Document:

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                                  COVANCE INC.

                      NON-QUALIFIED STOCK OPTION AGREEMENT

                     2002 EMPLOYEE EQUITY PARTICIPATION PLAN
                                  (200_ AWARD)

         NON-QUALIFIED STOCK OPTION AGREEMENT, dated as of ______________ (the
"Agreement") between COVANCE INC., a Delaware Company (the "Company"), located
at 210 Carnegie Center, Princeton, New Jersey 08540, and ________________ (the
"Employee").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         A. WHEREAS, the Employee is now employed by the Company, or a
corporation which is a "subsidiary corporation" of the Company, within the
meaning of Section 424(f) of the Internal Revenue Code of 1986, as amended,
modified or supplemented from time to time (the "Code") or which is an entity in
which the Company holds beneficially at least fifty percent (50%) of the
ownership interest (each, "Subsidiary Company"), in an important executive,
managerial or technical capacity.

         B. WHEREAS, the Company desires to have the Employee remain in the
employment of the Company or a Subsidiary Company and to afford the Employee the
opportunity to acquire, or enlarge the Employee's stock ownership in the Company
so that the Employee may have direct proprietary interest in the Company's
success;

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements set forth below, the receipt of which is hereby
acknowledged, the parties hereto agree as follows:

         1. GRANT; VESTING. (a) Subject to the terms and conditions of the
Employee Equity Participation Plan (as such plan may be amended, modified or
supplemented from time to time, the "Plan") and this Agreement, the Company
hereby grants to the Employee, from the date of this Agreement ("Grant Date"),
to __________________ [THREE YEARS FROM GRANT DATE] ("Expiration Date"), the
option (the "Option") to purchase from the Company up to an aggregate of ______
shares (the "Shares") of the Company's common stock, par value $.01 per share
("Common Stock") at the exercise price of $_____ per share (the "Option Price").
This Option is not an incentive stock option under Section 422 of the Code.

         (b) The Option shall vest and may be exercised, in whole or in part,
as follows:

         (i)      Commencing twelve (12) months after the Grant Date, one-third
                  (1/3) of the aggregate Shares.

         (ii)     Commencing twenty-four (24) months after the Grant Date, an
                  additional one-third (1/3) of the aggregate Shares.

         (iii)    Commencing thirty-six (36) months after the Grant Date, an
                  additional one-third (1/3) of the aggregate Shares.

         2. EXERCISE. (a) The Option shall be exercised by the Employee
delivering to the Vice President, Human Resources, (i) written notice specifying
the numbers of Shares the Employee desires to purchase, and (ii) the Option
Price of the Shares being exercised and the amount of any applicable federal and
state withholding taxes (the "Purchase Price"). The Purchase Price shall be
payable in (A) cash, (B) a certified check payable to the Company or (C) shares
of Common Stock owned for at least six months by the Employee with a Current
Market Value (as defined below) equal to the Purchase Price duly endorsed or
accompanied by stock power executed in blank. Current Market Value shall mean
the average of the high and low selling prices of Common Stock on the date of
exercise as reported by the New York Stock Exchange. In no event will the
Employee receive or be entitled to an additional or "reload" stock option by
virtue of exercise of the Option.

         (b) Within fifteen (15) business days after any exercise of the Option,
in whole or in part, by the Employee, the Company shall instruct the transfer
agent to issue to the Employee the number of shares with respect to which the
Option shall be so exercised. The Company shall deliver to the Employee a
certificate registered in the Employee's name.

          3. TERMINATION. The Option, whether vested or unvested, shall
terminate and be of no further force or effect in accordance with the following
provisions:

         (a)      EXPIRATION. The occurrence of the Expiration Date.

         (b)      NORMAL OR EARLY RETIREMENT WITH THE CONSENT OF THE COMPANY. If
                  the Employee's employment shall terminate on account of normal
                  retirement or early retirement with the consent of the
                  Company, the portion of the Option which had vested prior to
                  such termination or retirement may be exercised for the
                  remaining life of the Option and

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                  the portion of the Option which had not vested vested prior to
                  such termination or retirement shall terminate immediately
                  upon such termination or retirement.

         (c)      EARLY RETIREMENT WITHOUT CONSENT OR TERMINATION FOR
                  PERFORMANCE. If the Employee shall retire early without the
                  consent of the Company or if the Employee's employment shall
                  be terminated for performance, the portion of the Option which
                  had vested prior to such retirement or termination may be
                  exercised for 90 days following such retirement or termination
                  to the extent exercisable at the date of such retirement or
                  termination, and the portion of the Option which had not
                  vested prior to such retirement or termination shall terminate
                  immediately upon such retirement or termination.

         (d)      DEATH. If the Optionee shall die while employed, the portion
                  of the Option which had vested prior to the Employee's death
                  may be exercised by the Optionee's duly appointed legal
                  representative during the remaining life of the Option, and
                  the portion of the Option which had not vested prior to such
                  death shall terminate immediately upon such death.

         (e)      DISABILITY. If the Employee's employment shall terminate as a
                  result of disability (as defined in Section 22(e) (3) of the
                  Code), the portion of the Option which had vested prior to
                  such termination may be exercised during the remaining life of
                  the Option, and the portion of the Option which had not vested
                  prior to such termination shall terminate immediately upon
                  such termination.

         (f)      DIVESTITURE, ETC. If the Employee's employment is terminated
                  due to a reduction in force or divestiture or discontinuance
                  of certain of the Company's operations, the portion of the
                  Option which had vested prior to such termination may be
                  exercised for one year after such termination of employment,
                  and shall terminate thereafter.

         (g)      VOLUNTARY TERMINATION, DERELICTION OF DUTIES OR HARMFUL ACTS.
                  If the Employee voluntarily leaves the employ of the Company
                  without its express consent, this Option shall terminate
                  immediately and be of no further force or effect. If the
                  Employee shall cause the Company to suffer financial harm or
                  damage to its reputation (either before or after termination
                  of employment) through (i) dishonesty, (ii) material violation
                  of the Company's standards of ethics or conduct, or (iii)
                  material deviation from the duties owed the Company by the
                  Employee, this Option shall terminate and be of no further
                  force or effect.

         (h)      TRANSFERS. If the Employee shall be transferred from the
                  Company to a Subsidiary Company, or from a Subsidiary Company
                  to the Company, or from a Subsidiary Company to another
                  Subsidiary Company, his employment shall not be deemed to be
                  terminated by reason of such transfer. The portion of the
                  Option that had already vested may be exercised for one year
                  after the date on which a Subsidiary Company in which the
                  Employee is employed shall cease to be a Subsidiary Company
                  and the Employee is not thereupon transferred to and employed
                  by the Company or another Subsidiary Company, and shall
                  terminate thereafter.

         4. CONSTRUCTION. Whenever the word "Employee" is used in any provision
of this Agreement under circumstances where the provision should logically be
construed to apply to the estate, personal representative, or beneficiary to
whom this Option may be transferred by Will, by the laws of descent and
distribution, or a qualified domestic relations order pursuant to the Code or
Title I of the Employment Retirement Income Security Act of 1974, as amended,
modified or supplemented from time to time ("ERISA"), it shall be deemed to
include such person.

         5. RESTRICTIONS ON TRANSFER. The Option is not transferable by the
Employee otherwise than by Will, the laws of descent and distribution, or a
qualified domestic relations order pursuant to the Code or Title I of ERISA.
During the Optionee's lifetime, the Option shall be exercisable only by him and
any shares purchased upon the exercise of the Option shall be issued in the name
of the Employee alone. No assignment or transfer of the Option, or of the rights
represented thereby, whether voluntary or involuntary, by operation of law or
otherwise, (except by Will, the laws of descent and distribution, or a qualified
domestic relations order pursuant to the Code or Title I of ERISA), shall vest
in the assignee or transferee any interest or right herein to the Option
whatsoever. Further, immediately upon any attempt to assign or transfer the
Option, the Option shall terminate and be of no further force or effect.

         6. RIGHTS. The Employee shall not be deemed, for any purpose, to be a
stockholder of the Company with respect to any Shares underlying the Option
which shall not have been exercised and payment and issue made as in this
Agreement provided.

         7. POWERS. The existence of this Option shall not affect in any way the
right or power of the Company or its stockholders to make or authorize any or
all adjustments, recapitalization, reorganizations or other changes in the
Company's capital structure or its business, or any merger or consolidation of
the Company, or any issue of bonds, debentures, preferred or prior preference
stocks ahead of or affecting the Common Stock or the rights thereof, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any
part of its assets or business, or any other corporate act or proceeding,
whether of a similar character or otherwise.

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         8. ADJUSTMENTS; RECAPITALIZATION. The Shares subject to the Option are
shares of the Common Stock of the Company as constituted on the date of this
Agreement, but if and whenever, prior to the delivery by the Company of the
Shares subject to the Option, the Company shall effect a subdivision or
consolidation of shares, or other capital adjustment, or the payment of a stock
dividend, or other increase or reduction of the number of shares of Common Stock
outstanding, without receiving compensation therefor in money, services or
property, then (a) in the event of any increase in the number of such shares
outstanding, the number of Shares then remaining subject to the Option shall be
proportionately increased, and the cash consideration payable per share shall be
proportionately reduced, and (b) in the event of a reduction in the number of
shares outstanding, the number of Shares of then remaining subject to the Option
shall be proportionately reduced, and the cash consideration payable per share
shall be proportionately increased. There shall be no adjustment to the Option
with respect to the payment of cash dividends to the Company's stockholders.

         9. CHANGE OF CONTROL. All Options which have not vested as of the date
of a Change of Control (as defined below) occurs, shall vest and be immediately
exercisable by Employee upon a Change of Control. For purposes of this
Agreement, a Change of Control shall be defined as:

         (1)      any person (including as such term is used in Section 13(d)
                  and 14(d)(2) of the Securities Exchange Act of 1934, as
                  amended) who becomes the beneficial owner, directly or
                  indirectly, of securities representing 20% or more of the
                  combined voting power of the Company's then outstanding
                  securities; or

         (2)      as a result of a proxy contest or contests or other forms of
                  contested shareholder votes (in each case either individually
                  or in the aggregate), a majority of the individuals elected to
                  serve on the Company's Board of Directors are different than
                  the individuals who served on the Company's Board of Directors
                  at any time within the two years prior to such proxy contest
                  or contests or other forms of contested shareholder votes (in
                  each case either individually or in the aggregate); or

         (3)      when Company shareholders approve a merger or consolidation
                  (where in each case the Company is not the survivor thereof),
                  a sale or disposition of all or substantially all of the
                  Company's assets, or a plan of partial or complete
                  liquidation; or

         (4)      where an offerer (other than the Company) purchases shares of
                  Common Stock pursuant to a tender exchange offer for such
                  shares.

         10. CHANGES IN LAW. Notwithstanding anything in this Agreement to the
contrary, if at any time from the Grant Date to the Expiration Date, any law or
regulations of any governmental authority having jurisdiction in the premises
shall require either the Company or the Employee to take any action in
connection with the Shares then to be issued, the issue of such Shares shall be
deferred until such action shall have been taken.

         11. DISPUTE. Any dispute or disagreement which shall arise under, or as
a result of, or pursuant to, this Agreement shall be finally determined by the
Company's Compensation Committee of the Board of Directors in its absolute and
uncontrolled discretion, and any such determination or any other determination
by the Company's Compensation Committee of the Board of Directors under or
pursuant to this Agreement and any interpretation by the Company's Compensation
Committee of the Board of Directors of the terms of this Agreement, shall be
final, binding and conclusive on all persons affected thereby.

         12. SECURITIES LAW RESTRICTIONS. The Employee represents and warrants
that he or she is acquiring this Option, and, in the event this Option is
exercised, the Shares, for investment, for his or her own account and not with a
view to the distribution thereof, and that the Employee has no present intention
of disposing of this Option or the Shares or any interest therein or sharing
ownership thereof with any other person or entity. The Employee shall not sell,
pledge or transfer the Shares except pursuant to an effective registration
statement under the Securities Act of 1933, as amended.

         13. DATA AUTHORIZATION. The Employee acknowledges and consents to the
collection, use, processing and transfer of personal data as described in this
paragraph. The Company, its subsidiaries and the Employee's employer hold
certain personal information about the Employee, including the Employee's name,
home address and telephone number, date of birth, social security number or
other employee identification number, salary, nationality, job title, any shares
of stock or directorships held in the Company, details of all options or any
other entitlement to shares of stock awarded, canceled, purchased, vested,
unvested or outstanding in the Employee's favor, for the purpose of managing and
administering the Plan ("Data"). The Company and/or its subsidiaries will
transfer Data amongst themselves as necessary for the purpose of implementation,
administration and management of the Employee's participation in the Plan, and
the Company and/or any of its subsidiaries may each further transfer Data to any
third parties assisting the Company in the implementation, administration and
management of the Plan. These recipients may be located in the European Economic
Area, the United States, or elsewhere. The Employee authorizes them to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the
purposes of implementing, administering and managing the Employee's
participation in the Plan, including any requisite transfer of such Data as may
be required for the administration of the Plan and/or the

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subsequent holding of shares of stock on the Employee's behalf to a broker or
other third party with whom the Employee may elect to deposit any shares of
stock acquired pursuant to the Plan. The Employee may, at any time, review Data,
require any necessary amendments to it or withdraw the consents herein in
writing by contacting the Company; however, withdrawing consent may affect the
Employee's ability to participate in the Plan.

         14. DISCRETIONARY NATURE OF PLAN. The Employee acknowledges and agrees
that the Plan is discretionary in nature and may be amended, cancelled, or
terminated by the Company, in its sole discretion, at any time. The grant of
stock options under the Plan is a one-time benefit and does not create any
contractual or other right to receive a grant of stock options or benefits in
lieu of stock options in the future. Future grants of stock options, if any,
will be at the sole discretion of the Company, including, but not limited to,
the timing of any grant, the number of stock options, vesting provisions, and
the exercise price.

         15. NO EFFECT ON EMPLOYMENT. This Agreement does not give, nor shall it
be construed as giving, the Employee any right to employment by the Company or
any of its subsidiaries or affiliates.

         16. GOVERNING LAW; BINDING EFFECT. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW JERSEY (WITHOUT
REGARD TO THE CONFLICT OF LAW PROVISIONS THEREOF) AND ALL QUESTIONS CONCERNING
THE VALIDITY AND CONSTRUCTION THEREOF SHALL BE GOVERNED IN ACCORDANCE WITH THE
LAWS OF SAID STATE; PROVIDED, HOWEVER, THAT ALL MATTERS OF CORPORATE GOVERNANCE
AND OTHER CORPORATE MATTERS CONCERNING DELAWARE CORPORATIONS SHALL BE GOVERNED
BY THE DELAWARE GENERAL CORPORATION LAW. Except as otherwise expressly provided
herein, this Agreement shall be binding upon and inure to the benefit of the
parties hereto, their legal representatives, successors and assigns.

         17. EFFECT ON COMPENSATION. Notwithstanding anything in this Agreement
to the contrary, none of the Options or the Shares subject to the Options, if
any, granted or paid to Employee shall be considered compensation for the
purpose of determining Employee's compensation under any other benefit or
compensation plan of the Company, including, without limitation, any bonus plan,
variable compensation plan, long-term incentive plan, pension plan or other
retirement plans.

         18. PLAN DOCUMENT. This Agreement is subject in all respects to the
terms and conditions of the Plan, a copy of which may be obtained from the
Company's Vice President, Human Resources, 210 Carnegie Center, Princeton, New
Jersey 08540. To the extent that there is any inconsistency or conflict between
this Agreement and the Plan, the Plan shall control.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by its duly authorized officer, and the Employee has hereunto set his
hand, all on the day and year first above written.

                                        COVANCE INC.

                                       -------------------------------------
Attest:

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

                                       EMPLOYEE

                                       -------------------------------------
                                       Optionee's Signature

                                       Print Name:
                                                  --------------------------

                                       S.S./S.I. Number:
                                                        --------------------

                                       4<PAGE>

                                  COVANCE INC.

                           RESTRICTED STOCK AGREEMENT

                     2002 EMPLOYEE EQUITY PARTICIPATION PLAN
                            (200_ [GRANT YEAR]AWARD)

         RESTRICTED STOCK AGREEMENT dated as of _________________ [GRANT YEAR]
(the "Agreement") between COVANCE INC., a Delaware corporation ("Company"),
located at 210 Carnegie Center, Princeton, New Jersey 08540, and ____________
(the "Employee").

                              W I T N E S S E T H:
                              - - - - - - - - - -

         A. WHEREAS, the Employee is currently employed by the Company, or a
corporation which is a "subsidiary corporation" within the meaning of Section
424(f) of the Internal Revenue Code of 1986, as amended, modified or
supplemented from time to time ("Code") or which is an entity in which the
Company holds beneficially at least fifty percent (50%) of the ownership
interest (each, a "Subsidiary Company"), in an important executive, managerial
or technical capacity.

         B. WHEREAS, the Company desires to have the Employee remain in the
employment of the Company or a Subsidiary Company and to afford the Employee the
opportunity to acquire, or enlarge the Employee's, stock ownership in the
Company so that the Employee may have a direct proprietary interest in the
Company's success.

         NOW, THEREFORE, in consideration of the premises, the mutual covenants
and agreements set forth below, and for other good and valuable consideration,
receipt of which is hereby acknowledged, the parties hereby agree as follows:

         1. GRANT OF SHARES. Subject to the terms and conditions of the Employee
Equity Participation Plan (as amended, modified or supplemented from time to
time the "Plan") and this Agreement, the Company hereby grants ("Grant") to the
Employee, as of the date of this Agreement ("Grant Date") _________ shares (the
"Initial Shares") of Common Stock, par value $.01 per share (the "Common
Stock"), of the Company; PROVIDED, HOWEVER, that the number of the Initial
Shares may be increased or decreased depending on the Company's return on
average assets ("ROA") in 200_ [GRANT YEAR] and percentage increase in year-end
backlog ("Year-End Backlog") calculated as of December __, 200_ [GRANT YEAR]
compared to Year-End Backlog calculated as of December __, 200_ [YEAR PRIOR TO
GRANT YEAR], all as more fully specified on Exhibit A hereto (such Initial
Shares, after giving effect to any such decrease or increase, being the
"Adjusted Shares" and together with any Additional Shares (as defined below),
being the "Shares"); and PROVIDED, FURTHER, HOWEVER, that additional shares of
Common Stock may be earned and issued to Employee in respect of the years 200_
[ONE YEAR AFTER GRANT YEAR] and 200_ [TWO YEARS AFTER GRANT YEAR] as specified
in Exhibit B hereto (such additional shares, if any, earned for the years 200_
[ONE YEAR AFTER GRANT YEAR] and 200_ [TWO YEARS AFTER GRANT YEAR] being,
respectively, the "200_ [ONE YEAR AFTER GRANT YEAR] Additional Shares" and the
"200_ [TWO YEARS AFTER GRANT YEAR] Additional Shares" and collectively being the
"Additional Shares"). No Adjusted Shares or Additional Shares shall be forfeited
solely as a result of the Company's performance in any year subsequent to the
year that such Adjusted Shares or Additional Shares were earned. Nothing in this
Paragraph 1 shall be relied on or used to interrupt the vesting or termination
requirements of Paragraphs 2 and 3. The ROA and Year-End Backlog for 200_,
[GRANT YEAR] 200_ [ONE YEAR AFTER GRANT YEAR] and 200_ [TWO YEARS AFTER GRANT
YEAR] shall be certified by the Company's Compensation and Organization
Committee; PROVIDED, that in determining ROA and Year-End Backlog for any such
years such Committee may include or exclude, on a basis consistent with
circumstances existing when such goals were established, as applicable, the
financial effect on ROA and Year-End Backlog for any such year arising from any
acquisition of the stock or assets of any other person or entity, the
divestiture of all or any of the Company's businesses, operations or facilities,
strategic expenditures by the Company identified to the Board of Directors as
such, FORCE MAJEURE events, material litigation or any other unexpected or
unforeseen extraordinary event or occurrence during the year in question. In
calculating the number of Additional Shares to grant Employee, if any, any of
the foregoing adjustments may be considered by the Compensation and Organization
Committee in determining ROA and Year-End Backlog for the years subsequent to
the year that the event giving rise to such adjustment occurred, as determined
by the Compensation and Organization Committee.

         2. VESTING OF RESTRICTED SHARES; RIGHTS. (a) The Shares shall vest on
December __, 200_ [THREE YEARS AFTER GRANT YEAR]; PROVIDED, HOWEVER, that 200_
[TWO YEARS AFTER GRANT YEAR] Additional Shares, if any, shall vest on the fourth
business day after the date in 200_ [THREE YEARS AFTER GRANT YEAR] that the
Compensation and Organization Committee has certified the 200_ [TWO YEARS AFTER
GRANT YEAR] ROA and Year-End Backlog.

         (b) Subject to the terms and conditions of this Agreement, Employee
shall have all rights relating to the Initial Shares and, when issued, the
Additional Shares, including the right to vote and collect dividends as declared
and paid by the Company, subject to appropriate withholding to satisfy
applicable tax requirements.

                                                                               1
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         3. TERMINATION. (a) The Grant with respect to any unvested Shares shall
be forfeited and be of no further force or effect upon the termination of the
Employee's employment, for any reason, with the Company, except in the case of
his death, disability (as defined 22(e)(3) of the Code) or his retirement with
the consent of the Company, in which case all unvested Shares shall thereupon
immediately vest.

         (b) If the Employee shall be transferred from the Company to a
Subsidiary Company, or from a Subsidiary Company to the Company, or from a
Subsidiary Company to a Subsidiary Company, his employment shall not be deemed
to be terminated by reason of such transfer. The unvested portion of the Shares
shall terminate immediately if, while the Employee is employed by a Subsidiary
Company, such Subsidiary Company shall cease to be a Subsidiary Company and the
Employee is not thereupon transferred to and employed by the Company or another
Subsidiary Company.

         4. CONSTRUCTION. Whenever the word "Employee" is used in any provision
of this Agreement in circumstances where the provision should logically be
construed to apply to the estate, personal representative, or beneficiary to
whom this Grant may be transferred by Will, by the laws of descent and
distribution, or by a qualified domestic relations order pursuant to the Code or
Title I of the Employment Retirement Income Security Act of 1974, as amended,
modified or supplemented from time to time ("ERISA"), it shall be deemed to
include such person.

         5. PHYSICAL POSSESSION OF SHARES; RESTRICTIONS ON TRANSFER. (a) Each
certificate of Shares shall be registered in the name of the Employee but shall
be held by the Company until the Employee is entitled to physical possession of
the Shares pursuant to the terms of this Agreement. Until the Employee has
received physical possession of the Shares, the Employee may not give, grant,
sell, exchange, transfer legal title, pledge, assign or otherwise encumber or
dispose of any unvested Shares granted pursuant to the Plan or any interest
therein or this Agreement, otherwise than by Will, the laws of descent and
distribution, or by a qualified domestic relations order pursuant to the Code or
Title I of ERISA.

         (b) No assignment or transfer of any unvested Shares, or of the rights
represented thereby or this Agreement, whether voluntary or involuntary, by
operation of law or otherwise (except by Will, the laws of descent and
distribution, or a qualified domestic relations order pursuant to the Code or
Title I of ERISA), shall vest in the assignee or transferee any interest or
right herein whatsoever. Further, immediately upon any attempt to assign or
transfer any unvested Shares granted pursuant to this Agreement, the Grant shall
immediately terminate and be of no further force or effect (except by Will, the
laws of descent and distribution, or a qualified domestic relations order
pursuant to the Code or Title I or ERISA).

         6. POWERS. The existence of this Grant shall not affect in any way the
right or power of the Company or its stockholders to make or authorize any or
all adjustments, recapitalization, reorganizations or other changes in the
Company's capital structure or its business, or any merger or consolidation of
the Company, or any issue of bonds, debentures, preferred or prior preference
stocks ahead of or affecting the Common Stock or the rights thereof, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any
part of its assets or business, or any other corporate act or proceeding,
whether of a similar character or otherwise.

         7. CHANGE OF CONTROL. Except as set forth in Paragraph 3 hereof,
notwithstanding anything in this Agreement to the contrary, all Shares which
have not vested as of the date of a Change of Control (as defined below) occurs,
shall immediately vest upon a Change of Control and be delivered to the Employee
pursuant to the delivery provisions of this Agreement. For purposes of this
Agreement, a Change of Control shall be defined as:

         (1)      any person (including as such term is used in Section 13(d)
                  and 14(d)(2) of the Securities Exchange Act of 1934, as
                  amended) who becomes the beneficial owner, directly or
                  indirectly, of securities representing 20% or more of the
                  combined voting power of the Company's then outstanding
                  securities; or

         (2)      as a result of a proxy contest or contests or other forms of
                  contested shareholder votes (in each case either individually
                  or in the aggregate), a majority of the individuals elected to
                  serve on the Company's Board of Directors are different than
                  the individuals who served on the Company's Board of Directors
                  at any time within the two years prior to such proxy contest
                  or contests or other forms of contested shareholder votes (in
                  each case either individually or in the aggregate); or

         (3)      when the Company's shareholders approve a merger, or
                  consolidation (where in each case the Company is not the
                  survivor thereof), or sale or disposition of all or
                  substantially all of the Company's assets or a plan or partial
                  or complete liquidation; or

         (4)      when an offerer (other than the Company) purchases shares of
                  the Company's Common Stock pursuant to a tender or exchange
                  offer for securities representing 20% or more of the combined
                  voting power of the Company's then outstanding securities.

                                                                               2
<PAGE>

         8. ISSUANCE OF SHARES; POWER OF ATTORNEY. (a) Within sixty (60) days of
the date of this Agreement, the Company shall cause its transfer agent to issue
in the Employee's name a certificate evidencing the Shares granted pursuant to
this Agreement. Furthermore, in the event that the actual number of shares of
Common Stock earned by Employee, as provided in paragraph 1 of this Agreement,
are less than the number of Initial Shares, the Company shall be authorized to
and shall instruct the transfer agent to cancel such share certificate
evidencing the Initial Shares and reissue to the Company on behalf of and in the
name of the Employee a certificate representing the number of shares of Common
Stock earned in accordance with paragraph 1 of the Agreement. In the event that
the actual number of shares of Common Stock earned by the Employee pursuant to
paragraph 1 of this Agreement is greater than the Initial Shares, then the
Company shall instruct the Transfer Agent by May __, 200_ [ONE YEAR AFTER GRANT
YEAR] to issue on behalf of and in the Employee's name a certificate evidencing
such additional shares of Common Stock. The certificate representing unvested
Shares shall be retained by the Company and shall bear a legend stating that
such Shares are subject to the provisions of this Agreement. The Company may
place a "stop transfer" order with respect to all unvested Shares with its
transfer agent.

         (b) In the event that 200_ [ONE YEAR AFTER GRANT YEAR] Additional
Shares are earned by the Employee pursuant to Paragraph 1 of this Agreement,
then the Company shall instruct the Transfer Agent by May _, 200_ [TWO YEARS
AFTER GRANT YEAR] to issue on behalf of and in the Employee's name a certificate
evidencing such additional shares of Common Stock. The certificate representing
unvested Shares shall be retained by the Company and shall bear a legend stating
that such Shares are subject to the provisions of this Agreement.

         (c) In the event that 200_ [TWO YEARS AFTER GRANT YEAR] Additional
Shares are earned by the Employee pursuant to Paragraph 1 of this Agreement,
then the Company shall instruct the Transfer Agent by May _, 200_ [THREE YEARS
AFTER GRANT YEAR] to issue on behalf of and in the Employee's name a certificate
evidencing such additional shares of Common Stock.

         (d) Within thirty (30) days of each vesting date as set forth in
Section 2 hereof, after giving effect to any adjustments to the Initial Shares
required as provided in paragraphs 1 and 8(a) of this Agreement, the Company
shall cause its transfer agent to issue to the Employee, upon the Company's
surrender of the appropriate certificate representing unvested Shares, a new
certificate representing the Shares vested during the plan year. The transfer
agent shall thereupon re-issue on behalf of and in the Employee's name a
certificate representing the remaining unvested Shares still subject to the
terms of this Agreement, which certificate shall be retained by the Company.

         (e) The Company shall have the right to deduct from any vested shares a
number of shares sufficient to cover the withholding of any federal, state or
local or other governmental taxes or charges required by law or such greater
amount of withholding as permitted by applicable law, rules or regulations, or
to take such other action as may be necessary to satisfy any such withholding
obligations.

         (f) The Employee hereby constitutes and appoints the Company as his
true and lawful attorney-in-fact and agent, with full power of substitution and
resubstitution for him in his name, place and stead, in any and all capacities
to take all actions and to execute all instruments necessary and proper to carry
out the issuance and cancellation of the Shares hereunder.

         (g) The Employee represents and warrants that he will take all actions
necessary, as directed by the Company, to cancel the certificate representing
any or all unvested Shares upon termination of his employment.

         9. CHANGES IN LAW. Notwithstanding anything in this Agreement to the
contrary, if at any time any law or regulations of any governmental authority
having jurisdiction in the premises shall require either the Company or the
Employee to take any action in connection with the Shares then to be issued, the
issue of such Shares shall be deferred until such action shall have been taken.

         10. DISPUTE. Any dispute or disagreement which shall arise under, as a
result of, or pursuant to, this Agreement shall be finally determined by the
Company's Compensation and Organization Committee of the Board of Directors in
its absolute and uncontrolled discretion, and any such determination or any
other determination by the Company's Compensation and Organization Committee of
the Board of Directors under or pursuant to this Agreement, and any
interpretation by the Company's Compensation and Organization Committee of the
Board of Directors of the terms of this Agreement, shall be final, binding and
conclusive on all persons affected thereby.

         11. SECURITIES LAW RESTRICTIONS. The Employee represents and warrants
that he or she is acquiring the Shares for investment, for his or her own
account and not with a view to the distribution thereof, and that the Employee
has no present intention of disposing of the Shares or any interest therein or
sharing ownership thereof with any other person or entity. The Employee shall
not sell, hypothecate or transfer the Shares except pursuant to an effective
registration statement under the Securities Act of 1933, as amended or an
applicable exemption thereto evidenced by an opinion of counsel in form and
substance satisfactory to the Company.

         12. NO EFFECT UPON EMPLOYMENT. This Agreement does not give, nor shall
it be construed as giving, the Employee any right to employment by the Company
or any of its subsidiaries or affiliates.

                                                                               3
<PAGE>

         13. GOVERNING LAW; BINDING EFFECT. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW JERSEY (WITHOUT
REGARD TO THE CONFLICT OF LAW PROVISIONS THEREOF) AND ALL QUESTIONS CONCERNING
THE VALIDITY AND CONSTRUCTION THEREOF SHALL BE GOVERNED IN ACCORDANCE WITH THE
LAWS OF SAID STATE; PROVIDED, HOWEVER, THAT ALL MATTERS OF CORPORATE GOVERNANCE
AND OTHER CORPORATE MATTERS CONCERNING DELAWARE CORPORATIONS SHALL BE GOVERNED
BY THE DELAWARE GENERAL CORPORATION LAW. Except as otherwise expressly provided
herein, this Agreement shall be binding upon and inure to the benefit of the
parties hereto, their legal representatives, successors and assigns.

         14. EFFECT ON COMPENSATION AND DISCRETIONARY NATURE OF GRANT.
Notwithstanding anything in this Agreement to the contrary, none of the Shares,
if any, granted or paid to Employee shall be considered compensation for the
purpose of determining Employee's compensation under any other benefit or
compensation plan of the Company, including, without limitation, any bonus plan,
variable compensation plan, long-term incentive plan, pension plan or other
retirement plans. The Employee acknowledges and agrees that the Plan is
discretionary in nature and may be amended, cancelled, or terminated by the
Company, in its sole discretion, at any time. The grant of restricted stock
under the Plan is a one-time benefit and does not create any contractual or
other right to receive a restricted grant of stock or benefits in lieu of
restricted stock in the future. Future grants of restricted stock, if any, will
be at the sole discretion of the Company, including, but not limited to, the
timing of any grant, the number of shares of restricted stock and the vesting
provisions.

         15. SECTION 83(B) ELECTION. If Employee makes an election with respect
to the receipt of the Shares pursuant to Section 83(b) of the Code (the
"Election"), such Election shall contain all information required by Treasury
Regulation Section 1.83-2 and shall, in accordance with that regulation, be
filed no later than 30 days after the transfer of the Shares to the Employee.
The Election shall be filed with the Internal Revenue Service Center at which
the Employee files his or her income tax return. Contemporaneously with such
filing, the Employee shall furnish a copy of the Election to the Company, in
accordance with Treasury Regulation Section 1.83-2(d).

         16. PLAN DOCUMENT. This Agreement is subject in all respects to the
plan, a copy of which may be obtained from the Company's Corporate Senior Vice
President, Human Resources, 210 Carnegie Center, Princeton, New Jersey 08540. To
the extent that there is any inconsistency or conflict between this Agreement
and the Plan, the Plan shall control.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

                                          COVANCE INC.

                                          ------------------------------
Attest:

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

                                          EMPLOYEE

                                          -----------------------------------
                                          S.S. Number:

                                                                               4
<PAGE>

                                    EXHIBIT A

                   200_ [GRANT YEAR] PERFORMANCE SHARE MATRIX

<TABLE>
<CAPTION>
                                                           BACKLOG GROWTH (1)
                        -----------------------------------------------------------------------------------------
                         < _%       _% TO _%      _% TO _%     _% TO _%      _% TO _%     _% TO _%        > _%
                        -----------------------------------------------------------------------------------------
<S>     <C>             <C>        <C>           <C>          <C>           <C>          <C>           <C>
                                   $_________    $_________   $_________    $_________   $_________    $_________
         --------------------------------------------------------------------------------------------------------
             __% OR LESS    0%          20%          40%           50%          60%           70%          80%
RETURN   --------------------------------------------------------------------------------------------------------
ON           __%           30%          50%          60%           70%          80%           90%          100%
AVERAGE  --------------------------------------------------------------------------------------------------------
ASSETS       __%           50%          70%          80%           90%          100%         110%          120%
(2)      --------------------------------------------------------------------------------------------------------
             __%           60%          80%          90%          100%          110%         120%          140%
         --------------------------------------------------------------------------------------------------------
             __%           70%          90%          100%         110%          120%         150%          170%
         --------------------------------------------------------------------------------------------------------
             __%           90%         100%          120%         130%          150%         170%          190%
         --------------------------------------------------------------------------------------------------------
             __% OR MORE  100%        120%          140%         150%          170%         190%          220%
         --------------------------------------------------------------------------------------------------------
</TABLE>

(1)      BACKLOG: Growth to be calculated off publicly reported 200_ [GRANT
         YEAR] ending backlog. Results to be rounded to the nearest integer with
         no pro-ration between columns. The year-end figure for 200_ [GRANT
         YEAR] will be stated in constant dollars using the year-end 200_ [PRIOR
         YEAR] exchange rates.

(2)      ROA: Rounded to the nearest point on the grid with no pro ration
         between rows. The calculation mechanics will include: (a) The numerator
         will be net operating profit after tax (NOPAT). This will be calculated
         as operating income minus taxes, which will be calculated assuming a
         35% tax rate. (b) Average total assets will be calculated based on a
         12-month rolling basis. (c) Returns exclude the P&L benefit and cost
         associated with any Board approved one-time charges.

         >> Backlog, NOPAT, and Average Assets will be adjusted to exclude any
         divested or acquired businesses.

                                                                               5
<PAGE>

                                    EXHIBIT B

Additional 200_ [ONE YEAR AFTER GRANT YEAR] Shares shall be earned in the
following amounts:

(a)      10% of the Adjusted Shares if 200_ [ONE YEAR AFTER GRANT YEAR] ROA
         exceeds 200_ [GRANT YEAR] ROA by __ basis points or more; and/or

(b)      10% of the Adjusted Shares if 200_ [ONE YEAR AFTER GRANT YEAR] Year-End
         Backlog exceeds 200_ [GRANT YEAR] Year-End Backlog by __% or more;

         PROVIDED, HOWEVER, no Additional 200_ [ONE YEAR AFTER GRANT YEAR]
         Shares shall be earned if 200_ [ONE YEAR AFTER GRANT YEAR] ROA is less
         than 200_ [GRANT YEAR] ROA OR 200_ [ONE YEAR AFTER GRANT YEAR] Year-End
         Backlog is less than 200_ [GRANT YEAR] Year-End Backlog.

Additional 200_ [TWO YEARS AFTER GRANT YEAR] Shares shall be earned in the
following amounts:

(a)      10% of the Adjusted Shares if 200_ [TWO YEARS AFTER GRANT YEAR] ROA
         exceeds 200_ [ONE YEAR AFTER GRANT YEAR] ROA by __ basis points or
         more; and/or

(b)      10% of the Adjusted Shares if 200_ [TWO YEARS AFTER GRANT YEAR]
         Year-End Backlog exceeds 200_ [ONE YEAR AFTER GRANT YEAR] Year-End
         Backlog by __% or more;

         PROVIDED, HOWEVER, no Additional 200_ [TWO YEARS AFTER GRANT YEAR]
         Shares shall be earned if 200_ [GRANT YEAR] ROA is less than 200_ [ONE
         YEAR AFTER GRANT YEAR] ROA OR 200_ [TWO YEARS AFTER GRANT YEAR]
         Year-End Backlog is less than 200_ [ONE YEAR AFTER GRANT YEAR] Year-End
         Backlog.

                                                                               6

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