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Exhibit 10.35    
    

 
 

THE MEDICINES COMPANY    
    

Restricted
Stock Agreement

Granted Under 2007 Equity Inducement Plan 

        THIS
AGREEMENT made as of this    day of                        , 2008, between The Medicines Company, a Delaware
corporation (the "Company") and                                    
(the "Participant").
 

        For
valuable consideration, receipt of which is acknowledged, the parties hereto agree as follows: 

        1.    Issuance of Shares.    The Company shall issue to the Participant, subject to the terms and conditions set forth
in this Agreement and in the Company's 2004 Equity Inducement Plan (the "Plan"),
                                    shares (the "Shares") of common
stock, $0.001 par value, of the Company ("Common Stock"). The Company
shall issue to the Participant four stock certificates in the name of the Participant, each certificate representing 25% of the Shares, and the Company shall deliver the certificates to the Secretary
of the Company, as escrow agent under the Joint Escrow Instructions in the form attached to this Agreement as Exhibit A. The Participant agrees
that the Shares shall be subject to vesting set forth in Section 2 of this Agreement and the restrictions on transfer set forth in Section 3 of this Agreement. 

        2.    Vesting.    

        (a)   The
Shares are subject to vesting in annual increments of 25% per year (the "Vesting Requirements"). 25% of the Shares shall vest
on                                    , 2009 (the "Initial
Vesting Date") as long as the Participant is employed by the Company on such date. The remaining 75% of the Shares shall vest in equal 25% increments on each anniversary of the Initial Vesting Date
(each, a "Subsequent Vesting Date") as long as the Participant is employed by the Company on each such Subsequent Vesting Date. 

        (b)   In
the event that the Participant ceases to be employed by the Company for any reason or no reason, with or without cause, prior
to                                    , 2012, the
Participant shall forfeit all of the Unvested Shares (as defined below) and all such Unvested Shares shall be cancelled by the Company. 

        "Unvested
Shares" means the total number of Shares multiplied by the Applicable Percentage (as defined below) at the time the Participant ceases to be employed by the Company. 

        "Applicable
Percentage" shall be 100% prior to the Initial Vesting Date, and shall be reduced by 25% on the Initial Vesting Date and on each Subsequent Vesting Date. The Applicable
Percentage shall be zero on or
after                                    , 2012. 

        (c)   After
the time at which any Shares are forfeited pursuant to subsection (b) above, the Company shall not pay any dividend to the Participant on account of such
Shares or permit the Participant to exercise any of the privileges or rights of a stockholder with respect to such Shares, but shall, in so far as permitted by law, treat the Company as the owner of
such Shares. 

        (d)   If
the Participant is employed by a parent or subsidiary of the Company, any references in this Agreement to employment with the Company or termination of employment by
or with the Company shall instead be deemed to refer to such parent or subsidiary. 

        3.    Restrictions on Transfer.    The Participant shall not sell, assign, transfer, pledge, hypothecate or otherwise
dispose of, by operation of law or otherwise (collectively "transfer") any Unvested Shares, or any interest therein, except that the Participant may transfer such Shares (i) to or for the
benefit of any spouse, children, parents, uncles, aunts, siblings, grandchildren and any other relatives approved by the Board of Directors (collectively, "Approved Relatives") or to a trust
established solely for the benefit of the Participant and/or Approved Relatives, provided that such Shares shall remain subject to this Agreement
(including without limitation the restrictions on transfer set forth in this Section 3) and such 

 

permitted
transferee shall, as a condition to such transfer, deliver to the Company a written instrument confirming that such transferee shall be bound by all of the terms and conditions of this
Agreement or (ii) as part of the sale of all or substantially all of the shares of capital stock of the Company (including pursuant to a merger or consolidation),  provided that, in accordance with
the Plan, the securities or other property received by the Participant in connection with such transaction shall
remain subject to this Agreement. 

        4.    Escrow.    

        The
Participant and the Company shall, upon the execution of this Agreement, execute Joint Escrow Instructions in the form attached to this Agreement as  Exhibit A. The Joint Escrow Instructions shall
be delivered to the Secretary of the Company, as escrow agent thereunder. The Participant hereby
instructs the Company to deliver to such escrow agent, the certificate(s) evidencing the Shares issued hereunder. Such materials shall be held by such escrow agent pursuant to the terms of such Joint
Escrow Instructions. 

        5.    Restrictive Legends.    

        All
certificates representing Shares shall have affixed thereto a legend in substantially the following form, in addition to any other legends that may be required under federal or state
securities laws: 

"The
shares of stock represented by this certificate are subject to forfeiture and restrictions on transfer set forth in a certain Restricted Stock Agreement between the corporation and the registered
owner of these shares (or his predecessor in interest), and such Agreement is available for inspection without charge at the office of the Secretary of the corporation." 

        6.    Provisions of the Plan.    

        (a)   This
Agreement is subject to the provisions of the Plan, a copy of which is furnished to the Participant with this Agreement. 

        (b)   As
provided in the Plan, upon the occurrence of a Reorganization Event (as defined in the Plan), the rights of the Company hereunder shall inure to the benefit of the
Company's successor and shall apply to the cash, securities or other property which the Shares were converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the
same extent as they applied to the Shares under this Agreement. If, in connection with a Reorganization Event, a portion of the cash, securities and/or other property received upon the conversion or
exchange of the Shares is to be placed
into escrow to secure indemnification or other obligations, the mix between the vested and unvested portion of such cash, securities and/or other property that is placed into escrow shall be the same
as the mix between the vested and unvested portion of such cash, securities and/or other property that is not subject to escrow. 

        7.    Withholding Taxes; Section 83(b) Election.    

        (a)   The
Participant acknowledges and agrees that the Company has the right to deduct from payments of any kind otherwise due to the Participant any federal, state or local
taxes of any kind required by law to be withheld with respect to the issuance of the Shares to the Participant or the lapse of the Vesting Requirements. 

        (b)   The
Participant has reviewed with the Participant's own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions
contemplated by this Agreement. The Participant is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. The Participant understands that
the Participant (and not the Company) shall be responsible for the Participant's own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement. The
Participant understands that it may be beneficial in many circumstances to elect to be taxed at the 

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time
the Shares are issued rather than when and as the Vesting Requirements expire by filing an election under Section 83(b) of the Internal Revenue Code of 1986 with the I.R.S. within
30 days from the date of issuance. 

        THE
PARTICIPANT ACKNOWLEDGES THAT IT IS SOLELY THE PARTICIPANT'S RESPONSIBILITY AND NOT THE COMPANY'S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF THE PARTICIPANT
REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE PARTICIPANT'S BEHALF. 

        8.    Miscellaneous.    

        (a)   No Rights to Employment.    The Participant acknowledges and agrees that the vesting of the Shares pursuant to
Section 2 hereof is earned only by continuing service as an employee at the will of the Company (not through the act of being hired or purchasing Shares hereunder). The Participant further
acknowledges and agrees that the transactions contemplated hereunder and the Vesting Requirements set forth herein do not constitute an express or implied promise of continued engagement as an
employee or consultant for the vesting period, for any period, or at all. 

        (b)   Severability.    The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law. 

        (c)   Waiver.    Any provision for the benefit of the Company contained in this Agreement may be waived, either
generally or in any particular instance, by the Board of Directors of the Company. 

        (d)   Binding Effect.    This Agreement shall be binding upon and inure to the benefit of the Company and the
Participant and their respective heirs, executors, administrators, legal representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 3 of this
Agreement. 

        (e)   Notice.    All notices required or permitted hereunder shall be in writing and deemed effectively given upon
personal delivery, facsimile delivery or delivery by overnight courier, addressed to the other party hereto at the address shown beneath his or its respective signature to this Agreement, or at such
other address or addresses as either party shall designate to the other in accordance with this Section 8 (e). 

        (f)    Pronouns.    Whenever the context may require, any pronouns used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural, and vice versa. 

        (g)   Entire Agreement.    This Agreement and the Plan constitute the entire agreement between the parties, and
supersedes all prior agreements and understandings, relating to the subject matter of this Agreement. 

        (h)   Amendment.    This Agreement may be amended or modified only by a written instrument executed by both the
Company and the Participant. 

        (i)    Governing Law.    This Agreement shall be construed, interpreted and enforced in accordance with the internal
laws of the State of Delaware without regard to any applicable conflicts of laws. 

        (j)    Participant's Acknowledgments.    The Participant acknowledges that he or she: (i) has read this
Agreement; (ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Participant's own choice or has voluntarily declined to seek such
counsel; (iii) understands the terms and consequences of this Agreement; (iv) is fully aware of the 

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legal
and binding effect of this Agreement; and (v) understands that the law firm of WilmerHale, is acting as counsel to the Company in connection with the transactions contemplated by the
Agreement, and is not acting as counsel for the Participant. 

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

	 	THE MEDICINES COMPANY
	 	 	 
	

 	

By:	

	 	Name:	Glenn P. Sblendorio
	 	Title:	Executive Vice President and

Chief Financial Officer

	 

	

 	
PARTICIPANT
	

 	

 	

 
	 	 	 
	 	
Name
	 	 	 
	 	Address:	 

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QuickLinks

Exhibit 10.35

THE MEDICINES COMPANYExhibit 10.35

 

 

 

COVANCE INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

(As
Amended and Restated Effective January 1, 2009)

 

 

 

 

 

 

 

 

COVANCE INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

(As Amended and Restated Effective January 1,
2009)

 

ARTICLE
I

 

INTRODUCTION

 

In
recognition of the services provided to Covance Inc. (the “Company”) by certain
of its key executives, the Board of Directors of the Company previously adopted
the Covance Inc. Supplemental Executive Retirement Plan (the “Plan”), for the
purpose of providing supplemental retirement income for such key
executives.  Pursuant to the power
reserved to it under Article VIII of the Plan, the Committee hereby amends
and restates the Plan effective January 1, 2009. This amendment and
restatement is intended to comply with Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), and is to be construed in
accordance with Section 409A of the Code and the regulations thereunder.

 

With respect to Participants who terminated employment
on or before December 31, 2004, all benefits earned and vested under the
Plan as of December 31, 2004 shall be “grandfathered” and shall continue
to be administered under the terms of the Plan as they existed on such
date.  These  participants shall be permitted to make an
election by December 31, 2008, as to the timing of payment of the
non-grandfathered portion of their Accrued Benefit.

 

Participants who terminated employment on or before December 31,
2007 but after December 31, 2004, will be permitted to make an election by
December 31, 2008, as to the form and timing of payment of their Accrued
Benefit.

 

The Plan is intended to be a “top-hat” plan within the
meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
and, therefore, not subject to Parts 2, 3, or 4 of Title I, Subtitle B of
ERISA.

 

ARTICLE
II

 

DEFINITIONS

 

As used herein, the following words and phrases shall
have the meanings described below:

 

2.1.                            “Accrued Benefit” shall mean the
amount of pension benefit payable as a single life annuity as shall be
considered earned at any time by a Participant in accordance with the
provisions of Article IV.

 

2.2.                            “Actuarial Equivalent” shall mean
the equivalent actuarial value of the Accrued Benefit payable to a Participant
under Article IV, determined based upon (i) the annual rate of
interest on 30-year Treasury securities for November of the calendar year
prior to the year in which distributions begin (or, if applicable, the
substitute rate published by the Internal Revenue Service for purposes of
determinations under Section 417(e) of the Code), and (ii) the
mortality table prescribed by the Secretary of the Treasury from time to time
pursuant to section 417(e)(3)(A)(ii)(I) of the Code.  Application of such assumptions to the computation
of benefits payable under the Plan shall be made uniformly and consistently
with respect to all Participants under the Plan.

 

 

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2.3.                            “Board” shall mean the Board of
Directors of the Company.

 

2.4.                            “Change In Control” shall mean:

 

2.4.1.                  any person, or more than one person
acting as a group within the meaning of Code Section 409A and the
regulations issued thereunder, acquires ownership of stock of the Company that,
together with stock held by such person or group, constitutes more than 50
percent of the total fair market value or total voting power of the stock of
the Company;

 

2.4.2.                  any person, or more than one person
acting as a group within the meaning of Code Section 409A and the
regulations issued thereunder, acquires (or has acquired during the 12-month
period ending on the date of the most recent acquisition) ownership of stock of
the Company possessing 30 percent or more of the total voting power of the
Company’s stock;

 

2.4.3.                  a majority of the members of the Board is
replaced during any 12-month period by directors whose appointment or election
is not endorsed by a majority of the members of the Board before the date of
the appointment or election; or

 

2.4.4.                  a person, or more than one person acting
as a group within the meaning of Code Section 409A and the regulations
issued thereunder, acquires (or has acquired during the 12-month period ending
on the date of the most recent acquisition) assets from the Company that have a
total gross fair market value equal to or more than 40 percent of the total
gross fair market value of all the assets of the Company immediately before
such acquisition or acquisitions.

 

2.5.                            “Claimant” shall mean any person,
including a Participant, making a claim for benefits under Article X of
the Plan.  In the case of a Claimant
other than the Participant, such person must be making a claim under or through
a Participant.

 

2.6.                            “Code” shall mean the Internal
Revenue Code of 1986, as amended from time to time.

 

2.7.                            “Committee” shall mean the
Benefits Administration Committee appointed from time to time by the
Compensation and Organization Committee of the Board.

 

2.8.                            “Company” shall mean Covance Inc.,
a Delaware corporation and any successor thereto.

 

2.9.                            “Constructive Termination” shall
mean a Separation from Service by the Participant because of:

 

2.9.1.                  a material breach by the Company of its
obligations under this Plan, including, without limitation, a reduction in a
Participant’s current salary or the percentage of base salary eligible for
incentive compensation;

 

2.9.2.                  a diminution of a Participant’s
responsibilities, status, title or duties; or

 

2.9.3.                  a relocation of a Participant’s work
place which increases the distance between his principal residence and his work
place by more than 25 miles.

 

provided, however, that a Constructive Termination will
only occur upon (1) written notice by the Participant to the Company of
the existence of one or more of the conditions listed above and the Participant’s
intent to terminate employment with the Company, within 30 days of the
commencement of such condition; and (2) the Company’s failure to cure such
condition within 30 days of the Company’s receipt of such notice.  Such written 

 

2

 

notice by the Participant shall specify the particular act or acts, or
failure to act, which is or are the basis for the Participant’s Constructive
Termination.

 

2.10.                     “Disability” or “Disabled”
shall mean the Participant is either (i) unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, or (ii) by
reason of any medically determinable physical or mental impairment which can be
expected to last for a continuous period of not less than 12 months, receiving
income replacement benefits for a period of not less than three (3) months
under an accident and health plan maintained by the Company.

 

2.11.                     “Final Average Earnings” shall
mean the average of the sum of the Participant’s monthly Plan Compensation
during the sixty (60) consecutive calendar months (or the total number of
months if less than sixty) within the one hundred twenty (120) months (or the
total number of months if less than 120) immediately preceding the Participant’s
Separation from Service, in which his Plan Compensation was the highest.  With respect to the calculation of a
Participant’s Accrued Benefit following a Change In Control, Final Average
Earnings shall mean the average of the sum of the Participant’s monthly Plan
Compensation during the sixty (60) consecutive calendar months (or the total
number of months if less than sixty) within the one hundred twenty (120) months
(or the total number of months if less than 120) immediately preceding the
Change in Control.

 

2.12.                     “Participant” shall mean an
individual who has been designated as a Participant in this Plan under Section 3.1.  In the event of the death or incompetency of
a Participant, the term shall mean his personal representative or guardian.

 

2.13.                     “Plan” shall mean the Covance Inc.
Supplemental Executive Retirement Plan set forth in this document and as
amended from time to time.

 

2.14.                     “Plan Compensation” shall mean the
base salary paid to a Participant by the Company (including salary reductions
which are deferred under section 401(k), 125 or 132(f)(4) of the Code or
pursuant to a non-qualified deferred compensation plan sponsored or maintained
by the Company), plus annual bonuses.

 

2.15.                     “Plan Year” shall mean the
calendar year.

 

2.16.       “Separation
from Service” shall mean a Participant’s termination of employment with the
Company and any other entity included with the Company in a controlled group of
corporations, which meets the requirements of Code Section 409A and the
regulations promulgated thereunder.

 

2.17.                     “Year of Participation” shall mean
each full and partial 12 consecutive month period of employment with the
Company or any of its subsidiaries completed by a Participant from and after
the date such individual becomes a Participant. 
A Participant shall receive partial credit for a Year of Participation
for each period of employment that is less than a full 12 months.  In the case of an individual who became a
Participant on or before January 1, 1997, a “Year of Participation” shall
also include each period of service with the Company or any of its subsidiaries
or Corning Incorporated or any of its subsidiaries or affiliates in each case
on or prior to January 1, 1997, to the extent such service was included
under the terms of the supplemental retirement plans sponsored or maintained by
the Company, its subsidiaries, Corning Incorporated or any of its subsidiaries
or affiliates, as applicable.

 

 

3

 

ARTICLE
III

 

PARTICIPATION

 

3.1.                            Eligibility to Participate. 
Any employee of the Company and its subsidiaries designated by the
Committee shall be eligible to participate in this Plan.  The Committee may delegate the authority to
designate eligible employees to the Company’s Chief Executive Officer.  Plan Participants shall be limited to a
select group of management and highly compensated employees of the Company and
its subsidiaries.

 

3.2.                            Commencement of Participation. 
Each individual who has been designated pursuant to Section 3.1
shall commence participation in the Plan upon designation by the Committee or
its delegate.

 

ARTICLE
IV

 

AMOUNT
OF PENSION BENEFITS

 

4.1.                            Retirement Benefit.

 

4.1.1.                  Normal Retirement.

 

4.1.1.1.  A
Participant who has a Separation from Service on or after the completion of
20 Years of Participation shall have an Accrued Benefit equal to 40% of
his Final Average Earnings. 
Notwithstanding the foregoing, an individual who commenced participation
in the Plan on January 1, 1997 will be entitled to an Accrued Benefit
equal to 40% of his Final Average Earnings upon Separation from Service on or
after completion of 15 Years of Participation.

 

4.1.1.2.  A
vested Participant who has a Separation from Service prior to the completion of
20 Years of Participation (or 15 Years of Participation, if applicable)
shall have his Accrued Benefit reduced by multiplying the Accrued Benefit by a
fraction, the numerator of which is the Participant’s actual Years of
Participation and the denominator of which is 20 (or 15 Years of Participation,
if applicable).

 

4.1.1.3.  A
Participant’s Accrued Benefit determined under this Section shall be
adjusted in accordance with Section 4.1.2 or Section 4.1.3 if his
Accrued Benefit becomes payable at other than his attainment of age 60.

 

4.1.2.                  Early Retirement.  A
vested Participant whose Accrued Benefit becomes payable on or after age 55 but
prior to age 60 shall receive an early retirement benefit.  The Accrued Benefit of a Participant who is
eligible for an early retirement benefit shall be (i) subject to reduction
in accordance with Section 4.1.1.2; and (ii) shall be further reduced
by 5% for each full or partial year payment of benefits occurs prior to the
Participant’s attainment of age 60. 
Reductions under this Section 4.1.2 shall be calculated on a
monthly basis.

 

4.1.3.                  Late Retirement. 
A vested Participant whose Accrued Benefit becomes payable after
age 60 will be entitled to receive an increase in his Accrued Benefit of
5% for each full or partial year benefit payments are delayed beyond
age 60.  Increases under this Section 4.1.3
shall be calculated on a monthly basis. 
A Participant’s Accrued Benefit will not be increased for benefit payments
that commence after age 65.

 

4.2.                            Disability Benefit. 
In the case of a Participant’s Separation from Service due to
Disability, such Participant’s Accrued Benefit will be calculated pursuant to Section 4.1,
without application of Section 4.1.2.

 

 

4

 

4.3.                            Change In Control Benefit. 
If a vested Participant (including vesting pursuant to Section 8.1)
incurs an involuntary Separation from Service or Constructive Termination
during the two-year period following a Change In Control, such Participant will
be entitled to receive a lump sum payment of the Actuarial Equivalent of his
Accrued Benefit.  In addition, such
Participant shall be entitled to receive the Gross Up Payment described in Section 8.2
hereof, if applicable.

 

4.4.                            Crediting of Years of Participation. 
Years of Participation for purposes of determining the amount of a
Participant’s Accrued Benefit and vesting shall be determined in accordance
with Section 2.17 of this Plan. 
Accordingly, each Participant shall, if applicable, receive credit for
each full month of service in determining such Participant’s Accrued
Benefit.  In addition, a Participant may
be granted, at the discretion of the Committee, credit for Years of
Participation with a previous employer for the purposes of determining his
Accrued Benefit and vesting.  The
Committee shall have the authority to require a reduction or offset of the
Participant’s Accrued Benefit under this Plan by the amount of any retirement
benefits provided to the Participant under the plan or plans of the previous
employer for which prior service credit is given.  The Committee shall credit such service and
provide for such reduction or offset, if any, in writing at the time of the
Participant’s commencement of participation in the Plan.

 

4.5.                            Currency.  A Participant’s
Accrued Benefit shall be paid in the currency which was used to define his
compensation in such Participant’s letter of employment or any amendments
thereto, if a different currency is denominated.

 

ARTICLE
V

 

VESTING

 

5.1.                            Vesting of Benefits. 
A Participant shall become 100% vested in his Accrued Benefit upon being
credited with five Years of Participation. 
In addition, a Participant shall become 100% vested in his Accrued
Benefit upon the earlier of the following occurrences, provided he is still
employed by the Company or its subsidiaries at such time: (i) his
Disability; (ii) his death; or (iii) his attainment of the normal
retirement age in accordance with applicable law or policies of such Participant’s
country of employment at the time of the applicable event. Except as otherwise
provided herein, a Participant whose employment with the Company and all of its
subsidiaries terminates prior to the completion of five Years of Participation
shall forfeit his entire Accrued Benefit.

 

5.2.                            Special Vesting Rules. 
For purposes of vesting of Accrued Benefit under Section 5.1 (but
not for purpose of determining amount of Accrued Benefit), any Participant
holding the offices of President or Chief Executive Officer shall be credited
with two additional Years of Participation in the event such Participant is
involuntarily terminated for reasons other than Cause; provided that no
Participant who has received credit for additional Years of Participation pursuant
to 8.1 hereunder shall receive credit for additional Years of Participation
under this Article V.  For purposes
of this Section 5.2, “Cause” shall mean: (i) a Participant’s
convictions of a felony or a misdemeanor if such misdemeanor involves moral
turpitude, (ii) a Participant’s commission of any act of gross negligence
or intentional misconduct in the performance or non-performance of his duties
as an employee of the Company or its affiliates, including, any actions which
constitute sexual harassment under applicable laws, rules or regulations, (iii) a
Participant’s failure to perform his duties assigned for a period of thirty
(30) or more days unless such failure is caused by an Disability, or (iv) a
Participant’s misappropriation of assets, personal dishonesty or intentional
misrepresentation of facts which may cause the Company or its affiliates
financial or reputational harm.

 

 

 

5

 

ARTICLE
VI

 

DEATH
PRIOR TO RETIREMENT

 

6.1.                            Pre-Termination Death Benefits for
Married Participants.  In the event of the death of a vested married
Participant while employed by the Company, his surviving spouse shall be
entitled to receive an amount in the form of a lump sum payment which shall be
fifty percent (50%) of the Actuarial Equivalent of such Participant’s Accrued
Benefit, calculated pursuant to Section 4.1, and adjusted in accordance
with Sections 4.1.2 or 4.1.3, if applicable. 
Such payment will commence as soon as administratively feasible
following the Participant’s death.

 

6.2.                            Pre-Termination Death Benefit for
Participants with Surviving Children. In the event of the death of a vested Participant
while employed by the Company, who is survived by one or more children, but not
a spouse, his surviving children shall be entitled to receive an amount in the
form of a lump sum payment which shall be fifty percent (50%) of the Actuarial
Equivalent of such Participant’s Accrued Benefit, calculated under Section 4.1,
and adjusted in accordance with Sections 4.1.2 or 4.1.3, if applicable.  The benefit described in the preceding
sentence shall be divided equally among the Participant’s surviving children.
Such payment will commence as soon as administratively feasible following the
Participant’s death.

 

6.3.                            Post-Termination Death Benefit

 

6.3.1.                  Death Benefit for Disabled Participants. 
In the event of the death of a Participant who incurred a Separation
from Service due to Disability but who has not yet received his Accrued Benefit
pursuant to Section 7.2, his surviving spouse, if any, shall be entitled
to receive an amount in the form of a lump sum payment which shall be fifty
percent (50%) of the Actuarial Equivalent of such Participant’s Accrued Benefit
under Section 4.1, without application of Section 4.1.2.  Such payment will commence as soon as
administratively feasible following the Participant’s death.

 

6.3.2.                  Death Benefit for Deferred Vested
Participants.  In the event of the death of a vested
Participant who has incurred a Separation from Service and who has attained age
55, his surviving spouse, if any, shall be entitled to receive a lump sum
payment equal to 100% of the Actuarial Equivalent of the Participant’s Accrued
Benefit.

 

6.4.                            No Other Death Benefits. 
Except as provided in Sections 6.1, 6.2, and 6.3, no other death
benefits shall be payable under this Plan in the event of the death of a
Participant.

 

ARTICLE
VII

 

TIMING
AND FORM OF BENEFIT

 

7.1.                            Retirement.

 

7.1.1.                  Participants Terminating Prior to 2005. 
With respect to a Participant who Separated from Service on or before December 31,
2004, all benefits earned and vested as of December 31, 2004 will be paid
under the terms of the Plan in effect on such date.  Notwithstanding anything else in the Plan to
the contrary, the portion of such Participant’s Accrued Benefit, if any, which
is subject to Code Section 409A and the regulations promulgated
thereunder, shall be paid in a lump sum after 2008 and upon attainment of a
certain age, as selected by the Participant on a form provided by the Company
by December 31, 2008.  If such
Participant fails to make an election by December 31, 2008, the
Participant shall receive such benefit upon attainment of age 60.  

 

6

 

If a Participant subject to this Section 7.1.1 is
age 60 or older as of December 31, 2008, and fails to make an election by December 31,
2008, such benefit will be paid on January 1, 2009.

 

7.1.2.                  Participants Terminating After 2004 and
Before 2008.  A Participant who Separated from Service
after December 31, 2004 and before January 1, 2008 will be permitted
to make an election by December 31, 2008, on a form provided by the
Company, as to the form and timing of their benefit as provided in this Section 7.1.2.  A subsequent election will be permitted only
if (a) the subsequent election will not take effect until at least
12 months after the date on which it is made; (b) the payment with respect
to which the subsequent election is made is deferred for at least five years
from the date such payment would otherwise have been made (or commence); and (c) the
election is made at least 12 months before the date the payment is scheduled to
be paid (or commence).  If a Participant subject to this Section 7.1.2
fails to make an election by December 31, 2008, such Participant shall
receive his Accrued Benefit in a lump sum upon attainment of age 60.  If such Participant is age 60 or older as of December 31,
2008, and fails to make an election by December 31, 2008, his Accrued
Benefit will be paid on January 1, 2009.

 

7.1.2.1.  Form of
Benefit.  A Participant’s Accrued
Benefit shall be distributed in one of the following forms, as selected by the
Participant in accordance with this Section 7.1.2:

 

7.1.2.1.1.              Lump Sum.

 

7.1.2.1.2.              Single life annuity payable monthly,
quarterly or annually.

 

7.1.2.1.3.              Joint and 50% or 100% survivor annuity
payable monthly, quarterly or annually.

 

7.1.2.2.  Timing.  A Participant’s Accrued Benefit shall be
distributed or begin to be distributed on a specified date beginning on or
after January 1, 2009, as selected by the Participant in accordance with
this Section 7.1.2.

 

7.1.3.                  Normal Form and Timing of Retirement
Benefit.  Except as otherwise provided in Section 7.1.1
and 7.1.2, all Participants shall receive their Accrued Benefit in the form of
a lump sum on the later of such Participant’s attainment of age 55 or
Separation from Service, but in no event shall distribution be made earlier
than the day that is six months from such date or event.

 

7.2.                            Disability.  A Participant
who incurs a Separation from Service due to a Disability shall receive his
Accrued Benefit under the Plan in the form of a lump sum on the later of the
Participant’s Separation from Service or attainment of age 65.

 

7.3.                            Change In Control. 
In accordance with Article VIII, in the event of a Participant’s
involuntary Separation from Service or Constructive Termination within two
years of a Change In Control, the Participant’s Accrued Benefit shall be
distributed in the form of a lump sum as soon as administratively feasible, but
in no event shall distribution be made earlier than the day that is six months
from the date of such Participant’s involuntary Separation from Service or
Constructive Termination.

 

7.4.                            Accelerated Distributions. 
Notwithstanding any other provision of the Plan to the contrary, in the
sole discretion of the Committee, an accelerated distribution may be made, but
only to the extent, and under the circumstances, permitted under Code Section 409A
and the regulations promulgated thereunder. 
In the event of an accelerated distribution under this Section 7.4,
a Participant’s Accrued Benefit under the Plan will be reduced proportionately
to reflect such accelerated distribution.

 

7

 

7.5          Certain
Permitted Delays.  Notwithstanding
any other provision of the Plan to the contrary, in the sole discretion of the
Committee, amounts payable hereunder may be delayed after the date(s) specified
under this Article VII under the circumstances permitted under Section 409A of
the Code.

 

ARTICLE
VIII

 

CHANGE
IN CONTROL

 

8.1.         Change
In Control.  In the event of a Change
In Control:

 

8.1.1.      Each
Participant in this Plan as of the date of a Change In Control who is
involuntarily terminated or experiences a Constructive Termination during the
two year period following the Change In Control shall be credited with three
additional full Years of Participation and three additional years of age for
Accrued Benefit and vesting determination purposes; provided, however,
that such additional credit for these Participants shall be reduced by the
period of service and increase in age the Participant has completed and
experienced between the Change In Control and actual termination of employment.

 

8.1.2.      In
the event this Plan is terminated at any time following a Change In Control,
each Participant shall be credited with three additional full Years of
Participation and three additional years of age for Accrued Benefit and vesting
determination purposes; provided, however, that this Section 8.1.2
shall not apply to any Participant who has received additional Years of
Participation and years of age pursuant to Section 8.1.1 above.

 

8.2.         Gross-Up
Payment.  Anything in this Plan to
the contrary notwithstanding, in the event it shall be determined that any
payment or distribution under this Plan, to or for the benefit of a Participant
subsequent to a Change In Control (the “Payments”), would be subject to the
excise tax imposed by section 4999 of the Code (the “Excise Tax”), then the
Participant shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by such Participant (or the
Company) of all taxes (including the Excise Tax) imposed upon the Gross-Up
Payment, the Participant retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments.

 

8.2.1.      All
determinations as to whether a Gross-Up Payment is required and the amount of
such Gross-Up Payment, shall be made by the accounting firm utilized by the
Company for the preparation of its annual external financial statements (the “Accounting
Firm”) which shall provide detailed supporting calculations both to the Company
and the Participant within 30 days of termination of the Participant’s employment,
if applicable, or such earlier time as is requested by the Company.  The Gross-Up Payment, if any, as determined
pursuant to this Section 8.2, shall be paid to the Participant within 10
days of the receipt of the Accounting Firm’s determination.  Any determination by the Accounting Firm
shall be binding upon the Company and the Participant.  If subsequent final determinations of the
Excise Tax made by the Internal Revenue Service (“IRS”) give rise to additional
Excise Tax, then additional Gross-Up Payments shall be made by the Company to
the Participant within 10 days after the notice is received by the Company of
such final determination. All Gross-Up Payments made to the Participant under
this Section 8.2 shall be made no later than the end of the year following
the year during which the Participant or the Company paid the related taxes.

 

8.2.2.      Participants
shall notify the Company in writing of any claim by the IRS that, if
successful, would require the payment by the Company of a Gross-Up Payment.  Such notification shall be given as soon as
practicable but no later than 10 business days after a Participant learns of
such claim.  A Participant shall not pay
such claim prior to the expiration of the thirty-day period following the date
on which Participant gives such notice to the Company (or such shorter period
ending on the date that any payment of 

 

8

 

taxes with respect to such claim is due).  If the Company notifies a Participant in
writing prior to the expiration of such period that it desires to contest such
claim, the Participant shall:

 

8.2.2.1.  give
the Company any information reasonably requested by the Company relating to
such claim,

 

8.2.2.2.  take
such action in connection with contesting such claims as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
selected by the Company,

 

8.2.2.3. 
cooperate with the Company in good faith in order to effectively contest
such claim, and

 

8.2.2.4.  permit
the Company to participate in any proceedings relating to such claim;

 

provided, however, that, during the Participant’s
lifetime, the Company shall bear all costs and expenses incurred in connection
with such contest and shall indemnify and hold the Participant harmless, on an
after-tax basis, for any Excise Tax or income tax imposed as a result of such
contest or representation and payment of costs and expenses.  The Company shall control all proceedings
taken in connection with such contest. 
The Company may, at its sole option, either direct the Participant to
pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and the Participant shall prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs a
Participant to pay such claim and sue for a refund, the Company shall advance
the amount of such payment to such Participant on an interest-free basis and
shall indemnify and hold such Participant harmless, on an after-tax basis, from
any Excise Tax or income tax imposed with respect to such advance.  All reimbursements of costs and expenses paid
to the Participant by the Company under this Section 8.2 shall be made as
soon as practicable after such cost or expense is incurred, but in no event
later than the end of the calendar year following the calendar year during
which such cost or expense is incurred.

 

8.2.3.      If,
after the receipt by a Participant of an amount advanced by the Company
pursuant to Section 8.2, such Participant shall become entitled to receive
any refund with respect to such claim, such Participant shall promptly pay to
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto).  If, after the receipt by a Participant of an
amount advanced by the Company pursuant to Section 8.2, a final
determination is made that such Participant shall not be entitled to any refund
with respect to such claim, then such advance shall be forgiven and shall not
be required to be repaid and the amount of such advance shall offset the amount
of Gross-Up Payment required to be paid.

 

ARTICLE
IX

 

                AMENDMENTS AND TERMINATION

 

9.1.         Amendments
Generally.  The Committee shall have
the right to make any amendment or amendments to this Plan from time to time
which do not cause any reduction in a Participant’s Accrued Benefit at the time
the amendment is adopted or the effective date of the amendment, whichever is
earlier.  Any amendment shall be made
pursuant to a duly adopted resolution of the Committee.  Notwithstanding the foregoing, no amendment
may be made following a Change In Control without written approval by a
majority of the Participants covered by the Plan immediately prior to the
Change In Control.

 

 

9

 

9.2.         Right
to Terminate.  The Committee  may terminate the Plan at any time in whole
or in part.  Termination of the Plan
shall be made pursuant to a duly adopted resolution of the Committee.  In the event of termination, benefits will be
paid in accordance with Article VII of the Plan, provided that the Company
may accelerate payments to the extent permitted under Treasury Regulation §
1.409A-3(j)(4)(ix).  No termination of
the Plan shall reduce a Participant’s Accrued Benefit as of the date of
termination.

 

9.3.         Funding
Obligation.  The obligation of the
Company to pay any benefits under the Plan shall be unfunded and unsecured; any
payments under the Plan shall be made from the general assets of the Company; provided,  however, in the event of a Change In
Control, the Company shall purchase for its own account an annuity from a
nationally recognized, credit worthy financial institution of good reputation
for the benefit of the Plan in an amount sufficient to fund all present and
reasonably anticipated future obligations under the Plan.  Notwithstanding the foregoing, the Board, in
its discretion, may authorize the establishment of a rabbi trust or any other
funding vehicle it deems appropriate in order to set aside assets to discharge
its obligations under the Plan.

 

ARTICLE
X

 

ADMINISTRATION
AND INTERPRETATION

 

10.1.       Interpretation.  The Committee may take any action, correct
any defect, supply any omission or reconcile any inconsistency in the Plan, or
in any election hereunder, in the manner and to the extent it shall deem
necessary to carry the Plan into effect or to carry out the Board’s purposes in
adopting the Plan.  Any decision,
interpretation or other action made or taken in good faith by or at the
direction of the Board or the Committee, arising out of or in connection with
the Plan, shall be within the absolute discretion of each of them, as the case
may be, and shall be final, binding and conclusive on the Company, and all
Participants and their respective heirs, executors, administrators, successors
and assigns.  The Committee’s
determinations hereunder need not be uniform, and may be made selectively among
Participants, whether or not they are similarly situated.  Any actions to be taken by the Committee will
require the consent of a majority of the Committee members.  If a member of the Committee is a Participant
in this Plan, such member may not decide or determine any matter or question
concerning his benefits under this Plan that such member would not have the
right to decide or determine if he were not a member.

 

10.2.       Payment
of Expenses.  The Company and its
subsidiaries, in such proportions as the Committee determines, shall bear all
expenses incurred by them and by the Committee in administering this Plan.  If a claim or dispute arises concerning the
rights of a Participant or beneficiary to amounts payable under this Plan,
during the lifetime of such Participant or beneficiary, regardless of the party
by whom such claim or dispute is initiated, the Company shall pay all legal
expenses, including reasonable attorneys’ fees, court costs, and ordinary and
necessary out-of-pocket costs of attorneys, billed to and payable by the
Claimant in connection with the bringing, prosecuting, defending, litigating,
negotiating, or settling of such claim or dispute; provided, that:

 

10.2.1.    The
Claimant obtains a judgment in its favor from a court of competent jurisdiction
from which no appeal may be taken, whether because the time to do so has
expired or otherwise; and provided further, that

 

10.2.2.    In the
case of any claim or dispute initiated by a Claimant, such claim shall be made,
or notice of such dispute given, with specific reference to the provisions of
this Plan, to the Committee within two 

 

10

 

years (three years, in the event of a Change In Control) after the
occurrence of the event giving rise to such claim or dispute.

 

All reimbursements under
this Section 10.2 shall be paid to the Claimant no later than the end of
the year following the year during which such cost or expense is incurred.

 

10.3.       Indemnification
for Liability.  The Company shall
indemnify the members of the Committee, against any and all claims, losses,
damages, expenses and liabilities arising from their responsibilities in
connection with this Plan, unless the same is determined to be due to gross
negligence or willful misconduct.

 

ARTICLE
XI

 

CLAIMS
PROCEDURE

 

The Committee will
administer a claims procedure as follows:

 

11.1.       Initial
Claim.  A Claimant who believes
himself entitled to benefits under the Plan, or the authorized representative
of such individual, may make a claim for those benefits by submitting a written
notification of his claim of right to such benefits.  This notification must be on the form and in
accordance with the procedures established by the Committee.  No benefit will be paid under the Plan until
a proper claim for benefits has been submitted.

 

11.2.       Procedure
for Review.  The Committee will
establish administrative processes and safeguards to ensure that all claims for
benefits are reviewed in accordance with the Plan and that, where appropriate,
Plan provisions have been applied consistently to similarly situated
Participants.

 

11.3.       Claim
Denial Procedure.  If a claim is
wholly or partially denied, the Committee will notify the Claimant within a
reasonable period of time, but not later than 90 days after receipt of the
claim, unless the Committee determines that special circumstances require an
extension of time for processing the claim. 
If the Committee determines that an extension of time for processing is
required, written notice of the extension will be furnished to the Claimant
prior to the termination of the initial 90-day period.  In no event will such extension exceed a
period of 180 days from receipt of the claim. 
The extension notice will indicate: (i) the special circumstances
necessitating the extension and (ii) the date by which the Committee
expects to render a benefit determination. 
A benefit denial notice will be written in a manner calculated to be
understood by the Claimant and will set forth: 
(i) the specific reason or reasons for the denial, (ii) the
specific reference to the Plan provisions on which the denial is based, (iii) a
description of any additional material or information necessary for the
Claimant to perfect the claim, with reasons therefor, and (iv) the
procedure for reviewing the denial of the claim and the time limits applicable
to such procedures, including a statement of the Claimant’s right to bring a
legal action under ERISA following an adverse benefit determination on review.

 

11.4.       Appeal
Procedure.  In the case of an adverse
benefit determination, the Claimant will have the opportunity to appeal to the
Committee for review thereof by requesting such review in writing to the
Committee within 60 days of receipt of notification of the denial.  Failure to submit a proper application for
appeal within such 60-day period will cause such claim to be permanently
denied.  The Claimant shall be provided,
upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant to the claim.  The Claimant will also be provided the
opportunity to submit written comments, documents, records and other
information relating to the claim for benefits. 
The Committee shall review the appeal taking into account all comments,
documents, records and other information submitted by the Claimant relating to
the claim, without regard to whether such information was submitted or
considered in the initial benefit determination.

 

 

11

 

11.5.       Decision
on Appeal.  The Committee will notify
the Claimant of its decision on appeal within a reasonable period of time, but
not later than 60 days after receipt of the request for review, unless the
Committee determines that special circumstances require an extension of time
for processing the appeal.  If the
Committee determines that an extension of time for processing is required,
written notice of the extension will be furnished to the Claimant prior to the
termination of the initial 60-day period. 
In no event will such extension exceed a period of 60 days from the end
of the initial period.  The extension
notice will indicate: (i) the special circumstances necessitating the
extension and (ii) the date by which the Committee expects to render a
benefit determination.  An adverse
benefit decision on appeal will be written in a manner calculated to be
understood by the Claimant and will set forth: 
(i) the specific reason or reasons for the adverse determination, (ii) the
specific reference to the Plan provisions on which the denial is based, (iii) a
statement that the Claimant is entitled to receive, upon request and free of
charge, reasonable access to and copies of all documents, records, and other
information relevant to the claim and (iv) a statement of the Claimant’s
right to bring a legal action under ERISA.

 

11.6.       Litigation.  In order to operate and administer the claims
procedure in a timely and efficient manner, any Claimant whose appeal with
respect to a claim for benefits has been denied, and who desires to commence a
legal action with respect to such claim, must commence such action in a court
of competent jurisdiction within 90 days of receipt of notification of
such denial.  Failure to file such action
by the prescribed time will forever bar the commencement of such action.

 

ARTICLE
XII

 

MISCELLANEOUS
PROVISIONS

 

12.1.       Right
of the Company to Take Employment Actions. 
The adoption and maintenance of this Plan shall not be deemed to
constitute a contract between the Company and any eligible Participant, nor to
be a consideration for, nor an inducement or condition of, the employment of
any person.  Nothing herein contained, or
any action taken hereunder, shall be deemed to give any eligible Participant
the right to be retained in the employ of the Company or to interfere with the
right of the Company to discharge any eligible Participant at any time, nor
shall it be deemed to give to the Company the right to require the eligible Participant
to remain in its employ, nor shall it interfere with the eligible Participant’s
right to terminate his or her employment at any time.  Nothing in this Plan shall prevent the
Company from amending, modifying, or terminating any other Company benefit
plan.

 

12.2.       Alienation
or Assignment of Benefits.  A
Participant’s rights and interest under the Plan shall not be assigned or
transferred except as otherwise provided herein, and the Participant’s rights
to benefit payments under the Plan shall not be subject to alienation, pledge
or garnishment by or on behalf of creditors (including heirs, beneficiaries, or
dependents) of the Participant or of a Beneficiary.

 

12.3.       Applicable
Law.  This Plan shall be construed
and enforced in accordance with the laws of Delaware (without regard to the
conflict of the law provisions thereof) except to the extent superseded by
ERISA.

 

12.4.       Number
and Gender.  Whenever any words used
herein are in the singular form, they shall be construed as though they were
also used in the plural form in all cases where they would so apply, and
references to the male gender shall be construed as applicable to the female
gender where applicable, and vice versa.

 

12

 

12.5.       Withholding
and Taxes.  All benefits paid under
the Plan are subject to any applicable payroll or other taxes, required to be
withheld by law.  Nothing contained
herein and no actions taken hereunder, creates or will be construed to create
any right or expectation of any Participant to any particular tax result or
consequences.

 

To record the adoption of the amendment and
restatement of the Plan, the Company has caused its authorized officers to
affix its corporate name and seal effective this
           day of
                          ,
2007.

 

	
  [CORPORATE SEAL]

  	
   

  	
  COVANCE INC.

  
	
   

  	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

13

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