Document:

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                                                                   Exhibit 10.30

                   AMENDED AND RESTATED SEVERANCE AGREEMENT
                   ----------------------------------------

          THIS AMENDED AND RESTATED AGREEMENT dated as of October 18, 2001 is
made by and between ViroPharma Incorporated (the "Company"), and Claude Nash
(the "Employee").

          WHEREAS, the Company and the Employee entered into that certain
Severance Agreement dated August 21, 2000, and the parties desire to amend and
restate such agreement in its entirety as et forth herein; and

          WHEREAS, the Board of Directors of the Company (the "Board")
recognizes that, as is the case with many publicly held corporations, the
possibility of a Change of Control (as defined in the last Section hereof)
exists and that such possibility, and the uncertainty and questions which it may
raise among management, may result in the departure or distraction of key
personnel to the detriment of the Company and its stockholders; and

          WHEREAS, the Board also recognizes that by continuing service with the
Company as an employee and as the Chairman of the Board, Employee has foregone
other significant opportunities and should be protected against the possibility
of his involuntary termination of employment without cause or a constructive
termination of his employment; and

          WHEREAS, the Board has determined that appropriate steps should be
taken to reinforce and encourage the continued attention and dedication of the
Company's key personnel, including the Employee, to their assigned duties
without distraction in the face of potentially disturbing circumstances arising
from the possibility of a Change of Control or other termination of employment;

          NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, this Company and the Employee hereby agree as
follows:

1.  Defined Terms.  Unless sooner defined below, the definition of capitalized
    -------------
terms used in this Agreement is provided in the last Section hereof.

2.  Payments.
    --------

    2.1   From the date hereof until August 31, 2002, the Company shall pay the
Employee a salary in the amount of $25,188 per month.  The Company shall
maintain an office for the Employee during the period that Employee continues to
serve on the Board of Directors of the Company.  From and after August 31, 2002,
the Employee may continue as an employee of the Company to perform such duties
as the President of the Company may determine from time to time, and in respect
thereof the Employee shall receive (a) such health, life, disability and
accident insurance benefits substantially similar to those which are received by
other employees of the Company and (b) a salary of $1,000 per month, provided
however that such employment beyond August 31, 2002 shall automatically convert
to an "at-will" relationship terminable at any time by either the Company or the
Employee for any reason whatsoever, with or without Cause.
<PAGE>

     2.2   Provided that Employee has signed the Release attached hereto as
Exhibit A (the "Release"), the Company shall pay the Employee the payments
described in this Section 2.2 (the "Severance Payments") upon the termination of
the Employee's employment, unless such termination is (a) by the Company for
Cause, or (b) by reason of death or Disability.  Notwithstanding the foregoing,
the Company's obligation to pay Employee the Severance Payments or to provide
any other benefit to Employee hereunder shall immediately cease (i) upon
Employee's breach of any of the provisions set forth in Section 3 below, or (ii)
if Employee revokes or attempts to revoke the Release.

           (a) Notwithstanding any provision of any short-term incentive bonus
arrangement applicable to the Employee, if any (the "Bonus Plan"), the Company
shall pay to the Employee a lump sum amount, in cash, equal to the sum of (i)
any bonus amount which has been allocated or awarded to the Employee for a
completed fiscal year or other measuring period preceding the Date of
Termination but has not yet been paid, and (ii) a pro rata portion to the Date
of Termination of the aggregate value of all contingent bonus awards to the
Employee for all uncompleted periods under the Bonus Plan calculated as to each
such award by assuming the achievement of the target performance level within
the performance range established with respect to such award and basing such
pro-rata portion upon the portion of the award period that has elapsed as of the
Date of Termination.

           (b) For the two-year period starting on the Date of Termination, the
Company shall arrange to provide the Employee with life, disability and accident
insurance benefits substantially similar to those which the Employee is
receiving immediately prior to the Notice of Termination (without giving effect
to any reduction in such benefits if such reduction constitutes Good Reason).
For the entire period beginning on the Date of Termination and ending on the
earlier of the Employee's death or the Employee's 65th birthday, Company shall
arrange to provide the Employee with health insurance benefits substantially
similar to those which the Employee is receiving immediately prior to the Notice
of Termination (without giving effect to any reduction in such benefits if such
reduction constitutes Good Reason). Benefits otherwise receivable by the
Employee pursuant to this Section 2.2(b) shall be reduced to the extent
comparable benefits are actually received by or made available to the Employee
without cost during the above-referenced period. In addition, any such benefits
actually received by the Employee shall be reported to the Company by the
Employee. Notwithstanding the foregoing, to the extent that the coverage
described in this Section 2.2(b) cannot be provided under the Company's benefit
plans without jeopardizing the tax status of such plans, for underwriting
reasons or because of the tax impact on the Employee, then the Company shall pay
the Employee an amount such that the Employee can purchase such benefits
separately at no greater after tax cost to the Employee than the Employee would
have had if the benefits were provided to the Employee as an employee of the
Company.

     2.3.  (a) Whether or not the Employee becomes entitled to the Severance
Payments, if any of the Total Payments (as defined in subsection (b) below) will
be subject to an excise tax under Section 4999 of the Code (the "Excise Tax"),
the Company shall pay to the

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Employee an additional amount (the "Gross-Up Payment") such that the net amount
retained by the Employee, after deduction of any Excise Tax on the Total
Payments and any federal, state and local income tax and Excise Tax upon the
payment provided for by this Section 2.3, shall be equal to the excess of the
Total Payments over the payment provided for by this Section 2.3.

     (b) For purposes of determining whether any of the Total Payments will be
subject to the Excise Tax and the amount of such Excise Tax, (i) any payments or
benefits received or to be received by the Employee in connection with a Change
of Control or the Employee's termination of employment, whether pursuant to the
terms of this Agreement or any other plan, arrangement or agreement with the
Company (the "Total Payments"), shall be treated as "parachute payments" (within
the meaning of section 280G(b)(2) of the Code) unless, in the opinion of tax
counsel selected by the Company's independent auditors and reasonably acceptable
to the Employee, such payments or benefits (in whole or in part) do not
constitute parachute payments, including by reason of section 280G(b)(4)(A) of
the Code, and all "excess parachute payments" (within the meaning of section
280G(b)(1) of the Code) shall be treated as subject to the Excise Tax unless, in
the opinion of such tax counsel, such excess parachute payments (in whole or in
part) represent reasonable compensation for services actually rendered (within
the meaning of section 280G(b)(4)(B)  of the Code), or are otherwise not subject
to the Excise Tax, and (ii) the value of any noncash benefits or any deferred
payment or benefit shall be determined by the Company's independent auditors in
accordance with the principles of sections 280G(d)(3) and (4) of the Code.  For
purposes of determining the amount of the Gross-Up Payment, the Employee shall
be deemed to pay federal income taxes at the highest marginal rate of federal
income taxation in the calendar year in which the Gross-Up Payment is to be
made, FICA taxes at the highest rate applicable with respect to wages in excess
of the Social Security taxable wage base in effect for the year of payment, and
state and local income taxes at the highest marginal rate of taxation in the
state and locality of the Employee's residence on the Date of Termination (or
such other time as is hereinafter described), net of the maximum reduction in
federal income taxes which could be obtained from deduction of such state and
local taxes.

     (c) In the event that the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder at the time of termination of the
Employee's employment (or such other time as is hereinafter described), the
Employee shall repay to the Company, at the time that the amount of such
reduction in Excise Tax is finally determined, the portion of the Gross-Up
Payment attributable to such reduction (plus that portion of the Gross-Up
Payment attributable to the Excise Tax and federal, state and local income tax
imposed on the Gross-Up Payment being repaid by the Employee to the extent that
such repayment results in a reduction in Excise Tax or a federal, state or local
income tax deduction) plus interest on the amount of such repayment at the rate
provided in section 1274(b)(2)(B) of the Code.  In the event that the Excise Tax
is determined to exceed the amount taken into account hereunder at the time of
the termination of the Employee's employment (or such other time as is
hereinafter described) (including by reason of any payment the existence or
amount of which cannot be determined at the time of the Gross-Up Payment), the
Company shall make an additional Gross-Up Payment in respect of such excess
(plus any interest, penalties or addition payable by

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<PAGE>

the Employee with respect to such excess) at the time that the amount of such
excess is finally determined. The Employee and the Company shall each reasonably
cooperate with the other in connection with any administrative or judicial
proceedings concerning the existence or amount of liability for Excise Tax with
respect to the Total Payments. If an Employee who remains in the employ of the
Company becomes entitled to the payment provided for by this paragraph, such
payment shall be made no later than the later of (i) the fifth day following the
date on which the Employee notifies the Company that he is subject to the Excise
Tax and (ii) twenty days prior to the date on which the Excise Tax is initially
due.

          (d)  The payments provided for in this Section 2.3 shall be made as
soon as practicable prior to the date that Employee is obligated to pay the
Excise tax; provided, however, that, if the amounts of such payments cannot be
            -----------------
finally determined on or before such day, the Company shall pay to the Employee
on such day an estimate, as determined in good faith by the Company of the
minimum amount of such payments to which the Employee is clearly entitled and
shall pay the remainder of such payments (together with interest at the rate
provided in section 1274(b)(2)(B) of the Code) as soon as the amount thereof can
be determined. In the event that the amount of the estimated payments exceeds
the amount subsequently determined to have been due, such excess shall
constitute a loan by the Company to the Employee, payable on the fifth (5th)
business day after demand by the Company (together with interest at the rate
provided in section 1274(b)(2)(B) of the Code). At the time that payments are
made under this section, the Company shall provide the Employee with a written
statement setting forth the manner in which such payments were calculated and
the basis for such calculations including.

3.   The Employee's Covenants.
     ------------------------

     3.1  Except as is necessary in the performance of Employee's duties as an
employee  and as a member of the Board of Directors of the Company, Employee
shall not, without the prior written consent of the Company in its sole
discretion, for any reason or for any purpose, during or after Employee's
employment by the Company, either directly or indirectly, divulge to any third-
party or use for his own direct or indirect benefit, any Company Information (as
defined below) revealed to or obtained by Employee at any time during the course
of his employment with the Company.  "Company Information" generally means all
of the Company's confidential, proprietary, business and technical information,
trade secrets or other information or materials that have not been made
available to the general public by the Company.  Nothing contained herein shall
restrict Employee from divulging or using for his own benefit or for any other
purpose any Company Information that is readily available to the general public
so long as such information did not become available to the general public as a
direct or indirect result of Employee's breach of this Agreement.

     3.2. For the two year period starting on the Date of Termination,
regardless of the reason for the termination, Employee shall not, directly or
indirectly, and whether for Employee's own direct or indirect benefit or for the
direct or indirect benefit of any third party:

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          (a) perform any services that may be used in connection with
developing, manufacturing or marketing a chemical entity or product that
competes with the Company's business of the discovery, development, manufacture,
marketing and sale of pharmaceuticals for the treatment of any disease that is
or was the focus of any of the Company's research, development or
commercialization programs that are described in or are incorporated by
reference into the Company's most recent Form 10-K or most recent Form S-1 or S-
3 filed with the Securities and Exchange Commission prior to the Date of
Termination, or that are otherwise publicly announced by the Company after the
filing of the foregoing Form 10-K, Form S-1 or Form S-3 and prior to the Date of
Termination (the "Business"), provided that nothing in this Subsection shall
prevent Employee, with the prior approval of a majority of the members of the
Board of Directors of the Company, from serving on the Board of Directors of
another entity that may otherwise be deemed to be in competition with the
Business; or

          (b) solicit, call on, or otherwise deal in any way with any licensor,
customer, vendor or contractor with whom the Company shall have dealt at any
time during the period of Employee's employment by the Company, for a purpose
which is competitive with the Business; or

          (c) employ, engage or retain, or arrange to have any other person or
entity employ, engage or retain any person who is an employee, contractor,
consultant or agent of the Company or shall have been employed, engaged or
retained by the Company as an employee, contractor, consultant or agent at any
time during the one (1) year period preceding the Date of Termination;
additionally, Employee shall not, directly or indirectly, influence or attempt
to influence any such person to terminate or modify his or her employment
arrangement or engagement with the Company.

     The Employee acknowledges that the Company would be irreparably injured by
a violation of this Section 3, and agrees that the Company, in addition to other
remedies available to it for such breach or threatened breach, shall be entitled
to a preliminary injunction, temporary restraining order or other equitable
relief restraining the Employee from any actual or threatened breach of this
Section 3 without any bond or other security being required.  Employee's
obligation under this Section 3 shall survive any termination of the Company's
obligation to make payments to Employee hereunder.

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4.   Termination Procedures.
     ----------------------

     4.1. During the term of this Agreement, any termination of the Employee's
employment (other than by reason of death) shall be communicated by written
Notice of Termination from one party hereto to the other party hereto in
accordance with Section 6 hereof.  For purposes of this Agreement, a "Notice of
Termination" shall mean a notice which shall indicate the specific termination
provision in this Agreement relied upon and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
Employee's employment under the provision so indicated.

     4.2. "Date of Termination," with respect to any termination of the
Employee's employment shall mean:

          (a) if the Employee's employment is terminated for Disability, thirty
(30) days after Notice of Termination is given (provided that the Employee shall
not have returned to the full-time performance of the Employee's duties during
such thirty (30) day period); and

          (b) if the Employee's employment is terminated for any other reason,
the date specified in the Notice of Termination, which, in the case of: (i) a
termination by the Company, shall not be less than thirty (30) days after the
date Notice of Termination is given (except in the case of a termination for
Cause) and, (ii) a termination by the Employee, shall not be less than fifteen
(15) days nor more than sixty (60) days after the date such Notice of
Termination is given.

5.   Successors; Binding Agreement.
     -----------------------------

     5.1. In addition to any obligations imposed by law upon any successor to
the Company, the Company will require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business or assets of the Company to expressly assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would
be required to perform it if no such succession had taken place.  Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of
any such succession shall be a breach of this Agreement and shall entitle the
Employee to compensation from the Company in the same amount and on the same
terms as the Employee would be entitled to hereunder if the Employee were to
terminate the Employee's employment for Good Reason after a Change of Control,
except that, for purposes of implementing the foregoing, the date on which any
such succession becomes effective shall be deemed the Date of Termination.

     5.2. This Agreement shall inure to the benefit of and be enforceable by the
Employee's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees.  If the Employee shall
die while any amount would still be

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<PAGE>

payable to the Employee hereunder (other than amounts which, by their terms,
terminate upon the death of the Employee) if the Employee had continued to live,
all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to the executors, personal representatives or
administrators of the Employee's estate.

6.   Notices. For the purpose of this Agreement, notices and all other
     -------
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when personally delivered or mailed by United
states registered mail, return receipt requested, postage prepaid, addressed to
the respective addresses set forth below, or to such other address as either
party may have furnished to the other in writing in accordance herewith, except
that notice of change of address shall be effective only upon actual receipt:

          To the Company:                To the Employee:

          ViroPharma Incorporated        Claude H. Nash
          405 Eagleview Boulevard        2400 Beaver Hill Rd., PO Box 179,
          Exton, PA 19341                Birchrunville, PA 19421-0179
          Attention: General Counsel

7.   Miscellaneous. No provision of this Agreement may be modified, waived or
     -------------
discharged unless such waiver, modification or discharge is agreed to in writing
and signed by the Employee and such officer as may be specifically designated by
the Board. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either
party which are not expressly set forth in this Agreement. The validity,
interpretation, construction this Agreement shall be governed by the laws of the
Commonwealth of Pennsylvania. All references to sections of the Exchange Act or
the Code shall be deemed also to refer to any successor provisions to such
sections. Any payments provided for hereunder shall be paid net of any
applicable withholding required under federal, state or local law and any
additional withholding to which the Employee has agreed

8.   Validity. The invalidity or unenforceability of any provision of this
     --------
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.

9.   Counterparts. This Agreement may be executed in several counterparts, each
     ------------
of which shall be deemed to be an original but all of which together will
constitute one and the same instruments.

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<PAGE>

10.  Settlement of Disputes; Arbitration. All claims by the Employee for
     -----------------------------------
benefits under this Agreement shall be directed to and determined by the Board
and shall be in writing. Any denial by the Board of a claim for benefits under
this Agreement shall be delivered to the Employee in writing and shall set forth
the specific reasons for the denial and the specific provisions of this
Agreement relied upon. The Board shall afford a reasonable opportunity to the
Employee for a review of the decision denying a claim and shall further allow
the Employee to appeal to the Board a decision of the Board within sixty (60)
days after notification by the Board that the Employee's claim has been denied.
Any further dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration in Philadelphia,
Pennsylvania in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator's award in
any court having jurisdiction.

11.  Definitions. For purposes of this Agreement, the following terms shall
     -----------
have the meanings indicated below:

     11.1 "Cause" means Employee's conviction of any felony, Employee's
commission of any act of fraud or embezzlement, or Employee's unauthorized use
or disclosure of confidential information or trade secrets of the Company or its
subsidiaries.

     11.2 "Change of Control" shall mean "Change of Control" as defined in the
ViroPharma Incorporated Stock Option Plan.

     11.3 "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time. References to specific sections of the code shall include any
successors thereto.

     11.4 "Disability" shall be deemed the reason for the termination by the
Company of the Employee's employment if, as a result of the Employee's
incapacity due to physical or mental illness, the Employee shall have been
absent from the full-time performance of the Employee's duties with the Company
for a period of six (6) consecutive months, the Company shall have given the
Employee a Notice of Termination for Disability and, within thirty (30) days
after such Notice of Termination is given, the Employee shall not have returned
to the full-time performance of the Employee's duties.

     11.5 "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

     11.6 "Good Reason" for termination by the Employee of the Employee's
employment shall mean the occurrence (without the Employee's express written
consent) of any one of the following acts by the Company, or failures by the
Company to act, unless, in the case of any act or failure to act described in
subsections (a), (d), or (e) below, such act or failure to act is corrected
prior to the Date of Termination specified in the Notice of Termination given in
respect thereof:

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<PAGE>

          (a)  the assignment by the Company to the Employee of any duties
inconsistent with the Employee's status as an employee of the Company or a
substantial adverse alteration in the nature or status of the Employee's
responsibilities;

          (b)  a reduction by the Company in the Employee's annual base salary
as in effect on the date hereof or as the same may be increased from time to
time except for across-the-board salary reductions similarly affecting all
Employees of the Company and all Employees of any Person in control of the
Company;

          (c)  the relocation by the Company of its principal executive offices
to a location more than 30 miles from the Company's principal offices on the
date of this Agreement or the Company's requiring the Employee to be based
anywhere other than the Company's principal executive offices except for
required travel on the Company's business to an extent substantially consistent
with the Employee's present business travel obligations;

          (d)  the failure by the Company to pay to the Employee any portion of
the Employee's current compensation except pursuant to an across-the-board
compensation deferral similarly affecting all Employees of the Company and all
Employees of any Person in control of the Company, or to pay to the Employee any
portion of an installment of deferred compensation under any deferred
compensation program of the Company, within thirty (30) days of the date such
compensation is due;

          (e)  the failure by the Company to continue to provide the Employee
with benefits substantially similar to those enjoyed by the Employee under any
of the Company's pension, life insurance medical, health and accident, or
disability plans in which the Employee was participating immediately preceding
such failure, the taking of any action by the Company which would directly or
indirectly materially reduce any of such benefits or deprive the Employee of any
material fringe benefit enjoyed by the Employee immediately preceding such
failure, or the failure by the Company to provide the Employee with the number
of paid vacation days to which the Employee is entitled on the basis of years of
service with the Company in accordance, with the Company's normal vacation
policy in effect immediately preceding such failure.

     11.7 "Person" shall have the meaning given in section 3(a)(9) of the
Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof;
provided, however, that a Person shall not include (a) the Company or any of its
--------  -------
subsidiaries, (b) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its subsidiaries, (c) an
underwriter temporarily holding securities pursuant to an offering of such
securities, or (d) a corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

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<PAGE>

          IN WITNESS WHEREOF, this Agreement has been executed, as of the date
first above written, on behalf of this Company by its duly authorized officer
and by the Employee.

ATTEST:                              VIROPHARMA INCORPORATED

  /s/ Thomas F. Doyle                By: /s/ Michel de Rosen
------------------------                ----------------------------------------
Secretary                                  Michel de Rosen
                                           Chief Executive Officer and President

                                     EMPLOYEE

                                     By: /s/ Claude H. Nash
                                        ----------------------------------------
                                           Claude H. Nash

                                       10
<PAGE>

                                   EXHIBIT A

                                    RELEASE
                                    -------

     In consideration for the above consideration and the promises contained in
     that certain Severance Agreement dated as of August 21, 2000 between you
     and ViroPharma Incorporated (the "Company"), the sufficiency of which are
     hereby acknowledged, you hereby agree of your own free will, to voluntarily
     waive, release and forever discharge the Company and its subsidiaries,
     affiliates, predecessors, officers, employees and directors of and from any
     and all actions, causes of actions, suits, grievances, claims, debts,
     charges, complaints, contracts (whether oral or written, express or implied
     from any source), claims for recall or reinstatement and promises,
     whatsoever, in law or equity, which you or your heirs, executors,
     administrators, successors and assigns, may have, or may have knowledge of,
     or may be charged with knowledge of, as of the date of this Agreement, for,
     upon, or by reason of any matter, cause or thing whatsoever, including, but
     not limited to, any and all matters arising out of your employment by the
     Company and the cessation of said employment, and including but not limited
     to, any violation of:

     (a)  Title VII of the Civil Rights Act of 1964, as amended;

     (b)  Sections 1981 through 1988 of Title 42 of the United States Code;

     (c)  The Employee Retirement Income Security Act of 1974, as amended;

     (d)  The Vocational Rehabilitation Act of 1973, as amended;

     (e)  The Age Discrimination in Employment Act of 1967, as amended;

     (f)  The Older Workers Benefit Protection Act of 1990, as amended;

     (g)  The Americans with Disabilities Act of 1990, as amended;

     (h)  The Pennsylvania Human Relations Act, 43 P.S. sections 951, et. seq.;
                                                                      ---------

     (i)  Any other federal, state or local labor, whistleblower, wage and hour
          or human rights law; and

     (j)  Any other alleged violation of any local, state or federal law,
          regulation or ordinance and/or public policy, contract, tort or common
          law having any bearing whatsoever on the terms and conditions and/or
          cessation of your employment with the Company which you ever had, now
          has or may have as of the date of execution of this Agreement.

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<PAGE>

IN WITNESS WHEREOF, this Release has been executed, as of the date written below
by the undersigned in favor of ViroPharma Incorporated.

EMPLOYEE:

/s/ Claude H. Nash
---------------------------------------------
Claude H. Nash

ACCEPTED:

VIROPHARMA INCORPORATED

By: /s/ Michel de Rosen
    -----------------------------------------

Name: Michel de Rosen
      ---------------------------------------

Title: Chief Executive Officer and President
       --------------------------------------

                                       12<PAGE>

                                                                   Exhibit 10.31

                            VIROPHARMA INCORPORATED
                    STOCK OPTION AND RESTRICTED SHARE PLAN

                    Originally Effective September 20, 1995
                 Amended and Restated, Effective March 3, 1998
            Amended, Restated, and Renamed, Effective April 5, 2001
               Amended and Restated, Effective November 14, 2001
<PAGE>

                            VIROPHARMA INCORPORATED
                    STOCK OPTION AND RESTRICTED SHARE PLAN

ViroPharma Incorporated adopted its 1995 Stock Option Plan effective September
20, 1995.  This plan was amended and restated effective March 13, 1998, and then
again on March 13, 2000.  Effective April 5, 2001, the plan is amended, restated
and renamed the ViroPharma Incorporated Stock Option and Restricted Share Plan
(the "Plan") and was amended and restated again on November 17, 2001.  The
purposes of the Plan are to:  (a) further the growth and success of ViroPharma
Incorporated (the "Company") and its Subsidiaries by enabling selected
employees, directors, consultants and advisors of the Company and any
Subsidiaries to acquire shares of common stock of the Company, thereby
increasing their personal interest in such growth and success and (b) to provide
a means of rewarding outstanding performance of such persons.  The terms of the
Plan shall be incorporated in the Award Agreement to be executed by the
Participant.

1.   Definitions

     1.1  "Affiliate" means, with respect to a Person, another Person that
           ---------
directly or indirectly controls, or is controlled by, or is under common control
with such Person.

     1.2  "Award" means a grant of Options or Restricted Shares to an Eligible
           -----
Person pursuant to the provisions of this Plan.  Each separate grant of Options
or Restricted Shares to an Eligible Person and each group of Options that vests
on a separate date, or a group of Restricted Shares with respect to which
restrictions lapse on a separate date, is treated as a separate Award.

     1.3  "Award Agreement" means a written agreement substantially in the form
           ---------------
of Exhibit A-1, A-2, A-3 or A-4, or such other form or forms as the Board or the
Committee (subject to the terms and conditions of this Plan) may from time to
time approve evidencing and reflecting the terms of an Award.

     1.4  "Award Committee" means a committee appointed by the Committee in
accordance with Section 3.1(b) of the Plan, and if one is appointed, then such
committee shall possess all of the power and authority, and shall be authorized
to take any and all actions required to be taken hereunder, and make any and all
determinations required to be made hereunder, to the extent authorized by the
Committee.

     1.5  "Board" means the Board of Directors of the Company, as constituted
           -----
from time to time.

     1.6  "Change of Control" means the happening of an event, which shall be
           -----------------
deemed to have occurred upon the earliest to occur of the following events:

          a.   the date the stockholders of the Company (or the Board, if
               stockholder action is not required) approve a plan or other
               arrangement pursuant to which the Company will be dissolved or
               liquidated;

                                       1
<PAGE>

          b.   the date the stockholders of the Company (or the Board, if
               stockholder action is not required) approve a definitive
               agreement to sell or otherwise dispose of all or substantially
               all of the assets of the Company;

          c.   the date the stockholders of the Company (or the Board, if
               stockholder action is not required) and the stockholders of the
               other constituent corporations (or their respective boards of
               directors, if and to the extent that stockholder action is not
               required) have approved a definitive agreement to merge or
               consolidate the Company with or into another corporation, other
               than, in either case, a merger or consolidation of the Company in
               which holders of shares of the Company's voting capital stock
               immediately prior to the merger or consolidation will have at
               least 50% of the ownership of voting capital stock of the
               surviving corporation immediately after the merger or
               consolidation (on a fully diluted basis), which voting capital
               stock is to be held in the same proportion (on a fully diluted
               basis) as such holders' ownership of voting capital stock of the
               Company immediately before the merger or consolidation;

          d.   the date any entity, Person or group (within the meaning of
               Section 13(d)(3) or Section 14(d)(2) of the Exchange Act), other
               than (i) the Company, or (ii) any of its Subsidiaries, or (iii)
               any employee benefit plan (or related trust) sponsored or
               maintained by the Company or any of its Subsidiaries, or (iv) any
               Affiliate (as such term is defined in Rule 405 promulgated under
               the Securities Act) of any of the foregoing, shall have acquired
               beneficial ownership of, or shall have acquired voting control
               over, 50% or more of the outstanding shares of the Company's
               voting capital stock (on a fully diluted basis), unless the
               transaction pursuant to which such Person, entity or group
               acquired such beneficial ownership or control resulted from the
               original issuance by the Company of shares of its voting capital
               stock and was approved by at least a majority of Directors who
               were either members of the Board on the date that this Plan was
               originally adopted by the Board or members of the Board for at
               least twelve (12) months before the date of such approval;

          e.   the date the Board determines (in its sole discretion) that based
               on then-currently available information, the events described in
               Section 1.5(d) are reasonably likely to occur; or

          f.   the first day after the date of this Plan when Directors are
               elected such that there is a change in the composition of the
               Board such that a majority of Directors have been members of the
               Board for less than twelve (12) months, unless the nomination for
               election of each new Director who was not a Director at the
               beginning of such twelve (12) month period was approved by a vote
               of at least sixty percent (60%) of the Directors then still in
               office who were Directors at the beginning of such period.

                                       2
<PAGE>

     1.7  "Code" means the Internal Revenue Code of 1986, as amended.
           ----

     1.8  "Committee" means a committee appointed by the Board in accordance
           ---------
with Section 3.1 of the Plan, and if one is appointed, then such committee shall
possess all of the power and authority of, and shall be authorized to take any
and all actions required to be taken hereunder by, and make any and all
determinations required to be taken hereunder by, the Board.

     1.9  "Common Stock" means common stock of the Company, $.002 par value per
           ------------
Share.

     1.10 "Company" means ViroPharma Incorporated.
           -------

     1.11 "Director" means an individual who is a member of the Board of
           --------
Directors of the Company.

     1.12 "Disability" means a mental or physical disability of an Eligible
           ----------
Person that renders such Eligible Person unable to perform the full extent of
his duties and responsibilities by reason of his illness or incapacity for a
period of 90 consecutive days or longer, or for 90 days during any six-month
period.

     1.13 "Eligible Person" means:
           ---------------

          a.   with respect to Awards of Incentive Stock Options, any person
               employed by the Company or by any of its Subsidiaries;

          b.   with respect to Awards of non-qualified stock options, any person
               employed by the Company or by any of its Subsidiaries, advisors
               and consultants to the Company or any Subsidiary, Directors and
               members of the board of directors of a Subsidiary;

          c.   with respect to any Award of Restricted Shares, any person
               employed by the Company or by any of its Subsidiaries, and
               Directors and members of the board of directors of a Subsidiary.

     1.14 "Exchange Act" means the Securities Exchange Act of 1934, as amended.
           ------------

     1.15 "Fair Market Value Per Share" means:
           ---------------------------

          a.   If shares of Common Stock are traded in the over-the-counter
               market:  the mean of the bid and asked prices for a share of
               Common Stock on the relevant valuation date as reported in The
                                                                          ---
               Wall Street Journal (or, if not so reported, as otherwise
               -------------------
               reported by the National Association of Securities Dealers
               Automated Quotations ("NASDAQ") System), as applicable or, if
               there is no trading on such date, on the next preceding date on
               which there were reported share prices.

                                       3
<PAGE>

          b.   If shares of Common Stock are listed on a national or regional
               securities exchange or traded through the NASDAQ National Market:
               the closing price for a share of Common Stock on the exchange or
               on the NASDAQ National Market, as reported in The Wall Street
                                                             ---------------
               Journal on the relevant valuation date, or if there is no trading
               -------
               on that date, on the next preceding date on which there were
               reported share prices.

          c.   If neither of Sections 1.14(a-b) apply, then the Fair Market
               Value Per Share of Common Stock shall be determined in good faith
               by the Board or the Committee in its sole discretion.

     1.16 "Incentive Stock Option" means an Option that is an incentive stock
           ----------------------
option as described in Section 422 of the Code.

     1.17 "Non-Employee Director" shall have the meaning set forth in Rule 16b-
           ---------------------
3(b)(3)(i) promulgated by the Securities and Exchange Commission under the
Exchange Act, or any successor definition adopted by the Securities and Exchange
Commission; provided, however, that the Board or the Committee may, to the
extent it deems it necessary or desirable to comply with Section 162(m) of the
Code and applicable regulations thereunder, ensure that each Non-Employee
Director also qualifies as an outside director as that term is defined in the
regulations under Section 162(m) of the Code.

     1.18 "Option" means an Incentive Stock Option or a non-qualified stock
           ------
option to purchase Shares that is awarded pursuant to the Plan.

     1.19 "Other Available Shares" means, as of any date:
           ----------------------

          a.   the total number of  Shares owned by a Participant; in excess of

          b.   the sum of:

               i.   the number of Shares owned by such Participant for less than
                    six months; plus

               ii.  the number of Shares owned by such Participant that has,
                    within the preceding six months, been surrendered as payment
                    in full or in part, of the exercise price for an option to
                    purchase any securities of the Company or an Affiliate under
                    any restricted stock, stock bonus, stock option or other
                    compensation plan, program or arrangement established or
                    maintained by the Company or an Affiliate.

          If 1.18(a) is not greater than 1.18(b), the amount of "Other Available
          Shares" shall be zero.

                                       4
<PAGE>

     1.20 "Participant" means an Eligible Person to whom an Award is granted
           -----------
pursuant to the Plan.

     1.21 "Person" means an individual, partnership, corporation, limited
           ------
liability company, trust, joint venture, unincorporated association, or other
entity or association.

     1.22 "Plan" means this ViroPharma Incorporated Stock Option and Restricted
           ----
Share Plan, as amended from time to time.

     1.23 "Pool" means the pool of Shares subject to the Plan, as described in
           ----
Article 4, and as adjusted in accordance with Article 7 of the Plan.

     1.24 "Restricted Shares" means Shares that are subject to restrictions
           -----------------
pursuant to Article 6 of the Plan.

     1.25 "Securities Act" means the Securities Act of 1933, as amended.
           --------------

     1.26 "Shares" means shares of Common Stock including, without limitation,
           ------
Restricted Shares.

     1.27 "Subsidiary" means a subsidiary corporation, whether now or hereafter
           ----------
existing, as defined in Sections 424(f) and (g) of the Code.

2.   Participation

Subject to the terms of the Plan, the Board, the Committee or the Award
Committee (i) will select Participants from among the Eligible Persons and (ii)
may make Awards at any time and from time to time to Eligible Persons.  Any
Award may include or exclude any Eligible Person, as the Board, the Committee or
the Award Committee shall determine in its sole discretion.  An Eligible Person
who has received an Award, if he or she is otherwise eligible, may receive
additional Awards.

3.   Administration

     3.1  Procedure.
          ---------

          (a)  Committee.  The Board shall administer the Plan.  The Board may
               ---------
at any time appoint a Committee of Non-Employee Directors of at least two
persons to administer the Plan on behalf of the Board subject to such terms and
conditions as the Board may prescribe. Members of the Committee shall serve for
such period of time as the Board may determine. Members of the Board or the
Committee who are eligible for Awards or who have received Awards may vote on
any matters affecting the administration of the Plan or the granting of Awards
pursuant to the Plan, except that no such member shall act upon an Award to
himself or herself, but any such member may be counted in determining the
existence of a quorum at any meeting of the Board or the Committee during which
action is taken with respect to an Award to himself or herself. From time to
time the Board may increase the size of the Committee and

                                       5
<PAGE>

appoint additional members thereto, remove members (with or without cause) and
appoint new members in substitution therefor, fill vacancies however caused, or
remove all members of the Committee and thereafter directly administer the Plan.

          (b)  Award Committee.  To the extent authorized by the Board, the
               ---------------
Committee may at any time appoint an Award Committee of at least two officers of
the Company to administer the Plan on behalf of the Committee to the fullest
extent allowed by law subject to such terms, conditions and limitations as the
Committee may prescribe.  Members of the Award Committee shall serve for such
period of time as the Committee may determine.  Members of the Award Committee
who have received Awards may vote on any matters affecting the administration of
the Plan or the granting of Awards pursuant to the Plan, except that no such
member shall act upon an Award to himself or herself, but any such member may be
counted in determining the existence of a quorum at any meeting of the Award
Committee during which action is taken with respect to an Award to himself or
herself.  From time to time the Committee may increase the size of the Award
Committee and appoint additional members thereto, remove members (with or
without cause) and appoint new members in substitution therefor, fill vacancies
however caused, or remove all members of the Award Committee and thereafter
directly administer the Plan.

     3.1  3.2  Powers.  Subject to the provisions of the Plan:
               ------

          (a)  The Board or, to the extent delegated by the Board, the Committee
shall have the authority, in its discretion:

               1.   to make Awards to any Eligible Person;

               2.   to determine the Fair Market Value Per Share;

               3.   to determine the exercise price of the Options to be awarded
                    in accordance with Article 5 of the Plan;

               4.   to determine the purchase price, if any, for Restricted
                    Shares awarded in accordance with Article 6 of the Plan;

               5.   to determine the Eligible Persons to whom, and the time or
                    times at which, Awards shall be made, and the number of
                    Shares to be subject to each Award;

               6.   to prescribe, amend and rescind rules and regulations
                    relating to the Plan;

               7.   to determine the terms and provisions of each Award under
                    the Plan and each Award Agreement (which need not be
                    identical with the terms of other Awards and Award
                    Agreements) and, with the consent of the Participant, to
                    modify or amend an outstanding Award or Award Agreement;

                                       6
<PAGE>

               8.   to determine the conditions that must be satisfied under any
                    Award in order for an Option to vest and become exercisable,
                    or, for the restrictions on any Restricted Share to lapse,
                    which conditions may include satisfaction of performance
                    goals, passage of set periods of time and/or other criteria
                    as determined by the Board or the Committee;

               9.   to accelerate the vesting or exercise date of any Option
                    and/or to waive, in whole or in part any or all remaining
                    restrictions on any Restricted Shares;

               10.  to interpret the Plan or any agreement entered into with
                    respect to an Award, the exercise of Options, or the removal
                    of restrictions on Restricted Shares;

               11.  to authorize any person to execute on behalf of the Company
                    any instrument required to effectuate an Award or to take
                    such other actions that may be necessary or appropriate with
                    respect to the Company's rights pursuant to Awards or Award
                    Agreements; and

               12.  to make such other determinations and establish such other
                    procedures as it deems necessary or advisable for the
                    administration of the Plan.

          (b)  To the fullest extent allowed by applicable law and subject to
the scope of authority delegated by the Board and/or the Committee, the Award
Committee shall have the authority, in its discretion:

               1.   to make Awards to any Eligible Person who is employed by the
                    Company or any Subsidiary;

               2.   to determine the Fair Market Value Per Share;

               3.   to determine the exercise price of the Options to be awarded
                    in accordance with Article 5 of the Plan;

               4.   to determine the purchase price, if any, for Restricted
                    Shares awarded in accordance with Article 6 of the Plan;

               5.   subject to the limitations set forth in Section 3.2(b)(1),
                    to determine the Eligible Persons to whom, and the time or
                    times at which, Awards shall be made, and the number of
                    Shares to be subject to each Award;

                                       7
<PAGE>

               6.   to determine the terms and provisions of each Award under
                    the Plan and each Award Agreement (which need not be
                    identical with the terms of other Awards and Award
                    Agreements) and, with the consent of the Participant, to
                    modify or amend an outstanding Award or Award Agreement;

               7.   to determine the conditions that must be satisfied under any
                    Award in order for an Option to vest and become exercisable,
                    or, for the restrictions on any Restricted Share to lapse,
                    which conditions may include satisfaction of performance
                    goals, passage of set periods of time and/or other criteria
                    as determined by the Board or the Committee; and

               8.   to authorize any person to execute on behalf of the Company
                    any instrument required to effectuate an Award or to take
                    such other actions that may be necessary or appropriate with
                    respect to the Company's rights pursuant to Awards or Award
                    Agreements.

     3.3  Effect of Decisions.  All decisions, determinations and
          -------------------
interpretations of the Board or the Committee shall be final and binding with
respect to all Awards and Award Agreements under the Plan.

     3.4  Limitation of Liability.  Notwithstanding anything herein to the
          -----------------------
contrary, no member of the Board or the Committee shall be liable for any good
faith determination, act or failure to act in connection with the Plan, any
Award, or any Award Agreement hereunder.

4.   Stock Subject to the Plan

     4.1  Subject to the provisions of this Article 4 and the provisions of
Article 7 of the Plan, no more than 3,750,000 Shares of Common Stock
(collectively, the "Pool"), may be awarded and sold under the Plan, of which a
maximum of 10% of the Shares reserved for issuance hereunder may be awarded and
sold or granted as Restricted Shares.  No more than 1,000,000 Shares of Common
Stock may be awarded and sold (or, in the case of Restricted Shares with no
purchase price, granted) under the Plan to any individual Participant.  Options
awarded from the Pool may be either Incentive Stock Options or non-qualified
stock options, as determined by the Board or the Committee.  If an Option
expires or becomes unexercisable for any reason without having been exercised in
full, the unexercised Shares shall be returned to the Pool and become available
for future award under the Plan, unless the Plan was terminated earlier.
Similarly, if and to the extent that any Restricted Share is canceled,
repurchased or forfeited for any reason, that Share will again become available
for grant under the Plan.

     4.2  Shares to be delivered under the Plan will be made available, at the
discretion of the Board or the Committee, from authorized but unissued Shares
and/or from previously issued Shares reacquired by the Company.

5.   Terms and Conditions of Options

                                       8
<PAGE>

     5.1  Option Awards.  Options may be granted either alone or in conjunction
          -------------
with other Awards.  Each Option awarded pursuant to the Plan shall be authorized
by the Board, the Committee, or the Award Committee and shall be evidenced by an
Award Agreement in such form as the Board, the Committee, or the Award Committee
may from time to time determine.  The provisions of Awards need not be the same
with respect to each Participant.  The prospective recipient of an Award of
Options will not have any rights with respect to such Award, unless and until
such recipient has executed an Award Agreement and has delivered a fully
executed copy thereof to the Company, and has otherwise complied with the
applicable terms and conditions of such Award.

     5.2  Option Award Agreements.  Each Award Agreement shall incorporate by
          -----------------------
reference all other terms and conditions of the Plan, including the following
terms and conditions:

          a.   Number of Shares.  The Award Agreement shall state the number of
               ----------------
               Shares subject to the Option, which shall not include fractional
               Shares.

          b.   Option Price.  The price per Share payable on the exercise of any
               ------------
               Option  shall be stated in the Award Agreement and shall be no
               less than the Fair Market Value Per Share on the date such Option
               is awarded, without regard to any restriction other than a
               restriction that will never lapse.  Notwithstanding the
               foregoing, if an Incentive Stock Option is awarded under this
               Plan to any person who, at the time of the award of such
               Incentive Stock Option, owns stock possessing more than 10% of
               the total combined voting power of all classes of the Company's
               stock, the price per Share payable upon exercise of such
               Incentive Stock Option shall be no less than 110 percent (110%)
               of the Fair Market Value Per Share on the date such Option is
               awarded.   Neither the Board nor the Committee may reprice any
               outstanding Options.

          c.   Form of Option.  The Award Agreement will state whether the
               --------------
               Option awarded is an Incentive Stock Option or a non-qualified
               stock option, and will constitute a binding determination as to
               the form of Option awarded, subject to the provisions of Section
               5.5(c) below.

The Award Agreement may contain such other provisions as the Board, the
Committee, or the Award Committee in its discretion deems advisable and which
are not inconsistent with the provisions of this Plan.

     5.3  Consideration.  The Board or the Committee shall determine the method
          -------------
of payment for the Shares to be issued upon the exercise of an Option, which may
consist entirely of cash, personal or certified check, or, at the election of
the Participant and as the Board or the Committee may, in its sole discretion,
approve, by surrendering Shares with an aggregate Fair Market Value per Share
equal to the aggregate Option price, or by delivering such combination of Shares
and cash as the Board or the Committee may, in its sole discretion, approve;
provided,
--------

                                       9
<PAGE>

however, that Shares may be surrendered in satisfaction of the Option price only
-------
if the Participant certifies in writing to the Company that the Participant owns
a number of Other Available Shares as of the date the Option is exercised that
is at least equal to the number of Shares to be surrendered in satisfaction of
the Option price; provided further, that the Option price may not be paid in
                  ----------------
Shares if the Board or the Committee determines that such method of payment
would result in liability under Section 16(b) of the Exchange Act to a
Participant.

Except as otherwise provided by the Board or the Committee, if payment is made
in whole or in part in Shares, the Participant shall deliver to the Company
certificates registered in the name of such Participant representing Shares
legally and beneficially owned by such Participant, free of all liens, claims
and encumbrances of every kind and having an aggregate Fair Market Value per
Share on the date of delivery that is not greater than the aggregate Option
price accompanied by stock powers duly endorsed in blank by the record holder of
the Shares represented by such certificates.  If the Board or the Committee, in
its sole discretion, should refuse to accept Shares in payment of the Option
price, any certificates representing Shares which were delivered to the Company
shall be returned to the Participant with notice of the refusal of the Board or
the Committee to accept such Shares in payment of the option price.  The Board
or the Committee may impose such limitations and prohibitions on the use of
Shares to exercise an Option as it deems appropriate.

     5.4  Exercise of Options.  Any Option awarded hereunder shall be
          -------------------
exercisable at such times and under such conditions as shall be set forth in the
Award Agreement (as may be determined by the Board, the Committee, or the Award
Committee and as shall be permissible under the terms of the Plan), which may
include performance criteria with respect to the Company and/or the Participant,
and as shall be permissible under the terms of the Plan.

An Option may be exercised in accordance with the provisions of this Plan as to
all or any portion of the Shares then exercisable under an Option from time to
time during the term of the Option.  If an Option is exercised for a fraction of
a Share, the Fair Market Value of such fractional Share, as of the date of
exercise, will be paid in cash.

An Option shall be deemed to be exercised when written notice of such exercise
has been given to the Company at its principal executive office in accordance
with the terms of the Award Agreement by the person entitled to exercise the
Option and full payment for the Shares with respect to which the Option is
exercised has been received by the Company, accompanied by any agreements
required by the terms of the Plan and/or Award Agreement.  Full payment may
consist of such consideration and method of payment allowable under this Article
5 of the Plan.  No adjustment shall be made for a dividend or other right for
which the record date is earlier than the date the Option is exercised, except
as provided in Article 7 of the Plan.

As soon as practicable after any proper exercise of an Option in accordance with
the provisions of the Plan, the Company shall, without transfer or issue tax to
the Participant, deliver to the Participant at the principal executive office of
the Company or such other place as shall be mutually agreed upon between the
Company and the Participant, a certificate or certificates representing the
Shares for which the Option shall have been exercised.

                                       10
<PAGE>

Exercise of an Option in any manner shall result in a decrease in the number of
Shares that thereafter may be available for sale under the Option by the number
of Shares as to which the Option is exercised.

     5.5  Term and Vesting of Options.
          ---------------------------

          a.   Except as provided in Section 5.6(d), Options awarded hereunder
               shall vest and become exercisable in whole or in part, in
               accordance with such vesting conditions as the Board, the
               Committee, or the Award Committee shall determine, which
               conditions shall be stated in the Award Agreement.  Vested
               Options may be exercised in any order elected by the Participant
               whether or not the Participant holds any unexercised Options
               under this Plan or any other plan of the Company.

          b.   Notwithstanding any other provision of this Plan, no Option shall
               be:  (i) awarded under this Plan after ten (10) years from the
               date on which this Plan is adopted by the Board, or (ii)
               exercisable more than ten (10) years from the date of award;
               provided, however, that if an Option that is intended to be an
               --------  -------
               Incentive Stock Option shall be awarded under this Plan to any
               person who, at the time of the award of such Option, owns stock
               possessing more than 10% of the total combined voting power for
               all classes of the Company's stock, the foregoing clause (ii)
               shall be deemed modified by substituting "five (5) years" for the
               term "ten (10) years" that appears therein.

          c.   No Option awarded to any Participant shall be treated as an
               Incentive Stock Option, to the extent such Option would cause the
               aggregate Fair Market Value Per Share (determined as of the date
               of award of each such Option) of the Shares with respect to which
               Incentive Stock Options are exercisable by such Participant for
               the first time during any calendar year to exceed $100,000. For
               purposes of determining whether an Incentive Stock Option would
               cause such aggregate Fair Market Value Per Share to exceed the
               $100,000 limitation, such Incentive Stock Options shall be taken
               into account in the order awarded.  For purposes of this
               subsection, Incentive Stock Options include all Incentive Stock
               Options under all plans of the Company and of any Subsidiary that
               are Incentive Stock Option plans within the meaning of Section
               422 of the Code.

          d.   The awarding or vesting of an Option shall impose no obligation
               upon the Participant to exercise such Option.

          e.   A recipient of an Option shall have no rights as a stockholder of
               the Company and shall neither have the right to vote nor receive
               dividends with respect to any Shares subject to an Option until
               such Option has been exercised and a certificate with respect to
               the Shares purchased upon such exercise has been issued to him.

                                       11
<PAGE>

     5.6  Termination of Options.
          ----------------------

          a.   Unless sooner terminated as provided in this Plan, each Option
               shall be exercisable for such period of time as shall be
               determined by the Board, the Committee, or the Award Committee
               and set forth in the Award Agreement, and shall be void and
               unexercisable thereafter.

          b.   Except as otherwise provided herein or by the terms of any Award,
               with respect to a Participant who is an employee or Director,
               upon the termination of such Participant's employment or other
               relationship with the Company for any reason, Options exercisable
               on the date of such termination shall be exercisable by the
               Participant (or in the case of the Participant's death subsequent
               to termination of employment or such other relationship, by the
               Participant's executor(s) or administrator(s)) for a period of
               three (3) months from the date of the Participant's termination.

               Except as otherwise provided herein or by the terms of any Award,
               with respect to a Participant who is an advisor or consultant,
               the termination of such Participant's relationship with the
               Company for any reason shall not accelerate the expiration date
               of Options exercisable on the date of termination; provided
                                                                  --------
               however, that if such Participant dies following such
               -------
               termination, the Option shall be exercisable for a period of
               twelve (12) months commencing on the date of the Participant's
               death by such Participant's executor(s) or administrator(s).

          c.   Except as otherwise provided herein or by the terms of any Award,
               upon the Disability or death of a Participant while in the
               service of the Company, Options held by such Participant which
               are exercisable on the date of Disability or death shall be
               exercisable for a period of twelve (12) months commencing on the
               date of the Participant's Disability or death, by the Participant
               or his legal guardian or representative or, in the case of death,
               by his executor(s) or administrator(s).

          d.   Options may be terminated at any time by agreement between the
               Company and the Participant.

     5.7  Forfeiture.
          ----------

          a.   Termination for Cause.  Notwithstanding any other provision of
               ---------------------
               this Plan, if the Participant's employment or engagement is
               terminated by the Company, and the Board, the Committee, or the
               Award Committee makes a determination that the Participant:

               i.   has engaged in any type of disloyalty to the Company,
                    including without limitation, fraud, embezzlement, theft, or
                    dishonesty in the

                                       12
<PAGE>

                    course of his employment or engagement, or has otherwise
                    breached any fiduciary duty owed to the Company;

               ii.  has been convicted of a felony;

               iii. has disclosed trade secrets or confidential information of
                    the Company; or

               iv.  has breached any agreement with or duty to the Company in
                    respect of confidentiality, non-disclosure, non-competition
                    or otherwise;

               then all unexercised Options shall terminate upon the date of
               such a finding, or, if earlier, the date of termination of
               employment or engagement for such a finding, and the Participant
               shall forfeit all Shares for which the Company has not yet
               delivered share certificates to the Participant and the Company
               shall refund to the Participant the Option purchase price paid to
               it, if any, in the same form as it was paid (or in cash at the
               Company's discretion).  Notwithstanding anything herein to the
               contrary, the Company may withhold delivery of share certificates
               pending the resolution of any inquiry that could lead to a
               finding resulting in forfeiture.

          b.   Non-Competition.  Notwithstanding any other provision of this
               ---------------
               Plan, if, during the 3-month period following a termination of
               service, which period shall be extended to 12 months in the event
               of a termination due to Disability, a Participant who is not a
               consultant or advisor commences any employment or engagement with
               or by a competitor of the Company (including, but not limited to,
               full or part-time employment or independent consulting work), as
               determined in the sole discretion of the Board or the Committee,
               all unexercised Options shall terminate immediately upon the
               commencement thereof.  In the event a Participant who is a
               consultant or advisor has entered into an agreement with the
               Company that contains non-competition covenants and such
               consultant or advisor violates the terms of his or her non-
               competition covenant, all unexercised Options shall terminate
               immediately upon the date of such violation.

6.   Terms and Conditions of Restricted Shares

     6.1  Restricted Share Awards.  Restricted Shares may be granted either
          -----------------------
alone or in conjunction with other Awards.  Restricted Shares granted under an
Award will be issued for such consideration, if any, as the Board, the
Committee, or the Award Committee shall determine.  Any Restricted Shares
awarded pursuant to the Plan shall be authorized by the Board, the Committee, or
the Award Committee and shall be evidenced by an Award Agreement in such form as
the Board, the Committee, or the Award Committee may from time to time
determine.  The Board, the Committee, or the Award Committee will determine the
time or times

                                       13
<PAGE>

within which Restricted Shares may be subject to forfeiture, and all other
conditions of such Awards. The provisions of Awards need not be the same with
respect to each Participant. The prospective recipient of an Award of Restricted
Shares will not have any rights with respect to such Award, unless and until
such recipient has executed an Award Agreement and has delivered a fully
executed copy thereof to the Company, and has otherwise complied with the
applicable terms and conditions of such Award.

     6.2  Restricted Share Award Agreements.  Each Award Agreement shall
          ---------------------------------
incorporate by reference all other terms and conditions of the Plan, including
the following terms and conditions:

          a.   Number of Shares.  The Award Agreement shall state the number of
               ----------------
               Restricted Shares subject to the Award, which shall not include
               fractional Shares.

          b.   Price.  The price per Restricted Share, if any, and the time of
               -----
               payment for the awarding of the Restricted Shares shall be stated
               in the Award Agreement.

The Award Agreement may contain such other provisions as the Board, the
Committee, or the Award Committee in its discretion deems advisable and which
are not inconsistent with the provisions of this Plan.

     6.3  Consideration.  The Board or the Committee shall determine the method
          -------------
of payment, if any payment is required, for the Restricted Shares to be granted
under an Award, which may consist entirely of cash, personal or certified check,
or, at the election of the Participant and as the Board or the Committee may, in
its sole discretion, approve, by surrendering Shares with an aggregate Fair
Market Value per Share equal to the aggregate price payable for the restricted
Shares, or by delivering such combination of Shares and cash as the Board or the
Committee may, in its sole discretion, approve; provided, however, that Shares
                                                -----------------
may be surrendered in satisfaction of the Restricted Share price only if the
Participant certifies in writing to the Company that the Participant owns a
number of Other Available Shares as of the date on which payment is due that is
at least equal to the number of  Shares to be surrendered in satisfaction of the
Restricted Share price; provided further, that the Restricted Share price may
                        ----------------
not be paid in Shares if the Board or the Committee determines that such method
of payment would result in liability under Section 16(b) of the Exchange Act to
a Participant.

Except as otherwise provided by the Board or the Committee, if payment is made
in whole or in part in Shares, the Participant shall deliver to the Company
certificates registered in the name of such Participant representing Shares
legally and beneficially owned by such Participant, free of all liens, claims
and encumbrances of every kind and having an aggregate Fair Market Value per
Share on the date of delivery that is not greater than the aggregate Restricted
Share price accompanied by stock powers duly endorsed in blank by the record
holder of the Shares represented by such certificates.  If the Board or the
Committee, in its sole discretion, should refuse to accept Shares in payment of
the Restricted Share price, any certificates representing Shares which were
delivered to the Company shall be returned to the Participant with notice of

                                       14
<PAGE>

the refusal of the Board or the Committee to accept such Shares in payment of
the Restricted Share price. The Board or the Committee may impose such
limitations and prohibitions on the use of Shares to satisfy a Restricted Share
price as it deems appropriate.

     6.4  Restricted Share Certificates and Legends.  A share certificate will
          -----------------------------------------
be issued in connection with each Award of Restricted Shares.  Such certificate
will be registered in the name of the Participant receiving the Award, and will
bear the following legend and/or any other legend required by this Plan, the
Award Agreement, any other applicable agreement, or by applicable law:

          THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES REPRESENTED
          HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS OF THE VIROPHARMA
          INCOPORATED STOCK OPTION AND RESTRICTED SHARE PLAN AND AN AGREEMENT
          ENTERED INTO BETWEEN THE PARTICIPANT AND VIROPHARMA INCORPORATED
          (WHICH TERMS AND CONDITIONS MAY INCLUDE, WITHOUT LIMITATION, CERTAIN
          TRANSFER RESTRICTIONS, REPURCHASE RIGHTS AND FORFEITURE CONDITIONS).
          COPIES OF THAT PLAN AND AGREEMENT ARE ON FILE IN THE PRINCIPAL OFFICES
          OF VIROPHARMA INCORPORATED AND WILL BE MADE AVAILABLE TO THE HOLDER OF
          THIS CERTIFICATE WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF THE
          COMPANY.

Share certificates evidencing Restricted Shares will be held in custody by the
Company or in escrow by an escrow agent until the restrictions thereon have
lapsed.  As a condition to any Restricted Share Award, the Participant may be
required to deliver to the Company a share power, endorsed in blank, relating to
the Restricted Shares covered by such Award.

     6.5  Restrictions and Conditions.  Restricted Shares awarded pursuant to
          ---------------------------
this Article 6 will be subject to the following restrictions and conditions:

          a.   Except as provided in Section 6.6, the restrictions on Restricted
               Shares shall lapse in accordance with such conditions as the
               Board, the Committee, or the Award Committee shall determine,
               which conditions shall be stated in the Award Agreement and which
               may include the continued employment, engagement or service of
               the recipient for a period of time, the attainment of specified
               individual or corporate performance goals, or any other factors
               that the Board, the Committee, or the Award Committee selects, in
               its sole and absolute discretion.  During the period beginning on
               the date of an Award of Restricted Shares and ending when the
               restrictions on such Restricted Shares lapse as set forth in the
               Award Agreement or pursuant to Section 3.2(i) or Article 12 (the
               "Restriction Period"), the Participant will not be permitted to
                ------------------
               sell, transfer, pledge, assign or otherwise encumber such
               Restricted Shares.

                                       15
<PAGE>

          b.   During the Restriction Period, the Participant will be entitled
               to receive any cash distributions or dividends paid with respect
               to Restricted Shares and will be entitled to vote such Restricted
               Shares.  Consistent with Article 7, a Participant will be
               entitled to receive any distributions or dividends paid in the
               form of securities with respect to Restricted Shares, but such
               securities will be subject to the same terms and conditions as
               the Restricted Shares with respect to which they were paid,
               including, without limitation, the same Restriction Period.

          c.   If and when the restrictions on Restricted Shares lapse through
               the expiration of the Restriction Period or pursuant to Section
               3.2(i) or Article 12, the certificates for such Restricted Shares
               will be replaced with new certificates, without the restrictive
               legends described in Section 6.4 applicable to such lapsed
               restrictions, and such new certificates will be promptly
               delivered to the Participant, the Participant's representative
               (if the Participant has suffered a Disability), or the
               Participant's estate or heir (if the Participant has died) at the
               principal executive office of the Company or such other place as
               shall be mutually agreed upon between the Company and the
               Participant, the Participant's representative (if the Participant
               has suffered a Disability), or the Participant's estate or heir
               (if the Participant has died).

     6.6  Forfeiture.
          ----------

          a.   Except as otherwise provided herein or by the terms of any Award
               Agreement, upon the termination of a Participant's employment or
               other relationship with the Company for any reason, all of that
               Participant's Restricted Shares then subject to a Restriction
               Period will be forfeited.

          b.   Except as otherwise provided herein or by the terms of any Award
               Agreement, if an individual or corporate performance goal
               specified in an Award Agreement is not attained, and if it is not
               possible later to attain such goal, all of a Participant's
               Restricted Shares then subject to a Restriction Period linked to
               the attainment of such goal will be forfeited.

          c.   Restricted Shares may be forfeited at any time during the
               applicable Restriction Period by agreement between the Company
               and the Participant.

          d.   If a Participant has paid the Company for Restricted Shares that
               are subsequently forfeited, the Company shall refund to the
               Participant the amounts paid to it for the forfeited Restricted
               Shares in the same form as it was paid (or in cash at the
               Company's discretion).

7.   Adjustments

                                       16
<PAGE>

     7.1   Subject to required action by the stockholders, if any, the number of
Shares that may be granted under this Plan, including the individual limit
specified in Article 4, and the number of Shares subject to outstanding Awards
of Options and Restricted Shares and the exercise or, if applicable, purchase
prices thereof shall be adjusted proportionately for any increase or decrease in
the number of outstanding Shares of Common Stock of the Company resulting from
stock splits, reverse stock splits, stock dividends, reclassifications and
recapitalizations, merger, consolidation, exchange of shares, or any similar
change affecting Common Stock.

     7.2   No fractional Shares shall be issuable on account of any action
mentioned in Section 7.1, and the aggregate number of Shares into which Shares
then covered by the Award, when changed as the result of such action, shall be
increased to the next highest whole number of Shares resulting from such action,
provided that no such increase shall be made if such increase would cause an
Incentive Stock Option to lose its status as such without the consent of the
Participant.

8.   Time of Award

The date of an Award shall, for all purposes, be the date which the Board, the
Committee, or the Award Committee specifies when the Board, the Committee, or
the Award Committee makes its determination that an Award is made, or if none is
specified, then the date of such determination.  Notice of the determination
shall be given to each Eligible Person to whom an Award is made within a
reasonable time after the date of such Award.

9.   Modification, Extension and Renewal of Award

Subject to the terms and conditions of the Plan, the Board or the Committee may
modify, extend or renew an Award, or accept the surrender of an Award to the
extent that an Option under the Award has not already been exercised, or the
restrictions on Restricted Shares under the Award have not already lapsed.
Notwithstanding the foregoing:  (a) no modification of an Award that adversely
affects the Participant shall be made without the consent of the Participant,
and (b) no Incentive Stock Option may be modified, extended or renewed if such
action would cause it to cease to be an "Incentive Stock Option" within the
meaning of Section 422 of the Code, unless the Participant specifically
acknowledges and consents to the tax consequences of such action.

10.  Purchase for Investment and Other Restrictions

     10.1  The obligation of the Company to issue Shares to a Participant upon
the exercise of an Option or upon the Award of Restricted Shares granted under
the Plan is conditioned upon such issuance complying with all relevant
provisions of applicable law, including, without limitation, the Securities Act,
the Exchange Act, the rules and regulations promulgated thereunder and any
applicable foreign laws.

     10.2  At the option of the Board or the Committee, the obligation of the
Company to issue Shares to a Participant upon the exercise of an Option or upon
the Award of Restricted Shares granted under the Plan may be conditioned upon
obtaining appropriate representations,

                                       17
<PAGE>

warranties, restrictions and agreements of the Participant. Among other
representations, warranties, restrictions and agreements, the Participant may be
required to represent and agree that the purchase or receipt of Shares shall be
for investment, and not with a view to the public resale or distribution
thereof, unless the Shares are registered under the Securities Act and the
issuance and sale of the Shares complies with all other laws, rules and
regulations applicable thereto. Unless the issuance of such Shares is registered
under the Securities Act (and any similar law of a foreign jurisdiction
applicable to the Participant), the Participant shall acknowledge that the
Shares purchased are not registered under the Securities Act (or any such other
law) and may not be sold or otherwise transferred unless the Shares have been
registered under the Securities Act (or any such other law) in connection with
the sale or other transfer thereof, or that counsel satisfactory to the Company
has issued an opinion satisfactory to the Company that the sale or other
transfer of such Shares is exempt from registration under the Securities Act (or
any such other law), and unless said sale or transfer is in compliance with all
other applicable laws, rules and regulations, including all applicable federal,
state and foreign securities laws, rules and regulations. Unless the Shares
subject to an Award are registered under the Securities Act, the certificates
representing such Shares issued shall contain the following legend in
substantially the following form:

          THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY APPLICABLE STATE
          SECURITIES LAWS.  THESE SHARES HAVE NOT BEEN ACQUIRED WITH A VIEW TO
          DISTRIBUTION OR RESALE, AND MAY NOT BE SOLD, ASSIGNED, EXCHANGED,
          MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED
          OF, BY GIFT OR OTHERWISE, OR IN ANY WAY ENCUMBERED WITHOUT AN
          EFFECTIVE REGISTRATION STATEMENT FOR SUCH SHARES UNDER THE SECURITIES
          ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS, OR
          A SATISFACTORY OPINION OF COUNSEL SATISFACTORY TO VIROPHARMA
          INCORPORATED THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT AND
          UNDER APPLICABLE STATE SECURITIES LAWS.

If required under the laws of any jurisdiction in which the Participant resides,
the certificate or certificates may bear any such legend.

11.  Transferability

No Award shall be assignable or transferable otherwise than by will or by the
laws of descent and distribution.  During the lifetime of the Participant, the
Participant's rights regarding Awards shall be exercisable only by such
Participant, or, in the event of the legal incapacity or Disability of such
Participant, then by the Participant's legal guardian or representative.

12.  Change of Control

                                       18
<PAGE>

     12.1  Discontinuation of Plan and Non-Substitution of Shares.
           ------------------------------------------------------
Notwithstanding anything to the contrary set forth in this Plan other than
Section 12.3, if there is a Change of Control in which the Plan is not continued
by a successor corporation, and in which equivalent, substituted options for
common stock and substituted restricted shares in a successor corporation are
not provided to Participants, then the Plan shall be terminated and, for a
Participant who is an employee of the Company or any of its Subsidiaries or who
is a Director, all unvested options shall vest and restrictions on Restricted
Shares shall lift, as follows:

           a.  if the Participant has been employed by the Company or a
               Subsidiary or has been a Director for at least two years as of
               the Change of Control,  then:  (i) all of the Participant's
               unvested Options shall be fully and immediately vested and
               exercisable, and (ii) the restrictions on all of the
               Participant's Restricted Shares shall lapse and the Shares shall
               become nonforfeitable; and

           b.  if the Participant has been employed by the Company or a
               Subsidiary or has been a Director for less than two years as of
               the Change of Control, then:  (i) fifty percent (50%) of the
               Participant's unvested Options as of the date of the Change of
               Control shall be immediately vested and exercisable and the
               remaining portion of the Options which are not vested shall lapse
               and be forfeited, and (ii) the restrictions on fifty percent
               (50%) of all of the Participant's Restricted Shares subject to a
               Restriction Period as of the date of the Change of Control shall
               lapse and the remaining portion of such Restricted Shares shall
               be forfeited.

     12.2  Continuation of Plan or Substitution of Shares.  If there is a Change
           ----------------------------------------------
of Control in which the Plan is continued by a successor corporation or in which
equivalent substituted options for common stock and substituted restricted
shares in a successor corporation are provided to Participants, with respect to
Participants who are employees of the Company or any of its Subsidiaries or who
are Directors, Options shall vest and restrictions on Restricted Shares shall
lift as follows:

           a.  if a Participant who is employed by the Company is not offered
               substantially equivalent employment or service with the successor
               corporation or a related employer (both in terms of duties and
               compensation), then any unvested Options and Restricted Shares
               held by such Participant as of the date of the Change of Control
               shall be fully and immediately vested and exercisable and shall
               have restrictions lifted in accordance with Section 12.1(a) or
               12.1(b), as applicable, taking into account all service performed
               with the Company in any capacity for purposes of vesting; and

           b.  if any Participant is offered substantially equivalent employment
               or service with the successor corporation or a related employer
               (both in terms of duties and compensation), then Options and
               Restricted Shares shall not be subject to accelerated vesting;
               provided however, that if the

                                       19
<PAGE>

               Participant's employment with the successor corporation or
               related employer is terminated by the successor corporation or
               related employer during the six month period following such
               Change of Control, then any unvested Options and Restricted
               Shares or substituted options or restricted shares shall be fully
               and immediately vested and exercisable and have restrictions
               lifted at the date of the Participant's termination of employment
               in accordance with Section 12.1(a) or 12.1(b), as applicable,
               taking into account service performed with the Company and the
               successor corporation and all related employers for purpose of
               vesting.

     12.3  Notwithstanding Sections 12.1 and 12.2 hereof, any Participant who is
a "disqualified individual," as that term is defined in Section 280G(c) of the
Code, shall be notified by the Board or the Committee of any event that may
constitute a Change of Control in advance of the effective date of such Change
of Control. Notice shall be provided, in the sole discretion of the Committee,
as soon as reasonably practicable before the Change of Control. The disqualified
individual may refuse to accept accelerated vesting of his or her Award after
consideration of the tax consequences to such disqualified individual resulting
from the Change of Control, provided that any such refusal shall be communicated
to the Committee in writing before the Change of Control. If it is not
practicable to provide advance notice of such Change of Control, the
disqualified individual will be deemed to have elected to refuse such
acceleration, but only to the extent that it is determined, as soon as
practicable after the Change of Control, that accelerated vesting will result in
negative tax consequences under Section 280G of the Code.

     12.4  In addition to arranging for the exchange of Options for options to
purchase common stock in a successor corporation and the exchange of Restricted
Shares for similarly restricted shares of common stock in a successor
corporation, in the event of a Change of Control of the Company by reason of a
merger, consolidation or tax free reorganization or sale of all or substantially
all of the assets of the Company, the Board shall have the authority, in its
discretion, to terminate this Plan and (i) to distribute to each Participant
cash and/or other property in an amount equal to and in the same form as the
Participant would have received from the successor corporation if the
Participant had owned the Shares subject to the Option rather than the Option at
the time of the Change of Control, provided that any such amount paid to a
Participant shall reflect the deduction of the exercise price the Participant
would have paid to purchase such Shares and (ii) to redeem any Restricted Share
for cash and/or other property in an amount equal to and in the same form as the
Participant would have received from the successor corporation if the
Participant had owned the Restricted Shares at the time of the Change in
Control.  The form of payment or distribution to the Participant pursuant to
this Section shall be determined by the Committee.

13.  Amendment of the Plan

Insofar as permitted by law and the Plan, and subject to Section 15.2, the Board
or the Committee may from time to time suspend, terminate or discontinue the
Plan or revise or amend it in any respect whatsoever with respect to any Shares
at the time not subject to an Award, including amendments necessary or advisable
to assure that the Incentive Stock Options, non-

                                       20
<PAGE>

qualified stock options and Restricted Shares available under the Plan continue
to be treated as such, respectively, under all applicable laws.

14.  Application of Funds

The proceeds received by the Company from the sale of Shares pursuant to the
exercise of Options and any sale of Restricted Shares shall be used for general
corporate purposes or such other purpose as may be determined by the Board.

15.  Approval of the Plan

     15.1  Effective Date of Plan.  This amendment and restatement of the Plan
           ----------------------
shall become effective on the date that it is adopted by the Board.

     15.2  Stockholder Approval of Certain Amendments.
           -------------------------------------------

           a.  If the Board or the Committee amends the Plan to increase the
               aggregate number of Shares for which Awards may be awarded
               hereunder, and approval of the stockholders by a majority of the
               votes cast at a duly held stockholder meeting at which a quorum
               representing a majority of the Company's outstanding voting
               shares is present (either in person or by proxy), is not obtained
               within twelve (12) months of the adoption of such amendment, all
               Awards with respect to such increased number of shares shall
               lapse automatically on the first anniversary of the date of the
               adoption of such amendment.

           b.  If the Board or the Committee amends the Plan to change the
               designation of the class of employees eligible to receive
               Options, and approval of the stockholders by a majority of the
               votes cast at a duly held stockholder meeting at which a quorum
               representing a majority of the Company's outstanding voting
               shares is present (either in person or by proxy), is not obtained
               within twelve (12) months of the adoption of such amendment, all
               Incentive Stock Options awarded after the date of such adoption
               automatically shall be converted into non-qualified stock options
               on the first anniversary of the date of the adoption of such
               amendment.

           c.  Section 5.2(b) of the Plan may not be amended to permit the grant
               of Options with an exercise price below Fair Market Value or to
               permit outstanding Options to be repriced unless such amendment
               is approved by the stockholders by a majority of the votes cast
               at a duly held stockholder meeting at which a quorum representing
               a majority of the Company's outstanding voting shares is present
               (either in person or by proxy).

16.  Conditions Upon Issuance of Shares

                                       21
<PAGE>

Shares shall not be issued pursuant to the exercise of an Option or grant of
Restricted Shares unless the exercise of such Option or grant of such Restricted
Shares and the issuance and delivery of such Shares pursuant thereto shall
comply with all relevant provisions of law, including, without limitation, the
Securities Act, the Exchange Act, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the Shares may
then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

17.  Reservation of Shares

     17.1  The Company, during the term of this Plan, shall at all times reserve
and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

     17.2  The Company, during the term of this Plan, shall use its best efforts
to seek to obtain from appropriate regulatory agencies any requisite
authorization in order to issue and sell such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.  The inability of the
Company to obtain from any such regulatory agency having jurisdiction the
requisite authorization(s) deemed by the Company's counsel to be necessary for
the lawful issuance and sale of any Shares hereunder, or the inability of the
Company to confirm to its satisfaction that any issuance and/or sale of any
Shares hereunder will meet applicable legal requirements, shall relieve the
Company of any liability in respect to the failure to issue or sell such Shares
as to which such requisite authority shall not have been obtained.

18.  Taxes, Fees, Expenses and Withholding of Taxes

     18.1  The Company shall pay all original issue and transfer taxes (but not
income taxes, if any) with respect to the award of Options and Restricted Shares
and/or the issue and transfer of Shares pursuant to the exercise of Options, and
all other fees and expenses necessarily incurred by the Company in connection
therewith, and will use its best efforts to comply with all laws and regulations
that, in the opinion of counsel for the Company, shall be applicable thereto.

     18.2  The granting of Awards hereunder and the issuance of Shares pursuant
to the grant of Restricted Shares and the exercise of Options is conditioned
upon the Company's reservation of the right to withhold in accordance with any
applicable law, from any compensation or other amounts payable to the
Participant, any taxes required to be withheld under federal, state or local law
as a result of:  the grant of an Award, the vesting of an Option, the exercise
of an Option, the lapse of restrictions with respect to Restricted Shares, or
the sale of Shares.  To the extent that compensation or other amounts, if any,
payable to the Participant is insufficient to pay any taxes required to be so
withheld, the Company may, in its sole discretion, require the Participant (or
such other person entitled herein to exercise the rights associated with such
Award), as a condition of the exercise of an Option or grant of Restricted
Shares, to pay in cash to the Company an amount sufficient to cover such tax
liability or otherwise to make adequate provision for the Company's satisfaction
of its withholding obligations under federal, state and local law, provided that
such satisfaction of tax liability is made within 60 days of the date on which
written notice of exercise has been given to the Company.  With respect to

                                       22
<PAGE>

Restricted Shares, the minimum required withholding obligations may be settled
in Shares that are part of the Award that gives rise to the withholding
requirement.

19.  Miscellaneous

     19.1  Notices.  Any notice to be given to the Company pursuant to the
           -------
provisions of this Plan shall be addressed to the Company in care of its
Secretary (or such other person as the Company may designate from time to time)
at its principal executive office, and any notice to be given to a Participant
shall be delivered personally or addressed to him or her at the address given
beneath his or her signature on his or her Award Agreement, or at such other
address as such Participant or his or her permitted transferee (upon the
permitted transfer) may hereafter designate in writing to the Company.  Any such
notice shall be deemed duly given on the date and at the time delivered via hand
delivery, courier or recognized overnight delivery service or, if sent via
telecopier, on the date and at the time telecopied with confirmation of delivery
or, if mailed, on the date five (5) days after the date of the mailing (which
shall be by regular, registered or certified mail).  Delivery of a notice by
telecopy (with confirmation) shall be permitted and shall be considered delivery
of a notice notwithstanding that it is not an original that is received.  It
shall be the obligation of each Participant and each permitted transferee
holding Shares purchased upon exercise of an Option or granted pursuant to an
Award of Restricted Shares to provide the Secretary of the Company, by letter
mailed as provided herein, with written notice of his or her direct mailing
address.

     19.2  No Enlargement of Participant Rights.  This Plan is purely voluntary
           ------------------------------------
on the part of the Company, and the continuance of the Plan shall not be deemed
to constitute a contract between the Company and any Participant, or to be
consideration for or a condition of the employment or service of any
Participant.  Nothing contained in this Plan shall be deemed to give any
Participant the right to be retained in the employ or service of the Company or
any Subsidiary, or to interfere with the right of the Company or any such
corporation to discharge or retire any Participant thereof at any time subject
to applicable law.  No Participant shall have any right to or interest in Awards
authorized hereunder prior to the award thereof to such Participant, and upon
such Award the Participant shall have only such rights and interests as are
expressly provided herein, subject, however, to all applicable provisions of the
Company's Certificate of Incorporation, as the same may be amended from time to
time.

     19.3  Information to Participants.  The Company, upon request, shall
           ---------------------------
provide without charge to each Participant copies of such annual and periodic
reports as are provided by the Company to its stockholders generally.

     19.4  Availability of Plan.  A copy of this Plan shall be delivered to the
           --------------------
Secretary of the Company and shall be shown by him to any eligible person making
reasonable inquiry concerning it.

     19.5  Section Headings.  The descriptive headings of this Plan are for
           ----------------
convenience only, and shall be of no force or effect in construing or
interpreting any of the provisions of this Plan.

                                       23
<PAGE>

     19.6  Invalid Provisions.  If any provision of this Plan is found to be
           ------------------
invalid or otherwise unenforceable under any applicable law, such invalidity or
unenforceability shall not be construed to render any other provisions contained
herein as invalid or unenforceable, and all such other provisions shall be given
full force and effect to the same extent as though the invalid or unenforceable
provision were not contained herein.

     19.7  Applicable Law.  This Plan shall be governed by and construed in
           --------------
accordance with the laws of the Commonwealth of Pennsylvania, without regard to
the conflict of law principles of Pennsylvania or any other jurisdiction.

           Executed this 14th day of November, 2001.

[Corporate Seal]                             VIROPHARMA INCORPORATED

Attest:  /s/ Thomas F. Doyle                 By:   /s/ Michel de Rosen
         ---------------------------             ------------------------------

                                       24
<PAGE>

                            VIROPHARMA INCORPORATED
                           RESTRICTED SHARE AGREEMENT
                           --------------------------

     This is a Restricted Share Agreement dated ____________________ between
ViroPharma Incorporated (the "Company") and _________________________
("Participant").

     1.  Definitions.  As used herein:
         -----------

         (a) "Award" means the award of Restricted Shares hereby granted.
              -----

         (b) "Board" means the Board of Directors of the Company.
              -----

         (c) "Code" means the Internal Revenue Code of 1986, as amended.
              ----

         (d) "Date of Grant" means the date first set forth above, on which the
              -------------
Company awarded the Restricted Shares.

         (e) "Employer" means the Company or the Subsidiary for which
              --------
Participant is performing services on the Vesting Date.

         (f) "Plan" means the ViroPharma Incorporated Stock Option and
              ----
Restricted Share Plan, incorporated herein by reference.

         (g) "Restriction Period" means, with respect to each Restricted Share,
              ------------------
the period beginning on the Date of Grant and ending on the Vesting Date.

         (h) "Restricted Shares" means the _____ Shares which are the subject
              -----------------
of the Award.

         (i) "Shares" means shares of the Company's common stock, par value
              ------
$.002 per share.

         (j) "Vesting Date" means the date on which the restrictions imposed
              ------------
under Section 4 on Restricted Shares lapse, as provided in Section 5.

     2.  Grant of Restricted Shares.  Subject to the terms and conditions set
         --------------------------
forth herein and in the Plan, the Company hereby grants to Participant the
Restricted Shares.

     3.  Payment for Restricted Shares.  As a condition of the Award, the
         -----------------------------
Participant shall be required to pay [$___] for each Restricted Share.  Payment
shall be due within [10] business days following provision of this Award
Agreement to the Participant.  Payment may be made in
<PAGE>

the form of (a) cash, (b) personal or certified check, or (c) by surrendering
Shares with an aggregate Fair Market Value per Share equal to the aggregate
price payable for the Restricted Shares, or (d) by delivering such combination
of Shares and cash as the Board or the Committee may, in its sole discretion,
approve, provided that the surrender of Shares shall be subject to such further
conditions and restrictions as provided in the Plan.

     4.  Restrictions on Restricted Shares.  Subject to the terms and conditions
         ---------------------------------
set forth herein and in the Plan, during the Restriction Period, Participant
shall not be permitted to sell, transfer, pledge, assign or otherwise encumber
the Restricted Shares.  The Company shall maintain possession of the
certificates respecting the Restricted Shares in escrow during the Restriction
Period.  Share certificates for the Restricted Shares shall bear the following
legend:

         "THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES REPRESENTED
         HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS OF THE VIROPHARMA
         INCOPORATED STOCK OPTION AND RESTRICTED SHARE PLAN AND AN AGREEMENT
         ENTERED INTO BETWEEN THE PARTICIPANT AND VIROPHARMA INCORPORATED
         (WHICH TERMS AND CONDITIONS MAY INCLUDE, WITHOUT LIMITATION, CERTAIN
         TRANSFER RESTRICTIONS, REPURCHASE RIGHTS AND FORFEITURE CONDITIONS).
         COPIES OF THAT PLAN AND AGREEMENT ARE ON FILE IN THE PRINCIPAL OFFICES
         OF VIROPHARMA INCORPORATED AND WILL BE MADE AVAILABLE TO THE HOLDER OF
         THIS CERTIFICATE WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF THE
         COMPANY."

     5.  Lapse of Restrictions.
         ---------------------

         (a) Subject to the terms and conditions set forth herein and in the
Plan, the restrictions set forth in Section 4 on each Restricted Share that has
not been forfeited shall lapse on the Vesting Date; provided, however, that on
the Vesting Date, Participant is, and has from the Date of Grant continuously
been, an employee of the Employer during the Restriction Period.

         (b) Subject to Section 5(a), a Vesting Date for Restricted Shares
subject to the Award shall occur in accordance with the following schedule:

             (i)    As to _____ Restricted Shares, __________________.

             (ii)   As to an additional _____ Restricted Shares,
                    ____________________.

             (iii)  As to an additional _____ Restricted Shares,
                    ____________________.

                                      -2-
<PAGE>

     6.  Forfeiture of Restricted Shares.
         -------------------------------

         (a) Subject to the terms and conditions set forth herein and in the
Plan, if Participant terminates employment with the Employer during the
Restricted Period for any reason, Participant shall forfeit the Restricted
Shares as of such termination of employment.  Upon a forfeiture of the
Restricted Shares as provided in this Section 6, the Restricted Shares shall be
deemed canceled, and the amount paid for such shares shall be refunded promptly.

         (b) The provisions of this Section 6 shall not apply to Restricted
Shares as to which the restrictions of Section 4 have lapsed.

     7.  Rights of Participant.  During the Restriction Period, with respect to
         ---------------------
Restricted Shares which have not been forfeited, Participant shall have the
right to vote the Restricted Shares, and receive cash dividends with respect to
the Restricted Shares.  Stock dividends payable with respect to Restricted
Shares shall be subject to the same restrictions under this Agreement as the
Restricted Shares with respect to which such stock dividends were issued.

     8.  Notices.  Any notice to the Company under this Agreement shall be made
         -------
in care of the Secretary at the Company's main office in Exton, PA.  All notices
under this Agreement shall be deemed duly given on the date and at the time
delivered via hand delivery, courier or recognized overnight delivery service
or, if sent via telecopier, on the date and at the time telecopied with
confirmation of delivery or, if mailed, on the date five (5) days after the date
of the mailing (which shall be by regular, registered or certified mail).  All
notices shall be irrevocable once given.

     9.  Securities Laws.  The Board or Committee may from time to time impose
         ---------------
any conditions on the Restricted Shares as it deems necessary or advisable to
ensure that Shares are issued and resold in compliance with applicable federal
and state securities laws.

     10. Delivery of Shares.  Promptly following a Vesting Date, the Company
         ------------------
shall, without payment from Participant for the Restricted Shares, deliver to
Participant a certificate for the Restricted Shares without any legend or
restrictions, except for such restrictions as may be imposed by the Board or
Committee, in its sole judgment, under Section 9, provided that no certificates
for Shares will be delivered to Participant until appropriate arrangements have
been made for the withholding of any taxes which may be due with respect to such
Shares.  The Company may condition delivery of certificates for Shares upon the
prior receipt from Participant of any undertakings which it may determine are
required to assure that the certificates are being issued in compliance with
federal and state securities laws.  The right to payment of any fractional
Shares shall be satisfied in cash, measured by the product of the fractional
amount times the Fair Market Value Per Share on the Vesting Date, as determined
by the Board or Committee.

     11. Award Not to Affect Employment.  The Award granted hereunder shall not
         ------------------------------
confer upon Participant any right to continue in the employment of the Employer.

                                      -3-
<PAGE>

     12. Miscellaneous.
         -------------

         (a) The address for Participant to which notice, demands and other
communications to be given or delivered under or by reason of the provisions
hereof shall be the Participant's address as reflected in the Company's
personnel records.

         (b) The validity, performance, construction and effect of this Award
shall be governed by the laws of the Commonwealth of Pennsylvania, without
giving effect to principles of conflicts of law.

                                       VIROPHARMA INCORPORATED

                                       BY: ________________________________

                                       ATTEST:  ____________________________

                                       ____________________________________
                                       PARTICIPANT

                                       ____________________________________
                                       WITNESS

                                      -4-
<PAGE>

                            VIROPHARMA INCORPORATED
                          RESTRICTED SHARE AGREEMENT
                          --------------------------

     This is a Restricted Share Agreement dated ____________________ between
ViroPharma Incorporated (the "Company") and _________________________
("Participant").

     1.  Definitions.  As used herein:
         -----------

         (a) "Award" means the award of Restricted Shares hereby granted.
              -----

         (b) "Board" means the Board of Directors of the Company.
              -----

         (c) "Code" means the Internal Revenue Code of 1986, as amended.
              ----

         (d) "Date of Grant" means the date first set forth above, on which the
              -------------
Company awarded the Restricted Shares.

         (e) "Employer" means the Company or the Subsidiary for which
              --------
Participant is performing services on the Vesting Date.

         (f) "Plan" means the ViroPharma Incorporated Stock Option and
              ----
Restricted Share Plan, incorporated herein by reference.

         (g) "Restriction Period" means, with respect to each Restricted Share,
              ------------------
the period beginning on the Date of Grant and ending on the Vesting Date.

         (h) "Restricted Shares" means the _____ Shares which are the subject
              -----------------
of the Award.

         (i) "Shares" means shares of the Company's common stock, par value
              ------
$.002 per share.

         (j) "Vesting Date" means the date on which the restrictions imposed
              ------------
under Section 3 on Restricted Shares lapse, as provided in Section 4.

     2.  Grant of Restricted Shares.  Subject to the terms and conditions set
         --------------------------
forth herein and in the Plan, the Company hereby grants to Participant the
Restricted Shares.

     3.  Restrictions on Restricted Shares.  Subject to the terms and conditions
         ---------------------------------
set forth herein and in the Plan, during the Restriction Period, Participant
shall not be permitted to sell, transfer, pledge, assign or otherwise encumber
the Restricted Shares.  The Company shall
<PAGE>

maintain possession of the certificates respecting the Restricted Shares in
escrow during the Restriction Period. Share certificates for the Restricted
Shares shall bear the following legend:

         "THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES REPRESENTED
         HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS OF THE VIROPHARMA
         INCOPORATED STOCK OPTION AND RESTRICTED SHARE PLAN AND AN AGREEMENT
         ENTERED INTO BETWEEN THE PARTICIPANT AND VIROPHARMA INCORPORATED
         (WHICH TERMS AND CONDITIONS MAY INCLUDE, WITHOUT LIMITATION, CERTAIN
         TRANSFER RESTRICTIONS, REPURCHASE RIGHTS AND FORFEITURE CONDITIONS).
         COPIES OF THAT PLAN AND AGREEMENT ARE ON FILE IN THE PRINCIPAL OFFICES
         OF VIROPHARMA INCORPORATED AND WILL BE MADE AVAILABLE TO THE HOLDER OF
         THIS CERTIFICATE WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF THE
         COMPANY."

     4.  Lapse of Restrictions.
         ---------------------

         (a) Subject to the terms and conditions set forth herein and in the
Plan, the restrictions set forth in Section 3 on each Restricted Share that has
not been forfeited shall lapse on the Vesting Date; provided, however, that on
the Vesting Date, Participant is, and has from the Date of Grant continuously
been, an employee of the Employer during the Restriction Period.

         (b) Subject to Section 4(a), a Vesting Date for Restricted Shares
subject to the Award shall occur in accordance with the following schedule:

             (i)    As to _____ Restricted Shares, __________________.

             (ii)   As to an additional _____ Restricted Shares,
                    ____________________.

             (iii)  As to an additional _____ Restricted Shares,
                    ____________________.

     5.  Forfeiture of Restricted Shares.
         -------------------------------

         (a) Subject to the terms and conditions set forth herein and in the
Plan, if Participant terminates employment with the Employer during the
Restricted Period for any reason, Participant shall forfeit the Restricted
Shares as of such termination of employment.  Upon a forfeiture of the
Restricted Shares as provided in this Section 5, the Restricted Shares shall be
deemed canceled.

         (b) The provisions of this Section 5 shall not apply to Restricted
Shares as to which the restrictions of Section 3 have lapsed.

                                      -2-
<PAGE>

     6.  Rights of Participant.  During the Restriction Period, with respect to
         ---------------------
Restricted Shares which have not been forfeited, Participant shall have the
right to vote the Restricted Shares, and receive cash dividends with respect to
the Restricted Shares.  Stock dividends payable with respect to Restricted
Shares shall be subject to the same restrictions under this Agreement as the
Restricted Shares with respect to which such stock dividends were issued.

     7.  Notices.  Any notice to the Company under this Agreement shall be made
         -------
in care of the Secretary at the Company's main office in Exton, PA.  All notices
under this Agreement shall be deemed duly given on the date and at the time
delivered via hand delivery, courier or recognized overnight delivery service
or, if sent via telecopier, on the date and at the time telecopied with
confirmation of delivery or, if mailed, on the date five (5) days after the date
of the mailing (which shall be by regular, registered or certified mail).  All
notices shall be irrevocable once given.

     8.  Securities Laws.  The Board or Committee may from time to time impose
         ---------------
any conditions on the Restricted Shares as it deems necessary or advisable to
ensure that Shares are issued and resold in compliance with applicable federal
and state securities laws.

     9.  Delivery of Shares.  Promptly following a Vesting Date, the Company
         ------------------
shall, without payment from Participant for the Restricted Shares, deliver to
Participant a certificate for the Restricted Shares without any legend or
restrictions, except for such restrictions as may be imposed by the Board or
Committee, in its sole judgment, under Section 8, provided that no certificates
for Shares will be delivered to Participant until appropriate arrangements have
been made for the withholding of any taxes which may be due with respect to such
Shares.  The Company may condition delivery of certificates for Shares upon the
prior receipt from Participant of any undertakings which it may determine are
required to assure that the certificates are being issued in compliance with
federal and state securities laws.  The right to payment of any fractional
Shares shall be satisfied in cash, measured by the product of the fractional
amount times the Fair Market Value Per Share on the Vesting Date, as determined
by the Board or Committee.

     10. Award Not to Affect Employment.  The Award granted hereunder shall not
         ------------------------------
confer upon Participant any right to continue in the employment of the Employer.

     11. Miscellaneous.
         -------------

         (a) The address for Participant to which notice, demands and other
communications to be given or delivered under or by reason of the provisions
hereof shall be the Participant's address as reflected in the Company's
personnel records.

         (b) The validity, performance, construction and effect of this Award
shall be governed by the laws of the Commonwealth of Pennsylvania, without
giving effect to principles of conflicts of law.

                                      -3-
<PAGE>

                                       VIROPHARMA INCORPORATED

                                       BY:     ____________________________

                                       ATTEST: ____________________________

                                       ____________________________________
                                       PARTICIPANT

                                       ____________________________________
                                       WITNESS

                                      -4-
<PAGE>

                       INCENTIVE STOCK OPTION AGREEMENT

     THIS AGREEMENT made and entered into this xxx day of xxx, 200x, between,
ViroPharma Incorporated, a Delaware corporation (the "Corporation"), and xxx
(the "Employee").

                                   WITNESSETH

     WHEREAS, the Employee will serve as an employee of the Corporation, and

     WHEREAS, the Corporation has determined to afford the Employee the right to
purchase ("Option") xxx shares of its common stock, $0.002 par value ("Common
Stock"), under the terms set forth herein and subject to the terms and
provisions of the Corporation's 1995 Stock Option Plan (the "Plan") which terms
are incorporated herein by reference.

     NOW, THEREFORE, for good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto agree as follows:

Section 1.  Definitions.  All capitalized terms used herein that are not defined
herein shall have the respective meanings set forth in the Plan.  The terms set
forth below shall have the following meanings:

     (a) Fair Value Per Share shall mean, as of the date of determination, the
         --------------------
fair market value of each Share (including, in the case of any repurchase of
Shares, any distributions with respect thereto which would be repurchased with
Shares) determined in good faith by the members of the Board of Directors of the
Corporation or any stock option committee thereof.

     (b) Group shall mean:
         -----

         (i)   the Employee;
         (ii)  the spouse, parents, siblings and lineal descendants of the
               Employee;
         (iii) a trust for the benefit of any of the foregoing; and
         (iv)  any distributee, legatee or devisee of the Employee who agrees
               in writing to be bound by and comply with this Agreement to the
               same extent as the Employee.

     (c) Proportionate Percentage shall mean the percentage figure which
         ------------------------
expresses the ratio, based upon voting power, between the number of shares of
outstanding Common and Preferred Stock of the Corporation owned by a Stockholder
and the aggregate number of such shares of outstanding Common and Preferred
Stock owned by all Stockholders.

                                       1
<PAGE>

     (d) Sell, as to any Share, shall mean to sell, or in any other way,
         ----
directly or indirectly, to transfer, assign, distribute, encumber or otherwise
dispose of, either voluntarily or involuntarily; provided, however, that the
Employee shall not be deemed to Sell the Shares if such Shares are transferred
to a member of the Group and such member agrees to be bound by the terms of this
Agreement to the same extent as the Employee.

     (e) Selling Group shall collectively mean the Employee and each member of
         -------------
his/her Group that proposes to Sell any of the Shares, or which has delivered a
Selling Notice, pursuant to Section 12 hereof.

     (f) Shares shall mean the Option Shares (as defined in Section 2 below) and
         ------
any other shares of the Corporation's Common Stock acquired by the Employee
either by the Employee's exercise of stock options or otherwise.

     (g) Stockholders shall mean, collectively, the holders of the Preferred
         ------------
Stock of the Corporation.

     (h) Termination shall mean, collectively, a Termination For Cause, a
         -----------
Termination Without Cause, an Involuntary Termination, and a Voluntary
Termination, as defined below:

         (i)   Termination For Cause.  The Company may immediately terminate the
               ---------------------
employment of the Employee hereunder at any time for "Cause" (such termination
being hereinafter called a "Termination For Cause") upon giving the Employee
notice of such termination.  "Cause" shall mean:

               (a) the Employee's misconduct with respect to the business and
affairs of the Corporation or any subsidiary of affiliate thereof;

               (b) the Employee's unsatisfactory performance of the duties
assigned to the Employee with respect to the business or affairs of the
Corporation or any subsidiary of affiliate thereof;

               (c) the Employee's material breach of any Confidentiality
Agreement between the Employee and the Corporation;

               (d) the commission by the Employee of an act involving fraud,
theft, embezzlement, forgery or moral turpitude; or

               (e) the Employee's conviction of any crime.

         (ii)  Termination Without Cause.  The Corporation may immediately
               -------------------------
terminate the employment of the Employee hereunder at any time without "Cause"
(such termination being hereinafter called a "Termination Without Cause") upon
giving the Employee notice of such termination.

                                       2
<PAGE>

         (iii) Involuntary Termination.  If the Employee dies or has a
               -----------------------
Disability, then:

               (a) in the case of death, the Employee's employment shall be
deemed to terminate on the date of the Employee's death; and

               (b) in the case of a Disability, the Corporation, at its
option, may terminate the employment of the Employee immediately upon giving the
Employee notice to that effect. Termination pursuant to this Subsection (iii) is
hereinafter referred to as an "Involuntary Termination."

         (iv) Voluntary Termination.  Any termination of the employment of the
              ---------------------
Employee hereunder other than as a result of an Involuntary Termination, a
Termination For Cause, or a Termination Without Cause, will be deemed to be a
"Voluntary Termination."  Voluntary Termination will be deemed to be effective
immediately upon such termination.

Section 2.  Grant of Option.  The Corporation hereby grants to the Employee an
Option to purchase any or all of an aggregate of xxx shares of Common Stock
("Option Shares"), subject to the terms and conditions hereinafter set forth.
The Option is intended to be an incentive stock option within the meaning of
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code").

Section 3.  Exercise Price.  The purchase price of the Option Shares shall be
$xx.xx per share ("Exercise Price").

Section 4.  Vesting; Term of the Option.

     (a) Subject to the Employee's continued employment by the Corporation, the
Option shall become exercisable as set forth on the Milestone Schedule attached
hereto as Exhibit A, unless the Board of Directors accelerates such date or
dates in its discretion or as otherwise provided herein, or in the Plan.

     (b) The term of each Option shall mean the period of ten (10) years from
the date on which the Option is granted, or such shorter period as provided in
this Section or Sections 6 or 8 below.

     (c) Notwithstanding anything contained in Section 4(b) to the contrary, if
the Employee owns, directly or indirectly (within the meaning of Sections
422(b)(6) and 424(d) of the Code), stock possessing more than 10% of the total
combined voting power of all classes of stock of the Corporation or of its
parent, if any, or any of its subsidiaries, if any, then the term of the Option
shall be five years from the date that the Option is granted, or such shorter
period as provided in this Section or Sections 6 or 8 below.

                                       3
<PAGE>

     (d) The Employee shall not have any rights of a stockholder with respect to
any Option Shares until such Option Shares are issued to him/her upon the
exercise of the Option.

Section 5.  Exercise of the Option.  Subject to the terms and conditions of this
Agreement, the Option may be exercised by delivering a Notice to the Corporation
as set forth in the Plan.  The Notice shall be accompanied by payment in full of
the aggregate Exercise Price for the Option Shares to be purchased by cash or by
personal or certified check payable to the Corporation.  The Corporation shall
issue and deliver certificate(s) representing such Option Shares to the employee
(or his/her personal representative in the event of the employee's death or
disability) as soon as practicable after such notice and payment are received.
The certificate(s) representing such Option Shares shall be registered in the
name of the Employee (or the Employee's personal representative in the event of
the Employee's death or disability).  All Option Shares purchased upon exercise
of the Option in accordance with this Section shall be fully paid and
nonassessable.

Section 6.  Termination of Employment.  The Option, to the extent exercisable
immediately prior to Termination and not theretofore exercised, shall terminate
90 days after the date of a Termination other than an Involuntary Termination,
and Shall terminate 12 months after an Involuntary Termination; provided that if
the Employee shall commence any employment or engagement during such 90 day
period after the date of a Termination other than an Involuntary Termination, or
during such 12 month period after the date of an Involuntary Termination due to
a Disability, with or by a competitor of the Company (including, but not limited
to, full or part-time employment or independent consulting work), as determined
solely in the judgment of the Board, all Options held by such Employee which
have not yet been exercised shall terminate immediately upon the commencement
thereof.  Notwithstanding the foregoing, the Option shall terminate and be
without force and effect immediately upon Termination with respect to the Option
Shares for which the Option is not yet exercisable as provided in Section 4
above.

Section 7.  Restriction on Transfer.  Except as set forth in the Plan, the
Employee may not sell, transfer, pledge, assign or hypothecate the Option.  The
Option may be exercised only by the Employee (or the Employee's personal
representative in the event of the Employee's death or Disability).  The Option
shall not be subject to execution, attachment or similar process.  Any attempted
sale, assignment, transfer, pledge, hypothecation or other disposition of the
Option contrary to the provisions hereof, and the levy of any execution,
attachment or similar process upon the Option, shall be null and void and
without effect.

Section 8.  Repurchase of Shares.

     (a) In the event of a Termination For Cause, the Corporation shall have the
right to purchase from the Employee and each member of the Group, and the
Employee and such members of the Group shall sell to the Corporation upon the

                                       4
<PAGE>

exercise of such right, at a purchase price per share equal to the cost of each
Share to the Employee, all of the Shares owned by the Employee or any such
members of the Group.

     (b) In the event of a Termination Without Cause, a Voluntary Termination or
an Involuntary Termination, the Corporation shall have the right to purchase
from the Employee and each member of the Group, and the Employee and such
members of the Group shall sell to the Corporation upon the exercise of such
right, at a purchase price per share equal to the Fair Market Value Per Share,
all of the Shares owned by the Employee or such members of the Employee's Group.

     (c) In order to exercise the Option to purchase Shares under this
Section 8, the Corporation shall deliver a written notice to the Employee
indicating its election to purchase such Shares and specifying the number of
Shares which it elects to purchase and the purchase price therefor. The
repurchase of Shares hereunder shall be made on a date within 90 days after the
Termination by delivery of payment to the Employee, by check or wire transfer,
against receipt of one or more certificates, properly endorsed, evidencing the
Shares to be so repurchased.

     (d) If the Corporation elects not to exercise its rights pursuant to this
Section 8 or if the Corporation is legally prohibited from or unable to
repurchase the Shares, it shall notify the Employee and each Stockholder within
the 30-day period following the Termination of the Employee.  In such event,
each Stockholder shall have the right, during the 30-day period following the
Corporation's notice, to purchase such Stockholder's Proportionate Percentage of
the Shares on the same terms and conditions as were applicable to the
Corporation, which right shall be exercised by giving written notice of
acceptance to the Corporation specifying the number of Shares which such
Stockholder elects to purchase and the purchase price therefor.

     (e) The Stockholders shall have a right of oversubscription such that
if any Stockholder fails to purchase its, his or her full Proportionate
Percentage, the remaining Stockholders shall, among them, have the right to
purchase up to the balance of the Shares not so purchased. Such right of
oversubscription may be exercised by such Stockholder by accepting the offer as
to more than its, his or her Proportionate Percentage. If, as a result thereof,
such oversubscriptions exceed the total number of Shares available in respect of
such oversubscription privilege, the oversubscribing Stockholders shall be
reduced with respect to their oversubscription so as to sell the Shares as
nearly as possible in accordance with their respective Proportionate Percentages
or as they may otherwise agree among themselves. In all instances, the
Stockholders shall have the right to purchase only such Shares as are not
purchased by the Corporation.

Section 9.  Withholding.

     (a) Upon the request of the Corporation, the employee shall promptly pay to
the Corporation, or make arrangement satisfactory to the Corporation regarding

                                       5
<PAGE>

payment of, any Federal, state or local taxes of any kind required by law to be
withheld with respect to the Shares (or any distributions of other securities or
property, including cash, thereon or issued in replacement thereof).

     (b) In order to effect Section 9(a) above,

         (i)   the Corporation shall, to the extent permitted by law, have
the right to deduct from any payments of any kind otherwise due to the Employee
any Federal, state or local taxes of any kind required by law to be withheld
with respect to the Shares; and

         (ii)  if payment of the required tax is not made, the Corporation
may, at its option, redeem and cancel at the rate of the Fair Value Per Share, a
sufficient number of Shares to pay any tax required to be withheld.

Section 10.  Escrow Arrangement; Distributions; Rights as a Stockholder.  All of
the certificates representing any Shares, duly endorsed in blank or with undated
stock powers attached thereto, shall be held in escrow by the Corporation until
such Shares are wither repurchased by the Corporation as provided herein or
delivered, together with such stock powers, if any, to the employee on such
date (the "Termination Date") as the Shares are no longer subject to repurchase
under this Agreement. All dividends (other than cash dividends) or other
distributions paid or made with respect to the Shares shall be accumulated and
held in escrow by the Corporation for the benefit of the employee without
interest and will be paid over to the Employee on the Termination Date to the
extent such dividends or other distributions have not become the sole property
of the Corporation as provided in the following sentence. Any cash dividends
paid with respect to such Shares shall be paid to the Employee and shall be the
sole property of the employee. Except for the restrictions contained in this
Agreement, the Employee shall have the rights as a stockholder of the Shares,
subject to any limitations imposed thereon by the Certificate of Incorporation
of the Corporation.

Section 11.  Representations and Warranties of the Employee.

     (a) The Employee hereby represents and warrants to the Corporation that
he/she is acquiring the Option, and upon exercise of the Option will acquire and
Option Shares, for the employee's own account, for investment, and not with a
view to the distribution thereof.

     (b) The Employee understands that the Option Shares will not be registered
under the Securities Act of 1933 ("1933 Act") or any state securities or blue
sky laws, by reason of their issuance in a transaction exempt from the
registration requirements of the 1933 Act and that such Option Shares must be
held indefinitely unless a subsequent disposition thereof is registered under
the 1933 Act and any applicable state securities or blue sky laws, or the
transaction is exempt from such registration.

                                       6
<PAGE>

     (c) The Employee understands that the exemption afforded by Rule 144
promulgated under the 1933 Act depends on the satisfaction of various conditions
and that, if available, Rule 144 affords the basis for sales of the Option
Shares only in limited amounts and under limited circumstances, which may not
occur or be in existence.

Section 12.  Procedures on Sale of Stock to Third Parties.  Except as otherwise
expressly provided herein, the Employee agrees that neither he/she nor any
member of the Group shall Sell any Shares, except pursuant to Section 8 hereof
or in accordance with the following procedures:

     (a) The Selling Group shall first deliver to the Corporation a written
notice, which shall be irrevocable for a period of up to 120 days after delivery
thereof, offering that number of Shares which the Selling Group wishes to Sell
at the purchase price and on the terms specified therein ("Selling Notice").
Thereupon:

         (i)   First, the Corporation shall have the right and option to
purchase all the Shares so offered at the purchase price and on the terms
stated in the Selling Notice. The Corporation's acceptance shall be made by
the delivery of a written acceptance to the Selling Group within a 30-day period
after delivery of the Selling Notice ("Acceptance"); and

         (ii)  Second, if the Corporation does not exercise its option to
purchase all of such Shares, each Stockholder shall have the right to purchase
its Proportionate Percentage of the shares so offered and not covered by the
Corporation's exercise of its option at the purchase price and on the terms
stated in the Selling Notice. Each Stockholder shall have the right and option
to accept all or part of its Proportionate Percentage of the Shares, by delivery
of a written Acceptance to the Selling Group within the 30-day period after the
Corporation's offer to the Stockholders.

     (b) If any Stockholder shall fail to accept its full Proportionate
Percentage of the Shares in accordance with the terms set forth in the Selling
Notice, or shall reject in writing the offer made in the Selling Notice, then,
upon the earlier of the expiration of such 30-day period, the receipt of
Acceptances, or written rejections of such offer from all Stockholders, the
Selling Group's then remaining Shares shall be reoffered for a period of 15 days
to any Stockholders which accepted their Proportionate Percentage of such offer
("Reoffer").  The Reoffer shall be on the terms stated in the Selling Notice and
subject to acceptance in writing within such 15 day period; provided, that the
Stockholders receiving the Reoffer shall have the further right and option to
offer, in any Acceptance delivered by the end of such 15-day period, to purchase
any such Shares not purchased by other Stockholders, which Shares shall be
deemed to have been offered to and accepted by these Stockholders exercising
their further right, in accordance with their respective Proportionate
Percentages, on the terms and conditions set forth in the Selling Notice.

                                       7
<PAGE>

     (c) Sales of the Shares under the terms of Sections 12(a) and (b) above
shall be made at the offices of the corporation within 30 days after the
expiration of the aforesaid periods.  At the closing of the sale, the Selling
Group shall deliver certificates or other instruments evidencing the Shares,
duly endorsed for transfer to the Corporation or the Stockholders, as
applicable, against payment of the purchase price therefor by check or wire
transfer.

     (d) If the Selling Group does not receive Acceptances pursuant to Sections
12(a) and (b) above with respect to all the Shares offered for sale pursuant to
the Selling Notice, then the Selling Group may Sell all or any part of the
remaining Shares at a price not less than the price, and on terms not more
favorable to the purchaser thereof than the terms, stated in the Selling Notice
at any time within 90 days after the date of the Selling Notice.  In the event
the remaining Shares are not sold by the Selling Group during such 90-day
period, the right of the Selling Group to Sell such remaining Shares shall
expire and the obligations of this Section 12 shall be reinstated.

     (e) The Selling Group may specify in the Selling Notice that all Shares
subject to the Selling Notice must be sold, in which case Acceptances shall be
deemed conditioned upon:

         (i)   receipt of Acceptances with respect to all Shares subject to
the Selling Notice; and/or

         (ii)  the sale of the remaining Shares, if any, pursuant to
Section 12(d) above.

     (f) Notwithstanding anything contained herein to the contrary, each
purchaser of Shares (other than a Stockholder) shall agree in writing in advance
of any purchase of Shares hereunder that the purchaser shall be bound by and
comply with the terms and provisions of this Agreement as if such purchaser were
the "Employee" hereunder, and the Shares so purchased shall continue to be
subject to the provisions of this Section 12.

Section 13.  No Right to Employment.  This Agreement shall not entitle the
Employee to any right or claim to be retained as an employee of the Corporation
or limit the right of the Corporation to terminate the employment of the
Employee or to change the terms of such employment.

                                       8
<PAGE>

Section 14.  Legends.  All stock certificates representing Shares issued to the
Employee shall have affixed thereto a legend substantially in the following
form:

     "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), THE SHARES HAVE BEEN
     ACQUIRED FOR INVESTMENT AND MAY NOT BE PLEDGED, HYPOTHECATED, SOLD OR
     TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
     SHARES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER
     THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT.  ADDITIONALLY, THE SHARES
     REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RIGHTS OF REPURCHASE, AND
     THE TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED
     PURSUANT TO THE PROVISIONS SPECIFIED IN THE STOCK OPTION AGREEMENT DATED
     XXXXX BETWEEN VIROPHARMA INCORPORATED AND THE HOLDER OF THIS CERTIFICATE,
     AND NO TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL BE
     VALID OR EFFECTIVE UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED.  COPIES OF
     SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE
     HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF VIROPHARMA
     INCORPORATED"

Section 15.  Duration of Agreement.  Notwithstanding anything contained in this
Agreement to the contrary, the restrictions imposed upon the Shares by this
Agreement (including, without limitation, the rights to repurchase such Shares)
shall terminate upon the earliest of:

     (a) the sale of all Shares by Employee in accordance with the terms set
forth herein; or

     (b) the consummation of the first underwritten public offering of the
Corporation's Common Stock registered pursuant to the 1933 Act.

Section 16.  Notices.  All notices and other communications hereunder shall be
in writing and shall be delivered personally or sent by courier or first class
certified or registered mail, postage prepaid, return receipt requested,
addressed as follows:

     If to the Corporation, to:

             ViroPharma Incorporated
             76 Great Valley Parkway
             Malvern, PA  19355

             Attn:  Chief Financial Officer

                                       9
<PAGE>

     If to the Employee, to:

             xxx
             xxx
             xxx

or to such other address as the party to whom notice is to be given may have
furnished in writing to the other party in accordance herewith.  All notices and
other communications to be given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given

     (a) on the date of delivery if personally delivered;

     (b) on the business day after the date sent if sent by courier; and

     (c) on the third business day after the date when sent if sent by mail, in
each case addressed to such party as provided in this Section or in accordance
with the latest unrevoked direction from such party.

Section 17.  The Plan.  This Option is subject to, and the Corporation and the
Employee agree to be bound by, all of the terms and conditions of the Plan as
such Plan may be amended from time to time in accordance with the terms thereof.
A copy of the Plan in its present form is available for inspection during
business hours by the Employee or the persons entitled to exercise this Option
at the Corporation's principal office.

Section 18.  Governing Law.  This Agreement shall be governed by, and construed
in accordance with the laws of the Commonwealth of Pennsylvania without regard
to the conflict of law doctrines of Pennsylvania or any other jurisdiction.

Section 19.  Execution in Counterpart.  This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
shall constitute one and the same instrument.

Section 20.  Amendments and Modifications.  Except as set forth in Section 17,
this Agreement, or any provision hereof, may not be amended, changed or modified
without the prior written consent of each of the parties hereto.

                                      10
<PAGE>

Section 21.  Entire Agreement.  This Agreement contains the entire agreement
between the parties hereto with respect to the transactions contemplated herein
and supersedes all previously written or oral negotiations, commitments,
representations and agreements.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered on the date first above.

VIROPHARMA INCORPORATED

By:                                    Employee:

____________________________           ______________________________
Vincent J. Milano
Vice President and Chief
 Financial Officer

                                      11
<PAGE>

                                   EXHIBIT A
                                   ---------

                              MILESTONE SCHEDULE

Vesting Date                                           Number Shares Vesting
------------                                           ---------------------

                                      12
<PAGE>

                      NONQUALIFIED STOCK OPTION AGREEMENT

     THIS AGREEMENT made and entered into this xxx day of xxx, 200x, between,
ViroPharma Incorporated, a Delaware corporation (the "Corporation"), and xxx
(the "Optionee"), and is effective xxx.

                                   WITNESSETH

     WHEREAS, the Corporation has determined to afford the Optionee the right to
purchase ("Option") xxx shares of its common stock, $0.002 par value ("Common
Stock"), under the terms set forth herein and subject to the terms and
provisions of the Corporation's 1995 Stock Option Plan (the "Plan"), which terms
are incorporated herein by reference.

     NOW, THEREFORE, for good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto agree as follows:

Section 1.  Definitions.  All capitalized terms used herein that are not defined
herein shall have the respective meanings set forth in the Plan.  The terms set
forth below shall have the following meanings:

     (a) Fair Value Per Share shall mean, as of the date of determination, the
         --------------------
fair market value of each Share (including, in the case of any repurchase of
Shares, any distributions with respect thereto which would be repurchased with
Shares) determined in good faith by the members of the Board of Directors of the
Corporation or any stock option committee thereof.

     (b)  Group shall mean:
          -----

         (i)   the Optionee;
         (ii)  the spouse, parents, siblings and lineal descendants of the
               Optionee;
         (iii) a trust for the benefit of any of the foregoing; and
         (iv)  any distributee, legatee or devisee of the Optionee who agrees in
               writing to be bound by and comply with this Agreement to the
               same extent as the Optionee.

     (c) Proportionate Percentage shall mean the percentage figure which
         ------------------------
expresses the ratio, based upon voting power, between the number of shares of
outstanding Common and Preferred Stock of the Corporation owned by a Stockholder
and the aggregate number of such shares of outstanding Common and Preferred
Stock owned by all Stockholders.

                                       1
<PAGE>

     (d) Sell, as to any Share, shall mean to sell, or in any other way,
         ----
directly or indirectly, to transfer, assign, distribute, encumber or otherwise
dispose of, either voluntarily or involuntarily; provided, however, that the
Optionee shall not be deemed to Sell the Shares if such Shares are transferred
to a member of the Group and such member agrees to be bound by the terms of this
Agreement to the same extent as the Optionee.

     (e) Selling Group shall collectively mean the Optionee and each member of
         -------------
his/her Group that proposes to Sell any of the Shares, or which has delivered a
Selling Notice, pursuant to Section 12 hereof.

     (f) Shares shall mean the Option Shares (as defined in Section 2 below) and
         ------
any other shares of the Corporation's Common Stock acquired by the Optionee
either by the Optionee's exercise of stock options or otherwise.

     (g) Stockholders shall mean, collectively, the holders of the Preferred
         ------------
Stock of the Corporation.

     (h) Termination shall mean, collectively, a Termination For Cause, a
         -----------
Termination Without Cause, an Involuntary Termination, and a Voluntary
Termination, as defined below:

         (i)   Termination For Cause.  The Company may immediately terminate the
               ---------------------
employment of the Optionee hereunder at any time for "Cause" (such termination
being hereinafter called a "Termination For Cause") upon giving the Optionee
notice of such termination.  "Cause" shall mean:

               (a) the Optionee's misconduct with respect to the business and
affairs of the Corporation or any subsidiary of affiliate thereof;

               (b) the Optionee's unsatisfactory performance of the duties
assigned to the Optionee with respect to the business or affairs of the
Corporation or any subsidiary of affiliate thereof;

               (c) the Optionee's material breach of any Confidentiality
Agreement between the Optionee and the Corporation;

               (d) the commission by the Optionee of an act involving fraud,
theft, embezzlement, forgery or moral turpitude; or

               (e) the Optionee's conviction of any crime.

         (ii)  Termination Without Cause.  The Corporation may immediately
               -------------------------
terminate the engagement of the Optionee hereunder at any time without "Cause"
(such termination being hereinafter called a "Termination Without Cause") upon
giving the Optionee notice of such termination.

                                       2
<PAGE>

         (iii) Involuntary Termination.  If the Optionee dies or has a
               -----------------------
Disability, then:

               (a) in the case of death, the Optionee's engagement shall be
deemed to terminate on the date of the Optionee's death; and

               (b) in the case of a Disability, the Corporation, at its option,
may terminate the engagement of the Optionee immediately upon giving the
Optionee notice to that effect. Termination pursuant to this Subsection (iii) is
hereinafter referred to as an "Involuntary Termination."

         (iv)  Voluntary Termination.  Any termination of the engagement of the
               ---------------------
Optionee hereunder other than as a result of an Involuntary Termination, a
Termination For Cause, or a Termination Without Cause, will be deemed to be a
"Voluntary Termination."  Voluntary Termination will be deemed to be effective
immediately upon such termination.

Section 2.  Grant of Option.  The Corporation hereby grants to the Optionee an
Option to purchase any or all of an aggregate of xxx shares of Common Stock
("Option Shares"), subject to the terms and conditions hereinafter set forth.
The Option is intended to be a nonstatutory stock option and is not intended to
be an incentive stock option within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended, or to otherwise qualify for any special tax
benefits to the Optionee.

Section 3.  Exercise Price.  The purchase price of the Option Shares shall be
$xx.xx per share ("Exercise Price").

Section 4.  Vesting; Term of the Option.

     (a) Subject to the Optionee's continued engagement by the Corporation, the
Option shall become exercisable as set forth on the Milestone Schedule attached
hereto as Exhibit A, unless the Board of Directors accelerates such date or
dates in its discretion or as otherwise provided herein, or in the Plan.

     (b) The term of each Option shall mean the period of ten (10) years from
the date on which the Option is granted, or such shorter period as provided in
this Section or Sections 6 or 8 below.

     (c) The Optionee shall not have any rights of a stockholder with respect to
any Option Shares until such Option Shares are issued to him/her upon the
exercise of the Option.

Section 5.  Exercise of the Option.  Subject to the terms and conditions of this
Agreement, the Option may be exercised by delivering a Notice to the Corporation
as set forth in the Plan.  The Notice shall be accompanied by payment in full of
the

                                       3
<PAGE>

aggregate Exercise Price for the Option Shares to be purchased by cash or by
personal or certified check payable to the Corporation.  The Corporation shall
issue and deliver certificate(s) representing such Option Shares to the Optionee
(or his/her personal representative in the event of the Optionee's death or
disability) as soon as practicable after such notice and payment are received.
The certificate(s) representing such Option Shares shall be registered in the
name of the Optionee (or the Optionee's personal representative in the event of
the Optionee's death or disability).  All Option Shares purchased upon exercise
of the Option in accordance with this Section shall be fully paid and
nonassessable.

Section 6.  Termination of Engagement.  The Option, to the extent exercisable
immediately prior to Termination and not theretofore exercised, shall terminate
90 days after the date of a Termination other than an Involuntary Termination,
and Shall terminate 12 months after an Involuntary Termination; provided that if
the Optionee shall commence any employment or engagement during such 90 day
period after the date of a Termination other than an Involuntary Termination, or
during such 12 month period after the date of an Involuntary Termination due to
a Disability, with or by a competitor of the Company (including, but not limited
to, full or part-time employment or independent consulting work), as determined
solely in the judgment of the Board, all Options held by such Optionee which
have not yet been exercised shall terminate immediately upon the commencement
thereof.  Notwithstanding the foregoing, the Option shall terminate and be
without force and effect immediately upon Termination with respect to the Option
Shares for which the Option is not yet exercisable as provided in Section 4
above.

Section 7.  Restriction on Transfer.  Except as set forth in the Plan, the
Optionee may not sell, transfer, pledge, assign or hypothecate the Option.  The
Option may be exercised only by the Optionee (or the Optionee's personal
representative in the event of the Optionee's death or Disability).  The Option
shall not be subject to execution, attachment or similar process.  Any attempted
sale, assignment, transfer, pledge, hypothecation or other disposition of the
Option contrary to the provisions hereof, and the levy of any execution,
attachment or similar process upon the Option, shall be null and void and
without effect.

Section 8.  Repurchase of Shares.

     (a) In the event of a Termination For Cause, the Corporation shall have the
right to purchase from the Optionee and each member of the Group, and the
Optionee and such members of the Group shall sell to the Corporation upon the
exercise of such right, at a purchase price per share equal to the cost of each
Share to the Optionee, all of the Shares owned by the Optionee or any such
members of the Group.

     (b) In the event of a Termination Without Cause, a Voluntary Termination or
an Involuntary Termination, the Corporation shall have the right to purchase
from the Optionee and each member of the Group, and the Optionee and such
members of the Group shall sell to the Corporation upon the exercise of such
right, at a purchase price

                                       4
<PAGE>

per share equal to the Fair Value Per Share, all of the Shares owned by the
Optionee or such members of the Group.

     (c) In order to exercise the Option to purchase Shares under this
Section 8, the Corporation shall deliver a written notice to the Optionee
indicating its election to purchase such Shares and specifying the number of
Shares which it elects to purchase and the purchase price therefor. The
repurchase of Shares hereunder shall be made on a date within 90 days after the
Termination by delivery of payment to the Optionee, by check or wire transfer,
against receipt of one or more certificates, properly endorsed, evidencing the
Shares to be so repurchased.

     (d) If the Corporation elects not to exercise its rights pursuant to this
Section 8 or if the Corporation is legally prohibited from or unable to
repurchase the Shares, it shall notify the Optionee and each Stockholder within
the 30-day period following the Termination of the Optionee.  In such event,
each Stockholder shall have the right, during the 30-day period following the
Corporation's notice, to purchase such Stockholder's Proportionate Percentage of
the Shares on the same terms and conditions as were applicable to the
Corporation, which right shall be exercised by giving written notice of
acceptance to the Corporation specifying the number of Shares which such
Stockholder elects to purchase and the purchase price therefor.

     (e) The Stockholders shall have a right of oversubscription such that if
any Stockholder fails to purchase its, his or her full Proportionate Percentage,
the remaining Stockholders shall, among them, have the right to purchase up to
the balance of the Shares not so purchased.  Such right of oversubscription may
be exercised by such Stockholder by accepting the offer as to more than its, his
or her Proportionate Percentage.  If, as a result thereof, such
oversubscriptions exceed the total number of Shares available in respect of such
oversubscription privilege, the oversubscribing Stockholders shall be reduced
with respect to their oversubscription so as to sell the Shares as nearly as
possible in accordance with their respective Proportionate Percentages or as
they may otherwise agree among themselves.  In all instances, the Stockholders
shall have the right to purchase only such Shares as are not purchased by the
Corporation.

Section 9.  Withholding.

     (a) Upon the request of the Corporation, the Optionee shall promptly pay to
the Corporation, or make arrangement satisfactory to the Corporation regarding
payment of, any Federal, state or local taxes of any kind required by law to be
withheld with respect to the Shares (or any distributions of other securities or
property, including cash, thereon or issued in replacement thereof).

     (b) In order to effect Section 9(a) above,

         (i)   the Corporation shall, to the extent permitted by law, have
the right to deduct from any payments of any kind otherwise due to the Optionee
any Federal,

                                       5
<PAGE>

state or local taxes of any kind required by law to be withheld with respect to
the Shares; and

         (ii)  if payment of the required tax is not made, the Corporation
may, at its option, redeem and cancel at the rate of the Fair Value Per Share, a
sufficient number of Shares to pay any tax required to be withheld.

Section 10.  Escrow Arrangement; Distributions; Rights as a Stockholder.  All of
the certificates representing any Shares, duly endorsed in blank or with undated
stock powers attached thereto, shall be held in escrow by the Corporation until
such Shares are wither repurchased by the Corporation as provided herein or
delivered, together with such stock powers, if any, to the Optionee on such date
(the "Termination Date") as the Shares are no longer subject to repurchase under
this Agreement.  All dividends (other than cash dividends) or other
distributions paid or made with respect to the Shares shall be accumulated and
held in escrow by the Corporation for the benefit of the Optionee without
interest and will be paid over to the Optionee on the Termination Date to the
extent such dividends or other distributions have not become the sole property
of the Corporation as provided in the following sentence.  Any cash dividends
paid with respect to such Shares shall be paid to the Optionee and shall be the
sole property of the Optionee.  Except for the restrictions contained in this
Agreement, the Optionee shall have the rights as a stockholder of the Shares,
subject to any limitations imposed thereon by the Certificate of Incorporation
of the Corporation.

Section 11.  Representations and Warranties of the Optionee.

     (a) The Optionee hereby represents and warrants to the Corporation that
he/she is acquiring the Option, and upon exercise of the Option will acquire and
Option Shares, for the Optionee's own account, for investment, and not with a
view to the distribution thereof.

     (b) The Optionee understands that the Option Shares will not be registered
under the Securities Act of 1933 ("1933 Act") or any state securities or blue
sky laws, by reason of their issuance in a transaction exempt from the
registration requirements of the 1933 Act and that such Option Shares must be
held indefinitely unless a subsequent disposition thereof is registered under
the 1933 Act and any applicable state securities or blue sky laws, or the
transaction is exempt from such registration.

     (c) The Optionee understands that the exemption afforded by Rule 144
promulgated under the 1933 Act depends on the satisfaction of various conditions
and that, if available, Rule 144 affords the basis for sales of the Option
Shares only in limited amounts and under limited circumstances, which may not
occur or be in existence.

Section 12.  Procedures on Sale of Stock to Third Parties.  Except as otherwise
expressly provided herein, the Optionee agrees that neither he/she nor any
member of

                                       6
<PAGE>

the Group shall Sell any Shares, except pursuant to Section 8 hereof or in
accordance with the following procedures:

     (a) The Selling Group shall first deliver to the Corporation a written
notice, which shall be irrevocable for a period of up to 120 days after delivery
thereof, offering that number of Shares which the Selling Group wishes to Sell
at the purchase price and on the terms specified therein ("Selling Notice").
Thereupon:

         (i)   First, the Corporation shall have the right and option to
purchase all the Shares so offered at the purchase price and on the terms stated
in the Selling Notice. The Corporation's acceptance shall be made by the
delivery of a written acceptance to the Selling Group within a 30-day period
after delivery of the Selling Notice ("Acceptance"); and

         (ii)  Second, if the Corporation does not exercise its option to
purchase all of such Shares, each Stockholder shall have the right to purchase
its Proportionate Percentage of the shares so offered and not covered by the
Corporation's exercise of its option at the purchase price and on the terms
stated in the Selling Notice. Each Stockholder shall have the right and option
to accept all or part of its Proportionate Percentage of the Shares, by delivery
of a written Acceptance to the Selling Group within the 30-day period after the
Corporation's offer to the Stockholders.

     (b) If any Stockholder shall fail to accept its full Proportionate
Percentage of the Shares in accordance with the terms set forth in the Selling
Notice, or shall reject in writing the offer made in the Selling Notice, then,
upon the earlier of the expiration of such 30-day period, the receipt of
Acceptances, or written rejections of such offer from all Stockholders, the
Selling Group's then remaining Shares shall be reoffered for a period of 15 days
to any Stockholders which accepted their Proportionate Percentage of such offer
("Reoffer").  The Reoffer shall be on the terms stated in the Selling Notice and
subject to acceptance in writing within such 15 day period; provided, that the
Stockholders receiving the Reoffer shall have the further right and option to
offer, in any Acceptance delivered by the end of such 15-day period, to purchase
any such Shares not purchased by other Stockholders, which Shares shall be
deemed to have been offered to and accepted by these Stockholders exercising
their further right, in accordance with their respective Proportionate
Percentages, on the terms and conditions set forth in the Selling Notice.

     (c) Sales of the Shares under the terms of Sections 12(a) and (b) above
shall be made at the offices of the corporation within 30 days after the
expiration of the aforesaid periods.  At the closing of the sale, the Selling
Group shall deliver certificates or other instruments evidencing the Shares,
duly endorsed for transfer to the Corporation or the Stockholders, as
applicable, against payment of the purchase price therefor by check or wire
transfer.

     (d) If the Selling Group does not receive Acceptances pursuant to Sections
12(a) and (b) above with respect to all the Shares offered for sale pursuant to
the

                                       7
<PAGE>

Selling Notice, then the Selling Group may Sell all or any part of the remaining
Shares at a price not less than the price, and on terms not more favorable to
the purchaser thereof than the terms, stated in the Selling Notice at any time
within 90 days after the date of the Selling Notice. In the event the remaining
Shares are not sold by the Selling Group during such 90-day period, the right of
the Selling Group to Sell such remaining Shares shall expire and the obligations
of this Section 12 shall be reinstated.

     (e) The Selling Group may specify in the Selling Notice that all Shares
subject to the Selling Notice must be sold, in which case Acceptances shall be
deemed conditioned upon:

         (i)   receipt of Acceptances with respect to all Shares subject to the
Selling Notice; and/or

         (ii)  the sale of the remaining Shares, if any, pursuant to
Section 12(d) above.

     (f) Notwithstanding anything contained herein to the contrary, each
purchaser of Shares (other than a Stockholder) shall agree in writing in advance
of any purchase of Shares hereunder that the purchaser shall be bound by and
comply with the terms and provisions of this Agreement as if such purchaser were
the "Optionee" hereunder, and the Shares so purchased shall continue to be
subject to the provisions of this Section 12.

Section 13.  No Right to Employment or Engagement.  This Agreement shall not
entitle the Optionee to any right or claim to be retained as an Optionee of the
Corporation or limit the right of the Corporation to terminate the engagement of
the Optionee or to change the terms of such engagement.

                                       8
<PAGE>

Section 14.  Legends.  All stock certificates representing Shares issued to the
Optionee shall have affixed thereto a legend substantially in the following
form:

     "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), THE SHARES HAVE BEEN
     ACQUIRED FOR INVESTMENT AND MAY NOT BE PLEDGED, HYPOTHECATED, SOLD OR
     TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE
     SHARES UNDER THE ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER
     THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT.  ADDITIONALLY, THE SHARES
     REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RIGHTS OF REPURCHASE, AND
     THE TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED
     PURSUANT TO THE PROVISIONS SPECIFIED IN THE STOCK OPTION AGREEMENT DATED
     XXXXX BETWEEN VIROPHARMA INCORPORATED AND THE HOLDER OF THIS CERTIFICATE,
     AND NO TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL BE
     VALID OR EFFECTIVE UNTIL SUCH CONDITIONS HAVE BEEN FULFILLED.  COPIES OF
     SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE
     HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF VIROPHARMA
     INCORPORATED"

Section 15.  Duration of Agreement.  Notwithstanding anything contained in this
Agreement to the contrary, the restrictions imposed upon the Shares by this
Agreement (including, without limitation, the rights to repurchase such Shares)
shall terminate upon the earliest of:

     (a) the sale of all Shares by Optionee in accordance with the terms set
forth herein; or

     (b) the consummation of the first underwritten public offering of the
Corporation's Common Stock registered pursuant to the 1933 Act.

Section 16.  Notices.  All notices and other communications hereunder shall be
in writing and shall be delivered personally or sent by courier or first class
certified or registered mail, postage prepaid, return receipt requested,
addressed as follows:

     If to the Corporation, to:

             ViroPharma Incorporated
             76 Great Valley Parkway
             Malvern, PA  19355

             Attn:  Chief Financial Officer

                                       9
<PAGE>

     If to the Optionee, to:

             xxx
             xxx
             xxx

or to such other address as the party to whom notice is to be given may have
furnished in writing to the other party in accordance herewith.  All notices and
other communications to be given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given

     (a) on the date of delivery if personally delivered;

     (b) on the business day after the date sent if sent by courier; and

     (c) on the third business day after the date when sent if sent by mail, in
each case addressed to such party as provided in this Section or in accordance
with the latest unrevoked direction from such party.

Section 17.  The Plan.  This Option is subject to, and the Corporation and the
Optionee agree to be bound by, all of the terms and conditions of the Plan as
such Plan may be amended from time to time in accordance with the terms thereof.
A copy of the Plan in its present form is available for inspection during
business hours by the Optionee or the persons entitled to exercise this Option
at the Corporation's principal office.

Section 18.  Governing Law.  This Agreement shall be governed by, and construed
in accordance with the laws of the Commonwealth of Pennsylvania without regard
to the conflict of law doctrines of Pennsylvania or any other jurisdiction.

Section 19.  Execution in Counterpart.  This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which
shall constitute one and the same instrument.

Section 20.  Amendments and Modifications.  Except as set forth in Section 17,
this Agreement, or any provision hereof, may not be amended, changed or modified
without the prior written consent of each of the parties hereto.

                                      10
<PAGE>

Section 21.  Entire Agreement.  This Agreement contains the entire agreement
between the parties hereto with respect to the transactions contemplated herein
and supersedes all previously written or oral negotiations, commitments,
representations and agreements.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered on the date first above.

VIROPHARMA INCORPORATED

By:                                    Optionee:

____________________________           ______________________________
Vincent J. Milano
Vice President and Chief
 Financial Officer

                                      11
<PAGE>

                                   EXHIBIT A
                                   ---------

                              MILESTONE SCHEDULE

Vesting Date                                             Number Shares Vesting
------------                                             ---------------------

                                      12

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