Document:

Ex. 10-8

                          REGISTRATION RIGHTS AGREEMENT

          AGREEMENT, dated as of the 23rd day of January, 2002 between Vantage
Holdings I, LLC, a Delaware limited liability company ("Holder") and Hand Brand
Distribution Inc., a Florida corporation (the "Company").

                                    RECITALS

A.        Simultaneously with the execution and delivery of this Agreement, the
Holder is acquiring 1,783,950 shares of the Company's common stock ("Shares")
pursuant to a Stock Purchase Agreement ("SPA") between the Holder and the
Company.

B.        The Company desires to grant to the Holder the registration rights set
forth herein with respect to the Shares and but for the granting of such rights,
the Holder would not have entered into the SPA.

NOW, THEREFORE, the parties hereto mutually agree as follows:

1.        REGISTRABLE SECURITIES. As used herein the term "Registrable Security"
means each of the Shares; provided, however, that with respect to any particular
Registrable Security, such security shall cease to be a Registrable Security
when, as of the date of determination, (i) it has been effectively registered
under the Securities Act of 1933, as amended (the "Securities Act") and disposed
of pursuant thereto, or (ii) registration under the Securities Act is no longer
required for the immediate public distribution of such security. The term
"Registrable Securities" means any and/or all of the securities falling within
the foregoing definition of a "Registrable Security." In the event of any
merger, reorganization, consolidation, recapitalization or other change in
corporate structure affecting the Common Stock, such adjustment shall be made in
the definition of "Registrable Security" as is appropriate in order to prevent
any dilution or enlargement of the rights granted pursuant to this Article 1.

2.        PIGGYBACK REGISTRATION.

          a.      If, at any time, the Company proposes to prepare and file
with the Securities and Exchange Commission (the "Commission") a registration
statement covering equity or debt securities of the Company, or any such
securities of the Company held by its shareholders (in any such case, other than
in connection with a merger, acquisition or pursuant to Form S-8 or successor
form) (for purposes of this Article 2, collectively, a "Registration
Statement"), it will give written notice of its intention to do so by registered
mail ("Notice"), at least thirty (30) days prior to the filing of each such
Registration Statement, to the holder of the Registrable Securities. Upon the
written request of such a holder (a "Requesting Holder"), made within twenty
(20) days after receipt of the Notice, that the Company include any of the
Requesting Holder's Registrable Securities in the proposed Registration
Statement, the Company shall use its best efforts to effect the registration
under the Securities Act of the Registrable Securities which it has been so
requested to register ("Piggyback Registration"), at the Company's sole cost and
expense and at no cost or expense to the Holder except as provided in Section
4(b) hereof.

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          b.      The Company agrees to include the shares in its registration
statement to be filed with the Securities and Exchange Commission in connection
with its equity line credit facility with Prima Capital Growth LLC.

3.        DEMAND REGISTRATION. At any time commencing on June 30, 2002, the
Holder of the Registrable Securities shall have the right (which right is in
addition to the piggyback registration rights provided for under Article 2
hereof), exercisable by written notice to the Company (the "Demand Registration
Request"), to have the Company prepare and file with the Commission, on one
occasion, at the sole expense of the Company (except as provided in Section 4(b)
hereof), in respect of all holders of Registrable Securities, a Registration
Statement so as to permit a public offering and sale of the Registrable
Securities. Once effective, the Company will be required to maintain the
effectiveness of the Registration Statement until the earlier of (i) the date
that all of the Registrable Securities have been sold, or (ii) the date that all
holders of Registrable Securities receive an opinion of counsel to the Company
that all of the Registrable Securities may be freely traded without registration
under the Securities Act, under Rule 144 promulgated under the Securities Act or
otherwise.

4.        COVENANTS OF THE COMPANY WITH RESPECT TO REGISTRATION. The Company
covenants and agrees as follows:

          a.      In connection with any registration under Article 3 hereof,
the Company shall use its best efforts to file the Registration Statement as
expeditiously as possible, but in no event later than thirty (30) days following
receipt of any demand therefor. The Company shall use its best efforts to cause
the Registration Statement to become effective as promptly as possible and, if
any stop order shall be issued by the Commission in connection therewith, to use
its reasonable efforts to obtain the removal of such order. Following the
effective date of a Registration Statement, the Company shall, upon the request
of the Holder, forthwith supply such reasonable number of copies of the
Registration Statement, preliminary prospectus and prospectus meeting the
requirements of the Securities Act, and other documents necessary or incidental
to the public offering of the Registrable Securities, as shall be reasonably
requested by the Holder to permit the Holder to make a public distribution of
the Holder's Registrable Securities. The obligations of the Company hereunder
with respect to the Holder's Registrable Securities are subject to the Holder's
furnishing to the Company such appropriate information concerning the Holder,
the Holder's Registrable Securities and the terms of the Holder's offering of
such Registrable Securities as the Company may reasonably request in writing.

          b.      Notwithstanding the provision under Section 4(a) hereof, if,
at the time the Demand Registration Request is given to the Company under
Article 3 hereof, the Company is negotiating a merger, consolidation,
acquisition or sale of all or substantially all of its assets or similar
transaction and in the written opinion of counsel to the Company, the
Registration Statement would be required to include information concerning such
transactions or the parties thereto that is not available at the time, the
Company shall promptly so advise the holder of the Registrable Securities and,
at the Company's election, to be set forth in such notice ("Notice of
Postponement"), the filing of the Registration Statement may be postponed for a
period not to exceed ninety (90) days from the date the Demand Registration
Request is given to the Company under Article 3 hereof (notwithstanding the
provisions of Section 4(a) to the contrary); provided,

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however, that the Company shall not be permitted to give any such Notice of
Postponement and to so postpone the filing of the Registration Statement more
than once in any 365 day period; and provided, further, that in the event of
such postponement, the Holder may withdraw the notice of Demand Registration
during the 60-day period following the date Notice of Postponement is given by
the Company and will thereafter continue to be entitled to one (1) Demand
Registration Request pursuant to Article 3 hereof.

          c.      The Company shall pay all costs, fees and expenses in
connection with all Registration Statements filed pursuant to Article 2 or
Article 3 hereof including, without limitation, the Company's legal and
accounting fees, printing expenses, and blue sky fees and expenses; provided,
however, that the Holder shall be solely responsible for the fees of any counsel
retained by the Holder in connection with such registration and any transfer
taxes or underwriting discounts, commissions or fees applicable to the
Registrable Securities sold by the Holder pursuant thereto.

          d.      The Company will take all necessary action which may be
required in qualifying or registering the Registrable Securities included in a
Registration Statement for offering and sale under the securities or blue sky
laws of such states as are reasonably requested by the holders of such
securities, provided that the Company shall not be obligated to execute or file
any general consent to service of process or to qualify as a foreign corporation
to do business under the laws of any such jurisdiction.

5.        ADDITIONAL TERMS.

          a.      The Company shall indemnify and hold harmless the Holder and
each underwriter, within the meaning of the Securities Act, who may purchase
from or sell for the Holder, any Registrable Securities, from and against any
and all losses, claims, damages and liabilities caused by any untrue statement
of a material fact contained in the Registration Statement, any other
registration statement filed by the Company under the Securities Act with
respect to the registration of the Registrable Securities, any post-effective
amendment to such registration statements, or any prospectus included therein or
caused by any omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, except
insofar as such losses, claims, damages or liabilities are caused by any such
untrue statement or omission based upon information furnished or required to be
furnished in writing to the Company by the Holder or underwriter expressly for
use therein, which indemnification shall include each person, if any, who
controls either the Holder or underwriter within the meaning of the Securities
Act and each officer, director, employee and agent of the Holder and
underwriter; provided, however, that the indemnification in this Section 5(a)
with respect to any prospectus shall not inure to the benefit of the Holder or
underwriter (or to the benefit of any person controlling the Holder or
underwriter) on account of any such loss, claim, damage or liability arising
from the sale of Registrable Securities by the Holder or underwriter, if a copy
of a subsequent prospectus correcting the untrue statement or omission in such
earlier prospectus was provided to the Holder or underwriter by the Company
prior to the subject sale and the subsequent prospectus was not delivered or
sent by the Holder or underwriter to the purchaser prior to such sale and
provided further, that the Company shall not be obligated to so indemnify the
Holder or any such underwriter or other person referred to above unless the

<PAGE>

Holder or underwriter or other person, as the case may be, shall at the same
time indemnify the Company, its directors, each officer signing the Registration
Statement and each person, if any, who controls the Company within the meaning
of the Securities Act, from and against any and all losses, claims, damages and
liabilities caused by any untrue statement of a material fact contained in the
Registration Statement, any registration statement or any prospectus required to
be filed or furnished by reason of this Agreement or caused by any omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, insofar as such losses, claims, damages
or liabilities are caused by any untrue statement or omission based upon
information furnished in writing to the Company by the Holder or underwriter
expressly for use therein.

          b.      If for any reason the indemnification provided for in the
preceding section is held by a court of competent jurisdiction to be unavailable
to an indemnified party with respect to any loss, claim, damage, liability or
expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount
paid or payable by the indemnified party as a result of such loss, claim, damage
or liability in such proportion as is appropriate to reflect not only the
relative benefits received by the indemnified party and the indemnifying party,
but also the relative fault of the indemnified party and the indemnifying party,
as well as any other relevant equitable considerations.

          c.      Neither the filing of a Registration Statement by the Company
pursuant to this Agreement nor the making of any request for prospectuses by the
Holder shall impose upon the Holder any obligation to sell the Holder's
Registrable Securities.

          d.      The Holder, upon receipt of notice from the Company that an
event has occurred which requires a Post-Effective Amendment to the Registration
Statement or a supplement to the prospectus included therein, shall promptly
discontinue the sale of Registrable Securities until the Holder receives a copy
of a supplemented or amended prospectus from the Company, which the Company
shall provide as soon as practicable after such notice.

          e.      If the Company fails to keep the Registration Statement
referred to in Article 3 above continuously effective during the requisite
period, then the Company shall, promptly upon the request of the Holders of at
least a majority of the unsold Registrable Securities, use its best efforts to
update the Registration Statement or file a new registration statement covering
the Registrable Securities remaining unsold, subject to the terms and provisions
hereof.

          f.      The Holder agrees to provide the Company with any information
or undertakings reasonably requested by the Company in order for the Company to
include any appropriate information concerning the Holder in the Registration
Statement or in order to promote compliance by the Company or the Holders with
the Securities Act.

6.        MISCELLANEOUS.

          a.      Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF. THE

<PAGE>

COMPANY AND THE INVESTOR EACH WAIVES AND AGREES NOT TO ASSERT IN ANY SUCH,
ACTION OR PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE
JURISDICTION OF SUCH COURT, THAT THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN
INCONVENIENT FORUM OR THAT THE VENUE OF THE SUIT, ACTION OR PROCEEDING IS
IMPROPER. NOTHING IN THIS SECTION SHALL AFFECT OR LIMIT ANY RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

          b.      Submission to Jurisdiction. Any proceeding with respect to the
interpretation of this Agreement or the rights and obligations of the parties
shall be exclusively brought in the United States District Court for the
Southern District of New York or if such Court lacks subject matter
jurisdiction, in the Supreme Court of the State of New York, County of New York.
Each of the Company and the Investor waives the right to object to the
jurisdiction of either of such courts or the right to claim it is an
inconvenient forum. Each of the parties waives any objection that it may now or
hereafter have to the venue of any such action or proceeding in any such court
or that such action or proceeding was brought in an inconvenient court and
agrees not to plead or claim the same. Each of the parties agrees that service
of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of
mail), postage prepaid, to it at its address set forth in this Agreement or at
such other address as may have been furnished in writing to the other parties.
In any action or proceeding arising out of this Agreement, the prevailing party
in such action or proceeding shall be entitled to recover from the other party
thereto the reasonable attorneys' fees, including one or more appeals, court
costs, filing fees, publication costs and other expenses incurred by the
prevailing party.

          c.      EACH OF THE COMPANY AND THE INVESTOR HEREBY IRREVOCABLY WAIVES
UNCONDITIONALLY TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING REFERRED TO IN
CLAUSE (a) ABOVE.

          d.      Amendment. This Agreement may only be amended by a written
instrument executed by the Company and the Holder.

          e.      Entire Agreement. This Agreement constitutes the entire
agreement of the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings of the parties, oral and
written, with respect to the subject matter hereof.

          f.      Execution in Counterparts. This Agreement may be executed in
one or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same document.

          g.      Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed duly given when
delivered by hand, facsimile (with original to follow) or mailed by registered
or certified mail, postage prepaid, return receipt requested, to the address set
forth on the signature page.

          h.      Binding Effect; Benefits. The Holder may assign his or her
rights hereunder. This Agreement shall inure to the benefit of, and be binding
upon, the parties hereto and their

<PAGE>

respective heirs, legal representatives and successors. Nothing herein
contained, express or implied, is intended to confer upon any person other than
the parties hereto and their respective heirs, legal representatives and
successors, any rights or remedies under or by reason of this Agreement.

          i.      Headings. The headings contained herein are for the sole
purpose of convenience of reference, and shall not in any way limit or affect
the meaning or interpretation of any of the terms or provisions of this
Agreement.

          j.      Severability. Any provision of this Agreement which is held by
a court of competent jurisdiction to be prohibited or unenforceable in any
jurisdiction(s) shall be, as to such jurisdiction(s), ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

IN WITNESS  WHEREOF,  this  Agreement  has been  executed  and  delivered by the
parties hereto as of the date first above written.

THE COMPANY:

HAND BRAND DISTRIBUTION INC.

BY:/s/
   -------------------------------
   John Taggert, President

VANTAGE HOLDINGS I, LLC.

BY:/s/
   -------------------------------
   Sylvia Griffith, Managing MemberExhibit 4.1

                =======================================

                    THE STOCK PURCHASE SAVINGS PLAN
                                  OF
                             COVANCE INC.

           (As Amended and Restated Effective June 1, 2001)
           ------------------------------------------------

                =======================================

<PAGE>

                =======================================

                    THE STOCK PURCHASE SAVINGS PLAN
                                  OF
                             COVANCE INC.

           (As Amended and Restated Effective June 1, 2001)
           ------------------------------------------------

                =======================================

                           Table of Contents
                                                                            Page
                                                                            ----

ARTICLE I.     DEFINITIONS.....................................................1

ARTICLE II.    PARTICIPATION..................................................13
       2.1.    Eligibility Requirements.......................................13
       2.2.    Election to Make Elective Deferral Contributions...............13
       2.3.    Ineligible Employees...........................................13
       2.4.    Participation Following Termination of Employment..............14
       2.5.    Time of Participation - Excluded Employees.....................14

ARTICLE III.    CONTRIBUTIONS.................................................14
       3.1.     Participant Contributions.....................................14
       3.2.     Participating Employer Contributions..........................15
       3.3.     Maximum Deferral..............................................17
       3.4.     Limitation on Elective Deferral Contributions -
                Code Section 401(k)...........................................18
       3.5.     Limitation on Matching Contributions - Code Section 401(m)....20
       3.6.     Aggregate Limitation on Contributions.........................22
       3.7.     Plan Aggregation; Special Rule................................23
       3.8.     Recovery of Participating Employer Contributions..............23

ARTICLE IV.     CREDITS TO ACCOUNTS...........................................23
       4.1.     Maintenance of Accounts.......................................23
       4.2.     Payment and Allocation of Contributions and Forfeitures.......24
       4.3.     Valuation of the Investment Funds.............................25
       4.4.     Limitations on Annual Additions to Participants'
                Accounts Code Section 415.....................................26
       4.5.     Elimination of Excess Annual Additions........................26

ARTICLE V.      VESTING.......................................................27
       5.1.     Vesting in Participant Contributions and Rollover
                Contributions.................................................27
       5.2.     Vesting In Participating Employer Contributions...............27
       5.3.     Vesting in Participating Employer Contributions at Age 65,
                Death or Disability...........................................28
       5.4.     Crediting of Years of Service Before a Break-in-Service.......28
       5.5.     Vesting in Participating Employer Contributions Made
                Before-a Break-in-Service.....................................28

                                   i
<PAGE>

ARTICLE VI.     FORFEITURES...................................................28
       6.1.     Participant Contributions.....................................28
       6.2.     Participating Employer Contributions..........................28
       6.3.     Partial Distributions.........................................29

ARTICLE VII.    ENTITLEMENT TO BENEFITS.......................................30
       7.1.     Retirement or Disability......................................30
       7.2.     Termination of Employment.....................................30
       7.3.     Deferred Distribution.........................................30
       7.4.     Death.........................................................30
       7.5.     Adjustments to Accounts for Delayed Distributions.............30
       7.6.     Distribution on Sale of Business..............................30

ARTICLE VIII.   PAYMENT AND FORM OF BENEFITS..................................31
       8.1.     Benefit Commencement Date.....................................31
       8.2.     Earliest Distribution Date....................................31
       8.3.     Forms of Benefit Payment......................................32
       8.4.     Death Benefits................................................32
       8.5.     Election to Commence Benefit Payment..........................32
       8.6.     Change of Election............................................32
       8.7.     Required Distributions - Code Section 401(a)(9)...............32
       8.8.     Benefit Transfers.............................................33
       8.9.     Distribution Pursuant to a Qualified Domestic Relations
                Order.........................................................33
       8.10.    Put Option....................................................34

ARTICLE IX.     WITHDRAWALS DURING EMPLOYMENT.................................35
       9.1.     Hardship Withdrawal - General Rules...........................35
       9.2.     Definition of Qualified Emergency.............................35
       9.3.     Requirements for Hardship Withdrawal..........................36
       9.4.     Withdrawals after Age 59 1/2..................................36
       9.5.     Rollover and Savings Contribution Account Withdrawals.........36
       9.6.     Distribution of Amounts Withdrawn.............................36

ARTICLE X.      LOANS TO PARTICIPANTS.........................................37
       10.1.    Plan Loans....................................................37
       10.2.    Loan Requirements.............................................37

ARTICLE XI.     INVESTMENTS...................................................39
       11.1.    Investment Fund...............................................39
       11.2.    Investment Elections..........................................39
       11.3.    Change of Election............................................40
       11.4.    Diversification of Investments or Distribution for
                Certain Participants..........................................40
       11.5.    Employer Stock Fund...........................................41
       11.6.    Dividends on ESOP Stock.......................................41
       11.7.    Voting and Tender Offer Rights on Employer Stock..............41

                                  ii
<PAGE>

ARTICLE XII.    TOP-HEAVY PROVISIONS..........................................42
       12.1.    Top-Heavy Requirements........................................42
       12.2.    Minimum Vesting Requirements..................................42
       12.3.    Change in Top-Heavy Status....................................42
       12.4.    Minimum Contribution Requirement..............................42

ARTICLE XIII.   PLAN ADMINISTRATION...........................................43
       13.1.    Fiduciary Responsibility......................................43
       13.2.    Appointment and Removal of Committee..........................44
       13.3.    Compensation and Expenses of Committee........................45
       13.4.    Committee Procedures..........................................45
       13.5.    Plan Interpretation...........................................45
       13.6.    Consultants...................................................45
       13.7.    Method of Handling Plan Funds.................................45
       13.8.    Delegation and Allocation of Responsibility...................45
       13.9.    Claims Procedure..............................................46

ARTICLE XIV     AMENDMENT AND TERMINATION.....................................47
       14.1.    Amendment.....................................................47
       14.2.    Termination or Partial Termination............................48

ARTICLE XV.     VETERANS' REEMPLOYMENT RIGHTS.................................48
       15.1.    Crediting Service.............................................48
       15.2.    Elective Deferral Contributions...............................48
       15.3.    Matching Contributions........................................49
       15.4.    Compensation..................................................49
       15.5.    Qualified Military Service....................................49
       15.6.    Earnings and Forfeitures......................................50

ARTICLE XVI.    MISCELLANEOUS.................................................50
       16.1.    Merger, Consolidation or Transfer of Assets or Liabilities....50
       16.2.    Limited Purpose of Plan.......................................50
       16.3.    Non-alienation................................................50
       16.4.    Facility of Payment...........................................50
       16.5.    Impossibility of Diversion....................................50
       16.6.    Unclaimed Benefits............................................51
       16.7.    Construction..................................................51
       16.8.    Governing Law.................................................51
       16.9.    Contingent Effectiveness of Plan Amendment and Restatement....51
       16.10.   Special Rule for Sale of Covance Pharmaceutical
                Packaging Services Inc........................................51

APPENDIX A MERGED PLANS.......................................................53

SUPPLEMENT A LEVERAGED ESOP PROVISIONS........................................54

SUPPLEMENT B PARTICIPATING EMPLOYERS..........................................60

                                 iii
<PAGE>

                         THE STOCK PURCHASE SAVINGS PLAN
                                       OF
                                  COVANCE INC.

                (As Amended and Restated Effective June 1, 2001)

         This is The Stock Purchase Savings Plan of Covance Inc. ("Plan"),
amended and restated effective June 1, 2001, except as otherwise provided,
covering the eligible employees of Covance Inc. and such of its affiliated
entities as have adopted the Plan for their eligible employees. The rights and
obligations under the Plan with respect to an employee who terminated employment
before the applicable effective date of this amendment and restatement shall be
governed by the terms of the Plan as in effect on the date of his termination of
employment.

         This Plan consists of a profit sharing and stock bonus plan which is
intended to qualify under sections 401(a) and 401(k) of the Internal Revenue
Code, and an employee stock ownership plan which is intended to qualify as a
stock bonus plan under Section 401(a) of the Internal Revenue Code and as an
employee stock ownership plan under Section 4975(e)(7) of the Internal Revenue
Code. The assets of the employee stock ownership plan shall consist of the
assets transferred to this Plan as the result of the merger of the Covance Inc.
Employee Stock Ownership Plan with and into this Plan effective December 31,
1999 and amounts attributable to Matching Contributions and Discretionary
Contributions made to this Plan on or after December 31, 1996. The assets of the
employee stock ownership plan shall be invested primarily in common shares of
the Sponsor which qualify as "employer securities" within the meaning of section
409(1) of the Internal Revenue Code.

                             ARTICLE I. DEFINITIONS
                             ----------------------

         The following words and phrases as used herein have the following
meanings unless a different meaning is plainly required by the context:

         1.1.  "Account" means a Participant's account in the Fund, including
the following sub-accounts:

               1.1.1. "Discretionary Contribution Account" to which
Discretionary Contributions made to the Plan on or after December 31, 1996 are
allocated, together with any income, gains and losses credited thereto;

               1.1.2. "Elective Deferral Contribution Account" to which a
Participant's Elective Deferral Contributions are allocated, together with any
income, gains and losses credited thereto;

               1.1.3. "ESOP Account" means the portion of a Participant's
Account attributable to the Participant's benefits under the Covance Inc.
Employee Stock Ownership Plan which was merged into the Plan effective December
31, 1999 and any income, gains or losses credited thereto;

               1.1.4. "Matching Contribution Account" to which Matching
Contributions are allocated, together with any income, gains and losses credited
thereto, including the following subaccounts;

                      1.1.4.1.      "New Matching Contribution Account" means
               that portion of a Participant's Account attributable to Matching
               Contributions allocated to the Participant on or after December
               31, 1996, and any income, gains and losses credited thereto;

                                       1
<PAGE>

                      1.1.4.2.      "Pre-July 1995 Matching Contribution
               Account" means that portion of a Participant's Account
               attributable to Matching Contributions allocated to the
               Participant prior to July 1, 1995, plus certain employer
               contributions made to certain of the Merged Plans and any income,
               gains and losses credited thereto;

                      1.1.4.3.      "Pre-1997 Matching Contribution Account"
               means that portion of a Participant's Account attributable to
               Matching Contributions allocated to the Participant after June
               30, 1995 and before December 31, 1996, and any income, gains and
               losses credited thereto;

                      1.1.5.        "Prior Plan Account" means the portion of a
               Participant's Account attributable to certain contributions made
               to qualified retirement plans in which the Participant previously
               participated, together with any income, gains and losses credited
               thereto, including the following subaccounts;

                      1.1.5.1.      "Prior CHEOS Plan Account" means that
               portion of a Participant's Account attributable to employer
               discretionary contributions under the Covance Health Economics
               and Outcome Services Inc. 401(k) Savings Plan ("CHEOS Plan")
               which was merged into the Plan effective April 14, 1999, and any
               income, gains and losses credited thereto;

                      1.1.5.2.      "Prior GDXI Plan Account" means that portion
               of a Participant's Account attributable to employer matching
               contributions under the GDXI, Inc. 401(k) Plan ("GDXI Plan")
               which was merged into the Plan effective April 29, 1999, and any
               income, gains and losses credited thereto;

                      1.1.5.3.      "Prior Metpath Plan Account" means that
               portion of a Participant's Account attributable to certain
               employer contributions under the Metpath Profit Sharing Plan of
               Corning Life Science, Inc. (the "Metpath Plan") which were merged
               into the Plan effective November 1995, and any income, gains and
               losses credited thereto;

                      1.1.5.4.      "Prior Partnership Plan Account" means that
               portion of a Participant's Account attributable to certain
               employer contributions under the Metpath Plan which was merged
               into the Plan effective November 1995, and any income, gains and
               losses credited thereto;

                      1.1.5.5.      "Prior Profit Sharing Plan Account" means
               that portion of a Participant's Account plus certain employer
               contributions made to certain of the Merged Plans attributable to
               employer discretionary contributions made to the Plan prior to
               1997 plus certain employer contributions made to certain of the
               Merged Plans and any income, gains and losses credited thereto;

                      1.1.5.6.      "Prior Savings Contribution Plan Account"
               means that portion of a Participant's Account attributable to
               employee after-tax contributions under the Metpath Plan which was
               merged into the Plan effective November 1995, and any income,
               gains and losses credited thereto;

                                       2
<PAGE>

               1.1.6. "Qualified Matching Contribution Account" to which
Qualified Matching Contributions, if any, are allocated, together with any
income, gains and losses credited thereto;

               1.1.7. "Qualified Nonelective Contribution Account" to which
Qualified Nonelective Contributions, if any, are allocated, together with any
income, gains and losses credited thereto; and

               1.1.8. "Rollover Contribution Account" to which a Participant's
Rollover Contributions are allocated, together with any income, gains and losses
credited thereto.

         1.2.  "Account Balance" means, for the purpose of Article XII relating
to the provisions that will take effect if the Plan is a Top-Heavy Plan, the sum
of:

               1.2.1. the balance, as of the Determination Date, standing to the
credit of a Participant (or Beneficiary) in his Account, except for amounts
maintained in a Rollover Contribution Account attributable to Rollover
Contributions made after 1983 that are treated as "unrelated" under section 416
of the Code and the regulations thereunder;

               1.2.2. contributions due as of the Determination Date; and

               1.2.3. the aggregate distributions made with respect to such
Participant (or Beneficiary) under the Plan during the five-year period ending
on the Determination Date. Distributions (including the cash value of life
insurance policies) of a Participant's Account due to death shall be treated as
distributions for purposes of this Section.

The term "Account Balance" shall not include any amount held or distributed on
behalf of any Participant who is a Former Key Employee, or who has not performed
services for the Employer at any time during the five-year period ending on the
Determination Date. The term "Account Balance" also shall not include amounts
attributable to deductible employee contributions as defined in section
72(o)(5)(A) of the Code.

         1.3.  "Aggregation Group" means:
                -----------------

               1.3.1. a Required Aggregation Group, or

               1.3.2. a Permissive Aggregation Group.

         1.4.  "Annual Addition" means the sum credited to the Participant under
                ---------------
each Defined Contribution Plan for any Limitation Year, of:

               1.4.1. Employer contributions,

               1.4.2. Employee contributions (other than Rollover
Contributions), and

               1.4.3. forfeitures.

The term "Annual Addition" shall also include the amount allocated to a separate
account of the Participant to provide post-retirement medical benefits (a) under
a Defined Benefit Plan, as described in section 415(l)(1) of the Code, and (b)
with respect to a Participant who is, or was, a Key Employee for any Plan Year,
under a welfare benefit fund, as described in section 419A(d)(2) of the Code.

                                       3
<PAGE>

         1.5.  "Beneficiary" means:
                -----------

               1.5.1. the Participant's spouse;

               1.5.2. the person, persons or trust designated by the
Participant, with the consent of the Participant's spouse if the Participant is
married, as direct or contingent beneficiary in a manner prescribed by the
Committee; or

               1.5.3. if the Participant has no spouse and has failed to make an
effective beneficiary designation, the Participant's estate.

A married Participant may designate a Beneficiary other than his spouse,
provided that such spouse consents to such designation in writing in a manner
prescribed by the Committee. The spouse's consent must be witnessed by a notary
public or Plan representative and must acknowledge the effect of such
beneficiary designation. Such consent shall not be required if the Participant
establishes to the satisfaction of the Committee that the consent cannot be
obtained because the spouse cannot be located or because of such other
circumstances as the Secretary of the Treasury may prescribe by regulations. A
subsequent spouse of a Participant shall not be bound by a consent executed by
any previous spouse of the Participant.

         1.6.  "Board of Directors" means the Board of Directors of the Sponsor.
                ------------------

         1.7.  "Break-in-Service" means a 12 consecutive month period beginning
on an Employee's Severance from Service Date, or any anniversary thereof, during
which the Employee does not perform an Hour of Service for the Employer. An
individual who is absent from work for maternity or paternity leave shall not
incur a Period of Severance for the 12 consecutive month period beginning on the
first anniversary of the first day of such absence. For purposes of this
Section, an absence from work for maternity or paternity leave means an absence
by reason of the:

               1.7.1. pregnancy of the Employee,

               1.7.2. birth of a child of the Employee,

               1.7.3. placement of a child with the Employee in connection with
the adoption of such child by the Employee, or

               1.7.4. provision of care for such child for a period beginning
immediately following such birth or placement.

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

         1.9.  "Committee" means the Benefits Administration Committee
consisting of one or more members appointed by the Board of Directors to
administer the Plan.

         1.10. "Compensation."
                ------------

               1.10.1. Deferral Compensation. For the purpose of determining
Participants' Elective Deferral Contributions, the term `Compensation' means (i)
all amounts of regular cash compensation that are treated as wages for Federal
income tax withholding under section 3401(a) of the Code (determined without
regard to any rules that limit the remuneration included in wages based on the
nature or location of the employment or the services performed) for the Plan
Year, including short-term disability payments, plus (ii) amounts that would be

                                       4
<PAGE>

paid an Employee during the year but for the Employee's election under a cash or
deferred arrangement described in section 401(k) of the Code or a cafeteria plan
described in section 125 of the Code. For this purpose, the term `Compensation'
shall not include reimbursements or other expense allowances, cash and non-cash
fringe benefits (e.g., employee discounts), moving expenses, deferred
Compensation and welfare benefits.

               1.10.2. Limitations on Annual Additions. For purposes of the
limitations on Annual Additions to Participants' Accounts, the minimum
contribution requirement if the Plan should become a Top-Heavy Plan, and
defining the terms "Highly Compensated Employee" and "Key Employee,"
Compensation shall include all amounts that are treated as wages for Federal
income tax withholding under section 3401(a) of the Code (determined without
regard to any rules that limit the remuneration included in wages based on the
nature or location of the employment or the services performed) and actually
paid to the Participant during the Limitation Year plus amounts that would be
paid to the Employee during the year but for the Employee's election under a
cash or deferred arrangement described in section 401(k) of the Code, a
cafeteria plan described in section 125 of the Code, a simplified employee
pension described in section 402(h) of the Code or an annuity program described
in section 403(b) of the Code. For purposes of applying the limitations
described in this Section 1.10.2 for Limitation Years beginning on and after
January 1, 2001, Compensation shall also include elective amounts that are not
includible in the gross income of the Employee by reason of Code section
132(f)(4).

               1.10.3. Maximum Annual Dollar Limit. The annual Compensation of
each Employee taken into account for any purpose under the Plan, other than
those described below in this subsection, shall not exceed $170,000 (as adjusted
under section 401(a)(17) of the Code). This subsection shall not apply for
purposes of determining which individuals are Key Employees or for purposes of
the limitations on Annual Additions to Accounts under section 415 of the Code.

               1.10.4. Testing Compensation. For purposes of the average
deferral percentage test and the average contribution percentage test,
"Compensation" shall be defined using a definition permissible under section
414(s) of the Code.

         1.11. "Default Fund" means an Investment Fund, as specified by the
Committee from time to time.

         1.12. "Defined Benefit Plan" means any employee pension plan maintained
by the Employer that is a qualified plan under section 401(a) of the Code and is
not a Defined Contribution Plan.

         1.13. "Defined Contribution Plan" means an employee pension plan
maintained by the Employer that is a qualified plan under section 401(a) of the
Code and provides for an individual account for each participant and for
benefits based solely on the amount contributed to the participant's account,
and any income, expenses, gains, and losses, and any forfeitures from accounts
of other participants that may be allocated to such participant's account.

         1.14. "Determination Date" means:
                ------------------

               1.14.1. if the Plan is not included in an Aggregation Group, the
last day of the preceding Plan Year; or

                                       5
<PAGE>

               1.14.2. if the Plan is included in an Aggregation Group, the
Determination Date as determined under the preceding subsection that falls
within the same calendar year as the determination date of each other plan
included in such Aggregation Group.

         1.15. "Discretionary Contribution" means the contribution made to the
Plan at the discretion of each Participating Employer.

         1.16. "Effective Date" of the Plan means July 1, 1972. The effective
date of this amendment and restatement of the Plan is June 1, 2001, except as
otherwise specifically stated herein.

         1.17. "Elective Deferral Contribution" means a pre-tax contribution
made to the Plan by the Participating Employer at the election of the
Participant, in lieu of receipt of current compensation.

         1.18. "Employee" means:
                --------

               1.18.1. an individual who is employed by the Employer and whose
earnings are reported on a Form W-2;

               1.18.2. an individual who is not employed by the Employer but is
a leased employee within the meaning of section 414(n)(2) of the Code; provided
that, if the total number of leased employees constitutes 20% or less of the
Employer's nonhighly compensated work force, within the meaning of section
414(n)(5)(C)(ii) of the Code, the term "Employee" shall not include those leased
employees covered by a "safe harbor" plan described in section 414(n)(5)(B) of
the Code; and

               1.18.3. when required for purposes of crediting Hours of Service,
a former Employee.

         1.19. "Employer" means the Sponsor and:
                --------

               1.19.1. any other employer included with the Sponsor in a
controlled group of corporations or trades or businesses within the meaning of
section 414(b) or section (c) of the Code, or an affiliated service group within
the meaning of section 414(m) of the Code; and

               1.19.2. any other entity required to be aggregated with the
Sponsor pursuant to regulations under section 414(o) of the Code;

provided that any such employer shall be included within the term "Employer"
only while a member of such a group including the Sponsor.

         1.20. "Employer Stock" means common shares of the Sponsor which qualify
as "employer securities" within the meaning of section 409(1) of the Code and
"qualifying employer securities" within the meaning of ERISA section 407(d)(5).

         1.21. "Employer Stock Fund" means an Investment Fund comprised
primarily of Employer Stock.

         1.22. "Employment Commencement Date" means the date on which an
Employee first performs an Hour of Service for an Employer or, if the sponsor of
a Merged Plan is not an Employer, for the sponsor of a Merged Plan.

                                       6
<PAGE>

         1.23. "ERISA" means the Employee Retirement Income Security Act of
1974, as amended.

         1.24. "ESOP Stock" means Employer Stock acquired with the proceeds of
an Exempt Loan, as defined in Supplement A.

         1.25. "Excess Aggregate Contributions" means that amount of Matching
Contributions made on behalf of a Participant for a Plan Year that exceeds the
limitation on Matching Contributions set forth in section 401(m) of the Code.

         1.26. "Excess Contributions" means that amount of a Participant's
Elective Deferral Contribution for a Plan Year that exceeds the limitation on
Elective Deferral Contributions set forth in section 401(k) of the Code.

         1.27. "Excess Elective Deferrals" means that amount of a Participant's
"elective deferrals," as defined in section 402(g)(3) of the Code, for his
taxable year, including his Elective Deferral Contributions under the Plan that
exceed the dollar limitation on "elective deferrals" under section 402(g) of the
Code.

         1.28. "Five-Percent Owner" means any Employee who owns (or is
considered as owning within the meaning of section 318 of the Code) more than 5%
of the outstanding stock of any Participating Employer or stock possessing more
than 5% of the total combined voting power of all stock of any Participating
Employer or, if a Participating Employer is not a corporation, any person who
owns more than 5% of the capital or profits interest in a Participating
Employer. For purposes of this Section, section 318(a)(2)(C) of the Code shall
be applied by substituting "5%" for "50%" each time it appears therein.

         1.29. "Former Key Employee" means an Employee or former Employee who is
a Non-Key Employee with respect to the Plan for the Plan Year if such individual
was a Key Employee with respect to the Plan for any prior Plan Year.

         1.30. "Fund" means the assets and all income, gains and losses thereon
held by the Trustee under the trust agreement for the exclusive benefit of
Participants and their Beneficiaries.

         1.31. "Highly Compensated Employee" means any Employee who:
                ---------------------------

               1.31.1. was a Five-Percent Owner at any time during the year or
the preceding year; or

               1.31.2. for the preceding year had Compensation from the Employer
in excess of $85,000 (as adjusted under section 414(q) of the Code).

         1.32. "Hour of Service" means each hour for which an Employee is paid,
or entitled to payment, for the performance of duties for the Employer.

         1.33. "Investment Fund" means one of the investment funds made
available by the Committee, in which the Participant may elect to invest all or
a portion of his Account pursuant to Article XI.

         1.34. "Key Employee" means an Employee or former Employee (whether
living or deceased) with respect to the Plan Year, who at any time during the
Plan Year that includes the Determination Date or any of the four preceding Plan
Years is (or was):

                                       7
<PAGE>

               1.34.1. an officer of the Employer who receives Compensation
greater than 50% of the amount in effect under section 415(b)(1)(A) of the Code
for such Plan Year; provided that in no event shall the number of individuals
treated as officers exceed 50 employees, or, if it would result in a smaller
number of officers, the greater of three employees or 10% of the total number of
employees;

               1.34.2. one of the 10 Employees having annual Compensation from
the Employer of more than the maximum dollar limitation of section 415(c)(1)(A)
of the Code and owning (or considered as owning within the meaning of section
318 of the Code) the largest interest in the Employer, provided that such
interest is more than 0.5% of the ownership interest in the Employer. For
purposes of this Section, section 318(a)(2)(C) of the Code shall be applied by
substituting "5%" for "50%" each time it appears therein. If an Employee's
ownership interest changes during a Plan Year, his ownership interest for the
year is the largest interest owned at any time during the Plan Year. If two
Employees have the same ownership interest in the Employer during the five Plan
Years ending on the Determination Date, the Employee having the larger annual
Compensation from the Employer for the Plan Year during any part of which that
ownership interest existed shall be treated as having a larger interest;

               1.34.3. a Five-Percent Owner; or

               1.34.4. a person who has annual Compensation from the Employer of
more than $150,000 and who would be classified as a "Five-Percent Owner" if "1%"
were substituted for "5%" each time it appears in the definition of such term.

For purposes of determining ownership in the Employer under this Section, the
employer aggregation rules of sections 414(b), 414(c) and 414(m) of the Code
shall not apply.

         1.35. "Limitation Year" means the Plan Year.
                ---------------

         1.36. "Matching Contribution" means a contribution to the Plan made by
a Participating Employer pursuant to a matching formula and allocated to a
Participant's Matching Contribution Account.

         1.37. "Merged Plan" means the retirement plans listed on Appendix A,
either individually or collectively as the case may be.

         1.38. "Non-Highly Compensated Employee" means an Employee who is not a
Highly Compensated Employee.

         1.39. "Non-Key Employee" means any Participant in the Plan (including a
Beneficiary of such Participant) who is not a Key Employee with respect to the
Plan for the Plan Year.

         1.40. "Normal Retirement Date" means the date a Participant reaches age
65.

         1.41. "Participant" means an Employee who has met the eligibility
requirements of Article II and who has elected to participate in the Plan or who
otherwise has an Account under the Plan. An individual who qualifies as a
Participant shall continue to be a Participant until all benefits due him under
the Plan have been paid.

         1.42. "Participating Employer" means the Sponsor and each other
Employer that, with the approval of the Sponsor, has joined the Plan.

         1.43. "Permissive Aggregation Group" means:
                ----------------------------

                                       8
<PAGE>

               1.43.1. each Defined Benefit Plan or Defined Contribution Plan
included in a Required Aggregation Group; and

               1.43.2. any other Defined Benefit Plan or Defined Contribution
Plan if the group of plans consisting of such plan and the plan or plans
included in the Required Aggregation Group, when considered as a single plan,
meets the requirements of sections 401(a)(4) and 410 of the Code.

         1.44. "Plan" means the Stock Purchase Savings Plan of Covance Inc., a
profit sharing plan, as set forth in this document ---- and in the related trust
agreement pursuant to which the Trust is maintained.

         1.45. "Plan Year" means the 12-month period ending each December 31.
                ---------

         1.46. "Qualified Matching Contribution" means a Matching Contribution
made to the Plan by a Participating Employer and allocated to a Participant's
Qualified Matching Contribution Account that:

               1.46.1. is 100% vested and nonforfeitable when made; and

               1.46.2. is subject to the distribution restrictions of section
401(k)(2) of the Code.

         1.47. "Qualified Nonelective Contribution" means a contribution made to
the Plan by a Participating Employer and allocated to a Participant's Qualified
Nonelective Contribution Account that:

               1.47.1. the Participant may not elect to receive in cash until
distributed from the Plan;

               1.47.2. is 100% vested and nonforfeitable when made; and

               1.47.3. is subject to the distribution restrictions of section
401(k)(2) of the Code.

         1.48. "Reemployment Commencement Date" means the first date on which an
Employee again performs an Hour of Service following a Period of Severance.

         1.49. "Required Aggregation Group" means:
                --------------------------

               1.49.1. each Defined Benefit Plan or Defined Contribution Plan in
which a Key Employee participated (regardless of whether such plan has been
terminated) during the five Plan Years ending on the Determination Date; and

               1.49.2. each other Defined Benefit Plan or Defined Contribution
Plan that enables any plan described in the preceding subsection to meet the
requirements of section 401(a)(4) or section 410 of the Code, including any such
plan terminated within the five-year period ending on the Determination Date.

         1.50. "Required Beginning Date" means April 1 of the calendar year
following the later of:

               1.50.1. the calendar year in which the Participant reaches age 70
1/2; or

                                       9
<PAGE>

               1.50.2. the calendar year in which the Participant retires;
provided, that this subsection shall not apply in the case of a Participant who
is a Five-Percent Owner with respect to the Plan Year ending in the calendar
year in which the Participant attains age 70 1/2.

         1.51. "Rollover Contribution" means a Participant's rollover
contribution or trustee-to-trustee transfer made to his Rollover Contribution
Account.

         1.52. "Severance from Service Date" means the date on which an Employee
quits, retires, is discharged or dies, provided he does not earn an Hour of
Service with the Employer within 12 months after such date, or the first
anniversary of the date an Employee is absent from service for any other reason,
such as disability, leave of absence or layoff. Notwithstanding the foregoing, a
former Employee who is receiving salary continuation payments from a
Company-sponsored severance program or arrangement shall not incur a Severance
from Service Date for purposes of vesting while receiving such payments.

         1.53. "Savings Contribution" means a Participant's voluntary, after-tax
contributions made to the Plan or to a Merged Plan before December 31, 1996.

         1.54. "Sponsor" means Covance Inc.
                -------

         1.55. "Top-Heavy Group" means an Aggregation Group in which, as of the
Determination Date, the sum of:

               1.55.1. the aggregate of the Account Balances of Key Employees
under all Defined Contribution Plans included in the Aggregation Group, and

               1.55.2. the aggregate of the present value of cumulative accrued
benefits for Key Employees under all Defined Benefit Plans included in the
Aggregation Group, exceeds 60% of a similar sum determined for all Employees
included in the Aggregation Group.

         1.56. "Top-Heavy Plan" means the Plan, if as of the Determination Date:

               1.56.1. the aggregate of the Account Balances of Key Employees
exceeds 60% of the aggregate of the Account Balances of all Employees; or

               1.56.2. the Plan is part of a Required Aggregation Group that is
a Top-Heavy Group.

Notwithstanding the preceding sentence, the Plan shall not be considered a
Top-Heavy Plan for any Plan Year in which the Plan is a part of a Required
Aggregation Group or a Permissive Aggregation Group that is not a Top-Heavy
Group.

         1.57. "Total and Permanent Disability" means a disability that renders
a Participant totally and permanently unable to satisfactorily perform his usual
duties for his Employer or the duties of such other position which the Employer
makes available to him and for which he is qualified by reason of his training,
education or experience, as determined by the Committee, in its sole discretion.
Such determination shall be made by the Committee based on medical reports and
such other evidence which the Committee determines to be satisfactory; provided,
however, that conclusive evidence that the Participant is eligible for and is
receiving disability benefits under the provisions of the Federal Social
Security Act shall be sufficient to deem the Participant totally and permanently
disabled.

                                       10
<PAGE>

         1.58. "Trust" means the legal entity created by the trust agreement
between the Sponsor and the Trustee, fixing the rights and liabilities with
respect to controlling and managing the Fund for purposes of the Plan.

         1.59. "Trustee" means the trustee or trustees named in the trust
agreement and any amendment thereto.

         1.60. "Valuation Date" means the close of each business day.
                --------------

         1.61. "Year of Service" means:
                ---------------

               1.61.1. As of any date, the aggregate of an Employee's periods of
vesting service, as determined under this Section. For purposes of this Section,
a period of vesting service is each 12 consecutive month period of time
commencing on the Employee's Employment Commencement Date, or any subsequent
Reemployment Commencement Date, and ending on a Severance from Service Date.

               1.61.2. Vesting service shall also include the following:

                      1.61.2.1.     Periods of employment with an Employer other
               than as an Employee, including employment as a leased employee
               within the meaning of Code Section 414(n), which would have
               constituted vesting service had the Participant been employed as
               an Employee shall be included as if such periods had been
               performed as an Employee.

                      1.61.2.2.     With respect to any person employed by the
               Employer on or before December 31, 1998, periods of employment
               with Corning Incorporated or Corning Clinical Laboratories, Inc.
               (formerly Corning Life Sciences, Inc.) that would have been
               counted as vesting service under the terms of the Plan if such
               service was rendered to the Employer as an Employee.

                      1.61.2.3.     Former Employees who are receiving salary
               continuation payments from the Company, either through the
               Covance Inc. Severance Pay Plan or another Company-sponsored
               severance program or arrangement, shall be credited with vesting
               service for the period of time beginning with the first salary
               continuation payment on or after June 1, 2001 and ending of the
               date on which the last salary continuation payment from the
               Company is issued.

               1.61.3. Years of Service recognized under the preceding sections
shall not include any vesting service earned prior to a five-year Period of
Severance if, when the Period of Severance commenced, the Employee had not yet
earned any vested interest in his New Matching Contribution Account or his
Discretionary Contribution Account.

               1.61.4. For an employer that becomes a Participating Employer or
a division of a Participating Employer, the extent, if any, to which the service
of employees of the employer before it becomes a Participating Employer or a
division of a Participating Employer is counted in determining Years of Service
for any purpose under the Plan shall be: (i) as required by law and (ii) to the
extent not required by law, as determined by the Board of Directors.

                                       11
<PAGE>

                            ARTICLE II. PARTICIPATION
                            -------------------------

         2.1.  Eligibility Requirements. Except as provided in Section 2.3, an
Employee shall be eligible to participate in the Plan beginning on the date on
which he completes an Hour of Service with an Employer. Notwithstanding the
foregoing, an Employee shall become eligible to receive Matching Contributions
under Section 3.2 after completing one-half Year of Service with an Employer.

         2.2.  Election to Make Elective Deferral Contributions . An Employee
who is eligible to participate in the Plan may elect to make Elective Deferral
Contributions to the Plan by filing an election to participate in the form
designated by the Committee. His election shall authorize the appropriate
Participating Employer to withhold the percentage of his Compensation to be paid
into his Elective Deferral Contribution Account and provide such additional
information as the Committee may reasonably require. Such election shall be
effective in accordance with procedures established by the Committee.

         2.3.  Ineligible Employees . Each of the following Employees shall be
ineligible to participate in the Plan:

               2.3.1. an Employee who is employed by an Employer that is not a
Participating Employer;

               2.3.2. an Employee who is a member of a unit of Employees as to
which there is evidence that retirement benefits were the subject of good faith
collective bargaining, unless a collective bargaining agreement covering those
Employees provides for their participation in the Plan;

               2.3.3. a leased employee, within the meaning of section 414(n)(2)
of the Code;

               2.3.4. an Employee who is a non-resident alien and who has no
income from sources within the United States;

               2.3.5. an individual who has been classified by a Participating
Employer as an independent contractor, notwithstanding a contrary determination
by any court or governmental agency; and

               2.3.6. an individual who receives compensation solely for service
as a member of the board of directors of an Employer.

         2.4.  Participation Following Termination of Employment . A rehired
Employee shall be eligible to participate in the Plan in accordance with Section
2.1.

         2.5.  Time of Participation - Excluded Employees . An Employee
otherwise eligible to be a Participant in the Plan, but excluded under Section
2.3, shall be eligible to become a Participant beginning on the date upon which
the applicable provision of Section 2.3 ceases to apply. A Participant who
becomes subject to any provision of Section 2.3 shall cease to be eligible to
make or receive contributions under the Plan as of the last day of the payroll
period during which any such provision becomes applicable.

                                       12
<PAGE>

                           ARTICLE III. CONTRIBUTIONS
                           --------------------------

         3.1.  Participant Contributions.
               -------------------------

               3.1.1. Elective Deferral Contributions. Each Participant may
elect to have his Compensation, for the remainder of the Plan Year and
thereafter until his election is amended or revoked, reduced by a whole
percentage that is not less than 1% nor more than 15%, and the amount paid into
his Elective Deferral Contribution Account. Notwithstanding the preceding
sentence, with respect to a Participant who is a Highly Compensated Employee,
the Elective Deferral Contributions of such a Participant may not exceed any
maximum deferral percentage set from time to time by the Committee in order for
the Plan to satisfy the actual deferral percentage test under Section 3.4 for
the Plan Year. If a Participant makes a hardship withdrawal of his Elective
Deferral Contributions, he shall be prohibited from making Elective Deferral
Contributions for 12 months after the receipt of the hardship withdrawal. In
such case, the Participant's Elective Deferral Contributions shall recommence
only upon the Participant's affirmative election following the end of such 12
month period.

                      3.1.1.1.      Election to Change Rate of Elective Deferral
               Contributions. The percentage designated by a Participant as a
               rate of contribution with respect to his Elective Deferral
               Contributions shall automatically apply to increases and
               decreases in his rate of Compensation. Except as provided in
               Section 3.1.1.2, a Participant may elect to change the rate of
               his Elective Deferral Contributions to any other permissible rate
               once per month, in accordance with procedures established by the
               Committee. Any such election shall be effective as of the first
               day of the first payroll period coincident with or next following
               the date on which it is processed.

                      3.1.1.2.      Suspension and Resumption of Elective
               Deferral Contributions. A Participant may suspend his Elective
               Deferral Contributions, in accordance with procedures established
               by the Committee, as of the first day of the first payroll period
               coincident with or next following the date on which the request
               is processed. Such Participant may elect to resume Elective
               Deferral Contributions, in accordance with procedures established
               by the Committee.

               3.1.2. Rollover Contributions. With the approval of the
Committee, an Employee, including one who has not yet satisfied the requirements
for eligibility of Section 2.1 but excluding any Employee who is ineligible
under Section 2.3, may establish a Rollover Contribution Account, which shall
consist of amounts:

                      3.1.2.1.      distributed to the Employee from either an
               employee pension plan that is qualified under section 401(a) of
               the Code, or an individual retirement arrangement described in
               section 408(d)(3)(A)(ii) of the Code, that is rolled over into
               the Plan pursuant to section 402(c) or section 408(d)(3)(A)(ii)
               of the Code, whichever is applicable; or

                      3.1.2.2.      transferred (in accordance with section
               401(a)(31) of the Code and with the approval of the Committee)
               directly from the trustee or custodian of another qualified
               employee pension plan that is qualified under section 401(a) of
               the Code to the Trustee in the form acceptable to the Trustee.

The amount contributed to such Rollover Contribution Account shall exclude an
amount equal to the Participant's after-tax contributions to the qualified plan
and shall be made within 60 days after the Participant's receipt of the
distribution. The Committee's approval of a rollover or transfer contribution
under this Section shall be granted in a uniform and nondiscriminatory manner.

         3.2.  Participating Employer Contributions.
               ------------------------------------

               3.2.1. Matching Contributions. Each calendar quarter of the Plan
Year each Participating Employer shall contribute on behalf of each Participant
employed by it an amount equal to 300% of such Participant's Elective Deferral

                                       13
<PAGE>

Contributions for the quarter up to 1% of Deferral Compensation for the quarter
and 50% of such Participant's Elective Deferral Contributions for the quarter up
to the next 5% of Deferral Compensation for the quarter.

               3.2.2. Qualified Matching Contributions. If the limitation on
Elective Deferral Contributions set forth in Section 3.4.1 or the limitation on
Matching Contributions set forth in Section 3.5.1 is exceeded, at the direction
of the Committee a Participating Employer shall make Qualified Matching
Contributions to the Qualified Matching Contribution Account of each Participant
who is a Non-Highly Compensated Employee in the amount necessary to meet the
limitation set forth in such Sections. Qualified Matching Contributions shall be
treated as Elective Deferral Contributions or Matching Contributions as
determined by the Committee for all purposes of the Plan.

               3.2.3. Qualified Nonelective Contributions. If the limitation on
Elective Deferral Contributions set forth in Section 3.4.1 or the limitation on
Matching Contributions set forth in Section 3.5.1 is exceeded, at the direction
of the Committee a Participating Employer shall make Qualified Nonelective
Contributions to the Qualified Nonelective Contribution Account of each eligible
Non-Highly Compensated Employee in the amount necessary to meet the limitation
set forth in such Sections. Qualified Nonelective Contributions shall be treated
as Elective Deferral Contributions or Matching Contributions as determined by
the Committee for all purposes of the Plan. Such contributions shall be
allocated in the proportion that each eligible Non-Highly Compensated Employee's
Compensation bears to the total Compensation of all such eligible Employees.

               3.2.4. Discretionary Contributions.
                      ---------------------------

                      3.2.4.1.      Amount of Discretionary Contributions. For
               each Plan Year each Participating Employer shall contribute to
               the respective Discretionary Contribution Accounts of
               Participants who are entitled to an allocation under Section
               3.2.4.3 such amount for its taxable year ending with or within
               such Plan Year as the board of directors of the Participating
               Employer may determine. Such Discretionary Contribution shall not
               exceed the lesser of the amount deductible under section 404 of
               the Code, or the amounts that are allowable as Annual Additions.

                      3.2.4.2.      Allocation of Discretionary Contribution.
               Each Participating Employer's contribution under this Section
               3.2.4 shall be allocated to each Participant who is entitled to
               an allocation under Section 3.2.4.3 on the last Valuation Date of
               the Plan Year in the proportion that each such Participant's
               Compensation bears to the total Compensation of all such
               Participants for the Plan Year.

                      3.2.4.3.      Participants Entitled to Allocations. The
               following Participants shall be entitled to receive an allocation
               of the Discretionary Contribution:

                                    (i)    each Participant who is employed by
                      the Participating Employer on the last business day of the
                      Plan Year, and

                                    (ii)   a former Employee who was a
                      Participant during the Plan Year in question, and whose
                      employment terminated during such Plan Year by reason of
                      retirement, death or Total and Permanent Disability,
                      without regard to whether he was an Employee on the last
                      business day of the Plan Year.

                                       14
<PAGE>

               3.2.5. Corrective Payment. If as a result of any action or
inaction by a Participating Employer or other Plan fiduciary the earnings
credited to the accounts of Participants are less than the amount that would
have been credited absent such action or inaction, such Participating Employer
or Plan fiduciary may make a corrective payment to the Plan. Any such corrective
payment shall be limited to the earnings that would have otherwise been credited
to these accounts and shall be allocated only to the affected Participants. Such
payment shall be treated as earnings, and not as a contribution for purposes of
the Plan.

         3.3.  Maximum Deferral . Notwithstanding any other provision of this
Plan to the contrary, the Plan (and any other plan maintained by the Employer)
shall not accept Elective Deferral Contributions for any taxable year of a
Participant in excess of $10,500, as adjusted under section 402(g) of the Code.
For the taxable year following the taxable year in which a Participant receives
a hardship withdrawal, the amount determined under the preceding sentence shall
be reduced by the amount of such Participant's Elective Deferral Contributions
for the taxable year during which the hardship withdrawal occurs.

               3.3.1. Distribution of Excess Elective Deferrals. If a
Participant has Excess Elective Deferrals for a taxable year of that
Participant, the Participant may, by March 1 of the following taxable year,
notify the Committee that the Participant elects to withdraw all or any portion
of such Excess Elective Deferrals, plus any income and minus any loss allocable
thereto, from this Plan, even though the amounts contributed to this Plan as
Elective Deferral Contributions for that Participant did not, in themselves,
result in an Excess Elective Deferral. If the Participant makes such an
election, the amount determined in accordance with the preceding sentence will
be distributed to the Participant no later than the April 15 following the date
of that election, notwithstanding any other provision of this Plan. The amount
of Excess Elective Deferrals that may be distributed with respect to a
Participant for a taxable year must first be reduced by any Excess Contributions
previously distributed with respect to such Participant for the Plan Year
beginning with or within the taxable year. If any Elective Deferral
Contributions returned under this Section were matched by Employer Matching
Contributions or Qualified Matching Contributions, those Employer Matching
Contributions and Qualified Matching Contributions shall be forfeited.

               3.3.2. Determination of Income or Loss. The income or loss
allocable to a Participant's Excess Elective Deferrals for the Participant's
taxable year calculated for such taxable year and for the period from the end of
such taxable year to the date of distribution shall be determined by using the
same method as is used by the Plan for allocating income or loss to
Participant's Accounts.

         3.4.  Limitation on Elective Deferral Contributions - Code Section
401(k).

               3.4.1. Notwithstanding any provision of this Plan to the
contrary, Elective Deferral Contributions shall be limited as provided in
section 401(k) of the Code, so that the "average deferral percentage," as
defined below for the eligible Highly Compensated Employees for the Plan Year,
shall bear a relationship to the "average deferral percentage" for the eligible
Non-Highly Compensated Employees for the Plan Year that meets one of the
alternative tests described in section 401(k) of the Code and summarized below,
as the Committee shall determine:

                                       15
<PAGE>

                      3.4.1.1.      the average deferral percentage for the
               eligible Highly Compensated Employees shall not exceed 125% of
               the average deferral percentage for the eligible Non-Highly
               Compensated Employees; or

                      3.4.1.2.      the average deferral percentage for the
               eligible Highly Compensated Employees shall not exceed the lesser
               of:

                                    (i)    200% of the average deferral
                      percentage for the eligible Non-Highly Compensated
                      Employees, or

                                    (ii)   the average deferral percentage for
                      the eligible Non-Highly Compensated Employees plus two
                      percentage points.

               3.4.2. The term "average deferral percentage" means the average
of each eligible Employee's actual deferral percentage which is equal to the
following ratio:

                      3.4.2.1.      the amount of each eligible Employee's
               Elective Deferral Contribution allocated to the Fund on behalf of
               such Employee for the applicable Plan Year, to

                      3.4.2.2.      the Employee's Compensation for the
               applicable Plan Year.

For the Plan Year in which an Employee becomes eligible, resumes eligibility or
ceases to be eligible to make Elective Deferral Contributions, the only
Compensation that shall be taken into account is that which is, or but for his
election under Section 3.1 would be, received by him while he is eligible to
participate.

               3.4.3. Treatment of Excess Contributions. If neither test
described in Section 3.4.1 is met, or in the Committee's opinion will be met,
the Committee, at its discretion, shall:

                      3.4.3.1.      direct that the amount of future Elective
               Deferral Contributions by the Highly Compensated Employees be
               reduced by any reasonable method, including first reducing the
               Elective Deferral Contributions by those Highly Compensated
               Employees contributing the greatest percentage of their
               Compensation to the next highest percentage, then reducing the
               Elective Deferral Contributions by all Highly Compensated
               Employees contributing at the highest remaining percentage,
               including those subject to previous reductions, and continuing to
               apply the same reduction to the extent necessary to meet one of
               the tests; or

                      3.4.3.2.      cause one or more Participating Employers to
               make Qualified Nonelective Contributions to the Qualified
               Nonelective Contribution Account of each eligible Non-Highly
               Compensated Employee to the extent necessary to meet one of the
               tests, provided such Participating Employers authorize such
               contributions; or

                      3.4.3.3.      cause one or more Participating Employers to
               make Qualified Matching Contributions to the Qualified Matching
               Contribution Account of each Participant who is a Non-Highly
               Compensated Employee to the extent necessary to meet one of the
               tests, provided such Participating Employers authorize such
               contributions; or

                                       16
<PAGE>

                      3.4.3.4.      cause the Excess Contributions, adjusted for
               any income or loss, to be distributed to the Highly Compensated
               Employees on whose behalf such Excess Contributions were made
               within 12 months after the end of the Plan Year for which they
               were allocated. The amount of Excess Contributions to be
               distributed with respect to any Highly Compensated Employee for a
               Plan Year shall first be reduced by any Excess Elective Deferrals
               previously distributed to such Highly Compensated Employee for
               such Plan Year.

               3.4.4. Determination of Amount of Excess Contributions. The
amount of a Highly Compensated Employee's Excess Contributions for a Plan Year
is the amount necessary to reduce the amount of his Elective Deferral
Contributions to a maximum adjusted percentage, which shall be the highest
percentage that would cause one of the tests in Section 3.4.1 to be met if each
such Highly Compensated Employee who had an actual deferral percentage greater
than the maximum adjusted percentage had, instead, such lower percentage. The
aggregate amount of Excess Contributions on behalf of all Highly Compensated
Employees shall be distributed as follows:

                      3.4.4.1.      the Elective Deferral Contributions of the
               Highly Compensated Employee(s) with the highest dollar amount of
               Elective Deferral Contributions are reduced by the amount
               required to cause that Highly Compensated Employee's Elective
               Deferral Contributions to equal the dollar amount of the Elective
               Deferral Contributions of the Highly Compensated Employee(s) with
               the next highest dollar amount of Elective Deferral
               Contributions; provided, however, if a lesser reduction, when
               added to the total dollar amount already distributed under this
               Section, would equal the aggregate Excess Contributions the
               lesser reduction amount shall be distributed; and

                      3.4.4.2.      if the total amount distributed under
               Section 3.4.4.1 is less than the aggregate Excess Contributions,
               the process set forth in Section 3.4.4.1 shall be repeated.

               3.4.5. Determination of Income or Loss . The income or loss
allocable to Excess Contributions for the Plan Year calculated for such Plan
Year and for the period from the end of the Plan Year to the date of
distribution shall be determined by using the same method as is used by the Plan
for allocating income or loss to Participants' Accounts.

         3.5.  Limitation on Matching Contributions - Code Section 401(m).
               ----------------------------------------------------------

               3.5.1. Notwithstanding any provision of this Plan to the
contrary, Matching Contributions shall be limited as provided in section 401(m)
of the Code, so that the "average contribution percentage," as defined below,
for the eligible Highly Compensated Employees for the Plan Year shall bear a
relationship to the "average contribution percentage" for the eligible
Non-Highly Compensated Employees that meets one of the alternative tests
described in section 401(m) of the Code and summarized below, as the Committee
shall determine:

                      3.5.1.1.      the average contribution percentage for the
               eligible Highly Compensated Employees for such Plan Year shall
               not exceed 125% of the average contribution percentage for the
               eligible Non-Highly Compensated Employees for the Plan Year; or

                      3.5.1.2.      the average contribution percentage for the
               eligible Highly Compensated Employees for such Plan Year shall
               not exceed the lesser of:

                                       17
<PAGE>

                                    (i)    200% of the average contribution
                      percentage for the eligible Non-Highly Compensated
                      Employees for the Plan Year, or

                                    (ii)   the average contribution percentage
                      for the eligible Non-Highly Compensated Employees for the
                      Plan Year plus two percentage points.

               3.5.2. The term "average contribution percentage" means the
average of each eligible Employee's actual contribution percentage that is equal
to the following ratio:

                      3.5.2.1.      the amount of Matching Contributions
               allocated on behalf of each eligible Employee for the Plan Year,
               to

                      3.5.2.2.      the Employee's Compensation for the Plan
               Year.

For the Plan Year in which an Employee becomes eligible, resumes eligibility or
ceases to be eligible to receive Matching Contributions, the only Compensation
that shall be taken into account is that which is, or but for the Employee's
election under Section 3.1 would be, received by the Employee while he is
eligible to participate.

               3.5.3. Treatment of Excess Aggregate Contributions. If neither
test described in Section 3.5.1 is met, or in the Committee's opinion will be
met, the Committee, at its discretion, shall:

                      3.5.3.1.      cause one or more Participating Employers to
               make Qualified Matching Contributions to the Qualified Matching
               Contribution Account of each Participant who is a Non-Highly
               Compensated Employee to the extent necessary to meet one of the
               tests, provided such Participating Employers authorize such
               contributions; or

                      3.5.3.2.      cause one or more Participating Employers to
               make Qualified Nonelective Contributions to the Qualified
               Nonelective Contribution Account of each eligible Non-Highly
               Compensated Employee to the extent necessary to meet one of the
               tests, provided such Participating Employers authorize such
               contributions; or

                      3.5.3.3.      cause Excess Aggregate Contributions,
               adjusted for income or loss thereon, to be forfeited, if
               otherwise forfeitable under the terms of the Plan, or if not
               forfeitable, distributed as additional Compensation to
               Participants on whose behalf the Excess Aggregate Contributions
               were contributed within 12 months after the end of the Plan Year
               for which they were contributed; provided, however, that any
               forfeiture under this Section 3.5.3.3 shall not be allocated to
               the Account of any Participant from whose Account such forfeiture
               occurred.

               3.5.4. Determination of Amount of Excess Aggregate Contributions.
The amount of a Highly Compensated Employee's Excess Aggregate Contributions for
a Plan Year is the amount necessary to reduce the amount of his Matching
Contributions to a maximum adjusted percentage, which shall be the highest
percentage that would cause one of the tests in Section 3.5.1 to be met if each
such Highly Compensated Employee who had an actual contribution percentage
greater than the maximum adjusted percentage had, instead, such lower
percentage. The aggregate amount of Excess Aggregate Contributions on behalf of
all Highly Compensated Employees shall be distributed as follows:

                                       18
<PAGE>

                      3.5.4.1.      the Matching Contributions of the Highly
               Compensated Employee(s) with the highest dollar amount of
               Matching Contributions are reduced by the amount required to
               cause that Highly Compensated Employee's Matching Contributions
               to equal the dollar amount of Matching Contributions of the
               Highly Compensated Employee(s) with the next highest dollar
               amount of Matching Contributions; provided, however, if a lesser
               reduction, when added to the total dollar amount already
               distributed under this Section 3.5.4.1, would equal the aggregate
               Excess Aggregate Contributions the lesser reduction amount shall
               be distributed; and

                      3.5.4.2.      if the total amount adjusted under Section
               3.5.4.1 is less than the aggregate Excess Aggregate
               Contributions, the process set forth in Section 3.5.4.1 shall be
               repeated.

               3.5.5. Determination of Income or Loss. The income or loss
allocable to Excess Aggregate Contributions for the Plan Year calculated for
such Plan Year and for the period from the end of the Plan Year to the date of
distribution shall be determined by using the same method as is used by the Plan
for allocating income or loss to Participants' Accounts.

         3.6.  Aggregate Limitation on Contributions.
               -------------------------------------

               The limitation on Elective Deferral Contributions under Section
3.4.1 or the limitation on Matching Contributions under Section 3.5.1 shall be
reduced, as determined by the Committee, to the extent necessary so that the sum
of the average deferral percentage (as determined under Section 3.4) and the
average contribution percentage (as determined under Section 3.5), for the
eligible Highly Compensated Employees during the Plan Year does not exceed the
"aggregate limit" on Elective Deferral Contributions and Matching Contributions
determined under this Section. The "aggregate limit" shall be the greater of:

               3.6.1. the sum of:

                      3.6.1.1.      125% of the greater of:

                                    (i)    the average deferral percentage of
                      the eligible Non-Highly Compensated Employees for the Plan
                      Year, or

                                    (ii)   the average contribution percentage
                      of the eligible Non-Highly Compensated Employees for the
                      Plan Year, and

                      3.6.1.2.      two plus the lesser of the amount determined
               under subsection (i) or (ii) immediately above, but not more than
               200% of such lesser amount; or

               3.6.2. the sum of:

                      3.6.2.1.      125% of the lesser of:

                                    (i)    the average deferral percentage of
                      the eligible Non-Highly Compensated Employees for the Plan
                      Year, or

                                    (ii)   the average contribution percentage
                      of the eligible Non-Highly Compensated Employees for the
                      Plan Year, and

                                       19
<PAGE>

                      3.6.2.2.      two plus the greater of the amount
               determined under subsection (i) or (ii) immediately above, but
               not more than 200% of such greater amount.

         3.7.  Plan Aggregation; Special Rule.
               ------------------------------

               3.7.1. The average deferral percentage and the average
contribution percentage for an eligible Employee who is a Highly Compensated
Employee for the Plan Year and who is eligible to have Elective Deferral
Contributions or Matching Contributions allocated to his accounts under two or
more plans described in section 401(a) of the Code or arrangements described in
section 401(k) of the Code that are maintained by the Employer, shall be
determined as if all such Elective Deferral Contributions and Matching
Contributions were made under a single arrangement.

               3.7.2. For purposes of satisfying the limitation on Elective
Deferral Contributions of Section 3.4 and the limitation on Matching
Contributions of Section 3.5, in the event that this Plan satisfies the
requirements of sections 410(b) or 401(a)(4) of the Code only if aggregated with
one or more other plans, or if one or more other plans satisfy the requirements
of sections 410(b) or 401(a)(4) of the Code only if aggregated with this Plan,
then average deferral percentages and average contribution percentages of
eligible Employees shall be determined as if all such plans were a single plan.

               3.7.3. The determination and treatment of the average deferral
percentage and the average contribution percentage of any Participant shall
satisfy such other requirements as may be prescribed by the Secretary of the
Treasury.

         3.8.  Recovery of Participating Employer Contributions.
               ------------------------------------------------

               A Participating Employer may recover its contributions made under
the Plan as follows:

               3.8.1. If a contribution is made by the Participating Employer
under a mistake of fact, the excess of the amount contributed over the amount
that would have been contributed had there not occurred a mistake of fact may be
recovered by the Participating Employer within one year after payment of the
contribution.

               3.8.2. Participating Employer contributions are conditioned upon
their deductibility under section 404 of the Code; therefore the contribution
attributable to any Plan Year as to which deductibility is disallowed may be
recovered, to the extent of the amount of the disallowance, within one year
after the disallowance.

Income and gains attributable to the excess contribution in the case of a
mistake of fact or a disallowed deduction may not be recovered by the
Participating Employer. Losses attributable to such contribution shall reduce
the amount the Participating Employer may recover.

                        ARTICLE IV. CREDITS TO ACCOUNTS.
                        --------------------------------

         4.1.  Maintenance of Accounts . The Committee shall maintain, or cause
to be maintained, for each Participant an Elective Deferral Contribution
Account, a Matching Contribution Account, an ESOP Account, a Discretionary
Contribution Account, a Prior Plan Account, a Qualified Matching Contribution
Account, a Qualified Nonelective Contribution Account, and a Rollover
Contribution Account, with appropriate sub-accounts, as applicable.

                                       20
<PAGE>

         4.2.  Payment and Allocation of Contributions and Forfeitures.
               -------------------------------------------------------

               4.2.1. Participant Contributions. Elective Deferral Contributions
shall be paid over by the Participating Employers to the Trustee as of the
earliest date on which such Elective Deferral Contributions can reasonably be
segregated from the Participating Employer's general assets, but in no event
later than the 15th business day of the month following the month in which such
amounts would otherwise have been payable to the Participant in cash. Elective
Deferral Contributions shall be allocated to Participants' Accounts no later
than the time required by the Code.

               4.2.2. Participating Employer Matching Contributions. Matching
Contributions shall be paid to the Trustee within the time prescribed by the
Code as the time within which contributions must be made in order to constitute
an allowable Federal income tax deduction for the Employer's taxable year for
which the contribution is made. Such Matching Contributions shall be allocated
to Participants' Accounts no later than the time required by the Code. Matching
Contributions allocated to Participants' New Matching Contribution Accounts on
or after December 31, 1996 will be invested 100% in the Employer Stock Fund.

               4.2.3. Qualified Matching Contributions. Payment of the
Participating Employers' Qualified Matching Contributions shall be made within
the time prescribed by the Code as the time within which contributions must be
made in order to constitute an allowable Federal income tax deduction for the
Employer's taxable year for which the contribution is made. Such contributions
shall be allocated to Participants' Accounts no later than the time required by
the Code.

               4.2.4. Qualified Nonelective Contributions. Payment of the
Participating Employers' Qualified Nonelective Contributions shall be made
within the time prescribed by the Code as the time within which contributions
must be made in order to constitute an allowable Federal income tax deduction
for the Employer's taxable year for which the contribution is made. Such
contributions shall be allocated to Participants' Accounts no later than the
time required by the Code.

               4.2.5. Discretionary Contributions. Payment of the Participating
Employers' Discretionary Contributions shall be made within the time prescribed
by the Code as the time within which contributions must be made in order to
constitute an allowable Federal income tax deduction for the Employer's taxable
year for which the contribution is made. Such contributions shall be allocated
to Participants' Accounts no later than the time required by the Code.
Discretionary Contributions allocated to Participants' New Discretionary
Contribution Accounts on or after December 31, 1996 will be invested 100% in the
Employer Stock Fund.

               4.2.6. Forfeitures.
                      -----------

                      4.2.6.1.      Matching Contribution Accounts. Any amount
               forfeited under Article VI that is attributable to Matching
               Contributions shall first be used to restore the Matching
               Contribution Accounts of reemployed or former participants if
               required under Article VI or XV, then (i) applied to reduce the
               amount that would otherwise be contributed thereafter by such
               Participating Employer under Section 3.2.1; (ii) used for
               corrective allocations related to operational defects corrected
               pursuant to I.R.S. Revenue Procedure 98-22, or any successor
               thereto; or (iii) used to pay reasonable expenses and fees
               incurred in connection with the operation of the Plan.

                                       21
<PAGE>

                      4.2.6.2.      Discretionary Contribution Accounts. Any
               amount that is forfeited under Article VI that is attributable to
               Discretionary Contributions shall first be used to restore the
               Discretionary Contribution Accounts of reemployed or former
               Participants if required under Article VI or XV, then (i) shall
               be applied to reduce future Discretionary Contributions; (ii)
               used for corrective allocations related to operational defects
               corrected pursuant to I.R.S. Revenue Procedure 98-22, or any
               successor thereto; or (iii) used to pay reasonable expenses and
               fees incurred in connection with the operation of the Plan.

         4.3.  Valuation of the Investment Funds.
               ---------------------------------

               4.3.1. General Rule. As of each Valuation Date, any increase or
decrease in the fair market value of an Investment Fund since the preceding
Valuation Date shall be computed by the Trustee and credited to or deducted from
the Accounts of all Participants who have invested in that Investment Fund. Each
such Account's share of any increase or decrease shall be that portion which
bears the same ratio to the total as the portion of:

                      4.3.1.1.      the Participant's Account invested in that
               Investment Fund as of the preceding Valuation Date bears to

                      4.3.1.2.      the total of all Participants' Accounts
               invested in the Investment Fund as of the preceding Valuation
               Date.

For the purpose of determining such increase or decrease, the balance at the
preceding Valuation Date shall be reduced by amounts since properly paid from
the Fund, and, in any case where a distribution falls due on a Valuation Date it
shall not be regarded as due until the next day. The Committee shall provide for
the establishment of accounting procedures for the purpose of making the
allocations, valuations and adjustments to Participants' Accounts provided for
in this Article. From time to time, such procedures may be modified for the
purpose of achieving equitable and nondiscriminatory allocations among the
Participants' Accounts in accordance with the provisions of this Article. The
fair market value of investments held in the Fund shall be conclusively
determined by the Trustee in accordance with any reasonable method permitted
under regulations issued by the Secretary of the Treasury and such reasonable
and uniform rules as the Trustee may adopt.

         4.4.  Limitations on Annual Additions to Participants' Accounts Code
Section 415.
-----------

               4.4.1. Primary Limit. The maximum Annual Addition to any
Participant's Account for any Limitation Year shall be the lesser of:

                      4.4.1.1.      $30,000; or

                      4.4.1.2.      25% of the Participant's Compensation for
               such Limitation Year.

               4.4.2. Aggregation Requirement. For purposes of applying the
limitations of this Section 4.4:

                      4.4.2.1.      all Defined Benefit Plans (without regard to
               whether such Defined Benefit Plan has been terminated) ever
               maintained by the Employer will be treated as one Defined Benefit
               Plan; and

                                       22
<PAGE>

                      4.4.2.2.      all Defined Contribution Plans (without
               regard to whether such Defined Contribution Plan has been
               terminated) ever maintained by the Employer will be treated as
               one Defined Contribution Plan.

         4.5.  Elimination of Excess Annual Additions . If, as a result of the
allocation of forfeitures, a reasonable error in estimating a Participant's
Annual Compensation, a reasonable error in determining the amount of Elective
Deferral Contributions that may be made with respect to any Participant under
the limits of section 415 of the Code, or under such other circumstances as the
Internal Revenue Service may prescribe, the limitations described in Section 4.4
would be exceeded for any Participant, such Participant's excess Annual Addition
shall be eliminated as follows:

               4.5.1. any Elective Deferral Contributions (plus the earnings
attributable thereto), to the extent they would reduce the Annual Addition to
the maximum permitted amount, shall be distributed to the Participant;

               4.5.2. if after the application of Section 4.5.1, any amount
remains in excess of the maximum permitted Annual Addition, such amount shall be
placed in an unallocated suspense account and used to reduce Employer
contributions for all Participants in the next Limitation Year and each
succeeding Limitation Year, if necessary.

               4.5.3. Notwithstanding the preceding provision, if any amount is
withheld or taken from a Participant's ESOP Account due to the limitations of
Code Section 415, such amount shall be segregated in a separate account and
applied as a contribution for the next Limitation Year for the affected
Participant, subject to any restriction under Code Section 401(a)(4).

               4.5.4. If in accordance with this Section 4.5, a suspense account
is in existence during any Limitation Year, such account shall share in the
investment gains and losses of the Fund.

                               ARTICLE V. VESTING.
                               -------------------

         5.1.  Vesting in Participant Contributions and Rollover Contributions .
A Participant shall at all times have a 100% vested interest in his Elective
Deferral Contribution Account, his Prior Savings Contribution Plan Account, and
his Rollover Contribution Account.

         5.2.  Vesting In Participating Employer Contributions.
               -----------------------------------------------

               5.2.1. General Rule. A Participant who has been credited with two
Years of Service shall have a 25% vested interest in his New Matching
Contribution Account, Discretionary Contribution Account, Pre-1997 Matching
Contribution Account, Prior Metpath Plan Account, Prior Partnership Plan Account
and Prior Profit Sharing Plan Account. His vested interest in such Accounts
shall increase to 50% after three Years of Service and 100% after four Years of
Service. Notwithstanding the foregoing, a Participant shall have no vested
interest in Matching Contributions that are attributable to Elective Deferral
Contributions that are Excess Elective Deferrals, Excess Contributions or Excess
Aggregate Contributions

               5.2.2. Fully Vested Sub-Accounts. A Participant shall, at all
times, have a 100% vested interest in his Pre-July 1995 Matching Contribution
Account, his Qualified Matching Contribution Account and his Qualified
Nonelective Contribution Account.

                                       23
<PAGE>

               5.2.3. ESOP Vesting. A Participant shall have a 100% vested
interest in his ESOP Account upon the earlier of two years and one day from the
initial allocation to such ESOP Account or completion of five Years of Service.
Notwithstanding the foregoing, a Participant's interest in his ESOP Account
shall vest as provided above or in accordance with subsection 5.2.1, whichever
is the most favorable to the Participant. In any event, a Participant's interest
in his ESOP Account shall become 100% vested on January 1, 2001, provided the
Participant is still employed by the Employer on such date.

               5.2.4. CHEOS Plan Vesting. A Participant with a Prior CHEOS Plan
Account shall become 20% vested in his Prior CHEOS Plan Account and his
Discretionary and New Matching Contribution Accounts upon being credited with
one Year of Service. His vested interest in such Accounts shall increase to 40%
after two Years of Service, 60% after three Years of Service and 100% after four
Years of Service. Notwithstanding the foregoing, a Participant's interest in
such Accounts shall vest as provided above or in accordance with subsection
5.2.1, whichever is the most favorable to the Participant.

               5.2.5. GDXI Plan Vesting. A Participant with a Prior GDXI Plan
Account shall become 50% vested in his Prior GDXI Plan Account and his
Discretionary and New Matching Contribution Accounts upon being credited with
two Years of Service. His vested interest in such Accounts shall increase by
100% after three Years of Service. Notwithstanding the foregoing, a
Participant's interest in such Accounts shall vest as provided above or in
accordance with subsection 5.2.1, whichever is the most favorable to the
Participant.

               5.2.6. Special Rule for 1995 . A Participant with three or more
Years of Service under the Plan as of June 30, 1995 shall at all times be 100%
vested in his New Matching Contribution Account and his Discretionary
Contribution Account. A Participant who was formerly a participant in the G.H.
Besselaar Associates Profit Sharing 401(k) Plan ("Besselaar 401(k) Plan") and
who had three or more years of service under the Besselaar 401(k) Plan as of
December 31, 1995 shall at all times be 100% vested in his New Matching
Contribution Account.

         5.3.  Vesting in Participating Employer Contributions at Age 65, Death
or Disability . A Participant's interest in his Matching Contribution Account,
ESOP Account, Prior Plan Account and Discretionary Contribution Account shall in
any case become 100% vested if, while employed by the Employer, he reaches age
65, dies or sustains a Total and Permanent Disability.

         5.4.  Crediting of Years of Service Before a Break-in-Service . If a
Participant has fewer than five consecutive Breaks-in-Service, Years of Service
before such Breaks-in-Service shall be counted in computing his vested interest
in his Account. If a Participant has five or more consecutive Breaks-in-Service,
Years of Service before such Breaks-in-Service shall be counted in computing his
vested interest in his Account only if:

               5.4.1. before such Breaks-in-Service the Participant had a vested
interest in any portion of his Account; or

               5.4.2. the number of his Years of Service before such
Breaks-in-Service exceeds the number of his consecutive Breaks-in-Service.

Years of Service before a Break-in-Service shall not be required to be taken
into account until such Participant has been credited with a Year of Service
after such Break-in-Service.

                                       24
<PAGE>

         5.5.  Vesting in Participating Employer Contributions Made Before-a
Break-in-Service. In the case of a Participant who has five consecutive
Breaks-in-Service, Years of Service after such Breaks-in-Service shall not be
counted in computing his vested interest in his Account before such
Breaks-in-Service.

                            ARTICLE VI. FORFEITURES.
                            ------------------------

         6.1.  Participant Contributions . No amount attributable to a
Participant's Elective Deferral Contributions, Savings Contributions, Qualified
Matching Contributions, Qualified Nonelective Contributions, or Rollover
Contributions shall be forfeited from the Account of any Participant.

         6.2.  Participating Employer Contributions.
               ------------------------------------

               6.2.1. General Rule. The nonvested portion of the Account of a
Participant who terminates his employment for reasons other than death, Total
and Permanent Disability or retirement on or after his Normal Retirement Date
shall be forfeited only as provided in this Section 6.2. Any such forfeitures
shall be credited in accordance with Section 4.2.6.

                      6.2.1.1.      If a Participant receives a distribution at
               the time provided in Section 8.1.1, because he has not elected to
               defer receipt of his benefits or been cashed-out pursuant to
               Section 8.1.2, the nonvested portion of his Account shall be
               forfeited as of the date of the distribution. If the Participant
               thereafter again becomes an Employee before incurring five
               consecutive Breaks-in-Service, any such forfeited amount shall be
               restored to such Participant's Account subject to the repayment
               provisions of Section 6.3 and shall become vested, if at all, in
               accordance with Article V.

                      6.2.1.2.      If a Participant elects to defer receipt of
               the vested portion of his Account pursuant to Section 8.1.3, the
               vested and nonvested amount shall be maintained in the
               Participant's Account until the Participant incurs five
               consecutive Breaks-in-Service, at which time the nonvested
               portion shall be forfeited.

                      6.2.1.3.      The nonvested portion of the Account of a
               Participant when he terminates his employment shall be forfeited
               as of the date of the deemed distribution of his zero Account
               balance pursuant to Section 8.1.2.

               6.2.2. Special Matching Contribution Rule. If a portion or all of
a Participant's Elective Deferral Contributions are treated as either Excess
Elective Deferrals, Excess Contributions, or Excess Aggregate Contributions all
Matching Contributions and Qualified Matching Contributions relating to such
Elective Deferral Contributions shall be forfeited, effective as of the date
such Matching Contributions were made. Any such forfeitures shall be credited in
accordance with Section 4.2.

         6.3.  Partial Distributions . If in connection with a termination of
his employment, a Participant receives a distribution of his vested interest in
his Account, but less than the entire value of such Account, the remainder of
his Account shall be forfeited as provided in Section 6.2. If the Participant
again becomes employed by the Employer before the close of the Plan Year in
which he would have incurred his fifth Break-in-Service after the distribution,
the forfeited amount shall be restored to the Participant's Account only if the
Participant repays the full amount distributed by the fifth anniversary of the
date he returns to employment with the Employer. A Participant who is deemed to

                                       25
<PAGE>

receive a distribution of his zero Account balance pursuant to Section 8.1.2
shall be deemed to have repaid such distribution as of the date he returns to
employment with the Employer.

                      ARTICLE VII. ENTITLEMENT TO BENEFITS
                      ------------------------------------

         7.1.  Retirement or Disability. Subject to the adjustments provided in
Section 7.5, upon termination of a Participant's employment at or after his
Normal Retirement Date or by reason of his Total and Permanent Disability, he
shall be entitled to the entire amount credited to his Account as of the
Valuation Date coinciding with or next following such termination.

         7.2.  Termination of Employment . Subject to the adjustments provided
in Section 7.5, upon termination of a Participant's employment for any reason
other than retirement, death or Total and Permanent Disability, he shall be
entitled to his vested interest in the amount credited to his Account as of the
Valuation Date coinciding with or next following such termination.

         7.3.  Deferred Distribution . Subject to the adjustments provided in
Section 7.5, if a Participant elects to defer distribution of his Account under
Section 8.1.3, the amount to which he is entitled shall be the amount credited
to his Account as of the Valuation Date coincident with or next following his
request for distribution.

         7.4.  Death.
               -----

               7.4.1. Death While Employed. Subject to the adjustments provided
in Section 7.5, the Beneficiary of a Participant whose employment is terminated
by reason of his death shall be entitled to the entire amount in the
Participant's Account, determined as of the Valuation Date coinciding with or
next following the date of his death.

               7.4.2. Death After Termination of Employment and Prior to Payment
of Any Benefits. If a Participant who is entitled to benefits under Sections
7.1, 7.2 or 7.3 dies before receiving the benefit described in such Section, his
Beneficiary shall be paid the amount to which the Participant would have been
entitled had he lived.

         7.5.  Adjustments to Accounts for Delayed Distributions . The amount to
which a Participant or Beneficiary is entitled under this Article VII shall be
the amount to which he is entitled under Sections 7.1, 7.2, 7.3 or 7.4 increased
by the income and decreased by the loss allocable thereto until actually
distributed from the Plan.

         7.6.  Distribution on Sale of Business. Notwithstanding any other
provision of the Plan and subject to the adjustments provided in Section 7.5,
for the sole purpose of determining a Participant's entitlement to a
distribution under this Article VII, a distribution may be made on account of
the sale or other disposition by a Participating Employer of substantially all
of the assets of a trade or business or the sale by a Participating Employer of
its entire interest in a subsidiary in accordance with the provisions of section
401(k)(10) of the Code and the regulations thereunder; provided that, this
Section 7.6 shall not apply to any sale or disposition for which a Participating
Employer has directed a mandatory transfer from the Trust on behalf of any
Participant.

                                       26
<PAGE>

                  ARTICLE VIII. PAYMENT AND FORM OF BENEFITS.
                  -------------------------------------------

         8.1.  Benefit Commencement Date.
               -------------------------

               8.1.1. General Rule. Subject to Sections 8.1.2, 8.1.3, and 8.1.4,
any benefit due a Participant under Article VII shall be paid in accordance with
procedures established by the Committee following the date upon which the
Participant becomes entitled to such benefit, unless transferred pursuant to an
election under Section 8.10.

               8.1.2. Cash-Outs.
                      ---------

                      8.1.2.1.      If the value of a Participant's vested
               Account is $5,000 or less, his benefit shall be paid under
               Section 8.1.1 without his consent as soon as administratively
               feasible. If the Participant does not have a vested interest in
               his Account, he shall be deemed to have received a distribution
               of his entire vested Account.

                      8.1.2.2.      Subject to Section 8.1.3, if the value of
               the Participant's vested Account is more than $5,000 as of the
               date of any distribution, payment to such Participant shall not
               be made unless the Participant consents in writing to the
               distribution. Consent to such distribution shall not be valid
               unless the Participant is informed of his right to defer receipt
               of the distribution.

               8.1.3. Benefit Deferral by Election. A Participant entitled to a
benefit of more than $5,000 may elect to defer payment of that benefit until his
Normal Retirement Date or, if earlier, such time as the Participant requests
payment in writing.

               8.1.4. Required Beginning Date. Notwithstanding Sections 8.1.1,
8.1.2, 8.1.3 and 8.1.5, distribution shall be made or shall begin not later than
a Participant's Required Beginning Date.

               8.1.5. Default Provision. Subject to Section 8.1.4, unless a
Participant has elected to defer payment of his benefit under Section 8.1.3, his
benefit shall be payable no later than 60 days following the close of the Plan
Year in which occurs the later of his Normal Retirement Date or his actual
termination of employment.

         8.2.  Earliest Distribution Date . No distribution of the portion of a
Participant's Account that is attributable to his Elective Deferral
Contributions or to Qualified Matching or Nonelective Contributions, if any,
shall be made earlier than:

               8.2.1. the Participant's separation from service, death or Total
and Permanent Disability;

               8.2.2. the Participant's reaching age 59 1/2;

               8.2.3. in the case of Elective Deferral Contributions (and income
allocable thereto credited to a Participant's Account as of December 31, 1988),
the Participant's incurring an expense that qualifies for a hardship withdrawal
under Article IX; or

               8.2.4. the occurrence of an event described in section 401(k)(10)
of the Code.

         8.3.  Forms of Benefit Payment . The only form of benefit under the
Plan shall be a cash lump sum distribution. A Participant or Beneficiary who
elected an optional form of benefit payment available under the Plan prior to

                                       27
<PAGE>

June 1, 2001, shall receive or continue to receive his benefit in accordance
with the form of benefit payment elected and shall be governed by the provisions
of the Plan as in effect at the time of such election.

         8.4.  Death Benefits.
               --------------

               Subject to Section 8.7, if the Participant dies before
distribution of his Account has been made, his Beneficiary shall receive his
entire Account balance in a cash lump sum.

         8.5.  Election to Commence Benefit Payment. A Participant or
Beneficiary shall elect to receive his benefit by notifying the Committee, in
accordance with procedures established by the Committee, of his election and the
proposed date the distribution is to be made. The Participant shall elect at
such time whether to receive amounts invested in Employer Stock in either cash
or stock.

         8.6.  Change of Election . Any Participant or Beneficiary electing to
receive his benefit under Section 8.5 may revoke such election and file a new
election in writing with the Committee at any time before the benefit payment is
made. Upon commencement of distribution, a Participant's or Beneficiary's
election shall be irrevocable.

         8.7.  Required Distributions - Code Section 401(a)(9) . Distributions
under this Article VIII shall be made in accordance with section 401(a)(9) of
the Code and the regulations thereunder, as generally described in this Section
8.7. The provisions of this Section 8.7 shall override any distribution option
otherwise provided in the Plan that is inconsistent with section 401(a)(9) of
the Code.

               8.7.1. Distribution Beginning During Participant's Life. The
Account of the Participant shall be distributed to him not later than his
Required Beginning Date.

               8.7.2. Distribution Following Death of a Participant.
                      ---------------------------------------------

                      8.7.2.1.      If the Participant dies after distribution
               of his Account has begun and before his entire Account has been
               distributed to him, the remaining portion of his Account shall be
               distributed at least as rapidly as under the method of
               distribution in effect on the date of his death.

                      8.7.2.2.      Subject to Section 8.7.2.3, if the
               Participant dies before distribution of his Account has begun,
               his entire Account shall be distributed by December 31 of the
               fifth year after the year of his death.

                      8.7.2.3.      If the Beneficiary is the Participant's
               spouse, the date on which distributions under Section 8.7.2.2 are
               required to begin is the date on which the Participant would have
               reached age 70 1/2 had he lived. If such spouse dies before such
               distributions begin, distribution shall be made in accordance
               with Section 8.7.2.2 as if the spouse were the Participant.

         8.8.  Benefit Transfers.
               -----------------

               8.8.1. Eligibility. If one or more distributions from a
Participant's Account constitutes an "eligible rollover distribution," within
the meaning of sections 402(c)(2) and (4) of the Code and regulations
thereunder, the Participant may elect to have all or a portion (but not less
than $500) of the distribution paid directly to an individual retirement account
or annuity (an "IRA") or a plan qualified under Code section 401(a) or section
403(a) (collectively, an "eligible retirement plan"). The Participant may not

                                       28
<PAGE>

elect to have portions of an eligible rollover distribution paid directly to
more than one eligible retirement plan. In addition, the Participant will not be
permitted to elect a direct rollover with respect to eligible rollover
distributions that are reasonably expected to total less than $200 during the
year.

               8.8.2. Procedures. The Committee shall make such payment upon
receipt from the Participant of the name of the eligible retirement plan to
which such payment is to be made, a representation that the eligible retirement
plan is an IRA or a plan qualified under section 401(a) or section 403(a) of the
Code, and such other information and/or documentation as the Committee may
reasonably require to make such payment. The Participant's election to make or
not to make a direct rollover with respect to one distribution that is part of a
series of payments will apply to all future distributions until the Participant
subsequently changes the election.

               8.8.3. Failure to Elect. If the Participant fails to elect
whether or not a distribution is to be paid in a direct rollover, the
Participant will be deemed to have elected not to have any portion of the
distribution paid in a direct rollover. This Section shall apply, to the extent
required by law, to a Beneficiary who is the Participant's surviving spouse and
to a spouse or former spouse who is an alternate payee under a qualified
domestic relations order as defined in section 414(p) of the Code, except that
only an IRA will be deemed to be an eligible retirement plan with respect to a
surviving spouse of a deceased Participant.

         8.9.  Distribution Pursuant to a Qualified Domestic Relations Order .
Any benefit payable from a Participant's Account to an Alternate Payee pursuant
to the terms of a Qualified Domestic Relations Order ("QDRO"), as those terms
are defined in section 414(p) of the Code, shall, at the Alternate Payee's
election, provided such election is consistent with the terms of the QDRO, be
paid:

               8.9.1. in a lump sum as soon as administratively reasonable after
the determination that the QDRO satisfies the provisions of section 414(p) of
the Code, without regard to whether the Participant is then eligible to receive
benefits under the Plan; or

               8.9.2. at any other time and in any manner permitted by the Plan
and the terms of the QDRO.

         8.10. Put Option . Employer Stock held in a Participant's Discretionary
Contribution Account, ESOP Account or New Matching Contribution Account and then
distributed to the Participant must be subject to a put option, if at the time
of its distribution it is either subject to a trading limitation, or is not
publicly traded. For purposes of this Section, a "trading limitation" on a
security is a restriction under any Federal or state securities law, any
regulation thereunder, or an agreement, not prohibited by Treasury regulations
Section 54.4975-7(b) affecting the security so as to make the security not as
freely tradable as one not subject to such a restriction. The put option must be
exercisable only by a Participant, a Beneficiary or by any donee of the
Participant or by a person to whom the security passes by reason of a
Participant's death. The put option must permit a Participant to put the
security to the Sponsor, and it may grant the Trust an option to assume the
rights and obligations of the Sponsor at the time that the put option is
exercised, but under no circumstances may the put option bind the Trust. If it
is known at the time an Exempt Loan is made that Federal or state law will be
violated by the Sponsor's honoring such a put option, the put option must permit
the security to be put, in a manner consistent with such law, to a third party
(for example but without limitation, to an affiliate or a shareholder of the
Sponsor other than the Trust) that has substantial net worth at the time the
Exempt Loan is made and whose net worth is reasonably expected to remain
substantial. A put option must be exercisable at any time during a period or
periods which include at least (A) sixty (60) days beginning on the date the

                                       29
<PAGE>

security subject to the put option is distributed by the Trustee and (B) sixty
(60) days in the next following Plan Year, in accordance with regulations issued
pursuant to Section 409 of the Code. In the case of a security that is publicly
traded without restriction when distributed, but ceases to be so traded within
the put option period(s) set forth above, the Sponsor must notify each security
holder in writing on or before the tenth (10th) day after the date the security
ceases to be so traded that during the remainder of such period(s) the security
is subject to put option. The number of days between such tenth (10th) day and
the date on which notice is actually given, if later than the tenth (10th) days,
must be added to the duration of the put option. The notice must inform
distributees of the terms of the put options that they are to hold. The price at
which a put option must be exercisable is the value of the security, as
determined under Treasury Regulations Section 54.4975-11(d)(5). The provisions
for payment under a put option must provide that the Sponsor or the Trust if the
Plan so elects, shall repurchase the Employer Stock as follows:

               8.10.1. If the distribution constitutes a total distribution
within the meaning of Section 409(h)(5) of the Code, payment of the fair market
value of the repurchased Employer Stock shall be made in five (5) substantially
equal annual payments, of which the first shall be paid not later than thirty
(30) days after the Participant exercises the put option. The purchaser will pay
a reasonable rate of interest and provide adequate security on amounts not paid
after thirty (30) days;

               8.10.2. If the distribution does not constitute a total
distribution, the purchaser shall pay the Participant an amount equal to the
fair market value of the Employer Stock repurchased no later than thirty (30)
days after the Participant exercises the put option.

                   ARTICLE IX. WITHDRAWALS DURING EMPLOYMENT.
                   ------------------------------------------

         9.1.  Hardship Withdrawal - General Rules . An eligible Participant may
elect to withdraw up to 100% of his Elective Deferral Contributions, and
earnings credited on those contributions through December 31, 1988, exclusive of
any amount loaned to a Participant or treated as security for a loan under
Article X and up to 100% of his vested interest in his other Accounts. Such
election shall be in writing and submitted to the Committee at such time and in
such manner as shall be prescribed by the Committee. A Participant is eligible
to make a hardship withdrawal under this Section 9.1 only if the withdrawal is
for a purpose that the Committee determines is a Qualified Emergency, as defined
in Section 9.2, and the requirements of Section 9.3 are met.

         9.2.  Definition of Qualified Emergency . As used in this Article IX,
the term "Qualified Emergency" means an immediate and heavy financial hardship
of the Participant. The following circumstances, and no others, meet the
definition of "Qualified Emergency":

               9.2.1. payment of tuition, related educational fees, and room and
board expenses for the next 12 months of post-secondary education for the
Participant or his spouse, child or dependent;

               9.2.2. payment of medical expenses described in section 213(d) of
the Code that have been incurred by the Participant, his spouse or dependent or
a distribution necessary for such persons to obtain medical care described in
section 213(d) of the Code;

               9.2.3. the purchase (excluding mortgage payments) of the
Participant's principal residence;

                                       30
<PAGE>

               9.2.4. the need to prevent the eviction of the Participant from
his principal residence or foreclosure on the mortgage of the Participant's
principal residence; and

               9.2.5. any other expense that is deemed to be a Qualified
Emergency expense by the Internal Revenue Service.

         9.3.  Requirements for Hardship Withdrawal . A hardship withdrawal
under Section 9.1 shall be permitted only if the following requirements are met:

               9.3.1. the distribution does not exceed the amount of the
Qualified Emergency expense (including a reasonable amount to enable the
Participant to pay taxes and penalties on such withdrawal);

               9.3.2. if any portion of the withdrawal comes from the
Participant's Elective Deferral Contribution Account, the Participant has
obtained all distributions, other than hardship withdrawals, and all non-taxable
loans currently available under all plans maintained by the Employer, unless
obtaining such loan would increase the severity of the Participant's hardship;

               9.3.3. if any portion of the withdrawal comes from the
Participant's Elective Deferral Contribution Account, the Plan and all other
plans maintained by the Employer suspend Elective Deferral Contributions and
other contributions by the Participant for at least 12 months after the receipt
of the hardship withdrawal; and

               9.3.4. if any portion of the withdrawal comes from the
Participant's Elective Deferral Contribution Account, the Plan and all other
plans maintained by the Employer provide that the Participant may not make
Elective Deferral Contributions for the Participant's taxable year immediately
following the taxable year of the hardship withdrawal in excess of the
applicable limit imposed on Elective Deferral Contributions under Section 3.3
for such taxable year, less the amount of the Participant's Elective Deferral
Contributions for the taxable year of the hardship withdrawal.

If the Secretary of the Treasury prescribes additional methods for meeting the
requirements for hardship withdrawal, such additional methods shall be
incorporated herein by reference.

         9.4.  Withdrawals after Age 59 1/2 . A Participant who is currently
employed and has reached age 59 1/2 shall be entitled to make one withdrawal per
Plan Year of all or any portion of his vested interest in the amount credited to
his Account as of the Valuation Date next following the date he submits a
written request for such withdrawal to the Committee. Notwithstanding the
preceding sentence, a Participant who was formerly a participant in the
Besselaar 401(k) Plan or the CHEOS Plan may receive more than one withdrawal per
Plan Year.

         9.5.  Rollover and Savings Contribution Account Withdrawals. A
Participant who is currently employed and has a balance in his Rollover
Contribution Account or Prior Savings Contribution Plan Account may, at any time
withdraw all or any portion of the amount credited to such Accounts as of the
Valuation Date next following the date he submits a written request for such
withdrawal to the Committee.

         9.6.  Distribution of Amounts Withdrawn. As soon as practicable
following the Committee's determination that the requirements of Section 9.1,
9.4 or 9.5 are met, it shall direct the Trustee to pay to the Participant the
amount he has elected to withdraw in a single sum. The withdrawal shall be made
on a pro-rata basis from all of the Investment Funds.

                                       31
<PAGE>

               For hardship distributions, the amount elected by the Participant
shall be withdrawn from such Participant's Accounts in the following order: (1)
Rollover Contribution Account; (2) Elective Deferral Contribution Account
(matched portion); (3) Elective Deferral Contribution Account (supplemental
portion); (4) Prior Profit Sharing Plan Account; (5) Prior Metpath Plan Account;
(6) Prior Partnership Plan Account; (7) Pre-July 1995 Matching Contribution
Account; (8) Pre-1997 Matching Contribution Account; (9) New Matching
Contribution Account; (10) Prior CHEOS Plan Account; (11) Prior GDXI Plan
Account; and (12) ESOP Account.

               For age 59 1/2 distributions, the amount elected by the
Participant shall be withdrawn from such Participant's Accounts in the following
order: (1) Prior Savings Contribution Plan Account; (2) Rollover Contribution
Account; (3) Elective Deferral Contribution Account (matched portion); (4)
Elective Deferral Contribution Account (supplemental portion); (5) Prior Profit
Sharing Plan Account; (6) Prior Metpath Plan Account; (7) Prior Partnership Plan
Account; (8) Pre-July 1995 Matching Contribution Account; (9) Pre-1997 Matching
Contribution Account; (10) New Matching Contribution Account; (11) Prior CHEOS
Plan Account; (12) Prior GDXI Plan Account; and (13) ESOP Account.

                        ARTICLE X. LOANS TO PARTICIPANTS.
                        ---------------------------------

         10.1. Plan Loans . The Committee may cause the Trustee to lend to any
Participant who applies for a loan the amount applied for by the Participant,
upon such terms as the Committee may see fit, subject to all of the requirements
of Section 10.2.

         10.2. Loan Requirements.
               -----------------

               10.2.1. Such loans shall be made available to all Participants
who are actively employed by the Employer, subject only to each such
Participant's demonstration, on the basis of uniform and non-discriminatory
rules and procedures established by the Committee, of his ability to repay the
loan, plus interest.

               10.2.2. The amount of the loan, when added to the outstanding
balance of all prior loans to such Participant, shall not exceed the lesser of:

                      10.2.2.1.     $50,000, reduced by the excess (if any) of
               (i) the highest outstanding balance of loans from the Plan during
               the one-year period ending on the day before the date on which
               such loan was made, over (ii) the outstanding balance of loans
               from the Plan immediately before the loan in question was made;
               or

                      10.2.2.2.     50% of the amount in the Participant's
               Account that is vested.

For the purpose of the borrowing limitations of this Section, all Employers in a
controlled group of employers, within the meaning of section 414(b) or section
414(c) of the Code, or a part of an affiliated service group, within the meaning
of section 414(m) of the Code, shall be considered as one employer and all of
the Defined Benefit Plans and Defined Contribution Plans shall be considered to
be a single plan.

               10.2.3. The amount of any loan shall be at least $1,000.

               10.2.4. In no event shall a Participant have more than one loan
outstanding.

                                       32
<PAGE>

               10.2.5. A portion of the Participant's Account equal to the
principal amount of the loan shall be security for such loan.

               10.2.6. Any such loan shall be repaid by payroll withholding at
least quarterly on the basis of substantially level amortization, within five
years from the date the loan is made; provided, however, that if the loan
proceeds are used to acquire a dwelling that is, or will be within a reasonable
period of time, the Participant's principal residence, the term of the loan
shall be no more than ten years and a Participant may prepay the outstanding
loan balance at any time without penalty.

               10.2.7. Except as provided in Section 10.2.8, a Participant who
fails to make any installment payment due under a Plan loan by the last day of
the calendar quarter following the calendar quarter in which the required
installment payment was originally due shall be treated as having a deemed
distribution equal to the entire outstanding balance of the loan.

               10.2.8. With the Committee's approval, a Participant with an
outstanding loan whose active service is temporarily interrupted due to a leave
of absence, either without pay from the Employer or at a rate of pay (after
income and employment tax withholding) that is less than the amount of the
installment payments, may suspend loan payments for a period of not longer than
one year, provided the loan is repaid by the latest date permitted under Section
72(p)(2)(B) of the Code and the installments due after the leave ends (or, if
earlier, after the first year of the leave) must not be less than those required
under the terms of the original loan.

               10.2.9. Such loan shall bear a rate of interest of 1% above the
prime rate published in the Wall Street Journal for the end of the month prior
to the Committee's receipt of the loan application.

               10.2.10. The loan amount shall be withdrawn on a pro-rata basis
from all of the Participant's Investment Funds and from such Participant's
Accounts, in the following order: (1) Prior Savings Contribution Plan Account;
(2) Rollover Contribution Account; (3) Elective Deferral Contribution Account
(matched portion); (4) Elective Deferral Contribution Account (supplemental
portion); (5) Prior Profit Sharing Plan Account; (6) Prior Metpath Plan Account;
(7) Prior Partnership Plan Account; (8) Pre-July 1995 Matching Contribution
Account; (9) Pre-1997 Matching Contribution Account; (10) New Matching
Contribution Account; (11) Prior CHEOS Plan Account; (12) Prior GDXI Plan
Account; and (13) ESOP Account.

               10.2.11. The Participant shall agree at the time the loan is made
that the outstanding principal and interest on the loan at the time the
Participant or his Beneficiary receives a distribution under Article VIII shall
be deducted from the amount otherwise distributable to such Participant or
Beneficiary.

               10.2.12. No note or other document evidencing any such loan shall
be negotiable or otherwise assignable.

               10.2.13. Upon termination of employment with the Employer, a
Participant's outstanding loan shall be immediately due and payable. Failure to
repay such loan within 30 days shall cause such loan to be treated as a deemed
distribution equal to the entire outstanding balance of the loan.
Notwithstanding the foregoing, a former Employee who is receiving salary
continuation payments from the Company, either through the Covance Inc.
Severance Pay Plan or another Company-sponsored severance program or
arrangement, shall be permitted to continue the repayment of an outstanding loan
during the period of time beginning with the first salary continuation payment
on or after June 1, 2001 and ending on the date on which the last salary

                                       33
<PAGE>

continuation payment from the Company is issued. Such loan repayments shall be
made through withholding from the salary continuation payments made by the
Company.

                            ARTICLE XI. INVESTMENTS.
                            ------------------------

         11.1. Investment Funds.
               ----------------

               11.1.1. General Rule. Each Participant shall elect the manner in
which his Elective Deferral Contributions, Savings Contributions, Matching
Contributions (other than amounts credited to his New Matching Contribution
Account), Qualified Matching Contributions, Qualified Nonelective Contributions,
Rollover Contributions, trustee-to-trustee transfers and amounts credited to his
Prior Plan Account, if any, are to be invested.

               11.1.2. Special Rule for New Matching and Discretionary
Contributions. Amounts allocated on or after December 31, 1996 to a
Participant's New Matching Contribution Account and Discretionary Account, and
the amount credited to his ESOP Account, shall be automatically 100% invested in
the Employer Stock Fund. A Participant may transfer all or any portion of the
total amount of his New Matching Contribution Account and Discretionary
Contribution Account credited to the Employer Stock Fund among the other
Investment Funds offered under the Plan in accordance with Sections 11.2 and
11.3, provided such Participant has either:

                      11.1.2.1.     attained at least age 55;

                      11.1.2.2.     terminated employment with the Employer; or

                      11.1.2.3.     become 100% vested in his Account.

               11.1.3. Fund Performance. Net income or loss with respect to the
performance of the Investment Funds offered shall only affect the Accounts
invested in such Investment Funds.

         11.2. Investment Elections . A Participant may elect to have the
amounts held in his Account invested entirely in one Investment Fund, or he may
elect to have such amounts invested in more than one Investment Fund, in
accordance with the procedures established by the Committee. A Participant's
election shall specify the percentage of his Account to be invested in an
Investment Fund in any whole percentage of such Account provided that the
percentage of his Account to be invested in any one Investment Fund must be
equal to at least five percent (5%) or a multiple thereof. Such election shall
remain in effect until a new election is made. If a Participant fails to make an
election from among the available Investment Funds, the amounts contributed to
the Participant's Account shall be invested in the Default Fund. Appropriate
sub-accounts shall be established to reflect a Participant's investment
elections.

         11.3. Change of Election . A Participant may change an election of
Investment Funds or may elect to transfer existing Account balances among
Investment Funds daily. The Participant shall direct such change or transfer by
telephone instruction to the Trustee, or its designated agent, during normal
business hours of any business day.

         11.4. Diversification of Investments or Distribution for Certain
Participants . For purposes of this Section 11.4, "Qualified Participant" shall
mean a Participant who has completed at least five years of participation in the
Plan excluding any participation prior to December 31, 1996, and "Qualified
Election Period" shall mean the period of six Plan Years beginning with the

                                       34
<PAGE>

later of (i) the Plan Year in which the Participant first becomes a Qualified
Participant, or (ii) 2006; provided that the Qualified Election Period shall not
begin unless and until the fair market value of Employer Stock allocated to the
Participant's Discretionary Contribution Account, ESOP Account and New Matching
Contribution Account in the aggregate is at least $500 as of any Valuation Date.

               No later than 90 days after the last day of each Plan Year during
his Qualified Election Period, each Qualified Participant shall be permitted to
direct the Plan as to the investment of 100 percent (100%) of an amount equal to
the value of his Discretionary Contribution Account, ESOP Account and New
Matching Contribution Account attributable to Employer Stock, plus amounts
previously transferred or distributed pursuant to an election under this
Section, to the extent such percentage exceeds the amounts transferred or
distributed pursuant to a prior election. No later than 90 days after the close
of the last Plan Year in the Participant's Qualified Election Period, a
Qualified Participant may direct the Plan as to the investment of 100 percent
(100%) of his Discretionary Contribution Account, ESOP Account and New Matching
Contribution Account attributable to Employer Stock, plus amounts previously
transferred or distributed pursuant to an election under this Section, to the
extent such a percentage exceeds the amounts transferred or distributed pursuant
to a prior election under this Section. The Participant's direction shall be
provided to the Committee in writing and shall be effective no later than 180
days after the close of the Plan Year to which the direction applies.

               The Plan shall satisfy the Participant's direction by
transferring the portion of his Account that is covered by the election to
another qualified plan (including the portion of this Plan that does not
constitute an ESOP) of the Employer that accepts the transfer and permits
employee-directed investments and offers the Participant at least three
investment options (not inconsistent with regulations prescribed by the
Secretary of the Treasury) other than Employer Stock. The transfer shall be
made, and the amount transferred shall be invested in accordance with the
Participant's election, no later than 90 days after the last day of the period
during which the election can be made. If at the time of an election no Employer
then maintains a qualified plan that is eligible to receive the portion of the
Participant's Account that is covered by the election, the Plan shall distribute
that portion to the Qualified Participant within 90 days after the last day of
the period during which the election can be made. This Section shall apply
notwithstanding any other provision of the Plan, other than such provisions as
require the consent of the Participant to a distribution with a present value in
excess of $5,000. If the Participant does not consent to such a distribution,
the amount as to which the election is made shall be retained in the Plan and
the diversification requirement of this Section shall be deemed to have been
satisfied. Notwithstanding the foregoing, the Participant's diversification
election under this section shall not be effective unless consented thereto by
the Participant's spouse in accordance with the requirements under Section 8.4.

         11.5. Employer Stock Fund . Employer Stock received by the Plan as a
result of the spin-off of the Sponsor from Corning Incorporated shall remain
invested as Employer Stock. The Trustee shall invest Matching Contributions and
Discretionary Contributions made on or after December 31, 1996 in Employer Stock
to the end that, in the largest measure possible, Participants may share in the
earnings of the Employer and acquire a proprietary interest in the Employer;
provided, however that all Matching and Discretionary Contributions shall be
used to make payments on Exempt Loans to the extent provided in Section A-6. The
Trustee will also invest any other assets attributable to Participants' Accounts
in Employer Stock in accordance with Participants' elections under Article XI.
Any Employer Stock acquired and held in accordance with this Section will be
known and referred to as the "Employer Stock Fund".

                                       35
<PAGE>

         11.6. Dividends on ESOP Stock . It is anticipated that all dividends
payable with respect to shares of ESOP Stock held in a suspense account shall be
used for the purpose of repaying one or more Exempt Loans, as defined in
Supplement A, and will not be allocated to Participants' Matching Contribution
Accounts and that all dividends payable with respect to all other Employer Stock
held in the Trust Fund shall be added to the Participants' Employer Stock Fund,
subject to Section A-5. Nevertheless, the Committee may, in its sole discretion,
determine for any Plan Year that dividends payable with respect to shares of
ESOP Stock shall, if payable in cash be (I) paid currently to Participants or
(ii) used for the purpose of repaying one or more Exempt Loans if such use of
said dividends so applied meets the requirements of Code Section 404(k). Such
discretion herein granted may be exercised by the Committee independently, and
in whole or in part, with respect to the stock held from time to time in one or
more of Employer Stock Funds established under the Trust. Discretion so
exercised for any Plan Year, or for any portion thereof, may be changed by the
Committee at any subsequent time. Cash dividends which are to be paid to the
Participants may be paid directly by the Company or may be paid by the Trustee
within ninety (90) days after the end of the Plan year or receipt by the
Trustee.

         11.7. Voting and Tender Offer Rights on Employer Stock . Each
Participant shall have the right to vote all shares of Employer Stock held in
the Participant's Account. Each Participant shall also have the right to direct
the Trustee whether to tender such shares of Employer Stock in the event an
offer is made by any person other than the Employer to purchase such shares. The
Committee shall make any such arrangements with the Trustee as may be
appropriate to pass such voting or tender offer rights through to a Participant.
In the event a Participant fails to vote his shares or fails to indicate his
preference with respect to a tender offer, the Trustee shall vote the
Participant's shares or tender his shares in the same proportions as those Plan
Participants who did respond cast their votes or tendered their shares. The
Trustee shall also vote and exercise any tender offer rights with respect to
unallocated ESOP Stock held in a suspense account in the same proportions as
those Plan Participants who responded cast their votes or tendered their shares.

                       ARTICLE XII. TOP-HEAVY PROVISIONS.
                       ----------------------------------

         12.1. Top-Heavy Requirements . Notwithstanding anything in the Plan to
the contrary, for any Plan Year that the Plan is a Top-Heavy Plan, the Plan
shall meet the requirements of this Article XII.

         12.2. Minimum Vesting Requirements . The vested interest of a
Participant who is credited with an Hour of Service after the Plan becomes a
Top-Heavy Plan shall be determined under the following schedule:

               Years of Service                       Vested Interest
               ----------------                     ---------------
               Less than one                                0%
               One but less than two                       20%
               Two but less than three                     40%
               Three but less than four                    60%
               Four or more                               100%

                                       36
<PAGE>

         12.3. Change in Top-Heavy Status . If the Plan becomes a Top-Heavy Plan
and subsequently ceases to be a Top-Heavy Plan, the vesting schedule in Section
12.2 shall continue to apply in determining the vested percentage of the Account
of any Participant who had at least three Years of Service as of the last day of
the last Plan Year in which the Plan was a Top-Heavy Plan. For all other
Participants, the vesting schedule in Section 12.2 shall apply only to their
Accounts as of such last day.

         12.4. Minimum Contribution Requirement.
               --------------------------------

               12.4.1. This Plan shall provide a minimum contribution allocation
for each Participant who is a Non-Key Employee in an amount equal to at least 3%
of such Participant's Compensation for such Plan Year. In addition, for each
Participant who is a Non-Key Employee and who also participates in another Plan
of the Employer for a Plan Year during which both plans are top-heavy within the
meaning of section 416(g) of the Code, the Employer shall meet the minimum
contribution requirements of section 416 for both plans under this Plan.

               12.4.2. Unless the Plan is part of a Required Aggregation Group
and enables a Defined Benefit Plan that is included in such Required Aggregation
Group to satisfy sections 401(a)(4) or 410 of the Code, the percentage minimum
contribution required hereunder shall in no event exceed the percentage
contribution made for the Key Employee for whom such percentage is the highest
for the Plan Year. Elective Deferral Contributions made on behalf of Key
Employees shall be included for purposes of determining the percentage
contribution made to Key Employees.

               12.4.3. The minimum contribution shall not be integrated with
Social Security benefits and shall be made for each Participant who is a Non-Key
Employee and who is employed at the end of the Plan Year in question, regardless
of whether or not such Non-Key Employee has completed 1,000 Hours of Service. A
Non-Key Employee will not fail to receive a minimum contribution because either
(i) the Non-Key Employee is excluded from participation (or accrues no benefit)
merely because the Non-Key Employee's Compensation is less than a stated amount,
or (ii) the Non-Key Employee is excluded from participation (or accrues no
benefit) merely because of a failure to make Elective Deferral Contributions.

                       ARTICLE XIII. PLAN ADMINISTRATION.
                       ----------------------------------

         13.1. Fiduciary Responsibility.
               ------------------------

               13.1.1. The Sponsor established and maintains the Plan for the
benefit of its employees and those of Participating Employers and of necessity
retains control of the operation and administration of Plan. The Sponsor is the
"named fiduciary" and "administrator" as those terms are defined by ERISA. The
Sponsor in accordance with specific provisions of the Plan has, as herein
indicated, delegated certain of these rights and obligations to the Employer,

                                       37
<PAGE>

the Trustee and the Committee and these parties shall be solely responsible for
these, and only these, delegated rights and obligations.

               13.1.2. Each fiduciary who is allocated specific duties or
responsibilities under the Plan or any fiduciary who assumes such a position
with the Plan shall discharge his duties solely in the interest of the
Participants and Beneficiaries for the exclusive purpose of providing such
benefits as stipulated herein to such Participants and Beneficiaries, or of
defraying reasonable expenses of administering the Plan. Each fiduciary in
carrying out such duties and responsibilities shall act with the care, skill,
prudence, and diligence under the circumstances then prevailing that a prudent
person acting in a like capacity and familiar with such matters would use in
exercising such authority or duties.

                      13.1.2.1.     A fiduciary may serve in more than one
               fiduciary capacity and may employ one or more persons to render
               advice with regard to his fiduciary responsibilities. If the
               fiduciary is serving as such without compensation, all expenses
               reasonably incurred by such fiduciary shall be reimbursed from
               the assets of the Trust, unless paid by the Sponsor.

                      13.1.2.2.     A fiduciary may allocate any of his
               responsibilities for the operation and administration of the
               Plan. In limitation of this right, a fiduciary may not allocate
               any responsibilities as contained herein relating to the
               management or control of the Fund except (1) through the
               employment of an investment manager as provided in Section 13.1.4
               and in the Trust Agreement relating to the Fund, or (2) to the
               extent Participants specify their own Investment Funds.

               13.1.3. The Employer shall indemnify each member of the Board of
Directors, the Committee, and any of its employees to whom any fiduciary
responsibility with respect to the Plan is allocated or delegated, from and
against any and all liabilities, costs and expenses incurred by such persons as
a result of any act or omission to act in connection with the performance of
their fiduciary duties, responsibilities and obligations under the Plan and
under ERISA, except for liabilities and claims arising from such fiduciary's
willful misconduct or gross negligence. For such purpose, the Employer may
obtain, pay for and keep current a policy or policies of insurance. Where such
policy or policies of insurance are purchased, there shall be no right to
indemnification under this Section 13.1.3, except to the extent of any
deductible amount under the policy or policies or with regard to covered claims
in excess of the insured amount. No Plan assets may be used for any
indemnification.

                      13.1.3.1.     The Employer shall supply such full and
               timely information for all matters relating to the Plan as (a)
               the Committee, (b) the Trustee, and (c) the accountant engaged on
               behalf of the Plan by the Sponsor may require for the effective
               discharge of their respective duties.

               13.1.4. The Trustee, in accordance with the trust agreement
between the Sponsor and the Trustee, shall have the authority to manage the
Trust, except that (1) the Committee may in its discretion employ at any time
and from time to time an investment manager (as defined in section 3(38) of
ERISA) to direct the Trustee with respect to all or a designated portion of the
assets comprising the Fund, and (2) Participants may choose to have their
contributions invested among the available Investment Funds.

                                       38
<PAGE>

                      13.1.4.1.     Each Participant in the Plan shall be a
               "named fiduciary," within the meaning of section 402 of ERISA, to
               the extent that Employer Stock, whether or not allocated to his
               accounts, are voted or tendered according to the Participant's
               directions.

         13.2. Appointment and Removal of Committee . The Committee shall
consist of at least one person who shall be appointed and may be removed by the
Board of Directors. Persons appointed to the Committee may be, but need not be,
employees of the Employer. Any Committee member may resign by giving written
notice to the Board of Directors, which notice shall be effective 30 days after
delivery. Notwithstanding the foregoing, any Committee member who is an Employee
of the Employer shall be deemed to have resigned from the Committee effective
upon his termination of employment. A Committee member may be removed by the
Board of Directors by written notice to such Committee member, which notice
shall be effective upon delivery. The Board of Directors shall promptly select a
successor following the resignation or removal of the Committee member, if
necessary to maintain a Committee of at least one member.

         13.3. Compensation and Expenses of Committee. Members of the Committee
who are Employees shall serve without compensation. Members of the Committee who
are not Employees may be paid reasonable compensation for services rendered to
the Plan. Such compensation, if any, and all ordinary and necessary expenses of
the Committee shall be paid by the Fund unless paid by the Employer.

         13.4. Committee Procedures. The Committee may enact such rules and
regulations for the conduct of its business and for the administration of the
Plan as it may deem desirable. The Committee may act either at meetings at which
a majority of its members are present or by a writing signed by a majority of
its members without the holding of a meeting. Records shall be kept of the
actions of the Committee. No member of the Committee who is a Participant in the
Plan shall vote upon any matter affecting only his Account.

         13.5. Plan Interpretation. The Committee shall have the authority and
responsibility to interpret and construe the Plan and to decide all questions
arising thereunder, including without limitation, questions of eligibility for
participation, eligibility for benefits, Account balance, and the timing of the
distribution thereof, and shall have the authority to deviate from the literal
terms of the Plan to the extent the Committee shall determine to be necessary or
appropriate to operate the Plan in compliance with the provisions of applicable
law.

         13.6. Consultants. The Committee may, and to the extent necessary for
the preparation of required reports shall, employ accountants, actuaries,
attorneys and other consultants or advisors. The fees charged by such
accountants, actuaries, attorneys and other consultants or advisors shall be
paid by the Fund unless paid by the Employer.

         13.7. Method of Handling Plan Funds . No Committee member shall, in his
capacity as a Committee member, at any time, handle any assets of the Fund. All
payments to the Fund shall be made by the Employee of the Participating Employer
charged with that responsibility. Benefit payments from the Fund shall be made
by the Trustee.

         13.8. Delegation and Allocation of Responsibility . The Committee may
delegate any Plan administrative responsibility to any employee of the Employer
and may allocate any of its responsibilities to one or more members of the
Committee. In the event of any such delegation or allocation the Committee shall
establish procedures for the thorough and frequent review of the performance of
such duties. Persons to whom responsibilities have been delegated may not

                                       39
<PAGE>

delegate to others any discretionary authority or discretionary control with
respect to the management or administration of the Plan.

         13.9. Claims Procedure . The Committee shall administer a claims
procedure as follows:

               13.9.1. Initial Claim. A Participant or Beneficiary who believes
himself entitled to benefits hereunder (the "Claimant"), or the Claimant's
authorized representative acting on behalf of such Claimant, must make a claim
for those benefits by submitting a written notification of his claim of right to
such benefits. Such notification must be on the form and in accordance with the
procedures established by the Committee. Except for benefits paid pursuant to
Section 8.1.2, no benefit shall be paid under the Plan until a proper claim for
benefits has been submitted. The claim shall be reviewed by the Director of
Global Benefits.

               13.9.2. Procedure for Review. The Committee shall establish
administrative processes and safeguards to ensure that all claims for benefits
are reviewed in accordance with the Plan document and that, where appropriate,
Plan provisions have been applied consistently to similarly situated Claimants.
Any notification to a Claimant required hereunder may be provided in writing or
by electronic media, provided that any electronic notification shall comply with
the applicable standards imposed under DOL Reg. ss.2520.104b-1(c).

               13.9.3. Claim Denial Procedure. If a claim is wholly or partially
denied, the Director of Global Benefits shall, notify the Claimant within a
reasonable period of time, but not later than 90 days after receipt of the
claim, unless the Director of Global Benefits determines that special
circumstances require an extension of time for processing the claim. If the
Director of Global Benefits determines that an extension of time for processing
is required, written notice of the extension shall be furnished to the Claimant
prior to the termination of the initial 90-day period. In no event shall such
extension exceed a period of 180 days from receipt of the claim. The extension
notice shall indicate: (i) the special circumstances necessitating the extension
and (ii) the date by which the Director of Global Benefits expects to render a
benefit determination. A benefit denial notice shall be written in a manner
calculated to be understood by the Claimant and shall 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 ss.502(a) of
ERISA following an adverse benefit determination on review.

               13.9.4. Appeal Procedure. In the case of an adverse benefit
determination, the Claimant or his representative shall 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 or his representative
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. A
document, record or other information shall be deemed "relevant" to a claim in
accordance with DOL Reg. ss.2560.503-1(m)(8). The Claimant or his representative
shall 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 or his representative relating to
the claim, without regard to whether such information was submitted or
considered in the initial benefit determination.

                                       40
<PAGE>

               13.9.5. Decision on Appeal. The Committee shall notify a Claimant
of its decision on appeal within a reasonable period of time, but not later than
60 days after receipt of the Claimant's 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 shall be furnished to
the Claimant prior to the termination of the initial 60-day period. In no event
shall such extension exceed a period of 60 days from the end of the initial
period. The extension notice shall 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 shall be
written in a manner calculated to be understood by the Claimant and shall 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 Claimant's claim (the relevance of a document,
record or other information will be determined in accordance with DOL Reg.
ss.2560.503-1(m)(8)) and (iv) a statement of the Claimant's right to bring a
legal action under ss.502(a) of ERISA.

               13.9.6. 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 XIV. AMENDMENT AND TERMINATION.
                    ---------------------------------------

         14.1. Amendment . The Sponsor shall have the right at any time by
action of the Compensation Committee of the Board of Directors to amend the Plan
in whole or in part, including retroactively to the extent necessary. The
Benefits Administration Committee shall have the ability at any time to amend
the Plan to comply with applicable laws or to change the Plan in a manner which
does not result in a material increase in the Sponsor's contributions to or the
cost of maintaining the Plan. The duties, powers and liability of the Trustee
hereunder shall not be increased without its written consent. The amount of
benefits which at the later of the adoption or effective date of such amendment
shall have accrued for any Participant or Beneficiary hereunder shall not be
adversely affected thereby.

No such amendment shall have the effect of revesting in the Employer any part of
the principal or income of the Fund. No amendment may eliminate or reduce any
early retirement benefit or subsidy that continues after retirement. Unless
expressly provided for in an amendment, it shall not affect the rights and
obligations of any Participant who terminated employment prior to the effective
date of the amendment.

         14.2. Termination or Partial Termination . While each Participating
Employer intends to continue the Plan indefinitely, it reserves the right to
terminate or partially terminate the Plan at any time as to its Employees. If
the Plan is terminated or partially terminated, or the Participating Employer
ceases completely to make contributions hereunder, all nonvested amounts then
standing to the credit of the Accounts of the Participants affected by such
termination or partial termination and who are then employed by the Employer, or
who have been credited with a Year of Service during the Plan Year in which the
termination or partial termination occurs in the case of a Participant who is
not employed by the Participating Employer as of the date of termination or
partial termination, shall immediately vest and be nonforfeitable and the Fund

                                       41
<PAGE>

shall continue to be held for distribution as provided in Article VIII or in the
case of a complete termination, shall be distributed as soon as administratively
feasible after such termination; provided that the Employer has not established
or does not maintain another defined contribution plan (other than an employee
stock ownership plan as defined in section 4975(e)(7) of the Code) that
constitutes a "successor plan" within the meaning of Treas. Reg. ss.
1.401(k)-1(d)(3), or other applicable authority. No Employees of the
Participating Employer shall thereafter be admitted to the Plan as new
Participants, and the Participating Employer shall make no further contributions
to the Fund.

                   ARTICLE XV. VETERANS' REEMPLOYMENT RIGHTS.
                   ------------------------------------------

               Notwithstanding any provision of the Plan to the contrary,
contributions, benefits and service credit with respect to Qualified Military
Service will be provided in accordance with section 414(u) of the Code as
summarized below:

         15.1. Crediting Service.
               -----------------

               15.1.1. An Employee reemployed by the Employer in accordance with
Chapter 43 of Title 38 of the United States Code shall be treated as not having
incurred a Break in Service with the Employer by reason of such Employee's
period of Qualified Military Service.

               15.1.2. Upon reemployment by the Employer in accordance with
Chapter 43 of Title 38 of the United States Code, an Employee's period of
Qualified Military Service shall be deemed service with the Employer for
purposes of determining the vested percentage of the Employee's Account.

         15.2. Elective Deferral Contributions.
               -------------------------------

               15.2.1. Any Employee who has performed Qualified Military Service
and who is entitled to the benefits of Chapter 43 of Title 38 of the United
States Code shall be permitted to make additional Elective Deferral
Contributions under the Plan during the period which begins on the Employee's
reemployment date with the Employer and has the same length as the lesser of:

                      15.2.1.1.     the product of 3 and the period of Qualified
               Military Service which resulted in such rights; and

                      15.2.1.2.     5 years.

               15.2.2. Notwithstanding any provision of this Plan to the
contrary, the maximum amount of Elective Deferral Contributions that an Employee
shall be permitted to make pursuant to the preceding subsection shall be the
amount of Elective Deferral Contributions that the Employee would have been
permitted to make under the Plan in accordance with the limitations of sections
402(g), 404(a) and 415 of the Code during the period of Qualified Military
Service if the Employee had continued to be employed by the Employer during such
period and had received compensation in accordance with Section 15.4 below. The
amount of Elective Deferral Contributions determined under the preceding
sentence shall be reduced by any Elective Deferral Contributions actually made
by the Employee to the Plan during the period of Qualified Military Service.

         15.3. Matching Contributions . Each Participating Employer shall make
Matching Contributions with respect to any Elective Deferral Contributions made
by an Employee pursuant to the preceding Section which would have been required

                                       42
<PAGE>

had such Elective Deferral Contributions actually been made during the period of
such Employee's Qualified Military Service.

         15.4. Compensation . An Employee who is in Qualified Military Service
shall be treated as receiving compensation from the Employer during such period
of Qualified Military Service equal to:

               15.4.1. the compensation the Employee would have received during
such period if the Employee were not in Qualified Military Service, determined
based on the rate of pay the Employee would have received from the Employer but
for absence during the period of Qualified Military Service; or

               15.4.2. if the compensation the Employee would have received
during such period was not reasonably certain, the Employee's average
compensation from the Employer during the 12-month period immediately preceding
the Qualified Military Service (or, if shorter, the period of employment
immediately preceding the Qualified Military Service).

         15.5. Qualified Military Service . For purposes of the Plan, the term
"Qualified Military Service" means any service in the "uniformed services" (as
defined in Chapter 43 of Title 38 of the United States Code) by any Employee if
such Employee is entitled to reemployment rights under such Chapter with respect
to such service.

         15.6. Earnings and Forfeitures . Nothing in this Article XV shall be
construed as requiring:

               15.6.1. any crediting of earnings to an Employee with respect to
any contribution before such contribution is actually made; or

               15.6.2. the allocation of any forfeiture with respect to the
period of an Employee's Qualified Military Service.

                           ARTICLE XVI. MISCELLANEOUS
                           --------------------------

         16.1. Merger, Consolidation or Transfer of Assets or Liabilities . The
Compensation Committee of the Board of Directors (or its authorized delegate)
has the right to merge or consolidate the Plan with any other defined
contribution plan qualified under section 401(a) of the Code, or to transfer
Plan assets or liabilities to any other defined contribution pension plan
qualified under section 401(a) of the Code; provided that the amounts standing
to the credit of each Participant's Account immediately after any such merger,
consolidation or transfer of assets or liabilities shall be at least equal to
the amounts standing to the credit of the Participant's Account immediately
before such merger, consolidation or transfer.

         16.2. Limited Purpose of Plan . The establishment or existence of the
Plan shall not confer upon any employee the right to be continued as an
Employee. The Employer expressly reserves the right to discharge any Employee
whenever in its judgment its best interests so require.

         16.3. Non-alienation . No benefit payable under the Plan shall be
subject in any manner to anticipation, assignment, or voluntary or involuntary
alienation. This Section shall not preclude the Trustee from complying with the
terms of a qualified domestic relations order as defined in section 414(p) of
the Code.

                                       43
<PAGE>

         16.4. Facility of Payment . If the Committee, in its sole discretion,
deems a Participant or Beneficiary who is entitled to receive any payment
hereunder to be incompetent to receive the same by reason of age, illness or any
infirmity or incapacity of any kind, the Committee may direct the Trustee to
apply such payment directly for the benefit of such person, or to make payment
to any person selected by the Committee to disburse the same for the benefit of
the Participant or Beneficiary. Payments made pursuant to this Section shall
operate as a discharge, to the extent thereof, of all liabilities of the
Participating Employers, the Committee, the Trustee, and the Fund to the person
for whose benefit the payments are made.

         16.5. Impossibility of Diversion . All Plan assets shall be held as
part of the Fund, until paid to satisfy allowable Plan expenses or to provide
benefits to Participants or their Beneficiaries. It shall be impossible, except
as specifically provided herein, for any part of the Fund to be used for, or
diverted to, purposes other than the exclusive benefit of the Participants or
their Beneficiaries or the payment of the reasonable expenses of the
administration of the Plan.

         16.6. Unclaimed Benefits . If a Participant or Beneficiary to whom a
benefit is payable under the Plan cannot be located following a reasonable
effort to so by the Committee, such benefit shall be forfeited but will be
reinstated if a claim therefor is filed by the Participant or Beneficiary.

         16.7. Construction . The masculine gender includes the feminine and the
singular includes the plural, unless the context clearly indicates otherwise.

         16.8. Governing Law . Except to the extent such laws are superseded by
ERISA, the laws of the State of New Jersey shall govern.

         16.9. Contingent Effectiveness of Plan Amendment and Restatement . The
effectiveness of the Plan as amended and restated, including but not limited to
the contributions made by the Participating Employers, shall be subject to and
contingent upon a determination by the District Director of Internal Revenue
that the Plan and Trust continue to be qualified under the applicable provisions
of the Code. If the District Director determines that the amendment and
restatement adversely affects the qualified status of the Plan or the tax-exempt
status of the Fund, then, upon notice to the Trustee, the Board of Directors
shall have the right further to amend the Plan or to rescind the amendment and
restatement.

         16.10. Special Rule for Sale of Covance Pharmaceutical Packaging
Services Inc. If a Participant is employed by Covance Pharmaceutical Packaging
Services Inc. ("CPPS") on the date the sale of CPPS to Fisher Scientific
International, Inc. ("Fisher") closes (the "CPPS Closing Date"), such
Participant's Account shall become fully (100%) vested as of the CPPS Closing
Date. In addition, such Participant's Account will be credited with a Matching
Contribution for the calendar quarter in which the CPPS Closing Date occurs as
soon as practicable after the CPPS Closing Date. The number of shares of Covance
Inc. common stock to be allocated to such Participant's Account as a result of
such Matching Contribution shall be based on the price of Covance Inc. common
stock on the CPPS Closing Date.

         16.11. Special Rule for Sale of Covance Biotechnology Services Inc. If
a Participant is employed by Covance Biotechnology Services Inc. ("CBSI") on
June 15, 2001, the date CBSI was sold, such Participant's Account shall become
fully (100%) vested as of June 15, 2001.

                                    * * * * *

                                       44
<PAGE>

         To record the adoption of the amendment and restatement of the Plan,
COVANCE INC. has caused its authorized officer to affix its corporate name and
seal as of the day and year first written above.

[CORPORATE SEAL]                            COVANCE INC.

Attest: ___________________                 By: ________________________________

                                       45
<PAGE>

                                   Appendix A

                                  Merged Plans

1.       G.H. Besselaar Associates Profit Sharing 401(k) Plan.

2.       Profit Sharing Plan of Corning Life Sciences Inc.

3.       National Packaging Systems, Inc. 401(k) Plan.

4.       Corning Scicor, Inc. 401(k) Plan.

5.       Covance Health Economics and Outcome Services 401(k) Savings Plan.

6.       GDXI, Inc. 401(k) Plan.

7.       Metpath Profit Sharing Plan of Corning Life Science, Inc.

8.       BAbCo 401(k) Retirement Plan.

                                       46
<PAGE>

                                  SUPPLEMENT A
                                       TO
                       THE STOCK PURCHASE SAVINGS PLAN OF
                                  COVANCE INC.

                            LEVERAGED ESOP PROVISIONS
                            -------------------------

         A-1   Purpose. The purpose of this Supplement A to the Plan is to set
forth the terms of the Plan as applied to the portion of the ESOP attributable
to Exempt Loans as described in subsection A-3.

         A-2   Participation. Each Participant in the Plan shall also be a
Participant in this Supplement A.

         A-3   Exempt Loan. An "Exempt Loan" is any loan to the Plan or Trust
not prohibited by section 4975(c) of the Code, including a loan which meets the
requirements set forth in section 497S(d)(3) of the Code and the regulations
promulgated thereunder, the proceeds of which are used to finance the
acquisition of ESOP Stock or to refinance such a loan. An Exempt Loan shall be
for a specific term, shall bear a reasonable rate of interest and shall not be
payable on demand except in the event of default. An Exempt Loan may be secured
by a pledge of the financed shares so acquired (or acquired with the proceeds of
a prior Exempt Loan which is being refinanced). No other Trust Fund assets may
be pledged as collateral for an Exempt Loan, and no lender shall have recourse
against Trust Fund assets other than any financed shares remaining subject to
pledge. If the lender is a party in interest (under ERISA), the Exempt Loan must
provide for a transfer of Trust Fund assets on default only upon and to the
extent of the failure of the Trust to meet the payment schedule of the Exempt
Loan. Any pledge of financed shares must provide for the release of the shares
so pledged as payments on the Exempt Loan are made by the Trustee and such
financed shares are allocated to Participants' accounts. Payments of principal
on any Exempt Loan shall be made by the Trustee (as directed by the Committee)
only from Employer contributions paid in cash under the Plan to enable the Trust
to repay such Exempt Loan, from earnings attributable to such Employer
contributions and from any cash dividends received by the Trust on such financed
shares or dividends on such other shares of Employer Stock as is permitted under
Code section 404(k).

         A-4   Investment of Exempt Loan Proceeds. The Employer may direct the
Trustee to enter into one or more Exempt Loans to finance the acquisition of
ESOP Stock. Proceeds from an Exempt Loan may be used to acquire ESOP Stock from
the Employer's shareholders or directly from the Employer. If such shares are
purchased from the Employer, no commission may be charged with respect thereto
and the sale price shall not be more than the fair market value thereof, defined
for this purpose with respect to the Employer's common stock to be said common
stock's New York Stock Exchange (or other national stock exchange) closing price
on the first business day immediately preceding the date of sale. There shall be
no limit on the amount of stock of the Employer which may be held at any one
time by the Trustee in the Trust Fund regardless of the percentage which such
stock so held bears to the assets of the Trust Fund or to the outstanding shares
of stock of the Employer or for any other reason.

Notwithstanding any other provision of the Plan, all proceeds of an Exempt Loan
shall be used, within a reasonable time after receipt by the Trust Fund, for the
following purposes:

                                       47
<PAGE>

         (a)   To acquire ESOP Stock;

         (b)   To repay the same Exempt Loan; or

         (c)   To repay any previous Exempt Loan.

ESOP Stock acquired by the Trust Fund through an Exempt Loan shall be initially
maintained in a Suspense Account and shall thereafter be released from the
Suspense Account and allocated to Participants' ESOP Accounts as hereinafter
provided.

         A-5   Supplement A Cash Equivalents Fund. All cash dividends on
Employer Stock held in a Suspense Account or, in the case of allocated shares,
which the Employer directs are to be used to make payments on Exempt Loans and
all Matching Contributions required under Section A-6 shall be credited to the
Supplement A Cash Equivalents Fund pending their application to Exempt Loan
payments. Except as provided under Section 11.6, all such dividends and all
earnings of the Supplement A Cash Equivalents Fund shall be used to make
principal payments on outstanding Exempt Loans to the extent then due. In the
event that the amount of such dividends and earnings exceeds the amount of
principal payable on that date, the excess shall be applied until exhausted to
interest payable on that date, and principal and interest payments due
thereafter. Notwithstanding the preceding sentences of Section A-5, in lieu of
making payments on outstanding Exempt Loans, the Committee may direct that all
or any amount of cash dividends received with respect to Employer Stock
allocated to Participants' Accounts shall be credited proportionately to such
Participants' Accounts pending investment in the Employer Stock Fund. Any amount
that is applied to make a payment on an outstanding Exempt Loan after the last
day of a plan year (the "prior plan year"), but on or before the due date
(including extensions thereof) for the filing of the federal income tax return
of the Employer for the tax year in which the last day of such prior Plan Year
occurs, may be designated by the Employer as a payment with respect to such
prior Plan Year.

         A-6   Coordination with Employer Contributions. For each Plan Year the
Employer shall make contributions under this Section A-6 which, after taking
into account the use of dividends and earnings in accordance with Section A-5,
are sufficient to meet all scheduled payments of principal and interest on
outstanding Exempt Loans. Employer contributions under Section 3.2 shall be
applied against payments on any Exempt Loan to the extent the Committee in its
sole discretion shall determine and ESOP Stock shall then be released. An
Employer's obligations to contribute under Section 3.2 shall be reduced for such
month by the fair market value as of the date of release of the ESOP Stock so
released or otherwise allocated as below provided. To the extent said fair
market value is less than said Employer's obligations under Section 3.2 for any
such month, the Employer shall make further contributions to the Trust Fund to
fully meet said obligations. For each Plan Year, if for a calendar month the
fair market value as of the date of release of the shares so released is in
excess of the Employer's obligations to contribute under Section 3.2 for such
month, the shares released for said month representing the excess ("excess
shares") shall continue to be held by the Trustee and shall thereafter be
allocated to the Participants' Matching Contribution Accounts in the following
manner: first, if in a succeeding calendar month within said Plan Year, the fair
market value of the shares so released for said month are less than the
Employer's obligations to contribute under Section 3.2 for said month, then
"excess shares" remaining unallocated for any prior calendar month in said Plan
Year shall be allocated to the Participants' Matching Contribution Accounts to
the extent that said Employer obligations exceed the value of the released
shares, and for this purpose said "excess shares" to be so allocated shall be
valued at the same value as the value of the shares released for said month; and
second, if as of the last day of the Plan Year there remain "excess shares"
which have not been allocated to Participants' Matching Contribution Accounts as
aforesaid, said "excess shares" shall be allocated as of the last day of the
Plan Year to the Participants' Matching Contribution Accounts, as the Committee
may determine in its sole discretion on a year-to-year basis, in direct

                                       48
<PAGE>

proportion to the value (determined as of the date allocated to the
Participants' Matching Contribution Accounts) of those shares released and
allocated to the Fund so determined by the Committee, together with all other
Employer contributions to Participants' Matching Contribution Accounts for said
Plan Year. In addition to the foregoing contributions, in any Plan Year, the
Employer may make supplemental contributions to be used by the Trustee to prepay
any Exempt loan, to pay expenses of the Plan and any related trust and to
satisfy the dividend requirements for that year with respect to Employer Stock
allocated to Participants' Matching Contribution Accounts. All Matching
Contributions shall be used to make payments on Exempt Loans to the extent
required to meet any scheduled payments of principal and interest after taking
into account the use of dividends and earnings in accordance with Section A-5.

         A-7   Release of Employer Stock From Suspense Account. As of the last
day of each Plan Year, of each calendar quarter in the case of the Employer
Stock allocable for the year as dividend replacements under paragraph A-8(a), or
of such other period provided under the terms of an Exempt Loan, throughout the
duration of an Exempt Loan, a portion of the Employer Stock acquired with the
proceeds of such Exempt Loan shall be withdrawn from the Suspense Account and
allocated to eligible Participants' Matching Contribution Accounts in accordance
with the provisions of Section A-8.

               (a)    Subject to the provisions of paragraph (b) below, the
number of shares of Employer Stock which shall be released from the Suspense
Account for any Plan Year (calculated separately with respect to each Exempt
Loan) shall be equal to the product of:

                      (i)    the number of shares of Employer Stock acquired
               with the proceeds of the Exempt Loan

                      Multiplied by
                      -------------

                      (ii)   a fraction, the numerator of which is the amount of
               principal and interest paid on that loan for that Plan Year and
               the denominator of which is the amount of principal and interest
               paid or payable on that loan for that Plan Year and for all
               future years.

For purposes of determining the fraction in (ii), if the interest rate under the
Exempt Loan is variable, the interest rate to be paid in future months shall be
assumed to be equal to the interest rate applicable as of the applicable month.

               (b)    Notwithstanding the provisions of paragraph (a) above, if
provided by the terms of an Exempt Loan or directed by the Committee prior to
the first payment of interest on any Exempt Loan, the number of shares of
Employer Stock attributable to such Exempt Loan which are withdrawn from the
Suspense Account for any Plan Year shall be proportionate to principal payments
only, provided that:

                      (i)    such withdrawal is consistent with the provisions
               of the Exempt Loan with respect to the release of Employer Stock
               as collateral, if any, for such loan;

                      (ii)   the Exempt Loan provides for annual payments of
               principal and interest at a cumulative rate that is not less
               rapid at any time than level annual payments of such amounts for
               ten years;

                                       49
<PAGE>

                      (iii)  interest is disregarded for purposes of determining
               such release only to the extent that it would be determined to be
               interest under standard loan amortization tables; and

                      (iv)   the term of the ESOP Loan, together with any
               renewal, extension or refinancing thereof, does not exceed ten
               years.

               (c)    Notwithstanding the foregoing, in the event such Exempt
Loan shall be repaid with the proceeds of a subsequent Exempt Loan (the
"Substitute Loan"), such repayment shall not operate to release all such ESOP
Stock in the suspense account, but, rather, such release shall be effected
pursuant to the foregoing provisions of this Section on the basis of payments of
principal and interest on such Substitute Loan.

               (d)    If at any time there is more than one Exempt Loan
outstanding, then separate Suspense Accounts may be established for each such
Loan. Each Exempt Loan for which a separate Suspense Account is maintained may
be treated separately for purposes of the provisions governing the release of
ESOP Stock from Suspense Accounts under this Section and for purposes of the
provisions governing the application of Employer contributions to repay an
Exempt Loan.

         A-8   Allocation and Crediting of Employer Stock to Matching
Contribution Accounts and Application to Plan Limitations. Employer Stock
released from the Suspense Account during any Plan Year shall be allocated and
credited as follows:

               (a)    To the extent that dividends on Employer Stock previously
allocated to the individual Account of a Participant have been used to make
payments on an Exempt Loan, such account shall be credited with Employer Stock
with a fair market value determined as of the last day of the month preceding
the month of the dividend payment date equal to the amount of such dividend.

               (b)    As of each calendar month, any Employer Stock released
from the Suspense Account during the Plan Year ending on that date and not
credited in accordance with paragraph (a) shall be credited to the Matching
Contribution Accounts of eligible Participants pursuant to Section 4.2.2, in
order to satisfy the obligation under Section 3.2.1.

               (c)    For purposes of Section 4.4 of the Plan, Matching
Contributions for any Plan Year which are utilized to make any payment of
principal or interest on an Exempt Loan shall be deemed to have been allocated
among Participants in the same ratios as the number of shares of Employer Stock
released from the Suspense Account as credited in accordance with paragraph (b)
above, without regard to the value of the Employer Stock released from the
Suspense Account.

               (d)    All Employer Stock allocated to Participants in accordance
with paragraph (b) above shall be treated as Matching Contributions for purposes
of Section 3.2 and as "Matching Contributions" for purposes of section 401(m) of
the Code.

               (e)    It is intended that the provisions of this Supplement A
shall be applied and construed in a manner consistent with the requirements and
provisions of Treasury Regulations ss. 54.4975-7(b) (8), and any successor
regulation thereto. The number of shares allocable to a Participant's Matching
Contribution Account shall be the number of shares which bears the same ratio to
the total shares released for such month and allocable to the contribution made

                                       50
<PAGE>

by or on behalf of such Participant by his participating Employer under Section
3.2 for such month bears to the total Employer contributions under Section 3.2
made on behalf of all such Participants for such month, provided, however, that
the fair market value of the shares so allocated as of the date of such
allocation shall not exceed the Employer's obligation to contribute under such
Sections on behalf of such Participant for such month, and any shares in excess
of said participating Employer obligations ("excess shares") for all
Participants are to be then allocated as described above in Section A-6.

               (f)    Notwithstanding the foregoing provisions of this Section,
if more than one-third of the total allocations to Participants' accounts with
respect to a Plan Year would be allocated in the aggregate to the accounts of
Highly Compensated Employees and attributable to the Matching Contribution
allocated to Employer Stock, then the allocations to the accounts of Highly
Compensated Employees shall be reduced, pro rata, in an amount sufficient to
reduce the amounts allocated to the accounts of such Participants to an amount
not in excess of one-third of the total allocations to Participants' accounts
with respect to such Plan Year, and any shares of Employer Stock which are
prevented from being allocated due to said restriction shall be allocated as
though Highly Compensated Employees did not participate in the Plan.

         A-9   Restrictions on ESOP Stock. Other than a put option described in
Section 8.12 or as otherwise required by applicable law, ESOP Stock shall not be
subject to a put, call or other option or buy-sell or similar arrangement while
held by and when distributed from the Plan, whether or not the Plan is then an
employee stock ownership plan and whether or not the Exempt Loan, the proceeds
of which were used to purchase the ESOP Stock, has been repaid.

                                       51
<PAGE>

                                  SUPPLEMENT B
                                       TO
                       THE STOCK PURCHASE SAVINGS PLAN OF
                                  COVANCE INC.

                             PARTICIPATING EMPLOYERS
                             -----------------------
                              (As of June 1, 2001)

                             o      Covance Inc.

                             o      Covance Periapproval Services Inc.

                             o      Covance Laboratories Inc.

                             o      Covance Research Products Inc.

                             o      CRPP Inc.

                             o      Covance Central Laboratories Services
                                    Limited Partnership

                             o      Covance Biotechnology Services Inc.

                             o      Covance Classic Laboratories Services Inc.

                             o      Covance Clinical Research Unit Inc.

                             o      Covance Health Economics and Outcome
                                    Services Inc.

                             o      Covance Central Diagnostics Inc.

                             o      Covance Antibody Services Inc.

                             o      Nexigent Inc.

                             o      Covance Bioanalytical Services LLC

                             o      Covance Preclinical Corporation

                                       52

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