Document:

<PAGE>
                                                                   EXHIBIT 10.24

* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

                      MASTER LABORATORY SERVICES AGREEMENT

      This Master Laboratory Services Agreement ("Agreement"), when signed by
both parties, will set forth the terms and conditions between NORTHWEST
BIOTHERAPEUTICS, INC., a Delaware corporation with its principal offices located
at 21720 23rd Drive SE, Suite 100, Bothell, Washington 98021 ("Sponsor") and
QUINTILES LABORATORIES LIMITED, a North Carolina corporation with its principal
offices located at 5500 Highlands Parkway, Suite 600, Smyrna, Georgia 30082
("QLAB"), under which QLAB agrees to provide laboratory services to Sponsor as
set forth below.

Sponsor and QLAB agree as follows:

1.    SERVICES. QLAB shall provide study planning, consultation on laboratory
design, laboratory analysis, other laboratory services, and/or data management
services, as requested by Sponsor from time to time during the term of this
Agreement. The specific details of each assignment or task will be separately
negotiated and specified in writing on terms acceptable to the parties and
otherwise subject to the terms and conditions of this Agreement (each such
writing, a Confirmation of Central Laboratory Services ("CCLS")) in a document
substantially in the form of Appendix I to this Agreement.

2.    PAYMENT OF FEES AND EXPENSES.

      (a)   Each CCLS shall contain a provisional services budget ("PSB") for
the payment of QLAB's services to be performed pursuant to such CCLS as well as
additional terms and conditions related to the PSB. Sponsor will pay QLAB in
accordance with each PSB. Sponsor shall reimburse QLAB for all reasonable and
necessary travel, lodging and other expenses incurred in the performance of its
services that have been approved in writing by Sponsor.

      (b)   Upon execution of a CCLS, Sponsor shall pay QLAB an amount equal to
* of the applicable PSB as a project initiation payment. QLAB will draw from
these funds in order to pay for services and related costs and expenses
consistent with the terms of this Agreement.

      (c)   QLAB will invoice Sponsor monthly or as separately agreed for
services rendered under any CCLS and Sponsor shall pay all amounts due within
thirty (30) days of receipt of QLAB's itemized invoices for work completed. Each
invoice will reflect QLAB's application of any amounts advanced by Sponsor. If
any portion of an invoice is disputed, then Sponsor shall pay the undisputed
amounts within 30 days of receipt of the invoice, and the parties shall use good
faith efforts to reconcile the disputed amounts as soon as practicable.

      (d)   Overdue payments shall accrue interest at the rate of thirteen
percent (13%) per annum, and payments overdue for more than ninety (90) days
shall accrue interest at the rate of eighteen percent (18%) per annum, (or the
maximum lesser amount permitted by law) plus reasonable attorney's fees and
costs incurred by QLAB in connection with the collection thereof.

                                      -1-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

3.    TERM. This Agreement shall commence on the date of execution and shall
continue until terminated as hereinafter provided by either party.

4.    CONFIDENTIALITY.

      (a)   It is understood that during the term of this Agreement and each
CCLS, QLAB and its employees will be exposed to data and information, which is
confidential and proprietary to Sponsor. All such data and information ("Sponsor
Confidential Information") made available, disclosed or otherwise made known to
QLAB as a result of services under this Agreement or under any CCLS shall be
considered confidential and shall be considered the sole property of Sponsor.
All information regarding laboratory methods, laboratory pricing, and laboratory
management and all information regarding QLAB's operations, including but not
limited to QLAB Property (as defined in Section 5 below), disclosed by QLAB to
Sponsor in connection with this Agreement or any CCLS is proprietary,
confidential information belonging to QLAB (the "QLAB Confidential Information",
and together with the Sponsor Confidential Information, collectively referred to
as the "Confidential Information"). The Confidential Information shall be used
by the receiving party and its employees only for purposes of performing the
receiving party's obligations hereunder or under any CCLS. Each party agrees
that it will not reveal, publish or otherwise disclose the Confidential
Information of the other party to any third party without the prior written
consent of the disclosing party who may withhold such consent for any reason.

      (b)   The foregoing obligations shall not apply to Confidential
Information which:

            (i)   is or becomes generally available to the public other than as
                  a result of a disclosure by the receiving party;

            (ii)  becomes available to the receiving party on a non-confidential
                  basis from a source which is not prohibited from disclosing
                  such information by a legal, contractual or fiduciary
                  obligation to the disclosing party;

            (iii) the receiving party develops independently of any disclosure
                  by the disclosing party;

            (iv)  was in the receiving party's possession or known to the
                  receiving party prior to its receipt from the disclosing
                  party, as shown by contemporaneous written evidence; or

            (v)   is required by law to be disclosed.

      (c)   This obligation of confidentiality and non-disclosure shall remain
in effect for a period of ten years after the termination of this Agreement.

                                      -2-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

5.    PROPERTY OWNERSHIP.

      (a)   All data and information necessary for QLAB to conduct project
assignments will be forwarded by Sponsor to QLAB, and all such information
received from Sponsor shall remain the property of Sponsor.

      (b)   All data and information generated or derived by QLAB as the result
of services performed by QLAB under this Agreement shall be and remain the
exclusive property of Sponsor. Any inventions that may evolve from the data and
information described above or as the result of services performed by QLAB under
this Agreement ("Inventions") shall belong to Sponsor, and QLAB agrees to assign
all of its rights, title and interest in and to any Inventions and/or related
patents, effective upon their creation or conception to Sponsor. In addition,
QLAB:

            i.    shall assist Sponsor, at Sponsor's request and expense, during
                  and after the term of this Agreement, to evidence, transfer,
                  vest, perfect and enforce Sponsor's intellectual property
                  rights in the Inventions, and will execute any and all
                  instruments and perform all acts reasonably necessary or
                  desirable in order to establish, evidence, transfer, perfect,
                  enforce, vest or confirm in Sponsor the entire right, title
                  and interest in such Inventions, and also to execute any
                  instruments necessary or desirable in connection with any
                  continuations, renewals, or re-issues thereof or in the
                  conduct of any related proceedings, litigation or other
                  enforcement actions; provided that Sponsor's expenses
                  hereunder shall include reasonable compensation to QLAB for
                  its time spent in connection with enforcement actions or
                  proceedings; and

            ii.   shall promptly and fully disclose to Sponsor all Inventions
                  made, conceived or reduced to practice during the term of this
                  Agreement, and will promptly (in no event more than five
                  business days) deliver them to Sponsor upon request and in any
                  event upon the expiration or termination of this Agreement or
                  its term, other than termination due to Sponsor's material
                  breach of the Agreement; and

            iii.  agrees that all Inventions created as a result of services
                  performed under this Agreement are specifically ordered or
                  commissioned by Sponsor, and to the extent such Inventions
                  qualify as "works made for hire" under applicable copyright
                  law, they are hereby agreed to be "works made for hire." To
                  the extent such Inventions are not "works made for hire" under
                  applicable copyright law, QLAB agrees to assign (or cause to
                  be assigned) and does hereby assign fully to Sponsor the
                  exclusive ownership of the copyright in all such Inventions
                  and all rights comprised therein, along with ownership of and
                  title to all physical embodiments (in whatever media) of the
                  works, which shall vest in Sponsor as the works are fixed in
                  any tangible medium of expression.

                                       -3-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

      (c)   Notwithstanding the foregoing, Sponsor acknowledges that QLAB
possesses certain inventions, processes, know-how, trade secrets, improvements,
other intellectual properties and other assets, including but not limited to
laboratory analyses, analytical and laboratory methods, processes, approaches,
procedures and techniques, technical expertise and conceptual expertise in area
of laboratory services, procedure manuals, personnel data, financial
information, computer technical expertise, and software, which have been
independently developed by QLAB and which relate to its business or operations
(collectively "QLAB Property"). Sponsor and QLAB agree that any QLAB Property or
improvements thereto which are used, improved, modified or developed by QLAB
under or during the term of this Agreement or any CCLS are the sole and
exclusive property of QLAB.

      (d)   At the completion of the services by QLAB, all materials and other
data owned by Sponsor shall either be: (i) delivered to Sponsor in such form as
is then currently in the possession of QLAB, subject to the payment obligations
set forth in Section 2 herein; (ii) retained by QLAB for Sponsor for a period of
two (2) years; or, (iii) disposed of, at the direction and written request of
Sponsor. Sponsor shall pay the costs associated with any of the above options.
Each party, however, reserves the right to retain, at its own cost and subject
to the confidentiality provisions herein, one copy of all documents and
materials relating to the services, to be used solely to satisfy regulatory
requirements or to resolve disputes regarding the services.

6.    REGULATORY COMPLIANCE; INSPECTIONS.

      (a)   In carrying out its responsibilities under this Agreement and each
CCLS, QLAB agrees to conduct its services in compliance with all applicable
laws, rules and regulations, including but not limited to the U.S. Food, Drug
and Cosmetic Act and the regulations promulgated pursuant thereto, and with the
standard of care customary in the central laboratory industry.

      (b)   Sponsor warrants that neither any assignment or task requested by
Sponsor nor the conduct thereof as provided in this Agreement or in any CCLS
shall violate any applicable law or regulation. Sponsor shall notify QLAB
promptly in writing of any FDA or other governmental inspection or inquiry
concerning any services that have been rendered or are being rendered by QLAB,
or any study or project to which such services relate.

      (c)   Neither QLAB nor any of QLAB's employees rendering services pursuant
to this Agreement has been debarred pursuant to Section 306 of the Federal Food,
Drug, and Cosmetic Act, as amended, and QLAB will not knowingly employ any
person or entity that has been so debarred to perform services under this
Agreement or any CCLS. QLAB shall notify Sponsor immediately upon the
commencement of any such proceeding concerning QLAB or any such employee.

      (d)   If any governmental or regulatory authority conducts or gives notice
to QLAB of its intent to conduct an inspection at QLAB's facilities or take any
other regulatory action with respect to any study or services provided under
this Agreement, QLAB will promptly give Sponsor notice

                                      -4-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

thereof, including all information pertinent thereto, and, where reasonably
practicable, QLAB will notify Sponsor prior to complying with such a demand or
request. Sponsor, however, acknowledges that it may not direct the manner in
which QLAB fulfills its obligations to permit inspection by governmental
entities.

      (e)   During the term of this Agreement and each CCLS, QLAB will permit
Sponsor's representative(s) (unless such representatives are competitors of
QLAB) to examine the work performed hereunder and the specific facilities at
which the work is conducted during regular business hours upon reasonable
advance notice and in a reasonable manner to determine that the project
assignment is being conducted in accordance with the applicable CCLS and that
the facilities are adequate; provided, however, that all information, other than
Sponsor Confidential Information, disclosed or revealed to or ascertained by
Sponsor in connection with any such examination shall be deemed to constitute
QLAB Confidential Information for purposes of this Agreement. Unless the costs
of governmental audits related to this Agreement or CCLS or Sponsor audits are
specifically included in the PSB, Sponsor shall reimburse QLAB for its time and
expenses associated with such audits and investigations.

7.    CONFLICT OF AGREEMENTS. QLAB represents to Sponsor that QLAB is not a
party to any agreement which would prevent QLAB from fulfilling its obligations
under this Agreement, and that during the term of this Agreement, QLAB will not
enter into an agreement to provide services which would prevent QLAB from
providing the services contemplated to be provided by QLAB under this Agreement
or any CCLS.

8.    INDEMNIFICATION.

      (a)   Sponsor shall defend, indemnify and hold harmless QLAB, its
affiliates and its and their respective directors, officers, employees and
agents (each, an "Indemnified Party") from and against any and all losses,
claims, actions, damages, liabilities, costs and expenses, (including reasonable
attorney's fees and court costs) (collectively, "Losses"), joint or several,
resulting or arising from any third-party claims, actions, proceedings,
investigations or litigation relating to or arising from or in connection with
this Agreement or any CCLS or the services contemplated herein (including,
without limitation, any Losses arising from or in connection with any study,
test, product or potential product to which this Agreement or any CCLS relates),
except to the extent such Losses are determined to have resulted solely from
negligence or intentional misconduct of the Indemnified Party seeking indemnity
hereunder.

      (b)   QLAB shall: (i) give Sponsor prompt notice of any such claim or law
suit (including a copy thereof served upon QLAB); (ii) cooperate with Sponsor
and its legal representatives in the investigation of any matter the subject of
indemnification, and (iii) not unreasonably withhold its approval of the
settlement of any such claim, liability or action by Sponsor that is the subject
of this Indemnification provision.

                                      -5-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

      (c)   Subject to Section 9 below, QLAB will defend, indemnify and hold
Sponsor harmless from and against all Losses arising from any breach of QLAB's
warranties, covenants or obligations under this Agreement or otherwise arising
out of or in connection with QLAB's negligent acts or negligent omissions.
Amounts finally determined to be owing under this paragraph may be deducted from
any payments owed by Sponsor to QLAB under this Agreement.

9.    LIMITATION OF LIABILITY. Neither QLAB nor its affiliates nor any of its or
their respective directors, officers, employees or agents shall have any
liability of any type (including, but not limited to, contract, negligence and
tort liability) for any special, incidental, indirect or consequential damages,
including, but not limited to the loss of opportunity, loss of use, or loss of
revenue or profit in connection with or arising out of this Agreement, any CCLS,
or the services performed by QLAB hereunder, even if such damages may have been
foreseeable to QLAB. In addition, in no event shall the collective, aggregate
liability of QLAB and its affiliates and its and their respective directors,
officers, employees and agents under this Agreement or any CCLS exceed the
amount of fees actually received by QLAB from Sponsor pursuant to this Agreement
for the assignment or task from which such liability arose.

10.   DISCLOSURE OF HAZARDS. Sponsor shall provide QLAB with all information
available to it regarding known or potential hazards associated with the use of
any substances supplied to QLAB by Sponsor and Sponsor shall comply with all
current legislation and regulations concerning the shipment of substances by
land, sea or air.

11.   PUBLICATION. Project results may not be published or referred to, in whole
or in part, without the prior written consent of Sponsor. Neither party may use
the other party's name in connection with any publication or promotion without
the other party's prior, written consent, which consent will not unreasonably be
delayed or withheld.

12.   TERMINATION.

      (a)   This Agreement or any CCLS may be terminated with or without cause
by Sponsor or by QLAB at any time during the term of this Agreement on ninety
(90) days prior written notice to QLAB or Sponsor, as appropriate.

      (b)   Either party may terminate this Agreement or any CCLS for material
breach upon thirty (30) days written notice specifying the nature of the breach,
if such breach has not been substantially cured within the thirty (30) day
period. In the event that QLAB in good faith, reasonably determines, in its sole
discretion, that its continued performance of the services contemplated by a
CCLS would constitute a potential or actual violation of regulatory or
scientific standards of integrity, QLAB may terminate this Agreement or the
applicable CCLS by giving written notice stating the effective date (which may
be less than thirty days from the notice date) of such termination.

                                      -6-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

      (c)   Termination of this Agreement shall constitute termination of all
CCLS's hereunder. Termination of a CCLS shall constitute a termination of such
CCLS only and shall not affect this Agreement or any other CCLSs outstanding
hereunder. Any written termination notice shall identify each specific CCLS that
is being terminated.

      (d)   In the event this Agreement is terminated, Sponsor shall pay to
QLAB: (i) any fees for services rendered then due and owing to QLAB because of
any performance of QLAB's obligations hereunder and all expenses reasonably
incurred in performing those services; (ii) all actual costs (including time
spent by QLAB personnel, which shall be billed at QLAB standard rates) to
complete activities associated with the termination and close out of projects;
and (iii) all kit destruction costs as noted in each CCLS. If payments in a
terminated CCLS are milestone-based, but that milestone has not yet been
completed, Sponsor will pay QLAB's standard fees for actual work performed
toward that milestone up to the date of termination. Upon the termination of
this Agreement, QLAB shall deliver to Sponsor all data and materials provided by
Sponsor to QLAB for the conduct of services under this Agreement.

      (e)   Termination of this Agreement or any CCLS hereunder shall not
constitute a release or waiver of any right or remedy available to either party
in connection herewith or therewith.

13.   INDEPENDENT CONTRACTOR RELATIONSHIP. Notwithstanding any provision herein
to the contrary, the parties hereto are independent contractors, and nothing
contained in this Agreement or in any CCLS shall be construed to place them in
the relationship of partners, principal and agent, employer and employee, or
joint venturers. Each party agrees that it shall have no power or right to bind
or obligate the other, and neither party shall hold itself out as having such
authority.

14.   INSURANCE. Each Party shall have and maintain such types and amounts of
liability insurance as is normal and customary in the industry generally for
parties similarly situated, and shall upon request provide the other Party with
a copy of its policies of insurance in that regard, along with any amendments
and revisions hereto.

15.   FORCE MAJEURE AND RELATED MATTERS. QLAB shall not be liable or responsible
to Sponsor nor be deemed to have defaulted under or breached this Agreement or
any CCLS for or in respect of errors, delays or other consequences arising from
Sponsor's failure to provide documents, materials, information or cooperation
required by QLAB in order to perform properly and timely QLAB's obligations
hereunder or thereunder. Sponsor acknowledges that, if it materially delays or
suspends performance of the services, then the personnel and/or resources
originally allocated to the project may be re-allocated, and QLAB will not be
responsible for delays due to required re-staffing or re-allocation of
resources. Any delay or hindrance in the performance of any of the duties or
obligations of either party hereto (except the payment of money owed) shall not
be considered a breach of this Agreement and the time required for performance
shall be extended for a period equal to the period of such delay, provided that
such delay has been caused by or is the result of any labor

                                      -7-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

disputes, including strikes, lockouts, job actions or boycotts; inability to
procure materials or services; riots; insurrection; embargoes; war; acts of God;
acts of the public enemy; inclement weather; fires; explosions; floods or other
natural disasters; or other reasons or causes beyond the reasonable control of
the party seeking to perform.

16.   NOTICES AND DELIVERIES. Any notice required or permitted to be given by
either party hereunder shall be in writing and shall be deemed given on the date
received if delivered personally or by nationally recognized overnight delivery
service or three days after the date postmarked if sent by registered or
certified U.S. mail, return receipt requested, postage prepaid to the following
addresses:

      If to QLAB:                   Quintiles Laboratories Limited
                                    5500 Highlands Parkway, Suite 600
                                    Smyrna, Georgia 30082
                                    Attn: S. Tim Derrington
                                          Chief Operating Officer

      If to Sponsor:                Northwest Biotherapeutics, Inc.
                                    21720 23rd Drive SE, Suite 100
                                    Bothell, WA 98021
                                    Attn:  Director of Clinical Operations

The expense and risk of loss for all deliveries, shipments, and mailings shall
be born by Sponsor. QLAB disclaims any liability for loss or damage occurring
during shipment, delivery or mailing, except to the extent that such loss or
damage is caused by the negligence or intentional misconduct of QLAB.

17.   MISCELLANEOUS.

      (a)   GOVERNING LAW. This Agreement and each CCLS shall be construed,
interpreted in accordance with and enforced under the laws of the State of
Washington, without regard to the conflict of laws provisions thereof. If any
one or more provisions of this Agreement or any CCLS shall be found to be
illegal or unenforceable in any respect, it is the intent of the parties that
such provisions be replaced, reformed or narrowed so that their original
business purpose can be accomplished to the extent permitted by law, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

      (b)   SURVIVAL. The obligations of the parties contained in Sections 4, 5,
6, 8, 9 and 11 shall survive the termination of this Agreement.

      (c)   ENTIRE AGREEMENT; AMENDMENTS. This Agreement, together with each
CCLS, contains the entire understanding of the parties with respect to the
subject matter herein, and

                                      -8-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

supersedes all previous agreements (oral and written), negotiations and
discussions. The parties may modify or amend the provisions hereof only by an
instrument in writing duly executed by the parties.

      (d)   BINDING AGREEMENTS AND ASSIGNMENT. This Agreement shall be binding
upon and inure to the benefit of Sponsor and QLAB and their respective
successors and permitted assigns. Neither this Agreement nor any of either
party's rights hereunder may be assigned or otherwise transferred by either
party without the prior written consent of the other.

      (e)   WAIVER. No waiver by either party of any breach of any provision of
this Agreement or any CCLS shall constitute a waiver of any other or subsequent
breach.

      (f)   HEADINGS. The descriptive headings of the sections of this Agreement
are inserted for convenience only and shall not control or affect the meaning or
construction of any provision hereof.

      (g)   INCORPORATION BY REFERENCE. All exhibits attached hereto shall be
deemed to be incorporated herein. In case of any conflict between this Agreement
and any such attachment or any CCLS, the terms of this Agreement shall prevail
over the attachment or CCLS.

      (h)   For all CCLS's in which QLAB will earn fees or incur expenses in
excess of one million U.S. Dollars in a currency differing from the invoice and
payment currency, a foreign currency exchange provision will be included in the
CCLS.

      (i)   Any controversy or claim arising out of or relating to this
Agreement or the breach thereof shall be settled by arbitration administered by
the American Arbitration Association ("AAA") under its Commercial Arbitration
Rules, and judgment on the award rendered by the arbitrator shall be binding and
may be entered in any court having jurisdiction thereof. Such arbitration shall
be filed and conducted at the office of the AAA closest to QLAB if initiated by
Sponsor or, nearest to Sponsor if initiated by QLAB, and shall be conducted in
English by one arbitrator mutually acceptable to the parties selected in
accordance with AAA Rules.

      IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto
through their duly authorized officers and is effective as of the last date set
forth below.

QUINTILES LABORATORIES LIMITED            NORTHWEST BIOTHERAPEUTICS, INC.

By: /s/ S. TIM DERRINGTON                 By: /s/ DANIEL O. WILDS
   ------------------------------------      -----------------------------------
       S. Tim Derrington                            Daniel O. Wilds

Title: Chief Operating Officer               Title: Chairman, President and CEO
       Quintiles Laboratories Worldwide

Date: November 14, 2001                      Date: November 21, 2001

                                      -9-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

                                  APPENDIX I-1

                                 CONFIRMATION OF
                           CENTRAL LABORATORY SERVICES

                         NORTHWEST BIOTHERAPEUTICS, INC.

                                PROTOCOL DC3-HRPC

                                NOVEMBER 14, 2001

                                      -10-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

This Confirmation of Central Laboratory Services specifies the terms and
conditions upon which Quintiles Laboratories ("QLAB") will provide analytical
and data management services for the clinical trial described herein. QLAB, or
its agents, make no other commitments or warranties, either expressed or
implied, concerning the scope of services to be provided during the course of
this agreement. The Sponsor and its agents recognize and affirm that the
liability for any breach by QLAB shall be limited to the amount of fees paid to
QLAB by Northwest Biotherapeutics, Inc. or its agents before and during the
course of Northwest Biotherapeutics, Inc. Protocol DC3-HRPC.

PROTOCOL IMPLEMENTATION AND SUPPORT

A.1   Projected Time Period and Scope of Services

<TABLE>
<S>                                                   <C>
Confirmation of Central Laboratory Services Date:     November 14, 2001

Protocol Number:                                      DC3-HRPC

Project Initiation:                                   September 2001

Investigator Sites:                                   25 - United States

Enrolled Patients:                                    495

Average Patients per Site:                            19-20
</TABLE>

A.2   Protocol Specific Scope of Work

QLAB, in conjunction with The Sponsor, will complete a protocol specific Scope
of Work. The Scope of Work will define all of the protocol and procedural
parameters necessary for database construction kit specification & design,
customized requisitions & reports, and the investigator instruction manual.

A.3   Visit Specific Kits

QLAB will provide to each investigator site all materials necessary for
collection and transport of specimens to be tested at QLAB in accordance with
industry standards. These materials will include visit-specific laboratory
requisitions and kits designed to meet the needs of this clinical trial. All
laboratory requisitions, collection materials and mailers will be pre-labeled
with a unique bar-coded accession number. The accession number will be used
throughout the study to ensure accurate tracking, collation, and reporting of
patient laboratory data.

                                      -11-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

A.4   Investigator Training

QLAB will provide a protocol-specific instruction manual to each investigator
and training to the study coordinators in all laboratory procedures and services
pertaining to this clinical trial at the Investigator meeting. Items to be
covered will include, but will not be necessarily limited to, proper specimen
collection and processing, on-site archival of frozen specimens, and shipping of
samples under conditions to maximize analyte stability. The Sponsor or its
designated representative will provide QLAB with investigator telephone,
facsimile and site number. QLAB will send site verification forms to check
delivery addresses for supplies and laboratory reports as well as 24-hour, 7-day
telephone numbers for communication of telephone and panic alert test results.
QLAB will be eligible for reimbursement of all production and distribution costs
of investigator meeting materials as well as any reasonable travel-related
expenses incurred therein. All Materials will be printed in English. Documents
printed in languages other than English will result in additional fees.

A.5   Expedited Specimen Transport

QLAB will be responsible for arranging for express shipping with a courier who
provides a system by which clinical trial specimens can be tracked during
shipment. The risk of loss during shipment, however, shall be born by The
Sponsor, and Quintiles disclaims any liability for loss or damage occurring
during shipment, except to the extent that such loss or damage is caused by the
negligence or intentional misconduct of QLAB.

In the continental United States, ambient specimens can be shipped Monday
through Saturday on the day of collection. Ambient specimen shipments from sites
in Canada will be limited to Monday through Friday on the day of collection,
with the exception of remote locations. Ambient specimen shipments from sites in
Alaska and Hawaii will be limited to Monday through Thursday on the day of
collection. Frozen shipments from sites in the continental United States and
Canada will be limited to Monday through Thursday, and Monday through Wednesday
for sites in Alaska and Hawaii.

A.6   Ancillary Shipping Procedures

Sunday or holiday shipments may result in fees in excess of the visit fee.
Ancillary shipping fees will be subject to prior approval by The Sponsor unless
QLAB's Laboratory Director deems it necessary to act immediately in order to
ensure that specimens are received within the established limits of analyte
stability.

A.7   Dry Ice Services

QLAB does not provide dry ice services. However, QLAB can assist in the
coordination of dry ice services in certain regions on an optional basis only.

                                      -12-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

A.8   Patient Identification

From customized visit specific laboratory requisitions, QLAB will collect and
report patient demographic data as required by The Sponsor's protocols and
procedures and based on QLAB's capabilities.

DATA GENERATION AND TRANSMITTAL

B.1   Laboratory Data Reporting

Laboratory reports of test results will be sent to the investigators via
facsimile on the day testing is completed, followed by weekly hard copy reports.
Laboratory report formats will be determined during the protocol planning and
implementation phase.

B.2   Notification of Alerts

QLAB will contact investigators as defined in the Scope of Work with Telephone
High, Telephone Low, Panic High, Panic Low and Exclusion Alerts. QLAB will
contact The Sponsor or its designated representative with Panic Highs and Lows
and for all flags if the investigator cannot be reached.

B.3   Blinding

Blinding of selected laboratory results is available as an optional service from
QLAB. If The Sponsor determines that there is a requirement for blinding of
results in this clinical trial, such requirements will be defined in the Scope
of Work.

B.4   Electronic Data Transmission

QLAB will transfer clinical trial data in a pre-determined format, media and
schedule directly from our facility to The Sponsor's data management facility or
designated representative location.

B.5   Status Report

QLAB will provide The Sponsor or its designated representative with status
reports throughout the conduct of this trial summarizing the number of patients
tested to date by visit for each investigator site. The frequency and mode of
distribution of the status report are defined in the Scope of Work.

B.6   Data Retention

QLAB will maintain on-line all laboratory data compiled from this clinical trial
for the term of the clinical trial plus 18 months. Thereafter, all laboratory
data will be archived onto compact disc

                                      -13-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

media for a period of ten years. At the end of that ten-year period, QLAB will
forward electronic records to The Sponsor or retain for an additional fee,
according to The Sponsor's written instructions.

B.7   Confidentiality

QLAB will maintain the confidentiality of information related to the conduct and
results of this clinical trial as outlined in QLAB's internal policies, or under
the provisions of a Confidentiality Agreement to be executed with The Sponsor,
or under the provisions of any Master Services Agreement or Master Laboratory
Services Agreement that applies to this Confirmation of Laboratory Services.

B.8   QNET Software Product

If Sponsor requests the use of QNET in the Scope of Work, QLAB will provide
Sponsor or its designated party with the services of the QNET software product
according to the terms and conditions of the QNET SOFTWARE LICENSE AGREEMENT
agreed to under separate signature of both QLAB and Sponsor. QLAB will be
eligible for reimbursement of all pre-approved travel-related expenses incurred
with the installation of QNET at the Sponsor designated location(s) as well as
pre-approved travel-related expenses incurred as part of any required QNET
support.

ANALYTICAL SERVICES

C.1   Laboratory Events Schedule

The schedule for analytical and related laboratory services for The Sponsor's
Protocol DC3-HRPC is outlined as Exhibit A.

C.2   Test Groups

Analytical services referenced in the Laboratory Events Schedule for Protocol
DC3-HRPC are outlined as Exhibit B.

C.3   Analytical Standards and Certification

QLAB will maintain all state and federal licenses required to perform diagnostic
testing on interstate specimens. QLAB documents all in-house quality control and
quality assurance programs and will make available applicable results from
inter-laboratory proficiency programs conducted by the College of American
Pathologists or similar accrediting organizations during central laboratory
audits (see section C.16 Central Laboratory Audits).

                                      -14-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

C.4   Analytical Methodology Comparability

In order to provide consistency of results throughout the clinical trial
program, QLAB will maintain the same test methodology and procedures utilized
for the first laboratory-testing visit. The Sponsor may elect to adopt new and
improved technology or revised procedures whenever QLAB makes them available.
The Sponsor recognizes that circumstances beyond the control of QLAB can arise
which would preclude the use of the same testing methodology throughout the
clinical trial. Should this situation arise, QLAB will confer with The Sponsor
prior to the selection of an alternative methodology.

C.5   Specimen Stability

Analytical services will not be performed on specimens for which the elapsed
time from collection to analysis exceeds established limits of analyte
stability. QLAB also reserves the right to cancel testing on specimens whose
physical or chemical condition may jeopardize result integrity.

C.6   Test Priority Specified by Sponsor

Testing of quantity not sufficient (QNS) specimens can be performed in a
pre-determined and prioritized order established by The Sponsor. All QNS testing
will be conducted within the limits of QLAB's analytical capabilities.

C.7   Reference Ranges and Reporting Units

Reference ranges and units will be those established by QLAB's Quality Assurance
Group as those, which are appropriate and available for the test methodologies
being used in this clinical trial. QLAB reserves the right to periodically amend
reference ranges as changes in instrumentation, reagent formulation,
international standards, governmental recommendations, and testing methodologies
are adopted throughout the clinical laboratory industry. However, no changes
will be implemented without the explicit knowledge and consent of The Sponsor.

C.8   Exclusion Criteria

One exclusion value for each analyte and at specified visits may be selected by
The Sponsor. All test results for a given analyte will be compared to this
value. Results will be flagged as EX on the QLAB laboratory report.

C.9   High and Low Flags

Test results will be compared to sex stratified ranges and will be flagged as
High or Low if the result violates the established range.

                                      -15-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

C.10  Telephone Alert and Panic Alert Values

Telephone and Panic Alert values will be those levels selected by the Sponsor
where such levels are appropriate and available from QLAB. QLAB reserves the
right to not implement a Panic Alert level that is inconsistent with generally
accepted clinical laboratory standards. QLAB's Laboratory Director will discuss
the setting of Panic Alert levels with the Sponsor as appropriate.

C.11  Delta Flags

Delta flags will be reported for those patients whose laboratory values differ
by a specified percentage relative to the laboratory visit established by The
Sponsor as the baseline. Delta changes will be reported as +D or -D if the
checked value has increased or decreased relative to the reference visit.

C.12  Specimen Retention

All specimens will be retained for a period of up to 7 days after reporting and
will be made available for repeat testing if the elapsed time since specimen
collection falls within the established limits of stability. Repeat testing will
be performed at no additional charge if it is required due to the negligent acts
or omissions of QLAB.

C.13  Specimen Management

QLAB will be responsible for monitoring and maintaining the temperature and
other environmental conditions for frozen specimens which are being stored for
an interim period prior to batch testing or shipping to another analysis
facility. Storage times and conditions will be specified by The Sponsor in
advance of the clinical trial commencement.

C.14  Specimen Storage

Long term specimen storage is a standard service offering of QLAB. Long term
storage is defined as being a period greater than seven (7) days. If The Sponsor
requests this service from QLAB, additional fees will be included in the
Provisional Services Budget.

C.15  Central Laboratory Auditing

The Sponsor shall have the ability, upon reasonable notice to QLAB, to visit
QLAB and examine all systems, documents and other materials related to the
study. If The Sponsor audits QLAB, the parties shall cooperate and work in good
faith to resolve any unsatisfactory audit findings. In addition, QLAB shall
reasonably cooperate with and shall allow the Food and Drug Administration (FDA)
and other governmental agencies to visit QLAB and to examine all systems,
documents and other materials related to the study.

                                      -16-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

FEES AND BILLING

D.1   Scheduled Visit Fees

Scheduled visit fees which include analytical testing by visit and reporting
along with database configuration, maintenance and transfer, project management,
and transportation costs are included in Exhibit C.

D.2   Kit Construction Fees

Kit construction fees which include the cost of visit specific collection kits
and materials, as well as shippers, are included in the Provisional Services
Budget. Sponsor will be invoiced for these costs at the time they are shipped to
the investigator sites.

D.3   Transportation Fees

All transportation fees in the Provisional Services Budget are estimates.
Transportation will be handled as a direct pass through cost to The Sponsor on
the monthly invoice. Quintiles Laboratories applies a kit transportation
management fee to each kit for the administrative cost of managing the
transportation of supplies to the sites and the movement of samples to QLAB
and/or a sponsor designated location.

D.4   Unscheduled Visit Fees and Optional Test Fees

The fee for Services rendered by Quintiles Laboratories which relate to
unscheduled visits is set forth in Exhibit C and shall be paid in accordance
with the terms set forth therein. Any visits not listed in Exhibit C are
considered unscheduled visits, fees for which are to be paid pursuant to the
terms of Exhibit C. Unscheduled visit fees are not included in the Provisional
Services Budget and, therefore, are not subject to the Initiation Fee.
Unscheduled visit fees will be invoiced during the course of the study when they
occur. Fees for optional tests are set forth in the Provisional Services Budget
and relate to laboratory procedures required by the Protocol but performed only
on selected patients under certain conditions, and will be invoiced as
appropriate during the course of the study. (EXAMPLE: OPTIONAL TEST - SERUM
PREGNANCY).

D.5   Expenses

QLAB shall be reimbursed by The Sponsor for all-reasonable and necessary travel
and lodging expenses incurred in the performance of services provided herein
which have been pre-approved by The Sponsor. Additionally, investigator site
special requests for supplies that are not included in the bulk supply kit or
other special requests shall be approved by and reimbursed by The Sponsor.
Payment for such services shall be made to QLAB within thirty (30) days of
receipt by The Sponsor

                                      -17-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

of invoices or other evidence of such expenditures. Sponsor/CRO provided
investigator information (name, address, phone and fax number) will be used when
shipping study collection materials to investigators, as well as the
construction of investigator data base information. If the Sponsor/CRO provided
investigator information is incorrect and QLAB is assessed a transportation
penalty fee for non-deliverable packages, QLAB will invoice The Sponsor for
assessed penalty fees plus a database change fee of $ * .

D.6   Terms of Project Initiation Invoicing

After award of the project by The Sponsor, QLAB will invoice a project
initiation fee of * of the value of the estimated Provisional Services Budget.
The initiation fee will be credited back to The Sponsor against the final
invoice for the project.

D.7   Invoices and Billing

Laboratory services will be invoiced based on the receipt of specimens. An
invoice for all visit specific specimens received during the month plus any
expenses incurred will be issued to The Sponsor the following month. If
requested, QLAB can provide a detailed report listing the invoiced visits by
investigator name, accession number, date and visit name. Payment is due within
thirty (30) days of the invoice date.

Please remit payments to:
                            Quintiles Laboratories Limited
                            P.O. Box 890062
                            Charlotte, NC 28289-0062

D.8   Test and Fee Cancellation

If some or all testing for a particular visit cannot be completed due to
circumstances beyond the control of QLAB, all valid test results will be
reported and the total visit fee will remain in effect. Examples of
circumstances which can result in billable test cancellations would be: (1)
failure to include a specimen required to complete testing for the visit, (2)
specimen handling prior to courier pickup which does not meet written guidelines
established by the laboratory and (3) provision of a QNS specimen for which all
requested testing cannot be completed.

D.9   Clinical Trial Reconciliation

When The Sponsor informs QLAB in writing of the completion or cancellation of
the clinical trial, reconciliation will be conducted. This accounting will
reconcile any outstanding clinical trial-specific project initiation expenses,
scheduled or unscheduled visit fees and unsalvageable specimen collection
materials at the investigator sites. A credit or debit invoice will be issued.

                                      -18-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

D.10  Cancellation of the Clinical Trial

Upon receiving written notification of early cancellation of the clinical trial,
QLAB will provide The Sponsor with an accounting of all clinical trial-specific
project initiation expenses, scheduled and unscheduled visit fees and
unsalvageable specimen collection materials at the investigator sites. QLAB will
charge * of the PSB as a cancellation fee. If the value of efforts extended and
supplies shipped exceeds * of the total PSB, an invoice will be presented for
those fees.

D.11  Approval of Fee and Period in Force

The provisional fee schedule will expire 60 days from the date of this
Confirmation of Central Laboratory Services. Upon receiving verbal approval from
The Sponsor, QLAB will implement project initiation activities as outlined
previously in Sections A.2 and D.6. If there is a substantive change in the
expected number of investigators, number or schedule of visits, testing
requirements, anticipated commencement date, length of project or overall
protocol specific database design, QLAB will revise the Provisional Services
Budget to reflect the increase or decrease in the scope of work. Otherwise, the
fees will remain in effect for 12 months from the date study kits were first
forwarded to investigator sites. QLAB fee schedule will be subject to review on
an annual basis and will be increased for the next 12 month period based upon
the average percent change in the US Consumer Price Index over the preceding 12
month period. In the unforeseen event of governmentally mandated changes or
transportation industry regulation changes which require significant changes in
the conduct of the clinical laboratory industry, QLAB will contact The Sponsor
if there will be any cost impact on the study in progress. Additionally, if QLAB
courier fees increase 10% or more, or a fuel surcharge is imposed on QLAB for
courier services, The Sponsor will be notified immediately of the cost impact on
the study in progress.

D.12  Currency Exchange

The currency to be used to invoice and for payment is set forth in this
Provisional Services Budget attached hereto as Exhibit C (the "PSB"). If QLAB is
to perform services whereby it earns fees or incurs expenses that exceed * U.S.
dollars in a currency(ies) differing from the invoice and payment currency
(hereafter, "foreign currency(ies)"), the initial foreign currency exchange
rates used as a basis for calculating the PSB (the "PSB Rates") shall be stated
in the PSB. For each monthly invoice prepared by QLAB, QLAB will obtain the
applicable foreign currency exchange spot rates published in the Wall Street
Journal {or the Financial Times for European-based Projects} on the last
business Friday of the month to which the invoice relates (the "Current Rates").
FOR MILESTONE-BASED INVOICES, THE CURRENT RATES SHALL BE THE AVERAGE OF SUCH
FOREIGN CURRENCY EXCHANGE SPOT RATES FOR THE LAST BUSINESS FRIDAY OF EACH MONTH
BETWEEN MILESTONE INVOICES. If the Current Rates differ from the PSB Rates, a
currency adjustment will be calculated. The currency adjustment will be
calculated as the difference between the amount to be invoiced at the Current
Rates and the amount to be invoiced at the PSB Rates. If the amount to be
invoiced at the Current Rates exceeds or is less than the amount to be invoiced
at the PSB Rates, QLAB will reflect

                                      -19-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

a debit or credit adjustment, as appropriate to the monthly invoice. The PSB
will state for each currency its percentage of the total fees (and expenses, if
applicable), after its conversion into the invoice and payment currency, which
will be applied to all invoices. If a currency referenced within the PSB is
replaced by the Euro or otherwise ceases to become legal tender, the applicable
replacement currency will be substituted for such currency for purposes of this
provision at an established conversion rate.

                                      -20-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

                    ACKNOWLEDGED, ACCEPTED AND AGREED TO BY:

/s/ S. TIM DERRINGTON                             November 14, 2001
------------------------------------              --------------------------
S. Tim Derrington                                 Date
Chief Operating Officer
Quintiles Laboratories Worldwide

Authorized Representative of Northwest Biotherapeutics, Inc.:

Chris DeLuca
--------------------------------------------------------------------------------
(Type or print name)

Director of Clinical Operations
--------------------------------------------------------------------------------
(Type or print title)

/s/ CHRIS DELUCA                                           11/21/01
------------------------------------              --------------------------
Signature                                         Date

                                      -21-
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

LABORATORY EVENTS SCHEDULE                       EXHIBIT A
VERSION 09                                       START DATE:  MID SEPTEMBER 2001
NORTHWEST BIOTHERAPEUTICS, INC.
PROTOCOL:   DC3-HRPC - DOUBLE-BLIND, PLACEBO-CONTROLLED
INDICATION: PROSTATE CANCER                      PROJECT CODE: AP1215

            ENROLLMENT PERIOD: * MONTHS          PATIENT DURATION: 36 MONTHS

CENTERS: 25 - UNITED STATES
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                          SCREEN BASELINE TIME WK  WK   WK   WK   WK   WK   WK   WK   WK   18   24   30   36  RETEST
NO. OF PATIENTS*                                            0   4   8   12   16   20   24   38   42   52   MO   MO   MO   MO    AS
                                                                *   *    *    *    *    *    *    *    *    *    *    *    *  NEEDED
------------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>    <C>      <C>  <C> <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C> <C>
CHEMISTRY W/ 16 CONSTITUENTS                x       x       x   x   x    x         x         x         x    x    x    x    x     -
HAEMATOLOGY W/ DIFFERENTIAL &
 PLATELET COUNT                             x       x       x   x   x    x         x         x         x    x    x    x    x     -
URINALYSIS W/ MICROSCOPIC                   x                                                          x                         -
TESTOSTERONE, TOTAL                         x                                                          x                         -
PROSTATE SURFACE ANTIGEN (PSA)              x       x       x            x         x         x         x    x    x    x    x     -
PROSTATIC ACID PHOSPHATASE (PAP)            x       x       x            x         x         x         x    x    x    x    x     -
ANTI-NUCLEAR ANTIBODIES TITER (ANA)         x       x       x   x   x    x         x         x         x    x    x    x    x     -
ANTI-NUCLEAR ANTIBODIES PATTERN (ANA)       #       #       #   #   #    #         #         #         #    #    #    #    #     -
RHEUMATOID FACTOR                           x       x       x   x   x    x         x         x         x    x    x    x    x     -
HEPATITIS B SURFACE ANTIGEN (HBSAG)         x                                                                                    -
HEPATITIS B CORE TOTAL ANTIBODY
 (ANTI-HBC)                                 x                                                                                    -
HIV 1 / 2 EIA SCREEN                        x                                                                                    -
ANTI-HEPATITIS C ANTIBODY (ANTI-HCV)        x                                                                                    -
RAPID PLASMA REAGIN (RPR)                   x                                                                                    -
HTLV-I / II IGG, AB                         x                                                                                    -
HIV-1 FREE ANTIGEN                          x                                                                                    -
SPECIMEN COLLECTION & TESTING MATERIALS:
 ERYTHROCYTE SEDIMENTATION RATE (ESR)(a)    x       x       x   x   x    x         x         x         x    x    x    x    x
SPECIMEN COLLECTION MATERIALS: *                    x               x    x    x    x    x    x    x    x    x    x    x    x
SPECIMEN COLLECTION MATERIALS: *                    x               x    x    x    x    x    x    x    x    x    x    x    x
                                                   (10)            (7)  (7)  (7)  (7)  (7)  (7)  (7)  (7)  (7)  (7)  (7)  (7)
</TABLE>

KEY:   x Scheduled    - Unscheduled    # If needed

(a) Quintiles Laboratories will provide the centers with the testing
    kits/materials for consistency in methodology of on-site analysis
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

LABORATORY EVENTS SCHEDULE                      EXHIBIT A
VERSION 09                                      START DATE:   MID SEPTEMBER 2001
NORTHWEST BIOTHERAPEUTICS, INC.
PROTOCOL: DC3-HRPC - OPEN LABEL
INDICATION: PROSTATE CANCER                     PROJECT CODE: AP1239

            ENROLLMENT PERIOD: * MONTHS         PATIENT DURATION: 36 MONTHS

CENTERS:  25 - UNITED STATES
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                BASELINE TIME WK  WK   WK   WK   WK   WK   WK   WK   WK   18   24   30   36  RETEST
NO. OF PATIENTS*                                           0   4   8   12   16   20   24   38   42   52   MO   MO   MO   MO    AS
                                                               *   *    *    *    *    *    *    *    *    *    *    *    *  NEEDED
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>      <C>  <C> <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C>  <C> <C>
CHEMISTRY W/ 16 CONSTITUENTS                     x         x   x   x    x         x         x         x    x    x    x    x    -
HAEMATOLOGY W/ DIFFERENTIAL & PLATELET COUNT     x         x   x   x    x         x         x         x    x    x    x    x    -
URINALYSIS W/ MICROSCOPIC                                                                             x                        -
TESTOSTERONE, TOTAL                                                                                   x                        -
PROSTATE SURFACE ANTIGEN (PSA)                   x         x            x         x         x         x    x    x    x    x    -
PROSTATIC ACID PHOSPHATASE (PAP)                 x         x            x         x         x         x    x    x    x    x    -
ANTI-NUCLEAR ANTIBODIES TITER (ANA)              x         x   x   x    x         x         x         x    x    x    x    x    -
ANTI-NUCLEAR ANTIBODIES PATTERN (ANA)            #         #   #   #    #         #         #         #    #    #    #    #    -
RHEUMATOID FACTOR                                x         x   x   x    x         x         x         x    x    x    x    x    -
SPECIMEN COLLECTION & TESTING MATERIALS:
  ERYTHROCYTE SEDIMENTATION RATE (ESR)(a)        x         x   x   x    x         x         x         x    x    x    x    x
SPECIMEN COLLECTION MATERIALS: *                 x                 x    x    x    x    x    x    x    x    x    x    x    x
SPECIMEN COLLECTION MATERIALS: *                 x                 x    x    x    x    x    x    x    x    x    x    x    x
                                                (10)              (7)  (7)  (7)  (7)  (7)  (7)  (7)  (7)  (7)  (7)  (7)  (7)
</TABLE>

KEY:    x  Scheduled    -  Unscheduled    #  If needed

(a) Quintiles Laboratories will provide the centers with the testing
    kits/materials for consistency in methodology of on-site analysis.
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

                                    EXHIBIT B
                             LABORATORY REQUIREMENTS
                                   VERSION 09
                         NORTHWEST BIOTHERAPEUTICS, INC.
                               PROTOCOL: DC3-HRPC
                           INDICATION: PROSTATE CANCER

CHEMISTRY                             URINALYSIS(1)
Sodium                                PH
Potassium                             Specific Gravity
Chloride                              Glucose
Bicarbonate                           Protein
BUN                                   Ketones
Creatinine                            Blood
Magnesium                             Microscopic
Calcium                               METHOD: BAYER MULTISTIX/MANUAL MICROSCOPY
Phosphorus
Glucose                               SPECIAL CHEMISTRY
ALT (SGPT)                            Testosterone, Total(2a)
AST (SGOT)                            METHOD: BAYER CHEMILUMINESCENCE
Total Bilirubin                       Prostate Specific Antigen (PSA)(2a)
Albumin                               METHOD:  ABBOTT MEIA
Alkaline Phosphatase                  Prostatic Acid Phosphatase (PAP)(2b)
LDH                                   METHOD: ICMA
METHOD: ROCHE BMD
                                      IMMUNOLOGY
HAEMATOLOGY(1)                        Anti-Nuclear Antibodies Titer (ANA)(2a)
Haemoglobin                           Anti-Nuclear Antibodies Pattern (ANA)(2a)
Haematocrit                           METHOD: IFA
MCV                                   Rheumatoid Factor(2a)
MCH                                   METHOD: ROCHE TINAQUANT
MCHC
RBC
WBC
Platelet Count
RBC Morphology
Differential
RDW
METHOD: BECKMAN/COULTER/MANUAL MICROSCOPY

PLEASE NOTE: Quintiles Laboratories will provide the centers with all the
materials necessary for specimen collection, temporary storage and overnight
shipping of samples. Services assume that all samples will ship ambient on the
day of collection, unless otherwise noted.

(1) Quintiles Laboratories assumes standard test panels. Customization of
testing may result in budget changes.

(2) The centers will collect the specimens and store at - 20(degree)C or colder.
On the day of collection at the Screen Visit and at the Baseline Visit and
monthly thereafter, the centers will ship the frozen samples on dry ice (to be
provided BY the centers) to Quintiles Laboratories.

      (2a) Upon receipt, Quintiles Laboratories will analyze the samples and
      issue a laboratory report.

      (2b) Upon receipt Quintiles Laboratories will repackage the samples and
      forward to Specialty Laboratories for analysis. The results will be
      entered into the Quintiles Laboratories protocol specific database and
      reports will be issued to the centers.
<PAGE>
* AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

                                    EXHIBIT B
                             LABORATORY REQUIREMENTS
                                   VERSION 09
                         NORTHWEST BIOTHERAPEUTICS, INC.
                               PROTOCOL: DC3-HRPC
                           INDICATION: PROSTATE CANCER

<TABLE>
<S>                                           <C>
VIROLOGY                                      SPECIMEN COLLECTION & TESTING MATERIALS
Hepatitis B Surface Antigen (HBsAg)           Erythrocyte Sedimentation Rate (ESR)(4)
Hepatitis B Core Total Antibody (Anti-HBc)
HIV 1/2 EIA Screen                            SPECIMEN COLLECTION MATERIALS(5)
Hepatitis C Antibody (Anti-HCV)               *
METHOD: ABBOTT EIA
Rapid Plasma Reagin (RPR)
METHOD:  BECTON-DICKSON MACRO-VUE
HTLV-I / II IgG, Ab(3)
METHOD:  EIA
HIV-1 Free Antigen(3)
METHOD: EIA/IB
</TABLE>

(3) Upon receipt Quintiles Laboratories will forward the ambient samples to
Specialty Laboratories for analysis. The results will be entered into the
Quintiles Laboratories protocol specific database and reports will be issued to
the centers.

(4) Quintiles laboratories will provide the centers with the testing
kits/materials for consistency in methodology of on-site analysis.

(5) *
<PAGE>
*AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

PROVISIONAL SERVICES BUDGET - LINE ITEM - NORTH AMERICA                EXHIBIT C
VERSION: 09
NORTHWEST BIOTHERAPEUTICS, INC.
PROTOCOL: DC3-HRPC - DOUBLE-BLINDED, PLACEBO-CONTROLLED
INDICATION: PROSTATE CANCER

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
                                                                                 NO. OF                        EXTENDED
                   SERVICE OR TEST DESCRIPTION                              PATIENT VISITS*       FEE*           FEE*
-----------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                   <C>          <C>
ADMINISTRATIVE / DATABASE
SET UP & PROJECT MANAGEMENT (fees based on a project
duration of * for enrollment; 36 months patient duration.
Extensions to the duration of the project may result in additional fees).                                         *

DATABASE DEVELOPMENT                                                                                              *

DATABASE TRANSMISSIONS & ROUTINE MAINTENANCE                                       *               *              *

ANALYTICAL TESTING

CHEMISTRY W/ 16 CONSTITUENTS                                                       *               *              *

HAEMATOLOGY W/ DIFFERENTIAL & PLATELET COUNT                                       *               *              *

URINALYSIS W/ MICROSCOPIC                                                          *               *              *

TESTOSTERONE, TOTAL                                                                *               *              *

PROSTATE SURFACE ANTIGEN (PSA)                                                     *               *              *

PROSTATIC ACID PHOSPHATASE (PAP): SPECIALTY LAB                                    *               *              *

ANTI-NUCLEAR ANTIBODIES TITER (ANA)                                                *               *              *

ANTI-NUCLEAR ANTIBODIES PATTERN (ANA)                                              *               *              *

RHEUMATOID FACTOR                                                                  *               *              *

HEPATITIS SCREEN PANEL  (HBsAg and ANTI-HCV)                                       *               *              *

HEPATITIS B CORE TOTAL ANTIBODY (ANTI-Hbc)                                         *               *              *

HIV 1/2 EIA SCREEN                                                                 *               *              *

RAPID PLASMA REAGIN (RPR)                                                          *               *              *

HTLV-I/II IgG, Ab:  SPECIALTY LAB                                                  *               *              *

HIV-I FREE ANTIGEN:  SPECIALTY LAB                                                 *               *              *

REPORTING

FAX REPORT TO INVESTIGATOR - UNITED STATES DAILY                                   *               *              *

FAX REPORT TO INVESTIGATOR - UNITED STATES MONTHLY                                 *               *              *

FAX REPORT TO INVESTIGATOR - SPECIALTY LAB REPORT                                  *               *              *

QNET(TM) LABORATORY REPORTING SOFTWARE                                             *               *              *

KIT CONSTRUCTION & SUPPLIES

KIT TRANSPORTATION MANAGEMENT FEE - UNITED STATES                                  *               *              *

AMBIENT KITS                                                                       *               *              *
</TABLE>

<PAGE>

*AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

<TABLE>
<S>                                                                         <C>                   <C>          <C>

*                                                                                  *               *              *

*                                                                                  *               *              *

NON-INFECTIOUS FROZEN SHIPPER                                                      *               *              *

ERYTHROCYTE SEDIMENTATION RATE (ESR) KITS                                          *               *              *

TRANSPORTATION - UNITED STATES

BULK DISTRIBUTION - AMBIENT QKITS                                                  *               *              *

*                                                                                  *               *              *

*                                                                                  *               *              *

BULK DISTRIBUTION - NON-INFECTIOUS FROZEN SHIPPER                                  *               *              *

INBOUND - AMBIENT QKITS                                                            *               *              *

*                                                                                  *               *              *

INBOUND - NON-INFECTIOUS FROZEN SHIPPER                                            *               *              *

                                           TOTAL PROVISIONAL SERVICES BUDGET                                      *
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                                                                           NO. OF PATIENT                       EXTENDED
                    DESCRIPTION                                                VISITS*            FEE*            FEE*
------------------------------------------------------------------------------------------------------------------------
<S>                                                                        <C>                    <C>         <C>
ADMINISTRATIVE / DATABASE

Total for services outlined on line item budget                                                                    *

VISIT FEES -- UNITED STATES (INCLUDES ANALYTICAL AND REPORTING)

SCREEN VISIT                                                                      *                *               *

BASELINE VISIT                                                                    *                *               *

TIME 0 VISIT, WEEKS 12, 20, 38, MONTHS 18, 24, 30 AND 36 VISITS                   *                *               *

WEEKS 4 AND 8 VISITS                                                              *                *               *

WEEK 52 VISIT                                                                     *                *               *

RETEST VISIT                                                                      *                *               *

KIT SUPPLY VISIT FEES -- UNITED STATES (INCLUDES KIT SUPPLIES
AND KIT TRANSPORTATION MANAGEMENT FEE)

SCREEN, BASELINE, TIME 0, WEEKS 4, 8, 12, 20, 38, 52,
MONTHS 18, 24, 30 and 36 VISITS KIT                                               *                *               *

*                                                                                 *                *               *

*                                                                                 *                *               *

NON-INFECTIOUS FROZEN SHIPPER                                                     *                *               *

RETEST VISIT KIT                                                                  *                *               *
</TABLE>

<PAGE>

*AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

<TABLE>
<S>                                                                        <C>                    <C>         <C>
TRANSPORTATION ESTIMATE FOR NORTH AMERICA (TOTAL FROM
SERVICES OUTLINED ON THE LINE ITEM BUDGET)                                                                         *

                                              PROVISIONAL SERVICES BUDGET                                          *
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                            NO. OF PATIENT                    EXTENDED
                   SERVICE OR TEST DESCRIPTION                                  VISITS*            FEE*         FEE*
----------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                    <C>      <C>
ADMINISTRATIVE / DATABASE

SET UP & PROJECT MANAGEMENT (fees based on a project
duration of * for enrollment; 36 months patient duration.                                                         *
Extensions to the duration of the project may result in additional fees.

DATABASE DEVELOPMENT                                                                                              *

ANALYTICAL TESTING

CHEMISTRY W/ 16 CONSTITUENTS                                                       *                *             *

HAEMATOLOGY W/ DIFFERENTIAL & PLATELET COUNT                                       *                *             *

URINALYSIS W/ MICROSCOPIC                                                          *                *             *

TESTOSTERONE, TOTAL                                                                *                *             *

PROSTATE SURFACE ANTIGEN (PSA)                                                     *                *             *

PROSTATIC ACID PHOSPHATASE (PAP):  Specialty Lab                                   *                *             *

ANTI-NUCLEAR ANTIBODIES TITER (ANA)                                                *                *             *

ANTI-NUCLEAR ANTIBODIES PATTERN (ANA)                                              *                *             *

RHEUMATOID FACTOR                                                                  *                *             *

REPORTING

FAX REPORT TO INVESTIGATOR -- UNITED STATES DAILY                                  *                *             *

FAX REPORT TO INVESTIGATOR -- UNITED STATES WEEKLY                                 *                *             *

QNET(TM) LABORATORY REPORTING SOFTWARE                                             *                *             *

KIT CONSTRUCTION & SUPPLIES

KIT TRANSPORTATION MANAGEMENT FEE -- UNITED STATES                                 *                *             *

AMBIENT QKITS                                                                      *                *             *

*                                                                                  *                *             *

*                                                                                  *                *             *

NON-INFECTIOUS FROZEN SHIPPER                                                      *                *             *

ERYTHROCYTE SEDIMENTATION RATE (ESR) KITS                                          *                *             *

TRANSPORTATION -- UNITED STATES

BULK DISTRIBUTION -- AMBIENT QKITS                                                 *                *             *
</TABLE>

<PAGE>

*AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 30, 2001
INFORMATION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND HAS BEEN FILED SEPARATELY WITH THE SEC.

<TABLE>
<S>                                                                         <C>                    <C>      <C>
*                                                                                  *                *             *

*                                                                                  *                *             *

BULK DISTRIBUTION -- NON-INFECTIOUS FROZEN SHIPPER                                 *                *             *

INBOUND -- AMBIENT QKITS                                                           *                *             *

*                                                                                  *                *             *

INBOUND -- NON-INFECTIOUS FROZEN SHIPPER                                           *                *             *

                                    TOTAL PROVISIONAL SERVICES BUDGET                                             *
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                                                                            NO. OF PATIENT                      EXTENDED
                        DESCRIPTION                                             VISITS*          FEE*             FEE*
------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>                  <C>            <C>
ADMINISTRATIVE / DATABASE

Total for services outlined on line item budge                                                                      *

VISIT FEES -- UNITED STATES (INCLUDES ANALYTICAL AND REPORTING)

BASELINE VISIT                                                                     *              *                 *

TIME 0 VISIT, WEEKS 12, 20, 38, MONTHS 18, 24, 30 AND 36 VISITS                    *              *                 *

WEEKS 4 AND 8 VISITS                                                               *              *                 *

WEEK 52 VISIT                                                                      *              *                 *

RETEST VISIT                                                                       *              *                 *

KIT SUPPLY VISIT FEES -- UNITED STATES (INCLUDES KIT SUPPLIES AND
KIT TRANSPORTATION MANAGEMENT FEE)

SCREEN, BASELINE, TIME 0, WEEKS 4, 8, 12, 20, 38, 52, MONTHS 18,
24, 30 AND 36 VISITS KIT                                                           *              *                 *

*                                                                                  *              *                 *

*                                                                                  *              *                 *

NON-INFECTIOUS FROZEN SHIPPER                                                      *              *                 *

RETEST VISIT KIT                                                                   *              *                 *

TRANSPORTATION ESTIMATE FOR NORTH AMERICA (TOTAL FROM SERVICES
OUTLINED ON THE LINE ITEM BUDGET)                                                                                   *

                                              PROVISIONAL SERVICES BUDGET                                           *
</TABLE><PAGE>

                                                                     EXHIBIT 4.9

                         THIRD WAVE TECHNOLOGIES, INC.

                                       AND

                          EQUISERVE TRUST COMPANY N.A.

                                  RIGHTS AGENT

                        PREFERRED STOCK RIGHTS AGREEMENT

                          DATED AS OF OCTOBER 24, 2001

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                            PAGE
                                                                                            ----
<S>                                                                                         <C>
Section 1.  Certain Definitions...............................................................1

Section 2.  Appointment of Rights Agent.......................................................7

Section 3.  Issuance of Rights Certificates...................................................7

Section 4.  Form of Rights Certificates.......................................................9

Section 5.  Countersignature and Registration.................................................9

Section 6.  Transfer, Split Up, Combination and Exchange of Rights Certificates;
            Mutilated, Destroyed, Lost or Stolen Rights Certificates.........................10

Section 7.  Exercise of Rights; Exercise Price; Expiration Date of Rights....................11

Section 8.  Cancellation and Destruction of Rights Certificates..............................13

Section 9.  Reservation and Availability of Preferred Shares.................................13

Section 10. Record Date......................................................................14

Section 11. Adjustment of Exercise Price, Number of Shares or Number of Rights...............15

Section 12. Certificate of Adjusted Exercise Price or Number of Shares.......................21

Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power.............21

Section 14. Fractional Rights and Fractional Shares..........................................25

Section 15. Rights of Action.................................................................26

Section 16. Agreement of Rights Holders......................................................26

Section 17. Rights Certificate Holder Not Deemed a Stockholder...............................27

Section 18. Concerning the Rights Agent......................................................27

Section 19. Merger or Consolidation or Change of Name of Rights Agent........................28

Section 20. Duties of Rights Agent...........................................................28

Section 21. Change of Rights Agent...........................................................30
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                            PAGE
                                                                                            ----
<S>                                                                                         <C>
Section 22. Issuance of New Rights Certificates..............................................31

Section 23. Redemption.......................................................................31

Section 24. Exchange.........................................................................32

Section 25. Notice of Certain Events.........................................................34

Section 26. Notices..........................................................................34

Section 27. Supplements and Amendments.......................................................35

Section 28. Successors.......................................................................35

Section 29. Determinations and Actions by the Board of Directors, etc........................35

Section 30. Benefits of this Agreement.......................................................36

Section 31. Severability.....................................................................36

Section 32. Governing Law....................................................................36

Section 33. Counterparts.....................................................................36

Section 34. Descriptive Headings.............................................................36
</TABLE>

EXHIBITS

Exhibit A      Form of Certificate of Designation

Exhibit B      Form of Rights Certificate

Exhibit C      Summary of Rights

                                     -iii-
<PAGE>

                        PREFERRED STOCK RIGHTS AGREEMENT

        This Preferred Stock Rights Agreement (the "AGREEMENT"), is dated as of
OCTOBER 24, 2001, between Third Wave Technologies, Inc., a Delaware corporation,
and EquiServe Trust Company N.A.

        On October 24, 2001 (the "RIGHTS DIVIDEND DECLARATION DATE"), the Board
of Directors of the Company authorized and declared a dividend of one Preferred
Share Purchase Right (a "RIGHT") for each Common Share (as hereinafter defined)
of the Company outstanding as of the Close of Business (as hereinafter defined)
on December 20, 2001 (the "RECORD DATE"), each Right representing the right to
purchase one one-thousandth (0.001) of a share of Series A Participating
Preferred Stock (as such number may be adjusted pursuant to the provisions of
this Agreement), having the rights, preferences and privileges set forth in the
form of Certificate of Designations of Rights, Preferences and Privileges of
Series A Participating Preferred Stock attached hereto as Exhibit A, upon the
terms and subject to the conditions herein set forth, and further authorized and
directed the issuance of one Right (as such number may be adjusted pursuant to
the provisions of this Agreement) with respect to each Common Share that shall
become outstanding between the Record Date and the earlier of the Distribution
Date and the Expiration Date (as such terms are hereinafter defined), and in
certain circumstances after the Distribution Date.

        NOW, THEREFORE, in consideration of the promises and the mutual
agreements herein set forth, the parties hereby agree as follows:

        Section 1. Certain Definitions. For purposes of this Agreement, the
following terms have the meanings indicated:

                (a) "ACQUIRING PERSON" shall mean any Person, who or which,
together with all Affiliates and Associates of such Person, shall be the
Beneficial Owner of 15% or more of the Common Shares then outstanding, but shall
not include the Company, any Subsidiary of the Company or any employee benefit
plan of the Company or of any Subsidiary of the Company, or any entity holding
Common Shares for or pursuant to the terms of any such plan. Notwithstanding the
foregoing, no Person shall be deemed to be an Acquiring Person as the result of
an acquisition of Common Shares 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 Common Shares of the Company then
outstanding; provided, however, that if a Person shall become the Beneficial
Owner of 15% or more of the Common Shares of the Company then outstanding by
reason of share purchases by the Company and shall, after such share purchases
by the Company, become the Beneficial Owner of any additional Common Shares of
the Company (other than pursuant to a dividend or distribution paid or made by
the Company on the outstanding Common Shares in Common Shares or pursuant to a
split or subdivision of the outstanding Common Shares), then such Person shall
be deemed to be an Acquiring Person unless upon becoming the Beneficial Owner of
such additional Common Shares of the Company such Person does not beneficially
own

<PAGE>

15% or more of the Common Shares of the Company then outstanding.
Notwithstanding the foregoing, (i) if the Company's Board of Directors
determines in good faith that a Person who would otherwise be an "Acquiring
Person," as defined pursuant to the foregoing provisions of this paragraph (a),
has become such inadvertently (including, without limitation, because (A) such
Person was unaware that it beneficially owned a percentage of the Common Shares
that would otherwise cause such Person to be an "Acquiring Person," as defined
pursuant to the foregoing provisions of this paragraph (a), or (B) such Person
was aware of the extent of the Common Shares it beneficially owned but had no
actual knowledge of the consequences of such beneficial ownership under this
Agreement) and without any intention of changing or influencing control of the
Company, and if such Person divested or divests as promptly as practicable a
sufficient number of Common Shares so that such Person would no longer be an
"Acquiring Person," as defined pursuant to the foregoing provisions of this
paragraph (a), then such Person shall not be deemed to be or to have become an
"Acquiring Person" for any purposes of this Agreement; and (ii) if, as of the
date hereof, any Person is the Beneficial Owner of 15% or more of the Common
Shares outstanding, such Person shall not be or become an "Acquiring Person," as
defined pursuant to the foregoing provisions of this paragraph (a), unless and
until such time as such Person shall become the Beneficial Owner of additional
Common Shares (other than pursuant to a dividend or distribution paid or made by
the Company on the outstanding Common Shares in Common Shares or pursuant to a
split or subdivision of the outstanding Common Shares), unless, upon becoming
the Beneficial Owner of such additional Common Shares, such Person is not then
the Beneficial Owner of 15% or more of the Common Shares then outstanding.
Notwithstanding the foregoing portion of this section 1(a), and qualified the
sentence following this sentence, Kenneth R. McGuire shall not be an "Acquiring
Person" unless he becomes the Beneficial Owner of 16% or more of the Common
Shares then outstanding. It is the intent of the preceding sentence to apply the
provisions of this Agreement to Kenneth R. McGuire, mutatis mutandis, to apply a
16% threshold to Kenneth R. McGuire where a 15% threshold applies to other
persons.

                (b) "ADJUSTMENT FRACTION" shall have the meaning set forth in
Section 11(a)(i) hereof.

                (c) "AFFILIATE" and "ASSOCIATE" shall have the respective
meanings ascribed to such terms in Rule 12b-2 of the General Rules and
Regulations under the Exchange Act, as in effect on the date of this Agreement.

                (d) A Person shall be deemed the "BENEFICIAL OWNER" of and shall
be deemed to "BENEFICIALLY OWN" any securities:

                        (i) which such Person or any of such Person's Affiliates
or Associates beneficially owns, directly or indirectly, for purposes of Section
13(d) of the Exchange Act and Rule 13d-3 thereunder (or any comparable or
successor law or regulation);

                        (ii) which such Person or any of such Person's
Affiliates or Associates has (A) the right to acquire (whether such right is
exercisable immediately or only after the passage of time) pursuant to any
agreement, arrangement or understanding (other than customary agreements with
and between underwriters and selling group members with respect to a bona fide
public

                                      -2-
<PAGE>

offering of securities), or upon the exercise of conversion rights, exchange
rights, rights (other than the Rights), warrants or options, or otherwise;
provided, however, that a Person shall not be deemed pursuant to this Section
1(d)(ii)(A) to be the Beneficial Owner of, or to beneficially own, (1)
securities tendered pursuant to a tender or exchange offer made by or on behalf
of such Person or any of such Person's Affiliates or Associates until such
tendered securities are accepted for purchase or exchange, or (2) securities
which a Person or any of such Person's Affiliates or Associates may be deemed to
have the right to acquire pursuant to any merger or other acquisition agreement
between the Company and such Person (or one or more of its Affiliates or
Associates) if such agreement has been approved by the Board of Directors of the
Company prior to there being an Acquiring Person; or (B) the right to vote
pursuant to any agreement, arrangement or understanding; provided, however, that
a Person shall not be deemed the Beneficial Owner of, or to beneficially own,
any security under this Section 1(d)(ii)(B) if the agreement, arrangement or
understanding to vote such security (1) arises solely from a revocable proxy or
consent given to such Person in response to a public proxy or consent
solicitation made pursuant to, and in accordance with, the applicable rules and
regulations of the Exchange Act and (2) is not also then reportable on Schedule
13D under the Exchange Act (or any comparable or successor report); or

                        (iii) which are beneficially owned, directly or
indirectly, by any other Person (or any Affiliate or Associate thereof) with
which such Person or any of such Person'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
Section 1(d)(ii)(B)) or disposing of any securities of the Company; provided,
however, that in no case shall an officer or director of the Company be deemed
(x) 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 (y) 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 the
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.

                (e) "BUSINESS DAY" shall mean any day other than a Saturday,
Sunday or a day on which banking institutions in New York are authorized or
obligated by law or executive order to close.

                (f) "CLOSE OF BUSINESS" on any given date shall mean 5:00 P.M.,
New York time, on such date; provided, however, that if such date is not a
Business Day it shall mean 5:00 P.M., New York time, on the next succeeding
Business Day.

                (g) "COMMON SHARES" when used with reference to the Company
shall mean the shares of Common Stock of the Company, par value $0.001 per
share. Common Shares when used with reference to any Person other than the
Company shall mean the capital stock (or equity interest)

                                      -3-
<PAGE>

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.

                (h) "COMMON STOCK EQUIVALENTS" shall have the meaning set forth
in Section 11(a)(iii) hereof.

                (i) "COMPANY" shall mean Third Wave Technologies, Inc., a
Delaware corporation, subject to the terms of Section 13(a)(iii)(C) hereof.

                (j) "CURRENT PER SHARE MARKET PRICE" of any security (a
"SECURITY" for purposes of this definition), for all computations other than
those made pursuant to Section 11(a)(iii) hereof, shall mean the average of the
daily closing prices per share of such Security for the thirty (30) consecutive
Trading Days immediately prior to such date, and for purposes of computations
made pursuant to Section 11(a)(iii) hereof, the Current Per Share Market Price
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 ten (10) consecutive Trading
Days immediately prior to such date; provided, however, 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 (i) a dividend or
distribution on such Security payable in shares of such Security or securities
convertible into such shares or (ii) any subdivision, combination or
reclassification of such Security, and prior to the expiration of the applicable
thirty (30) Trading Day or ten (10) Trading Day period, after 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 New York
Stock Exchange or, if the Security is not listed or admitted to trading on the
New York Stock Exchange, 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 sale price or, if such last sale price is not reported, the
average of the high bid and low asked prices in the over-the-counter market, as
reported by 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 fair value of such
shares on such date as determined in good faith by the Board of Directors of the
Company shall be used. If the Preferred Shares are not publicly traded, the
Current Per Share Market Price of the Preferred Shares shall be conclusively
deemed to be (x) the Current Per Share Market Price of the Common Shares as
determined pursuant to this Section 1(j), as appropriately adjusted to reflect
any stock split, stock dividend or similar transaction occurring after the date
hereof, multiplied by (y) 1,000. If the Security is not publicly held or so
listed or traded, Current Per Share Market Price shall mean the fair value per
share as determined in

                                      -4-
<PAGE>

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
for all purposes.

                (k) "CURRENT VALUE" shall have the meaning set forth in Section
11(a)(iii) hereof.

                (l) "DISTRIBUTION DATE" shall mean the earlier of (i) the Close
of Business on the tenth day (or such later date as may be determined by action
of the Company's Board of Directors) after the Shares Acquisition Date (or, if
the tenth day after the Shares Acquisition Date occurs before the Record Date,
the Close of Business on the Record Date) or (ii) the Close of Business on the
tenth Business Day (or such later date as may be determined by action of the
Company's Board of Directors) 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
or entity organized, appointed or established by the Company for or pursuant to
the terms of any such plan) is first published or sent or given within the
meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange
Act, if, assuming the successful consummation thereof, such Person would be an
Acquiring Person.

                (m) "EQUIVALENT SHARES" shall mean Preferred Shares and any
other class or series of capital stock of the Company which is entitled to the
same rights, privileges and preferences as the Preferred Shares.

                (n) "EXCHANGE ACT" shall mean the Securities Exchange Act of
1934, as amended.

                (o) "EXCHANGE RATIO" shall have the meaning set forth in Section
24(a) hereof.

                (p) "EXERCISE PRICE" shall have the meaning set forth in Section
4(a) hereof.

                (q) "EXPIRATION DATE" shall mean the earliest to occur of: (i)
the Close of Business on the Final Expiration Date, (ii) the Redemption Date, or
(iii) the time at which the Board of Directors orders the exchange of the Rights
as provided in Section 24 hereof.

                (r) "FINAL EXPIRATION DATE" shall mean December 20, 2011.

                (s) "NASDAQ" shall mean The NASDAQ Stock Market, Inc..

                (t) "PERSON" shall mean any individual, firm, corporation or
other entity, and shall include any successor (by merger or otherwise) of such
entity.

                (u) "POST-EVENT TRANSFEREE" shall have the meaning set forth in
Section 7(e) hereof.

                (v) "PREFERRED SHARES" shall mean shares of Series A
Participating Preferred Stock, par value $0.001 per share, of the Company.

                                      -5-
<PAGE>

                (w) "PRE-EVENT TRANSFEREE" shall have the meaning set forth in
Section 7(e) hereof.

                (x) "PRINCIPAL PARTY" shall have the meaning set forth in
Section 13(b) hereof.

                (y) "RECORD DATE" shall have the meaning set forth in the
recitals at the beginning of this Agreement.

                (z) "REDEMPTION DATE" shall have the meaning set forth in
Section 23(a) hereof.

                (aa) "REDEMPTION PRICE" shall have the meaning set forth in
Section 23(a) hereof.

                (bb) "RIGHTS AGENT" shall mean (i) EquiServe Trust Company N.A.,
(ii) its successor or replacement as provided in Sections 19 and 21 hereof or
(iii) any additional Person appointed pursuant to Section 2 hereof.

                (cc) "RIGHTS CERTIFICATE" shall mean a certificate substantially
in the form attached hereto as Exhibit B.

                (dd) "RIGHTS DIVIDEND DECLARATION DATE" shall have the meaning
set forth in the recitals at the beginning of this Agreement.

                (ee) "SECTION 11(a)(ii) TRIGGER DATE" shall have the meaning set
forth in Section 11(a)(iii) hereof.

                (ff) "SECTION 13 EVENT" shall mean any event described in clause
(i), (ii) or (iii) of Section 13(a) hereof.

                (gg) "SECURITIES ACT" shall mean the Securities Act of 1933, as
amended.

                (hh) "SHARES ACQUISITION DATE" shall mean the first date of
public announcement (which, for purposes of this definition, shall include,
without limitation, a report filed pursuant to Section 13(d) under the Exchange
Act) by the Company or an Acquiring Person that an Acquiring Person has become
such; provided that, if such Person is determined not to have become an
Acquiring Person pursuant to Section 1(a) hereof, then no Shares Acquisition
Date shall be deemed to have occurred.

                (ii) "SPREAD" shall have the meaning set forth in Section
11(a)(iii) hereof.

                (jj) "SUBSIDIARY" of any Person shall mean any corporation or
other entity of which an amount of voting securities sufficient to elect a
majority of the directors or Persons having similar authority of such
corporation or other entity is beneficially owned, directly or indirectly, by
such Person, or any corporation or other entity otherwise controlled by such
Person.

                (kk) "SUBSTITUTION PERIOD" shall have the meaning set forth in
Section 11(a)(iii) hereof.

                                      -6-
<PAGE>

                (ll) "SUMMARY OF RIGHTS" shall mean a summary of this Agreement
substantially in the form attached hereto as Exhibit C.

                (mm) "TOTAL EXERCISE PRICE" shall have the meaning set forth in
Section 4(a) hereof.

                (nn) "TRADING DAY" shall mean a day on which the principal
national securities exchange on which a referenced security is listed or
admitted to trading is open for the transaction of business or, if a referenced
security is not listed or admitted to trading on any national securities
exchange, a Business Day.

                (oo) A "TRIGGERING EVENT" shall be deemed to have occurred upon
any Person becoming an Acquiring Person.

        Section 2. Appointment of Rights Agent. The Company hereby appoints the
Rights Agent to act as agent for the Company and the holders of the Rights (who,
in accordance with Section 3 hereof, shall prior to the Distribution Date also
be the holders of the Common Shares) in accordance with the terms and conditions
hereof, and the Rights Agent hereby accepts such appointment. The Company may
from time to time appoint such co-Rights Agents as it may deem necessary or
desirable, upon ten (10) days' prior written notice to the Rights Agent. The
Rights Agent shall have no duty to supervise, and shall in no event be liable
for, the acts or omissions of any co-Rights Agent.

        Section 3. Issuance of Rights Certificates.

                (a) Until the Distribution Date, (i) the Rights will be
evidenced (subject to the provisions of Sections 3(b) and 3(c) hereof) by the
certificates for Common Shares 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 (ii) the right to receive Rights Certificates
will be transferable only in connection with the transfer of Common Shares.
Until the earlier of the Distribution Date or the Expiration Date, the surrender
for transfer of certificates for Common Shares shall also constitute the
surrender for transfer of the Rights associated with the Common Shares
represented thereby. As soon as practicable after the Distribution Date, 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,
send) by first-class, postage-prepaid mail, to each record holder of Common
Shares 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 evidencing
one Right for each Common Share so held, subject to adjustment as provided
herein. In the event that an adjustment in the number of Rights per Common Share
has been made pursuant to Section 11 hereof, then at the time of distribution of
the Rights Certificates, the Company shall make the necessary and appropriate
rounding adjustments (in accordance with Section 14(a) hereof) so that Rights
Certificates representing only whole numbers of Rights are distributed and cash
is paid in lieu of any fractional Rights. As of the Distribution Date, the
Rights will be evidenced solely by such Rights Certificates and may be
transferred by the transfer of the Rights Certificates as permitted hereby,
separately and apart from any transfer of Common Shares, and the holders of such
Rights Certificates as listed in the records of the Company or any transfer
agent or registrar for the Rights shall be the record holders thereof.

                                      -7-
<PAGE>

                (b) On the Record Date or as soon as practicable thereafter, the
Company will send a copy of the Summary of Rights by first-class,
postage-prepaid mail, to each record holder of Common Shares as of the Close of
Business on the Record Date, at the address of such holder shown on the records
of the Company's transfer agent and registrar. With respect to certificates for
Common Shares outstanding as of the Record Date, until the Distribution Date,
the Rights will be evidenced by such certificates registered in the names of the
holders thereof together with the Summary of Rights.

                (c) Unless the Board of Directors by resolution adopted at or
before the time of the issuance of any Common Shares after the Record Date but
prior to the earlier of the Distribution Date or the Expiration Date (or, in
certain circumstances provided in Section 22 hereof, after the Distribution
Date) specifies to the contrary, Rights shall be issued in respect of all Common
Shares that are so issued, and Certificates representing such Common Shares
shall also be deemed to be certificates for Rights, and shall bear the following
legend:

        THIS CERTIFICATE ALSO EVIDENCES AND ENTITLES THE HOLDER HEREOF TO
        CERTAIN RIGHTS AS SET FORTH IN A RIGHTS AGREEMENT BETWEEN THIRD WAVE
        TECHNOLOGIES, INC. AND EQUISERVE TRUST COMPANY N.A., AS THE RIGHTS
        AGENT, DATED AS OF OCTOBER 24, 2001, (THE "RIGHTS AGREEMENT"), THE TERMS
        OF WHICH ARE HEREBY INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH
        IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF THIRD WAVE
        TECHNOLOGIES, 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. THIRD WAVE
        TECHNOLOGIES, INC. WILL MAIL TO THE HOLDER OF THIS CERTIFICATE A COPY OF
        THE RIGHTS AGREEMENT WITHOUT CHARGE AFTER RECEIPT OF A WRITTEN REQUEST
        THEREFOR. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE RIGHTS AGREEMENT,
        RIGHTS ISSUED TO, OR HELD BY, ANY PERSON WHO IS, WAS OR BECOMES AN
        ACQUIRING PERSON OR ANY AFFILIATE OR ASSOCIATE THEREOF (AS SUCH TERMS
        ARE DEFINED IN THE RIGHTS AGREEMENT), WHETHER CURRENTLY HELD BY OR ON
        BEHALF OF SUCH PERSON OR BY ANY SUBSEQUENT HOLDER, MAY BECOME NULL AND
        VOID.

With respect to such certificates containing the foregoing legend, until the
earlier of the Distribution Date or the Expiration Date, the Rights associated
with the Common Shares represented by such certificates shall be evidenced by
such certificates alone, and the surrender for transfer of any such certificate
shall also constitute the transfer of the Rights associated with the Common
Shares represented thereby.

                (d) In the event that the Company purchases or acquires any
Common Shares after the Record Date but prior to the Distribution Date, any
Rights associated with such Common

                                      -8-
<PAGE>

Shares shall be deemed canceled and retired so that the Company shall not be
entitled to exercise any Rights associated with the Common Shares which are no
longer outstanding.

        Section 4. Form of Rights Certificates.

                (a) The Rights Certificates (and the forms of election to
purchase Common Shares and of assignment to be printed on the reverse thereof)
shall be substantially in the form of Exhibit B hereto and may have such marks
of identification or designation and such legends, summaries or endorsements
printed thereon as the Company may deem appropriate 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 a national market system, on which
the Rights may from time to time be listed or included, or to conform to usage.
Subject to the provisions of Section 11 and Section 22 hereof, the Rights
Certificates, whenever distributed, shall be dated as of the Record Date (or in
the case of Rights issued with respect to Common Shares issued by the Company
after the Record Date, as of the date of issuance of such Common Shares) and on
their face shall entitle the holders thereof to purchase such number of
one-thousandths of a Preferred Share as shall be set forth therein at the price
set forth therein (such exercise price per one one-thousandth of a Preferred
Share being hereinafter referred to as the "EXERCISE PRICE" and the aggregate
Exercise Price of all Preferred Shares issuable upon exercise of one Right being
hereinafter referred to as the "TOTAL EXERCISE PRICE"), but the number and type
of securities purchasable upon the exercise of each Right and the Exercise Price
shall be subject to adjustment as provided herein.

                (b) Any Rights Certificate issued pursuant to Section 3(a) or
Section 22 hereof that represents Rights beneficially owned by: (i) an Acquiring
Person or any Associate or Affiliate of an Acquiring Person, (ii) a Post-Event
Transferee, (iii) a Pre-Event Transferee or (iv) any subsequent transferee
receiving transferred Rights from a Post-Event Transferee or a Pre-Event
Transferee, either directly or through one or more intermediate transferees, and
any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon
transfer, exchange, replacement or adjustment of any other Rights Certificate
referred to in this sentence, shall contain (to the extent feasible) the
following legend:

        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 SECTION 7(e) OF THE RIGHTS AGREEMENT.

        Section 5. Countersignature and Registration.

                (a) The Rights Certificates shall be executed on behalf of the
Company by its Chairman of the Board, its Chief Executive Officer, its Chief
Financial Officer, its President or any

                                      -9-
<PAGE>

Vice President, either manually or by facsimile signature, and by the Secretary
or an Assistant Secretary of the Company, either manually or by facsimile
signature, and shall have affixed thereto the Company's seal (if any) or a
facsimile thereof. The Rights Certificates shall be manually 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 on behalf of the Company had not
ceased to be such officer of the Company; and 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 the execution of this
Rights Agreement any such person was not such an officer.

                (b) Following the Distribution Date, the Rights Agent will keep
or cause to be kept, at its office designated for such purposes, books for
registration and transfer of the Rights Certificates issued hereunder. 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.

        Section 6. Transfer, Split Up, Combination and Exchange of Rights
Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates.

                (a) Subject to the provisions of Sections 7(e), 14 and 24
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 may be transferred, split up, combined or exchanged for
another Rights Certificate or Rights Certificates, entitling the registered
holder to purchase a like number of one-thousandths of a Preferred Share (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 until the registered holder shall have completed and signed the
certificate contained in the form of assignment on the reverse side of such
Rights Certificate 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 shall reasonably request. Thereupon the Rights
Agent shall, subject to Sections 7(e), 14 and 24 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 of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any transfer, split up, combination or exchange of Rights
Certificates.

                                      -10-
<PAGE>

                (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, in case of loss, theft or destruction, of indemnity
or security reasonably satisfactory to them, and, at the Company'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 delivery to the
registered holder in lieu of the Rights Certificate so lost, stolen, destroyed
or mutilated.

        Section 7. Exercise of Rights; Exercise Price; Expiration Date of
Rights.

                (a) Subject to Sections 7(e), 23(b) and 24(b) hereof, the
registered holder of any Rights Certificate may exercise the Rights evidenced
thereby (except as otherwise provided herein) in whole or in part at any time
after the Distribution Date and prior to the Close of Business on the Expiration
Date by surrender of the Rights Certificate, with the form of election to
purchase on the reverse side thereof duly executed, to the Rights Agent at the
office of the Rights Agent designated for such purpose, together with payment of
the Exercise Price for each one-thousandth of a Preferred Share (or, following a
Triggering Event, other securities, cash or other assets as the case may be) as
to which the Rights are exercised.

                (b) The Exercise Price for each one-thousandth of a Preferred
Share issuable pursuant to the exercise of a Right shall initially be Sixty
Dollars ($60.00), 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.

                (c) Upon receipt of a Rights Certificate representing
exercisable Rights, with the form of election to purchase duly executed,
accompanied by payment of the Exercise Price for the number of one-thousandths
of a Preferred Share (or, following a Triggering Event, other securities, cash
or other assets as the case may be) to be purchased 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(e) hereof, the Rights Agent shall,
subject to Section 20(k) hereof, thereupon promptly (i) (A) requisition from any
transfer agent of the Preferred Shares (or make available, if the Rights Agent
is the transfer agent for the Preferred Shares) a certificate or certificates
for the number of one-thousandths of a Preferred Share (or, following a
Triggering Event, other securities, cash or other assets as the case may be) 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 one-thousandths of a Preferred Share (or, following
a Triggering Event, other securities, cash or other assets as the case may be)
issuable upon exercise of the Rights hereunder with a depository agent,
requisition from the depository agent depository receipts representing such
number of one-thousandths of a Preferred Share (or, following a Triggering
Event, other securities, cash or other assets as the case may be) as are to be
purchased (in which case certificates for the Preferred Shares (or, following a
Triggering Event, other securities, cash or other assets as the case may be)
represented by such receipts shall be deposited by the transfer agent with the
depository agent) and the Company hereby directs the depository agent to comply
with such request, (ii) when

                                      -11-
<PAGE>

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 depository 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. The payment
of the Exercise Price (as such amount may be reduced (including to zero)
pursuant to Section 11(a)(iii) hereof) 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(e) hereof, may be made in cash or by certified bank
check, cashier's check or bank draft payable to the order of the Company. In the
event that the Company is obligated to issue securities of the Company other
than Preferred Shares, 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 appropriate.

                (d) In case the registered holder of any Rights Certificate
shall exercise less than all the Rights evidenced thereby, a new Rights
Certificate evidencing Rights equivalent to the Rights remaining unexercised
shall be issued by the Rights Agent to the registered holder of such Rights
Certificate or to his or her duly authorized assigns, subject to the provisions
of Section 14 hereof.

                (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) who becomes a transferee after the Acquiring Person
becomes such (a "POST-EVENT TRANSFEREE"), (iii) a transferee of an Acquiring
Person (or of any such Associate or Affiliate) 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 Company's Board of Directors 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) (a "PRE-EVENT TRANSFEREE") or (iv) any subsequent
transferee receiving transferred Rights from a Post-Event Transferee or a
Pre-Event Transferee, either directly or through one or more intermediate
transferees, 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,
whether under any provision of this Agreement or otherwise. The Company shall
use all reasonable efforts to ensure that the provisions of this Section 7(e)
and Section 4(b) hereof are complied with, but shall have no liability to any
holder of Rights Certificates or to any other Person as a result of its failure
to make any determinations with respect to an Acquiring Person or any of such
Acquiring Person's Affiliates, Associates or transferees hereunder.

                (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

                                      -12-
<PAGE>

registered holder shall, in addition to having complied with the requirements of
Section 7(a), have (i) completed and signed 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 shall reasonably request.

        Section 8. Cancellation and Destruction of Rights Certificates. 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 canceled form,
or, if surrendered to the Rights Agent, shall be canceled by it, and no Rights
Certificates shall be issued in lieu thereof except as expressly permitted by
any of the provisions of this Agreement. The Company shall deliver to the Rights
Agent for cancellation and retirement, and the Rights Agent shall so cancel and
retire, any Rights Certificate purchased or acquired by the Company otherwise
than upon the exercise thereof. The Rights Agent shall deliver all canceled
Rights Certificates to the Company, or shall, at the written request of the
Company, destroy such canceled Rights Certificates, and in such case shall
deliver a certificate evidencing the destruction thereof to the Company.

        Section 9. Reservation and Availability of Preferred Shares.

                (a) The Company covenants and agrees that it will use its best
efforts to cause to be reserved and kept available out of its authorized and
unissued Preferred Shares not reserved for another purpose (and, following the
occurrence of a Triggering Event, out of its authorized and unissued Common
Shares and/or other securities), the number of Preferred Shares (and, following
the occurrence of the Triggering Event, Common Shares and/or other securities)
that will be sufficient to permit the exercise in full of all outstanding
Rights.

                (b) If the Company shall hereafter list any of its Preferred
Shares on a national securities exchange, then so long as the Preferred Shares
(and, following the occurrence of a Triggering Event, Common Shares and/or other
securities) issuable and deliverable upon exercise of the Rights may be listed
on such exchange, the Company shall use its best efforts to cause, from and
after such time as the Rights become exercisable (but only to the extent that it
is reasonably likely that the Rights will be exercised), all shares reserved for
such issuance to be listed on such exchange upon official notice of issuance
upon such exercise.

                (c) The Company shall use its best efforts to (i) file, as soon
as practicable following the earliest date after the first occurrence of a
Triggering Event in which the consideration to be delivered by the Company upon
exercise of the Rights is described in Section 11(a)(ii) or 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) cause such registration statement to become effective as soon as
practicable after such filing and (iii) 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) the date as of which the Rights are no
longer exercisable for such securities and (B) the date of expiration of the
Rights. The Company may temporarily suspend, for a period not to exceed

                                      -13-
<PAGE>

ninety (90) days after the date set forth in clause (i) of the first sentence of
this Section 9(c), the exercisability of the Rights in order to prepare and file
such registration statement and permit it to become effective. Upon any such
suspension, the Company shall issue a public announcement stating, and notify
the Rights Agent, that the exercisability of the Rights has been temporarily
suspended, as well as a public announcement and notification to the Rights Agent
at such time as the suspension is no longer in effect. The Company will also
take such action as may be appropriate under, or to ensure compliance with, the
securities or "blue sky" 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 in such jurisdiction shall have been obtained, or an
exemption therefrom shall be available, and until a registration statement has
been declared and remains effective.

                (d) The Company covenants and agrees that it will take all such
action as may be necessary to ensure that all Preferred Shares (or other
securities of the Company) delivered upon exercise of Rights shall, at the time
of delivery of the certificates for such securities (subject to payment of the
Exercise Price), be duly and validly authorized and issued and fully paid and
nonassessable.

                (e) The Company further covenants and agrees that it will pay
when due and payable any and all federal and state transfer taxes and charges
which may be payable in respect of the original issuance or delivery of the
Rights Certificates or of any Preferred Shares (or other securities of the
Company) upon the exercise of Rights. The Company shall not, however, be
required to pay any transfer tax 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 depository receipts for the Preferred Shares (or
other securities of the Company) 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 depository receipts for Preferred
Shares (or other securities of the Company) upon the exercise of any Rights
until any such tax shall have been paid (any such tax being payable by the
holder of such Rights Certificate at the time of surrender) or until it has been
established to the Company's satisfaction that no such tax is due.

        Section 10. Record Date. Each Person in whose name any certificate for a
number of one-thousandths of a Preferred Share (or other securities of the
Company) is issued upon the exercise of Rights shall for all purposes be deemed
to have become the holder of record of Preferred Shares (or other securities of
the Company) represented thereby on, and such certificate shall be dated, the
date upon which the Rights Certificate evidencing such Rights was duly
surrendered and payment of the Total Exercise Price with respect to which the
Rights have been exercised (and any applicable transfer taxes) was made;
provided, however, that if the date of such surrender and payment is a date upon
which the transfer books of the Company are closed, such Person shall be deemed
to have become the record holder of such shares on, and such certificate shall
be dated, the next succeeding Business Day on which the transfer books of the
Company are open. Prior to the exercise of the Rights evidenced thereby, the
holder of a Rights Certificate shall not be entitled to any rights of a holder
of Preferred Shares (or other securities of the Company) for which the Rights
shall be exercisable, including, without limitation, the right to vote, to
receive dividends or other

                                      -14-
<PAGE>

distributions or to exercise any preemptive rights, and shall not be entitled to
receive any notice of any proceedings of the Company, except as provided herein.

        Section 11. Adjustment of Exercise Price, Number of Shares or Number of
Rights. The Exercise Price, the number and kind of shares or other property
covered by each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 11.

                (a) (i) Anything in this Agreement to the contrary
notwithstanding, in the event that the Company shall at any time after the date
of this Agreement (A) declare a dividend on the Preferred Shares payable in
Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine
the outstanding Preferred Shares (by reverse stock split or otherwise) into a
smaller number of Preferred Shares, or (D) issue any shares of its capital stock
in a reclassification of the Preferred Shares (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation), then, in each such event,
except as otherwise provided in this Section 11 and Section 7(e) hereof: (1) the
Exercise Price in effect at the time of the record date for such dividend or of
the effective date of such subdivision, combination or reclassification shall be
adjusted so that the Exercise Price thereafter shall equal the result obtained
by dividing the Exercise Price in effect immediately prior to such time by a
fraction (the "ADJUSTMENT FRACTION"), the numerator of which shall be the total
number of Preferred Shares (or shares of capital stock issued in such
reclassification of the Preferred Shares) outstanding immediately following such
time and the denominator of which shall be the total number of Preferred Shares
outstanding immediately prior to such time; provided, however, 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 of the Company issuable
upon exercise of such Right; and (2) the number of one-thousandths of a
Preferred Share (or share of such other capital stock) issuable upon the
exercise of each Right shall equal the number of one-thousandths of a Preferred
Share (or share of such other capital stock) as was issuable upon exercise of a
Right immediately prior to the occurrence of the event described in clauses
(A)-(D) of this Section 11(a)(i), multiplied by the Adjustment Fraction;
provided, however, that, no such adjustment shall be made pursuant to this
Section 11(a)(i) to the extent that there shall have simultaneously occurred an
event described in clause (A), (B), (C) or (D) of Section 11(n) with a
proportionate adjustment being made thereunder. Each Common Share that shall
become outstanding after an adjustment has been made pursuant to this Section
11(a)(i) shall have associated with it the number of Rights, exercisable at the
Exercise Price and for the number of one-thousandths of a Preferred Share (or
shares of such other capital stock) as one Common Share has associated with it
immediately following the adjustment made pursuant to this Section 11(a)(i).

                        (ii) Subject to Section 24 of this Agreement, in the
event that a Triggering Event shall have occurred, then promptly following such
Triggering Event each holder of a Right, except as 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
Exercise Price in effect immediately prior to the occurrence of the Triggering
Event, in lieu of a number of one-thousandths of a Preferred Share, such number
of Common Shares of the Company as shall

                                      -15-
<PAGE>

equal the quotient obtained by dividing (A) the product obtained by multiplying
(1) the Exercise Price in effect immediately prior to the occurrence of the
Triggering Event by (2) the number of one-thousandths of a Preferred Share 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, by (B) 50% of the Current Per Share Market Price for Common
Shares on the date of occurrence of the Triggering Event; provided, however,
that the Exercise Price and the number of Common Shares of the Company so
receivable upon exercise of a Right shall be subject to further adjustment as
appropriate in accordance with Section 11(e) hereof to reflect any events
occurring in respect of the Common Shares of the Company after the occurrence of
the Triggering Event.

                        (iii) In lieu of issuing Common Shares in accordance
with Section 11(a)(ii) hereof, the Company may, if the Company's Board of
Directors determines that such action is necessary or appropriate and not
contrary to the interest of holders of Rights and, in the event that the number
of Common Shares which are authorized by the Company'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: (A) determine the
excess of (1) the value of the Common Shares issuable upon the exercise of a
Right (the "CURRENT VALUE") over (2) the Exercise Price (such excess, the
"SPREAD") and (B) with respect to each Right, make adequate provision to
substitute for such Common Shares, upon exercise of the Rights, (1) cash, (2) a
reduction in the Exercise Price, (3) other equity securities of the Company
(including, without limitation, shares or units of shares of any series of
preferred stock which the Company's Board of Directors has deemed to have the
same value as Common Shares (such shares or units of shares of preferred stock
are herein called "COMMON STOCK EQUIVALENTS")), except to the extent that the
Company has not obtained any necessary stockholder or regulatory approval for
such issuance, (4) debt securities of the Company, except to the extent that the
Company has not obtained any necessary stockholder or regulatory approval for
such issuance, (5) other assets or (6) any combination of the foregoing, having
an aggregate value equal to the Current Value, where such aggregate value has
been determined by the Company's Board of Directors based upon the advice of a
nationally recognized investment banking firm selected by the Company's Board of
Directors; provided, however, that if the Company shall not have made adequate
provision to deliver value pursuant to clause (B) above within thirty (30) days
following the later of (x) the first occurrence of a Triggering Event and (y)
the date on which the Company's right of redemption pursuant to Section 23(a)
expires (the later of (x) and (y) being referred to herein as the "SECTION
11(a)(ii) TRIGGER DATE"), then the Company shall be obligated to deliver, upon
the surrender for exercise of a Right and without requiring payment of the
Exercise Price, Common Shares (to the extent available), except to the extent
that the Company has not obtained any necessary stockholder or regulatory
approval for such issuance, and then, if necessary, cash, which shares and/or
cash have an aggregate value equal to the Spread. If the Company's Board of
Directors shall determine in good faith that it is likely that sufficient
additional Common Shares could be authorized for issuance upon exercise in full
of the Rights or that any necessary regulatory approval for such issuance will
be obtained, the thirty (30) day period set forth above may be extended to the
extent necessary, but not more than ninety (90) days after the Section 11(a)(ii)
Trigger Date, in order that the Company may seek stockholder approval for the
authorization of such additional shares or take action to obtain such

                                      -16-
<PAGE>

regulatory approval (such period, as it may be extended, the "SUBSTITUTION
PERIOD"). To the extent that the Company determines that some action need be
taken pursuant to the first and/or second sentences of this Section 11(a)(iii),
the Company (x) shall provide, subject to Section 7(e) hereof, that such action
shall apply uniformly to all outstanding Rights and (y) may suspend the
exercisability of the Rights until the expiration of the Substitution Period in
order to seek any authorization of additional shares, to take any action to
obtain any required regulatory approval and/or to decide the appropriate form of
distribution to be made pursuant to such first sentence and to determine the
value thereof. In the event of any such suspension, the Company shall 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
suspension is no longer in effect. For purposes of this Section 11(a)(iii), the
value of the Common Shares shall be the Current Per Share Market Price of the
Common Shares on the Section 11(a)(ii) Trigger Date and the value of any Common
Stock Equivalent shall be deemed to have the same value as the Common Shares on
such date.

                (b) In case the Company shall, at any time after the date of
this Agreement, fix a record date for the issuance of rights, options or
warrants to all holders of Preferred Shares entitling such holders (for a period
expiring within forty-five (45) calendar days after such record date) to
subscribe for or purchase Preferred Shares or Equivalent Shares or securities
convertible into Preferred Shares or Equivalent Shares at a price per share (or
having a conversion price per share, if a security convertible into Preferred
Shares or Equivalent Shares) less than the then Current Per Share Market Price
of the Preferred Shares or Equivalent Shares on such record date, then, in each
such case, the Exercise Price to be in effect after such record date shall be
determined by multiplying the Exercise Price in effect immediately prior to such
record date by a fraction, the numerator of which shall be the number of
Preferred Shares and Equivalent Shares (if any) outstanding on such record date,
plus the number of Preferred Shares or Equivalent Shares, as the case may be,
which the aggregate offering price of the total number of Preferred Shares or
Equivalent Shares, as the case may be, to be offered or issued (and/or the
aggregate initial conversion price of the convertible securities to be offered
or issued) would purchase at such current market price, and the denominator of
which shall be the number of Preferred Shares and Equivalent Shares (if any)
outstanding on such record date, plus the number of additional Preferred Shares
or Equivalent Shares, as the case may be, to be offered for subscription or
purchase (or into which the convertible securities so to be offered are
initially convertible); provided, however, 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 of the Company issuable upon
exercise of one Right. In case 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 Company's
Board of Directors, whose determination shall be described in a statement filed
with the Rights Agent and shall be binding on the Rights Agent and the holders
of the Rights. Preferred Shares and Equivalent Shares owned by or held for the
account of the Company shall not be deemed outstanding for the purpose of any
such computation. Such adjustment shall be made successively whenever such a
record date is fixed, and in the event that such rights, options or warrants are
not so issued, the Exercise Price shall be adjusted to be the Exercise Price
which would then be in effect if such record date had not been fixed.

                                      -17-
<PAGE>

                (c) In case the Company shall, at any time after the date of
this Agreement, fix a record date for the making of a distribution to all
holders of the Preferred Shares or of any class or series of Equivalent Shares
(including any such distribution made in connection with a consolidation or
merger in which the Company is the continuing or surviving corporation) of
evidences of indebtedness or assets (other than a regular quarterly cash
dividend, if any, or a dividend payable in Preferred Shares) or subscription
rights, options or warrants (excluding those referred to in Section 11(b)),
then, in each such case, the Exercise Price to be in effect after such record
date shall be determined by multiplying the Exercise Price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the
Current Per Share Market Price of a Preferred Share or an Equivalent Share on
such record date, less the fair market value per Preferred Share or Equivalent
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) of the portion of the cash, assets or evidences of indebtedness so to be
distributed or of such subscription rights or warrants applicable to a Preferred
Share or Equivalent Share, as the case may be, and the denominator of which
shall be such Current Per Share Market Price of a Preferred Share or Equivalent
Share on such record date; provided, however, 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 of the Company issuable upon
exercise of one Right. 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 Exercise Price shall be adjusted to be the Exercise Price which would have
been in effect if such record date had not been fixed.

                (d) Anything herein to the contrary notwithstanding, no
adjustment in the Exercise Price shall be required unless such adjustment would
require an increase or decrease of at least one percent (1.0%) of the Exercise
Price; provided, however, that any adjustments which by reason of this Section
11(d) 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 ten-thousandth of a Common
Share or other share or one hundred-thousandth of a Preferred Share, as the case
may be. Notwithstanding the first sentence of this Section 11(d), any adjustment
required by this Section 11 shall be made no later than the earlier of (i) three
(3) years from the date of the transaction which requires such adjustment or
(ii) the Expiration Date.

                (e) If as a result of an adjustment made pursuant to Section
11(a) or Section 13(a) hereof, the holder of any Right thereafter exercised
shall become entitled to receive any shares of capital stock other than
Preferred Shares, thereafter the number of such other shares so receivable upon
exercise of any Right and, if required, the Exercise 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 Shares
contained in Sections 11(a), 11(b), 11(c), 11(d), 11(g), 11(h), 11(i), 11(j),
11(k) and 11(l), and the provisions of Sections 7, 9, 10, 13 and 14 with respect
to the Preferred Shares shall apply on like terms to any such other shares.

                (f) All Rights originally issued by the Company subsequent to
any adjustment made to the Exercise Price hereunder shall evidence the right to
purchase, at the adjusted Exercise

                                      -18-
<PAGE>

Price, the number of one-thousandths of a Preferred Share purchasable from time
to time hereunder upon exercise of the Rights, all subject to further adjustment
as provided herein.

                (g) Unless the Company shall have exercised its election as
provided in Section 11(h), upon each adjustment of the Exercise Price as a
result of the calculations made in Section 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 Exercise Price, that number of Preferred
Shares (calculated to the nearest one hundred-thousandth of a share) obtained by
(i) multiplying (x) the number of Preferred Shares covered by a Right
immediately prior to this adjustment, by (y) the Exercise Price in effect
immediately prior to such adjustment of the Exercise Price, and (ii) dividing
the product so obtained by the Exercise Price in effect immediately after such
adjustment of the Exercise Price.

                (h) The Company may elect on or after the date of any adjustment
of the Exercise Price as a result of the calculations made in Section 11(b) or
(c) to adjust the number of Rights, in substitution for any adjustment in the
number of Preferred Shares 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 one-thousandths of a Preferred Share 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 hundred-thousandth) obtained by
dividing the Exercise Price in effect immediately prior to adjustment of the
Exercise Price by the Exercise Price in effect immediately after adjustment of
the Exercise 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. This record
date may be the date on which the Exercise Price is adjusted or any day
thereafter, but, if any Rights Certificates have been issued, shall be at least
ten (10) 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(h), 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 so to be distributed shall be issued, executed
and countersigned in the manner provided for herein (and may bear, at the option
of the Company, the adjusted Exercise Price) and shall be registered in the
names of the holders of record of Rights Certificates on the record date
specified in the public announcement.

                (i) Irrespective of any adjustment or change in the Exercise
Price or the number of Preferred Shares issuable upon the exercise of the
Rights, the Rights Certificates theretofore and thereafter issued may continue
to express the Exercise Price per one one-thousandth of a Preferred Share and
the number of one-thousandths of a Preferred Share which were expressed in the
initial Rights Certificates issued hereunder.

                                      -19-
<PAGE>

                (j) Before taking any action that would cause an adjustment
reducing the Exercise Price below the par or stated value, if any, of the number
of one-thousandths of a Preferred Share 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 as
fully paid and nonassessable shares such number of one-thousandths of a
Preferred Share at such adjusted Exercise Price.

                (k) In any case in which this Section 11 shall require that an
adjustment in the Exercise Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event the issuing to the holder of any Right exercised after such record date of
the number of one-thousandths of a Preferred Share and other capital stock or
securities of the Company, if any, issuable upon such exercise over and above
the number of one-thousandths of a Preferred Share and other capital stock or
securities of the Company, if any, issuable upon such exercise on the basis of
the Exercise Price in effect prior to such adjustment; provided, however, that
the Company shall deliver to such holder a due bill or other appropriate
instrument evidencing such holder's right to receive such additional shares
(fractional or otherwise) upon the occurrence of the event requiring such
adjustment.

                (l) Anything in this Section 11 to the contrary notwithstanding,
prior to the Distribution Date, the Company shall be entitled to make such
reductions in the Exercise 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) consolidation or
subdivision of the Preferred or Common Shares, (ii) issuance wholly for cash of
any Preferred or Common Shares at less than the current market price, (iii)
issuance wholly for cash of Preferred or Common Shares or securities which by
their terms are convertible into or exchangeable for Preferred or Common Shares,
(iv) stock dividends or (v) issuance of rights, options or warrants referred to
in this Section 11, hereafter made by the Company to holders of its Preferred or
Common Shares shall not be taxable to such stockholders.

                (m) The Company covenants and agrees that, after the
Distribution Date, it will not, except as permitted by Sections 23, 24 or 27
hereof, take (or permit to be taken) 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.

                (n) In the event that the Company shall at any time after the
date of this Agreement (A) declare a dividend on the Common Shares payable in
Common Shares, (B) subdivide the outstanding Common Shares, (C) combine the
outstanding Common Shares (by reverse stock split or otherwise) into a smaller
number of Common Shares, or (D) issue any shares of its capital stock in a
reclassification of the Common Shares (including any such reclassification in
connection with a consolidation or merger in which the Company is the continuing
or surviving corporation), then, in each such event, except as otherwise
provided in this Section 11(a) and Section 7(e) hereof: (1) each Common Share
(or shares of capital stock issued in such reclassification of the Common
Shares) outstanding immediately following such time shall have associated with
it the number of Rights as were associated with one Common Share immediately

                                      -20-
<PAGE>

prior to the occurrence of the event described in clauses (A)-(D) above; (2) the
Exercise Price in effect at the time of the record date for such dividend or of
the effective date of such subdivision, combination or reclassification shall be
adjusted so that the Exercise Price thereafter shall equal the result obtained
by multiplying the Exercise Price in effect immediately prior to such time by a
fraction, the numerator of which shall be the total number of Common Shares
outstanding immediately prior to the event described in clauses (A)-(D) above,
and the denominator of which shall be the total number of Common Shares
outstanding immediately after such event; provided, however, 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 of the Company issuable
upon exercise of such Right; and (3) the number of one-thousandths of a
Preferred Share (or shares of such other capital stock) issuable upon the
exercise of each Right outstanding after such event shall equal the number of
one-thousandths of a Preferred Share (or shares of such other capital stock) as
were issuable with respect to one Right immediately prior to such event. Each
Common Share that shall become outstanding after an adjustment has been made
pursuant to this Section 11(n) shall have associated with it the number of
Rights, exercisable at the Exercise Price and for the number of one-thousandths
of a Preferred Share (or shares of such other capital stock) as one Common Share
has associated with it immediately following the adjustment made pursuant to
this Section 11(n). If an event occurs which would require an adjustment under
both this Section 11(n) and Section 11(a)(ii) hereof, the adjustment provided
for in this Section 11(n) shall be in addition to, and shall be made prior to,
any adjustment required pursuant to Section 11(a)(ii) hereof.

        Section 12. Certificate of Adjusted Exercise Price or Number of Shares.
Whenever an adjustment is made as provided in Sections 11 and 13 hereof, the
Company shall promptly (a) prepare a certificate setting forth such adjustment
and a brief statement of the facts accounting for such adjustment, (b) file with
the Rights Agent and with each transfer agent for the Preferred Shares a copy of
such certificate and (c) mail a brief summary thereof to each holder of a Rights
Certificate in accordance with Section 26 hereof. Notwithstanding the foregoing
sentence, the failure of the Company to make such certification or give such
notice shall not affect the validity of such adjustment 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 contained
therein and shall not be deemed to have knowledge of such adjustment unless and
until it shall have received such certificate.

        Section 13. Consolidation, Merger or Sale or Transfer of Assets or
Earning Power.

                (a) In the event that, following a Triggering Event, directly or
indirectly:

                        (i) the Company shall consolidate with, or merge with
and into, any other Person (other than a wholly-owned Subsidiary of the Company
in a transaction the principal purpose of which is to change the state of
incorporation of the Company and which complies with Section 11(m) hereof);

                        (ii) any Person shall consolidate with the Company, or
merge with and into the Company and the Company shall be the continuing or
surviving corporation of such

                                      -21-
<PAGE>

consolidation or merger and, in connection with such merger, all or part of the
Common Shares shall be changed into or exchanged for stock or other securities
of any other person (or the Company); or

                        (iii) the Company shall sell or otherwise transfer (or
one or more of its Subsidiaries shall sell or otherwise transfer), in one or
more transactions, assets or earning power aggregating 50% or more 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 or one or more of its wholly
owned Subsidiaries in one or more transactions, each of which individually (and
together) complies with Section 11(m) hereof),

                                then, concurrent with and in each such case,

                                (A) each holder of a Right (except as provided
in Section 7(e) hereof) shall thereafter have the right to receive, upon the
exercise thereof at a price equal to the Total Exercise Price applicable
immediately prior to the occurrence of the Section 13 Event in accordance with
the terms of this Agreement, such number of validly authorized and issued, fully
paid, nonassessable and freely tradable Common Shares of the Principal Party (as
hereinafter defined), free of any liens, encumbrances, rights of first refusal
or other adverse claims, as shall be equal to the result obtained by dividing
such Total Exercise Price by an amount equal to fifty percent (50%) of the
Current Per Share Market Price of the Common Shares of such Principal Party on
the date of consummation of such Section 13 Event, provided, however, that the
Exercise Price and the number of Common Shares of such Principal Party so
receivable upon exercise of a Right shall be subject to further adjustment as
appropriate in accordance with Section 11(e) hereof;

                                (B) such Principal Party shall thereafter be
liable for, and shall assume, by virtue of such Section 13 Event, all the
obligations and duties of the Company pursuant to this Agreement;

                                (C) the term "Company" shall thereafter be
deemed to refer to such Principal Party, it being specifically intended that the
provisions of Section 11 hereof shall apply only to such Principal Party
following the first occurrence of a Section 13 Event;

                                (D) such Principal Party shall take such steps
(including, but not limited to, the reservation of a sufficient number of its
Common Shares) in connection with the consummation of any such transaction as
may be necessary to ensure that the provisions hereof shall thereafter be
applicable, as nearly as reasonably may be, in relation to its Common Shares
thereafter deliverable upon the exercise of the Rights; and

                                (E) upon the subsequent occurrence of any
consolidation, merger, sale or transfer of assets or other extraordinary
transaction in respect of such Principal Party, each holder of a Right shall
thereupon be entitled to receive, upon exercise of a Right and payment of the
Total Exercise Price as provided in this Section 13(a), such cash, shares,
rights, warrants and other property which such holder would have been entitled
to receive had such holder, at the time of such transaction, owned the Common
Shares of the Principal Party receivable upon the exercise of such Right
pursuant to this Section 13(a), and such Principal Party shall take such steps
(including, but

                                      -22-
<PAGE>

not limited to, reservation of shares of stock) as may be necessary to permit
the subsequent exercise of the Rights in accordance with the terms hereof for
such cash, shares, rights, warrants and other property.

                                (F) For purposes hereof, the "earning power" of
the Company and its Subsidiaries shall be determined in good faith by the
Company's Board of Directors on the basis of the operating income of each
business operated by the Company and its Subsidiaries during the three fiscal
years preceding the date of such determination (or, in the case of any business
not operated by the Company or any Subsidiary during three full fiscal years
preceding such date, during the period such business was operated by the Company
or any Subsidiary).

                (b) For purposes of this Agreement, the term "PRINCIPAL PARTY"
shall mean:

                        (i) in the case of any transaction described in clause
(i) or (ii) of Section 13(a) hereof: (A) the Person that is the issuer of the
securities into which the Common Shares are converted in such merger or
consolidation, or, if there is more than one such issuer, the issuer the Common
Shares of which have the greatest aggregate market value of shares outstanding,
or (B) if no securities are so issued, (x) the Person that is the other party to
the merger, if such Person survives said merger, or, if there is more than one
such Person, the Person the Common Shares of which have the greatest aggregate
market value of shares outstanding or (y) if the Person that is the other party
to the merger does not survive the merger, the Person that does survive the
merger (including the Company if it survives) or (z) the Person resulting from
the consolidation; and

                        (ii) in the case of any transaction described in clause
(iii) of Section 13(a) hereof, the Person that is the party receiving the
greatest portion of the assets or earning power transferred pursuant to such
transaction or transactions, or, if more than one Person that is a party to such
transaction or transactions receives the same portion of the assets or earning
power so transferred and each such portion would, were it not for the other
equal portions, constitute the greatest portion of the assets or earning power
so transferred, or if the Person receiving the greatest portion of the assets or
earning power cannot be determined, whichever of such Persons is the issuer of
Common Shares having the greatest aggregate market value of shares outstanding;
provided, however, that in any such case described in the foregoing clause
(b)(i) or (b)(ii), if the Common Shares of such Person are not at such time or
have not been continuously over the preceding 12-month period registered under
Section 12 of the Exchange Act, then (1) if such Person is a direct or indirect
Subsidiary of another Person the Common Shares of which are and have been so
registered, the term "Principal Party" shall refer to such other Person, or (2)
if such Person is a Subsidiary, directly or indirectly, of more than one Person,
the Common Shares of which are and have been so registered, the term "Principal
Party" shall refer to whichever of such Persons is the issuer of Common Shares
having the greatest aggregate market value of shares outstanding, or (3) if such
Person is owned, directly or indirectly, by a joint venture formed by two or
more Persons that are not owned, directly or indirectly by the same Person, the
rules set forth in clauses (1) and (2) above shall apply to each of the owners
having an interest in the venture as if the Person owned by the joint venture
was a Subsidiary of both or all of such joint venturers, and the Principal Party
in each such

                                      -23-
<PAGE>

case shall bear the obligations set forth in this Section 13 in the same ratio
as its interest in such Person bears to the total of such interests.

                (c) The Company shall not consummate any Section 13 Event unless
the Principal Party shall have a sufficient number of authorized Common Shares
that have not been issued or reserved for issuance to permit the exercise in
full of the Rights in accordance with this Section 13 and unless prior thereto
the Company and such issuer shall have executed and delivered to the Rights
Agent a supplemental agreement confirming that such Principal Party shall, upon
consummation of such Section 13 Event, assume this Agreement in accordance with
Sections 13(a) and 13(b) hereof, that all rights of first refusal or preemptive
rights in respect of the issuance of Common Shares of such Principal Party upon
exercise of outstanding Rights have been waived, that there are no rights,
warrants, instruments or securities outstanding or any agreements or
arrangements which, as a result of the consummation of such transaction, would
eliminate or substantially diminish the benefits intended to be afforded by the
Rights and that such transaction shall not result in a default by such Principal
Party under this Agreement, and further providing that, as soon as practicable
after the date of such Section 13 Event, such Principal Party will:

                        (i) prepare and file a registration statement under the
Securities Act with respect to the Rights and the securities purchasable upon
exercise of the Rights on an appropriate form, use its best efforts to cause
such registration statement to become effective as soon as practicable after
such filing and use its best efforts to cause such registration statement to
remain effective (with a prospectus at all times meeting the requirements of the
Securities Act) until the Expiration Date, and similarly comply with applicable
state securities laws;

                        (ii) use its best efforts to list (or continue the
listing of) the Rights and the securities purchasable upon exercise of the
Rights on a national securities exchange or to meet the eligibility requirements
for quotation on Nasdaq and list (or continue the listing of) the Rights and the
securities purchasable upon exercise of the Rights on Nasdaq; and

                        (iii) deliver to holders of the Rights historical
financial statements for such Principal Party which comply in all respects with
the requirements for registration on Form 10 (or any successor form) under the
Exchange Act.

        In the event that at any time after the occurrence of a Triggering Event
some or all of the Rights shall not have been exercised at the time of a
transaction described in this Section 13, the Rights which have not theretofore
been exercised shall thereafter be exercisable in the manner described in
Section 13(a) (without taking into account any prior adjustment required by
Section 11(a)(ii)).

                (d) In case the "Principal Party" for purposes of Section 13(b)
hereof has provision in any of its authorized securities or in its certificate
of incorporation or by-laws or other instrument governing its corporate affairs,
which provision would have the effect of (i) causing such Principal Party to
issue (other than to holders of Rights pursuant to Section 13 hereof), in
connection with, or as a consequence of, the consummation of a Section 13 Event,
Common Shares or Equivalent Shares of such Principal Party at less than the then
Current Per Share Market Price

                                      -24-
<PAGE>

thereof or securities exercisable for, or convertible into, Common Shares or
Equivalent Shares of such Principal Party at less than such then Current Per
Share Market Price, or (ii) providing for any special payment, tax or similar
provision in connection with the issuance of the Common Shares of such Principal
Party pursuant to the provisions of Section 13 hereof, then, in such event, the
Company hereby agrees with each holder of Rights that it 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
canceled, 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.

                (e) The Company covenants and agrees that it shall not, at any
time after the Distribution Date, effect or permit to occur any Section 13
Event, if (i) at the time or immediately after such Section 13 Event 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, (ii) prior to,
simultaneously with or immediately after such Section 13 Event, the stockholders
of the Person who constitutes, or would constitute, the "Principal Party" for
purposes of Section 13(b) hereof shall have received a distribution of Rights
previously owned by such Person or any of its Affiliates or Associates or (iii)
the form or nature of organization of the Principal Party would preclude or
limit the exercisability of the Rights.

                (f) The provisions of this Section 13 shall similarly apply to
successive mergers or consolidations or sales or other transfers.

        Section 14. Fractional Rights and Fractional Shares.

                (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 market value of a whole Right. For the purposes of this Section 14(a),
the current market value of a whole Right shall be the closing price of the
Rights for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable, as determined pursuant to
the second sentence of Section 1(j) hereof.

                (b) The Company shall not be required to issue fractions of
Preferred Shares (other than fractions that are integral multiples of one
one-thousandth of a Preferred Share) upon exercise of the Rights or to
distribute certificates which evidence fractional Preferred Shares (other than
fractions that are integral multiples of one one-thousandth of a Preferred
Share). Interests in fractions of Preferred Shares in integral multiples of one
one-thousandth of a Preferred Share may, at the election of the Company, be
evidenced by depository receipts, pursuant to an appropriate agreement between
the Company and a depository selected by it; provided, that such agreement shall
provide that the holders of such depository receipts shall have all the rights,
privileges and preferences to which they are entitled as beneficial owners of
the Preferred Shares represented by such depository receipts. In lieu of
fractional Preferred Shares that are not integral multiples of one

                                      -25-
<PAGE>

one-thousandth of a Preferred Share, 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 market
value of a Preferred Share. For purposes of this Section 14(b), the current
market value of a Preferred Share shall be (x) one thousand multiplied by (y)
the closing price of a Common Share (as determined pursuant to the second
sentence of Section 1(j) hereof) for the Trading Day immediately prior to the
date of such exercise.

                (c) The Company shall not be required to issue fractions of
Common Shares or to distribute certificates which evidence fractional Common
Shares upon the exercise or exchange of Rights. In lieu of such fractional
Common Shares, 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 market value of a Common
Share. For purposes of this Section 14(c), the current market value of a Common
Share shall be the closing price of a Common Share (as determined pursuant to
the second sentence of Section 1(j) hereof) for the Trading Day immediately
prior to the date of such exercise.

                (d) The holder of a Right by the acceptance of the Right
expressly waives his or her right to receive any fractional Rights or any
fractional shares (other than fractions that are integral multiples of one
one-thousandth of a Preferred Share) upon exercise of a Right.

        Section 15. Rights of Action. All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights Agent pursuant to
Section 18 hereof, are vested in the respective registered holders of the Rights
Certificates (and, prior to the Distribution Date, the registered holders of the
Common Shares); and any registered holder of any Rights Certificate (or, prior
to the Distribution Date, of the Common Shares), without the consent of the
Rights Agent or of the holder of any other Rights Certificate (or, prior to the
Distribution Date, of the Common Shares), may, in his or her own behalf and for
his or her own benefit, enforce, and may institute and maintain any suit, action
or proceeding against the Company to enforce, or otherwise act in respect of,
his or her right to exercise the Rights evidenced by such Rights Certificate 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 under, and injunctive relief against actual or
threatened violations of, the obligations of any Person subject to this
Agreement.

        Section 16. Agreement of Rights Holders. 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:

                (a) prior to the Distribution Date, the Rights will be
transferable only in connection with the transfer of the Common Shares;

                (b) after the Distribution Date, the Rights Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the principal office or offices of the Rights

                                      -26-
<PAGE>

Agent designated for such purposes, duly endorsed or accompanied by a proper
instrument of transfer and with the appropriate forms and certificates fully
executed; and

                (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 Shares
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 Shares 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.

        Section 17. Rights Certificate Holder Not Deemed a Stockholder. No
holder, as such, of any Rights Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose to be the holder of the Preferred Shares
or any other securities of the Company which may at any time be issuable on the
exercise of the Rights represented thereby, nor shall anything contained herein
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 specifically 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 the provisions hereof.

        Section 18. Concerning the Rights Agent.

                (a) The Company agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to time,
on demand of the Rights Agent, its reasonable expenses and counsel fees and
other disbursements incurred in the administration and execution 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, liability or expense, incurred without gross negligence, bad faith or
willful misconduct on the part of the Rights Agent, for anything done or omitted
by the Rights Agent in connection with the acceptance and administration of this
Agreement, including the costs and expenses of defending against any claim of
liability in the premises. In no event will the Rights Agent be liable for
special, indirect, incidental or consequential loss or damage of any kind
whatsoever, even if the Rights Agent has been advised of the possibility of such
loss or damage.

                (b) The Rights Agent 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 in reliance upon any
Rights Certificate or certificate for the Preferred Shares or Common Shares 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 reasonably 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 hereof.

                                      -27-
<PAGE>

        Section 19. Merger or Consolidation or Change of Name of Rights Agent.

                (a) Any corporation into which the Rights Agent or any successor
Rights Agent may be merged or with which it may be consolidated, or any
corporation resulting from any merger or consolidation to which the Rights Agent
or any successor Rights Agent shall be a party, or any corporation succeeding to
the 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; provided, however, that such corporation would 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.

                (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.

        Section 20. Duties of Rights Agent. The Rights Agent undertakes the
duties and obligations imposed by this Agreement upon the following terms and
conditions, by all of which the Company and the holders of Rights Certificates,
by their acceptance thereof, shall be bound:

                (a) The Rights Agent may consult with legal counsel (who may be
legal counsel for the Company), and the opinion of such counsel shall be full
and complete authorization and protection to the Rights Agent as to any action
taken or omitted by it in good faith and in accordance with such opinion.

                (b) Whenever in the performance of its duties under this
Agreement the Rights Agent shall deem it necessary or desirable that any fact or
matter (including, without limitation, the identity of any Acquiring Person and
the determination of Current Per Share Market Price) be proved or established by
the Company prior to taking or suffering 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 one of the Chairman of the Board, the Chief Executive
Officer, the President, any Vice President, the Chief Financial Officer, the
Secretary or any Assistant Secretary of the Company and delivered to the Rights
Agent; and such certificate shall be full authorization to the Rights Agent for
any action taken or suffered in good faith by it under the provisions of this
Agreement in reliance upon such certificate.

                                      -28-
<PAGE>

                (c) The Rights Agent shall be liable hereunder to the Company
and any other Person only for its own gross negligence, bad faith or willful
misconduct.

                (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.

                (e) The Rights Agent shall not be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the
validity or execution of any Rights Certificate (except its countersignature
thereof); nor shall it be 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
or any adjustment in the terms of the Rights (including the manner, method or
amount thereof) provided for in Sections 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 by the Rights Agent of a certificate furnished
pursuant to Section 12 describing such change or adjustment); nor shall it by
any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any Preferred Shares to be issued pursuant to
this Agreement or any Rights Certificate or as to whether any Preferred Shares
will, when issued, be validly authorized and issued, fully paid and
nonassessable.

                (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.

                (g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from any
one of the Chairman of the Board, the Chief Executive Officer, the President,
any Vice President, the Chief Financial Officer, the Secretary or any Assistant
Secretary of the Company, and to apply to such officers for advice or
instructions in connection with its duties, and it shall not be liable for any
action taken or suffered by it in good faith in accordance with instructions of
any such officer or for any delay in acting while waiting for those
instructions. 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 or omitted by the Rights Agent under this Rights
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 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 (5) Business Days after the
date on which any officer of the Company actually receives 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

                                      -29-
<PAGE>

received written instructions in response to such application specifying the
action to be taken or omitted.

                (h) The Rights Agent and any stockholder, 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 from acting
in any other capacity for the Company or for any other legal entity.

                (i) The Rights Agent may execute and exercise any of the rights
or powers hereby vested in it or perform any duty hereunder either itself or by
or through its attorneys or agents, and the Rights Agent shall not be answerable
or accountable for any act, default, neglect or misconduct of any such attorneys
or agents or for any loss to the Company resulting from any such act, default,
neglect or misconduct, provided reasonable care was exercised in the selection
and continued employment thereof.

                (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 there shall be reasonable grounds for believing that repayment of such
funds or adequate indemnification against such risk or liability is not
reasonably assured to it.

                (k) If, with respect to any Rights Certificate surrendered to
the Rights Agent for exercise or transfer, the certificate attached to the form
of assignment or form of election to purchase, as the case may be, has either
not been completed or indicates an affirmative response to clause 1 and/or 2
thereof, the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company.

        Section 21. Change of Rights Agent. The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Agreement
upon thirty (30) days' notice in writing mailed to the Company and to each
transfer agent of the Preferred Shares and the Common Shares by registered or
certified mail, and 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 (30) days' notice in writing, mailed to the Rights Agent or successor
Rights Agent, as the case may be, and to each transfer agent of the Preferred
Shares and the Common Shares 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 (30) 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 his or her 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

                                      -30-
<PAGE>

the United States or of any state of the United States, in good standing, which
is authorized under such laws to exercise corporate trust or stockholder
services powers and is 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 $100 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 Preferred Shares and the Common Shares, and mail
a notice thereof in writing to the registered holders of the Rights
Certificates. 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.

        Section 22. Issuance of New Rights Certificates. 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 Exercise 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 Common Shares following the Distribution Date and
prior to the redemption or expiration of the Rights, the Company (a) shall, with
respect to Common Shares so issued or sold pursuant to the exercise of stock
options or under any employee plan or arrangement or upon the exercise,
conversion or exchange of other securities of the Company outstanding at the
date hereof or upon the exercise, conversion or exchange of securities
hereinafter issued by the Company and (b) 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; provided, however, that (i) no such Rights Certificate
shall be issued and this sentence shall be null and void ab initio 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' or employee plans' or arrangements' failing
to qualify for otherwise available special tax treatment and (ii) 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.

        Section 23. Redemption.

                (a) The Company may, at its option and with the approval of the
Board of Directors, at any time prior to the Close of Business on the earlier of
(i) the fifth day following the Shares Acquisition Date (or such later date as
may be determined by action of the Company's Board of Directors and publicly
announced by the Company) and (ii) the Final Expiration Date, redeem all but not
less than all the then outstanding Rights at a redemption price of $0.001 per
Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after

                                      -31-
<PAGE>

the date hereof (such redemption price being herein referred to as the
"REDEMPTION PRICE") and the Company may, at its option, pay the Redemption Price
either in Common Shares (based on the Current Per Share Market Price thereof at
the time of redemption) or cash. Such redemption of the Rights by the Company
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. The date on which
the Board of Directors elects to make the redemption effective shall be referred
to as the "REDEMPTION DATE."

                (b) Immediately upon the action of the Board of Directors of the
Company ordering the redemption of the Rights, evidence of which shall have been
filed with the Rights Agent, 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; provided,
however, that the failure to give, or any defect in, any such notice shall not
affect the validity of such redemption. Within ten (10) days after the action of
the Board of Directors ordering the redemption of the Rights, the Company shall
give notice of such redemption to the Rights Agent and the holders of the then
outstanding Rights by mailing such notice to all such holders 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 Shares. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. Each such 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, and
other than in connection with the purchase of Common Shares prior to the
Distribution Date.

        Section 24. Exchange.

                (a) Subject to applicable laws, rules and regulations, and
subject to subsection 24(c) below, the Company may, at its option, by action of
the Board of Directors, at any time after the occurrence of a Triggering Event,
exchange all or part of the then outstanding and exercisable Rights (which shall
not include Rights that have become void pursuant to the provisions of Section
7(e) hereof) for Common Shares at an exchange ratio of one Common Share per
Right, appropriately adjusted to reflect any stock split, stock dividend or
similar transaction occurring after the date hereof (such exchange ratio being
hereinafter referred to as the "EXCHANGE RATIO"). Notwithstanding the foregoing,
the Board of Directors shall not be empowered to effect such exchange at any
time after any Person (other than the Company, any Subsidiary of the Company,
any employee benefit plan of the Company or any such Subsidiary, or any entity
holding Common Shares for or pursuant to the terms of any such plan), together
with all Affiliates and Associates of such Person, becomes the Beneficial Owner
of 50% or more of the Common Shares then outstanding.

                (b) Immediately upon the action of the Board of Directors
ordering the exchange of any Rights pursuant to subsection 24(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

                                      -32-
<PAGE>

holder of such Rights shall be to receive that number of Common Shares equal to
the number of such Rights held by such holder multiplied by the Exchange Ratio.
The Company shall give public notice of any such exchange; provided, however,
that the failure to give, or any defect in, such notice shall not affect the
validity of such exchange. The Company 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
herein provided 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 the Common Shares 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 based on the number of Rights (other than
Rights which have become void pursuant to the provisions of Section 7(e) hereof)
held by each holder of Rights.

                (c) In the event that there shall not be sufficient Common
Shares issued but not outstanding or authorized but unissued to permit any
exchange of Rights as contemplated in accordance with Section 24(a), the Company
shall either take such action as may be necessary to authorize additional Common
Shares for issuance upon exchange of the Rights or alternatively, at the option
of a majority of the Board of Directors, with respect to each Right (i) pay cash
in an amount equal to the Current Value (as hereinafter defined), in lieu of
issuing Common Shares in exchange therefor, or (ii) issue debt or equity
securities or a combination thereof, having a value equal to the Current Value,
in lieu of issuing Common Shares in exchange for each such Right, where the
value of such securities shall be determined by a nationally recognized
investment banking firm selected by majority vote of the Board of Directors, or
(iii) deliver any combination of cash, property, Common Shares and/or other
securities having a value equal to the Current Value in exchange for each Right.
For purposes of this Section 24(c) only, the Current Value shall mean the
product of the Current Per Share Market Price of Common Shares on the date of
the occurrence of the event described above in subparagraph (a), multiplied by
the number of Common Shares for which the Right otherwise would be exchangeable
if there were sufficient shares available. To the extent that the Company
determines that some action need be taken pursuant to clauses (i), (ii) or (iii)
of this Section 24(c), the Board of Directors may temporarily suspend the
exercisability of the Rights for a period of up to sixty (60) days following the
date on which the event described in Section 24(a) shall have occurred, in order
to seek any authorization of additional Common Shares and/or to decide the
appropriate form of distribution to be made pursuant to the above provision and
to determine the value thereof. In the event of any such suspension, the Company
shall issue a public announcement stating that the exercisability of the Rights
has been temporarily suspended.

                (d) The Company shall not be required to issue fractions of
Common Shares or to distribute certificates which evidence fractional Common
Shares. In lieu of such fractional Common Shares, there shall be paid to the
registered holders of the Rights Certificates with regard to which such
fractional Common Shares would otherwise be issuable, an amount in cash equal to
the same fraction of the current market value of a whole Common Share (as
determined pursuant to the second sentence of Section 1(j) hereof).

                (e) The Company may, at its option, by majority vote of the
Board of Directors, at any time before any Person has become an Acquiring
Person, exchange all or part of the then

                                      -33-
<PAGE>

outstanding Rights for rights of substantially equivalent value, as determined
reasonably and with good faith by the Board of Directors based upon the advice
of one or more nationally recognized investment banking firms.

                (f) Immediately upon the action of the Board of Directors
ordering the exchange of any Rights pursuant to subsection 24(e) 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 rights in exchange therefor as has
been determined by the Board of Directors in accordance with subsection 24(e)
above. The Company shall give public notice of any such exchange; provided,
however, that the failure to give, or any defect in, such notice shall not
affect the validity of such exchange. The Company 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 transfer agent for the Common Shares
of the Company. Any notice which is mailed in the manner herein provided 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 the Rights will be
effected.

        Section 25. Notice of Certain Events.

                (a) In case the Company shall propose to effect or permit to
occur any Triggering Event or Section 13 Event, the Company shall give notice
thereof to each holder of Rights in accordance with Section 26 hereof at least
twenty (20) days prior to occurrence of such Triggering Event or such Section 13
Event.(b) In case any Triggering Event or Section 13 Event shall occur, then, in
any such case, 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 shall specify the event and the
consequences of the event to holders of Rights under Sections 11(a)(ii) and 13
hereof.

        Section 26. Notices. 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) as follows:

                       Third Wave Technologies, Inc.
                       502 South Rosa Road
                       Madison, Wisconsin 53719

                       with a copy to:

                       Wilson Sonsini Goodrich & Rosati
                       Professional Corporation
                       650 Page Mill Road
                       Palo Alto, California 94304-1050
                       Attention: Christopher D. Mitchell

                                      -34-
<PAGE>

        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 with the Company) as follows:

                             EquiServe Trust Company N.A.
                             One North State Street
                             11th Floor
                             Chicago, Illinois 60602
                             Attention: Diane Calcagno

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.

        Section 27. Supplements and Amendments. Prior to the occurrence of a
Distribution Date, the Company may supplement or amend this Agreement in any
respect without the approval of any holders of Rights and the Rights Agent
shall, if the Company so directs, execute such supplement or amendment. From and
after the occurrence of a Distribution Date, the Company and the Rights Agent
may from time to time supplement or amend this Agreement without the approval of
any holders of Rights in order to (i) cure any ambiguity, (ii) correct or
supplement any provision contained herein which may be defective or inconsistent
with any other provisions herein, (iii) shorten or lengthen any time period
hereunder or (iv) to change or supplement the provisions hereunder in any manner
that the Company may deem necessary or desirable and that shall not adversely
affect the interests of the holders of Rights (other than an Acquiring Person or
an Affiliate or Associate of an Acquiring Person); provided, this Agreement may
not be supplemented or amended to lengthen, pursuant to clause (iii) of this
sentence, (A) a time period relating to when the Rights may be redeemed at such
time as the Rights are not then redeemable or (B) any other time period unless
such lengthening is for the purpose of protecting, enhancing or clarifying the
rights of, and/or the benefits to, the holders of Rights (other than an
Acquiring Person or an Affiliate or Associate of an Acquiring Person). Upon the
delivery of a certificate from an appropriate officer of the Company that states
that the proposed supplement or amendment is in compliance with the terms of
this Section 27, the Rights Agent shall execute such supplement or amendment.
Prior to the Distribution Date, the interests of the holders of Rights shall be
deemed coincident with the interests of the holders of Common Shares.

        Section 28. Successors. 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.

        Section 29. Determinations and Actions by the Board of Directors, etc.
For all purposes of this Agreement, any calculation of the number of Common
Shares outstanding at any particular time, including for purposes of determining
the particular percentage of such outstanding Common Shares

                                      -35-
<PAGE>

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 General Rules and Regulations
under the Exchange Act. 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, or the Company, or as may
be necessary or advisable in the administration of this Agreement, including,
without limitation, the right and power (i) to interpret the provisions of this
Agreement and (ii) to make all determinations 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
in good faith, shall (x) be final, conclusive and binding on the Company, the
Rights Agent, the holders of the Rights Certificates and all other parties and
(y) not subject the Board to any liability to the holders of the Rights.

        Section 30. Benefits of this Agreement. 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, the Common Shares) any legal or equitable right, remedy or
claim pursuant to 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, the Common
Shares).

        Section 31. Severability. 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;
provided, however, 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, the right of redemption set forth in Section 23 hereof
shall be reinstated and shall not expire until the Close of Business on the
tenth day following the date of such determination by the Board of Directors.

        Section 32. Governing Law. This Agreement and each Right 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 laws of such State applicable to contracts to
be made and performed entirely within such State.

        Section 33. Counterparts. 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 but one
and the same instrument.

        Section 34. Descriptive Headings. Descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

                                      -36-
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.

"COMPANY"                                   THIRD WAVE TECHNOLOGIES, INC.

                                            By:    /s/ Lance Fors
                                               ---------------------------------

                                            Name:  Lance Fors
                                                 -------------------------------

                                            Title: Chief Executive Officer
                                                  ------------------------------

"RIGHTS AGENT"                              EQUISERVE TRUST COMPANY N.A.

                                            By:    /s/ Collin Ekeogu
                                               ---------------------------------

                                            Name:  Collin Ekeogu
                                                 -------------------------------

                                            Title: Director
                                                  ------------------------------

                                      -37-
<PAGE>

                                    EXHIBIT A

               CERTIFICATE OF DESIGNATIONS OF RIGHTS, PREFERENCES

                                AND PRIVILEGES OF

                     SERIES A PARTICIPATING PREFERRED STOCK

                        OF THIRD WAVE TECHNOLOGIES, INC.

        The undersigned, Lance Fors and John Comerford do hereby certify:

        1. That they are the duly elected and acting President and Secretary,
respectively, of Third Wave Technologies, Inc., a Delaware corporation (the
"CORPORATION").

        2. That pursuant to the authority conferred upon the Board of Directors
by the Certificate of Incorporation of the said Corporation, and in accordance
with Section 151(g) of the Delaware General Corporation Law, the said Board of
Directors on October 24, 2001 adopted the following resolution creating a series
of 100,000 shares of Preferred Stock designated as Series A Participating
Preferred Stock:

                NOW, THEREFORE, BE IT RESOLVED: That pursuant to the authority
                vested in the Board of Directors of the corporation by the
                Certificate of Incorporation, the Board of Directors does hereby
                provide for the issue of a series of Preferred Stock of the
                Corporation and does hereby fix and herein state and express the
                designations, powers, preferences and relative and other special
                rights and the qualifications, limitations and restrictions of
                such series of Preferred Stock as follows:

                Section 1. Designation and Amount. The shares of such series
                shall be designated as "Series A Participating Preferred Stock."
                The Series A Participating Preferred Stock shall have a par
                value of $0.001 per share, and the number of shares constituting
                such series shall be 100,000.

                Section 2. Proportional Adjustment. In the event that the
                Corporation shall at any time after the issuance of any share or
                shares of Series A Participating Preferred Stock (i) declare any
                dividend on Common Stock of the Corporation ("Common Stock")
                payable in shares of Common Stock, (ii) subdivide the
                outstanding Common Stock or (iii) combine the outstanding Common
                Stock into a smaller number of shares, then in each such case
                the Corporation shall simultaneously effect a proportional
                adjustment to the number of outstanding shares of Series A
                Participating Preferred Stock.

<PAGE>

                Section 3 Dividends and Distributions.

                (a) Subject to the prior and superior right of the holders of
                any shares of any series of Preferred Stock ranking prior and
                superior to the shares of Series A Participating Preferred Stock
                with respect to dividends, the holders of shares of Series A
                Participating Preferred Stock shall be entitled to receive when,
                as and if declared by the Board of Directors out of funds
                legally available for the purpose, quarterly dividends payable
                in cash on the last day of February, May, August and November in
                each year (each such date being referred to herein as a
                "Quarterly Dividend Payment Date"), commencing on the first
                Quarterly Dividend Payment Date after the first issuance of a
                share or fraction of a share of Series A Participating Preferred
                Stock, in an amount per share (rounded to the nearest cent)
                equal to 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
                since the immediately preceding Quarterly Dividend Payment Date,
                or, with respect to the first Quarterly Dividend Payment Date,
                since the first issuance of any share or fraction of a share of
                Series A Participating Preferred Stock.

                (b) The Corporation shall declare a dividend or distribution on
                the Series A Participating Preferred Stock as provided in
                paragraph (a) above immediately after it declares a dividend or
                distribution on the Common Stock (other than a dividend payable
                in shares of Common Stock).

                (c) Dividends shall begin to accrue on outstanding shares of
                Series A Participating Preferred Stock from the Quarterly
                Dividend Payment Date next preceding the date of issue of such
                shares of Series A Participating Preferred Stock, unless the
                date of issue of such shares is prior to the record date for the
                first Quarterly Dividend Payment Date, in which case dividends
                on such shares shall begin to accrue from the date of issue of
                such shares, or unless the date of issue is a Quarterly Dividend
                Payment Date or is a date after the record date for the
                determination of holders of shares of Series A Participating
                Preferred Stock entitled to receive a quarterly dividend and
                before such Quarterly Dividend Payment Date, in either of which
                events such dividends shall begin to accrue from such Quarterly
                Dividend Payment Date. Accrued but unpaid dividends shall not
                bear interest. Dividends paid on the shares of Series A
                Participating 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.

                                      -2-
<PAGE>

                The Board of Directors may fix a record date for the
                determination of holders of shares of Series A Participating
                Preferred Stock entitled to receive payment of a dividend or
                distribution declared thereon, which record date shall be no
                more than 30 days prior to the date fixed for the payment
                thereof.

                Section 4. Voting Rights. The holders of shares of Series A
                Participating Preferred Stock shall have the following voting
                rights:

                (a) Each share of Series A Participating Preferred Stock shall
                entitle the holder thereof to 1,000 votes on all matters
                submitted to a vote of the stockholders of the Corporation.

                (b) Except as otherwise provided herein or by law, the holders
                of shares of Series A Participating Preferred Stock and the
                holders of shares of Common Stock shall vote together as one
                class on all matters submitted to a vote of stockholders of the
                Corporation.

                (c) Except as required by law, the holders of Series A
                Participating Preferred Stock shall have no special voting
                rights and their consent shall not be required (except to the
                extent that they are entitled to vote with holders of Common
                Stock as set forth herein) for taking any corporate action.

                Section 5. Certain Restrictions.

                (a) The Corporation shall not declare any dividend on, make any
                distribution on, or redeem or purchase or otherwise acquire for
                consideration any shares of Common Stock after the first
                issuance of a share or fraction of a share of Series A
                Participating Preferred Stock unless concurrently therewith it
                shall declare a dividend on the Series A Participating Preferred
                Stock as required by Section 3 hereof.

                (b) Whenever quarterly dividends or other dividends or
                distributions payable on the Series A Participating Preferred
                Stock as provided in Section 3 are in arrears, thereafter and
                until all accrued and unpaid dividends and distributions,
                whether or not declared, on shares of Series A Participating
                Preferred Stock outstanding shall have been paid in full, the
                Corporation shall not

                        (i) declare or pay dividends on, make any other
                distributions on, or redeem or purchase or otherwise acquire for
                consideration any shares of stock ranking junior (either as to
                dividends or upon liquidation, dissolution or winding up) to the
                Series A Participating Preferred Stock;

                                      -3-
<PAGE>

                        (ii) declare or pay dividends on, 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 A Participating Preferred Stock, except
                dividends paid ratably on the Series A Participating 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;

                        (iii) redeem or purchase or otherwise acquire for
                consideration shares of any stock ranking on a parity (either as
                to dividends or upon liquidation, dissolution or winding up)
                with the Series A Participating Preferred Stock, provided that
                the Corporation may at any time redeem, purchase or otherwise
                acquire shares of any such parity 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 A Participating Preferred Stock;

                        (iv) purchase or otherwise acquire for consideration any
                shares of Series A Participating Preferred Stock, or any shares
                of stock ranking on a parity with the Series A Participating
                Preferred Stock, except in accordance with a purchase offer made
                in writing or by publication (as determined by the Board of
                Directors) to all holders of such shares upon such terms as the
                Board of Directors, after consideration of the respective annual
                dividend rates and other relative rights and preferences of the
                respective Series A classes, shall determine in good faith will
                result in fair and equitable treatment among the respective
                series or classes.

                (c) 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 this Section 5, purchase or otherwise acquire such
                shares at such time and in such manner.

                Section 6. Reacquired Shares. Any shares of Series A
                Participating Preferred Stock purchased or otherwise acquired by
                the Corporation in any manner whatsoever shall be retired and
                canceled 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 to be created by resolution or
                resolutions of the Board of Directors, subject to the conditions
                and restrictions on issuance set forth herein and in the
                Restated Certificate of Incorporation, as then amended.

                Section 7. Liquidation, Dissolution or Winding Up. Upon any
                liquidation, dissolution or winding up of the Corporation, the
                holders of shares of Series A Participating Preferred Stock
                shall be entitled to receive

                                      -4-
<PAGE>

                an aggregate amount per share equal to 1,000 times the aggregate
                amount to be distributed per share to holders of shares of
                Common Stock plus an amount equal to any accrued and unpaid
                dividends on such shares of Series A Participating Preferred
                Stock.

                Section 8. Consolidation, Merger, etc. 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 changed into other stock or securities, cash and/or any
                other property, then in any such case the shares of Series A
                Participating Preferred Stock shall at the same time be
                similarly exchanged or changed in an amount per share 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 changed or
                exchanged.

                Section 9. No Redemption. The shares of Series A Participating
                Preferred Stock shall not be redeemable.

                Section 10 Ranking. The Series A Participating Preferred Stock
                shall rank junior to all other series of the Corporation's
                Preferred Stock as to the payment of dividends and the
                distribution of assets, unless the terms of any such series
                shall provide otherwise.

                Section 11 Amendment. The Restated Certificate of Incorporation
                of the Corporation shall not be further amended in any manner
                which would materially alter or change the powers, preference or
                special rights of the Series A Participating Preferred Stock so
                as to affect them adversely without the affirmative vote of the
                holders of a majority of the outstanding shares of Series A
                Participating Preferred Stock, voting separately as a series.

                Section 12 Fractional Shares. Series A Participating Preferred
                Stock may be issued in fractions of a share which shall entitle
                the holder, in proportion to such holder's fractional shares, to
                exercise voting rights, receive dividends, participate in
                distributions and to have the benefit of all other rights of
                holders of Series A Participating Preferred Stock."

                                      -5-
<PAGE>

        We further declare under penalty of perjury that the matters set forth
in the foregoing Certificate of Designation are true and correct of our own
knowledge.

        Executed at Madison on_______________ ______, 2001.

                                            ------------------------------------
                                            President

                                            ------------------------------------
                                            Secretary

                                      -6-
<PAGE>

                                    EXHIBIT B

                           FORM OF RIGHTS CERTIFICATE

Certificate No. R-                                              _________ Rights

        NOT EXERCISABLE AFTER THE EARLIER OF (i) DECEMBER 20, 2011, (ii) THE
        DATE TERMINATED BY THE COMPANY OR (iii) THE DATE THE COMPANY EXCHANGES
        THE RIGHTS PURSUANT TO THE RIGHTS AGREEMENT. THE RIGHTS ARE SUBJECT TO
        REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.001 PER RIGHT 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 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 SECTION 7(e) OF SUCH RIGHTS
        AGREEMENT.](1)

                               RIGHTS CERTIFICATE

                          THIRD WAVE TECHNOLOGIES, INC.

        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 October 24, 2001, (the "RIGHTS
AGREEMENT"), between Third Wave Technologies, Inc., a Delaware corporation (the
"COMPANY"), and EquiServe Trust Company N.A. (the "RIGHTS AGENT"), 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 P.M., New York time, on
December 20, 2011 at the office of the Rights Agent

--------

(1) The portion of the legend in bracket shall be inserted only if applicable
and shall replace the preceding sentence.

<PAGE>

designated for such purpose, or at the office of its successor as Rights Agent,
one one-thousandth (1/1,000) of a fully paid and non-assessable share of Series
A Participating Preferred Stock, par value $0.001 per share (the "PREFERRED
SHARES"), of the Company, at an Exercise Price of Sixty Dollars ($60.00) per
one-thousandth of a Preferred Share (the "EXERCISE PRICE"), upon presentation
and surrender of this Rights Certificate with the Form of Election to Purchase
and related Certificate duly executed. The number of Rights evidenced by this
Rights Certificate (and the number of one-thousandths of a Preferred Share which
may be purchased upon exercise hereof) set forth above are the number and
Exercise Price as of December 20, 2001 based on the Preferred Shares as
constituted at such date. As provided in the Rights Agreement, the Exercise
Price and the number and kind of Preferred Shares or other securities 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.

                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,
which limitations of rights include the temporary suspension of the
exercisability of such Rights under the specific circumstances set forth in the
Rights Agreement. Copies of the Rights Agreement are on file at the principal
executive offices of the Company and the above-mentioned office of the Rights
Agent.

                Subject to the provisions of the Rights Agreement, the Rights
evidenced by this Rights Certificate (i) may be redeemed by the Company, at its
option, at a redemption price of $0.001 per Right or (ii) may be exchanged by
the Company in whole or in part for Common Shares, substantially equivalent
rights or other consideration as determined by the Company.

                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 amount of securities 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.

                No fractional portion of less than one one-thousandth of a
Preferred Share will be issued upon the exercise of any Right or Rights
evidenced hereby but in lieu thereof a cash payment will be made, as provided in
the Rights Agreement.

                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 the
Preferred Shares 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

                                      -2-
<PAGE>

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 Right or
Rights evidenced by this Rights Certificate shall have been exercised as
provided in the Rights Agreement.

        This Rights Certificate shall not be valid or obligatory for any purpose
until it shall have been countersigned by the Rights Agent.

        WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal. Dated as of _______________, _____.

ATTEST:                                     THIRD WAVE TECHNOLOGIES, INC.

                                            By:
----------------------------------             ---------------------------------
Secretary

                                            Its:
                                                --------------------------------

Countersigned:

EquiServe Trust Company N.A.
as Rights Agent

By:
   -------------------------------

Its:
    ------------------------------

                                      -3-
<PAGE>

                   FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE

                               FORM OF ASSIGNMENT

                (To be executed by the registered holder if such
               holder desires to transfer the Rights Certificate)

        FOR VALUE RECEIVED ___________ hereby sells, assigns and transfers unto
________________________________________________________________________________
                 (Please print name and address of transferee)
________________________________________________________________________________
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.

Dated: _______________, ____

                                            ------------------------------------
                                            Signature

Signature Medallion Guaranteed:

        Signatures must be medallion guaranteed by a member firm of a registered
national securities exchange, a member of the National Association of Securities
Dealers, Inc., or a commercial bank or trust company having an office or
correspondent in the United States.

<PAGE>

                                   CERTIFICATE

        The undersigned hereby certifies by checking the appropriate boxes that:

                (1) this Rights Certificate [ ] is [ ] is not being sold,
assigned and transferred by or on behalf of a Person who is or was an Acquiring
Person, or an Affiliate or Associate of any such Person (as such terms are
defined in the Rights Agreement);

                (2) after due inquiry and to the best knowledge of the
undersigned, it [ ] did [ ] did not acquire the Rights evidenced by this Rights
Certificate from any Person who is, was or subsequently became an Acquiring
Person or an Affiliate or Associate of any such Person.

Dated: _______________, ____

                                            ------------------------------------
                                            Signature

Signature Medallion Guaranteed:

        Signatures must be medallion guaranteed by a member firm of a registered
national securities exchange, a member of the National Association of Securities
Dealers, Inc., or a commercial bank or trust company having an office or
correspondent in the United States.

<PAGE>

             FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE -- CONTINUED

                          FORM OF ELECTION TO PURCHASE

                      (To be executed if holder desires to
                        exercise the Rights Certificate)

To:___________________________

                The undersigned hereby irrevocably elects to exercise
_________________________ Rights represented by this Rights Certificate to
purchase the number of one-thousandths of a Preferred Share issuable upon the
exercise of such Rights and requests that certificates for such number of
one-thousandths of a Preferred Share issued in the name of:

Please insert social security
or other identifying number

________________________________________________________________________________
                         (Please print name and address)
________________________________________________________________________________

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:

Please insert social security
or other identifying number

________________________________________________________________________________
                         (Please print name and address)
________________________________________________________________________________

Dated: _______________, ____

                                            ------------------------------------
                                            Signature

Signature Medallion Guaranteed:

        Signatures must be medallion guaranteed by a member firm of a registered
national securities exchange, a member of the National Association of Securities
Dealers, Inc., or a commercial bank or trust company having an office or
correspondent in the United States.

<PAGE>

                                   CERTIFICATE

        The undersigned hereby certifies by checking the appropriate boxes that:

        (1) the Rights evidenced by this Rights Certificate [ ] are [ ] are not
being exercised by or on behalf of a Person who is or was an Acquiring Person or
an Affiliate or Associate of any such Person (as such terms are defined in the
Rights Agreement);

        (2) after due inquiry and to the best knowledge of the undersigned, it
[ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from
any Person who is, was or subsequently became an Acquiring Person or an
Affiliate or Associate of any such Person.

Dated: _______________, ____

                                            ------------------------------------
                                            Signature

Signature Medallion Guaranteed:

        Signatures must be medallion guaranteed by a member firm of a registered
national securities exchange, a member of the National Association of Securities
Dealers, Inc., or a commercial bank or trust company having an office or
correspondent in the United States.

<PAGE>

             FORM OF REVERSE SIDE OF RIGHTS CERTIFICATE -- CONTINUED

                                     NOTICE

        The signature in the foregoing Forms of Assignment and Election 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.

<PAGE>

                                    EXHIBIT C

                             STOCKHOLDER RIGHTS PLAN

                          THIRD WAVE TECHNOLOGIES, INC.

                                SUMMARY OF RIGHTS

DISTRIBUTION AND TRANSFER OF RIGHTS;    The Board of Directors has declared a
RIGHTS CERTIFICATE:                     dividend of one Right for each share of
                                        Third Wave Technologies, Inc. Common
                                        Stock outstanding. Prior to the
                                        Distribution Date referred to below, the
                                        Rights will be evidenced by and trade
                                        with the certificates for the Common
                                        Stock. After the Distribution Date,
                                        Third Wave Technologies, Inc. (the
                                        "Company") will mail Rights certificates
                                        to the Company's stockholders and the
                                        Rights will become transferable apart
                                        from the Common Stock.

DISTRIBUTION DATE:                      Rights will separate from the Common
                                        Stock and become exercisable following
                                        (a) the tenth day (or such later date as
                                        may be determined by a majority of the
                                        Directors) after a person or group
                                        acquires beneficial ownership of 15% or
                                        more of the Company's Common Stock or
                                        (b) the tenth business day (or such
                                        later date as may be determined by a
                                        majority of the Directors) after a
                                        person or group announces a tender or
                                        exchange offer, the consummation of
                                        which would result in ownership by a
                                        person or group of 15% or more of the
                                        Company's Common Stock.

PREFERRED STOCK PURCHASABLE UPON        After the Distribution Date, each Right
EXERCISE OF RIGHTS:                     will entitle the holder to purchase for
                                        $60.00 (the "Exercise Price"), a
                                        fraction of a share of the Company's
                                        Preferred Stock with economic terms
                                        similar to that of one share of the
                                        Company's Common Stock.

FLIP-IN:                                If an acquiror (an "Acquiring Person")
                                        obtains 15% or more of the Company's
                                        Common Stock (other than pursuant to a
                                        tender offer deemed adequate and in the
                                        best interests of the Company and its
                                        stockholders by the Directors (a
                                        "Permitted Offer")), then each Right
                                        (other than Rights owned by an Acquiring
                                        Person or its affiliates) will entitle
                                        the holder thereof to purchase, for the
                                        Exercise Price, a number of shares of
                                        the Company's Common Stock having a then
                                        current market value of twice the
                                        exercise price.

<PAGE>

FLIP-OVER:                              If, after an Acquiring Person obtains
                                        15% or more of the Company's Common
                                        Stock, (a) the Company merges into
                                        another entity, (b) an acquiring entity
                                        merges into the Company or (c) the
                                        Company sells more than 50% of the
                                        Company's assets or earning power, then
                                        each Right (other than Rights owned by
                                        an Acquiring Person or its affiliates)
                                        will entitle the holder thereof to
                                        purchase, for the Exercise Price, a
                                        number of shares of Common Stock of the
                                        person engaging in the transaction
                                        having a then current market value of
                                        twice the Exercise Price (unless the
                                        transaction satisfies certain conditions
                                        and is consummated with a person who
                                        acquired shares pursuant to a Permitted
                                        Offer, in which case the Rights will
                                        expire).

EXCHANGE PROVISION:                     At any time after the date an Acquiring
                                        Person obtains 15% or more of the
                                        Company's Common Stock and prior to the
                                        acquisition by the Acquiring Person of
                                        50% of the outstanding Common Stock, a
                                        majority of the Board of Directors may
                                        exchange the Rights (other than Rights
                                        owned by the Acquiring Person or its
                                        affiliates), in whole or in part, for
                                        shares of Common Stock of the Company at
                                        an exchange ratio of one share of Common
                                        Stock per Right (subject to adjustment).

REDEMPTION OF THE RIGHTS:               Rights will be redeemable at the
                                        Company's option for $0.001 per Right at
                                        any time on or prior to the tenth day
                                        (or such later date as may be determined
                                        by a majority of the Directors) after
                                        public announcement that a Person has
                                        acquired beneficial ownership of 15% or
                                        more of the Company's Common Stock (the
                                        "Shares Acquisition Date").

EXPIRATION                              OF THE RIGHTS: The Rights expire on the
                                        earliest of (a) December 20, 2011, (b)
                                        exchange or redemption of the Rights as
                                        described above, or (c) consummation of
                                        a merger, consolidation or asset sale
                                        resulting in expiration of the Rights as
                                        described above.

                                      -2-
<PAGE>

AMENDMENT OF TERMS OF RIGHTS:           The terms of the Rights and the Rights
                                        Agreement may be amended in any respect
                                        without the consent of the Rights
                                        holders on or prior to the Distribution
                                        Date; thereafter, the terms of the
                                        Rights and the Rights Agreement may be
                                        amended without the consent of the
                                        Rights holders in order to cure any
                                        ambiguities or to make changes which do
                                        not adversely affect the interests of
                                        Rights holders (other than the Acquiring
                                        Person).

VOTING RIGHTS:                          Rights will not have any voting rights.

ANTI-DILUTION PROVISIONS:               Rights will have the benefit of certain
                                        customary anti-dilution provisions.

TAXES:                                  The Rights distribution should not be
                                        taxable for federal income tax purposes.
                                        However, following an event which
                                        renders the Rights exercisable or upon
                                        redemption of the Rights, stockholders
                                        may recognize taxable income.

        The foregoing is a summary of certain principal terms of the Stockholder
Rights Plan only and is qualified in its entirety by reference to the detailed
terms of the Rights Agreement dated as of October 24, between the Company and
the Rights Agent. The Rights Agreement may be amended from time to time. A copy
of the Rights Agreement was filed with the Securities and Exchange Commission as
an Exhibit to a Registration Statement on Form 8-A dated [SEC FILE DATE], 2001.
A copy of the Rights Agreement is available free of charge from the Company.

                                      -3-

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