Document:

Exhibit

Exhibit 10.12

QUEST DIAGNOSTICS INCORPORATED
AMENDED AND RESTATED DEFERRED COMPENSATION PLAN
FOR DIRECTORS
(As amended effective January 1, 2016)

		
	Section 1.
	Eligibility

Any Director of Quest Diagnostics Incorporated (the “Corporation”) who is not an officer or employee of the Corporation or a subsidiary thereof is eligible to participate.

		
	Section 2.
	Elections

(a)    Cash Compensation.  A participant may elect to defer receipt, for any calendar year, of all (but not less than all) of the cash compensation payable to the participant for serving as a Director.  Cash compensation deferred by a Director may be allocated to either the cash account (established under Section 3(b)) or the market value account (established under Section 3(c)).

(b)    Stock Awards.  A participant may elect to defer receipt, for any calendar year, of all (but not less than all) of any Stock Awards (as such term is defined in the Corporation’s Long‐Term Incentive Plan for Non‐Employee Directors (the “Incentive Plan”)) granted to the participant under the Incentive Plan.  Stock Awards deferred by a Director shall be allocated to the stock award account (established under Section 3(e)).  No deferral may be made with respect to stock options granted under the Incentive Plan.

(c)    Deferral Period.  A participant may elect to defer receipt of cash compensation and Stock Awards until: (1) a specified year in the future; (2) the participant’s termination of service as a Director: or (3) the first to occur of (1) or (2).  

(d)    Number of Payments.  A participant may elect to receive the cash compensation and Stock Awards deferred under the Plan in either (a) a lump sum or (b) the number of annual installments, not greater than 10, specified by the participant. 

(e)    Deferral Elections.  A director must make an election to defer cash compensation or Stock Awards for any given calendar year no later than December 15th of the preceding year.  An election to defer cash compensation or Stock Awards shall be irrevocable as of December 31 of the year preceding the year to which the election relates, and thereafter may be revoked or modified only upon demonstration of an unforeseeable emergency or a hardship distribution, in either case as determined pursuant to Section 409A (as defined in Section 7).  All elections shall be made by giving written notice to the Secretary of the Corporation on a form satisfactory to the Corporation, which notice shall include the amount to be deferred, the accounts to which such amounts are to be allocated, the period of deferral, and the schedule for payment of deferred amounts.

		
	Section 3.
	Accounts; Notional Investment; Statements

(a)    Deferred Compensation Accounts Generally.  There shall be established for each participant a deferred compensation account or accounts in the participant’s name. Statements regularly will be provided or made available to each participant regarding the value of the participant’s accounts.

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Exhibit 10.12

(b)    Cash Account.  The amount allocated to the participant’s cash account shall be credited with interest, to be compounded quarterly, calculated for each calendar quarter at a rate equal to 120% of the applicable federal long term rate in effect on the first date of such calendar quarter.

(c)    Market Value Account.  The amount allocated to the participant’s market value account shall be expressed in units, the number of which shall be equal to such amount divided by the Market Value.  For purposes of the Plan, “Market Value” means, as of any date, the closing price of shares of the Corporation’s Common Stock on the New York Stock Exchange Composite list (or such other stock exchange as shall be the principal public trading market for the Common Stock on such date (or on the business day next preceding such date if such date is not a business day)).  On each date that the Corporation pays a regular cash dividend on shares of its Common Stock outstanding, the participant’s market value account shall be credited with a number of units equal to the amount of such dividend per share multiplied by the number of units in the participant’s account on such date divided by the Market Value on such dividend date (or on the business day next preceding such date if the dividend payment date is not a business day).  The value of the units in the participant’s market value account on any given date shall be determined by reference to the Market Value on such date.  All units in the market value account shall be rounded to the nearest 0.01 of a whole share of the Corporation’s Common Stock.

(d)    Re-allocation between Cash Account and Market Value Account.  A participant may reallocate the manner (i.e., between the cash account and market value account) in which future cash compensation is to be deferred by notice given no later than 30 days prior to the date that cash compensation would otherwise have been paid.  In addition, a participant may re-allocate any balances held in the cash account to the market value account (or any balances held in the market value account to the cash account) as of the last day of a calendar quarter by notice given no later than 30 days prior to the last date of such calendar quarter.  In such event, the value of the units in the participant’s market value account shall be determined by reference to the Market Value on the last day of such calendar quarter or on the business day next preceding such date if such date is not a business day.  A participant shall provide notice of any reallocation between the cash account and the market value account in accordance with the requirements of the Corporation’s Securities Transactions Policy.  

(e)    Stock Award Account.  Stock Awards deferred by a participant under Section 3(b) shall be allocated to the participant’s stock award account.  Each share of Common Stock included in a deferred Stock Award shall correspond to one stock unit credited to the participant’s stock award account.  On each date that the Corporation pays a regular cash dividend on shares of its Common Stock outstanding, the participant’s stock award account shall be credited with a number of additional units equal to the amount of such dividend per share multiplied by the number of units in the participant’s account on such date divided by the Market Value on such dividend date (or on the business day next preceding such date if the dividend payment date is not a business day).  The value of the units in the participant’s stock award account on any given date shall be determined by reference to the Market Value on such date.  All units in the stock award account shall be rounded to the nearest 0.01 of a whole share of the Corporation’s Common Stock.

(f)    Conversion of Previously Credited Dividend Equivalents.  As of January 1, 2016 (the “Transition Date”), all amounts previously allocated to a participant’s cash account resulting from dividend equivalents credited with respect to units in such participant’s stock award account shall be converted  to the number of additional units in the participant’s stock award account obtained by dividing (i) the aggregate dollar amount of such dividend equivalents, including any interest credited thereon prior to the Transition Date, by (ii) the Market Value on the business day immediately preceding the Transition Date.  The units in the participant’s stock award account resulting from such conversion shall be subject to the terms and conditions of the Plan applicable to the stock award account, including without limitation Sections 3(e) and 4(b). 

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Exhibit 10.12

		
	Section 4.
	Payments

(a)    Commencement of Payment.  If a participant elects to defer receipt of compensation until a specified year in the future, actual payment will be made or will commence on the first business day of the year specified or as soon as practicable thereafter.  If a participant elects to defer receipt of compensation until the participant’s termination of service as a Director, payment will be made or will commence on the first business day of the calendar month after the participant’s termination of service as a Director.  If a participant elects to defer receipt of compensation until the first to occur of a specified year in the future or the participant’s termination of service as a Director, payment will be made in accordance with the election and consistent with the principles set forth in the immediately preceding sentences.  Notwithstanding the foregoing, no Stock Award in a participant’s stock award account shall be distributed before it has vested in accordance with the terms of the Incentive Plan, and if, but for the preceding clause a Stock Award would be distributed prior to vesting, it shall instead be distributed promptly after it has vested.

(b)    Form of Payment.  All amounts credited to the participant’s cash and market value accounts shall be paid in cash.  Cash payments from the participant’s market value account will be determined based on the Market Value on the last business date preceding the date of payment.  All amounts in the stock award account shall be paid in Common Stock of the Corporation.  In the case of any election to receive amounts in the stock award account in installments, the number of shares of Common Stock included in any installment shall equal (i) the number of units credited to the participant’s stock award account immediately prior to payment of the installment, divided by (ii) the number of installments remaining to be made (including the installment in respect of which the calculation is made), rounded down to the nearest whole share.  In connection with the final installment any fractional unit resulting from the foregoing calculation will be paid in cash based on the Market Value of the Common Stock on the last business day preceding the payment date.

(c)    Death or Disability.  In the event that a participant dies or becomes totally and permanently disabled within the meaning of Section 409A) prior to receipt of any or all of the amounts payable to the participant pursuant to the Plan, any cash compensation and Stock Awards deferred under this Plan remaining unpaid shall be paid to the participant’s estate or personal representative in a single installment within sixty (60) days following the participant’s death or disability.

		
	Section 5.
	Administration; Amendment

(a)    Administration.  The Plan shall be administered by the Senior Vice President, Chief Human Resources Officer, who shall have the authority to adopt rules and regulations for carrying out the Plan.  The Compensation Committee of the Board of Directors (the “Compensation Committee”) shall have the authority to interpret, construe and implement the provisions of the Plan.

(b)     Amendments and Termination.  The Plan may at any time or from time to time be amended, modified or terminated by the Board of Directors.  No amendment, modification or termination shall, without the consent of the participant, adversely affect accruals in such participant’s deferred compensation account(s).

		
	Section 6.
	Miscellaneous

(a)    Rights of Unsecured Creditor; No Shareholder Rights.  The right of any participant to receive future payments under the provisions of the Plan shall be an unsecured claim against the general assets of the Corporation.  A participant shall not have any rights of a shareholder of the Corporation in connection with 

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Exhibit 10.12

any amounts credited to his accounts under the Plan until actual delivery of shares of Common Stock of the Corporation pursuant to the Plan.

(b)    No Transfers.  No right to receive payments hereunder shall be transferable or assignable by a participant, whether voluntarily or involuntarily, except by will or by the laws of descent and distribution; provided, however, that the Compensation Committee may permit transfers of deferred compensation accounts and rights to receive payments hereunder as gifts to family members or to trusts or other entities for the benefit of one or more family members on such terms and conditions as it shall determine.

(c)    Adjustments.  In the event of any stock split, reverse stock split, stock dividend, recapitalization, reorganization, merger, demerger, consolidation, split-up, spin-off, combination or exchange of shares, or any similar change affecting the Common Stock, or in the event the Company pays an extraordinary cash dividend, the number of units in each participant’s market value account and the number of Stock Awards in each participant’s stock award account shall be appropriately adjusted consistent with such change in such manner as the Compensation Committee may deem equitable to prevent substantial dilution or enlargement of the right granted to, or available for, participants in the Plan.

Section 7.    Section 409A 

The Plan is intended and shall be construed to comply with Section 409A of the Internal Revenue Code of 1986, as amended, including any amendments or successor provisions to that Section and any regulations and other administrative guidance thereunder, in each case as they, from time to time, may be amended or interpreted through further administrative guidance (collectively, “Section 409A”).  To the extent a participant would otherwise be entitled to any payment under this Plan and that if paid during the six months beginning on the participant’s termination of service would be subject to the Section 409A additional tax because the participant is a “specified employee” (within the meaning of Section 409A and as determined by the Corporation), the payment will be paid to the participant on the earlier of the six-month anniversary of the participant’s termination of employment or death.   For purposes of the Plan, “termination of service” or “termination of service as a Director” shall mean “separation from service,” within the meaning of Section 409A.

4Exhibit

Exhibit 10.13

AMENDED AND RESTATED  
QUEST DIAGNOSTICS INCORPORATED  
LONG-TERM INCENTIVE PLAN FOR  
NON-EMPLOYEE DIRECTORS
(As amended December 3, 2015)

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 Corporation 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 Corporation 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.

“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, unless the Administrator determines otherwise, the mean of the high and low selling prices of a share of Common Stock on the New York Stock Exchange Composite list (or such other stock exchange as shall be the principal public trading market for the Common Stock) on the relevant date of determination, or if the Common Stock is not traded on such date, the mean of the high and low selling prices on the New York Stock Exchange Composite list (or such other stock exchange as shall be the principal public trading market for the Common Stock) on the next preceding day on which the Common Stock was traded.

“Option” means a right granted under the Plan to a Participant to purchase shares of Common Stock.  All Options shall be “nonqualified stock options” which are not intended to qualify as Incentive Stock Options under Section 422 of the Code.

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

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Exhibit 10.13

“Participant” means a member of the Board who is not an employee of the Corporation 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 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 shall be 2,400,000, and 2,400,000 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 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. To the extent that  any Stock Award or Option shall be canceled or expire, new Stock Awards or Options may thereafter be granted covering the number of shares that had been subject to the forfeited portion of the relevant Stock Award or Option.

Section 6.    Grants of Options and Stock Awards.

(a)    On the date of the Annual Meeting of Stockholders 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 shares of Common Stock having a value on the date of grant not exceeding $500,000.  In the event that a Participant is elected as a director of the Corporation other than on the date of the Annual Meeting of Stockholders, the Administrator 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 shares of Common Stock (not to exceed $500,000 in value) that is proportional, based on the fraction of a year remaining until the next Annual Meeting of Stockholders, to the value of the most recent annual equity awards made to the Corporation’s non-employee directors.  In addition, upon a Participant’s initial election as a director of the Corporation, the Administrator may make 

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Exhibit 10.13

a one-time grant to such Participant of an Option and/or a Stock Award, in such proportions as the Administrator may determine, covering  shares of Common Stock having a value on the date of grant not exceeding $500,000.

(b)    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 all or a portion of the cash compensation payable to such director in any year.  The number of shares of Common Stock underlying the Option or Stock Award issued to such director upon such election shall be computed using the same valuation methodology as is then used for reporting compensation expense in the Corporation’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 or Stock Award 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 shall be evidenced by a written agreement, in form approved by the Administrator, 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 shall specify that the Option granted thereunder is granted for a period, which period is no longer than ten (10) years from the date of grant, and shall provide that the Option shall have an expiration date, which expiration date shall be no later than ten (10) years from the date of grant.

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

(c)    Exercise of Option.  Subject to Section 7(f) and unless the Administrator shall determine otherwise, 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(b) vest and become exercisable immediately on the date of grant.  The exercisability of Options, and the ability of a Participant to sell or otherwise transfer shares of Common Stock acquired upon exercise of Options, may be limited by restrictions on exercise included in the Corporation’s securities trading policies or the Corporation’s non-employee director stock ownership guidelines, each as in effect from time to time.

(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 as is determined by the Administrator (but in no event later than the date on which any shares are issued on exercise of an Option).  The Administrator may authorize in its sole discretion, the payment of the Exercise Price by (i) cash, (ii) 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, (iii) 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 (iv)   a net share 

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Exhibit 10.13

settlement procedure or through withholding of shares of Common Stock subject to the Option valued using the Fair Market Value on the date of exercise.

(e)    No Repricing.  Except as provided for in Section 9, the Exercise Price of an Option may not be decreased after the date of grant, and an Option may not be surrendered as consideration in exchange for cash, the grant of a new option with a lower Exercise Price or the grant of a Stock Award, without stockholder approval.

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

(g)    Transferability of Options.  No Option and no right arising under any Option shall be transferable, whether voluntarily or involuntarily, other than by will or by the laws of descent and distribution; provided, however, that the Administrator may permit transfers as gifts to family members or to trusts or other entities for the benefit of one or more family members on such terms and conditions as it shall determine.   

(h)    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 the Participant (or if the shares are held in “street name,” the broker designated by the Participant) is recorded as the holder of such shares on the records of the Corporation.

(i)    Other Option Provisions.  The form of Option agreement may contain such other provisions as the Administrator may, from time to time, determine.

Section 8.    Terms and Conditions of Stock Awards.  Each Stock Award shall be evidenced by a written agreement, in form approved by the Administrator 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 include 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 or a 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 

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Exhibit 10.13

for the payment or crediting of interest, or dividend equivalents, including converting such credits into deferred share equivalents.

(c)    Settlement.  Subject to Section 8(d) and unless the Administrator shall determine otherwise, Stock Awards granted under Section 6(a) hereof consisting of a right to receive shares of Common Stock (or their cash equivalent or a combination of both) in the future shall be settled in three equal annual installments beginning on the first anniversary of the date of grant.  If so determined by the Administrator, vesting or settlement of Stock Awards may be conditioned upon the attainment of performance goals.  Stock Awards granted under Section 6(b) vest and become available for settlement immediately on the date of grant.  Settlement of the Stock Awards, and the ability of a Participant to sell or otherwise transfer shares of Common Stock acquired upon settlement of Stock Awards, may be limited by restrictions included in the Corporation’s securities trading policies or the Corporation’s non-employee director stock ownership guidelines, each as in effect from time to time.

(d)    Termination of Service on the Board.  In the event a Participant terminates service on the Board for any reason, each Stock Award previously granted to such Participant will be settled in accordance with its terms, subject to any payment deferral made pursuant to Section 8(b).

(e)    Transferability of Stock Awards.  No Stock Award and no right arising under any Stock Award shall be transferable, whether voluntarily or involuntarily, other than by will or by the laws of descent and distribution; provided, however, that the Administrator may permit transfers as gifts to family members or to trusts or other entities for the benefit of one or more family members on such terms and conditions as it shall determine.

(f)    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 the Participant (or if the shares are held in “street name,” the broker designated by the Participant) is recorded as the holder of such shares on the records of the Corporation.

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

Section 9.    Adjustments in Event of Change in Common Stock.  In the event of any stock split, reverse stock split, stock dividend recapitalization, reorganization, merger, demerger, consolidation, split-up, spin-off, combination or exchange of shares, or of any similar change affecting the Common Stock, or in the event the Corporation pays an extraordinary cash dividend, (i) the number and kind of shares which thereafter may be optioned, awarded and sold under the Plan, (ii) the number and kind of shares subject to Stock Awards under outstanding Stock Award agreements or subject to Options under outstanding Option agreements, and (iii) the Exercise Price per share of such Options shall be appropriately 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, 

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Exhibit 10.13

however, that no such adjustment shall be required if the Administrator determines that such action could cause an Option or Stock Award to fail to satisfy the conditions of an applicable exception from the requirements of Section 409A (as defined below) or otherwise could subject a Participant to any interest or additional tax imposed under Section 409A in respect of an outstanding 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.

(a)   Tax Withholding.  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 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 (but only to the extent that such deduction would not subject the Participant to any interest or additional tax imposed under Section 409A), 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.

(a)    Section 409A.  The Plan is intended and shall be construed to comply with Section 409A of the Code, including any amendments or successor provisions to that Section and any regulations and other administrative guidance thereunder, in each case as they, from time to time, may be amended or interpreted through further administrative guidance (collectively, “Section 409A”).  In this regard, and without limiting the previous sentence, any election made with respect to Sections 6(a), 6(c) and 8(b) shall be conformed to the requirements of Section 409A to the extent applicable.

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/her 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 

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Exhibit 10.13

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.

Section 13.    Amendment.  The Board may, with prospective or retroactive effect, amend the Plan and the Administrator may amend any outstanding award in such manner as it deems necessary and appropriate to better achieve the Plan’s purpose; provided, however, that no amendment of the Plan shall deprive any Participant of any right with respect to any Stock Award or Option without his/her 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.  Notwithstanding the foregoing, the consent of a Participant shall not be required for any action taken by the Administrator (x) to settle or adjust an outstanding award pursuant to Section 9 or (y) to modify an outstanding award to avoid, in the reasonable, good faith judgment of the Corporation, the imposition on the Participant of any interest or additional tax under Section 409A.

Section 14.    Termination.  The Board may suspend or terminate this Plan at any time. Unless earlier terminated pursuant to the preceding sentence, this Plan shall terminate on the date of the 2019 Annual Meeting of Stockholders, and no Stock Awards or Options may be granted after such date.  No such suspension or termination of the Plan shall deprive any Participant of any right with respect to any outstanding Stock Award or Option without his/her written consent.

Section 15.    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 16.    Governing Law.  The Plan and all rights thereunder shall be governed by and construed in accordance with the laws of the State of New Jersey applicable to contracts made and to be performed entirely within such State (without reference to its principles of conflicts of law).

Section 17.    No Fractional Shares.  No fractional shares shall be issued or delivered pursuant to the Plan or any Option or Stock Award, and the Administrator shall determine whether any fractional share shall be rounded up or rounded down to the nearest whole share, whether cash shall be paid or transferred in lieu of any fractional shares, or whether such fractional shares or any rights thereto shall be cancelled.

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