Document:

DGX 12.31.2012 EX 10.6

Exhibit 10.6

AMENDMENT NO. 5 TO
FOURTH AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT

This Amendment No. 5 to Fourth Amended and Restated Credit and Security Agreement (this “Amendment”) is entered into as of December 7, 2012, by and among:

(1) QUEST DIAGNOSTICS RECEIVABLES INC., a Delaware corporation (together with its successors and permitted assigns, the “Borrower”),
(2) QUEST DIAGNOSTICS INCORPORATED, a Delaware corporation (together with its successors, “Quest Diagnostics”), as initial servicer (in such capacity, together with any successor servicer or sub-servicer, the “Servicer”),
(3) MARKET STREET FUNDING LLC, a Delaware limited liability company (“Market Street”), and PNC BANK, NATIONAL ASSOCIATION, in its capacity as a Liquidity Bank to Market Street (together with its successors, “PNC” and together with Market Street, the “Market Street Group”),
(4) GOTHAM FUNDING CORPORATION, a Delaware corporation (together with its successors, “Gotham”), and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, in its capacity as a Liquidity Bank to Gotham (together with its successors, “BTMU” and, together with Gotham, the “Gotham Group”),
(5) PNC BANK, NATIONAL ASSOCIATION, in its capacity as agent for the Market Street Group (together with its successors in such capacity, the “Market Street Agent” or a “Co-Agent”), and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, in its capacity as agent for the Gotham Group (together with its successors in such capacity, the “Gotham Agent” or a “Co-Agent”), and
(6) THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as administrative agent for the Market Street Group, the Gotham Group and the Co-Agents (in such capacity, together with any successors thereto in such capacity, the “Administrative Agent” and together with each of the Co-Agents, the “Agents”).
W I T N E S S E T H :
WHEREAS, the Borrower, the Servicer, the Market Street Group, the Gotham Group and the Agents are parties to that certain Fourth Amended and Restated Credit and Security Agreement, dated as of June 11, 2008, by and among the parties hereto or their predecessors in interest (as amended, restated or otherwise modified from time to time, the “Credit and Security Agreement”); and
WHEREAS, the parties wish to amend the Credit and Security Agreement, on the terms and subject to the conditions hereinafter set forth;

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Exhibit 10.6

NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the parties hereto agree as follows:
1.    Definitions.  Capitalized terms used and not otherwise defined herein are used with the meanings attributed thereto in the Credit and Security Agreement.
2.    Amendment.  All references to “December 7, 2012” in Annex A to the Credit and Security Agreement are hereby replaced with “December 6, 2013.”
3.    Representations.  In order to induce the other parties to enter into this Amendment, each of the Loan Parties hereby represents and warrants to the Lenders and the Agents that (a) each of such Loan Party’s representations and warranties contained in Section 6.1 of the Credit and Security Agreement is correct in all respects on and as of the date of the date hereof as though made on and as of such date (except for such representations which speak only as of an earlier date), (b) no event has occurred and is continuing, or would result from such Advance, that constitutes an Event of Default or Unmatured Default, (c) after giving effect to the this Amendment, the Termination Date shall not have occurred; and (d) the execution, delivery and performance by such Loan Party of this Amendment have been duly authorized by all necessary corporate action on its part, and this Amendment has been duly and validly executed and delivered by such Loan Party and constitutes its legal, valid and binding obligation, enforceable against such Loan Party in accordance with its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar laws of general applicability from time to time in effect affecting the enforcement of creditors’ rights and remedies and (ii) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
4.    Conditions Precedent.  This Amendment shall become effective as of the date first above written upon (a) execution and delivery to the Administrative Agent of a counterpart hereof by each of the parties hereto, and (b) execution and delivery by the Borrower and each of the Co-Agents to the Administrative Agent of a counterpart of that certain amendment fee letter dated as of the date hereof, and payment in immediately available funds of the fee referenced therein.
5.    Miscellaneous.
(a)    THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW WHICH SHALL APPLY HERETO).
(b)    This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns (including any trustee in bankruptcy).
(c)    This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an 

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Exhibit 10.6

original and all of which when taken together shall constitute one and the same Agreement.  Any provisions of this Agreement which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  
(d)    Except as expressly amended hereby, the Agreement shall remain unaltered and in full force and effect and is hereby ratified and confirmed.
IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered as of the date first above written.

QUEST DIAGNOSTICS RECEIVABLES INC.

By:  /s/ Michael G. Lukas_________________
      Name:  Michael G. Lukas
      Title:     VP Finance

QUEST DIAGNOSTICS INCORPORATED, as Servicer

By:  /s/ Michael G. Lukas_________________
       Name:  Michael G. Lukas
       Title:     VP Finance

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Exhibit 10.6

PNC BANK, NATIONAL ASSOCIATION, as Market Street Agent

By:  /s/ William Falcon            
       Name:      William Falcon
       Title:    Vice President

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Exhibit 10.6

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as Gotham Agent

By: /s/ Luna Mills                    
Name:  Luna Mills
Title:    Director

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Exhibit 10.6

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as Administrative Agent

By: /s/ Luna Mills                
Name:  Luna Mills
Title:    Director

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Exhibit 10.6

MARKET STREET FUNDING LLC

By:  /s/ Doris J. Hearn                
       Name:  Doris J. Hearn
       Title:     Vice President

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Exhibit 10.6

PNC BANK, NATIONAL ASSOCIATION

By:  /s/ William Falcon            
       Name:      William Falcon
       Title:    Vice President

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Exhibit 10.6

GOTHAM FUNDING CORPORATION

By:  /s/ David V. DeAngelis                
Name:  David V. DeAngelis
Title:    Vice President

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Exhibit 10.6

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as a Liquidity Bank 

By:  /s/ B. McNany                    
Name:  B. McNany
Title:     Vice President

10DGX 12.31.2012 EX 10.18

EXHIBIT 10.18

AMENDMENT No. 1 TO
QUEST DIAGNOSTICS 
SUPPLEMENTAL DEFERRED COMPENSATION PLAN 
(POST – 2004) 
AMENDED DECEMBER 22, 2008
The Quest Diagnostics Supplemental Deferred Compensation Plan (Post – 2004) as amended December 22, 2008 (the “Plan”), and generally effective January 1, 2005, is hereby amended, generally effective as of January 1, 2012, in the following respects:

1.    A new sentence is added at the end of Section 1.1(g) as follows: 
Notwithstanding the preceding, with respect to an Eligible Employee whose primary place of employment is outside the United States, Compensation shall exclude such items as housing allowances, educational expenses, trips back and forth to the United States, tax gross-ups and such other similar items of remuneration as may be determined by the Administrator. 
2.    Section 6.4 is amended in it is entirety as follows:
“6.4    Payment Due to an Unforeseen Emergency.  (a)    In general.  A Participant shall not be permitted to withdraw any portion of the value of his Account prior to termination of employment or any date specified pursuant to Section 6.1 (whichever occurs first), except that a Participant may apply to the Administrator, in accordance with procedures specified by the Administrator, to withdraw some or all of the value of his Account if such withdrawal is required on account of a financial hardship resulting from an unforeseen emergency.  The Administrator shall establish criteria to determine what constitutes financial hardship that are consistent with the Section 409A Regulations.  Withdrawals made on account of financial hardship shall be made in a lump sum, and may include such additional amount as necessary to pay any federal, state, local or foreign income taxes reasonably anticipated to result from the distribution.  
(b)    Cancellation of deferral elections.  If a Participant receives a hardship distribution from the Profit Sharing Plan, the 401(k) Savings Plan of Quest Diagnostics Incorporated or any other Code Section 401(k) plan maintained by Quest Diagnostics or a Related Employer under which deferral elections are suspended for a six-month period, his or her deferral election under this Plan shall be cancelled for a six-month period beginning upon such distribution.  Upon the expiration of such six-month period, deferrals shall not resume during the remainder of the Plan Year in which the cancellation occurs.  If such expiration occurs in a Plan Year subsequent to the Plan Year during which such six-month period commenced, the Participant (if still an Eligible Employee) must execute, in accordance with Section 3.1, a new election prior to the start of such subsequent Plan Year in order to resume active participation in the Plan following the expiration of the six-month period.”

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EXHIBIT 10.18

3.    The first sentence of Section 6.6 is amended to read in its entirety as follows:
“Unless otherwise permitted under the Section 409A Regulations, all payments shall be made or commence no later than the end of the calendar year in which the applicable payment date occurs or, if later, by the 15th day of the third calendar month following the applicable payment date.”

4.      A new sentence is added at the end of Section 7.3 as follows: 
“Any termination of the Plan shall be accomplished in accordance with Section 409A of the Code and the Section 409A Regulations.”
5.    A new Section 9.9 is added to the Plan as follows:
		
	“9.9
	Recovery of Overpayment.  If there is an overpayment under the Plan, Quest Diagnostics has the right at any time, as elected by Quest Diagnostics, to:

		
	(a)
	recover that overpayment from the person to whom it was made;

		
	(b)
	offset the amount of that overpayment from a future payment; or

		
	(c)
	a combination of both.

Quest Diagnostics shall be considered to have established an equitable lien by agreement with the person to whom such overpayment was made.  Such payee shall, upon request, execute and deliver such instruments and papers as may be required, and shall do whatever else is necessary, to secure such rights of recovery to Quest Diagnostics.  Quest Diagnostics also may determine to compromise its right to a full recovery in order to facilitate a partial recovery that, in its sole discretion, it deems acceptable.” 
6.    A new Section 9.10 is added to the Plan as follows:

“9.10 Right of Reimbursement.  Payments to be made under the terms of the Plan may be used to reimburse the Employer, in accordance with procedures established by the Administrator, any amount the Participant owes an Employer at the time payment  under the Plan is required to be made; provided that no such  reimbursement  will be made to the extent that in the reasonable judgment of the Administrator it would cause the Participant to recognize income for United States federal income tax purposes before the payment is made or to incur additional tax or interest pursuant to Code Section 409A or the Section 409A Regulations.”

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EXHIBIT 10.18

7.     A new Section 9.11 is added to the Plan as follows:

9.11.  Clawback.  All amounts credited to a Participant’s Account under the Plan shall be subject to cancellation and recoupment by Quest Diagnostics, and shall be repaid by the Participant to Quest Diagnostics, to the extent required by law, regulation, listing requirement or as determined in accordance with any Quest Diagnostics policy, in each case, as in effect from time to time; provided that no such cancellation or recoupment will be made to the extent that in the reasonable judgment of the Administrator it would cause the Participant to recognize income for United States federal income tax purposes before the payment is made or to incur additional tax or interest pursuant to Code Section 409A or the Section 409A Regulations.

8.    A new second sentence is added to Section 10.2(a) as follows:
“All claims under the Plan must be submitted within one (1) year after the date on which a communication from the Plan, the Employer or the Administrator (or one of their delegates or agents) contains the information contested or challenged by the claim.”  
9.    A new Section 10.2(d) is added as follows:
		
	“(d)
	All action(s) or litigation arising out of or relating to this Plan shall be commenced and prosecuted in the federal district court whose jurisdiction includes Morris County, New Jersey.  Each Employee, claimant or other person consents and submits, as a condition to continued participation in the Plan, to the personal jurisdiction over him of the federal district court whose jurisdiction includes Morris County, New Jersey in respect of any such action(s) or litigation.  Each Employee, claimant or other person also consents to service of process upon him with respect to any such action(s) or litigation by registered mail, return receipt requested, and by any other means permitted by rule or law.”

10.    A new Appendix A is added as attached hereto. 
11.    In all other respects, the Plan shall remain unchanged by this Amendment.

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EXHIBIT 10.18

As evidence of its adoption of this Amendment, Quest Diagnostics Incorporated has caused this instrument to be signed by its authorized officers this     27th         day 
of November, 2012, generally effective as of January 1, 2012 or as required by law. 

	
		
	QUEST DIAGNOSTICS INCORPORATED

	

	By:
	/s/ Jeffrey S. Shuman   

	

	Jeffrey S. Shuman
Senior Vice President, Human Resources
     11/27   , 2012

	
		
	

	By:
	/s/ Stephen H. Ruskowski   

	

	Stephen H. Rusckowski
President and Chief Executive Officer
     11/27   , 2012

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EXHIBIT 10.18

APPENDIX A
This Appendix A describes special provisions applicable to accounts under the Celera Corporation Non-Qualified Savings and Deferral Plan the “Celera Plan”) which was established effective as of July 1, 2008 and which was merged into this Plan effective as of June 25, 2012.  Contributions under the Celera Plan ceased, and no new participants were admitted, effective as of December 31, 2011.  
1.    Annual Deferral Amounts.  The Celera Plan provided for an “Annual Deferral Amount” to record a participant’s deferred salary and bonus for the calendar year in question and any employer contributions with respect to that year, as well as earnings or losses thereon.  The Plan will continue to maintain such Annual Deferral Amounts for recordkeeping purposes.  
2.    Vesting.  A Celera Plan participant’s deferred salary and bonus were 100% vested.  The Celera Plan applied (and the Plan will continue to apply) a 4-year graded vesting schedule to employer contributions, provided that a participant will become 100% vested if he or she dies or becomes disabled while employed by Celera and its affiliates.  For these purposes:
(1)    years of service are measured using the “elapsed time” method and include service with Applera Corporation and Berkeley HeartLab, Inc.;
(2)    service with Quest Diagnostics and its affiliates on or after May 17, 2011 is considered service with Celera and its affiliates; 
(3)    “Retirement Age” means the later of age 65 or five years of service; and
(4)    a participant shall be considered “disabled” once he or she is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of Celera or its affiliates.  
3.    Time of Distribution.  The time of distribution of Annual Deferral Amounts shall be the same as under the Celera Plan.  Under the Celera Plan, with respect to each Annual Deferral Amount, a participant was permitted to elect either a “specified date payout” or a payout upon separation from service; the specified payout date had to be at least one year after the close of the year to which the specification applied, e.g., the earliest permitted specified payout date with respect to the Annual Deferral Amount for 2010 was January 1, 2012.  Those elections were (and continue to be) irrevocable unless changed in accordance with paragraph 5 below.  However, if a participant dies, his or her vested Annual Payment Amounts will be distributed in a lump sum notwithstanding any election he or she may have made.  Payments of Annual Payment Amounts will commence (or will be made) on the 15th day of the month following the month in which the triggering event occurs.   

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EXHIBIT 10.18

4.    Method of Distribution.  The method of distribution of Annual Deferral Amounts and distribution elections shall be the same as under the Celera Plan.  Further, installments are not considered a series of separate payments for purposes of Section 409A.  Those distributions elections will remain in effect unless changed in accordance with paragraph 5 below.  
5.    Change in Method of Distribution.  A participant in the Celera Plan may elect to change the method of payment of, but not the time of payment of, an Annual Deferral Amount; provided, however, that:
(1)    any such change must be made at least 12 months before the first day of the calendar year in which the specified payout date would have occurred (but for the requirements of (2) below applicable to a change of election); 
(2)    the payment with respect to such changed election must be deferred for a period of not less than 5 years from the date such payment would otherwise originally have been made (or commenced to be made); 
(3)    the change will not become effective for at least 12 months after the election; and
(4)    only one such change is permitted.  
6.    Lump Sum Distribution of Small Benefit Payments.  Notwithstanding anything contained herein to the contrary, if the Administrator determines that a participant’s vested balance under the Celera Plan, taking into account all plans that would be aggregated with the Celera Plan under Section 409A of the Code, is $17,000 (as adjusted under Section 402(g)(1)(B) of the Code) or less, the Administrator may pay such vested balance in a lump sum on the 15th day of the month following the month in which the Administrator makes a written decision to make such payment.
7.    Designations of Beneficiaries.  Beneficiary designations made under the Celera Plan shall not continue to apply to amounts arising under the Celera Plan.  Instead, participants in the Celera Plan must file new beneficiary designation in accordance with the procedures established under the Plan.
8.    Trust.  Effective June 25, 2012, the grantor trust established under the Celera Plan shall be considered as merged into, and superseded by, the grantor trust established under the Plan.  
9.    Applera Provisions.  The following provisions relate to amounts under the Celera Plan attributable to the Applera Corporation Supplemental Executive Retirement Plan:
the election (made not later than December 31, 2008) by Kathy Ordonez with respect to her benefits under the Applera Corporation Supplemental Executive Retirement Plan shall be applied as if such benefits were a single Annual Deferral Amount under the Celera Plan.

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