Document:

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                                                                    Exhibit 10.6

                         REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT") dated as of June __,
2000, by and among COVALENT GROUP, INC, a Nevada corporation, with headquarters
located at One Glenhardie Corporate Center, 1275 Drummers Lane, Suite 100,
Wayne, Pennsylvania 19087 (the "COMPANY"), and the individuals or entities
identified on Exhibit A attached hereto (the "INVESTORS").
              ---------

                                    WHEREAS:

     A.   Covalent Partners, LLC, a Delaware limited liability company
("COVALENT PARTNERS") executed certain promissory notes in the original
aggregate principal amount of $8,725,000, each dated January 20, 2000 (the
"PROMISSORY NOTES") in favor of the Investors, pursuant to which Covalent
Partners delivered as full payment of the Promissory Notes an aggregate of
3,158,333 shares (together with the 645,945 shares of Common Stock held by
Covalent Partners, the "SHARES") of the Company's common stock (the "COMMON
STOCK");

     B.   In connection with the above transaction, Covalent Partners and the
Investors entered into a certain Stockholder Agreement dated January 20, 2000
(the "STOCKHOLDER AGREEMENT") pursuant to which Covalent Partners agreed to
cause the Company to provide certain registration rights under the Securities
Act of 1933, as amended, and the rules and regulations thereunder as amended or
supplemented from time to time, or any successor thereto (the "1933 ACT"), and
applicable state securities laws, subject to the conditions contained herein;

     C.   Following the above transaction, Covalent Partners make additional
transfers in the aggregate amount of 1,211,158 Shares to certain of the
Investors;

     D.   The Company and the Investors are entering into this Agreement to set
forth the terms and conditions under which the Company will file and maintain
the effectiveness of a shelf registration statement for the Shares.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound,
the Company and the Investors hereby agree as follows:

1.   DEFINITIONS. As used in this Agreement, the following terms shall have the
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following meanings unless the context shall otherwise require:

          a. "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
registration effected by preparing and filing a Registration Statement or
Statements in compliance with the 1933 Act and pursuant to Rule 415 under the
1933 Act or any successor rule providing for offering securities on a continuous
basis ("RULE 415"), and the declaration or ordering of effectiveness of such
Registration Statement by the United States Securities and Exchange Commission
(the "SEC").

          b. "REGISTRABLE SECURITIES" means the Shares and any shares of capital
stock issued or issuable as a dividend on or in exchange for or otherwise with
respect to any of the foregoing.

          c. "REGISTRATION PERIOD" means the period beginning on the date on
which the initial Registration Statement filed under this Agreement is declared
effective by the SEC and ending on the date which is the earlier of: (i) the
date on which all of the Registrable Securities have been sold pursuant to any
Registration Statement, whether filed pursuant to this Agreement or otherwise;
(ii) the first date on which public sale of all of the Registrable Securities
held by each Investor is permitted to be made in any period of 90 days pursuant
to Rule 144 or any other rule or regulation permitting public sale without
registration under the 1933 Act (in any case, as amended or supplemented, or any
successors thereto); or (iii) January 15, 2002.
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          d. "REGISTRATION STATEMENT" means a registration statement of the
Company under the 1933 Act.

     2.   REGISTRATION. The Company shall use its best efforts to effect the
          ------------
registration of all of the Registered Securities under the 1933 Act on a
Registration Statement on Form S-3, to obtain effectiveness of the Registration
Statement filed to effect such registration as soon as reasonably practicable
thereafter, and to continue to use such best efforts to maintain such
effectiveness for the Registration Period, subject to the provisions of Sections
4 and 5 hereof. Notwithstanding anything herein to the contrary, the Company
shall have no obligation to file a Registration Statement if it is ineligible to
use short form registration on Form S-3.

     3.   REGISTRATION PROCEDURES.  In connection with the registration of the
          -----------------------
Registrable Securities, pursuant to Section 2, the Company shall:

          a. prepare and file with the SEC a Registration Statement with respect
to the Registrable Securities, as expeditiously as is reasonably practicable,
and thereafter use its best efforts to cause such Registration Statement to
become effective as soon as reasonably practicable after such filing, and keep
the Registration Statement effective pursuant to Rule 415 until the expiration
of the Registration Period, which Registration Statement (including any
amendments or supplements thereto and prospectuses contained therein) shall not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein, or necessary to make the statement therein not
misleading;

          b. prepare and file with the SEC such amendments (including
post-effective amendments) and supplements to the Registration Statement and the
prospectus used in connection with the Registration Statement as may be
necessary to keep the Registration Statement effective at all times during the
Registration Period, and, during such period, comply with the Company's
obligations under the provisions of the 1933 Act with respect to the disposition
of all Registrable Securities of the Company covered by the Registration
Statement until such time as all of such Registrable Securities have been
disposed of in accordance with the intended methods of disposition by the seller
or sellers thereof as set forth in the Registration Statement;

          c. furnish to each Investor (i) promptly after the same is prepared
and publicly distributed, filed with the SEC, or received by the Company, one
copy of the Registration Statement and any amendment thereto, and each
preliminary prospectus and prospectus and each amendment or supplement thereto
(ii) such number of copies of a prospectus, including a preliminary prospectus,
and all amendments and supplements thereto and such other documents in the
Company's possession as the Investors may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by the Investors.
The Company will immediately notify each Investor by facsimile of the
effectiveness of the Registration Statement or any post-effective amendment. The
Company will use its best efforts to respond to any and all comments received
from the SEC, with a view towards causing the Registration Statement or any
amendment thereto to be declared effective by the SEC as soon as practicable and
shall file an acceleration request as soon as practicable following the
resolution or clearance of all SEC comments or, if applicable, following
notification by the SEC that any such Registration Statement or any amendment
thereto will not be subject to review;

          d. use commercially reasonable efforts to register or qualify the
Registrable Securities covered by the Registration Statement under such other
securities or "blue sky" laws of such jurisdictions in the United States, to
the extent required pursuant to such laws, and as the Investors who hold an
interest in the Registrable Securities being offered reasonably request, and to
maintain such registration or qualification during the Registration Period,
provided, however, that the Company shall not for any purpose be required in
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connection therewith or as a condition thereto to (i) qualify to do business in
any jurisdiction where it would not otherwise be required to qualify but for
this Section 3(d), (ii) subject itself to general taxation in any such
jurisdiction, (iii) file a general consent to service of process in any such
jurisdiction, (iv) provide any undertakings that cause the Company undue expense
or burden, or (v) make any change in its charter or bylaws, which in each case
the Board of Directors of the Company determines to be contrary to the best
interests of the Company and its stockholders;

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          e. as promptly as practicable after receipt of a notice from an
Investor pursuant to Section 5(d), but in no event later than the Notice Period
(as defined herein), notify the Investors of the happening of any event, of
which the Company has knowledge, as a result of which the prospectus included in
the Registration Statement, as then in effect, includes an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which such statements were made, not misleading, and use its best efforts
promptly to prepare a supplement or amendment to the Registration Statement to
correct such untrue statement or omission, and deliver such number of copies of
such supplement or amendment to the Investors as the Investors may reasonably
request;

          f. use its best efforts to prevent the issuance of any stop order or
other suspension of effectiveness of a Registration Statement, and, if such an
order is issued, to obtain the withdrawal of such order at the earliest possible
moment and to notify the Investors of the issuance of such order and the
resolution thereof;

          g. make generally available to its security holders as soon as
practical, but not later than ninety (90) days after the close of the period
covered thereby, an earnings statement (in form complying with the provisions of
Rule 158 under the 1933 Act) covering a twelve-month period beginning not later
than the first day of the Company's fiscal quarter next following the effective
date of the Registration Statement;

          h. provide a transfer agent and registrar, which may be a single
entity, for the Registrable Securities not later than the effective date of the
Registration Statement;

          i. use its best efforts to list the Registrable Securities covered by
the Registration Statement with the securities exchange, or to cause such
Registrable Securities to be designated and quoted or approved for designation
or quotation as a national market system security on the inter-dealer quotation
system, on which the Common Stock is then listed or designated;

          j. cooperate with the Investors to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be offered
pursuant to such Registration Statement and enable such certificates to be in
such denominations or amounts, as the case may be, as the Investors may
reasonably request and registered in such names as the Investors may reasonably
request upon delivery of documentation evidencing any such transfers reasonably
requested by the Company, including, but not limited to, opinions of counsel
related to such transfers; and

          k. At the request of the holders of a majority-in-interest of the
Registrable Securities, the Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to a
Registration Statement and the prospectus used in connection with the
Registration Statement as may be necessary in order to change the plan of
distribution set forth in such Registration Statement.

     4.   LIMITATIONS ON REGISTRATION RIGHTS; HOLDBACK. Notwithstanding anything
          --------------------------------------------
to the contrary contained in this Agreement:

a.  The Company may delay the filing, suspend the effectiveness of a
Registration Statement under Section 2(a) or require the Investors to suspend
sales or other dispositions of Registrable Securities under an effective
Registration Statement, (i) if in the Company's Board of Directors' judgment,
the sale of Registrable Securities pursuant thereto would interfere with or be
detrimental to a planned offering, by the Company of any of the Company's
securities, (ii) if in the Company's Board of Directors' judgment, the sale of
Registrable Securities thereunder would have a material adverse effect on the
business, prospects, operations, results of operations, assets, liabilities, or
condition (financial or otherwise) of the Company; or (iii) at any time when the
Company is engaged in discussions concerning any merger, financing, business
combination, sale of the Company or any similar transaction or when the Company
would be required to disclose in such Registration Statement material
information that it would not otherwise be required to disclose in its filings
with the SEC pursuant to the Securities Exchange Act of 1934, and the rules and
regulations thereunder as amended or supplemented from time to time, or any
successor thereto (the "1934 ACT") and that it has not then disclosed in such
filings with the SEC (an "ALLOWED DELAY"). In the event of an Allowed Delay, the
Company shall following the receipt of a notice pursuant to Section 5(d), (x)
notify

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the Investors (a "DELAY NOTICE") of the existence (but not the substance) of
circumstances giving rise to an Allowed Delay and (y) advise the Investors in
writing that no sale shall occur under the Registration Statement. Upon
expiration of aNotice Period during which conditions causing an Allowed Delay
existed, the Investors may submit an additional notice pursuant to Section 5(d),
subject to compliance with this Section 4(a). The Company shall prepare a
supplement or amendment when necessary pursuant to Section 3(e).

          b. If during any period when a Registration Statement covering
Registrable Securities filed pursuant to Section 2(a) is effective, the Company
proposes to file a Registration Statement on Forms S-1 or S-4 (or any of their
respective successor forms), then the Company shall have the right to terminate
the effectiveness of the Registration Statement covering such Registrable
Securities for a period of not more than ninety (90) days. During such ninety
(90) day period the Company shall use reasonable efforts to prepare and file a
Registration Statement covering the shares of Common Stock sought to be
registered by the Company and the Registrable Securities for which such
Registration Statement was filed pursuant to Section 2(a). In any such event,
the Investors shall include such Registrable Securities in the Company
Registration Statement.

          c. If the Company shall at any time register any of its securities
under the 1933 Act, for offer or sale to the public, then the Investors shall
not make any short sale of, grant an option for the sale, assignment, transfer,
pledge, hypothecation, gift or other disposition of any Registrable Securities
(other than for the public sale of those Registrable Securities included in and
sold pursuant to such registration) without the prior written consent of the
Company for such period as may be designated by the Company, or, if the
registration shall be, in whole or in part, an underwritten offering, the
managing underwriter, in writing to the Investors; provided that (i) no such
period shall begin more than ten (10) days prior to the effectiveness of the
registration statement pursuant to which such public offer or sale will be made
and shall not last more than ninety (90) days after the effective date of such
registration statement or such longer period requested by such managing
underwriter and (ii) all executive officers and directors of the Company agree
to comparable restrictions with respect to such offering.

     5.   OBLIGATIONS OF THE INVESTORS. In connection with the registration of
          ----------------------------
 the Registrable Securities, the Investors shall:

          a. furnish to the Company a Questionnaire for Selling Stockholders in

the form attached to this Agreement as Exhibit B and such other information
                                       ---------
regarding itself, the Registrable Securities held by it and the intended method
of disposition of the Registrable Securities held by it as shall be reasonably
required to effect the registration of such Registrable Securities and shall
execute such documents in connection with such registration as the Company may
reasonably request;

          b. cooperate with the Company as reasonably requested by the Company
in connection with the preparation and filing of the Registration Statement
hereunder;

          c. upon receipt of a Delay Notice from the Company , immediately
discontinue any actions in connection with the disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities until, , the Investors' receipt of the copies of the supplemented or
amended prospectus contemplated by Section 3(e) or, written notification by the
Company of the resolution of the event and authority to continue the disposition
of Registrable Securities pursuant to the Registration Statement, and, if so
directed by the Company, deliver to the Company (at the expense of the Company)
or destroy (and deliver to the Company a certificate of destruction) all copies
in the Investors' possession, of the prospectus covering such Registrable
Securities current at the time of receipt of the Delay Notice;

          d. notify the Company of its desire to sell Registrable Securities
pursuant to the Registration Statement filed under this Agreement at least three
(3) business days prior to any intended sale of such Registrable Securities
pursuant to such Registration Statement (the "Notice Period");

          e. upon receipt of any Delay Notice, immediately discontinue
disposition of Registrable Securities until the expiration of the Notice Period
or any extension thereof pursuant to a subsequent Delay Notice;

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          f. sell, transfer and otherwise dispose of the Registrable Securities
only pursuant to transactions described in the plan of distribution section of
the Registration Statement; and

          g. comply with all applicable laws and regulations in connection with
any sale, transfer or other disposition of Registrable Securities.

     6.   EXPENSES OF REGISTRATION.  All reasonable expenses, other than
          ------------------------
underwriting fees, discounts and commissions (which shall be borne by the
Investors), incurred in connection with registrations, filings or qualifications
pursuant to the Company's obligations under Section 2 and 3 including, without
limitation, all registration, listing and qualifications fees, printers and the
Company's accounting fees, and the fees and disbursements of counsel for the
Company, shall be borne by the Company.

     7.   INDEMNIFICATION. In the event any Registrable Securities are included
          ---------------
in a Registration Statement under this Agreement:

          a. To the extent permitted by law, the Company will indemnify, hold
harmless and defend the Investors, each of the Investors' directors, officers,
partners, employees, agents and each person who controls the Investors within
the meaning of the 1933 Act or the 1934 Act, if any, (each, an "INVESTOR
INDEMNIFIED PERSON"), against any losses, claims, damages, liabilities or
expenses (collectively, together with actions, proceedings or inquiries by any
regulatory or self-regulatory organization, whether commenced or threatened, in
respect thereof, "CLAIMS") to which any of them may become subject insofar as
such Claims are caused by: (i) any untrue statement or alleged untrue statement
of a material fact in a Registration Statement or the omission or alleged
omission to state therein a material fact required to be stated or necessary to
make the statements therein not misleading, (ii) any untrue statement or alleged
untrue statement of a material fact contained in any preliminary prospectus if
used prior to the effective date of such Registration Statement, or contained in
the final prospectus (as amended or supplemented, if the Company files any
amendment thereof or supplement thereto with the SEC) or the omission or alleged
omission to state therein any material fact necessary to make the statements
made therein, in light of the circumstances under which the statements therein
were made, not misleading, or (iii) any violation or alleged violation by the
Company of the 1933 Act, the 1934 Act, any other law, including, without
limitation, any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities arising solely from
actions taken by the Company (the matters in the foregoing clauses (i) through
(iii) being, collectively, "VIOLATIONS"). Subject to the restrictions set forth
in Section 7(c) with respect to the number of legal counsel, the Company shall
reimburse the Investor Indemnified Person, promptly as such expenses are
incurred and are due and payable, for any reasonable legal fees or other
reasonable expenses incurred by them in connection with investigating or
defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 7(a): (x) shall
not apply to a Claim to the extent it is caused by a Violation which is based
upon or arises out of information furnished in writing to the Company by any
Investor Indemnified Person or agent for such Investor Indemnified Person
expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto; (y) shall not
apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be
unreasonably withheld; and (z) with respect to any preliminary prospectus or
prospectus, shall not inure to the benefit of any Investor Indemnified Person if
the untrue statement or omission of material fact contained therein was
corrected on a timely basis in the final prospectus or a corrected prospectus,
as then amended or supplemented, such final or corrected prospectus was timely
made available by the Company pursuant to Section 3(c) hereof, and the Investor
Indemnified Person was promptly advised in writing not to use the incorrect
prospectus prior to the use giving rise to a Violation and such Investor
Indemnified Person, notwithstanding such advice, used it. Such indemnity shall
remain in full force and effect regardless of any investigation made by or on
behalf of the Investor Indemnified Person and shall survive the transfer of the
Registrable Securities by the Investors.

          b. In connection with any Registration Statement in which the
Investors are participating, each Investor severally and not jointly will
indemnify, hold harmless and defend, to the same extent and in the same manner
set forth in Section 7(a), the Company, each of its directors, officers,
employees, agents and each person who controls the Company within the meaning of
the 1933 Act or the 1934 Act, any underwriter and any other stockholder selling
securities pursuant to the Registration Statement or any of its directors or
officers or any person

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who controls such stockholder or underwriter within the meaning of the 1933 Act
or the 1934 Act (collectively, a "COMPANY INDEMNIFIED PERSON"), against any
Claim to which any of them may become subject, under the 1933 Act, the 1934 Act
or otherwise, insofar as such Claim is caused by any Violation, in each case to
the extent (and only to the extent) that such Violation is based upon or arises
out of written information furnished to the Company by such Investor or agent
for such Investor expressly for use in connection with such Registration
Statement; and subject to Section 7(c) such Investor will reimburse any legal or
other expenses (promptly as such expenses are incurred and are due and payable)
reasonably incurred by them in connection with investigating or defending any
such Claim; provided, however, that the indemnity agreement contained in
            -----------------
this Section 7(b) shall not apply to amounts paid in settlement of any
Claim if such settlement is effected without the prior written consent
of such Investor, which consent shall not be unreasonably withheld;

provided, further, however, that such Investor shall be liable under
--------------------------
this Agreement (including this Section 7(b) and Section 8) for only that amount
as does not exceed the net proceeds (i.e., after deduction of selling
                                     ---
commissions and discounts) to such Investor as a result of the sale of
Registrable Securities pursuant to such Registration Statement. Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of such Company Indemnified Person. Notwithstanding anything to the
contrary contained herein, the indemnification agreement contained in this
Section 7(b) with respect to any preliminary prospectus shall not inure to the
benefit of any Indemnified Person if the untrue statement or omission of
material fact contained in the preliminary prospectus was corrected on a timely
basis in the prospectus, as then amended or supplemented.

          c. Promptly after receipt by an Investor Indemnified Person or a
Company Indemnified Person (as applicable, an "INDEMNIFIED PERSON") under this
Section 7 of notice of the commencement of any action (including any
governmental action), such Indemnified Person shall, if a Claim in respect
thereof is to be made against any indemnifying person under this Section 7,
deliver to the indemnifying person a written notice of the commencement thereof,
and the indemnifying person shall have the right to participate in, and, to the
extent the indemnifying person so desires, jointly with any other indemnifying
person similarly noticed, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying person and the Indemnified Person;
provided, however, that an Indemnified Person shall have the right to retain its
-----------------
own counsel with the fees and expenses to be paid by the indemnifying person,
if, in the reasonable opinion of counsel retained by the indemnifying person,
the representation by such counsel of the Indemnified Person and the
indemnifying person would be inappropriate due to actual or likely differing
interests between such Indemnified Person and any other person represented by
such counsel in such proceeding. The indemnifying person shall pay for only one
separate legal counsel for the Indemnified Persons, and such legal counsel shall
be selected by the persons and entities identified on Schedule A attached to
                                                      ----------
this Agreement holding a majority-in-interest of the Registrable Securities
included in the Registration Statement to which the Claim relates, if the
Investors are entitled to indemnification hereunder, or the Company, if the
Company is entitled to indemnification hereunder, as applicable. The failure to
deliver written notice to the indemnifying person within a reasonable time of
the commencement of any such action shall not relieve such indemnifying person
of any liability to the Indemnified Person under this Section 7, except to the
extent that the indemnifying person is actually prejudiced in its ability to
defend such action. The indemnification required by this Section 7 shall be made
by periodic payments of the amount thereof during the course of the
investigation or defense, as such expense, loss, damage or liability is incurred
and is due and payable.

     8.   CONTRIBUTION.  To the extent any indemnification by an indemnifying
          ------------
person is prohibited or limited by law, the indemnifying person agrees to make
the maximum contribution with respect to any amounts for which it would
otherwise be liable under Section 7 to the fullest extent permitted by law;
provided, however, that (i) no contribution shall be made under circumstances
-----------------
where the maker would not have been liable for indemnification under the fault
standards set forth in Section 7, (ii) no seller of Registrable Securities
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any seller of Registrable
Securities who was not guilty of such fraudulent misrepresentation, and (iii)
contribution (together with any indemnification or other obligations under this
Agreement) by any seller of Registrable Securities shall be limited in amount to
the net amount of proceeds received by such seller from the sale of such
Registrable Securities and provided, further, that such contribution shall be
                           --------  -------
made in such proportion as is appropriate to reflect the relative fault of the
Company on the one hand, and the Investor on the other, in connection with the
statements or omissions which resulted in such claims.

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     9.   REPORTS UNDER THE 1934 ACT.  With a view to making available to the
          --------------------------
Investors the benefits of Rule 144 promulgated under the 1933 Act or any other
similar rule or regulation of the SEC that may at any time permit the Investors
to sell restricted securities of the Company to the public without registration
("RULE 144"), the Company shall use its commercially reasonable efforts to:

          a. make and keep public information available, as those terms are
understood and defined in Rule 144;

          b. file with the SEC in a timely manner all reports and other
documents required of the Company under the 1934 Act so long as the Company
remains subject to such requirements and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

          c. furnish to each Investor so long as such Investor owns Registrable
Securities, promptly upon request, (i) a written statement by the Company that
it has complied with the reporting requirements of Rule 144, the 1933 Act and
the 1934 Act, (ii) a copy of the most recent annual or quarterly report of the
Company and (iii) such other information as may be reasonably requested to
permit the Investors to sell such securities pursuant to Rule 144 without
registration.

     10.  AMENDMENT OF REGISTRATION RIGHTS.  Provisions of this Agreement may
          --------------------------------
be amended and the observance thereof may be waived (either generally or in a
particular instance and either retroactively or prospectively), only with
written consent of the Company and the Investors holding a majority of the
Shares. Any amendment or waiver effected in accordance with this Section 10
shall be binding upon the Investors and the Company.

     11.  MISCELLANEOUS.
     -------------

          a. Notices required or permitted to be given hereunder shall be in
writing and shall be deemed to be sufficiently given when personally delivered
(by hand, by courier, by facsimile transmission or other means) or sent by
certified mail, return receipt requested, properly addressed and with proper
postage pre-paid,

               if to the Company:

               Covalent Group, Inc.
               One Glenhardie Corporate Center
               1275 Drummers Lane
               Suite 100
               Wayne, PA  19087
               Attention:  Chief Financial Officer
               Telecopy: (610) 975-9556

               with a copy to:

               Pepper Hamilton LLP
               Suite 400
               1235 Westlakes Drive
               Berwyn, PA  19312
               Attention: Jeffrey P. Libson, Esquire
               Telecopy: (610) 640-7835

               if to the Investors:

               To the address set forth on the signature
               page of this Agreement.

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<PAGE>

or at such other address as each such party furnishes to the Company by notice
given in accordance with this Section 11(b), and shall be effective, when
personally delivered, upon receipt, when by overnight courier, or the business
day after delivery or drop off with such courier, and, when so sent by certified
mail, four (4) days after deposit with the United States Postal Service.

          b. Failure of any party to exercise any right or remedy under this
Agreement or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

          c. This Agreement shall be enforced, governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania applicable to
agreements made and to be performed entirely within Pennsylvania. In the event
that any provision of this Agreement is invalid or unenforceable under any
applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any provision hereof which
may prove invalid or unenforceable under any law shall not affect the validity
or enforceability of any other provision hereof. The parties hereto hereby
submit to the exclusive jurisdiction of the United States Federal Courts located
in the Eastern District of Pennsylvania with respect to any dispute arising
under this Agreement or the transactions contemplated hereby.

          d. This Agreement constitutes the entire agreement among the parties
hereto with respect to the subject matter hereof. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement supersedes all prior agreements and
understandings among the parties hereto with respect to the subject matter
hereof.

          e. This Agreement shall inure to the benefit of and be binding upon
the successors and assigns of each of the parties hereto; provided that the
Investors shall not have the right to assign their rights under this Agreement.

          f. The headings in this Agreement are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

          g. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which shall constitute one and the
same agreement. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile transmission of a copy of this Agreement
bearing the signature of the party so delivering this Agreement.

          h. Each party shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby.

          i. In the event that any provision to this Agreement is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any
provision hereof which may prove invalid or unenforceable under any law shall
not affect the validity or enforceability of any other provision hereof.

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          IN WITNESS WHEREOF, the Company and the Investors have caused this
Agreement to be duly executed as of the date first above written.

               COVALENT GROUP, INC.

               By:
                  ------------------------------
               Name:
                    ----------------------------
               Title:
                     ---------------------------

               [NAME]

               By:
                  ------------------------------
               Name:
                    ----------------------------
               Title:
                     ---------------------------
<PAGE>

                                   EXHIBIT A

                               List of Investors

INVESTOR                       NUMBER OF SHARES TO BE REGISTERED
<TABLE>
<CAPTION>

<S>                                      <C>
Houston Ventures, Inc.                     500,000
Hassan Nemazee                             500,000
Dr. Richard D. Propper                     704,000
Bedford Oak Partners, L.P.                 671,642
Covalent Partners, LLC                   1,486,587
Acorn Technology Fund                      600,000
Berkshire International Finance, Inc.      200,000
S&F Consulting, Inc.                       150,000
Montpellier International LDC.             134,328
Maxwell H. Gluck Foundation                111,940
Emerald International                       39,179
U.S. Equity Portfolio, LP                   27,985
United Congregation Mesorah                 22,388
Interim Advantage Fund, LLC                 18,657
Contra VC, LLC                              18,656
Thomas Hodapp                              500,000
Michael Chermak                            550,163
Ashish Vibhakar                             33,333
Gerry Beemiller                             50,000
David Smith                                 46,642

</TABLE>Specialized Health Products International, Inc.
                             2000 Stock Option Plan

1. Purpose; Effectiveness of the Plan.

                  (a) The purpose of this Plan is to advance the interests of
the Company and its stockholders by helping the Company obtain and retain the
services of employees, officers, consultants, and directors, upon whose
judgment, initiative and efforts the Company is substantially dependent, and to
provide those persons with further incentives to advance the interests of the
Company.

                  (b) This Plan will become effective on the date of its
adoption by the Board, provided the Plan is approved by the stockholders of the
Company (excluding holders of shares of Stock issued by the Company pursuant to
the exercise of options granted under this Plan) within twelve months before or
after that date. If the Plan is not so approved by the stockholders of the
Company, any options granted under this Plan will be rescinded and will be void.
This Plan will remain in effect until it is terminated by the Board or the
Committee (as defined hereafter) under Section 9 hereof, except that no ISO (as
defined herein) will be granted after the tenth anniversary of the date of this
Plan's adoption by the Board. This Plan will be governed by, and construed in
accordance with, the laws of the State of Delaware.

2. Certain Definitions. Unless the context otherwise requires, the following
defined terms (together with other capitalized terms defined elsewhere in this
Plan) will govern the construction of this Plan, and of any stock option
agreements entered into pursuant to this Plan:

         (a)      "10% Stockholder" means a person who owns, either directly or
                  indirectly by virtue of the ownership attribution provisions
                  set forth in Section 424(d) of the Code at the time he or she
                  is granted an Option, stock possessing more than ten percent
                  (10%) of the total combined voting power or value of all
                  classes of stock of the Company and/or of its subsidiaries;

         (b)      "1933 Act" means the federal Securities Act of 1933, as
                  amended;

         (c)      "Board" means the Board of Directors of the Company;

         (d)      "Code" means the Internal Revenue Code of 1986, as amended
                  (references herein to Sections of the Code are intended to
                  refer to Sections of the Code as enacted at the time of this
                  Plan's adoption by the Board and as subsequently amended, or
                  to any substantially similar successor provisions of the Code
                  resulting from recodification, renumbering or otherwise);

         (e)      "Committee" means a committee of two or more Non-Employee
                  Directors, appointed by the Board, to administer and interpret
                  this Plan; provided that the term "Committee" will refer to
                  the Board during such times as no Committee is appointed by
                  the Board;

         (f)      "Company" means Specialized Health Products International,
                  Inc., a Delaware corporation;

         (g)      "Disability" has the same meaning as "permanent and total
                  disability," as defined in Section 22(e)(3) of the Code;

         (h)      "Eligible Participants" means persons who, at a particular
                  time, are employees, officers, consultants, or directors of
                  the Company or its subsidiaries;

<PAGE>

         (i)      "Fair Market Value" means, with respect to the Stock and as of
                  the date an ISO or a Formula Option is granted hereunder, the
                  market price per share of such Stock determined by the
                  Committee in good faith on such basis as it deems appropriate.

         (j)      "ISO" has the same meaning as "incentive stock option," as
                  defined in Section 422 of the Code;

         (k)      "Just Cause Termination" means a termination by the Company of
                  an Optionee's employment by and/or service to the Company (or
                  if the Optionee is a director, removal of the Optionee from
                  the Board by action of the stockholders or, if permitted by
                  applicable law and the by-laws of the Company, the other
                  directors), in connection with the good faith determination of
                  the Company's board of directors (or of the Company's
                  stockholders if the Optionee is a director and the removal of
                  the Optionee from the Board is by action of the stockholders,
                  but in either case excluding the vote of the Optionee if he or
                  she is a director or a stockholder) that the Optionee has
                  engaged in any acts involving dishonesty or moral turpitude or
                  in any acts that materially and adversely affect the business,
                  affairs or reputation of the Company or its subsidiaries;

         (l)      "Non-Employee Director" has the same meaning as
                  "Non-Employee-Director," as defined in Rule 16b-3 as
                  promulgated under the Securities Exchange Act of 1934).;

         (m)      "NSO" means any option granted under this Plan whether
                  designated by the Committee as a "non-qualified stock option,"
                  a "non-statutory stock option" or otherwise, other than an
                  option designated by the Committee as an ISO, or any option so
                  designated but which, for any reason, fails to qualify as an
                  ISO pursuant to Section 422 of the Code and the rules and
                  regulations thereunder;

         (n)      "Option" means an option granted pursuant to this Plan
                  entitling the option holder to acquire shares of Stock issued
                  by the Company pursuant to the valid exercise of the option;

         (o)      "Option Agreement" means an agreement between the Company and
                  an Optionee, in form and substance satisfactory to the
                  Committee in its sole discretion, consistent with this Plan;

         (p)      "Option Price" with respect to any particular Option means the
                  exercise price at which the Optionee may acquire each share of
                  the Option Stock called for under such Option;

         (q)      "Option Stock" means Stock issued or issuable by the Company
                  pursuant to the valid exercise of an Option;

         (r)      "Optionee" means an Eligible Participant to whom Options are
                  granted hereunder, and any transferee thereof pursuant to a
                  Transfer authorized under this Plan;

         (s)      "Plan" means this Specialized Health Products International,
                  Inc. 1998 Stock Option Plan of the Company;

         (t)      "QDRO" has the same meaning as "qualified domestic relations
                  order" as defined in Section 414(p) of the Code;

         (u)      "Stock" means shares of the Company's Common Stock, $.02 par
                  value;

         (v)      "Transfer," with respect to Option Stock, includes, without
                  limitation, a voluntary or involuntary sale, assignment,
                  transfer, conveyance, pledge, hypothecation, encumbrance,

                                       2
<PAGE>

                  disposal, loan, gift, attachment or levy of such Option Stock,
                  including without limitation an assignment for the benefit of
                  creditors of the Optionee, a transfer by operation of law,
                  such as a transfer by will or under the laws of descent and
                  distribution, an execution of judgment against the Option
                  Stock or the acquisition of record or beneficial ownership
                  thereof by a lender or creditor, a transfer pursuant to a
                  QDRO, or to any decree of divorce, dissolution or separate
                  maintenance, any property settlement, any separation agreement
                  or any other agreement with a spouse (except for estate
                  planning purposes) under which a part or all of the shares of
                  Option Stock are transferred or awarded to the spouse of the
                  Optionee or are required to be sold; or a transfer resulting
                  from the filing by the Optionee of a petition for relief, or
                  the filing of an involuntary petition against such Optionee,
                  under the bankruptcy laws of the United States or of any other
                  nation.

3. Eligibility. The Company may grant Options under this Plan only to persons
who are Eligible Participants as of the time of such grant. Subject to the
provisions of Sections 4(d), 5 and 6 hereof, there is no limitation on the
number of Options that may be granted to an Eligible Participant.

4. Administration.

         (a)      Committee. The Committee, if appointed by the Board, will
                  administer this Plan. If the Board, in its discretion, does
                  not appoint such a Committee, the Board itself will administer
                  this Plan and take such other actions as the Committee is
                  authorized to take hereunder; provided that the Board may take
                  such actions hereunder in the same manner as the Board may
                  take other actions under the Company's Certificate of
                  Incorporation and By-laws generally.

         (b)      Authority and Discretion of Committee. The Committee will have
                  full and final authority in its discretion, at any time and
                  from time to time, subject only to the express terms,
                  conditions and other provisions of the Company's Certificate
                  of Incorporation, By-laws and this Plan, and the specific
                  limitations on such discretion set forth herein:

                  (i)      to select and approve the persons who will be granted
                           Options under this Plan from among the Eligible
                           Participants, and to grant to any person so selected
                           one or more Options to purchase such number of shares
                           of Option Stock as the Committee may determine;

                  (ii)     to determine the period or periods of time during
                           which Options may be exercised, the Option Price and
                           the duration of such Options, and other matters to be
                           determined by the Committee in connection with
                           specific Option grants and Options Agreements as
                           specified under this Plan;

                  (iii)    to interpret this Plan, to prescribe, amend and
                           rescind rules and regulations relating to this Plan,
                           and to make all other determinations necessary or
                           advisable for the operation and administration of
                           this Plan; and

                  (iv)     to delegate all or a portion of its authority under
                           subsections (i) and (ii) of this Section 4(b) to one
                           or more directors of the Company who are executive
                           officers of the Company, but only in connection with
                           Options granted to Eligible Participants who are not
                           subject to the reporting and liability provisions of
                           Section 16 of the Securities Exchange Act of 1934, as
                           amended, and the rules and regulations thereunder,
                           and subject to such restrictions and limitations
                           (such as the aggregate number of shares of Option

                                       3
<PAGE>

                           Stock called for by such Options that may be granted)
                           as the Committee may decide to impose on such
                           delegate directors.

         (c)      Limitation on Authority. Notwithstanding the foregoing, or any
                  other provision of this Plan, the Committee will have no
                  authority to grant Options to any of its members, unless
                  approved by the Board.

         (d)      Designation of Options. Except as otherwise provided herein,
                  the Committee will designate any Option granted hereunder
                  either as an ISO or as an NSO. To the extent that the Fair
                  Market Value (determined at the time the Option is granted) of
                  Stock with respect to which all ISOs are exercisable for the
                  first time by any individual during any calendar year
                  (pursuant to this Plan and all other plans of the Company
                  and/or its subsidiaries) exceeds $100,000, such option will be
                  treated as an NSO. Notwithstanding the general eligibility
                  provisions of Section 3 hereof, the Committee may grant ISOs
                  only to persons who are employees of the Company and/or its
                  subsidiaries.

         (e)      Option Agreements. Options will be deemed granted hereunder
                  only upon the execution and delivery of an Option Agreement by
                  the Optionee and a duly authorized officer of the Company.
                  Options will not be deemed granted hereunder merely upon the
                  authorization of such grant by the Committee.

5. Shares Reserved for Options.

         (a)      Option Pool. The aggregate number of shares of Option Stock
                  that may be issued pursuant to the exercise of Options granted
                  under this Plan will not exceed two million five hundred
                  thousand (2,500,000) (the "Option Pool"), provided that such
                  number will be increased by the number of shares of Option
                  Stock that the Company subsequently may reacquire through
                  repurchase or otherwise. Shares of Option Stock that would
                  have been issuable pursuant to Options, but that are no longer
                  issuable because all or part of those Options have terminated
                  or expired, will be deemed not to have been issued for
                  purposes of computing the number of shares of Option Stock
                  remaining in the Option Pool and available for issuance.
                  Notwithstanding the foregoing, the Company will not grant
                  Options under the this Plan and the Company's previously
                  adopted non-qualified stock option plans to acquire in
                  aggregate more than two million five hundred thousand
                  (2,500,000) shares of Stock.

         (b)      Adjustments Upon Changes in Stock. In the event of any change
                  in the outstanding Stock of the Company as a result of a stock
                  split, reverse stock split, stock dividend, recapitalization,
                  combination or reclassification, appropriate proportionate
                  adjustments will be made in: (i) the aggregate number of
                  shares of Option Stock in the Option Pool that may be issued
                  pursuant to the exercise of Options granted hereunder; (ii)
                  the Option Price and the number of shares of Option Stock
                  called for in each outstanding Option granted hereunder; and
                  (iii) other rights and matters determined on a per share basis
                  under this Plan or any Option Agreement hereunder. Any such
                  adjustments will be made only by the Board, and when so made
                  will be effective, conclusive and binding for all purposes
                  with respect to this Plan and all Options then outstanding. No
                  such adjustments will be required by reason of the issuance or
                  sale by the Company for cash or other consideration of
                  additional shares of its Stock or securities convertible into
                  or exchangeable for shares of its Stock.

                                       4
<PAGE>

6. Terms of Stock Option Agreements. Each Option granted pursuant to this Plan
will be evidenced by an agreement (an "Option Agreement") between the Company
and the person to whom such Option is granted, in form and substance
satisfactory to the Committee in its sole discretion, consistent with this Plan.
Without limiting the foregoing, each Option Agreement (unless otherwise stated
therein) will be deemed to include the following terms and conditions:

         (a)      Covenants of Optionee. At the discretion of the Committee, the
                  person to whom an Option is granted hereunder, as a condition
                  to the granting of the Option, must execute and deliver to the
                  Company a confidential information agreement approved by the
                  Committee. Nothing contained in this Plan, any Option
                  Agreement or in any other agreement executed in connection
                  with the granting of an Option under this Plan will confer
                  upon any Optionee any right with respect to the continuation
                  of his or her status as an employee of, consultant or
                  independent contractor to, or director of, the Company or its
                  subsidiaries.

         (b)      Vesting Periods. Except as otherwise provided herein, each
                  Option Agreement may specify the period or periods of time
                  within which each Option or portion thereof will first become
                  exercisable (the "Vesting Period") with respect to the total
                  number of shares of Option Stock called for thereunder (the
                  "Total Award Option Stock"). Such Vesting Periods will be
                  fixed by the Committee in its discretion, and may be
                  accelerated or shortened by the Committee in its discretion.

         (c)      Exercise of the Option.

                  (i)      Mechanics and Notice. An Option may be exercised to
                           the extent exercisable (1) by giving written notice
                           of exercise to the Company, specifying the number of
                           full shares of Option Stock to be purchased and
                           accompanied by full payment of the Option Price
                           thereof and the amount of withholding taxes pursuant
                           to subsection 6(c)(ii) below; and (2) by giving
                           assurances satisfactory to the Company that the
                           shares of Option Stock to be purchased upon such
                           exercise are being purchased for investment and not
                           with a view to resale in connection with any
                           distribution of such shares in violation of the 1933
                           Act; provided, however, that in the event the Option
                           Stock called for under the Option is registered under
                           the 1933 Act, or in the event resale of such Option
                           Stock without such registration would otherwise be
                           permissible, this second condition will be
                           inoperative if, in the opinion of counsel for the
                           Company, such condition is not required under the
                           1933 Act, or any other applicable law, regulation or
                           rule of any governmental agency.

                  (ii)     Withholding Taxes. As a condition to the issuance of
                           the shares of Option Stock upon full or partial
                           exercise of an NSO granted under this Plan, the
                           Optionee will pay to the Company in cash, or in such
                           other form as the Committee may determine in its
                           discretion, the amount of the Company's tax
                           withholding liability required in connection with
                           such exercise. For purposes of this subsection
                           6(c)(ii), "tax withholding liability" will mean all
                           federal and state income taxes, social security tax,
                           and any other taxes applicable to the compensation
                           income arising from the transaction required by
                           applicable law to be withheld by the Company.

         (d)      Payment of Option Price. Each Option Agreement will specify
                  the Option Price with respect to the exercise of Option Stock
                  thereunder, to be fixed by the Committee in its discretion,
                  but in no event will the Option Price be less than the greater
                  of (i) $1.00 per share of Common Stock or (ii) the Fair Market
                  Value (or, in case the Optionee is a 10% Stockholder, one

                                       5
<PAGE>

                  hundred ten percent (110%) of such Fair Market Value) of the
                  Option Stock at the time such ISO is granted. The Option Price
                  will be payable to the Company in United States dollars in
                  cash or by check or, such other legal consideration as may be
                  approved by the Committee, in its discretion.

         (e)      Termination of the Option. Except as otherwise provided
                  herein, each Option Agreement will specify the period of time,
                  to be fixed by the Committee in its discretion, during which
                  the Option granted therein will be exercisable, not to exceed
                  ten years from the date of grant in the case of an ISO (the
                  "Option Period"); provided that the Option Period will not
                  exceed five years from the date of grant in the case of an ISO
                  granted to a 10% Stockholder. To the extent not previously
                  exercised, each Option will terminate upon the expiration of
                  the Option Period specified in the Option Agreement; provided,
                  however, that each such Option will terminate, if earlier: (i)
                  ninety days after the date that the Optionee ceases to be an
                  Eligible Participant for any reason, other than by reason of
                  death or disability; (ii) twelve months after the date that
                  the Optionee ceases to be an Eligible Participant by reason of
                  such person's death or disability; or (iii) immediately as of
                  the date that the Optionee ceases to be an Eligible
                  Participant by reason of a Just Cause Termination. In the
                  event of a sale or all or substantially all of the assets of
                  the Company, or a merger or consolidation or other
                  reorganization in which the Company is not the surviving
                  corporation, or in which the Company becomes a subsidiary of
                  another corporation (any of the foregoing events, a "Corporate
                  Transaction"), then notwithstanding anything else herein, the
                  right to exercise all then outstanding Options will vest
                  immediately prior to such Corporate Transaction and will
                  terminate immediately after such Corporate Transaction;
                  provided, however, that if the Board, in its sole discretion,
                  determines that such immediate vesting of the right to
                  exercise outstanding Options is not in the best interests of
                  the Company, then the successor corporation must agree to
                  assume the outstanding Options or substitute therefor
                  comparable options of such successor corporation or a parent
                  or subsidiary of such successor corporation.

         (f)      Options Nontransferable. No Option will be transferable by the
                  Optionee otherwise than by will or the laws of descent and
                  distribution. During the lifetime of the Optionee, the Option
                  will be exercisable only by him or her.

         (g)      Qualification of Stock. The right to exercise an Option will
                  be further subject to the requirement that if at any time the
                  Board determines, in its discretion, that the listing,
                  registration or qualification of the shares of Option Stock
                  called for thereunder upon any securities exchange or under
                  any state or federal law, or the consent or approval of any
                  governmental regulatory authority, is necessary or desirable
                  as a condition of or in connection with the granting of such
                  Option or the purchase of shares of Option Stock thereunder,
                  the Option may not be exercised, in whole or in part, unless
                  and until such listing, registration, qualification, consent
                  or approval is effected or obtained free of any conditions not
                  acceptable to the Board, in its discretion.

         (h)      Additional Restrictions on Transfer. By accepting Options
                  and/or Option Stock under this Plan, the Optionee will be
                  deemed to represent, warrant and agree as follows:

                  (i)      Securities Act of 1933. The Optionee understands that
                           the shares of Option Stock have not been registered
                           under the 1933 Act, and that such shares are not
                           freely tradeable and must be held indefinitely unless
                           such shares are either registered under the 1933 Act
                           or an exemption from such registration is available.

                                       6
<PAGE>

                           The Optione understands that the Company is under no
                           obligation to register the shares of Option Stock.

                  (ii)     Other Applicable Laws. The Optionee further
                           understands that Transfer of the Option Stock
                           requires full compliance with the provisions of all
                           applicable laws.

                  (iii)    Investment Intent. Unless a registration statement is
                           in effect with respect to the sale of Option Stock
                           obtained through exercise of Options granted
                           hereunder: (1) Upon exercise of any Option, the
                           Optionee will purchase the Option Stock for his or
                           her own account and not with a view to distribution
                           within the meaning of the 1933 Act, other than as may
                           be effected in compliance with the 1933 Act and the
                           rules and regulations promulgated thereunder; (2) no
                           one else will have any beneficial interest in the
                           Option Stock; and (3) he or she has no present
                           intention of disposing of the Option Stock at any
                           particular time.

         (i)      Compliance with Law. Notwithstanding any other provision of
                  this Plan, Options may be granted pursuant to this Plan, and
                  Option Stock may be issued pursuant to the exercise thereof by
                  an Optionee, only after there has been compliance with all
                  applicable federal and state securities laws, and all of the
                  same will be subject to this overriding condition. The Company
                  will not be required to register or qualify Option Stock with
                  the Securities and Exchange Commission or any State agency.

         (j)      Stock Certificates. Certificates representing the Option Stock
                  issued pursuant to the exercise of Options will bear all
                  legends required by law and necessary to effectuate this
                  Plan's provisions. The Company may place a "stop transfer"
                  order against shares of the Option Stock until all
                  restrictions and conditions set forth in this Plan and in the
                  legends referred to in this Section 6(j) have been complied
                  with.

         (k)      Notices. Any notice to be given to the Company under the terms
                  of an Option Agreement will be addressed to the Company at its
                  principal executive office, Attention: Corporate Secretary, or
                  at such other address as the Company may designate in writing.
                  Any notice to be given to an Optionee will be addressed to the
                  Optionee at the address provided to the Company by the
                  Optionee. Any such notice will be deemed to have been duly
                  given if and when enclosed in a properly sealed envelope,
                  addressed as aforesaid, registered and deposited, postage and
                  registry fee prepaid, in a post office or branch post office
                  regularly maintained by the United States Government.

         (l)      Other Provisions. The Option Agreement may contain such other
                  terms, provisions and conditions, including such special
                  forfeiture conditions, rights of repurchase, rights of first
                  refusal and other restrictions on Transfer of Option Stock
                  issued upon exercise of any Options granted hereunder, not
                  inconsistent with this Plan, as may be determined by the
                  Committee in its sole discretion.

         (m)      Right to Terminate Employment. Nothing in the Plan or in any
                  agreement entered into pursuant to the Plan shall confer upon
                  any participant the right to continue in the employment of the
                  Company or effect any right which the Company may have to
                  terminate the employment of such participant.

         (n)      Non-Uniform Determinations. The Board's determinations under
                  the Plan (including without limitation determinations of the
                  persons to receive awards, the form, amount and timing of such
                  awards, the terms and provisions of such awards and the

                                       7
<PAGE>

                  agreements evidencing same) need not be uniform and may be
                  made by it selectively among persons who receive, or are
                  eligible to receive, awards under the Plan, whether or not
                  such persons are similarly situated.

         (o)      Rights as a Shareholder. The recipient of any award under the
                  Plan shall have no rights as a shareholder with respect
                  thereto unless and until certificates for shares of Common
                  Stock are issued to such participant.

         (p)      Other Employee Benefits. Except as to plans which by their
                  terms include such amounts as compensation, the amount of any
                  compensation deemed to be received by an employee as a result
                  of the exercise of an Option or the sale of Option Stock will
                  not constitute compensation with respect to which any other
                  employee benefits of such employee are determined, including,
                  without limitation, benefits under any bonus, pension,
                  profit-sharing, life insurance or salary continuation plan,
                  except as otherwise specifically determined by the Board.

7. Proceeds from Sale of Stock. Cash proceeds from the sale of shares of Option
Stock issued from time to time upon the exercise of Options granted pursuant to
this Plan will be added to the general funds of the Company and as such will be
used from time to time for general corporate purposes.

8. Modification, Extension and Renewal of Options. Subject to the terms and
conditions and within the limitations of this Plan, the Committee may modify,
extend or renew outstanding Options granted under this Plan, or accept the
surrender of outstanding Options (to the extent not theretofore exercised) and
authorize the granting of new Options in substitution therefor (to the extent
not theretofore exercised). Notwithstanding the foregoing, however, no
modification of any Option will, without the consent of the holder of the
Option, alter or impair any rights or obligations under any Option theretofore
granted under this Plan.

9. Amendment and Discontinuance. The Board may amend, suspend or discontinue
this Plan at any time or from time to time; provided that no action of the Board
will cause ISOs granted under this Plan not to comply with Section 422 of the
Code unless the Board specifically declares such action to be made for that
purpose. Moreover, no such action may alter or impair any Option previously
granted under this Plan without the consent of the holder of such Option.

10. Plan Compliance with Rule 16b-3. With respect to persons subject to Section
16 of the Securities Exchange Act of 1934, transactions under this plan are
intended to comply with all applicable conditions of Rule 16b-3 or its
successors under the 1934 Act. To the extent any provision of the plan or action
by the plan administrators fails so to comply, it shall be deemed null and void,
to the extent permitted by law and deemed advisable by the plan administrators.

11. Copies of Plan. A copy of this Plan will be delivered to each Optionee at or
before the time he or she executes an Option Agreement.

         Date Plan Adopted by Board of Directors: May 2, 2000
         Date Plan Approved by Stockholders: June 22, 2000

                                       8

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