of 1 November 2004 with an additional transactions premium. The exercise period for this award runs from 18 April 2007 to 2 May 2007. The value of each warrant equals DKK 65.35 and is calculated on the Black-Scholes model with a risk-free interest rate of 3% and on the historical volatility of the shares. The calculation is based on a market value of the share of DKK 530 per share (as of 1 November 2004). The award of warrants will incur consequential amendments to the Articles of Association (Articles 5b, 5e and Appendix 3).
