<SUBMISSION>
<ACCESSION-NUMBER>0000891554-02-003926
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20020614
<ITEMS>5
<ITEMS>7
<FILING-DATE>20020617
<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>8-K
<ACT>34
<FILE-NUMBER>000-23186
<FILM-NUMBER>02680761
</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>8-K
<SEQUENCE>1
<FILENAME>d50893_8k.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
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     <TITLE>Form 8-K</TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECURITIES
AND EXCHANGE COMMISSION</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Washington,
D.C. 20549</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 8-K</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CURRENT
REPORT</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to
Section 13 or 15(d) of the<BR>
Securities Exchange Act of 1934</FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date of Report (Date of earliest event reported)&nbsp;&nbsp;June 14, 2002</FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>BioCryst
Pharmaceuticals, Inc.<BR>(Exact name of registrant as specified in charter)  </FONT></P>

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Delaware <BR>
(State of incorporation or organization)
</FONT></TD>
<TD ALIGN=CENTER WIDTH=34%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
000-23186 <BR>
(Commission File Number)
</FONT></TD>
<TD ALIGN=CENTER WIDTH=33%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
62-1413174 <BR>
(IRS Employer Identification No.)
</FONT></TD>
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<TD ALIGN="LEFT" WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
2190 Parkway Lake Drive; Birmingham, Alabama<BR>
(Address of principal executive offices)
</FONT></TD>
<TD ALIGN="RIGHT" WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
35244&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
(Zip Code)
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Registrant&#146;s telephone number, including area code&nbsp;&nbsp;(205) 444-4617</FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>None<BR>
(Former name or former address, if changed since last report)
</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 5. <I>Other Events</I>.</FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June 14, 2002, the board of directors of BioCryst Pharmaceuticals, Inc. (the
&#147;Company&#148;) declared a dividend of one preferred share purchase right
for each outstanding share of its common stock. The dividend is payable on June
24, 2002 to the stockholders of record at the close of business on that date.
Each right entitles the registered holder to purchase from the Company a unit of
one one-thousandth of a share of its Series B Junior Participating preferred
stock (the &#147;Series B preferred stock&#148;), at a price of $26.00 per unit.
The description and terms of the rights are set forth in a Rights Agreement,
dated as of June 17, 2002 (the &#147;Rights Agreement&#148;), between the
Company and American Stock Transfer &amp; Trust Company, as rights agent. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
the earlier to occur of (1) the close of business on the tenth day after a
public announcement that a person or group of affiliated or associated persons
has acquired beneficial ownership of 15% or more of the outstanding common stock
or (2)&nbsp;the close of business on the tenth day (or such later date as may be
determined by action of the Company&#146;s board of directors prior to such time
as any person becomes an acquiring person) following the commencement of, or
announcement of an intention to make, a tender offer or exchange offer the
consummation of which would result in the beneficial ownership by a person or
group of 15% or more of the outstanding common stock (the earlier of such dates
being called the distribution date), the rights will be evidenced by the
Company&#146;s common stock certificates. The rights agreement specifically
provides that William W. Featheringill, a Director who currently beneficially
owns more than 15% of the outstanding common stock, may acquire up to, but not
exceeding, 19.9%, on a beneficial ownership basis, of the Company&#146;s common
stock (measured at the time he acquires common stock) without triggering the
exercisability of the Rights. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
rights agreement provides that, until the distribution date, the rights will be
transferred with and only with the common stock. Until the distribution date (or
earlier redemption or expiration of the rights), new common stock certificates
issued after the record date, upon transfer or new issuance of common stock will
contain a notation incorporating the rights agreement by reference. Until the
distribution date (or earlier redemption or expiration of the rights), the
surrender for transfer of any certificates of common stock will also constitute
the transfer of the rights associated with the common stock represented by such
certificate. As soon as practicable following the distribution date, separate
certificates evidencing the rights will be mailed to holders of record of the
common stock as of the close of business on the distribution date and such
separate rights certificates alone will evidence the rights. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
rights are not exercisable until the distribution date. The rights will expire
at the close of business on June 24, 2012 unless that final expiration date is
extended or unless the rights are earlier redeemed or exchanged by the company. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
purchase price payable, and the number of units of Series B preferred stock or
other securities or property issuable, upon exercise of the rights are subject
to adjustment from time to time to prevent dilution (1) in the event of a stock
dividend on, or a subdivision, combination or reclassification of, the Series B
preferred stock, (2) upon the grant to holders of the units of Series B
preferred stock of certain rights or warrants to subscribe for or purchase units
of Series B preferred stock at a price, or securities convertible into units of
Series B preferred stock with a conversion price, less than the then current
market price of the units of Series B preferred stock or (3) upon the
distribution to holders of the units of Series B preferred stock of evidences of
indebtedness or assets (excluding regular periodic cash dividends paid out of
earnings or retained earnings or dividends payable in units of Series B
preferred stock) or of subscription rights or warrants (other than those
referred to above). </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
number of outstanding rights and the number of units of Series B preferred stock
issuable upon exercise of each right are also subject to adjustment in the event
of a stock split of the common stock or a stock dividend on the common stock
payable in common stock or subdivisions, consolidations or combinations of the
common stock occurring, in any such case, prior to the distribution date. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
of Series B preferred stock purchasable upon exercise of the rights will not be
redeemable. Each share of Series B preferred stock will be entitled to a
dividend of 1,000 times the dividend declared per share of common stock. In the
event of liquidation, each share of Series B preferred stock will be entitled to
a payment of 1,000 times the payment made per share of common stock. Each share
of Series B preferred stock will have 1,000 votes, voting together with the
common stock. Finally, in the event of any merger, consolidation or other
transaction in which shares of common stock are exchanged, each share of Series
B preferred stock will be entitled to receive 1,000&nbsp;times the amount
received per share of common stock. These rights are protected by customary
anti-dilution provisions. </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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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because
of the nature of the dividend, liquidation and voting rights, the value of each
unit of Series B preferred stock purchasable upon exercise of each right should
approximate the value of one share of common stock. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,
after the rights become exercisable, the company is acquired in a merger or
other business combination transaction with an acquiring person or one of its
affiliates, or 50% or more of its consolidated assets or earning power are sold
to an acquiring person or one of its affiliates, proper provision will be made
so that each holder of a right will thereafter have the right to receive, upon
exercise thereof at the then current exercise price of the right, that number of
shares of common stock of the acquiring company which at the time of such
transaction has a market value of two times the exercise price of the right. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any person or group of affiliated or associated persons becomes the beneficial
owner of 15% or more of the outstanding shares of common stock, proper provision
will be made so that each holder of a right, other than rights beneficially
owned by the acquiring person (which will thereafter be void), will have the
right to receive upon exercise that number of shares of common stock or units of
Series B preferred stock (or cash, other securities or property) having a market
value of two times the exercise price of the right. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
any time after the acquisition by a person or group of affiliated or associated
persons of beneficial ownership of 15% or more of the outstanding shares of
common stock and prior to the acquisition by such person or group of 50% or more
of the outstanding common stock, the board of directors of the company may
exchange the rights (other than rights owned by such person or group which have
become void), in whole or in part, at an exchange ratio per unit of Series B
preferred stock equal to the purchase price divided by the then current market
price per unit of Series B preferred stock on the earlier of (1)&nbsp;the date
on which any person becomes an acquiring person and (2)&nbsp;the date on which a
tender or exchange offer is announced which, if consummated, would result in the
offeror being the beneficial owner of 15% or more of the shares of common stock
then outstanding. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
certain exceptions, no adjustment in the purchase price will be required until
cumulative adjustments require an adjustment of at least 1% in the purchase
price.&nbsp; No fractional shares of Series B preferred stock will be issued
(other than fractions which are integral multiples of one one-thousandth of a
share of Series B preferred stock, which may, at the election of the company, be
evidenced by depositary receipts) and, in lieu thereof, an adjustment in cash
will be made based on the market price per unit of Series B preferred stock on
the last trading day prior to the date of exercise. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
any time on or prior to the earlier of (1) the close of business on the tenth
day after a public announcement that a person or group of affiliated or
associated persons acquire beneficial ownership of 15% or more of the
outstanding common stock (unless the board of directors extends the ten-day
period) or (2) the close of business on the tenth day after a person commences,
or announces its intention to commence, a tender offer or exchange offer that
would result in the bidder&#146;s beneficial ownership of 15% or more of the
shares of common stock, the board of directors of the company may redeem the
rights in whole, but not in part, at a price of $0.01 per right. The redemption
of the rights may be made effective at such time on such basis and with such
conditions as the board of directors in its sole discretion may establish.
Immediately upon any redemption of the rights, the right to exercise the rights
will terminate and the only right of the holders of rights will be to receive
the redemption price. The rights are also redeemable under other circumstances
as specified in the rights agreement. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
terms of the rights may be amended by the board of directors of the company
without the consent of the holders of the rights except that from and after the
earlier of a distribution date or such time as a person or group of affiliated
or associated persons has acquired beneficial ownership of 15% or more of the
outstanding common stock, no amendment may adversely affect the interests of the
holders of the rights. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
a right is exercised, the holder of a right will have no rights by virtue of
ownership as a stockholder of the company, including, without limitation, the
right to vote or to receive dividends. </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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<BR>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
rights have certain anti-takeover effects. The rights will cause substantial
dilution to a person or group that attempts to acquire the company on terms not
approved by the company&#146;s board of directors, except pursuant to an offer
conditioned on a substantial number of rights being acquired. The rights should
not interfere with any merger or other business combination approved by the
board of directors since the rights may be redeemed by the company at the
redemption price prior to the occurrence of a distribution date. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Rights Agreement, specifying the terms of the rights, is attached hereto as an
exhibit and is incorporated herein by reference. The foregoing description of
the rights is qualified in its entirety by reference to such exhibit. The
Certificate of Designation for the Series B preferred stock is attached as an
exhibit. This description of the Series B preferred stock is qualified in its
entirety by reference to that exhibit. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 7. <I>Financial Statements and Exhibits</I>.</FONT></P>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 4</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=87%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rights
Agreement, dated as of June 17, 2002, between the company and American Stock Transfer
&amp; Trust Company, which includes the form of Certificate of Designation for the Series
B junior participating preferred stock as Exhibit&nbsp;A, the form of Rights Certificate
as Exhibit B and the Summary of Rights to Purchase Series B Preferred Stock as Exhibit C.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 20.1</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=87%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Press Release dated June 17, 2002.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 20.2</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=87%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form
of Letter to Stockholders of BioCryst Pharmaceuticals, Inc. regarding the adoption of the
Rights Plan pursuant to the Rights Agreement. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>3.</FONT></P>

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</TD>
</TR>
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<BR>

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

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of Section&nbsp;12 of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized. </FONT></P>

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<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR><BR><BR>Date: June 17, 2002</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>
BioCryst Pharmaceuticals, Inc.
<BR><BR><BR>
By:  /s/ W. Randall Pittman<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name: W. Randall Pittman<BR>
Title: Chief Financial Officer, Treasurer and Secretary<BR>
</FONT></TD>
</TR>
</TABLE>
<BR>

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

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT INDEX</FONT></H1>

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</TD>
</TR>
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<BR>

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<TR VALIGN=BOTTOM>
<TD WIDTH=10% ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit<BR>Number</B></FONT><HR SIZE=1 NOSHADE WIDTH="71%"></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=87% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Document Description</B></FONT><HR SIZE=1 NOSHADE WIDTH="24%"></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%><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=87%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rights
Agreement, dated as of June 17, 2002, between the company and American Stock Transfer
&amp; Trust Company, which includes the form of Certificate of Designation for the Series
B junior participating preferred stock as Exhibit&nbsp;A, the form of Rights Certificate
as Exhibit B and the Summary of Rights to Purchase Series B Preferred Stock as Exhibit C.  </FONT></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20.1</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=87%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Press Release dated June 17, 2002.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20.2</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=87%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form
of Letter to Stockholders of BioCryst Pharmaceuticals, Inc. regarding the adoption of the
Rights Plan pursuant to the Rights Agreement. </FONT></TD>
</TR>
</TABLE>
<BR>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4
<SEQUENCE>3
<FILENAME>d50893_ex4.htm
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     <TITLE>Exhibit 4</TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RIGHTS
AGREEMENT</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>by and between</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BIOCRYST
PHARMACEUTICALS, INC.</FONT></H1>

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

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AMERICAN STOCK
TRANSFER &amp; TRUST COMPANY,</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>as Rights
Agent</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated as of</FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>June 17, 2002</FONT></H1>

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

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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Page</B></FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;1.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec01">Certain Definitions</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;2.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec02">Appointment of Rights Agent</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;3.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec03">Issue of Rights Certificates</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;4.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec04">Form of Rights Certificates</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;5.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec05">Countersignature and Registration</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Section&nbsp;6.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec06">Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>9</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;7.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec07">Exercise of Rights; Purchase Price; Expiration Date of Rights</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;8.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec08">Cancellation and Destruction of Rights Certificates</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;9.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec09">Reservation and Availability of Preferred Stock</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;10.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec10">Preferred Stock Record Date</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;11.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec11">Adjustment of Purchase Price, Number of Shares or Number of Rights</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;12.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec12">Certificate of Adjusted Purchase Price or Number of Shares</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;13.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec13">Consolidation, Merger or Sale or Transfer of Assets or Earning Power</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;14.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec14">Fractional Rights and Fractional Shares</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;15.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec15">Rights of Action</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;16.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec16">Agreement of Rights Holders</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;17.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec17">Rights Certificate Holder Not Deemed a Stockholder</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;18.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec18">Concerning the Rights Agent</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;19.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec19">Merger or Consolidation or Change of Name of Rights Agent</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;20.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec20">Duties of Rights Agent</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;21.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec21">Change of Rights Agent</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;22.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec22">Issuance of New Rights Certificates</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;23.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec23">Redemption and Termination</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31</FONT></TD>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>i.</FONT></P>

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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;24.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec24">Exchange</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;25.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec25">Notice of Certain Events</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;26.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec26">Notices</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;27.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec27">Supplements and Amendments</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;28.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec28">Successors</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35</FONT></TD>
</TR>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;29.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec29">Determinations and Actions by the Board of Directors</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35</FONT></TD>
</TR>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;30.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec30">Benefits of this Agreement</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36</FONT></TD>
</TR>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;31.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec31">Severability</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36</FONT></TD>
</TR>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;32.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec32">Governing Law</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36</FONT></TD>
</TR>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;33.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec33">Counterparts</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36</FONT></TD>
</TR>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Section&nbsp;34.</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#Sec34">Descriptive Headings</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36</FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBITS</FONT></P>

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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit&nbsp;A</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#EXa">Form of Certificate of Designation of Series B Junior Participating Preferred Stock</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit&nbsp;B</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#EXb">Form of Rights Certificate</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
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     <TD ALIGN=LEFT WIDTH=12%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit&nbsp;C</FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><A HREF="#EXc">Summary of Rights to Purchase Shares of Series B Preferred Stock</A></FONT></TD>
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT WIDTH=7%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>ii.</FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RIGHTS
AGREEMENT</FONT></H1>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
RIGHTS AGREEMENT, dated as of June&nbsp;17, 2002 (the
&#147;<I>Agreement</I>&#148;), is entered into by and between BioCryst
Pharmaceuticals, Inc., a Delaware corporation (the &#147;<I>Company</I>&#148;),
and American Stock Transfer &amp; Trust Company (the &#147;<I>Rights
Agent</I>&#148;). </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RECITALS:</FONT></H1>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
effective June&nbsp;14, 2002 (the &#147;<I>Rights Dividend Declaration
Date</I>&#148;), the board of directors of the Company authorized and declared a
distribution of one Right (each, a &#147;<I>Right</I>&#148;) for each share of
Common Stock (as hereinafter defined) of the Company outstanding as of the Close
of Business (as hereinafter defined) on June 24, 2002 (the &#147;<I>Record
Date</I>&#148;), each Right initially representing the right to purchase one
one-thousandth of a share (a &#147;<I>Unit</I>&#148;) of Preferred Stock (as
hereinafter defined) upon the terms and subject to the conditions in this
Agreement, and has further authorized and directed the issuance of one Right
with respect to each share of Common Stock of the Company that shall become
outstanding between the Record Date and the earliest of the Distribution Date,
the Redemption Date and the Final Expiration Date (as such terms are hereinafter
defined). </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>AGREEMENT:</FONT></H1>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the foregoing and the mutual agreements herein
set forth, the parties hereto, intending to be legally bound, hereby agree as
follows: </FONT></P>

<A NAME="Sec01"></A>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <I>Certain Definitions</I>. For purposes of this Agreement, the following terms have the meanings indicated:</FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Acquiring
Person&#148; shall mean&nbsp;any Person (as such term is hereinafter defined)
who or which, together with all Affiliates and Associates (as such terms are
hereinafter defined) of such Person, shall be the Beneficial Owner (as such term
is hereinafter defined) of 15% or more of the shares of Common Stock of the
Company then outstanding, but shall not include (1)&nbsp;the Company, any
Subsidiary (as such term is hereinafter defined) of the Company, any employee
benefit plan of the Company or any Subsidiary of the Company, or any entity
holding shares of Common Stock of the Company for or pursuant to the terms of
any such plan, or (2)&nbsp;William W. Featheringill (the &#147;Permitted
Investor&#148;), or any of his Affiliates or Associates (collectively with the
Permitted Investor, the &#147;Investor Group&#148;) to the extent that the
members of the Investor Group shall become the Beneficial Owner of, in the
aggregate, up to, but not exceeding, 19.9% of the shares of Common Stock of the
Company then outstanding. Notwithstanding the foregoing: </FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
no Person shall become an &#147;Acquiring Person&#148; as the result of an acquisition of
shares of Common Stock by the Company which, by reducing the number of shares
outstanding, increases the proportionate number of shares beneficially owned by such
Person to 15% or more of the shares of Common Stock of the Company then outstanding; (or,
in the case of the Investor Group, more than 19.9% of the shares of Common Stock of the
Company then outstanding); <I>provided, however</I>, that if a Person shall become the
Beneficial Owner of 15% or more of the shares of Common Stock of the Company then
outstanding (or, in the case of the Investor Group, more than 19.9% of the shares of
Common Stock of the Company then outstanding) as a result of any such acquisition of
shares of Common Stock by the Company and shall, after such acquisition of shares by the
Company, become the Beneficial Owner of any additional shares of Common Stock of the
Company (other than as a result of a stock dividend, stock split or similar transaction
effected by the Company in which all holders of Common Stock of the Company are treated
equally) (or, in the case of the members of the Investor Group, become the Beneficial
Owner of any additional shares of Common Stock of the Company), then such Person shall be
deemed to be an &#147;Acquiring Person&#148; hereunder; and </FONT></TD>
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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=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
if the board of directors of the Company determines in good faith that a Person who would
otherwise be an &#147;Acquiring Person&#148; as defined pursuant to the provisions of
subparagraph (i), has become such inadvertently, and such Person divests as promptly as
practicable a sufficient number of shares of Common Stock of the Company so that such
Person would no longer be an &#147;Acquiring Person, then such Person shall not be deemed
to be an &#147;Acquiring Person&#148; for any purpose of this Agreement. </FONT></TD>
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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Adjustment
Shares</I>&#148; shall have the meaning set forth in Section&nbsp;11(a)(ii)
hereof. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Affiliate</I>&#148;
and &#147;<I>Associate</I>&#148; shall have the respective meanings ascribed to
such terms in Rule 12b-2 of the Exchange Act Regulations (as hereinafter
defined) as in effect on the date of this Agreement. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Person shall be deemed the &#147;<I>Beneficial Owner</I>&#148; of, and shall be
deemed to &#147;<I>beneficially own</I>,&#148; any securities: </FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
which such Person or any of such Person&#146;s Affiliates or Associates beneficially
owns, directly or indirectly, for purposes of Section 13(d) of the Exchange Act (as
hereinafter defined) and Rule 13d-3 thereunder (or any comparable or successor law or
regulation); or </FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
which such Person or any of such Person&#146;s Affiliates or Associates, directly or
indirectly, has (A)&nbsp;the right to acquire (whether such right is exercisable
immediately, contingently or only after the passage of time) pursuant to any agreement,
arrangement or understanding (whether or not in writing, other than customary agreements
with and between underwriters and selling group members with respect to a bona fide
public offering of securities), or upon the exercise of conversion rights, exchange
rights, other rights, warrants or options (in each case, other than the Rights), or
otherwise; <I>provided, however</I>, that a Person shall not be deemed the Beneficial
Owner of, or to beneficially own, securities tendered pursuant to a tender or exchange
offer made by or on behalf of such Person or any of such Person&#146;s Affiliates or
Associates until such tendered securities are accepted for purchase or exchange; or (B)&nbsp;the
right to vote pursuant to any agreement, arrangement or understanding; <I>provided
further, however</I>, that a Person shall not be deemed the &#147;Beneficial Owner&#148; of,
or to &#147;beneficially own,&#148; any security under this subparagraph (ii) as a result
of any agreement, arrangement or understanding to vote such security if such agreement,
arrangement or understanding: (x) arises solely from a revocable proxy given in response
to a public proxy or consent solicitation made pursuant to, and in accordance with, the
applicable provisions of the Exchange Act and the Exchange Act Regulations, and (y)&nbsp;is
not reportable by such Person on Schedule 13D under the Exchange Act (or any comparable
or successor report); or </FONT></TD>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>2.</FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
which are beneficially owned, directly or indirectly, by any other Person (or any
Affiliate or Associate thereof) with which such first-mentioned Person (or any of such
first-mentioned Person&#146;s Affiliates or Associates) has any agreement, arrangement or
understanding (whether or not in writing, other than customary agreements with and
between underwriters and selling group members with respect to a bona fide public
offering of securities), for the purpose of acquiring, holding, voting (except to the
extent contemplated by the proviso to clause (B) of subparagraph (ii) above) or disposing
of any securities of the Company; <I>provided, however</I>, that in no case shall any
officer or director of the Company be deemed (A) the Beneficial Owner of any securities
beneficially owned by another officer or director of the Company solely by reason of
actions undertaken by such persons in their capacity as officers or directors of the
Company or (B) the Beneficial Owner of securities held of record by the trustee of any
employee benefit plan of the Company or any Subsidiary of the Company for the benefit of
any employee of the Company or any Subsidiary of the Company, other than such officer or
director, by reason of any influence that such officer or director may have over the
voting of the securities held in the plan. </FONT></TD>
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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Notwithstanding
anything in this definition of &#147;Beneficial Owner&#148; and
&#147;beneficially own&#148; to the contrary, the phrase &#147;<I>then
outstanding</I>,&#148; when used with reference to a Person who is the
Beneficial Owner of securities of the Company, shall mean the number of such
securities then issued and outstanding together with the number of such
securities not then actually issued and outstanding which such Person would be
deemed to beneficially own hereunder. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Business
Day</I>&#148; shall mean any day other than a Saturday, a Sunday, or a day on
which banking institutions in the States of Alabama or New York are authorized
or obligated by law or executive order to close. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Close
of Business</I>&#148; on any given date shall mean 5:00&nbsp;p.m., New York City
time, on such date; <I>provided</I>, <I>however</I>, that if such date is not a
Business Day it shall mean 5:00 p.m., New York City time, on the next succeeding
Business Day. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Common
Stock</I>&#148; when used with reference to the Company shall mean the shares of
Common Stock, par value $.01 per share, of the Company. &#147;Common Stock&#148;
when used with reference to any Person other than the Company shall mean the
capital stock (or other equity interest) with the greatest voting power of such
other Person or, if such other Person is a Subsidiary of another Person, the
Person or Persons which ultimately control such first-mentioned Person. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Company</I>&#148;
shall have the meaning set forth in the forepart of this Agreement; provided,
however, that &#147;Company&#148; shall also include any successors to the
Company as provided by Section 28 hereof. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>3.</FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Current
Per Share Market Price</I>&#148; shall have the meaning set forth in Section
11(d)(i) hereof. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Current
Value</I>&#148; shall have the meaning set forth in Section 11(a)(iii) hereof. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Distribution
Date</I>&#148; shall have the meaning set forth in Section&nbsp;3(a) hereof. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Equivalent
Preferred Stock</I>&#148; shall have the meaning set forth in Section 11(b)
hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Exchange
Act</I>&#148; shall mean the Securities Exchange Act of 1934, as amended, or any
successor statute. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Exchange
Act Regulations</I>&#148; shall mean the Rules and Regulations under the
Exchange Act, as amended from time to time (including any successor rules). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Expiration
Date</I>&#148; shall have the meaning set forth in Section&nbsp;7(a) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Final
Expiration Date</I>&#148; shall have the meaning set forth in Section&nbsp;7(a)
hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>NASDAQ</I>&#148;
shall have the meaning set forth in Section&nbsp;11(d) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Person</I>&#148; shall
be construed broadly and shall include any natural person, governmental
authority, corporation, general or limited partnership, limited liability
company, joint venture, trust, association, or unincorporated entity of any
kind, and shall include any successor (by merger or otherwise) of any such
entity. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Preferred
Stock</I>&#148; shall mean shares of Series B Junior Participating Preferred
Stock, par value $0.001 per share, of the Company, having the rights and
preferences set forth in the Form of Certificate of Designation attached to this
Agreement as <I>Exhibit&nbsp;A</I>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Preferred
Stock Equivalents</I>&#148; shall have the meaning set forth in
Section&nbsp;11(a)(iii) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Principal
Party</I>&#148; shall have the meaning set forth in Section 13(b) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Purchase
Price</I>&#148; shall have the meaning set forth in Section&nbsp;7(b) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Record
Date</I>&#148; shall have the meaning set forth in the recitals to this
Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Redemption
Date</I>&#148; shall have the meaning set forth in Section&nbsp;7(a) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Redemption Price</I>&#148;
shall have the meaning set forth in Section 23(a) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Right</I>&#148;
shall have the meaning set forth in the recitals to this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Rights
Agent</I>&#148; shall have the meaning set forth in the forepart of this
Agreement and shall include any Person that shall become a successor Rights
Agent pursuant to the terms of this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>4.</FONT></P>

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</TR>
</TABLE>
<BR>

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

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Rights
Certificate</I>&#148; shall have the meaning set forth in Section&nbsp;3(a)
hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Rights
Dividend Declaration Date</I>&#148; shall have the meaning set forth in the
recitals to this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Section
11(a)(ii) Event</I>&#148; shall mean any event described in Section
11(a)(ii)(A), (B) or (C) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Section
11(a)(iii) Trigger Date</I>&#148; shall have the meaning set forth in Section
11(a)(iii) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Section
13 Event</I>&#148; shall have the meaning set forth in Section 13(a) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Section&nbsp;24(a)
Exchange Ratio</I>&#148; shall have the meaning set forth in Section 24(a)
hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Securities
Act</I>&#148; shall mean the Securities Act of 1933, as amended, or any
successor statute. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Stock
Acquisition Date</I>&#148; shall mean the first date of public announcement
(which, for purposes of this definition, shall include, without limitation, a
report filed pursuant to Section&nbsp;13(d) of the Exchange Act) by the Company
or an Acquiring Person that an Acquiring Person has become such or such earlier
date as a majority of the Board of Directors of the Company shall become aware
of the existence of an Acquiring Person as confirmed by action of the Board of
Directors of the Company taken by the affirmative vote of a majority of the
Board of Directors of the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Spread</I>&#148;
shall have the meaning set forth in Section 11(a)(iii) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Subsidiary</I>&#148;
of any Person shall mean any corporation or other entity of which securities or
other ownership interests having ordinary voting power sufficient to elect a
majority of the board of directors of such corporation or other entity or other
persons performing similar functions are beneficially owned, directly or
indirectly, by such Person or by any corporation or other entity that is
otherwise controlled by such Person. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Summary
of Rights</I>&#148; shall have the meaning set forth in Section&nbsp;3(b)
hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Trading
Day</I>&#148; shall have the meaning set forth in Section 11(d)(i) hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Transfer
Tax</I>&#148; shall mean any tax or charge, including any documentary stamp tax,
imposed or collected by any governmental or regulatory authority in respect of
any transfer of any security, instrument or right, including the Rights, shares
of the Common Stock and shares of the Preferred Stock. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Triggering
Event</I>&#148; shall mean any Section 11(a)(ii) Event or any Section 13 Event. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<I>Unit</I>&#148;
shall have the meaning set forth in the recitals to this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>5.</FONT></P>

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</TR>
</TABLE>
<BR>

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<BR>

<A NAME="Sec02"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2. <I>Appointment of Rights Agent</I>. The Company hereby appoints the Rights
Agent to act as agent for the Company in accordance with the terms and
conditions of this Agreement, and the Rights Agent hereby accepts such
appointment. The Company may from time to time appoint co-Rights Agents as it
may deem necessary or desirable upon ten days&#146; prior written notice to the
Rights Agent and any other co-Rights Agents. The Rights Agent shall have no duty
to supervise, and in no event shall be liable for, the acts or omissions of any
such co-Rights Agent. </FONT></P>

<A NAME="Sec03"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3. <I>Issue of Rights Certificates</I>.&nbsp;&nbsp;(a)
Until the earlier of (i)&nbsp;the Close of Business on the tenth day after the
Stock Acquisition Date and (ii)&nbsp;the Close of Business on the tenth day (or
such later date as may be determined by action of the Company&#146;s board of
directors prior to such time as any Person becomes an Acquiring Person and of
which later date the Company will give the Rights Agent prompt written notice)
after the date that a tender or exchange offer by any Person (other than the
Company, any Subsidiary of the Company, any employee benefit plan of the Company
or of any Subsidiary of the Company or any Person holding shares of Common Stock
for or pursuant to the terms of any such plan) is commenced within the meaning
of Rule&nbsp;14d-2(a) of the Exchange Act Regulations or after the first public
announcement of the intention of any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or of any
Subsidiary of the Company or any Person holding shares of Common Stock for or
pursuant to the terms of any such plan) to commence a tender or exchange offer,
if upon consummation thereof such Person would be the Beneficial Owner of 15% or
more of the shares of Common Stock of the Company then outstanding (the earlier
to occur of the events described in (i) and (ii) above being the
&#147;<I>Distribution Date</I>&#148;), (x)&nbsp;the Rights will be evidenced
(subject to the provisions of Section 3(b) hereof) by the certificates for
shares of Common Stock of the Company registered in the names of the holders
thereof (which certificates shall also be deemed to be Rights Certificates) and
not by separate Rights Certificates, and (y) the right to receive Rights
Certificates will be transferable only in connection with the transfer of shares
of Common Stock of the Company. As soon as practicable after the Distribution
Date, the Company will notify the Rights Agent of the occurrence of the
Distribution Date and the Company will prepare and execute, the Rights Agent
will countersign, and the Company will send or cause to be sent (and the Rights
Agent will, if requested, and provided with all necessary information, send) by
first-class, insured, postage-prepaid mail, to each record holder of shares of
Common Stock of the Company as of the Close of Business on the Distribution
Date, at the address of such holder shown on the records of the Company, a
Rights Certificate, in substantially the form of <I>Exhibit B</I> (a
&#147;<I>Rights Certificate</I>&#148;), evidencing one Right for each share of
Common Stock so held.&nbsp; From and after the Distribution Date, the Rights
will be evidenced solely by such Rights Certificates. The Rights Agent shall
have no duty or obligation to take any action under any section of this
Agreement which requires the payment by a Rights holder of applicable taxes and
governmental charges unless and until the Rights Agent is satisfied that all
such taxes and/or charges have been paid. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
On the Record Date, or as soon as practicable thereafter, the Company will send
or cause to be sent a copy of a Summary of Rights to Purchase Preferred Stock,
in substantially the form of <I>Exhibit C</I> hereto (the &#147;<I>Summary of
Rights</I>&#148;), by first-class, postage-prepaid mail, to each record holder
of shares of Common Stock of the Company as of the Close of Business on the
Record Date, at the address of such holder shown on the records of the Company.
Until the earlier of the Distribution Date or the Expiration Date, the surrender
for transfer of any certificate for shares of Common Stock of the Company shall
also constitute the transfer of the Rights associated with the shares of Common
Stock represented thereby. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>6.</FONT></P>

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</TR>
</TABLE>
<BR>

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<BR>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Certificates evidencing shares of Common Stock of the Company which become
outstanding (whether originally issued or delivered from the Company&#146;s
treasury) or are otherwise transferred after the Record Date but prior to the
earlier of the Distribution Date and the Expiration Date shall have impressed
on, printed on, written on or otherwise affixed to them the following legend (or
such other legend as the Company may deem appropriate that is not inconsistent
with the provisions of this Agreement but which does not affect the rights,
duties or indemnities of the Rights Agent): </FONT></P>

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

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<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
This
certificate also evidences and entitles the holder hereof to certain rights as set forth
in a Rights Agreement between BioCryst Pharmaceuticals, Inc. and American Stock Transfer
&amp; Trust Company, dated as of June&nbsp;14, 2002 (the &#147;Rights Agreement&#148;),
the terms of which are hereby incorporated herein by reference and a copy of which is on
file at the principal executive offices of BioCryst Pharmaceuticals, Inc. Under certain
circumstances, as set forth in the Rights Agreement, such Rights will be evidenced by
separate certificates and will no longer be evidenced by this certificate. BioCryst
Pharmaceuticals, Inc. will mail to the holder of this certificate a copy of the Rights
Agreement without charge after receipt of a written request therefor.&nbsp;Under certain
circumstances, as set forth in the Rights Agreement (including, without limitation,
Section 7(e) thereof), Rights issued to or Beneficially Owned by Acquiring Persons or
their Affiliates or Associates (as such terms are defined in the Agreement) or any
subsequent holder of such Rights shall be null and void and may not be exercised by or
transferred to any Person. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>If
the Company purchases or acquires any shares of Common Stock of the Company
prior to the Distribution Date, any Rights associated with such shares of Common
Stock of the Company shall be deemed cancelled and retired so that the Company
shall not be entitled to exercise any Rights associated with any shares of
Common Stock of the Company which are no longer outstanding. </FONT></P>

<A NAME="Sec04"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2></FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4. <I>Form of Rights Certificates</I>.&nbsp;&nbsp;(a)
The Rights Certificates (and the forms of election to purchase Units of
Preferred Stock and of assignment to be printed on the reverse thereof) shall be
substantially the same as <I>Exhibit B</I> hereto and may have such marks of
identification or designation and such legends, summaries or endorsements
printed thereon as the Company may deem appropriate (but which do not affect the
rights, duties or immunities of the Rights Agent) and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto or with any
rule or regulation of any stock exchange or transaction reporting system on
which the Rights may from time to time be listed or traded, or to conform to
usage. Subject to the provisions of Sections&nbsp;11 and 22 hereof, the Rights
Certificates shall entitle the holders thereof to purchase the number of Units
as shall be set forth therein at the price per Unit set forth therein, but the
number of such Units and the Purchase Price shall be subject to adjustment as
provided herein. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>7.</FONT></P>

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<BR>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Any Rights Certificate issued pursuant to this Agreement that represents Rights
beneficially owned by: (i) an Acquiring Person or any Associate or Affiliate of
an Acquiring Person; (ii) a transferee of an Acquiring Person (or of any such
Associate or Affiliate) who becomes a transferee after the Acquiring Person
becomes such; or (iii) a transferee of an Acquiring Person (or of any such
Associate or Affiliate) that becomes a transferee prior to or concurrently with
the Acquiring Person becoming such and receives such Rights pursuant to either
(A) a transfer (whether or not for consideration) from the Acquiring Person to
holders of equity interests in such Acquiring Person or to any Person with whom
such Acquiring Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a transfer which the board of directors
of the Company has determined is part of a plan, arrangement or understanding
which has as a primary purpose or effect avoidance of Section 7(e), shall in
each case contain (to the extent the Rights Agent has notice thereof and to the
extent feasible) the following legend: </FONT></P>

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</TR>
</TABLE>
<BR>

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<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Rights represented by this Rights Certificate are or were beneficially owned by a Person
who was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person
(as such terms are defined in the Rights Agreement by and between BioCryst
Pharmaceuticals, Inc. and American Stock Transfer &amp; Trust Company, as Rights Agent,
dated as of June 14, 2002 (the &#147;Rights Agreement&#148;)). Accordingly, this Rights
Certificate and the Rights represented hereby may become null and void in the
circumstances specified in Section 7(e) of the Rights Agreement. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD>

<A NAME="Sec05"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
5. <I>Countersignature and Registration</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
The Rights Certificates shall be executed on behalf of the Company by any officer of the
Company, either manually or by facsimile signature, shall have affixed thereto the Company&#146;s
seal or a facsimile thereof, and shall be attested by the Secretary or an Assistant
Secretary of the Company, either manually or by facsimile signature. The Rights
Certificates shall be, either manually or by facsimile signature, countersigned by the
Rights Agent and shall not be valid for any purpose unless countersigned. In case any
officer of the Company who shall have signed any of the Rights Certificates shall cease
to be such officer of the Company before countersignature by the Rights Agent and
issuance and delivery by the Company, such Rights Certificates, nevertheless, may be
countersigned by the Rights Agent and issued and delivered by the Company with the same
force and effect as though the person who signed such Rights Certificates had not ceased
to be such officer of the Company. Any Rights Certificate may be signed on behalf of the
Company by any person who, at the actual date of the execution of such Rights
Certificate, shall be a proper officer of the Company to sign such Rights Certificate,
although at the date of this Agreement any such person was not such an officer. </FONT> </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>8.</FONT></P>

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</TR>
</TABLE>
<BR>

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<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Following the Distribution Date and receipt by the Rights Agent of notice
thereof, the Rights Agent will keep or cause to be kept, at its office
designated for such purpose, books for registration and transfer of the Rights
Certificates issued under this Agreement. Such books shall show the names and
addresses of the respective holders of the Rights Certificates, the number of
Rights evidenced on its face by each of the Rights Certificates and the date of
each of the Rights Certificates. </FONT></P>

<A NAME="Sec06"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
6. <I>Transfer, Split-Up, Combination and Exchange of Rights Certificates; Mutilated,
Destroyed, Lost or Stolen Rights Certificates</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
Subject to the provisions of Sections&nbsp;4(b), 7(e) and 14 hereof, at any time after
the Close of Business on the Distribution Date, and at or prior to the Close of Business
on the Expiration Date, any Rights Certificate or Rights Certificates (other than Rights
Certificates representing Rights that have become unexercisable pursuant to Section 7(e)
hereof or that have been exchanged pursuant to Section 24 hereof) may be transferred,
split up, combined or exchanged for another Rights Certificate or Rights Certificates
evidencing exercisable Rights, entitling the registered holder to purchase a like number
of Units of Preferred Stock (or, following a Triggering Event, other securities, cash or
other assets, as the case may be) as the Rights Certificate or Rights Certificates
surrendered then entitled such holder to purchase. Any registered holder desiring to
transfer, split up, combine or exchange any Rights Certificate or Rights Certificates
shall make such request in writing delivered to the Rights Agent, and shall surrender the
Rights Certificate or Rights Certificates to be transferred, split up, combined or
exchanged at the office of the Rights Agent designated for such purpose. Neither the
Rights Agent nor the Company shall be obligated to take any action whatsoever with
respect to the transfer of any such surrendered Rights Certificate or Rights Certificates
until the registered holder shall have properly completed and signed the certificate
contained in the form of assignment on the reverse side of such Rights Certificate or
Rights Certificates and shall have provided such additional evidence of the identity of
the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as
the Company or the Rights Agent shall reasonably request. Thereupon the Rights Agent
shall, subject to Sections 4(b), 7(e) and 14 hereof, countersign and deliver to the
Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be,
as so requested. The Company may require payment from the holders of Rights Certificates
of a sum sufficient to cover any Transfer Tax that may be imposed in connection with any
transfer, split up, combination or exchange of Rights Certificates. The Rights Agent
shall have no duty or obligation to take any action under any section of this Agreement
which requires the payment by a Rights holder of applicable taxes and governmental
charges unless and until the Rights Agent is satisfied that all such taxes and/or charges
have been paid. </FONT> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Upon receipt by the Company and the Rights Agent of evidence reasonably
satisfactory to them of the loss, theft, destruction or mutilation of a Rights
Certificate, and of indemnity or security satisfactory to them, and, at the
Company&#146;s request, reimbursement to the Company and the Rights Agent of all
reasonable expenses incidental thereto, and upon surrender to the Rights Agent
and cancellation of the Rights Certificate if mutilated, the Company will make
and deliver a new Rights Certificate of like tenor to the Rights Agent for
countersignature and delivery to the registered holder in lieu of the Rights
Certificate so lost, stolen, destroyed or mutilated. </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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<A NAME="Sec07"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
7. <I>Exercise of Rights; Purchase Price; Expiration Date of Rights</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
Prior to the Distribution Date, none of the Rights shall be exercisable. The registered
holder of any Rights Certificate evidencing exercisable Rights may exercise the Rights
evidenced thereby (except as otherwise provided in this Agreement) in whole or in part at
any time after the Distribution Date upon surrender of the Rights Certificate, with the
form of election to purchase and the related certification properly completed and duly
executed, to the Rights Agent at the office of the Rights Agent designated for such
purpose, together with payment of the Purchase Price for each Right being exercised (as
such amount may be reduced (including to zero) pursuant to Section 11(a)(iii)) and an
amount equal to any applicable Transfer Tax required to be paid by the holder of such
Rights Certificate in accordance with Section 9 hereof in cash, or by certified check,
wire transfer or bank draft payable to the order of the Company, at or prior to the
earliest of (i)&nbsp;the Close of Business on June 24, 2012 (the &#147;<I>Final
Expiration Date</I>&#148;), (ii)&nbsp;the time at which the Rights are redeemed as
provided in Section&nbsp;23 hereof (the &#147;<I>Redemption Date</I>&#148;), and (iii)&nbsp;the
time at which such Rights are exchanged as provided in Section 24 hereof (the earliest of
(i), (ii)&nbsp;and (iii)&nbsp;being the &#147;<I>Expiration Date</I>&#148;). </FONT> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
The &#147;<I>Purchase Price</I>&#148; for each Unit pursuant to the exercise of
a Right shall initially be $26.00, shall be subject to adjustment from time to
time as provided in Sections 11 and 13 hereof and shall be payable in lawful
money of the United States of America in accordance with paragraph (c) below. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Upon receipt of a Rights Certificate evidencing exercisable Rights (with the
form of election to purchase and certification properly completed and duly
executed) accompanied by payment as provided in Section 7(a) hereof, the Rights
Agent shall, subject to Section 20(k) hereof, thereupon promptly (i) (A)
requisition from any transfer agent of the Preferred Stock a certificate or
certificates for the number of Units to be purchased and the Company hereby
irrevocably authorizes its transfer agent to comply with all such requests, or
(B) if the Company shall have elected to deposit the total number of Units
issuable upon exercise of the Rights hereunder with a depositary agent,
requisition from the depositary agent a depositary receipt or depositary
receipts representing such number of Units as are to be purchased (in which case
certificates for the Units represented by such receipt or receipts shall be
deposited by the transfer agent with the depositary agent) and the Company
hereby directs the depositary agent to comply with such requests, (ii) when
appropriate, requisition from the Company the amount of cash to be paid in lieu
of issuance of fractional shares in accordance with Section 14 hereof, (iii)
after receipt of such certificates or depositary receipts, cause the same to be
delivered to or upon the order of the registered holder of such Rights
Certificate, registered in such name or names as may be designated by such
holder and (iv) when appropriate, after receipt thereof, deliver such cash to or
upon the order of the registered holder of such Rights Certificate. If the
Company is obligated to issue other securities of the Company, pay cash and/or
distribute other property pursuant to Section 11(a) hereof, the Company will
make all arrangements necessary so that such other securities, cash and/or other
property are available for distribution by the Rights Agent, if and when
necessary to comply with this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
If the registered holder of any Rights Certificate shall exercise less than all
the Rights evidenced thereby, a new Rights Certificate evidencing a number of
Rights equivalent to the number of Rights remaining unexercised shall be issued
by the Rights Agent to the registered holder of such Rights Certificate or to
such registered holder&#146;s duly authorized assigns, subject to Section 14
hereof. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>10.</FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
Notwithstanding anything in this Agreement to the contrary, from and after the
first occurrence of a Triggering Event, any Rights beneficially owned by (i) an
Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a
transferee of an Acquiring Person (or of any such Associate or Affiliate
thereof) who becomes a transferee after the Acquiring Person becomes such, (iii)
a transferee of an Acquiring Person (or of any such Associate or Affiliate
thereof) who becomes a transferee prior to or concurrently with the Acquiring
Person becoming such and receives such Rights pursuant to either (A) a transfer
(whether or not for consideration) from the Acquiring Person to holders of
equity interests in such Acquiring Person or to any Person with whom the
Acquiring Person has any continuing agreement, arrangement or understanding
regarding the transferred Rights or (B) a transfer which the board of directors
of the Company has determined is part of a plan, arrangement or understanding
which has as a primary purpose or effect the avoidance of this Section 7(e) or
(iv) any subsequent transferee, shall become null and void without any further
action and no holder of such Rights shall have any rights whatsoever with
respect to such Rights or any Rights Certificate which formerly evidenced such
Rights, and neither the Company nor the Rights Agent shall have any obligations
whatsoever with respect to such Rights or any Rights Certificate, whether under
any provision of this Agreement or otherwise. The Company shall use all
requisite commercially reasonable efforts to ensure that the provisions of
Section 4(b) and this Section 7(e) are complied with, but neither the Company
nor the Rights Agent shall have no liability to any holder of Rights
Certificates or to any other Person as a result of its making or failing to make
any determinations with respect to an Acquiring Person or any of such Acquiring
Person&#146;s Affiliates, Associates or transferees or taking or failing to take
any actions with respect to any Rights or Rights Certificates of any such
Person. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
Notwithstanding anything in this Agreement to the contrary, neither the Rights
Agent nor the Company shall be obligated to undertake any action with respect to
a registered holder upon the occurrence of any purported exercise as set forth
in this Section 7 unless such registered holder shall have (i) properly
completed and duly executed the certificate contained in the form of election to
purchase set forth on the reverse side of the Rights Certificate surrendered for
such exercise and (ii) provided such additional evidence of the identity of the
Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company or the Rights Agent shall reasonably request. </FONT></P>

<A NAME="Sec08"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8. <I>Cancellation and Destruction of Rights Certificates</I>. All Rights
Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or to any of its
agents, be delivered to the Rights Agent for cancellation or in cancelled form,
or, if surrendered to the Rights Agent, shall be cancelled by it, and no Rights
Certificates shall be issued in lieu thereof except as expressly permitted by
this Agreement. The Company shall deliver to the Rights Agent for cancellation
and retirement, and the Rights Agent shall so cancel and retire, any other
Rights Certificate purchased or acquired by the Company otherwise than upon the
exercise thereof. The Rights Agent shall deliver all cancelled Rights
Certificates to the Company, or shall, at the written request of the Company,
destroy such cancelled Rights Certificates, and in such case shall deliver a
certificate of destruction thereof to the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>11.</FONT></P>

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<A NAME="Sec09"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
9. <I>Reservation and Availability of Preferred Stock</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
The Company covenants and agrees that it will use commercially reasonable efforts to
cause to be reserved and kept available out of, and to the extent of, its authorized and
unissued Preferred Stock not reserved for another purpose, sufficient Preferred Stock to
permit the exercise in full of all outstanding Rights in accordance with this Agreement.
Upon the occurrence of any events resulting in an increase in the aggregate number of
shares of Preferred Stock (or other equity securities of the Company) issuable upon
exercise of all outstanding Rights above the number then reserved, the Company shall make
appropriate increases in the number of shares so reserved. </FONT> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(b)
If the Units of Preferred Stock to be issued and delivered upon the exercise of 6 0 the
Rights are at any time listed on a national securities exchange or included for quotation
on any transaction reporting system, the Company shall during the period from the
Distribution Date to the Expiration Date use commercially reasonable efforts to cause all
shares reserved for such issuance to be listed on such exchange or included for quotation
on any such transaction reporting system upon official notice of issuance upon such
exercise. </FONT> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(c)
The Company shall use commercially reasonable efforts to (i)&nbsp;file, as soon as
practicable following the earliest date after the first occurrence of a Section 11(a)(ii)
Event in which the consideration to be delivered by the Company upon exercise of the
Rights has been determined in accordance with Section 11(a)(iii) hereof, or as soon as is
required by law following the Distribution Date, as the case may be, a registration
statement under the Securities Act, with respect to the securities purchasable upon
exercise of the Rights on an appropriate form, (ii)&nbsp;cause such registration
statement to become effective as soon as reasonably practicable after such filing, and
(iii)&nbsp;cause such registration statement to remain effective (with a prospectus at
all times meeting the requirements of the Securities Act) until the earlier of (A)&nbsp;the
date as of which the Rights are no longer exercisable for such securities and (B)&nbsp;the
Expiration Date. The Company will also take such action as may be appropriate under, or
to ensure compliance with, the securities or &#147;blue sky&#148;laws of the various
states in connection with the exercisability of the Rights. Notwithstanding any provision
of this Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction, unless the requisite qualification of the offering made upon exercise of
the Rights in such jurisdiction shall have been obtained, or an exemption therefrom shall
be available and until a registration statement has been declared effective. </FONT> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(d)
The Company covenants and agrees that it will take all such action as may be necessary to
ensure that all Units of Preferred Stock (and, following the occurrence of a Triggering
Event, any other securities that may be delivered upon exercise of Rights) shall, at the
time of delivery of the certificates for such Units of Preferred Stock or other
securities and subject to payment of the Purchase Price, be duly and validly authorized
and issued and fully paid and non-assessable. </FONT> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>(e)
The Company further covenants and agrees that it will pay when due and payable any and
all United States federal and state Transfer Taxes which may be payable in respect of the
issuance or delivery of the Rights Certificates or of any Units (and, following the
occurrence of a Triggering Event, any other securities that may be delivered upon
exercise of Rights) upon the exercise of Rights. The Company shall not, however, be
required to pay any Transfer Taxes which may be payable in respect of any transfer or
delivery of Rights Certificates to a Person other than, or the issuance or delivery of
certificates or depositary receipts for Units in a name other than that of, the
registered holder of the Rights Certificate evidencing Rights surrendered for exercise or
to issue or to deliver any certificates or depositary receipts for Units (or any other
securities that may be delivered upon exercise of Rights) upon the exercise of any Rights
until any such Transfer Tax shall have been paid (any such Transfer Tax being payable by
the holder of such Rights Certificate at the time of surrender) or until it has been
established to the Company&#146;s or the Rights Agent&#146;s reasonable satisfaction that
no such Transfer Tax is due. </FONT> </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>12.</FONT></P>

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<A NAME="Sec10"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
10. <I>Preferred Stock Record Date</I>. Each Person in whose name any certificate for
Units (or, following the occurrence of a Triggering Event, other securities that may be
delivered upon exercise of Rights) is issued upon the exercise of Rights shall for all
purposes be deemed to have become the holder of record of the Units (or, following the
occurrence of a Triggering Event, other securities that may be delivered upon the
exercise of the Rights) represented thereby on, and such certificate shall be dated, at
the Close of Business on the date upon which the Rights Certificate evidencing such
Rights was duly surrendered and payment of the Purchase Price (and any applicable
Transfer Tax) was made; <I>provided</I>, <I>however</I>, that if the date of such
surrender and payment is a date upon which the Preferred Stock (or, following the
occurrence of a Triggering Event, other securities that may be delivered upon the
exercise of the Rights) transfer books of the Company are closed, such Person shall be
deemed to have become the record holder of such shares at the Close of Business on, and
such certificate shall be dated, the next succeeding Business Day on which such transfer
books are open; <I>provided further</I>, <I>however</I>, that if delivery of Units (or
following the occurrence of a Triggering Event, other securities that may be delivered
upon the exercise of the Rights) is delayed pursuant to Section&nbsp;9(c) hereof, such
Persons shall be deemed to have become the record holders of such Units (or following the
occurrence of a Triggering Event, other securities that may be delivered upon the
exercise of the Rights) only when such Units first become deliverable. Prior to the
exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not be
entitled to any rights of a stockholder of the Company with respect to securities for
which the Rights shall be exercisable, including, without limitation, the right to vote,
to receive dividends or other distributions or to exercise any preemptive rights, and
shall not be entitled to receive any notice of any proceedings of the Company, except as
expressly provided in this Agreement. </FONT> </FONT></P>

<A NAME="Sec11"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
11. <I>Adjustment of Purchase Price, Number of Shares or Number of Rights</I>.
The Purchase Price, the number and kinds of securities covered by each Right and
the number of Rights outstanding are subject to adjustment from time to time as
provided in this Section 11. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
(i)&nbsp;&nbsp;In the event the Company shall at any time after the date of this
Agreement (A)&nbsp;declare a dividend on the Preferred Stock payable in shares
of Preferred Stock, (B)&nbsp;subdivide the outstanding shares of Preferred
Stock, (C)&nbsp;combine the outstanding Preferred Stock into a smaller number of
shares Preferred Stock, or (D)&nbsp;issue any shares of its capital stock in a
reclassification of the Preferred Stock (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), except as otherwise provided in this Section 11(a),
the Purchase Price in effect at the time of the record date for such dividend or
of the effective date of such subdivision, combination or reclassification, and
the number and kind of shares of capital stock for which the Rights shall be
exercisable, shall be proportionately adjusted so that the holder of any Rights
exercised after such time shall be entitled to receive, upon payment of the
Purchase Price then in effect, the aggregate number and kind of shares of
capital stock which, if such Rights had been exercised immediately prior to such
date and at a time when the applicable transfer books were open, such holder
would have owned upon such exercise and been entitled to receive by virtue of
such dividend, subdivision, combination or reclassification; <I>provided</I>,
<I>however</I>, that in no event shall the consideration to be paid upon the
exercise of one Right be less than the aggregate par value of the shares of
capital stock issuable upon exercise of one Right. If an event occurs which
would require an adjustment under both this Section 11(a)(i) and Section
11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be
in addition, and shall be made prior, to any adjustment required pursuant to
Section 11(a)(ii) hereof. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>13.</FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
Subject to Section 24 of this Agreement, if:</FONT></TD>
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<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
any Person shall become an Acquiring Person, unless the event causing the Person to
become an Acquiring Person is a transaction to which the provisions of Section 13(a)
hereof apply; </FONT></TD>
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<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
any Acquiring Person or any Associate or Affiliate of any Acquiring Person, at any time
after the date of this Agreement, directly or indirectly, shall (1) merge into the
Company or otherwise combine with the Company and the Company shall be the continuing or
surviving corporation of such merger or combination and shares of Common Stock of the
Company shall remain outstanding and unchanged, (2) in one transaction or a series of
transactions, transfer any assets to the Company or any of its Subsidiaries in exchange
(in whole or in part) for shares of Common Stock of the Company, for other equity
securities of the Company or any of its Subsidiaries, or for securities exercisable for
or convertible into shares of equity securities of the Company or any of its Subsidiaries
(whether shares of Common Stock of the Company or otherwise) or otherwise obtain from the
Company or any of its Subsidiaries, with or without consideration, any additional shares
of such equity securities or securities exercisable for or convertible into such equity
securities (other than pursuant to a pro rata distribution to all holders of shares of
Common Stock of the Company), (3) sell, purchase, lease, exchange, mortgage, pledge,
transfer or otherwise acquire or dispose of, in one transaction or a series of
transactions, to, from or with the Company or any of its Subsidiaries or any employee
benefit plan maintained by the Company or any of its Subsidiaries or any trustee or
fiduciary with respect to such plan acting in such capacity, assets (including
securities) on terms and conditions less favorable to the Company or such Subsidiary,
plan, trustee or fiduciary than those that could have been obtained in arm&#146;s-length
negotiations with an unaffiliated third party, other than pursuant to a transaction set
forth in Section 13(a) hereof, (4) sell, purchase, lease, exchange, mortgage, pledge,
transfer or otherwise acquire or dispose of, in one transaction or a series of
transactions, to, from or with the Company or any of its Subsidiaries or any employee
benefit plan maintained by the Company or any of its Subsidiaries or any trustee or
fiduciary with respect to such plan acting in such capacity (other than transactions, if
any, consistent with those engaged in, as of the date hereof, by the Company and such
Acquiring Person or such Associate or Affiliate thereof), assets (including securities or
intangible assets) having an aggregate fair market value of more than $5,000,000, other
than pursuant to a transaction set forth in Section 13(a) hereof, (5)&nbsp;receive, or
any designee, agent or representative of such Acquiring Person or any Affiliate or
Associate of such Acquiring Person shall receive, any compensation from the Company or
any of its Subsidiaries other than compensation for full-time employment as a regular
employee at rates in accordance with the Company&#146;s (or its Subsidiaries&#146;) past
practices, or (6) receive the benefit, directly or indirectly (except proportionately as
a holder of shares of Common Stock of the Company or as required by law or governmental
regulation), of any loans, advances, guarantees, pledges or other financial assistance or
any tax credits or other tax advantages provided by the Company or any of its
Subsidiaries or any employee benefit plan maintained by the Company or any of its
Subsidiaries or any trustee or fiduciary with respect to such plan acting in such
capacity; or </FONT></TD>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>14.</FONT></P>

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<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)
during such time as there is an Acquiring Person, there shall be any reclassification of
securities (including any reverse stock split), or recapitalization of the Company, or
any merger or consolidation of the Company with any of its Subsidiaries or any other
transaction or series of transactions involving the Company or any of its Subsidiaries,
other than a transaction or transactions to which the provisions of Section&nbsp;13(a)
hereof apply (whether or not with or into or otherwise involving an Acquiring Person),
which has the effect, directly or indirectly, of increasing by more than one percent the
proportionate share of the outstanding shares of any class of equity securities of the
Company or any of its Subsidiaries that is directly or indirectly beneficially owned by
any Acquiring Person or any Associate or Affiliate of any Acquiring Person; </FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;then
promptly following the occurrence of an event described in Section 11(a)(ii)(A), (B) or
(C) (each being a &#147;<I>Section 11(a)(ii) Event</I>&#148;), proper provision shall be
made so that each holder of a Right, except as otherwise provided in Section 7(e) hereof,
shall thereafter have the right to receive for each Right, upon exercise thereof in
accordance with the terms of this Agreement and payment of the then-current Purchase
Price, in lieu of the number of Units of Preferred Stock for which a Right was
exercisable immediately prior to the first occurrence of a Section&nbsp;11(a)(ii) Event,
such number of Units of Preferred Stock as shall equal the result obtained by multiplying
the then-current Purchase Price by the then number of Units of Preferred Stock for which
a Right was exercisable (or would have been exercisable if the Distribution Date had
occurred) immediately prior to the first occurrence of a Triggering Event, and dividing
that product by 50% of the Current Per Share Market Price for shares of Common Stock on
the date of occurrence of the most recent Triggering Event (such number of Units of
Preferred Stock being hereinafter referred to as the &#147;<I>Adjustment Shares</I>&#148;).
Upon the occurrence of a Section 13 Event, any Rights that shall not have been previously
exercised pursuant to this Section 11(a)(ii) shall thereafter be exercisable only
pursuant to Section 13 hereof and not pursuant to this Section 11(a)(ii). The Company
shall notify the Rights Agent when this Section 11(a)(ii) applies and shall use all
commercially reasonable efforts to ensure that the provisions of this Section 11 (a)(ii)
are complied with, but neither the Company nor the Rights Agent shall have any liability
to any holder of Rights Certificates or other Person as a result of the Company&#146;s
failure to make any determinations with respect to any Acquiring Person or its
Affiliates, Associates or transferees hereunder.</FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
In the event that the number of shares of Preferred Stock which are authorized by the
Company&#146;s certificate of incorporation but not outstanding or reserved for issuance
for purposes other than upon exercise of the Rights are not sufficient to permit the
exercise in full of the Rights, or if any necessary regulatory approval for such issuance
has not been obtained by the Company, the Company shall, in lieu of issuing Units of
Preferred Stock in accordance with Section&nbsp;11(a)(ii) hereof: (A) determine the
excess of (1) the value of the Units of Preferred Stock issuable upon the exercise of a
Right (the &#147;<I>Current Value</I>&#148;) over (2) the Purchase Price (such excess
being referred to as the &#147;<I>Spread</I>&#148;) and (B) with respect to each Right,
make adequate provision to substitute for such Units of Preferred Stock, upon exercise of
the Rights, (1)&nbsp;cash, (2)&nbsp;a reduction in the Purchase Price, (3)&nbsp;other
equity securities of the Company (including, without limitation, Common Stock of the
Company or shares or units of shares of any series of preferred stock which the board of
directors of the Company shall have conclusively deemed to have the same value as the
Units of Preferred Stock (such shares or units of preferred stock are herein called &#147;<I>Preferred
Stock Equivalents</I>&#148;)), except to the extent that the Company has not obtained any
necessary regulatory approval for such issuance, (4)&nbsp;debt securities of the Company,
except to the extent that the Company has not obtained any necessary regulatory approval
for such issuance, (5)&nbsp;other assets, or (6)&nbsp;any combination of the foregoing,
having an aggregate value equal to the Current Value, as determined by the board of
directors of the Company based upon the advice of a nationally recognized investment
banking firm selected by the board of directors of the Company (which determination shall
be described in a statement filed with the Rights Agent and shall be conclusive and
binding on the Rights Agent, the holders of the Rights and all other persons); <I>provided</I>,
<I>however</I>, if the Company shall not have made adequate provision to deliver value
pursuant to clause (B) above within thirty days following the later of (x)&nbsp;occurrence
of a Section 11(a)(ii) Event, and (y)&nbsp;the date on which the Company&#146;s right of
redemption pursuant to Section 23(a) hereof expires (the later of (x) and (y) being
referred to herein as the &#147;<I>Section 11(a)(iii) Trigger Date</I>&#148;), then the
Company shall be obligated to deliver, upon the surrender for exercise of a Right and
without requiring payment of the Purchase Price, Units of Preferred Stock (to the extent
available), except to the extent that the Company has not obtained any necessary
regulatory approval for such issuance, and then, if necessary, cash, having an aggregate
value equal to the Spread. </FONT></TD>
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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
If the Company shall fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Stock entitling them (for a period expiring
within forty five calendar days after such record date) to subscribe for or
purchase Preferred Stock (or shares having the same rights, privileges and
preferences as the Preferred Stock (&#147;<I>Equivalent Preferred
Stock</I>&#148;)) or securities convertible into Preferred Stock or Equivalent
Preferred Stock at a price per Unit of Preferred Stock or Equivalent Preferred
Stock (or having a conversion price per Unit, if a security convertible into
Units of Preferred Stock or Equivalent Preferred Stock) less than the then
Current Per Share Market Price (as determined pursuant to Section 11(d)) of a
Unit of Preferred Stock on such record date, the Purchase Price to be in effect
after such record date shall be determined by multiplying the Purchase Price in
effect immediately prior to such record date by a fraction, the numerator of
which shall be the sum of the number of Units outstanding on such record date
plus the number of Units which the aggregate offering price of the total number
of Units and/or Equivalent Preferred Stock so to be offered (and/or the
aggregate initial conversion price of the convertible securities so to be
offered) would purchase at such Current Per Share Market Price and the
denominator of which shall be the sum of the number of Units outstanding on such
record date plus the number of additional Units and/or Equivalent Preferred
Stock to be offered for subscription or purchase (or into which the convertible
securities so to be offered are initially convertible). If such subscription
price may be paid in a consideration part or all of which shall be in a form
other than cash, the value of such consideration shall be as determined in good
faith by the board of directors of the Company, whose determination shall be
described in a statement filed with the Rights Agent and shall be conclusive and
binding on the Rights Agent and the holders of the Rights. Units owned by or
held for the account of the Company shall not be deemed outstanding for the
purpose of any such computation.&nbsp; Such adjustment shall be made
successively whenever such a record date is fixed; and if such rights, options
or warrants are not so issued, the Purchase Price shall be adjusted to be the
Purchase Price which would then be in effect if such record date had not been
fixed. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
If the Company shall fix a record date for a distribution to all holders of
Units of Preferred Stock (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing or
surviving corporation) or evidences of indebtedness, cash (other than a regular
quarterly cash dividend), assets (other than a dividend payable in Units or
Equivalent Preferred Stock but including any dividend payable in equity
securities other than Preferred Stock or Equivalent Preferred Stock) or
subscription rights or warrants (excluding those referred to in Section 11(b)
hereof), the Purchase Price to be in effect after such record date shall be
determined by multiplying the Purchase Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the then Current Per
Share Market Price (as determined pursuant to Section&nbsp;11(d) hereof) of the
Preferred Stock on such record date, less the fair market value (as determined
in good faith by the board of directors of the Company, whose determination
shall be described in a statement filed with the Rights Agent and shall be
conclusive and binding on the Rights Agent and the holders of the Rights) of the
cash, assets or evidences of indebtedness to be distributed or of such
subscription rights or warrants distributable in respect of a share of Preferred
Stock, and the denominator of which shall be such Current Per Share Market Price
of a share of Preferred Stock. Such adjustments shall be made successively
whenever such a record date is fixed; and in the event that such distribution is
not so made, the Purchase Price shall again be adjusted to be the Purchase Price
which would then be in effect if such record date had not been fixed. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
(i)&nbsp;&nbsp;For the purpose of any computation hereunder, the
&#147;<I>Current Per Share Market Price</I>&#148; of any security on any date
shall be deemed to be the average of the daily closing prices per share of such
security for the thirty consecutive Trading Days (as such term is hereinafter
defined) immediately prior to but not including such date; <I>provided</I>,
<I>however</I>, that in the event that the Current Per Share Market Price of the
security is determined during a period following the announcement by the issuer
of such security of (A) a dividend or distribution on such security payable in
shares of such security or securities convertible into such security, or (B) any
subdivision, combination or reclassification of such security and prior to the
expiration of thirty Trading Days after and not including the ex-dividend date
for such dividend or distribution, or the record date for such subdivision,
combination or reclassification, then, and in each such case, the Current Per
Share Market Price shall be appropriately adjusted to reflect the current market
price per share equivalent of such security. The closing price for each day
shall be the last sale price, regular way, or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, in
either case as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the Nasdaq
Stock Market (&#147;<I>NASDAQ</I>&#148;) or, if the security is not listed or
admitted to trading on the NASDAQ, as reported in the principal consolidated
transaction reporting system with respect to securities listed on the principal
national securities exchange on which the security is listed or admitted to
trading or, if the security is not listed or admitted to trading on any national
securities exchange, the last quoted price or, if not so quoted, the average of
the high bid and low asked prices in the over-the-counter market, as reported by
the NASDAQ or such other system then in use, or, if on any such date the
security is not quoted by any such organization, the average of the closing bid
and asked prices as furnished by a professional market maker making a market in
the security selected by the board of directors of the Company. If on any such
date no market maker is making a market in the security, the Current Per Share
Market Price of such security on such date shall mean the fair value per share
or other trading unit as determined in good faith by the board of directors of
the Company as provided for above (which determination shall be described in a
statement filed with the Rights Agent and shall be conclusive and binding on the
Rights Agent, the holders of the Rights and all other Persons). The term
&#147;<I>Trading Day</I>&#148; shall mean a day on which the principal national
securities exchange on which the security is listed or admitted to trading is
open for the transaction of business or, if the security is not listed or
admitted to trading on any national securities exchange, a Business Day. </FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
For the purpose of any computation hereunder, the Current Per Share Market Price of the
Preferred Stock shall be determined in accordance with the method set forth in Section
11(d)(i) hereof. If the Current Per Share Market Price of the Preferred Stock cannot be
determined in the manner provided above or if the Preferred Stock is not publicly held or
listed or traded in a manner described in Section&nbsp;11(d)(i) hereof, the Current Per
Share Market Price of the Preferred Stock shall be conclusively deemed to be an amount
equal to the product of 1,000 (as such amount may be appropriately adjusted for such
events as stock splits, stock dividends and recapitalizations with respect to shares of
Common Stock of the Company occurring after the date of this Agreement) multiplied by the
Current Per Share Market Price of Common Stock of the Company. If no shares of the Common
Stock of the Company or the Preferred Stock are publicly held or so listed or traded,
&#147;<I>Current Per Share Market Price</I>&#148; of the Preferred Stock shall mean the
fair value per share as determined in good faith by the board of directors of the
Company, whose determination shall be described in a statement filed with the Rights
Agent and shall be conclusive and binding on the Rights Agent and the holders of the
Rights for all purposes. For all purposes of this Agreement, the Current Per Share Market
Price of a Unit of Preferred Stock shall be equal to the Current Per Share Market Price
of one share of Preferred Stock divided by 1,000. </FONT></TD>
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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
No adjustment in the Purchase Price shall be required unless such adjustment
would require an increase or decrease of at least one percent in the Purchase
Price; <I>provided</I>, <I>however</I>, that any adjustments which by reason of
this Section 11(e) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. All calculations under this
Section 11 shall be made to the nearest cent or to the nearest
one-hundred-thousandth (1/100,000) of a share of Preferred Stock or
one-hundredth (1/100) of any other share or security as the case may be.
Notwithstanding the first sentence of this Section 11(e), any adjustment
required by this Section 11 shall be made no later than the earlier of (i) three
years from the date of the transaction which requires such adjustment or (ii)
the Expiration Date. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
If as a result of an adjustment made pursuant to Section 11(a)(ii) hereof, the
holder of any Rights thereafter exercised shall become entitled to receive any
shares of capital stock of the Company other than Units of Preferred Stock,
thereafter the number of such other shares so receivable upon exercise of any
Rights and the Purchase Price thereof shall be subject to adjustment from time
to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Preferred Stock contained in Sections 11(a), (b),
(c), (d), (e), (g), (h), (i), (j), (k), (l) and (m), and the provisions of
Sections 7, 9, 10, 13 and 14 with respect to the Preferred Stock shall apply on
like terms to any such other shares. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)
All Rights originally issued by the Company subsequent to any adjustment made to
the Purchase Price shall evidence the right to purchase, at the adjusted
Purchase Price, the number of Units of Preferred Stock purchasable from time to
time upon exercise of the Rights, all subject to further adjustment as provided
in this Agreement. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)
Unless the Company shall have exercised its election under Section&nbsp;11(i),
upon each adjustment of the Purchase Price as a result of the calculations made
in Sections 11(b) and (c), each Right outstanding immediately prior to the
making of such adjustment shall thereafter evidence the right to purchase, at
the adjusted Purchase Price, that number of Units of Preferred Stock (calculated
to the nearest one-millionth of a share of Preferred Stock) obtained by dividing
(i) the product obtained by multiplying (x) the number of Units of Preferred
Stock covered by a Right immediately prior to this adjustment by (y) the
Purchase Price in effect immediately prior to such adjustment of the Purchase
Price, by (ii) the Purchase Price in effect immediately after such adjustment of
the Purchase Price. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
The Company may elect on or after the date of any adjustment of the Purchase
Price to adjust the number of Rights, in substitution for any adjustment in the
number of Units of Preferred Stock purchasable upon the exercise of a Right.
Each of the Rights outstanding after such adjustment of the number of Rights
shall be exercisable for the number of Units of Preferred Stock for which a
Right was exercisable immediately prior to such adjustment. Each Right held of
record prior to such adjustment of the number of Rights shall become that number
of Rights (calculated to the nearest one-thousandth) obtained by dividing the
Purchase Price in effect immediately prior to adjustment of the Purchase Price
by the Purchase Price in effect immediately after adjustment of the Purchase
Price. The Company shall make a public announcement of its election to adjust
the number of Rights, indicating the record date for the adjustment, and, if
known at the time, the amount of the adjustment to be made. The Company shall
give the Rights Agent a copy of such announcement. This record date may be the
date on which the Purchase Price is adjusted or any day thereafter, but, if the
Rights Certificates have been issued, shall be at least ten days later than the
date of the public announcement. If Rights Certificates have been issued, upon
each adjustment of the number of Rights pursuant to this Section 11(i), the
Company shall, as promptly as practicable, cause to be distributed to holders of
record of Rights Certificates on such record date Rights Certificates
evidencing, subject to Section 14 hereof, the additional Rights to which such
holders shall be entitled as a result of such adjustment, or, at the option of
the Company, shall cause to be distributed to such holders of record in
substitution and replacement for the Rights Certificates held by such holders
prior to the date of adjustment, and upon surrender thereof, if required by the
Company, new Rights Certificates evidencing all the Rights to which such holders
shall be entitled after such adjustment. Rights Certificates to be so
distributed shall be issued, executed and countersigned in the manner provided
for herein and shall be registered in the names of the holders of record of
Rights Certificates on the record date specified in the public announcement. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)
Irrespective of any adjustment or change in the Purchase Price or the number of
Units issuable upon the exercise of the Rights, the Rights Certificates
theretofore and thereafter issued may continue to express the Purchase Price per
Unit and the number of Units which were expressed in the initial Rights
Certificates issued hereunder. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)
Before taking any action that would cause an adjustment reducing the Purchase
Price below the then par value of the number of Units issuable upon exercise of
the Rights, the Company shall take any corporate action which may, in the
opinion of its counsel, be necessary in order that the Company may validly and
legally issue fully paid and nonassessable number of Units at such adjusted
Purchase Price. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)
In any case in which this Section 11 shall require that an adjustment in the
Purchase Price be made effective as of a record date for a specified event, the
Company may elect to defer, until the occurrence of such event, the issuing to
the holder of any Rights exercised after such record date of that number of
Units and other capital stock or securities of the Company, if any, issuable
upon such exercise over and above the Units of and other capital stock or
securities of the Company, if any, issuable upon such exercise on the basis of
the Purchase Price in effect prior to such adjustment; <I>provided</I>,
<I>however</I>, that the Company shall deliver to such holder a due bill or
other appropriate instrument evidencing such holder&#146;s right to receive such
additional shares (fractional or otherwise) upon the occurrence of the event
requiring such adjustment. The Company shall give the Rights Agent notice of its
election under this Section 11(e). </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)
Anything in this Section 11 to the contrary notwithstanding, the Company shall
be entitled to make such reductions in the Purchase Price, in addition to those
adjustments expressly required by this Section 11, as and to the extent that it
in its sole discretion shall determine to be advisable in order that any
(i)&nbsp;consolidation or subdivision of the Preferred Stock, (ii)&nbsp;issuance
wholly for cash of any Unit of less than the Current Per Share Market Price,
(iii)&nbsp;issuance wholly for cash of Preferred Stock or securities which by
their terms are convertible into or exchangeable for Preferred Stock,
(iv)&nbsp;dividends on Preferred Stock payable in Preferred Stock, or
(v)&nbsp;issuance of rights, options or warrants referred to in this Section 11,
hereafter made by the Company to holders of Units of its Preferred Stock shall
not be taxable to such stockholders. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)
The Company shall not, at any time after the Distribution Date,
(i)&nbsp;consolidate with any other Person (other than a Subsidiary of the
Company in a transaction which complies with Section 11(o) hereof),
(ii)&nbsp;merge with or into any other Person (other than a Subsidiary of the
Company in a transaction which complies with Section 11(o) hereof), or
(iii)&nbsp;sell or transfer (or permit any Subsidiary to sell or transfer), in
one transaction, or a series of transactions, assets or earning power
aggregating more than 50% of the assets or earning power of the Company and its
Subsidiaries (taken as a whole) to any other Person or Persons (other than the
Company and/or any of its Subsidiaries in one or more transactions each of which
complies with Section 11(o) hereof), if (x)&nbsp;at the time of or immediately
after such consolidation, merger or sale there are any rights, warrants or other
instruments or securities outstanding or agreements in effect which would
substantially diminish or otherwise eliminate the benefits intended to be
afforded by the Rights or (y)&nbsp;prior to, simultaneously with or immediately
after such consolidation, merger or sale, the Person which constitutes, or would
constitute, the Principal Party (as defined in Section 13(b) hereof) shall have
distributed or otherwise transferred to its stockholders or other persons
holding an equity interest in such Person, Rights previously owned by such
Person or any of its Affiliates and Associates; <I>provided</I>, <I>however</I>,
this Section 11(n) shall not affect the ability of any Subsidiary of the Company
to consolidate with, merge with or into, or sell or transfer assets or earning
power to, any other Subsidiary of the Company. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)
After the Distribution Date, the Company shall not, except as permitted by
Section&nbsp;23 or Section&nbsp;27 hereof, take (or permit any of its
Subsidiaries to take) any action if at the time such action is taken it is
reasonably foreseeable that such action will diminish substantially or otherwise
eliminate the benefits intended to be afforded by the Rights. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)
If, at any time after the date of this Agreement and prior to the Distribution
Date, the Company shall (i) declare or pay any dividend on outstanding shares of
Common Stock of the Company payable in shares of Common Stock of the Company or
(ii) effect a subdivision, combination or consolidation of the Common Stock of
the Company (by reclassification or otherwise than by payment of dividends in
shares of Common Stock of the Company) into a greater or lesser number of shares
of Common Stock of the Company, then in any such case the number of Units
purchasable after such event upon proper exercise of each Right shall be
determined by multiplying the number of Units so purchasable immediately prior
to such event by a fraction, the numerator of which shall be the number of
shares of Common Stock of the Company outstanding immediately before such event
and the denominator of which shall be the number of shares of Common Stock of
the Company outstanding immediately after such event. The adjustments provided
for in this Section 11(p) shall be made successively whenever such a dividend is
declared or paid or such a subdivision, combination or consolidation is
effected. </FONT></P>

<A NAME="Sec12"></A>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
12. <I>Certificate of Adjusted Purchase Price or Number of Shares</I>. Whenever
an adjustment is made as provided in Section 11 or 13 hereof, the Company shall
promptly (a)&nbsp;prepare a certificate setting forth such adjustment, and a
brief statement of the computations and facts accounting for such adjustment,
(b) file with the Rights Agent and with each transfer agent for the shares of
Common Stock of the Company or Units a copy of such certificate and (c) mail a
brief summary thereof to each holder of a Rights Certificate in accordance with
Section 25 hereof. Notwithstanding the foregoing sentence, the failure by the
Company to make such certification or give such notice shall not affect the
validity of or the force or effect of the requirement for such adjustment. The
Rights Agent shall be fully protected in relying on any such certificate and on
any adjustment or statement contained therein and shall have no duty or
liability with respect to, shall not be deemed to have knowledge of, any
adjustment or any such event unless and until it shall have received such
certificate. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>21.</FONT></P>

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<A NAME="Sec13"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
13. <I>Consolidation, Merger or Sale or Transfer of Assets or Earning Power</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
In the event that, following a Stock Acquisition Date, directly or indirectly, (x)&nbsp;the
Company shall consolidate with, or merge with and into, any other Person (other than a
Subsidiary of the Company in a transaction which complies with Section&nbsp;11(o)
hereof), and the Company shall not be the continuing or surviving corporation of such
consolidation or merger, (y)&nbsp;any Person (other than a Subsidiary of the Company in a
transaction which complies with Section&nbsp;11(o) hereof) shall consolidate with the
Company, or merge with and into the Company and the Company shall be the continuing or
surviving corporation of such consolidation or merger and, in connection with such
consolidation or merger, all or part of the shares of Common Stock of the Company shall
be changed into or exchanged for stock or other securities of any other Person or cash or
any other property, or (z)&nbsp;the Company shall sell or otherwise transfer (or one or
more of its Subsidiaries shall sell or otherwise transfer) to any Person or Persons
(other than a Subsidiary of the Company in a transaction which complies with Section&nbsp;11(o)
hereof), in one or more transactions, directly or indirectly, assets or earning power
aggregating 50% or more of the assets or earning power of the Company and its
Subsidiaries (taken as a whole), (any such event being a &#147;<I>Section&nbsp;13 Event</I>&#148;),
then, and in each such case, proper provision shall be made so that: (i)&nbsp;each holder
of a Right, except as provided in Section&nbsp;7(e) hereof, shall thereafter have the
right to receive, upon the exercise thereof at the then-current Purchase Price, such
number of validly authorized and issued, fully paid and non-assessable shares of Common
Stock of the Principal Party, which shares shall not be subject to any liens,
encumbrances, rights of first refusal, transfer restrictions or other adverse claims, as
shall be equal to the product obtained by (1)&nbsp;multiplying the then current Purchase
Price by the number of Units of Preferred Stock for which a Right is exercisable
immediately prior to the first occurrence of a Section&nbsp;13 Event (or, if a Section&nbsp;11(a)(ii)
Event has occurred prior to the first occurrence of a Section&nbsp;13 Event, multiplying
the number of such Units of Preferred Stock for which a Right would be exercisable
hereunder but for the occurrence of such Section&nbsp;11(a)(ii) Event by the Purchase
Price which would be in effect hereunder but for such first occurrence) and (2)&nbsp;dividing
that product (which, following the first occurrence of a Section&nbsp;13 Event, shall be
the &#147;<I>Purchase Price</I>&#148;for all purposes of this Agreement) by 50% of the
Current Per Share Market Price of the shares of Common Stock of such Principal Party on
the date of consummation of such Section&nbsp;13 Event, (ii)&nbsp;such Principal Party
shall thereafter be liable for, and shall assume, by virtue of such Section&nbsp;13
Event, all the obligations and duties of the Company pursuant to this Agreement, (iii)&nbsp;the
term &#147;Company&#148;shall, for all purposes of this Agreement, thereafter be deemed
to refer to such Principal Party, it being specifically intended that the provisions of
Section&nbsp;11 hereof shall apply only to such Principal Party following the first
occurrence of a Section&nbsp;13 Event, (iv)&nbsp;such Principal Party shall take such
steps (including, but not limited to, the reservation of a sufficient number of shares of
its Common Stock) in connection with the consummation of any such transaction as may be
necessary to ensure that the provisions of this Agreement shall thereafter be applicable
to its shares of Common Stock thereafter deliverable upon the exercise of the Rights and
(v)&nbsp;the provisions of Section&nbsp;11(a)(ii) hereof shall be of no further effect
following the first occurrence of any Section&nbsp;13 Event. </FONT> </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &#147;<I>Principal Party</I>&#147; shall mean:</FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
in the case of any transaction described in clause&nbsp;(x) or&nbsp;(y) of the first
sentence of Section&nbsp;13(a), (A)&nbsp;the Person that is the issuer of any securities
into which shares of Common Stock of the Company are converted in such merger or
consolidation, or, if there is more than one such issuer, the issuer whose outstanding
shares of Common Stock have the greatest aggregate Current Per Share Market Price and (B)&nbsp;if
no securities are so issued, the Person that is the other party to such merger or
consolidation, or, if there is more than one such Person, the Person whose outstanding
shares of Common Stock have the greatest aggregate Current Per Share Market Price; and </FONT></TD>
</TR>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>22.</FONT></P>

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<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
in the case of any transaction described in clause&nbsp;(z) of the first sentence of
Section&nbsp;13(a), the Person that is the party receiving the largest portion of the
assets or earning power transferred pursuant to such transaction or transactions, or, if
each Person that is a party to such transaction or transactions receives the same portion
of the assets or earning power transferred pursuant to such transaction or transactions
or if the Person receiving the largest portion of the assets or earning power cannot be
determined, whichever Person whose outstanding shares of Common Stock have the greatest
aggregate Current Per Share Market Price; <I>provided</I>, <I>however</I>, that in any
such case, (1)&nbsp;if the Common Stock of such Person is not at such time and has not
been continuously over the preceding twelve-month period registered under Section&nbsp;12
of the Exchange Act (&#147;<I>Registered Common Stock</I>&#148;), or such Person is not a
corporation, and such Person is a direct or indirect Subsidiary of another Person that
has Registered Common Stock outstanding, &#147;Principal Party&#148; shall refer to such
other Person; (2)&nbsp;if the Common Stock of such Person is not Registered Common Stock
or such Person is not a corporation, and such Person is a direct or indirect Subsidiary
of another Person but is not a direct or indirect Subsidiary of another Person which has
Registered Common Stock outstanding, &#147;Principal Party&#148; shall refer to the
ultimate parent entity of such first-mentioned Person; (3) if the Common Stock of such
Person is not Registered Common Stock or such Person is not a corporation, and such
Person is directly or indirectly controlled by more than one Person, and one or more of
such other Persons has Registered Common Stock outstanding, &#147;Principal Party&#148; shall
refer to whichever of such other Persons is the issuer of the Registered Common Stock
having the highest aggregate Current Per Share Market Price; and (4)&nbsp;if the Common
Stock of such Person is not Registered Common Stock or such Person is not a corporation,
and such Person is directly or indirectly controlled by more than one Person, and none of
such other Persons has Registered Common Stock outstanding, &#147;Principal Party&#148; shall
refer to whichever ultimate parent entity is the corporation having the greatest
stockholders&#146; equity or, if no such ultimate parent entity is a corporation, shall
refer to whichever ultimate parent entity is the entity having the greatest net assets. </FONT></TD>
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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
The Company shall not consummate any such consolidation, merger, sale or
transfer unless the Principal Party shall have a sufficient number of authorized
shares of its Common Stock which have not been issued or reserved for issuance
to permit the exercise in full of the Rights in accordance with this
Section&nbsp;13, and unless prior thereto the Company and such Principal Party
shall have executed and delivered to the Rights Agent a supplemental agreement
providing for the terms set forth in paragraphs&nbsp;(a) and&nbsp;(b) of this
Section 13 and further providing that the Principal Party will: </FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
(A) file on an appropriate form, as soon as practicable following the execution of such
agreement, a registration statement under the Securities Act with respect to the shares
of Common Stock of such Principal Party that may be acquired upon exercise of the Rights,
(B)&nbsp;cause such registration statement to remain effective (and to include a
prospectus complying with the requirements of the Securities Act) until the Expiration
Date, and (C)&nbsp;as soon as practicable following the execution of such agreement take
such action as may be required to ensure that any acquisition of such shares of Common
Stock of such Principal Party upon the exercise of the Rights complies with any
applicable state securities or &#147;blue sky&#148; laws; and </FONT></TD>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>23.</FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
deliver to holders of the Rights historical financial statements for the Principal Party
and each of its Affiliates which comply in all respects with the requirements for
registration on Form&nbsp;10 (or any successor form) under the Exchange Act. </FONT></TD>
</TR>
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<BR>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
In case the Principal Party which is to be a party to a transaction referred to
in this Section&nbsp;13 has a provision in any of its authorized securities or
in its certificate of incorporation, bylaws or other instrument governing its
corporate affairs, which provision would have the effect of (i) causing such
Principal Party to issue, in connection with, or as a consequence of, the
consummation of a transaction referred to in this Section&nbsp;13, shares of
Common Stock of such Principal Party at less than their Current Per Share Market
Price or securities exercisable for, or convertible into, shares of Common Stock
of such Principal Party at less than their Current Per Share Market Price (other
than to holders of Rights pursuant to this Section&nbsp;13) or (ii) providing
for any special payment, tax or similar provisions in connection with the
issuance of the shares of Common Stock of such Principal Party pursuant to the
provisions of this Section&nbsp;13, then, in such event, the Company shall not
consummate any such transaction unless prior thereto the Company and such
Principal Party shall have executed and delivered to the Rights Agent a
supplemental agreement providing that the provision in question of such
Principal Party shall have been cancelled, waived or amended, or that the
authorized securities shall be redeemed, so that the applicable provision will
have no effect in connection with, or as a consequence of, the consummation of
the proposed transaction. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
The provisions of this Section&nbsp;13 shall similarly apply to successive
mergers or consolidations or sales or other transfers. In the event that a
Section&nbsp;13 Event shall occur at any time after the occurrence of a
Section&nbsp;11(a)(ii) Event, the Rights that have not theretofore been
exercised shall thereafter be exercisable only in the manner provided in Section
13(a) hereof. </FONT></P>

<A NAME="Sec14"></A>

<!-- MARKER FORMAT-SHEET="Para Bold 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
14. <I>Fractional Rights and Fractional Shares.</I>&nbsp;&nbsp;(a) The Company
shall not be required to issue fractions of Rights or to distribute Rights Certificates
which evidence fractional Rights. In lieu of such fractional Rights, there shall be paid
to the registered holders of the Rights Certificates with regard to which such fractional
Rights would otherwise be issuable, an amount in cash equal to the same fraction of the
Current Per Share Market Price of a whole Right. For purposes of this Section 14(a), the
Current Per Share Market Price of a whole Right shall be the closing price per share of a
whole Right on the Trading Day immediately prior to the date on which such fractional
Rights would have been otherwise issuable.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
The Company shall not be required to issue fractions of Preferred Stock (other
than fractions which are integral multiples of one one-thousandth of a share of
Preferred Stock) upon exercise of the Rights or to distribute certificates which
evidence fractional Preferred Stock (other than fractions which are integral
multiples of one one-thousandth of a share of Preferred Stock). Fractions of
Preferred Stock in integral multiples of one one-thousandth of a share of
Preferred Stock may, at the election of the Company, be evidenced by depositary
receipts, pursuant to an appropriate agreement between the Company and a
depositary selected by it; <I>provided</I>, <I>however</I>, that such agreement
shall provide that the holders of such depositary receipts shall have all the
rights, privileges and preferences to which they are entitled as beneficial
owners of the Preferred Stock represented by such depositary receipts. In lieu
of fractional shares of Preferred Stock that are not integral multiples of one
one-thousandth of a share of Preferred Stock, the Company shall pay to the
registered holders of Rights Certificates at the time such Rights are exercised
as herein provided an amount in cash equal to the same fraction of the Current
Per Share Market Price of one share of Preferred Stock. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>24.</FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
The holder of a Right by the acceptance of the Right expressly waives such
holder&#146;s right to receive any fractional Rights or any fractional shares
upon exercise of a Right (except as provided above). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
Whenever a payment for fractional Rights or fractional shares is to be made by
the Rights Agent, the Company shall (i) promptly prepare and deliver to the
Rights Agent a certificate setting forth in reasonable detail the facts related
to such payment and the prices and/or formulas utilized in calculating such
payments, and (ii) provide sufficient monies to the Rights Agent in the form of
fully collected funds to make such payments. The Rights Agent shall be fully
protected in relying upon such a certificate and shall have no duty to respect
to, and shall not be deemed to have knowledge of any payment for fractional
Rights or fractional shares under any section of this Agreement relating to the
payment of fractional Rights or fractional shares unless and until the Rights
Agent shall have received such a certificate and sufficient monies. </FONT></P>

<A NAME="Sec15"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
15. <I>Rights of Action</I>. All rights of action in respect of this Agreement,
excepting the rights of action given to the Rights Agent under Section 18, are
vested in the respective registered holders of the Rights Certificates (and,
prior to the Distribution Date, the registered holders of certificates
representing shares of Common Stock of the Company); and any registered holder
of any Rights Certificate (or, prior to the Distribution Date, a certificate
representing shares of Common Stock of the Company), without the consent of the
Rights Agent or of the holder of any other Rights Certificate (or, prior to the
Distribution Date, of a certificate representing shares of Common Stock of the
Company), may, in such holder&#146;s own behalf and for such holder&#146;s own
benefit, enforce, and may institute and maintain any suit, action or proceeding
against the Company to enforce, or otherwise act in respect of, such
holder&#146;s right to exercise the Rights evidenced by such Rights Certificate
or, prior to the Distribution Date, in the manner provided in such Rights
Certificate and in this Agreement. Without limiting the foregoing or any
remedies available to the holders of Rights, it is specifically acknowledged
that the holders of Rights would not have an adequate remedy at law for any
breach of this Agreement and will be entitled to specific performance of the
obligations hereunder, and injunctive relief against actual or threatened
violations of the obligations of any Person subject to this Agreement. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>25.</FONT></P>

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<A NAME="Sec16"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16. <I>Agreement of Rights Holders</I>. Every holder of a Right, by accepting the same, consents and
agrees with the Company and the Rights Agent and with every other holder of a Right that:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prior to the Distribution Date, the Rights will be transferable only in connection with the transfer of
shares of Common Stock of the Company;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
after the Distribution Date, the Rights Certificates are transferable only on
the registry books of the Rights Agent if surrendered at the office of the
Rights Agent designated for such purpose, duly endorsed or accompanied by a
proper instrument of transfer with all required certifications completed; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
subject to Sections 6(a) and 7(f) hereof, the Company and the Rights Agent may
deem and treat the Person in whose name the Rights Certificate (or, prior to the
Distribution Date, the associated Common Stock certificate) is registered as the
absolute owner thereof and of the Rights evidenced thereby (notwithstanding any
notations of ownership or writing on the Rights Certificates or the associated
Common Stock certificate made by anyone other than the Company or the Rights
Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent
shall be affected by any notice to the contrary; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
such holder expressly waives any right to receive any fractional Rights and any
fractional securities upon exercise or exchange of a Right, except as otherwise
provided in Section 14 hereof; and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
notwithstanding anything in this Agreement to the contrary, neither the Company
nor the Rights Agent shall have any liability to any holder of a Right or other
Person as a result of its inability to perform any of its obligations under this
Agreement by reason of any preliminary or permanent injunction or other order,
decree or ruling issued by a court of competent jurisdiction or by a
governmental, regulatory or administrative agency or commission, or any statute,
rule, regulation or executive order promulgated or enacted by any governmental
authority, prohibiting or otherwise restraining performance of such obligation;
provided, however, the Company shall use commercially reasonable efforts to have
any such order, decree or ruling lifted or otherwise overturned as soon as
practicable. </FONT></P>

<A NAME="Sec17"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
17. <I>Rights Certificate Holder Not Deemed a Stockholder</I>. No holder, as
such, of any Rights Certificate shall be entitled to vote, receive dividends or
be deemed for any purpose the holder of the Units of Preferred Stock or any
other securities of the Company which may at any time be issuable upon the
exercise of the Rights represented thereby, nor shall anything contained in this
Agreement or in any Rights Certificate be construed to confer upon the holder of
any Rights Certificate, as such, any of the rights of a stockholder of the
Company or any right to vote for the election of directors or upon any matter
submitted to stockholders at any meeting thereof, or to give or withhold consent
to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in Section 25 hereof), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights
evidenced by such Rights Certificate shall have been exercised in accordance
with this Agreement. </FONT></P>

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<A NAME="Sec18"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
18. <I>Concerning the Rights Agent</I>. The Company agrees to pay to the Rights
Agent reasonable compensation for all services rendered by it under this
Agreement and, from time to time, on demand of the Rights Agent, its reasonable
expenses and counsel fees and other disbursements incurred in the preparation,
negotiation, execution, delivery, amendment and administration of this Agreement
and the exercise and performance of its duties hereunder. The Company also
agrees to indemnify the Rights Agent for, and to hold it harmless against, any
loss, damage, judgment, fine, penalty, claim, demand, settlement, cost,
liability or expense (including, without limitation, the reasonable fees and
disbursements of counsel) incurred without gross negligence or willful
misconduct on the part of the Rights Agent, for any action taken, suffered or
omitted by the Rights Agent in connection with the execution, acceptance and
administration of this Agreement and the exercise and performance of its duties,
including, without limitation, the costs and expenses of defending against and
appealing any claim of liability arising therefrom, directly or indirectly. This
indemnity shall survive the termination of this Agreement and the expiration of
the Rights. The costs and expenses incurred in enforcing this right of
indemnification shall be paid by the Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the absence of gross negligence or willful misconduct, the Rights Agent is
authorized and shall be protected and shall incur no liability for, or in
respect of any action taken, suffered or omitted by it in connection with, its
administration of this Agreement and the exercise and performance of its duties
hereunder in reliance upon any Rights Certificate or certificate for Units or
for other securities of the Company, instrument of assignment or transfer, power
of attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement, or other paper or document believed by it to be genuine
and to be signed, executed and, where necessary, verified or acknowledged, by
the proper person or persons, or otherwise upon the advice of counsel as set
forth in Section 20. </FONT></P>

<A NAME="Sec19"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF"SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 19. <I>Merger or Consolidation or
Change of Name of Rights Agent.</I> &nbsp;&nbsp;(a) Any Person into which the Rights
Agent or any successor Rights Agent may be merged or with which it may be
consolidated, or any Person resulting from any merger or consolidation to which
the Rights Agent or any successor Rights Agent shall be a party, or any Person
succeeding to the stock transfer or corporate trust business of the Rights Agent
or any successor Rights Agent, shall be the successor to the Rights Agent under
this Agreement without the execution or filing of any paper or any further act
on the part of any of the parties hereto;
<I>provided</I>, that such Person must be eligible for appointment as a
successor Rights Agent under the provisions of Section 21 hereof. In case at the
time such successor Rights Agent shall succeed to the agency created by this
Agreement, any of the Rights Certificates shall have been countersigned but not
delivered, any such successor Rights Agent may adopt the countersignature of the
predecessor Rights Agent and deliver such Rights Certificates so countersigned;
and in case at that time any of the Rights Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Rights
Certificates either in the name of the predecessor Rights Agent or in the name
of the successor Rights Agent; and in all such cases such Rights Certificates
shall have the full force provided in the Rights Certificates and in this
Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
In case at any time the name of the Rights Agent shall be changed and at such
time any of the Rights Certificates shall have been countersigned but not
delivered, the Rights Agent may adopt the countersignature under its prior name
and deliver Rights Certificates so countersigned; and in case at that time any
of the Rights Certificates shall not have been countersigned, the Rights Agent
may countersign such Rights Certificates either in its prior name or in its
changed name; and in all such cases such Rights Certificates shall have the full
force provided in the Rights Certificates and in this Agreement. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>27.</FONT></P>

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<A NAME="Sec20"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
20. <I>Duties of Rights Agent</I>. The Rights Agent undertakes to perform only
the duties and obligations expressly imposed by this Agreement upon the
following terms and conditions, all of which the Company and the holders of
Rights Certificates, by their acceptance thereof, shall be bound, and no implied
duties or obligations shall be read into this Agreement against the Rights
Agent: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
Before the Rights Agent acts or refrains from acting, it may consult with legal
counsel of its choice (who may be legal counsel for the Company), and the advice
or opinion of such counsel shall be full and complete authorization and
protection to the Rights Agent and the Rights Agent shall incur no liability for
or in respect of, as to any action taken suffered or omitted by it in good faith
and in accordance with such advice or opinion. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Whenever in the administration, exercise and performance of its duties under
this Agreement the Rights Agent shall deem it necessary or desirable that any
fact or matter be proved or established by the Company prior to taking,
suffering or omitting to take any action hereunder, such fact or matter (unless
other evidence in respect thereof be herein specifically prescribed) may be
deemed to be conclusively proved and established by a certificate signed by any
officer of the Company and delivered to the Rights Agent; and such certificate
shall be full and complete authorization and protection to the Rights Agent for
or in respect of any action taken, suffered or omitted in good faith by it under
the provisions of this Agreement in reliance upon such certificate. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
The Rights Agent shall be liable hereunder to the Company and any other Person
only for its own gross negligence or willful misconduct. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
The Rights Agent shall not be liable for or by reason of any of the statements
of fact or recitals contained in this Agreement or in the Rights Certificates
(except its countersignature thereof) or be required to verify the same, but all
such statements and recitals are and shall be deemed to have been made by the
Company only. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
The Rights Agent shall not be under any responsibility or have any liability in
respect of the legality, validity or enforceability of this Agreement or the
execution and delivery hereof (except the due execution by the Rights Agent) or
in respect of the legality, validity or enforceability or the execution of any
Rights Certificate (except its countersignature); nor shall it be liable or
responsible for any breach by the Company of any covenant or condition contained
in this Agreement or in any Rights Certificate; nor shall it be responsible for
any change in the exercisability of the Rights (including the Rights becoming
void pursuant to Section 11(a)(ii)) or any change or adjustment in the terms of
the Rights (including the manner, method or amount thereof) provided for in
Section 3, 11, 13, 23 or 24, or the ascertaining of the existence of facts that
would require any such change or adjustment (except with respect to the exercise
of Rights evidenced by Rights Certificates after receipt of the certificate
described in Section 12, upon which the Rights Agent may rely); nor shall it by
any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any Units of Preferred Stock or other securities
to be issued upon the exercise of any Rights or as to whether any such security
will, when issued, be validly authorized and issued, fully paid and
nonassessable. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>28.</FONT></P>

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<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
The Company agrees that it will perform, execute, acknowledge and deliver or
cause to be performed, executed, acknowledged and delivered all such further and
other acts, instruments and assurances as may reasonably be required by the
Rights Agent for the carrying out or performing by the Rights Agent of the
provisions of this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)
The Rights Agent is hereby authorized and directed to accept instructions with
respect to the administration, exercise and performance of its duties hereunder
from any one officer of the Company, and to apply to such officers for advice or
instructions in connection with its duties under this Agreement, and such
instructions shall be full authorization and protection to the Rights Agent and
the Rights Agent shall not be responsible or liable for, or in respect of, any
action taken, suffered or omitted to be taken by it in good faith in accordance
with instructions of any such officer or for any delay in acting while waiting
for those instructions. The Rights Agent shall be fully authorized and protected
in relying upon the most recent instructions received from such officers. Any
application by the Rights Agent for written instructions from the Company may,
at the option of the Rights Agent, set forth in writing any action proposed to
be taken, suffered or omitted by the Rights Agent under this Agreement and the
date on and/or after which such action shall be taken or such omission shall be
effective. The Rights Agent shall not be liable for any action taken or suffered
by, or omission of, the Rights Agent in accordance with a proposal included in
any such application on or after the date specified in such application (which
date shall not be less than five Business Days after the date any officer of the
Company actually received such application, unless any such officer shall have
consented in writing to an earlier date) unless, prior to taking any such action
(or the effective date in the case of an omission), the Rights Agent shall have
received written instructions in response to such application specifying the
action to be taken, suffered or omitted. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)
The Rights Agent and any stockholder, affiliate, director, officer or employee
of the Rights Agent may buy, sell or deal in any of the Rights or other
securities of the Company or become pecuniarily interested in any transaction in
which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not Rights Agent
under this Agreement. Nothing herein shall preclude the Rights Agent, or any
such stockholder, affiliate, director, officer or employee from acting in any
other capacity for the Company or for any other Person. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
The Rights Agent may execute and exercise any of the rights or powers vested in
it or perform any duty under this Agreement either itself (through its
directors, officers and employees) or by or through its attorneys or agents, and
the Rights Agent shall not be answerable or accountable for any act, omission,
default, neglect or misconduct of any such attorneys or agents or for any loss
to the Company resulting from any such act, omission, default, neglect or
misconduct, provided reasonable care was exercised in the selection and
continued employment thereof. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>29.</FONT></P>

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<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)
No provision of this Agreement shall require the Rights Agent to expend or risk
its own funds or otherwise incur any financial liability in the performance of
any of its duties hereunder or in the exercise of its rights if the Rights Agent
in good faith believes that repayment of such funds or adequate indemnification
against such risk or liability is not reasonably assured to it. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)
If, with respect to any Rights Certificate surrendered to the Rights Agent for
exercise, transfer, split up, combination or exchange, the certification on the
form of assignment or form of election to purchase, as the case may be, that has
been completed to certify the holder is an Acquiring Person (or an Affiliate or
Associate thereof) has either not been completed or in any manner indicates any
other response thereto, the Rights Agent shall not take any further action with
respect to such requested exercise, transfer, split up, combination or exchange,
without first consulting with the Company. </FONT></P>

<A NAME="Sec21"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
21. <I>Change of Rights Agent<B></B></I><B>.</B> The Rights Agent or any
successor Rights Agent may resign and be discharged from its duties under this
Agreement upon thirty days&#146; notice in writing mailed to the Company and to
each transfer agent of the Common Stock of the Company or Preferred Stock (as to
which the Rights Agent has received prior written notice) by registered or
certified mail, and the Company shall mail notice thereof to the holders of the
Rights Certificates by first-class mail. The Company may remove the Rights Agent
or any successor Rights Agent upon thirty days&#146; notice in writing, mailed
to the Rights Agent or successor Rights Agent, as the case may be, and to each
transfer agent of the Common Stock or Preferred Stock (as to which the Rights
Agent has received prior written notice) by registered or certified mail, and to
the holders of the Rights Certificates by first-class mail. If the Rights Agent
shall resign or be removed or shall otherwise become incapable of acting, the
Company shall appoint a successor to the Rights Agent. If the Company shall fail
to make such appointment within a period of thirty days after giving notice of
such removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of a
Rights Certificate (who shall, with such notice, submit such holder&#146;s
Rights Certificate for inspection by the Company), then the registered holder of
any Rights Certificate may apply to any court of competent jurisdiction for the
appointment of a new Rights Agent. Any successor Rights Agent, whether appointed
by the Company or by such a court, shall be a corporation organized and doing
business under the laws of the United States or of any state of the United
States, in good standing, authorized under such laws to exercise corporate trust
or stock transfer powers, and subject to supervision or examination by federal
or state authority and which has at the time of its appointment as Rights Agent
a combined capital and surplus of at least $50 million. After appointment, the
successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer
to the successor Rights Agent any property at the time held by it hereunder, and
execute and deliver any further assurance, conveyance, act or deed necessary for
the purpose. Not later than the effective date of any such appointment the
Company shall file notice thereof in writing with the predecessor Rights Agent
and each transfer agent of the Common Stock or Preferred Stock, and mail a
notice thereof in writing to the registered holders of the Rights
Certificates.&nbsp; Failure to give any notice provided for in this Section 21,
however, or any defect therein, shall not affect the legality or validity of the
resignation or removal of the Rights Agent or the appointment of the successor
Rights Agent, as the case may be. </FONT></P>

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<A NAME="Sec22"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
22. <I>Issuance of New Rights Certificates</I>. Notwithstanding any of the
provisions of this Agreement or of the Rights to the contrary, the Company may,
at its option, issue new Rights Certificates evidencing Rights in such form as
may be approved by its board of directors to reflect any adjustment or change in
the Purchase Price and the number or kind or class of shares or other securities
or property purchasable under the Rights Certificates made in accordance with
the provisions of this Agreement. In addition, in connection with the issuance
or sale of shares of Common Stock of the Company following the Distribution Date
and prior to the Expiration Date, the Company (a)&nbsp;shall, with respect to
shares of Common Stock of the Company so issued or sold pursuant to the exercise
of stock options or under any employee benefit plan or arrangement or upon the
exercise, conversion or exchange of securities of the Company currently
outstanding or issued at any time in the future by the Company and (b)&nbsp;may,
in any other case, if deemed necessary or appropriate by the board of directors
of the Company issue Rights Certificates representing the appropriate number of
Rights in connection with such issuance or sale; <I>provided</I>,
<I>however</I>, that (i)&nbsp;no such Rights Certificate shall be issued and
this sentence shall be null and void <I>ab</I> <I>initio</I> if, and to the
extent that, such issuance or this sentence would create a significant risk of
or result in material adverse tax consequences to the Company or the Person to
whom such Rights Certificate would be issued or would create a significant risk
of or result in such options&#146; or employee plans&#146; or arrangements&#146;
failing to qualify for otherwise available special tax treatment and
(ii)&nbsp;no such Rights Certificate shall be issued if, and to the extent that,
appropriate adjustment shall otherwise have been made in lieu of the issuance
thereof. </FONT></P>

<A NAME="Sec23"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
23. <I>Redemption and Termination</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
The Company may, at its option, upon approval by the board of directors, at any time on
or prior to the Close of Business (or such later date as may be determined by its board
of directors) on the earlier of (i)&nbsp;the Distribution Date or (ii)&nbsp;the Final
Expiration Date, redeem all but not less than all of the then outstanding Rights at a
redemption price of $0.01 per Right, appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the date of this Agreement (such
redemption price being hereinafter referred to as the &#147;<I>Redemption Price</I>&#148;),
and the Company may, at its option, pay the Redemption Price either in cash, shares of
Common Stock of the Company (based on the Current Per Share Market Price thereof at the
time of redemption), or any other form of consideration deemed appropriate by its board
of directors. The redemption of the Rights by the board of directors of the Company may
be made effective at such time on such basis and with such conditions as the board of
directors of the Company in its sole discretion may establish. Any such redemption will
be effective immediately upon the action of the board of directors of the Company
ordering the same, unless such action of the board of directors of the Company expressly
provides that such redemption will be effective at a subsequent time or upon the
occurrence or nonoccurrence of one or more specified events (in which case such
redemption will be effective in accordance with the provisions of such action of the
board of directors of the Company). </FONT> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Immediately upon the effectiveness of the redemption of the Rights pursuant to
Section 23(a), and without any further action and without any notice, the right
to exercise the Rights will terminate and the only right thereafter of the
holders of Rights shall be to receive the Redemption Price. The Company shall
promptly give public notice of any such redemption (with a copy to the Rights
Agent); <I>provided</I>, <I>however</I>, that the failure to give, or any defect
in, any such notice shall not affect the validity of such redemption. Within 10
days after the effectiveness of the redemption of the Rights, the Company shall
give notice of such redemption to the Rights Agent and shall mail a notice of
redemption to all the holders of the then outstanding Rights at their last
addresses as they appear upon the registry books of the Rights Agent or, prior
to the Distribution Date, on the registry books of the transfer agent for the
Common Stock. Any notice which is mailed in such manner shall be deemed given,
whether or not the holder receives the notice. Each notice of redemption will
state the method by which the payment of the Redemption Price will be made.
Neither the Company nor any of its Affiliates or Associates may redeem, acquire
or purchase for value any Rights at any time in any manner other than that
specifically set forth in this Section 23 or in Section 24 hereof, or other than
in connection with the purchase of shares of Common Stock prior to the
Distribution Date. </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Notwithstanding anything contained in this Agreement to the contrary, the Rights
shall not be exercisable pursuant to Section 7(a) hereof at any time when the
Rights are redeemable hereunder. </FONT></P>

<A NAME="Sec24"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
24. <I>Exchange</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
The Company, at its option, upon approval by its board of directors, at any time after
any Person becomes an Acquiring Person, may exchange all or part of the then outstanding
and exercisable Rights (which shall not include Rights that have become null and void
pursuant to the provisions of Section 7(e) hereof) for Units of Preferred Stock at an
exchange ratio equal to, subject to adjustment to reflect stock splits, stock dividends
and similar transactions occurring after the date hereof, that number obtained by
dividing the Purchase Price by the then Current Per Share Market Price per Unit of
Preferred Stock on the earlier of (i)&nbsp;the date on which any Person becomes an
Acquiring Person and (ii)&nbsp;the date on which a tender or exchange offer by any Person
(other than the Company, any Subsidiary of the Company, any employee benefit plan
maintained by the Company or any of its Subsidiaries or any trustee or fiduciary with
respect to such plan acting in such capacity) is commenced within the meaning of Rule
14d-2(a) of the Exchange Act Regulations or any successor rule, if upon consummation
thereof such Person would be the Beneficial Owner of 15% or more of the shares of Common
Stock of the Company then outstanding (such exchange ratio being hereinafter referred to
as the &#147;<I>Section&nbsp;24(a) Exchange Ratio</I>&#148;). Notwithstanding the
foregoing, the Company may not effect such exchange at any time after any Person (other
than the Company, any Subsidiary of the Company, any employee benefit plan maintained by
the Company or any of its Subsidiaries, or any trustee or fiduciary with respect to such
plan acting in such capacity), together with all Affiliates and Associates of such
Person, becomes the Beneficial Owner of 50% or more of the shares of Common Stock of the
Company then outstanding. </FONT> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Immediately upon the action of the board of directors of the Company ordering
the exchange of any Rights pursuant to subsection (a) of this Section 24 and
without any further action and without any notice, the right to exercise such
Rights shall terminate and the only right thereafter of a holder of such Rights
shall be to receive that number of Units of Preferred Stock equal to the number
of such Rights held by such holder multiplied by the Section&nbsp;24(a) Exchange
Ratio.&nbsp; The Company shall promptly give public notice of any such exchange
(with a copy provided to the Rights Agent); <I>provided</I>, <I>however</I>,
that the failure to give, or any defect in, such notice shall not affect the
validity of such exchange. The Company promptly shall mail a notice of any such
exchange to all of the holders of such Rights at their last addresses as they
appear upon the registry books of the Rights Agent. Any notice which is mailed
in the manner provided in this Agreement shall be deemed given, whether or not
the holder receives the notice. Each such notice of exchange will state the
method by which the exchange of Units of Preferred Stock for Rights will be
effected and, in the event of any partial exchange, the number of Rights which
will be exchanged. Any partial exchange shall be effected pro rata<I> </I>based
on the number of Rights (other than Rights which have become null and void
pursuant to the provisions of Section&nbsp;7(e) hereof) held by each holder of
Rights. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
In the event that the number of shares of Preferred Stock authorized by the
Company&#146;s certificate of incorporation but not outstanding or reserved for
issuance for purposes other than upon exercise of the Rights is not sufficient
to permit any exchange of Rights as contemplated in accordance with this
Section&nbsp;24, the Company shall take all such action as may be necessary to
authorize additional shares of Preferred Stock for issuance upon exchange of the
Rights or make adequate provision to substitute (1) cash, (2)&nbsp;Common Stock
of the Company or other equity securities of the Company, (3) debt securities of
the Company, (4) other assets, or (5) any combination of the foregoing, having
an aggregate value equal to the aggregate Current Per Share Market Price of the
Units of Preferred Stock that would otherwise be issuable in such exchange, all
as determined by the board of directors of the Company (which determination
shall be described in a statement filed with the Rights Agent and shall be
conclusive and binding on the Rights Agent, the holders of the Rights and all
other Persons). To the extent that the Company determines that some action need
be taken pursuant to Section 24(a) hereof, the board of directors of the Company
may temporarily suspend the exercisability of the Rights for a period of up to
sixty days following the date on which the event described in Section 24(a)
hereof shall have occurred, in order to seek any authorization of additional
shares of Preferred Stock and/or to decide the appropriate form of distribution
to be made pursuant to the above provision and to determine the value thereof.
Upon any such suspension, the Company shall notify the Rights Agent thereof and
issue a public announcement stating that the exercisability of the Rights has
been temporarily suspended, as well as a public announcement at such time as the
supervision is no longer in effect (a copy of which shall be provided to the
Rights Agent). </FONT></P>

<A NAME="Sec25"></A>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
25. <I>Notice of Certain Events</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
In case the Company shall propose (i)&nbsp;to pay any dividend payable in stock of any
class to the holders of its Preferred Stock or to make any other distribution to the
holders of its Preferred Stock (other than a regular quarterly cash dividend), (ii)&nbsp;to
offer to the holders of its Preferred Stock rights or warrants to subscribe for or to
purchase any additional Units of Preferred Stock or shares of stock of any class or any
other securities, rights or options, (iii)&nbsp;to effect any reclassification of its
Preferred Stock (other than a reclassification involving only the subdivision of
outstanding Preferred Stock), (iv) to effect any consolidation or merger into or with any
other Person (other than a Subsidiary of the Company in a transaction which complies with
Section&nbsp;11(o) hereof), or to effect any sale or other transfer (or to permit one or
more of its Subsidiaries to effect any sale or other transfer), in one or more
transactions, of 50% or more of the assets or earning power of the Company and its
Subsidiaries (taken as a whole) to, any other Person, (v)&nbsp;to effect the liquidation,
dissolution or winding up of the Company or (vi) to declare or pay any dividend on the
Common Stock of the Company payable in shares of Common Stock of the Company or to effect
a subdivision, combination or consolidation of the shares of Common Stock of the Company
(by reclassification or otherwise than by payment of dividends in shares of Common
Stock), then, in each such case, the Company shall give to the Rights Agent and each
holder of a Rights Certificate, in accordance with Section 26 hereof, a notice of such
proposed action, which shall specify the record date for the purposes of such stock
dividend, or distribution of rights or warrants, or the date on which such
reclassification, consolidation, merger, sale, transfer, liquidation, dissolution, or
winding up is to take place and the date of participation therein by the holders of the
shares of Common Stock of the Company and/or shares of Preferred Stock, if any such date
is to be fixed, and such notice shall be so given in the case of any action covered by
clause (i) or (ii) above at least ten days prior to the record date for determining
holders of the shares of Preferred Stock for purposes of such action, and in the case of
any such other action, at least ten days prior to the date of the taking of such proposed
action or the date of participation therein by the holders of the shares of Common Stock
of the Company and/or shares of Preferred Stock, whichever shall be the earlier. </FONT> </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>33.</FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
In case any of the events set forth in Section 11(a)(ii) hereof shall occur,
then the Company shall as soon as practicable thereafter give to each holder of
a Rights Certificate, in accordance with Section 26 hereof, a notice of the
occurrence of such event, which notice shall describe such event and the
consequences of such event to holders of Rights under Section 11(a)(ii) hereof.
In the event any Person becomes an Acquiring Person, the Company will promptly
notify the Rights Agent thereof. </FONT></P>

<A NAME="Sec26"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
26. <I>Notices</I>. Notices or demands authorized by this Agreement to be given
or made by the Rights Agent or by the holder of any Rights Certificate to or on
the Company shall be sufficiently given or made if sent by first-class mail,
postage prepaid, addressed (until another address is filed in writing with the
Rights Agent) or by facsimile transmission as follows: </FONT></P>

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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
BioCryst Pharmaceuticals, Inc.<BR>
2190 Parkway Lake Drive<BR>
Birmingham, Alabama 35244<BR>
Attention: General Counsel<BR>
Facsimile No.: (205) 444-4640
</FONT></TD>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
with a copy (which shall not constitute notice) to:</FONT></TD>
</TR>
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<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Brobeck, Phleger &amp; Harrison LLP<BR>
370 Interlocken Boulevard, Suite 500<BR>
Broomfield, Colorado 80021<BR>
Attention: Richard R. Plumridge<BR>
Facsimile No.: (303) 410-2199
</FONT></TD>
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<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Subject to the provisions of Section
21 hereof, any notice or demand authorized by this Agreement to be given or made by the
Company or by the holder of any Rights Certificate to or on the Rights Agent shall be
sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until
another address is filed in writing by the Rights Agent with the Company) as follows:  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>34.</FONT></P>

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American Stock Transfer &amp; Trust Company<BR>
59 Maiden Lane<BR>
New York, NY 10038<BR>
Attn: Herb Lemmer, Senior Vice President and General Counsel
</FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notices or demands authorized by
this Agreement to be given or made by the Company or the Rights Agent to the holder of
any Rights Certificate shall be sufficiently given or made if sent by first-class mail,
postage prepaid, addressed to such holder at the address of such holder as shown on the
registry books of the Company.  </FONT></P>

<A NAME="Sec27"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
27. <I>Supplements and Amendments</I>. Prior to the Distribution Date, the
Company may supplement or amend this Agreement in any respect, without the
approval of any holders of Rights, by action of its board of directors. From and
after the Distribution Date, the Company may from time to time supplement or
amend this Agreement without the approval of any holders of Rights, by action of
its board of directors in order (i)&nbsp;to cure any ambiguity, (ii)&nbsp;to
correct or supplement any provision contained herein which may be defective or
inconsistent with any other provisions herein, (iii)&nbsp;to shorten or lengthen
any time period hereunder, or (iv)&nbsp;to change or supplement the provisions
hereunder in any manner which the Company may deem necessary or desirable and
which shall not adversely affect the interests of the holders of Rights
Certificates (other than an Acquiring Person or an Affiliate or Associate of an
Acquiring Person), including, without limitation, to change the Purchase Price,
the Redemption Price, any time periods herein specified, and any other term
hereof, any such supplement or amendment to be evidenced by a writing signed by
the Company and the Rights Agent; <I>provided</I>, however, that from and after
such time as any Person becomes an Acquiring Person, this Agreement shall not be
amended in any manner which would adversely affect the interests of the holders
of Rights. Upon receipt of a certificate from an appropriate officer of the
Company that the proposed supplement or amendment is consistent with this
Section 27 and, after such time as any Person has become an Acquiring Person,
that the proposed supplement or amendment does not adversely affect the
interests of the holders of Rights, the Rights Agent shall execute such
supplement or amendment. </FONT></P>

<A NAME="Sec28"></A>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
28. <I>Successors</I>. All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit of their
respective successors and assigns hereunder. </FONT></P>

<A NAME="Sec29"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
29. <I>Determinations and Actions by the Board of Directors</I>. For all
purposes of this Agreement, any calculation of the number of shares of Common
Stock of the Company outstanding at any particular time, including for purposes
of determining the particular percentage of such outstanding shares of Common
Stock of the Company of which any Person is the Beneficial Owner, shall be made
in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the Exchange Act
Regulations. The board of directors of the Company shall have the exclusive
power and authority to administer this Agreement and to exercise all rights and
powers specifically granted to the board of directors, or the Company, or as may
be necessary or advisable in the administration of this Agreement, including,
without limitation, the right and power to (i)&nbsp;interpret the provisions of
this Agreement and (ii)&nbsp;make all determinations or calculations deemed
necessary or advisable for the administration of this Agreement (including a
determination to redeem or not redeem the Rights or to amend the Agreement). All
such actions, calculations, interpretations and determinations (including, for
purposes of clause (y) below, all omissions with respect to the foregoing),
which are done or made by the board of directors of the Company in good faith,
shall (x)&nbsp;be final, conclusive and binding on the Company, the Rights
Agent, the holders of the Rights Certificates and all other Persons and
(y)&nbsp;not subject the board of directors of the Company to any liability to
the holders of the Rights. The Rights Agent shall be entitled to assume that the
Board of Directors acted in good faith and shall be fully protected and incur no
liability in reliance thereon. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>35.</FONT></P>

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<A NAME="Sec30"></A>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
30. <I>Benefits of this Agreement</I>. Nothing in this Agreement shall be
construed to give to any Person other than the Company, the Rights Agent and the
registered holders of the Rights Certificates (and, prior to the Distribution
Date, shares of Common Stock of the Company) any legal or equitable right,
remedy or claim under this Agreement; but this Agreement shall be for the sole
and exclusive benefit of the Company, the Rights Agent and the registered
holders of the Rights Certificates (and, prior to the Distribution Date, shares
of Common Stock of the Company). </FONT></P>

<A NAME="Sec31"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
31. <I>Severability</I>. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to be
invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated;
<I>provided</I>, <I>however</I>, that notwithstanding anything in this Agreement
to the contrary, if any such term, provision, covenant or restriction is held by
such court or authority to be invalid, void or unenforceable and the board of
directors of the Company determines in its good faith judgment that severing the
invalid language from this Agreement would adversely affect the purpose or
effect of this Agreement and the right of redemption set forth in Section 23
hereof shall have expired, such right shall be reinstated and shall not expire
until the tenth Business Day following the date of such determination by the
board of directors of the Company. </FONT></P>

<A NAME="Sec32"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
32. <I>Governing Law</I>. This Agreement and each Rights Certificate issued
hereunder shall be deemed to be a contract made under the laws of the State of
Delaware and for all purposes shall be governed by and construed in accordance
with the internal laws of the State of Delaware applicable to contracts to be
made and performed entirely within such state, without regard to the
choice-of-law or conflict-of-laws principles of any jurisdiction. </FONT></P>

<A NAME="Sec33"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
33. <I>Counterparts</I>. This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute one and the same instrument. </FONT></P>

<A NAME="Sec34"></A>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
34. <I>Descriptive Headings</I>. Descriptive headings of the several sections of this
Agreement are inserted or convenience only and shall not control or affect the meaning or
construction of any of the provisions of this Agreement. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>36.</FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed, all as of the day and year first above written. </FONT></P>

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<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>
<B>BIOCRYST PHARMACEUTICALS, INC.</B><BR><BR><BR>
By:  /s/ W. Randall Pittman<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name:   W. Randall Pittman<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Title: Chief Financial Officer<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
</FONT></TD>
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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>
<B>AMERICAN STOCK TRANSFER &amp; TRUST COMPANY</B><BR><BR><BR>
By:  /s/ Herb Lemmer<BR>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Name: Herb Lemmer<BR>
Title: Senior Vice President and General Counsel
</FONT></TD>
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<A NAME="EXa"></A>

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<P ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>Exhibit A</I> </FONT></P>

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

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

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

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

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SERIES B
JUNIOR PARTICIPATING PREFERRED STOCK</FONT></H1>

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

<!-- 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="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>
(Pursuant to Section 151 of the<BR>
Delaware General Corporation Law)
</FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BioCryst
Pharmaceuticals, Inc., a corporation organized and existing under the General
Corporation Law of the State of Delaware (hereinafter called the
&#147;<I>Corporation</I>&#148;), hereby certifies that the following resolution
was adopted by the board of directors of the Corporation as required by
Section&nbsp;151 of the General Corporation Law at a meeting duly called and
held on June 14, 2002; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RESOLVED,
that pursuant to the authority granted to and vested in the board of directors
of the Corporation (the &#147;<I>Board</I>&#148;) in accordance with the
provisions of the certificate of incorporation of the Corporation, as currently
in effect, the Board hereby creates a series of Preferred Stock, par value
$0.001 per share (the &#147;<I>Preferred Stock</I>&#148;), of the Corporation
and hereby states the designation and number of shares, and fixes the relative
rights, preferences, and limitations thereof as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series B Junior Participating Preferred Stock:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1. <I>Designation and Amount</I>. The shares of such series shall be designated
as &#147;Series B Junior Participating Preferred Stock&#148; (the
&#147;<I>Series B Preferred Stock</I>&#148;) and the number of shares
constituting the Series B Preferred Stock shall be 21,500. Such number of shares
may be increased or decreased by resolution of the Board of Directors;
<I>provided</I>, that no decrease shall reduce the number of shares of Series B
Preferred Stock to a number less than the number of shares then outstanding plus
the number of shares reserved for issuance upon the exercise of outstanding
options, rights or warrants or upon the conversion of any outstanding securities
issued by the Corporation convertible into Series B Preferred Stock. </FONT></P>

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

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
2. <I>Dividends and Distributions</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
Subject to the rights of the holders of any shares of any series of Preferred Stock (or
any similar stock) ranking prior and superior to the Series B Preferred Stock with
respect to dividends, each holder of a share of Series B Preferred Stock, in preference
to the holders of shares of Common Stock, par value $0.01 per share (the &#147;<I>Common
Stock</I>&#148;), of the Corporation, and of any other junior stock, shall be entitled to
receive, when declared by the Board out of funds legally available for the purpose,
dividends in an amount per share (rounded to the nearest cent) equal to, subject to the
provision for adjustment hereinafter set forth, 1,000 times the aggregate per share
amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in
kind) of all non-cash dividends or other distributions, other than a dividend payable in
shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by
reclassification or otherwise), declared on the Common Stock. In the event the
Corporation shall, at any time after June 14, 2002 (the &#147;<I>Rights Declaration </I>Date&#148;),
declare or pay any dividend on the Common Stock payable in shares of Common Stock, or
effect a subdivision or combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock (and an equivalent
dividend is not declared on the Series B Preferred Stock or the Series B Preferred Stock
is not similarly subdivided or combined), then in each such case the amount to which
holders of shares of Series B Preferred Stock were entitled immediately prior to such
event under the preceding sentence shall be adjusted by multiplying such amount by a
fraction, the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of shares of
Common Stock that were outstanding immediately prior to such event. </FONT> </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
The Corporation shall declare a dividend or distribution on the shares of Series
B Preferred Stock as provided in Section 2(a) immediately after it declares a
dividend or distribution on the Common Stock (other than a dividend payable in
shares of Common Stock); <I>provided</I>, <I>however</I>, that, in no event
shall a dividend or distribution be declared by the Board on the Common Stock
for which it does not declare and pay the dividend required to be declared on
the Preferred Stock pursuant to Section 2(a). </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Accrued but unpaid dividends shall not bear interest. Dividends paid on the
shares of Series B Preferred Stock in an amount less than the total amount of
such dividends at the time accrued and payable on such shares shall be allocated
pro rata on a share-by-share basis among all such shares at the time
outstanding. The Board may fix a record date for the determination of holders of
shares of Series B Preferred Stock entitled to receive payment of a dividend or
distribution declared thereon, which record date shall be not more than sixty
days prior to the date fixed for the payment thereof. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3. <I>Voting Rights</I>. The holders of shares of Series B Preferred Stock shall have the following
voting rights:</FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
Subject to the provision for adjustment hereinafter set forth, each share of
Series B Preferred Stock shall entitle the holder thereof to 1,000 votes on all
matters submitted to a vote of the stockholders of the Corporation. In the event
the Corporation shall, at any time after the Rights Declaration Date, declare or
pay any dividend on the Common Stock payable in shares of Common Stock, or
effect a subdivision or combination or consolidation of the outstanding shares
of Common Stock (by reclassification or otherwise than by payment of a dividend
in shares of Common Stock) into a greater or lesser number of shares of Common
Stock (and an equivalent dividend is not declared on the Series B Preferred
Stock or the Series B Preferred Stock is not similarly subdivided or combined),
then in each such case the number of votes per share to which holders of shares
of Series B Preferred Stock were entitled immediately prior to such event shall
be adjusted by multiplying such number by a fraction, the numerator of which is
the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event. </FONT></P>

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

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<BR>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Except as otherwise provided herein, in the Certificate of Incorporation, in any
other Certificate of Designation creating a series of Preferred Stock or any
similar stock, or by law, the holders of shares of Series B Preferred Stock and
the holders of shares of Common Stock and any other capital stock of the
Corporation having general voting rights shall vote together as one class on all
matters submitted to a vote of stockholders of the Corporation. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Except as set forth herein, or as otherwise provided by law, holders of Series B
Preferred Stock shall have no special voting rights and their consent shall not
be required (except to the extent they are entitled to vote with holders of
Common Stock as set forth herein) for taking any corporate action. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
4. <I>Certain Restrictions</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
Whenever quarterly dividends or other dividends or distributions payable on the Series B
Preferred Stock as provided in Section 2 are in arrears, thereafter and until all accrued
and unpaid dividends and distributions, whether or not declared, on shares of Series B
Preferred Stock outstanding shall have been paid in full, the Corporation shall not:
</FONT> </FONT></P>

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<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
declare or pay dividends, or make any other distributions, on any shares of stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding up) to the
Series B Preferred Stock; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
declare or pay dividends, or make any other distributions, on any shares of stock ranking
on a parity (either as to dividends or upon liquidation, dissolution or winding up) with
the Series B Preferred Stock, except dividends paid ratably on the shares of Series B
Preferred Stock and all such parity stock on which dividends are payable or in arrears in
proportion to the total amounts to which the holders of all such shares are then
entitled; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
redeem or purchase or otherwise acquire for consideration shares of any stock ranking
junior (either as to dividends or upon liquidation, dissolution or winding up) to the
Series B Preferred Stock; <I>provided</I>, that the Corporation may at any time
redeem, purchase or otherwise acquire shares of any such junior stock in exchange for
shares of any stock of the Corporation ranking junior (either as to dividends or upon
dissolution, liquidation or winding up) to the Series B Preferred Stock; or </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
redeem or purchase or otherwise acquire for consideration any shares of Series B
Preferred Stock, or any shares of stock ranking on a parity with the Series B Preferred
Stock, except in accordance with a purchase offer made in writing or by publication (as
determined by the Board) to all holders of such shares upon such terms as the Board,
after consideration of the respective annual dividend rates and other relative rights and
preferences of the respective series and classes, shall determine in good faith will
result in fair and equitable treatment among the respective series or classes. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>A-3</FONT></P>

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<BR>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
The Corporation shall not permit any subsidiary of the Corporation to purchase
or otherwise acquire for consideration any shares of stock of the Corporation
unless the Corporation could, under Section 4(a), purchase or otherwise acquire
such shares at such time and in such manner. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5. <I>Reacquired Shares</I>. Any shares of Series B Preferred Stock purchased or
otherwise acquired by the Corporation in any manner whatsoever shall be retired
and cancelled promptly after the acquisition thereof. All such shares shall upon
their cancellation become authorized but unissued shares of Preferred Stock and
may be reissued as part of a new series of Preferred Stock subject to the
conditions and restrictions on issuance set forth herein, in the certificate of
incorporation, or in any other certificate of designation creating a series of
Preferred Stock or any similar stock or as otherwise required by law. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Section
6. <I>Liquidation, Dissolution or Winding Up</I>.</FONT><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;(a)
Upon any liquidation, dissolution or winding up of the Corporation, no distribution shall
be made (i) to the holders of shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series B Preferred Stock unless,
prior thereto, the holders of shares of Series B Preferred Stock shall have received the
greater of (x) $1,000 per share, plus an amount equal to accrued and unpaid dividends and
distributions thereon to the date of such payment (the &#147;<I>Series B Liquidation
Preference</I>&#148;) and (y) an aggregate amount per share, subject to the provision for
adjustment hereinafter set forth, equal to the product of 1,000 times the aggregate
amount to be distributed per share to holders of shares of Common Stock, or (ii) to the
holders of shares of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series B Preferred Stock, except
distributions made ratably on the Series B Preferred Stock and all such parity stock in
proportion to the total amounts to which the holders of all such shares are entitled upon
such liquidation, dissolution or winding up. In the event the Corporation shall, at any
time after the Rights Declaration Date<B>,</B>declare or pay any dividend on the Common
Stock payable in shares of Common Stock, or effect a subdivision or combination or
consolidation of the outstanding shares of Common Stock (by reclassification or otherwise
than by payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock (and an equivalent dividend is not declared on the Series B
Preferred Stock or the Series B Preferred Stock is not similarly subdivided or combined),
then in each such case the aggregate amount to which holders of shares of Series B
Preferred Stock were entitled immediately prior to such event under the proviso in clause
(i) of the preceding sentence shall be adjusted by multiplying such amount by a fraction
the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock
that were outstanding immediately prior to such event. </FONT> </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
In the event, however, that there are not sufficient assets available to permit
payment in full of the Series B Liquidation Preference and the liquidation
preferences of all other series of Preferred Stock, if any, which rank on a
parity with the Series B Preferred Stock, then such remaining assets shall be
distributed ratably to the holders of Series B Preferred Stock and such parity
shares in proportion to their respective liquidation preferences. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
7. <I>Consolidation, Merger, etc.</I> In case the Corporation shall enter into
any consolidation, merger, combination or other transaction in which the shares
of Common Stock are exchanged for or converted or changed into other stock or
securities, cash and/or any other property (or into the right to receive any of
the foregoing), then in any such case each share of Series B Preferred Stock
shall at the same time be similarly exchanged, converted or changed into an
amount per share, subject to the provision for adjustment hereinafter set forth,
equal to 1,000 times the aggregate amount of stock, securities, cash and/or any
other property (payable in kind), as the case may be, into which or for which
each share of Common Stock is converted, changed or exchanged. In the event the
Corporation shall, at any time after the Rights Declaration Date, declare or pay
any dividend on the Common Stock payable in shares of Common Stock, or effect a
subdivision or combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares
of Common Stock) into a greater or lesser number of shares of Common Stock (and
an equivalent dividend is not declared on the Series B Preferred Stock or the
Series B Preferred Stock is not similarly subdivided or combined), then in each
such case the amount set forth in the preceding sentence with respect to the
conversion, exchange or change of shares of Series B Preferred Stock shall be
adjusted by multiplying such amount by a fraction, the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8. <I>No Redemption</I>. The shares of Series B Preferred Stock shall not be redeemable. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9. <I>Rank</I>. The Series B Preferred Stock shall rank, with respect to the payment of
dividends and the distribution of assets, junior to all series of any other class of the
Corporation&#146;s Preferred Stock. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
10. <I>Amendment</I>. The certificate of incorporation of the Corporation shall
not be amended, including any amendment through consolidation, merger,
combination or other transaction, in any manner which would materially alter or
change the powers, preferences or special rights of the Series B Preferred Stock
so as to affect them adversely without the affirmative vote of the holders of at
least a majority of the outstanding shares of Series B Preferred Stock, voting
together as a single class. </FONT></P>

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

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<BR>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, this Certificate of Designation is executed on behalf of the
Corporation as of June 17, 2002. </FONT></P>

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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>
<B>BioCryst Pharmaceuticals, Inc.</B><BR><BR><BR>
By:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
</FONT></TD>
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<BR>

<A NAME="EXb"></A>

<!-- MARKER FORMAT-SHEET="Para Right 10" -->
<P ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>Exhibit B</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Form of Rights Certificate</FONT></P>

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<TD ALIGN="LEFT" WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certificate No. R-</FONT></TD>
<TD ALIGN="RIGHT" WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>________ Rights</FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=12%>&nbsp;</TD>
<TD WIDTH=88%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOT
EXERCISABLE AFTER JUNE 24, 2012 OR EARLIER IF REDEMPTION OR EXCHANGE OCCURS. THE RIGHTS
ARE SUBJECT TO REDEMPTION AT THE OPTION OF THE COMPANY AT $0.01 PER RIGHT AND TO EXCHANGE
ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS
BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING
PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF
SUCH RIGHTS MAY&nbsp;BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS
CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN ACQUIRING
PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN
THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED
HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SUCH AGREEMENT]<SUP>*</SUP></FONT></TD>
</TR>
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<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Rights Certificate</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>BIOCRYST PHARMACEUTICALS, INC.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
certifies that _____________, or registered assigns, is the registered owner of
the number of Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Rights Agreement, dated
as of June 14, 2002 (the &#147;<I>Rights Agreement</I>&#148;), between BioCryst
Pharmaceuticals, Inc., a Delaware corporation (the &#147;<I>Company</I>&#148;),
and American Stock Transfer &amp; Trust Company, (the &#147;<I>Rights
Agent</I>&#148;), to purchase from the Company at any time after the
Distribution Date (as such term is defined in the Rights Agreement) and prior to
5:00&nbsp;p.m., New York City time, on June 24, 2012, at the office of the
Rights Agent designated for such purpose, or at the office of its successor as
Rights Agent, one one-thousandth (a &#147;Unit&#148;) of a fully paid
non-assessable share of Series B Junior Participating Preferred Stock, par value
$0.001 per share (the &#147;<I>Series B Preferred Stock</I>&#148;) of the
Company, at a purchase price of $26.00 per Unit of Series B Preferred Stock (the
&#147;<I>Purchase Price</I>&#148;), upon presentation and surrender of this
Rights Certificate with the Form of Election to Purchase and certification duly
executed. The number of Rights evidenced by this Rights Certificate (and the
number of Units of Series B Preferred Stock which may be purchased upon exercise
hereof) set forth above, and the Purchase Price set forth above, are the number
and Purchase Price as of June 24, 2002 based on the Series B Preferred Stock as
constituted at such date. As provided in the Rights Agreement, the Purchase
Price and the number of Units of Series B Preferred Stock which may be purchased
upon the exercise of the Rights evidenced by this Rights Certificate are subject
to modification and adjustment upon the happening of certain events. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SUP>*</SUP>
The bracketed language is to be inserted in place of the preceding sentence
where applicable. </FONT></P>

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

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Rights Certificate is subject to all of the terms, provisions and conditions of
the Rights Agreement, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights
Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates. Copies of
the Rights Agreement are on file at the principal executive offices of the
Company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Rights Certificate, with or without other Rights Certificates, upon surrender at
the office of the Rights Agent designated for such purpose, may be exchanged for
another Rights Certificate or Rights Certificates of like tenor and date
evidencing Rights entitling the holder to purchase a like aggregate number of
Units of Series B Preferred Stock as the Rights evidenced by the Rights
Certificate or Rights Certificates surrendered shall have entitled such holder
to purchase. If this Rights Certificate shall be exercised in part, the holder
shall be entitled to receive upon surrender hereof another Rights Certificate or
Rights Certificates for the number of whole Rights not exercised. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the provisions of the Rights Agreement, the Rights evidenced by this
Certificate may be redeemed by the Company at a redemption price of $0.01 per
Right. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
fractional shares of Series B Preferred Stock will be issued upon the exercise
of any Rights or Rights evidenced hereby (other than fractions which are
integral multiples of one one-thousandth of a share of Series B Preferred Stock,
which may, at the election of the Company, be evidenced by depositary receipts),
but in lieu thereof a cash payment will be made, as provided in the Rights
Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
holder of this Rights Certificate, as such, shall be entitled to vote or receive
dividends or be deemed for any purpose the holder of Units of Series B Preferred
Stock or of any other securities of the Company which may at any time be
issuable on the exercise hereof, nor shall anything contained in the Rights
Agreement or herein be construed to confer upon the holder hereof, as such, any
of the rights of a stockholder of the Company or any right to vote for the
election of directors or upon any matter submitted to stockholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting stockholders (except as
provided in the Rights Agreement), or to receive dividends or subscription
rights, or otherwise, until the Rights or Rights evidenced by this Rights
Certificate shall have been exercised as provided in the Rights Agreement. </FONT></P>

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

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

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 55; page: 55" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Rights Certificate shall not be valid or binding for any purpose until it shall
have been countersigned by the Rights Agent. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WITNESS
the signature of the proper officers of the Company and its corporate seal.
Dated as of June ___, 2002. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Signature (Single)" -->
<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>
<B>BIOCRYST PHARMACEUTICALS, INC.</B><BR><BR>
By:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;
</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<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>Countersigned:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>AMERICAN STOCK TRANSFER &amp;<BR>TRUST COMPANY</B><BR>
as Rights Agent</FONT></P>
<BR>
<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
By:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized Signatory<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
</FONT></P>

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

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 56; page: 56" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Form of Reverse Side of Rights Certificate</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>FORM OF ASSIGNMENT</I></FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Flush 10 In 1" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp;</TD>
<TD WIDTH=94%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(To be executed by the registered holder if such holder desires to transfer the Rights
Certificate.) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<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>FOR VALUE RECEIVED ________________ hereby sells, assigns and transfers unto</FONT></P>

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

<!-- MARKER FORMAT-SHEET="Reg Cover Table 2 Col 10" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
     <TD ALIGN=CENTER><HR SIZE=1 NOSHADE></TD>
</TR>
<TR VALIGN=TOP>
     <TD ALIGN=CENTER WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Please print name and address of transferee)</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<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>this Rights Certificate, together
with all right, title and interest therein, and does hereby irrevocably constitute and
appoint _____________ Attorney, to transfer the within Rights Certificate on the books of
the within-named Company, with full power of substitution.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DATED: _______________, __</FONT></P>

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

<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=40% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Signature
</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<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>Signature Guaranteed:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signatures
must be guaranteed by an &#147;eligible guarantor institution&#148; as defined
in Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as
amended. </FONT></P>

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

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 57; page: 57" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><i>CERTIFICATE</i></FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby certifies that the Rights evidenced by this Rights
Certificate are not beneficially owned by an Acquiring Person or an Affiliate or
Associate thereof (each as defined in the Rights Agreement). </FONT></P>

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

<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=40% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Signature
</FONT></TD>
</TR>
</TABLE>
<BR>

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

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>NOTICE</I></FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
signature in the foregoing Form of Assignment must conform to the name as
written upon the face of this Rights Certificate in every particular, without
alteration or enlargement or any change whatsoever. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event the certification set forth above in the Form of Assignment is not
completed, the Company and the Rights Agent will deem the beneficial owner of
the Rights evidenced by this Rights Certificate to be an Acquiring Person or an
Affiliate or Associate thereof (each as defined in the Rights Agreement) and
such Assignment will not be honored. </FONT></P>

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

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 58; page: 58" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Major 10" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM OF
ELECTION TO PURCHASE</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(To be executed if holder desires to
exercise the Rights Certificate.)  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush 10" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To BIOCRYST PHARMACEUTICALS, INC. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned
hereby irrevocably elects to exercise _____________ Rights represented by this Rights Certificate to purchase the Units of Series B
Preferred Stock issuable upon the exercise of such Rights and requests that
certificates for such Series B Preferred Stock be issued in the name of: </FONT></P>

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

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=BOTTOM>
     <TD WIDTH=27%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please insert social security<BR>
or other identifying number</FONT></TD>
     <TD WIDTH=73%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=BOTTOM>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><HR SIZE=1 NOSHADE></TD></TR>
<TR VALIGN=BOTTOM>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Please print name and address)</FONT></TD></TR>
</TABLE>
<BR>

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

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
such number of Rights shall not be all the Rights evidenced by this Rights
Certificate, a new Rights Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to: </FONT></P>

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

<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=BOTTOM>
     <TD WIDTH=27%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Please insert social security<BR>
or other identifying number</FONT></TD>
     <TD WIDTH=73%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN=BOTTOM>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><HR SIZE=1 NOSHADE></TD></TR>
<TR VALIGN=BOTTOM>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Please print name and address)</FONT></TD></TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<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>DATED: _______________, __</FONT></P>

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

<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=40% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Signature
</FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Width Start" -->
<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>Signature Guaranteed:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signatures
must be guaranteed by an &#147;eligible guarantor institution&#148; as defined
in Rule 17Ad-15 promulgated under the Securities Exchange Act of 1934, as
amended. </FONT></P>

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

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 59; page: 59" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>CERTIFICATE</I></FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned hereby certifies that the Rights evidenced by this Rights
Certificate are not beneficially owned by an Acquiring Person or an Affiliate or
Associate thereof (each as defined in the Rights Agreement). </FONT></P>

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

<BR>

<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=40% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>
Signature
</FONT></TD>
</TR>
</TABLE>
<BR>

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

<!-- MARKER FORMAT-SHEET="Para Cutoff Rule" -->
<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=CENTER>

<!-- MARKER FORMAT-SHEET="Para Center 10" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>NOTICE</I></FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
signature in the foregoing Form of Election to Purchase must conform to the name
as written upon the face of this Rights Certificate in every particular, without
alteration or enlargement or any change whatsoever. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event the certification set forth above in the Form of Election to Purchase,
as the case may be, is not completed, the Company and the Rights Agent will deem
the beneficial owner of the Rights evidenced by this Rights Certificate to be an
Acquiring Person or an Affiliate or Associate thereof (each as defined in the
Rights Agreement) and such Election to Purchase will not be honored. </FONT></P>

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

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 60; page: 60" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<A NAME="EXc"></A>

<!-- MARKER FORMAT-SHEET="Para Right 10" -->
<P ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><I>Exhibit C</I> </FONT></P>

<!-- 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>SUMMARY OF
RIGHTS TO PURCHASE<BR>SHARES OF SERIES B PREFERRED STOCK</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June 14, 2002, the board of directors of BioCryst Pharmaceuticals, Inc. (the
&#147;<I>Company</I>&#148;) declared a dividend distribution of one right (a
&#147;Right&#148;) for each outstanding share of our common stock to
stockholders of record at the close of business on June 24, 2002 (the
&#147;Record Date&#148;). Each Right entitles the registered holder to purchase
from the Company one one-thousandth of a share of Series B Junior Participating
Preferred Stock, par value $0.001 per share (the &#147;<I>Preferred
Stock</I>&#148;), at a purchase price of $26.00,<B> </B>subject to adjustment.
The description and terms of the Rights are set forth in a Rights Agreement (the
&#147;<I>Rights Agreement</I>&#148;) between the Company and American Stock
Transfer &amp; Trust Company, as Rights Agent. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initially,
the Rights will be attached to all common stock certificates representing shares
then outstanding, and no separate Rights certificates will be distributed. The
Rights will separate from the common stock on the distribution date (the
&#147;Distribution Date&#148;). The Distribution Date occurs upon the earlier of
(i) ten days following a public announcement that a person or group of
affiliated or associated persons (an &#147;<I>Acquiring Person</I>&#148;) has
(subject to certain exceptions) acquired, or obtained the right to acquire,
beneficial ownership of 15% or more of the outstanding shares of our common
stock (the &#147;<I>Stock Acquisition Date</I>&#148;), other than as a result of
repurchases of stock by the Company, or (ii) ten days, or such later date as the
board of directors may decide, following the commencement of a tender offer or
exchange offer that would result in a person or group beneficially owning 15% or
more of such outstanding shares of our common stock. The Rights Agreement
specifically allows one of our directors, William W. Featheringill, who
currently beneficially owns more than 15% of the outstanding common stock, to
acquire up to 19.9%, on a beneficial ownership basis, of the Company&#146;s
common stock (measured at the time he acquires common stock) without triggering
the exercisability of the Rights. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
the Distribution Date, (i) the Rights will be evidenced by the common stock
certificates and will be transferred with and only with such common stock
certificates, (ii) new common stock certificates issued after the Record Date
will contain a legend incorporating the Rights Agreement by reference and (iii)
the surrender for transfer of any certificates for common stock outstanding will
also constitute the transfer of the Rights associated with the common stock
represented by such certificate. Prior to the occurrence of a Triggering Event
(as defined below), the Company can require that, in order to exercise Rights, a
number of Rights must be exercised so that only whole shares of Preferred Stock
will be issued. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Rights cannot be exercised until the Distribution Date and will expire at the
close of business on June 24, 2012, unless the Company redeems them as described
below. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shortly
after the Distribution Date, Rights certificates will be mailed to holders of
record of our common stock at the close of business on the Distribution Date
and, after that time, the separate Rights certificates alone will represent the
Rights. Unless our board of directors decides differently, only shares of our
common stock issued prior to the Distribution Date will be issued with Rights. </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" -->
<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>C-1</FONT></P>

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

<!-- *************************************************************************** -->
<!-- MARKER PAGE="sheet: 61; page: 61" -->

<!-- MARKER FORMAT-SHEET="Page Width Begin Rule" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD><HR SIZE=5 NOSHADE>
<BR>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
an Acquiring Person becomes (subject to certain exceptions) the beneficial owner
of 15% or more of the then outstanding shares of common stock (other than
pursuant to an offer for all the outstanding shares of common stock that our
board of directors determines to be fair to and otherwise in the best interests
of the Company and its stockholders), each holder of a Right will thereafter
have the right to receive, upon exercise, preferred stock (or, in certain
circumstances, cash, property or other securities of the company) having a value
equal to two times the exercise price of the Right. If, at any time after the
Stock Acquisition Date, (i) we are acquired in a merger or other business
combination transaction in which we are not the surviving corporation, other
than a merger that results from an offer for all the outstanding shares of
common stock that our board decides is fair and in the best interests of the
Company and its stockholders, or (ii) 50% or more of our assets, cash flow or
earning power is sold or transferred, each holder of a Right, except Rights
which previously have been voided, will have the right to receive, after
exercise of the Right, common stock of the company that acquires us having a
value equal to two times the exercise price of the Right. The events described
in this paragraph are &#147;Triggering Events.&#148; </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
example, at an exercise price of $20 per Right, each Right not owned by an
Acquiring Person (or by certain related parties) following a Triggering Event
would entitle its holder to purchase $40 worth of preferred stock (or other
consideration, as noted above) for $20. Assuming that our common stock had a per
share value of $5 at such time, the holder of each valid Right would be entitled
to purchase preferred stock that would be economically equivalent to eight
shares of our common stock for $20. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
Rights that are, or (under certain circumstances specified in the Rights
Agreement) were, beneficially owned by any Acquiring Person will not be
exercisable. At any time after a person becomes an Acquiring Person and prior to
the acquisition by such person or group of 50% or more of the outstanding common
stock, the board of directors may exchange all or some of the Rights (other than
Rights owned by the person or group which will not be exercisable) , in whole or
in part, at an exchange ratio of one share of common stock, or one
one-thousandth of a share of Preferred Stock (or of a share of a class or series
of our Preferred Stock having equivalent rights, preferences and privileges),
per Right. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
any time until 10 days after the Stock Acquisition Date, the board of directors
of the Company may redeem, all, but not part of, the Rights at a price of $0.01
per Right (payable in cash, common stock or other consideration decided upon by
the board of directors). Immediately upon the action of the board of directors
ordering redemption of the Rights, the Rights will terminate and the only right
of the holders of Rights will be to receive the $0.01 redemption price. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
a Right is exercised, the holder of a Right will not have rights of a
stockholder of the Company such as the right to vote or to receive dividends.
While the distribution of the Rights will not be taxable to stockholders or to
the Company, stockholders may, depending upon the circumstances, recognize
taxable income in the event that the Rights become exercisable for Preferred
Stock (or other consideration) of the Company or for common stock of the
acquiring company. </FONT></P>

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

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
of the provisions of the Rights Agreement may be amended by the board prior to
the Distribution Date. After the Distribution Date, the provisions of the Rights
Agreement may be amended by the board in order to cure any ambiguity, to make
changes which do not adversely affect the interests of holders of Rights, or to
shorten or lengthen any time period under the Rights Agreement, but no amendment
may be made at such time as the Rights are not redeemable. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
copy of the Rights Agreement has been filed with the Securities and Exchange
Commission as an exhibit to a Current Report on Form 8-K. A copy of the Rights
Agreement is available free of charge from the Company. This summary description
of the Rights is not complete and you should refer to the Rights Agreement for
further information. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>C-3</FONT></P>

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<DOCUMENT>
<TYPE>EX-20.1
<SEQUENCE>4
<FILENAME>d50893_ex20-1.htm
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 3.2 Final//EN">
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     <TITLE>Exhibit 20.1</TITLE>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
BIOCRYST PHARMACEUTICALS, INC.<BR>
2190 PARKWAY LAKE DRIVE<BR>
BIRMINGHAM, AL 35244<BR>
205-444-4600&nbsp;&nbsp;205-444-4640 Fax<BR>
www.biocryst.com
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<TD ALIGN="LEFT" WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Contacts:<BR>
BioCryst Pharmaceuticals, Inc.<BR>
Randy Pittman, Chief Financial Officer<BR>
A.K. Schleusner<BR>
(205) 444-4600
</FONT></TD>
<TD ALIGN="LEFT" WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Noonan Russo/Presence Euro RSCG<BR>
Mary Claire Duch<BR>
(212) 696-4455, extension 238
</FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>For Immediate Release</I></B></FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BioCryst
Pharmaceuticals, Inc. Adopts Stockholder Rights Plan</FONT></H1>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2><B>Birmingham,
Alabama &#150; June 17, 2002</B> <B>&#150; </B>BioCryst Pharmaceuticals, Inc.
(Nasdaq NM: BCRX) announced today that on June 14, 2002, its Board of Directors
adopted a stockholder rights plan designed to enable the Company&#146;s
stockholders to realize the long-term value of their investment and to provide
for fair and equal treatment in the event that an unsolicited attempt is made to
acquire BioCryst. BioCryst&#146;s stockholder rights plan is similar to plans
adopted by many other companies, and was not adopted in response to any current
attempt to acquire control of the Company. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&#147;The
Rights Plan is designed to enhance the Board&#146;s ability to protect
stockholder interests if the Company is ever faced with a coercive or unfair
takeover attempt. It is intended to deter and defend against aggressive takeover
tactics and encourage anyone seeking to acquire the Company to negotiate with
the Board prior to attempting a takeover,&#148; said Charles E. Bugg, Ph.D.,
Chairman and Chief Executive Officer. &#147;The stockholder rights plan is being
adopted by the Board as responsible corporate governance.&#148; </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Terms
of the Rights Plan provide for a dividend distribution of one preferred share
purchase right (a &#147;Right&#148;) for each outstanding share of common stock
to holders of record at the close of business on June 24, 2002. Each Right will
entitle stockholders to buy from the Company a unit of preferred stock for
$26.00. The Rights will generally become exercisable if a person or group
acquires 15 percent or more of the Company&#146;s common stock, or commences, or
publicly announces an offer to acquire 15 percent or more of the Company&#146;s
common stock. Currently, BioCryst Director William W. Featheringill,
beneficially owns more than 15 percent of the Company&#146;s common stock. The
Rights Plan specifically provides that Mr. Featheringill may acquire up to, but
not exceed, 19.9 percent beneficial ownership of the Company&#146;s common stock
(measured at the time he acquires shares of the Company&#146;s common stock)
without triggering the exercisability of the Rights. The Rights will expire on
June 24, 2012. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>BioCryst&#146;s
Board of Directors is entitled to redeem the Rights for $0.01 per Right at any
time until ten days after a person or group acquires 15 percent or more of
BioCryst&#146;s common stock, or commences, or publicly announces an offer to
acquire 15 percent or more of the Company&#146;s common stock. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>If
any person becomes the beneficial owner of 15 percent or more of the
Company&#146;s common stock, other than pursuant to a tender or exchange offer
for all the outstanding shares of the Company approved by the Company&#146;s
Board of Directors, then each Right not owned by a 15 percent or-more
stockholder or related </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
BioCryst Pharmaceuticals, Inc.<BR>
Page 2
</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>parties will entitle its holder to
purchase, at the Right&#146;s then current exercise price, shares of the Company&#146;s
preferred stock (or, in certain circumstances as determined by the board, cash, other
property, or other securities) having a value of twice the Right&#146;s then current
exercise price. In addition, after any person has become a 15 percent-or-more
stockholder, if the Company is involved in a merger or other business combination
transaction with another person in which the Company does not survive or in which its
common stock is changed or exchanged, or sells 50 percent or more of its assets or
earning power to another person, each Right will entitle each holder, other than any
person who has become a 15 percent-or-more stockholder, to purchase, at the Right&#146;s
then current exercise price, shares of common stock of such other person having a value
of twice the Right&#146;s then current exercise price.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Further details of the stockholder
rights plan are outlined in a letter that will be mailed to stockholders as of the record
date. In addition, a copy of the rights plan will be filed with the Securities and
Exchange Commission as an exhibit to the Company&#146;s report on Form 8-K.  </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BioCryst Pharmaceuticals, Inc.
designs, optimizes and develops novel drugs that block key enzymes essential for viral,
cardiovascular and oncologic disease processes. BioCryst integrates the necessary
disciplines of biology, crystallography, medicinal chemistry and computer modeling to
effectively use structure-based drug design to discover and develop small molecule
pharmaceuticals. BioCryst&#146;s most advanced drug candidate, peramivir (RWJ-270201), is
in Phase III clinical development for the treatment of viral influenza. Additionally,
enrollment in a Phase I/II trial for an additional product candidate, BCX-1777, is
underway at M.D. Anderson Cancer Center for patients with T-cell leukemias and T-cell
lymphomas. BioCryst has several promising new enzyme targets in drug discovery including
tissue factor/factor VIIa, hepatitis C polymerase and complement component C1s. For more
information about BioCryst, please visit the company&#146;s web site at <I>www.biocryst.com</I>.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>These statements involve known
and unknown risks, uncertainties and other factors which may cause our actual results,
performance or achievements to be materially different from any future results,
performances or achievements expressed or implied by the forward-looking statements.
Forward-looking statements include, but are not limited to, BioCryst&#146;s Phase III
development of peramivir (RWJ-270201); progress with respect to continuing Phase III
development; BioCryst&#146;s progress in driving peramivir to market, that BioCryst will
be able to continue Phase III or future development of peramivir, whether peramivir will
receive the required regulatory clearances from the FDA, BioCryst&#146;s current and
future development of BCX-1777, and whether BioCryst will be able to continue Phase I/II
clinical trials of BCX-1777. These statements reflect our current views with respect to
future events and are based on assumptions and subject to risks and uncertainties. Given
these uncertainties, you should not place undue reliance on these forward-looking
statements. Some of the factors that could affect the forward-looking statements
contained herein include that we may not be able to enroll the required number of
subjects, or any at all, in clinical trials of BCX-1777, that we may not be able to
continue future development of peramivir or BCX-1777, that peramivir or BCX-1777 may
never result in future license or royalty payments being received by BioCryst, or that
peramivir or BCX-1777 may not receive required regulatory clearances from the FDA. Please
refer to the documents BioCryst files periodically with the Securities and Exchange
Commission, specifically BioCryst&#146;s most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q, which identify important factors that could cause the
actual results to differ materially from those contained in the projections or
forward-looking statements.</I> </FONT></P>

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

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-20.2
<SEQUENCE>6
<FILENAME>d50893_ex20-2.htm
<TEXT>
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     <TITLE>Exhibit 20.2</TITLE>
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<P ALIGN=CENTER><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>[Company Letterhead]</FONT></P>

<BR>

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<P ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>June 24, 2002 </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Stockholder:</FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
board of directors of BioCryst Pharmaceuticals, Inc. has announced the adoption
of a stockholder rights plan. This letter briefly describes the rights plan and
explains the reasons for adopting it. Enclosed is a document entitled
&#147;Summary of Rights to Purchase Shares of Series B Preferred Stock&#148;
which provides detailed information about the rights plan. We urge you to read
it carefully. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
plan is intended to protect your interests as a stockholder in the event the
company and our board are confronted with coercive or unfair takeover tactics.
The plan contains provisions designed to safeguard your interests in the event
of an unsolicited offer to acquire the company, whether through a gradual
accumulation of shares in the open market, a partial or two-tiered tender offer
that does not treat all stockholders equally, the acquisition in the open market
or otherwise of shares constituting control without offering fair value to all
stockholders, or other abusive takeover tactics that the board believes are not
in your best interests. These tactics may unfairly pressure stockholders,
squeezing them out of the full value of their investment without affording any
real choice. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many
public companies (approximately half the companies on the &#147;Fortune
500&#148; list and two-thirds of the companies on the &#147;Fortune 200&#148;
list) have rights plans similar to the one we have adopted. We consider the
rights plan to be very valuable in protecting both your right to retain your
equity investment in us and the full value of that investment, while not
foreclosing a fair acquisition bid for the company. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
board of directors was aware when it acted that some people have advanced
arguments that securities of the sort we are issuing deter legitimate
acquisition proposals. The board carefully considered these views and concluded
that the arguments are speculative and do not justify leaving stockholders
without the protection afforded by a rights plan. The board of directors
believes that the rights plan represents a sound and reasonable means of
addressing the complex issues of corporate policy. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
plan is not intended to prevent a sale or change in control of the company and
will not do so. The mere declaration of the rights dividend is not intended to
affect any prospective offeror willing to complete a strategic business
acquisition or make an all cash offer at a full and fair price or to negotiate
with the board of directors. The rights plan will not interfere with a merger or
other business combination transaction approved by the board because the rights
may be redeemed at the discretion of the board under those circumstances. </FONT></P>

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<TD ALIGN="LEFT" WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>June 24, 2002</FONT></TD>
<TD ALIGN="RIGHT" WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Page 2</FONT></TD>
</TR>
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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to adopting the rights plan, the board was concerned that a person or company
could acquire control of us without paying a fair premium for control or without
offering a fair price to all stockholders, and that, if a competitor acquired
control of the company, the competitor would have a conflict of interest with
respect to us and could use any acquired influence over or control of us to the
detriment of you and our other stockholders. The board believes that such
results would not be in the best interests of all stockholders. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance
of the rights does not in any way adversely affect our financial strength or
interfere with our business plan. The issuance of the rights has no dilutive
effect, will not affect reported earnings per share, is not taxable to the
company or to you, and will not change the way in which you can currently trade
our shares. As explained in detail in the enclosed summary, the rights will only
become exercisable upon the occurrence of specified triggering events. They are
then intended to protect you against being deprived of your rights to share in
the full measure of our long-term potential. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While
the distribution of the rights will not be taxable to you or us, stockholders
may in certain circumstances recognize taxable income if and when the rights
become exercisable or if the rights should ever be redeemed. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing
our progress and maximizing long-term stockholder value are major goals of the
board and management. </FONT></P>

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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>
On behalf of the<BR>
Board of Directors<BR>
<BR>
W. Randall Pittman,<BR>
Chief Financial Officer, Treasurer and Secretary
</FONT></TD>
</TR>
</TABLE>
<BR>

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<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>SUMMARY OF
RIGHTS TO PURCHASE<BR>SHARES OF SERIES B PREFERRED STOCK</FONT></H1>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June 14, 2002, the board of directors of BioCryst Pharmaceuticals, Inc. (the
&#147;<I>Company</I>&#148;) declared a dividend distribution of one right (a
&#147;Right&#148;) for each outstanding share of our common stock to
stockholders of record at the close of business on June 24, 2002 (the
&#147;Record Date&#148;). Each Right entitles the registered holder to purchase
from the Company one one-thousandth of a share of Series B Junior Participating
Preferred Stock, par value $0.001 per share (the &#147;<I>Preferred
Stock</I>&#148;), at a purchase price of $26.00, subject to adjustment.
The description and terms of the Rights are set forth in a Rights Agreement (the
&#147;<I>Rights Agreement</I>&#148;) between the Company and American Stock
Transfer &amp; Trust Company, as Rights Agent. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initially,
the Rights will be attached to all common stock certificates representing shares
then outstanding, and no separate Rights certificates will be distributed. The
Rights will separate from the common stock on the distribution date (the
&#147;Distribution Date&#148;). The Distribution Date occurs upon the earlier of
(i) ten days following a public announcement that a person or group of
affiliated or associated persons (an &#147;<I>Acquiring Person</I>&#148;) has
(subject to certain exceptions) acquired, or obtained the right to acquire,
beneficial ownership of 15% or more of the outstanding shares of our common
stock (the &#147;<I>Stock Acquisition Date</I>&#148;), other than as a result of
repurchases of stock by the Company, or (ii) ten days, or such later date as the
board of directors may decide, following the commencement of a tender offer or
exchange offer that would result in a person or group beneficially owning 15% or
more of such outstanding shares of our common stock. The Rights Agreement
specifically allows one of our Directors, William W. Featheringill, who
currently beneficially owns more than 15% of the outstanding common stock, to
acquire up to 19.9%, on a beneficial ownership basis, of the Company&#146;s
common stock (measured at the time he acquires common stock) without triggering
the exercisability of the Rights. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
the Distribution Date, (i) the Rights will be evidenced by the common stock
certificates and will be transferred with and only with such common stock
certificates, (ii) new common stock certificates issued after the Record Date
will contain a legend incorporating the Rights Agreement by reference and (iii)
the surrender for transfer of any certificates for common stock outstanding will
also constitute the transfer of the Rights associated with the common stock
represented by such certificate. Prior to the occurrence of a Triggering Event
(as defined below), the Company can require that, in order to exercise Rights, a
number of Rights must be exercised so that only whole shares of Preferred Stock
will be issued. </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Rights cannot be exercised until the Distribution Date and will expire at the
close of business on June 24, 2012, unless the Company redeems them as described
below. </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para Right 10" -->
<P ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Page 2 </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shortly
after the Distribution Date, Rights certificates will be mailed to holders of
record of our common stock at the close of business on the Distribution Date
and, after that time, the separate Rights certificates alone will represent the
Rights. Unless our board of directors decides differently, only shares of our
common stock issued prior to the Distribution Date will be issued with Rights. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
an Acquiring Person becomes (subject to certain exceptions) the beneficial owner
of 15% or more of the then outstanding shares of common stock (other than
pursuant to an offer for all the outstanding shares of common stock that our
board of directors determines to be fair to and otherwise in the best interests
of the Company and its stockholders), each holder of a Right will thereafter
have the right to receive, upon exercise, preferred stock (or, in certain
circumstances, cash, property or other securities of the company) having a value
equal to two times the exercise price of the Right. If, at any time after the
Stock Acquisition Date, (i) we are acquired in a merger or other business
combination transaction in which we are not the surviving corporation, other
than a merger that results from an offer for all the outstanding shares of
common stock that our board decides is fair and in the best interests of the
Company and its stockholders, or (ii) 50% or more of our assets, cash flow or
earning power is sold or transferred, each holder of a Right, except Rights
which previously have been voided, will have the right to receive, after
exercise of the Right, common stock of the company that acquires us having a
value equal to two times the exercise price of the Right. The events described
in this paragraph are &#147;Triggering Events.&#148; </FONT></P>

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<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
example, at an exercise price of $26 per Right, each Right not owned by an
Acquiring Person (or by certain related parties) following a Triggering Event
would entitle its holder to purchase $52 worth of preferred stock (or other
consideration, as noted above) for $26. Assuming that our common stock had a per
share value of $5.20 at such time, the holder of each valid Right would be
entitled to purchase preferred stock that would be economically equivalent to
ten shares of our common stock for $26. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
Rights that are, or (under certain circumstances specified in the Rights
Agreement) were, beneficially owned by any Acquiring Person will not be
exercisable. At any time after a person becomes an Acquiring Person and prior to
the acquisition by such person or group of 50% or more of the outstanding common
stock, the board of directors may exchange all or some of the Rights (other than
Rights owned by the person or group which have become null and void) at an
exchange ratio of one share of common stock, or one one-thousandth of a share of
Preferred Stock (or of a share of a class or series of our Preferred Stock
having equivalent rights, preferences and privileges), per Right. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
any time until 10 days after the Stock Acquisition Date, the board of directors
of the Company may redeem, all, but not part of, the Rights at a price of $0.01
per Right (payable in cash, common stock or other consideration decided upon by
the board of directors). Immediately upon the action of the board of directors
ordering redemption of the Rights, the Rights will terminate and the only right
of the holders of Rights will be to receive the $0.01 redemption price. </FONT></P>

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<!-- MARKER FORMAT-SHEET="Para Right 10" -->
<P ALIGN="RIGHT"><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>Page 3 </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
a Right is exercised, the holder of a Right will not have rights of a
stockholder of the Company such as the right to vote or to receive dividends.
While the distribution of the Rights will not be taxable to stockholders or to
the Company, stockholders may, depending upon the circumstances, recognize
taxable income in the event that the Rights become exercisable for Preferred
Stock (or other consideration) of the Company or for common stock of the
acquiring company. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
of the provisions of the Rights Agreement may be amended by the board prior to
the Distribution Date. After the Distribution Date, the provisions of the Rights
Agreement may be amended by the board in order to cure any ambiguity, to make
changes which do not adversely affect the interests of holders of Rights, or to
shorten or lengthen any time period under the Rights Agreement, but no amendment
may be made at such time as the Rights are not redeemable. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para 10" -->
<P><FONT FACE="TIMES NEW ROMAN, TIMES, SERIF" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
copy of the Rights Agreement has been filed with the Securities and Exchange
Commission as an exhibit to a Current Report on Form 8-K. A copy of the Rights
Agreement is available free of charge from the Company. This summary description
of the Rights is not complete and you should refer to the Rights Agreement for
further information. </FONT></P>

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