Document:

<PAGE>

                                                                     EXHIBIT 4.1

              A BRITISH COLUMBIA BUSINESS CORPORATIONS ACT COMPANY

  NUMBER                                                              SHARES
                                   ASPREVA
                               PHARMACEUTICALS
                                                                  ****0*********
ZQ 123456                                                         *****0********
                                                                  ******0*******
                                                                  *******0******
                                                                  ********0*****

THIS CERTIFIES THAT                                            CUSIP 04538T 10 9

                                ** SPECIMEN **                ISIN CA 04538T1093

                                                         SEE REVERSE FOR CERTAIN
                                                               DEFINITIONS

is the registered holder of

                                  ** ZERO **

          FULLY PAID AND NON-ASSESSABLE COMMON SHARES WITHOUT PAR VALUE

                       ASPREVA PHARMACEUTICALS CORPORATION

in the Authorized share structure of the above named Corporation subject to the
Articles of the Corporation transferable on the Central Securities Register of
the Corporation by the registered holder in person or by attorney duly
authorized in writing upon surrender of this certificate properly endorsed.

This certificate is not valid unless countersigned by the Transfer Agent and
Registrar of the Corporation.

IN WITNESS WHEREOF the Corporation has caused this
certificate to be signed on its behalf by the facsimile signatures of its duly
authorized officers, at Victoria, British Columbia.

<TABLE>
<S>                               <C>                        <C>
Dated [date]                                                 COUNTERSIGNED AND REGISTERED
                                                             COMPUTERSHARE INVESTOR SERVICES INC.
VOID                                                         (VANCOUVER) (TORONTO) (DENVER)
                                                             TRANSFER AGENT AND REGISTRAR

/s/ RICHARD GLICKMAN             /s/ BRUCE COUSINS
Chief Executive Officer          Chief Financial Officer     By                        VOID
                                                                -----------------------------------------------------
                                                                                Authorized Officer
</TABLE>

  The shares represented by this certificate are transferable at the offices of
             Computershare Investor Services Inc. in Vancouver, BC,
                          Toronto, ON and Denver, CO.

SECURITY INSTRUCTIONS ON REVERSE               VOIR LES INSTRUCTIONS DE SECURITE
                                                                        AU VERSO
                                                                          104598
<PAGE>

"Until the Separation Time (as defined in the Rights Agreement referred to
below), this certificate also evidences and entitles the holder hereof to
certain Rights as set forth in the Shareholder Rights Plan Agreement, dated as
of the 4th day of February, 2005 as such may be from time to time amended,
restated, varied or replaced, between Aspreva Pharmaceuticals Corporation (the
"Corporation") and a Computershare Investor Services Inc., as Rights Agent (the
"Rights Agreement"), the terms of which are hereby incorporated herein by
reference and a copy of which is on file at the principal executive offices of
the Corporation. Under certain circumstances, as set forth in the Rights
Agreement, such Rights may be amended or redeemed, may expire, may become void
(if, in certain cases, they are "BENEFICIALLY OWNED" by an "Acquiring Person",
as such terms are defined in the Rights Agreement) whether currently held or on
behalf of such Person or any subsequent holder or may be evidenced by separate
certificates and may no longer be evidenced by this certificate. The
Corporation will mail or arrange for the mailing of a copy of the Rights
Agreement to the holder of this certificate without charge within five days
after the receipt of a written request therefore."

The following abbreviations shall be construed as though the words set forth
below opposite each abbreviation were written out in full where such
abbreviation appears:

    TEN COM                     -  as tenants in common
    TEN ENT                     -  as tenants by the entireties
    JT TEN                      -  as joint tenants with rights of survivorship
                                   and not as tenants in common
    (Name) CUST (Name) UNIF     -  (Name) as Custodian for (Name) under the
    GIFT MIN ACT (State)           (State) Uniform Gifts to Minors Act

Additional abbreviations may also be used though not in the above list.

                                                       -------------------------
* Please insert Social Insurance, Tax Identification,
or other identifying number of transferee.
                                                       -------------------------

For value received the undersigned hereby sells, assigns and transfers unto

--------------------------------------------------------------------------------
                      Insert name and address of transferee

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

--------------------------------------------------------------------------------
shares represented by this certificate and does hereby irrevocably constitute
and appoint

--------------------------------------------------------------------------------
the attorney of the undersigned to transfer the said shares on the books of the
Corporation with full power of substitution in the premises.

DATED:
        ----------------------   ----------------------   ----------------------
                                       Signature                 Signature
                                     of Shareholder            of Guarantor

SIGNATURE GUARANTEE:

The signature on this assignment must correspond with the name as written upon
the face of the certificate(s), in every particular, without alteration or
enlargement, or any change whatsoever and must be guaranteed by a major Canadian
Schedule I chartered bank, a major trust company in Canada or a member of an
acceptable Medallion Signature Guarantee Program (STAMP, SEMP, MSP). The
Guarantor must affix a stamp bearing the actual words "Signature Guaranteed".

In the USA, signature guarantees must be done by members of a "Medallion
Signature Guarantee Program" only.

Signature guarantees are not accepted from Treasury Branches, Credit Unions or
Caisses Populaires unless they are members of the Stamp Medallion Program.

COMPUTERSHARE'S PRIVACY NOTICE:

In the course of providing services to you and our corporate clients,
Computershare receives non-public personal information about you - your name,
address, social insurance number, securities holdings, transactions, etc. We use
this to administer your account, to better serve your and our clients' needs and
for other lawful purposes. We have prepared a Privacy Code to tell you more
about our information practices and how your privacy is protected. It is
available at our website, computershare.com, or by writing us at 100 University
Avenue, Toronto, Ontario, M5J 2Y1. *You are required to provide your SIN if you
will receive income on these securities. We will use this number for income
reporting. Computershare may also ask for your SIN as an identification-security
measure if you call or write to request service on your account; however you may
decline this usage.

SECURITY INSTRUCTIONS - INSTRUCTIONS DE SECURITE

THIS IS WATERMARKED PAPER, DO NOT ACCEPT WITHOUT
NOTING WATERMARK, HOLD TO LIGHT TO VERIFY WATERMARK.                       [MAP]

PAPIER FILIGRANE, NE PAS ACCEPTER SANS VERIFIER
LA PRESENCE DU FILIGRANE. POUR CE FAIRE, PLACER A
LA LUMIERE.

0061RB<PAGE>

                                                                     EXHIBIT 4.2

                      ASPREVA PHARMACEUTICALS CORPORATION

                       SHAREHOLDER RIGHTS PLAN AGREEMENT

                          dated as of February 4, 2005

                                    Between

                      Aspreva Pharmaceuticals Corporation

                                      And

                      Computershare Investor Services Inc.

                                As Rights Agent

<PAGE>

                         ASPREVA SHAREHOLDER RIGHTS PLAN

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                             Page
                                                                                                             ----
<S>        <C>                                                                                               <C>
ARTICLE 1  - INTERPRETATION...............................................................................     2
   1.1     Definitions....................................................................................     2
   1.2     Currency.......................................................................................    16
   1.3     Grandfather Provision..........................................................................    17
   1.4     Holder.........................................................................................    17
   1.5     Acting in Good Faith...........................................................................    17
   1.6     Acting Jointly or in Concert...................................................................    18
   1.7     Headings and References........................................................................    18
   1.8     Singular, Plural etc...........................................................................    18
   1.9     Schedule.......................................................................................    18

ARTICLE 2  - THE RIGHTS...................................................................................    18
   2.1     Legend on Certificates.........................................................................    18
   2.2     Initial Exercise Price; Exercise of Rights; Detachment of Rights...............................    19
   2.3     Adjustments to Exercise Price; Number of Rights................................................    22
   2.4     Date on which Exercise is Effective............................................................    27
   2.5     Execution, Authentication, Delivery and Dating of Rights Certificates..........................    28
   2.6     Registration, Registration of Transfer and Exchange............................................    28
   2.7     Mutilated, Destroyed, Lost and Stolen Rights Certificates......................................    29
   2.8     Persons Deemed Owners..........................................................................    30
   2.9     Delivery and Cancellation of Certificates......................................................    30
   2.10    Agreement of Rights Holders....................................................................    30
   2.11    Rights Held by the Corporation and Subsidiaries................................................    31

ARTICLE 3  - ADJUSTMENTS TO THE RIGHTS IN THE EVENT OF CERTAIN TRANSACTIONS...............................    31
   3.1     Flip-in Event..................................................................................    31

ARTICLE 4  - THE RIGHTS AGENT.............................................................................    33
   4.1     General........................................................................................    33
   4.2     Merger, Amalgamation or Consolidation or Change of Name of Rights Agent........................    34
   4.3     Duties of Rights Agent.........................................................................    35
   4.4     Change of Rights Agent.........................................................................    37

ARTICLE 5  - MISCELLANEOUS................................................................................    37
   5.1     Redemption and Waiver..........................................................................    37
   5.2     Expiration.....................................................................................    38
   5.3     Issuance of New Rights Certificates............................................................    39
   5.4     Supplements and Amendments.....................................................................    39
</TABLE>

<PAGE>

<TABLE>
<S>        <C>                                                                                                <C>
   5.5     Fractional Rights and Fractional Shares........................................................    39
   5.6     Rights of Action...............................................................................    39
   5.7     Holder of Rights Not Deemed a Shareholder......................................................    40
   5.8     Notice of Proposed Actions.....................................................................    40
   5.9     Notices........................................................................................    40
   5.10    Costs of Enforcement...........................................................................    41
   5.11    Successors.....................................................................................    42
   5.12    Benefits of this Agreement.....................................................................    42
   5.13    Governing Law..................................................................................    42
   5.14    Counterparts...................................................................................    42
   5.15    Severability...................................................................................    42
   5.16    Effective Date.................................................................................    42
   5.17    Reconfirmation After Five Years................................................................    42
   5.18    Determinations and Actions by the Board of Directors...........................................    43
   5.19    Declaration as to Non-Canadian Holders.........................................................    44
   5.20    Successor Corporations.........................................................................    44
   5.21    Time of Essence................................................................................    45
</TABLE>

   Exhibit A - Form of Rights Certificate
   Exhibit 1 - Form of Election to Exercise
   Exhibit 2 - Form of Assignment

<PAGE>

            ASPREVA SHAREHOLDER RIGHTS PLAN AGREEMENT

            THIS SHAREHOLDER RIGHTS PLAN AGREEMENT was made as of the 4th day of
February, 2005.

BETWEEN:

            ASPREVA PHARMACEUTICALS CORPORATION, a corporation continued
            under the laws of the Province of British Columbia.

            (the "CORPORATION")

                                                               OF THE FIRST PART
AND:

            COMPUTERSHARE INVESTOR SERVICES INC., a trust company existing under
            the laws of Canada.

            (the "RIGHTS AGENT")

                                                              OF THE SECOND PART

            WHEREAS the Board of Directors has determined that it is advisable
to adopt a shareholder rights plan (the "RIGHTS PLAN"), inter alia, in order to:

            (a)   facilitate the maximization of shareholder values if a
                  substantial portion of the Voting Shares of the Corporation
                  are to be acquired by any Person;

            (b)   protect the Corporation and its shareholders from abusive
                  acquisition tactics or acquisitions which may not be in the
                  best interests of the Corporation and its shareholders; and

            (c)   provide a framework in which appropriate take-over bids for
                  the Corporation can be put before its shareholders in a fair
                  and proper manner so that its shareholders can make a fully
                  informed decision with respect to such take-over bids;

            AND WHEREAS the Board of Directors has been advised that, based upon
the experiences of other corporations and taking into account the circumstances
itself, the adoption of the Rights Plan will assist the Corporation to achieve
the intended results;

            AND WHEREAS it is not the intention of the Board of Directors to
adopt the Rights Plan as a means of preventing or deterring any Person from
seeking to acquire the Voting Shares or the assets of the Corporation, provided
they do so in a manner that is fair to all

<PAGE>

shareholders, or of foreclosing the ability of the Board of Directors to take
any action that it, at its discretion, considers reasonable in the circumstances
of any such transaction having regard for the best interests of the Company and
its shareholders;

            AND WHEREAS in order to implement the Rights Plan, the Board of
Directors has:

            (a)   authorized and declared effective 5:00 P.M. (Vancouver time)
                  on the effective date of the Registration Statement (as
                  hereinafter defined) a distribution of one right (a "RIGHT")
                  in respect of each Common Share outstanding at the Close of
                  Business on the effective date of the Registration Statement
                  (the "RECORD TIME"); and

            (b)   authorized the issuance of one Right in respect of each Common
                  Share issued after the Record Time and prior to the earlier of
                  the Separation Time (as hereinafter defined) and the
                  Expiration Time (as hereinafter defined);

            AND WHEREAS each Right entitles the holder thereof, after the
Separation Time but before the Expiration Time, to purchase securities of the
Corporation (or, in certain cases, of certain other entities) pursuant to the
terms and subject to the conditions set forth herein;

            AND WHEREAS the Corporation desires to appoint the Rights Agent to
act on behalf of the Corporation and the holders of Rights, and the Rights Agent
is willing to so act, in connection with the issuance, transfer, exchange and
replacement of Rights Certificates (as hereafter defined), the exercise of
Rights and other matters referred to herein;

            NOW, THEREFORE, in consideration of the premises and the respective
agreements set forth herein, the parties hereto hereby agree as follows:

                            ARTICLE 1- INTERPRETATION

1.1 DEFINITIONS

      For purposes of this Agreement, the following terms have the meanings
indicated:

      (a)   "ACQUIRING PERSON" shall mean any Person who is the Beneficial Owner
            of 20% or more of the outstanding Voting Shares of the Corporation
            provided, however, that the term "ACQUIRING PERSON" shall not
            include:

            (i)   the Corporation or any Subsidiary or Affiliate, any employee,
                  executive or director stock ownership or other benefit plan,
                  any trust for the benefit of employees of the Corporation or
                  any Subsidiary or Affiliate, or any Person organized,
                  appointed or established by the Corporation for or pursuant to
                  the terms of any such plan or trust;

                                       2
<PAGE>

            (ii)  any Person who becomes the Beneficial Owner of 20% or more of
                  the outstanding Voting Shares of the Corporation after the
                  Record Time and such Person's Beneficial Ownership does not
                  exceed the number of Voting Shares Beneficially Owned by such
                  Person immediately prior to the Record Time other than as a
                  result of any one or a combination of:

                  (A)   acquisitions or redemptions by the Corporation of Voting
                        Shares of the Corporation which, by reducing the number
                        of Voting Shares outstanding, increases the
                        proportionate number of Voting Shares Beneficially Owned
                        by such Person to 20% or more of the Voting Shares of
                        the Corporation then outstanding ("VOTING SHARE
                        REDUCTIONS");

                  (B)   share acquisitions made pursuant to a Permitted Bid or a
                        Competing Permitted Bid ("PERMITTED BID ACQUISITIONS");

                  (C)   share acquisitions (1) in respect of which the Board of
                        Directors of the Corporation has waived the application
                        of Section 3.1 pursuant to the provisions of subsections
                        5.1(b) and 5.1(c) or (2) which were made prior to the
                        date of this Agreement; or (3) pursuant to an
                        amalgamation, merger or other statutory procedure
                        requiring shareholder approval ("EXEMPT ACQUISITION");

                  (D)   the acquisition of Voting Shares upon the exercise of
                        Convertible Securities received by such Person pursuant
                        to a Permitted Bid Acquisition, Exempt Acquisition or a
                        Pro Rata Acquisition (as defined below) ("CONVERTIBLE
                        SECURITY ACQUISITIONS"); or

                  (E)   a Pro-rata Acquisition;

                  provided, however, that if a Person shall become the
                  Beneficial Owner of 20% or more of the Voting Shares of the
                  Corporation then outstanding by reason of any one or a
                  combination of (i) Permitted Bid Acquisitions, (ii) Voting
                  Share Reductions, (iii) Exempt Acquisitions, or (iv)
                  Convertible Security Acquisitions, or (v) Pro-rata
                  Acquisitions and, after such Permitted Bid Acquisitions,
                  Voting Share Reductions, Exempt Acquisitions, Convertible
                  Security Acquisitions or Pro-rata Acquisitions, and such
                  Person is, at the time such Person becomes the Beneficial
                  Owner of 20% or more of the outstanding Voting Shares, or
                  becomes, at any time thereafter while such Person is the
                  Beneficial Owner of 20% or more of the Voting Shares of the
                  Corporation then outstanding, the Beneficial Owner of any
                  additional Voting Shares constituting more than 1% of the
                  Voting Shares then outstanding of the Corporation (other than
                  pursuant to any one or combination of Permitted Bid
                  Acquisitions, Voting Share Reductions, Exempt Acquisitions,
                  Convertible Security Acquisitions or Pro-rata Acquisitions)
                  then as of the date such Person becomes the Beneficial Owner
                  of 20% or more of the outstanding Voting Shares while

                                       3
<PAGE>
                  holding such additional Voting Shares, or becomes the
                  beneficial holder of such additional Voting Shares, while
                  the Beneficial Owner of 20% or more of the Voting Shares, as
                  the case may be, such Person shall be deemed to be an
                  "ACQUIRING PERSON";

            (iii) for the period of 10 days after the Disqualification Date (as
                  hereinafter defined), any Person who becomes the Beneficial
                  Owner of 20% or more of the outstanding Voting Shares of the
                  Corporation as a result of such Person becoming disqualified
                  from relying on paragraph 1.1(g)(v) hereof solely because such
                  Person has made or proposes to make a tender or exchange offer
                  or Take-over Bid in respect of securities of the Corporation
                  alone or by acting jointly or in concert with any other
                  Person; the first date of public announcement (which, for
                  purposes of this definition, shall include, without
                  limitation, a report filed pursuant to Sections 101 and 102 of
                  the Securities Act (Ontario), Section 111 of the Securities
                  Act (British Columbia) or Section 13(d) under the 1934
                  Exchange Act) by such Person or the Corporation of the intent
                  to commence such a tender or exchange offer or Take-over Bid
                  (or pursuant to any comparable or successor laws, rules or
                  regulations) being herein referred to as the "DISQUALIFICATION
                  DATE"; or

            (iv)  an underwriter or member of a banking or selling group that
                  becomes the Beneficial Owner of 20% or more of the Voting
                  Shares in connection with a distribution of securities by way
                  of prospectus or private placement.

      (b)   "ADJUSTED EXERCISE PRICE" means the price at which a holder may
            purchase the securities issuable upon exercise of Rights pursuant to
            the terms of paragraph 3.1(a)(ii) which, until adjustment thereof in
            accordance with the terms hereof, shall be equal to the Exercise
            Price multiplied by a fraction in which:

            (i)   the numerator is the number of Shares per Right that may be
                  purchased pursuant to paragraph 3.1(a)(ii); and

            (ii)  the denominator is the number of Shares per Right that could
                  have been purchased pursuant to paragraph 3.1(a)(i) in the
                  event that there had been sufficient authorized but unissued
                  Common Shares to permit each holder of a Right (other than an
                  Acquiring Person or a transferee of the kind described in
                  paragraph 3.1(b)(ii)) to purchase the number of Common Shares
                  to which they would have been entitled under paragraph
                  3.1(a)(i);

      (c)   "ADJUSTMENT FACTOR" shall mean a fraction in which:

            (i)   the numerator is equal to Corporation's authorized but
                  unissued Voting Shares; and

            (ii)  the denominator is equal to Corporation's issued and
                  outstanding Voting Shares minus those Voting Shares that the
                  Acquiring Person Beneficially owns;

                                       4
<PAGE>

      (d)   "AFFILIATE" shall mean, when used to indicate a relationship with a
            specified body corporate, a Person that directly or indirectly
            through one or more intermediaries controls, or is a body corporate
            controlled by, or under common control with, such specified body
            corporate;

      (e)   "AGREEMENT" means this Rights Agreement as amended, modified or
            supplemented from time to time;

      (f)   "ASSOCIATE" shall mean, when used to indicate a relationship with a
            specified Person, (i) a spouse of that Person, (ii) any Person of
            the same or opposite sex with whom that Person is living in a
            conjugal relationship outside marriage, (iii) any relative of that
            Person if that relative has the same residence as that Person or
            (iv) any relative of such spouse or other Person referred to in the
            immediately preceding clauses (i), (ii) or (iii) above, if that
            relative has the same residence as the specified Person;

      (g)   Subject to Section 1.3, a Person shall be deemed the "BENEFICIAL
            OWNER", and to have "BENEFICIAL OWNERSHIP", of, and to "BENEFICIALLY
            OWN":

            (i)   any securities of which such Person or any such Person's
                  Affiliates or Associates is an owner at law or in equity,

            (ii)  any securities as to which such Person or any of such Person's
                  Affiliates or Associates has

                  (A)   the right to acquire upon the exercise of Convertible
                        Securities; or

                  (B)   the right to acquire (whether such right is exercisable
                        immediately or the lapse or after the passage of time or
                        upon the occurrence of a contingency or otherwise)
                        pursuant to any agreement, arrangement, pledge or
                        understanding,

            in either case where such right is exercisable within 60 days and
            whether or not on condition or the happening of any contingency
            (other than customary agreements with and between underwriters and
            banking group or selling group members with respect to a
            distribution of securities and other than pledges of securities in
            the ordinary course of business), or

            (iii) any securities which are Beneficially Owned, directly or
                  indirectly, within the meaning of paragraphs 1.1(g)(i) or (ii)
                  by any other Person with which such Person or any of such
                  Person's Affiliates or Associates in acting jointly or in
                  concert;

            provided, however, that a Person shall not be deemed the "BENEFICIAL
            OWNER", or to have "BENEFICIAL OWNERSHIP" of, or to "BENEFICIALLY
            OWN", any security:

            (iv)  because such security has been agreed to be deposited or
                  tendered pursuant to a Permitted Lock-up Agreement, or is
                  otherwise deposited or

                                       5
<PAGE>

                  tendered, to any Take-over Bid made by such Person, made by
                  any of such Person's Affiliates or Associates or made by any
                  other Person acting jointly or in concert with such Person
                  until such deposited or tendered security has been taken up or
                  paid for, whichever shall first occur;

            (v)   because such Person, or any of such Persons' Affiliates or
                  Associates or any other Person referred to in paragraph
                  1.1(g)(iii), holds such security provided that:

                  (A)   the ordinary business of any such Person (the
                        "INVESTMENT MANAGER") includes the management of
                        investment funds for others (which, without limitation,
                        may include or be limited to one or more employee
                        benefit plans or pension plans) and such security is
                        held by the Investment Manager in the ordinary course of
                        such business in the performance of such Investment
                        Manager's duties for the account of any other Person,
                        including the acquisition or holding of securities for
                        non-discretionary accounts on behalf of a client by a
                        broker or dealer registered under applicable securities
                        laws (a "CLIENT");

                  (B)   such Person (the "TRUST COMPANY") is licensed to carry
                        on the business of a trust company under applicable laws
                        and, as such, acts as trustee or administrator or in a
                        similar capacity in relation to the estates of deceased
                        or incompetent Persons (each an "ESTATE ACCOUNT") or in
                        relation to other accounts (each an "OTHER ACCOUNT") and
                        holds such security in the ordinary course of such
                        duties for such Estate Accounts or Other Accounts;

                  (C)   the ordinary business of such person includes, acting as
                        an agent of the Crown in the management of public assets
                        (the "CROWN AGENT");

                  (D)   the Person is an independent person (the "INDEPENDENT
                        PERSON") established by statute for, among other things,
                        and the ordinary business or activity of such Person
                        includes, the administration of investment funds for
                        employee benefit plans, pension plans, insurance plans
                        or various public bodies; or

                  (E)   such Person (the "ADMINISTRATOR") is the administrator
                        or trustee of one or more pension funds, plans or
                        related trusts (a "PLAN") registered or qualified under
                        the laws of Canada or any Province thereof or the laws
                        of the United States of America or any State thereof or
                        is a Plan;

                  provided that the Investment Manager, the Trust Company, the
                  Crown Agent, the Independent Person, the Administrator and the
                  Plan, as the case may be, is not then making, or has not
                  announced a current intention to

                                       6
<PAGE>

                  make, a Take-over Bid alone or by acting jointly or in concert
                  with any other Person, other than an Offer to Acquire Voting
                  Shares or other securities pursuant to a distribution by the
                  Corporation or by means of ordinary market transactions
                  (including pre-arranged trades entered into in the ordinary
                  course of business of such Person) executed through the
                  facilities of a stock exchange, securities quotation system or
                  organized over-the-counter market, alone, through its
                  Affiliates or Associates or by acting jointly or in concert
                  with any other Person;

            (vi)  because such Person is (1) a Client of the same Investment
                  Manager as another Person on whose account the Investment
                  Manager holds such security, (2) because such Person is an
                  Estate Account or an Other Account of the same Trust Company
                  as another Person on whose account the Trust Company holds
                  such security or (3) a Plan with the same Administrator as
                  another Plan on whose account the Administrator holds such
                  security;

            (vii) where such Person is:

                  (A)   a Client of an Investment Manager and such security is
                        owned at law or in equity by the Investment Manager;

                  (B)   an Estate Account or an Other Account of a Trust Company
                        and such security is owned at law or in equity by the
                        Trust Company; or

                  (C)   a Plan and such security is owned at law or in equity by
                        the Administrator of the Plan;

            (viii) where such Person is a registered holder of such security as
                   a result of carrying on the business of, or acting as a
                   nominee of, a securities depository;

            For the purposes of this Agreement in determining the percentage of
            the outstanding Voting Shares with respect to which a Person is or
            is deemed to be the Beneficial Owner, all Voting Shares as to which
            such Person is deemed the Beneficial Owner shall be deemed
            outstanding;

      (h)   "BOARD OF DIRECTORS" shall mean the board of directors of the
            Corporation or, if duly constituted and whenever duly empowered, the
            executive committee of the board of directors of the Corporation;

      (i)   "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or a
            day that is treated as a holiday at the Corporation's or the Rights
            Agent's principal executive offices in Canada;

                                       7
<PAGE>

      (j)   "BUSINESS CORPORATIONS ACT (BRITISH COLUMBIA)" shall mean the
            Business Corporations Act, S.C.B. 2002, c.57 as amended and the
            regulations thereunder, and any comparable or successor laws or
            regulations thereto;

      (k)   "CANADIAN DOLLAR EQUIVALENT" of any amount which is expressed in
            United States dollars shall mean on any day the Canadian dollar
            equivalent of such amount determined by reference to the
            Canadian-U.S. Exchange Rate on such date;

      (l)   "CANADIAN-U.S. EXCHANGE RATE" shall mean on any date the inverse of
            the U.S.-Canadian Exchange Rate;

      (m)   "CLOSE OF BUSINESS" on any given date shall mean the time on such
            date (or, if such date is not a Business Day, the time on the next
            succeeding Business Day) at which the office of the transfer agent
            for the Common Shares in the City of Vancouver (or, after the
            Separation Time, the offices of the Rights Agent in the City of
            Vancouver) becomes closed to the public;

      (n)   "COMMON SHARES" shall mean Common Shares of the Company and, when
            used with reference to any Person other than the Corporation, shall
            mean the class or classes of shares (or similar equity interest)
            with the greatest per share voting power entitled to vote generally
            in the election of all directors of such other Person or the equity
            securities or other equity interest of an entity having power
            (whether or not exercised) to control or direct the management of
            such other Person; if such other Person is a Subsidiary of another
            person, "such other Person" as used herein shall mean the Person or
            Persons which ultimately control such first-mentioned Person;

      (o)   "COMPETING PERMITTED BID" means a Take-over Bid that:

            (i)   is made for the Voting Shares after a Permitted Bid for Voting
                  Shares has been made but prior to the expiry of such Permitted
                  Bid;

            (ii)  satisfies all of the conditions of the definition of Permitted
                  Bid subject to paragraph 1.1(o)(iii) below; and

            (iii) contains, and the take-up and payment for securities tendered
                  or deposited is subject to, an irrevocable and unqualified
                  condition that no Voting Shares will be taken up and paid for
                  pursuant to the Take-over Bid prior to the close of business
                  on a date which is not earlier than the later of 35 days after
                  the date of the Take-over Bid or the 60th day following the
                  date of the earliest Permitted Bid;

      (p)   "CONVERTIBLE SECURITIES" means, at any time, any securities issued
            by the Corporation from time to time (other than the Rights)
            carrying any exercise, conversion or exchange right pursuant to
            which the holder thereof may acquire Voting Shares or other
            securities which are convertible into, exercisable into or
            exchangeable for Voting Shares;

                                       8

<PAGE>

      (q)   "CONVERTIBLE SECURITY ACQUISITIONS" has the meaning set forth in the
            definition of "Acquiring Person" herein;

      (r)   "CORPORATION" means Aspreva Pharmaceuticals Corporation;

      (s)   "EXEMPT ACQUISITION" shall have the meaning ascribed thereto in the
            definition of Acquiring Person;

      (t)   "EXERCISE PRICE" shall mean, as of any date, the price at which a
            holder may purchase the securities issuable upon exercise of one
            whole Right and until adjustment or amendment thereof in accordance
            with the terms hereof, the Exercise Price shall equal $100;

      (u)   "EXPIRATION TIME" shall mean the earlier of:

            (i)   the Termination Time; or

            (ii)  the Close of Business on that date which is the earlier of:

                  (A)   the date of termination of the next annual general
                        meeting of the shareholders of the Corporation after the
                        date of this Agreement if this Agreement is not approved
                        at such meeting as required by Section 5.16 herein;

                  (B)   the date of termination of the meeting of the
                        shareholders of the Corporation called to consider the
                        reconfirmation of this Agreement as provided for in
                        Section 5.17 herein if this Agreement is not reconfirmed
                        at such meeting as required by Section 5.17 herein; and

                  (C)   the tenth anniversary of the date of this Agreement, if
                        this Agreement is approved and reconfirmed as required
                        by Sections 5.16 and 5.17, respectively;

      (v)   "FLIP-IN EVENT" shall mean a transaction in which any Person shall
            become an Acquiring Person;

      (w)   "INDEPENDENT SHAREHOLDERS" shall mean holders of outstanding Voting
            Shares of the Corporation excluding (i) any Acquiring Person; or
            (ii) any Person (other than a Person who is deemed not to
            Beneficially Own such Voting Shares by reason of paragraph
            1.1(g)(v)) that is making or has announced a current intention to
            make a Take-over Bid for Voting Shares of the Corporation (including
            a Permitted Bid or a Competing Permitted Bid) but excluding any such
            Person if the Take-over Bid so announced or made by such Person has
            been withdrawn, terminated or, expired; or (iii) any Affiliate or
            Associate of such Acquiring Person or a Person referred to in
            paragraph (ii); or (iv) any Person acting jointly or in concert with
            such Acquiring Person or a Person referred to in paragraph (ii); or
            (v) a Person who is a trustee of any employee benefit plan, share
            purchase plan, deferred profit

                                       9
<PAGE>

            sharing plan or any similar plan or trust for the benefit of
            employees of the Corporation or a Subsidiary of the Corporation,
            unless the beneficiaries of the plan or trust direct the manner in
            which the Voting Shares are to be voted or direct whether the Voting
            Shares are to be tendered to a Take-over Bid;

      (x)   "MARKET PRICE" per share of any securities on any date of
            determination shall mean the average of the daily Closing Price Per
            Share of such securities (determined as described below) on each of
            the 20 consecutive Trading Days through and including the Trading
            Day immediately preceding such date; provided, however, that if an
            event of a type analogous to any of the events described in Section
            2.3 hereof shall have caused the closing prices used to determine
            the Market Price on any Trading Days not to be fully comparable with
            the closing price on such date of determination or, if the date of
            determination is not a Trading Day, on the immediately preceding
            Trading Day, each such closing price so used shall be appropriately
            adjusted in a manner analogous to the applicable adjustment provided
            for in Section 2.3 hereof in order to make it fully comparable with
            the closing price on such date of determination or, if the date of
            determination is not a Trading Day, on the immediately preceding
            Trading Day. The "CLOSING PRICE PER SHARE" of any securities on any
            date shall be:

            (i)   the closing board lot sale price, or, if such price is not
                  available, the average of the closing bid and asked prices,
                  for each share as reported by the principal stock exchange in
                  Canada on which such securities are listed and posted for
                  trading (provided that if at the date of determination such
                  securities are listed or admitted to trading on more than one
                  stock exchange or national securities quotation system, such
                  price or prices shall be determined based on the stock
                  exchange or national securities quotation system on which such
                  securities are then listed or admitted to trading on which the
                  largest number of such securities were traded during the most
                  recently completed calendar year);

            (ii)  if the securities are not listed or posted for trading on any
                  stock exchange in Canada, the last sale price, regular way,
                  or, in case no such sale takes place on such date, the average
                  of the closing bid and asked prices, regular way, for each
                  share of such securities as reported in the principal
                  consolidated transaction reporting system with respect to
                  securities listed or posted for trading on the principal
                  national securities exchange in the United States on which
                  such securities are listed or posted for trading;

            (iii) if for any reason none of such prices is available on such
                  date or the securities are not listed or admitted to trading
                  on a stock exchange in Canada or a national securities
                  exchange in the United States, the last quoted price, or if
                  not so quoted, the average of the high bid and low asked
                  prices for each share of such securities in the
                  over-the-counter market; or

            (iv)  if on any such date the securities are not quoted by any such
                  organization, the average of the closing bid and asked prices
                  as furnished by a

                                       10
<PAGE>

                  professional market maker making a market in the securities
                  selected in good faith by the Board of Directors of the
                  Corporation;

            provided, however, that if on any such date the securities are not
            traded in the over-the-counter market, the closing price per share
            of such securities on such date shall mean the fair value per share
            of such securities on such date as determined in good faith by the
            Board of Directors of the Corporation, after consultation with a
            nationally and internationally recognized investment banking firm
            with respect to the fair value per share of such securities. The
            Market Price shall be expressed in United States dollars and if
            initially determined in respect of any day forming part of the 20
            consecutive Trading Day period in question in Canadian dollars, such
            amount shall be translated into United States dollars at the U.S.
            Dollar Equivalent thereof;

      (y)   "1933 SECURITIES ACT" shall mean the Securities Act of 1933 of the
            United States, as amended, and the rules and regulations thereunder,
            and any comparable or successor laws or regulations thereto;

      (z)   "1934 EXCHANGE ACT" shall mean the Securities Exchange Act of 1934
            of the United States, as amended, and the rules and regulations
            thereunder, and any comparable or successor laws or regulations
            thereto;

      (aa)  "OFFER TO ACQUIRE" shall include:

            (i)   an offer to purchase, or a solicitation of an offer to sell,
                  Voting Shares; and

            (ii)  an acceptance of an offer to sell Voting Shares, whether or
                  not such offer to sell has been solicited;

            or any combination thereof, and the Person accepting an offer to
            sell shall be deemed to be making an Offer to Acquire to the Person
            that made the offer to sell;

      (bb)  "OFFEROR" shall mean a Person who has announced a current intention
            to make or who is making a Take-over Bid;

      (cc)  "OFFEROR'S SECURITIES" means Voting Shares Beneficially Owned on the
            date of an Offer to Acquire by any Person who makes a Take-over Bid
            or by any Person acting jointly or in concert with such Person;

      (dd)  "PERMITTED BID" means a Take-over Bid made by means of a Take-over
            Bid Circular and which also complies with the following additional
            provisions:

            (i)   the Take-over Bid is made to all holders of record of Voting
                  Shares wherever resident as registered on the books of the
                  Corporation, on identical terms;

            (ii)  the Take-over Bid contains irrevocable and unqualified
                  provisions that all Voting Shares may be deposited pursuant to
                  the Take-over Bid at any time

                                       11
<PAGE>

                  prior to the Close of Business on the date referred to in
                  paragraph 1.1(dd)(iii) and that all Voting Shares deposited
                  pursuant to the Take-over Bid may be withdrawn at any time
                  prior to the Close of Business on such date;

            (iii) the Take-over Bid contains, and the take up and payment for
                  securities tendered or deposited is subject to, an irrevocable
                  and unqualified provision that no Voting Shares will be taken
                  up or paid for pursuant to the Take-over Bid prior to the
                  Close of Business on a date which is not less than 60 days
                  following the date of the Take-over Bid and that Voting Shares
                  shall not be taken up and paid for by the Offeror unless
                  Independent Shareholders have deposited or tendered shares
                  representing more than 50% of the Voting Shares then
                  outstanding pursuant to the Take-over Bid and have not
                  withdrawn such shares; and

            (iv)  the Take-over Bid contains an irrevocable and unqualified
                  provision that, should the condition referred to in paragraph
                  1.1(dd)(iii) be met, the Offeror will make a public
                  announcement of that fact, the Take-over Bid will be extended
                  on the same terms for a period of not less than 10 days from
                  the date referred to in paragraph 1.1(dd)(iii) and where a
                  greater number of such Voting Shares is deposited pursuant
                  thereto than the Offeror is bound or willing to acquire under
                  the Take-over Bid, the Voting Shares shall be taken up and
                  paid for on a pro rata basis;

      (ee)  "PERMITTED BID ACQUISITIONS" shall have the meaning ascribed thereto
            in the definition of Acquiring Person;

      (ff)  "PERMITTED LOCK-UP AGREEMENT" means an agreement between an Offeror,
            any of its Affiliates or Associates or any other Person acting
            jointly or in concert with the Offeror and a Person (the "LOCKED-UP
            PERSON") (the terms of which are publicly disclosed and a copy of
            which is made available to the public (including the Corporation)
            not later than the date of the Lock-up Bid (as defined below), or if
            the Lock-up Bid has been made prior to the date of the Lock-up
            Agreement not later than the first Business Day following the date
            of the Lock-up Agreement) who is not an Affiliate or Associate of
            the Offeror or a Person acting jointly or in concert with the
            Offeror whereby the Locked-up Person agrees to deposit or tender the
            Voting Shares held by the Locked-up Person to the Offeror's
            Take-over Bid or to any Take-over Bid made by any of the Offeror's
            Affiliates or Associates or made by any other Person acting jointly
            or in concert with the Offeror (the "LOCK-UP BID"), where the
            agreement:

            (i)   (A)   permits the Locked-up Person to withdraw the Voting
                        Shares in order to tender or deposit the Voting Shares
                        to another Take-over Bid or to support another
                        transaction that contains an offering price for each
                        Voting Share that exceeds, or provides a value for each
                        Voting Share that is greater than, the offering price
                        contained or proposed to be contained in the Lock-up
                        Bid;

                                       12
<PAGE>

                  (B)   permits the Locked-up Person to withdraw the Voting
                        Shares in order to tender or deposit the Voting Shares
                        to another Take-over Bid or to support another
                        transaction that contains an offering price for each
                        Voting Share that exceeds, or provides a value for each
                        Voting Share that is greater than, the offering price
                        contained in or proposed to be contained in, the Lock-up
                        Bid by as much or more than a specified amount (the
                        "SPECIFIED AMOUNT") and the Specified Amount is not
                        greater than 7% of the offering price that is contained
                        or proposed to be contained in the Lock-up Bid; or

                  (C)   permits the Locked-up Person to withdraw the Voting
                        Shares in order to tender or deposit the Voting Shares
                        to another Take-over Bid for a number of Voting Shares
                        at least 7% greater than the number of Voting Shares
                        that were the subject of the Lock-up Bid at a price that
                        is not less than the price or value per Voting Share
                        offered under the Lock-up Bid; and

            (ii)  does not provide for any "break-up fees", "top-up fees",
                  penalties, expenses or other amounts that exceed in the
                  aggregate the cash equivalent of 2.5% of the price or value
                  payable to the Locked-up Person under the Take-over Bid or
                  one-half of the increased price or value that is paid pursuant
                  to another Take-over Bid or transaction, whichever is the
                  greater, in the event that the Locked-up Person fails to
                  tender Voting Shares pursuant thereto in order to accept the
                  other Take-over Bid or support another transaction;

            and for greater clarity, the agreement may contain a right of first
            refusal or require a period of delay to give the Person who made the
            Lock-up Bid an opportunity to match a higher price in another
            Take-over Bid or other similar limitation on a Locked-up Person's
            right to withdraw Voting Shares from the agreement, so long as the
            limitation does not preclude the exercise by the Locked-up Person of
            the right to withdraw Voting Shares during the period of the other
            Take-over Bid or transaction;

      (gg)  "PERSON" shall include any individual, firm, partnership,
            association, trust, trustee, personal representative, group, body
            corporate, corporation, unincorporated organization, syndicate,
            governmental entity, or other entity;

      (hh)  "PRO-RATA ACQUISITIONS" means acquisitions by a Person of Voting
            Shares pursuant to (i) any dividend reinvestment plan, such purchase
            plan or other plan of the Corporation made available to all holders
            of Voting Shares (other than holders resident in any jurisdiction
            where participation in such plan is restricted or impractical as a
            result of applicable law); (ii) a stock dividend, a stock split or
            other event pursuant to which such Person becomes the Beneficial
            Owner of Voting Shares on the same pro rata basis as all other
            holders of Voting Shares of the same class or series; (iii) the
            acquisition or exercise of rights to purchase Voting Shares
            distributed to all holders of Voting Shares (other than holders

                                       13
<PAGE>

            resident in any jurisdiction where such distribution or exercise is
            restricted or impractical as a result of applicable law) by the
            Corporation pursuant to a rights offering (but only if such rights
            are acquired directly from the Corporation); or (iv) a distribution
            of Voting Shares or Convertible Securities in respect thereof
            offered pursuant to a prospectus or by way of a private placement by
            the Corporation or a conversion or exchange of any such Convertible
            Security, provided that, in the cases of (iii) and (iv) above, such
            Person does not thereby acquire a greater percentage of Voting
            Shares or Convertible Securities so offered than the Person's
            percentage of Voting Shares Beneficially Owned immediately prior to
            such acquisition;

      (ii)  "REGISTRATION STATEMENT" means the Corporation's registration
            statement filed with the United States Securities and Exchange
            Commission dated January 24, 2005;

      (jj)  "REGULAR PERIODIC CASH DIVIDEND" shall mean cash dividends paid at
            regular intervals in any fiscal year of the Corporation to the
            extent that such cash dividends do not exceed, in the aggregate, the
            greatest of:

            (i)   200% of the aggregate amount of cash dividends declared
                  payable by the Corporation on its Common Shares in its
                  immediately preceding fiscal year;

            (ii)  300% of the arithmetic mean of the aggregate amounts of cash
                  dividends declared payable by the Corporation on its Common
                  Shares in its three immediately preceding fiscal years; and

            (iii) 100% of the aggregate consolidated net income of the
                  Corporation, before extraordinary items, for its immediately
                  preceding fiscal year;

      (kk)  "RIGHTS" means the rights authorized to be issued by the Board of
            Directors and governed by this Agreement;

      (ll)  "RIGHTS AGENT" means Computershare Investor Services Inc.;

      (mm)  "RIGHTS CERTIFICATE" shall mean the certificates representing the
            rights after the Separation Time, which shall be in the form
            attached hereto as Exhibit A;

      (nn)  "SECURITIES ACT (BRITISH COLUMBIA)" shall mean the Securities Act,
            R.S.B.C. 1996, c.418 as amended, and the regulations thereunder, and
            any comparable or successor laws or regulations thereto;

      (oo)  "SECURITIES ACT (ONTARIO)" shall mean the Securities Act, R.S.O.
            1990, c.55 as amended, and the regulations thereunder, and any
            comparable or successor laws or regulations thereto;

      (pp)  "SEPARATION TIME" shall mean the Close of Business on the earlier
            of:

                                       14
<PAGE>

            (i)   the tenth Business Day after the Stock Acquisition Date; and

            (ii)  the tenth Business Day after the date of the commencement of,
                  or first public announcement of the intent of any Person
                  (other than the Corporation or any Subsidiary of the
                  Corporation) to commence a Take-over Bid (other than a
                  Permitted Bid or Competing Permitted Bid so long as such
                  Take-over Bid continues to satisfy the requirements of a
                  Permitted Bid or Competing Permitted Bid);

            or such later date as may be determined by the Board of Directors
            provided that, if the Board of Directors determines pursuant to
            Section 5.1 to waive the application of Section 3.1 to a Flip-in
            Event, or if any Take-over Bid referred to in paragraph 1.1(pp)(ii)
            expires, is cancelled, terminated or otherwise withdrawn prior to
            the Separation Time, such offer shall be deemed, for purposes of
            this subsection 1.1(pp), never to have been made;

      (qq)  "SHARES" shall mean shares in the capital of the Corporation;

      (rr)  "STOCK ACQUISITION DATE" shall mean the first date of public
            announcement (which, for purposes of this definition, shall include,
            without limitation, a report filed pursuant to Sections 101 and 102
            of the Securities Act (Ontario), Section 111 of the Securities Act
            (British Columbia) or Section 13(d) under the 1934 Exchange Act) by
            the Corporation or an Acquiring Person that a Person has become an
            Acquiring Person;

      (ss)  "SUBSIDIARY" of any specified Person shall have the meaning ascribed
            thereto in the Business Corporations Act (British Columbia);

      (tt)  "TAKE-OVER BID" means an Offer to Acquire Voting Shares or
            securities convertible into Voting Shares, where the Voting Shares
            subject to the Offer to Acquire, together with the Voting Shares
            into which the securities subject to the Offer to Acquire are
            convertible, and the Offeror's Securities, constitute in the
            aggregate 20% or more of the outstanding Voting Shares at the date
            of the Offer to Acquire;

      (uu)  "TERMINATION TIME" shall mean the time at which the right to
            exercise Rights shall terminate pursuant to Sections 5.1, 5.16 or
            5.17 hereof;

      (vv)  "TRADING DAY" when used with respect to any securities, shall mean a
            day on which the principal securities exchange on which such
            securities are listed or posted for trading is open for the
            transaction of business or, if the securities are not listed or
            posted for trading on any securities exchange, a Business Day;

      (ww)  "U.S.-CANADIAN EXCHANGE RATE" shall mean on any date:

            (i)   if on such date the Bank of Canada sets an average noon spot
                  rate of exchange for the conversion of one United States
                  dollar into Canadian dollars, such rate; and

                                       15
<PAGE>

            (ii)  in any other case, the rate for such date for the conversion
                  of one United States dollar into Canadian dollars which is
                  calculated in the manner which shall be determined by the
                  Board of Directors of the Corporation from time to time acting
                  in good faith;

      (xx)  "U.S. DOLLAR EQUIVALENT" of any amount which is expressed in
            Canadian dollars shall mean on any day the United States dollar
            equivalent of such amount determined by reference to the U.S. -
            Canadian Exchange Rate on such date;

      (yy)  "VOTING SHARES" shall, when used with reference to the Corporation,
            mean collectively the Common Shares of the Corporation, and any
            other shares of capital stock of the Corporation to which is
            attached a right to vote generally for the election of directors
            and, when used with reference to any other Person other than the
            Corporation, means a Common Share of such Person and any other share
            of capital stock or voting interests of such person entitled to vote
            generally for the election of directors. The percentage of Voting
            Shares Beneficially Owned by any Person, shall, for the purposes of
            this Agreement be and be deemed to be the product determined by the
            formula:

                    100 x A
                          -
                          B

            where

            A =   the number of votes for the election of all directors
                  generally attaching to the Voting Shares Beneficially Owned by
                  such Person; and

            B =   the number of votes for the election of all directors
                  generally attaching to all outstanding Voting Shares;

            and where any Person is deemed to Beneficially Own unissued Voting
            Shares which may be acquired pursuant to Convertible Securities,
            such Voting Shares shall be deemed to be outstanding for the purpose
            of calculating the percentage of Voting Shares Beneficially Owned by
            such Person, but no other unissued Voting Shares which may be
            acquired pursuant to any other outstanding Convertible Securities
            shall, for the purposes of the calculation, be deemed to be
            outstanding;

      (zz)  "VOTING SHARE REDUCTION" shall have the meaning attributed thereto
            in the definition of Acquiring Person.

1.2         Currency

            All sums of money which are referred to in this Agreement are
expressed in lawful money of United States, unless otherwise specified.

                                       16
<PAGE>

1.3         GRANDFATHER PROVISION

            For the purposes of determining whether a Person is an Acquiring
Person and interpreting the definition of Acquiring Person, a Person shall not
be and shall not be deemed to be an Acquiring Person if such Person:

      (a)   was the Beneficial Owner of 20% or more of the outstanding Voting
            Shares of the Corporation determined as at the Record Time;

      (b)   becomes the Beneficial Owner of 20% or more of the outstanding
            Voting Shares of the Corporation after the Record Time and such
            Person's Beneficial Ownership of Voting Shares of the Corporation
            does not exceed the number of Voting Shares of the Corporation
            Beneficially Owned by such Person immediately prior to the Record
            Time by more than 2% of the then issued and outstanding Voting
            Shares of the Corporation; or

      (c)   is a person or entity affiliated with Sprout Capital IX, L.P. or
            Sprout Entrepreneurs Funds, L.P. or any group of such persons, and
            such person, entity or group is the Beneficial Owner of not more
            than 25% of the then issued and outstanding Voting Shares of the
            Corporation;

provided, however, that this exception shall not be, and shall cease to be,
applicable to a Person in the event that such Person shall, after the Record
Time, become the Beneficial Owner of additional Voting Shares of the Corporation
constituting more than 2% of the Voting Shares of the Corporation then
outstanding other than pursuant to Permitted Bid Acquisitions, through Exempt
Acquisitions, Voting Share Reductions or Pro-rata Acquisitions; and provided
further that, in the event that this exception shall cease to be applicable to a
Person as aforesaid, such a person shall be and shall be deemed to be an
Acquiring Person as at and from the time that this exception shall cease to be
applicable.

1.4         HOLDER

            As used in this Agreement, unless the context otherwise requires the
term "HOLDER" when used with reference to Rights, means the registered holder of
such rights or prior to the Separation Time, the Shares with which such Rights
are associated.

1.5         ACTING IN GOOD FAITH

            For purposes of this Agreement, when any determination or decision
is made by the Board of Directors pursuant to this Agreement, the Board of
Directors shall exercise its powers and discharge its duties honestly and in
good faith with a view to the best interests of the Corporation and each
director shall exercise the care, diligence and skill that a reasonably prudent
person would exercise in comparable circumstances all in accordance with the
requirements of the Business Corporations Act (British Columbia).

                                       17
<PAGE>

1.6         ACTING JOINTLY OR IN CONCERT

            For the purposes of this Agreement, a Person is acting jointly or in
concert with every Person who is a party to any agreement, commitment or
understanding, whether formal or informal, with the first Person or any
Associate or Affiliate thereof to acquire or offer to acquire Voting Shares
(other than customary agreements with and between underwriters and/or banking
group members and/or selling group members with respect to a public offering or
private placement of securities or pledges of securities in the ordinary course
of business).

1.7         HEADINGS AND REFERENCES

            The headings of the articles, sections and subsections of this
Agreement and the table of contents are inserted for convenience of reference
only and shall not affect the construction or interpretation of this Agreement.
All references to articles, sections, subsections and paragraphs are to
articles, sections, subsections and paragraphs of this Agreement. The words
"HERETO", "HEREIN", "HEREOF", "HEREUNDER", "THIS AGREEMENT", "THE RIGHTS
AGREEMENT" and similar expressions refer to this Agreement including the
schedule attached hereto as a whole, as the same may be amended, modified or
supplemented at any time or from time to time.

1.8         SINGULAR, PLURAL ETC.

            In this Agreement, where the context so requires, words importing
the singular number include the plural and vice versa and words importing gender
include the masculine, feminine and neuter genders.

1.9         SCHEDULE

            Any schedule attached hereto forms part of this Agreement.

                             ARTICLE 2 - THE RIGHTS

2.1         LEGEND ON CERTIFICATES

            Certificates for the Common Shares, including without limitation,
Common Shares issued upon the conversion of Convertible Securities, issued after
the Record Time but prior to the earlier of the Separation Time and the
Expiration Time shall evidence one Right for each Common Share represented
thereby and shall have impressed on, printed on, typewritten on or otherwise
affixed to them the following legend:

            "Until the Separation Time (as defined in the Rights Agreement
            referred to below), this certificate also evidences and entitles the
            holder hereof to certain Rights as set forth in the Shareholder
            Rights Plan Agreement, dated as of the 4th day of February , 2005 as
            such may be from time to time amended, restated, varied or replaced,
            between Aspreva Pharmaceuticals Corporation (the "CORPORATION") and
            Computershare Investor Services Inc., as Rights Agent (the "RIGHTS
            AGREEMENT"), the terms of which are

                                       18
<PAGE>

            hereby incorporated herein by reference and a copy of which is on
            file at the principal executive offices of the Corporation. Under
            certain circumstances, as set forth in the Rights Agreement, such
            Rights may be amended or redeemed, may expire, may become void (if,
            in certain cases, they are "BENEFICIALLY OWNED" by an "ACQUIRING
            PERSON", as such terms are defined in the Rights Agreement) whether
            currently held or on behalf or such Person or any subsequent holder
            or may be evidenced by separate certificates and may no longer be
            evidenced by this certificate. The Corporation will mail or arrange
            for the mailing of a copy of the Rights Agreement to the holder of
            this certificate without charge within five days after the receipt
            of a written request therefor."

            Certificates representing Common Shares that are issued and
outstanding at the Record Time shall evidence one Right for each Common Share
evidenced thereby notwithstanding the absence of the foregoing legend until the
earlier of the Separation Time and the Expiration Time.

2.2         INITIAL EXERCISE PRICE; EXERCISE OF RIGHTS; DETACHMENT OF RIGHTS

      (a)   Subject to adjustment as herein set forth, each Right will entitle
            the holder thereof, from and after the Separation Time and prior to
            the Expiration Time, to purchase, for the Exercise Price or its
            Canadian Dollar Equivalent as at the Business Day immediately
            preceding the day of exercise of the Right, one Common Share.

      (b)   Until the Separation Time:

            (i)   no Right may be exercised; and

            (ii)  each Right will be evidenced by the certificate for the
                  associated Share (which certificates shall also be deemed to
                  be Rights Certificates) and will be transferable only together
                  with, and will be transferred by a transfer of, such
                  associated Share.

      (c)   From and after the Separation Time and prior to the Expiration Time,
            the Rights:

            (i)   may be exercised; and

            (ii)  will be registrable and transferable independent of Shares.

            Promptly following the Separation Time the Rights Agent will mail to
            each holder of record of Common Shares as of the Separation Time
            and, in respect of each Convertible Security converted into Common
            Shares after the Separation Time and prior to the Expiration Time
            promptly after such conversion to the holder so converting (other
            than an Acquiring Person and other than, in respect of any Rights
            Beneficially Owned by such Acquiring Person which are not held of
            record by such Acquiring Person, the holder of Record of such Rights
            (a

                                       19

<PAGE>

            "NOMINEE")), at such holder's address as shown by the records of the
            Corporation (and the Corporation hereby agrees to furnish copies of
            such records to the Rights Agent for this purpose),

                  (A)   a Rights Certificate in substantially the form of
                        Exhibit A hereto appropriately completed, representing
                        the number of Rights held by such holder at the
                        Separation Time and having such marks of identification
                        or designation and such legends, summaries or
                        endorsements printed thereon as the Corporation may deem
                        appropriate and as are not inconsistent with the
                        provisions of this Agreement, or as may be required to
                        comply with any law or with any rule or regulation made
                        pursuant thereto or with any rule or regulation of any
                        stock exchange or quotation system on which the Rights
                        may from time to time be listed or traded, or to conform
                        to usage, and

                  (B)   a disclosure statement describing the Rights;

            provided that a Nominee shall be sent the materials provided for in
            (A) and (B) only in respect of all Common Shares held of record by
            it which are not Beneficially Owned by an Acquiring Person.

      (d)   Rights may be exercised in whole or in part on any Business Day
            after the Separation Time and prior to the Expiration Time by
            submitting to the Rights Agent the Rights Certificate evidencing
            such Rights with an Election to Exercise (an "ELECTION TO EXERCISE")
            substantially in the form attached to the Rights Certificate duly
            completed and executed by the holder or its executors or other
            personal representatives or its legal attorney duly appointed by an
            instrument in writing in form and manner satisfactory to the Rights
            Agent, accompanied by payment in cash, or by certified cheque,
            banker's draft or money order payable to the order of the
            Corporation, of a sum equal to the Exercise Price multiplied by the
            number of Rights being exercised and a sum sufficient to cover any
            transfer tax or charge which may be payable in respect of any
            transfer involved in the transfer or delivery of Rights Certificates
            or the issuance or delivery of certificates for the relevant Shares
            in a name other than that of the holder of the Rights being
            exercised.

      (e)   Upon receipt of a Rights Certificate, with a duly completed and
            executed Election to Exercise accompanied by payment as set forth in
            subsection 2.2(d) above, the Rights Agent will (unless otherwise
            instructed by the Corporation) forthwith:

            (i)   requisition from a transfer agent for the relevant Shares,
                  certificates representing the number of Shares to be purchased
                  (the Corporation hereby irrevocably authorizing its transfer
                  agents to comply with all such requisitions);

                                       20
<PAGE>

            (ii)  when appropriate, requisition from the Corporation the amount
                  of cash to be paid in lieu of issuing fractional Shares;

            (iii) after receipt of such certificates, deliver the same to or
                  upon the order of the registered holder of such Rights
                  Certificate, registered in such name or names as may be
                  designated by such holder; and

            (iv)  when appropriate, after receipt, deliver such cash to or to
                  the order of the registered holder of the Rights Certificate.

      (f)   In case the holder of any Rights shall exercise less than all the
            Rights evidenced by such holder's Rights Certificate, a new Rights
            Certificate evidencing the Rights remaining unexercised will be
            issued by the Rights Agent to such holder or to such holder's duly
            authorized assigns.

      (g)   The Corporation covenants and agrees that it will:

            (i)   take all such action as may be necessary and within its power
                  to ensure that all Shares delivered upon exercise of Rights
                  shall, at the time of delivery of the certificates for such
                  Shares (subject to payment of the Exercise Price), be duly and
                  validly authorized, executed, issued and delivered as fully
                  paid and non-assessable;

            (ii)  subject to Section 5.19, take all such action as may be
                  necessary and within its power to comply with any applicable
                  requirements of the Securities Act (British Columbia) or
                  comparable legislation of each of the provinces of Canada, the
                  1933 Securities Act and the 1934 Exchange Act or the rules and
                  regulations thereunder or any other applicable law, rule or
                  regulation, in connection with the issuance and delivery of
                  the Rights Certificates and the issuance of any Shares upon
                  exercise of Rights;

            (iii) use commercially reasonable efforts to cause all Shares issued
                  upon exercise of Rights to be listed on the principal
                  exchanges on which the Shares of such class or series were
                  traded prior to the Stock Acquisition Date; and

            (iv)  pay when due and payable any and all Canadian and United
                  States federal, provincial and state transfer taxes (for
                  greater certainty not including any income taxes on capital
                  gains of the holder or exercising holder or any liability of
                  the Corporation to withhold tax) and charges which may be
                  payable in respect of the original issuance or delivery of the
                  Rights Certificates or certificates for Shares, provided that
                  the Corporation shall not be required to pay any transfer tax
                  or charge which may be payable in respect of any transfer
                  involved in the transfer or delivery of Rights Certificates or
                  the issuance or delivery of certificates for Shares in a name
                  other than that of the holder of the Rights being transferred
                  or exercised.

                                       21
<PAGE>

2.3         ADJUSTMENTS TO EXERCISE PRICE; NUMBER OF RIGHTS

            The Exercise Price, the number and kind of Shares subject to
purchase upon exercise of each Right and the number of Rights outstanding are
subject to adjustment from time to time as provided in this Section 2.3.

      (a)   In the event the Corporation shall at any time after the Record Time
            and prior to the Expiration Time:

            (i)   declare or pay a dividend on the Common Shares payable in
                  Common Shares (or other securities exchangeable for or
                  convertible into or giving a right to acquire Common Shares)
                  other than pursuant to any optional stock dividend program,
                  dividend reinvestment plan or a dividend payable in Common
                  Shares in lieu of a Regular Periodic Cash Dividend;

            (ii)  subdivide or change the then outstanding Common Shares into a
                  greater number of Common Shares;

            (iii) consolidate or change the then outstanding Common Shares into
                  a smaller number of Common Shares; or

            (iv)  issue any Common Shares (or other capital stock or securities
                  exchangeable for or convertible into or giving a right to
                  acquire Common Shares or other capital stock) in respect of,
                  in lieu of, or in exchange for existing Common Shares, except
                  as otherwise provided in this Section 2.3;

            the Exercise Price and the number of Rights outstanding, or, if the
            payment or effective date therefor shall occur after the Separation
            Time, the Shares purchasable upon exercise of Rights shall be
            adjusted in the manner set forth below. If the Exercise Price and
            number of Rights outstanding are to be adjusted,

                  (A)   the Exercise Price in effect after such adjustment will
                        be equal to the Exercise Price in effect immediately
                        prior to such adjustment divided by the number of Common
                        Shares (or other capital stock) (the "EXPANSION FACTOR")
                        that a holder of one Common Share immediately prior to
                        such dividend, subdivision, change, combination or
                        issuance would hold thereafter as a result thereof, and

                  (B)   each Right held prior to such adjustment will become
                        that number of Rights equal to the Expansion Factor, and
                        the adjusted number of Rights will be deemed to be
                        allocated among the Shares with respect to which the
                        original Rights were associated (if they remain
                        outstanding) and the Shares issued in respect of such
                        dividend, subdivision, change, combination or issuance,
                        so that each such Share (or other capital stock) will
                        have exactly one Right associated with it.

                                       22
<PAGE>

                        If the Shares purchasable upon exercise of Rights are to
                        be adjusted, the Shares purchasable upon exercise of
                        each Right after such adjustment will be the Shares that
                        a holder of the Shares purchasable upon exercise of one
                        Right immediately prior to such dividend, subdivision,
                        change, combination or issuance would hold thereafter as
                        a result thereof. If after the Record Time and prior to
                        the Expiration Time the Corporation shall issue any
                        shares of capital stock other than Common Shares in a
                        transaction of a type described in paragraphs 2.3(a)(i)
                        to (iv), shares of such capital stock shall be treated
                        herein as nearly equivalent to Common Shares as may be
                        practicable and appropriate under the circumstances and
                        the Corporation and the Rights Agent agree to amend this
                        Agreement in order to effect such treatment, and will
                        not consolidate with, amalgamate with or into or enter
                        into a statutory arrangement with, any other Person
                        unless such Person agrees to be bound by the terms of an
                        amendment effecting such treatment.

                        In the event the Corporation shall at any time after the
                        Record Time and prior to the Separation Time issue any
                        Common Shares otherwise than in a transaction referred
                        to in the preceding paragraph, each such Common Share so
                        issued shall automatically have one new Right associated
                        with it, which Right shall be evidenced by the
                        Certificate representing such Share.

                  (b)   In the event the Corporation shall at any time after the
                        Record Time and prior to the Separation Time fix a
                        record date for the making of a distribution to all
                        holders of Common Shares of rights, options, or warrants
                        entitling them (for a period expiring within 45 calendar
                        days after such record date) to subscribe for or
                        purchase Common Shares (or securities convertible into
                        or exchangeable for or carrying a right to purchase or
                        subscribe for Common Shares) at a price per Common Share
                        (or, if a security convertible into or exchangeable for
                        or carrying a right to purchase or subscribe for Common
                        Shares, having a conversion, exchange or exercise price
                        (including the price required to be paid to purchase
                        such convertible or exchangeable security or right per
                        share)) less than the Market Price per Common Share on
                        such record date, the Exercise Price shall be adjusted.
                        The Exercise Price in effect after such record date will
                        equal the Exercise Price in effect immediately prior to
                        such record date multiplied by a fraction, of which the
                        numerator shall be the number of Common Shares
                        outstanding on such record date plus the number of
                        Common Shares which the aggregate offering price of the
                        total number of Common Shares so to be offered (and/or
                        the aggregate initial conversion, exchange or exercise
                        price of the convertible or exchangeable securities or
                        rights so to be offered (including the price required to
                        be paid to purchase such convertible or exchangeable
                        securities or rights)) would purchase at such Market
                        Price and of which the denominator shall be the number
                        of Common Shares outstanding on such record date plus
                        the number of additional Common Shares to be offered for
                        subscription or purchase (or into which the convertible
                        or exchangeable securities or rights so to be offered
                        are initially convertible, exchangeable or exercisable).
                        In case such subscription price may be paid in a
                        consideration part or all of which shall be in a form
                        other than cash, the value of such consideration shall
                        be as determined in good faith by the Board of Directors
                        of the Corporation, whose determination shall be
                        described

                                       23
<PAGE>

                        in a statement filed with the Rights Agent and shall be
                        binding on the Rights Agent and the holders of the
                        Rights. For purposes of this Agreement, the granting of
                        the right to purchase Common Shares (whether from
                        treasury shares or otherwise) pursuant to any dividend
                        or interest reinvestment plan and/or any Common Share
                        purchase plan providing for the reinvestment of
                        dividends or interest payable on securities of the
                        Corporation and/or the investment of periodic optional
                        payments and/or employee benefit or similar plans (so
                        long as such right to purchase is in no case evidenced
                        by the delivery of rights or warrants) shall not be
                        deemed to constitute an issue of rights, options or
                        warrants by the Corporation; provided, however, that, in
                        the case of any dividend or interest reinvestment plan,
                        the right to purchase Common Shares is at a price per
                        share of not less than 90 percent of the current market
                        price per Common Share (determined as provided in such
                        plans) of the Common Shares. Such adjustment shall be
                        made successively whenever such a record date is fixed
                        and, in the event that such rights, options or warrants
                        are not so issued, the Exercise Price in respect of the
                        Rights shall be adjusted to be the Exercise Price which
                        would then be in effect if such record date had not been
                        fixed.

                  (c)   In the event the Corporation shall at any time after the
                        Record Time and prior to the Separation Time fix a
                        record date for the making of a distribution to all
                        holders of Common Shares (including without limitation
                        any distribution made in connection with a merger in
                        which the Corporation is the continuing corporation) of
                        evidences of indebtedness or assets (other than a
                        Regular Periodic Cash Dividend or a dividend paid in
                        Common Shares) or rights, options or warrants entitling
                        them to subscribe for or purchase Common Shares (or
                        Convertible Securities in respect of Common Shares) at a
                        price per Common Share (or, in the case of a Convertible
                        Security in respect of Common Shares having a conversion
                        or exercise price per share (including the price
                        required to be paid to purchase such Convertible
                        Security) less than 90% of the Market Price per Common
                        Share on such record date (excluding those referred to
                        in subsection 2.3(b)), the Exercise Price shall be
                        adjusted. The Exercise Price in effect after such record
                        date will equal the Exercise Price in effect immediately
                        prior to such record date less the fair market value as
                        shall be determined in good faith by the Board of
                        Directors of the Corporation, whose determination shall
                        be described in a statement filed with the Rights Agent
                        and shall be binding on the Rights Agent and the holders
                        of the Rights, of the portion of the assets, evidences
                        of indebtedness, rights or warrants so to be distributed
                        applicable to the securities purchaseable upon exercise
                        of one Right. Such adjustments shall be made
                        successively whenever such a record date is fixed and,
                        in the event that such distribution is not so made, the
                        Exercise Price in respect of the Rights shall be
                        adjusted to be the Exercise Price in respect of the
                        Rights which would have been in effect if such record
                        date had not been fixed.

                                       24
<PAGE>

                  (d)   Each adjustment made pursuant to this Section 2.3 shall
                        be made as of:

                        (i)   the payment or effective date for the applicable
                              dividend, subdivision, consolidation, change,
                              combination or issuance, in the case of an
                              adjustment made pursuant to subsection 2.3(a)
                              herein; and

                        (ii)  the record date for the applicable dividend or
                              distribution, in the case of an adjustment made
                              pursuant to subsections 2.3(b) or (c) herein.

                        Any adjustment pursuant to subsections 2.3(a), (b), (c)
                        and (e) hereof shall be made successively whenever an
                        event referred to herein shall occur, subject to the
                        other subsections of this Section 2.3.

                  (e)   In the event the Corporation shall at any time after the
                        Record Time and prior to the Separation Time issue any
                        Shares (other than Common Shares), or rights, options or
                        warrants to subscribe for or purchase any such shares,
                        or securities convertible into or exchangeable for any
                        such shares, in a transaction referred to in paragraphs
                        2.3(a)(i) or (iv) above, if the Board of Directors of
                        the Corporation acting in good faith determines that the
                        adjustments contemplated by subsections 2.3(a), (b), and
                        (c) above in connection with such transaction will not
                        appropriately protect the interests of the holders of
                        Rights, the Board of Directors of the Corporation may
                        determine what other adjustments to the Exercise Price,
                        number of Rights and/or securities purchaseable upon
                        exercise of Rights would be appropriate and,
                        notwithstanding subsections 2.3(a), (b), and (c) above,
                        such adjustments, rather than the adjustments
                        contemplated by subsections 2.3(a), (b), and (c) above,
                        shall be made with the prior approval of the holders of
                        shares in accordance with Section 5.4. The Corporation
                        and the Rights Agent shall amend this Agreement as
                        appropriate to provide for such adjustments.

                  (f)   Notwithstanding anything herein to the contrary, no
                        adjustment in an Exercise Price shall be required unless
                        such adjustment would require an increase or decrease of
                        at least one percent in such Exercise Price; provided,
                        however, that any adjustments which by reason of this
                        subsection 2.3(f) are not required to be made shall be
                        carried forward and taken into account in any subsequent
                        adjustment. Each adjustment to the Exercise Price made
                        pursuant to this Section 2.3 shall be calculated to the
                        nearest cent or the nearest ten-thousandth of a Common
                        Share or other Share as the case may be. Whenever an
                        adjustment to the Exercise Price is made pursuant to
                        this Section 2.3, the Corporation shall:

                        (i)   promptly prepare a certificate setting forth such
                              adjustment and a brief statement of the facts
                              accounting for such adjustment; and

                        (ii)  promptly file with the Rights Agent and with each
                              transfer agent for the Common Shares a copy of
                              such certificate and a brief summary thereof to
                              each holder of Rights.

                  (g)   Irrespective of any adjustment or change in an Exercise
                        Price or the number of securities purchaseable upon
                        exercise of the Rights, the Rights Certificates

                                       25
<PAGE>

                        theretofore and thereafter issued may continue to
                        express the relevant Exercise Price per Share and the
                        number of securities so purchaseable which were
                        expressed in the initial Rights Certificates issued
                        hereunder.

                  (h)   If as a result of an adjustment made pursuant to Section
                        3.1 herein, the holder of any Right thereafter exercised
                        shall become entitled to receive any Shares other than
                        Common Shares, thereafter the number of such other
                        Shares so receivable upon exercise of any Right and the
                        applicable Exercise Price thereof shall be subject to
                        adjustment from time to time in a manner and on terms as
                        nearly equivalent as practicable to the provisions with
                        respect to the Common Shares contained in this Section
                        2.3, and the provisions of this Agreement with respect
                        to the Common Shares shall apply on like terms to any
                        such other Shares.

                  (i)   Unless the Corporation shall have exercised its election
                        as provided in subsection 2.3(j), upon each adjustment
                        of an Exercise Price as a result of the calculations
                        made in subsections 2.3(b) and (c), each Right
                        outstanding immediately prior to the making of such
                        adjustment shall thereafter evidence the right to
                        purchase, at the adjusted Exercise Price, that number of
                        Common Shares (calculated to the nearest one
                        ten-thousandth), obtained by:

                        (i)   multiplying (x) the number of such Shares covered
                              by a Right immediately prior to this adjustment by
                              (y) the relevant Exercise Price in effect
                              immediately prior to such adjustment of the
                              relevant Exercise Price; and

                        (ii)  dividing the product so obtained by the relevant
                              Exercise Price in effect immediately after such
                              adjustment of the relevant Exercise Price.

                  (j)   The Corporation may elect on or after the date of any
                        adjustment of an Exercise Price to adjust the number of
                        Rights, in lieu of any adjustment in the number of
                        Shares purchaseable upon the exercise of a Right. Each
                        of the Rights outstanding after the adjustment in the
                        number of Rights shall be exercisable for the number and
                        kind of Shares for which such Right was exercisable
                        immediately prior to such adjustment. Each Right held of
                        record prior to such adjustment of the number of Rights
                        shall become that number of Rights (calculated to the
                        nearest one ten-thousandth) obtained by dividing the
                        relevant Exercise Price in effect immediately prior to
                        adjustment of the relevant Exercise Price by the
                        relevant Exercise Price in effect immediately after
                        adjustment of the relevant Exercise Price. The
                        Corporation shall make a public announcement of its
                        election to adjust the number of Rights, indicating the
                        record date for the adjustment, and, if known at the
                        time, the amount of the adjustment to be made. This
                        record date may be the date on which the relevant
                        Exercise Price is adjusted or any day thereafter but, if
                        the Rights Certificates have been issued, shall be at
                        least 10 days later than the date of the public
                        announcement. If Rights Certificates have been issued,
                        upon each adjustment of the number of Rights pursuant to
                        this subsection 2.3(j), the Corporation shall, as
                        promptly as practicable, cause to be distributed to
                        holders of record of Rights Certificates on such record
                        date, Rights Certificates evidencing,

                                       26
<PAGE>
            subject to Section 5.5, the additional Rights to which such holders
            shall be entitled as a result of such adjustment or, at the option
            of the Corporation, shall cause to be distributed to such holders of
            record in substitution and replacement for the Rights Certificates
            held by such holders prior to the date of adjustment, and upon
            surrender thereof, if required by the Corporation, new Rights
            Certificates evidencing all the Rights to which such holders shall
            be entitled after such adjustment. Rights Certificates so to be
            distributed shall be issued, executed and countersigned in the
            manner provided for herein and may bear, at the option of the
            Corporation, the relevant adjusted Exercise Price and shall be
            registered in the names of holders of record of Rights Certificates
            on the record date specified in the public announcement.

      (k)   In any case in which this Section 2.3 shall require that an
            adjustment in an Exercise Price be made effective as of a record
            date for a specified event, the Corporation may elect to defer until
            the occurrence of such event the issuance to the holder of any Right
            exercised after such record date of the number of Shares and other
            securities of the Corporation, if any, issuable upon such existence
            over and above the number of Shares and other securities of the
            Corporation, if any, issuable upon such exercise on the basis of the
            relevant Exercise Price in effect prior to such adjustment;
            provided, however, that the Corporation shall deliver to such holder
            a due bill or other appropriate instrument evidencing such holder's
            right to receive such additional Shares (fractional or otherwise) or
            other securities upon the occurrence of the event requiring such
            adjustment.

      (l)   Notwithstanding anything in this Section 2.3 to the
            contrary, the Corporation shall be entitled to make such reductions
            in each Exercise Price, in addition to those adjustments expressly
            required by this Section 2.3, as and to the extent that in their
            good faith judgment the Board of Directors of the Corporation shall
            determine to be advisable in order that any (i) consolidation or
            subdivision of Shares, (ii) issuance wholly for cash of any Shares
            at less than the applicable Market Price, (iii) issuance wholly for
            cash of any Common Shares or securities that by their terms are
            convertible into or exchangeable for Shares, (iv) stock dividends or
            (v) issuance of rights, options or warrants referred to in this
            Section 2.3, hereafter made by the Corporation to holders of its
            Shares, shall not be taxable to such shareholders.

2.4         DATE ON WHICH EXERCISE IS EFFECTIVE

            Each person in whose name any certificate for Shares is issued upon
the exercise of Rights shall for all purposes be deemed to have become the
holder of record of the Shares represented thereby on, and such certificate
shall be dated, the date upon which the Rights Certificate evidencing such
Rights was duly surrendered (together with a duly completed Election to
Exercise) and payment of the Exercise Price for such Rights (and any applicable
transfer taxes and other governmental charges payable by the exercising holder
hereunder) was made; provided, however, that if the date of such surrender and
payment is a date upon which the relevant Share transfer books of the
Corporation are closed, such person shall be deemed to have become the record
holder of such Shares on, and such certificate shall be dated, the next

                                       27
<PAGE>

succeeding Business Day on which the relevant Share transfer books of the
Corporation are open.

2.5         EXECUTION, AUTHENTICATION, DELIVERY AND DATING OF RIGHTS
            CERTIFICATES

      (a)   The Rights Certificates shall be executed on behalf of the
            Corporation by any one of its directors or officers, under its
            corporate seal reproduced thereon attested by its Secretary or one
            of its Assistant Secretaries. The signature of any of these officers
            on the Rights Certificates may be manual or facsimile.

      (b)   Rights Certificates bearing the manual or facsimile signatures of
            individuals who were at any time the proper directors or officers of
            the Corporation shall bind the Corporation, notwithstanding that
            such individuals or any of them have ceased to hold such offices
            prior to the countersignature and delivery of such Rights
            Certificates.

      (c)   Promptly after the Corporation learns of the Separation Time, the
            Corporation will notify the Rights Agent of such Separation Time and
            will deliver Rights Certificates executed by the Corporation to the
            Rights Agent for countersignature, and the Rights Agent shall
            countersign (manually or by facsimile signature in a manner
            satisfactory to the Corporation) and deliver such Rights
            Certificates to the holders of the Rights pursuant to subsection
            2.2(c) hereof. No Rights Certificate shall be valid for any purpose
            until countersigned by the Rights Agent as aforesaid.

      (d)   Each Rights Certificate shall be dated the date of countersignature
            thereof.

2.6         REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE

      (a)   The Corporation will cause to be kept a register (the "RIGHTS
            REGISTER") in which, subject to such reasonable regulations as it
            may prescribe, the Corporation will provide for the registration and
            transfer of Rights. The Rights Agent is hereby appointed "RIGHTS
            REGISTRAR" for the purpose of maintaining the Rights Register for
            the Corporation and registering Rights and transfers of Rights as
            herein provided. In the event that the Rights Agent shall cease to
            be the Rights Registrar, the Rights Agent will have the right to
            examine the Rights Register at all reasonable times.

            After the Separation Time and prior to the Expiration Time, upon
            surrender for registration of transfer or exchange of any Rights
            Certificate, and subject to the provisions of subsection 2.6(c)
            below, the Corporation will execute, and the Rights Agent will
            countersign and deliver, in the name of the holder or the designated
            transferee or transferees, as required pursuant to the holder's
            instructions, one or more new Rights Certificates evidencing the
            same aggregate number of Rights as did the Rights Certificates so
            surrendered.

      (b)   All Rights issued upon any registration of transfer or exchange of
            Rights Certificates shall be valid obligations of the Corporation,
            and such Rights shall be

                                       28
<PAGE>

            entitled to the same benefits under this Agreement as the Rights
            surrendered upon such registration of transfer or exchange.

      (c)   Every Rights Certificate surrendered for registration of transfer or
            exchange shall be duly endorsed, or be accompanied by a written
            instrument of transfer in form satisfactory to the Corporation or
            the Rights Agent, as the case may be, duly executed by the holder
            thereof or such holder's attorney duly authorized in writing. As a
            condition to the issuance of any new Rights Certificate under this
            Section 2.6, the Corporation may require the payment of a sum
            sufficient to cover any tax or other governmental charge that may be
            imposed in relation thereto and any other expenses (including the
            fees and expenses of the Rights Agent) in connection therewith.

      (d)   The Corporation shall not be required to register the transfer or
            exchange of any Rights after the Rights have been terminated under
            Section 5.1 hereof.

2.7         MUTILATED, DESTROYED, LOST AND STOLEN RIGHTS CERTIFICATES

      (a)   If any mutilated Rights Certificate is surrendered to the Rights
            Agent prior to the Expiration Time, the Corporation shall execute
            and the Rights Agent shall countersign and deliver in exchange
            therefor a new Rights Certificate evidencing the same number of
            Rights as did the Rights Certificate so surrendered.

      (b)   If there shall be delivered to the Corporation and the Rights Agent
            prior to the Expiration Time:

            (i)   evidence to their satisfaction of the destruction, loss or
                  theft of any Rights Certificate; and

            (ii)  such security or indemnity as may be required by them to save
                  each of them and any of the agents harmless,

            then, in the absence of notice to the Corporation or the Rights
            Agent that such Rights Certificate has been acquired by a bona fide
            purchaser, the Corporation shall execute and upon its request the
            Rights Agent shall countersign and deliver, in lieu of any such
            destroyed, lost or stolen Rights Certificate, a new Rights
            Certificate evidencing the same number of Rights as did the Rights
            Certificate so destroyed, lost or stolen.

      (c)   As a condition to the issuance of any new Rights Certificate under
            this Section 2.7, the Corporation may require the payment of a sum
            sufficient to cover any tax or other governmental charge that may be
            imposed in relation thereto and any other expenses (including the
            fees and expenses of the Rights Agent) in connection therewith.

      (d)   Every new Rights Certificate issued pursuant to this Section 2.7 in
            lieu of any destroyed, lost or stolen Rights Certificate shall
            evidence an original additional contractual obligation of the
            Corporation, whether or not the destroyed, lost or

                                       29
<PAGE>

            stolen Rights Certificate shall be at any time enforceable by anyone
            and shall be entitled to all the benefits of this Agreement equally
            and proportionately with any and all other Rights duly issued
            hereunder.

2.8         PERSONS DEEMED OWNERS

            Prior to due presentment of a Rights Certificate (or, prior to the
Separation Time, the associated Share certificate) for registration of transfer,
the Corporation, the Rights Agent and any agent of the Corporation or the Rights
Agent may deem and treat the person in whose name such Rights Certificate (or,
prior to the Separation Time, such relevant Share certificate) is registered as
the absolute owner thereof and of the Rights evidenced thereby for all purposes
whatsoever. As used in this Agreement, unless the context otherwise requires,
the term "HOLDER" of any Rights shall mean the registered holder of such Rights
(or, prior to the Separation Time, the associated Shares).

2.9         DELIVERY AND CANCELLATION OF CERTIFICATES

            All Rights Certificates surrendered upon exercise or for redemption,
registration of transfer or exchange shall, if surrendered to any person other
than the Rights Agent, be delivered to the Rights Agent and, in any case, shall
be promptly cancelled by the Rights Agent. The Corporation may at any time
deliver to the Rights Agent for cancellation any Rights Certificates previously
countersigned and delivered hereunder which the Corporation may have acquired in
any manner whatsoever, and all Rights Certificates so delivered shall be
promptly cancelled by the Rights Agent. No Rights Certificate shall be
countersigned in lieu of or in exchange for any Rights Certificates cancelled as
provided in this Section 2.9, except as expressly permitted by this Agreement.
The Rights Agent shall destroy all cancelled Rights Certificates and deliver a
certificate of destruction to the Corporation.

2.10        AGREEMENT OF RIGHTS HOLDERS

            Every holder of Rights by accepting a Right consents and agrees with
the Corporation and the Rights Agent and with every other holder of Rights that:

      (a)   it will be bound by and subject to the provisions of this Agreement,
            as amended from time to time in accordance with the terms hereof, in
            respect of all Rights held;

      (b)   prior to the Separation Time, each Right will be transferable only
            together with, and will be transferred by a transfer of, the
            associated Share;

      (c)   after the Separation Time, the Rights Certificates shall be
            transferable only upon the registration of the transfer on the
            Rights Register as provided herein;

      (d)   prior to due presentment of a Rights Certificate (or, prior to the
            Separation Time, the associated Share certificate) for registration
            of transfer, the Corporation, the Rights Agent and any agent of the
            Corporation or the Rights Agent may deem and treat the person in
            whose name the Rights Certificate (or, prior to the Separation Time,
            the associated Share certificate) is registered as the absolute
            owner thereof

                                       30
<PAGE>

            and of the Rights evidenced thereby (notwithstanding any notations
            of ownership or writing on such Rights Certificate or the associated
            Share certificate made by anyone other than the Corporation or the
            Rights Agent) for all purposes whatsoever, and neither the
            Corporation nor the Rights Agent shall be affected by any notice to
            the contrary;

      (e)   without the approval of any holder of Rights and upon the sole
            authority of the Board of Directors of the Corporation acting in
            good faith this Agreement may be supplemented or amended from time
            to time as provided herein;

      (f)   such holder of Rights has waived its right to receive any fractional
            Rights or any fractional shares upon exercise of a Right (except as
            provided herein); and

      (g)   that notwithstanding anything in this Agreement to the contrary,
            neither the Corporation nor the Rights Agent shall have any
            liability to any holder of a Right or to any other Person as a
            result of its inability to perform any of its obligations under this
            Agreement by reason of any preliminary or permanent injunction or
            other order, decree or ruling issued by a court of competent
            jurisdiction or by a government, regulatory or administrative agency
            or commission, or any statute, rule, regulation or executive order
            promulgated or enacted by any governmental authority, prohibiting or
            otherwise restraining performance of such obligation.

2.11        RIGHTS HELD BY THE CORPORATION AND SUBSIDIARIES

            Notwithstanding any other provision of this Agreement, any Rights
held by the Corporation or any of its Subsidiaries shall not be exercisable for
so long as they are held by the Corporation or its Subsidiaries.

                    ARTICLE 3 - ADJUSTMENTS TO THE RIGHTS IN THE
                         EVENT OF CERTAIN TRANSACTIONS

3.1         FLIP-IN EVENT

      (a)   Subject to subsection 3.1(b), subsections 5.1(b) and 5.1(c) hereof,
            in the event that prior to the Expiration Time a Flip-in Event shall
            occur, the Corporation shall take such action as shall be necessary
            to ensure and provide, within 10 Business Days of such occurrence or
            such longer period as may be required to satisfy the requirements of
            the securities acts or comparable legislation of each of the
            Provinces and Territories of Canada then, except as provided below:

            (i)   each Right shall thereafter constitute the right to purchase
                  from the Corporation upon exercise thereof in accordance with
                  the terms hereof, that number of Common Shares of the
                  Corporation having an aggregate Market Price on the date of
                  consummation or occurrence of such Flip-in Event equal to
                  twice the Exercise Price for an amount in cash equal to the
                  Exercise Price (such right to be appropriately adjusted in a
                  manner analogous to the applicable adjustment provided for in
                  Section 2.3 in the event that after such date of consummation
                  or occurrence an event of a

                                       31
<PAGE>

                  type analogous to any of the events described in Section 2.3
                  shall have occurred);

            (ii)  in the event that there are insufficient authorized but
                  unissued Shares to permit each holder of a Right (other than
                  an Acquiring Person or a transferee of the kind described in
                  paragraph 3.1(b)(ii) to purchase from the Corporation that
                  number of Common Shares per Right provided for in paragraph
                  3.1(a)(i), then until such time as holders of Common Shares
                  approve an increase in the Corporation's authorized capital
                  such that there are sufficient authorized but unissued Common
                  Shares to permit each holder of a Right (other than an
                  Acquiring Person or a transferee of the kind described in
                  paragraph 3.1(b)(ii) to purchase from the Corporation that
                  number of Common Shares per Right provided for in paragraph
                  3.1(a)(i), each whole Right shall constitute, effective at the
                  Close of Business on the eighth Trading Day after the Stock
                  Acquisition Date, the right to purchase from the Corporation,
                  upon exercise thereof in accordance with the terms hereof,
                  that number of Common Shares that is equal to one Common Share
                  multiplied by the Adjustment Factor for an amount in cash
                  equal to the Adjusted Exercise Price (such right to be
                  appropriately adjusted in a manner analogous to the applicable
                  adjustment provided for in Section 2.3 in the event that after
                  the consummation or occurrence or event, an event of a type
                  analogous to any of the events described in Section 2.3 shall
                  have occurred).

      (b)   Notwithstanding the foregoing, upon the occurrence of any Flip-in
            Event, any Rights that are or were Beneficially Owned on or after
            the earlier of the Separation Time or the Stock Acquisition Date by:

            (i)   an Acquiring Person (or any Affiliate or Associate of an
                  Acquiring Person or any Person acting jointly or in concert
                  with an Acquiring Person of any Associate or Affiliate of an
                  Acquiring Person); or

            (ii)  a transferee or other successor in title directly or
                  indirectly (a "TRANSFEREE") of Rights held by any Acquiring
                  Person (or any Affiliate or Associate of an Acquiring Person
                  or any Person acting jointly or in concert with an Acquiring
                  Person or any Affiliate or Associate of an Acquiring Person)
                  where such transferee becomes a transferee concurrently with
                  or subsequent to the Acquiring Person becoming an Acquiring
                  Person becoming such in a transfer that the Board of Directors
                  has determined is part of a plan, arrangement or scheme of an
                  Acquiring Person (or any Affiliate or Associate of an
                  Acquiring Person or any Person acting jointly or in concert
                  with an Acquiring Person or any Associate or Affiliate of an
                  Acquiring Person), that has the purpose or effect of avoiding
                  paragraph 3.1(b)(i);

            shall become void and any holder of such Rights (including
            Transferees) shall thereafter have no right to exercise such Rights
            under any provision of this

                                       32
<PAGE>

            Agreement and shall not have thereafter any other rights whatsoever
            with respect to such Rights, whether under any provision of this
            Agreement or otherwise.

      (c)   Any Rights Certificate that represents Rights Beneficially Owned by
            a Person described in either paragraphs (i) or (ii) of subsection
            3.1(b) or transferred to any nominee of any such Person, and any
            Rights Certificate issued upon transfer, exchange, replacement or
            adjustment of any other Rights Certificate referred to in this
            sentence, shall contain the following legend:

                  "The Rights represented by this Rights Certificate were issued
                  to a Person who was an Acquiring Person or an Affiliate or an
                  Associate of an Acquiring Person or a Transferee (as such
                  terms are defined in the Rights Agreement) or acting jointly
                  or in concert with any of them. This Rights Certificate and
                  the Rights represented hereby are void or shall become void in
                  the circumstances specified in subsection 3.1(b) of the Rights
                  Agreement."

            provided that the Rights Agent shall not be under any responsibility
            to ascertain the existence of facts that would require the
            imposition of such legend by shall be required to impose such legend
            only if instructed to do so by the Corporation or if a holder fails
            to certify upon transfer or exchange in the space provided on the
            Rights Certificate that such holder is not an Acquiring Person or an
            Affiliate or Associate thereof or acting jointly or in concert with
            any of them.

                          ARTICLE 4 - THE RIGHTS AGENT

4.1         GENERAL

      (a)   The Corporation hereby appoints the Rights Agent to act as agent for
            the Corporation and the holders of Rights in accordance with the
            terms and conditions hereof, and the Rights Agent hereby accepts
            such appointment. The Corporation may from time to time appoint such
            co-Rights Agents as it may deem necessary or desirable. In the event
            the Corporation appoints one or more co-Rights Agents, the
            respective duties of the Rights Agent and co-Rights Agents shall be
            as the Corporation may determine. The Corporation agrees to pay to
            the Rights Agent reasonable compensation for all services rendered
            by it hereunder and, from time to time, on demand of the Rights
            Agent, its reasonable expenses and counsel fees and other
            disbursements incurred in the administration and execution of this
            Agreement and the exercise and performance of its duties hereunder.
            The Corporation also agrees to indemnify the Rights Agent, its
            affiliates, their current and former directors, officers, employees
            and agents for, and to hold them harmless against, any and all
            claims, demands, losses, penalties, costs, expenses, fees and
            liabilities, including without limitation, legal fees and expenses,
            directly or indirectly arising out of, or in connection with, or in
            respect of, this Agreement,

                                       33
<PAGE>

            except where same results from gross negligence, wilful misconduct
            or bad faith on the part of the Rights Agent, which right to
            indemnification shall survive the termination of this Agreement.

      (b)   The Rights Agent shall be protected and shall incur no liability for
            or in respect of any action taken, suffered or omitted by it in
            connection with its administration of this Agreement in reliance
            upon any certificate for Shares, Rights Certificates, certificate
            for other securities of the Corporation, instrument of assignment of
            transfer, power of attorney, endorsement, affidavit, letter, notice,
            direction, consent, certificate, statement or other paper or
            document believed by it to be genuine and to be signed, executed
            and, where necessary, verified or acknowledged, by the proper Person
            or Persons.

4.2         MERGER, AMALGAMATION OR CONSOLIDATION OR CHANGE OF NAME OF RIGHTS
            AGENT

      (a)   Any corporation into which the Rights Agent or any successor Rights
            Agent may be merged or amalgamated or with which it may be
            consolidated, or any corporation resulting from any merger,
            amalgamation or consolidation to which the Rights Agent or any
            successor Rights Agent is a party, or any corporation succeeding to
            the shareholder or stockholder services business of the Rights Agent
            or any successor Rights Agent, will be the successor to the Rights
            Agent under this Agreement without the execution or filing of any
            paper or any further act on the part of any of the parties hereto,
            provided that such corporation would be eligible for appointment as
            a successor Rights Agent under the provisions of Section 4.4 hereof.
            In case at the time such successor Rights Agent succeeds to the
            agency created by this Agreement any of the Rights Certificates have
            been countersigned but not delivered, any such successor Rights
            Agent may adopt the counter signature of the predecessor Rights
            Agent and deliver such Rights Certificates so countersigned; and in
            case at that time any of the Rights Certificates shall not have been
            countersigned, any successor Rights Agent may countersign such
            Rights Certificates either in the name of the predecessor Rights
            Agent or in the name of the successor Rights Agent; and in all such
            cases such Rights Certificates will have the full force provided in
            the Rights Certificates and in this Agreement.

      (b)   In case at any time the name of the Rights Agent is changed and at
            such time any of the Rights Certificates shall have been
            countersigned but not delivered, the Rights Agent may adopt the
            countersignature under its prior name and deliver Rights
            Certificates so countersigned; and in case at that time any of the
            Rights Certificates shall not have been countersigned, the Rights
            Agent may countersign such Rights Certificates either in its prior
            name or in its changed name; and in all such cases such Rights
            Certificates shall have the full force provided in the Rights
            Certificates and in this Agreement.

                                       34
<PAGE>

4.3         DUTIES OF RIGHTS AGENT

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

      (a)   The Rights Agent may retain and consult with legal counsel (who may
            be legal counsel for the Corporation), and the opinion of such
            counsel will be full and complete authorization and protection to
            the Rights Agent as to any action taken or omitted by it in good
            faith and in accordance with such opinion and the Rights Agent may
            also consult with such other experts as the Rights Agent shall
            consider necessary or appropriate to properly carry out the duties
            and obligations imposed under this Agreement (at the Corporation's
            expense) and the Rights Agent shall be entitled to act and rely in
            good faith on the advice of any such expert.

      (b)   Whenever in the performance of its duties under this Agreement the
            Rights Agent deems it necessary or desirable that any fact or matter
            be proved or established by the Corporation prior to taking or
            suffering any action hereunder, such fact or matter (unless other
            evidence in respect thereof be herein specifically prescribed) may
            be deemed to be conclusively proved and established by a certificate
            signed by a person believed by the Rights Agent to be the Chairman
            of the Board, the President or any Vice President and by the
            Treasurer or any Assistant Treasurer or the Secretary or any
            Assistant Secretary of the Corporation and delivered to the Rights
            Agent; and such certificate will be full authorization to the Rights
            Agent for any action taken or suffered in good faith by it under the
            provisions of this Agreement in reliance upon such certificate.

      (c)   The Rights Agent shall not be liable for any action taken or not
            taken by the Rights Agent under or in connection with this
            Agreement, except for losses arising directly and principally from
            its gross negligence, wilful misconduct or bad faith.
            Notwithstanding any other provision of this Agreement, and whether
            such losses or damages are foreseeable or unforeseeable, the Rights
            Agent shall not be liable under any circumstances whatsoever for any
            (a) breach by any other party of securities law or other rule of any
            securities regulatory authority, (b) lost profits or (c) special,
            indirect, incidental, consequential, exemplary, aggravated or
            punitive losses or damages.

      (d)   The Rights Agent will not be liable for or by reason of any of the
            statements of fact or recitals contained in this Agreement or in the
            certificates for Shares or the Rights Certificates (except its
            countersignature thereof) or be required to verify the same, but all
            such statements and recitals are and will be deemed to have been
            made by the Corporation only.

      (e)   The Rights Agent will not be under any responsibility in respect of
            the validity of this Agreement or the execution and delivery hereof
            (except the due authorization, execution and delivery hereof by the
            Rights Agent) or in respect of the validity or execution of any
            Share certificate or Rights Certificate (except its

                                       35
<PAGE>

            countersignature thereof); nor will it be responsible for any breach
            by the Corporation of any covenant or condition contained in this
            Agreement or in any Rights Certificate; nor will it be responsible
            for any change in the exercisability of the Rights (including the
            Rights becoming void pursuant to subsection 3.1(b) hereof) or any
            adjustment required under the provisions of Section 2.3 hereof or
            responsible for the manner, method or amount of any such adjustment
            or the ascertainment of the existence of facts that would require
            any such adjustment (except with respect to the exercise of Rights
            after receipt of the certificate contemplated by Section 2.3
            describing any such adjustment); nor will it by any act hereunder be
            deemed to make any representation or warranty as to the
            authorization of any Share to be issued pursuant to this Agreement
            or any Rights or as to whether any Shares will, when issued, be duly
            and validly authorized, executed, issued and delivered as fully paid
            and nonassessable.

      (f)   The Corporation agrees that it will perform, execute, acknowledge
            and deliver or cause to be performed, executed, acknowledged and
            delivered all such further and other acts, instruments and
            assurances as may reasonably be required by the Rights Agent for the
            carrying out or performance by the Rights Agent of the provisions of
            this Agreement.

      (g)   The Rights Agent is hereby authorized and directed to accept
            instructions with respect to the performance of its duties hereunder
            from any person believed by the Rights Agent to be the Chairman of
            the Board, the President, any Vice President, the Secretary or any
            Assistant Secretary, the Treasurer or any Assistant Treasurer of the
            Corporation, and to apply to such persons for advice or instructions
            in connection with its duties, and it shall not be liable for any
            action taken or suffered by it in good faith in accordance with
            instructions of any such person.

      (h)   The Rights Agent and any shareholder or stockholder, director,
            officer or employee of the Rights Agent may buy, sell or deal in
            Shares, Rights or other securities of the Corporation or become
            pecuniarily interested in any transaction in which the Corporation
            may be interested, or contract with or lend money to the Corporation
            or otherwise act as fully and freely as though it were not Rights
            Agent under this Agreement. Nothing herein shall preclude the Rights
            Agent from acting in any other capacity for the Corporation or for
            any other legal entity.

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

                                       36
<PAGE>

4.4         CHANGE OF RIGHTS AGENT

            The Rights Agent may resign and be discharged from its duties under
this Agreement upon 90 days' notice (or such lesser notice as is acceptable to
the Corporation) in writing mailed to the Corporation and to each transfer agent
of Shares by registered or certified mail in accordance with Section 5.9. The
Corporation may remove the Rights Agent upon 30 days' notice in writing, mailed
to the Rights Agent and to each transfer agent of the Shares by registered or
certified mail, and to the holders of the Rights in accordance with Section 5.9.
If the Rights Agent should resign or be removed or otherwise become incapable of
acting, the Corporation will appoint a successor to the Rights Agent. If the
Corporation fails to make such appointment within a period of 30 days after such
removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the holder of
any Rights (which holder shall, with such notice, submit such holder's Rights
Certificate for inspection by the Corporation), then the holder of any Rights
may apply to any court of competent jurisdiction for the appointment of a new
Rights Agent. Any successor Rights Agent, whether appointed by the Corporation
or by such a court, shall be a corporation incorporated under the laws of Canada
or a province thereof authorized to carry on the business of a trust company in
the Province of British Columbia. After appointment, the successor Rights Agent
will be vested with the same powers, rights, duties and responsibilities as if
it had been originally named as Rights Agent without further act or deed; but
the predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment, the Corporation will file
notice thereof in writing with the predecessor Rights Agent and each transfer
agent of the Shares, and mail a notice thereof in writing to the holders of the
Rights in accordance with Section 5.9. Failure to give any notice provided for
in this Section 4.4, however, or any defect therein, shall not affect the
legality or validity of the resignation or removal of the Rights Agent or the
appointment of any successor Rights Agent, as the case may be.

                           ARTICLE 5 - MISCELLANEOUS

5.1         REDEMPTION AND WAIVER

      (a)   The Board of Directors acting in good faith may, at its option, at
            any time prior to the Separation Time elect to redeem all but not
            less than all of the then outstanding Rights at a redemption price
            of $0.001 per Right appropriately adjusted in a manner analogous to
            the applicable adjustment provided for in Section 2.3 herein if an
            event of the type analogous to any of the events described in
            Section 2.3 herein shall have occurred (such redemption price being
            herein referred to as the "Redemption Price"). The redemption of the
            Rights by the Board of Directors may be made effective at such time,
            on such basis and with such conditions as the Board of Directors in
            its sole discretion may establish.

      (b)   The Board of Directors may, until the expiration of 10 Business Days
            following the occurrence of a Flip-in Event, upon written notice
            delivered to the Rights Agent, waive the application of Section 3.1
            to any particular Flip-in Event.

                                       37
<PAGE>

      (c)   Notwithstanding the provisions of subsection 5.1(b) herein, the
            Board of Directors may waive the application of Section 3.1 herein
            to any particular Flip-in Event, provided that both of the following
            conditions are satisfied:

            (i)   the Board of Directors has determined that the Acquiring
                  Person became an Acquiring Person by inadvertence and without
                  any intent or knowledge that he would become an Acquiring
                  Person; and

            (ii)  such Acquiring Person has reduced its Beneficial Ownership of
                  Voting Shares such that at the time of waiver pursuant to this
                  subsection 5.1(c) herein it is no longer an Acquiring Person;

            and, in the event of any such waiver, for the purposes of this
            Agreement, such Flip-in Event shall be deemed not to have occurred
            as a result of such Person having inadvertently become an acquiring
            Person.

      (d)   The Board of Directors shall, without further formality, be deemed
            to have elected to redeem the Rights at the Redemption Price on the
            date of expiry of a Permitted Bid or a Competing Permitted Bid,
            provided that the Offeror takes up and pays for the Voting Shares
            pursuant to the terms and conditions of the Permitted Bid or
            Competing Permitted Bid.

      (e)   If the Board of Directors elects or is deemed to have elected to
            redeem the Rights, the right to exercise the Rights will thereupon,
            without further action and without notice, terminate and the only
            right thereafter of the holders of Rights, as such, shall be to
            receive the Redemption Price.

      (f)   Within 10 days after the Board of Directors has elected or been
            deemed to have elected to redeem the Rights, the Corporation shall
            give notice of redemption to the holders of the then outstanding
            Rights by mailing such notice to each such holder at his last
            address as it appears upon the registry books of the Rights Agent
            or, prior to the Separation Time, on the registry books of the
            Transfer Agent for the Shares. Any notice which is mailed in the
            manner herein provided shall be deemed given, whether or not the
            holder receives the notice. Each such notice of redemption will
            state the method by which the payment of the Redemption Price will
            be made. The Corporation may not redeem, acquire or purchase for
            value any Rights at any time in any manner other than that
            specifically set forth in this Section 5.1, and other than in
            connection with the purchase of Shares prior to the Separation Time.

5.2         EXPIRATION

            No Person shall have any rights pursuant to this Agreement or in
respect of any Right after the Expiration Time, except the Rights Agent as
specified in subsection 4.1(a) herein.

                                       38
<PAGE>

5.3         ISSUANCE OF NEW RIGHTS CERTIFICATES

            Notwithstanding any of the provisions of this Agreement or of the
Rights to the contrary, the Corporation may, at its option, issue new Rights
Certificates evidencing Rights in such form as may be approved by the Board of
Directors to reflect any adjustment or change in the number or kind or class of
Shares purchasable upon exercise of Rights made in accordance with the
provisions of this Agreement.

5.4         SUPPLEMENTS AND AMENDMENTS

            Subject in each case to the Corporation having obtained the prior
written consent of The Toronto Stock Exchange, the Corporation may from time to
time supplement or amend this Agreement as follows:

      (a)   to make any changes or amendments required hereunder or otherwise
            which the Board of Directors acting in good faith may deem necessary
            or desirable, including without limitation amend the Exercise Price,
            provided that no such supplement or amendment made on or after the
            Stock Acquisition Date shall materially adversely affect the
            interest of the holders of Rights generally and provided further
            that no such supplement or amendment shall be made to the provisions
            of Article 4 except with the written concurrence of the Rights Agent
            to such supplement or amendment; or

      (b)   in order to cure any ambiguity or to correct or supplement any
            provision contained herein which may be inconsistent with any other
            provision herein or be otherwise defective, provided the no such
            amendment or supplement shall be made to the provisions of Article 4
            except with the written concurrence of the Rights Agent to such
            amendment or supplement.

5.5         FRACTIONAL RIGHTS AND FRACTIONAL SHARES

      (a)   The Corporation shall not be required to issue fractions of Rights
            or to distribute Rights Certificates which evidence fractional
            Rights. After the Separation Time there shall be paid to the
            registered holders of the Rights Certificates with regard to which
            fractional Rights would otherwise be issuable, an amount in cash
            equal to the same fraction of the Market Price of a whole Right in
            lieu of such Fractional Rights.

      (b)   The Corporation shall not be required to issue fractional Shares
            upon exercise of the Rights or to distribute certificates which
            evidence fractional Shares. In lieu of issuing fractional Shares,
            the Corporation shall pay to the registered holder of Rights
            Certificates at the time such Rights are exercised as herein
            provided, an amount in cash equal to the same fraction of the Market
            Price of one whole Share.

5.6         RIGHTS OF ACTION

            Subject to the terms of this Agreement, all rights of action in
respect to this Agreement, other than rights of action vested solely in the
Rights Agent, are vested in the

                                       39
<PAGE>

respective holders of the Rights and any holder of any Rights, without the
consent of the Rights Agent or of the holder of any other Rights, may, on such
holder's own behalf and for such holder's own benefit and the benefit of other
holders of Rights, as the case may be, enforce, and may institute and maintain
any suit, action or proceeding against the Corporation to enforce, or otherwise
act in respect of such holder's right to exercise such holder's Rights, or
Rights to which it is entitled, in the manner provided in this Agreement, and in
such holder's Rights Certificate. Without limiting the foregoing or any remedies
available to the holders of Rights, it is specifically acknowledged that the
holders of Rights would not have an adequate remedy at law for any breach of
this Agreement and will be entitled to specific performance of and injunctive
relief against actual or threatened violations of, the obligations of any Person
subject to this Agreement.

5.7         HOLDER OF RIGHTS NOT DEEMED A SHAREHOLDER

            No holder, as such, of any Right or Rights Certificate, shall be
entitled to vote, receive dividends or be deemed for any purpose the holder of
Shares or any other securities which may at any time be issuable on the exercise
of Rights, nor shall anything contained herein or in any Rights Certificate be
construed to confer upon the holder of any Right or Rights Certificate, as such,
any of the rights of a shareholder of the Corporation or any right to vote at
any meeting of shareholders of the Corporation whether for the election of
directors or otherwise or upon any matter submitted to shareholders at any
meeting thereof, or to give or withhold consent to any corporate action, or to
receive notice of meetings or other actions affecting shareholders (except as
expressly provided herein), or to receive dividends or subscription rights or
otherwise, until such Rights, or Rights to which such holder is entitled, shall
have been exercised in accordance with the provisions hereof.

5.8         NOTICE OF PROPOSED ACTIONS

            In case the Corporation shall propose after the Separation Time and
prior to the Expiration Time:

      (a)   to effect or permit (in cases where the Corporation's permission is
            required) any Flip-in Event; or

      (b)   to effect the liquidation, dissolution or winding up of the
            Corporation or the sale of all or substantially all of the
            Corporation's assets;

then, in each such case, the Corporation shall give to each holder of a Right,
in accordance with Section 5.9 herein, a notice of such proposed action, which
shall specify the date on which such Flip-in Event, liquidation, dissolution, or
winding up is to take place, and such notice shall be so given at least 20
Business Days prior to the date of the taking of such proposed action by the
Corporation.

5.9         NOTICES

            Any Notice or other communication authorized or required by this
Agreement to be given or made by the Rights Agent or by the holder of any Rights
to or on the Corporation

                                       40
<PAGE>

shall be delivered, telecopied or sent by first-class mail, postage prepaid,
addressed (until another address is filed in writing with the Rights Agent) as
follows:

            Aspreva Pharmaceuticals Corporation
            1203, 4464 Markham Street
            Victoria, British Columbia
            V8Z 7X8

            Attention: Corporate Secretary

            Telecopier: 250 744-2498

Any notice or other communication authorized or required by this Agreement to be
given or made by the Corporation or by the holder of any Rights to or on the
Rights Agent shall be delivered, telecopied or sent by first-class mail, postage
prepaid, addressed (until another address is filed in writing with the
Corporation) as follows:

            Computershare Investor Services Inc.
            510 Burrard Street
            Vancouver, British Columbia
            V6C 3B9

            Attention: Manager, Client Services

            Telecopier: (604) 604 661 9549

Any Notices or other communication authorized or required by this Agreement to
be given or made by the Corporation or the Rights Agent to or on the holder of
any Rights, shall be delivered or sent by first-class mail, postage prepaid,
addressed to such holder at the address of such holder as it appears upon the
registry books of the Rights Agent or, prior to the Separation Time, on the
registry books of the Corporation for the Common Shares.

Any notice which is delivered or telecopied herewith shall be deemed to have
been given and received on the business day next following the date of delivery
or telecopying, as the case may be. Any notice mailed as aforesaid shall be
deemed to have been given and received on the third business day following the
date it is posted, provided that if between the time of mailing and actual
receipt of the notice there shall be mail strike, slow-down or other labour
dispute which might affect delivery of the notice by mail, then the notice shall
be effective only when actually delivered.

5.10        COSTS OF ENFORCEMENT

            The Corporation agrees that if the Corporation or any other Person
the securities of which are purchasable upon exercise of Rights fails to fulfil
any of its obligations pursuant to this Agreement, then the Corporation or such
Person will reimburse the holder of any Rights for the costs and expenses
(including legal fees) incurred by such holder in actions to enforce its rights
pursuant to any Rights or this Agreement.

                                       41
<PAGE>

5.11        SUCCESSORS

            All the covenants and provisions of this Agreement by or for the
benefit of the Corporation or the Rights Agent shall bind and enure to the
benefit of their respective successors and assigns hereunder.

5.12        BENEFITS OF THIS AGREEMENT

            Nothing in this Agreement shall be construed to give to any Person
other than the Corporation, the Rights Agent and the holders of the Rights any
legal or equitable right, remedy or claim under this Agreement; but this
Agreement shall be for the sole and exclusive benefit of the Corporation, the
Rights Agent and the holders of the Rights.

5.13        GOVERNING LAW

            This Agreement and each Right issued hereunder shall be deemed to be
a contract made under the laws of the Province of British Columbia and for all
purposes shall be governed by and construed in accordance with the laws of
British Columbia applicable to contracts to be made and performed entirely
within British Columbia.

5.14        COUNTERPARTS

            This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original,
and all such counterparts shall together constitute one and the same instrument.

5.15        SEVERABILITY

            If any term or provision hereof or the application thereof to any
circumstances shall, in any jurisdiction and to any extent, be invalid or
unenforceable, such term or provision shall be ineffective as to such
jurisdiction to the extent of such invalidity or unenforceability without
invalidating or rendering unenforceable the remaining terms and provisions
hereof or the application of such term or provision to circumstances other than
those as to which it is held invalid or unenforceable.

5.16        EFFECTIVE DATE

            This Agreement is effective in accordance with its terms from the
date hereof. If this Agreement is not confirmed by resolution passed by a
majority of greater than 50% of the votes cast by Independent Shareholders who
vote in respect of confirmation of this Agreement at the special meeting of
Shareholders to be held on February 4, 2005 of the Corporation after the date of
this Agreement then this Agreement and any then outstanding Rights shall be of
no further force and effect from the Close of Business on the date of
termination of such meeting.

5.17        RECONFIRMATION AFTER FIVE YEARS

                  Notwithstanding the confirmation of this Agreement pursuant to
Section 5.16 herein, if this Agreement is not reconfirmed by a resolution passed
by a majority of greater than

                                       42
<PAGE>

50% of the votes cast by Independent Shareholders who vote in respect of such
reconfirmation of this Agreement at a meeting of shareholders to be held not
earlier then January 1, 2010 and not later than the date on which the 2010
annual general meeting of shareholders of the Corporation terminates, this
Agreement and all outstanding Rights shall terminate and be void and of no
further force and effect on and from the Close of Business on that date which is
the earlier of the date of termination of the meeting called to consider the
reconfirmation of this Agreement and the date of termination of the 2010 annual
general meeting of shareholders of the Corporation; provided, however, that no
Flip-in Event has occurred prior to the date upon which this Agreement would
otherwise terminate pursuant to this Section 5.17, which has not been waived
pursuant to Section 5.1 hereof.

5.18        DETERMINATIONS AND ACTIONS BY THE BOARD OF DIRECTORS

      (a)   The Board of Directors shall have the exclusive power and authority
            to administer and amend this Agreement and to exercise all rights
            and powers specifically granted to the Board of Directors or as may
            be necessary or advisable in the administration of this Agreement,
            including, without limitation, the right and power to:

            (i)   interpret the provisions of this Agreement; and

            (ii)  make all actions, calculations, interpretations and
                  determinations deemed necessary or advisable for the
                  administration of this Agreement (including a determination to
                  redeem or not to redeem the Rights or to amend the Agreement
                  in accordance with the terms hereof).

            All such actions, calculations, interpretations and determinations
            (including, for purposes of item (iv) below, all omissions with
            respect to the foregoing) which are done or made by the Board of
            Directors, in good faith shall:

            (iii) be final, conclusive and binding on the Corporation, the
                  Rights Agent, the holders of the Rights and all other parties;
                  and

            (iv)  not subject the Board of Directors to any liability to the
                  holders of the Rights.

      (b)   Nothing contained in this Agreement shall be deemed to be in
            derogation of the obligation of the Board of Directors to exercise
            its fiduciary duties. Without limiting the generality of the
            foregoing, nothing contained herein shall be construed to suggest or
            imply that the Board of Directors shall not be entitled to recommend
            that the holders of the Voting Shares reject any Permitted Bid or
            any Competing Permitted Bid or any Take-Over Bid, or to take any
            other action (including, without limiting the generality of the
            foregoing, the commencement, prosecution, defence or settlement of
            any litigation and the submission of additional or alternative
            Permitted Bids or Competing Permitted Bids or Take-Over Bids) with
            respect to any Permitted Bid or any Competing Permitted Bid or any
            Take-Over Bid or otherwise that the Board of Directors believes is
            necessary or appropriate in the exercise of its fiduciary duties.

                                       43
<PAGE>

5.19        DECLARATION AS TO NON-CANADIAN HOLDERS

            If in the opinion of the Board of Directors (who may rely upon the
advice of counsel) any action or event contemplated by this Agreement would
require compliance with the securities laws or comparable legislation of a
jurisdiction outside Canada, the Board of Directors acting in good faith may
take such actions as it may deem appropriate to ensure that such compliance is
not required, including without limitation establishing procedures for the
issuance to a Canadian resident trust company registered under the trust company
legislation of Canada or any province thereof or a portfolio manager registered
under the securities legislation of one or more provinces of Canada (herein
called a "Fiduciary") of Rights or securities issuable on exercise of Rights,
the holding thereof in trust for the Persons entitled thereto (but reserving to
the Fiduciary or to the Fiduciary and the Corporation, as the Corporation may
determine, absolute instrument discretion with respect thereto) and the sale
thereof and remittance of the proceeds of such sale, if any, to the Persons
entitled thereto. In no event shall the Corporation or the Rights Agent be
required to issue or deliver Rights or securities issuable on exercise of Rights
to Persons who are citizens, residents or nationals of any jurisdiction other
than Canada and any province or territory thereof in which such issue or
delivery would be unlawful without registration of the relevant Persons or
securities for such purposes.

5.20        SUCCESSOR CORPORATIONS

            The Corporation shall not consummate or permit or suffer to occur
any consolidation, amalgamation, merger or transfer of the undertaking or assets
of the Corporation as an entirety or substantially as an entirety to another
Corporation (the "Successor Corporation") unless the Successor Corporation
resulting from such consolidation, amalgamation, merger or transfer (if not the
Corporation) shall expressly assume, by supplemental agreement in form
satisfactory to the Rights Agent and executed and delivered to the Rights Agent,
the due and punctual performance and observance of each and every covenant and
condition of this Agreement to be performed and observed by the Corporation.

                                       44
<PAGE>

5.21        TIME OF ESSENCE

            Time shall be of the essence of this Agreement.

            WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

ASPREVA PHARMACEUTICALS CORPORATION         COMPUTERSHARE INVESTOR SERVICES INC.

Per: /s/ RICHARD GLICKMAN                   Per: /s/ JUNE GLOVER
    __________________________________          ________________________________
    Authorized Signatory                        Authorized Signatory

Per: /s/ BRUCE COUSINS                      Per: /s/ CHAD EMNACE
    __________________________________          ________________________________
    Authorized Signatory                        Authorized Signatory

                                       45
<PAGE>

                                    EXHIBIT A

                          (FORM OF RIGHTS CERTIFICATE)

Certificate No.
               __________________________  ______________________________Rights

THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE CORPORATION, ON THE
TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES (SPECIFIED
IN SUBSECTION 3.1(b) OF THE RIGHTS AGREEMENT), RIGHTS BENEFICIALLY OWNED BY AN
ACQUIRING PERSON OR TRANSFEREES OF AN ACQUIRING PERSON OR ITS AFFILIATES OR
ASSOCIATES (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR ANY PERSON
ACTING JOINTLY OR IN CONCERT WITH ANY OF THEM MAY BECOME VOID WITHOUT ANY
FURTHER ACTION.

                               Rights Certificate

This certifies that ___________________________, or registered assigns, is the
registered holder of the number of Rights set forth above, each of which
entitles the registered holder thereof, subject to the terms, provisions and
conditions of the Shareholder Rights Plan Agreement dated as of February 4,
2005, as such may from time to time be amended, restated, varied or replaced
(the "RIGHTS AGREEMENT") between Aspreva Pharmaceuticals Corporation, a
corporation continued under the British Columbia Business Corporations Act (the
"CORPORATION") and Computershare Investor Services Inc., a trust company
incorporated under the laws of Canada, as Rights Agent (the "RIGHTS AGENT")
which term shall include any successor Rights Agent under the Rights Agreement,
to purchase from the Corporation at any time after the Separation Time (as such
term is defined in the Rights Agreement) and prior to the Expiration Time (as
such term is defined in the Rights Agreement), one fully paid common share of
the Corporation (a "COMMON SHARE") at the Exercise Price referred to below, upon
presentation and surrender of this Rights Certificate with the Form of Election
to Exercise duly executed and submitted to the Rights Agent at its principal
office in any of the cities of Vancouver and Toronto. The Exercise Price shall
initially be US$100 per Right and shall be subject to adjustment in certain
events as provided in the Rights Agreement. The number of Common Shares which
may be purchased for the Exercise Price is subject to adjustment as set forth in
the Rights Agreement.

            This Rights Certificate is subject to all the terms, provisions and
conditions of the Rights Agreement which terms and provisions are hereby
incorporated herein by reference and made a part hereof and to which Rights
Agreement reference is hereby made for a full description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the
Rights Agent, the Corporation and the holders of the Rights Certificates. Copies
of the Rights Agreement are on file at the registered office of the Corporation
and are available upon written request.

            This Rights Certificate, with or without other Rights Certificates,
upon surrender at any of the offices of the Rights Agent designated for such
purpose, may be exchanged for another Rights Certificate or Rights Certificate
of like tenor and date evidencing an aggregate

<PAGE>

number of Rights equal to the aggregate number of Rights evidenced by the Rights
Certificate or Rights Certificates surrendered. If this Rights Certificate is
exercised in part, the registered holder shall be entitled to receive, upon
surrender hereof, another Rights Certificate or Rights Certificate to the number
of whole Rights not exercised. Any exercise of the Rights is subject to
completion of the Form of Election to Exercise attached as Exhibit 1 hereto. Any
assignment of Rights is subject to completion of the Form of Assignment attached
as Exhibit 2 hereto.

            Subject to the provisions of the Rights Agreement, the Rights
evidenced by this Certificate may be redeemed by the Corporation at a redemption
price of $0.001 per Right, subject to adjustment in certain events, under
certain circumstances at its option.

            No fractional Common Shares will be issued upon the exercise of any
Right or Rights evidenced hereby nor will Rights Certificates be issued for less
than one whole Right. After the Separation Time, in lieu of issuing fractional
Rights a cash payment will be made as provided in the Rights Agreement.

            No holder of this Rights Certificate, as such, shall be entitled to
vote or receive dividends or be deemed for any purpose the holder of Common
Shares or of any other securities which may at any time be issuable upon the
exercise hereof, nor shall anything contained in the Rights Agreement or herein
be construed to confer upon the holder hereof, as such, any of the Rights of a
shareholder of the Corporation or any right to vote for the election of
directors or upon any matter submitted to shareholders at any meeting thereof,
or to give or withhold consent to any corporate action, or to receive notice of
meetings or other actions affecting shareholders (except as provided in the
Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Rights evidenced by this Rights Certificate shall have been exercised
as provided in the Rights Agreement.

            This Rights Certificate is not valid or obligatory for any purpose
until it has been countersigned by the Rights Agent.

            IN WITNESS the facsimile signature of the proper officers of the
Corporation and its seal.

Date:   _____________________________________
ATTEST:

__________________________________________    By:______________________________
Secretary

Countersigned: (By Rights Agent)

By ________________________________________
   Authorized Signature

<PAGE>

                                    EXHIBIT 1

                          FORM OF ELECTION TO EXERCISE

                   (TO BE ATTACHED TO EACH RIGHTS CERTIFICATE)

To:

The undersigned hereby irrevocably elects to exercise______________ whole Rights
represented by the attached Rights Certificate to purchase the Common Shares
issuable upon the exercise of such Rights and requests that certificates for
such shares be issued in the name of:

Name: __________________________________________________________________________

Street: ________________________________________________________________________

City, Province & Postal Code: __________________________________________________

Social Insurance Number or

other taxpayer identification number: __________________________________________

If such number of Rights shall not be all the Rights evidenced by this Rights
Certificate, the undersigned requests that a new Rights Certificate for the
balance of such Rights be issued in the name of and delivered to:

Name: __________________________________________________________________________

Street: ________________________________________________________________________

City, Province & Postal Code: __________________________________________________

Social Insurance Number or

other taxpayer identification number: __________________________________________

Dated:______________________________   ______________________________________
                                       Signature

Signature Guaranteed:                   (The signature on this form must
                                        correspond with the name as recorded on
                                        the certificate(s) in every particular,
                                        without alteration or enlargement or any
                                        change whatsoever)

Signature must be guaranteed by a Canadian chartered bank, a Canadian trust
company, a member firm of a recognized stock exchange in Canada, a member of a
registered national securities exchange in the United States, or a member of the
Securities Transfer Association Medallion (STAMP) Program.

________________________________________________________________________________
                           (To be completed if true)

The undersigned represents, for the benefit of all holders of Rights and Common
Shares, that the Rights evidenced by this Rights Certificate are not, and, to
the best of the knowledge of the undersigned, never have been, Beneficially
Owned by an Acquiring Person or an Affiliate or Associate thereof or a person
"acting jointly or in concert" with an Acquiring Person or an Affiliate or
Associate thereof. Capitalized terms and "acting jointly or in concert" have the
meanings set out in the Rights Agreement.

                                                     ___________________________
                                                     Signature

<PAGE>

                                     NOTICE

If the certification set forth above is not completed, the Corporation shall
deem the Beneficial Owner of the Rights evidenced by this Rights Certificate to
be an Acquiring Person or an Affiliate or Associate thereof. The Corporation
shall not issue Rights Certificates in exchange for a Rights Certificate owned
or deemed to have been owned by an Acquiring Person or an Affiliate or Associate
thereof or by a Person acting jointly or in concert with an Acquiring Person or
an Affiliate or Associate thereof.

<PAGE>

                                    EXHIBIT 2

                               FORM OF ASSIGNMENT

(TO BE EXECUTED BY THE REGISTERED HOLDER IF SUCH HOLDER DESIRES TO TRANSFER THE
                              RIGHTS CERTIFICATE)

FOR VALUE RECEIVED _____________________________________________________________

hereby sells, assigns and transfers unto _______________________________________

________________________________________________________________________________

                  (Please print name and address of transferee)

the Rights represented by this Rights Certificate, together with all right,
title and interest therein, and hereby irrevocably constitutes and appoints
_______________, as attorney, to transfer the within Rights on the books of the
within-named Corporation, with full power of substitution.

Dated: ________________   __________________________________
                          Signature

Signature Guaranteed:    (The signature on this form must correspond with the
                         name as recorded on the certificate(s) in every
                         particular, without alteration or enlargement or any
                         change whatsoever)

Signature must be guaranteed by a Canadian chartered bank, a Canadian trust
company, a member firm of a recognized stock exchange in Canada, a member of a
registered national securities exchange in the United States, or a member of the
Securities Transfer Association Medallion (STAMP) Program.

________________________________________________________________________________
                            (To be completed if true)

The undersigned represents, for the benefit of all holders of Rights and Common
Shares, that the Rights evidenced by this Rights Certificate are not, and, to
the best of the knowledge of the undersigned, never have been, Beneficially
Owned by an Acquiring Person or an Affiliate or Associate thereof or a person
"acting jointly or in concert" with an Acquiring Person or an Affiliate or
Associate thereof. Capitalized terms and "acting jointly or in concert" have the
meanings set out in the Rights Agreement.

                                                              __________________
                                                              Signature

<PAGE>

                                     NOTICE

If the certification set forth above is not completed, the Corporation shall
deem the Beneficial Owner of the Rights evidenced by this Rights Certificate to
be an Acquiring Person or an Affiliate or Associate thereof. The Corporation
shall not issue Rights Certificates in exchange for a Rights Certificate owned
or deemed to have been owned by an Acquiring Person or an Affiliate or Associate
thereof or by a Person acting jointly or in concert with an Acquiring Person or
an Affiliate or Associate thereof.

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