Document:

Exhibit 4.3

 

SECOND SUPPLEMENTAL INDENTURE FOR
 ADDITIONAL SUBSIDIARY GUARANTEES

 

SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture for Additional Guarantees”), dated as of July 19, 2016, among Allied Home Warranty GP LLC, a Delaware limited liability company (the “Guaranteeing Subsidiary”), a subsidiary of NRG Energy, Inc. (or its permitted successor), a Delaware corporation (the “Company”), the Company, the other Guarantors (as defined in the Indenture referred to herein) and Law Debenture Trust Company of New York, as trustee under the Indenture referred to below (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the “Base Indenture”), dated as of May 23, 2016, between the Company and the Trustee, as amended by a Supplemental Indenture (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), dated as of May 23, 2016, among the Company, the Guarantors named therein and the Trustee, providing for the original issuance of an aggregate principal amount of $1,000,000,000 of 7.250% Senior Notes due 2026 (the “Initial Notes”), and, subject to the terms of the First Supplemental Indenture, future issuances of 7.250% Senior Notes due 2026 (the “Additional Notes,” and, together with the Initial Notes, the “Notes”);

 

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Subsidiary Guarantee”); and

 

WHEREAS, pursuant to Sections 4.10 and 9.01 of the First Supplemental Indenture, the Trustee, the Company and the other Guarantors are authorized to execute and deliver this Supplemental Indenture for Additional Guarantees.

 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

 

1.                                      CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Supplemental Indenture.

 

2.                                      AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby becomes a party to the Supplemental Indenture as a Guarantor and as such will have all the rights and be subject to all the Obligations and agreements of a Guarantor under the Indenture. The Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Subsidiary Guarantee and in the Supplemental Indenture including but not limited to Article 10 thereof.

 

3.                                      NO RECOURSE AGAINST OTHERS. No director, officer, employee, incorporator or stockholder of the Company or any Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture, the Subsidiary Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws.

 

 

4.                                      NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE FOR ADDITIONAL GUARANTEES BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

5.                                      COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture for Additional Guarantees.  Each signed copy shall be an original, but all of them together represent the same agreement.

 

6.                                      EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof.

 

7.                                      THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture for Additional Guarantees or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and the Company.

 

8.                                      RATIFICATION OF INDENTURE; SUPPLEMENTAL INDENTURE FOR ADDITIONAL GUARANTEES PART OF INDENTURE.  Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture for Additional Guarantees shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall by bound hereby.

 

[Signature Pages Follow]

 

2

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture for Additional Guarantees to be duly executed and attested, all as of the date first above written.

 

	
 
    	
GUARANTEEING SUBSIDIARY:
    
	
 
    	
 
    
	
 
    	
ALLIED HOME WARRANTY GP   LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deborah R. Fry
    
	
 
    	
 
    	
Name: 
    	
Deborah R. Fry
    
	
 
    	
 
    	
Title:
    	
Assistant Secretary
    

 

Signature Page to Second Supplemental Indenture

 

 

	
 
    	
ISSUER:
    
	
 
    	
 
    
	
 
    	
NRG ENERGY, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian Curci
    
	
 
    	
 
    	
Name: 
    	
Brian Curci
    
	
 
    	
 
    	
Title:
    	
Corporate Secretary
    
	
 
    	
 
    
	
 
    	
EXISTING GUARANTORS:
    
	
 
    	
 
    
	
 
    	
ACE ENERGY, INC.
    
	
 
    	
ALLIED WARRANTY LLC
    
	
 
    	
ARTHUR KILL POWER LLC
    
	
 
    	
ASTORIA GAS TURBINE   POWER LLC
    
	
 
    	
BAYOU COVE PEAKING   POWER, LLC
    
	
 
    	
BIDURENERGY, INC.
    
	
 
    	
CABRILLO POWER I LLC
    
	
 
    	
CABRILLO POWER II LLC
    
	
 
    	
CARBON MANAGEMENT   SOLUTIONS LLC
    
	
 
    	
CIRRO ENERGY   SERVICES, INC.
    
	
 
    	
CIRRO GROUP, INC.
    
	
 
    	
CLEAN EDGE ENERGY LLC
    
	
 
    	
CONEMAUGH POWER LLC
    
	
 
    	
CONNECTICUT JET POWER   LLC
    
	
 
    	
COTTONWOOD DEVELOPMENT   LLC
    
	
 
    	
COTTONWOOD GENERATING   PARTNERS I LLC
    
	
 
    	
COTTONWOOD GENERATING   PARTNERS II LLC
    
	
 
    	
COTTONWOOD GENERATING   PARTNERS III LLC
    
	
 
    	
DEVON POWER LLC
    
	
 
    	
DUNKIRK POWER LLC
    
	
 
    	
EASTERN SIERRA ENERGY   COMPANY LLC
    
	
 
    	
EL SEGUNDO POWER LLC
    
	
 
    	
EL SEGUNDO POWER II LLC
    
	
 
    	
ENERGY ALTERNATIVES   WHOLESALE, LLC
    
	
 
    	
ENERGY CHOICE SOLUTIONS   LLC
    
	
 
    	
ENERGY PLUS HOLDINGS   LLC
    
	
 
    	
ENERGY PLUS NATURAL GAS   LLC
    
	
 
    	
EVERYTHING ENERGY LLC
    
	
 
    	
FORWARD HOME SECURITY,   LLC
    
	
 
    	
GCP FUNDING COMPANY,   LLC
    
	
 
    	
GREEN MOUNTAIN ENERGY   COMPANY
    
	
 
    	
GREGORY PARTNERS, LLC
    
					

 

Signature Page to Second Supplemental Indenture

 

 

	
 
    	
GREGORY POWER PARTNERS   LLC
    
	
 
    	
HUNTLEY POWER LLC
    
	
 
    	
INDEPENDENCE ENERGY   ALLIANCE LLC
    
	
 
    	
INDEPENDENCE ENERGY   GROUP LLC
    
	
 
    	
INDEPENDENCE ENERGY   NATURAL GAS LLC
    
	
 
    	
INDIAN RIVER OPERATIONS   INC.
    
	
 
    	
INDIAN RIVER POWER LLC
    
	
 
    	
KEYSTONE POWER LLC
    
	
 
    	
LANGFORD WIND POWER,   LLC
    
	
 
    	
LOUISIANA GENERATING   LLC
    
	
 
    	
MERIDEN GAS TURBINES   LLC
    
	
 
    	
MIDDLETOWN POWER LLC
    
	
 
    	
MONTVILLE POWER LLC
    
	
 
    	
NEO CORPORATION
    
	
 
    	
NEO FREEHOLD-GEN LLC
    
	
 
    	
NEO POWER SERVICES INC.
    
	
 
    	
NEW GENCO GP, LLC
    
	
 
    	
NORWALK POWER LLC
    
	
 
    	
NRG ADVISORY SERVICES   LLC
    
	
 
    	
NRG AFFILIATE SERVICES   INC.
    
	
 
    	
NRG ARTESIAN ENERGY LLC
    
	
 
    	
NRG ARTHUR KILL   OPERATIONS INC.
    
	
 
    	
NRG ASTORIA GAS TURBINE   OPERATIONS INC.
    
	
 
    	
NRG BAYOU COVE LLC
    
	
 
    	
NRG BUSINESS SERVICES   LLC
    
	
 
    	
NRG BUSINESS SOLUTIONS   LLC
    
	
 
    	
NRG CABRILLO POWER   OPERATIONS INC.
    
	
 
    	
NRG CALIFORNIA PEAKER   OPERATIONS LLC
    
	
 
    	
NRG CEDAR BAYOU   DEVELOPMENT COMPANY, LLC
    
	
 
    	
NRG CONNECTED HOME LLC
    
	
 
    	
NRG CONNECTICUT AFFILIATE   SERVICES INC.
    
	
 
    	
NRG CURTAILMENT   SOLUTIONS HOLDINGS LLC
    
	
 
    	
NRG CURTAILMENT   SOLUTIONS, INC.
    
	
 
    	
NRG DEVELOPMENT COMPANY   INC.
    
	
 
    	
NRG DEVON OPERATIONS   INC.
    
	
 
    	
NRG DISPATCH SERVICES   LLC
    
	
 
    	
NRG DISTRIBUTED   GENERATION PR LLC
    
	
 
    	
NRG DUNKIRK OPERATIONS   INC.
    
	
 
    	
NRG ECOKAP HOLDINGS LLC
    
	
 
    	
NRG EL SEGUNDO   OPERATIONS INC.
    
	
 
    	
NRG ENERGY EFFICIENCY-L   LLC
    

 

Signature Page to Second Supplemental Indenture

 

 

	
 
    	
NRG ENERGY EFFICIENCY-P   LLC
    
	
 
    	
NRG ENERGY LABOR   SERVICES LLC
    
	
 
    	
NRG ENERGY SERVICES   GROUP LLC
    
	
 
    	
NRG ENERGY SERVICES   INTERNATIONAL INC.
    
	
 
    	
NRG ENERGY SERVICES LLC
    
	
 
    	
NRG GENERATION   HOLDINGS, INC.
    
	
 
    	
NRG GREENCO LLC
    
	
 
    	
NRG HOME &   BUSINESS SOLUTIONS LLC
    
	
 
    	
NRG HOME SERVICES LLC
    
	
 
    	
NRG HOME SOLUTIONS LLC
    
	
 
    	
NRG HOME SOLUTIONS   PRODUCT LLC
    
	
 
    	
NRG HOMER CITY SERVICES   LLC
    
	
 
    	
NRG HQ DG LLC
    
	
 
    	
NRG HUNTLEY OPERATIONS   INC.
    
	
 
    	
NRG IDENTITY PROTECT   LLC
    
	
 
    	
NRG ILION LP LLC
    
	
 
    	
NRG INTERNATIONAL LLC
    
	
 
    	
NRG MEXTRANS INC.
    
	
 
    	
NRG MIDATLANTIC   AFFILIATE SERVICES INC.
    
	
 
    	
NRG MIDDLETOWN   OPERATIONS INC.
    
	
 
    	
NRG MONTVILLE   OPERATIONS INC.
    
	
 
    	
NRG NEW ROADS HOLDINGS   LLC
    
	
 
    	
NRG NORTH CENTRAL   OPERATIONS INC.
    
	
 
    	
NRG NORTHEAST AFFILIATE   SERVICES INC.
    
	
 
    	
NRG NORWALK HARBOR   OPERATIONS INC.
    
	
 
    	
NRG OPERATING   SERVICES, INC.
    
	
 
    	
NRG OSWEGO HARBOR POWER   OPERATIONS INC.
    
	
 
    	
NRG PACGEN INC.
    
	
 
    	
NRG PORTABLE POWER LLC
    
	
 
    	
NRG POWER MARKETING LLC
    
	
 
    	
NRG RENTER’S PROTECTION   LLC
    
	
 
    	
NRG RETAIL LLC
    
	
 
    	
NRG RETAIL NORTHEAST   LLC
    
	
 
    	
NRG ROCKFORD   ACQUISITION LLC
    
	
 
    	
NRG SAGUARO OPERATIONS   INC.
    
	
 
    	
NRG SECURITY LLC
    
	
 
    	
NRG SERVICES   CORPORATION
    
	
 
    	
NRG SIMPLYSMART   SOLUTIONS LLC
    
	
 
    	
NRG SOUTH CENTRAL   AFFILIATE SERVICES INC.
    
	
 
    	
NRG SOUTH CENTRAL   GENERATING LLC
    
	
 
    	
NRG SOUTH CENTRAL   OPERATIONS INC.
    

 

Signature Page to Second Supplemental Indenture

 

 

	
 
    	
 
    	
 
    
	
 
    	
NRG SPV #1 LLC
    
	
 
    	
NRG TEXAS C&I   SUPPLY LLC
    
	
 
    	
NRG TEXAS GREGORY LLC
    
	
 
    	
NRG TEXAS HOLDING INC.
    
	
 
    	
NRG TEXAS LLC
    
	
 
    	
NRG TEXAS POWER LLC
    
	
 
    	
NRG WARRANTY SERVICES   LLC
    
	
 
    	
NRG WEST COAST LLC
    
	
 
    	
NRG WESTERN AFFILIATE   SERVICES INC.
    
	
 
    	
O’BRIEN   COGENERATION, INC. II
    
	
 
    	
ONSITE   ENERGY, INC.
    
	
 
    	
OSWEGO HARBOR POWER LLC
    
	
 
    	
RE RETAIL RECEIVABLES,   LLC
    
	
 
    	
RELIANT ENERGY   NORTHEAST LLC
    
	
 
    	
RELIANT ENERGY POWER   SUPPLY, LLC
    
	
 
    	
RELIANT ENERGY RETAIL   HOLDINGS, LLC
    
	
 
    	
RELIANT ENERGY RETAIL   SERVICES, LLC
    
	
 
    	
RERH HOLDINGS, LLC
    
	
 
    	
SAGUARO POWER LLC
    
	
 
    	
SOMERSET OPERATIONS   INC.
    
	
 
    	
SOMERSET POWER LLC
    
	
 
    	
TEXAS GENCO FINANCING CORP.
    
	
 
    	
TEXAS GENCO GP, LLC
    
	
 
    	
TEXAS GENCO   HOLDINGS, INC.
    
	
 
    	
TEXAS GENCO OPERATING   SERVICES, LLC
    
	
 
    	
US RETAILERS LLC
    
	
 
    	
VIENNA OPERATIONS INC.
    
	
 
    	
VIENNA POWER LLC
    
	
 
    	
WCP (GENERATION)   HOLDINGS LLC
    
	
 
    	
WEST COAST POWER   LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deborah R. Fry
    
	
 
    	
 
    	
Name:   
    	
Deborah   R. Fry
    
	
 
    	
 
    	
Title:   
    	
Assistant   Secretary
    
						

 

Signature Page to Second Supplemental Indenture

 

 

	
 
    	
NRG CONSTRUCTION LLC
    
	
 
    	
NRG MAINTENANCE   SERVICES LLC
    
	
 
    	
NRG RELIABILITY   SOLUTIONS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Rachel Smith
    
	
 
    	
 
    	
Name:
    	
Rachel Smith
    
	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ENERGY   PROTECTION INSURANCE COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kevin P. Malcarney
    
	
 
    	
 
    	
Name:
    	
Kevin   P. Malcarney
    
	
 
    	
 
    	
Title:
    	
Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
COTTONWOOD   ENERGY COMPANY LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deborah R. Fry
    
	
 
    	
 
    	
Name:
    	
Deborah   R. Fry
    
	
 
    	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
COTTONWOOD   TECHNOLOGY PARTNERS LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deborah R. Fry
    
	
 
    	
 
    	
Name:
    	
Deborah   R. Fry
    
	
 
    	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NRG   ILION LIMITED PARTNERSHIP
    
	
 
    	
By:   NRG Rockford Acquisition LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deborah R. Fry
    
	
 
    	
 
    	
Name:
    	
Deborah   R. Fry
    
	
 
    	
 
    	
Title:
    	
Assistant   Secretary
    

 

Signature Page to Second Supplemental Indenture

 

 

	
 
    	
NRG   SOUTH TEXAS LP
    
	
 
    	
By:   Texas Genco GP, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deborah R. Fry
    
	
 
    	
 
    	
Name:
    	
Deborah   R. Fry
    
	
 
    	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TEXAS   GENCO SERVICES, LP
    
	
 
    	
By:   New Genco GP, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Deborah R. Fry
    
	
 
    	
 
    	
Name:
    	
Deborah.   R. Fry
    
	
 
    	
 
    	
Title:
    	
Assistant   Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TEXAS   GENCO LP, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Christopher O’Hara
    
	
 
    	
 
    	
Name:
    	
Christopher   O’Hara
    
	
 
    	
 
    	
Title:
    	
Manager
    

 

Signature Page to Second Supplemental Indenture

 

 

	
 
    	
LAW DEBENTURE TRUST   COMPANY OF NEW YORK,
    
	
 
    	
as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   James D. Heaney
    
	
 
    	
 
    	
Name:
    	
James   D. Heaney
    
	
 
    	
 
    	
Title:
    	
Managing   Director
    

 

Signature Page to Second Supplemental IndentureExhibit

Exhibit 10.1
Amended and Restated Employee Stock Purchase Plan
(As approved by the stockholders on May 4, 2006 and as amended effective as of May 18, 2016)
The purpose of the Employee Stock Purchase Plan (the “Program”) of Quest Diagnostics Incorporated (the “Corporation”) is to provide to employees an ongoing opportunity to purchase shares of Common Stock of the Corporation, par value $0.01 per share (“Common Stock”).  The Program became effective upon its approval by the holders of stock entitled to vote at the Corporation’s May 4, 2006 Annual Meeting of Stockholders and has subsequently been amended.
1.Administration.  The Program will be administered by the Compensation Committee of the Board of Directors (the “Committee”).  The Committee will have authority to (a) exercise all of the powers granted to it under the Program, (b) construe, interpret and implement the Program, (c) to prescribe, amend and rescind rules and regulations relating to the Program, including rules governing its own operations, (d) to make all determinations necessary or advisable in administering the Program and (e) to correct any defect, supply any omission and reconcile any inconsistency in the Program.  The determination of the Committee on any matters relating to the Program shall be final, binding and conclusive.  No member of the Committee shall be liable for any action or determination made in good faith with respect to the Program.  To the extent permitted by applicable law, the Committee may delegate such responsibilities and powers as it specifies to any employee or employees selected by it. Any action undertaken by an administrator in accordance with the Committee’s delegation of authority shall have the same force and effect as if undertaken directly by the Committee.  Any such delegation may be revoked by the Committee at any time.

2.Eligibility.  Such groups of employees of the Corporation or any subsidiary or other entity as may from time to time be designated by the Committee (“Participating Entity”) will be eligible to participate in the Program, in accordance with such rules as may be prescribed from time to time by the Committee.  No employee can participate in the Program if such employee would, immediately after participating in the Program, own stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Corporation or of its parent or subsidiary corporations.  A person may not participate in the Program unless such person is an “employee” as defined in the instructions to the Form S-8 registration statement under the Securities Act of 1933, as amended (or any successor form) as in effect from time to time.

3.Shares Subject to the Program.  The total number of shares of Common Stock which may be delivered pursuant to the Program will be nine million (9,000,000) shares of Common Stock in the aggregate.  In the event of any stock split, reverse stock split, stock dividend, recapitalization, reorganization, merger, demerger, consolidation, split-up, spin-off, combination or exchange of shares, or any similar change affecting the Common Stock, or in the event the Company pays an extraordinary cash dividend: (i) the number and kind of shares which may be delivered under the Program; (ii) the number and kind of shares subject to outstanding Options (as hereinafter defined); and (iii) the exercise price of outstanding Options shall be appropriately adjusted consistent with such change in such manner as the Committee may deem equitable to prevent substantial dilution or enlargement of the right granted to, or available for, participants.  Except as expressly provided herein, no issuance by the Corporation of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option. The Shares delivered under the Plan may be authorized and unissued shares or shares held in the treasury of the Corporation, including shares purchased by the Corporation (at such time or times and in such manner as it may determine).

4.Participation; Payroll Deductions.  

(a)An eligible employee may participate in the Program by completing the enrollment process specified by the Corporation, including authorizing payroll deductions from the employee’s eligible compensation (as determined from time to time by the Committee).  Payroll deductions authorized by a participating employee will be given effect as soon as practicable after completion of the enrollment process, but may not be retroactive.  

(b)Unless otherwise determined by the Committee, an employee may authorize a payroll deduction at a rate, in whole percentages, of (X) not less than one percent (1%) of the eligible compensation that the employee receives during each payroll period and (Y) not greater than ten percent (10%) of the eligible compensation that the employee receives during each payroll period; provided, however, that employees participating in the Program on June 29 , 2015 shall not be subject to the limitation set forth in clause (X) until such time, if any, as they change the amount of their payroll deduction.    

1

(c)Payroll deductions authorized under the Program shall be held by the Corporation as part of its general funds.  All funds held by the Corporation under the Program may be used for any corporate purpose. Records will be maintained of the payroll deductions of each participating employee.  Participating employees shall not be credited with, or entitled to receive, interest in respect of payroll deductions.

(d)A participating employee may at any time request to stop, increase or decrease his or her payroll deductions by completing a Corporation-specified process.  These requests shall become effective as soon as practicable after completion of the process.  A participating employee shall have no right to withdraw payroll deductions.

(e)If a participating employee ceases to participate in the Program for any reason (including, without limitation, Program ineligibility or termination of employment), then that participating employee’s uninvested payroll deductions shall be refunded as soon as practicable.  

5.Offerings.  

(a)Certain Definitions; Offering; Corporate Contribution 

(1)The Corporation shall make on the last business day of each calendar month, or on such other date or dates as the Committee may determine, an offer to participating employees to purchase shares of Common Stock under the Program.  Each date on which an offer is made is referred to as an “Offer Date.”

(2)The period beginning on the day following an Offer Date and continuing through (and including) the next Offer Date shall be an “Offer Period.”

(3)The payroll deductions for a participating employee made under the Program during an Offer Period shall be the “Employee Contribution” for that Offer Period.

(4)On each Offer Date, for each employee for which there is an Employee Contribution for the Offer Period ending on that Offer Date, the Corporation shall make a “Corporate Contribution” equal to 0.1765 multiplied by the Employee Contribution.

(5)For each participating employee as of any date, the sum of all Employee Contributions plus all Corporate Contributions that have not yet been invested in shares of Common Stock purchased under the Program shall be the participating employee’s “Program Credits” as of that date.   

(6)“Market Price” means, unless the Committee determines otherwise, the closing price of a share of Common Stock on the New York Stock Exchange Composite list (or such other stock exchange as shall be the principal public trading market for the Common Stock) on the relevant date of determination or, if the Common Stock is not traded on such date, the closing price on the New York Stock Exchange Composite list (or such other stock exchange as shall be the principal public trading market for the Common Stock) on the next preceding day on which the Common Stock was traded.

(b) On any Offer Date, if a participating employee’s Program Credits are sufficient to purchase at least one whole share of Common Stock (based on the Market Price on the Offer Date), then that participating employee will be entitled to purchase Common Stock under the Program on that Offer Date and will be granted an option (an “Option”) to purchase as many shares of Common Stock as may be purchased with the participating employee’s Program Credits.   The exercise price for each Option will be the Market Price on the Offer Date.  The participating employee shall be deemed to have exercised the Option as of the Offer Date and shall acquire the Common Stock subject to the Option.      
 
(c)If on an Offer Date a participating employee’s Program Credits are not sufficient to purchase at least one whole share of Common Stock (based on the Market Price on the Offer Date), then that participating employee will not be entitled to purchase Common Stock under the Program on that Offer Date, and the participating employee’s Program Credits will be applied to the purchase of Common Stock in accordance with Section 5(b) on the next Offer Date. 

6.Common Stock Acquired Under Program.  Common Stock purchased by a participating employee under the Program shall be held by a third party agent in an account established for the participating employee.

2

7.Certain Rights.

(a)A participating employee shall not have any of the rights or privileges of a stockholder of the Corporation with respect to shares purchased under the Program unless and until ownership of such shares shall have been appropriately evidenced on the Corporation’s books. 

(b)Rights under the Program are not transferable by a participating employee other than by will or the laws of descent and distribution, and are exercisable during the participating employee’s lifetime only by the participating employee.

(c)Nothing in the Program shall confer upon any employee the right to continue in the employ of the Corporation or any Participating Entity or affect any right which the Corporation or any Participating Entity may have to terminate such employment.

8.Amendment; Termination.  

(a)The Committee may at any time, or from time to time, amend or suspend the Program in any respect, including retroactively to the extent necessary; provided, however that no such action shall be made without shareholder approval if such approval is required under tax or stock exchange rules and regulations.  Upon any such suspension or amendment of the Program, the Committee may in its discretion determine that all payroll deductions pending investment under the Program will be applied under a successor program, if any, or promptly refunded.

(b)The Program and all rights of employees under any offering hereunder shall terminate at the discretion of the Committee or on the day that participating employees become entitled to purchase a number of shares of Common Stock greater than the number of shares of Common Stock remaining available for purposes of the Program; provided, however, if the number of shares of Common Stock so purchasable is greater than the shares of Common Stock remaining available, the available shares of Common Stock shall be allocated by the Committee among such participating employees in such manner as it deems fair.

(c)Upon termination of the Program all payroll deductions pending investment under the Program shall be applied under a successor program, if any, or promptly refunded.

9.Governmental Regulations.  The Corporation’s obligation to sell and deliver shares of Common Stock under the Program is subject to the approval of any governmental authority required for the authorization, issuance, or sale of such stock.

10.Expenses.  The Committee shall determine in its discretion the extent to which costs of administering and carrying out the Program, including the cost of maintaining participant accounts and costs (including brokerage fees) incurred in connection with transfers or sales of shares under the Program, will be borne by participating employees (including those whose employment has terminated).  

11.Miscellaneous.

(a)As a condition to participation by an employee in the Program, the Corporation may withhold from any compensation to which the participating employee may be entitled all amounts necessary to satisfy all federal, state, city or other taxes required to be withheld in connection with the individual’s participation in the Program pursuant to any law or governmental regulation or ruling.

(b)The Program is not intended to qualify as an “employee stock purchase plan” within the meaning of Section 423(b) of the Internal Revenue Code, but is intended to meet the coverage and participation requirements of Sections 423(b)(3) and 423(b)(5) of the Internal Revenue Code and therefore to qualify as a “Stock Purchase Plan” within the meaning of Rule 16b-3 promulgated under the Securities Exchange Act of 1934.

12.Governing Law.  The Program shall be interpreted, construed and administered in accordance with the laws of the State of New Jersey, without giving effect to principles of conflict of laws.

3

Annex I: Certain Supplemental Provisions

This Annex I to the Quest Diagnostics Incorporated Amended and Restated Employee Stock Purchase Plan sets forth supplemental terms and conditions applicable to (i) employees whose employment with the Corporation or another Participating Entity terminated (for any reason) on or prior to May 25, 2015 and (ii) employees and former employees whose accounts under the Program held securities of entities other than the Corporation.
1.Rights on Retirement, Death, or Termination of Employment.

Following retirement or other termination of employment, a participant (or if the participant has died, the representative of the participant’s estate) may elect to have the shares of Common Stock held in the participant’s account under the Program: (i) transferred to a brokerage account designated by the participant; or (ii) sold and the proceeds remitted to the participant.  If the Corporation does not receive a written election relating to the shares in a participant’s account from the participant within 60 days following the date the Corporation notifies the participant of the opportunity to make such election, the participant shall be deemed to have made the election provided for in clause (ii) of the preceding sentence; provided, however, that the Committee may in its discretion establish a different default procedure for participants who fail to make a timely election.  This Part 1 of Annex 1 became effective as of May 25, 2015, including with respect to participants who have retired or whose employment has otherwise terminated prior to such date.

2.Common Stock of Entities Other than the Corporation.  

With respect to the shares of common stock or other securities of entities other than the Corporation held in accounts under the Program, a participant may elect to have the shares or other securities in the account: (i) delivered to the transfer agent for the issuer of such shares or other securities for the participant’s benefit; (ii) transferred to a brokerage account designated by the participant; or (iii) sold and the proceeds remitted to the participant.  If the Corporation does not receive a written election relating to such shares or other securities in a participant’s account from the participant within 60 days following the date the Corporation notifies the participant of the opportunity to make such election, the participant shall be deemed to have made the election provided for in clause (iii) of the preceding sentence; provided, however, that the Committee may in its discretion establish a different default procedure for participants who fail to make a timely election.  This Part 2 of Annex I became effective as of May 25, 2015.

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]