<SUBMISSION>
<ACCESSION-NUMBER>0000891554-02-001567
<TYPE>DEF 14A
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20020515
<FILING-DATE>20020327
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BIOCRYST PHARMACEUTICALS INC
<CIK>0000882796
<ASSIGNED-SIC>2836
<IRS-NUMBER>621413174
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14A
<ACT>34
<FILE-NUMBER>000-23186
<FILM-NUMBER>02589098
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2190 PKWY LAKE DR
<CITY>BIRMINGHAM
<STATE>AL
<ZIP>35244
<PHONE>2054444600
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2190 PARKWAY LAKE DR
<CITY>BIRMINGHAM
<STATE>AL
<ZIP>35244
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>d50045_def14a.htm
<TEXT>
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     <!-- Project:        untitled                                                         -->
     <!-- Control Number: d50045                                                           -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Biocryst Pharmaceuticals                                         -->
     <!-- Project Name:   DEF14A                                                           -->
     <!-- Firm Name:      ADP                                                              -->
     <TITLE>Schedule 14A</TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 14A
INFORMATION</FONT></H1>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Proxy Statement
Pursuant to Section 14(a) of the Securities Exchange Act of 1934 <BR>(Amendment No. )  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>
Filed by the Registrant [X]<BR>
Filed by a Party other than the Registrant [ ]<BR>
Check the appropriate box: <BR>
[ ] Preliminary Proxy Statement <BR>
[ ] Confidential, for
Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) <BR>
[X] Definitive Proxy
Statement <BR>
[ ] Definitive Additional Materials <BR>
[ ] Soliciting Material Pursuant to e 240.14a-11(c) or e 240.14a-12 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>BIOCRYST
PHARMACEUTICALS, INC. <BR>(Name of Registrant as Specified In
Its Charter) </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Name of Person(s)
Filing Proxy Statement, if other than the Registrant) </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Payment of Filing Fee
(Check the appropriate box): <BR>[X] No fee required.  </FONT></P>


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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[_]  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fee
computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.  </FONT></TD>
</TR>
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<BR>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1)  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=76%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title
of each class of securities to which transaction applies: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2)  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=76%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Aggregate
number of securities to which transaction applies: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3)  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=76%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Per
unit price or other underlying value of transaction computed pursuant to Exchange Act
Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it
was determined):  </FONT></TD>
</TR>
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<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4)  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=76%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposed
maximum aggregate value of transaction: </FONT></TD>
</TR>
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<BR>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5)  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=76%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total
fee paid: </FONT></TD>
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<BR>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[_]</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fee paid
previously with preliminary materials.  </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[_]  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check
box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
identify the filing for which the offsetting fee was paid previously. Identify the
previous filing by registration statement number, or the Form or Schedule and the date of
its filing.  </FONT></TD>
</TR>
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<BR>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1)  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=76%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amount
Previously Paid: </FONT></TD>
</TR>
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<BR>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2)  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=76%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form,
Schedule or Registration Statement No.: </FONT></TD>
</TR>
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<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3)  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=76%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filing
Party: </FONT></TD>
</TR>
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<BR>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4)  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=76%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
Filed: </FONT></TD>
</TR>
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<BR>






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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BIOCRYST
PHARMACEUTICALS, INC.<BR>2190 Parkway Lake Drive<BR>Birmingham, AL 35244</FONT></H1>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTICE OF ANNUAL MEETING<BR>
OF STOCKHOLDERS TO BE HELD<BR>
MAY 15, 2002 </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To the Stockholders of BioCryst
Pharmaceuticals, Inc.: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notice is hereby given that the
Annual Meeting of Stockholders of BioCryst Pharmaceuticals, Inc., a Delaware corporation,
will be held at The Harbert Center, 2019 Fourth Avenue North, Birmingham, Alabama on
Wednesday, May 15, 2002 at 3:00 p.m., Central Daylight Time, for the following purposes:  </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
elect three (3) directors to serve for a term of three years and until their successors
are duly elected and shall be qualified. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
amend the Company&#146;s Employee Stock Purchase Plan in the manner described in the
accompanying Proxy Statement.</FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To
transact such other business as may properly come before the meeting or any adjournment
thereof.</FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors has fixed the
close of business on March 19, 2002 as the record date for the determination of
stockholders entitled to receive notice of and to vote at the meeting or any adjournment
thereof. The meeting may be adjourned from time to time without notice other than
announcement at the meeting, and any business for which notice of the meeting is hereby
given may be transacted at any such adjournment. A list of the stockholders entitled to
vote at the meeting will be open to examination by any stockholder, for any purpose
germane to the meeting, during ordinary business hours, for a period of at least ten (10)
days prior to the meeting at the principal executive offices of the Company in
Birmingham, Alabama.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A copy of the Company&#146;s Annual
Report on Form 10-K for the year ended December 31, 2001 is enclosed, but is not deemed
to be part of the official proxy soliciting materials. Stockholders failing to receive a
copy of the Annual Report may obtain one by writing to the Secretary of the Company at
the address stated above.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please review carefully the
accompanying Proxy and Proxy Statement.  </FONT></P>

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<BR>

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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BY ORDER OF THE BOARD OF DIRECTORS<BR>
W. Randall Pittman, Secretary</FONT></TD>
</TR>
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<BR>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Birmingham, Alabama<BR>April 3, 2002</FONT></FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ALL STOCKHOLDERS ARE INVITED TO
ATTEND THE ANNUAL MEETING IN PERSON. WHETHER OR NOT YOU PLAN TO ATTEND THE MEETING,
PLEASE PROMPTLY DATE, SIGN AND RETURN THE ENCLOSED PROXY. A POSTAGE PREPAID ENVELOPE IS
PROVIDED FOR MAILING. A PERSON GIVING A PROXY HAS THE POWER TO REVOKE IT. IF YOU ATTEND
THE MEETING, YOUR PROXY WILL NOT BE COUNTED WITH RESPECT TO ANY MATTER UPON WHICH YOU
VOTE IN PERSON.</B> </FONT></P>



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<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BIOCRYST
PHARMACEUTICALS, INC.<BR>2190 Parkway Lake Drive<BR>Birmingham, AL 35244</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROXY STATEMENT</FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Proxy Statement is furnished in
connection with the solicitation of proxies by the Board of Directors (the &#147;Board&#148;)
of BioCryst Pharmaceuticals, Inc. (the &#147;Company&#148;) for the Annual Meeting of
Stockholders of the Company to be held at The Harbert Center, 2019 Fourth Avenue North,
Birmingham, Alabama on Wednesday, May 15, 2002 at 3:00 p.m., Central Daylight Time, and
any adjournment thereof (the &#147;Meeting&#148;) and for the purposes set forth in the
accompanying Notice of Annual Meeting of Stockholders.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any proxy given pursuant to this
solicitation may be revoked by the person giving it at any time prior to the voting
thereof, by giving written notice to the Company or by voting in person at the Meeting.
All valid, unrevoked proxies will be voted as directed. In the absence of any contrary
directions, proxies received by the Board will be voted FOR the election of all nominees
for director of the Company, FOR the proposal to amend the Company&#146;s Employee Stock
Purchase Plan in the manner described in this Proxy Statement and, with respect to such
other matters as may properly come before the Meeting, in the discretion of the appointed
proxies.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Only holders of record of the Company&#146;s
common stock (the &#147;Common Stock&#148;) as of the close of business on March 19, 2002
(the &#147;Stockholders&#148;) will be entitled to notice of and to vote at the Meeting.
At March 19, 2002, there were 17,636,465 shares of Common Stock outstanding. Each share
of Common Stock is entitled to one vote on all matters on which Stockholders may vote.
There is no cumulative voting in the election of directors. The presence, in person or by
proxy, of a majority of the outstanding shares of Common Stock of the Company is
necessary to constitute a quorum at the Meeting. Shares of Common Stock represented by a
properly executed and returned proxy will be treated as present at the Meeting for
purposes of determining the presence of a quorum without regard to whether the proxy is
marked as casting a vote for or against or abstaining with respect to a particular
matter. In addition, shares of Common Stock represented by &#147;broker non-votes&#148; (i.e.,
shares of Common Stock held in record name by brokers or nominees as to which a proxy is
received and (i) instructions have not been received from the beneficial owners or
persons entitled to vote, (ii) the broker or nominee does not have discretionary power
and (iii) the record holder had indicated that it does not have authority to vote such
shares on that matter) generally will be treated as present for purposes of determining
the presence of a quorum but as described below, such broker non-votes will not have any
effect upon the election of directors at the Meeting.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The affirmative vote of the holders
of a plurality of the outstanding shares of Common Stock of the Company present in person
or represented by proxy at the Meeting is necessary to elect the nominees for directors
named in the Proxy Statement. Accordingly, abstentions and broker non-votes with respect
to the election of directors will have no effect upon the election of directors at the
Meeting. The affirmative vote of the holders of a majority of the outstanding shares of
Common Stock of the Company present in person or represented by proxy at the Meeting is
necessary to increase the number of shares available for issuance under the Company&#146;s
Employee Stock Purchase Plan as described in the Proxy Statement and to amend other
provisions thereof. Accordingly, abstentions and broker non-votes with respect to the
proposal to increase the number of shares available for issuance under the Employee Stock
Purchase Plan and to amend other provisions thereof will have the same effect as a vote
against the proposal to amend the Employee Stock Purchase Plan.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The proxy solicitation is being made
primarily by mail, although proxies may be solicited by personal interview, telephone,
internet, telegraph or letter. The Company will pay the cost of this solicitation,
including the reasonable charges and expenses of brokerage firms and others who forward
solicitation materials to beneficial owners of the Common Stock. This Proxy Statement and
the accompanying form of proxy card are first being mailed to Stockholders on or about
April 3, 2002.  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>1 </FONT></P>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>1. </B></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>ELECTION
OF DIRECTORS</B></FONT></FONT> </TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Certificate of Incorporation of
the Company provides that the number of directors shall be determined by resolution of
the Board but shall consist of not less than six (6) nor more than twelve (12) members.
The Board has by resolution established the number of directors of the Company at nine
(9). It is proposed to elect three (3) directors to serve until the annual meeting of
stockholders in 2005, and until their successors have been duly elected and qualified.
Proxies cannot be voted for more than three persons. It is intended that shares
represented by the Board&#146;s proxies will be voted FOR the election of the three
persons listed for terms expiring in 2005:  </FONT></P>

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<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Name </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH><TH>&nbsp;</TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Age </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH><TH>&nbsp;</TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Position(s) with the Company </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH><TH>&nbsp;</TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Served as<BR>Director Since </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH><TH>&nbsp;</TH></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="8"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
          <B>NOMINEES FOR TERMS EXPIRING AT THE ANNUAL MEETING OF STOCKHOLDERS<BR>IN 2005</B> </FONT></FONT></TD>
</TR>
<TR>
     <TD WIDTH="32%"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp; </FONT></TD></TR>

<TR VALIGN="BOTTOM">
     <TD  WIDTH="32%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">William W. Featheringill</FONT></TD>
     <TD  WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD  WIDTH="2%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">59</FONT></TD>
     <TD  WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD  WIDTH="48%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Director</FONT></TD>
     <TD  WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1995</FONT></TD>
     <TD  WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Joseph H. Sherrill, Jr.</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">61</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Director</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1995</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">William M. Spencer, III</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">81</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Director</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1986</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp; </FONT></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="8"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
          The following persons shall continue to serve as Directors for the terms indicated: </FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD></TR>
<TR>
     <TD><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp; </FONT></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="8"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
          <B>DIRECTORS WITH TERMS EXPIRING AT THE ANNUAL MEETING OF STOCKHOLDERS<BR>IN 2003</B> </FONT></FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp; </FONT></TD></TR>
<TR>
     <TD><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp; </FONT></TD></TR>

<TR VALIGN="TOP">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">J. Claude Bennett, M. D.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">68</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">President, Chief Operating Officer, Medical Director and Director</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>1997</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Zola P. Horovitz, Ph.D.</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">67</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Director</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1994</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Randolph C. Steer, Ph.D.</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">52</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Director</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1993</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>

<TR>
     <TD><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp; </FONT></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="8"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">
          <B>DIRECTORS WITH TERMS EXPIRING AT THE ANNUAL MEETING OF STOCKHOLDERS<BR>IN 2004</B> </FONT> </FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp; </FONT></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Charles E. Bugg, Ph.D.</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">60</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chairman, Chief Executive Officer and Director</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1993</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Edwin A. Gee, Ph.D.</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">82</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Director</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1993</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">John A. Montgomery, Ph.D.</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">77</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Director</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1989</FONT></TD>
<TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>William W. Featheringill </I> was
elected a Director in May 1995. Mr. Featheringill is Chairman of the Board, since June
1995, of Electronic Healthcare Systems, a software company, and President, Chief
Executive Officer and Director, since 1973, of Private Capital Corporation, a venture
capital company. Mr. Featheringill was Chairman and Chief Executive Officer of MACESS
Corporation, which designs and installs paperless data management systems for the managed
care industry, from 1988 to November 1995. MACESS Corporation merged with Sungard Data
Systems in late 1995. From 1985 to December 1994, Mr. Featheringill was the developer,
Chairman and President of Complete Health Services, Inc., a health maintenance
organization which grew, under his direction, to become one of the largest HMOs in the
southeastern United States. Complete Health Services, Inc. was acquired by United
HealthCare Corporation in June 1994.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Joseph H. Sherrill, Jr.</I>, was elected
a Director in May 1995. Mr. Sherrill served as President of R. J. Reynolds (&#147;RJR&#148;) Asia
Pacific, based in Hong Kong, where he oversaw RJR operations across Asia, including
licensing, joint ventures and a full line of operating companies from August 1989 to his
retirement in October 1994. Prior management positions with RJR included Senior Vice
President of Marketing for R.J. Reynolds International, President and Chief Executive
Officer of R.J. Reynolds Tabacos de Brazil, and President and General Manager of R.J. Reynolds Puerto Rico.</FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>2 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>William M. Spencer, III, </I> has
been a Director of the Company since its inception. Mr.&nbsp;Spencer, who is retired, is
also a private investor in Birmingham, Alabama. Mr. Spencer is a Founder of the Company,
and served as Chairman of the Board of the Company from its founding in 1986 until April&nbsp;1992.
He co-founded and operated Motion Industries from 1946 through its merger into Genuine
Parts Company in 1976. He has founded several businesses and has served on the Boards of
Directors of numerous private corporations.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>J. Claude Bennett, M.D., </I> was
named President and Chief Operating Officer in December 1996 and elected a Director in
January 1997. Since 2001, Dr. Bennett has also served as the Company&#146;s Medical
Director. Prior to joining the Company, Dr. Bennett was President of The University of
Alabama at Birmingham (&#147;UAB&#148;) from October 1993 to December 1996 and Professor
and Chairman of the Department of Medicine of UAB from January 1982 to October 1993. Dr.
Bennett served on the Company&#146;s Scientific Advisory Board from 1989-96. He is a
former co-editor of the <I>Cecil Textbook of Medicine</I> and former President of the
Association of American Physicians. He is a member of the Scientific Advisory Committee
of the Massachusetts General Hospital and continues to hold the position of Distinguished
University Professor Emeritus at UAB, a position he has held since January 1997.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><I>Zola P. Horovitz, Ph.D.</I>, was elected
a Director in August 1994. Dr. Horovitz was Vice President of Business Development and
Planning at Bristol-Myers Squibb from 1991 until his retirement in April 1994 and
previously was Vice President of Licensing at the same company from 1990 to 1991. Prior
to that he spent over 30 years with The Squibb Institute for Medical Research, most
recently as Vice President Research, Planning, &amp; Scientific Liaison. He has been an
independent consultant in pharmaceutical sciences and business development since his
retirement from Bristol-Myers Squibb in April 1994. He serves on the Boards of Directors
of 3-Dimensional Pharmaceuticals, Inc., Avigen, Inc., Diacrin, Inc., Geneara
Pharmaceuticals, Inc., Palatin Technologies, Inc., and Synaptic Pharmaceutical Corp. </FONT></FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Randolph C. Steer, M.D., Ph.D.,
</I> was elected a Director in February&nbsp;1993. Dr.&nbsp;Steer has been an independent
pharmaceutical and biotechnology consultant since 1989, having a broad background in
business development, medical marketing and regulatory affairs. He was formerly Chairman,
President and CEO of Advanced Therapeutics Communications International, a leading drug
regulatory group, and served as associate director of medical affairs at Marion
Laboratories, and medical director at Ciba Consumer Pharmaceuticals. Dr.&nbsp;Steer
serves on the Boards of Directors of Techne Corporation and several privately held
companies.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Charles E. Bugg, Ph.D., </I> was
named Chairman of the Board, Chief Executive Officer and Director of the Company in
November&nbsp;1993 and President in January 1995. Dr. Bugg relinquished the position of
President in December 1996 when Dr. Bennett joined the Company in that position. Prior to
joining the Company, Dr.&nbsp;Bugg had served as the Director of the Center for
Macromolecular Crystallography, Associate Director of the Comprehensive Cancer Center and
Professor of Biochemistry at The University of Alabama at Birmingham (&#147;UAB&#148;)
since 1975. He was a Founder of the Company and served as the Company&#146;s first Chief
Executive Officer from 1987-1988 while on a sabbatical from UAB. Dr.&nbsp;Bugg also
served as Chairman of the Company&#146;s Scientific Advisory Board from January&nbsp;1986
to November&nbsp;1993. He continues to hold the position of Professor Emeritus in
Biochemistry and Molecular Genetics at UAB, a position he has held since January 1994.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Edwin A. Gee, Ph.D., </I> was
elected a Director in August&nbsp;1993. Dr.&nbsp;Gee, who retired in 1985 as Chairman of
the Board and Chief Executive Officer of International Paper Company, has been active as
an executive in biotechnology, pharmaceutical and specialty chemical companies since
1970. He is Chairman Emeritus and a director of OSI Pharmaceuticals, Inc., one of the
leading biotechnology companies for the diagnosis and treatment of cancer.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>John A. Montgomery, Ph.D., </I> was
a Founder of BioCryst and has been a Director since November&nbsp;1989. Until his
retirement as an officer on January 31, 2002, he was the Secretary and Chief Scientific
Officer since joining the Company in February&nbsp;1990. He was Executive Vice President
from February 1990 until May 1997, at which time he was named Senior Vice President.
Prior to joining the Company, Dr.&nbsp;Montgomery served as Senior Vice President of
Southern Research Institute (&#147;SRI&#148;) of Birmingham from January&nbsp;1981 to
February&nbsp;1990. He continues to hold the position of Distinguished Scientist at SRI,
a position he has held since February 1990.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Should any nominee be unable or
unwilling to accept election, it is expected that the proxies will vote for the election
of such other person for the office of director as the Board may then recommend. The
Board has no reason to believe that any of the persons named will be unable to serve or
will decline to serve if elected.  </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Committees of the Board</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company has an Audit Committee
consisting of Messrs. Featheringill, Gee and Spencer that is responsible for the review
of internal accounting controls, financial reporting and related matters. The Audit
Committee also recommends to the Board the independent accountants selected to be the
Company&#146;s auditors and reviews the audit plan, financial statements and audit
results. The Audit Committee held one meeting in 2001. The Audit Committee members are
&#147;independent&#148; directors as defined by NASDAQ listing standards. The Audit
Committee operates under a written charter adopted by the Board of Directors, a copy of
which accompanied the proxy statement for the Company&#146;s 2001 Annual Meeting of
Stockholders as Appendix A thereto.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company has a Compensation
Committee consisting of Messrs. Featheringill, Gee and Spencer. The Compensation
Committee is responsible for the annual review of officer compensation and other
incentive programs and is authorized to award options under the Company&#146;s 1991 Stock
Option Plan. The Compensation Committee held two meetings during 2001.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company has a Nominating
Committee comprised of all outside directors with terms not expiring in the current year
for which the Nominating Committee will be nominating persons for election or reelection
as directors. The Nominating Committee held one meeting during 2001. The Nominating
Committee will consider nominees recommended in writing, including biographical
information and personal references, by stockholders to the same extent as nominees
recommended by management. Nominations for 2003 must be received by the Nominating
Committee by December 5, 2002.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During 2001, the Board held ten (10)
meetings. Each member of the Board attended at least 75% of the meetings of the Board and
of the committees of the Board of which he is a member.  </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Director Compensation</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Directors who are officers of the
Company do not receive any additional compensation for their services as a director.
Non-employee directors do not receive a separate fee for attending Board or committee
meetings, but are reimbursed for expenses incurred in attending Board or committee
meetings and while representing the Company in conducting certain business. Prior to
October 2000, individuals who first became non-employee Board members, at the time of
commencement of Board service, received a grant of options to purchase 40,000 shares
(25,000 shares prior to May 1997) pursuant to the automatic option grant program under
the Company&#146;s 1991 Stock Option Plan. At the fourth anniversary of the original
option grant, and on each successive fourth anniversary thereafter, each non-employee
director was automatically issued an additional option to purchase 40,000 shares. In
October 2000, the Board amended the plan to provide for each non-employee director to
receive automatic grants of options to purchase 10,000 shares annually, beginning in the
year in which their next respective fourth anniversary of their last grant occurs. Also,
the plan was amended to provide that individuals who first become non-employee Board
members receive an initial grant of options to purchase 10,000 shares. Options for the
initial 40,000 shares, granted prior to the amendment in October 2000, vest 25% after one
year and 1/48 per month thereafter until fully vested after four years. After the
amendment to the plan, the grants for 10,000 shares are 100% vested after one year.  </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Compensation Committee
Interlocks and Insider Participation</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Compensation Committee consists
of Mr. Featheringill, Dr. Gee and Mr. Spencer. There are no Compensation Committee
interlocks. </FONT></P>

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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>2.</B></FONT></FONT> </TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2"><B>APPROVAL
OF AMENDMENT TO EMPLOYEE STOCK PURCHASE PLAN.</B></FONT></FONT> </TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In May 1995, the Company&#146;s
stockholders approved the Company&#146;s Employee Stock Purchase Plan (the &#147;ESP Plan&#148;).
As initially adopted, a total of 200,000 shares of Common Stock were reserved for
issuance under the ESP Plan. As of March 1, 2002, 168,408 shares had been issued, leaving
a total of 31,592 shares available for future purchase under the ESP Plan.  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>4 </FONT></P>
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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Proposal</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On February 4, 2002, the Board of
Directors adopted, subject to stockholder approval, an amendment to the ESP Plan to add
200,000 shares to the number of shares authorized for issuance under the ESP Plan,
bringing the total number of shares of Common Stock subject to the ESP Plan to 400,000.
When added to the remaining shares available for issuance under the ESP Plan, the
increase will result in a total of 231,592 shares being available for future employee
purchases under the ESP Plan, subject to adjustment in the event of a change in capital
structure of the Company (as discussed below). The amendment to the ESP Plan adopted by
the Board of Directors also eliminates the current January 2005 termination date for the
ESP Plan. With the elimination of the January 2005 termination date, the ESP Plan will
expire upon the earlier of (i) the date on which all shares available for issuance under
the ESP Plan shall have been sold pursuant to purchase rights exercised under the ESP
Plan or (ii) the date on which all purchase rights are exercised in connection with an
Acquisition (as defined below). Notwithstanding the date of termination determined by the
preceding sentence, the Board of Directors may act to terminate the ESP Plan at the end
of any Purchase Period (as defined below) under the ESP Plan.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Board of Directors believes that
the approval of the amendment to the ESP Plan is in the best interests of the Company and
its stockholders, as the availability of an adequate number of shares for issuance under
the ESP Plan and the ability of eligible employees to acquire a proprietary interest in
the Company is an important factor in attracting, motivating and retaining qualified
personnel essential to the success of the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Summary of the Employee
Stock Purchase Plan</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following summary of the ESP
Plan does not contain all of the terms and conditions of the ESP Plan, and is qualified
in its entirety by the specific language of the ESP Plan as amended to increase the
number of shares authorized for issuance thereunder and eliminate the January 2005
termination date. Any stockholder who wishes to obtain a copy of the ESP Plan may do so
by written request to the Secretary, BioCryst Pharmaceuticals, Inc., 2190 Parkway Lake
Drive, Birmingham, Alabama 35244.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>General</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Purposes.</I> The ESP Plan is
intended to qualify under Section 423 of the Internal Revenue Code of 1986, as amended
(the &#147;Code&#148;). The purpose of the ESP Plan is to allow eligible employees of the
Company to subscribe for and purchase shares of the Company&#146;s Common Stock directly
from the Company at a discounted price through payroll deductions and to provide an
incentive for continued employment.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Administration.</I> The ESP Plan
is administered by the Compensation Committee of the Board of Directors of the Company
(the &#147;Committee&#148;). Subject to the specific provisions of the ESP Plan, all
questions of interpretation or application of the ESP Plan are determined by the
Committee and its decisions are final, conclusive and binding upon all participants. The
Company pays all administrative expenses of the ESP Plan.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Amendment and Discontinuance.</I> Following
the end of any Purchase Period, the Board may alter, amend, suspend or discontinue the
ESP Plan. However, the Board may not take the following actions with respect to the ESP
Plan without receiving the prior approval of the stockholders, except for permissible
adjustments in the event of certain changes in the Company&#146;s capitalization: (i)
materially increase the number of shares of Common Stock issuable under the ESP Plan or
the maximum number of shares purchasable per participant on any one purchase date; (ii)
alter the purchase price formula so as to reduce the purchase price payable for the
shares purchasable under the ESP Plan; or (iii) materially increase the benefits accruing
to participants under the ESP Plan or materially modify the requirements for eligibility
to participate in the ESP Plan. Unless earlier terminated by the Board, shares of Common
Stock will be offered for purchase under the ESP Plan until the earlier of (i) the date
on which the maximum number of shares of Common Stock available for issuance under the
ESP Plan shall have been purchased or (ii) the date on which all purchase rights are
exercised in connection with an Acquisition (as defined below).  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>5 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Eligibility and
Participation</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employees (including officers and
employee directors) who are employed by the Company or any participating subsidiary on a
basis which requires such employee to work more than twenty (20) hours per week for more
than five (5) months per calendar year at the commencement of each six-month purchase
period (a &#147;Purchase Period&#148;), are eligible to participate in the ESP Plan,
subject to certain limitations imposed by the Code and certain other limitations set
forth in the ESP Plan. No purchase rights will be granted to any employee who,
immediately after the grant of such right, would own (or otherwise hold options or other
rights to purchase) stock possessing five percent (5%) or more of the total voting power
or value of all classes of stock of the Company or any parent or subsidiary corporation.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As of March 1, 2002, approximately
76 employees were eligible to participate in the ESP Plan, and approximately 46 employees
were participating. Participants participate in the ESP Plan by electing payroll
deductions on or prior to the commencement of a Purchase Period that accumulate to
purchase shares of Common Stock. The actual benefits, if any, to participants in the ESP
Plan are not determinable prior to the purchase of shares thereunder as the value, if
any, of such shares to their holders is represented by the difference between the market
price of a share of Company Common Stock on the date of purchase and the purchase price
of the shares, as described below.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Purchase Periods and
Payroll Deductions</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Purchase Periods run from the first
business day of February to the last business day of July and from the first business day
in August to the last business day of the next succeeding January in each year. Eligible
employees may elect to participate in the ESP Plan on or prior to the start date of any
Purchase Period. An eligible employee electing to participate may authorize payroll
deductions in integral multiples of 1% of the base salary paid to such participant during
the Purchase Period up to a maximum of 15% of base salary. The participant may decrease
his rate of payroll deduction one time during any Purchase Period, but cannot increase
the rate of deduction during the Purchase Period. Any elections to increase the rate of
deduction will take effect at the beginning of the next Purchase Period. A participant
may, at any time prior to the last day of the Purchase Period, terminate his right to
purchase shares of Common Stock at the end of the Purchase Period, and no further payroll
deductions will be collected from the participant during that Purchase Period. Payroll
deductions accumulated in the participant&#146;s account shall, at the participant&#146;s
election, be immediately refunded to the participant or held for the purchase of shares
on the last day of the next Purchase Period. Terminating participants who fail to make an
election with respect to accumulated payroll deductions shall be refunded such deductions
as soon as possible.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payroll deductions are credited to
accounts established in each participant&#146;s name on the books of the Company. No
interest accrues on payroll deductions credited to such accounts during the Purchase
Period. On the last business day of each Purchase Period, the amount in each participant&#146;s
account is used to purchase whole shares of Common Stock of the Company on such purchase
date. Any amount remaining in the participant&#146;s account will be carried over to the
next Purchase Period, except for amounts not applied to the purchase of Common Stock
because the limitations on the number of shares purchasable per participant is exceeded,
which amounts will be promptly refunded to the participant after the purchase date. A
participant will not acquire any stockholder rights with respect to purchase rights under
the ESP Plan until shares of Common Stock are actually purchased for such participant at
the end of each Purchase Period. During a participant&#146;s lifetime, rights to purchase
shares of Common Stock pursuant to the ESP Plan shall be exercisable only by the
participant.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Purchase Price and
Amount of Common Stock Purchased</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The purchase price per share for
which shares of Common Stock will be sold at the end of a Purchase Period under the ESP
Plan is the lesser of (i) 85% of the &#147;fair market value&#148; per share of the Common
Stock on the start date of the Purchase Period or (ii) 85% of the &#147;fair market value&#148; per
share of Common Stock on the purchase date. For purposes of the ESP Plan, the &#147;fair
market value&#148; per share on any relevant date under the ESP Plan will be the closing
selling price per share of Common Stock on the date in question, as such price is
reported on the Nasdaq National Market System, if, at the time, the Common Stock is
traded on the Nasdaq National Market, or the closing selling price per share of the
Common Stock on the date in question on the stock exchange determined by the Committee to
be the primary market for the Common Stock, as such price is officially quoted on the
composite tape of transactions on such exchange, if at the time the Common Stock is
listed on any stock exchange. In either case, if there is no closing selling price for
the Common Stock on the date in question, then the &#147;fair market value&#148; shall be
the closing selling price on the immediately preceding date for which such quotation
exists.  </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The maximum number of shares which a
participant may purchase on any purchase date may not exceed 3,000 shares of Common Stock
(subject to adjustment in the event of a change in the capital structure of the Company
as discussed below). In addition, a participant may not purchase shares at a rate in
excess of $25,000 worth of Common Stock (determined on the basis of the fair market value
of the Common Stock on the start date of the Purchase Period) for each calendar year.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Mergers, Acquisitions
and Other Corporate Transactions</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the event of certain acquisitions
of the Company by merger or asset purchase (an &#147;Acquisition&#148;), all payroll
deductions for the Purchase Period in which such Acquisition occurs will automatically be
applied to the purchase of Common Stock immediately prior to the effective date of the
Acquisition, subject to the limitations on purchase during any Purchase Period. The
purchase price of such shares will be 85% of the lesser of (i) the &#147;fair market value&#148; of
the Common Stock on the start date of the Purchase Period or (ii) the &#147;fair market
value&#148; of the Common Stock immediately prior to the Acquisition. The Company will
provide at least ten (10) days notice prior to any such Acquisition to each participant,
and each participant will have the right to terminate participation in the ESP Plan at
any time prior to the effective date of the Acquisition should a participant not wish to
have shares purchased in connection with the Acquisition.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the event of any stock split,
common stock dividend, recapitalization, combination of shares, exchange of shares or
other change affecting the outstanding Common Stock as a class without receipt of
consideration by the Company, the number of shares of Common Stock issuable under the ESP
Plan and any outstanding purchase rights (and the price per share in effect under any
such purchase right) is subject to adjustment in order to prevent the dilution or
enlargement of benefits under the ESP Plan and such purchase rights.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Termination of
Employment or Loss of Eligibility</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If a participant&#146;s employment
terminates for any reason, including death or permanent disability, or the participant
otherwise loses his status as an eligible employee, then all payroll deductions for the
Purchase Period in which employment terminates or eligibility is lost are automatically
refunded to the participant or his personal representative.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Federal Income Tax
Information</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>The following information is a
general summary of some of the current federal income tax consequences of the ESP Plan to
participants and to the Company. Tax laws may change, and actual tax consequences will
depend on a participant&#146;s individual circumstances as well as state and local tax
laws. All participants should seek tax advice when they participate in the ESP Plan. The
ESP Plan is intended to qualify as an &#147;employee stock purchase plan&#148; under
Section 423 of the Code.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Tax Treatment of Participants.</I> Under
plans which qualify as &#147;employee stock purchase plans,&#148; no taxable income is
recognized by the participant either upon receipt of the purchase right at the time of
entry into the Purchase Period or, for purchases made before January 1, 2003, upon the
actual purchase of shares on each purchase date. All tax consequences with respect to
such purchases are deferred until the participant disposes of the shares. A disposition
of shares generally includes any transfer of legal title, whether by sale, exchange or
gift, but does not include a transfer to a participant&#146;s spouse or a transfer to
joint ownership if the participant remains one of the joint owners, or a transfer into
the participant&#146;s brokerage account. The participant&#146;s federal income tax
liability will depend on whether the participant makes a qualifying or disqualifying
disposition of the purchased shares. A qualifying disposition will occur if the sale or
other disposition of those shares is made after the participant has held the shares for
(i) more than two years after the start date of the Purchase Period and (ii) more than
one year after the actual purchase date. A disqualifying disposition is any sale or other
disposition which is made prior to the satisfaction of either of these two minimum
holding period requirements, however, if a participant dies while owning the shares, the
transfer of the shares upon death will generally be considered a qualifying disposition.
With respect to a qualifying disposition, a participant will recognize ordinary income in
the year of such disposition equal to the lesser of (i) the amount by which the fair
market value of the shares on the date of the qualifying disposition exceeds the purchase
price or (ii) 15% of the fair market value of the shares on the start date of the
Purchase Period in which those shares were purchased. Any additional gain recognized upon
the qualifying disposition will be a long-term capital gain. If the fair market value of
the shares on the date of the qualifying disposition is less than the purchase price the
participant paid for the shares, there will be no ordinary income, and any loss
recognized will be a long-term capital loss. With respect to a disqualifying disposition,
a participant will recognize ordinary income in the year of such disposition equal to the
excess of (i) the fair market value of the shares on the purchase date over (ii) the
purchase price paid for the shares. Any additional gain recognized upon the disqualifying
disposition will be capital gain, which will be long-term if the shares are held for more
than one year from the date of purchase.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to proposed regulations
issued by the Department of Treasury on November 14, 2001, the foregoing rules would be
changed for purchases of shares under the ESP Plan that take place after December 31,
2002. If these proposed regulations become final, a participant who purchases shares
under the ESP Plan after December 31, 2002 will be deemed to have received wages in an
amount equal to the excess of the fair market value of the shares, determined at the time
of purchase, over the purchase price paid for the shares, for purposes of the Federal
Insurance Contributions Act (FICA) tax and the Federal Unemployment Tax Act (FUTA) tax.
The Company would be required to withhold from the participant&#146;s wages appropriate
amounts for FICA and FUTA (but not for income tax withholding). Under the proposed
regulations, the IRS has proposed special procedures whereby the Company and participants
may satisfy these new withholding obligations.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Tax Treatment of the Company.</I> When
a participant recognizes ordinary income upon making a disqualifying disposition, the
Company will generally be entitled to a tax deduction in the amount of the ordinary
income. In all other cases, no deduction is allowed the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Vote Required</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Assuming a quorum is present, the
affirmative vote of a majority of the shares present in person or by proxy and entitled
to vote at the Annual Meeting will be required to approve the amendment to increase the
maximum aggregate number of shares purchasable under the ESP Plan from 200,000 to 400,000
and to eliminate the January 2005 termination date. Abstentions will be considered shares
entitled to vote in the tabulation of the votes cast on this proposal and will have the
same effect as negative votes. Broker non-votes are counted towards a quorum, but are not
counted for any purpose in determining whether the proposal has been approved.  </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Recommendation of the
Board of Directors</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>THE BOARD OF DIRECTORS RECOMMENDS
THAT THE STOCKHOLDERS VOTE &#147;FOR&#148; THE AMENDMENT TO THE EMPLOYEE STOCK PURCHASE
PLAN.</B> </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>8 </FONT></P>

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<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXECUTIVE COMPENSATION</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table sets forth the
annual and long-term compensation paid by the Company during the 2001, 2000, and 1999
fiscal years to the Company&#146;s Chief Executive Officer and each of the Company&#146;s
four other most highly compensated executive officers whose annual salary and bonus for
the 2001 fiscal year exceeded $100,000 (collectively, the &#147;Named Executive Officers&#148;):  </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SUMMARY COMPENSATION
TABLE</FONT></H1>

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</TD>
</TR>
</TABLE>
<BR>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TH>
     <TH COLSPAN="5"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Annual Compensation </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Long-Term<BR>Compensation<BR>Awards-Securities </FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Name and Principal Position </FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Year </FONT></TH><TH>&nbsp;</th>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Salary </FONT></TH><TH>&nbsp;</th>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bonus </FONT></TH><TH>&nbsp;</th>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other Annual<BR>Compensation (3) </FONT></TH><TH>&nbsp;</th>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Underlying<BR>Options </FONT></TH></TR>
<TR>
     <TD ALIGN="LEFT"><HR NOSHADE SIZE="1" WIDTH="70%"></TD><TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="4%"><HR NOSHADE SIZE="1"></TD><TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="9%"><HR NOSHADE SIZE="1"></TD><TD WIDTH="5%"></TD>
     <TD ALIGN="RIGHT" WIDTH="9%"><HR NOSHADE SIZE="1"></TD><TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="14%"><HR NOSHADE SIZE="1"></TD><TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="9%"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Charles E. Bugg, Ph.D.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2001</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$381,576</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$8,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">56,700</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chairman and</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2000</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">355,465</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">60,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,250</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">55,000</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chief Executive Officer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1999</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">279,120</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">80,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">53,300</FONT></TD>
        </TR>
<TR>
     <TD COLSPAN="2">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">J. Claude Bennett, M.D.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2001</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">291,707</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">59,100</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">President and Chief Operating</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2000</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">264,480</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,250</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37,300</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Officer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1999</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">244,232</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">37,300</FONT></TD>
        </TR>
<TR>
     <TD COLSPAN="2">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">John A. Montgomery, Ph.D.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2001</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">102,886</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,075</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,000</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Senior Vice President, Secretary</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2000</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">109,344</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(1)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,467</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">13,500</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">and Chief Scientific Officer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1999</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">192,504</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,152</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6,500</FONT></TD>
        </TR>
<TR>
     <TD COLSPAN="2">&nbsp;</TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">W. Randall Pittman</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2001</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">201,072</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">36,900</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chief Financial Officer, Treasurer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2000</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">189,678</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,250</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">17,000</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">and Assistant Secretary</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1999</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(2)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">45,000</FONT></TD>
        </TR>
<TR>
     <TD COLSPAN="2">&nbsp;</TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">John R. Uhrin</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2001</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">204,360</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">20,800</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Vice President, Corporate</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2000</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">192,168</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">39,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,250</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16,000</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Development</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1999</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">177,540</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">27,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">16,000</FONT></TD>
        </TR>
</TABLE>

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<TR VALIGN=TOP>
<TD>

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<P>_________________ </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) Dr. Montgomery became a
part-time employee beginning January 1, 2000 and retired as an officer of the Company
effective January 31, 2002, but he remains on the Board of Directors.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) Mr. Pittman joined the Company
as a Consultant to the Chief Executive Officer on December 15, 1999, and assumed the
position of Chief Financial Officer, Treasurer and Assistant Secretary on January 10,
2000. On February 4, 2002, Mr. Pittman was appointed Secretary.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) Represents the Company
contribution to the 401(k) Plan. </FONT></P>

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<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Employment and Change in
Control Agreements</FONT></H2>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Charles E. Bugg, Ph.D., entered into
a new three-year employment agreement with the Company on December 27, 1999 for the years
2000, 2001 and 2002 (the &#147;Bugg Agreement&#148;). Under the terms of the Bugg
Agreement, Dr.&nbsp;Bugg will serve as Chairman of the Board of Directors and Chief
Executive Officer of the Company. Dr.&nbsp;Bugg will receive minimum annual compensation
of $355,465. The Board may, in its discretion, grant other cash or stock bonuses to Dr.&nbsp;Bugg
as an award or incentive. Dr.&nbsp;Bugg is also entitled to all employee benefits
generally made available to executive officers. Dr.&nbsp;Bugg may, if he desires, also
hold positions at UAB, provided that he does not devote more than ten percent of his time
to such activities. The term of the Bugg Agreement is for three years unless terminated
(i)&nbsp;by the Company for cause or (ii)&nbsp;upon the permanent disability of Dr.&nbsp;Bugg.
Dr.&nbsp;Bugg will receive, on or before the last day of each year during the term of the
Bugg Agreement, an additional option to purchase a minimum of 25,000 shares of Common
Stock of the Company under the Company&#146;s 1991 Stock Option Plan. The exact number of
shares will be determined by the Plan Administrator, which is presently the Compensation
Committee, based on Dr.&nbsp;Bugg&#146;s performance and the results of operations of the
Company during such year. Dr.&nbsp;Bugg will receive an additional stock option to
purchase 100,000 shares of Common Stock under the Company&#146;s 1991 Stock Option Plan
upon submission to the FDA of any new drug application by the Company or any licensee of
the Company and another additional stock option to purchase 100,000 shares of Common
Stock under the Company&#146;s 1991 Stock Option Plan upon the final approval by the FDA
of each such new drug application. The exercise price shall be the fair market value of
the Company&#146;s Common Stock on the date such additional stock option is granted.
These additional stock options will vest 25% one year after the date of issuance and the
remaining 75% will vest at the rate of 1/48th, of the options granted, per
month thereafter.  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>9 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>




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<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The options may be exercised
immediately in the event of a merger or acquisition of the Company. The options may be
exercised within 24 months of Dr.&nbsp;Bugg&#146;s death or permanent disability. In the
event Dr.&nbsp;Bugg&#146;s employment is terminated for cause he may exercise the options
within three months of the date of such termination to the extent such options were
exercisable immediately prior to such termination. In the event Dr.&nbsp;Bugg&#146;s
employment is terminated for a reason other than cause, death or permanent disability,
the options then outstanding shall become immediately exercisable in full.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All options granted to Dr.&nbsp;Bugg
pursuant to the Bugg Agreement are intended to qualify as incentive stock options as
defined in Section 422 of the Internal Revenue Code of 1986, as amended, except to the
extent the portion of such options which become exercisable in any year have an aggregate
exercise price in excess of $100,000. All options shall expire no later than ten years
from the date of grant.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On May 25, 2001, the Company entered
into a change of control agreement with Mr. Pittman. This agreement provides that if,
within one year following a change in control of the Company (as defined in the
agreement), Mr. Pittman&#146;s employment is terminated in a qualified termination, then
he shall receive a severance payment equal to his annual base salary in effect
immediately prior to the change in control. For purposes of the agreement, the term &#147;qualified
termination&#148; means any involuntary termination of the executive&#146;s employment
after the date of a change in control.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Option Grants in 2001</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table shows, with
respect to the Company&#146;s Named Executive Officers, certain information with respect
to option grants in 2001. All of the grants were made under the Company&#146;s 1991 Stock
Option Plan. BioCryst has not granted any stock appreciation rights.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> &nbsp; </FONT></TH><TH>     </TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Number of<BR>Securities<BR>Underlying<BR>Options </FONT></TH><TH> </TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% of Total<BR>Options </FONT></TH><TH> </TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exercise<BR>Price Per </FONT></TH><TH> </TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Expiration </FONT></TH><TH> </TH>
     <TH COLSPAN="4"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
          Value at Assumed<BR>Annual Rates of<BR>Stock Price<BR>Appreciation for<BR>Option Term (1) </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name </FONT></TH><TH> </TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Granted </FONT></TH><TH> </TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Granted </FONT></TH><TH> </TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Share </FONT></TH><TH> </TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Date </FONT></TH><TH> </TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5% </FONT></TH><TH> </TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10% </FONT></TH><TH> </TH></TR>
<TR>
     <TD ALIGN="LEFT" WIDTH="33%"><HR NOSHADE SIZE="1" WIDTH="70%"></TD><TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="10%"><HR NOSHADE SIZE="1"></TD><TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="6%"><HR NOSHADE SIZE="1"></TD><TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="10%"><HR NOSHADE SIZE="1"></TD><TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="11%"><HR NOSHADE SIZE="1"></TD><TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="9%"><HR NOSHADE SIZE="1"></TD><TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="9%"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="33%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Charles E. Bugg, Ph.D.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">26,700</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5.11</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$6.09</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">03/23/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$102,327</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$259,318</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">   </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5.74</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.59</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12/12/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">67,732</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">171,646</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">J. Claude Bennett, M.D.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28,700</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5.49</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6.09</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">03/23/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">109,992</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">278,742</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">   </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,400</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5.82</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.59</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12/12/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">68,635</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">173,935</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">John A. Montgomery, Ph.D.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.96</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6.09</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">03/23/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">19,162</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">48,561</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">   </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0.96</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.59</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12/12/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11,289</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28,608</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">W. Randall Pittman</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">22,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4.31</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6.09</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">03/23/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">86,231</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">218,526</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">   </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">14,400</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.76</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.59</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12/12/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">32,511</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">82,390</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">John R. Uhrin</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">8,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.53</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">6.09</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">03/23/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">30,660</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">77,698</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">   </FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12,800</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.45</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.59</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">12/12/2011</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28,899</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">73,236</FONT></TD>
        </TR>
</TABLE>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush " -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>_________________<BR>(1) Amounts represent hypothetical
gains that could be achieved for the respective options at the end of the ten-year option
term. The assumed 5% and 10% rates of stock appreciation are mandated by rules of the
Securities and Exchange Commission and do not represent the Company&#146;s estimate of
the future market price of the Common Stock.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Aggregate Option
Exercises in 2001 and Year-end Option Values</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table shows, with
respect to the Company&#146;s Named Executive Officers, the number and value of
unexercised options held by the Named Executive Officers as of December&nbsp;31, 2001.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Shares<BR>Acquired on </FONT></TH>
     <TH></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Value </FONT></TH>
     <TH></TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Number of Securities<BR>underlying<BR>Unexercised Options </FONT>
          <HR WIDTH=100% SIZE=1 NOSHADE></TH><TH> </TH>
     <TH COLSPAN="3"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Values of Securities<BR>Underlying<BR>Unexercised Options(2) </FONT><HR WIDTH=100% SIZE=1 NOSHADE></TH></TR>
<TR VALIGN="BOTTOM">
     <TH ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name </FONT> </TH> <TH> </th>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exercise </FONT></TH><TH> </th>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Realized (1) </FONT></TH><TH> </th>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exercisable </FONT></TH><TH> </th>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unexercisable </FONT></TH><th> </th>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exercisable </FONT></TH><th> </th>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unexercisable </FONT></TH></TR>
<TR>
     <TD ALIGN="LEFT" WIDTH="30%"><HR NOSHADE SIZE="1" WIDTH="75%"></TD>
     <TD WIDTH="2%">&nbsp;</TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><HR NOSHADE SIZE="1"></TD>
     <TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="12%"><HR NOSHADE SIZE="1"></TD>
     <TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="9%"><HR NOSHADE SIZE="1"></TD>
     <TD WIDTH="2%"></TD>
     <TD ALIGN="RIGHT" WIDTH="9%"><HR NOSHADE SIZE="1"></TD>
     <TD WIDTH="3%"></TD>
     <TD ALIGN="RIGHT" WIDTH="9%"><HR NOSHADE SIZE="1"></TD>
     <TD WIDTH="3%"></TD>
     <TD ALIGN="RIGHT" WIDTH="9%"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Charles E. Bugg, Ph.D.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">632,898</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">137,102</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$0</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$11,100</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">J. Claude Bennett, M.D.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">194,704</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">116,090</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">11,248</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">John A. Montgomery, Ph.D.</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">134,781</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28,319</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,850</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">W. Randall Pittman</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">26,749</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">72,151</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,328</FONT></TD>
        </TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">John R. Uhrin</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">74,233</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">49,467</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">0</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4,736</FONT></TD>
        </TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>_________________ <BR>(1) The value realized equals the
difference between the option exercise price and the fair market value of BioCryst&#146;s
common stock at the time of exercise, multiplied by the number of shares for which the
option was exercised.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) Amounts reflect the net values
of outstanding stock options computed as the difference between $3.96 per share (the fair
market value at December 31, 2001) and the exercise price therefor.  </FONT></P>

<p align=center><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>10 </FONT></p>
<HR SIZE=5 NOSHADE>

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<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>COMPENSATION COMMITTEE
REPORT ON EXECUTIVE COMPENSATION</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>General</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company&#146;s compensation
program for executive officers is primarily comprised of base salary, periodic bonuses
and long-term incentives in the form of stock option grants. Executives also participate
in various other benefit plans, including medical, dental, 401(k), life insurance,
disability insurance and vacation plans, which are available to all full-time employees
of the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Compensation of executive officers
of the Company was based upon individual assessments of the amount of compensation
required to attract individuals to fill positions with the Company and motivate such
individuals to focus on achieving the objectives of the Company. During 1999, the
Compensation Committee retained William M. Mercer, Inc. (&#147;Mercer&#148;), an
internationally recognized compensation consulting firm, to perform a thorough review of
the Company&#146;s executive compensation program. Mercer also reviewed salary levels and
employee benefit programs of all other employees of the Company. Mercer compared the
Company&#146;s compensation plans, including cash compensation and stock option grants,
to those of a peer group of 21 publicly traded companies in the biotechnology and
biopharmaceutical industries. The Compensation Committee used the results of the 1999
Mercer study and information from the Biotechnology Compensation Survey Report 2001
prepared by Radford Associates as factors in determining the appropriateness of executive
compensation levels.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company strongly believes in
tying executive and employee rewards directly to the long-term success of the Company and
increases in stockholder value through grants of stock options. The Company also believes
that the grant of stock options should be reflective of the Company&#146;s success in
meeting objectives established for the Company by the Board and each individual officer&#146;s
ability to affect, and contribution toward meeting, such objectives. The stock options
awarded to the Company&#146;s executive officers in 2001 were based on a subjective
evaluation by the Compensation Committee of the Company&#146;s achievement of objectives
for 2001, including, without limitation, working collaboratively with the Company&#146;s
former licensee to develop our influenza neuraminidase inhibitor, making progress with
respect to its clinical and basic research projects, each individual officer&#146;s
contribution to the Company&#146;s achievements of its objectives and the Compensation
Committee&#146;s subjective determination of the appropriate level of stock options for
persons holding the officer&#146;s position with the Company. No specific relative weight
was assigned to any of the factors considered.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Chief Executive Officer</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Charles E. Bugg, Ph.D., entered into
a new three-year employment agreement with the Company on December 27, 1999 for the years
2000, 2001 and 2002 (the &#147;Bugg Agreement&#148;). Under the terms of the Bugg
Agreement, Dr.&nbsp;Bugg will serve as Chairman of the Board of Directors and Chief
Executive Officer of the Company. Dr.&nbsp;Bugg will receive minimum annual compensation
of $355,465. The Board may, in its discretion, grant other cash or stock bonuses to Dr.&nbsp;Bugg
as an award or incentive. Dr. Bugg was not given a bonus for 2001. Dr.&nbsp;Bugg is also
entitled to all employee benefits generally made available to executive officers. Dr.&nbsp;Bugg
may, if he desires, also hold positions at UAB, provided that he does not devote more
than ten percent of his time to such activities. The term of the Bugg Agreement is for
three years unless terminated (i)&nbsp;by the Company for cause or (ii)&nbsp;upon the
permanent disability of Dr.&nbsp;Bugg.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dr.&nbsp;Bugg will receive, on or
before the last day of each year during the term of the Bugg Agreement, an additional
option to purchase a minimum of 25,000 shares of Common Stock of the Company under the
Company&#146;s 1991 Stock Option Plan. The exact number of shares will be determined by
the plan administrator, which is presently the Compensation Committee, based on Dr.&nbsp;Bugg&#146;s
performance and the results of operations of the Company during such year. Under the Bugg
Agreement and his previous employment agreement, Dr. Bugg received options to purchase
56,700 shares of Common Stock in 2001, 55,000 shares of Common Stock in 2000, and 53,300
shares of Common Stock in 1999. In assessing the performance of the Company and Dr. Bugg
in determining the number of options to be granted under his contract for 2001, the
Compensation Committee relied solely on a subjective evaluation of the Company&#146;s
progress with respect to its research projects and Dr. Bugg&#146;s contribution toward
these results. No specific criteria were utilized in evaluating such performance,
however, and no relative weight was assigned to any specific factors considered. The
Compensation Committee did not consider the amount of options held by Dr. Bugg in
determining the amount of options to be awarded to him for 2001 under his contract. Such
review in 2001 resulted in the Compensation Committee granting Dr. Bugg options to
purchase 26,700 shares of Common Stock at $6.09 per share and 30,000 shares of Common
Stock at $3.59 per share, the fair market value on the date of each respective grant.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section 162(m)</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Compensation Committee has
reviewed all compensation programs for compliance with Section 162(m) of the Code.
Currently, options granted by this Committee are exempt from the $1 million limit on
deductibility of executive compensation under the rules.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This report is submitted by the
Compensation Committee, consisting of William W. Featheringill (Chairman), Edwin A. Gee,
Ph.D., and William M. Spencer, III. </FONT></P>




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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>11 </FONT></P>

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<BR>




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<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AUDIT COMMITTEE REPORT</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Audit Committee is composed of
three independent directors, and is responsible for overseeing the Company&#146;s
financial reporting process on behalf of the Board of Directors. Management has the
primary responsibility for the financial statements and the reporting process, including
the system of internal controls. In fulfilling its oversight responsibilities, the
Committee reviewed the financial statements in the Annual Report on Form 10-K for the
year ended December 31, 2001 with management including a discussion of the quality, not
just the acceptability, of the accounting principles, the reasonableness of significant
judgments, and the clarity of disclosures in the financial statements.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Audit Committee reviewed with
the independent auditors, who are responsible for expressing an opinion on the conformity
of those audited financial statements with generally accepted accounting principles,
their judgments as to the quality, not just the acceptability, of the Company&#146;s
accounting principles and such other matters as are required to be discussed with the
Committee under generally accepted auditing standards. In addition, the Committee has
discussed with the independent auditors the auditors&#146; independence from management
and the Company including the matters in the written disclosures required by Independence
Standards Board Standard No. 1, <I>Independence Discussions with Audit Committees. </I> The
Committee also considered the compatibility of nonaudit services with the auditors&#146; independence.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Committee discussed with the
Company&#146;s independent auditors the overall scope and plans for their audit. The
Committee meets with the independent auditors, with and without management present, to
discuss the results of their examination, their evaluation of the Company&#146;s internal
controls, and the overall quality of the Company&#146;s financial reporting.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In reliance on the reviews and
discussions referred to above, the Audit Committee recommended to the Board of Directors
that the audited financial statements be included in the Annual Report on Form 10-K for
the year ended December 31, 2001 for filing with the Securities and Exchange Commission.
The Committee and the Board have also approved the selection of Ernst &amp; Young LLP as
the Company&#146;s independent auditors.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This report is submitted by the
Audit Committee, consisting of William W. Featheringill (Chairman), Edwin A. Gee, Ph.D.,
and William M. Spencer, III. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Audit and Audit-Related
Fees</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The aggregate fees billed by Ernst
&amp; Young LLP for the audit of BioCryst&#146;s consolidated financial statements for the
year ended December 31, 2001, including review of the quarterly Form 10-Q&#146;s, were
$54,000, and other audit related fees were $2,500.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Financial Information
System Design and Implementation Fees</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>There were no fees billed by Ernst
&amp; Young LLP during the year 2001 for financial information system design and
implementation.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor" -->
<H2 ALIGN=LEFT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>All Other Fees</FONT></H2>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other non-audit services billed to
the Company by Ernst &amp; Young LLP were an aggregate of $1,170. The Audit Committee, in
conducting its review of auditor independence, considered whether the performance of
services by the independent accountants in addition to their audit services was
compatible with maintaining the independence of Ernst &amp; Young LLP as auditors.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>12 </FONT></P>

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<BR>


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<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PERFORMANCE GRAPH FOR
BIOCRYST <BR>Indexed Comparison Since 1996 </FONT></H1>


<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><IMG SRC="g50045_chart.gif" ALT="Performance Graph"></FONT></P>


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<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TH><TD>&nbsp;</TD>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Beginning<BR>Investment<BR>12/31/96</FONT></TH><TH>&nbsp;</TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><BR>Investment<BR>at<BR>12/31/97</FONT></TH><TH>&nbsp;</TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><BR>Investment<BR>at<BR>12/31/98</FONT></TH><TH>&nbsp;</TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><BR>Investment<BR>at<BR>12/31/99</FONT></TH><TH>&nbsp;</TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investment<BR>at<BR>12/31/00</FONT></TH><TH>&nbsp;</TH>
     <TH ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investment<BR>at<BR>12/31/01</FONT></TH><TH>&nbsp;</TH>
</TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="38%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">BioCryst Pharmaceuticals, Inc.</FONT></TD>
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$100.00</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;42.75</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;42.75</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$180.15</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;40.46</FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">$&nbsp;&nbsp;24.18</FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">The Nasdaq Stock Market</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.00</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">122.48</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">172.72</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">321.00</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">193.18</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">153.19</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Nasdaq Pharmaceutical Stocks</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">100.00</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">103.05</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">130.81</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">246.54</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">307.49</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">263.12</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>

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<P>_________________ </P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Performance Graph for BioCryst
measures the change in a $100 investment in the Company&#146;s common stock based on a
price of $16.375 on December 31, 1996 and its month-end closing price thereafter. BioCryst&#146;s
relative performance is then compared with the CRSP Total Return Indexes for The Nasdaq
Stock Market (US) and Nasdaq Pharmaceutical Stocks.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>13 </FONT></P>



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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table sets forth
information regarding beneficial ownership of the Company&#146;s Common Stock as of March
19, 2002 by (i)&nbsp;each director, (ii) each of the Named Executive Officers, (iii)&nbsp;all
directors and executive officers of the Company as a group and (iv)&nbsp;each person
known to the Company to be the beneficial owner of more than five percent of the Company&#146;s
Common Stock:  </FONT></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2" align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Name and Address</FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Amount and Nature<BR>Beneficial<BR>Ownership (1)</FONT></TH>
     <TH>&nbsp;</TH>
     <TH WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Percent<BR>of<BR>Class</FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TH></TR>
<TR>
     <TD><HR NOSHADE SIZE="1"></TD>
          <td>&nbsp;</TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></td>
          <td>&nbsp;</TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><HR NOSHADE SIZE="1"></td></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="66%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">William W. Featheringill</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2,793,171</FONT></TD>
     <TD WIDTH="4%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(2</FONT></TD>
        <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">15.8</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">%&nbsp;</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100 Brookwood Place, #410</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Birmingham, Alabama 35209</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">BVF Partners, LP</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1,755,900</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(3</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">10.0</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;227 West Monroe Street</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Suite 4800</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chicago, Illinois 60606</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Johnson &amp; Johnson Development Corporation</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">918,836</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(4</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5.2</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One Johnson &amp; Johnson Plaza</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New Brunswick, NJ 08933</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Charles E. Bugg, Ph.D.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">761,791</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(5</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4.1</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">William M. Spencer, III</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">576,025</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">3.3</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Joseph H. Sherrill, Jr.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">461,499</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(7</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.6</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">J. Claude Bennett, M.D.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">231,706</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(8</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.3</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">John A. Montgomery, Ph.D.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">197,105</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(9</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.1</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Randolph C. Steer, M.D., Ph.D.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">114,200</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(10</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">John R. Uhrin</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">89,679</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(11</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Zola P. Horovitz, Ph.D.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">67,916</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(12</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">W. Randall Pittman</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">44,713</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(13</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Edwin A. Gee, Ph.D.</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">50,000</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(12</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">*</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">All executive officers and directors as a group(11 persons)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">5,387,805</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(14</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD>
     <TD ALIGN="RIGHT" WIDTH="8%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">28.0</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2"></TD></TR>
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<P>_________________ </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(*) Less than one percent. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) Gives effect to the shares of
Common Stock issuable within 60 days after March 19, 2002 upon the exercise of all
options and other rights beneficially held by the indicated stockholder on that date.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) Includes 941,200 shares held by
a partnership of which he is a beneficial owner and 62,499 shares issuable upon exercise
of stock options.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) From Schedule 13G filed with the
Company on February 14, 2002, which states that BVF Partners, L.P. , along with its
affiliates, controls an aggregate of 1,755,900 shares. According to such schedule, BVF
Partners, L.P. and its affiliates have shared voting power with respect to 1,755,900
shares and shared dispositive power with respect to 1,755,900 shares. The names and
addresses of BVF Partners, L.P. affiliated companies may be found in the Schedule 13G
filed with the Securities and Exchange Commission on February 14, 2002.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) From Schedule 13G filed with the
Company on October 28, 1998, which states that Johnson and Johnson, along with its wholly
owned subsidiary Johnson and Johnson Development Corporation, control an aggregate of
918,836 shares. According to such schedule, they both have shared voting power with
respect to 918,836 shares and shared dispositive power with respect to 918,836 shares.  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>14 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) Includes 73,138 shares held by a
partnership of which he is a beneficial owner and 656,618 shares issuable upon exercise
of stock options.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) Includes 67,916 shares issuable
upon exercise of stock options and 10,000 shares held by Mr. Spencer&#146;s spouse. Mr.&nbsp;Spencer
disclaims beneficial ownership of the 10,000 shares held by his spouse.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) Includes 348,000 shares held in
a trust for his benefit by his father who serves as trustee with investment and voting
power, 62,499 shares issuable upon exercise of stock options, 10,000 shares which Mr.
Sherrill holds jointly with his spouse, 1,000 shares held by Mr. Sherrill&#146;s son and
10,000 shares held by Mr. Sherrill&#146;s spouse. Mr. Sherrill disclaims beneficial
ownership of the 11,000 shares held by his spouse and son.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8) Includes 214,955 shares issuable
upon exercise of stock options.. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9) Includes 140,520 shares issuable
upon exercise of stock options and 9,800 shares held by Dr. Montgomery&#146;s spouse. Dr.
Montgomery disclaims beneficial ownership of the 9,800 shares held by his spouse. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10) Includes 100,000 shares
issuable upon exercise of stock options. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(11) Includes 85,245 shares issuable
upon exercise of stock options. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(12) Represents shares issuable upon
exercise of stock options. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(13) Includes 39,300 shares issuable
upon exercise of stock options. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(14) See Notes (1) through (13). </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 16(a)
BENEFICIAL OWNERSHIP REPORTING COMPLIANCE</FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section 16(a) of the Securities
Exchange Act of 1934, as amended (the &#147;Act&#148;) requires the Company&#146;s
officers, directors and persons who beneficially own more than 10% of a registered class
of the Company&#146;s equity securities (collectively, &#147;Reporting Persons&#148;), to
file reports of ownership with the Securities and Exchange Commission. Reporting Persons
are required by the Act regulations to furnish the Company with copies of all Section
16(a) forms they file.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Based solely on its review of the
copies of such forms received by it, or written representations from certain Reporting
Persons that no Form 5s were required for those persons, the Company believes that during
2001 its Reporting Persons were in compliance with all applicable filing requirements.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTAIN TRANSACTIONS</FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dr. Bugg, an executive officer and
Director of the Company, is a Professor Emeritus of UAB and is paid an annual stipend of
$8,040 by UAB. The Company paid $176,434 to UAB in 2001 for conducting certain clinical
trials, research and data input.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dr. Montgomery, a Director and
formerly an executive officer of the Company, is also a former executive officer of SRI.
The Company paid $40,726 to SRI in 2001 for certain research, laboratory rental and
supplies. Dr. Montgomery is currently a Distinguished Scientist at SRI and was paid
$2,725 by SRI in 2001 for various consulting services and $81,257 in royalties, both
unrelated to the services performed by SRI for the Company.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>15 </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>




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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Johnson &amp; Johnson Development
Corporation owns 918,836 shares of our Common Stock, which represents 5.2% of our Common
Stock. Johnson &amp; Johnson Development Corporation, The R.W. Johnson Pharmaceutical
Research Institute (&#147;RWJPRI&#148;) and Ortho-McNeil Pharmaceutical, Inc. (&#147;Ortho-McNeil&#148;)
are all Johnson &amp; Johnson  companies. In September&nbsp;1998,
the Company entered into an exclusive worldwide license agreement with RWJPRI and
Ortho-McNeil to develop and market our proprietary influenza neuraminidase inhibitors.
The Company received an initial $6.0 million payment from Ortho-McNeil and an additional
$6.0&nbsp;million common stock equity investment from Johnson&nbsp;&amp; Johnson
Development Corporation. In June 1999, we received a $2.0 million milestone payment from
Ortho-McNeil in connection with the initiation of Phase&nbsp;II clinical testing in the
United States and, in February 2000, the Company received a $4.0 million milestone
payment from RWJPRI in connection with the initiation of Phase III clinical testing. The
Company also received $0 in 2001, $787,865 in 2000 and $499,680 in 1999 for various
projects the Company performed for RWJPRI. Termination of this agreement by RWJPRI and
Ortho-McNeil was final on September 21, 2001, and all rights to our drug candidate,
peramivir, and all other potential compounds were returned to the Company.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INDEPENDENT AUDITORS</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The principal independent public
accounting firm used by the Company during the fiscal year ended December 31, 2001 was
Ernst &amp; Young LLP. It is currently anticipated that Ernst &amp; Young LLP will be
retained as the principal accounting firm to be used by the Company throughout the fiscal
year ending December 31, 2002. The Company anticipates that a representative of Ernst
&amp; Young LLP will attend the Meeting for the purpose of responding to appropriate
questions. At the Meeting, this representative will be afforded an opportunity to make a
statement if he or she so desires.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>STOCKHOLDER PROPOSALS</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proposals of stockholders intended
to be presented at the Company&#146;s 2003 Annual Meeting of Stockholders must be
received by the Company by December 5, 2002 to be considered for inclusion in the Company&#146;s
proxy statement relating to such meeting.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A stockholder must notify the
Company before February 18, 2003 of a proposal for the 2003 Annual Meeting which the
stockholder intends to present other than by inclusion in the Company&#146;s proxy
material. If the Company does not receive such notice prior to February 18, 2003, proxies
solicited by the Board of Directors of the Company will confer discretionary authority
upon the proxies for the Board of Directors of the Company to vote upon any such matter.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OTHER MATTERS</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Management does not intend to
present to the Meeting any matters other than those previously mentioned herein and does
not presently know of any matters that will be presented by other parties. If other
matters should properly come before the Meeting it is intended that the holders of the
proxies will act in respect thereto and in accordance with their best judgment.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>GENERAL INFORMATION</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A copy of the Company&#146;s Annual
Report on Form 10-K for the year ended December 31, 2001 was mailed with this Proxy
Statement. If you did not receive a copy, you may obtain one without charge from W.
Randall Pittman, the Chief Financial Officer and Secretary of the Company.  </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<BR>BY ORDER OF THE BOARD OF DIRECTORS<BR>
W. Randall Pittman, Secretary</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Begin" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">Birmingham, Alabama<BR>
April 3, 2002</FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>16 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>




<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 12; page: 12" -->

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BioCryst Pharmaceuticals, Inc. </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">THE BOARD OF DIRECTORS RECOMMENDS A
VOTE <B>FOR</B> ALL NOMINEES FOR DIRECTOR</FONT></FONT> </P>

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</TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">1.</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="32%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">ELECTION OF DIRECTORS<BR>(for terms as described in the Proxy Statement of the Company relating to the 2002 Annual Meeting.)</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">For<BR>All<BR><BR><BR>[&nbsp;]</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Withhold<BR>All<BR><BR><BR>[&nbsp;]</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">For All<BR>Except<BR><BR><BR>[&nbsp;]</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="29%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">To withhold authority to vote, mark &#147;For ALL Except&#148; and write the nominee&#146;s number on the line below </FONT> <BR><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;</TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Nominees:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>01)William W. Featheringill
<BR>02) Joseph H. Sherrill, Jr.
<BR>03) William M. Spencer, III </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="2">THE BOARD OF DIRECTORS RECOMMENDS A
VOTE <B>FOR</B> THE AMENDMENTS TO THE EMPLOYEE STOCK PURCHASE PLAN</FONT></FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Width End" -->
</TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH="600" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN=TOP>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.</FONT></TD>
<TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH="76%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
AMENDMENTS TO THE COMPANY&#146;S EMPLOYEE STOCK PURCHASE PLAN <BR>
(as described in the Proxy Statement of the Company relating to the 2002
Annual Meeting.)</FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">For<BR><BR>[&nbsp;]</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Against<BR><BR>[&nbsp;]</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Abstain<BR><BR>[&nbsp;]</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Hang Arabic 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
their discretion, upon such other matters as may properly come before the meeting. </FONT></TD>
</TR>
</TABLE>
<BR>


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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNLESS OTHERWISE SPECIFIED,
THIS PROXY WILL BE VOTED FOR THE ELECTION OF THE PERSONS NOMINATED BY MANAGEMENT
AS DIRECTORS AND FOR THE AMENDMENTS TO THE EMPLOYEE STOCK PURCHASE PLAN. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Note: Please date and sign
exactly as your name appears on the envelope in which this material was mailed.
If shares are held jointly, each stockholder should sign. Executors,
administrators, trustees, etc. should use full title and if more than one, all
should sign. If a stockholder is a corporation, please sign full corporate name
by an authorized officer. </FONT></P>

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</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH>
     <TH COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"></FONT></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="48%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">SIGNATURE__________________DATE_____</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="48%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">SIGNATURE__________________DATE_____</FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BIOCRYST
PHARMACEUTICALS, INC.</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PROXY FOR
ANNUAL MEETING OF STOCKHOLDERS &#150; MAY 15, 2002</FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(This Proxy
is Solicited by the Board of Directors)</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The undersigned stockholder
of BioCryst Pharmaceuticals, Inc. hereby appoints Charles E. Bugg and W. Randall
Pittman, and each of them, with full power of substitution, proxies to vote the
shares of stock which the undersigned could vote if personally present at the
Annual Meeting of Stockholders of BioCryst Pharmaceuticals, Inc., to be held at
the Harbert Center, 2019 Fourth Avenue North, Birmingham, Alabama, on May 15,
2002, at 3:00 P.M., Central Daylight Time, or any adjournment thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(To be
Signed on Reverse Side)</FONT></H1>


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`
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