Document:

EX-10.1

 Exhibit 10.1 

Execution Version 

EXECUTIVE EMPLOYMENT AGREEMENT 

This EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of the 4th
day of June, 2019, by and among Laboratory Corporation of America Holdings, a Delaware corporation (the “Company”) and Adam H. Schechter, an individual (the “Executive”). 

WHEREAS, the Company desires to employ the Executive as the President and Chief Executive Officer of the Company; 

WHEREAS, the Executive desires to accept such employment as the President and Chief Executive Officer of the Company. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for other good and valuable consideration, the
receipt and sufficiency of which hereby are acknowledged, the parties hereto agree as follows: 
 1. Employment Agreement. On the
terms and conditions set forth in this Agreement, the Company agrees to employ the Executive and the Executive agrees to be employed by the Company for the Employment Period set forth in Section 2 and in the positions and with the duties set
forth in Section 3. 
 2. Term. The initial term of employment under this Agreement shall be for a period beginning on
November 1, 2019 (the “Effective Date”) and ending on the third anniversary thereof, unless sooner terminated as hereinafter set forth; provided that, on the third anniversary of the Effective Date and on each annual
anniversary thereafter (such date and each annual anniversary thereof, a “Renewal Date”), the Agreement shall be deemed to be automatically extended upon the same terms and conditions (except for such terms and conditions that
expire prior to any extension period), for successive periods of one year, unless the Company or the Executive provides written notice of its intention not to extend the term of the Agreement at least 180 days’ prior to the applicable Renewal
Date. The period during which the Executive is employed by the Company hereunder is hereinafter referred to as the “Term” or the “Employment Period.” Any termination of the Executive’s employment upon the
expiration of the Term following notice by the Company to Executive that the Term shall not be renewed shall constitute a termination by the Company without Cause or constitute Good Reason (each as defined below). For the avoidance of doubt, the
Executive’s employment shall terminate upon the expiration of the Term following notice by either the Company or the Executive, unless the parties shall at such time otherwise agree in writing. 

3. Position and Duties. 

(a) Executive Positions. During the Employment Period, the Executive shall serve as the President and Chief Executive Officer of the
Company with his primary office location in Burlington, North Carolina. In such capacities, the Executive shall report to the Company’s Board of Directors (the “Board”) and perform the duties and responsibilities as the Board
may from time to time determine to assign to the Executive. The Executive’s employment shall be subject to the policies maintained and established by the Company, as the same may be 

 Execution Version 

 

 
amended from time to time. The Executive acknowledges and agrees that the Executive owes a fiduciary duty of loyalty, fidelity and allegiance to act at all times in the best interests of the
Company and to do no act that would intentionally injure the business, interests, or reputation of the Company or its subsidiaries and affiliates. In keeping with these duties, the Executive shall make full disclosure to the Board of all business
opportunities pertaining to the business of the Company and shall not appropriate for the Executive’s own benefit business opportunities that fall within the scope of the businesses conducted by the Company. The Executive shall also devote the
Executive’s reasonable best efforts and full business time to the performance of the Executive’s duties hereunder and the advancement of the business and affairs of the Company. Subject to the prior written approval of the Board, the
Executive may serve on boards of directors of other publicly traded and private companies. The Executive has previously disclosed to the Board, and the Board hereby approves, those boards of directors on which he serves as of the date of this
Agreement. 
 (b) The Executive shall continue as a member of the Board of the Company as of the Effective Date and serve in this capacity
without additional compensation (including additional compensation in the form of any retainer for the quarter in which the Effective Date occurs), and in advance of the expiration of each term as a director, in due course, and, subject to the
annual approval of the Nominating and Corporate Governance Committee of the Board in accordance with its duties and responsibilities, shall be nominated for re-election to the Board so long as he is then
serving as Chief Executive Officer of the Company and is eligible to be a member of the Board under applicable law or rules of the national securities exchange on which the Company’s common stock is then listed, if any. It is the expectation of
the Board that, subject to his qualification, Executive be named as Chairman of the Board not earlier than the Effective Date and not later than December 31, 2020, or any earlier date on which the Board Chairman on the date hereof ceases to be
Chairman. The Executive’s continued membership on the Board shall be subject to election in accordance with the by-laws of the Company and applicable law, and shall not be considered a condition to
Executive’s performance of his obligations hereunder, nor shall failure to be elected to the Board be considered a diminution of Executive’s duties or responsibilities, pursuant to Section 6(y)(iii) below, provided Executive has been
nominated for re-election to the Board. The Executive also agrees to serve without additional compensation, if elected or appointed thereto, as a director or member of any of the Company’s subsidiaries or
affiliates and in one or more executive offices of any of the Company’s subsidiaries or affiliates. 
 (c) Executive acknowledges that
Executive shall be subject to and must comply with the Company’s policy with respect to ownership of Company common stock as it may be in effect from time to time. 

4. Compensation and Benefits. 

(a) Base Salary. Commencing on the Effective Date, the Company shall pay to the Executive a base salary at the initial rate of
$1,250,000 per calendar year (the “Base Salary”), prorated for any partial year of employment. The Base Salary shall be reviewed for increase by the Compensation Committee of the Board (the “Compensation Committee”)
no less frequently than annually during the customary annual review period for other senior executives 

  
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and may be increased in the discretion of the Compensation Committee. Any such increase in Base Salary shall constitute the “Base Salary” for purposes of this Agreement. The Base Salary
shall be paid in substantially equal installments in accordance with the Company’s regular payroll procedures and policies in effect from time to time. The Executive’s Base Salary may not be decreased during the Employment Period other
than pursuant to a like proportionate reduction of base salaries of other senior executives of the Company. 
 (b) Sign-On Equity Grant. On the Effective Date, the Executive shall be granted equity awards under the Company’s 2016 Omnibus Incentive Plan (the “Omnibus Plan”) with an aggregate grant date
fair value of $4,000,000 (the “Sign-On Equity Grants”). The Sign-On Equity Grants will be comprised of (1) time-vesting stock options with an
aggregate grant date fair value of $1,000,000, which are eligible to vest in equal installments on each of the first through third anniversaries of the Effective Date and which will be granted with an exercise price that is equal to the Fair Market
Value, as defined in the Omnibus Plan, of a share of the Company’s common stock on the Effective Date, and have a ten (10)-year term (subject to earlier termination as provided in the applicable award agreements following termination of
employment), (2) time-vesting restricted stock units with an aggregate grant date fair value of $1,000,000, which are eligible to vest and be settled in shares of common stock of the Company in equal installments on each of the first through third
anniversaries of the Effective Date, and (3) time-vesting premium priced stock options with an aggregate grant date fair value of $2,000,000 (with the assumption of a 6-year expected life, historical
volatility calculated over the expected life, risk-free interest rate from zero coupon treasury rates matched to the expected life, and dividend yield of the common stock, if any), which are eligible to vest in equal installments on each of the
first through third anniversaries of the Effective Date and which will be granted with an exercise price that is 115% of the Fair Market Value of a share of the Company’s common stock on the Effective Date, and have a ten (10)-year term
(subject to earlier termination as provided in the applicable award agreements following termination of employment). Any unvested portion of the Sign-On Equity Grants will become fully vested upon a
termination of the Executive’s employment by the Company without Cause, termination by the Executive for Good Reason or due to the Executive’s death or Disability. The Sign-On Equity Grants shall be
subject to the terms and conditions of the Omnibus Plan and forms of award agreements attached hereto as Exhibit A-1, A-2 and
A-3. 
 (c) Annual Bonus. For each calendar year that ends during the Employment Period, the
Executive shall be eligible to receive an annual bonus pursuant to the Company’s Management Incentive Bonus Plan or any successor plan that is in effect from time to time (any such bonus, the “Incentive Bonus”). The
Executive’s target Incentive Bonus amount for a particular calendar year of the Company shall equal one hundred and fifty percent (150%) of the Executive’s Base Salary for that calendar year (the “Target Bonus Amount”);
provided that the Executive’s actual Incentive Bonus amount for a particular calendar year shall be determined by the Compensation Committee in its sole and unfettered discretion taking into account performance objectives (which shall include
corporate and individual objectives) established with respect to that particular calendar year by the Compensation Committee, and may be more or less than the Target Bonus Amount. The Target Bonus Amount shall be reviewed for increase by the
Compensation Committee no less frequently than annually during the customary annual review period for other senior executives and may be increased in the discretion of the 

  
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Compensation Committee. Any such increase in the Target Bonus Amount shall constitute the “Target Bonus Amount” for purposes of this Agreement. For the calendar year 2019, the
Executive’s Target Bonus Amount shall be pro-rated (calculated as the Target Bonus Amount for the entire 2019 calendar year multiplied by a fraction the numerator of which is equal to the number of days
the Executive was employed as an employee in the 2019 calendar year and the denominator of which is 365. Except as otherwise set forth herein, the Executive must be actively employed by the Company throughout the applicable bonus measurement period
and shall not have given notice of termination (other than for Good Reason (as set forth below), or been given notice by the Company of the termination of this Agreement for Cause (as set forth below) where such breach giving rise to Cause or Good
Reason is not cured, at any time during the applicable bonus measurement period to be eligible to receive the Incentive Bonus. 
 (d)
Annual Equity Grants. On the date that annual grants are awarded to other executives during 2020, the Executive shall be granted equity awards under the Company’s Omnibus Plan having a grant date fair value of not less than $9,400,000.
Thereafter, the Executive shall be eligible to receive annual grants under the Company’s Omnibus Plan, or any successor thereto, with the annual grant amount to be determined annually by the Compensation Committee. Any such annual equity
grants, including the grant to be awarded in 2020 above, shall be in such mix of grant types and subject to the terms and conditions set forth in the Company’s forms of grant agreements that apply to other executives of the Company, except as
specifically provided herein. For the avoidance of doubt, for purposes of determining the Executive’s eligibility for vesting of all awards and exercise of stock options due to retirement or early retirement as provided in the form equity award
agreements (on the date hereof described as “Retirement at Age 65 Plus 5” and “Separation due Retirement at Age 55 (Rule of 70)”), the Executive shall be credited with Service (as defined therein) for all service as a member of
the Board prior to the Effective Date. 
 (e) Employee Benefits; Perquisites. 

(i) During the Employment Period, the Executive shall be entitled to participate in all employee benefit plans, practices and programs
maintained by the Company, as in effect from time to time, that are generally made available to senior executives of the Company. The Company reserves the right to amend, modify or cancel any employee benefit plans, practices and programs, and any
fringe benefits and perquisites, as applicable to executives of the Company generally (and, accordingly, other than as provided at Section 4(e)(ii) below), at any time and without the consent of the Executive. 

(ii) During the Employment Period, the Executive shall also be entitled to: (a) a company car and driver for local commuting and business
use in the Burlington, North Carolina area, an annual executive physical, and financial planning services, each on substantially the same basis as provided to the immediately preceding Chief Executive Officer of the Company; (b) reasonable
security services, subject to the approval of the Board; and (c) use of a private aircraft for nonbusiness purposes in an amount not exceeding $150,000 per calendar year (such amount to be pro-rated for
2019), based on the Company’s aggregate incremental cost calculation used for SEC proxy disclosure purposes. 

  
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 (iii) Executive acknowledges and agrees that he shall bear responsibility for any taxable
income resulting from the employee benefits and perquisites set forth in this section (including reimbursement or coverage of expenses by the Company). 

(f) Commuting Costs. For the first three years of the Employment Period, the Company will pay the costs of up to $350,000 per calendar
year (such amount to be pro-rated for 2019 and all partial calendar years), based on the Company’s aggregate incremental cost calculation used for SEC proxy disclosure purposes, associated with flights
(commercial or Company arranged through NetJets or other similar provider) between the vicinity of Executive’s residence and Executive’s primary place of employment in Burlington, North Carolina. The Board may, in its discretion, increase
(but, until the third anniversary of the Effective Date, may not decrease) such annual commuting cost amount. Effective as of the third anniversary of the Effective Date, the Company reserves the right to amend, modify or cancel this arrangement.
Executive acknowledges and agrees that he shall bear responsibility for all other costs of commuting from his residence in Pennsylvania to Burlington, North Carolina and for any taxable income resulting from expenses (including reimbursement or
coverage of expenses by the Company) associated with travel from his primary residence to his primary place of employment. 
 (g) Company
Compensation Plans. Except as otherwise provided herein, all compensation provided to the Executive pursuant to this Section 4 shall be in accordance with the Company’s compensation plans and policies. 

(h) Clawback/Recoupment. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation,
including the Incentive Bonus, the Sign-On Equity Grants, annual equity grants, or any other compensation, paid to the Executive pursuant to this Agreement or any other agreement or arrangement with the
Company shall be subject to the terms of the Company’s Incentive Compensation Recoupment Policy, as separately provided to Executive, and as the same may be amended from time to time. 

5. Expenses. Subject to the limitation provided in Section 4(f), the Company shall reimburse the Executive for all expenses
reasonably and actually incurred in accordance with policies which may be adopted from time to time by the Company promptly upon periodic presentation by the Executive of an itemized account, including reasonable substantiation, of such expenses.

 6. Termination of Employment. 

(a) Permitted Terminations. (x) This Agreement may be terminated by the Company prior to the Effective Date under the following
circumstances: (i) the Executive’s death or Disability (as defined below), (ii) if an event that would constitute Cause, as defined below, had the Executive then been employed by the Company occurs, whether or not the Executive is then
employed by the Company, or (iii) by the Company for any other reason. (y) The Executive’s employment hereunder may be terminated during the Employment Period under the following circumstances: 

  
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 (i) Death. The Executive’s employment hereunder shall terminate upon the
Executive’s death; 
 (ii) By the Company. 

(A) Disability. The Company may terminate the Executive’s employment if the Executive is unable to perform each of the essential
duties of his position by reason of a medically determinable physical or mental impairment which is potentially permanent in character or which can be expected to last for a continuous period of not less than twelve (12) months (a
“Disability”); or 
 (B) Cause. The Company may terminate the Executive’s employment for Cause or without
Cause. If the Company terminates the Executive’s employment without Cause, the Company shall not be required to give advance notice. 
 For purposes of
this Agreement (including the Sign-On Equity Grants), “Cause” shall be limited to the following events: (i) an intentional act of fraud, embezzlement, theft, or any other material violation of
law in connection with Executive’s duties or in the course of his employment with the Company: (ii) Executive’s conviction of or entering of a plea of nolo contendere to a felony; (iii) Executive’s alcohol intoxication on
the job or current illegal drug use; (iv) Executive’s intentional wrongful damage to tangible assets of the Company; (v) Executive’s intentional wrongful disclosure of material confidential information of the Company and/or
material breach of the provisions of the Company’s Confidentiality/Non-Competition/Non-Solicitation Agreement or any other noncompetition or confidentiality
provisions covering the activities of Executive; (vi) Executive’s knowing and intentional breach of any employment policy of the Company; (vii) gross neglect or gross misconduct, disloyalty, dishonesty, or breach of trust in the
performance of the Executive’s duties that is not corrected to the Board’s satisfaction within 30 days of the Executive receiving notice thereof; or (viii) Executive’s misconduct that causes reputational harm to the Company. 

(iii) By the Executive. The Executive may terminate this Agreement for any reason prior to the Effective Date, and may terminate his
employment for any reason (including Good Reason) or for no reason during the Employment Period. If the Executive terminates his employment without Good Reason, then he shall provide written notice to the Company at least thirty (30) days prior
to the Date of Termination, provided that the Company may, in its sole discretion, waive the provision of all or any portion of the notice period and immediately terminate the Executive, which termination shall not be deemed a termination without
Cause or constitute grounds for termination for Good Reason. 
 For purposes of this Agreement (including the
Sign-On Equity Grants), “Good Reason” means, without the Executive’s prior written consent (i) a material reduction in the Executive’s Base Salary or any reduction of the Target Bonus
Amount; (ii) relocation to an office location more than 75 miles from either the Executive’s principal office location or his principal residence as of the date of notice of relocation; (iii) the Board shall fail to appoint the
Executive as Chairman of the Board on the earlier of the date on which the Board Chairman on the date hereof ceases to be the Chairman or December 31, 2020 (but not prior to the Effective Date); (iv) the Board shall fail

  
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to re-nominate the Executive for re-election to the Board; or (v) a material diminution in title, duties, or
responsibilities, including reporting responsibilities, of the Executive in his capacity as an employee (for which purpose such a material diminution shall be deemed to occur in the event of a Change in Control (as defined below) in which the
Company ceases to be a publicly traded company, except in the case that the Executive is the most senior officer and a member of the board of directors of the top-most publicly traded parent company of which
the Company is a subsidiary resulting from such Change in Control). Notwithstanding the foregoing, “Good Reason” shall not include a reduction in Base Salary where such reduction is pursuant to a like proportionate reduction of base
salaries of other senior executives of the Company. Further, for the avoidance of doubt, “Good Reason” shall not include (i) Executive’s failure to be re-elected to the Board by the
Company’s shareholders provided the Board nominates him for re-election to the Board; or (ii) Executive’s ceasing to serve as the Chairman of the Board following his initial appointment as the
Chairman. In order to invoke a termination for Good Reason, the Executive’s termination must occur within 90 days after the occurrence of the Good Reason and after the Company has received notice of the Good Reason event and failed to cure
within 30 days after receiving such notice. Otherwise, such termination shall be considered voluntary termination without Good Reason. 
 For purposes of
this Agreement, “Date of Termination” means (i) if this Agreement or Executive’s employment is terminated due to the Executive’s death, the date of the Executive’s death; (ii) if this Agreement or Executive’s
employment is terminated because of the Executive’s Disability, 30 days after Notice of Termination is given by the Company; or (iii) if the Executive’s employment is terminated by the Company for any other reason or by the
Executive pursuant to Section 6(a)(y)(iii), the date specified in the Notice of Termination. Notwithstanding any provision of this Agreement to the contrary, for purposes of any provision of this Agreement providing for the payment of any
amounts or benefits upon or following a termination of employment that are considered deferred compensation under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the Treasury Regulations
thereunder (collectively, “Section 409A”), references to Executive’s termination of employment (and corollary terms) with the Company shall be construed to refer to Executive’s “separation from
service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) with the Company. 
 (b)
Termination. Any termination of this Agreement prior to the Effective Date or of Executive’s employment by the Company or the Executive (other than because of the Executive’s death) shall be communicated by a written Notice of
Termination to the other party hereto in accordance with the requirements of this Agreement. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this
Agreement relied upon, if any, and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated. Termination of the Executive’s employment shall take effect on the
Date of Termination. The Executive agrees, in the event of any dispute as to whether a Disability exists, and if requested by the Company, to submit to a physical examination by a licensed physician selected by mutual consent of the Company and the
Executive, the cost of such examination to be paid by the Company. The written medical opinion of such physician shall be conclusive and binding upon each of the parties hereto as to whether a Disability exists and the date when such Disability
arose. This Section shall be interpreted and applied so as to comply with the provisions of the Americans with Disabilities Act (to the extent applicable) and any applicable state or local laws. 

  
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 (c) Resignation of All Other Positions. Upon termination of the Executive’s
employment for any reason, the Executive shall resign from all positions that the Executive holds as an officer or member of the Board (or a committee thereof) and as an officer or member of the board of directors (or a committee thereof) of any
Company subsidiaries or affiliates. 
 7. Compensation Upon Termination. 

(a) Death. If this Agreement or the Executive’s employment is terminated as a result of the Executive’s death, this Agreement
and the Employment Period shall terminate without further notice or any action required by the Company or the Executive’s legal representatives. If the Date of Termination is after the Effective Date, within 30 days following the
Executive’s death, the Company shall pay to the Executive’s legal representative or estate, as applicable, (i) the Executive’s Base Salary and accrued unused vacation due through the Date of Termination; (ii) all Accrued
Benefits, if any, to which the Executive is entitled as of the Date of Termination at the time such payments are due; (iii) payment of any Incentive Bonus earned for a prior completed performance period and unpaid on the Date of Termination;
and (iv) a Partial Year Bonus (defined below) in the manner provided in Section 7(d) (such amounts in clauses (i) through (iv), the “Accrued Amounts”). The rights of the Executive’s legal representative or
estate, as applicable, with respect to the Executive’s equity or equity-related awards shall be governed by the applicable terms of the related plan or award agreement. Except as set forth herein, the Company and the Company’s subsidiaries
and affiliates shall have no further obligation to the Executive or his legal representatives, estate or heirs upon his death under this Agreement. For purposes of this Agreement, “Accrued Benefits” means (w) any compensation
deferred by the Executive prior to the Date of Termination and not paid by the Company or otherwise specifically addressed by this Agreement; (x) any amounts or benefits owing to the Executive or to the Executive’s beneficiaries under the
then applicable benefit plans of the Company; (y) any amounts owing to the Executive for reimbursement of expenses properly incurred by the Executive through the Date of Termination and which are reimbursable in accordance with Section 5;
and (z) any other benefits or amounts due and owing to the Executive under the terms of any plan, program or arrangement of the Company. 

(b) Disability. If the Company terminates this Agreement prior to the Effective Date because of the Executive’s Disability, the
Company shall have no further obligations to the Executive under this Agreement upon such termination. If the Company terminates the Executive’s employment during the Employment Period because of the Executive’s Disability pursuant to
Section 6(a)(y)(ii)(A), the Company shall pay to the Executive the Accrued Amounts. The rights of the Executive with respect to the Executive’s equity or equity-related awards shall be governed by the applicable terms of the related plan
or award agreement. Except as set forth herein, the Company shall have no further obligations to the Executive under this Agreement upon Executive’s termination due to Disability pursuant to Section 6(a)(y)(ii)(A). 

  
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 (c) Termination by the Company for Cause or by the Executive without Good Reason. If
prior to the Effective Date, either the Company terminates this Agreement pursuant to Section 6(a)(x)(ii) or the Executive terminates this Agreement pursuant to Section 6(a)(y)(iii), the Company shall have no further obligations to the
Executive under this Agreement upon such termination. If during the Employment Period the Company terminates the Executive’s employment for Cause pursuant to Section 6(a)(y)(ii)(B) or the Executive terminates his employment without Good
Reason pursuant to Section 6(a)(y)(iii), the Company shall pay to the Executive the Executive’s Base Salary and accrued unused vacation due through the Date of Termination and all Accrued Benefits, if any, to which the Executive is
entitled as of the Date of Termination, at the time such payments are due, and the Executive’s rights with respect to then vested or exercisable equity or equity-related awards shall be governed by the applicable terms of the related
plan or award agreements. Except as set forth herein, the Company shall have no further obligations to the Executive under this Agreement upon such termination. 

(d) Termination by the Company without Cause, by the Executive with Good Reason, or termination following notice by the Company of non-renewal of the Term. If prior to the Effective Date the Company terminates this Agreement pursuant to Section 6(a)(x)(iii) or during the Employment Period the Company terminates the Executive’s
employment other than for Cause pursuant to Section 6(a)(y)(ii)(B), the Executive terminates his employment with Good Reason pursuant to Section 6(a)(y)(iii), or the Executive’s employment terminates upon the expiration of the Term
following a notice by the Company to not renew the Term pursuant to Section 2 (each, a “Qualifying Termination”), the Company shall pay to the Executive (x) the Executive’s Base Salary and accrued unused vacation due
through the Date of Termination; (y) all Accrued Benefits, if any, to which the Executive is entitled as of the Date of Termination, in each case at the time such payments are due; and (z) payment of any Incentive Bonus earned for a
previous completed performance period and unpaid on the Date of Termination. The Executive shall also be entitled to receive, subject to his execution of a Special Severance Agreement (as defined
below), the following severance benefits (collectively, the “Severance Benefits”): 
  

	 	(i)	 an amount equal to the product of (A) two (2), if the Qualifying Termination is not within thirty-six months following a Change in Control, as such term is defined in the Omnibus Plan, or (B) three (3), if the Qualifying Termination is within thirty-six months
following a Change in Control, multiplied by the sum of (1) Executive’s Base Salary plus (2) the total dollar amount of the last three Incentive Bonuses paid to the Executive divided by three (the “Average Incentive
Bonus”); provided, however, that if the Executive has received less than three Incentive Bonus payments during the term of the Executive’s employment, then the Average Incentive Bonus shall equal the total dollar amount
of Incentive Bonuses paid to the Executive divided by the number of Incentive Bonuses received by the Executive; provided, further, however, that any prorated bonuses Executive has received will be annualized for purposes of
this Section (by dividing the amount of the Incentive Bonus by the proration factor that was applied to determine such Incentive Bonus under Section 3(c)) and that if a Qualifying Termination occurs prior to the payment of any Incentive Bonus
under this Agreement, the Average Incentive Bonus shall be deemed to be the Target Bonus Amount (the amount determined pursuant to this subparagraph (i), the “Cash Severance Benefits”); 

  
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	 	(ii)	 reimbursement by the Company of the applicable premium for the continuation of those health benefits for which
Executive qualified at the time of the Qualifying Termination, pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), for up to eighteen months following the Date of Termination to the extent actually paid by Executive (the
“COBRA Continuation Benefits”); 

  

	 	(iii)	 a Partial Year Bonus, as defined below; and 

 

	 	(iv)	 vesting of any unvested portion of the Sign-On Equity Awards, and
prompt settlement of the restricted stock unit award thereunder, pursuant to Section 4(b). 

 The Company shall pay the Executive the
Cash Severance Benefits to which he is entitled under this Section 7(d) as follows: (a) 50 percent of the total Cash Severance Benefits due, less statutory deductions, shall be paid within 30 days following the execution of the Special
Severance Agreement, but in no event shall be paid later than March 15 of the year following the year in which the Termination Date occurred; and (b) the remaining 50 percent of the total Cash Severance Benefits, less statutory
deductions, shall be paid within 30 days following the one-year anniversary of the execution of the Special Severance Agreement, but only if the Executive has complied in all material respects with the terms
and conditions of the Special Severance Agreement. The COBRA Continuation Benefits shall be provided on a monthly basis commencing 30 days following execution of the Special Severance Agreement. 

A “Partial Year Bonus” is payable to the Executive for the year of the Executive’s employment termination in the event the Company
performance criteria for payment of an Incentive Bonus are achieved as of the close of the year based on the actual performance level achieved for such year (as determined (x) treating any individual factors as fully satisfied and
(y) without regard for any exercise of negative discretion unless such exercise is applicable to all similarly situated executives with like force and effect); provided, however, that if a Qualifying Termination occurs after a
Change in Control, the performance criteria shall be deemed satisfied at the target level. Any such Partial Year Bonus shall equal the Executive’s Incentive Bonus compensation so earned multiplied by a fraction, the numerator of which is the
number of days the Executive was employed by the Company in the annual or other performance period for the Incentive Bonus award in which such termination occurs and the denominator of which is the total number of days included within such annual or
partial year performance period. Should any such Partial Year Bonus become payable under this Agreement, payment shall be made to the Executive at the same time as payment is made to all other participants under the Incentive Bonus compensation
program following the close of the year. 
 (e) The Executive’s rights with respect to equity or equity-related awards (including as
provided above for Sign-On Equity Grants) shall be governed by the applicable terms of the related plan or award agreements. 

  
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 (f) Liquidated Damages. The parties acknowledge and agree that damages that will
result to the Executive for termination by the Company of this Agreement under Section 6(a)(x)(iii) or the Executive’s employment without Cause under Section 6(a)(y)(ii)(B) or by the Executive for Good Reason under
Section 6(a)(y)(iii) shall be extremely difficult or impossible to establish or prove, and agree that the Severance Benefits shall constitute liquidated damages for any such termination. The Executive agrees that, except for such other payments
and benefits to which the Executive may be entitled as expressly provided by the terms of this Agreement or any other applicable benefit plan, such liquidated damages shall be in lieu of all other claims that the Executive may make by reason of any
such termination of his employment and that, as a condition to receiving the Severance Benefits, the Executive will execute a release of claims and separation agreement substantially in the form of the release attached hereto as Exhibit B (the
“Special Severance Agreement”). Within five business days of the Date of Termination, the Company shall deliver to the Executive the Special Severance Agreement for the Executive to execute. The Executive will forfeit all
rights to the Severance Benefits unless, within 30 days of delivery of the Special Severance Agreement by the Company to the Executive, the Executive executes and delivers the Special Severance Agreement to the Company and the releases contained
therein have become irrevocable by virtue of the expiration of the revocation period without the release having been revoked (the first such date, the “Release Effective Date”). In the event that the Release Effective Date could
occur in one of two taxable years of the Executive, the Release Effective Date shall be deemed to occur in the earliest date in the later such taxable year as otherwise would apply thereunder. The Company and Company subsidiaries and affiliates
shall have no obligation to provide the Severance Benefits prior to the Release Effective Date. 
 (g)
Section 409A. To the extent the Executive would be subject to the additional 20% tax imposed on certain deferred compensation arrangements pursuant to Section 409A as a result of any provision of this Agreement, such
provision shall be deemed amended to the minimum extent necessary to avoid application of such tax and preserve to the maximum extent possible the original intent and economic benefit to the Executive and the Company, and the parties shall promptly
execute any amendment reasonably necessary to implement this Section 7(g). 
 (i) For purposes of Section 409A, the
Executive’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. 

(ii) The Executive will be deemed to have a Date of Termination for purposes of determining the timing of any payments or benefits hereunder
that are classified as deferred compensation only upon a “separation from service” within the meaning of Section 409A. 

(iii) Notwithstanding any other provision of this Agreement to the contrary, if at the time of the Executive’s separation from service,
(i) the Executive is a specified employee (within the meaning of Section 409A and using the identification methodology selected by the Company from time to time), and (ii) the Company makes a good faith determination that an amount
payable on account of such separation from service to the 

  
 11 

 Execution Version 

 

 
Executive constitutes deferred compensation (within the meaning of Section 409A) the payment of which is required to be delayed pursuant to the
six-month delay rule set forth in Section 409A in order to avoid taxes or penalties under Section 409A (the “Delay Period”), then the Company will not pay such amount on the
otherwise scheduled payment date but will instead pay it in a lump sum on the first business day after such six-month period (or upon the Executive’s death, if earlier), together with interest for the
period of delay, compounded annually, equal to the prime rate (as published in the Wall Street Journal) in effect as of the dates the payments should otherwise have been provided. To the extent that any benefits to be provided during the Delay
Period are considered deferred compensation under Section 409A provided on account of a “separation from service,” and such benefits are not otherwise exempt from Section 409A, the Executive shall pay the cost of such benefit
during the Delay Period, and the Company shall reimburse the Executive, to the extent that such costs would otherwise have been paid by the Company or to the extent that such benefits would otherwise have been provided by the Company at no cost to
the Executive, the Company’s share of the cost of such benefits upon expiration of the Delay Period, and any remaining benefits shall be reimbursed or provided by the Company in accordance with the procedures specified herein. 

(iv) (A) Any amount that the Executive is entitled to be reimbursed under this Agreement will be reimbursed to the Executive as promptly as
practical and in any event not later than the last day of the calendar year after the calendar year in which the expenses are incurred, (B) any right to reimbursement or in kind benefits will not be subject to liquidation or exchange for
another benefit, and (C) the amount of the expenses eligible for reimbursement during any taxable year will not affect the amount of expenses eligible for reimbursement in any other taxable year. 

(v) Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made
within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company. 

8. Confidentiality, Non-Competition and Non-Solicitation
Agreement. In consideration of the employment and compensation terms set forth in this Agreement, the Executive agrees to execute and be bound by the terms of the Company’s Confidentiality,
Non-Competition and Non-Solicitation Agreement attached as Exhibit C. 

9. Parachute Limitations. Notwithstanding anything herein to the contrary, in the event that the payments or distributions to be made
by the Company to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, under some other plan, agreement, or arrangement, or otherwise) (a “Payment”)
constitute “parachute payments” within the meaning of Section 280G of the Code, then the Payment to the Executive shall be reduced to $1 below the safe harbor limit (as described in Section 280G(b)(2)(A)(ii) of the Code) if said
reduction in Payment would result in the Executive retaining a larger amount, on an after-tax basis, taking into account the excise and income taxes imposed on the payments and benefits. 

  
 12 

 Execution Version 

 

 10. Indemnification. The Company shall indemnify the Executive to the maximum extent
that its officers, directors and employees are entitled to indemnification pursuant to the Company’s certificate of incorporation, bylaws, and any indemnification agreements then in force, subject to applicable law. The Executive shall also be
covered as an insured under any contract of directors and officers liability insurance to the same extent as such contract covers members of the Board. The Executive’s rights under this Section 10 shall survive any termination or
expiration of this Agreement and any termination of the Executive’s employment for all periods thereafter during which the Executive may be subject to liability for any acts or omissions occurring during his employment or service as a member of
the Board that is otherwise subject to indemnification and coverage under directors and officers liability insurance. 
 11. Professional
Fees Incurred in Negotiating the Agreement. The Company shall pay or the Executive shall be reimbursed for the Executive’s reasonable professional fees and costs incurred in connection with this Agreement up to a maximum of $35,000. Any
payment required under this Section 11 shall be made within sixty (60) days following the Effective Date. 
 12. Notices.
All notices, demands, requests, or other communications which may be or are required to be given or made by any party to any other party pursuant to this Agreement shall be in writing and shall be hand delivered, mailed by first-class registered or
certified mail, return receipt requested, postage prepaid, delivered by overnight air courier, addressed as follows: 
  

	 	(i)	 If to the Company: 

Laboratory Corporation of America Holdings 

358 South Main Street 

Burlington, North Carolina 27215 

Attention: Sandra van der Vaart, 

Senior Vice President, Global General Counsel 

and 

Hogan Lovells US LLP 

100 International Drive, Suite 2000 

Baltimore, Maryland 21202 

Attention: Michael Silver 
  

	 	(ii)	 If to the Executive: at the last address shown on the payroll records of the Company 

Each party may designate by notice in writing a new address to which any notice, demand, request or communication may thereafter be so given,
served or sent. Each notice, demand, request, or communication that shall be given or made in the manner described above shall be deemed sufficiently given or made for all purposes at such time as it is delivered to the addressee (with the return
receipt, the delivery receipt, confirmation of facsimile transmission or the affidavit of messenger being deemed conclusive but not exclusive evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation. 

  
 13 

 Execution Version 

 

 13. Severability. The invalidity or unenforceability of any one or more provisions of
this Agreement shall not affect the validity or enforceability of the other provisions of this Agreement, which shall remain in full force and effect. 

14. Effect on Other Agreements; Inconsistency. This Agreement (including the Exhibits hereto) and all other agreements identified
hereunder constitute the entire agreement between the parties respecting the employment of the Executive and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to
such subject matter. In the event of any inconsistency between this Agreement (and Exhibits) and any other plan, program, practice or agreement of the Company in which the Executive is a participant or a party, whether applicable on the Effective
Date or at any time thereafter, this Agreement (and Exhibits) shall control unless, with the Executive’s prior written consent, such other plan, program or practice, or in such agreement with the Executive, specifically refers to this Agreement
(or Exhibits) as not so controlling. 
 15. Assignment. The rights and obligations of the parties to this Agreement shall not be
assignable or delegable, except that (i) in the event of the Executive’s death, the personal representative or legatees or distributees of the Executive’s estate, as the case may be, shall have the right to receive any amount owing
and unpaid to the Executive hereunder, and (ii) the rights and obligations of the Company hereunder shall be assignable and may be assumed by a successor entity in connection with (a) any subsequent merger, consolidation, sale of all or
substantially all of the assets or equity interests of the Company or similar transaction involving the Company or a successor entity or (b) the formation of a holding company or similar corporate reorganization approved by the Board. If the
Company’s rights and obligations are assigned or assumed as provided in the preceding sentence, the term “Company” as used herein shall refer to such successor entity. 

16. Binding Effect. Subject to any provisions hereof restricting assignment, this Agreement shall be binding upon the parties hereto
and shall inure to the benefit of the parties and their respective heirs, devisees, executors, administrators, legal representatives and permitted successors and assigns. 

17. Amendment; Waiver. This Agreement shall not be amended, altered or modified except by an instrument in writing duly executed by the
party against whom enforcement is sought. Neither the waiver by either of the parties hereto of a breach of or a default under any of the provisions of this Agreement, nor the failure of either of the parties, on one or more occasions, to enforce
any of the provisions of this Agreement or to exercise any right or privilege hereunder, shall thereafter be construed as a waiver of any subsequent breach or default of a similar nature, or as a waiver of any such provisions, rights or privileges
hereunder. 
 18. Headings. Section and subsection headings contained in this Agreement are inserted for convenience of reference
only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof. 

  
 14 

 Execution Version 

 

 19. Governing Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be
construed in accordance with the laws of Delaware without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement shall be brought only in a state or federal court located in the state of
Delaware. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue. 

20. Entire Agreement. This Agreement constitutes the entire agreement between the parties respecting the employment of the Executive,
there being no representations, warranties or commitments except as set forth herein. 
 21. Counterparts. This Agreement may be
executed in two counterparts, each of which shall be an original and all of which shall be deemed to constitute one and the same instrument. 

22. Withholding. The Company may withhold from any benefit payment or any other payment or amount under this Agreement all federal,
state, city or other taxes as shall be required pursuant to any law or governmental regulation or ruling. 
 23. Representations of the
Executive. The Executive represents and warrants to the Company that (i) the Executive has furnished to the Company all agreements respecting any post-employment restrictions applicable to the Executive with his immediately preceding
employer; and (ii) there are no other agreements to which the Executive is a party that conflict with the Executive’s acceptance of employment with the Company or would be violated or breached by Executive’s acceptance of employment
with the Company, including any non-solicitation, non-competition or other similar covenant or agreement. The Executive agrees that the Executive will perform his duties
to the Company in a manner that complies with all such agreements. 

  
 15 

 Execution Version 

 

 IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Agreement, or have caused this
Agreement to be duly executed and delivered on their behalf. 
  

	
	LABORATORY CORPORATION OF AMERICA HOLDINGS
	
	/s/ Glenn A. Eisenberg
	Name: Glenn A. Eisenberg
	Title: Executive Vice President, Chief Financial Officer
	
	EXECUTIVE
	
	/s/ Adam H. Schechter
	Adam H. Schechter

  

 Execution Version 

 

 EXHIBIT A-1 

Option Agreement 

  
 A-1 

 Form for AS Sign-On Option Grants Only 

LABORATORY CORPORATION OF AMERICA HOLDINGS 

2016 OMNIBUS INCENTIVE PLAN NON-QUALIFIED OPTION AGREEMENT 

Laboratory Corporation of America Holdings, a Delaware corporation (the “Company”), hereby grants an option to purchase shares of its common stock,
par value $0.10 per share (the “Option”), to the Optionee named below, subject to the vesting and other conditions set forth below. Additional terms and conditions of the grant are set forth in this cover sheet and in the attachment
(together, the “Agreement”), and in the Company’s 2016 Omnibus Incentive Plan (as amended from time to time, the “Plan”). 
 Grant
Date:                 , 2019 
 Name of
Optionee: Adam Schechter 
 Optionee’s Social Security Number:
                -                -      
           
 Number of shares of Stock Covered by Option:
                         

Option Price per share of Stock:
$                .         [(At least 100% of Fair Market Value)]1 
 Vesting Schedule: 
  

	 	•	 	 The Option will vest as follows: 1/3rd of the shares of Stock covered by the Option will vest on
                    , 2020; 1/3rd of the shares of Stock covered by the Option will vest on
                    , 2021; and 1/3rd of the shares of Stock vest on
                    , 2022 (each, a “Vesting Date”),2 provided Optionee has not
had a Separation from Service (as defined below) prior to each such Vesting Date, except as provided in this Agreement below. The number of vested shares subject to the Option on each Vesting Date will be rounded to the nearest whole number, and
Optionee cannot vest in more than the number of shares of Stock covered by the Option. 

 The Option is subject to all of the terms
and conditions described in this Agreement and in the Plan, a copy of which is also attached. You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in the event any provision of this cover sheet or Agreement
should appear inconsistent. 
  

									
	Optionee:	  	      

(Signature)
	  	Date:	  	  
	  	
	Company:	  	      

(Signature)
	  	Date:	  	
                , 2019
	  	
	Title:	  	      
	  		  		  	

  

	1 	 For premium priced options, will be 115% of Fair Market Value. 

	2 	 These dates will be on the first through third anniversaries of the Effective Date of the Employment Agreement.

  

 Attachment 

This is not a stock certificate or a negotiable instrument. 

  
 2 

 LABORATORY CORPORATION OF AMERICA HOLDINGS 

2016 OMNIBUS INCENTIVE PLAN 

NON-QUALIFIED OPTION AGREEMENT 

 

			
	Non-Qualified Stock Option	  	This Agreement evidences an award of an option exercisable for that number of shares of Stock set forth on the cover sheet and subject to the vesting and other conditions described below, in the Plan and on the cover sheet (the
“Option”). The Option is not intended to be an incentive stock option under Section 422 of the Code and will be interpreted accordingly.
	  
 Transfer of Option
	  	  
 During your lifetime, only you (or, in the event of your legal
incapacity or incompetency or your death, your guardian or legal representative) may exercise the Option. The Option may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of, whether by operation of law or otherwise,
nor may the Option be made subject to execution, attachment or similar process.
  
 If
you attempt to do any of these things, this Option will immediately become forfeited.

	  
 Vesting Schedule
	  	  
 Your Option shall vest in accordance with the vesting schedule
shown on the cover sheet so long as you have not had a Separation from Service prior to the Vesting Dates set forth on the cover sheet except as provided below. Your Option is exercisable only as to its vested portion.

 
 No additional shares of Stock subject to this Option will vest after your Separation
from Service for any reason except as set forth in this Agreement.

	  
 Death, Disability, Separation

from Service for Good Reason,
 or
Separation from Service
 Without Cause
	  	  
 Notwithstanding the vesting schedule set forth above, if you have a
Separation from Service as a result of your (1) death, (2) Disability, (3) a Separation from Service for Good Reason, or (4) a Separation from Service without Cause, 100% of the shares of Stock subject to the Option will vest on
the date of your Separation from Service. For purposes of your Option, “Disability,” “Good Reason” and “Cause” shall have the meaning given such terms in the Executive Employment Agreement entered into as of
                , 2019 by and among you and the Company.

	  
 Forfeiture of Unvested
Option
	  	  
 Unless your Separation from Service triggers accelerated vesting or
other treatment of your Option pursuant to the terms of this

  
 3 

			
		  	Agreement, the Plan, or any other written agreement between the Company or an Affiliate and you, you will automatically forfeit to the Company the unvested portion of the Option as of your Separation from Service.
	  
 Term
	  	  
 Your option will expire in any event at the close of business at
Company headquarters on the day before the tenth anniversary of the Grant Date, as shown on the cover sheet. Your option will expire earlier if you have a Separation from Service, as described below.

	  

Expiration of Vested Options

after Separation from Service
	  	  
 If you have a Separation from Service for any reason other than
death, Disability, Retirement, or in connection with a termination without Cause or for Good Reason within 24 months after a Change in Control, or unless you die within 90 days after your Separation from Service, then the vested portion of your
Option will expire at the close of business at Company headquarters on the 90th day after your Separation from Service, unless earlier terminated in accordance with its terms. Exercise of your Option during that
90-day period is subject to the restrictions on sales of securities imposed by the LabCorp Insider Trading Policy including, without limitation, any applicable mandatory
“black-out periods.”
  
 If you have a
Separation from Service because of your death, Disability, or Retirement, or in connection with a Separation from Service without Cause or for Good Reason within 24 months after a Change in Control, or you die within 90 days after your Separation
from Service, then the vested portion of your Option will expire at the close of business at Company headquarters on the date 12 months after your Separation from Service, unless earlier terminated in accordance with its terms. During that 12-month period, your estate or heirs may exercise your Option, subject to the restrictions on sales of securities imposed by the LabCorp Insider Trading Policy, including, without limitation, any applicable
mandatory “black-out periods.”
  

“Retirement” means that you have attained age 55 and the sum of your age and aggregate full years of Service as an employee or member of the Board of
Directors equals or exceeds 70. For purposes of determining eligibility for Retirement, Service shall include the time in which you are a member of the Board of Directors or are employed by the Company and/or an Affiliate of the Company, but only
while the Affiliate is owned, controlled, or under common control by or with the Company. In the event of a Separation from Service without Cause or due to Good Reason at

  
 4 

			
		  	any time in which you satisfy the requirements for a Retirement, such Separation from Service shall be deemed a Retirement solely for purposes of determining the expiration date of your vested Options hereunder.
	  
 Forfeiture of
Rights
	  	  
 If you should take actions in violation or breach of or in conflict
with any (a) employment agreement, (b) non-competition agreement, (c) agreement prohibiting solicitation of employees or clients of the Company or any Affiliate, (d) confidentiality
obligation with respect to the Company or any Affiliate, (e) Company policy or procedure, (f) other agreement, or (g) if you incur a Separation from Service for Cause, the Company has the right to cause an immediate forfeiture of
(i) your rights to your Option, and (ii) with respect to the period commencing thirty-six (36) months prior to your Separation from Service and ending
thirty-six (36) months following such Separation from Service (A) a forfeiture of any gain recognized by you upon the sale of any shares of Stock received as a result of the vesting and exercise of
your Option, and (B) a forfeiture of any vested shares of Stock held by you as a result of the vesting and exercise of your Option. For the avoidance of doubt, the Confidentiality
Agreement/Non-Competition/ Non-Solicitation Agreement set forth in Exhibit A is covered by this provision.

	  
 Leaves of
Absence
	  	  
 For purposes of this Agreement, you do not have a Separation from
Service when you go on a bona fide employee leave of absence that was approved by your employer in writing, if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law.
However, you will be treated as having a Separation from Service 90 days after you went on employee leave, unless your right to return to active work is guaranteed by law or by a contract. You have a Separation from Service in any event when the
approved leave ends unless you immediately return to active employee work.
  
 Your
employer determines, in its sole discretion, which leaves count for this purpose, and when you have a Separation from Service for all purposes under the Plan. Notwithstanding the foregoing, the Company may determine, in its discretion, that a leave
counts for this purpose even if your employer does not agree.

	  
 Notice of
Exercise
	  	  
 The Option may be exercised, in whole or in part, to purchase a
whole number of vested shares of Stock of not less than 100 shares, unless the number of vested shares of Stock purchased is the total number available for purchase under the Option, by following the procedures set forth in the Plan and in this
Agreement.

  
 5 

			
		  	  
 When you wish to exercise this Option, you must exercise in a
manner required or permitted by the Company. Fractional share interests shall be disregarded except that they may be accumulated.
  

If your estate or heirs wishes to exercise this Option after your death, that person must prove to the Company’s satisfaction that he or she is entitled
to do so.

	  
 Form of
Payment
	  	  
 When you exercise your Option, you must include payment of the
option price indicated on the cover sheet for the shares of Stock you are purchasing. Payment may be made in one (or a combination) of the following forms:
  

•  Cash, your personal check, a cashier’s check, a money order or another cash equivalent
acceptable to the Company.
  

•  Shares of Stock which are owned by you and which are surrendered to the Company. The Fair Market
Value of the shares of Stock as of the effective date of the option exercise will be applied to the option price.
  

•  By delivery (on a form prescribed by the Company) of an irrevocable direction to a licensed
securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of the sale proceeds to the Company in payment of the aggregate option price.
  

•  By directing the Company to withhold shares of Stock issuable on exercise of this Option in
payment of the aggregate option price.

	  
 Issuance
	  	  
 The issuance of the shares of Stock upon exercise of this Option
shall be evidenced in such a manner as the Company, in its discretion, will deem appropriate, including, without limitation, book-entry, direct registration or issuance of one or more Stock certificates.

	  
 Withholding
Taxes
	  	  
 You agree, as a condition of this grant, that you will make
acceptable arrangements to pay any withholding or other taxes that may be due as a result of the Option exercise, issuance or sale of shares of Stock acquired under this Option. In the event that the Company or any Affiliate determines that any
federal, state, local or foreign tax or withholding payment is required relating to the

  
 6 

			
		  	 exercise of this Option, issuance or sale of Stock acquired from this Option, the Company or any Affiliate shall have the right to require
such payments from you, or withhold such amounts from other payments due to you from the Company or any Affiliate.
  

To satisfy this withholding obligation, the Company may provide you with the opportunity to (i) have the Company withhold shares of Stock otherwise
issuable to you, (ii) deliver (on a form prescribed by the Company) an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all or part of the sale proceeds to the Company in
payment of the withholding taxes, or (iii) deliver to the Company shares of Stock already owned by you. If the Company provides you with the foregoing opportunity and you fail to make an election to use any of the preceding methods, the Company
may determine what method to use, including by withholding shares of Stock otherwise issuable to you. The shares of Stock so delivered or withheld must have an aggregate Fair Market Value equal to the withholding obligation and may not be subject to
any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.

	  
 Retention
Rights
	  	  
 This Agreement and this Option do not give you the right to be
retained by the Company or any Affiliate in any capacity. The Company or any Affiliate reserves the right to terminate your Service at any time and for any reason.

	  
 Stockholder
Rights
	  	  
 You, or your estate or heirs, have no rights as a stockholder of
the Company until the shares of Stock have been issued upon exercise of your Option and either a certificate evidencing your shares of Stock have been issued or an appropriate entry has been made on the Company’s books. No adjustments are made
for dividends, distributions or other rights if the applicable record date occurs before your certificate is issued (or an appropriate book entry is made), except as described in the Plan.

	  
 Insider Trading
Policy
	  	  
 You acknowledge receipt of the Company’s Insider Trading
Policy (the “Policy”), attached hereto as Exhibit B. You agree to comply fully with the standards contained in the Policy (and related policies and procedures adopted by the company). You further understand that compliance with
these standards, policies, and procedures is a condition of continued employment or association with the Company or any of its subsidiaries and that the Policy is only a statement of principles for individual and business conduct and does not, in
any way, constitute an employment contract, an assurance of continued employment, or employment other than at-will. By acceptance of the Option granted hereunder, you certify to your understanding of and
intent to comply with the Policy.

  
 7 

			
	Confidentiality Agreement/Non- Competition/Non-Solicitation Agreement	  	In consideration of the award of the Option granted pursuant to this Agreement, you agree to be bound by the obligations in, and covenant to comply with, the Confidentiality
Agreement/Non-Competition/ Non-Solicitation Agreement set forth in Exhibit A, which is attached hereto and made a part hereof, and you further understand
that a failure to comply with the Confidentiality Agreement/Non-Competition/ Non-Solicitation Agreement’s terms and conditions set forth in Exhibit A
may result in consequences as described in Exhibit A.
	  
 Clawback
	  	  
 You acknowledge receipt of the Company’s Incentive
Compensation Recoupment Policy (the “Recoupment Policy”), attached hereto as Exhibit C. You agree that your Incentive Compensation (as defined in the Recoupment Policy), including this Option, is subject to the terms of the
Recoupment Policy.

	  
 Applicable
Law
	  	  
 This Agreement will be interpreted and enforced under the laws of
the State of Delaware, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.

	  
 The Plan
	  	  
 The text of the Plan is incorporated in this Agreement by
reference.
  
 Certain capitalized terms used in this Agreement are defined in the
Plan, and have the meaning set forth in the Plan.
  
 This Agreement and the
Plan constitute the entire understanding between you and the Company regarding this Option. Any prior agreements, commitments or negotiations concerning this grant are superseded; except that any written employment, consulting, confidentiality, non-competition, non-solicitation and/or severance agreement between you and the Company or any Affiliate shall supersede this Agreement with respect to its subject
matter.
  
 If there is any conflict between this Agreement and the Plan, or if there is
any ambiguity in this Agreement, any term which is not defined in this Agreement or any matter as to which this Agreement is silent, in any such case, the Plan shall govern, including, without limitation, the provisions thereof pursuant to which the
Committee has the power, among others, to (i) interpret the Plan, (ii) prescribe, amend and rescind rules and regulations relating to the Plan and (iii) make all other determinations deemed necessary or advisable for the
administration of the Plan.
  

  
 8 

			
		  	Notwithstanding anything in this Agreement to the contrary, in the event any provision of this Agreement would cause the Company to violate Section 8.2(b) or (c) of the Plan, such provision shall not be given
effect.
	  
 Data Privacy
	  	  
 In order to administer the Plan, the Company or any Affiliate may
process personal data about you. Such data includes, but is not limited to, information provided in this Agreement and any changes thereto, other appropriate personal and financial data about you such as your home and business addresses and other
contact information, payroll information and any other information that might be deemed appropriate by the Company and any Affiliate to facilitate the administration of the Plan.

 
 By accepting this grant, you give explicit consent to the Company and any Affiliate to
process any such personal data. You also give explicit consent to the Company and any Affiliate to transfer any such personal data outside the country in which you work or are employed, including, with respect to
non-U.S. resident participants, to the United States, to transferees who shall include the Company, any Affiliate and other persons who are designated by the Company to administer the Plan.

	  
 Notices
	  	  
 Any notices to be given under the terms of this Agreement shall be
in writing and addressed to the Company at 531 South Spring Street, Burlington, North Carolina 27215, Attention: Corporate Secretary and Securities Compliance Officer, and to you at the address in the Company’s books and records, or at such
address as either party may hereafter designate in writing to the other.

	  
 Consent to Electronic
Delivery
	  	  
 The Company may choose to deliver certain statutory materials
relating to the Plan in electronic form. By accepting this grant you agree that the Company may deliver the Plan prospectus and the Company’s annual report to you in an electronic format. If at any time you would prefer to receive paper copies
of these documents, as you are entitled to, the Company would be pleased to provide copies. Please contact the Company’s Securities Compliance Officer at
336-436-5066 to request paper copies of these documents.

	  
 Electronic
Signature
	  	  
 All references to signatures and delivery of documents in this
Agreement can be satisfied by procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents, including this Agreement. Your electronic signature is the same as, and shall
have the same force and effect as, your manual signature. Any such procedures and delivery may be effected by a third party engaged by the Company to provide administrative services related to the
Plan.

  
 9 

			
	 Code Section 409A
	  	It is intended that this Option comply with Section 409A of the Code (“Section 409”) or an exemption to Section 409A. To the extent that the Company determines that you would be subject to the additional
taxes or penalties imposed on certain non-qualified deferred compensation plans pursuant to Section 409A as a result of any provision of this Agreement, such provision shall be deemed amended to the
minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Company.

 By electronically acknowledging this Agreement, you agree to all of the terms and conditions described
above, in the Plan, in the Confidentiality Agreement/Non-Competition/Non-Solicitation Agreement attached hereto as Exhibit A and the Company’s Insider Trading
Policy attached as Exhibit B. 

  
 10 

 Execution Version 

EXHIBIT A-2 

RSU Agreement 

  
 A-2 

 Form of AS Sign-On RSU Grants Only 

LABORATORY CORPORATION OF AMERICA HOLDINGS 

2016 OMNIBUS INCENTIVE PLAN RESTRICTED STOCK UNIT AGREEMENT 

Laboratory Corporation of America Holdings, a Delaware corporation (the “Company”), hereby grants restricted stock units relating to
its shares of common stock, par value $0.10 (the “Restricted Stock Units”) to the Grantee named below, subject to the vesting and other conditions set forth below. Additional terms and conditions of the grant are set forth in this cover
sheet and in the attachment (collectively, the “Agreement”) and in the Company’s 2016 Omnibus Incentive Plan (the “Plan”). Certain capitalized terms used but not defined in this Agreement have the meanings given such terms
in the Plan. 
 Grant Date:
                , 2019  

Name of Grantee: Adam Schechter 

Grantee’s Social Security Number:
                -                -      
           
 Number of Shares of Stock underlying Restricted Stock Units:
                                 

Purchase Price Per Share of Stock:
                         

Vesting Schedule: 
  

	 	•	 	 The Restricted Stock Units will be subject to three twelve-month vesting periods and will be eligible to vest as
follows: one-third of the Restricted Stock Units vest on                 , 2020, an additional one-third of the Restricted Stock Units will vest on                 , 2021 and the remaining
one-third of the Restricted Stock Units will vest on                 , 2022 (each, a “Vesting Date”), provided
Grantee has not had a Separation from Service (as defined below) prior to each such Vesting Date, except as provided in this Agreement below. The number of vested Restricted Stock Units on each Vesting Date will be rounded to the nearest whole
number, and Grantee cannot vest in more than the number of Restricted Stock Units set forth above. 

 This grant of
Restricted Stock Units is subject to all of the terms and conditions described in this Agreement and in the Plan, a copy of which is also attached. You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in
the event any provision of this cover sheet or Agreement should appear inconsistent. 

Grantee:                     
                                         
                                         
                              Date:        
             
         (Signature)

Company:                      
                                         
                                         
                           Date:
                , 2019     

Title:                      
                               

Attachment 

 This is not a stock certificate or a negotiable instrument. 

LABORATORY CORPORATION OF AMERICA HOLDINGS 

2016 OMNIBUS INCENTIVE PLAN 

RESTRICTED STOCK UNIT AGREEMENT 
  

			
	Restricted Stock Units	  	 This Agreement evidences an award of Restricted Stock Units in the number of shares set forth on the cover sheet, and subject to the vesting
and other conditions described below, in the Plan and on the cover sheet (the “Restricted Stock Units”).
  

The Purchase Price for the shares of Stock underlying the Restricted Stock Units is deemed paid by your prior services to the Company.

		
	Transfer of Restricted Stock Units	  	To the extent not yet vested, your Restricted Stock Units may not be sold, transferred, assigned, pledged or otherwise encumbered or disposed of, whether by operation of law or otherwise, nor may your Restricted Stock Units be made
subject to execution, attachment or similar process.
		
	 Vesting Schedule
	  	 Your Restricted Stock Units shall vest in accordance with the vesting schedule shown on the cover sheet so long as you have not had a
Separation from Service prior to the Vesting Dates set forth on the cover sheet except as provided below.
  

No additional Restricted Stock Units will vest after you have had a Separation from Service for any reason except as set forth in this Agreement.

		
	Death, Disability, Separation from Service for Good Reason, or Separation from Service without Cause	  	Notwithstanding the vesting schedule set forth above, if you have a Separation from Service as a result of your (1) death, (2) Disability, (3) a Separation from Service for Good Reason, or (4) a Separation from
Service without Cause, 100% of the Restricted Stock Units will vest on the date of your Separation from Service. For purposes of your Restricted Stock Units, “Disability,” “Good Reason” and “Cause” shall have the
meaning given such terms in the Executive Employment Agreement entered into as of                 , 2019 by and among you and the Company.
		
	Forfeiture of Unvested Restricted Stock Units	  	Unless your Separation from Service triggers accelerated vesting or other treatment of your Restricted Stock Units pursuant to the terms of this Agreement, the Plan, or any other written agreement between the Company or an Affiliate
and you, you will automatically forfeit to the Company all of the Restricted Stock Units that have not yet vested as of your Separation from Service.
		
	Forfeiture of Rights	  	If you should take actions in violation or breach of or in conflict with any (a) employment agreement, (b) non-competition agreement, (c) agreement prohibiting solicitation of
employees or clients of the Company or any Affiliate, (d) confidentiality obligation with respect to the Company or any Affiliate, (e) Company policy or procedure, (f) other agreement, or (g) if you incur a Separation from
Service for Cause, the Company has the right to cause an immediate forfeiture of (i) your rights to any outstanding Restricted Stock Units, and (ii) with respect to the period commencing thirty-six
(36) months prior to your Separation from Service with the Company or any Affiliate and ending thirty-six (36) months following such Separation from Service (A) a forfeiture of any gain
recognized by you upon the sale of any shares of Stock received as a result of the vesting of any Restricted Stock Units, and (B) a forfeiture of any vested shares of

  
 - 2 - 

			
		  	Stock held by you as a result of the vesting of any Restricted Stock Units. For the avoidance of doubt, the Confidentiality
Agreement/Non-Competition/Non-Solicitation Agreement set forth in Exhibit B is covered by this provision.
		
	 Leaves of Absence
	  	 For purposes of this Agreement, you do not have a Separation from Service when you go on a bona fide employee leave of absence that
was approved by your employer in writing, if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. However, your Service will be treated as terminating 90 days after you
went on employee leave, unless your right to return to active work is guaranteed by law or by a contract. You will incur a Separation from Service in any event when the approved leave ends unless you immediately return to active employee work.

 
 Your employer determines, in its sole discretion, which leaves count for this purpose,
and when you have a Separation from Service for all purposes under the Plan. Notwithstanding the foregoing, the Company may determine, in its discretion, that a leave counts for this purpose even if your employer does not agree.

		
	 Issuance
	  	The shares of Stock underlying your vested Restricted Stock Units will be issued as soon as practicable (and not more than thirty (30) days) following the earlier of (i) the date that your Restricted Stock Units vest
pursuant to the vesting schedule, or (ii) the date of your Separation from Service, but in no event later than March 15 of the calendar year that immediately follows the first of such events.
		
	 Withholding Taxes
	  	 You agree, as a condition of this grant, that you will make acceptable arrangements to pay any withholding or other taxes that may be due as
a result of grant or vesting of Restricted Stock Units, the payment of dividends or the issuance of Stock acquired under this grant. In the event that the Company or any Affiliate determines that any federal, state, local or foreign tax or
withholding payment is required relating to the grant or vesting of Restricted Stock Units, the payment of dividends or the issuance of Stock acquired from this grant, the Company or any Affiliate shall have the right to require such payments from
you, or withhold such amounts from other payments due to you from the Company or any Affiliate.
  

To satisfy this withholding obligation, the Company may provide you with the opportunity to have the Company withhold shares of Stock otherwise issuable to you
or by delivering to the Company shares of Stock already owned by you. If the Company provides you with the foregoing opportunity and you fail to make an election to use either of the preceding methods, the Company may determine what method to use,
including by withholding shares of Stock otherwise issuable to you. The shares of Stock so delivered or withheld must have an aggregate Fair Market Value equal to the withholding obligation and may not be subject to any repurchase, forfeiture,
unfulfilled vesting, or other similar requirements.

		
	 Retention Rights
	  	This Agreement and the Restricted Stock Units do not give you the right to be retained by the Company or any Affiliate in any capacity. The Company or any Affiliate reserves the right to terminate your Service at any time and for
any reason.
		
	 Stockholder Rights
	  	You, or your estate or heirs, have no rights as a stockholder of the Company until the Stock has been issued upon vesting of your Restricted Stock Units and either a certificate evidencing your Stock has been issued or an
appropriate entry has been made on the Company’s books.

  
 - 3 - 

			
		  	You will, however, be entitled to receive an amount of cash or shares of Stock (as determined by the Company from time to time) payable at the time the shares underlying your vested Restricted Stock Units are delivered, equal to the
amount or value of the cumulative per-share dividends, if any, paid on shares of Stock equal to the number of Restricted Stock Units in which you vest that were outstanding as of the record date for such
dividend.
		
	Insider Trading Policy	  	You acknowledge receipt of the Company’s Insider Trading Policy (the “Policy”), attached hereto as Exhibit A. You agree to comply fully with the standards contained in the Policy (and related policies and
procedures adopted by the company). You further understand that compliance with these standards, policies, and procedures is a condition of continued employment or association with the Company or any of its subsidiaries and that the Policy is only a
statement of principles for individual and business conduct and does not, in any way, constitute an employment contract, an assurance of continued employment, or employment other than at-will. By acceptance of
the Restricted Stock Units granted hereunder, you certify to your understanding of and intent to comply with the Policy.
		
	Confidentiality Agreement/Non- Competition/Non- Solicitation Agreement	  	In consideration of the award of Restricted Stock Units granted pursuant to this Agreement, you agree to be bound by the obligations in, and covenant to comply with, the Confidentiality Agreement/Non-Competition/Non-Solicitation Agreement set forth in Exhibit B, which is attached hereto and made a part hereof, and you further understand that a failure to comply with the
Confidentiality Agreement/Non-Competition/Non-Solicitation Agreement’s terms and conditions set forth in Exhibit B may result in consequences as
described in Exhibit B.
		
	 Clawback
	  	The Restricted Stock Units are subject to mandatory repayment by you to the Company to the extent you are or in the future become subject to any Company “clawback” or recoupment policy that requires the repayment by you to
the Company of compensation paid by the Company to you in the event that you fail to comply with, or violate, the terms or requirements of such policy.
		
	 Applicable Law
	  	This Agreement will be interpreted and enforced under the laws of the State of Delaware, other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the
substantive law of another jurisdiction.
		
	 The Plan
	  	 The text of the Plan is incorporated in this Agreement by reference.

 
 This Agreement and the Plan constitute the entire understanding between you and the
Company regarding this grant of Restricted Stock Units. Any prior agreements, commitments or negotiations concerning this grant are superseded; except that any written employment, and/or severance agreement between you and the Company or any
Affiliate shall supersede this Agreement with respect to its subject matter.
  
 If
there is any conflict between this Agreement and the Plan, or if there is any ambiguity in this Agreement, any term which is not defined in this Agreement or any matter as to which this Agreement is silent, in any such case, the Plan shall govern,
including, without limitation, the provisions thereof pursuant to which the

  
 - 4 - 

			
		  	Committee has the power, among others, to (i) interpret the Plan, (ii) prescribe, amend and rescind rules and regulations relating to the Plan and (iii) make all other determinations deemed necessary or advisable for
the administration of the Plan.
		
	 Data Privacy
	  	 In order to administer the Plan, the Company or any Affiliate may process personal data about you. Such data includes, but is not limited to,
information provided in this Agreement and any changes thereto, other appropriate personal and financial data about you such as your home and business addresses and other contact information, payroll information and any other information that might
be deemed appropriate by the Company and any Affiliate to facilitate the administration of the Plan.
  

By accepting this grant, you give explicit consent to the Company and any Affiliate to process any such personal data. You also give explicit consent to the
Company and any Affiliate to transfer any such personal data outside the country in which you work or are employed, including, with respect to non-U.S. resident participants, to the United States, to
transferees who shall include the Company, any Affiliate and other persons who are designated by the Company to administer the Plan.

		
	 Notices
	  	Any notices to be given under the terms of this Agreement shall be in writing and addressed to the Company at 531 South Spring Street, Burlington, North Carolina 27215, Attention: Corporate Secretary and Securities
Compliance Officer, and to you at the address in the Company’s books and records, or at such address as either party may hereafter designate in writing to the other.
		
	Consent to Electronic Delivery	  	The Company may choose to deliver certain statutory materials relating to the Plan in electronic form. By accepting this grant you agree that the Company may deliver the Plan prospectus and the Company’s annual report to you in
an electronic format. If at any time you would prefer to receive paper copies of these documents, as you are entitled to, the Company would be pleased to provide copies. Please contact the Company’s Securities Compliance Officer at 336-436-5066 to request paper copies of these documents.
		
	 Electronic Signature
	  	All references to signatures and delivery of documents in this Agreement can be satisfied by procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such
documents, including this Agreement. Your electronic signature is the same as, and shall have the same force and effect as, your manual signature. Any such procedures and delivery may be effected by a third party engaged by the Company to provide
administrative services related to the Plan.
		
	Code Section 409A	  	For purposes of this Agreement, you shall have a “Separation from Service” when the Company reasonably anticipates that your level of Services will permanently decrease to no more than 20 percent of the average level
of Services you have performed over the immediately preceding 36-month period (or such lesser period of your Service with the Company and its Affiliates), which shall be interpreted consistently with the
provisions of Section 409A of the Code and the regulations promulgated thereunder (“Section 409A”). It is intended that the Agreement comply with Section 409A to the extent subject thereto, and, accordingly, to the maximum
extent permitted, the Agreement will be interpreted and administered to be in compliance with Section 409A. To the extent that the Company determines that you would be subject to the additional taxes or penalties imposed on
certain

  
 - 5 - 

			
	
                   
     
	  	nonqualified deferred compensation plans pursuant to Section 409A as a result of any provision of this Agreement, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional
taxes or penalties. The nature of any such amendment shall be determined by the Company. Notwithstanding anything to the contrary in this Agreement or the Plan, to the extent required to avoid accelerated taxation and penalties under
Section 409A, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Agreement during the six-month period immediately following your Separation from Service
will instead be paid on the first payroll date after the six-month anniversary of your Separation from Service (or your death, if earlier). Each installment of Restricted Stock Units that vests under this
Agreement (if there is more than one installment) will be considered one of a series of separate payments for purposes of Section 409A.

 By electronically acknowledging this Agreement, you agree to all of the terms and conditions described
above, in the Plan, in the Company’s Insider Trading Policy attached as Exhibit A and in the Confidentiality Agreement/Non-Competition/Non-Solicitation Agreement
attached hereto as Exhibit B. 

  
 - 6 - 

 Execution Version 

EXHIBIT A-3 

Premium Priced Option Agreement will be the same as Exhibit A-1 but with an exercise price that will be
115% of Fair Market Value. 

 Execution Version 

EXHIBIT B 
 Special
Severance Agreement 
  
  
  

B-1 

 Exhibit B 
  

 
 [Date], 20[    ] 

Adam H. Schechter 
 Address 

Address 
 Re: Employment Separation Agreement and General
Release 
 Dear Adam, 
 On behalf of Laboratory
Corporation of America Holdings (the “Company”), I write to offer you (the “Employee”) the following Employment Separation Agreement and General Release (the “Agreement”). 

1.0 Separation of Employment 
 1.1 Effective
                    , 20     (the “Separation Date”), Employee’s employment with the Company
will terminate; he shall perform no further services for the Company and his status as an employee and Officer of the Company shall cease on that date. Employee also hereby resigns from all positions that Employee holds as an officer or member of
the Board of Directors of the Company (or a committee thereof) and as an officer or member of the board of directors (or a committee thereof) of any Company subsidiaries or affiliates. Employee and the Company further agree that the relationship
created by this Agreement is purely contractual and that no employer-employee relationship is intended, nor shall such be inferred from the performance of obligations under this Agreement. Employee further agrees that any payments and/or benefits
payable pursuant to this Agreement are contingent upon Employee’s execution and fulfillment of his obligations under this Agreement. 
 2.0
Separation Pay 
 2.1 In consideration for the covenants, promises and agreements herein and in particular Employee’s release of
claims as well as covenants not to solicit, not to compete and not to disclose confidential information, the Company will pay Employee a severance in the total amount of $         less applicable
taxes and withholdings, which represents [two][three] times the sum of Employee’s Base Salary of $         plus $        , representing the
Employee’s Average Incentive Bonus as defined under the terms of the Executive Employment Agreement entered into as of                 , 2019 between
Employee and the Company (the “Employment Agreement”). The severance shall be paid in two installments, with the first installment of $        , less taxes and withholding, made payable
within 30 days following the date of this Agreement and the second installment of $        , less taxes and withholding, made payable 30 days following the
one-year anniversary of date of this Agreement. 

  
 1 

 2.2 In addition to the compensation payable under Section 2.1 of the Agreement, Employee shall
be eligible to receive a prorated amount equal to the earned portion of the Management Incentive Bonus (“MIB”) that he would have received under the LabCorp Management Incentive Bonus Plan had he remained eligible for said bonus.
The additional payment shall be made at the time that bonuses are normally paid under the MIB Plan but no later than March 15, 2019. 
 3.0
Benefits 
 3.1 Employee, his spouse, and his other dependent(s) may be eligible to elect continued health care coverage under the welfare
plans sponsored by the Company, as provided in the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), which provides generally that certain employees and their dependents may
elect to continue coverage under employer-sponsored group health plans for a period of at least eighteen (18) months under certain conditions, including payment by Employee of the “Applicable Premium” as defined in
Section 604 of the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq. (“ERISA”). In the event Employee elects continuation of coverage under COBRA for himself and his spouse
and dependents, the Company will reimburse Employee for the Applicable Premium for such coverage (medical, dental, optical and prescription coverage for Employee, his spouse and dependents) for 18 months, thereof, to the extent actually paid
by the Employee. 
 3.2 Employee shall be eligible for such benefits under the Company’s existing qualified plans as are provided under the
circumstances (taking into account separation of employment as of the Separation Date) pursuant to the terms of the plan documents governing each of these plans. Except as otherwise provided herein or in the terms of any documents governing any
employee benefit plan maintained by the Company, Employee will cease to be a participant in and will no longer have any coverage or entitlement to benefits, accruals, or contributions under any of the Company’s employee benefit plans effective
upon the separation of his employment. Employee agrees that the payments made to him by the Company pursuant to this Agreement do not constitute compensation for purposes of calculating the amount of benefits Employee may be entitled to under the
terms of any pension plan or for the purposes of accruing any benefit, receiving any allocation of any contribution, or having the right to defer any income in any profit-sharing or other employee pension benefit plan, including any cash or deferred
arrangement. 
 3.3 Employee also understands that his grants of performance shares, restricted stock units and stock options are governed by the
terms and conditions of the Company’s 2016 Omnibus Incentive Plan and applicable grant agreements and that this Agreement does not in any modify, change, alter or amend the terms and conditions of those grants. 

3.4 Employee shall submit for reimbursement any and all unpaid business expenses to the Company within 30 days of the Separation Date. The Company will
reimburse said expenses provided that they are consistent with, and reimbursable under, the Company’s travel and entertainment expense policy. The Company will not be responsible for reimbursing the Employee for any business expenses incurred
during employment but submitted after said 30-day period. 

  
 - 2 - 

 3.5 This Agreement shall never be construed as an admission by the Company of any liability,
wrongdoing or responsibility on its part or on the part of any other person or entity described in Section 4.1 of this Agreement. The Company expressly denies any such liability, wrongdoing or responsibility. 

4.0 Release 
 4.1 Employee, on behalf of
himself and his heirs, assigns, transferees and representatives, hereby releases and forever discharges the Company, and its predecessors, successors, parents, subsidiaries, affiliates, assigns, representatives and agents, as well as all of their
present and former directors, officers, employees, agents, shareholders, representatives, attorneys and insurers (collectively, the “Releasees”), from any and all claims, causes of actions, demands, damages or liability of any
nature whatsoever, known or unknown, which Employee has or may have which arise out of his employment or cessation of employment with the Company, or which concern or relate in any way to any acts or omissions done or occurring prior to and
including the date of this Agreement, including, but not limited to, claims arising under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq.; the Equal Pay Act , 29 U.S.C. § 206(a) and interpretive regulations; Title
VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e et seq.; 42 U.S.C. § 1981 et seq.; the Americans with Disabilities Act, 42 U.S.C. § 12101
et seq.; the Family and Medical Leave Act, 29 U.S.C. § 2601 et seq.; the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001
et seq.; the Worker Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101 et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. §§ 621
et seq.; any and all claims for wrongful termination and/or retaliation; claims for breach of contract, express or implied; claims for breach of the covenant of good faith and fair dealing; claims for compensation,
including but not limited to wages, bonuses, or commissions except as otherwise contained herein; claims for benefits or fringe benefits, including, but not limited to, claims for severance pay and/or termination pay, except as otherwise contained
herein; claims for, or relating to stock or stock options (except that nothing in this Agreement shall prohibit Employee from exercising any vested stock options or affect Employee’s claims to vested benefits in the Company’s
Employees’ Retirement Savings Plan, Deferred Compensation Plan, Employee Stock Purchase Plan, or Cash Balance Retirement Plan, in accordance with the terms of the applicable stock option agreement(s) and applicable plan documents); claims for
unaccrued vacation pay; claims arising in tort, including, but not limited to, claims for invasion of privacy, intentional infliction of emotional distress and defamation; claims for quantum meruit and/or unjust enrichment; and any and all other
claims arising under any other federal, state, local or foreign laws, as well as any and all other common law legal or equitable claims. 
 4.2
Employee represents that he has not initiated any action or charge against any of the Releasees with any Federal, State or local court or administrative agency. If such an action or charge has been filed by Employee, or on Employee’s behalf, he
will use his best efforts to cause it immediately to be withdrawn and dismissed with prejudice. Failure to cause the withdrawal and dismissal with prejudice of any action or charge shall render this Agreement null and void, and any consideration
paid hereunder shall be repaid immediately by the Employee upon receipt of such notice. 

  
 - 3 - 

 4.3 Employee further agrees that he will not institute any lawsuits, either individually or as a
class representative or member, against any of the Releasees as to any matter based upon, arising from or relating to his employment relationship with the Company, from the beginning of time to the date of execution of this Agreement. Employee
knowingly and intentionally waives any rights to any additional recovery that might be sought on his behalf by any other person, entity, local, state or federal government or agency thereof, including specifically and without limitation, the North
Carolina Department of Labor, the United States Department of Labor, or the Equal Employment Opportunity Commission. 
 4.4 Employee is hereby
advised that: (i) he should consult with an attorney (at his own expense) prior to executing this Agreement; (ii) he is waiving, among other things, any age discrimination claims under the Age Discrimination in Employment Act, provided,
however, he is not waiving any claims that may arise after the date this Agreement is executed; (iii) he has twenty-one (21) days within which to consider the execution of this Agreement, before
signing it; and (iv) for a period of seven (7) days following the execution of this Agreement, he may revoke this Agreement by delivering written notice (by the close of business on the seventh day) to the Company in accordance with
Section 10.7 herein. 
 4.5 Notwithstanding the provisions of Section 4.1, said release does not apply to any and all statutory or other
claims (a) that are prohibited from waiver by Federal, State or local law, (b) for enforcement of any covenant under this Agreement, (c) for any claim for any vested, accrued benefits to which Employee is (or becomes) otherwise
entitled pursuant to the terms and conditions of any of the benefit plans in which Employee participated prior to the Separation Date (but not any incentive or severance plans excepted as provided in Section 2 or 3, above): (d) for unemployment
insurance benefits; or (e) for indemnification under applicable statutory, or common law or any insurance, charter, or bylaws of the Company or any of its affiliates, including under the Employment Agreement, it being understood and agreed that
this Agreement does not create or expand upon any such rights, (if any) to indemnification. 
 4.6 It is specifically understood and agreed that the
payments set forth above in Sections 2.0 and 3.0 (including the sub-parts thereto), and each of them, are good and adequate consideration to support the waivers, releases and obligations contained herein,
including, without limitation, Sections 5.0, 6.0, 7.0, and 8.0, and their respective sub-parts, and that all of the payments set forth Sections 2.0 and 3.0 (including the
sub-parts thereto) are of value in addition to anything to which Employee already was entitled prior to the execution of this Agreement. 

5.0 Confidentiality 
 5.1 The parties
acknowledge that during the course of Employee’s employment with the Company, he was given access, on a confidential basis, to Confidential Information which the Company has for years collected, developed, and/or discovered through a
significant amount of effort and at great expense. The parties acknowledge that the Confidential Information of the Company is not generally known or easily obtained in the Company’s trade, industry, business, or otherwise and that maintaining
the secrecy of the Confidential Information is extremely important to the Company’s ability to compete with its competitors. 
 5.2 Employee
agrees that for a period of seven (7) years from the date of this Agreement, Employee shall not, without the prior written consent of the Company, divulge to any third party 

  
 - 4 - 

 
or use for his own benefit, or for any purpose other than the exclusive benefit of the Company, any Confidential Information of the Company; provided however, that nothing herein contained shall
restrict Employee’s ability to make such disclosures as such disclosures may be required by law; and further providing that nothing herein contained shall restrict Employee from divulging information that is readily available to the general
public as long as such information did not become available to the general public as a direct or indirect result of Employee’s breach of this section of this Agreement. 

5.3 The term “Confidential Information” in this Agreement shall mean information that is not readily and easily available to the
public or to persons in the same business, trade, or industry of the Company, and that concerns the Company’s prices, pricing methods, costs, profits, profit margins, suppliers, methods, procedures, processes or combinations or applications
thereof developed in, by, or for the Company’s business, research and development projects, data, business strategies, marketing strategies, sales techniques, customer lists, customer information, or any other information concerning the Company
or its business that is not readily and easily available to the public or to those persons in the same business, trade, or industry of the Company. The term “customer information” as used in this Agreement shall mean information that is
not readily and easily available to the public or to those persons in the same business, trade, or industry and that concerns the course of dealing between the Company and its customers or potential customers solicited by the Company, customer
preferences, particular contracts or locations of customers, negotiations with customers, and any other information concerning customers obtained by the Company that is not readily and easily available to the public or to those in the business,
trade, or industry of the Company. 
 5.4 Employee acknowledges that all information, the disclosure of which is prohibited hereby, is of a
confidential and proprietary character and of great value to the Company, and upon the execution of this Agreement (or as soon thereafter as is reasonably practicable), Employee shall forthwith deliver up to the Company all records, memoranda, data,
and documents of any description that refer to or relate in any way to such information and shall return to the Company any of its equipment and property which may then be in Employee’s possession or under Employee’s personal control. 

5.5 Employee hereby agrees that any failure to fully and completely comply with this provision shall entitle the Company to seek damages for a
demonstrated breach of the confidentiality provision, to include recoupment of monies paid hereunder. 
 5.6 Notwithstanding the restrictions set
forth in Section 5.0 and its subparts, Employee may disclose information protected under Section 5.0 and its subparts if and only if such is (i) lawfully required by any government agency; (ii) otherwise required to be disclosed
by law (including legally required financial reporting) and/or by court order; (iii) necessary in any legal proceeding in order to enforce any provision of this Agreement or (iv) made to the Securities Exchange Commission regarding
security law issues. Employee further agrees that he will notify the Company in writing within five (5) calendar days of the receipt of any subpoena, court order, administrative order or other legal process requiring disclosure of information
subject to Section 5.0 and sub-parts thereto. Employee may also disclose the contents of Section 6.0 and its sub-parts and only those contents to any
subsequent and/or prospective employer. 

  
 - 5 - 

 6.0
Non-Solicitation/Non-Compete 
 6.1 For a period of
twenty-four (24) months following the separation of Employee’s employment for any reason (the “Restriction Period”), Employee shall not become an owner in, shareholder with more than a 2% equity interest in, investor in,
or an employee, contractor, consultant, advisor, representative, officer, director, or agent of, a trade or business that offers products and services that are the same or substantially similar to the products and services provided by the Company in
any geographic market in which the Company conducts business (“Competitor”); provided, however, that the duties and responsibilities of said employment or engagement as an owner in, shareholder with more than 2% equity
interest in, investor in, contractor, consultant, advisor, representative, officer, director or agent are (i) the same, similar, or substantially related to your current duties and responsibilities or duties or responsibilities performed by
Employee while employed by the Company at any time during a six (6) month period prior to Employee’s separation of employment and (ii) related to or concerning the Competitor’s business activities in the Restricted Territory. The
parties agree and affirm that their intention with respect to Paragraph 6.1 is that Employee’s activities shall be limited only for the twenty-four (24) month period after the separation of employment for any reason. The provisions calling
for a “look back” of six (6) calendar months prior to the separation of employment are intended solely as a means of identifying the duties and responsibilities that will define the restricted activities covered by Paragraph 6.1
and are not intended to nor shall they, under any circumstances, be construed to define the length or term of any such restriction. For purposes of Paragraph 6.1, the term “Restricted Territory” means the geographic area that is part
of your current duties and responsibilities or the geographic area that was part of your duties and responsibilities within a period of six (6) month period prior to the date of your termination of employment. If a court of competent
jurisdiction determines that the Restricted Territory as defined herein is too restrictive, then the parties agree that said court may reduce or limit the Restricted Territory to the largest acceptable area so as to enable the enforcement of
Paragraph 6.1. 
 6.2 For a period of twenty-four (24) months following the Separation Date, Employee will not, either directly or indirectly,
or on behalf of any person, business, partnership, or other entity, call upon, contact, or solicit any customer or customer prospect of the Company, or any representative of the same, with a view toward the sale or providing of any service or
product competitive with the Company’s Business; provided, however, the restrictions set forth in this Section shall apply only to customers or prospects of the Company, or representatives of the same, with which during the past 12 month period
the Employee had contact or about whom Employee received Confidential Information as part of his duties and responsibilities while employed with the Company within the 12 month period prior to his separation of employment. The parties agree and
affirm that their intention with respect to Section 6.2 of this Agreement is that Employee’s activities be limited only for a twenty-four (24) month period after the Separation Date for any reason. The provisions calling for a
“look back” of 12 calendar months prior to the Separation Date are intended solely as a means of identifying the clients to which such restrictions apply and are not intended to nor shall they, under any circumstances, be construed to
define the length or term of any such restriction. 
 6.3 For a period of twenty-four (24) months following the Separation Date, Employee shall
not directly or indirectly through a subordinate, co-worker, peer, or any other person or entity contact, solicit, encourage or induce any officer, director or employee of the Company to work for or provide
services to Employee and/or any other person or entity. 

  
 - 6 - 

 6.4 Employee acknowledges and agrees that the foregoing restrictions are necessary for the reasonable
and proper protection of the Company; are reasonable in respect to subject matter, length of time, geographic scope, customer scope, and scope of activity to be restrained; and are not unduly harsh and oppressive so as to deprive Employee of his
livelihood or to unduly restrict Employee’s opportunity to earn a living after separation of Employee’s employment with the Company. Employee further acknowledges and agrees that if any restrictions set forth in this Section are found by
any court of competent jurisdiction to be unenforceable or otherwise against public policy, the restriction shall be interpreted to extend only over the maximum period of time or other restriction as to which it would otherwise be enforceable. 

6.5 Employee acknowledges and agrees that because the violation, breach, or threatened breach of this Section and its
sub-parts would result in immediate and irreparable injury to the Company, the Company shall be entitled, without limitation of remedy, to (a) temporary and permanent injunctive and other equitable relief
restraining Employee from activities constituting a violation, breach or threatened breach of this Section and its sub-parts to the fullest extent allowed by law; (b) all such other remedies available at
law or in equity, including without limitation the recovery of damages, reasonable attorneys’ fees and costs; and (c) withhold any further rights, payments or benefits under this Agreement which become due and owing after the occurrence of
said violation, breach, or threatened breach, including, without limitation, any rights or claims under Sections 2.0 and 3.0 and the sub-parts thereto. 

7.0 Return of Company Property 
 7.1
Employee agrees that within 10 days after execution of this Agreement, he will return any and all Company documents and any copies thereof, in any form whatsoever, including computer records or files, containing secret, confidential and/or
proprietary information or ideas, and any other Company property (including, but not limited to, any cell phones, pagers and/or computer equipment) in Employee’s possession or control, except that Employee may keep possession, custody
and control of his currently issued Company laptop. 
 8.0 Duty to Cooperate and of Loyalty/Nondisparagement 

8.1 Without limitation as to time, Employee agrees to cooperate and make all reasonable and lawful efforts to assist the Company in addressing any
issues which may arise concerning any matter with which he was involved during his employment with the Company, including, but not limited to cooperating in any litigation arising therefrom. The Company shall reimburse Employee at a fair and
reasonable rate for services provided by the Employee to the Company in connection with services provided under this provision. 
 8.2 Employee will
not (except as required by law) communicate to anyone, whether by word or deed, whether directly or indirectly through an intermediary, and whether expressly or by suggestion or innuendo, any statement, whether characterized as one of fact or
opinion, that is intended to cause or that reasonably would be expected to cause any person to whom it is communicated to have (1) a lowered opinion of the Company or any affiliates, including a

  
 - 7 - 

 
lowered opinion of any products manufactured, sold or used by, or services offered or rendered by the Company or its affiliates; and (2) a lowered opinion of the Company’s
creditworthiness or business prospects. Employee’s obligations in this regard extends to the reputation of the Company and any of its officers and directors. 

9.0 Section 409A of the Code  

9.1 Notwithstanding any provisions of this Agreement to the contrary, if the Employee is a “specified employee” (within the meaning of
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and determined pursuant to procedures adopted by the Company) at the Separation Date and if any portion of the payments or benefits to be received by
the Employee would be considered deferred compensation under Section 409A of the Code, amounts that would otherwise be payable pursuant to this Agreement during the six-month period immediately following
the Employee’s Separation Date (the “Delayed Payments”) and benefits that would otherwise be provided pursuant to this Agreement (the “Delayed Benefits”) during the
six-month period immediately following the Employee’s Separation Date (such period, the “Delay Period”) shall instead be paid or made available on the earlier of (i) the first
business day of the seventh (7th) month following the Separation Date or (ii) the Employee’s death (the applicable date, the “Permissible Payment Date”). The Company
shall also reimburse the Employee for the after-tax cost incurred by the Employee in independently obtaining any Delayed Benefits (the “Additional Delayed Payments”). 

9.2 With respect to any amount of expenses eligible for reimbursement under Sections 3.1, 3.3 and 9.1, such expenses shall be reimbursed by the Company
within thirty (30) calendar days following the date on which the Company receives the applicable invoice from the Employee but in no event later than December 31 of the year following the year in which the Employee incurs the related
expenses; provided, that with respect to reimbursement relating to the Additional Delayed Payments, such reimbursement shall be made on the Permissible Payment Date. In no event shall the reimbursements or
in-kind benefits to be provided by the Company in one taxable year affect the amount of reimbursements or in-kind benefits to be provided in any other taxable year, nor
shall the Employee’s right to reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit. 

9.3 It is the intention of the parties that payments or benefits payable under this Agreement not be subject to the additional tax imposed pursuant to
Section 409A of the Code. To the extent such potential payments or benefits could become subject to such Section, the Company may amend this Agreement with the goal of giving the Covered Employee the economic benefits described herein in a
manner that does not result in such tax being imposed. 
 9.4 For purposes of Section 409A of the Code, an Employee’s right to receive any
“installment” payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. 
 10.0
Miscellaneous 
 10.1 This Agreement is binding on, and shall inure to the benefit of, the Parties hereto and their heirs, representatives,
transferees, principals, executors, administrators, predecessors, 

  
 - 8 - 

 
successors, parents, subsidiaries, affiliates, assigns, agents, directors, officers and employees. In the event that Employee dies before payment of all amounts described in this Agreement is
made, and the Agreement has been executed and not revoked, the Company agrees to pay unpaid amounts to Employee’s estate. 
 10.2 This Agreement
constitutes the complete agreement between, and contains all of the promises and undertakings by the Parties. Employee agrees that the only considerations for signing this Agreement are the terms stated herein above and that no other
representations, promises, or assurances of any kind have been made to him by the Company, its attorneys, or any other person as an inducement to sign this Agreement. Any and all prior agreements, representations, negotiations and understandings
among the Parties, oral or written, express or implied, with respect to the subject matter hereof are hereby superseded and merged herein, except to the extent provided in Section 10 of the Employment Agreement, and provided that this Agreement
supplements and does not amend, alter, void, replace, or otherwise override any confidentiality, non-solicitation, non-compete agreement executed by Employee that is
part of any equity award agreement executed by the Employee. To be clear and to avoid any doubt, the parties expressly agree that any confidentiality, non-solicitation,
non-compete agreement executed by Employee that is part of any equity award agreement executed by the Employee remains in full force and effect and is not modified in any way by this Agreement. 

10.3 This Agreement may not be revised or modified without the mutual written consent of the Parties. 

10.4 The Parties acknowledge and agree that they have each had sufficient time to consider this Agreement and consult with legal counsel of their
choosing concerning its meaning prior to entering into this Agreement. In entering into this Agreement, no Party has relied on any representations or warranties of any other Party other than the representations or warranties expressly set forth in
this Agreement. Employee acknowledges that he has read this Agreement and that he possesses sufficient education and experience to fully understand the terms of this Agreement as it has been written, the legal and binding effect of this Agreement,
and the exchange of benefits and payments for promises hereunder, and that he has had a full opportunity to discuss or ask questions about all such terms. 

10.5 Except as otherwise provided in this Section, if any provision of this Agreement shall be determined to be invalid or unenforceable by a court of
competent jurisdiction, that part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of said provision or the remaining provisions of this Agreement; provided that, if any
provision contained in this Agreement shall be adjudicated to be invalid or unenforceable because such provision is held to be excessively broad as to duration, geographic scope, activity or subject, such provision shall be deemed amended by
limiting and reducing it so as to be valid and enforceable to the maximum extent compatible with the applicable laws of such jurisdiction, and such amendment only to apply with respect to the operation of such provision in the applicable
jurisdiction in which the adjudication is made. If Section 6.0 or any of its sub-parts of this Agreement is deemed invalid or unenforceable, in whole or in part, by a court of competent jurisdiction, this
entire Agreement shall be null and void, and any consideration paid hereunder shall be repaid immediately by Employee upon receipt of notice thereof. 

  
 - 9 - 

 10.6 Employee agrees that because he has rendered services of a special, unique, and extraordinary
character, damages may not be an adequate or reasonable remedy for breach of his obligations under this Agreement. Accordingly, in the event of a breach or threatened breach by Employee of the provisions of this Agreement, the Company shall be
entitled to (a) an injunction restraining Employee from violating the terms hereof, or from rendering services to any person, firm, corporation, association, or other entity to which any confidential information, trade secrets, or proprietary
materials of the Company have been disclosed or are threatened to be disclosed, or for which Employee is working or rendering services, or threatens to work or render services (b) all such other remedies available at law or in equity, including
without limitation the recovery of damages, reasonable attorneys’ fees and costs, and (c) withhold any further payments under this Agreement which become due and owing after the occurrence of said violation, breach or threatened breach.
Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach of this Agreement, including the right to terminate any payments to Employee pursuant to this
Agreement or the recovery of damages from Employee. 
 10.7 Such notice and any other notices required under this Agreement shall be served upon the
Company by certified mail, return receipt requested, or by expressed delivery by a nationally recognized delivery service company such as Federal Express as follows: 

If to the Company: 

Laboratory Corporation of America Holdings 

358 South Main Street 

Burlington, NC 27215 
 Telephone
No.: (336) 436-5021 
 Telecopier No.: (336) 436-4177 

Attention: Senior Vice President, General Counsel 

With a copy to: 

Laboratory Corporation of America Holdings 

358 South Main Street 

Burlington, NC 27215 
 Attention:
Senior Vice President, Global General Counsel 
 If to the Employee: 

Adam Schechter 
 At last address
shown on payroll records of the Company 
 10.8 Consistent with the requirements of this Section, each party shall notify the other party of any
change of address for the receipt of a notice under this Agreement. 
 10.9 This Agreement shall be construed in accordance with and governed by the
laws, except choice of law provisions, of the State of Delaware and shall govern to the exclusion of the laws of any other forum. The parties further agree that any action, special proceeding or other

  
 - 10 - 

 
proceeding with respect to this Agreement shall be brought exclusively in the federal or state courts of the State of Delaware. Employee and Company irrevocably consent to the jurisdiction
of the Federal and State courts of Delaware and that Employee hereby consents and submits to personal jurisdiction in the State of Delaware. Employee and Company irrevocably waive any objection, including an objection or defense based on lack of
personal jurisdiction, improper venue or forum non-conveniens which either may now or hereafter have to the bringing of any action or proceeding in connection with this Agreement. Employee acknowledges and
recognizes that in the event that he has breached this Agreement, the Company may initiate a lawsuit against him in North Carolina, that Employee waives his right to have that lawsuit be brought in a court located closer to where he may reside, and
that Employee will be required to travel to and defend himself in Delaware. 
 10.10 The Effective Date of this Agreement shall be either
(a) the Separation Date or (b) the day after expiration of the seven (7) day revocation period set forth in Section 4.4 of this Agreement, whichever date is later. 

10.11 If you agree with the foregoing, please sign below and return two (2) originals to me. You should retain one (1) original copy of this
Agreement for your records. 
 Sincerely, 

[Name] 

[Title] 
  

			
	Agreed to and accepted:
	
	   

	Adam Schechter
		
	Date:	 	 

  
 - 11 - 

 Execution Version 

EXHIBIT C 

Confidentiality, Non-Competition and Non-Solicitation Agreement

  
  
  

C-1 

 Exhibit C 

CONFIDENTIALITY/NON-COMPETITION/NON-SOLICITATION
AGREEMENT 
 During the course of your employment with Laboratory Corporation of America Holdings (“LabCorp”) or its
subsidiaries, divisions, or affiliates, you will have access to, or will acquire, highly confidential information and trade secrets concerning LabCorp’s and the Employer Company’s business, including, but not limited to, customer lists,
pricing, methods of pricing, marketing practices, advertising strategy, methods of operation and the needs and requirements of Employer Company’s and/or LabCorp’s customers. In addition, you will receive from LabCorp or Employer Company
and/or be exposed to LabCorp’s or the Employer Company’s valuable technical and marketing information that will materially aid you in the performance of your duties on behalf of the Employer Company, and assist you and/or the Employer
Company in furthering the Employer Company’s business interests, including establishing and retaining the Employer Company’s customers. The support furnished to you by the Employer Company will enable you to increase the value of the
Employer Company’s goodwill with the Employer Company’s customers, which is a valuable asset of the Employer Company. 

As indicated by the foregoing, the services you will be performing for the Employer Company will be of a special, unique and
extraordinary nature. Accordingly, in consideration of LabCorp extending to you, as applicable, certain incentive compensation, as set forth in the Agreement(s) to which this Exhibit is made a part thereof and which governs the grant of said
benefits, any and all of which benefits otherwise would not be provided to you absent your agreement to be bound by the terms of this
Confidentiality/Non-Competition/Non-Solicitation Agreement (“Restrictive Covenant Agreement”), you agree that: 

 

	 	1.	 Property Rights and Workproduct. All ideas, inventions, discoveries, computer programs,
developments, standard operating procedures, designs, improvements, formulae, processes, techniques, programs, know-how, data, business plans, reports, presentations, or any other work product of possible
technical or commercial importance relating to the Employer Company’s business or anticipated business (hereafter collectively referred to as “Work Product”) created or developed by you as part of your employment with the Employer
Company shall be deemed to be work made for hire and that the Employer Company shall be the sole owner of all rights, including copyright, in and to the Work Product. If such Work Product, or any part thereof, does not qualify as work made for hire,
you agree to assign, and hereby assign, to the Employer Company for the full term of the copyright and all extensions thereof all of your right, title and interest in and to the Work Product. The Employer Company may, at its own expense, prepare and
process applications for copyrights, trademarks, service marks, or letter patents, or may take other actions that it deems necessary or appropriate to protect itself with respect to the aforementioned items. You shall cooperate with the Employer
Company in enforcing and protecting its rights by executing such applications or other documentation prepared for the protection 

  
 1 

	 	
of such interests and assigning them to the Employer Company, as well as executing all papers pertaining to said inventions, documents, marks, improvements, discoveries, trade secrets,
applications and protective actions.  

  

	 	2.	 Confidentiality. You agree that during the term of your employment and for any time after your
termination, you shall not, without the prior written consent of the Employer Company, divulge to any third party or use for your own benefit, or for any purpose other than the exclusive benefit of the Employer Company, any Confidential Information
of the Employer Company, LabCorp and its subsidiaries, divisions, or affiliates. In this Restrictive Covenant Agreement, Confidential Information shall mean information that concerns the Employer Company’s, LabCorp’s and its
subsidiaries’, divisions’, or affiliates’ prices, pricing methods, costs, profits, profit margins, suppliers, methods, procedures, processes or combinations or applications thereof developed in, by, or for the Employer Company’s
business, research and development projects, data, business strategies, marketing strategies, sales techniques, customer lists, customer information, financial information, or any other information concerning the Employer Company or its business
that is not readily and easily available to the public or to those persons in the same business, trade, or industry of the Employer Company. The term “customer information” as used in this Restrictive Covenant Agreement shall mean
information that concerns the course of dealing between the Employer Company and its customers or potential customers solicited by the Employer Company, customer preferences, particular contracts or locations of customers or potential customers,
negotiations with customers, and any other information concerning customers or potential customers obtained by the Employer Company that is not readily and easily available to the public or to those in the business, trade, or industry of the
Employer Company. Your obligation not to disclose Confidential Information does not prohibit you from (a) disclosing the information to a government agency if you are required to produce the information pursuant to a subpoena, court order,
administrative order or other legal process, (b) discussing terms and conditions of employment or engaging in other activities protected by the National Labor Relations Act, (c) communicating with the Securities and Exchange Commission
about securities law violations, or (d) communicating with any other government entity or agency if such communication is to report a violation of applicable law. However, you shall notify the Employer Company in writing within three
(3) calendar days of the receipt of any subpoena, court order, administrative order or other legal process requiring disclosure of Confidential Information and shall provide the Employer Company with a copy of said subpoena, court order,
administrative order or other legal process. 

  
 2 

	 	3.	 Non-Solicitation of LabCorp Employees. During the term of your
employment and for a period of twelve (12) months following the term of your employment, you shall not, directly or indirectly through a subordinate, co-worker, peer, or any other person or entity
contact, solicit, encourage or induce any officer, director or employee of LabCorp or its subsidiaries and affiliates to work for or provide services to you and/or any other person or entity that either (i) directly provides products or
services that compete with the products or services provided by the Employer Company in a geographic market serviced by the Employer Company or (ii) supplies, services, advises or consults with a person, trade or business that products or
services that compete with the products or services provided by the Employer Company in a geographic market serviced by the Employer Company. 

  

	 	4.	 Non-Solicitation of Customers. During your employment and for a
period of twelve (12) months following the voluntary or involuntary termination of your employment, you will not either directly or indirectly through a subordinate, co-worker, peer or other person or
entity, call upon, contact, or solicit or attempt to call upon, contact or solicit any customer or customer prospect of the Employer Company, with a view toward the sale or providing of any service or product competitive with the products and
services offered by the Employer Company; provided, however, the restrictions set forth in Paragraph 4 shall apply only to customers or prospects of the Employer Company, or representatives of the same, with which you had contact
during the last twenty-four (24) months of your employment with the Employer Company. The parties agree and affirm that their intention with respect to Paragraph 4 is that your activities be limited only for a twelve (12) month period
after termination of your employment with the Employer Company for any reason. The provisions calling for a “look back” of twenty-four (24) calendar months prior to the termination of employment are intended solely as a means of
identifying the customers and potential customers to which such restrictions apply and are not intended to nor shall they, under any circumstances, be construed to define the length or term of any such restriction. 

 

	 	5.	 Noncompetition. During your employment and for a period of twelve (12) months following your
voluntary or involuntary termination of employment, you shall not become an owner in, shareholder with more than a 2% equity interest in, investor in, or an employee, contractor, consultant, advisor, representative, officer, director, or agent of, a
trade or business that offers products and services that are the same or substantially similar to the products and services provided by the Employer Company in any geographic market in which the Employer Company conducts business
(“Competitor”); provided, however, that the duties and responsibilities of said employment or engagement as an owner in, shareholder with more than 2% equity interest in, investor in, employee, contractor, consultant,
advisor, representative, officer, director or agent are 

  
 3 

	 	
(i) the same, similar, or substantially related to your current duties and responsibilities or duties or responsibilities performed by you while employed by the Employer Company at any time
during a six (6) month period prior to your date of termination of employment and (ii) related to or concerning the Competitor’s business activities in the Restricted Territory. The parties agree and affirm that their intention with
respect to Paragraph 5 is that your activities shall be limited only for the twelve (12) month period after termination of employment for any reason. The provisions calling for a “look back” of six (6) calendar months prior to
the date of termination of employment are intended solely as a means of identifying the duties and responsibilities that will define the restricted activities covered by Paragraph 5 and are not intended to nor shall they, under any
circumstances, be construed to define the length or term of any such restriction. For purposes of Paragraph 5, the term “Restricted Territory” means the geographic area that is part of your current duties and responsibilities or the
geographic area that was part of your duties and responsibilities within a period of six (6) month period prior to the date of your termination of employment. If a court of competent jurisdiction determines that the Restricted Territory as
defined herein is too restrictive, then the parties agree that said court may reduce or limit the Restricted Territory to the largest acceptable area so as to enable the enforcement of Paragraph 5. 

 

	 	6.	 Return of Confidential Information. At any time upon the request of the Employer Company or upon your
termination of your employment, you shall return to the Employer Company any and all Employer Company property including but not limited to laptops, phones, smart phones and documents or materials in your possession, custody and control that contain
Confidential Information. You also agree that upon termination of employment, you shall destroy any Confidential Information stored on your personal computer or other data storage device. Along with the return of said documents and materials, you
shall provide the Employer Company (upon the Employer Company’s request) with a sworn or written statement indicating that you do not have possession, custody and control of any of the Employer Company’s Confidential Information and have
destroyed all of the Employer Company’s data electronically stored on your personal computer or other data storage device. 

  

	 	7.	 Notice. Notice shall be effective only if it is made in writing and actually or constructively
received by the individuals below. To be effective, any notice required under this Restrictive Covenant Agreement must be sent by nationally recognized express delivery courier or by certified mail, return receipt requested, to the person(s) and
address(es) listed below. 

 Senior Vice President, Global General Counsel 

Laboratory Corporation of America Holdings 

531 South Spring Street 

Burlington, North Carolina 27215 

  
 4 

 and, if to you, notice shall be sent to your last known mailing address on record at the
Employer Company. You have an obligation to ensure that the Employer Company’s records contain your most recent address. 
  

	 	8.	 Breach/Available Remedies. 

 

	 	a.	 Except as otherwise provided in this subparagraph, if any provision of this Restrictive Covenant Agreement
shall be determined to be invalid or unenforceable by a court of competent jurisdiction, that part shall be ineffective to the extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of said provision or
the remaining provisions of this Restrictive Covenant Agreement; provided, that if any provision contained in this Restrictive Covenant Agreement shall be adjudicated to be invalid or unenforceable because such provision is held to be
excessively broad as to duration, geographic scope, activity or subject, the parties agree that the said provision shall be limited and reduced to the maximum extent compatible with the applicable laws of such jurisdiction, and such amendment only
to apply with respect to the operation of such provision in the applicable jurisdiction in which the adjudication is made. 

  

	 	b.	 You agree that as part of this Restrictive Covenant Agreement, you will have access to the Employer
Company’s Confidential Information, personnel, and existing and potential customers of the Employer Company. You further agree that the Employer Company maintains a competitive advantage over other persons or entities in the trade or business
of providing commercial medical laboratory testing services as a result of the Employer Company’s Confidential Information, personnel, and existing and potential customer contacts. You further agree that the Employer Company will be placed at a
competitive disadvantage in the event that you breach this Restrictive Covenant Agreement and that damages would not be an adequate or reasonable remedy in the event of such breach. Accordingly, you stipulate that in the event that you breach one or
more of the provisions set forth in this Restrictive Covenant Agreement, the Employer Company will be entitled to an injunction restraining you from violating the terms of those paragraphs. Nothing herein shall be construed as prohibiting the
Employer Company from pursuing any other remedy available for such breach or prospective breach. 

  

	 	9.	 Miscellaneous.  

 

	 	a.	 Absent any other agreement to the contrary nothing herein shall be construed as giving you the right to
continued service or employment relationship with the Employer Company. This Agreement does not alter 

  
 5 

	 	
or amend in any way the Employer Company’s right to terminate the employment relationship in accordance with any offer letter, employment contract or applicable law. 

 

	 	b.	 You represent and warrant that you are not a party to any contract, agreement or understanding that prevents or
prohibits you from entering into and fully performing under this Restrictive Covenant Agreement. 

  

	 	c.	 In the event a court of law declares any provision of this Restrictive Covenant Agreement to be null and void,
it is understood and agreed by you and the Employer Company that such clause shall be severed from this Restrictive Covenant Agreement and that the remaining provisions of this Restrictive Covenant Agreement shall continue to be binding on you.

  

	 	d.	 It is understood and agreed by you and Laboratory Corporation of America Holdings (“LabCorp”) that
this Confidentiality/Non-Competition/Non-Solicitation Agreement constitutes the agreement in its entirety and supersedes any previous Confidentiality/Non-Competition/Non-Solicitation Agreement previously executed by you as part of an Equity Award Agreement with LabCorp. This
Confidentiality/Non-Competition/Non-Solicitation Agreement replaces any other non-compete,
non-solicitation and confidentiality agreement which you may have previously executed in favor of LabCorp or one of its subsidiary companies incorporated within the United States. This Confidentiality/Non-Competition/Non-Solicitation Agreement shall not replace, amend, restrict, otherwise modify or supersede any employment contract or agreement between you
and a foreign subsidiary of LabCorp and shall not amend, alter or affect any non-compete, non-solicitation or confidentiality agreement executed by you and LabCorp or an
Employer Company in connection with a merger or acquisition agreement of a business entity with whom you were previously employed or affiliated, including, but not limited to, an ownership or investment interest in said entity.

  

	 	e.	 For purposes of this Restrictive Covenant Agreement, the Employer Company shall mean Laboratory Corporation of
America Holdings or its subsidiary and affiliated companies with whom you are employed at the commencement of your employment, as well as any subsequent parent, subsidiary or affiliated company that becomes the employing entity in the event of a
transfer, promotion, assignment, reassignment or corporate restructuring. 

  

	 	f.	 As used herein, “affiliate” shall mean a current or future company or other business entity that,
directly or indirectly, is controlled by, controls or is under common control with Laboratory Corporation of America Holdings. For the purposes of the preceding sentence, the meaning of the word “control” shall include, but not necessarily
be limited to, ownership of more than fifty percent (50%) of the voting shares or other interest of the Employer Company or other business entity. 

  
 6 

	 	g.	 This Restrictive Covenant Agreement shall be binding upon you and shall inure to the benefit of the parties and
their respective personal representatives, heirs, affiliates, successors, and assigns. LabCorp may at its sole discretion assign its rights under this Restrictive Covenant Agreement. 

 

	 	h.	 You affirm by signing this Restrictive Covenant Agreement that you have completely read this entire Restrictive
Covenant Agreement and understand the terms and conditions included within this Restrictive Covenant Agreement. You also agree that this Restrictive Covenant Agreement may not be modified or altered in any respect except in writing, signed by you
and LabCorp. 

  

	 	i.	 This Restrictive Covenant Agreement shall be deemed to have been entered into in the State of North Carolina
and shall be construed in accordance with and governed by the laws of North Carolina, to the exclusion of the laws of any other forum including but not limited to the laws of the State of California. You agree, acknowledge and recognize that by
virtue of your employment with the Employer Company, either a North Carolina corporation or a subsidiary of a North Carolina corporation, with its principal place of business in North Carolina, and your own contacts and business dealings with
LabCorp and the Employer Company in North Carolina, North Carolina has a substantial relationship to this Restrictive Covenant Agreement and a materially greater interest in applying its laws, over and to the exclusion of the laws of any other
forum, to the resolution of any dispute arising out of or relating to this Restrictive Covenant Agreement. 

  

	 	j.	 Any action, special proceeding or other proceeding, including without limitation any request for temporary,
preliminary, or permanent injunctive relief with respect to this Restrictive Covenant Agreement shall be brought exclusively in the federal or state courts of the State of North Carolina. You and the Employer Company irrevocably
consent to the jurisdiction of the Federal and State courts of North Carolina and you hereby consent and submit to personal jurisdiction in the State of North Carolina. You and the Employer Company irrevocably waive any objection, including an
objection or defense based on lack of personal jurisdiction, improper venue or forum non-conveniens which either may now or hereafter have to the bringing of any action or proceeding in connection with this
Restrictive Covenant Agreement. You acknowledge and recognize that in the event that you breach this Restrictive Covenant Agreement, the Employer Company may initiate a lawsuit against you in North Carolina, that you waive your right to have that
lawsuit be brought in a court located closer to where you may reside, and that you 

  
 7 

	 	
will be required to travel to and defend yourself in North Carolina. You likewise agree that to the extent you institute any action arising out of or relating to this
Restrictive Covenant Agreement, it shall be brought in North Carolina and doing so does not present any undue burden or inconvenience to you. 

  

	 	k.	 You shall at all times abide by such laws and regulations, including but not limited to such laws which relate
to the improper inducement for referrals of items or Services reimbursable by the Federal health care programs 42 U.S.C. § 1320a-7b(b) (the “anti-kickback statute”). You acknowledge that you are
(i) aware that the United States securities laws prohibit any person who has material nonpublic information about the Employer Company from purchasing or selling securities of such Employer Company, or from communicating such information to any
other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities and (ii) familiar with the Securities Exchange Act of 1934 and the rules and regulations promulgated
thereunder and agrees that it will neither use, nor cause any third party to use, any Information in contravention of such Act or any such rules and regulations, including Rules 10b-5 and 14e-3. 

  

	 	l.	 Except as stated otherwise herein, this Restrictive Covenant Agreement contains the entire agreement between
the parties hereto with respect to the subject matter hereof, and there are no representations, warranties, covenants, conditions, understandings or agreements other than those expressly set forth herein. 

IN WITNESS WHEREOF, the undersigned have duly executed and delivered this Agreement, or have caused this Agreement to be duly executed and delivered on their
behalf. 
  

	
	 LABORATORY CORPORATION OF

AMERICA HOLDINGS

	
	 
	Name:
	Title: 
	
	EXECUTIVE
	
	 
	Adam H. Schechter

  
 8Exhibit 10.1

 

EXECUTION VERSION

 

GOLDMAN SACHS  & CO. LLC | 200 WEST STREET | NEW YORK, NEW YORK 10282-2198 | TEL:  (212) 902-1000

 

Opening Transaction

 

	
To:
    	
 
    	
Eversource   Energy
    
	
A/C:
    	
 
    	
[Insert   Account Number]
    
	
From:
    	
 
    	
Goldman Sachs & Co. LLC
    
	
Re:
    	
 
    	
Issuer Share Forward Sale Transaction
    
	
Ref. No:
    	
 
    	
[Insert   Reference Number]
    
	
Date:
    	
 
    	
May 30, 2019
    

 

Dear Sir(s):

 

The purpose of this communication (this “Confirmation”) is to set forth the terms and conditions of the above-referenced transaction entered into on the Trade Date specified below (the “Transaction”) between Goldman Sachs & Co. LLC (“Dealer”) and Eversource Energy (“Counterparty”).  This communication constitutes a “Confirmation” as referred to in the Agreement specified below. This Confirmation is a confirmation for purposes of Rule 10b-10 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

1.                                      This Confirmation is subject to, and incorporates, the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”). In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation will govern. For purposes of the Equity Definitions, the Transaction will be deemed to be a Share Forward Transaction.

 

This Confirmation shall supplement, form a part of and be subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement (Multicurrency—Cross Border) (the “ISDA Form”), as published by ISDA, as if Dealer and Counterparty had executed the ISDA Form on the date hereof (but without any Schedule except for (i) the election of Loss and Second Method, New York law (without regard to New York’s choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law) as the governing law and US Dollars (“USD”) as the Termination Currency, (ii) the replacement of the word “third” in the last line of Section 5(a)(i) with the word “first”, (iii) the election that the “Cross Default” provisions of Section 5(a)(vi) shall apply to Counterparty with a “Threshold Amount” of USD 50 million, and to Dealer with a “Threshold Amount” of 3% of the shareholders’ equity of The Goldman Sachs Group Inc. as of the Trade Date; provided that (a) the phrase “or becoming capable at such time of being declared” shall be deleted from clause (1) of such Section 5(a)(vi) of the Agreement, (b) the following sentence shall be added to the end thereof: “Notwithstanding the foregoing, a default under subsection (2) hereof shall not constitute an Event of Default if (i) the default was caused solely by error or omission of an administrative or operational nature; (ii) funds were available to enable the party to make the payment when due; and (iii) the payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.” and (iv) the term “Specified Indebtedness” shall have the meaning specified in Section 14 of the Agreement, except that such term shall not include obligations in respect of deposits received in the ordinary course of a party’s banking business.  All other provisions contained in the Agreement are incorporated into and shall govern this Confirmation except as expressly modified below.  This Confirmation evidences a complete and binding agreement between Dealer and Counterparty as to the terms of the Transaction and replaces any previous agreement between the parties with respect to the subject matter hereof.

 

The Transaction hereunder shall be the sole Transaction under the Agreement.  If there exists any ISDA Master Agreement between Dealer or any of its Affiliates, including The Goldman Sachs Group, Inc. (collectively,

 

 

“Goldman Sachs”) and Counterparty or any confirmation or other agreement between Goldman Sachs and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between Goldman Sachs and Counterparty, then notwithstanding anything to the contrary in such ISDA Master Agreement, such confirmation or agreement or any other agreement to which Goldman Sachs and Counterparty are parties, the Transaction shall not be considered a Transaction under, or otherwise governed by, such existing or deemed ISDA Master Agreement.

 

2.                                      The terms of the particular Transaction to which this Confirmation relates are as follows:

 

General Terms:

 

	
Trade Date:
    	
May 30, 2019
    
	
 
    	
 
    
	
Effective Date:
    	
June 4, 2019 (the “Scheduled Effective Date”), or such later date on which the   conditions set forth in Section 3 of this Confirmation shall have been   satisfied.
    
	
 
    	
 
    
	
Buyer:
    	
Dealer
    
	
 
    	
 
    
	
Seller:
    	
Counterparty
    
	
 
    	
 
    
	
Maturity Date:
    	
The first anniversary of the Trade Date (or, if such date is not a   Scheduled Trading Day, the next following Scheduled Trading Day).
    
	
 
    	
 
    
	
Shares:
    	
The shares of common stock, par value   USD 5.00 per Share, of Counterparty (Ticker: “ES”)
    
	
 
    	
 
    
	
Number of Shares:
    	
Initially, (x) if no Initial Hedging Disruption (as defined   below) occurs, 11,960,000 Shares (the “Full Number of Shares”)   or (y) if an Initial Hedging Disruption occurs, the Reduced Number of   Shares (as defined below), in each case, as reduced on each Relevant   Settlement Date (as defined under “Settlement Terms” below) by the number of   Settlement Shares to which the related Valuation Date relates.
    
	
 
    	
 
    
	
Settlement Currency:
    	
USD
    
	
 
    	
 
    
	
Exchange:
    	
The New York Stock Exchange
    
	
 
    	
 
    
	
Related Exchange:
    	
All Exchanges
    
	
 
    	
 
    
	
Prepayment:
    	
Not Applicable
    
	
 
    	
 
    
	
Variable Obligation:
    	
Not Applicable
    
	
 
    	
 
    
	
Forward Price:
    	
On the Effective Date, USD71.48, and on any day thereafter, the   product of the Forward Price on the immediately preceding calendar day and
    
	
 
    	
 
    
	
 
    	
1 + the Daily Rate * (1/365);
    
	
 
    	
 
    
	
 
    	
provided that the Forward Price on each   Forward Price Reduction Date shall be the Forward Price otherwise in effect on such date minus   the Forward Price Reduction Amount for such Forward Price Reduction Date.
    
	
 
    	
 
    
	
Daily Rate:
    	
For any day, the Overnight Bank Rate minus   0.75%.
    

 

2

 

	
Overnight Bank Rate:
    	
For any day, the rate set forth for such day   opposite the caption “Overnight bank funding rate,” as such rate is displayed   on Bloomberg Screen “OBFR01 <Index> <GO>”, or any successor page;   provided that, if no rate appears for   a particular day on such page, the rate for the immediately preceding day for   which a rate does so appear shall be used for such day.
    
	
 
    	
 
    
	
Forward Price Reduction Dates:
    	
As set forth on Annex B hereto.
    
	
 
    	
 
    
	
Forward Price Reduction Amount:
    	
For each Forward Price Reduction Date, the Forward Price Reduction   Amount set forth opposite such date on Annex B.
    
	
 
    	
 
    
	
Valuation:
    	
 
    
	
 
    	
 
    
	
Valuation Date:
    	
For any Settlement (as defined below), if Physical Settlement is   applicable, as designated in the relevant Settlement Notice (as defined   below); or if Cash Settlement or Net Share Settlement is applicable, the last   Unwind Date for such Settlement. Section 6.6 of the Equity Definitions   shall not apply to any Valuation Date.
    
	
 
    	
 
    
	
Unwind Dates:
    	
For any Cash Settlement or Net Share   Settlement, each day on which Dealer (or its agent or   affiliate) purchases Shares in the market in connection with such Settlement,   starting on the First Unwind Date for such Settlement.
    
	
 
    	
 
    
	
First Unwind Date:
    	
For any Cash   Settlement or Net Share Settlement, as designated in the relevant Settlement   Notice.
    
	
 
    	
 
    
	
Unwind Period:
    	
For any Cash Settlement or Net Share   Settlement, the period starting on the First Unwind Date for such Settlement   and ending on the Valuation Date for such   Settlement.
    
	
 
    	
 
    
	
Settlement   Terms:
    	
 
    
	
 
    	
 
    
	
Settlement:
    	
Any Physical Settlement, Cash   Settlement or Net Share Settlement of all or any portion of the   Transaction.
    
	
 
    	
 
    
	
Settlement Notice:
    	
Subject to “Early Valuation” below, Counterparty may elect to effect   a Settlement of all or any portion of the Transaction by designating one or   more Scheduled Trading Days following the Effective Date and on or prior to   the Maturity Date to be Valuation Dates (or, with respect to Cash Settlements   or Net Share Settlements, First Unwind Dates, each of which First Unwind   Dates shall occur no later than the 90th Scheduled Trading Day immediately   preceding the Maturity Date) in a written notice to Dealer (a “Settlement Notice”) delivered no later   than the applicable Settlement Method Election Date, which notice shall also   specify (i) the number of Shares (the “Settlement   Shares”) for such Settlement (not to exceed the number of   Undesignated Shares as of the date of such Settlement Notice) and   (ii) the Settlement Method applicable to such Settlement; provided that (A) Counterparty may not designate a   First Unwind Date for a Cash Settlement or a Net Share Settlement if, as of   the date of such Settlement Notice, any Shares have been designated as   Settlement Shares for a Cash Settlement or a Net Share Settlement for which   the related Relevant Settlement Date has not occurred; (B) if the Number   of Shares as of the Maturity Date is not zero, then the Maturity
    

 

3

 

	
 
    	
Date shall be a Valuation Date for a Physical Settlement and the   number of Settlement Shares for such Settlement shall be the Number of Shares   as of the Maturity Date (provided that   if the Maturity Date occurs during any Unwind Period, then the provisions set   forth below opposite “Early Valuation” shall apply as if the Maturity Date   were the Early Valuation Date); and (C) Counterparty may not designate a   First Unwind Date for a Cash Settlement or a Net Share Settlement unless   Counterparty complies with any applicable requirements under Section 8   below.
    
	
 
    	
 
    
	
Undesignated Shares:
    	
As of any date, the Number of Shares minus   the number of Shares   designated as Settlement Shares for   Settlements for which the related Relevant Settlement Date has not   occurred.
    
	
 
    	
 
    
	
Settlement Method Election:
    	
Applicable; provided   that:
    
	
 
    	
 
    
	
 
    	
(i) Net Share Settlement shall be deemed to be included as an   additional settlement method under Section 7.1 of the Equity   Definitions;
    
	
 
    	
 
    
	
 
    	
(ii) Counterparty may elect Cash Settlement or Net Share   Settlement only if Counterparty represents and warrants to Dealer in the   Settlement Notice containing such election that, as of the date of such   Settlement Notice, (A) Counterparty is not aware of any material   nonpublic information concerning itself or the Shares, (B) Counterparty   is electing the settlement method and designating the First Unwind Date   specified in such Settlement Notice in good faith and not as part of a plan   or scheme to evade compliance with Rule 10b-5 under the Exchange Act (“Rule 10b-5”) or any other provision of the federal   securities laws, (C) Counterparty is not “insolvent” (as such term is   defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of   the United States Code) (the “Bankruptcy Code”)),   (D) Counterparty would be able to purchase a number of Shares equal to   the greater of (x) the number of Settlement Shares designated in such   Settlement Notice and (y) a number of Shares with a value as of the date of such Settlement Notice equal   to the product of (I) such number of Settlement Shares and (II) the   then-current Forward Price in compliance with the laws of Counterparty’s   jurisdiction of organization, (E) it is not electing Cash Settlement or   Net Share Settlement to create actual or apparent trading activity in the   Shares (or any security convertible into or exchangeable for Shares) or to   raise or depress or otherwise manipulate the price of the Shares (or any   security convertible into or exchangeable for Shares) and (F) such   election, and settlement in accordance therewith, does not and will not   violate or conflict with any law, regulation or supervisory guidance   applicable to Counterparty, or any order or judgment of any court or other   agency of government applicable to it or any of its assets, and any   governmental consents that are required to have been obtained by Counterparty   with respect to such election or settlement have been obtained and are in   full force and effect and all conditions of any such consents have been complied   with; and
    
	
 
    	
 
    
	
 
    	
(iii) Notwithstanding any election to the contrary in any   Settlement Notice, Physical Settlement shall be applicable:
    
	
 
    	
 
    
	
 
    	
(A)       to all of the Settlement Shares   designated in such Settlement Notice if, on the date such Settlement Notice   is received by Dealer, (I) the trading price per Share on the Exchange   (as determined by Calculation Agent) is below USD35.74 (the
    

 

4

 

	
 
    	
“Threshold Price”) or   (II) Dealer determines in good faith and in its reasonable judgment,   based on advice of counsel, that it would be unable to purchase a number of   Shares in the market sufficient to unwind its hedge position in respect of   the Transaction and satisfy its delivery obligation hereunder, if any, by the Maturity Date (x) in a   manner that (A) would, if Dealer were Counterparty or an affiliated   purchaser of Counterparty, be subject to the safe harbor provided by   Rule 10b-18(b) under the Exchange Act and (B) would not raise   material risks under applicable securities laws or (y) due to the lack   of sufficient liquidity in the Shares (each, a “Trading   Condition”); or
    
	
 
    	
 
    
	
 
    	
(B)       to all or a portion of the Settlement   Shares designated in such Settlement Notice if, on any day during the   relevant Unwind Period, (I) the trading price per Share on the Exchange   (as determined by the Calculation Agent) is below the Threshold Price or   (II) Dealer determines, in good faith and in its reasonable judgment,   based on advice of counsel, that a Trading Condition has occurred, in which   case the provisions set forth below in the third paragraph opposite “Early   Valuation Date” shall apply as if such day were the Early Valuation Date and   (x) for purposes of clause (i) of such paragraph, such day shall be   the last Unwind Date of such Unwind Period and the “Unwound Shares” shall be   calculated to, and including, such day and (y) for purposes of clause   (ii) of such paragraph, the “Remaining Shares” shall be equal to the   number of Settlement Shares designated in such Settlement Notice minus the Unwound Shares determined in accordance with   clause (x) of this sentence.
    
	
 
    	
 
    
	
Electing Party:
    	
Counterparty
    
	
 
    	
 
    
	
Settlement Method Election Date:
    	
With respect to any Settlement, the 3rd Scheduled Trading Day   immediately preceding (x) the Valuation Date, in the case of Physical   Settlement, or (y) the First Unwind Date, in the case of Cash Settlement   or Net Share Settlement.
    
	
 
    	
 
    
	
Default Settlement Method:
    	
Physical Settlement
    
	
 
    	
 
    
	
Physical Settlement:
    	
Notwithstanding Section 9.2(a)(i) of the Equity   Definitions, on the Settlement Date, Dealer shall pay to Counterparty an   amount equal to the Forward Price on the relevant Valuation Date multiplied by the number of Settlement Shares for such   Settlement, and Counterparty shall deliver to Dealer such Settlement Shares.
    
	
 
    	
 
    
	
Settlement Date:
    	
The Valuation Date.
    
	
 
    	
 
    
	
Net Share Settlement:
    	
On the Net Share Settlement Date, if the Net Share Settlement Amount   is greater than zero, Counterparty shall deliver a number of Shares equal to   the Net Share Settlement Amount (rounded down to the nearest integer) to   Dealer, and if the Net Share Settlement Amount is less than zero, Dealer   shall deliver a number of Shares equal to the absolute value of the Net Share   Settlement Amount (rounded down to the nearest integer) to Counterparty, in   either case, in accordance with Section 9.4 of the Equity Definitions,   with the Net Share Settlement Date deemed to be a “Settlement Date” for   purposes of such Section 9.4, and, in either
    

 

5

 

	
 
    	
case, plus cash in lieu of any fractional Shares included in the Net   Share Settlement Amount but not delivered due to rounding required hereby,   valued at the Settlement Price.
    
	
 
    	
 
    
	
Net Share Settlement Date:
    	
The date that follows the Valuation Date by one Settlement Cycle.
    
	
 
    	
 
    
	
Net Share Settlement Amount:
    	
For any Net Share Settlement, an amount equal to the Forward Cash   Settlement Amount divided by the   Settlement Price.
    
	
 
    	
 
    
	
Forward Cash Settlement Amount:
    	
Notwithstanding Section 8.5(c) of the Equity Definitions,   the Forward Cash Settlement Amount for any Cash Settlement or Net Share   Settlement shall be equal to (i) the number of Settlement Shares for   such Settlement multiplied by (ii) an amount   equal to (A) the Settlement Price minus (B) the   Relevant Forward Price.
    
	
 
    	
 
    
	
Relevant Forward Price:
    	
For any Cash Settlement or Net Share Settlement, the weighted average   of the Forward Prices on each Unwind Date relating to such Settlement   (weighted based on the number of Shares purchased by Dealer or its agent or   affiliate on each such Unwind Date in connection with such Settlement).
    
	
 
    	
 
    
	
Settlement Price:
    	
For any Cash Settlement or Net Share Settlement, the weighted average   price of the purchases of Shares made by Dealer (or its agent or affiliate)   during the Unwind Period relating to such Settlement (weighted based on the   number of Shares purchased by Dealer or its agent or affiliate on each Unwind   Date in connection with such Settlement as determined by the Calculation   Agent), plus an amount as determined by Dealer   in a commercially reasonable manner not to exceed USD0.03.
    
	
 
    	
 
    
	
Unwind Activities:
    	
The times and prices at which Dealer (or its agent or affiliate)   purchases any Shares during any Unwind Period shall be at Dealer’s   discretion; provided, that Dealer shall act   in a commercially reasonable manner when determining the times and prices at   which to purchase Shares during any Unwind Period and the prices shall   reflect prevailing market prices at the time of the purchase. Without   limiting the generality of the foregoing, in the event that Dealer concludes,   based on the advice of counsel, that that it is appropriate with respect to   any applicable legal, regulatory or self-regulatory requirements or related   policies and procedures (whether or not such requirements, policies or   procedures are imposed by law or have been voluntarily adopted by Dealer so   long as such policies have been adopted by Dealer in good faith and are   generally applicable in similar situations in a non-discriminatory manner) (a   “Regulatory Disruption”), for it to   refrain from purchasing Shares on any Scheduled Trading Day that would have   been an Unwind Date but for the occurrence of a Regulatory Disruption. Dealer   will use good faith efforts to notify Counterparty in writing that a   Regulatory Disruption has occurred on such Scheduled Trading Day without   specifying (and Dealer shall not otherwise communicate to Counterparty) the   nature of such Regulatory Disruption, and, for the avoidance of doubt, such   Scheduled Trading Day shall not be an Unwind Date and such Regulatory   Disruption shall be a Market Disruption Event as applicable for such   Scheduled Trading Day or the relevant portion thereof.
    
	
 
    	
 
    
	
Relevant Settlement Date:
    	
For any Settlement, the Settlement Date, Cash Settlement Payment Date   or Net Share Settlement Date, as the case may be.
    

 

6

 

	
Settlement Currency:
    	
USD
    
	
 
    	
 
    
	
Other Applicable Provisions:
    	
To the extent Dealer is obligated to deliver Shares hereunder, the   provisions of Sections 9.2 (last sentence only), 9.8, 9.9, 9.10 and 9.11 of   the Equity Definitions will be applicable as if “Physical Settlement” applied   to the Transaction; provided   that the Representation and Agreement contained in Section 9.11 of the   Equity Definitions shall be modified by excluding any representations therein   relating to restrictions, obligations, limitations or requirements under   applicable securities laws that exist as a result of the fact that   Counterparty is the issuer of the Shares.
    
	
 
    	
 
    
	
Share   Adjustments:
    	
 
    
	
 
    	
 
    
	
Potential Adjustment Events:
    	
An Extraordinary Dividend shall not constitute a Potential Adjustment   Event. For the avoidance of doubt, the declaration or payment of a cash dividend   with respect to the Shares will not constitute a Potential Adjustment Event.
    
	
 
    	
 
    
	
Extraordinary Dividend:
    	
Any dividend or distribution on the Shares with an ex-dividend date   occurring on any day following the Trade Date (other than (i) any   dividend or distribution of the type described in   Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the   Equity Definitions or (ii) a regular, quarterly cash dividend to the   extent such dividend (x) has an ex-dividend date that occurs on or after   the Forward Price Reduction Date corresponding to such quarter, and   (y) for which the amount does not exceed, on a per Share basis, the   Forward Price Reduction Amount set forth opposite the Forward Price Reduction   Date for such quarter on Annex B).
    
	
 
    	
 
    
	
Method of Adjustment:
    	
Calculation Agent Adjustment
    
	
 
    	
 
    
	
Extraordinary   Events:
    	
 
    
	
 
    	
 
    
	
Extraordinary Events:
    	
The consequences that would otherwise apply under Article 12 of   the Equity Definitions to any applicable Extraordinary Event (excluding any   Failure to Deliver, Increased Cost of Hedging, Increased Cost of   Stock Borrow or any Extraordinary Event that also constitutes a Bankruptcy   Termination Event, but including, for the avoidance of doubt, any other   applicable Additional Disruption Event) shall not apply.
    
	
 
    	
 
    
	
Tender Offer:
    	
Applicable
    
	
 
    	
 
    
	
Delisting:
    	
In addition to the provisions of Section 12.6(a)(iii) of   the Equity Definitions, it shall also constitute a Delisting if the Exchange   is located in the United States and the Shares are not immediately re-listed,   re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ   Global Select Market or The NASDAQ Global Market (or their respective   successors); if the Shares are immediately re-listed, re-traded or re-quoted   on any such exchange or quotation system, such exchange or quotation system   shall be deemed to be the Exchange.
    
	
 
    	
 
    
	
Additional   Disruption Events:
    	
 
    
	
 
    	
 
    
	
Change in Law:
    	
Applicable; provided that   (A) any determination as to whether (i) the adoption of or any   change in any applicable law or regulation (including,
    

 

7

 

	
 
    	
without limitation, any tax law) or (ii) the promulgation of or   any change in or public announcement of the formal or informal interpretation   by any court, tribunal or regulatory authority with competent jurisdiction of   any applicable law or regulation (including any action taken by a taxing   authority), in each case, constitutes a “Change in Law” shall be made without   regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection   Act of 2010 or any similar legal certainty provision in any legislation   enacted, or rule or regulation promulgated, on or after the Trade Date   and (B) Section 12.9(a)(ii) of the Equity Definitions is   hereby amended (i) by adding the words “(including, for the avoidance of   doubt and without limitation, adoption or promulgation of new regulations   authorized or mandated by existing statute)” after the word “regulation” in   the second line thereof and (ii) by replacing the words “the interpretation”   with the words “or public announcement of any formal or informal   interpretation” in the third line thereof.
    
	
 
    	
 
    
	
Failure to Deliver:
    	
Applicable if Dealer is required to deliver Shares hereunder;   otherwise, Not Applicable.
    
	
 
    	
 
    
	
Hedging Disruption:
    	
Applicable
    
	
 
    	
 
    
	
Increased Cost of Hedging:
    	
Applicable; provided that   Section 12.9(b)(vi) of the Equity Definitions shall be amended by   (i) deleting clause (C) of the second sentence thereof and   (ii) deleting the third and fourth sentences thereof.
    
	
 
    	
 
    
	
Increased Cost of Stock Borrow:
    	
Applicable; provided that   Section 12.9(b)(v) of the Equity Definitions shall be amended by   (i) deleting clause (C) of the second sentence thereof and   (ii) deleting the third, fourth and fifth sentences thereof. For the   avoidance of doubt, upon the announcement of any event that, if consummated,   would result in a Merger Event or Tender Offer, the term “rate to borrow   Shares” as used in Section 12.9(a)(viii) of the Equity Definitions   shall include any cost borne or amount payable by the Hedging Party in   respect of maintaining or reestablishing a commercially reasonable hedge   position, including, but not limited to, any assessment or other amount   payable by the Hedging Party to a lender of Shares in respect of any merger   or tender offer premium, as applicable.
    
	
 
    	
 
    
	
Initial Stock Loan Rate:
    	
25 basis points per annum
    
	
 
    	
 
    
	
Loss of Stock Borrow:
    	
Applicable.
    
	
 
    	
 
    
	
Maximum Stock Loan Rate:
    	
200 basis points per annum
    
	
 
    	
 
    
	
Hedging Party:
    	
For all applicable Additional Disruption Events, Dealer
    
	
 
    	
 
    
	
Determining Party:
    	
For all applicable Extraordinary Events, Dealer, provided, however, that all calculations,   adjustments, choices and determinations by the Determining Party shall be   made in good faith and in a commercially reasonable manner (it being   understood that the Determining Party shall be subject to the requirements of   the second paragraph under “Calculation Agent” below).
    

 

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Early   Valuation:
    	
 
    
	
 
    	
 
    
	
Early Valuation:
    	
Notwithstanding anything to the contrary herein, in the Agreement or   in the Equity Definitions, at any time (x) following the occurrence of a   Hedging Event, the declaration by Issuer of an Extraordinary Dividend, or an   ISDA Event or (y) if an Excess Section 13 Ownership Position, an Excess   FPA Ownership Position or an Excess Regulatory Ownership Position exists, the   Calculation Agent (or, in the case of an ISDA Event that is an Event of   Default or Termination Event, the party entitled to designate an Early   Termination Date in respect of such event pursuant to Section 6 of the   Agreement) shall have the right to designate any Scheduled Trading Day to be   the “Early Valuation Date”, in which case the provisions set forth in this “Early Valuation”   section shall apply, in the case of an Event of Default or Termination Event,   in lieu of Section 6 of the Agreement. For the avoidance of doubt, any   amount calculated in connection with an “Early Valuation” (in respect of   which Counterparty satisfies its payment and/or delivery obligations under this   “Early Valuation” section) as a result of an Extraordinary Dividend shall not   be adjusted by the value associated with such Extraordinary Dividend.
    
	
 
    	
 
    
	
 
    	
If the Early Valuation Date occurs on a date that is not during an   Unwind Period, then the Early Valuation Date shall be a Valuation Date for a   Physical Settlement, and the number of Settlement Shares for such Settlement   shall be the Number of Shares on the Early Valuation Date; provided that Dealer may in good faith and in its   commercially reasonable discretion elect to permit Counterparty to elect Cash   Settlement or Net Share Settlement or to designate more than one Early   Valuation Date (in which case, such Early Valuation Date will relate to a   number of Settlement Shares designated by Dealer).
    
	
 
    	
 
    
	
 
    	
If the Early Valuation Date occurs during an Unwind Period, then   (i) (A) the last Unwind Date of such Unwind Period shall be deemed   to be the Early Valuation Date, (B) a Settlement shall occur in respect   of such Unwind Period, and the Settlement Method elected by Counterparty in   respect of such Settlement shall apply, and (C) the number of Settlement   Shares for such Settlement shall be the number of Unwound Shares for such   Unwind Period on the Early Valuation Date, and (ii) (A) the Early   Valuation Date shall be a Valuation Date for an additional Physical   Settlement (provided that Dealer may in its   good faith and commercially reasonable discretion elect that the Settlement   Method elected by Counterparty for the Settlement described in clause   (i) of this sentence shall apply) and (B) the number of Settlement   Shares for such additional Settlement shall be the number of Remaining Shares   on the Early Valuation Date.
    
	
 
    	
 
    
	
 
    	
Notwithstanding the foregoing, in the case of a   Nationalization, Insolvency or Merger Event, if at the time of the   related Settlement Date or Net Share Settlement Date, as applicable, the   Shares have changed into cash or any other property or the right to receive   cash or any other property, the Calculation Agent shall adjust the nature of   the Shares as it determines appropriate to account for such change.
    
	
 
    	
 
    
	
ISDA Event:
    	
(i) Any Event of Default or Termination Event, other than an   Event of Default or Termination Event that also constitutes a Bankruptcy   Termination Event, that gives rise to the right of either party to designate   an Early Termination Date pursuant to Section 6 of the Agreement or   (ii) the announcement of any event or transaction that, if consummated,
    

 

9

 

	
 
    	
would result in a Merger Event, Tender Offer, Nationalization,   Delisting or Change in Law, in each case, as determined by the Calculation   Agent.
    
	
 
    	
 
    
	
Amendment to Merger Event:
    	
Section 12.1(b) of the Equity Definitions is hereby amended   by deleting the remainder of such Section beginning with the words “in   each case if the Merger Date is on or before” in the fourth to last line   thereof.
    
	
 
    	
 
    
	
Hedging Event:
    	
(i) A Loss of Stock Borrow or Hedging Disruption or   (ii) (A) an Increased Cost of Stock Borrow or (B) an Increased   Cost of Hedging, in the case of sub-clause (A) or (B), in connection   with which Counterparty does not elect, and so notify the Hedging Party of   its election, in each case, within the required time period to either amend   the Transaction pursuant to Section 12.9(b)(v)(A) or   Section 12.9(b)(vi)(A) of the Equity Definitions, as applicable, or   pay an amount determined by the Calculation Agent that corresponds to the   relevant Price Adjustment pursuant to Section 12.9(b)(v)(B) or   Section 12.9(b)(vi)(B) of the Equity Definitions, as applicable.
    
	
 
    	
 
    
	
Remaining Shares:
    	
On any day, the Number of Shares as of such day (or, if such day   occurs during an Unwind Period, the Number of Shares as of such day minus the Unwound Shares for such Unwind Period on such   day).
    
	
 
    	
 
    
	
Unwound Shares:
    	
For any Unwind Period on any day, the aggregate number of Shares with   respect to which Dealer has unwound its hedge position in respect of the   Transaction in connection with the related Settlement as of such day.
    
	
 
    	
 
    
	
Acknowledgements:
    	
 
    
	
 
    	
 
    
	
Non-Reliance:
    	
Applicable
    
	
 
    	
 
    
	
Agreements and Acknowledgements Regarding Hedging Activities:
    	
Applicable
    
	
 
    	
 
    
	
Additional Acknowledgements:
    	
Applicable
    
	
 
    	
 
    
	
Transfer:
    	
Notwithstanding anything to the contrary in the Agreement, Dealer may   assign, transfer and set over all rights, title and interest, powers,   privileges and remedies of Dealer under the Transaction, in whole or in part,   without the consent of Counterparty, to an affiliate of Dealer; provided that (a) (i) such affiliate’s   obligations are guaranteed by The Goldman Sachs Group, Inc. or   (ii) the long-term, unsecured and unsubordinated credit rating (“Credit Rating”) of the transferee or assignee is equal to   or better than the Credit Rating of Dealer, as specified by either Standard   and Poor’s Rating Group, Inc. (“S&P”) or   Moody’s Investors Service, Inc. (“Moody’s”) (or   their respective successors), or, if either S&P or Moody’s ceases to rate   such debt, at least an equivalent rating or better by a substitute rating   agency mutually agreed by Counterparty and Dealer, at the time of such   assignment, transfer or set over, (b) no Event of Default or Termination   Event with respect to which Dealer is the sole Defaulting Party or Affected   Party, as applicable, would result from such transfer or assignment, and (c) the   transferee shall be eligible to provide and shall provide a United States   Internal Revenue Service Form W-9, W-8IMY (indicating “qualified   derivatives dealer” status) or W-8ECI with respect to any payments or
    

 

10

 

	
 
    	
deliveries under   the Transaction and shall be a “dealer” within the meaning of section   1.1001-4(b)(1) of the Regulations.
    
	
 
    	
 
    
	
Calculation Agent:
    	
Dealer, provided, that following the occurrence and during the   continuance of an Event of Default of the type described in   Section 5(a)(vii) of the Agreement with respect to which Dealer is   the sole Defaulting Party, then Counterparty shall have the right to   designate an independent nationally recognized third-party dealer in the   market in over-the-counter corporate equity derivatives reasonably acceptable   to Dealer to act, during the period commencing on the date such Event of   Default occurred and ending on the Early Termination Date with respect to   such Event of Default (or, if applicable, the date on which such Event of   Default is no longer continuing), as the Calculation Agent.
    
	
 
    	
 
    
	
 
    	
Following any determination or calculation by the Calculation Agent   hereunder, upon a written request by Counterparty, the Calculation Agent will   promptly (but in any event within five Exchange Business Days) provide to   Counterparty by e-mail to the e-mail address provided by Counterparty in such   written request a report (in a commonly used file format for the storage and   manipulation of financial data) displaying in reasonable detail the basis for   such determination or calculation (including any assumptions used in making   such determination or calculation), it being understood that the Calculation   Agent shall not be obligated to disclose any proprietary models used by it   for such determination or calculation or any information that may be   proprietary or confidential or subject to an obligation not to disclose such   information. The Calculation Agent shall at all times act in good faith and   in a commercially reasonable manner.
    
	
 
    	
 
    
	
Counterparty Payment Instructions:
    	
Bank of America, N.A.
    
	
 
    	
Bank ABA: 026009593
    
	
 
    	
Bank Account Name: Eversource Energy Concentration Account
    
	
 
    	
Bank Account Number: 0050252484
    
	
 
    	
 
    
	
Dealer Payment Instructions:
    	
To be provided by Dealer.
    
	
 
    	
 
    
	
Counterparty’s Contact Details for Purpose of Giving Notice:
    	
Eversource Energy
    
	
 
    	
247 Station Drive
    
	
 
    	
Westwood, MA 02090
    
	
 
    	
Attention: Assistant Treasurer
    
	
 
    	
Telephone: (781) 441-8127
    
	
 
    	
Fax: (781) 441-3086
    
	
 
    	
Email: Emilie.ONeil@eversource.com
    
	
 
    	
 
    
	
Dealer’s Contact Details for Purpose of Giving Notice:
    	
Goldman Sachs & Co. LLC
    
	
 
    	
200 West Street
    
	
 
    	
New York, NY 10282-2198
    
	
 
    	
Attention: Simon Watson, Equity Capital Markets
    
	
 
    	
Telephone: 212-902-2317
    
	
 
    	
Facsimile: 212-256-5738
    
	
 
    	
Email: simon.watson@ny.ibd.email.gs.com
    
	
 
    	
 
    
	
With a copy to:
    	
Attention: Adam Bilali
    
	
 
    	
Telephone: 212-357-2021
    
	
 
    	
Email: adam.bilali@gs.com
    

 

11

 

	
 
    	
And   email notification to the following address:

Eq-derivs-notifications@am.ibd.gs.com
    

 

3.                                      Effectiveness.

 

The effectiveness of this Confirmation and the Transaction shall be subject to the following conditions:

 

(a)   the representations and warranties of Counterparty contained in the Underwriting Agreement dated the date hereof among Counterparty and Dealer, as representative of the Underwriters party thereto (the “Underwriting Agreement”), and any certificate delivered pursuant thereto by Counterparty shall be true and correct on the Effective Date as if made as of the Effective Date;

 

(b)   Counterparty shall have performed all of the obligations required to be performed by it under the Underwriting Agreement on or prior to the Effective Date;

 

(c)   all of the conditions set forth in Section 6 of the Underwriting Agreement shall have been satisfied;

 

(d)   the Initial Closing Date (as defined in the Underwriting Agreement) shall have occurred as provided in the Underwriting Agreement;

 

(e)   all of the representations and warranties of Counterparty hereunder and under the Agreement shall be true and correct on the Effective Date as if made as of the Effective Date; and

 

(f)    Counterparty shall have performed all of the obligations required to be performed by it hereunder and under the Agreement on or prior to the Effective Date, including without limitation its obligations under Section 6 hereof.

 

Notwithstanding the foregoing or any other provision of this Confirmation, if (x) on or prior to 9:00 a.m., New York City time, on the date the Initial Closing Date (as defined in the Underwriting Agreement) is scheduled to occur, Dealer, in its good faith and commercially reasonable judgment, is unable to borrow and deliver for sale the Full Number of Shares or (y) in Dealer’s good faith and commercially reasonable judgment, it would incur a stock loan cost of more than 25 basis points per annum with respect to all or any portion of the Full Number of Shares (in each case, an “Initial Hedging Disruption”), the effectiveness of this Confirmation and the Transaction shall be limited to the number of Shares Dealer may borrow at a cost of not more than 25 basis points per annum (such number of Shares, the “Reduced Number of Shares”), which, for the avoidance of doubt, may be zero.

 

4.             Additional Mutual Representations and Warranties. For purposes of Section 3(f) of the Agreement,  Dealer represents that it is a “U.S. person” within the meaning of section 1.1441-4(a)(3)(ii) of the United States Treasury Regulations (the “Regulations”), an exempt recipient under section 1.6049-4(c)(1)(ii)(A) of the Regulations, and a “dealer” within the meaning of section 1.1001-4(b)(1) of the Regulations. For purposes of Section 3(f) of the Agreement, Counterparty represents that it is (a) a “U.S. person” within the meaning of section 1.1441-4(a)(3)(ii) of the Regulations, and (b) an exempt recipient under section 1.6049-4(c)(1)(ii)(A) of the Regulations. In addition to the representations and warranties in the Agreement, each party represents and warrants to the other party that it is an “eligible contract participant”, as defined in the U.S. Commodity Exchange Act (as amended), and an “accredited investor” as defined in Section 2(a)(15)(ii) of the Securities Act of 1933 (as amended) (the “Securities Act”), and is entering into the Transaction hereunder as principal and not for the benefit of any third party. The parties acknowledge that Dealer shall make its own determination as to whether, when or in what manner any hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Forward Price and the Settlement Price.

 

5.             Additional Representations and Warranties of Counterparty.  In addition to the representations and warranties in the Agreement and those contained elsewhere herein, Counterparty represents and warrants to Dealer, and agrees with Dealer, that:

 

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(a)   without limiting the generality of Section 13.1 of the Equity Definitions, it acknowledges that Dealer is not making any representations or warranties with respect to the treatment of the Transaction under any accounting standards, including without limitation ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, FASB Statements 128, 133, as amended, 149 or 150, EITF 00-19, 01-6, 03-6 or 07-5, ASC Topic 480, Distinguishing Liabilities from Equity, ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity (or any successor issue statements) or under the Financial Accounting Standards Board’s Liabilities & Equity Project;

 

(b)   other than the exercise of any rights under the Agreement or this Confirmation, it will not knowingly take any action or refrain from taking any action that would limit or in any way adversely affect Dealer’s rights under the Agreement or this Confirmation in any material respect;

 

(c)   it shall not take any action to reduce or decrease the number of Shares held in its treasury below the sum of (i) the Number of Shares plus (ii) the total number of Shares issuable upon settlement (whether by net share settlement or otherwise) of any other transaction or agreement to which it is a party;

 

(d)   it will not repurchase any Shares if, immediately following such repurchase, the Number of Shares would be equal to or greater than 4.5% of the number of then-outstanding Shares and it will notify Dealer promptly (but in any event within 2 Scheduled Trading Days) upon the announcement or consummation of any repurchase of Shares in an amount that, taken together with the amount of all repurchases since the date of the last such notice (or, if no such notice has been given, since the Trade Date), exceeds 0.5% of the number of then-outstanding Shares;

 

(e)   it is not entering into this Confirmation to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for Shares);

 

(f)    neither it nor any of its officers, directors, managers or similar persons is aware of any material non-public information regarding itself or the Shares; it is entering into this Confirmation and will provide any Settlement Notice in good faith and not as part of a plan or scheme to evade compliance with Rule 10b-5 or any other provision of the federal securities laws; it has not entered into or altered any hedging transaction relating to the Shares corresponding to or offsetting the Transaction; and it has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Confirmation under Rule 10b5-1 under the Exchange Act (“Rule 10b5-1”);

 

(g)   [Reserved];

 

(h)   to Counterparty’s actual knowledge, no state or local (including non-U.S. jurisdictions) law, rule, regulation or regulatory order applicable to the Shares would give rise to any reporting, consent, registration or other requirement (including without limitation a requirement to obtain prior approval from any person or entity) as a result of Dealer or its affiliates owning or holding (however defined) Shares, other than Sections 13 and 16 under the Exchange Act; provided that Counterparty makes no representation or warranty regarding any such requirement that is applicable generally to the ownership of equity securities by Dealer or its affiliates solely as a result of their being a financial institution or a broker-dealer;

 

(i)    as of the Trade Date and as of the date of any payment or delivery by Counterparty or Dealer hereunder, it is not and will not be “insolvent” (as such term is defined under Section 101(32) of the Bankruptcy Code);

 

(j)    it is not, and after giving effect to the transactions contemplated hereby will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended;

 

(k)   it: (i) is an “institutional account” as defined in FINRA Rule 4512(c); and (ii) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities, and will exercise independent judgment in evaluating any recommendations of Dealer or its associated persons; and

 

(l)    IT UNDERSTANDS THAT THE TRANSACTION IS SUBJECT TO COMPLEX RISKS WHICH MAY ARISE WITHOUT WARNING AND MAY AT TIMES BE VOLATILE AND THAT LOSSES MAY OCCUR

 

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QUICKLY AND IN UNANTICIPATED MAGNITUDE AND IS WILLING TO ACCEPT SUCH TERMS AND CONDITIONS AND ASSUME (FINANCIALLY AND OTHERWISE) SUCH RISKS.

 

6.                                      Additional Covenants of Counterparty.

 

(a)   Counterparty acknowledges and agrees that any Shares delivered by Counterparty to Dealer on any Settlement Date or Net Share Settlement Date will be (i) held in Counterparty’s treasury until delivery (unless otherwise agreed by the parties), (ii) approved for listing or quotation on the Exchange, subject to official notice of issuance, and (iii) registered under the Exchange Act, and, when delivered by Dealer (or an affiliate of Dealer) to securities lenders from whom Dealer (or an affiliate of Dealer) borrowed Shares in connection with hedging its exposure to the Transaction, will be freely saleable without further registration or other restrictions under the Securities Act in the hands of those securities lenders, irrespective of whether any such stock loan is effected by Dealer or an affiliate of Dealer.  Accordingly, Counterparty agrees that any Shares so delivered will not bear a restrictive legend and will be deposited in, and the delivery thereof shall be effected through the facilities of, the Clearance System.  In addition, Counterparty represents and agrees that any such Shares shall be, upon such delivery, duly and validly authorized, issued and outstanding, fully paid and nonassessable, free of any lien, charge, claim or other encumbrance.

 

(b)   Counterparty agrees that Counterparty shall not enter into or alter any hedging transaction relating to the Shares corresponding to or offsetting the Transaction. Without limiting the generality of the provisions set forth opposite the caption “Unwind Activities” in Section 2 of this Confirmation, Counterparty will not, during any Unwind Period, seek to control or influence Dealer’s decision to make any “purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under or in connection with the Transaction entered into under this Confirmation, including, without limitation, Dealer’s decision to enter into any hedging transactions.

 

(c)   Counterparty acknowledges and agrees that any amendment, modification, waiver or termination of this Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c).  Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment, modification or waiver shall be made at any time at which Counterparty or any officer, director, manager or similar person of Counterparty is aware of any material non-public information regarding Counterparty or the Shares.

 

(d)   Counterparty will, within three Exchange Business Days, notify Dealer upon obtaining knowledge of the occurrence of any event that would constitute an Event of Default.

 

(e)   Neither Counterparty nor any of its “affiliated purchasers” (as defined by Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall take any action that would cause any purchases of Shares by Dealer. or any of its Affiliates in connection with any Cash Settlement or Net Share Settlement not to meet the requirements of the safe harbor provided by Rule 10b-18 if such purchases were made by Counterparty. Without limiting the generality of the foregoing, during any Unwind Period, except with the prior written consent of Dealer, Counterparty will not, and will cause its affiliated purchasers (as defined in Rule 10b-18) not to, directly or indirectly (including, without limitation, by means of a derivative instrument) purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or announce or commence any tender offer relating to, any Shares (or equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or exchangeable for the Shares. However, the foregoing shall not (a) limit Counterparty’s ability, pursuant to any issuer “plan” (as defined in Rule 10b-18), to re-acquire Shares from employees in connection with such plan or program, (b) limit Counterparty’s ability to withhold Shares to cover tax liabilities associated with such a plan, (c) prohibit any purchases effected by or for an issuer “plan” by an “agent independent of the issuer” (each as defined in Rule 10b-18), (d) otherwise restrict Counterparty’s or any of its affiliates’ ability to repurchase Shares under privately negotiated, off-exchange transactions with any of its employees, officers, directors, affiliates or any third party that will not result in market transactions or (e) limit Counterparty’s ability to grant stock and options to “affiliated purchasers” (as defined in Rule 10b-18) or the ability of such affiliated purchasers to acquire such stock or options in connection with any issuer “plan” (as defined in Rule 10b-18) for directors, officers and employees or any agreements with respect to any such plan for directors, officers or employees of any entities that are acquisition targets of Counterparty, and in connection with any such purchase under (a) through (e) above, Counterparty will be deemed to represent to Dealer that such purchase does not constitute a “Rule 10b-18 purchase” (as defined in Rule 10b-18).

 

14

 

(f)    Counterparty will not engage in any distribution (as defined in Regulation M promulgated under the Exchange Act (“Regulation M”)) that would cause a “restricted period” (as defined in Regulation M) to occur with respect to the Shares during any Unwind Period.

 

(g)   Counterparty shall: (i) prior to the opening of trading in the Shares on any day on which Counterparty makes, or expects to be made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction, notify Dealer of such public announcement; (ii) promptly notify Dealer following any such announcement that such announcement has been made; (iii) promptly (but in any event prior to the next opening of the regular trading session on the Exchange) provide Dealer with written notice specifying (A) Counterparty’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months immediately preceding the announcement date for the Merger Transaction that were not effected through Dealer or its affiliates and (B) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding such announcement date. Counterparty acknowledges that any such notice may result in a Regulatory Disruption, a Trading Condition or an Early Valuation or may affect the length of any ongoing Unwind Period; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 6(c) above. Such written notice shall be deemed to be a certification by Counterparty to Dealer that such information is true and correct. In addition, Counterparty shall promptly notify Dealer of the earlier to occur of the completion of such transaction and the completion of the vote by target shareholders. “Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

 

7.             Termination on Bankruptcy.  The parties hereto agree that, notwithstanding anything to the contrary in the Agreement or the Equity Definitions, the Transaction constitutes a contract to issue a security of Counterparty as contemplated by Section 365(c)(2) of the Bankruptcy Code and that the Transaction and the obligations and rights of Counterparty and Dealer (except for any liability as a result of breach of any of the representations or warranties provided by Counterparty in Section 4 or Section 5 above) shall immediately terminate, without the necessity of any notice, payment (whether directly, by netting or otherwise) or other action by Counterparty or Dealer, if, on or prior to the final Settlement Date, Cash Settlement Payment Date or Net Share Settlement Date, an Insolvency Filing occurs or any other proceeding commences with respect to Counterparty under the Bankruptcy Code (a “Bankruptcy Termination Event”). The parties hereto agree and acknowledge that (i) at any point prior to any Insolvency Filing in respect of the Issuer, Counterparty shall have the unilateral right to elect Physical Settlement of the Transaction pursuant to the provisions set forth above under the heading “Settlement Terms”; and (ii) the Transaction shall automatically terminate on the date of any Insolvency Filing pursuant to the provisions set forth in the immediately preceding sentence only if and to the extent that Counterparty failed to elect Physical Settlement of the Transaction pursuant to the provisions set forth above under the heading Settlement Terms prior to the relevant Insolvency Filing.

 

8.             Additional Provisions.  (a)  Dealer acknowledges and agrees that Counterparty’s obligations under the Transaction are not secured by any collateral and that this Confirmation is not intended to convey to Dealer rights with respect to the transactions contemplated hereby that are senior to the claims of common stockholders in any U.S. bankruptcy proceedings of Counterparty; provided that nothing herein shall limit or shall be deemed to limit Dealer’s right to pursue remedies in the event of a breach by Counterparty of its obligations and agreements with respect to this Confirmation or the Agreement; provided further that nothing herein shall limit or shall be deemed to limit Dealer’s rights in respect of any transaction other than the Transaction.

 

(b)   The parties hereto intend for:

 

(i)            the Transaction to be a “securities contract” as defined in Section 741(7) of the Bankruptcy Code, and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(27), 362(o), 546(e), 546(j), 555 and 561 of the Bankruptcy Code;

 

(ii)           the rights given to Dealer pursuant to “Early Valuation” in Section 2 above to constitute “contractual rights” to cause the liquidation of a “securities contract” and to set off mutual debts and claims in connection with a “securities contract”, as such terms are used in Sections 555 and 362(b)(6) of the Bankruptcy Code;

 

15

 

(iii)          any cash, securities or other property provided as performance assurance, credit support or collateral with respect to the Transaction to constitute “margin payments” and “transfers” under a “securities contract” as defined in the Bankruptcy Code;

 

(iv)          all payments for, under or in connection with the Transaction, all payments for Shares and the transfer of Shares to constitute “settlement payments” and “transfers” under a “securities contract” as defined in the Bankruptcy Code; and

 

(v)           any or all obligations that either party has with respect to this Confirmation or the Agreement to constitute property held by or due from such party to margin, guaranty or settle obligations of the other party with respect to the transactions under the Agreement (including the Transaction) or any other agreement between such parties.

 

(c)   Notwithstanding any other provision of the Agreement or this Confirmation, in no event will Counterparty be required to deliver in the aggregate in respect of all Settlement Dates, Net Share Settlement Dates or other dates on which Shares are delivered in respect of any amount owed under this Agreement a number of Shares greater than (i) two times the Number of Shares minus (ii) the aggregate number of Shares delivered by Counterparty to Dealer under the applicable Transaction prior to such Settlement Date (as adjusted for stock splits and similar events) (the “Capped Number”). Counterparty represents and warrants to Dealer (which representation and warranty shall be deemed to be repeated on each day that the Transaction is outstanding) that the Capped Number is equal to or less than the number of Shares held in its treasury that are not reserved for future issuance in connection with transactions in the Shares (other than the Transaction) on the date of the determination of the Capped Number (such Shares, the “Available Shares”). In the event Counterparty shall not have delivered the full number of Shares otherwise deliverable as a result of this Section 8(c) (the resulting deficit, the “Deficit Shares”), Counterparty shall be continually obligated to deliver Shares, from time to time until the full number of Deficit Shares have been delivered pursuant to this paragraph, when, and to the extent that, (A) Shares are repurchased, acquired or otherwise received by Counterparty or any of its subsidiaries after the Trade Date (whether or not in exchange for cash, fair value or any other consideration), (B) Shares held in Counterparty’s treasury that are reserved for delivery in respect of other transactions prior to such date which prior to the relevant date become no longer so reserved and (C) Counterparty additionally authorizes any unissued Shares that are not reserved for other transactions (such events as set forth in clauses (A), (B) and (C) above, collectively, the “Share Issuance Events”). Counterparty shall promptly notify Dealer of the occurrence of any of the Share Issuance Events (including the number of Shares subject to clause (A), (B) or (C) and the corresponding number of Shares to be delivered) and, as promptly as reasonably practicable, deliver such Shares thereafter. Counterparty shall not, until Counterparty’s obligations under the Transaction have been satisfied in full, use any Shares that become available for potential delivery to Dealer as a result of any Share Issuance Event for the settlement or satisfaction of any transaction or obligation other than the Transaction or reserve any such Shares for future issuance for any purpose other than to satisfy Counterparty’s obligations to Dealer under the Transaction.

 

(d)   The parties intend for this Confirmation to constitute a “Contract” as described in the letter dated October 6, 2003 submitted on behalf of Goldman, Sachs & Co. to Paula Dubberly of the staff of the Securities and Exchange Commission (the “Staff”) to which the Staff responded in an interpretive letter dated October 9, 2003.

 

(e)   The parties intend for this Transaction (taking into account purchases of Shares in connection with any Cash Settlement or Net Share Settlement) to comply with the requirements of Rule 10b5-1(c)(1)(i)(A) under the Exchange Act and for this Confirmation to constitute a binding contract or instruction satisfying the requirements of 10b5-1(c) and to be interpreted to comply with the requirements of Rule 10b5-1(c).

 

(f)    Notwithstanding any provisions of the Agreement, all communications relating to the Transaction or the Agreement shall be transmitted exclusively through Dealer at 200 West Street, New York, New York 10282-2198, Telephone No. (212) 902-1981, Facsimile No. (212) 428-1980/1983.

 

(g)   For the purpose of Sections 4(a)(i) and (ii) of the Agreement, each party agrees to deliver a complete and accurate duly executed United States Internal Revenue Service Form W-9 (or successor thereto) to the other party upon (1) execution of this Confirmation, (2) promptly upon reasonable request of the other party, and (3) promptly upon learning that any form or other document previously provided has become obsolete or incorrect.

 

16

 

(h)   The parties agree that the definitions and provisions contained in the Attachment to the ISDA 2012 FATCA Protocol as published by the International Swaps and Derivatives Association, Inc. on August 15, 2012 and available at www.isda.org, are incorporated into and apply to the Agreement with respect to this Transaction as if set forth in full therein.

 

(i)    To the extent that either party to the Agreement with respect to this Transaction is not an adhering party to the ISDA 2015 Section 871(m) Protocol published by the International Swaps and Derivatives Association, Inc. on November 2, 2015 and available at www.isda.org (the “871(m) Protocol”), the parties agree that the definitions, provisions and amendments contained in the Attachment to the 871(m) Protocol are hereby incorporated by reference in, and shall form part of, the Agreement with respect to this Transaction as if set forth in full herein.  The parties further agree that, solely for purposes of applying such definitions, provisions and amendments to the Agreement with respect to this Transaction, references in the 871(m) Protocol to “each Covered Master Agreement” will be deemed references to the Agreement, and references to the “Implementation Date” shall be deemed to be references to the Trade Date of this Transaction.

 

9.             Indemnification.  Counterparty agrees to indemnify and hold harmless Dealer, its affiliates and its assignees and their respective directors, officers, employees, agents and controlling persons (Dealer and each such person being an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities (or actions in respect thereof), joint or several, incurred by or asserted against such Indemnified Party arising out of, in connection with, or relating to, the execution or delivery of this Confirmation, the performance by the parties hereto of their respective obligations under the Transaction, any breach of any covenant or representation made by Counterparty in this Confirmation or the Agreement or the consummation of the transactions contemplated hereby.  Counterparty shall not be liable for any losses, claims, damages or liabilities (or expenses relating thereto) of any Indemnified Party that result from the bad faith, gross negligence, or willful misconduct of such Indemnified Party (in each case, as conclusively determined by a court of competent jurisdiction in a final and non-appealable judgment).  If for any reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any Indemnified Party, then Counterparty shall contribute, to the maximum extent permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or liability.  In addition, Counterparty will reimburse any Indemnified Party for all third party expenses (including reasonable counsel fees and expenses) as they are incurred in connection with the investigation of, preparation for or defense or settlement of any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding is initiated or brought by or on behalf of Counterparty.  Counterparty also agrees that no Indemnified Party shall have any liability to Counterparty or any person asserting claims on behalf of or in right of Counterparty in connection with or as a result of any matter referred to in this Confirmation except to the extent that any losses, claims, damages, liabilities or expenses incurred by Counterparty result from the gross negligence, willful misconduct or bad faith of the Indemnified Party.  The provisions of this Section 9 shall survive the completion of the Transaction contemplated by this Confirmation and any assignment and/or delegation of the Transaction made pursuant to the Agreement or this Confirmation shall inure to the benefit of any permitted assignee of Dealer.

 

10.          Beneficial Ownership.  Notwithstanding anything to the contrary in the Agreement or this Confirmation, in no event shall Dealer be entitled to receive, or be deemed to receive, Shares to the extent that, upon such receipt of such Shares, (i) the “beneficial ownership” (within the meaning of Section 13 of the Exchange Act and the rules promulgated thereunder) of Shares by Dealer, any of its affiliates’ business units subject to aggregation with Dealer for purposes of the “beneficial ownership” test under Section 13 of the Exchange Act and all persons who may form a “group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Dealer with respect to “beneficial ownership” of any Shares (collectively, “Dealer Group”) would be equal to or greater than 4.5% of the outstanding Shares (an “Excess Section 13 Ownership Position”), (ii) Dealer’s ultimate parent entity would purchase, acquire or take (as such terms are used in the Federal Power Act) at any time on the relevant date in excess of 7.5% of the outstanding Shares (an “Excess FPA Ownership Position”), (iii) Dealer would hold 5% or more of the number of Shares or 5% or more of Counterparty’s outstanding voting power as of the Trade Date (an “Excess Exchange Ownership Position”) or (iv) Dealer, Dealer Group or any person whose ownership position would be aggregated with that of Dealer or Dealer Group (Dealer, Dealer Group or any such person, a “Dealer Person”) under any state or federal bank holding company or banking laws, or any federal, state or local laws, regulations or regulatory orders applicable to ownership of Shares (“Applicable Laws”), would own, beneficially own, constructively own, control, hold the power to vote or otherwise meet a relevant definition of ownership in excess of a number of Shares equal to

 

17

 

(x) the lesser of (A) the maximum number of Shares that would be permitted under Applicable Laws and (B) the number of Shares that would give rise to reporting or registration obligations or other requirements (including obtaining prior approval by a state or federal regulator) of a Dealer Person under Applicable Laws and with respect to which such requirements have not been met or the relevant approval has not been received or that would give rise to any consequences under the constitutive documents of Counterparty or any contract or agreement to which Counterparty is a party, in each case minus (y) 1% of the number of Shares outstanding on the date of determination (such condition described in clause (iv), an “Excess Regulatory Ownership Position”).  If any delivery owed to Dealer hereunder is not made, in whole or in part, as a result of this provision, (i) Counterparty’s obligation to make such delivery shall not be extinguished and Counterparty shall make such delivery as promptly as practicable after, but in no event later than one Exchange Business Day after, Dealer gives notice to Counterparty that such delivery would not result in (x) Dealer Group directly or indirectly so beneficially owning in excess of 4.5% of the outstanding Shares and (y) the occurrence of an Excess FPA Ownership Position, an Excess Exchange Ownership Position or an Excess Regulatory Ownership Position and (ii) if such delivery relates to a Physical Settlement, notwithstanding anything to the contrary herein, Dealer shall not be obligated to satisfy the portion of its payment obligation corresponding to any Shares required to be so delivered until the date Counterparty makes such delivery.

 

11.          Non-Confidentiality.  The parties hereby agree that (i) effective from the date of commencement of discussions concerning the Transaction, Counterparty and each of its employees, representatives, or other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all materials of any kind, including opinions or other tax analyses, provided by Dealer and its affiliates to Counterparty relating to such tax treatment and tax structure; provided that the foregoing does not constitute an authorization to disclose the identity of Dealer or its affiliates, agents or advisers, or, except to the extent relating to such tax structure or tax treatment, any specific pricing terms or commercial or financial information, and (ii) Dealer does not assert any claim of proprietary ownership in respect of any description contained herein or therein relating to the use of any entities, plans or arrangements to give rise to a particular United States federal income tax treatment for Counterparty.

 

12.          Restricted Shares.  If Counterparty is unable to comply with the covenant of Counterparty contained in Section 6(a) above or Dealer otherwise determines in its reasonable opinion that any Shares to be delivered to Dealer by Counterparty may not be freely returned by Dealer to securities lenders as described in the covenant of Counterparty contained in Section 6(a) above, then delivery of any such Settlement Shares (the “Unregistered Settlement Shares”) shall be effected pursuant to Annex A hereto, unless waived by Dealer.

 

13.          Governing Law.  Notwithstanding anything to the contrary in the Agreement, the Agreement, this Confirmation and all matters arising in connection with the Agreement and this Confirmation shall be governed by, and construed and enforced in accordance with, the laws of the State of New York (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law).

 

14.                               Set-Off.

 

(a)           The parties agree that upon the occurrence of an Event of Default or Termination Event with respect to a party who is the Defaulting Party or the Affected Party (“X”), the other party (“Y”) will have the right (but not be obliged) without prior notice to X or any other person to set-off or apply any obligation of X owed to Y (or any Affiliate of Y) (whether or not matured or contingent and whether or not arising under the Agreement, and regardless of the currency, place of payment or booking office of the obligation) against any obligation of Y (or any Affiliate of Y) owed to X (whether or not matured or contingent and whether or not arising under the Agreement, and regardless of the currency, place of payment or booking office of the obligation).  Y will give notice to the other party of any set-off effected under this Section 14.

 

Amounts (or the relevant portion of such amounts) subject to set-off may be converted by Y into the Termination Currency at the rate of exchange at which such party would be able, acting in a reasonable manner and in good faith, to purchase the relevant amount of such currency.  If any obligation is unascertained, Y may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained.  Nothing in this Section 14 shall be effective to create a charge or other security interest.  This Section 14 shall be without prejudice and in addition to any right of set-off, combination of accounts,

 

18

 

lien or other right to which any party is at any time otherwise entitled (whether by operation of law, contract or otherwise).

 

(b)           Notwithstanding anything to the contrary in the foregoing, Dealer agrees not to set off or net amounts due from Counterparty with respect to any Transaction against amounts due from Dealer to Counterparty with respect to contracts or instruments that are not Equity Contracts.  “Equity Contract” means any transaction or instrument that does not convey to Dealer rights, or the ability to assert claims, that are senior to the rights and claims of common stockholders in the event of Counterparty’s bankruptcy.

 

15.          Staggered Settlement.  Notwithstanding anything to the contrary herein, Dealer may, by prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the aggregate number of Shares and other securities so delivered on or prior to such Original Delivery Date is equal to the number required to be delivered on such Original Delivery Date.

 

16.          Jurisdiction. Section 13(b) of the Agreement is deleted in its entirety and replaced by the following:

 

“Each party hereby irrevocably and unconditionally submits for itself and its property in any suit, legal action or proceeding relating to this Agreement and/or any Transaction, or for recognition and enforcement of any judgment in respect thereof, (each, “Proceedings”) to the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in New York County, the courts of the United States of America for the Southern District of New York and appellate courts from any thereof. Nothing in the Confirmation or this Agreement precludes either party from bringing Proceedings in any other jurisdiction if (A) the courts of the State of New York or the United States of America for the Southern District of New York lack jurisdiction over the parties or the subject matter of the Proceedings or declines to accept the Proceedings on the grounds of lacking such jurisdiction; (B) the Proceedings are commenced by a party for the purpose of enforcing against the other party’s property, assets or estate any decision or judgment rendered by any court in which Proceedings may be brought as provided hereunder; (C) the Proceedings are commenced to appeal any such court’s decision or judgment to any higher court with competent appellate jurisdiction over that court’s decisions or judgments if that higher court is located outside the State of New York or Borough of Manhattan, such as a federal court of appeals or the U.S. Supreme Court; or (D) any suit, action or proceeding has been commenced in another jurisdiction by or against the other party or against its property, assets or estate and, in order to exercise or protect its rights, interests or remedies under this Agreement or the Confirmation, the party (1) joins, files a claim, or takes any other action, in any such suit, action or proceeding, or (2) otherwise commences any Proceeding in that other jurisdiction as the result of that other suit, action or proceeding having commenced in that other jurisdiction.”

 

17.                               U.S. Stay Regulations.

 

(1) Recognition of the U.S. Special Resolution Regimes

 

(a)           In the event that Dealer becomes subject to a proceeding under (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder or (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder (a “U.S. Special Resolution Regime”), the transfer from Dealer of this Confirmation, and any interest and obligation in or under, and any property securing, this Confirmation, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Confirmation, and any interest and obligation in or under, and any property securing, this Confirmation were governed by the laws of the United States or a state of the United States.

 

(b)           In the event that Dealer or an Affiliate becomes subject to a proceeding under a U.S. Special Resolution Regime, any Default Rights (as defined in 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable (“Default Right”)) under this Confirmation that may be exercised against Dealer are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Confirmation were governed by the laws of the United States or a state of the United States.

 

(2) Limitation on Exercise of Certain Default Rights Related to an Affiliate’s Entry Into Insolvency Proceedings.

 

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Notwithstanding anything to the contrary in this Confirmation, the Parties expressly acknowledge and agree that:

 

(a)           Counterparty shall not be permitted to exercise any Default Right with respect to this Confirmation or any Affiliate Credit Enhancement that is related, directly or indirectly, to an Affiliate of Dealer becoming subject to receivership, insolvency, liquidation, resolution, or similar proceeding (an “Insolvency Proceeding”), except to the extent that the exercise of such Default Right would be permitted under the provisions of 12 C.F.R. 252.84, 12 C.F.R. 47.5 or 12 C.F.R. 382.4, as applicable; and

 

(b)           Nothing in this Confirmation shall prohibit the transfer of any Affiliate Credit Enhancement, any interest or obligation in or under such Affiliate Credit Enhancement, or any property securing such Affiliate Credit Enhancement, to a transferee upon or following an Affiliate of Dealer becoming subject to an Insolvency Proceeding, unless the transfer would result in the Counterparty being the beneficiary of such Affiliate Credit Enhancement in violation of any law applicable to the Counterparty.

 

(3) U.S. Protocol

 

If Counterparty has previously adhered to, or subsequently adheres to, the ISDA 2018 U.S. Resolution Stay Protocol as published by the International Swaps and Derivatives Association, Inc. as of July 31, 2018 (the “ISDA U.S. Protocol”), the terms of such protocol shall be incorporated into and form a part of this Confirmation and the terms of the ISDA U.S. Protocol shall supersede and replace the terms of this Section 26. For purposes of incorporating the ISDA U.S. Protocol, Dealer shall be deemed to be a Regulated Entity, Counterparty shall be deemed to be an Adhering Party, and this Confirmation shall be deemed to be a Protocol Covered Agreement. Capitalized terms used but not defined in this paragraph shall have the meanings given to them in the ISDA U.S. Protocol.

 

(4) Pre-existing In-Scope Agreements

 

Dealer and Counterparty agree that to the extent there are any outstanding “in-scope QFCs,” as defined in 12 C.F.R. § 252.82(d), that are not excluded under 12 C.F.R. § 252.88, between Dealer and Counterparty that do not otherwise comply with the requirements of 12 C.F.R. § 252.2, 252.81—8 (each such agreement, a “Preexisting In-Scope Agreement”), then each such Preexisting In-Scope Agreement is hereby amended to include the foregoing provisions in this Section 26, with references to “this Confirmation” being understood to be references to the applicable Preexisting In-Scope Agreement.

 

For purposes of this Section 26:

 

“Affiliate” is defined in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

 

“Credit Enhancement” means any credit enhancement or credit support arrangement in support of the obligations of Dealer under or with respect to this Confirmation, including any guarantee, collateral arrangement (including any pledge, charge, mortgage or other security interest in collateral or title transfer arrangement), trust or similar arrangement, letter of credit, transfer of margin or any similar arrangement.

 

18.          Delivery of Cash.  For the avoidance of doubt, nothing in this Confirmation or the Agreement shall be interpreted as requiring Counterparty to deliver cash in respect of the settlement of the Transaction hereunder, except in circumstances where cash settlement is within Counterparty’s control (including, without limitation, where Counterparty elects to deliver or receive cash or fails timely to elect to deliver Shares in respect of such settlement). For the avoidance of doubt, the preceding sentence shall not be construed as limiting (i) the Private Placement Procedures set forth in Annex A hereto, (ii) any damages that may be payable by Counterparty as a result of breach of this Confirmation or (iii) Dealer’s rights hereunder in respect of a Nationalization, Insolvency or Merger Event in respect of which the Shares have changed into cash or any other property or the right to receive cash or any other property.

 

19.          Counterparts.  This Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Confirmation by signing and delivering one or more counterparts.

 

20

 

Counterparty hereby agrees (a) to check this Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of the agreement between Dealer and Counterparty with respect to the Transaction, by manually signing this Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Dealer.

 

	
 
    	
Yours faithfully,
    
	
 
    	
 
    
	
 
    	
GOLDMAN   SACHS & CO. LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael Voris
    
	
 
    	
 
    	
Name: Michael Voris
    
	
 
    	
 
    	
Title: Managing Director
    

 

	
Agreed and accepted by:
    	
 
    
	
 
    	
 
    
	
Eversource   Energy
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ John M. Moreira
    	
 
    
	
 
    	
Name: John M. Moreira
    	
 
    
	
 
    	
Title: Senior Vice President and Treasurer
    	
 
    

 

 

ANNEX A

 

PRIVATE PLACEMENT PROCEDURES

 

If Counterparty delivers Unregistered Settlement Shares pursuant to Section 12 above (a “Private Placement Settlement”), then:

 

(a)         all Unregistered Settlement Shares shall be delivered to Dealer (or any affiliate of Dealer designated by Dealer) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof;

 

(b)         as of or prior to the date of delivery, Dealer and any potential purchaser of any such shares from Dealer (or any affiliate of Dealer designated by Dealer) identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them);

 

(c)          as of the date of delivery, Counterparty shall enter into an agreement (a “Private Placement Agreement”) with Dealer (or any affiliate of Dealer designated by Dealer) in connection with the private placement of such shares by Counterparty to Dealer (or any such affiliate) and the private resale of such shares by Dealer (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance commercially reasonably satisfactory to Dealer, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements customary for private placements of equity securities, in form and substance satisfactory to Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the Transaction that are necessary, in its reasonable judgment, to compensate Dealer for any discount from the public market price of the Shares incurred on the sale of the Shares in a private placement); and

 

(d)         in connection with the private placement of such shares by Counterparty to Dealer (or any such affiliate) and the private resale of such shares by Dealer (or any such affiliate), Counterparty shall, if so requested by Dealer, prepare, in cooperation with Dealer, a private placement memorandum in form and substance reasonably satisfactory to Dealer.

 

In the case of a Private Placement Settlement, Dealer shall, in good faith and in its commercially reasonable discretion, adjust the amount of Unregistered Settlement Shares to be delivered to Dealer hereunder in a commercially reasonable manner to reflect the fact that such Unregistered Settlement Shares may not be freely returned to securities lenders by Dealer and may only be saleable by Dealer at a discount to reflect the lack of liquidity in Unregistered Settlement Shares.

 

If Counterparty delivers any Unregistered Settlement Shares in respect of the Transaction, Counterparty agrees that (i) such Shares may be transferred by and among Dealer and its affiliates and (ii) after the minimum “holding period” within the meaning of Rule 144(d) under the Securities Act has elapsed after the applicable Settlement Date, Counterparty shall promptly remove, or cause the transfer agent for the Shares to remove, any legends referring to any transfer restrictions from such Shares upon delivery by Dealer (or such affiliate of Dealer) to Counterparty or such transfer agent of seller’s and broker’s representation letters customarily delivered by Dealer or its affiliates in connection with resales of restricted securities pursuant to Rule 144 under the Securities Act, each without any further requirement for the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other document, any transfer tax stamps or payment of any other amount or any other action by Dealer (or such affiliate of Dealer).

 

 

ANNEX B

 

FORWARD PRICE REDUCTION AMOUNTS

 

	
Forward Price Reduction Date:
    	
 
    	
Forward Price Reduction Amount:
    	
 
    
	
September 19,   2019
    	
 
    	
USD
    	
0.535
    	
 
    
	
December 19,   2019
    	
 
    	
USD
    	
0.535
    	
 
    
	
March 3,   2020
    	
 
    	
USD
    	
0.535
    	
 
    
	
May 19,   2020
    	
 
    	
USD
    	
0.535

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