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c50699_ex-b.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.2 

AMENDED AND RESTATED 

QUEST DIAGNOSTICS INCORPORATED

LONG-TERM INCENTIVE PLAN FOR

NON-EMPLOYEE DIRECTORS 

(As amended as of August 17, 2007) 

                    Section 1.     Purpose. The purpose of the Amended and Restated Quest Diagnostics Incorporated Long-Term Incentive
Plan for Non-Employee Directors is to secure for the Company and its stockholders the benefits of the incentive inherent in increased common stock ownership by the members of the Board of Directors who are not employees of the Company or any of its
subsidiaries. 

                    Section 2.     Definitions. When used herein, the following terms shall have the following meanings: 

                    “Administrator” means the Board, or a committee of the Board, duly appointed to administer the Plan. 

                    “Board” means the Board of Directors of the Corporation. 

                    “Code” means the Internal Revenue Code of 1986, as amended. 

                    “Common Stock” means ($.01 par value) common stock of the Corporation. 

                    “Corporation” means Quest Diagnostics Incorporated, a Delaware corporation. 

                    “Effective Date” shall mean the date of approval of the Plan by the holders of stock entitled to vote at the Corporation’s 2005 Annual Meeting of Stockholders. 

                    “Exercise Price” means the price per share specified in the Option agreement at which the Participant may purchase Common Stock through the exercise of his/her Option, as the same may be
adjusted in accordance with Section 9. 

                    “Fair Market Value” means, as of any date, the mean of the high and low sales price of a share of Common Stock on The New York Stock Exchange Composite list on such date (or if no sale took
place on such exchange on such date, the mean between the high and the low on such exchange on the most recent preceding date on which a sale took place) provided, however,
that for the purposes of Section 7(d), if on the date of exercise of an Option,
a Participant sells through a broker designated by the Corporation any of the
shares purchased as a result of the exercise of the Option, then the 

shares shall be valued at the average sales price of such shares sold on such date as reported to the Corporation by such broker. 

                    “Option” means a right granted under the Plan to a Participant to purchase shares of Common Stock as a Nonqualified Stock Option which is not intended to qualify as an Incentive Stock Option
under Section 422 of the Code. 

                    “Option Period” means the period within which the Option may be exercised pursuant to the Plan. 

                    “Participant” means a member of the Board of Directors of Quest Diagnostics Incorporated who is not an employee of Quest Diagnostics Incorporated or any subsidiary thereof. 

                    “Plan” means the Amended and Restated Quest Diagnostics Incorporated Long-Term Incentive Plan for Non-Employee Directors. 

                    “Stock Awards” means a grant under the Plan to a Participant of shares of Common Stock or of a right to receive shares of Common Stock (or their cash equivalent or a combination of both) in
the future. 

                    Section 3.     Administration. The Plan shall be administered by the Administrator who shall establish from time
to time regulations for the administration of the Plan, interpret the Plan, delegate in writing administrative matters to committees of the Board or to other persons, and make such other determinations and take such other action as it deems
necessary or advisable for the administration of the Plan. All decisions, actions and interpretations of the Administrator shall be final, conclusive and binding upon all parties. 

                    Section 4.     Participation. All Non-Employee Directors who become members of the Board shall automatically be
Participants in the Plan. 

                    Section 5.     Shares Subject to the Plan. The maximum number of shares of Common Stock that may be delivered in
conjunction with grants of Options and Stock Awards under the Plan shall be 2,000,000,1 and 2,000,000 shares of Common Stock shall be reserved for this purpose under the Plan (subject to
adjustment as provided in Section 9). The shares issued upon the grant of Stock Awards or exercise of Options granted under the Plan may be authorized and unissued shares or shares held in the treasury of the Corporation including shares purchased
on the open market by the Corporation (at such time or times and in such manner as it may determine). The Corporation shall be under no obligation to acquire Common Stock for distribution to Participants before payment in shares of Common Stock is
due. If any Stock Award or Option granted under the Plan shall be canceled or expire, new Stock Awards or Options may thereafter be granted covering such shares. 

1 All Share
totals included in Sections 5 and 6 have been adjusted to reflect the two-for-one
stock split effective on June 20, 2005.

2 

                    Section 6.     Grants
of Options and Stock Awards. 

                    (a)     On the Effective Date and on the date of the Annual Meeting of Shareholders of each year commencing on January 1, 2006, the Administrator
may grant to each Participant an Option and/or a Stock Award, in such proportions as the Administrator may determine, covering an aggregate of not more than 20,000 shares of Common
Stock. In the event that a Participant is elected as a director of the Company other than on the date of the Annual Meeting of Shareholders, the Board may grant to such director, on his/her election, an Option and/or a Stock Award, in such
proportions as the Administrator may determine, covering such number of shares of Common Stock (not to exceed 20,000) that is proportional to the fraction of a year remaining until the next Annual Meeting of Shareholders. In addition, upon a
Participant’s initial election as a director of the Company by the Board, the Administrator may make a one-time grant to such Participant of an Option and/or a Stock Award, in such proportions as the Administrator may determine, covering an
aggregate of not more than 40,000 shares of Common Stock. 

                    (b)     Each Stock Award shall be earned and vest over such period and shall be governed by such conditions, restrictions and contingencies as the
Administrator shall determine. These may include the achievement of performance goals.

                    (c)     As may be permitted from time to time by the Administrator, each Participant may elect to receive an Option or Stock Award in lieu of the
cash compensation payable to such director in any year. The number of shares of Common Stock underlying the Option available to such director shall be computed using the same option valuation methodology (or any subsequent methodology as may be
adopted by the Company) as is used for reporting compensation expense in the Company’s financial statements so as to achieve a value equal to the cash compensation that would otherwise have been paid. Any such election shall be irrevocable and
shall be made by December 31, effective for the fees payable during the following year and with an Option being granted on each day on which the fees would otherwise have been payable (generally expected to be the first day of each calendar
quarter).

                    Section 7.     Terms and Conditions of Options. Each Option granted under the Plan shall be evidenced by a written
agreement, in form approved by the Administrator and executed by the Chairman of the Board, President, Vice President of Human Resources or Secretary of the Corporation, which shall be subject to the following express terms and conditions and to
such other terms and conditions as the Administrator may deem appropriate. Options may be granted singularly or in combination with a Stock Award. 

                    (a)     Option Period. Each Option agreement entered into on or after the Effective Date shall specify that the
Option granted thereunder is granted for a period of seven (7) years from the date of grant and shall provide that the Option shall expire on such seven-year anniversary. 

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                    (b)     Exercise Price. The Exercise Price per share shall be the Fair Market Value at the time the Option is
granted.

                    (c)     Exercise of Option. Subject to Section 7(e), Options granted under Section 6(a) hereof shall become
exercisable in three equal annual installments beginning on the first anniversary of the date of grant. Options granted under Section 6(c) vest and become exercisable immediately on the date of grant. The exercisability of these Options may be
limited by the Corporation’s restrictions on exercise resulting from provisions of its non-employee director stock ownership guidelines program. 

                    (d)     Payment of Exercise Price Upon Exercise. The Exercise Price of the shares as to which an Option shall be
exercised shall be paid to the Corporation at such time (but in no event later than the date on which any shares are issued on exercise of an Option) as is determined by the Administrator. The Administrator may authorize in its sole discretion, the
payment of the Exercise Price by (i) delivering Common Stock of the Corporation already owned by the Participant and having a total Fair Market Value on the date of such delivery equal to the Exercise Price, (ii) delivering a combination of cash and
Common Stock of the Corporation having a total Fair Market Value on the date of such delivery equal to the Exercise Price, or (iii) by delivery of a notice of cancellation of vested Options held by the Participant having a spread equal to the
Exercise Price of the number of shares being exercised, including any taxes required to be withheld by the corporation in connection with such exercise. For purposes of the preceding sentence “spread” shall mean the difference between the
Fair Market Value of the Common Stock on the date of exercise and the Exercise Price multiplied by the number of shares covered by the vested Options being canceled. 

                    (e)     Termination of Service on the Board. In the event service on the Board of a Participant terminates for any
reason, all Options previously granted to such Participant under the Plan may be exercised by the Participant (or, if the Participant is deceased, by his/her representative) at any time, from time to time, for the remaining term of the
Option.

                    (f)     Transferability of Options. No Option granted under the Plan and no right arising under such Option shall
be transferable other than by will or by the laws of descent and distribution. During the lifetime of the optionee, an Option shall be exercisable only by him/her. 

                    (g)     Participants to Have No Rights as Stockholders. No Participant shall have any rights as a stockholder with
respect to any shares subject to his or her Option prior to the date on which he or she is recorded as the holder of such shares on the records of the Corporation. 

                    (h)     Other Option Provisions. The form of Option agreement authorized by the Plan may contain such other
provisions as the Board may, from time to time, determine. 

4 

                    Section 8.     Terms and Conditions of Stock Awards. Each Stock Award granted under the Plan shall be evidenced by
a written agreement, in form approved by the Administrator and executed by the Chairman of the Board, President, Vice President
of Human Resources or Secretary of the Corporation, which shall be subject to the following express terms and conditions and to such other terms and conditions as the Administrator may deem appropriate. Stock Awards may be granted singularly or in combination with an Option. 

                    (a)     Dividends and Dividend Equivalents. A grant of Stock Awards may contain the right to receive dividends or
dividend equivalent payments which may be paid either currently or credited to a Participant’s account. Any such crediting of dividends or dividend equivalents may be subject to such conditions, restrictions and contingencies as the
Administrator shall establish, including the reinvestment of such credited amounts in Common Stock equivalents. 

                    (b)     Payments. Stock Awards may be settled through cash payments, the delivery of shares of Common Stock, the
granting of Stock Awards or Options or combination thereof as the Administrator shall determine. Any Stock Award settlement, including payment deferrals, may be subject to such conditions, restrictions and contingencies as the Administrator shall
determine. The Administrator may permit or require the deferral of any award payment, subject to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest, or dividend equivalents, including
converting such credits into deferred share equivalents. 

                    (c)     Transferability of Stock Awards. Except by will or by the laws of descent and distribution and, if
permitted by the Administrator, as a gift to a family member or a trust or similar entity for the benefit of one or more family members, no Stock Award granted under the Plan shall be assignable or transferable. 

                    (d)      Participants to Have No Rights as Stockholders. No Participant shall have any rights as a stockholder
with respect to any shares subject to his or her Stock Award prior to the date on which he or she is recorded as the holder of such shares on the records of the Corporation. 

                    (e)     Other Stock Award Provisions. The form of Stock Award agreement authorized by the Plan may contain such
other provisions as the Board may, from time to time, determine. 

                    Section 9.     Adjustments in Event of Change in Common Stock. In the event of any change in the Common Stock by
reason of any stock split, reverse stock split, stock dividend recapitalization, reorganization, merger, consolidation, split-up, combination or exchange of shares, or of any similar change affecting the Common Stock, the number and kind of shares
which thereafter may be optioned, awarded and sold under the Plan and the number and kind of shares subject to Stock Awards in outstanding Stock Award Agreements or subject to Option in outstanding Option agreements and the Exercise Price per share
of such Options shall be appropriately 

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adjusted consistent with such change in such manner as the Administrator may deem equitable to prevent substantial dilution or enlargement of the right granted to, or available for, Participants in the Plan;
provided, however, that no such adjustment shall be required if the Administrator determines that such action could cause an Option to fail to satisfy the conditions of an applicable exception from the requirements of Section 409A of the Internal Revenue Code (“Section
409A”) or otherwise could subject a Participant to the additional tax imposed under Section 409A in respect of an outstanding Stock Award.. 

                    Section 10.     Listing and Qualification of Shares. The Plan, the grant of Stock Awards, the grant and exercise
of Options thereunder, and the obligation of the Corporation to sell and deliver shares under such Stock Awards and Options, shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or
regulatory agency as may be required. The Corporation, in its discretion, may postpone the issuance or delivery of shares upon any grant of a Stock Award or exercise of an Option until
completion of any stock exchange listing, or other qualification of such shares under any state or federal law, rule or regulation as the Corporation may consider appropriate, and may require any Participant, beneficiary or legal representative to
make such representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of the shares in compliance with applicable laws, rules and regulations. 

                    Section 11.     Taxes. The Corporation may make such provisions and take such steps as it may deem necessary or
appropriate for the withholding of all federal, state, local and other taxes required by law to be withheld with respect to Options and Stock Awards granted under the Plan including, but not limited to (a) reducing the number of shares of Common
Stock otherwise deliverable to permit deduction of the amount of any such withholding taxes from the amount otherwise payable under the Plan, (b) deducting the amount of any such withholding taxes from any other amount then or thereafter payable to
a Participant, or (c) requiring a Participant, beneficiary or legal representative to pay in cash to the Corporation the amount required to be withheld or to execute such documents as the Corporation deems necessary or desirable to enable it to
satisfy its withholding obligations as a condition of releasing the Common Stock. 

                    Section 12.     No Liability of Board Members. No member of the Board shall be personally liable by reason of any
contract or other instrument executed by such member or on his behalf in his/her capacity as a member of the Board or the Administrator nor for any mistake of judgment made in good faith, and the Corporation shall indemnify and hold harmless to the
fullest extent permitted by the Corporation’s Restated Certificate of Incorporation and By-Laws and Delaware General Corporation Law, each employee, officer or director of the Corporation to whom any duty or power relating to the administration
or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Board) arising out of any act or omission to act
in connection with the Plan. 

6 

                    Section 13.     Amendment or Termination. The Board may, with prospective or retroactive effect, amend, suspend or
terminate the Plan or any portion thereof at any time; provided, however, that no amendment, suspension or termination of
the Plan shall deprive any Participant of any right with respect to any Stock Award or Option granted under the Plan without his written consent; and provided, further,
that unless duly approved by the holders of stock entitled to vote thereon at a meeting (which may be the annual meeting) duly called and held for such purpose, except as provided in Section 9, no amendment or change shall be made in the Plan (i)
increasing the total number of shares which may be issued or transferred under the Plan; (ii) changing the exercise price specified for the shares subject to Options; (iii) changing the maximum period during which Options may be exercised; (iv)
extending the period during which Options or Stock Awards may be granted under the Plan; or (v) expanding the class of individuals eligible to receive Stock Awards or Options under the Plan. 

                    Section 14.     Captions. The captions preceding the sections of the Plan have been inserted solely as a matter of
convenience and shall not in any manner define or limit the scope or intent of any provisions of the Plan. 

                    Section 15.     Governing Law. The Plan and all rights thereunder shall be governed by and construed in accordance
with the laws of the State of Delaware applicable to contracts made and to be performed entirely within such State. 

                    Section 16.     Effective Date and Duration of Plan. The Plan shall become effective as of the Effective Date.
This Plan shall terminate on the tenth anniversary of the Effective Date, and no Stock Awards or Option may be granted under the Plan after such date, but such termination shall not affect any Stock Award or Option previously granted. 

7c50699_ex-c.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.3 

AMENDED AND RESTATED 

Quest Diagnostics Incorporated 

Employee Long-Term Incentive Plan 

(As amended on August 17, 2007)

1.          THE
PROGRAM

          a)      Purpose. This Amended and Restated Quest Diagnostics Incorporated Employee Long-Term Incentive Plan (the “Program”) is intended to benefit the stockholders of Quest Diagnostics
Incorporated (the “Company”) by providing a means to attract, retain and reward individuals who can and do contribute to the longer term financial success of the Company. Further, the recipients of stock-based awards under the Program
should identify their success with that of the Company’s stockholders and therefore will be encouraged to increase their proprietary interest in the Company.

          b)      Effective Date. To serve this purpose, the Program will become effective upon its approval by the holders of stock entitled to vote at the Company’s 2005 Annual Meeting of Stockholders
(the “Effective Date”).

2.          ADMINISTRATION

          a)      Committee. The Program shall be administered by a Committee, appointed by the Board of Directors of the Company (the “Board”), which shall consist of no less than two of its
members, all of whom shall not be (or formerly have been) employees of the Company (the “Committee”); provided, however, that from time to time the Board may assume, at its sole discretion, administration of the Program. Except with regard
to awards to employees subject to Section 16 of the Securities Exchange Act of 1934, the Committee may delegate certain responsibilities and powers to any executive officer or officers selected by it. Any such delegation may be revoked by the
Committee at any time.

          b)      Powers and authority. The Committee’s powers and authority include, but are not limited to: selecting individuals, who are employees of the Company and any subsidiary of the Company or
other entity in which the Company has a significant equity or other interest as determined by the Committee, to receive awards; determining the types and terms and conditions of all awards granted, including performance and other earnout and/or
vesting contingencies; permitting transferability of awards to eligible third parties; interpreting the Program’s provisions; and administering the Program in a manner that is consistent with its purpose. The Committee’s decision in
carrying out the Program and its interpretation and construction of any provisions of the Program or any award granted or agreement or other instrument executed under it shall be final and binding upon all persons. No members of the Board shall be
liable for any action or determination made in good faith in administering the Program.

           c)      Award Prices. Except for awards made in connection with the assumption of, or in substitution for, outstanding awards previously granted by an acquired entity, all awards denominated or
made in Shares shall use as the per Share price the mean between the high and low selling prices of a share of the Common Stock of the Company (“Share”) on the applicable date as reported in The New York Times, or if Shares are not traded
on such date, the mean between the high and low selling prices on the next preceding day on which such Shares are traded; provided, however, that the Committee may in its discretion establish a higher price as the per Share price; and provided
further, however, that where a “reload” option is issued to an optionee who exercises an option by tendering (either actually or by attestation) Shares previously owned by the optionee, then the per Share exercise price of the reload
option (which shall be for the same number of shares tendered for payment) shall be the market price at which the Shares tendered are valued in accordance with Section 4(b). The applicable date shall be the day on which the award is granted. Except
as provided for in Section 3(d), the per Share exercise price of any stock option or stock appreciation right may not be decreased after the grant of the award, and a stock option or stock appreciation right may not be surrendered as consideration
in exchange for the grant of a new award with a lower per Share exercise price.

 3.           SHARES SUBJECT TO THE PROGRAM AND ADJUSTMENTS

          a)      Maximum Shares Available for Delivery. Subject to adjustments under Section 3(d), the maximum number of Shares that may be delivered to participants and their beneficiaries under the Program
shall be equal to (i) 48,000,0001 Shares; (ii) any Shares that were available for future awards under the Company’s 1996 Employee Equity Participation Program (the
“Prior Program”) as of June 29, 1999; and (iii) any Shares that were represented by awards granted under the Prior Program of the Company, which are or may be forfeited, which expire or are canceled without the delivery of Shares or which
have or may result in the forfeiture of Shares back to the Company after June 29, 1999. In addition, any Shares delivered under the Program or the Prior Program of the Company which are forfeited back to the Company because of the failure to meet an
award contingency or condition shall again be available for delivery pursuant to new awards granted under the Program. Any Shares covered by an award (or portion of an award) granted under the Program or the Prior Program of the Company, which is
forfeited or canceled, expires or is settled in cash, including the settlement of tax withholding obligations using Shares, shall be deemed not to have been delivered for purposes of determining the maximum number of Shares available for delivery
under the Program. Likewise, if any stock option is exercised by tendering Shares, either actually or by attestation, to the Company as full or partial payment for such exercise under this Program or the Prior Program of the Company, only the number
of Shares issued net of the Shares tendered shall be deemed delivered for purposes of determining the maximum number of Shares available for delivery under the Program. Further, Shares issued under the Program through the settlement, assumption or
substitution of outstanding awards or obligations to grant future awards as a condition of the Company acquiring another entity shall not reduce the maximum number of Shares available for delivery under the Program.

          b)      Other Program Limits. Subject to adjustment under Section 3(d), the following additional maximums are imposed under the Program. The maximum number of Shares that may be delivered in
conjunction with awards granted pursuant to Section 4(d) on or after the Effective Date, shall be 7,000,000. The maximum aggregate number of Shares that may be covered by awards granted to any one individual over the life of the Program pursuant to
Sections 4(b) and 4(c) shall not exceed 6,000,000 Shares. The aggregate maximum payments that can be made for awards granted to any one individual pursuant to Section 4(d) on or after the Effective Date shall not exceed 1,200,000 Shares. 

          c)      Payment Shares. Subject to the overall limitation on the number of Shares that may be delivered under the Program, the Committee may, in addition to granting awards under Section 4, use
available Shares as the form of payment for compensation, grants or rights earned or due under any other compensation plans or arrangements of the Company. 

          d)      Adjustments for Corporate Transactions. In the event of any change in the Shares by reason of any stock split, reverse stock split, stock dividend recapitalization, reorganization, merger,
consolidation, split-up, combination or exchange of shares, or any similar change affecting the Shares, (i) the number and kind of shares which may be delivered under the Program pursuant to Sections 3(a) and 3(b); (ii) the number and kind of shares
subject to outstanding awards; and (iii) the exercise price of outstanding stock options and stock appreciation rights shall be appropriately adjusted consistent with such change in such manner as the Committee may deem equitable to prevent
substantial dilution or enlargement of the right granted to, or available for, participants in the Program; provided, however, that no such adjustment shall be required if the Committee determines that such action could cause an option to fail to
satisfy the conditions of an applicable exception from the requirements of Section 409A of the Internal Revenue Code (“Section 409A”) or otherwise could subject a participant to the additional tax imposed under Section 409A in respect of
an outstanding stock grant. Similar adjustments may be made in situations where the Company assumes or substitutes for outstanding awards held by employees and other persons of an entity acquired by the Company. 

1 All Share
  totals included in Section 3 and 4 have been adjusted to reflect the two-for-one
stock split effective on June 20, 2005. 

   2

4.          TYPES
OF AWARDS

          a)      General. An award may be granted singularly, in combination with another award(s) or in tandem whereby exercise or vesting of one award held by a participant cancels another award held by
the participant. Subject to the limitations of Section 2(c), an award may be granted as an alternative or successor to or replacement of an existing award under the Program or under any other compensation plan or arrangement of the Company,
including the plan of any entity acquired by the Company. The types of awards that may be granted under the Program include:

          b)      Stock Option. A stock option represents a right to purchase a specified number of Shares during a specified period at a price per Share which is no less than one hundred percent (100%) of
the per Share amount stipulated by Section 2(c). A stock option may be in a form intended to comply with Section 422 or any other similar provision of the Internal Revenue Code (the “Code”) or in another form which may or may not qualify
for favorable federal income tax treatment. Each stock option granted on or after the Effective Date shall expire on the applicable date designated by the Committee but in no event may such date be more than seven years from the date the stock
option is granted. The Shares covered by a stock option may be purchased by means of a cash payment or such other means as the Committee may from time-to-time permit, including (i) tendering (either actually or by attestation) Shares valued using
the market price at the time of exercise, (ii) authorizing a third party to sell Shares (or a sufficient portion thereof) acquired upon exercise of a stock option and to remit to the Company a sufficient portion of the sale proceeds to pay for all
the Shares acquired through such exercise and any tax withholding obligations resulting from such exercise; or (iii) any combination of the above.

          c)      Stock Appreciation Right. A stock appreciation right is a right to receive a payment in cash, Shares or a combination, equal to the excess of the aggregate market price at time of exercise
of a specified number of Shares over the aggregate exercise price of the stock appreciation right being exercised. The longest term a stock appreciation right granted on or after the Effective Date may be outstanding shall be seven years. Such
exercise price shall be no less than one hundred percent (100%) of the per Share amount stipulated by Section 2(c).

          d)      Stock Award. A stock award is a grant of Shares or of a right to receive Shares (or their cash equivalent or a combination of both) in the future. Each stock award shall be earned and vest
over such period and shall be governed by such conditions, restrictions and contingencies as the Committee shall determine. These may include continuous service and/or the achievement of performance goals. The performance goals that may be used by
the Committee for such awards granted to persons who may become subject to Code Section 162(m) shall consist of operating profits (including EBITDA), net profits, earnings per share, profit returns and margins, revenues, shareholder return and/or
value, stock price, customer service and quality metrics. Performance goals may be measured solely on a corporate, subsidiary or business unit basis, or a combination thereof. Further, performance criteria may reflect absolute entity performance or
a relative comparison of entity performance to the performance of a peer group of entities or other external measure of the selected performance criteria. Profit, earnings and revenues used for any performance goal measurement may exclude: gains or
losses on operating asset sales or dispositions; asset write-downs; litigation or claim judgments or settlements; accruals for historic environmental obligations; effect of changes in tax law or rate on deferred tax liabilities; accruals for
reorganization and restructuring programs; uninsured catastrophic property losses; the effect of changes in accounting standards; the cumulative effect of changes in accounting principles; and any extraordinary non-recurring items as described in
Accounting Principles Board Opinion No. 30 and Statement of Financial Accounting Standards No. 145 and/or in management’s discussion and analysis of financial performance appearing in the Company’s annual report to stockholders for the
applicable year.

5.          AWARD
SETTLEMENTS AND PAYMENTS

          a)      Dividends and Dividend Equivalents. An award may contain the right to receive dividends or dividend equivalent payments which may be paid either currently or credited to a participant’s
account. Any such crediting of dividends or dividend equivalents may be subject to such conditions, restrictions and contingencies as the Committee shall establish, including the reinvestment of such credited amounts in Share
equivalents.

3

          b)      Payments. Awards may be settled through cash payments, the delivery of Shares, the granting of awards or combination thereof as the Committee shall determine. Any award settlement, including
payment deferrals, may be subject to such conditions, restrictions and contingencies as the Committee shall determine. The Committee may permit or require the deferral of any award payment, subject to such rules and procedures as it may establish,
which may include provisions for the payment or crediting of interest, or dividend equivalents, including converting such credits into deferred Share equivalents.

6.        PROGRAM
AMENDMENT AND TERMINATION

          a)      Amendments. The Board may amend this Program as it deems necessary and appropriate to better achieve the Program’s purpose provided, however, that except as provided in Section 3(d):
(i) the Share and other award limitations set forth in Sections 3(a) and 3(b) cannot be increased and (ii) the minimum stock option and stock appreciation right exercise prices set forth in Sections 2(c) and 4(b) and (c) cannot be changed unless
such a plan amendment is properly approved by the Company’s stockholders.

          b)      Program Suspension and Termination. The Board may suspend or terminate this Program at any time. However, in no event may any awards be granted under the Program after the tenth anniversary
of the Effective Date. Any such suspension or termination shall not of itself impair any outstanding award granted under the Program or the applicable participant’s rights regarding such award.

7.          MISCELLANEOUS

          a)      Assignability. Except by will or by the laws of descent and distribution and, if permitted by the Committee, as a gift to a family member or a trust or similar entity for the benefit of one
or more family members, no award granted under the Program shall be assignable or transferable.

          b)      No Individual Rights. No person shall have any claim or right to be granted an award under the Program. Neither the Program nor any action taken hereunder shall be construed as giving any
employee or other person any right to continue to be employed by or to perform services for the Company, any subsidiary or related entity. The right to terminate the employment of or performance of services by any Program participant at any time and
for any reason is specifically reserved to the employing entity.

          c)      Unfunded Program. The Program shall be unfunded and shall not create (or be construed to create) a trust or a separate fund or funds. The Program shall not establish any fiduciary
relationship between the Company and any participant or beneficiary of a participant. To the extent any person holds any obligation of the Company by virtue of an award granted under the Program, such obligation shall merely constitute a general
unsecured liability of the Company and accordingly shall not confer upon such person any right, title or interest in any assets of the Company.

          d)      Use of Proceeds. Any proceeds from the sale of shares under the Program shall constitute general funds of the Company.

          e)      Other Benefit and Compensation Programs. Unless otherwise specifically determined by the Committee, settlements of awards received by participants under the Program shall not be deemed a
part of a participant’s regular, recurring compensation for purposes of calculating payments or benefits from any Company benefit plan or severance program. Further, the Company may adopt any other compensation programs, plans or arrangements
as it deems appropriate.

          f)      No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Program or any award, and the Committee shall determine whether cash shall be paid or transferred in
lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled.

          g)      Governing Law. The validity, construction and effect of the Program and any award, agreement or other instrument issued under it shall be determined in accordance with the laws of the state
of New Jersey without reference to principles of conflict of law.

4

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