Document:

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                                                                   Exhibit 10.32

                            VIROPHARMA INCORPORATED
                       2000 EMPLOYEE STOCK PURCHASE PLAN
             (As amended and restated effective December 10, 2001)

1.   Purpose.
     -------

          The ViroPharma Incorporated 2000 Employee Stock Purchase Plan (the
"Plan") is intended to encourage and facilitate the purchase of Shares of the
Common Stock of ViroPharma Incorporated (the "Company") by employees of the
Company and any Participating Companies, thereby providing employees with a
personal stake in the Company and a long range inducement to remain in the
employ of the Company and Participating Companies. It is the intention of the
Company that the Plan qualify as an "employee stock purchase plan" within the
meaning of Section 423 of the Code.

2.   Definitions.
     -----------

     (a)  "Account" means a bookkeeping account established by the Committee on
           -------
behalf of a Participant to hold Payroll Deductions.

     (b)  "Approved Leave of Absence" means a leave of absence that has been
           -------------------------
approved by the applicable Participating Company in such a manner as the Board
may determine from time to time.

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

     (d)  "Business Day" means a day on which national stock exchanges and the
NASDAQ System are open for trading.

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

     (f)  "Committee" means the Committee appointed pursuant to section 14
           ---------
of the Plan.

     (g)  "Company" means ViroPharma Incorporated.
           -------

     (h)  "Compensation" means an Employee's cash compensation payable for
           ------------
services to a Participating Company during an Offering Period.

     (i)  "Election Form" means the form acceptable to the Committee which an
           -------------
Employee shall use to make an election to purchase Shares through Payroll
Deductions pursuant to the Plan.

     (j)  "Eligible Employee" means an Employee who meets the requirements for
           -----------------
eligibility under section 3 of the Plan.

     (k)  "Employee" means a person who is an employee of a Participating
           --------
Company.
<PAGE>

     (l)  "Enrollment Date" means, with respect to a given Offering Period, a
           ---------------
date established from time to time by the Committee or the Board, which shall
not later than the first day of such Offering Period.

     (m)  "Fair Market Value" means the closing price per Share on the principal
           -----------------
national securities exchange on which the shares are listed or admitted to
trading or, if not listed or traded on any such exchange, on the National Market
System of the National Association of Securities Dealers Automated Quotation
System ("NASDAQ"), or if not listed or traded on any such exchange or system,
the fair market value as reasonably determined by the Board, which determination
shall be conclusive.

     (n)  "Five Percent Owner" means an Employee who, with respect to a
           ------------------
Participating Company, is described in section 423(b) of the Code.

     (o)  "Offering" means an offering of Shares to Eligible Employees pursuant
           --------
to the Plan.

     (p)  "Offering Commencement Date" means the first Business Day on or after
           --------------------------
January 1 or the first Business Day on or after July 1 of each year.

     (q)  "Offering Period" means the period extending from an Offering
           ---------------
Commencement Date through the following Offering Termination Date.

     (r)  "Offering Termination Date" means the earlier of the last Business
           -------------------------
Day in the period ending each June 30 and December 31 immediately following an
Offering Commencement Date.

     (s)  "Option Price" means 85 percent of the lesser of:  (1) the Fair Market
           ------------
Value per Share on the Offering Commencement Date, or if such date is not a
trading day, then on the next trading day thereafter or (2) the Fair Market
Value per Share on the Offering Termination Date, or if such date is not a
trading day, then on the next trading day thereafter.

     (t)  "Participant" means an Employee who meets the requirements for
           -----------
eligibility under section 3 of the Plan and who has timely delivered an Election
Form to the Committee.

     (u)  "Participating Company" means the Company and subsidiaries of the
           ---------------------
Company, within the meaning of section 424(f) of the Code, if any.

     (v)  "Payroll Deductions" means amounts withheld from a Participant's
           ------------------
Compensation pursuant to the Plan, as described in section 5 of the Plan.

     (w)  "Plan" means ViroPharma Incorporated 2000 Employee Stock Purchase
           ----
Plan, as set forth in this document, and as may be amended from time to time.
<PAGE>

     (x)  "Plan Termination Date" means the earlier of:
           ---------------------

          (1)  The Offering Termination Date for the Offering in which the
maximum number of Shares specified in section 5 of the Plan have been issued
pursuant to the Plan; or

          (2)  The date as of which the Board chooses to terminate the Plan as
provided in section 15 of the Plan.

     (w)  "Shares" means shares of common stock of the Company, $.002 par value
           ------
per Share.

     (x)  "Successor-in-Interest" means the Participant's executor or
           ---------------------
administrator, or such other person or entity to whom the Participant's rights
under the Plan shall have passed by will or the laws of descent and
distribution.

     (y)  "Termination Form" means the form acceptable to the Committee which an
           ----------------
Employee shall use to withdraw from an Offering pursuant to section 8 of the
Plan.

3.   Eligibility and Participation.
     -----------------------------

     (a)  Initial Eligibility.  Except as provided in section 3(b) of the Plan,
          -------------------
each individual who is an Employee on an Offering Commencement Date shall be
eligible to participate in the Plan with respect to the Offering that commences
on that date.

     (b)  Ineligibility.  An Employee shall not be eligible to participate in
          -------------
the Plan if such Employee:

          (1)  Is a Five Percent Owner;

          (2)  Has not customarily worked more than 20 hours per week during a
24-consecutive-month period ending on the last day of the month immediately
preceding the effective date of an election to purchase Shares pursuant to the
Plan; or

          (3)  Is restricted from participating under section 3(d) of the Plan.

     (c)  Leave of Absence.  An Employee on an Approved Leave of Absence shall
          ----------------
be eligible to participate in the Plan, subject to the provisions of sections
5(d) and 8(d) of the Plan. An Approved Leave of Absence shall be considered
active employment for purposes of sections 3(b)(2) and 3(b)(3) of the Plan.

     (d)  Restrictions on Participation.  Notwithstanding any provisions of the
          -----------------------------
Plan to the contrary, no Employee shall be granted an option to participate in
the Plan if:
<PAGE>

          (1)  Immediately after the grant, such Employee would be a Five
Percent Owner; or

          (2)  Such option would permit such Employee's rights to purchase stock
under all employee stock purchase plans of the Participating Companies which
meet the requirements of section 423(b) of the Code to accrue at a rate which
exceeds $25,000 in fair market value (as determined pursuant to section
423(b)(8) of the Code) for each calendar year in which such option is
outstanding.

     (e)  Commencement of Participation.  An Employee who meets the eligibility
          -----------------------------
requirements of sections 3(a) and 3(b) of the Plan and whose participation is
not restricted under section 3(d) of the Plan shall become a Participant by
completing an Election Form and filing it with the Committee on or before the
applicable Enrollment Date. Payroll Deductions for a Participant shall commence
on the applicable Offering Commencement Date when his or her authorization for
Payroll Deductions becomes effective, and shall end on the Plan Termination
Date, unless sooner terminated by the Participant pursuant to section 8 of the
Plan. Notwithstanding the foregoing sentence, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 4(d) of the Plan, a Participant's
payroll deductions may be decreased to zero percent (0%) at any time during an
Offering Period; provided, that such Payroll Deductions shall recommence at the
rate as provided in such Participant's Enrollment Form at the beginning of the
first Offering Period that is scheduled to end in the following calendar year,
unless terminated by the Participant as provided in Section 8 of the Plan.

4.   Shares Per Offering.
     -------------------

     The Plan shall be implemented by a series of Offerings that shall terminate
on the Plan Termination Date. Offerings shall be made with respect to
Compensation payable for each Offering Period occurring on or after adoption of
the Plan by the Board and ending with the Plan Termination Date. Shares
available for any Offering shall be the difference between the maximum number of
Shares that may be issued under the Plan, as determined pursuant to section
10(a) of the Plan, for all of the Offerings, less the actual number of Shares
purchased by Participants pursuant to prior Offerings. If the total number of
Shares for which options are exercised on any Offering Termination Date exceeds
the maximum number of Shares available, the Committee shall make a pro rata
allocation of Shares available for delivery and distribution in as nearly a
uniform manner as practicable, and as it shall determine to be fair and
equitable, and the unapplied Account balances shall be returned to Participants
as soon as practicable following the Offering Termination Date.

5.   Payroll Deductions.
     ------------------

     (a)  Amount of Payroll Deductions.  An Eligible Employee who wishes to
          ----------------------------
participate in the Plan shall file an Election Form (authorizing payroll
deductions) with the Committee prior to the applicable Enrollment Date.
<PAGE>

     (b)  Participants' Accounts.  All Payroll Deductions with respect to a
          ----------------------
Participant pursuant to section 5(a) of the Plan shall commence on the first
payroll following the Enrollment Date and shall end of the last payroll in the
Offering Period to which such authorization is applicable, unless sooner
terminated by the Participant as provided in Section 8.  All Payroll Deductions
will be credited to the Participant's Account under the Plan.

     (c)  Changes in Payroll Deductions.  A Participant may discontinue his
          -----------------------------
participation in the Plan as provided in section 8(a) of the Plan, but no other
change can be made during an Offering, including, but not limited to, changes in
the amount of Payroll Deductions for such Offering.  A Participant may change
the amount of Payroll Deductions for subsequent Offerings by giving written
notice of such change to the Committee on or before the applicable Enrollment
Date for such Offering Period.

     (d)  Leave of Absence.  A Participant who goes on an Approved Leave of
          ----------------
Absence before the Offering Termination Date after having filed an Election Form
with respect to such Offering may:

          (1)  Withdraw the balance credited to his or her Account pursuant to
section 8(b) of the Plan;

          (2)  Discontinue contributions to the Plan but remain a Participant in
the Plan through the earlier of (i) the Offering Termination Date or (ii) the
close of business on the 90th day of such Approved Leave of Absence unless such
Employee shall have returned to regular non-temporary employment before the
close of business on such 90th day;

          (3)  Remain a Participant in the Plan during such Approved Leave of
Absence through the earlier of (i) the Offering Termination Date or (ii) the
close of business on the 90th day of such Approved Leave of Absence unless such
Employee shall have returned to regular non-temporary employment before the
close of business on such 90th day, and continue the authorization for the
Participating Company to make Payroll Deductions for each payroll period out of
continuing payments to such Participant, if any.

6.   Granting of Options.
     -------------------

     On each Offering Termination Date, each Participant shall be deemed to have
been granted an option to purchase a minimum of one (1) Share and a maximum
number of Shares that shall be a number of whole Shares equal to the quotient
obtained by dividing the balance credited to the Participant's Account as of the
Offering Termination Date, by the Option Price.

7.   Exercise of Options.
     -------------------

     (a)  Automatic Exercise.  With respect to each Offering, a Participant's
          ------------------
option for the purchase of Shares granted pursuant to section 6 of the Plan
shall be deemed to have been exercised automatically on the Offering Termination
Date applicable to such Offering.
<PAGE>

     (b)  Fractional Shares and Minimum Number of Shares.  Fractional Shares
          ----------------------------------------------
shall not be issued under the Plan.  Amounts credited to an Account remaining
after the application of such Account to the exercise of options for a minimum
of one (1) full Share shall be credited to the Participant's Account for the
next succeeding Offering, or, at the Participant's election, returned to the
Participant as soon as practicable following the Offering Termination Date,
without interest.

     (c)  Transferability of Option.  No option granted to a Participant
          -------------------------
pursuant to the Plan shall be transferable other than by will or by the laws of
descent and distribution, and no such option shall be exercisable during the
Participant's lifetime other than by the Participant.

     (d)  Delivery of Certificates for Shares.  The Company shall deliver
          -----------------------------------
certificates for Shares acquired on the exercise of options during an Offering
Period as soon as practicable following the Offering Termination Date.

     (e)  Restriction on Transfer of Shares.
          ---------------------------------

          (1)  The Shares acquired upon exercise of the options shall not be
transferable for the nine-month period commencing on the date of exercise.  In
order to ensure that the transfer restriction is adhered to, the Company shall
hold such Shares in escrow for the duration of the restriction period.  Except
as otherwise provided by this Section 7(e), during the restriction period, the
Participant shall have all the rights accorded a shareholder of the Company.

          (2)  Notwithstanding the provisions of Section 7(e)(1):

               (A)  If the Committee, upon written request of a Participant,
determines, in its sole discretion, that the Participant has suffered an
unforeseeable financial emergency, the Company shall, as soon as practicable
following such determination, release that number of Shares from escrow the sale
of which will generate an amount necessary to meet the emergency.  For purposes
of this Plan, an unforeseeable financial emergency is an unexpected need for
cash arising from an illness, casualty loss, sudden financial reversal, or other
such unforeseeable occurrence.

               (B)  The Committee may, in its sole discretion, waive the
restriction period in whole or in part, provided that any such waiver shall be
applied uniformly to all Shares to which such restrictions apply.

8.   Withdrawals.
     -----------

     (a)  Withdrawal of Account.  A Participant may elect to withdraw the
          ---------------------
balance credited to the Participant's Account by providing a Termination Form to
the Committee at any time before the Offering Termination Date applicable to any
Offering.
<PAGE>

     (b)  Amount of Withdrawal. A Participant may withdraw all, but not less
          --------------------
than all, of the amounts credited to the Participant's Account by giving a
Termination Form to the Committee. All amounts credited to such Participant's
Account shall be paid as soon as practicable following the Committee's receipt
of the Participant's Termination Form, and no further Payroll Deductions will be
made with respect to the Participant.

     (c)  Termination of Employment. Upon termination of a Participant's
          -------------------------
employment for any reason other than death, including termination due to
disability or continuation of a leave of absence beyond 90 days, all amounts
credited to such Participant's Account shall be returned to the Participant. In
the event of a Participant's (1) termination of employment due to death or (2)
death after termination of employment but before the Participant's Account has
been returned, all amounts credited to such Participant's Account shall be
returned to the Participant's Successor-in-Interest.

     (d)  Leave of Absence. A Participant who is on an Approved Leave of Absence
          ----------------
shall, subject to the Participant's election pursuant to section 5(d) of the
Plan, continue to be a Participant in the Plan until the earlier of (i) the end
of the first Offering ending after commencement of such Approved Leave of
Absence or (ii) the close of business on the 90th day of such Approved Leave of
Absence unless such Employee shall have returned to regular non-temporary
employment before the close of business on such 90th day. A Participant who has
been on an Approved Leave of Absence for more than 90 days shall not be eligible
to participate in any Offering that begins on or after the commencement of such
Approved Leave of Absence so long as such leave of absence continues.

9.   Interest.
     --------

     No interest shall be paid or allowed with respect to amounts paid into the
Plan or credited to any Participant's Account.

10.  Shares.
     ------

     (a)  Maximum Number of Shares. No more than 300,000 Shares may be issued
          ------------------------
under the Plan. Such Shares shall be authorized but unissued shares of the
Company. The number of Shares available for any Offering and all Offerings shall
be adjusted if the number of outstanding Shares of the Company is increased or
reduced by split-up, reclassification, stock dividend or the like. All Shares
issued pursuant to the Plan shall be validly issued, fully paid and
nonassessable.

     (b)  Participant's Interest in Shares. A Participant shall have no interest
          --------------------------------
in Shares subject to an option until such option has been exercised.

     (c)  Registration of Shares. Shares to be delivered to a Participant under
          ----------------------
the Plan shall be registered in the name of the Participant.
<PAGE>

     (d)  Restrictions on Exercise. The Board may, in its discretion, require as
          ------------------------
conditions to the exercise of any option such conditions as it may deem
necessary to assure that the exercise of options is in compliance with
applicable securities laws.

11.  Expenses.
     --------

     The Participating Companies shall pay all fees and expenses incurred
(excluding individual Federal, state, local or other taxes) in connection with
the Plan. No charge or deduction for any such expenses will be made to a
Participant upon the termination of his or her participation under the Plan or
upon the distribution of certificates representing Shares purchased with his or
her contributions.

12.  Taxes.
     -----

     The Participating Companies shall have the right to withhold from each
Participant's Compensation an amount equal to all Federal, state, city or other
taxes as the Participating Companies shall determine are required to be withheld
by them in connection with the grant, exercise of the option or disposition of
Common Stock. In connection with such withholding, the Participating Companies
may make any such arrangements as are consistent with the Plan as it may deem
appropriate, including the right to withhold from Compensation paid to a
Participant other than in connection with the Plan and the right to withdraw
such amount from the amount standing to the credit of the Participant's Account.

13.  Plan and Contributions Not to Affect Employment.
     -----------------------------------------------

     The Plan shall not confer upon any Eligible Employee any right to continue
in the employ of the Participating Companies.

14.  Administration.
     --------------

     The Plan shall be administered by the Board, which may delegate
responsibility for such administration to a committee of the Board (the
"Committee"). If the Board fails to appoint the Committee, any references in the
Plan to the Committee shall be treated as references to the Board. The Board, or
the Committee, shall have authority to interpret the Plan, to prescribe, amend
and rescind rules and regulations relating to it, and to make all other
determinations deemed necessary or advisable in administering the Plan, with or
without the advice of counsel. The determinations of the Board or the Committee
on the matters referred to in this paragraph shall be conclusive and binding
upon all persons in interest.

15.  Amendment and Termination.
     -------------------------

     The Board may terminate the Plan at any time and may amend the Plan from
time to time in any respect; provided, however, that upon any termination of the
Plan, all Shares or Payroll Deductions (to the extent not yet applied to the
purchase of Shares) under the Plan shall be
<PAGE>

distributed to the Participants, provided further, that no amendment to the Plan
shall affect the right of a Participant to receive his or her proportionate
interest in the Shares or his or her Payroll Deductions (to the extent not yet
applied to the purchase of Shares) under the Plan, and provided further that the
Company may seek shareholder approval of an amendment to the Plan if such
approval is determined to be required by or advisable under the regulations of
the Securities or Exchange Commission or the Internal Revenue Service, the rules
of any stock exchange or system on which the Shares are listed or other
applicable law or regulation.

16.  Effective Date.
     --------------

     As amended and restated, the Plan shall be effective on December 10, 2001.

17.  Government and Other Regulations.
     --------------------------------

     (a)  In General. The purchase of Shares under the Plan shall be subject to
          ----------
all applicable laws, rules and regulations, and to such approvals by any
governmental agencies as may be required.

     (b)  Securities Law. The Committee shall have the power to make each grant
          --------------
under the Plan subject to such conditions as it deems necessary or appropriate
to comply with the then-existing requirements of the Securities Act of 1933, as
amended, and the Securities Exchange Act of 1934, as amended, including Rule
16b-3 (or any similar rule) of the Securities and Exchange Commission.

18.  Non-Alienation.
     --------------

     No Participant shall be permitted to assign, alienate, sell, transfer,
pledge or otherwise encumber his interest under the Plan prior to the
distribution to him of Share certificates. Any attempt at assignment,
alienation, sale, transfer, pledge or other encumbrance shall be void and of no
effect.

19.  Notices.
     -------

     Any notice required or permitted hereunder shall be sufficiently given only
if delivered personally, telecopied, or sent by first class mail, postage
prepaid, and addressed:
<PAGE>

     If to the Company:
     -----------------

     ViroPharma Incorporated
     405 Eagleview Boulevard
     Exton, PA 19341
     Fax: (610) 458-7380
     Attention: Employee Stock Purchase Plan Committee

     or any other address provided pursuant to written notice.

     If to the Participant:
     ---------------------

     At the address on file with the Company from time to time, or to such other
     address as either party may hereafter designate in writing by notice
     similarly given by one party to the other.

20.  Successors.
     ----------

     The Plan shall be binding upon and inure to the benefit of any successor,
successors or assigns of the Company.

21.  Severability.
     ------------

     If any part of this Plan shall be determined to be invalid or void in any
respect, such determination shall not affect, impair, invalidate or nullify the
remaining provisions of this Plan which shall continue in full force and effect.

22.  Acceptance.
     ----------

     The election by any Eligible Employee to participate in this Plan
constitutes his or her acceptance of the terms of the Plan and his or her
agreement to be bound hereby.

23.  Applicable Law.
     --------------

     This Plan shall be construed in accordance with the law of the Commonwealth
of Pennsylvania, to the extent not preempted by applicable Federal law.
<PAGE>

IN WITNESS WHEREOF, the foregoing Plan is adopted this 10th day of December,
2001.

[CORPORATE SEAL]                               VIROPHARMA INCORPORATED

ATTEST:  /s/ Thomas F. Doyle                   By:   /s/ Michel de Rosen
       ----------------------------                ----------------------------<PAGE>

                                                                   Exhibit 10.33

                            VIROPHARMA INCORPORATED
                          2001 EQUITY INCENTIVE PLAN

                          Effective November 14, 2001
<PAGE>

                            VIROPHARMA INCORPORATED
                          2001 EQUITY INCENTIVE PLAN

ViroPharma Incorporated adopted its 2001 Equity Incentive Plan effective
November __, 2001 (the "Plan").  The purposes of the Plan are to:  (a) further
the growth and success of ViroPharma Incorporated (the "Company") and its
Subsidiaries by enabling selected non-officer 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, 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 and the terms of the Plan.

     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;

          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;

                                       1
<PAGE>

          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.

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

                                       2
<PAGE>

     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 any Subsidiary 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 non-qualified stock options, any person
               other than an Ineligible Person who:  (i) is employed by the
               Company or by any of its Subsidiaries, (ii) is an advisor and/or
               consultant to the Company or any Subsidiary or (iii) is a
               Director;

          b.   with respect to any Award of Restricted Shares, any person other
               than an Ineligible Person who:  (i) is employed by the Company or
               by any of its Subsidiaries or (ii) is a Director.

     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.

          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
               -------

                                       3
<PAGE>

               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  "Ineligible Person" means any person who: (i) is the Company's
            -----------------
president, principal financial officer, principal accounting officer (or, if
there is no such accounting officer, the controller), any vice-president of the
Company in charge of a principal business unit, division or function (such as
sales, administration or finance), any other person who performs a policy-making
function for the Company, (ii) is an officer of one or more of the Subsidiaries
to the extent that performs such policy-making functions identified in Section
1.16(i) for the Company or (iii) is a member of the Board of Directors of the
Company.

     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 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 1.19(a) is not greater than 1.19(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 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 appoint additional members thereto,

                                       5
<PAGE>

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.

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

          (a)  The Board or 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 permitted 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 identified in Section
                    1.13(a)(i) or Section 1.13(b)(i) of the Plan;

               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;

               6.   to determine the terms and provisions of each Award under
                    the Plan and each Award Agreement (which need not be
                    identical with

                                       7
<PAGE>

                    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, the Committee or the Award 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, the Committee or the Award 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 500,000 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 500,000 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 shall be non-qualified stock options. 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 may be equal
               to, more or 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.

          c.   Form of Option.  The Award Agreement will that the Option is 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, 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

                                       9
<PAGE>

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.

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

                                       10
<PAGE>

               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.

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

          d.   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.

     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

                                       11
<PAGE>

               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 or the 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 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

                                       12
<PAGE>

               (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
or the Committee may from time to time determine.  The Board, the Committee or
the Award Committee will determine the time or times 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

                                       13
<PAGE>

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 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.

                                       14
<PAGE>

     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.

          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.

                                       15
<PAGE>

          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

     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.

8.   Time of Award

The date of an Award shall, for all purposes, be the date which the Board or the
Committee specifies when the Board or the 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, no modification of an Award that adversely
affects the Participant shall be made without the consent of the Participant.

                                       16
<PAGE>

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, 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.

                                       17
<PAGE>

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

     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 or is a Director
                at the time of a Change of Control is not offered substantially
                equivalent

                                       18
<PAGE>

                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 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, or cause to be
distributed, 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, or cause to be

                                       19
<PAGE>

redeemed, 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, 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 non-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.  Effective Date of Plan

This Plan shall become effective on the date that it is adopted by the Board.

16.  Conditions Upon Issuance of Shares

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

                                       20
<PAGE>

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
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.

                                       21
<PAGE>

     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.

     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
        -----------------------------            ---------------------------

                                       22
<PAGE>

                            VIROPHARMA INCORPORATED
                          2001 EQUITY INCENTIVE PLAN

                     NON-QUALIFIED STOCK OPTION AGREEMENT

     ViroPharma Incorporated (the "Company") hereby grants to
____________________________ (the "Optionee") an option to purchase a total of
__________ shares of Common Stock of the Company, at the price and on the terms
set forth herein, and in all respects subject to the terms, definitions and
provisions of the ViroPharma Incorporated 2001 Equity Incentive Plan (the
"Plan") applicable to non-qualified stock options, which terms and provisions
are hereby incorporated by reference herein.  Unless the context herein
otherwise requires, the terms defined in the Plan shall have the same meanings
when used herein.

     1.  Nature of the Option.  This 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 (the
"Code"), or to otherwise qualify for any special tax benefits to the Optionee.

     2.  Date of Grant; Term of Option.  This Option is granted this _____ day
of ________________, 200_, and it may not be exercised later than
_______________________, subject to earlier termination, as provided in the
Plan.

     3.  Option Exercise Price.  The Option exercise price is $_____ per Share.

     4.  Exercise of Option.  This Option shall be exercisable during its term
only in accordance with the terms and provisions of the Plan and this Option
Agreement as follows:

         (a) Right to Exercise.  This Option shall vest and be exercisable as
follows: [VESTING SCHEDULE HERE]

         (b) Method of Exercise.  This Option shall be exercisable during its
term by written notice which shall state the election to exercise this Option,
the number of full Shares in respect to which this Option is being exercised and
which shall contain or be accompanied by such other representations and
agreements as to the Optionee's investment intent with respect to such Shares as
may be reasonably required by the Company as contemplated by the Plan.  Such
written notice shall be signed by the Optionee and shall be delivered in person
or by certified mail to the Secretary of the Company or such other person as may
be designated by the Company.  The written notice shall be accompanied by
payment of the purchase price. Payment of the purchase price shall be by check
or such other consideration and other method of payment as may be authorized by
the Board or the Committee pursuant to the Plan.  The certificate or
certificates for the Shares as to which the Option shall be exercised shall be
registered in the name of the Optionee and, if required by applicable law, shall
be legended as required under the Plan.
<PAGE>

         (c) Restrictions on Exercise.  This Option may not be exercised if the
issuance of the Shares upon such exercise or the method of payment of
consideration for such Shares would constitute a violation of any applicable
federal or state securities laws or other laws or regulations.

     5.  Investment Representations.  Unless the Shares have been registered
under the Securities Act of 1933, in connection with the acquisition of this
Option, the Optionee represents and warrants as follows:

         (a) The Optionee is acquiring this Option, and upon exercise of this
Option, he will be acquiring the Shares for investment for his own account, not
as a nominee or agent, and not with a view to, or for resale in connection with,
any distribution thereof.

         (b) The Optionee has a preexisting business or personal relationship
with the Company or one of its directors, officers or controlling persons and by
reason of his business or financial experience, has, and could be reasonably
assumed to have, the capacity to protect his interests in connection with the
acquisition of this Option and the Shares.

     6.  Termination of Status as an Eligible Person.  Subject to the
provisions of Section 7 hereof:

         (a) If the Optionee is other than a consultant or advisor to the
Company and ceases to be employed by or provide services to the Company or its
Subsidiaries for any reason other than death or Disability, the Optionee (or in
the event the Optionee dies following termination of employment, then the
Optionee's executor or administrator) shall have the right to exercise this
Option at any time within the three (3) month period after the date of such
termination to the extent that the Optionee was entitled to exercise the Option
at the date of such termination;

         (b) If the Optionee is other than a consultant or advisor to the
Company and ceases to be employed by the Company due to death or Disability,
this Option may be exercised at any time within the twelve (12) month period
after the date of death or termination of employment due to Disability, in the
case of death, by the Optionee's estate or by a person who acquired the right to
exercise this Option by bequest or inheritance, or, in the case of Disability,
by the Optionee or his legal guardian or representative, but in any case only to
the extent the Optionee was entitled to exercise this Option at the date of such
termination; and

         (c) if the Optionee is as a consultant or advisor to the Company, such
termination shall not accelerate the expiration date of the Option; provided,
however, that if the Optionee dies following such termination, then the Option
must be exercised within the twelve (12) month period following the date of
death;

provided, however, that to the extent that the Optionee was not entitled to
exercise the Option at the date of termination or employment or service , or to
the extent the Option is not exercised within the time specified herein, this
Option shall terminate.  Notwithstanding the foregoing, this Option shall not be
exercisable after the expiration of the term set forth in Section 2 hereof.

                                       2
<PAGE>

     7.  Forfeiture of Option.

         (a) Termination for Cause.  Notwithstanding any other provision of
             ---------------------
this Option, if the Optionee's employment or service is terminated by the
Company and the Board or the Committee makes a determination that the Optionee
(i) has engaged in any type of disloyalty to the Company, including without
limitation, fraud, embezzlement, theft, or dishonesty in the course of his
employment, or has breached any fiduciary duty owed to the Company, or (ii) has
been convicted of a felony or (iii) has disclosed trade secrets or confidential
information of the Company or (iv) has breached any agreement with the Company
in respect of confidentiality, non-disclosure, non-competition or otherwise, all
unexercised Options shall terminate on the earlier of the date of termination
for "cause" or the date of such determination.  In the event of such a
determination, in addition to immediate termination of all unexercised Options,
the Optionee shall forfeit all Option shares for which the Company has not yet
delivered share certificates to the Optionee and the Company shall refund to the
Optionee the Option 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 determination resulting in
forfeiture.

         (b) Non-Competition.  Notwithstanding any other provision of this
             ---------------
Option, 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, (i) an Optionee who is other than a consultant or advisor to the
Company 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, or (ii) an Optionee who is a consultant or advisor, has
entered into an agreement with the Company which contains non-competition
covenants and violates the terms of his or her non-competition covenant, as
determined in the sole discretion of the Board or the Committee, then in either
case all of such Optionee's unexercised Options shall terminate immediately upon
the commencement of such competitive activity.

     8.  Non-transferability of Option.  This Option may not be sold, pledged,
assigned, hypothecated, gifted, transferred or disposed of in any manner either
voluntarily or involuntarily by operation of law, other than by will or by the
laws of descent or distribution, and may be exercised during the lifetime of the
Optionee only by such Optionee (or by such Optionee's representative pursuant to
Section 6). Subject to the foregoing and the terms of the Plan, the terms of
this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee.

     9.  Continuation of Employment or Engagement.  Neither the Plan nor this
Option shall confer upon any Optionee any right to continue in the service of
the Company or any of its Subsidiaries or limit, in any respect, the right of
the Company to discharge the Optionee at any time, with or without cause and
with or without notice.

                                       3
<PAGE>

     10. Withholding.  The Company reserves the right to withhold, in
accordance with any applicable laws, from any consideration payable to Optionee
any taxes required to be withheld by federal, state or local law as a result of
the grant or exercise of this Option or the sale or other disposition of the
Shares issued upon exercise of this Option.  If the amount of any consideration
payable to the Optionee is insufficient to pay such taxes or if no consideration
is payable to the Optionee, upon the request of the Company, the Optionee (or
such other person entitled to exercise the Option pursuant to Section 6 hereof)
shall pay to the Company an amount sufficient for the Company to satisfy any
federal, state or local tax withholding requirements it may incur, as a result
of the grant or exercise of this Option or the sale or other disposition of the
Shares issued upon the exercise of this Option.

     11. The Plan.  This Option is subject to, and the Company 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.
Pursuant to the Plan, the Board or the Committee is authorized to adopt rules
and regulations not inconsistent with the Plan as it shall deem appropriate and
proper.  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 Company's principal office.

     12. Entire Agreement.  This Agreement, together with the Plan and the
other exhibits attached thereto or hereto, represents the entire agreement
between the parties.

     13. Governing Law.  This Agreement shall be construed in accordance
with the laws of the Commonwealth of Pennsylvania.

     14. Amendment. Subject to the provisions of the Plan, this Agreement may
only be amended by a writing signed by each of the parties hereto.

     IN WITNESS WHEREOF, the Company has caused its duly authorized
officers to execute and attest this instrument this _____ day of __________,
200_.

                                       VIROPHARMA INCORPORATED

                                       By:    _________________________

                                       Name:  _________________________

                                       Title: _________________________

                                       4
<PAGE>

                                ACKNOWLEDGMENT
                                --------------

     The Optionee acknowledges receipt of a copy of the Plan, a copy of which is
attached hereto, and represents that he or she has read and is familiar with the
terms and provisions thereof and hereby accepts this Option subject to all of
the terms and provisions of the Option Agreement and the ViroPharma Incorporated
2001 Equity Incentive Plan (the "Plan"). The Optionee hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the Board or
the Committee upon any questions arising under the Plan.

Date: ____________________             _________________________
                                       Signature of Optionee

                                       _________________________
                                       Name of Optionee

                                       _________________________
                                       Address

                                       _________________________
                                       City, State, Zip Code

                                       5

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