<SUBMISSION>
<ACCESSION-NUMBER>0000950117-06-001326
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>16
<PERIOD>20060215
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20060320
<DATE-OF-FILING-DATE-CHANGE>20060317
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>QUEST DIAGNOSTICS INC
<CIK>0001022079
<ASSIGNED-SIC>8071
<IRS-NUMBER>161387862
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-12215
<FILM-NUMBER>06697342
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE MALCOLM AVE
<CITY>TETERBORO
<STATE>NJ
<ZIP>07608
<PHONE>2013935000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE MALCOLM AVE
<CITY>TETERBORO
<STATE>NJ
<ZIP>07601
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CORNING CLINICAL LABORATORIES INC
<DATE-CHANGED>19960903
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a41597.htm
<DESCRIPTION>QUEST DIAGNOSTICS INCORPORATED
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
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<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
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<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=4>SECURITIES AND EXCHANGE COMMISSION</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3>WASHINGTON, DC 20549</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
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<TR>
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<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
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<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
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<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=5>FORM 8-K</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>CURRENT REPORT PURSUANT TO SECTION 13 OR
  15(d) OF</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=3><B>THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Date of Report (Date of Earliest Event Reported): February 15, 2006</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Commission file number 001-12215</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=6><B>Quest Diagnostics Incorporated</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>1290 Wall Street West</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Lyndhurst, NJ 07071</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(201) 393-5000</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>Delaware</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(State of Incorporation)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>16-1387862</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(I.R.S. Employer Identification Number)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<BR>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 1.01</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Entry into a Material Definitive Agreement </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February 15, 2006, the Compensation Committee of the Board of Directors (the &#147;<I>Compensation
Committee</I>&#148;) of Quest
Diagnostics Incorporated (the &#147;<I>Company</I>&#148;)
approved the annual base salaries for the chief executive officer and other
executive officers of the Company for fiscal year 2006.  In addition, the Compensation Committee
established the financial and strategic criteria and targets used in
establishing bonus and award grants for fiscal year 2006 under the Company&#146;s
Senior Management Incentive Plan (&#147;<I>SMIP</I>&#148;)
and Amended and Restated Employee Long-Term Incentive Plan (&#147;<I>ELTIP</I>&#148;). </FONT></P>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Base
Salary </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On February 15, 2006, the Compensation Committee approved the following annual
base salaries for fiscal year 2006 for the Company&#146;s chief executive officer
and other executive officers (effective January 1, 2006):   </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="85%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Name and Position</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Base
  Salary for<BR>
  2006</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="15%" NOSHADE COLOR=BLACK ALIGN=left>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>Surya N. Mohapatra <BR>
  Chairman, President and Chief Executive Officer</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>1,023,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Robert A. Hagemann <BR>
  Senior Vice President and Chief Financial Officer</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>463,008</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>David M. Zewe <BR>
  Senior Vice President, Diagnostic Testing Operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>481,416</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Michael E. Prevoznik <BR>
  Senior Vice President and General Counsel</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>401,205</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>Robert E. Peters <BR>
  Vice President, Sales and Marketing</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>355,425</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>W. Thomas Grant, II<BR>
  Senior Vice President, Insurance and Employer Services</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>365,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
Bonus Awards </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual
cash bonus incentives are paid to the chief executive officer and other
executive officers in accordance with the SMIP.  Consistent with past practice, on February 15, 2006, the
Compensation Committee established additional target percentages in respect of
each executive officer&#146;s base salary to be used in determining the bonus awards
for fiscal year 2006.  Whether or not an
executive officer receives his target percentage bonus will be based on three
factors: first, financial performance, which is to be measured against
objectives established for earnings per share and revenue growth; second, the
Company&#146;s performance against other specific targets, such as patient
satisfaction, six sigma quality, customer retention and employee satisfaction;
and third, individual performance measures for each executive officer.  These criteria are applicable to all
participants under the SMIP, including the Company&#146;s chief executive officer
and its other executive officers.   </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
additional targets established by the Compensation Committee for bonus awards
for the chief executive officer and other executive officers for fiscal year
2006 are as follows: </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="80%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Name and Position</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Target
  Bonus (as a<BR>
  % of Base Salary)<BR>
  that May be<BR>
  Granted Pursuant to<BR>
  2006 Awards</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="15%" NOSHADE COLOR=BLACK ALIGN=left >
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>Surya N. Mohapatra <BR>
  Chairman, President and Chief Executive Officer</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>130</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Robert A. Hagemann<BR>
  Senior Vice President and Chief Financial Officer</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>90</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>David M. Zewe <BR>
  Senior Vice President, Diagnostic Testing Operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>70</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Michael E. Prevoznik <BR>
  Senior Vice President and General Counsel</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>65</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>Robert E. Peters <BR>
  Vice President, Sales and Marketing</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>65</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>W. Thomas Grant, II*<BR>
  Senior Vice President, Insurance and Employer Services</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP COLSPAN=2>
<HR SIZE=1 WIDTH="20%" NOSHADE ALIGN=LEFT>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>*</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Under Mr. Grant&#146;s
  employment agreement, dated August 8, 2005, the maximum annual bonus
  opportunity is 100% of Base Salary (as defined).  Under Mr. Grant&#146;s employment agreement, he is also
  eligible for a Special Annual Performance Bonus (as defined) for fiscal years
  2006, 2007 and 2008.  The Special
  Annual Performance Bonus opportunity for target level performance is $38,000,
  based on the achievement of performance metrics related to the effective
  integration and growth of the business for which Mr. Grant is responsible. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the SMIP, the maximum bonus that can be paid to a participant is 1% of the
Company&#146;s Earnings (as defined in the SMIP) in the relevant fiscal year.  </FONT></P>

<P><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-Term
Incentives </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
chief executive officer and each other executive officer of the Company are
eligible to receive annual long-term incentive awards in the form of stock
options and performance shares under the ELTIP.  On February 15, 2006, the Compensation Committee granted the
stock options for fiscal year 2006 and the target performance shares for the
fiscal year 2006 to 2008 performance period that are set out in the table
below: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="73%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Name and Position</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2006 Stock<BR>
  Option Grants</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2006
  Target<BR>
  Performance Shares</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="15%" NOSHADE COLOR=BLACK ALIGN=left>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>Surya N.
  Mohapatra <BR>
  Chairman, President and Chief Executive Officer</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>275,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>55,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Robert A.
  Hagemann<BR>
  Senior Vice President and Chief Financial Officer</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>113,334</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>22,667</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>David M.
  Zewe <BR>
  Senior Vice President, Diagnostic Testing Operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>63,334</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>12,667</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Michael E.
  Prevoznik <BR>
  Senior Vice President and General Counsel</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>54,667</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>10,934</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=2>Robert E.
  Peters <BR>
  Vice President, Sales and Marketing</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>50,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=2>10,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E5FFFF">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>W. Thomas Grant, II<BR>
  Senior Vice President, Insurance and Employer Services</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>46,667</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>9,334</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
stock option award is subject to the terms and conditions of a Non-Qualified
Stock Option Agreement entered into with the participant, the form of which is
filed as Exhibit 10.1 to this report and is incorporated herein by this
reference.  The Non-Qualified Stock
Option Agreements executed by the chief executive officer and each other
executive officer of the Company with respect to the stock option grants in
respect of 2006 also are filed as Exhibit 10.2 though Exhibit 10.7 to this
report and are incorporated herein by this reference.  The stock options granted in respect of 2006 will vest
over a
three-year period and have a seven-year term. All stock options are granted
with an exercise price that is not less than the fair market value of Company&#146;s
common stock on the date of grant and option re-pricing is prohibited by the
terms of the ELTIP, except if the Compensation Committee determines that one or
more specified corporate transactions has affected the price per share such
that an adjustment of outstanding awards is required to preserve (or prevent an
enlargement of) the benefit or potential benefit intended at the time of the
grant. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
performance share award is subject to the terms and conditions of a Performance
Share Award Agreement entered into with the participant, the form of which is
filed as Exhibit 10.8 to this report and is incorporated herein by this
reference.  The Performance Share Award
Agreements executed by the chief executive officer and each other executive
officer of the Company with respect to the performance shares awards in respect
of 2006 also are filed as Exhibit 10.9 though Exhibit 10.14 to this report and
are incorporated herein by this reference. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
performance shares subject to the 2006 award will be earned based on the
earnings per share performance of the Company over a multi-year period, and
will be paid out in shares of common stock of the Company at the end of the
term. The target performance shares issued in respect of 2006 provide for the
issuance of stock based on the Company&#146;s earnings per share growth as compared
to our peers in the compensation peer group.
Depending upon the achieved &#147;relative&#148; earnings per share growth, 0% to
200% of the target number of shares may be awarded. Threshold awards equal to
0% of target will be earned when the Company&#146;s earnings per share ranks at the
25th percentile or below of the peer group. Target awards are earned for
ranking at the 55th percentile of the peer group. Maximum awards equal to 200%
of target will be earned when the Company&#146;s earnings per share growth ranks at
the 85th percentile or above of the peer group. Awards for performance between
these percentiles will be interpolated on a straight-line basis.  </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Item 9.01</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Financial
  Statements and Exhibits</B></FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><I>(d)</I></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><I>Exhibits</I></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of Non-Qualified
  Stock Option Agreement</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.2</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified Stock Option
  Agreement, dated February 15, 2006, between the Company and Surya N.
  Mohapatra</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.3</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified Stock Option
  Agreement, dated February 15, 2006, between the Company and Robert A.
  Hagemann</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.4</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified Stock Option
  Agreement, dated February 15, 2006, between the Company and David M. Zewe</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.5</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified Stock Option
  Agreement, dated February 15, 2006, between the Company and Michael E.
  Prevoznik</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.6</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified Stock Option
  Agreement, dated February 15, 2006, between the Company and Robert E. Peters</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.7</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified Stock Option
  Agreement, dated February 15, 2006, between the Company and W. Thomas Grant,
  II</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.8</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of Performance Share
  Award Agreement (2006 &#150; 2008 Performance Period)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.9</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance Share Award
  Agreement, dated February 15, 2006, between the Company and Surya N.
  Mohapatra</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.10</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance Share Award
  Agreement, dated February 15, 2006, between the Company and Robert A.
  Hagemann</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.11</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance Share Award
  Agreement, dated February 15, 2006, between the Company and David M. Zewe</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.12</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance Share Award
  Agreement, dated February 15, 2006, between the Company and Michael E.
  Prevoznik</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.13</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance Share Award
  Agreement, dated February 15, 2006, between the Company and Robert E. Peters</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.14</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance Share Award
  Agreement, dated February 15, 2006, between the Company and W. Thomas Grant,
  II</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>Signature</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="50%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="46%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>March 17,
  2006 </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>QUEST
  DIAGNOSTICS INCORPORATED</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By:</FONT></P>
</TD>
    <TD VALIGN=TOP> <P><FONT SIZE=2>&nbsp;/s/ &nbsp;Leo C. Farrenkopf, Jr.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Leo
  C. Farrenkopf, Jr.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Vice President, Assistant General Counsel
        and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Assistant
  Corporate Secretary</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>EXHIBIT INDEX </B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P><FONT SIZE=1><B>Exhibit
  No.</B></font></P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=TOP>
<P><FONT SIZE=1><B>Description
  of Exhibit</B></font></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of Non-Qualified
  Stock Option Agreement </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.2</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified
  Stock Option Agreement, dated February 15, 2006, between the Company and
  Surya N. Mohapatra </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.3</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified
  Stock Option Agreement, dated February 15, 2006, between the Company and
  Robert A. Hagemann </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.4</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified
  Stock Option Agreement, dated February 15, 2006, between the Company and
  David M. Zewe </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.5</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified
  Stock Option Agreement, dated February 15, 2006, between the Company and
  Michael E. Prevoznik </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.6</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified
  Stock Option Agreement, dated February 15, 2006, between the Company and
  Robert E. Peters </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.7</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Non-Qualified
  Stock Option Agreement, dated February 15, 2006, between the Company and W.
  Thomas Grant, II </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.8</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Form of
  Performance Share Award Agreement (2006 &#150; 2008 Performance Period) </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.9</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance
  Share Award Agreement, dated February 15, 2006, between the Company and Surya
  N. Mohapatra </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.10</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance
  Share Award Agreement, dated February 15, 2006, between the Company and
  Robert A. Hagemann </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.11</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance
  Share Award Agreement, dated February 15, 2006, between the Company and David
  M. Zewe </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.12</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance
  Share Award Agreement, dated February 15, 2006, between the Company and
  Michael E. Prevoznik </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.13</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance
  Share Award Agreement, dated February 15, 2006, between the Company and
  Robert E. Peters </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.14</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance
  Share Award Agreement, dated February 15, 2006, between the Company and W.
  Thomas Grant, II </FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<HR COLOR=#000000 NOSHADE>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>



<P><FONT SIZE=2><B>Exhibit 10.1</B></FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>QUEST DIAGNOSTICS INCORPORATED <BR>
NON-QUALIFIED STOCK OPTION AGREEMENT</B></FONT></P>

<P><FONT SIZE="2">This
Non-Qualified Stock Option Agreement (the &#147;Option Agreement&#148;), dated as of <U><I>Grant Date</I></U>&nbsp;(the &#147;Grant Date&#148;),
is by and
between Quest Diagnostics Incorporated, 1290 Wall Street West, Lyndhurst, New
Jersey 07071 (the &#147;Corporation&#148;) and <U><B><I>Optionee</I></B></U>&nbsp;(the &#147;Optionee&#148;) <B><I>Optionee Home
Address</I>.</B> </FONT> </P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>1.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE="2"><U><B>Conditions</B></U>.&nbsp;This Option Agreement is subject in all respects to the Corporation&#146;s Amended
and Restated Long-Term Employee Incentive Plan, which is incorporated herein
by reference. The Optionee acknowledges that he/she has read the terms of the
Amended and Restated Long-Term Employee Incentive Plan and that those terms
shall govern in the event of any conflict between them and those of this
Option Agreement. </FONT> </P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>In consideration of the grant of the option provided pursuant to this
  Option Agreement and by accepting the terms of this Agreement, the Optionee
  agrees that all options granted to the Optionee by the Corporation prior to
  the date hereof (the &#147;Prior Options&#148;) shall be subject to forfeiture pursuant
  to paragraph 4(b)(ii) of this Option Agreement (for false attestation under
  the Executive Share Ownership Guidelines of the Corporation (the &#147; Minimum
  Share Ownership Policy&#148;)), the Shares obtained on exercise of such Prior
  Options after the date hereof shall be subject to the Minimum Share Ownership
  Policy pursuant to paragraph 5(b) of this Option Agreement and the terms of
  paragraphs 4(b)(ii) and 5(b) hereof are made a part of the terms of each of
  the Prior Options. </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>In consideration of the grant of the option provided pursuant to this
  Option Agreement and by accepting the terms of this Agreement, the Optionee
  agrees that this Option shall be subject to forfeiture pursuant to paragraph
  4(b)(iii) of this Agreement. </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><I>This Option Agreement shall become
  effective only after the Optionee has executed and returned to the Executive
  Compensation Department (to the attention of Lisa Zajac (1290 Wall Street
  West &#150; 5<SUP>th</SUP> Floor, Lyndhurst, NJ 07071) a signed copy of this
  Option Agreement and shall be revoked if not executed and returned to Lisa
  Zajac within thirty (30) days of receipt by the Optionee..</I></B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>2.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Award of Option</U></B>.&nbsp;The Corporation hereby
  awards to the Optionee an option (the &#147;Option&#148;) to purchase from the
  Corporation such number of shares of the Corporation&#146;s common stock (the
  &#147;Shares&#148;) at the exercise price set forth in this Option Agreement (the
  &#147;Exercise Price&#148;) below. This option shall vest equally over a three-year
  period. If the foregoing results in a fractional number of Shares subject to
  the Option vesting on any vesting date, the number of Shares subject to the
  Option vesting on the first and second vesting dates shall be rounded down to
  the previous whole number of Shares and the Shares subject to the Option
  vesting on the third vesting date shall be rounded up to the next whole
  number of Shares, as shall be necessary in order to result in a vesting of
  100% of the Shares subject to the Option. The Compensation Committee of the
  Corporation may, in its sole discretion, convert this Option at any time to a
  stock settled stock appreciation grant. </FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="25%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="75%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Number of Shares Subject
  to Option: XXXX</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><BR>Exercise Price per Share:
  $XXXX</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><BR>Expiration Date: XXXXX XX,
  XXXX</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="25%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="25%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="25%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="25%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2><B><I>Vesting Schedule:</I></B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE="1"><B>Number
of Shares Subject to Option</B> </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1><B>Vesting Dates</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1><B>% of Grant</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1><B>Incremental</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=1><B>Cumulative</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>XXXXX</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>33.33%</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>XXXX</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>XXXX</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>XXXXX</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>33.33%</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>XXXX</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>XXXX</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>XXXXX</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>33.34%</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>XXXX</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>XXXX</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>This option
  shall expire, and no shares may be purchased pursuant to this Option, after
  the expiration date set forth above (the &#147;Expiration Date&#148;). </FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 1 of 9<BR>
EOAgmt </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement <BR>
XXXXXX, XX, XXXX <BR>Page 2. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>3.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Not An Incentive Stock Option</U></B>.&nbsp;This
  Option is not intended to be an &#147;incentive stock option&#148; within the meaning
  of Section 422 of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;)
  and this Agreement shall be construed and interpreted in accordance with such
  intention. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>4.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Vesting</U></B>.&nbsp;Except as otherwise provided
  below, the Option shall vest and become exercisable as to the percentage of
  Shares subject to the Option on the vesting dates [set forth above][set forth
  on the &#147;Summary Grant&#148; page at the Smith Barney website] (the &#147;Vesting
  Dates&#148;). </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Termination</U></B>.&nbsp;Unless the Optionee&#146;s
  employment is terminated for one of the reasons set forth in Section 4(b)
  through (i), at the Optionee&#146;s termination of employment prior to the third
  anniversary of the date of this Agreement, the Optionee will vest in and have
  the right to purchase a percentage of the Shares subject to this Option
  determined by dividing (i) the number of whole months from the most recent
  anniversary of the grant date (February 15) to the termination date of the
  Optionee&#146;s employment by (ii) 36, and the Option will cease to be exercisable
  and will be cancelled for the balance of the Shares subject to this Option. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>Notwithstanding
  anything to the contrary contained herein, if the Optionee is on a leave of
  absence approved by the Corporation for medical, personal, educational and/or
  other permissible purposes pursuant to policies of the Corporation as in
  effect on the date hereof, for a consecutive twelve-month period, such
  Optionee will be deemed terminated for purposes of this Agreement on the
  twelve month anniversary of the commencement of such leave of absence and
  this Option shall cease to vest at the end of such twelve-month period and
  the Optionee will forfeit any unvested portion of the Option. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Cause, Dereliction of Duties or Harmful Acts; Breach of Share
  Ownership Guidelines; Loss of Equity Award Eligibility Status</U></B>.&nbsp;(i)
  If the Optionee shall cause the Corporation to suffer financial harm or
  damage to its reputation (either before or after termination of employment)
  through (x) dishonesty, (y) violation of law in the course of the Optionee&#146;s
  employment or violation of the Corporation&#146;s Corporate Compliance Manual and
  compliance bulletins or other written policies, or (z) material deviation
  from the duties owed the Corporation by the Optionee, this Option, whether or
  not vested, shall expire and be cancelled to the extent it has not been
  exercised and be of no further force or effect. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>(ii) If the
  Optionee is subject to the Minimum Share Ownership Policy, any false
  attestation made under the Minimum Share Ownership Policy may result in the
  immediate cancellation of this Option and all Prior Options (to the extent
  not exercised), whether or not vested.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>(iii) If the
  Optionee&#146;s employment status in the Corporation is changed such that the
  Optionee will no longer be eligible to receive options pursuant to the Equity
  Award Eligibility Policy of the Corporation as in effect on the date hereof
  and attached as Annex A to this Agreement and such changed status continues
  for a consecutive 90 day period, this Option shall cease to vest at the end
  of such 90-day period (and the Optionee will then vest in and have the right
  to purchase a percentage of the Shares subject to this Option determined by
  dividing (i) the number of whole months from the most recent anniversary of
  the grant date (February 15) to the end of such 90-day period by (ii) 36),
  and the Optionee will immediately forfeit any unvested portion of the Option.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Death</U>.</B>&nbsp;If the Optionee shall die while
  employed, this Option shall vest as to all Shares subject to the Option on
  the date of the Optionee&#146;s death. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(d)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Disability</U>.</B>&nbsp;If the Optionee&#146;s employment
  shall terminate as a result of disability (as defined in Section 22(e)(3) of
  the Code), this Option shall vest as to all Shares subject to the Option on
  the date of the Optionee&#146;s termination of employment. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(e)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Change of Control</U></B>.&nbsp;This Option shall
  vest as to all shares immediately on the effective date of a change of
  control, provided the Optionee was actively employed by the Corporation on
  such date. For purposes of this Agreement the term &#147;change of control&#148; shall
  mean and shall be deemed to occur if and when: </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(i)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Any person
  (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange
  Act of 1934) is or becomes the beneficial owner, directly or indirectly, of
  securities of the Corporation representing 40% of more of the combined voting
  power of the Corporation&#146;s then outstanding securities; or </FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 2 of 9 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement <BR>
XXXXXX, XX, XXXX <BR>
Page 3. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(ii)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The
  individuals who, as of the Grant Date, constituted the Corporation&#146;s Board of
  Directors (the &#147;Incumbent Board&#148;) cease for any reason to constitute at least
  a majority of the Board; <I>provided, however</I>,
  that any individual (other than any individual whose initial assumption of
  office is in connection with an actual or threatened election contest (as
  such term is used in Rule 14a-11 of Regulation A promulgated under the
  Securities Exchange Act of 1934)), becoming a director subsequent to the
  Grant Date, whose election, or nomination for election by the stockholders of
  the Corporation, was approved by a vote of at least a majority of the
  directors then comprising the Incumbent Board, shall be considered as though
  such individual was a member of the Incumbent Board; or </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(iii)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Shareholders
  of the Corporation approve an agreement, providing for (a) a transaction in
  which the Corporation will cease to be an independent publicly owned
  corporation, or (b) the sale or other disposition of all or substantially all
  of the Corporation&#146;s assets, or (c) a plan of partial or complete liquidation
  of the Corporation. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(f)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Involuntary Termination with Severance</U></B>.&nbsp;If prior to the third anniversary of the date of this Agreement, the
  Optionee&#146;s employment is terminated by the Corporation and, as a result, the
  Optionee becomes eligible for severance benefits under one of the
  Corporation&#146;s Severance Plans, the Optionee will immediately vest in and have
  the right to purchase a percentage of the Shares subject to this Option
  determined by dividing (i) the number of whole months from the most recent
  anniversary of the grant date (February 15) to the date that is twelve months
  after the termination date of the Optionee&#146;s employment by (ii) 36, and the
  Option will cease to be exercisable and will be cancelled for the balance of
  the Shares subject to this Option. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(g)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Divestiture</U></B>. If prior to the third
  anniversary of the date of this Agreement, the Optionee&#146;s employment is
  terminated by the Corporation due to a divestiture and the Optionee is
  employed by the purchasing entity, then the Optionee will immediately vest in
  a percentage of the Shares subject to this Option determined by dividing (i)
  the number of whole months from the most recent anniversary of the grant date
  (February 15) to the date that is twelve months after the termination date of
  the Optionee&#146;s employment by (ii) 36, and the Option will cease to be
  exercisable and will be cancelled for the balance of the Shares subject to
  this Option. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(h)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Transfers</U>.</B>&nbsp;If the Optionee shall be
  transferred from the Corporation to a subsidiary company (being a 50% owned
  entity within the meaning of Section 425(f) of the Code), or joint venture or
  similar entity existing as of the date of this Agreement in which the
  Corporation has at least a 33.33% interest (&#147;joint venture&#148;) or vice versa or
  from one subsidiary company (or joint venture) to another, the Optionee&#146;s
  employment shall not be deemed to have terminated. If, while the Optionee is
  employed by such a subsidiary company or joint venture, such subsidiary
  company or joint venture shall cease to be a subsidiary company or joint
  venture as described above and the Optionee is not thereupon transferred to
  and employed by the Corporation or another subsidiary company or joint
  venture as described above, then the Optionee&#146;s employment will be treated as
  a termination due to a divestiture under clause (g) above as of the date that
  the Optionee&#146;s employer ceases to be such a subsidiary company or joint
  venture of the Corporation. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(i)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Retirement</U>.</B> If the Optionee&#146;s employment
  shall terminate with the consent of the Corporation on or after the
  Optionee&#146;s attaining age 60, this Option shall vest and be exercisable as to
  all Shares subject to this Option on the effective termination date of the
  Optionee&#146;s employment. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>5.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2>Non-Transferability.
  </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>a)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>The rights
  under this Option Agreement shall not be transferable other than by will or
  the laws of descent and distribution and may be exercised during the lifetime
  of the Optionee only by the Optionee except to the extent of a disability (as
  defined in Section 22(e)(3) of the Code), in which case the Option may be
  exercised by the Optionee&#146;s legal representative.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>b)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>If the
  Optionee is subject to the Minimum Share Ownership Policy, the Optionee
  agrees that any shares issued hereunder or pursuant to any Prior Option shall
  be subject to the restrictions set forth in the Minimum Share Ownership
  Policy. If the Optionee is not in compliance with the Minimum Share Ownership
  Policy, the Corporation may terminate the employment of such Optionee and/or
  the Option shall immediately terminate and cease to be exercisable. The
  Optionee hereby acknowledges and agrees that the investment risk associated
  with the retention of any Shares, whether pursuant to the Minimum Share
  Ownership Policy or otherwise, is the sole responsibility of the Optionee and
  Optionee hereby holds the Corporation harmless against any claim of loss
  related to the retention of the Shares. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>6.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE="2"><U><B>Exercise</B></U><B>.</B>&nbsp;The purchase price of Shares purchased hereunder shall be paid in full with,
or in a combination of, (a) cash or (b) shares of the Corporation&#146;s Common
Stock that have been owned by the Optionee, and have been fully vested and
freely transferable by the Optionee, for at least six months preceding the
date of exercise of the Option, duly endorsed or accompanied by stock powers
executed in blank. However, the Corporation in its discretion may permit the
Optionee (if the </FONT> </P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 3 of 9 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement <BR>
XXXXXX, XX, XXXX <BR>
Page 4. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>Optionee
  owns shares that have been owned by the Optionee, and have been fully vested
  and fully transferable by the Optionee, for at least six months preceding the
  date of exercise) to &#147;attest&#148; to his ownership of the number of shares
  required to pay all or part of the purchase price (and not require delivery
  of the shares), in which case the Corporation will deliver to the Optionee
  the number of shares to which the Optionee is entitled, net of the &#147;attested&#148;
  shares. If payment is made in whole or in part with shares of the
  Corporation&#146;s Common Stock, the value of such Common Stock shall be the mean
  between its high and low prices on the day of purchase as reported by <I>The New York Times </I>following the close
  of business on the date of exercise. No &#147;reload&#148; or other option will be
  granted by reason of any such exercise. The Optionee agrees that,
  notwithstanding the terms of any pre-existing agreement between the Corporation
  and the Optionee, any shares of the Corporation&#146;s Common Stock surrendered
  (or &#147;attested&#148; to) for payment of the exercise price of any options
  previously granted by the Corporation to the Optionee (whether granted under
  the terms of the Amended and Restated Employee Long-Term Incentive Plan or
  any predecessor program) shall be valued in the manner provided in the
  preceding sentence except to the extent otherwise expressly provided by the
  terms of the program document. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>7.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE="2"><U><B>Exercise
After Termination of Employment, Death or Disability</B></U><B>.</B> The provisions covering
the exercise of this Option following termination of employment are as
follows: </FONT> </P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Termination in General</U>.</B> If the Optionee
  shall terminate his employment for any reason other than those described in
  Section 7(b) through (f), all of the vested percentage of the Option may be
  exercised for ninety (90) days following such termination (but not beyond the
  Expiration Date) and the Option shall thereafter expire and cease to be
  exercisable;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Death</U>.</B> If the Optionee shall die while
  employed, the Option may be exercised through the Expiration Date in respect
  of all of the Shares subject to the Option. If the Optionee shall die after
  termination of employment but while the Option is still exercisable, it shall
  remain exercisable to the same extent through the first anniversary of the
  date of death but not beyond the Expiration Date;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Disability</U>.</B> If the Optionee&#146;s employment
  shall terminate as a result of disability (as defined in Section 22(e)(3) of
  the Code), the Option shall remain exercisable through the Expiration Date; </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(d)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Involuntary Termination with Severance</U>.</B>
  If the Optionee&#146;s employment is terminated by the Corporation and, as a
  result, the Optionee becomes eligible for severance benefits under the
  Corporation&#146;s Severance Plans, then to the extent this Option is vested and
  exercisable (and becomes vested and exercisable under Section 4(f)), it may
  be exercised through the first anniversary of the date of termination (but not
  beyond the Expiration Date) and shall thereafter expire.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(e)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Divestiture</U>.</B> If prior to the third
  anniversary of the date of this Agreement, the Optionee&#146;s employment is
  terminated by the Corporation due to a divestiture and the Optionee is
  employed by the purchasing entity, then to the extent this Option is vested
  and exercisable (and becomes vested and exercisable under Section 4(g)), it
  may be exercised through the first anniversary of the date of termination
  (but not beyond the Expiration Date) and shall thereafter expire.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(f)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Retirement</U>.</B> If the Optionee&#146;s employment
  shall terminate as a result of Retirement as defined in Section 4(i) of this
  Option, all of the Option may be exercised as to all of the Shares subject to
  the Option through the Expiration Date. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>In no event
  may any portion of the Option be exercised after the Expiration Date. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>8.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Consideration</U></B>.&nbsp;In consideration for the
  Option granted by this Option Agreement, the Optionee hereby agrees to be
  bound by the Nondisclosure and Nonsolicitation provisions set forth in
  Sections 9 and 10 of this Option Agreement and the non-compete obligations
  set forth in the agreement between the Optionee and the Corporation or
  otherwise pursuant to any written policy of the Corporation. For purposes of
  Sections 9 and 10, the term &#147;Company&#148; shall mean the Corporation, its
  affiliates, divisions and subsidiaries, or any other entity in which the
  Corporation, directly or indirectly, controls or has an ownership or equity
  interest equal to or greater than 25.0% of the combined voting power of the
  entity&#146;s then outstanding securities, and their respective successors and
  assigns. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>9.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Nondisclosure of Confidential Information</U></B>.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>For purposes
  of this Option Agreement, the term &#147;Confidential Information&#148; shall mean all
  ideas, inventions, data, databases, know-how, processes, methods, practices,
  specifications, raw materials and preparations, compositions, designs,
  devices, fabrication techniques, technical plans, algorithms, computer programs,
  protocols, client information, medical records, documentation, customer names
  and lists, supplier names and lists, price lists, supplier names and lists,
  apparatus, business plans, marketing plans, financial information, chemical
  and biological reagents, business methods and systems, literary and graphical
  and audiovisual works and sound recordings, mask works, </FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 4 of 9 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement <BR>
XXXXXX, XX, XXXX <BR>
Page 5. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>computer
  programs, and the like, and potential trade names, trademarks, and logos, in
  whatever form or medium and which have commercial value, and whether or not
  designated or marked &#147;Confidential&#148; or the like, which the Optionee learns,
  acquires, conceives, creates, develops, or improves while employed by the Company
  and which (1) relate to the past, current, or prospective business of the
  Company or its subsidiaries and (a) which have not previously been publicly
  disclosed without restrictions on use by the Company, or (b) which Optionee
  knows or has good reason to know are not generally publicly known; or (2) are
  received by the Company from a third party under an obligation of
  confidentiality to the third party.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Optionee
  recognizes and acknowledges that during his or her employment with the
  Company, the Optionee may be given access to or develop Confidential
  Information. The Optionee shall not use or disclose (directly or indirectly)
  any Confidential Information (whether or not developed by the Optionee) at
  any time or in any manner, except as authorized and required in the course of
  employment with the Company. The Optionee shall not disclose to the Company
  or use on behalf of the Company any Confidential Information obtained from
  any former employer or any other third party. All documents and things
  embodying Confidential Information, whether prepared by the Optionee or
  otherwise coming into the Optionee&#146;s possession, are the exclusive property
  of the Company, and must not be removed from any of its premises except as
  required in the course of employment with the Company. All such documents and
  things shall be promptly returned by the Optionee to the Company upon the
  request of the Company and on any termination of employment with the Company.
  The Optionee will not remove any Confidential Information such as documents
  or things or retain them in whole or part in any manner. The Optionee shall
  ensure that any export of Confidential Information undertaken by the Optionee
  or with his/her knowledge or approval shall be in compliance with all
  applicable laws. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Optionee
  shall promptly disclose to the Company all Confidential Information which the
  Optionee creates, conceives, develops, or improves (either alone or with
  others) referred to below as a &#147;Creation&#148; while in the employment of the Company,
  if the Creation either: (1) relates to any actual or demonstrably
  contemplated business, or research or development project, of the Company or
  its subsidiaries, or to any reasonable extension or variation thereof; or (2)
  results from any work performed by the Optionee for the Company; or (3) was
  created utilizing any of the Company&#146;s equipment, supplies, facilities, time,
  or Confidential Information. The Optionee shall keep complete, accurate, and
  authentic records on all Creations in the manner and form requested by the
  Company. The Optionee shall promptly disclose to the Company, in confidence,
  all patent, copyright, and trademark applications filed by the Optionee
  within one (1) year after termination of employment with the Company and
  which relate to any field in which the Optionee worked at the Company. The
  Optionee agrees that any such application for a patent, copyright
  registration, trademark registration, mask work registration, or similar
  right filed within one (1) year after termination of employment with the
  Company shall be presumed to relate to a Creation of the Optionee created
  during employment at the Company, unless the Optionee can prove otherwise.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(d)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Optionee
  hereby assigns to the Company all of the Optionee&#146;s rights in all of the
  above-described Creations. All such Creations that are subject to copyright
  or mask work protection are explicitly considered by the Optionee and the
  Company to be works made for hire to the extent permitted by law. To the
  extent that any such Creations are subject to copyright protection and are
  not works made for hire, any and all of the Optionee&#146;s copyright and mask
  work interest therein are hereby assigned by the Optionee to the Company, and
  are the exclusive property of the Company. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(e)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Optionee
  agrees to assist the Company in obtaining and/or maintaining patents,
  copyrights, trademarks, mask work rights, and similar rights to any Creations
  assigned by the Optionee to the Company, if and to the extent that the
  Company, in its sole discretion, requests such assistance, the Optionee shall
  sign all documents and do all other things deemed necessary by the Company,
  at the Company&#146;s expense, to obtain and/or maintain such rights, to provide
  confirmatory evidence of the Optionee&#146;s assignment of such Creations to the
  Company, to defend them from invalidation, and to protect them against
  infringement by other parties. The obligations of this paragraph are
  continuing and survive the termination of the Optionee&#146;s employment with the
  Company. The Optionee irrevocably appoints the Chief Executive Officer of the
  Company (with powers of delegation) to act as the Optionee&#146;s agent and
  attorney-in-fact to perform all acts as the Optionee&#146;s agent and to file,
  prosecute, and maintain applications and registrations for patents,
  trademarks, copyrights, mask work rights, and similar rights to any Creations
  assigned by the Optionee to the Company under this Option Agreement, such
  appointment being effective both during the Optionee&#146;s employment by Company,
  and thereafter if the Optionee (1) refuses to perform those acts, or (2) is
  unavailable, within the meaning of any applicable laws. The Optionee
  acknowledges that the grant of the foregoing power of attorney is coupled
  with an interest, is irrevocable, and shall survive his/her death or
  disability. </FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 5 of 9 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement <BR>
XXXXXX, XX, XXXX <BR>
Page 6. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>10.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Nonsolicitation </U></B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>For a period
  of one (1) year following the termination of the Optionee&#146;s employment for
  any reason, the Optionee will not directly or indirectly solicit the Business
  of any customer of the Company of whom the Optionee acquired knowledge and/or
  had direct or indirect contact during the one (1) year period prior to the
  termination of the Optionee&#146;s employment relationship with the Company for
  any purpose other than to obtain, maintain and/or service the customer&#146;s
  Business for the Company. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>For a period
  of one (1) year following the termination of the Optionee&#146;s employment for
  any reason, the Optionee agrees not to, directly or indirectly, recruit or
  solicit any employees of the Company to work for the Optionee or any other
  person or entity. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>As used in
  this Option Agreement, the following terms shall have these respective
  definitions:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(i)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#147;Current
  Business&#148; shall mean and include: providing clinical testing information
  services for the diagnosis, monitoring, and treatment of disease; providing
  clinical laboratory management services; providing medical informatics
  services (i.e., the statistical analysis of medical information) and
  consulting services based on such analysis; providing data analysis, medical
  information services, and database management services for the health care
  industry; providing clinical testing information services in support of
  clinical trials, and clinical testing products for use in clinical trials;
  providing services of storage, retrieval, and communication of medical
  information via interactive computer networks; providing to managed care
  organizations, hospitals, employers, and other institutional healthcare
  providers access to a network of clinical diagnostic laboratories providing
  services of processing requests for diagnostic tests, performing tests,
  reporting test results, and paying claims to network laboratories; providing
  quality and utilization management; providing consolidated chronological
  reports in graphical and/or numerical form, representing the results of
  clinical diagnostic tests performed on individual patients and groups of
  patients over monitored periods of time, together with analysis of the
  results; and manufacturing and selling clinical diagnostic assay kits,
  apparatus, and reagents.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(ii)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#147;Business&#148;
  shall include the Current Business and any other product or service which the
  Company provided during the one (1) year period prior to the Optionee&#146;s
  termination of employment and during the one (1) year period following the
  Optionee&#146;s termination of employment, but the restriction on products and
  services introduced after the Optionee&#146;s termination of employment shall
  exclude products and services that were not planned, discussed, or
  contemplated prior to the Optionee&#146;s termination of employment. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(iii)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#147;Indirectly
  Solicit&#148; shall include, but is not be limited to, providing the Company&#146;s
  Confidential Information to another individual, or entity, allowing the use
  of the Optionee&#146;s name by any company (or any employees of any other company)
  other than the Company, in the solicitation of the Business of Company&#146;s
  customers. </FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="94%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>11.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Damages and Injunctive Relief</U></B>. The
  Optionee understands that if the terms of Section 9 and/or 10 of this Option
  Agreement are violated, the Corporation would be seriously and irreparably
  damaged, and agrees that the Corporation will be entitled to seek appropriate
  remedies for those damages, including, without limitation, injunctive relief
  to enforce any provision of this Agreement and all reasonable attorney&#146;s fees
  incurred by the Corporation to enforce the terms of these Sections. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>12.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Forfeiture</U>.</B>The Optionee will
  immediately forfeit any unexercised portion of the Option for any violations
  of (i) the terms of Sections 9 and/or 10 of this Agreement and/or (ii) the
  non-compete obligations set forth in the agreement between the Optionee and
  the Corporation or otherwise pursuant to any written policy of the
  Corporation, in addition to any equitable and legal rights the Corporation
  has or may have. The Optionee understands that the forfeiture of any
  unexercised portion of the Option is only one element of the damages
  potentially sustained by the Corporation for a violation of Sections 9 and/or
  10 of this Agreement or the non-compete obligation described above, and such
  forfeiture shall not constitute a release of any claim that the Company may
  have for damages, past, present, or future. </FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 6 of 9 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement <BR>
XXXXXX, XX, XXXX <BR>
Page 7. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ><FONT SIZE=2 face=arial>13.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a) <B><U>Consent Requirement</U></B>. If the
  Corporation shall at any time determine that any consent (as hereinafter
  defined) is necessary or desirable as a condition of, or in connection with,
  the granting of this Option, the issuance or purchase of Shares or other
  rights hereunder, or the taking of any other action hereunder (a &#147;Plan
  Action&#148;), then no such Plan Action shall be taken, in whole or in part,
  unless and until such consent shall have been effected or obtained to the
  full satisfaction of the Corporation. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b) <B><U>Definition of Consent</U></B>. The term
  &#147;consent&#148; as used herein with respect to any action referred to in Section
  13(a) means (i) any and all listings, registrations or qualifications in
  respect thereof upon any securities exchange or under any federal, state or
  local law, rule or regulation, (ii) any and all written agreements and
  representations by the Optionee with respect to the disposition of Shares, or
  with respect to any other matter, which the Corporation shall deem necessary
  or desirable to comply with the terms of any such listing, registration or
  qualification or to obtain an exemption from the requirement that any such
  listing, qualification or registration be made, (iii) any and all consents,
  clearances and approvals in respect of a Plan Action by any governmental or
  other regulatory bodies, and (iv) any and all consents or authorizations
  required to comply with, or required to be obtained under, applicable local
  law or otherwise required by the Corporation. Nothing herein shall require
  the Corporation to list, register or qualify the Shares of its common stock
  on any securities exchange. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>14.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Invalidity and Enforcement</U></B>. If any
  provision of this Agreement is deemed invalid or unenforceable, either in
  whole or in part, this Option Agreement will be deemed amended to delete or
  to modify, as set forth in this Section, the offending provision or
  provisions and to alter the bounds of this Agreement in order to render it
  valid and enforceable. The Corporation and the Optionee specifically request
  that any court having jurisdiction over any dispute relating to this Option
  Agreement modify, if possible, any offending provision so that such provision
  will be enforceable to the maximum extent permitted by State law. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>15.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Employee at Will</U></B>. The Optionee
  understands that his/her employment with the Corporation is at will and that
  it can be terminated at any time by the Optionee and/or the Corporation. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>16.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Enforcement by Successors and Assigns</U></B>.
  The Corporation and any of its successors or assignees may enforce the
  Corporation&#146;s rights under this Option Agreement. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>17.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Entire Agreement</U></B>. The Agreement
  supersedes any prior agreement or understandings between the Optionee and the
  Company with respect to nonsolicitation, nonuse, and non-disclosure and
  constitutes the entire agreement between the Corporation and the Optionee. No
  modification of this Option Agreement will have any force or effect unless
  such modification is in writing, signed by the Chief Executive Officer of the
  Corporation and the Optionee, and expressly indicates an intent to modify
  this Option Agreement. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>18.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Interpretation</U></B>. Any dispute,
  disagreement or matter of interpretation which shall arise under this
  Agreement shall be finally determined by the Corporation&#146;s Compensation
  Committee in its absolute discretion. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>19.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Notice of Exercise</U></B>. The Optionee may
  exercise the Option, in accordance with the procedures specified by the
  Corporation from time to time. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>20.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Rights Prior to Exercise</U></B>. The Optionee
  shall not have any rights as a stockholder with respect to any Shares subject
  to this Option prior to the date on which he/she is recorded as the holder of
  such Shares on the records of the Corporation. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>21.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Taxes</U></B>. The Corporation may make such
  provisions and take such steps as it may deem necessary or appropriate for
  the withholding of all federal, state, local and other taxes required by law
  to be withheld with respect to this Option. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>22.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Governing Law</U></B>. This Option Agreement and
  all rights hereunder shall be governed by, and construed and interpreted in
  accordance with, the laws of the state of New Jersey applicable to contracts
  made and to be performed entirely within such state. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>23.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Acknowledgements</U></B>. By execution of this
  Non-Qualified Stock Option Grant Agreement, the Optionee agrees that he/she
  has received and reviewed a copy of: <BR>
  <BR>
  (a) the Prospectus <B>(link to Prospectus:</B>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_option/stock_option.htm)
  <BR>relating to the Corporation&#146;s Employee Equity Participation Program and; <BR>
  <BR>
  (b) the Quest Diagnostics Incorporated 2005 Annual Report <B>(link to 2005 Annual Report</B>:
  <BR>http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700 to
  Shareholders and Form 10-K);<BR>
  <BR>
  (c) the Corporation&#146;s Policy for Purchasing and Selling Securities (&#147;the
  Policy&#148;) <B>(link to Trading Policy: </B>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.)
  The Optionee further agrees to fully comply with the terms of the Policy;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 7 of 9 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement <BR>
XXXXXX, XX, XXXX <BR>
Page 8. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(d)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE="2">the
Corporation&#146;s Executive Share Ownership Guidelines <B>(link to guidelines:
</B>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm); and </FONT> </P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(e)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the
  Corporation&#146;s Equity Award Eligibility Policy attached hereto as Annex A. </FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="45%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="50%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B>OPTIONEE:</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

<tr>
<TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>


 <TR>
  <TD  VALIGN=top>
  <P><FONT SIZE=2>By:</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 8 of 9 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement <BR>
XXXXXX, XX, XXXX <BR>
Page 9. </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>Annex A<BR>
Quest Diagnostics Incorporated <BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Option Eligibility</U></B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>&#149;</B></FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B>Unreduced Work Schedule </B></FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>&#149;</B></FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B>One of the following salary grades: </B></FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Corporate VP or Higher </B></FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Salary Grade 53 or Higher </B></FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Research &amp; Development - Grade RD6 or Higher </B></FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Medical Director - Grade MD2 </B></FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>For employees whose salary is administered
outside the standard Quest structure (i.e., MedPlus, International, Clinical
Trials Europe), a Quest Diagnostics salary grade has been assigned consistent
with the above requirements. This grade is stored within the Company&#146;s Stock
Administration System. </B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT: Meeting the criteria for &#147;Option
Eligibility&#148; <I>does not guarantee an award</I>.
All grants are subject to a separate approval process. </B></FONT></P>

<P ALIGN=RIGHT><FONT SIZE=2>Page 9 of 9 </FONT></P>

<HR COLOR=#000000 NOSHADE>



</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P><FONT SIZE=2><B>Exhibit 10.2</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>QUEST DIAGNOSTICS INCORPORATED<BR>
NON-QUALIFIED STOCK OPTION AGREEMENT (CEO)</B></FONT></P>

<P><FONT SIZE=2>This
Non-Qualified Stock Option Agreement (the &#147;Option Agreement&#148;), dated as of <B><I>February 15, 2006</I></B>
(the &#147;Grant Date&#148;), is by and between Quest Diagnostics Incorporated, 1290 Wall
Street West, Lyndhurst, New Jersey 07071 (the &#147;Corporation&#148;) and <B><I>Mohapatra, Surya N.</I></B>
(the &#147;Optionee&#148;) [address].</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Conditions</U></B>. This Option Agreement is
  subject in all respects to the Corporation&#146;s Amended and Restated Long-Term
  Employee Incentive Plan, which is incorporated herein by reference. The
  Optionee acknowledges that he/she has read the terms of the Amended and
  Restated Long-Term Employee Incentive Plan and that those terms shall govern
  in the event of any conflict between them and those of this Option Agreement.
  Subject to the foregoing, the terms of the Employment Agreement dated as of
November 9, 2003 between the Corporation and the Optionee (the "Employment
Agreement") shall govern in the event of any conflict between them and the terms
of this Option Agreement. Capitalized terms not defined herein have the meaning set forth in the
  Employment Agreement. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>In consideration of the grant of the option provided pursuant to this
  Option Agreement and by accepting the terms of this Agreement, the Optionee
  agrees that all options granted to the Optionee by the Corporation prior to
  the date hereof (the &#147;Prior Options&#148;) shall be subject to forfeiture pursuant
  to paragraph 4(h) of this Option Agreement (for false attestation under the
  Executive Share Ownership Guidelines of the Corporation (the &#147; Minimum Share
  Ownership Policy&#148;)), the Shares obtained on exercise of such Prior Options
  after the date hereof shall be subject to the Minimum Share Ownership Policy
  pursuant to paragraph 5(b) of this Option Agreement and the terms of
  paragraphs 4(h) and 5(b) hereof are made a part of the terms of each of the
  Prior Options. </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>In consideration of the grant of the option provided pursuant to this
  Option Agreement and by accepting the terms of this Agreement, the Optionee
  agrees that this Option shall be subject to forfeiture pursuant to paragraph
  4(h) of this Agreement. </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>This Option Agreement shall become
  effective only after the Optionee has executed and returned to the Executive
  Compensation Department (to the attention of Lisa Zajac (1290 Wall Street
  West &#150; 5<SUP>th</SUP> Floor, Lyndhurst, NJ 07071) a signed copy of this
  Option Agreement and shall be revoked if not executed and returned to Lisa
  Zajac within thirty (30) days of receipt by the Optionee.</I></B>. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Award of Option</U></B>. The Corporation hereby
  awards to the Optionee an option (the &#147;Option&#148;) to purchase from the
  Corporation such number of shares of the Corporation&#146;s common stock (the
  &#147;Shares&#148;) at the exercise price set forth in this Option Agreement (the
  &#147;Exercise Price&#148;) below. This option shall vest equally over a three-year
  period. If the foregoing results in a fractional number of Shares subject to the
  Option vesting on any vesting date, the number of Shares subject to the
  Option vesting on the first and second vesting dates shall be rounded down to
  the previous whole number of Shares and the Shares subject to the Option
  vesting on the third vesting date shall be rounded up to the next whole
  number of Shares, as shall be necessary in order to result in a vesting of
  100% of the Shares subject to the Option. The Compensation Committee of the
  Corporation may, in its sole discretion, convert this Option at any time to a
  stock settled stock appreciation grant. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>Number of Shares Subject to Option: 275,000</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>Exercise Price per Share: $52.235&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>Expiration Date: February 15, 2013&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P><FONT SIZE=2><B><I>Vesting Schedule:</I></B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="98%">
<TR style="font-size:1px">
<TD WIDTH="57%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Number of Shares Subject to Option</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Vesting Dates</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>% of Grant</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Incremental</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Cumulative</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>February 15,
  2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=2>33.33%</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=2>91,666</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>91,666</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>February 15,
  2008</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>33.33%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>91,667</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>183,333</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>February 15,
  2009</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=2>33.34%</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=2>91,667</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>275,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>This option
shall expire, and no shares may be purchased pursuant to this Option, after the
expiration date set forth above (the &#147;Expiration Date&#148;). </FONT></P>

<P ALIGN=RIGHT><FONT SIZE=2>Page 1 of 6<BR>
EOAgmt </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 2. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Not An Incentive Stock Option</U></B>.  This Option is not intended to be an
  &#147;incentive stock option&#148; within the meaning of Section 422 of the Internal
  Revenue Code of 1986, as amended (the &#147;Code&#148;) and this Agreement shall be
  construed and interpreted in accordance with such intention. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Vesting</U></B>. Except as otherwise provided
  below, the Option shall vest and become exercisable as to the percentage of
  Shares subject to the Option on the vesting dates set forth above (the
  &#147;Vesting Dates&#148;). </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Involuntary Termination or Voluntary Termination for Good Reason</U></B>.
  If the Optionee&#146;s employment is terminated by the Company (other than as
  contemplated by clauses (b), (d) (e) or (f)), or the Optionee terminates his
  employment for Good Reason prior to the third anniversary of the date of this
  Agreement, the portion of the Option scheduled to vest within the 24 month
  period following termination will vest on the appropriate date(s) as if the
  Optionee remained an employee. All other unvested options shall be cancelled
  on the Optionee&#146;s date of termination; provided, however, that if the
  Optionee&#146;s termination of employment occurs within 90 days prior to a Change
  in Control, then the portion of the Option scheduled to vest within the 36
  month period following termination will vest on the appropriate date(s) as if
  the Optionee remained an employee </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination for Cause</U></B>. If the Optionee&#146;s
  employment is terminated for Cause, this Option shall terminate and be of no
  further force or effect. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Renewal of Employment Agreement</U></B>. If
  the Optionee&#146;s employment is terminated as a result of the non-renewal of the
  Employment Agreement, the portion of the Option scheduled to vest within the
  18 -month period following termination will vest on the appropriate date(s)
  as if the Optionee remained an employee. All other unvested options shall be
  cancelled on the Optionee&#146;s date of termination. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Other Voluntary Termination</U></B>. -- If the
  Optionee terminates his employment other than for Good Reason or Disability
  or following non-renewal of the Employment Agreement, the Optionee will vest in and
have the right to purchase a percentage of the
Shares subject to this Option determined by dividing (i)_the number of whole
months from the most recent anniversary of the grant date (February 15) to the
termination date of the Optionee's employment by (ii) 36, and all unvested options
  will be cancelled on the effective termination date of the Optionee&#146;s
  employment.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Death</U></B>. If the Optionee shall die while
  employed, this Option shall vest on the date of the Optionee&#146;s death. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Disability</U></B>. If the Optionee&#146;s employment
  shall terminate as a result of Disability, this Option shall vest on the date
  of the Optionee&#146;s termination of employment. </FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(g)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P> <FONT SIZE="2"><U><B>Change in Control</B></U>. All
options will vest immediately on a Change in Control. </FONT> </P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(h)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Breach of Share Ownership Guidelines</U></B>. Any
  false attestation made under the Minimum Share Ownership Policy may result in
  the immediate cancellation of this Option and all Prior Options (to the
  extent not exercised), whether or not vested. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Transferability</U></B>. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The rights
  under this Option Agreement shall not be transferable other than by will or
  the laws of descent and distribution and may be exercised during the lifetime
  of the Optionee only by the Optionee except to the extent of a disability (as
  defined in Section 22(e)(3) of the Code), in which case the Option may be
  exercised by the Optionee&#146;s legal representative.       </FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>If the Optionee is
  subject to the Minimum Share Ownership Policy, the Optionee agrees that any
  shares issued hereunder or pursuant to any Prior Option shall be subject to
  the restrictions set forth in the Minimum Share Ownership Policy. If the
  Optionee is not in compliance with the Minimum Share Ownership Policy, the
  Corporation may terminate the employment of such Optionee and/or the Option
  shall immediately terminate and cease to be exercisable. The Optionee hereby
  acknowledges and agrees that the investment risk associated with the
  retention of any Shares, whether pursuant to the Minimum Share Ownership
  Policy or otherwise, is the sole responsibility of the Optionee and Optionee
  hereby holds the Corporation harmless against any claim of loss related to
  the retention of the Shares.</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>6.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Exercise.</U></B> The purchase price of Shares
  purchased hereunder shall be paid in full with, or in a combination of, </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>cash or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>shares of
  the Corporation&#146;s Common Stock that have been owned by the Optionee, and have
  been fully vested and freely transferable by the Optionee, for at least six
  months preceding the date of exercise of the Option, duly endorsed or
  accompanied by stock powers executed in blank. However, the Corporation in
  its discretion may permit the Optionee (if the Optionee owns shares that have
  been owned by the Optionee, and have been fully vested and fully </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 2 of 6 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 3.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>transferable
  by the Optionee, for at least six months preceding the date of exercise) to
  &#147;attest&#148; to his ownership of the number of shares required to pay all or part
  of the purchase price (and not require delivery of the shares), in which case
  the Corporation will deliver to the Optionee the number of shares to which
  the Optionee is entitled, net of the &#147;attested&#148; shares. If payment is made in
  whole or in part with shares of the Corporation&#146;s Common Stock, the value of
  such Common Stock shall be the mean between its high and low prices on the
  day of purchase as reported by <I>The New
  York Times </I>following the close of business on the date of
  exercise. No &#147;reload&#148; or other option will be granted by reason of any such
  exercise. The Optionee agrees that, notwithstanding the terms of any
  pre-existing agreement between the Corporation and the Optionee, any shares
  of the Corporation&#146;s Common Stock surrendered (or &#147;attested&#148; to) for payment
  of the exercise price of any options previously granted by the Corporation to
  the Optionee (whether granted under the terms of the Amended and Restated
  Employee Long-Term Incentive Plan or any predecessor program) shall be valued
  in the manner provided in the preceding sentence except to the extent
  otherwise expressly provided by the terms of the program document.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>7.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Exercise After Termination of Employment, Death or Disability</U></B>.
  The provisions covering the exercise of this Option following termination of
  employment are as follows:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination as a result of death or Disability</U></B>
  &#151;If the Optionee&#146;s employment is terminated by reason of death or Disability,
  all vested options may be exercised through the Expiration Date but only from
  the earlier of (i) one year after the option is vested or (ii) one year after
  the date of termination.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination after a Change in Control</U></B>.
  If the Optionee&#146;s employment is terminated for any reason other than for
  Cause (whether voluntary or involuntary) after a Change in Control, all
  vested Options may be exercised through the Expiration Date but only from the
  earlier of (i) one year after the option is vested or (ii) one year after the
  date of termination.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination by the Optionee for Good Reason</U>
  </B>. If the Optionee terminates his employment for Good Reason, all vested
  options may be exercised through the Expiration Date but only from the
  earlier of (i) one year after the option is vested or (ii) one year after the
  date of termination.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Renewal of Employment Agreement</U></B>. If
  the Optionee&#146;s employment is terminated as a result of the non-renewal of the
  Employment Agreement, all vested options may be exercised through the
  Expiration Date but only from the earlier of (i) one year after the option is
  vested or (ii) one year after the date of termination.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Other Termination by the Optionee</U></B>. If
  the Optionee terminates his employment other than as contemplated by clauses
  (a), (b), (c) or (d), all vested options may be exercised through the
  Expiration Date but only from the earlier of (i) one year after the option is exercised or
(ii) one year after the date of termination.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination for Other Reasons </U></B> -- If the Optionee&#146;s employment is
  terminated by the Corporation for any reason other than as contemplated by
  clauses (a), (b) or (d) or as contemplated by Section 4(b), all vested
  options may be exercised through the Expiration Date but only from the
  earlier of (i) one year after the option is vested or (ii) one year after the
  date of termination.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>In no event
  may any portion of the Option be exercised after the Expiration Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Consideration</U></B>. In consideration for the
  Option granted by this Option Agreement, the Optionee hereby agrees to be
  bound by the Nondisclosure provisions set forth in Section 9 of this Option
  Agreement For purposes of Section 9, the term &#147;Company&#148; shall mean the
  Corporation, its affiliates, divisions and subsidiaries, or any other entity
  in which the Corporation, directly or indirectly, controls or has an
  ownership or equity interest equal to or greater than 25.0% of the combined
  voting power of the entity&#146;s then outstanding securities, and their
  respective successors and assigns.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>9.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Nondisclosure of Confidential Information</U></B>.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>For purposes
  of this Option Agreement, the term &#147;Confidential Information&#148; shall mean all
  ideas, inventions, data, databases, know-how, processes, methods, practices,
  specifications, raw materials and preparations, compositions, designs,
  devices, fabrication techniques, technical plans, algorithms, computer
  programs, protocols, client information, medical records, documentation,
  customer names and lists, supplier names and lists, price lists, supplier
  names and lists, apparatus, business plans, marketing plans, financial
  information, chemical and biological reagents, business methods and systems,
  literary and graphical and audiovisual works and sound recordings, mask
  works, computer programs, and the like, and potential trade names,
  trademarks, and logos, in whatever form or medium and which have commercial
  value, and whether or not designated or marked &#147;Confidential&#148; or the like,
  which the Optionee learns, acquires, conceives, creates, develops, or
  improves while employed by the Company and which (1) relate to the past,
  current, or prospective business of the Company or its subsidiaries and (a)
  which have not previously been publicly</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 3 of 6 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 4.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD  VALIGN=TOP>
<P><FONT SIZE=2>disclosed
  without restrictions on use by the Company, or (b) which Optionee knows or
  has good reason to know are not generally publicly known; or (2) are received
  by the Company from a third party under an obligation of confidentiality to
  the third party.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  recognizes and acknowledges that during his or her employment with the
  Company, the Optionee may be given access to or develop Confidential
  Information. The Optionee shall not use or disclose (directly or indirectly)
  any Confidential Information (whether or not developed by the Optionee) at
  any time or in any manner, except as authorized and required in the course of
  employment with the Company. The Optionee shall not disclose to the Company
  or use on behalf of the Company any Confidential Information obtained from
  any former employer or any other third party. All documents and things
  embodying Confidential Information, whether prepared by the Optionee or
  otherwise coming into the Optionee&#146;s possession, are the exclusive property
  of the Company, and must not be removed from any of its premises except as
  required in the course of employment with the Company. All such documents and
  things shall be promptly returned by the Optionee to the Company upon the
  request of the Company and on any termination of employment with the Company.
  The Optionee will not remove any Confidential Information such as documents
  or things or retain them in whole or part in any manner. The Optionee shall
  ensure that any export of Confidential Information undertaken by the Optionee
  or with his/her knowledge or approval shall be in compliance with all
  applicable laws. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  shall promptly disclose to the Company all Confidential Information which the
  Optionee creates, conceives, develops, or improves (either alone or with
  others) referred to below as a &#147;Creation&#148; while in the employment of the
  Company, if the Creation either: (1) relates to any actual or demonstrably
  contemplated business, or research or development project, of the Company or
  its subsidiaries, or to any reasonable extension or variation thereof; or (2)
  results from any work performed by the Optionee for the Company; or (3) was
  created utilizing any of the Company&#146;s equipment, supplies, facilities, time,
  or Confidential Information. The Optionee shall keep complete, accurate, and
  authentic records on all Creations in the manner and form requested by the
  Company. The Optionee shall promptly disclose to the Company, in confidence,
  all patent, copyright, and trademark applications filed by the Optionee
  within one (1) year after termination of employment with the Company and
  which relate to any field in which the Optionee worked at the Company. The
  Optionee agrees that any such application for a patent, copyright
  registration, trademark registration, mask work registration, or similar
  right filed within one (1) year after termination of employment with the Company
  shall be presumed to relate to a Creation of the Optionee created during
  employment at the Company, unless the Optionee can prove otherwise. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  hereby assigns to the Company all of the Optionee&#146;s rights in all of the
  above-described Creations. All such Creations that are subject to copyright
  or mask work protection are explicitly considered by the Optionee and the
  Company to be works made for hire to the extent permitted by law. To the
  extent that any such Creations are subject to copyright protection and are
  not works made for hire, any and all of the Optionee&#146;s copyright and mask
  work interest therein are hereby assigned by the Optionee to the Company, and
  are the exclusive property of the Company. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  agrees to assist the Company in obtaining and/or maintaining patents,
  copyrights, trademarks, mask work rights, and similar rights to any Creations
  assigned by the Optionee to the Company, if and to the extent that the
  Company, in its sole discretion, requests such assistance, the Optionee shall
  sign all documents and do all other things deemed necessary by the Company,
  at the Company&#146;s expense, to obtain and/or maintain such rights, to provide
  confirmatory evidence of the Optionee&#146;s assignment of such Creations to the
  Company, to defend them from invalidation, and to protect them against
  infringement by other parties. The obligations of this paragraph are
  continuing and survive the termination of the Optionee&#146;s employment with the
  Company. The Optionee irrevocably appoints the Chief Executive Officer of the
  Company (with powers of delegation) to act as the Optionee&#146;s agent and
  attorney-in-fact to perform all acts as the Optionee&#146;s agent and to file,
  prosecute, and maintain applications and registrations for patents,
  trademarks, copyrights, mask work rights, and similar rights to any Creations
  assigned by the Optionee to the Company under this Option Agreement, such
  appointment being effective both during the Optionee&#146;s employment by Company,
  and thereafter if the Optionee (1) refuses to perform those acts, or (2) is
  unavailable, within the meaning of any applicable laws. The Optionee
  acknowledges that the grant of the foregoing power of attorney is coupled
  with an interest, is irrevocable, and shall survive his/her death or
  disability. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Damages and Injunctive Relief</U></B>. The
  Optionee understands that if the terms of Section 9 of this Option Agreement
  are violated, the Corporation would be seriously and irreparably damaged, and
  agrees that the Corporation will be entitled to seek appropriate remedies for
  those damages, including, without limitation, injunctive relief to enforce
  any provision of this Agreement and all reasonable attorney&#146;s fees incurred
  by the Corporation to enforce the terms of Section 9.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 4 of 6</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 5. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>11.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Forfeiture</U>.</B> The Optionee will
  immediately forfeit any unexercised portion of the Option for any violations
  of (i) the terms of Section 9 of this Agreement and/or (ii) the non-compete
  obligations set forth in the agreement between the Optionee and the
  Corporation or otherwise pursuant to any written policy of the Corporation,
  in addition to any equitable and legal rights the Corporation has or may
  have. The Optionee understands that the forfeiture of any unexercised portion
  of the Option is only one element of the damages potentially sustained by the
  Corporation for a violation of Section 9 of this Agreement or the non-compete
  obligation described above, and such forfeiture shall not constitute a
  release of any claim that the Company may have for damages, past, present, or
  future. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>12.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Consent Requirement</U></B>. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>If the
  Corporation shall at any time determine that any consent (as hereinafter
  defined) is necessary or desirable as a condition of, or in connection with,
  the granting of this Option, the issuance or purchase of Shares or other
  rights hereunder, or the taking of any other action hereunder (a &#147;Plan
  Action&#148;), then no such Plan Action shall be taken, in whole or in part,
  unless and until such consent shall have been effected or obtained to the
  full satisfaction of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The term
  &#147;consent&#148; as used herein with respect to any action referred to in Section
  12(a) means (i) any and all listings, registrations or qualifications in
  respect thereof upon any securities exchange or under any federal, state or
  local law, rule or regulation, (ii) any and all written agreements and
  representations by the Optionee with respect to the disposition of Shares, or
  with respect to any other matter, which the Corporation shall deem necessary
  or desirable to comply with the terms of any such listing, registration or
  qualification or to obtain an exemption from the requirement that any such
  listing, qualification or registration be made, (iii) any and all consents,
  clearances and approvals in respect of a Plan Action by any governmental or
  other regulatory bodies, and (iv) any and all consents or authorizations
  required to comply with, or required to be obtained under, applicable local
  law or otherwise required by the Corporation. Nothing herein shall require
  the Corporation to list, register or qualify the Shares of its common stock
  on any securities exchange. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>13.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Invalidity and Enforcement</U></B>. If any
  provision of this Agreement is deemed invalid or unenforceable, either in
  whole or in part, this Option Agreement will be deemed amended to delete or
  to modify, as set forth in this Section, the offending provision or
  provisions and to alter the bounds of this Agreement in order to render it
  valid and enforceable. The Corporation and the Optionee specifically request
  that any court having jurisdiction over any dispute relating to this Option
  Agreement modify, if possible, any offending provision so that such provision
  will be enforceable to the maximum extent permitted by State law.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>14.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Employee at Will</U>.</B> The Optionee
  understands that his/her employment with the Corporation is at will and that
  it can be terminated at any time by the Optionee and/or the Corporation,
  subject to Optionee&#146;s rights under the Employment Agreement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>15.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Enforcement by Successors and Assigns</U></B>.
  The Corporation and any of its successors or assignees may enforce the
  Corporation&#146;s rights under this Option Agreement. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>16.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Entire Agreement</U></B>. The Agreement
  supersedes any prior agreement or understandings between the Optionee and the
  Company with respect to nonuse and non-disclosure and constitutes the entire
  agreement between the Corporation and the Optionee. No modification of this
  Option Agreement will have any force or effect unless such modification is in
  writing, signed by the Chief Executive Officer of the Corporation and the
  Optionee, and expressly indicates an intent to modify this Option Agreement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>17.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Interpretation</U></B>. Any dispute, disagreement
  or matter of interpretation which shall arise under this Agreement shall be
  finally determined by the Corporation&#146;s Compensation Committee in its
  absolute discretion.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>18.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Notice of Exercise</U></B>. The Optionee may
  exercise the Option, in accordance with the procedures specified by the
  Corporation from time to time. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>19.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Rights Prior to Exercise</U></B>. The Optionee
  shall not have any rights as a stockholder with respect to any Shares subject
  to this Option prior to the date on which he/she is recorded as the holder of
  such Shares on the records of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>20.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Taxes</U></B>. The Corporation may make such
  provisions and take such steps as it may deem necessary or appropriate for
  the withholding of all federal, state, local and other taxes required by law
  to be withheld with respect to this Option. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 5 of 6 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 6. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>21.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Governing Law</U></B>. This Option Agreement and
  all rights hereunder shall be governed by, and construed and interpreted in accordance
  with, the laws of the state of New Jersey applicable to contracts made and to
  be performed entirely within such state.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>22.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Acknowledgements</U></B>. By execution of this
  Non-Qualified Stock Option Grant Agreement, the Optionee agrees that he/she
  has received and reviewed a copy of:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a) the
  Prospectus <B>(link to Prospectus:</B>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_option/stock_option.htm)<BR>
  relating to the Corporation&#146;s Employee Equity Participation Program and;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b) the
  Quest Diagnostics Incorporated 2005 Annual Report (<B>link to 2005 Annual Report:</B> <BR>
  http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700 to
  Shareholders and Form 10-K);</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c) the
  Corporation&#146;s Policy for Purchasing and Selling Securities (&#147;the Policy&#148;) <B>(link to Trading Policy:</B> <BR>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
  Optionee further agrees to fully comply with the terms of the Policy; and<BR>
  the Corporation&#146;s Executive Share Ownership Guidelines <B>(link to guidelines:</B>
<U>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm);</U></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>OPTIONEE:</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<td width="25%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="75%"  VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By:</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD  VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD  VALIGN=TOP>
<P><FONT SIZE=2><B>Mohapatra, Surya N.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 6 of 6 </FONT></P>

<HR COLOR=#000000 NOSHADE>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P><FONT SIZE=2><B>Exhibit 10.3</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>QUEST
DIAGNOSTICS INCORPORATED<BR>
NON-QUALIFIED STOCK OPTION AGREEMENT</B></FONT></P>

<P><FONT SIZE=2>This Non-Qualified Stock Option Agreement (the &#147;Option
Agreement&#148;), dated as of <B><I>February
15, 2006</I></B> (the &#147;Grant Date&#148;), is by and between Quest Diagnostics
Incorporated, 1290 Wall Street West, Lyndhurst, New Jersey 07071 (the
&#147;Corporation&#148;) and <B><I>Hagemann,
Robert</I></B> (the
&#147;Optionee&#148;) [address].</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Conditions</U></B>.
  This Option Agreement is subject in all respects to the Corporation&#146;s Amended
  and Restated Long-Term Employee Incentive Plan, which is incorporated herein
  by reference. The Optionee acknowledges that he/she has read the terms of the
  Amended and Restated Long-Term Employee Incentive Plan and that those terms
  shall govern in the event of any conflict between them and those of this
  Option Agreement. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>In consideration of the grant of
  the option provided pursuant to this Option Agreement and by accepting the
  terms of this Agreement, the Optionee agrees that all options granted to the
  Optionee by the Corporation prior to the date hereof (the &#147;Prior Options&#148;) shall be subject to forfeiture pursuant
  to paragraph 4(b)(ii) of this Option Agreement (for false attestation under
  the Executive Share Ownership Guidelines of the Corporation (the &#147;
  Minimum Share Ownership Policy&#148;)), the Shares obtained on exercise of such
  Prior Options after the date hereof shall be subject to the Minimum Share
  Ownership Policy pursuant to paragraph
  5(b) of this Option Agreement and the terms of paragraphs 4(b)(ii) and 5(b)
  hereof are made a part of the terms of each of the Prior Options. </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>In
  consideration of the grant of the option provided pursuant to this Option
  Agreement and by accepting the terms of this Agreement, the Optionee agrees
  that this Option shall be subject to forfeiture pursuant to paragraph
  4(b)(iii) of this Agreement.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>This Option Agreement shall become effective only after
  the Optionee has executed and returned to the Executive Compensation
  Department (to the attention of Lisa Zajac (1290 Wall Street West &#150; 5<SUP>th</SUP>
  Floor, Lyndhurst, NJ 07071) a signed copy of this Option Agreement and shall
  be revoked if not executed and returned to Lisa Zajac within thirty (30) days
  of receipt by the Optionee.. </I></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Award of Option</U></B>.
  The Corporation hereby awards to the Optionee an option (the &#147;Option&#148;) to
  purchase from the Corporation such number of shares of the Corporation&#146;s
  common stock (the &#147;Shares&#148;) at the exercise price set forth in this Option
  Agreement (the &#147;Exercise Price&#148;) below. This option shall vest equally over a
  three-year period. If the foregoing results in a fractional number of Shares
  subject to the Option vesting on any vesting date, the number of Shares
  subject to the Option vesting on the first and second vesting dates shall be
  rounded down to the previous whole number of Shares and the Shares subject to
  the Option vesting on the third vesting date shall be rounded up to the next
  whole number of Shares, as shall be necessary in order to result in a vesting
  of 100% of the Shares subject to the Option.<U>The Compensation Committee of
  the Corporation may, in its sole discretion, convert this Option at any time
  to a stock settled stock appreciation grant.</U></FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="30%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="69%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Number of Shares Subject to Option: 113,334</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Exercise Price per Share: $52.235</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Expiration Date: February 15, 2013</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B><I>Vesting Schedule:</I></B></FONT></P>

<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="69%">
<TR style="font-size:1px">
<TD WIDTH="40%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="11%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="11%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Number of Shares Subject to Option</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Vesting
  Dates</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>% of Grant</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Incremental</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Cumulative</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>February 15, 2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>33.33</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>37,778</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>37,778</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>February 15, 2008</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>33.33</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>37,778</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>75,556</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>February 15, 2009</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>33.34</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>37,778</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>113,334</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>This option shall expire, and no shares may be
  purchased pursuant to this Option, after the expiration date set forth above
  (the &#147;Expiration Date&#148;). </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 1 of 9<BR>EOAgmt</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2 COLOR=BLACK>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
Page 2.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Not An Incentive Stock Option</U>.</B>
  This Option is not intended to be an &#147;incentive stock option&#148; within the
  meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
  &#147;Code&#148;) and this Agreement shall be construed and interpreted in accordance
  with such intention.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Vesting</U>.</B>
  Except as otherwise provided below, the Option shall vest and become
  exercisable as to the percentage of Shares subject to the Option on the
  vesting dates [set forth above][set forth on the &#147;Summary Grant&#148; page at the
  Smith Barney website] (the &#147;Vesting Dates&#148;). </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination</U>.</B>
  Unless the Optionee&#146;s employment is terminated for one of the reasons set
  forth in Section 4(b) through (i), at the Optionee&#146;s termination of employment
  prior to the third anniversary of the date of this Agreement, the Optionee
  will vest in and have the right to purchase a percentage of the Shares
  subject to this Option determined by dividing (i) the number of whole months
  from the most recent anniversary of the grant date (February 15) to the
  termination date of the Optionee&#146;s employment by (ii) 36, and the Option will
  cease to be exercisable and will be cancelled for the balance of the Shares
  subject to this Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Notwithstanding anything to the contrary contained
  herein, if the Optionee is on a leave of absence approved by the Corporation
  for medical, personal, educational and/or other permissible purposes pursuant
  to policies of the Corporation as in effect on the date hereof, for a consecutive
  twelve-month period, such Optionee will be deemed terminated for purposes of
  this Agreement on the twelve month anniversary of the commencement of such
  leave of absence and this Option shall cease to vest at the end of such
  twelve-month period and the Optionee will forfeit any unvested portion of the
  Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Cause, Dereliction of Duties or
  Harmful Acts; Breach of Share Ownership Guidelines; Loss of Equity Award
  Eligibility Status.</U></B> (i) If the Optionee shall cause the
  Corporation to suffer financial harm or damage to its reputation (either
  before or after termination of employment) through (x) dishonesty, (y)
  violation of law in the course of the Optionee&#146;s employment or violation of
  the Corporation&#146;s Corporate Compliance Manual and compliance bulletins or
  other written policies, or (z) material deviation from the duties owed the
  Corporation by the Optionee, this Option, whether or not vested, shall expire
  and be cancelled to the extent it has not been exercised and be of no further
  force or effect.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(ii) If the Optionee is subject to the Minimum Share
  Ownership Policy, any false attestation made under the Minimum Share
  Ownership Policy may result in the immediate cancellation of this Option and
  all Prior Options (to the extent not exercised), whether or not vested.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(iii) If the Optionee&#146;s employment status in the
  Corporation is changed such that the Optionee will no longer be eligible to
  receive options pursuant to the Equity Award Eligibility Policy of the
  Corporation as in effect on the date hereof and attached as Annex A to this
  Agreement and such changed status continues for a consecutive 90 day period,
  this Option shall cease to vest at the end of such 90-day period (and the
  Optionee will then vest in and have the right to purchase a percentage of the
  Shares subject to this Option determined by dividing (i) the number of whole
  months from the most recent anniversary of the grant date (February 15) to
  the end of such 90-day period by (ii) 36), and the Optionee will immediately
  forfeit any unvested portion of the Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Death</U>.</B> If the
  Optionee shall die while employed, this Option shall vest as to all Shares
  subject to the Option on the date of the Optionee&#146;s death. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Disability</U>.</B>
  If the Optionee&#146;s employment shall terminate as a result of disability (as
  defined in Section 22(e)(3) of the Code), this Option shall vest as to all
  Shares subject to the Option on the date of the Optionee&#146;s termination of
  employment. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Change of Control</U>.</B>
  This Option shall vest as to all shares immediately on the effective date of
  a change of control, provided the Optionee was actively employed by the
  Corporation on such date. For purposes of this Agreement the term &#147;change of
  control&#148; shall mean and shall be deemed to occur if and when:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Any person (as such term is used in Sections 13(d)
  and 14(d)(2) of the Securities Exchange Act of 1934) is or becomes the
  beneficial owner, directly or indirectly, of securities of the Corporation
  representing 40% of more of the combined voting power of the Corporation&#146;s
  then outstanding securities; or</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 2 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2 COLOR=BLACK>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
Page 3.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The individuals who, as of the Grant Date,
  constituted the Corporation&#146;s Board of Directors (the &#147;Incumbent Board&#148;)
  cease for any reason to constitute at least a majority of the Board; <I>provided,
  however</I>, that any individual (other than any individual whose
  initial assumption of office is in connection with an actual or threatened
  election contest (as such term is used in Rule 14a-11 of Regulation A
  promulgated under the Securities Exchange Act of 1934)), becoming a director
  subsequent to the Grant Date, whose election, or nomination for election by
  the stockholders of the Corporation, was approved by a vote of at least a
  majority of the directors then comprising the Incumbent Board, shall be
  considered as though such individual was a member of the Incumbent Board; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Shareholders of the Corporation approve an
  agreement, providing for (a) a transaction in which the Corporation will
  cease to be an independent publicly owned corporation, or (b) the sale or
  other disposition of all or substantially all of the Corporation&#146;s assets, or
  (c) a plan of partial or complete liquidation of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Involuntary Termination with
  Severance</U></B>. If prior to the third anniversary of
  the date of this Agreement, the Optionee&#146;s employment is terminated by the
  Corporation and, as a result, the Optionee becomes eligible for severance
  benefits under one of the Corporation&#146;s Severance Plans, the Optionee will
  immediately vest in and have the right to purchase a percentage of the Shares
  subject to this Option determined by dividing (i) the number of whole months
  from the most recent anniversary of the grant date (February 15) to the date
  that is twelve months after the termination date of the Optionee&#146;s employment
  by (ii) 36, and the Option will cease to be exercisable and will be cancelled
  for the balance of the Shares subject to this Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(g)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Divestiture</U>.</B>
  If prior to the third anniversary of the date of this Agreement, the
  Optionee&#146;s employment is terminated by the Corporation due to a divestiture
  and the Optionee is employed by the purchasing entity, then the Optionee will
  immediately vest in a percentage of the Shares subject to this Option
  determined by dividing (i) the number of whole months from the most recent
  anniversary of the grant date (February 15) to the date that is twelve months
  after the termination date of the Optionee&#146;s employment by (ii) 36, and the
  Option will cease to be exercisable and will be cancelled for the balance of
  the Shares subject to this Option. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(h)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Transfers.</U></B>  If
  the Optionee shall be transferred from the Corporation to a subsidiary
  company (being a 50% owned entity within the meaning of Section 425(f) of the
  Code), or joint venture or similar entity existing as of the date of this
  Agreement in which the Corporation has at least a 33.33% interest (&#147;joint
  venture&#148;) or vice versa or from one subsidiary company (or joint venture) to
  another, the Optionee&#146;s employment shall not be deemed to have terminated.
  If, while the Optionee is employed by such a subsidiary company or joint
  venture, such subsidiary company or joint venture shall cease to be a
  subsidiary company or joint venture as described above and the Optionee is
  not thereupon transferred to and employed by the Corporation or another
  subsidiary company or joint venture as described above, then the Optionee&#146;s
  employment will be treated as a termination due to a divestiture under clause
  (g) above as of the date that the Optionee&#146;s employer ceases to be such a
  subsidiary company or joint venture of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Retirement.</U></B>
  If the Optionee&#146;s employment shall terminate with the consent of the Corporation
  on or after the Optionee&#146;s attaining age 60, this Option shall vest and be
  exercisable as to all Shares subject to this Option on the effective
  termination date of the Optionee&#146;s employment.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Transferability</U></B>.
  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The rights under this Option Agreement shall not be
  transferable other than by will or the laws of descent and distribution and
  may be exercised during the lifetime of the Optionee only by the Optionee
  except to the extent of a disability (as defined in Section 22(e)(3) of the
  Code), in which case the Option may be exercised by the Optionee&#146;s legal
  representative.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>If the Optionee is subject to the Minimum Share
  Ownership Policy, the Optionee agrees that any shares issued hereunder or
  pursuant to any Prior Option shall be subject to the restrictions set forth
  in the Minimum Share Ownership Policy. If the Optionee is not in compliance
  with the Minimum Share Ownership Policy, the Corporation may terminate the
  employment of such Optionee and/or the Option shall immediately terminate and
  cease to be exercisable. The Optionee hereby acknowledges and agrees that the
  investment risk associated with the retention of any Shares, whether pursuant
  to the Minimum Share Ownership Policy or otherwise, is the sole
  responsibility of the Optionee and Optionee hereby holds the Corporation
  harmless against any claim of loss related to the retention of the Shares.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>6.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Exercise.</U></B> The
  purchase price of Shares purchased hereunder shall be paid in full with, or
  in a combination of, (a) cash or (b) shares of the Corporation&#146;s Common Stock
  that have been owned by the Optionee, and have been fully vested and freely
  transferable by the Optionee, for at least six months preceding the date of
  exercise of the Option, duly endorsed or accompanied by stock powers executed
  in blank. However, the Corporation in its discretion may permit the Optionee
  (if the </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 3 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2 COLOR=BLACK>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
Page 4.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>Optionee owns shares that have been owned by the
  Optionee, and have been fully vested and fully transferable by the Optionee,
  for at least six months preceding the date of exercise) to &#147;attest&#148; to his
  ownership of the number of shares required to pay all or part of the purchase
  price (and not require delivery of the shares), in which case the Corporation
  will deliver to the Optionee the number of shares to which the Optionee is
  entitled, net of the &#147;attested&#148; shares. If payment is made in whole or in
  part with shares of the Corporation&#146;s Common Stock, the value of such Common
  Stock shall be the mean between its high and low prices on the day of
  purchase as reported by <I>The New York Times </I>following the close
  of business on the date of exercise. No &#147;reload&#148; or other option will be
  granted by reason of any such exercise. The Optionee agrees that,
  notwithstanding the terms of any pre-existing agreement between the
  Corporation and the Optionee, any shares of the Corporation&#146;s Common Stock
  surrendered (or &#147;attested&#148; to) for payment of the exercise price of any
  options previously granted by the Corporation to the Optionee (whether
  granted under the terms of the Amended and Restated Employee Long-Term
  Incentive Plan or any predecessor program) shall be valued in the manner
  provided in the preceding sentence except to the extent otherwise expressly
  provided by the terms of the program document.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>7.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Exercise After Termination of
  Employment, Death or Disability</U></B>. The provisions
  covering the exercise of this Option following termination of employment are
  as follows:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination in General.</U></B>
  If the Optionee shall terminate his employment for any reason other than
  those described in Section 7(b) through (f), all of the vested percentage of
  the Option may be exercised for ninety (90) days following such termination
  (but not beyond the Expiration Date) and the Option shall thereafter expire
  and cease to be exercisable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Death.</U></B> If the
  Optionee shall die while employed, the Option may be exercised through the
  Expiration Date in respect of all of the Shares subject to the Option. If the
  Optionee shall die after termination of employment but while the Option is
  still exercisable, it shall remain exercisable to the same extent through the
  first anniversary of the date of death but not beyond the Expiration Date;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Disability.</U></B>
  If the Optionee&#146;s employment shall terminate as a result of disability (as
  defined in Section 22(e)(3) of the Code), the Option shall remain exercisable
  through the Expiration Date;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Involuntary Termination with
  Severance</U></B>. If the Optionee&#146;s employment is terminated
  by the Corporation and, as a result, the Optionee becomes eligible for
  severance benefits under the Corporation&#146;s Severance Plans, then to the
  extent this Option is vested and exercisable (and becomes vested and
  exercisable under Section 4(f)), it may be exercised through the first
  anniversary of the date of termination (but not beyond the Expiration Date)
  and shall thereafter expire. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Divestiture</U></B>.
  If prior to the third anniversary of the date of this Agreement, the Optionee&#146;s
  employment is terminated by the Corporation due to a divestiture and the
  Optionee is employed by the purchasing entity, then to the extent this Option
  is vested and exercisable (and becomes vested and exercisable under Section
  4(g)), it may be exercised through the first anniversary of the date of
  termination (but not beyond the Expiration Date) and shall thereafter expire.
  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Retirement.</U></B>
  If the Optionee&#146;s employment shall terminate as a result of Retirement as
  defined in Section 4(i) of this Option, all of the Option may be exercised as
  to all of the Shares subject to the Option through the Expiration Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>In no event may any portion of the Option be
  exercised after the Expiration Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Consideration</U></B>.
  In consideration for the Option granted by this Option Agreement, the
  Optionee hereby agrees to be bound by the Nondisclosure and Nonsolicitation
  provisions set forth in Sections 9 and 10 of this Option Agreement and the
  non-compete obligations set forth in the agreement between the Optionee and
  the Corporation or otherwise pursuant to any written policy of the
  Corporation. For purposes of Sections 9 and 10, the term &#147;Company&#148; shall mean
  the Corporation, its affiliates, divisions and subsidiaries, or any other
  entity in which the Corporation, directly or indirectly, controls or has an
  ownership or equity interest equal to or greater than 25.0% of the combined
  voting power of the entity&#146;s then outstanding securities, and their
  respective successors and assigns.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>9.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Nondisclosure of Confidential
  Information</U>. </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For purposes of this Option Agreement, the term
  &#147;Confidential Information&#148; shall mean all ideas, inventions, data, databases,
  know-how, processes, methods, practices, specifications, raw materials and
  preparations, compositions, designs, devices, fabrication techniques,
  technical plans, algorithms, computer programs, protocols, client
  information, medical records, documentation, customer names and lists,
  supplier names and lists, price lists, supplier names and lists, apparatus,
  business plans, marketing plans, financial information, chemical and
  biological reagents, business methods and systems, literary and graphical and
  audiovisual works and sound recordings, mask works, </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 4 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2 COLOR=BLACK>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
Page 5.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>computer programs, and the like, and potential trade
  names, trademarks, and logos, in whatever form or medium and which have
  commercial value, and whether or not designated or marked &#147;Confidential&#148; or
  the like, which the Optionee learns, acquires, conceives, creates, develops,
  or improves while employed by the Company and which (1) relate to the past,
  current, or prospective business of the Company or its subsidiaries and (a)
  which have not previously been publicly disclosed without restrictions on use
  by the Company, or (b) which Optionee knows or has good reason to know are
  not generally publicly known; or (2) are received by the Company from a third
  party under an obligation of confidentiality to the third party.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Optionee recognizes and acknowledges that during
  his or her employment with the Company, the Optionee may be given access to
  or develop Confidential Information. The Optionee shall not use or disclose
  (directly or indirectly) any Confidential Information (whether or not
  developed by the Optionee) at any time or in any manner, except as authorized
  and required in the course of employment with the Company. The Optionee shall
  not disclose to the Company or use on behalf of the Company any Confidential
  Information obtained from any former employer or any other third party. All
  documents and things embodying Confidential Information, whether prepared by
  the Optionee or otherwise coming into the Optionee&#146;s possession, are the
  exclusive property of the Company, and must not be removed from any of its
  premises except as required in the course of employment with the Company. All
  such documents and things shall be promptly returned by the Optionee to the
  Company upon the request of the Company and on any termination of employment
  with the Company. The Optionee will not remove any Confidential Information
  such as documents or things or retain them in whole or part in any manner.
  The Optionee shall ensure that any export of Confidential Information
  undertaken by the Optionee or with his/her knowledge or approval shall be in
  compliance with all applicable laws.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Optionee shall promptly disclose to the Company
  all Confidential Information which the Optionee creates, conceives, develops,
  or improves (either alone or with others) referred to below as a &#147;Creation&#148;
  while in the employment of the Company, if the Creation either: (1) relates
  to any actual or demonstrably contemplated business, or research or
  development project, of the Company or its subsidiaries, or to any reasonable
  extension or variation thereof; or (2) results from any work performed by the
  Optionee for the Company; or (3) was created utilizing any of the Company&#146;s
  equipment, supplies, facilities, time, or Confidential Information. The Optionee
  shall keep complete, accurate, and authentic records on all Creations in the
  manner and form requested by the Company. The Optionee shall promptly
  disclose to the Company, in confidence, all patent, copyright, and trademark
  applications filed by the Optionee within one (1) year after termination of
  employment with the Company and which relate to any field in which the
  Optionee worked at the Company. The Optionee agrees that any such application
  for a patent, copyright registration, trademark registration, mask work
  registration, or similar right filed within one (1) year after termination of
  employment with the Company shall be presumed to relate to a Creation of the
  Optionee created during employment at the Company, unless the Optionee can
  prove otherwise.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Optionee hereby assigns to the Company all of
  the Optionee&#146;s rights in all of the above-described Creations. All such
  Creations that are subject to copyright or mask work protection are
  explicitly considered by the Optionee and the Company to be works made for
  hire to the extent permitted by law. To the extent that any such Creations
  are subject to copyright protection and are not works made for hire, any and
  all of the Optionee&#146;s copyright and mask work interest therein are hereby assigned
  by the Optionee to the Company, and are the exclusive property of the
  Company. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Optionee agrees to assist the Company in
  obtaining and/or maintaining patents, copyrights, trademarks, mask work
  rights, and similar rights to any Creations assigned by the Optionee to the
  Company, if and to the extent that the Company, in its sole discretion,
  requests such assistance, the Optionee shall sign all documents and do all
  other things deemed necessary by the Company, at the Company&#146;s expense, to obtain
  and/or maintain such rights, to provide confirmatory evidence of the
  Optionee&#146;s assignment of such Creations to the Company, to defend them from
  invalidation, and to protect them against infringement by other parties. The
  obligations of this paragraph are continuing and survive the termination of
  the Optionee&#146;s employment with the Company. The Optionee irrevocably appoints
  the Chief Executive Officer of the Company (with powers of delegation) to act
  as the Optionee&#146;s agent and attorney-in-fact to perform all acts as the
  Optionee&#146;s agent and to file, prosecute, and maintain applications and
  registrations for patents, trademarks, copyrights, mask work rights, and
  similar rights to any Creations assigned by the Optionee to the Company under
  this Option Agreement, such appointment being effective both during the
  Optionee&#146;s employment by Company, and thereafter if the Optionee (1) refuses
  to perform those acts, or (2) is unavailable, within the meaning of any
  applicable laws. The Optionee acknowledges that the grant of the foregoing
  power of attorney is coupled with an interest, is irrevocable, and shall
  survive his/her death or disability.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 5 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P STYLE='MARGIN-RIGHT:301.3PT; TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Non-Qualified
Stock Option Agreement<BR>
February 15, 2006<BR>
Page 6. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Nonsolicitation </U></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For a period of one (1) year following the
  termination of the Optionee&#146;s employment for any reason, the Optionee will
  not directly or indirectly solicit the Business of any customer of the
  Company of whom the Optionee acquired knowledge and/or had direct or indirect
  contact during the one (1) year period prior to the termination of the
  Optionee&#146;s employment relationship with the Company for any purpose other
  than to obtain, maintain and/or service the customer&#146;s Business for the
  Company. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For a period of one (1) year following the
  termination of the Optionee&#146;s employment for any reason, the Optionee agrees
  not to, directly or indirectly, recruit or solicit any employees of the
  Company to work for the Optionee or any other person or entity.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>As used in this Option Agreement, the following
  terms shall have these respective definitions:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Current Business&#148; shall mean and include: providing
  clinical testing information services for the diagnosis, monitoring, and
  treatment of disease; providing clinical laboratory management services;
  providing medical informatics services (i.e., the statistical analysis of
  medical information) and consulting services based on such analysis;
  providing data analysis, medical information services, and database management
  services for the health care industry; providing clinical testing information
  services in support of clinical trials, and clinical testing products for use
  in clinical trials; providing services of storage, retrieval, and
  communication of medical information via interactive computer networks;
  providing to managed care organizations, hospitals, employers, and other
  institutional healthcare providers access to a network of clinical diagnostic
  laboratories providing services of processing requests for diagnostic tests,
  performing tests, reporting test results, and paying claims to network
  laboratories; providing quality and utilization management; providing
  consolidated chronological reports in graphical and/or numerical form,
  representing the results of clinical diagnostic tests performed on individual
  patients and groups of patients over monitored periods of time, together with
  analysis of the results; and manufacturing and selling clinical diagnostic
  assay kits, apparatus, and reagents.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Business&#148; shall include the Current Business and
  any other product or service which the Company provided during the one (1)
  year period prior to the Optionee&#146;s termination of employment and during the
  one (1) year period following the Optionee&#146;s termination of employment, but
  the restriction on products and services introduced after the Optionee&#146;s
  termination of employment shall exclude products and services that were not
  planned, discussed, or contemplated prior to the Optionee&#146;s termination of
  employment.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Indirectly Solicit&#148; shall include, but is not be
  limited to, providing the Company&#146;s Confidential Information to another
  individual, or entity, allowing the use of the Optionee&#146;s name by any company
  (or any employees of any other company) other than the Company, in the
  solicitation of the Business of Company&#146;s customers.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>11.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Damages and Injunctive Relief</U></B>.
  The Optionee understands that if the terms of Section 9 and/or 10 of this
  Option Agreement are violated, the Corporation would be seriously and
  irreparably damaged, and agrees that the Corporation will be entitled to seek
  appropriate remedies for those damages, including, without limitation,
  injunctive relief to enforce any provision of this Agreement and all
  reasonable attorney&#146;s fees incurred by the Corporation to enforce the terms
  of these Sections.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>12.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Forfeiture</U></B>.
  The Optionee will immediately forfeit any unexercised portion of the Option
  for any violations of (i) the terms of Sections 9 and/or 10 of this Agreement
  and/or (ii) the non-compete obligations set forth in the agreement between
  the Optionee and the Corporation or otherwise pursuant to any written policy
  of the Corporation, in addition to any equitable and legal rights the
  Corporation has or may have. The Optionee understands that the forfeiture of
  any unexercised portion of the Option is only one element of the damages
  potentially sustained by the Corporation for a violation of Sections 9 and/or
  10 of this Agreement or the non-compete obligation described above, and such
  forfeiture shall not constitute a release of any claim that the Company may
  have for damages, past, present, or future.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 6 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2 COLOR=BLACK>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
Page 7.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2 FACE=ARIAL>13.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>(a) <B><U>Consent
  Requirement</U></B>. If the Corporation shall at any time determine
  that any consent (as hereinafter defined) is necessary or desirable as a
  condition of, or in connection with, the granting of this Option, the
  issuance or purchase of Shares or other rights hereunder, or the taking of
  any other action hereunder (a &#147;Plan Action&#148;), then no such Plan Action shall
  be taken, in whole or in part, unless and until such consent shall have been
  effected or obtained to the full satisfaction of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>(b) <B><U>Definition
  of Consent</U></B>. The term &#147;consent&#148; as used herein with respect to
  any action referred to in Section&nbsp;13(a) means (i) any and all listings,
  registrations or qualifications in respect thereof upon any securities
  exchange or under any federal, state or local law, rule or regulation, (ii)&nbsp;any
  and all written agreements and representations by the Optionee with respect
  to the disposition of Shares, or with respect to any other matter, which the
  Corporation shall deem necessary or desirable to comply with the terms of any
  such listing, registration or qualification or to obtain an exemption from
  the requirement that any such listing, qualification or registration be made,
  (iii) any and all consents, clearances and approvals in respect of a Plan
  Action by any governmental or other regulatory bodies, and (iv) any and all
  consents or authorizations required to comply with, or required to be
  obtained under, applicable local law or otherwise required by the
  Corporation. Nothing herein shall require the Corporation to list, register
  or qualify the Shares of its common stock on any securities exchange.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>14.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Invalidity and Enforcement</U></B>.
  If any provision of this Agreement is deemed invalid or unenforceable, either
  in whole or in part, this Option Agreement will be deemed amended to delete
  or to modify, as set forth in this Section, the offending provision or
  provisions and to alter the bounds of this Agreement in order to render it
  valid and enforceable. The Corporation and the Optionee specifically request
  that any court having jurisdiction over any dispute relating to this Option
  Agreement modify, if possible, any offending provision so that such provision
  will be enforceable to the maximum extent permitted by State law.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>15.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Employee at Will</U>.</B>
  The Optionee understands that his/her employment with the Corporation is at
  will and that it can be terminated at any time by the Optionee and/or the
  Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>16.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Enforcement by Successors and
  Assigns</U></B>. The Corporation and any of its successors or
  assignees may enforce the Corporation&#146;s rights under this Option Agreement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>17.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Entire Agreement</U></B>.
  The Agreement supersedes any prior agreement or understandings between the
  Optionee and the Company with respect to nonsolicitation, nonuse, and
  non-disclosure and constitutes the entire agreement between the Corporation
  and the Optionee. No modification of this Option Agreement will have any
  force or effect unless such modification is in writing, signed by the Chief
  Executive Officer of the Corporation and the Optionee, and expressly
  indicates an intent to modify this Option Agreement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>18.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Interpretation</U></B>.
  Any dispute, disagreement or matter of interpretation which shall arise under
  this Agreement shall be finally determined by the Corporation&#146;s Compensation
  Committee in its absolute discretion.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>19.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Notice of Exercise</U></B>.
  The Optionee may exercise the Option, in accordance with the procedures
  specified by the Corporation from time to time.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>20.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Rights Prior to Exercise</U>.</B>
  The Optionee shall not have any rights as a stockholder with respect to any
  Shares subject to this Option prior to the date on which he/she is recorded
  as the holder of such Shares on the records of the Corporation. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>21.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Taxes</U></B>. The
  Corporation may make such provisions and take such steps as it may deem
  necessary or appropriate for the withholding of all federal, state, local and
  other taxes required by law to be withheld with respect to this Option. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>22.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Governing Law</U></B>.
  This Option Agreement and all rights hereunder shall be governed by, and
  construed and interpreted in accordance with, the laws of the state of New
  Jersey applicable to contracts made and to be performed entirely within such
  state.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Acknowledgements</U></B>.
  By execution of this Non-Qualified Stock Option Grant Agreement, the Optionee
  agrees that he/she has received and reviewed a copy of: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>(a) the Prospectus <B>(link
  to Prospectus:</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_option/stock_option.htm)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>relating to the Corporation&#146;s Employee Equity
  Participation Program and; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>(b) the Quest Diagnostics Incorporated 2005 Annual
  Report <B>(link to 2005 Annual Report:</B>
  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700
  to Shareholders and Form 10-K); </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>(c) the Corporation&#146;s Policy for Purchasing and
  Selling Securities (&#147;the Policy&#148;) <B>(link to
  Trading Policy:</B><BR>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
  Optionee further agrees to fully comply with
  the terms of the Policy; </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 7 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2 COLOR=BLACK>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
Page 8.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE="2">the Corporation&#146;s Executive Share Ownership
Guidelines <B>(link to guidelines<U>: </U></B><BR><U>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm</U>);
and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>the Corporation&#146;s Equity Award Eligibility Policy
  attached hereto as Annex A.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>OPTIONEE:</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="24%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="72%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By:</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>Hagemann, Robert</I></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 8 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2 COLOR=BLACK>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
Page 9.</FONT></P>



<P ALIGN=CENTER><FONT SIZE=2><B>Annex
A</B><BR><B>Quest
Diagnostics Incorporated<BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Option Eligibility </U></B></FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Unreduced Work Schedule </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>One of the following salary grades:</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Corporate VP or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Salary Grade 53 or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Research &amp; Development - Grade
  RD6 or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Medical Director - Grade MD2</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>For
employees whose salary is administered outside the standard Quest structure (i.e.,
MedPlus, International, Clinical Trials Europe), a Quest Diagnostics salary
grade has been assigned consistent with the above requirements. This grade is
stored within the Company&#146;s Stock Administration System. </B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT:
Meeting the criteria for &#147;Option Eligibility&#148; <I>does
not guarantee an award</I>. All grants are subject to a separate
approval process.</B></FONT></P>

<P ALIGN=RIGHT><FONT SIZE=2>Page 9 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>5
<FILENAME>ex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P><FONT SIZE=2><B>Exhibit 10.4</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>QUEST DIAGNOSTICS INCORPORATED<BR>
NON-QUALIFIED STOCK OPTION AGREEMENT</B></FONT></P>

<P><FONT SIZE=2>This
Non-Qualified Stock Option Agreement (the &#147;Option Agreement&#148;), dated as of <I>February 15, 2006</I> (the &#147;Grant
Date&#148;), is
by and between Quest Diagnostics Incorporated, 1290 Wall Street West,
Lyndhurst, New Jersey 07071 (the &#147;Corporation&#148;) and <I><B>Zewe, David M.</B></I> (the &#147;Optionee&#148;)  [address].</FONT></P>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Conditions</U></B>.  This Option Agreement is subject in all respects to the
  Corporation&#146;s Amended and Restated Long-Term Employee Incentive Plan, which
  is incorporated herein by reference.
  The Optionee acknowledges that he/she has read the terms of the
  Amended and Restated Long-Term Employee Incentive Plan and that those terms
  shall govern in the event of any conflict between them and those of this
  Option Agreement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>In consideration of the grant of the option provided pursuant to this
  Option Agreement and by accepting the terms of this Agreement, the Optionee
  agrees that all options granted to the Optionee by the Corporation prior to
  the date hereof (the &#147;Prior Options&#148;) shall be subject to forfeiture pursuant
  to paragraph 4(b)(ii) of this Option Agreement (for false attestation under
  the Executive Share Ownership Guidelines of the Corporation (the &#147; Minimum
  Share Ownership Policy&#148;)), the Shares obtained on exercise of such Prior
  Options after the date hereof shall be subject to the Minimum Share Ownership
  Policy pursuant to paragraph 5(b) of this Option Agreement and the terms of
  paragraphs 4(b)(ii) and 5(b) hereof are made a part of the terms of each of
  the Prior Options.  </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>In consideration of the grant of the option provided pursuant to this
  Option Agreement and by accepting the terms of this Agreement, the Optionee
  agrees that this Option shall be subject to forfeiture pursuant to paragraph
  4(b)(iii) of this Agreement. </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>This Option Agreement shall become
  effective only after the Optionee has executed and returned to the Executive
  Compensation Department (to the attention of Lisa Zajac (1290 Wall Street West
  &#150; 5<SUP>th</SUP> Floor, Lyndhurst, NJ
  07071) a signed copy of this Option Agreement and shall be revoked if
  not executed and returned to Lisa Zajac within thirty (30) days of receipt by
  the Optionee.</I></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Award of Option</U></B>.  The Corporation hereby awards to the
  Optionee an option (the &#147;Option&#148;) to purchase from the Corporation such
  number of shares of the Corporation&#146;s common stock (the &#147;Shares&#148;) at the
  exercise price set forth in this Option Agreement (the &#147;Exercise Price&#148;)
  below. This option shall vest equally over a three-year period. If the
  foregoing results in a fractional number of Shares subject to the Option
  vesting on any vesting date, the number of Shares subject to the Option
  vesting on the first and second vesting dates shall be rounded down to the
  previous whole number of Shares and the Shares subject to the Option vesting
  on the third vesting date shall be rounded up to the next whole number of
  Shares, as shall be necessary in order to result in a vesting of 100% of the
  Shares subject to the Option.  <U>The
  Compensation Committee of the Corporation may, in its sole discretion,
  convert this Option at any time to a stock settled stock appreciation grant.</U></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="40%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="60%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Number of Shares Subject to Option:
63,334</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Exercise Price per Share:
$52.235</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Expiration Date: February 15, 2013</FONT></P>
</TD>
</TR>
</TABLE>




<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="70%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="30%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="22%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="30%" COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>Vesting Schedule:</I></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP nowrap>
<P ALIGN=CENTER><FONT SIZE=1><B>Number
  of Shares Subject to Option</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Vesting Dates</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>%
  of Grant</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=1><B>Incremental</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=1><B>Cumulative</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>February 15, 2007</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>33.33%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=2>21,111</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=2>21,111</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>February 15, 2008</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>33.33%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=2>21,111</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=2>42,222</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>February 15, 2009</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>33.34%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=2>21,112</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=2>63,334</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="99%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>This option shall expire,
  and no shares may be purchased pursuant to this Option, after the expiration
  date set forth above (the &#147;Expiration Date&#148;).</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 1 of 9<BR>
EOAgmt</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 2.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="84%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Not An Incentive Stock Option</U>.</B>  This Option is not intended to be an
  &#147;incentive stock option&#148; within the meaning of Section 422 of the Internal
  Revenue Code of 1986, as amended (the &#147;Code&#148;) and this Agreement shall be
  construed and interpreted in accordance with such intention. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Vesting</U>.</B> Except as otherwise provided
  below, the Option shall vest and become exercisable as to the percentage of
  Shares subject to the Option on the vesting dates [set forth above][set forth
  on the &#147;Summary Grant&#148; page at the Smith Barney website] (the &#147;Vesting
  Dates&#148;).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination</U>.</B>  Unless the Optionee&#146;s employment is terminated for one of the
  reasons set forth in Section 4(b) through (i), at the Optionee&#146;s termination
  of employment prior to the third anniversary of the date of this Agreement,
  the Optionee will vest in and have the right to purchase a percentage of the
  Shares subject to this Option determined by dividing (i) the number of whole
  months from the most recent anniversary of the grant date (February 15) to
  the termination date of the Optionee&#146;s employment by (ii) 36, and the Option
  will cease to be exercisable and will be cancelled for the balance of the
  Shares subject to this Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Notwithstanding anything to the contrary
  contained herein, if the Optionee is on a leave of absence approved by the
  Corporation for medical, personal, educational and/or other permissible
  purposes pursuant to policies of the Corporation as in effect on the date
  hereof, for a consecutive twelve-month period, such Optionee will be deemed
  terminated for purposes of this Agreement on the twelve month anniversary of
  the commencement of such leave of absence and this Option shall cease to vest
  at the end of such twelve-month period and the Optionee will forfeit any
  unvested portion of the Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Cause, Dereliction of Duties or Harmful Acts; Breach of Share
  Ownership Guidelines; Loss of Equity Award Eligibility Status.</U></B>  (i) If the Optionee shall cause the
  Corporation to suffer financial harm or damage to its reputation  (either before or after termination of
  employment) through (x) dishonesty, (y) violation of law in the course of the
  Optionee&#146;s employment or violation of the Corporation&#146;s Corporate Compliance
  Manual and compliance bulletins or other written policies, or (z) material
  deviation from the duties owed the Corporation by the Optionee, this Option,
  whether or not vested, shall expire and be cancelled to the extent it has not
  been exercised and be of no further force or effect.  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(ii) If the
  Optionee is subject to the Minimum Share Ownership Policy, any false
  attestation made under the Minimum Share Ownership Policy may result in the
  immediate cancellation of this Option and all Prior Options (to the extent
  not exercised), whether or not vested.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(iii) If the
  Optionee&#146;s employment status in the Corporation is changed such that the
  Optionee will no longer be eligible to receive options pursuant to the Equity
  Award Eligibility Policy of the Corporation as in effect on the date hereof
  and attached as Annex A to this Agreement and such changed status continues
  for a consecutive 90 day period, this Option shall cease to vest at the end
  of such 90-day period (and the Optionee will then vest in and have the right
  to purchase a percentage of the Shares subject to this Option determined by
  dividing (i) the number of whole months from the most recent anniversary of
  the grant date (February 15) to the end of such 90-day period by (ii) 36),
  and the Optionee will immediately forfeit any unvested portion of the Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Death</U>.</B>
  If the Optionee shall die while employed, this Option shall vest as to
  all Shares subject to the Option on the date of the Optionee&#146;s death.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Disability</U>.</B>  If the Optionee&#146;s employment shall terminate as a result of
  disability (as defined in Section 22(e)(3) of the Code), this Option shall
  vest as to all Shares subject to the Option on the date of the Optionee&#146;s
  termination of employment.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Change of Control</U></B>.  This Option shall vest as to all shares
  immediately on the effective date of a change of control, provided the
  Optionee was actively employed by the Corporation on such date.  For purposes of this Agreement the term
  &#147;change of control&#148; shall mean and shall be deemed to occur if and when:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i) </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Any person
  (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
  Exchange Act of 1934) is or becomes the beneficial owner, directly or
  indirectly, of securities of the Corporation representing 40% of more of the
  combined voting power of the Corporation&#146;s then outstanding securities; or</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 2 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>February 15, 2006<BR>Page 3. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="84%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The
  individuals who, as of  the Grant
  Date, constituted the Corporation&#146;s Board of Directors (the &#147;Incumbent
  Board&#148;) cease for any reason to constitute at least a majority of the Board; <I>provided, however</I>, that any individual
  (other than any individual whose initial assumption of office is in
  connection with an actual or threatened election contest (as such term is
  used in Rule 14a-11 of Regulation A promulgated under the Securities Exchange
  Act of 1934)), becoming  a director
  subsequent to the Grant Date, whose election, or nomination for election by
  the stockholders of the Corporation, was approved by a vote of at least a
  majority of the directors then comprising the Incumbent Board, shall be
  considered as though such individual was a member of the Incumbent Board; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Shareholders
  of the Corporation approve an agreement, providing for (a) a transaction in
  which the Corporation will cease to be an independent publicly owned
  corporation, or (b) the sale or other disposition of all or substantially all
  of the Corporation&#146;s assets, or (c) a plan of partial or complete liquidation
  of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Involuntary Termination with Severance</U></B>.  If prior to the third anniversary of the
  date of this Agreement, the Optionee&#146;s employment is terminated by the
  Corporation and, as a result, the Optionee becomes eligible for severance
  benefits under one of the Corporation&#146;s Severance Plans, the Optionee will
  immediately vest in and have the right to purchase a percentage of the Shares
  subject to this Option determined by dividing (i) the number of whole months
  from the most recent anniversary of the grant date (February 15) to the date
  that is twelve months after the termination date of the Optionee&#146;s employment
  by (ii) 36, and the Option will cease to be exercisable and will be cancelled
  for the balance of the Shares subject to this Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(g)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Divestiture</U></B>.  If prior to the third anniversary of the date of this
  Agreement, the Optionee&#146;s employment is terminated by the Corporation due to
  a divestiture and the Optionee is employed by the purchasing entity, then the
  Optionee will immediately vest in a percentage of the Shares subject to this
  Option determined by dividing (i) the number of whole months from the most
  recent anniversary of the grant date (February 15) to the date that is twelve
  months after the termination date of the Optionee&#146;s employment by (ii) 36,
  and the Option will cease to be exercisable and will be cancelled for the
  balance of the Shares subject to this Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(h)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Transfers.</U></B>  If the Optionee shall be transferred from the Corporation to a
  subsidiary company (being a 50% owned entity within the meaning of Section
  425(f) of the Code), or joint venture or similar entity existing as of the
  date of this Agreement in which the Corporation has at least a 33.33%
  interest (&#147;joint venture&#148;) or vice versa or from one subsidiary company (or
  joint venture) to another, the Optionee&#146;s employment shall not be deemed to
  have terminated.  If, while the
  Optionee is employed by such a subsidiary company or joint venture, such
  subsidiary company or joint venture shall cease to be a subsidiary company or
  joint venture as described above and the Optionee is not thereupon
  transferred to and employed by the Corporation or another subsidiary company
  or joint venture as described above, then the Optionee&#146;s employment will be
  treated as a termination due to a divestiture under clause (g) above as of
  the date that the Optionee&#146;s employer ceases to be such a subsidiary company
  or joint venture of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Retirement.</U></B>  If the Optionee&#146;s employment shall terminate with the consent
  of the Corporation on or after the Optionee&#146;s attaining age 60, this Option
  shall vest and be exercisable as to all Shares subject to this Option on the
  effective termination date of the Optionee&#146;s employment.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Transferability</U>.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The rights
  under this Option Agreement shall not be transferable other than by will or
  the laws of descent and distribution and may be exercised during the lifetime
  of the Optionee only by the Optionee except to the extent of a disability (as
  defined in Section 22(e)(3) of the Code), in which case the Option may be
  exercised by the Optionee&#146;s legal representative.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>If the
  Optionee is subject to the Minimum Share Ownership Policy, the Optionee
  agrees that any shares issued hereunder or pursuant to any Prior Option shall
  be subject to the restrictions set forth in the Minimum Share Ownership
  Policy. If the Optionee is not in compliance with the Minimum Share Ownership
  Policy, the Corporation may terminate the employment of such Optionee and/or
  the Option shall immediately terminate and cease to be exercisable.  The Optionee hereby acknowledges and
  agrees that the investment risk associated with the retention of any Shares,
  whether pursuant to the Minimum Share Ownership Policy or otherwise, is the
  sole responsibility of the Optionee and Optionee hereby holds the Corporation
  harmless against any claim of loss related to the retention of the Shares.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>6.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Exercise.</U></B> The purchase price of Shares
  purchased hereunder shall be paid in full with, or in a combination of, (a)
  cash or (b) shares of the Corporation&#146;s Common Stock that have been owned by
  the Optionee, and have been fully vested and freely transferable by the
  Optionee, for at least six months preceding the date of exercise of the
  Option, duly endorsed or accompanied by stock powers executed in blank.
  However, the Corporation in its discretion may permit the Optionee (if the</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 3 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 4. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Optionee
  owns shares that have been owned by the Optionee, and have been fully vested
  and fully transferable by the Optionee, for at least six months preceding the
  date of exercise) to &#147;attest&#148; to his ownership of the number of shares
  required to pay all or part of the purchase price (and not require delivery
  of the shares), in which case the Corporation will deliver to the Optionee
  the number of shares to which the Optionee is entitled, net of the &#147;attested&#148;
  shares.  If payment is made in whole
  or in part with shares of the Corporation&#146;s Common Stock, the value of such
  Common Stock shall be the mean between its high and low prices on the day of
  purchase as reported by <I>The New York Times
  </I>following the close of business on the date of exercise.  No &#147;reload&#148; or other option will be
  granted by reason of any such exercise.
  The Optionee agrees that, notwithstanding the terms of any
  pre-existing agreement between the Corporation and the Optionee, any shares
  of the Corporation&#146;s Common Stock surrendered (or &#147;attested&#148; to) for payment
  of the exercise price of any options previously granted by the Corporation to
  the Optionee (whether granted under the terms of the Amended and Restated
  Employee Long-Term Incentive Plan or any predecessor program) shall be valued
  in the manner provided in the preceding sentence except to the extent
  otherwise expressly provided by the terms of the program document. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>7.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Exercise After Termination of Employment, Death or Disability</U></B>. The
  provisions covering the exercise of this Option following termination of
  employment are as follows: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination in General.</U></B>  If the Optionee shall terminate his
  employment for any reason other than those described in  Section 7(b) through (f), all of the
  vested percentage of the Option may be exercised for ninety (90) days
  following such termination (but not beyond the Expiration Date) and the
  Option shall thereafter expire and cease to be exercisable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Death.</U></B>
  If the Optionee shall die while employed, the Option may be exercised
  through the Expiration Date in respect of all of the Shares subject to the
  Option.  If the Optionee shall die
  after termination of employment but while the Option is still exercisable, it
  shall remain exercisable to the same extent through the first anniversary of
  the date of death but not beyond the Expiration Date;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Disability.</U></B>  If the Optionee&#146;s employment shall terminate as a result of
  disability (as defined in Section 22(e)(3) of the  Code), the Option shall remain exercisable through the Expiration
  Date;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Involuntary Termination with Severance</U></B>.  If the Optionee&#146;s employment is terminated
  by the Corporation and, as a result, the Optionee becomes eligible for
  severance benefits under the Corporation&#146;s Severance Plans, then to the
  extent this Option is vested and exercisable (and becomes vested and
  exercisable under Section 4(f)), it may be exercised through the first
  anniversary of the date of termination (but not beyond the Expiration Date)
  and shall thereafter expire.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Divestiture</U></B>.  If prior to the third anniversary of the date of this
  Agreement, the Optionee&#146;s employment is terminated by the Corporation due to
  a divestiture and the Optionee is employed by the purchasing entity, then to
  the extent this Option is vested and exercisable (and becomes vested and
  exercisable under Section 4(g)), it may be exercised through the first
  anniversary of the date of termination (but not beyond the Expiration Date)
  and shall thereafter expire.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Retirement.</U></B>  If the Optionee&#146;s employment shall terminate as a result of
  Retirement as defined in Section 4(i) of this  Option, all of the Option may be exercised as to all of the
  Shares subject to the Option through the Expiration Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>In no event
  may any portion of the Option be exercised after the Expiration Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Consideration</U></B>. In consideration for the
  Option granted by this Option Agreement, the Optionee hereby agrees to be
  bound by the Nondisclosure and Nonsolicitation provisions set forth in
  Sections 9 and 10 of this Option Agreement and the non-compete obligations
  set forth in the agreement between the Optionee and the Corporation or
  otherwise pursuant to any written policy of the Corporation.  For purposes of Sections 9 and 10, the
  term &#147;Company&#148; shall mean the Corporation, its affiliates, divisions and
  subsidiaries, or any other entity in which the Corporation, directly or
  indirectly, controls or has an ownership or equity interest equal to or
  greater than 25.0% of the combined voting power of the entity&#146;s then
  outstanding securities, and their respective successors and assigns. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>9.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Nondisclosure of Confidential Information</U></B>.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>For purposes
  of this Option Agreement, the term &#147;Confidential Information&#148; shall mean all
  ideas, inventions, data, databases, know-how, processes, methods, practices,
  specifications, raw materials and preparations, compositions, designs,
  devices, fabrication techniques, technical plans, algorithms, computer
  programs, protocols, client information, medical records, documentation,
  customer names and lists, supplier names and lists, price lists, supplier
  names and lists, apparatus, business plans, marketing plans, financial
  information, chemical and biological reagents, business methods and systems,
  literary and graphical and audiovisual works and sound recordings, mask
  works,</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 4 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 5. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>computer
  programs, and the like, and potential trade names, trademarks, and logos, in
  whatever form or medium and which have commercial value, and whether or not
  designated or marked &#147;Confidential&#148; or the like, which the Optionee learns,
  acquires, conceives, creates, develops, or improves while employed by the
  Company and which (1) relate to the past, current, or prospective business of
  the Company or its subsidiaries and (a) which have not previously been
  publicly disclosed without restrictions on use by the Company, or (b) which
  Optionee knows or has good reason to know are not generally publicly known;
  or (2) are received by the Company from a third party under an obligation of
  confidentiality to the third party. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  recognizes and acknowledges that during his or her employment with the
  Company, the Optionee may be given access to or develop Confidential
  Information.  The Optionee shall not
  use or disclose (directly or indirectly) any Confidential Information
  (whether or not developed by the Optionee) at any time or in any manner,
  except as authorized and required in the course of employment with the
  Company.  The Optionee shall not disclose
  to the Company or use on behalf of the Company any Confidential Information
  obtained from any former employer or any other third party.  All documents and things embodying
  Confidential Information, whether prepared by the Optionee or otherwise coming
  into the Optionee&#146;s possession, are the exclusive property of the Company,
  and must not be removed from any of its premises except as required in the
  course of employment with the Company.
  All such documents and things shall be promptly returned by the Optionee
  to the Company upon the request of the Company and on any termination of
  employment with the Company.  The
  Optionee will not remove any Confidential Information such as documents or
  things or retain them in whole or part in any manner.  The Optionee shall ensure that any export
  of Confidential Information undertaken by the Optionee or with his/her
  knowledge or approval shall be in compliance with all applicable laws. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  shall promptly disclose to the Company all Confidential Information which the
  Optionee creates, conceives, develops, or improves (either alone or with
  others) referred to below as a &#147;Creation&#148; while in the employment of the
  Company, if the Creation either: (1) relates to any actual or demonstrably
  contemplated business, or research or development project, of the Company or
  its subsidiaries, or to any reasonable extension or variation thereof; or (2)
  results from any work performed by the Optionee for the Company; or (3) was
  created utilizing any of the Company&#146;s equipment, supplies, facilities, time,
  or Confidential Information.  The
  Optionee shall keep complete, accurate, and authentic records on all
  Creations in the manner and form requested by the Company.  The Optionee shall promptly disclose to
  the Company, in confidence, all patent, copyright, and trademark applications
  filed by the Optionee within one (1) year after termination of employment
  with the Company and which relate to any field in which the Optionee worked
  at the Company.  The Optionee agrees
  that any such application for a patent, copyright registration, trademark
  registration, mask work registration, or similar right filed within one (1)
  year after termination of employment with the Company shall be presumed to
  relate to a Creation of the Optionee created during employment at the
  Company, unless the Optionee can prove otherwise. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  hereby assigns to the Company all of the Optionee&#146;s rights in all of the
  above-described Creations.  All such
  Creations that are subject to copyright or mask work protection are
  explicitly considered by the Optionee and the Company to be works made for
  hire to the extent permitted by law.
  To the extent that any such Creations are subject to copyright
  protection and are not works made for hire, any and all of the Optionee&#146;s
  copyright and mask work interest therein are hereby assigned by the Optionee
  to the Company, and are the exclusive property of the Company. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  agrees to assist the Company in obtaining and/or maintaining patents,
  copyrights, trademarks, mask work rights, and similar rights to any Creations
  assigned by the Optionee to the Company, if and to the extent that the
  Company, in its sole discretion, requests such assistance, the Optionee shall
  sign all documents and do all other things deemed necessary by the Company,
  at the Company&#146;s expense, to obtain and/or maintain such rights, to provide
  confirmatory evidence of the Optionee&#146;s assignment of such Creations to the
  Company, to defend them from invalidation, and to protect them against
  infringement by other parties.  The
  obligations of this paragraph are continuing and survive the termination of
  the Optionee&#146;s employment with the Company.
  The Optionee irrevocably appoints the Chief Executive Officer of the
  Company (with powers of delegation) to act as the Optionee&#146;s agent and
  attorney-in-fact to perform all acts as the Optionee&#146;s agent and to file,
  prosecute, and maintain applications and registrations for patents,
  trademarks, copyrights, mask work rights, and similar rights to any Creations
  assigned by the Optionee to the Company under this Option Agreement, such
  appointment being effective both during the Optionee&#146;s employment by Company,
  and thereafter if the Optionee (1) refuses to perform those acts, or (2) is
  unavailable, within the meaning of any applicable laws.  The Optionee acknowledges that the grant
  of the foregoing power of attorney is coupled with an interest, is
  irrevocable, and shall survive his/her death or disability. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 5 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 6. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="84%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Nonsolicitation</U> </B> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For a period
  of one (1) year following the termination of the Optionee&#146;s employment for
  any reason, the Optionee will not directly or indirectly solicit the Business
  of any customer of the Company of whom the Optionee acquired knowledge and/or
  had direct or indirect contact during the one (1) year period prior to the
  termination of the Optionee&#146;s employment relationship with the Company for
  any purpose other than to obtain, maintain and/or service the customer&#146;s
  Business for the Company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For a period
  of one (1) year following the termination of the Optionee&#146;s employment for
  any reason, the Optionee agrees not to, directly or indirectly, recruit or
  solicit any employees of the Company to work for the Optionee or any other
  person or entity.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>As used in
  this Option Agreement, the following terms shall have these respective
  definitions:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Current
  Business&#148; shall mean and include: providing clinical testing information
  services for the diagnosis, monitoring, and treatment of disease; providing
  clinical laboratory management services; providing medical informatics
  services (i.e., the statistical analysis of medical information) and
  consulting services based on such analysis; providing data analysis, medical
  information services, and database management services for the health care
  industry; providing clinical testing information services in support of
  clinical trials, and clinical testing products for use in clinical trials;
  providing services of storage, retrieval, and communication of medical
  information via interactive computer networks; providing to managed care
  organizations, hospitals, employers, and other institutional healthcare
  providers access to a network of clinical diagnostic laboratories providing
  services of processing requests for diagnostic tests, performing tests,
  reporting test results, and paying claims to network laboratories; providing
  quality and utilization management; providing consolidated chronological
  reports in graphical and/or numerical form, representing the results of
  clinical diagnostic tests performed on individual patients and groups of
  patients over monitored periods of time, together with analysis of the
  results; and manufacturing and selling clinical diagnostic assay kits,
  apparatus, and reagents.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Business&#148;
  shall include the Current Business and any other product or service which the
  Company provided during the one (1) year period prior to the Optionee&#146;s
  termination of employment and during the one (1) year period following the
  Optionee&#146;s termination of employment, but the restriction on products and
  services introduced after the Optionee&#146;s termination of employment shall
  exclude products and services that were not planned, discussed, or
  contemplated prior to the Optionee&#146;s termination of employment.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Indirectly
  Solicit&#148; shall include, but is not be limited to, providing the Company&#146;s
  Confidential Information to another individual, or entity, allowing the use
  of the Optionee&#146;s name by any company (or any employees of any other company)
  other than the Company, in the solicitation of the Business of Company&#146;s
  customers.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>11.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Damages and Injunctive Relief</U></B>. The
  Optionee understands that if the terms of Section 9 and/or 10 of this Option
  Agreement are violated, the Corporation would be seriously and irreparably
  damaged, and agrees that the Corporation will be entitled to seek appropriate
  remedies for those damages, including, without limitation, injunctive relief
  to enforce any provision of this Agreement and all reasonable attorney&#146;s fees
  incurred by the Corporation to enforce the terms of these Sections.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>12.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Forfeiture</U>.</B>  The Optionee will immediately forfeit any unexercised portion
  of the Option for any violations of (i) the terms of Sections 9 and/or 10 of
  this Agreement and/or (ii) the non-compete obligations set forth in the
  agreement between the Optionee and the Corporation or otherwise pursuant to
  any written policy of the Corporation, in addition to any equitable and legal
  rights the Corporation has or may have.
  The Optionee understands that the forfeiture of any unexercised
  portion of the Option is only one element of the damages potentially
  sustained by the Corporation for a violation of Sections 9 and/or 10 of this
  Agreement or the non-compete obligation described above, and such forfeiture
  shall not constitute a release of any claim that the Company may have for
  damages, past, present, or future.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 6 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 7. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2 face=arial>13.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(a) <B><U>Consent Requirement</U></B>.  If the Corporation shall at any time
  determine that any consent (as hereinafter defined) is necessary or desirable
  as a condition of, or in connection with, the granting of this Option, the
  issuance or purchase of Shares or other rights hereunder, or the taking of
  any other action hereunder (a &#147;Plan Action&#148;), then no such Plan Action shall
  be taken, in whole or in part, unless and until such consent shall have been
  effected or obtained to the full satisfaction of the Corporation. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(b) <B><U>Definition of Consent</U></B>.  The term &#147;consent&#148; as used herein with
  respect to any action referred to in Section 13(a) means (i) any and all
  listings, registrations or qualifications in respect thereof upon any
  securities exchange or under any federal, state or local law, rule or
  regulation, (ii) any and all written agreements and representations by the
  Optionee with respect to the disposition of Shares, or with respect to any
  other matter, which the Corporation shall deem necessary or desirable to comply
  with the terms of any such listing, registration or qualification or to
  obtain an exemption from the requirement that any such listing, qualification
  or registration be made, (iii) any and all consents, clearances and approvals
  in respect of a Plan Action by any governmental or other regulatory bodies,
  and (iv) any and all consents or authorizations required to comply with, or
  required to be obtained under, applicable local law or otherwise required by
  the Corporation.  Nothing herein shall
  require the Corporation to list, register or qualify the Shares of its common
  stock on any securities exchange. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>14.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Invalidity and Enforcement</U></B>. If any
  provision of this Agreement is deemed invalid or unenforceable, either in
  whole or in part, this Option Agreement will be deemed amended to delete or
  to modify, as set forth in this Section, the offending provision or
  provisions and to alter the bounds of this Agreement in order to render it
  valid and enforceable.  The Corporation
  and the Optionee specifically request that any court having jurisdiction over
  any dispute relating to this Option Agreement modify, if possible, any
  offending provision so that such provision will be enforceable to the maximum
  extent permitted by State law.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>15.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Employee at Will</U>.</B>  The Optionee understands that his/her
  employment with the Corporation is at will and that it can be terminated at
  any time by the Optionee and/or the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>16.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Enforcement by Successors and Assigns</U></B>. The
  Corporation and any of its successors or assignees may enforce the
  Corporation&#146;s rights under this Option Agreement. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>17.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Entire Agreement</U></B>. The Agreement
  supersedes any prior agreement or understandings between the Optionee and the
  Company with respect to nonsolicitation, nonuse, and non-disclosure and
  constitutes the entire agreement between the Corporation and the
  Optionee.  No modification of this
  Option Agreement will have any force or effect unless such modification is in
  writing, signed by the Chief Executive Officer of the Corporation and the
  Optionee, and expressly indicates an intent to modify this Option Agreement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>18.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Interpretation</U></B>. Any dispute,
  disagreement or matter of interpretation which shall arise under this
  Agreement shall be finally determined by the Corporation&#146;s Compensation
  Committee in its absolute discretion.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>19.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Notice of Exercise</U></B>. The Optionee may
  exercise the Option, in accordance with the procedures specified by the
  Corporation from time to time. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>20.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Rights Prior to Exercise</U></B>. The Optionee
  shall not have any rights as a stockholder with respect to any Shares subject
  to this Option prior to the date on which he/she is recorded as the holder of
  such Shares on the records of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>21.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Taxes</U></B>. The Corporation may make such
  provisions and take such steps as it may deem necessary or appropriate for
  the withholding of all federal, state, local and other taxes required by law
  to be withheld with respect to this Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>22.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Governing Law</U></B>. This Option Agreement and
  all rights hereunder shall be governed by, and construed and interpreted in
  accordance with, the laws of the state of
  New Jersey applicable to contracts made and to be performed entirely
  within such state. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Acknowledgements</U></B>.  By execution of this Non-Qualified Stock
  Option Grant Agreement, the Optionee agrees that he/she has received and
  reviewed a copy of:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(a) the
  Prospectus <B>(link to Prospectus:</B><BR><U>http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_option/stock_option.htm</U>)<BR>
  relating to the Corporation&#146;s Employee Equity Participation Program and;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(b) the
  Quest Diagnostics Incorporated 2005 Annual Report <B>(link to 2005 Annual
  Report:</B><BR>
  http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700  to Shareholders and Form 10-K);</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(c) the
  Corporation&#146;s Policy for Purchasing and Selling Securities (&#147;the Policy&#148;)
  <B>(link to Trading Policy:</B><BR>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
  Optionee further agrees to fully comply with the terms of the Policy;  </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 7 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 8. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
  Corporation&#146;s Executive Share Ownership Guidelines (<B>link to guidelines<U>:</U></B><BR>
  <U>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm</U>);
  and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
  Corporation&#146;s Equity Award Eligibility Policy attached hereto as Annex A.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>OPTIONEE: </B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="37%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="57%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By:</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><I>Zewe, David M.</I></B></FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 8 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
Page 9.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Annex A<BR>
Quest Diagnostics Incorporated<BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<P><FONT SIZE=2><B><U>Option Eligibility</U></B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Unreduced Work Schedule</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>One of the following salary grades:</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Corporate VP or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Salary Grade 53 or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Research &amp; Development - Grade RD6 or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Medical Director - Grade MD2</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>For
employees whose salary is administered outside the standard Quest structure
(i.e., MedPlus, International, Clinical Trials Europe), a Quest Diagnostics
salary grade has been assigned consistent with the above requirements. This
grade is stored within the Company&#146;s Stock Administration System.</B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT:
Meeting the criteria for &#147;Option Eligibility&#148; <I>does
not guarantee an award</I>. All grants are subject to a separate
approval process.</B></FONT></P>

<P ALIGN=RIGHT><FONT SIZE=2>Page 9 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>6
<FILENAME>ex10-5.htm
<DESCRIPTION>EXHIBIT 10.5
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P><FONT SIZE=2><B>Exhibit 10.5</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>QUEST DIAGNOSTICS INCORPORATED<BR>
NON-QUALIFIED STOCK OPTION AGREEMENT</B></FONT></P>

<P><FONT SIZE=2>This
Non-Qualified Stock Option Agreement (the &#147;Option Agreement&#148;), dated as of <B><I>February 15, 2006</I></B>
(the &#147;Grant Date&#148;), is by and between Quest Diagnostics Incorporated, 1290 Wall
Street West, Lyndhurst, New Jersey 07071 (the &#147;Corporation&#148;) and <B><I>Prevoznik, Michael</I></B><I> </I>(the
&#147;Optionee&#148;) [address].</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Conditions</U></B>. This Option Agreement is
  subject in all respects to the Corporation&#146;s Amended and Restated Long-Term
  Employee Incentive Plan, which is incorporated herein by reference. The
  Optionee acknowledges that he/she has read the terms of the Amended and
  Restated Long-Term Employee Incentive Plan and that those terms shall govern
  in the event of any conflict between them and those of this Option Agreement.
  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>In consideration of the grant of the option provided pursuant to this
  Option Agreement and by accepting the terms of this Agreement, the Optionee
  agrees that all options granted to the Optionee by the Corporation prior to
  the date hereof (the &#147;Prior Options&#148;)
  shall be subject to forfeiture pursuant to paragraph 4(b)(ii) of this Option
  Agreement (for false attestation under the Executive Share Ownership
  Guidelines of the Corporation (the &#147; Minimum Share Ownership Policy&#148;)), the
  Shares obtained on exercise of such Prior Options after the date hereof shall
  be subject to the Minimum Share Ownership Policy pursuant to paragraph 5(b) of this Option Agreement and the
  terms of paragraphs 4(b)(ii) and 5(b) hereof are made a part of the terms of
  each of the Prior Options. </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>In consideration of the grant of the option
  provided pursuant to this Option Agreement and by accepting the terms of this
  Agreement, the Optionee agrees that this Option shall be subject to
  forfeiture pursuant to paragraph 4(b)(iii) of this Agreement.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>This Option
  Agreement shall become effective only after the Optionee has executed and
  returned to the Executive Compensation Department (to the attention of Lisa
  Zajac (1290 Wall Street West &#150; 5<SUP>th</SUP> Floor, Lyndhurst, NJ 07071) a
  signed copy of this Option Agreement and shall be revoked if not executed and
  returned to Lisa Zajac within thirty (30) days of receipt by the Optionee.. </I></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Award of Option</U></B>. The Corporation hereby
  awards to the Optionee an option (the &#147;Option&#148;) to purchase from the
  Corporation such number of shares of the Corporation&#146;s common stock (the
  &#147;Shares&#148;) at the exercise price set forth in this Option Agreement (the
  &#147;Exercise Price&#148;) below. This option shall vest equally over a three-year
  period. If the foregoing results in a fractional number of Shares subject to
  the Option vesting on any vesting date, the number of Shares subject to the
  Option vesting on the first and second vesting dates shall be rounded down to
  the previous whole number of Shares and the Shares subject to the Option
  vesting on the third vesting date shall be rounded up to the next whole
  number of Shares, as shall be necessary in order to result in a vesting of
  100% of the Shares subject to the Option.<U>
The Compensation Committee of the Corporation may, in its sole discretion,
  convert this Option at any time to a stock settled stock appreciation grant.</U></FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="30%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="70%" VALIGN=TOP>
<P><FONT SIZE=2>Number of
  Shares Subject to Option: 54,667</font></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Exercise
  Price per Share: $52.235</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Expiration
  Date: February 15, 2013</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B><I>Vesting
Schedule</I></B><I>:</I></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="68%">
<TR style="font-size:1px">
<TD WIDTH="7%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="21%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="16%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="16%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="16%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Number of Shares Subject to Option</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Vesting Dates</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>% of Grant</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Incremental</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Cumulative</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>February 15,
  2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=2>33.33%</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=2>18,222</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=2>18,222</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>February&nbsp;15,&nbsp;2008</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>33.33%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>18,222</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>36,444</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>February 15,
  2009</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=2>33.34%</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=2>18,223</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT SIZE=2>54,667</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>This option
  shall expire, and no shares may be purchased pursuant to this Option, after
  the expiration date set forth above (the &#147;Expiration Date&#148;). </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 1 of 9<BR>
EOAgmt</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 2.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Not An Incentive Stock Option</U>.</B>&nbsp;This
  Option is not intended to be an &#147;incentive stock option&#148; within the meaning
  of Section 422 of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;)
  and this Agreement shall be construed and interpreted in accordance with such
  intention.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Vesting</U>.&nbsp;</B>Except as otherwise provided
  below, the Option shall vest and become exercisable as to the percentage of
  Shares subject to the Option on the vesting dates [set forth above][set forth
  on the &#147;Summary Grant&#148; page at the Smith Barney website] (the &#147;Vesting
  Dates&#148;). </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination</U>.&nbsp;</B>Unless the Optionee&#146;s
  employment is terminated for one of the reasons set forth in Section 4(b)
  through (i), at the Optionee&#146;s termination of employment prior to the third
  anniversary of the date of this Agreement, the Optionee will vest in and have
  the right to purchase a percentage of the Shares subject to this Option
  determined by dividing (i) the number of whole months from the most recent
  anniversary of the grant date (February 15) to the termination date of the
  Optionee&#146;s employment by (ii) 36, and the Option will cease to be exercisable
  and will be cancelled for the balance of the Shares subject to this Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Notwithstanding
  anything to the contrary contained herein, if the Optionee is on a leave of
  absence approved by the Corporation for medical, personal, educational and/or
  other permissible purposes pursuant to policies of the Corporation as in
  effect on the date hereof, for a consecutive twelve-month period, such
  Optionee will be deemed terminated for purposes of this Agreement on the
  twelve month anniversary of the commencement of such leave of absence and
  this Option shall cease to vest at the end of such twelve-month period and
  the Optionee will forfeit any unvested portion of the Option. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Cause, Dereliction of Duties or Harmful Acts; Breach of Share
  Ownership Guidelines; Loss of Equity Award Eligibility Status.</U></B>
  (i) If the Optionee shall cause the Corporation to suffer financial harm or
  damage to its reputation (either before or after termination of employment)
  through (x) dishonesty, (y) violation of law in the course of the Optionee&#146;s
  employment or violation of the Corporation&#146;s Corporate Compliance Manual and
  compliance bulletins or other written policies, or (z) material deviation
  from the duties owed the Corporation by the Optionee, this Option, whether or
  not vested, shall expire and be cancelled to the extent it has not been
  exercised and be of no further force or effect. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>

<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>(ii) If the
  Optionee is subject to the Minimum Share Ownership Policy, any false
  attestation made under the Minimum Share Ownership Policy may result in the
  immediate cancellation of this Option and all Prior Options (to the extent not
  exercised), whether or not vested.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>

<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2>(iii) If the
  Optionee&#146;s employment status in the Corporation is changed such that the
  Optionee will no longer be eligible to receive options pursuant to the Equity
  Award Eligibility Policy of the Corporation as in effect on the date hereof
  and attached as Annex A to this Agreement and such changed status continues
  for a consecutive 90 day period, this Option shall cease to vest at the end
  of such 90-day period (and the Optionee will then vest in and have the right
  to purchase a percentage of the Shares subject to this Option determined by
  dividing (i) the number of whole months from the most recent anniversary of
  the grant date (February 15) to the end of such 90-day period by (ii) 36),
  and the Optionee will immediately forfeit any unvested portion of the Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Death</U>.&nbsp;</B>If the Optionee shall die while
  employed, this Option shall vest as to all Shares subject to the Option on
  the date of the Optionee&#146;s death. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Disability</U>.&nbsp;</B>If the Optionee&#146;s employment
  shall terminate as a result of disability (as defined in Section 22(e)(3) of
  the Code), this Option shall vest as to all Shares subject to the Option on
  the date of the Optionee&#146;s termination of employment. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Change of Control</U></B>. This Option shall
  vest as to all shares immediately on the effective date of a change of
  control, provided the Optionee was actively employed by the Corporation on
  such date. For purposes of this Agreement the term &#147;change of control&#148; shall
  mean and shall be deemed to occur if and when:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Any person
  (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
  Exchange Act of 1934) is or becomes the beneficial owner, directly or
  indirectly, of securities of the Corporation representing 40% of more of the
  combined voting power of the Corporation&#146;s then outstanding securities; or</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 2 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 3.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The
  individuals who, as of the Grant Date, constituted the Corporation&#146;s Board of
  Directors (the &#147;Incumbent Board&#148;) cease for any reason to constitute at least
  a majority of the Board; <I>provided, however</I>, that any individual
  (other than any individual whose initial assumption of office is in
  connection with an actual or threatened election contest (as such term is
  used in Rule 14a-11 of Regulation A promulgated under the Securities Exchange
  Act of 1934)), becoming a director subsequent to the Grant Date, whose
  election, or nomination for election by the stockholders of the Corporation,
  was approved by a vote of at least a majority of the directors then
  comprising the Incumbent Board, shall be considered as though such individual
  was a member of the Incumbent Board; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Shareholders
  of the Corporation approve an agreement, providing for (a) a transaction in
  which the Corporation will cease to be an independent publicly owned
  corporation, or (b) the sale or other disposition of all or substantially all
  of the Corporation&#146;s assets, or (c) a plan of partial or complete liquidation
  of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Involuntary Termination with Severance </U></B>.
  If prior to the third anniversary of the date of this Agreement, the
  Optionee&#146;s employment is terminated by the Corporation and, as a result, the
  Optionee becomes eligible for severance benefits under one of the
  Corporation&#146;s Severance Plans, the Optionee will immediately vest in and have
  the right to purchase a percentage of the Shares subject to this Option
  determined by dividing (i) the number of whole months from the most recent
  anniversary of the grant date (February 15) to the date that is twelve months
  after the termination date of the Optionee&#146;s employment by (ii) 36, and the
  Option will cease to be exercisable and will be cancelled for the balance of
  the Shares subject to this Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(g)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Divestiture</U>.&nbsp;</B>If prior to the third
  anniversary of the date of this Agreement, the Optionee&#146;s employment is
  terminated by the Corporation due to a divestiture and the Optionee is
  employed by the purchasing entity, then the Optionee will immediately vest in
  a percentage of the Shares subject to this Option determined by dividing (i)
  the number of whole months from the most recent anniversary of the grant date
  (February 15) to the date that is twelve months after the termination date of
  the Optionee&#146;s employment by (ii) 36, and the Option will cease to be
  exercisable and will be cancelled for the balance of the Shares subject to
  this Option. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(h)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Transfers.</U>&nbsp;</B>If the Optionee shall be
  transferred from the Corporation to a subsidiary company (being a 50% owned
  entity within the meaning of Section 425(f) of the Code), or joint venture or
  similar entity existing as of the date of this Agreement in which the
  Corporation has at least a 33.33% interest (&#147;joint venture&#148;) or vice versa or
  from one subsidiary company (or joint venture) to another, the Optionee&#146;s
  employment shall not be deemed to have terminated. If, while the Optionee is
  employed by such a subsidiary company or joint venture, such subsidiary
  company or joint venture shall cease to be a subsidiary company or joint
  venture as described above and the Optionee is not thereupon transferred to
  and employed by the Corporation or another subsidiary company or joint
  venture as described above, then the Optionee&#146;s employment will be treated as
  a termination due to a divestiture under clause (g) above as of the date that
  the Optionee&#146;s employer ceases to be such a subsidiary company or joint
  venture of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP colspan=2>
<P><FONT SIZE=2><B><U>Retirement.</U>&nbsp;</B>If the Optionee&#146;s employment
  shall terminate with the consent of the Corporation on or after the
  Optionee&#146;s attaining age 60, this Option shall vest and be exercisable as to
  all Shares subject to this Option on the effective termination date of the
  Optionee&#146;s employment.</FONT></P>
</TD>

</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Transferability</U>. </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The rights
  under this Option Agreement shall not be transferable other than by will or
  the laws of descent and distribution and may be exercised during the lifetime
  of the Optionee only by the Optionee except to the extent of a disability (as
  defined in Section 22(e)(3) of the Code), in which case the Option may be
  exercised by the Optionee&#146;s legal representative.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>If the
  Optionee is subject to the Minimum Share Ownership Policy, the Optionee
  agrees that any shares issued hereunder or pursuant to any Prior Option shall
  be subject to the restrictions set forth in the Minimum Share Ownership
  Policy. If the Optionee is not in compliance with the Minimum Share Ownership
  Policy, the Corporation may terminate the employment of such Optionee and/or
  the Option shall immediately terminate and cease to be exercisable. The
  Optionee hereby acknowledges and agrees that the investment risk associated
  with the retention of any Shares, whether pursuant to the Minimum Share
  Ownership Policy or otherwise, is the sole responsibility of the Optionee and
  Optionee hereby holds the Corporation harmless against any claim of loss
  related to the retention of the Shares.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>6.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Exercise.</U>&nbsp;</B>The purchase price of Shares
  purchased hereunder shall be paid in full with, or in a combination of, (a)
  cash or (b) shares of the Corporation&#146;s Common Stock that have been owned by
  the Optionee, and have been fully vested and freely transferable by the
  Optionee, for at least six months preceding the date of exercise of the
  Option, duly endorsed or accompanied by stock powers executed in blank.
  However, the Corporation in its discretion may permit the Optionee (if the </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 3 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 4.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Optionee
  owns shares that have been owned by the Optionee, and have been fully vested
  and fully transferable by the Optionee, for at least six months preceding the
  date of exercise) to &#147;attest&#148; to his ownership of the number of shares
  required to pay all or part of the purchase price (and not require delivery
  of the shares), in which case the Corporation will deliver to the Optionee
  the number of shares to which the Optionee is entitled, net of the &#147;attested&#148;
  shares. If payment is made in whole or in part with shares of the
  Corporation&#146;s Common Stock, the value of such Common Stock shall be the mean
  between its high and low prices on the day of purchase as reported by <I>The New
  York Times </I>following the close of business on the date of
  exercise. No &#147;reload&#148; or other option will be granted by reason of any such exercise.
  The Optionee agrees that, notwithstanding the terms of any pre-existing
  agreement between the Corporation and the Optionee, any shares of the
  Corporation&#146;s Common Stock surrendered (or &#147;attested&#148; to) for payment of the
  exercise price of any options previously granted by the Corporation to the
  Optionee (whether granted under the terms of the Amended and Restated
  Employee Long-Term Incentive Plan or any predecessor program) shall be valued
  in the manner provided in the preceding sentence except to the extent
  otherwise expressly provided by the terms of the program document.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>7.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Exercise After Termination of Employment, Death or Disability</U></B>.
  The provisions covering the exercise of this Option following termination of
  employment are as follows:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination in General.</U>&nbsp;</B>If the Optionee
  shall terminate his employment for any reason other than those described in
  Section 7(b) through (f), all of the vested percentage of the Option may be
  exercised for ninety (90) days following such termination (but not beyond the
  Expiration Date) and the Option shall thereafter expire and cease to be
  exercisable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Death.</U>&nbsp;</B>If the Optionee shall die while
  employed, the Option may be exercised through the Expiration Date in respect
  of all of the Shares subject to the Option. If the Optionee shall die after
  termination of employment but while the Option is still exercisable, it shall
  remain exercisable to the same extent through the first anniversary of the
  date of death but not beyond the Expiration Date;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Disability.</U>&nbsp;</B>If the Optionee&#146;s employment
  shall terminate as a result of disability (as defined in Section 22(e)(3) of
  the Code), the Option shall remain exercisable through the Expiration Date;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Involuntary Termination with Severance</U></B>.
  If the Optionee&#146;s employment is terminated by the Corporation and, as a
  result, the Optionee becomes eligible for severance benefits under the
  Corporation&#146;s Severance Plans, then to the extent this Option is vested and
  exercisable (and becomes vested and exercisable under Section 4(f)), it may
  be exercised through the first anniversary of the date of termination (but
  not beyond the Expiration Date) and shall thereafter expire. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Divestiture</U></B>. If prior to the third
  anniversary of the date of this Agreement, the Optionee&#146;s employment is
  terminated by the Corporation due to a divestiture and the Optionee is
  employed by the purchasing entity, then to the extent this Option is vested
  and exercisable (and becomes vested and exercisable under Section 4(g)), it may
  be exercised through the first anniversary of the date of termination (but
  not beyond the Expiration Date) and shall thereafter expire. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Retirement.</U>&nbsp;</B>If the Optionee&#146;s employment
  shall terminate as a result of Retirement as defined in Section 4(i) of this
  Option, all of the Option may be exercised as to all of the Shares subject to
  the Option through the Expiration Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>In no event
  may any portion of the Option be exercised after the Expiration Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Consideration</U></B>. In consideration for the
  Option granted by this Option Agreement, the Optionee hereby agrees to be
  bound by the Nondisclosure and Nonsolicitation provisions set forth in
  Sections 9 and 10 of this Option Agreement and the non-compete obligations
  set forth in the agreement between the Optionee and the Corporation or
  otherwise pursuant to any written policy of the Corporation. For purposes of
  Sections 9 and 10, the term &#147;Company&#148; shall mean the Corporation, its
  affiliates, divisions and subsidiaries, or any other entity in which the
  Corporation, directly or indirectly, controls or has an ownership or equity
  interest equal to or greater than 25.0% of the combined voting power of the
  entity's then outstanding securities, and their respective successors and
  assigns.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>9.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Nondisclosure of Confidential Information</U></B>.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>For purposes
  of this Option Agreement, the term &#147;Confidential Information&#148; shall mean all
  ideas, inventions, data, databases, know-how, processes, methods, practices,
  specifications, raw materials and preparations, compositions, designs,
  devices, fabrication techniques, technical plans, algorithms, computer
  programs, protocols, client information, medical records, documentation,
  customer names and lists, supplier names and lists, price lists, supplier
  names and lists, apparatus, business plans, marketing plans, financial
  information, chemical and biological reagents, business methods and systems,
  literary and graphical and audiovisual works and sound recordings, mask
  works, </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Pgae 4 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 5.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>computer
  programs, and the like, and potential trade names, trademarks, and logos, in
  whatever form or medium and which have commercial value, and whether or not
  designated or marked &#147;Confidential&#148; or the like, which the Optionee learns,
  acquires, conceives, creates, develops, or improves while employed by the
  Company and which (1) relate to the past, current, or prospective business of
  the Company or its subsidiaries and (a) which have not previously been publicly
  disclosed without restrictions on use by the Company, or (b) which Optionee
  knows or has good reason to know are not generally publicly known; or (2) are
  received by the Company from a third party under an obligation of
  confidentiality to the third party.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  recognizes and acknowledges that during his or her employment with the
  Company, the Optionee may be given access to or develop Confidential
  Information. The Optionee shall not use or disclose (directly or indirectly)
  any Confidential Information (whether or not developed by the Optionee) at
  any time or in any manner, except as authorized and required in the course of
  employment with the Company. The Optionee shall not disclose to the Company
  or use on behalf of the Company any Confidential Information obtained from
  any former employer or any other third party. All documents and things
  embodying Confidential Information, whether prepared by the Optionee or
  otherwise coming into the Optionee&#146;s possession, are the exclusive property
  of the Company, and must not be removed from any of its premises except as
  required in the course of employment with the Company. All such documents and
  things shall be promptly returned by the Optionee to the Company upon the
  request of the Company and on any termination of employment with the Company.
  The Optionee will not remove any Confidential Information such as documents
  or things or retain them in whole or part in any manner. The Optionee shall
  ensure that any export of Confidential Information undertaken by the Optionee
  or with his/her knowledge or approval shall be in compliance with all
  applicable laws.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  shall promptly disclose to the Company all Confidential Information which the
  Optionee creates, conceives, develops, or improves (either alone or with
  others) referred to below as a &#147;Creation&#148; while in the employment of the
  Company, if the Creation either: (1) relates to any actual or demonstrably
  contemplated business, or research or development project, of the Company or
  its subsidiaries, or to any reasonable extension or variation thereof; or (2)
  results from any work performed by the Optionee for the Company; or (3) was
  created utilizing any of the Company&#146;s equipment, supplies, facilities, time,
  or Confidential Information. The Optionee shall keep complete, accurate, and
  authentic records on all Creations in the manner and form requested by the
  Company. The Optionee shall promptly disclose to the Company, in confidence,
  all patent, copyright, and trademark applications filed by the Optionee
  within one (1) year after termination of employment with the Company and
  which relate to any field in which the Optionee worked at the Company. The
  Optionee agrees that any such application for a patent, copyright
  registration, trademark registration, mask work registration, or similar
  right filed within one (1) year after termination of employment with the
  Company shall be presumed to relate to a Creation of the Optionee created
  during employment at the Company, unless the Optionee can prove otherwise.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  hereby assigns to the Company all of the Optionee&#146;s rights in all of the
  above-described Creations. All such Creations that are subject to copyright
  or mask work protection are explicitly considered by the Optionee and the
  Company to be works made for hire to the extent permitted by law. To the
  extent that any such Creations are subject to copyright protection and are
  not works made for hire, any and all of the Optionee&#146;s copyright and mask
  work interest therein are hereby assigned by the Optionee to the Company, and
  are the exclusive property of the Company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Optionee
  agrees to assist the Company in obtaining and/or maintaining patents,
  copyrights, trademarks, mask work rights, and similar rights to any Creations
  assigned by the Optionee to the Company, if and to the extent that the
  Company, in its sole discretion, requests such assistance, the Optionee shall
  sign all documents and do all other things deemed necessary by the Company,
  at the Company&#146;s expense, to obtain and/or maintain such rights, to provide
  confirmatory evidence of the Optionee&#146;s assignment of such Creations to the
  Company, to defend them from invalidation, and to protect them against
  infringement by other parties. The obligations of this paragraph are
  continuing and survive the termination of the Optionee&#146;s employment with the
  Company. The Optionee irrevocably appoints the Chief Executive Officer of the
  Company (with powers of delegation) to act as the Optionee&#146;s agent and
  attorney-in-fact to perform all acts as the Optionee&#146;s agent and to file,
  prosecute, and maintain applications and registrations for patents,
  trademarks, copyrights, mask work rights, and similar rights to any Creations
  assigned by the Optionee to the Company under this Option Agreement, such
  appointment being effective both during the Optionee&#146;s employment by Company,
  and thereafter if the Optionee (1) refuses to perform those acts, or (2) is
  unavailable, within the meaning of any applicable laws. The Optionee
  acknowledges that the grant of the foregoing power of attorney is coupled
  with an interest, is irrevocable, and shall survive his/her death or
  disability.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 5 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 6.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>

<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>

</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Nonsolicitation</U></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For a period
  of one (1) year following the termination of the Optionee&#146;s employment for
  any reason, the Optionee will not directly or indirectly solicit the Business
  of any customer of the Company of whom the Optionee acquired knowledge and/or
  had direct or indirect contact during the one (1) year period prior to the
  termination of the Optionee&#146;s employment relationship with the Company for
  any purpose other than to obtain, maintain and/or service the customer&#146;s
  Business for the Company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For a period
  of one (1) year following the termination of the Optionee&#146;s employment for
  any reason, the Optionee agrees not to, directly or indirectly, recruit or
  solicit any employees of the Company to work for the Optionee or any other
  person or entity.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>As used in
  this Option Agreement, the following terms shall have these respective
  definitions:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP >
<P><FONT SIZE=2>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Current
  Business&#148; shall mean and include: providing clinical testing information
  services for the diagnosis, monitoring, and treatment of disease; providing
  clinical laboratory management services; providing medical informatics
  services (i.e., the statistical analysis of medical information) and
  consulting services based on such analysis; providing data analysis, medical
  information services, and database management services for the health care
  industry; providing clinical testing information services in support of
  clinical trials, and clinical testing products for use in clinical trials;
  providing services of storage, retrieval, and communication of medical
  information via interactive computer networks; providing to managed care
  organizations, hospitals, employers, and other institutional healthcare
  providers access to a network of clinical diagnostic laboratories providing
  services of processing requests for diagnostic tests, performing tests,
  reporting test results, and paying claims to network laboratories; providing
  quality and utilization management; providing consolidated chronological
  reports in graphical and/or numerical form, representing the results of
  clinical diagnostic tests performed on individual patients and groups of
  patients over monitored periods of time, together with analysis of the
  results; and manufacturing and selling clinical diagnostic assay kits,
  apparatus, and reagents.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Business&#148;
  shall include the Current Business and any other product or service which the
  Company provided during the one (1) year period prior to the Optionee&#146;s
  termination of employment and during the one (1) year period following the
  Optionee&#146;s termination of employment, but the restriction on products and
  services introduced after the Optionee&#146;s termination of employment shall
  exclude products and services that were not planned, discussed, or
  contemplated prior to the Optionee&#146;s termination of employment.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Indirectly
  Solicit&#148; shall include, but is not be limited to, providing the Company&#146;s
  Confidential Information to another individual, or entity, allowing the use
  of the Optionee&#146;s name by any company (or any employees of any other company)
  other than the Company, in the solicitation of the Business of Company&#146;s
  customers.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>11.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Damages and Injunctive Relief</U></B>. The
  Optionee understands that if the terms of Section 9 and/or 10 of this Option
  Agreement are violated, the Corporation would be seriously and irreparably
  damaged, and agrees that the Corporation will be entitled to seek appropriate
  remedies for those damages, including, without limitation, injunctive relief
  to enforce any provision of this Agreement and all reasonable attorney&#146;s fees
  incurred by the Corporation to enforce the terms of these Sections.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>12.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Forfeiture</U></B>. The Optionee will
  immediately forfeit any unexercised portion of the Option for any violations
  of (i) the terms of Sections 9 and/or 10 of this Agreement and/or (ii) the
  non-compete obligations set forth in the agreement between the Optionee and
  the Corporation or otherwise pursuant to any written policy of the
  Corporation, in addition to any equitable and legal rights the Corporation
  has or may have. The Optionee understands that the forfeiture of any
  unexercised portion of the Option is only one element of the damages
  potentially sustained by the Corporation for a violation of Sections 9 and/or
  10 of this Agreement or the non-compete obligation described above, and such
  forfeiture shall not constitute a release of any claim that the Company may
  have for damages, past, present, or future.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 6 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 7.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2 face=arial>13.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a) <B><U>Consent Requirement</U></B>. If the Corporation
  shall at any time determine that any consent (as hereinafter defined) is
  necessary or desirable as a condition of, or in connection with, the granting
  of this Option, the issuance or purchase of Shares or other rights hereunder,
  or the taking of any other action hereunder (a &#147;Plan Action&#148;), then no such
  Plan Action shall be taken, in whole or in part, unless and until such
  consent shall have been effected or obtained to the full satisfaction of the
  Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b) <B><U>Definition of Consent</U></B>. The term &#147;consent&#148;
  as used herein with respect to any action referred to in Section&nbsp;13(a)
  means (i) any and all listings, registrations or qualifications in respect
  thereof upon any securities exchange or under any federal, state or local
  law, rule or regulation, (ii)&nbsp;any and all written agreements and
  representations by the Optionee with respect to the disposition of Shares, or
  with respect to any other matter, which the Corporation shall deem necessary
  or desirable to comply with the terms of any such listing, registration or
  qualification or to obtain an exemption from the requirement that any such
  listing, qualification or registration be made, (iii) any and all consents,
  clearances and approvals in respect of a Plan Action by any governmental or
  other regulatory bodies, and (iv) any and all consents or authorizations
  required to comply with, or required to be obtained under, applicable local
  law or otherwise required by the Corporation. Nothing herein shall require
  the Corporation to list, register or qualify the Shares of its common stock
  on any securities exchange.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>14.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Invalidity and Enforcement</U></B>. If any
  provision of this Agreement is deemed invalid or unenforceable, either in
  whole or in part, this Option Agreement will be deemed amended to delete or
  to modify, as set forth in this Section, the offending provision or
  provisions and to alter the bounds of this Agreement in order to render it
  valid and enforceable. The Corporation and the Optionee specifically request
  that any court having jurisdiction over any dispute relating to this Option
  Agreement modify, if possible, any offending provision so that such provision
  will be enforceable to the maximum extent permitted by State law.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>15.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Employee at Will</U></B>. The Optionee
  understands that his/her employment with the Corporation is at will and that
  it can be terminated at any time by the Optionee and/or the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>16.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Enforcement by Successors and Assigns</U></B>.
  The Corporation and any of its successors or assignees may enforce the
  Corporation&#146;s rights under this Option Agreement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>17.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Entire Agreement</U></B>. The Agreement
  supersedes any prior agreement or understandings between the Optionee and the
  Company with respect to nonsolicitation, nonuse, and non-disclosure and
  constitutes the entire agreement between the Corporation and the Optionee. No
  modification of this Option Agreement will have any force or effect unless
  such modification is in writing, signed by the Chief Executive Officer of the
  Corporation and the Optionee, and expressly indicates an intent to modify
  this Option Agreement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>18.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Interpretation</U></B>. Any dispute,
  disagreement or matter of interpretation which shall arise under this
  Agreement shall be finally determined by the Corporation&#146;s Compensation
  Committee in its absolute discretion.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>19.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Notice of Exercise</U></B>. The Optionee may
  exercise the Option, in accordance with the procedures specified by the
  Corporation from time to time.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>20.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Rights Prior to Exercise</U></B>. The Optionee
  shall not have any rights as a stockholder with respect to any Shares subject
  to this Option prior to the date on which he/she is recorded as the holder of
  such Shares on the records of the Corporation. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>21.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Taxes</U></B>. The Corporation may make such
  provisions and take such steps as it may deem necessary or appropriate for
  the withholding of all federal, state, local and other taxes required by law
  to be withheld with respect to this Option. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>22.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Governing Law</U></B>. This Option Agreement and
  all rights hereunder shall be governed by, and construed and interpreted in
  accordance with, the laws of the state of New Jersey applicable to contracts
  made and to be performed entirely within such state.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Acknowledgements</U></B>. By execution of this
  Non-Qualified Stock Option Grant Agreement, the Optionee agrees that he/she
  has received and reviewed a copy of: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">(a) the
Prospectus <B>(link to Prospectus: </B><BR>
http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_option/stock_option.htm)<BR>
relating to the Corporation&#146;s Employee Equity Participation Program and; </FONT> </P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">(b) the
Quest Diagnostics Incorporated 2005 Annual Report <B>(link to 2005 Annual
Report: </B><BR>
http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700 to
Shareholders and Form 10-K); </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">(c) the
Corporation&#146;s Policy for Purchasing and Selling Securities (&#147;the Policy&#148;) <B>(link
to Trading Policy:
</B>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
Optionee further agrees to fully comply with the terms of the Policy; </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 7 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 8.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">(d) the
Corporation&#146;s Executive Share Ownership Guidelines <B>(link to guidelines:
</B><U>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm</U>);
and </FONT> </P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)           the Corporation&#146;s Equity Award
  Eligibility Policy attached hereto as Annex A.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>OPTIONEE:</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P><FONT SIZE=2>By:&nbsp;</font></P>
</TD>
<TD WIDTH="28%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="67%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>Prevoznik, Michael</I></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 8 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
February 15, 2006<BR>
Page 9.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Annex A<BR>
Quest Diagnostics Incorporated<BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<P><FONT SIZE=2><B><U>Option Eligibility </U></B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P><B>&nbsp;</B></P>
</TD>
<TD WIDTH="10%" VALIGN=TOP>
<P><B>&nbsp;</B></P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P><B>&nbsp;</B></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE="2"><B>&#149;</B> </FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE="2"><B>Unreduced
Work Schedule</B> </FONT> </P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE="2"><B>&#149;</B> </FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE="2"><B>One of the
following salary grades:</B> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE="1"><B>&nbsp;</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE="2"><B>&#149;</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2"><B>Corporate VP
or Higher</B> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE="1"><B>&nbsp;</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE="2"><B>&#149;</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2"><B>Salary Grade
53 or Higher</B> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE="1"><B>&nbsp;</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE="2"><B>&#149;</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2"><B>Research
&amp; Development - Grade RD6 or Higher</B> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE="1"><B>&nbsp;</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE="2"><B>&#149;</B> </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2"><B>Medical
Director - Grade MD2</B> </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>For employees whose salary is administered
outside the standard Quest structure (i.e., MedPlus, International, Clinical
Trials Europe), a Quest Diagnostics salary grade has been assigned consistent
with the above requirements. This grade is stored within the Company's Stock
Administration System. </B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT:
Meeting the criteria for &#147;Option Eligibility&#148; <I>does
not guarantee an award</I>. All grants are subject to a separate
approval process.</B></FONT></P>

<P ALIGN=RIGHT><FONT SIZE=2>Page 9 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>7
<FILENAME>ex10-6.htm
<DESCRIPTION>EXHIBIT 10.6
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P><FONT SIZE=2><B>Exhibit 10.6</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>QUEST
DIAGNOSTICS INCORPORATED<BR>
NON-QUALIFIED STOCK OPTION AGREEMENT</B></FONT></P>

<P><FONT SIZE="2">This Non-Qualified Stock Option Agreement (the &#147;Option
Agreement&#148;), dated as of <I>February 15, 2006
</I>(the &#147;Grant Date&#148;), is by and between Quest Diagnostics Incorporated, 1290 Wall
Street West, Lyndhurst, New Jersey 07071 (the &#147;Corporation&#148;) and <U><B><I>Peters,
Robert E. </I></B></U>(the &#147;Optionee&#148;) [address].</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Conditions</U>.</B>
  This Option Agreement is subject in all respects to the Corporation&#146;s Amended
  and Restated Long-Term Employee Incentive Plan, which is incorporated herein
  by reference. The Optionee acknowledges that he/she has read the terms of the
  Amended and Restated Long-Term Employee Incentive Plan and that those terms
  shall govern in the event of any conflict between them and those of this
  Option Agreement. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>In consideration of the grant of
  the option provided pursuant to this Option Agreement and by accepting the
  terms of this Agreement, the Optionee agrees that all options granted to the
  Optionee by the Corporation prior to the date hereof (the &#147;Prior Options&#148;)
shall be subject to forfeiture pursuant
  to paragraph 4(b)(ii) of this Option Agreement (for false attestation under
  the Executive Share Ownership Guidelines of the Corporation (the &#147;
  Minimum Share Ownership Policy&#148;)), the Shares obtained on exercise of such
  Prior Options after the date hereof shall be subject to the Minimum Share
  Ownership Policy pursuant to paragraph
  5(b) of this Option Agreement and the terms of paragraphs 4(b)(ii) and 5(b)
  hereof are made a part of the terms of each of the Prior Options.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>In
  consideration of the grant of the option provided pursuant to this Option
  Agreement and by accepting the terms of this Agreement, the Optionee agrees
  that this Option shall be subject to forfeiture pursuant to paragraph
  4(b)(iii) of this Agreement.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>This Option Agreement shall become effective only after
  the Optionee has executed and returned to the Executive Compensation
  Department (to the attention of Lisa Zajac (1290 Wall Street West &#150; 5<SUP>th</SUP>
  Floor, Lyndhurst, NJ 07071) a signed copy of this Option Agreement and shall
  be revoked if not executed and returned to Lisa Zajac within thirty (30) days
  of receipt by the Optionee.</I></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>[Award of Option</U></B>.
  The Corporation hereby awards to the Optionee an option (the &#147;Option&#148;) to
  purchase from the Corporation such number of shares of the Corporation&#146;s
  common stock (the &#147;Shares&#148;) at the exercise price set forth in this Option
  Agreement (the &#147;Exercise Price&#148;) below.
  This option shall vest equally over a three-year period.  If the foregoing results in a
fractional
  number of Shares subject to the Option vesting on any vesting date, the
  number of Shares subject to the Option vesting on the first and second vesting
  dates shall be rounded down to the previous whole number of Shares and the
  Shares subject to the Option vesting on the third vesting date shall be
  rounded up to the next whole number of Shares, as shall be necessary in order
  to result in a vesting of 100% of the Shares subject to the Option.<U> The
  Compensation Committee of the Corporation may, in its sole discretion,
  convert this Option at any time to a stock settled stock appreciation
grant.</U></FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="39%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="41%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="19%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Number of Shares Subject to Option: 50,000</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Exercise Price per Share:  $52.235</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Expiration Date:&nbsp;February 15, 2013</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B><I>Vesting Schedule:</I></B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="70%">
<TR style="font-size:1px">
<TD WIDTH="48%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM nowrap>
<P ALIGN=CENTER><FONT SIZE=1><B>Number of Shares Subject to Option</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<hr size=1 noshade color=black width="100%">
</TD>
<TD VALIGN=BOTTOM>
<hr size=1 noshade color=black width="100%">
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Vesting Dates</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM nowrap>
<P ALIGN=CENTER><FONT SIZE=1><B>% of Grant</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Incremental</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Cumulative</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</tr>
<TR>
<TD VALIGN=BOTTOM>
<hr size=1 noshade color=black width="100%">
</TD>
<TD VALIGN=BOTTOM>
<hr size=1 noshade color=black width="100%">
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<hr size=1 noshade color=black width="100%">
</TD>
<TD VALIGN=BOTTOM>
<hr size=1 noshade color=black width="100%">
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<hr size=1 noshade color=black width="100%">
</TD>
<TD VALIGN=BOTTOM>
<hr size=1 noshade color=black width="100%">
</TD>
</TR>
<TR >
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>February 15, 2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>33.33</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>16,666</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>16,666</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>February 15, 2008</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>33.33</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>16,667</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>33,333</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR >
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>February 15, 2009</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>33.34</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>16,667</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>50,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>This option shall expire, and no shares may be
purchased pursuant to this Option, after the expiration date set forth above
(the &#147;Expiration Date&#148;). <I> </I></FONT></P>

<P ALIGN=RIGHT><FONT SIZE=2>Page 1 of 9<BR>
EOAgmt</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
page 2.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Not An Incentive Stock Option</U>.</B>
  This Option is not intended to be an &#147;incentive stock option&#148; within the
  meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
  &#147;Code&#148;) and this Agreement shall be construed and interpreted in accordance
  with such intention.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Vesting</U>.</B>  Except as otherwise provided below, the
  Option shall vest and become exercisable as to the percentage of Shares
  subject to the Option on the vesting dates [set forth above][set forth on the
  &#147;Summary Grant&#148; page at the Smith Barney website] (the &#147;Vesting
Dates&#148;). </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination</U></B>.
  Unless the Optionee&#146;s employment is terminated for one of the reasons set
  forth in Section 4(b) through (i), at the Optionee&#146;s termination of
  employment prior to the third anniversary of the date of this Agreement, the
  Optionee will vest in and have the right to purchase a percentage of the
  Shares subject to this Option determined by dividing (i) the number of whole
  months from the most recent anniversary of the grant date (February 15) to
  the termination date of the Optionee&#146;s employment by (ii) 36, and the Option
  will cease to be exercisable and will be cancelled for the balance of the
  Shares subject to this Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Notwithstanding anything to the contrary contained
  herein, if the Optionee is on a leave of absence approved by the Corporation
  for medical, personal, educational and/or other permissible purposes pursuant
  to policies of the Corporation as in effect on the date hereof, for a
  consecutive twelve-month period, such Optionee will be deemed terminated for
  purposes of this Agreement on the twelve month anniversary of the
  commencement of such leave of absence and this Option shall cease to vest at
  the end of such twelve-month period and the Optionee will forfeit any
  unvested portion of the Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</tr>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Cause, Dereliction of Duties or
  Harmful Acts; Breach of Share Ownership Guidelines; Loss of Equity Award
  Eligibility Status.</U></B> (i) If the Optionee shall cause the
  Corporation to suffer financial harm or damage to its reputation (either
  before or after termination of employment) through (x) dishonesty, (y)
  violation of law in the course of the Optionee&#146;s employment or violation of
  the Corporation&#146;s Corporate Compliance Manual and compliance bulletins or
  other written policies, or (z) material deviation from the duties owed the
  Corporation by the Optionee, this Option, whether or not vested, shall expire
  and be cancelled to the extent it has not been exercised and be of no further
  force or effect. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</tr>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(ii) If the Optionee is subject to the Minimum Share
  Ownership Policy, any false attestation made under the Minimum Share
  Ownership Policy may result in the immediate cancellation of this Option and
  all Prior Options (to the extent not exercised), whether or not vested.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>(iii) If the Optionee&#146;s employment status in the
  Corporation is changed such that the Optionee will no longer be eligible to
  receive options pursuant to the Equity Award Eligibility Policy of the
  Corporation as in effect on the date hereof and attached as Annex A to this
  Agreement and such changed status continues for a consecutive 90 day period,
  this Option shall cease to vest at the end of such 90-day period (and the
  Optionee will then vest in and have the right to purchase a percentage of the
  Shares subject to this Option determined by dividing (i) the number of whole
  months from the most recent anniversary of the grant date (February 15) to
  the end of such 90-day period by (ii) 36), and the Optionee will immediately
  forfeit any unvested portion of the Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Death</U></B>. If the
  Optionee shall die while employed, this Option shall vest as to all Shares
  subject to the Option on the date of the Optionee&#146;s death. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Disability</U></B>.
  If the Optionee&#146;s employment shall terminate as a result of disability (as
  defined in Section 22(e)(3) of the Code), this Option shall vest as to all
  Shares subject to the Option on the date of the Optionee&#146;s termination of
  employment. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Change of Control</U>.</B>
  This Option shall vest as to all shares immediately on the effective date of
  a change of control, provided the Optionee was actively employed by the
  Corporation on such date. For purposes of this Agreement the term &#147;change of
  control&#148; shall mean and shall be deemed to occur if and when:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Any person (as such term is used in Sections 13(d)
  and 14(d)(2) of the Securities Exchange Act of 1934) is or becomes the
  beneficial owner, directly or indirectly, of securities of the Corporation
  representing 40% of more of the combined voting power of the Corporation&#146;s
  then outstanding securities; or</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>page 2 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
page 3.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The individuals who, as of the Grant Date,
  constituted the Corporation&#146;s Board of Directors (the &#147;Incumbent Board&#148;)
  cease for any reason to constitute at least a majority of the Board; <I>provided,
  however</I>, that any individual (other than any individual whose
  initial assumption of office is in connection with an actual or threatened
  election contest (as such term is used in Rule 14a-11 of Regulation A
  promulgated under the Securities Exchange Act of 1934)), becoming a director
  subsequent to the Grant Date, whose election, or nomination for election by
  the stockholders of the Corporation, was approved by a vote of at least a
  majority of the directors then comprising the Incumbent Board, shall be
  considered as though such individual was a member of the Incumbent Board; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Shareholders of the Corporation approve an
  agreement, providing for (a) a transaction in which the Corporation will
  cease to be an independent publicly owned corporation, or (b) the sale or
  other disposition of all or substantially all of the Corporation&#146;s assets, or
  (c) a plan of partial or complete liquidation of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Involuntary Termination with
  Severance</U></B>. If prior to the third anniversary of the
  date of this Agreement, the Optionee&#146;s employment is terminated by the
  Corporation and, as a result, the Optionee becomes eligible for severance
  benefits under one of the Corporation&#146;s Severance Plans, the Optionee will
  immediately vest in and have the right to purchase a percentage of the Shares
  subject to this Option determined by dividing (i) the number of whole months
  from the most recent anniversary of the grant date (February 15) to the date
  that is twelve months after the termination date of the Optionee&#146;s employment
  by (ii) 36, and the Option will cease to be exercisable and will be cancelled
  for the balance of the Shares subject to this Option.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(g)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Divestiture</U></B>.
  If prior to the third anniversary of the date of this Agreement, the
  Optionee&#146;s employment is terminated by the Corporation due to a divestiture
  and the Optionee is employed by the purchasing entity, then the Optionee will
  immediately vest in a percentage of the Shares subject to this Option
  determined by dividing (i) the number of whole months from the most recent
  anniversary of the grant date (February 15) to the date that is twelve months
  after the termination date of the Optionee&#146;s employment by (ii) 36, and the
  Option will cease to be exercisable and will be cancelled for the balance of
  the Shares subject to this Option. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(h)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Transfers</U></B><U>.</U>
  If the Optionee shall be transferred from the Corporation to a subsidiary
  company (being a 50% owned entity within the meaning of Section 425(f) of the
  Code), or joint venture or similar entity existing as of the date of this
  Agreement in which the Corporation has at least a 33.33% interest (&#147;joint
  venture&#148;) or vice versa or from one subsidiary company (or joint venture) to
  another, the Optionee&#146;s employment shall not be deemed to have terminated.
  If, while the Optionee is employed by such a subsidiary company or joint
  venture, such subsidiary company or joint venture shall cease to be a
  subsidiary company or joint venture as described above and the Optionee is
  not thereupon transferred to and employed by the Corporation or another
  subsidiary company or joint venture as described above, then the Optionee&#146;s
  employment will be treated as a termination due to a divestiture under clause
  (g) above as of the date that the Optionee&#146;s employer ceases to be such a
  subsidiary company or joint venture of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Retirement</U></B><U>.</U>
  If the Optionee&#146;s employment shall terminate with the consent of the
  Corporation on or after the Optionee&#146;s attaining age 60, this Option shall
  vest and be exercisable as to all Shares subject to this Option on the
  effective termination date of the Optionee&#146;s employment.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Transferability</U>.  </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The rights under this Option Agreement shall not be
  transferable other than by will or the laws of descent and distribution and
  may be exercised during the lifetime of the Optionee only by the Optionee
  except to the extent of a disability (as defined in Section 22(e)(3) of the
  Code), in which case the Option may be exercised by the Optionee&#146;s legal
  representative.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>If the Optionee is subject to the Minimum Share
  Ownership Policy, the Optionee agrees that any shares issued hereunder or
  pursuant to any Prior Option shall be subject to the restrictions set forth
  in the Minimum Share Ownership Policy. If the Optionee is not in compliance
  with the Minimum Share Ownership Policy, the Corporation may terminate the
  employment of such Optionee and/or the Option shall immediately terminate and
  cease to be exercisable. The Optionee hereby acknowledges and agrees that the
  investment risk associated with the retention of any Shares, whether pursuant
  to the Minimum Share Ownership Policy or otherwise, is the sole
  responsibility of the Optionee and Optionee hereby holds the Corporation
  harmless against any claim of loss related to the retention of the Shares.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>6.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Exercise</U></B><U>.</U> The
  purchase price of Shares purchased hereunder shall be paid in full with, or
  in a combination of, (a) cash or (b) shares of the Corporation&#146;s Common Stock
  that have been owned by the Optionee, and have been fully vested and freely
  transferable by the Optionee, for at least six months preceding the date of
  exercise of the Option, duly endorsed or accompanied by stock powers executed
  in blank. However, the Corporation in its discretion may permit the Optionee
  (if the </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 3 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
page 4.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Optionee owns shares that have been owned by the
  Optionee, and have been fully vested and fully transferable by the Optionee,
  for at least six months preceding the date of exercise) to &#147;attest&#148; to his
  ownership of the number of shares required to pay all or part of the purchase
  price (and not require delivery of the shares), in which case the Corporation
  will deliver to the Optionee the number of shares to which the Optionee is
  entitled, net of the &#147;attested&#148; shares. If payment is made in whole or in
  part with shares of the Corporation&#146;s Common Stock, the value of such Common
  Stock shall be the mean between its high and low prices on the day of
  purchase as reported by <I>The New York Times </I>following the close
  of business on the date of exercise. No &#147;reload&#148; or other option will be
  granted by reason of any such exercise. The Optionee agrees that, notwithstanding
  the terms of any pre-existing agreement between the Corporation and the
  Optionee, any shares of the Corporation&#146;s Common Stock surrendered (or
  &#147;attested&#148; to) for payment of the exercise price of any options previously
  granted by the Corporation to the Optionee (whether granted under the terms
  of the Amended and Restated Employee Long-Term Incentive Plan or any
  predecessor program) shall be valued in the manner provided in the preceding
  sentence except to the extent otherwise expressly provided by the terms of
  the program document.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>7.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Exercise After Termination of
  Employment, Death or Disability</U>. </B> The provisions covering the exercise of
  this Option following termination of employment are as follows:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Termination in General.</U>
  </B>If the Optionee shall terminate his employment for any reason other than
  those described in Section 7(b) through (f), all of the vested percentage of
  the Option may be exercised for ninety (90) days following such termination
  (but not beyond the Expiration Date) and the Option shall thereafter expire
  and cease to be exercisable;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Death</U></B><U>.</U>
  If the Optionee shall die while employed, the Option may be exercised through
  the Expiration Date in respect of all of the Shares subject to the Option. If
  the Optionee shall die after termination of employment but while the Option
  is still exercisable, it shall remain exercisable to the same extent through
  the first anniversary of the date of death but not beyond the Expiration
  Date;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Disability.</U></B>
  If the Optionee&#146;s employment shall terminate as a result of disability (as
  defined in Section 22(e)(3) of the Code), the Option shall remain exercisable
  through the Expiration Date;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Involuntary Termination with
  Severance</U></B>. If the Optionee&#146;s employment is terminated
  by the Corporation and, as a result, the Optionee becomes eligible for
  severance benefits under the Corporation&#146;s Severance Plans, then to the
  extent this Option is vested and exercisable (and becomes vested and
  exercisable under Section 4(f)), it may be exercised through the first
  anniversary of the date of termination (but not beyond the Expiration Date)
  and shall thereafter expire. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Divestiture</U>.</B>
  If prior to the third anniversary of the date of this Agreement, the
  Optionee&#146;s employment is terminated by the Corporation due to a divestiture
  and the Optionee is employed by the purchasing entity, then to the extent
  this Option is vested and exercisable (and becomes vested and exercisable
  under Section 4(g)), it may be exercised through the first anniversary of the
  date of termination (but not beyond the Expiration Date) and shall thereafter
  expire.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Retirement</U></B><U>.</U>
  If the Optionee&#146;s employment shall terminate as a result of Retirement as
  defined in Section 4(i) of this Option, all of the Option may be exercised as
  to all of the Shares subject to the Option through the Expiration Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>In no event may any portion of the Option be
  exercised after the Expiration Date. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Consideration</U></B>.  In consideration for the Option granted by
  this Option Agreement, the Optionee hereby agrees to be bound by the
  Nondisclosure and Nonsolicitation provisions set forth in Sections 9 and 10
  of this Option Agreement and the non-compete obligations set forth in the
  agreement between the Optionee and the Corporation or otherwise pursuant to
  any written policy of the Corporation. For purposes of Sections 9 and 10, the
  term &#147;Company&#148; shall mean the Corporation, its affiliates, divisions and
  subsidiaries, or any other entity in which the Corporation, directly or
  indirectly, controls or has an ownership or equity interest equal to or
  greater than 25.0% of the combined voting power of the entity&#146;s then
  outstanding securities, and their respective successors and assigns.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>9.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Nondisclosure of Confidential
  Information</U>.  </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</tr>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For purposes of this Option Agreement, the term
  &#147;Confidential Information&#148; shall mean all ideas, inventions, data, databases,
  know-how, processes, methods, practices, specifications, raw materials and
  preparations, compositions, designs, devices, fabrication techniques,
  technical plans, algorithms, computer programs, protocols, client
  information, medical records, documentation, customer names and lists,
  supplier names and lists, price lists, supplier names and lists, apparatus,
  business plans, marketing plans, financial information, chemical and
  biological reagents, business methods and systems, literary and graphical and
  audiovisual works and sound recordings, mask works, </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>page 4 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
page 5.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>computer programs, and the like, and potential trade
  names, trademarks, and logos, in whatever form or medium and which have
  commercial value, and whether or not designated or marked &#147;Confidential&#148; or
  the like, which the Optionee learns, acquires, conceives, creates, develops,
  or improves while employed by the Company and which (1) relate to the past,
  current, or prospective business of the Company or its subsidiaries and (a)
  which have not previously been publicly disclosed without restrictions on use
  by the Company, or (b) which Optionee knows or has good reason to know are
  not generally publicly known; or (2) are received by the Company from a third
  party under an obligation of confidentiality to the third party</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee recognizes and acknowledges that during
  his or her employment with the Company, the Optionee may be given access to
  or develop Confidential Information. The Optionee shall not use or disclose
  (directly or indirectly) any Confidential Information (whether or not
  developed by the Optionee) at any time or in any manner, except as authorized
  and required in the course of employment with the Company. The Optionee shall
  not disclose to the Company or use on behalf of the Company any Confidential
  Information obtained from any former employer or any other third party. All
  documents and things embodying Confidential Information, whether prepared by
  the Optionee or otherwise coming into the Optionee&#146;s possession, are the
  exclusive property of the Company, and must not be removed from any of its
  premises except as required in the course of employment with the Company. All
  such documents and things shall be promptly returned by the Optionee to the
  Company upon the request of the Company and on any termination of employment
  with the Company. The Optionee will not remove any Confidential Information
  such as documents or things or retain them in whole or part in any manner.
  The Optionee shall ensure that any export of Confidential Information
  undertaken by the Optionee or with his/her knowledge or approval shall be in
  compliance with all applicable laws.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee shall promptly disclose to the Company
  all Confidential Information which the Optionee creates, conceives, develops,
  or improves (either alone or with others) referred to below as a &#147;Creation&#148;
  while in the employment of the Company, if the Creation either: (1) relates
  to any actual or demonstrably contemplated business, or research or
  development project, of the Company or its subsidiaries, or to any reasonable
  extension or variation thereof; or (2) results from any work performed by the
  Optionee for the Company; or (3) was created utilizing any of the Company&#146;s
  equipment, supplies, facilities, time, or Confidential Information. The
  Optionee shall keep complete, accurate, and authentic records on all
  Creations in the manner and form requested by the Company. The Optionee shall
  promptly disclose to the Company, in confidence, all patent, copyright, and
  trademark applications filed by the Optionee within one (1) year after termination
  of employment with the Company and which relate to any field in which the
  Optionee worked at the Company. The Optionee agrees that any such application
  for a patent, copyright registration, trademark registration, mask work
  registration, or similar right filed within one (1) year after termination of
  employment with the Company shall be presumed to relate to a Creation of the
  Optionee created during employment at the Company, unless the Optionee can
  prove otherwise.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee hereby assigns to the Company all of
  the Optionee&#146;s rights in all of the above-described Creations. All such
  Creations that are subject to copyright or mask work protection are
  explicitly considered by the Optionee and the Company to be works made for
  hire to the extent permitted by law. To the extent that any such Creations
  are subject to copyright protection and are not works made for hire, any and
  all of the Optionee&#146;s copyright and mask work interest therein are hereby
  assigned by the Optionee to the Company, and are the exclusive property of
  the Company. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Optionee agrees to assist the Company in
  obtaining and/or maintaining patents, copyrights, trademarks, mask work
  rights, and similar rights to any Creations assigned by the Optionee to the
  Company, if and to the extent that the Company, in its sole discretion,
  requests such assistance, the Optionee shall sign all documents and do all
  other things deemed necessary by the Company, at the Company&#146;s expense, to
  obtain and/or maintain such rights, to provide confirmatory evidence of the
  Optionee&#146;s assignment of such Creations to the Company, to defend them from
  invalidation, and to protect them against infringement by other parties. The
  obligations of this paragraph are continuing and survive the termination of
  the Optionee&#146;s employment with the Company. The Optionee irrevocably appoints
  the Chief Executive Officer of the Company (with powers of delegation) to act
  as the Optionee&#146;s agent and attorney-in-fact to perform all acts as the
  Optionee&#146;s agent and to file, prosecute, and maintain applications and
  registrations for patents, trademarks, copyrights, mask work rights, and
  similar rights to any Creations assigned by the Optionee to the Company under
  this Option Agreement, such appointment being effective both during the
  Optionee&#146;s employment by Company, and thereafter if the Optionee (1) refuses
  to perform those acts, or (2) is unavailable, within the meaning of any
  applicable laws. The Optionee acknowledges that the grant of the foregoing
  power of attorney is coupled with an interest, is irrevocable, and shall
  survive his/her death or disability.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 5 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
page 6.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Nonsolicitation </U></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For a period of one (1) year following the termination
  of the Optionee&#146;s employment for any reason, the Optionee will not directly
  or indirectly solicit the Business of any customer of the Company of whom the
  Optionee acquired knowledge and/or had direct or indirect contact during the
  one (1) year period prior to the termination of the Optionee&#146;s employment
  relationship with the Company for any purpose other than to obtain, maintain
  and/or service the customer&#146;s Business for the Company. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For a period of one (1) year following the
  termination of the Optionee&#146;s employment for any reason, the Optionee agrees
  not to, directly or indirectly, recruit or solicit any employees of the
  Company to work for the Optionee or any other person or entity.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>As used in this Option Agreement, the following
  terms shall have these respective definitions:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Current Business&#148; shall mean and include: providing
  clinical testing information services for the diagnosis, monitoring, and
  treatment of disease; providing clinical laboratory management services;
  providing medical informatics services (i.e., the statistical analysis of
  medical information) and consulting services based on such analysis;
  providing data analysis, medical information services, and database
  management services for the health care industry; providing clinical testing
  information services in support of clinical trials, and clinical testing
  products for use in clinical trials; providing services of storage,
  retrieval, and communication of medical information via interactive computer
  networks; providing to managed care organizations, hospitals, employers, and
  other institutional healthcare providers access to a network of clinical
  diagnostic laboratories providing services of processing requests for
  diagnostic tests, performing tests, reporting test results, and paying claims
  to network laboratories; providing quality and utilization management;
  providing consolidated chronological reports in graphical and/or numerical
  form, representing the results of clinical diagnostic tests performed on
  individual patients and groups of patients over monitored periods of time,
  together with analysis of the results; and manufacturing and selling clinical
  diagnostic assay kits, apparatus, and reagents.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Business&#148; shall include the Current Business and
  any other product or service which the Company provided during the one (1)
  year period prior to the Optionee&#146;s termination of employment and during the
  one (1) year period following the Optionee&#146;s termination of employment, but
  the restriction on products and services introduced after the Optionee&#146;s
  termination of employment shall exclude products and services that were not
  planned, discussed, or contemplated prior to the Optionee&#146;s termination of
  employment.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Indirectly Solicit&#148; shall include, but is not be
  limited to, providing the Company&#146;s Confidential Information to another
  individual, or entity, allowing the use of the Optionee&#146;s name by any company
  (or any employees of any other company) other than the Company, in the solicitation
  of the Business of Company&#146;s customers.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>11.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Damages and Injunctive Relief</U>.</B>  The Optionee understands that
if the terms
  of Section 9 and/or 10 of this Option Agreement are violated, the Corporation
  would be seriously and irreparably damaged, and agrees that the Corporation
  will be entitled to seek appropriate remedies for those damages, including,
  without limitation, injunctive relief to enforce any provision of this
  Agreement and all reasonable attorney&#146;s fees incurred by the Corporation to
  enforce the terms of these Sections.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>12.</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Forfeiture</U></B>.
  The Optionee will immediately forfeit any unexercised portion of the Option
  for any violations of (i) the terms of Sections 9 and/or 10 of this Agreement
  and/or (ii) the non-compete obligations set forth in the agreement between
  the Optionee and the Corporation or otherwise pursuant to any written policy
  of the Corporation, in addition to any equitable and legal rights the
  Corporation has or may have. The Optionee understands that the forfeiture of
  any unexercised portion of the Option is only one element of the damages
  potentially sustained by the Corporation for a violation of Sections 9 and/or
  10 of this Agreement or the non-compete obligation described above, and such
  forfeiture shall not constitute a release of any claim that the Company may
  have for damages, past, present, or future.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 6 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
page 7.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT face=arial SIZE=2>13.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a) <B><U>Consent
  Requirement</U></B>. If the Corporation shall at any time determine
  that any consent (as hereinafter defined) is necessary or desirable as a
  condition of, or in connection with, the granting of this Option, the
  issuance or purchase of Shares or other rights hereunder, or the taking of
  any other action hereunder (a &#147;Plan Action&#148;), then no such Plan Action shall
  be taken, in whole or in part, unless and until such consent shall have been
  effected or obtained to the full satisfaction of the Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b) <B><U>Definition
  of Consent</U></B>. The term &#147;consent&#148; as used herein with respect to
  any action referred to in Section&nbsp;13(a) means (i) any and all listings,
  registrations or qualifications in respect thereof upon any securities
  exchange or under any federal, state or local law, rule or regulation,
  (ii)&nbsp;any and all written agreements and representations by the Optionee
  with respect to the disposition of Shares, or with respect to any other
  matter, which the Corporation shall deem necessary or desirable to comply
  with the terms of any such listing, registration or qualification or to
  obtain an exemption from the requirement that any such listing, qualification
  or registration be made, (iii) any and all consents, clearances and approvals
  in respect of a Plan Action by any governmental or other regulatory bodies,
  and (iv) any and all consents or authorizations required to comply with, or
  required to be obtained under, applicable local law or otherwise required by
  the Corporation. Nothing herein shall require the Corporation to list,
  register or qualify the Shares of its common stock on any securities exchange.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>14.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Invalidity and Enforcement</U></B>.  If any provision of this
Agreement is
  deemed invalid or unenforceable, either in whole or in part, this Option
  Agreement will be deemed amended to delete or to modify, as set forth in this
  Section, the offending provision or provisions and to alter the bounds of
  this Agreement in order to render it valid and enforceable. The Corporation
  and the Optionee specifically request that any court having jurisdiction over
  any dispute relating to this Option Agreement modify, if possible, any
  offending provision so that such provision will be enforceable to the maximum
  extent permitted by State law.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>15.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Employee at Will</U></B>.
  The Optionee understands that his/her employment with the Corporation is at
  will and that it can be terminated at any time by the Optionee and/or the
  Corporation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>16.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Enforcement by Successors and
  Assigns</U>. </B> The
  Corporation and any of its successors or assignees may enforce the
  Corporation&#146;s rights under this Option Agreement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>17.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Entire Agreement</U>.</B>  The Agreement supersedes any prior
  agreement or understandings between the Optionee and the Company with respect
  to nonsolicitation, nonuse, and non-disclosure and constitutes the entire
  agreement between the Corporation and the Optionee. No modification of this
  Option Agreement will have any force or effect unless such modification is in
  writing, signed by the Chief Executive Officer of the Corporation and the
  Optionee, and expressly indicates an intent to modify this Option Agreement.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>18.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Interpretation</U>.</B>  Any dispute, disagreement or matter of
  interpretation which shall arise under this Agreement shall be finally
  determined by the Corporation&#146;s Compensation Committee in its absolute
  discretion.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>19.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Notice of Exercise</U>.</B>  The Optionee may exercise the Option, in
  accordance with the procedures specified by the Corporation from time to
  time.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>20.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Rights Prior to Exercise</U></B>.  The Optionee shall not have any
rights as
  a stockholder with respect to any Shares subject to this Option prior to the
  date on which he/she is recorded as the holder of such Shares on the records
  of the Corporation. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>21.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Taxes</U>.</B>  The Corporation may make such provisions
  and take such steps as it may deem necessary or appropriate for the
  withholding of all federal, state, local and other taxes required by law to
  be withheld with respect to this Option. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>22.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Governing Law</U></B>.  This Option Agreement and all rights
  hereunder shall be governed by, and construed and interpreted in accordance
  with, the laws of the state of New Jersey applicable to contracts made and to
  be performed entirely within such state.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>23.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Acknowledgements</U>.</B>
  By execution of this Non-Qualified Stock Option Grant Agreement, the Optionee
  agrees that he/she has received and reviewed a copy of: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a) the Prospectus <B>(link
  to Prospectus:</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT
SIZE=2>http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_option/stock_option.htm)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>relating to the Corporation&#146;s Employee Equity
  Participation Program and;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">(b) the Quest Diagnostics Incorporated 2005 Annual
Report <B>(link to 2005 Annual Report:</B> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700
  to Shareholders and Form 10-K);</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">(c) the Corporation&#146;s Policy for Purchasing and
Selling Securities (&#147;the Policy&#148;) <B>(link to Trading Policy:
</B>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.)
The Optionee further agrees to fully comply with the terms of the Policy; </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 7 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
page 8.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">(d)&nbsp;the Corporation&#146;s Executive Share Ownership
Guidelines <B>(link to guidelines: </B><U>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm</U>);
and </FONT> </P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)&nbsp;the Corporation&#146;s Equity Award Eligibility
  Policy attached hereto as Annex A.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="11%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="15%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="73%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>OPTIONEE:</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By:</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>Peters, Robert E.</I></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page 8 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
February 15, 2006<BR>
page 9.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Annex
A<BR>
Quest Diagnostics Incorporated<BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<P><FONT SIZE=2><B><U>Option
Eligibility </U></B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Unreduced Work Schedule </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>One of the following salary grades:</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN="CENTER"><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Corporate VP or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN="CENTER"><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Salary Grade 53 or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN="CENTER"><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Research &amp; Development - Grade
  RD6 or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN="CENTER"><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Medical Director - Grade MD2</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>For
employees whose salary is administered outside the standard Quest structure
(i.e., MedPlus, International, Clinical Trials Europe), a Quest Diagnostics
salary grade has been assigned consistent with the above requirements. This
grade is stored within the Company&#146;s Stock Administration System. </B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT: Meeting the criteria for
&#147;Option Eligibility&#148; <I>does not guarantee an
award</I>. All grants are subject to a separate approval process.</B></FONT></P>

<P ALIGN=RIGHT><FONT SIZE=2>Page 9 of 9</FONT></P>

<HR COLOR=#000000 NOSHADE>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>8
<FILENAME>ex10-7.htm
<DESCRIPTION>EXHIBIT 10.7
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>



<P><FONT SIZE=2><B>Exhibit 10.7</B></FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>QUEST DIAGNOSTICS INCORPORATED<BR>
NON-QUALIFIED STOCK OPTION AGREEMENT</B></FONT></P>

<P><FONT SIZE=2>This
Non-Qualified Stock Option Agreement (the &#147;Option Agreement&#148;), dated as of <B>February 15, 2006</B> (the &#147;Grant
Date&#148;), is by
and between Quest Diagnostics Incorporated, 1290 Wall Street West, Lyndhurst,
New Jersey 07071 (the &#147;Corporation&#148;) and <B>W.
Thomas Grant, II</B> (the &#147;Optionee&#148;) [address].</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>1.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Conditions</U></B>. This Option Agreement is
  subject in all respects to the Corporation&#146;s Amended and Restated Long-Term
  Employee Incentive Plan, which is incorporated herein by reference. The
  Optionee acknowledges that he/she has read the terms of the Amended and
  Restated Long-Term Employee Incentive Plan and that those terms shall govern
  in the event of any conflict between them and those of this Option Agreement.
  </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>In consideration of the grant of the option provided pursuant to this
  Option Agreement and by accepting the terms of this Agreement, the Optionee
  agrees that all options granted to the Optionee by the Corporation prior to
  the date hereof (the &#147;Prior Options&#148;) shall be subject to forfeiture pursuant
  to paragraph 4(b)(ii) of this Option Agreement (for false attestation under
  the Executive Share Ownership Guidelines of the Corporation (the &#147; Minimum
  Share Ownership Policy&#148;)), the Shares obtained on exercise of such Prior
  Options after the date hereof shall be subject to the Minimum Share Ownership
  Policy pursuant to paragraph 5(b) of this Option Agreement and the terms of
  paragraphs 4(b)(ii) and 5(b) hereof are made a part of the terms of each of
  the Prior Options. </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>In consideration of the grant of the option provided pursuant to this
  Option Agreement and by accepting the terms of this Agreement, the Optionee
  agrees that this Option shall be subject to forfeiture pursuant to paragraph
  4(b)(iii) of this Agreement. </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><I>This Option Agreement shall become
  effective only after the Optionee has executed and returned to the Executive
  Compensation Department (to the attention of Lisa Zajac (1290 Wall Street
  West &#150; 5<SUP>th</SUP> Floor, Lyndhurst, NJ 07071) a signed copy of this
  Option Agreement and shall be revoked if not executed and returned to Lisa
  Zajac within thirty (30) days of receipt by the Optionee.</I></B>.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>2.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Award of Option</U></B>. The Corporation hereby
  awards to the Optionee an option (the &#147;Option&#148;) to purchase from the
  Corporation such number of shares of the Corporation&#146;s common stock (the
  &#147;Shares&#148;) at the exercise price set forth in this Option Agreement (the
  &#147;Exercise Price&#148;) below. This option shall vest equally over a three-year
  period. If the foregoing results in a fractional number of Shares subject to
  the Option vesting on any vesting date, the number of Shares subject to the
  Option vesting on the first and second vesting dates shall be rounded down to
  the previous whole number of Shares and the Shares subject to the Option
  vesting on the third vesting date shall be rounded up to the next whole
  number of Shares, as shall be necessary in order to result in a vesting of
  100% of the Shares subject to the Option. <U>The Compensation Committee of
  the Corporation may, in its sole discretion, convert this Option at any time
  to a stock settled stock appreciation grant.]</U></FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="36%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="63%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Number of Shares Subject
  to Option:&nbsp;&nbsp;&nbsp;46,667</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Exercise Price per
  Share:&nbsp;&nbsp;&nbsp;$52.235</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Expiration
  Date: &nbsp;&nbsp;February 15, 2013</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT  SIZE=2><I><B>Vesting Schedule:</B></I></FONT></P>



<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=60%>
 <TR style="font-size:1px">
  <TD WIDTH="32%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="16%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="5" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Number of Shares Subject to Option</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="5" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1><B>Vesting
  Dates</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>% of Grant</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Incremental</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Cumulative</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>February 15, 2007</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>33.33</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>15,555</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>15,555</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>February 15, 2008</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>33.33</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>15,556</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>31,111</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>February 15, 2009</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>33.34</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>15,556</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>46,667</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>This option shall expire,
and no shares may be purchased pursuant to this Option, after the expiration
date set forth above (the &#147;Expiration Date&#148;). </FONT></P>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 1 of 8<BR>
EOAgmt </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
XXXXXX, XX, XXXX<BR>
Page 2. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>3.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Not An Incentive Stock Option</U></B>. This
  Option is not intended to be an &#147;incentive stock option&#148; within the meaning
  of Section 422 of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;)
  and this Agreement shall be construed and interpreted in accordance with such
  intention. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>4.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Vesting</U></B>. Except as otherwise provided
  below, the Option shall vest and become exercisable as to the percentage of
  Shares subject to the Option on the vesting dates set forth above (the
  &#147;Vesting Dates&#148;). </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Termination</U></B>. Unless the Optionee&#146;s
  employment is terminated for one of the reasons set forth in Section 4(b)
  through (i), at the Optionee&#146;s termination of employment prior to the third
  anniversary of the date of this Agreement, the Optionee will vest in and have
  the right to purchase a percentage of the Shares subject to this Option
  determined by dividing (i) the number of whole months from the most recent
  anniversary of the grant date (February 15) to the termination date of the
  Optionee&#146;s employment by (ii) 36, and the Option will cease to be exercisable
  and will be cancelled for the balance of the Shares subject to this Option. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>Notwithstanding
  anything to the contrary contained herein, if the Optionee is on a leave of
  absence approved by the Corporation for medical, personal, educational and/or
  other permissible purposes pursuant to policies of the Corporation as in
  effect on the date hereof, for a consecutive twelve-month period, such
  Optionee will be deemed terminated for purposes of this Agreement on the
  twelve month anniversary of the commencement of such leave of absence and
  this Option shall cease to vest at the end of such twelve-month period and
  the Optionee will forfeit any unvested portion of the Option.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Cause, Dereliction of Duties or Harmful Acts; Breach of Share
  Ownership Guidelines; Loss of Equity Award Eligibility Status</U></B>.
  (i) If the Optionee shall cause the Corporation to suffer financial harm or
  damage to its reputation  (either
  before or after termination of employment) through (x) dishonesty, (y)
  violation of law in the course of the Optionee&#146;s employment or violation of
  the Corporation&#146;s Corporate Compliance Manual and compliance bulletins or
  other written policies, or (z) material deviation from the duties owed the
  Corporation by the Optionee, this Option, whether or not vested, shall expire
  and be cancelled to the extent it has not been exercised and be of no further
  force or effect.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>(ii) If the
  Optionee is subject to the Minimum Share Ownership Policy, any false
  attestation made under the Minimum Share Ownership Policy may result in the
  immediate cancellation of this Option and all Prior Options (to the extent
  not exercised), whether or not vested.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>(iii) If the
  Optionee&#146;s employment status in the Corporation is changed such that the
  Optionee will no longer be eligible to receive options pursuant to the Equity
  Award Eligibility Policy of the Corporation as in effect on the date hereof
  and attached as Annex A to this Agreement and such changed status continues
  for a consecutive 90 day period, this Option shall cease to vest at the end
  of such 90-day period (and the Optionee will then vest in and have the right
  to purchase a percentage of the Shares subject to this Option determined by
  dividing (i) the number of whole months from the most recent anniversary of
  the grant date (February 15) to the end of such 90-day period by (ii) 36),
  and the Optionee will immediately forfeit any unvested portion of the Option.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Death</U></B>. If the Optionee shall die while
  employed, this Option shall vest as to all Shares subject to the Option on
  the date of the Optionee&#146;s death.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(d)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Disability</U></B>. If the Optionee&#146;s employment
  shall terminate as a result of disability (as defined in Section 22(e)(3) of
  the Code), this Option shall vest as to all Shares subject to the Option on
  the date of the Optionee&#146;s termination of employment.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(e)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Change of Control</U></B>. This Option shall
  vest as to all shares immediately on the effective date of a change of
  control, provided the Optionee was actively employed by the Corporation on
  such date. For purposes of this Agreement the term &#147;change of control&#148; shall
  mean and shall be deemed to occur if and when:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(i)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Any person
  (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
  Exchange Act of 1934) is or becomes the beneficial owner, directly or
  indirectly, of securities of the Corporation representing 40% of more of the
  combined voting power of the Corporation&#146;s then outstanding securities; or</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 2 of 8</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
XXXXXX, XX, XXXX<BR>
Page 3. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(ii)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The
  individuals who, as of the Grant Date, constituted the Corporation&#146;s Board of
  Directors (the &#147;Incumbent Board&#148;) cease for any reason to constitute at least
  a majority of the Board; <I>provided, however</I>,
  that any individual (other than any individual whose initial assumption of
  office is in connection with an actual or threatened election contest (as
  such term is used in Rule 14a-11 of Regulation A promulgated under the
  Securities Exchange Act of 1934)), becoming a director subsequent to the
  Grant Date, whose election, or nomination for election by the stockholders of
  the Corporation, was approved by a vote of at least a majority of the directors
  then comprising the Incumbent Board, shall be considered as though such
  individual was a member of the Incumbent Board; or</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(iii)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Shareholders
  of the Corporation approve an agreement, providing for (a) a transaction in
  which the Corporation will cease to be an independent publicly owned
  corporation, or (b) the sale or other disposition of all or substantially all
  of the Corporation&#146;s assets, or (c) a plan of partial or complete liquidation
  of the Corporation.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(f)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Involuntary Termination with Severance</U></B>.
  If prior to the third anniversary of the date of this Agreement, the
  Optionee&#146;s employment is terminated by the Corporation and, as a result, the
  Optionee becomes eligible for severance benefits under one of the
  Corporation&#146;s Severance Plans, the Optionee will immediately vest in and have
  the right to purchase a percentage of the Shares subject to this Option
  determined by dividing (i) the number of whole months from the most recent
  anniversary of the grant date (February 15) to the date that is twelve months
  after the termination date of the Optionee&#146;s employment by (ii) 36, and the
  Option will cease to be exercisable and will be cancelled for the balance of
  the Shares subject to this Option.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(g)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Divestiture</U>.</B> If prior to the third
  anniversary of the date of this Agreement, the Optionee&#146;s employment is
  terminated by the Corporation due to a divestiture and the Optionee is
  employed by the purchasing entity, then the Optionee will immediately vest in
  a percentage of the Shares subject to this Option determined by dividing (i)
  the number of whole months from the most recent anniversary of the grant date
  (February 15) to the date that is twelve months after the termination date of
  the Optionee&#146;s employment by (ii) 36, and the Option will cease to be exercisable
  and will be cancelled for the balance of the Shares subject to this Option.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(h)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Transfers</U>.</B> If the Optionee shall be
  transferred from the Corporation to a subsidiary company (being a 50% owned
  entity within the meaning of Section 425(f) of the Code), or joint venture or
  similar entity existing as of the date of this Agreement in which the
  Corporation has at least a 33.33% interest (&#147;joint venture&#148;) or vice versa or
  from one subsidiary company (or joint venture) to another, the Optionee&#146;s employment
  shall not be deemed to have terminated. If, while the Optionee is employed by
  such a subsidiary company or joint venture, such subsidiary company or joint
  venture shall cease to be a subsidiary company or joint venture as described
  above and the Optionee is not thereupon transferred to and employed by the
  Corporation or another subsidiary company or joint venture as described
  above, then the Optionee&#146;s employment will be treated as a termination due to
  a divestiture under clause (g) above as of the date that the Optionee&#146;s
  employer ceases to be such a subsidiary company or joint venture of the
  Corporation.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(i)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Retirement</U>.</B> If the Optionee&#146;s employment
  shall terminate with the consent of the Corporation on or after the
  Optionee&#146;s attaining age 60, this Option shall vest and be exercisable as to
  all Shares subject to this Option on the effective termination date of the
  Optionee&#146;s employment.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>5.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Non-Transferability</U></B>.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>a)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>The rights
  under this Option Agreement shall not be transferable other than by will or
  the laws of descent and distribution and may be exercised during the lifetime
  of the Optionee only by the Optionee except to the extent of a disability (as
  defined in Section 22(e)(3) of the Code), in which case the Option may be
  exercised by the Optionee&#146;s legal representative.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>b)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>If the
  Optionee is subject to the Minimum Share Ownership Policy, the Optionee
  agrees that any shares issued hereunder or pursuant to any Prior Option shall
  be subject to the restrictions set forth in the Minimum Share Ownership
  Policy. If the Optionee is not in compliance with the Minimum Share Ownership
  Policy, the Corporation may terminate the employment of such Optionee and/or
  the Option shall immediately terminate and cease to be exercisable. The Optionee
  hereby acknowledges and agrees that the investment risk associated with the
  retention of any Shares, whether pursuant to the Minimum Share Ownership
  Policy or otherwise, is the sole responsibility of the Optionee and Optionee
  hereby holds the Corporation harmless against any claim of loss related to
  the retention of the Shares.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>6.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Exercise</U>.</B> The purchase price of Shares
  purchased hereunder shall be paid in full with, or in a combination of, (a)
  cash or (b) shares of the Corporation&#146;s Common Stock that have been owned by
  the Optionee, and have been fully vested and freely transferable by the
  Optionee, for at least six months preceding the date of exercise of the
  Option, duly endorsed or accompanied by stock powers executed in blank.
  However, the Corporation in its discretion may permit the Optionee (if the</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2>Page
3 of 8</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
XXXXXX, XX, XXXX<BR>
Page 4. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2>Optionee
  owns shares that have been owned by the Optionee, and have been fully vested
  and fully transferable by the Optionee, for at least six months preceding
  the date of exercise) to &#147;attest&#148; to his ownership of the number of shares
  required to pay all or part of the purchase price (and not require delivery
  of the shares), in which case the Corporation will deliver to the Optionee
  the number of shares to which the Optionee is entitled, net of the &#147;attested&#148;
  shares. If payment is made in whole or in part with shares of the
  Corporation&#146;s Common Stock, the value of such Common Stock shall be the mean
  between its high and low prices on the day of purchase as reported by <I>The New York Times </I>following the close
  of business on the date of exercise. No &#147;reload&#148; or other option will be
  granted by reason of any such exercise.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>7.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Exercise After Termination of Employment, Death or Disability</U></B>.
  The provisions covering the exercise of this Option following termination of
  employment are as follows:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Termination in General</U>.</B> If the Optionee
  shall terminate his employment for any reason other than those described in
  Section 7(b) through (f), all of the vested percentage of the Option may be
  exercised for ninety (90) days following such termination (but not beyond the
  Expiration Date) and the Option shall thereafter expire and cease to be
  exercisable;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Death</U>.</B> If the Optionee shall die while
  employed, the Option may be exercised through the Expiration Date in respect
  of all of the Shares subject to the Option. If the Optionee shall die after
  termination of employment but while the Option is still exercisable, it shall
  remain exercisable to the same extent through the first anniversary of the
  date of death but not beyond the Expiration Date;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Disability</U>.</B> If the Optionee&#146;s employment
  shall terminate as a result of disability (as defined in Section 22(e)(3) of
  the Code), the Option shall remain exercisable through the Expiration Date; </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(d)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Involuntary Termination with Severance</U></B>.
  If the Optionee&#146;s employment is terminated by the Corporation and, as a
  result, the Optionee becomes eligible for severance benefits under the
  Corporation&#146;s Severance Plans, then to the extent this Option is vested and
  exercisable (and becomes vested and exercisable under Section 4(f)), it may
  be exercised through the first anniversary of the date of termination (but
  not beyond the Expiration Date) and shall thereafter expire. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(e)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Divestiture</U></B>. If prior to the third
  anniversary of the date of this Agreement, the Optionee&#146;s employment is
  terminated by the Corporation due to a divestiture and the Optionee is
  employed by the purchasing entity, then to the extent this Option is vested
  and exercisable (and becomes vested and exercisable under Section 4(g)), it
  may be exercised through the first anniversary of the date of termination
  (but not beyond the Expiration Date) and shall thereafter expire. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(f)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Retirement</U></B>. If the Optionee&#146;s employment
  shall terminate as a result of Retirement as defined in Section 4(i) of this
  Option, all of the Option may be exercised as to all of the Shares subject to
  the Option through the Expiration Date.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
no event may any portion of the Option be exercised after the Expiration Date. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>8.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Consideration</U>.</B> In consideration for the
  Option granted by this Option Agreement, the Optionee hereby agrees to be
  bound by the Nondisclosure and Nonsolicitation provisions set forth in
  Sections 9 and 10 of this Option Agreement and the non-compete obligations
  set forth in the agreement between the Optionee and the Corporation or
  otherwise pursuant to any written policy of the Corporation. For purposes of
  Sections 9 and 10, the term &#147;Company&#148; shall mean the Corporation, its
  affiliates, divisions and subsidiaries, or any other entity in which the
  Corporation, directly or indirectly, controls or has an ownership or equity
  interest equal to or greater than 25.0% of the combined voting power of the
  entity&#146;s then outstanding securities, and their respective successors and
  assigns. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>9.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Nondisclosure of Confidential Information</U>.</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>For
  purposes of this Option Agreement, the term &#147;Confidential Information&#148; shall
  mean all ideas, inventions, data, databases, know-how, processes, methods,
  practices, specifications, raw materials and preparations, compositions,
  designs, devices, fabrication techniques, technical plans, algorithms,
  computer programs, protocols, client information, medical records,
  documentation, customer names and lists, supplier names and lists, price
  lists, supplier names and lists, apparatus, business plans, marketing plans,
  financial information, chemical and biological reagents, business methods and
  systems, literary and graphical and audiovisual works and sound recordings,
  mask works, computer programs, and the like, and potential trade names,
  trademarks, and logos, in whatever form or medium and which have commercial
  value, and whether or not designated or marked &#147;Confidential&#148; or the like,
  which the Optionee learns, acquires, conceives, creates, develops, or
  improves while employed by the Company and which (1) relate to the past,
  current, or prospective business of the Company or its subsidiaries and (a)
  which have not previously been publicly disclosed without restrictions on use
  by the Company, or (b) which Optionee knows or has</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 4 of 8 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
XXXXXX, XX, XXXX<BR>
Page 5. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>good reason
  to know are not generally publicly known; or (2) are received by the Company
  from a third party under an obligation of confidentiality to the third party.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Optionee
  recognizes and acknowledges that during his or her employment with the
  Company, the Optionee may be given access to or develop Confidential
  Information. The Optionee shall not use or disclose (directly or indirectly)
  any Confidential Information (whether or not developed by the Optionee) at
  any time or in any manner, except as authorized and required in the course of
  employment with the Company. The Optionee shall not disclose to the Company
  or use on behalf of the Company any Confidential Information obtained from
  any former employer or any other third party. All documents and things embodying
  Confidential Information, whether prepared by the Optionee or otherwise
  coming into the Optionee&#146;s possession, are the exclusive property of the
  Company, and must not be removed from any of its premises except as required
  in the course of employment with the Company. All such documents and things
  shall be promptly returned by the Optionee to the Company upon the request of
  the Company and on any termination of employment with the Company. The
  Optionee will not remove any Confidential Information such as documents or
  things or retain them in whole or part in any manner. The Optionee shall
  ensure that any export of Confidential Information undertaken by the Optionee
  or with his/her knowledge or approval shall be in compliance with all
  applicable laws.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Optionee
  shall promptly disclose to the Company all Confidential Information which the
  Optionee creates, conceives, develops, or improves (either alone or with
  others) referred to below as a &#147;Creation&#148; while in the employment of the
  Company, if the Creation either: (1) relates to any actual or demonstrably
  contemplated business, or research or development project, of the Company or
  its subsidiaries, or to any reasonable extension or variation thereof; or (2)
  results from any work performed by the Optionee for the Company; or (3) was
  created utilizing any of the Company&#146;s equipment, supplies, facilities, time,
  or Confidential Information. The Optionee shall keep complete, accurate, and
  authentic records on all Creations in the manner and form requested by the
  Company. The Optionee shall promptly disclose to the Company, in confidence,
  all patent, copyright, and trademark applications filed by the Optionee
  within one (1) year after termination of employment with the Company and
  which relate to any field in which the Optionee worked at the Company. The
  Optionee agrees that any such application for a patent, copyright
  registration, trademark registration, mask work registration, or similar
  right filed within one (1) year after termination of employment with the
  Company shall be presumed to relate to a Creation of the Optionee created
  during employment at the Company, unless the Optionee can prove otherwise.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(d)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Optionee
  hereby assigns to the Company all of the Optionee&#146;s rights in all of the above-described
  Creations. All such Creations that are subject to copyright or mask work
  protection are explicitly considered by the Optionee and the Company to be
  works made for hire to the extent permitted by law. To the extent that any
  such Creations are subject to copyright protection and are not works made for
  hire, any and all of the Optionee&#146;s copyright and mask work interest therein
  are hereby assigned by the Optionee to the Company, and are the exclusive
  property of the Company.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(e)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Optionee
  agrees to assist the Company in obtaining and/or maintaining patents,
  copyrights, trademarks, mask work rights, and similar rights to any Creations
  assigned by the Optionee to the Company, if and to the extent that the
  Company, in its sole discretion, requests such assistance, the Optionee shall
  sign all documents and do all other things deemed necessary by the Company,
  at the Company&#146;s expense, to obtain and/or maintain such rights, to provide
  confirmatory evidence of the Optionee&#146;s assignment of such Creations to the
  Company, to defend them from invalidation, and to protect them against
  infringement by other parties. The obligations of this paragraph are
  continuing and survive the termination of the Optionee&#146;s employment with the
  Company. The Optionee irrevocably appoints the Chief Executive Officer of the
  Company (with powers of delegation) to act as the Optionee&#146;s agent and
  attorney-in-fact to perform all acts as the Optionee&#146;s agent and to file,
  prosecute, and maintain applications and registrations for patents,
  trademarks, copyrights, mask work rights, and similar rights to any Creations
  assigned by the Optionee to the Company under this Option Agreement, such
  appointment being effective both during the Optionee&#146;s employment by Company,
  and thereafter if the Optionee (1) refuses to perform those acts, or (2) is
  unavailable, within the meaning of any applicable laws. The Optionee
  acknowledges that the grant of the foregoing power of attorney is coupled
  with an interest, is irrevocable, and shall survive his/her death or
  disability. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>10.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Nonsolicitation</U></B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>For a
  period of one (1) year following the termination of the Optionee&#146;s employment
  for any reason, the Optionee will not directly or indirectly solicit the
  Business of any customer of the Company of whom the Optionee acquired
  knowledge and/or had direct or indirect contact during the one (1) year
  period prior to the termination of the Optionee&#146;s employment relationship
  with the Company for any purpose other than to obtain, maintain and/or service
  the customer&#146;s Business for the Company. </FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 5 of 8 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
XXXXXX, XX, XXXX<BR>
Page 6. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>For a period
  of one (1) year following the termination of the Optionee&#146;s employment for
  any reason, the Optionee agrees not to, directly or indirectly, recruit or
  solicit any employees of the Company to work for the Optionee or any other
  person or entity.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>As used in
  this Option Agreement, the following terms shall have these respective
  definitions:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(i)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#147;Current
  Business&#148; shall mean and include: providing clinical testing information
  services for the diagnosis, monitoring, and treatment of disease; providing
  clinical laboratory management services; providing medical informatics
  services (i.e., the statistical analysis of medical information) and
  consulting services based on such analysis; providing data analysis, medical
  information services, and database management services for the health care
  industry; providing clinical testing information services in support of
  clinical trials, and clinical testing products for use in clinical trials;
  providing services of storage, retrieval, and communication of medical
  information via interactive computer networks; providing to managed care
  organizations, hospitals, employers, and other institutional healthcare
  providers access to a network of clinical diagnostic laboratories providing
  services of processing requests for diagnostic tests, performing tests,
  reporting test results, and paying claims to network laboratories; providing
  quality and utilization management; providing consolidated chronological
  reports in graphical and/or numerical form, representing the results of
  clinical diagnostic tests performed on individual patients and groups of
  patients over monitored periods of time, together with analysis of the
  results; and manufacturing and selling clinical diagnostic assay kits,
  apparatus, and reagents.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(ii)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#147;Business&#148;
  shall include the Current Business and any other product or service which the
  Company provided during the one (1) year period prior to the Optionee&#146;s
  termination of employment and during the one (1) year period following the
  Optionee&#146;s termination of employment, but the restriction on products and
  services introduced after the Optionee&#146;s termination of employment shall
  exclude products and services that were not planned, discussed, or
  contemplated prior to the Optionee&#146;s termination of employment.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(iii)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#147;Indirectly
  Solicit&#148; shall include, but is not be limited to, providing the Company&#146;s Confidential
  Information to another individual, or entity, allowing the use of the
  Optionee&#146;s name by any company (or any employees of any other company) other
  than the Company, in the solicitation of the Business of Company&#146;s customers.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>11.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Damages and Injunctive Relief</U></B>. The
  Optionee understands that if the terms of Section 9 and/or 10 of this Option
  Agreement are violated, the Corporation would be seriously and irreparably
  damaged, and agrees that the Corporation will be entitled to seek appropriate
  remedies for those damages, including, without limitation, injunctive relief
  to enforce any provision of this Agreement and all reasonable attorney&#146;s fees
  incurred by the Corporation to enforce the terms of these Sections.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>12.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Forfeiture</U>.</B> The Optionee will
  immediately forfeit any unexercised portion of the Option for any violations
  of (i) the terms of Sections 9 and/or 10 of this Agreement and/or (ii) the
  non-compete obligations set forth in the agreement between the Optionee and
  the Corporation or otherwise pursuant to any written policy of the
  Corporation, in addition to any equitable and legal rights the Corporation
  has or may have. The Optionee understands that the forfeiture of any
  unexercised portion of the Option is only one element of the damages
  potentially sustained by the Corporation for a violation of Sections 9 and/or
  10 of this Agreement or the non-compete obligation described above, and such
  forfeiture shall not constitute a release of any claim that the Company may
  have for damages, past, present, or future.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2 face=arial>13.</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2>(a) <B><U>Consent Requirement</U></B>. If the
  Corporation shall at any time determine that any consent (as hereinafter
  defined) is necessary or desirable as a condition of, or in connection with,
  the granting of this Option, the issuance or purchase of Shares or other
  rights hereunder, or the taking of any other action hereunder (a &#147;Plan
  Action&#148;), then no such Plan Action shall be taken, in whole or in part,
  unless and until such consent shall have been effected or obtained to the
  full satisfaction of the Corporation. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2>(b)&nbsp;<B><U>Definition of Consent</U></B>. The term
  &#147;consent&#148; as used herein with respect to any action referred to in Section
  13(a) means (i) any and all listings, registrations or qualifications in
  respect thereof upon any securities exchange or under any federal, state or
  local law, rule or regulation, (ii) any and all written agreements and
  representations by the Optionee with respect to the disposition of Shares, or
  with respect to any other matter, which the Corporation shall deem necessary
  or desirable to comply with the terms of any such listing, registration or
  qualification or to obtain an exemption from the requirement that any such
  listing, qualification or registration be made, (iii) any and all consents,
  clearances and approvals in respect of a Plan Action by any governmental or
  other regulatory bodies, and (iv) any and all consents or authorizations
  required to comply with, or required to be obtained under, applicable local
  law or otherwise required by the Corporation. Nothing herein shall require
  the Corporation to list, register or qualify the Shares of its common stock
  on any securities exchange. </FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 6 of 8 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option
Agreement<BR>
XXXXXX, XX, XXXX<BR>
Page 7. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>14.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Invalidity and Enforcement</U></B>. If any provision
  of this Agreement is deemed invalid or unenforceable, either in whole or in
  part, this Option Agreement will be deemed amended to delete or to modify, as
  set forth in this Section, the offending provision or provisions and to alter
  the bounds of this Agreement in order to render it valid and enforceable. The
  Corporation and the Optionee specifically request that any court having
  jurisdiction over any dispute relating to this Option Agreement modify, if
  possible, any offending provision so that such provision will be enforceable
  to the maximum extent permitted by State law.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>15.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Employee at Will</U></B>. The Optionee
  understands that his/her employment with the Corporation is at will and that
  it can be terminated at any time by the Optionee and/or the Corporation,
  subject to the rights of Optionee under the Employment Agreement dated as of
  August 8, 2005 between LabOne, Inc. and Optionee.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>16.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Enforcement by Successors and Assigns</U></B>.
  The Corporation and any of its successors or assignees may enforce the Corporation&#146;s
  rights under this Option Agreement. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>17.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Entire Agreement</U></B>. The Agreement
  supersedes any prior agreement or understandings between the Optionee and the
  Company with respect to nonsolicitation, nonuse, and non-disclosure and
  constitutes the entire agreement between the Corporation and the Optionee. No
  modification of this Option Agreement will have any force or effect unless
  such modification is in writing, signed by the Chief Executive Officer of the
  Corporation and the Optionee, and expressly indicates an intent to modify
  this Option Agreement.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>18.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Interpretation</U></B>. Any dispute,
  disagreement or matter of interpretation which shall arise under this
  Agreement shall be finally determined by the Corporation&#146;s Compensation
  Committee in its absolute discretion.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>19.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Notice of Exercise</U></B>. The Optionee may
  exercise the Option, in accordance with the procedures specified by the
  Corporation from time to time. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>20.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Rights Prior to Exercise</U></B>. The Optionee
  shall not have any rights as a stockholder with respect to any Shares subject
  to this Option prior to the date on which he/she is recorded as the holder of
  such Shares on the records of the Corporation.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>21.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Taxes</U></B>. The Corporation may make such
  provisions and take such steps as it may deem necessary or appropriate for
  the withholding of all federal, state, local and other taxes required by law
  to be withheld with respect to this Option.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>22.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Governing Law</U></B>. This Option Agreement and
  all rights hereunder shall be governed by, and construed and interpreted in
  accordance with, the laws of the state of New Jersey applicable to contracts
  made and to be performed entirely within such state. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>23.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Acknowledgements</U></B>. By execution of this
  Non-Qualified Stock Option Grant Agreement, the Optionee agrees that he/she
  has received and reviewed a copy of:<BR>
  (a) the Prospectus <B>(link to Prospectus:</B><BR>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_option/stock_option.htm)
  relating to the Corporation&#146;s Employee Equity Participation Program and;<BR>
  (b) the Quest Diagnostics Incorporated 2005 Annual Report <B>(link to 2005 Annual Report:<BR>
  </B>http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700
  to Shareholders and Form 10-K);<BR>
  (c) the Corporation&#146;s Policy for Purchasing and Selling Securities (&#147;the Policy&#148;)
  <B>(link to Trading Policy:</B>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
  Optionee further agrees to fully comply with the terms of the Policy;<BR>
  (d) the Corporation&#146;s Executive Share Ownership Guidelines <B>(link to
  guidelines<U>:</U></B><BR>
  <U>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm)</U>;
  and<BR>
  (e) the Corporation&#146;s Equity Award Eligibility Policy attached hereto as
  Annex A. </FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="25%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="72%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2><B>OPTIONEE:</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>By:&nbsp;&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM nowrap>
  <P><FONT SIZE=2><B><I>W. Thomas Grant, II</I></B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=RIGHT><FONT  SIZE=2>Page 7 of 8 </FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>Non-Qualified Stock Option Agreement<BR>
XXXXXX, XX, XXXX<BR>
Page 8. </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>Annex A <BR>
Quest Diagnostics Incorporated<BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<P><FONT SIZE=2><B><U>Option Eligibility</U></B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B>Unreduced
  Work Schedule </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2><B>One of
  the following salary grades: </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Corporate
  VP or Higher </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Salary
  Grade 53 or Higher </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Research
  &amp; Development - Grade RD6 or Higher </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Medical
  Director - Grade MD2 </B></FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>For employees whose salary is administered outside the
standard Quest structure (i.e., MedPlus, International, Clinical Trials
Europe), a Quest Diagnostics salary grade has been assigned consistent with the
above requirements. This grade is stored within the Company&#146;s Stock
Administration System. </B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT: Meeting the criteria for &#147;Option Eligibility&#148; <I>does not guarantee an award</I>. All grants
are subject to a separate approval process. </B></FONT></P>

<P ALIGN=RIGHT><FONT SIZE=2>Page 8 of 8 </FONT></P>

<HR COLOR=#000000 NOSHADE>



</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>9
<FILENAME>ex10-8.htm
<DESCRIPTION>EXHIBIT 10.8
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P STYLE=MARGIN-LEFT:60PX><FONT SIZE=2><IMG SRC="questcolorlogo.jpg" ALT="(QUEST DIAGNOSTICS LOGO)"></FONT></P>

<P><FONT SIZE=2>Exhibit 10.8</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>QUEST DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR>
(2006 &#150; 2008 Performance Period)</B></FONT></P>

<P><FONT SIZE=2>This Performance Share Award
Agreement (the &#147;Share Agreement&#148;) dated as of Grant Date (the &#147;Grant Date&#148;) is
by and between Quest Diagnostics Incorporated, 1290 Wall Street West,
Lyndhurst, NJ 07071 (the &#147;Company&#148;) and <I>________________________
</I>(the &#147;Employee&#148;). </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Conditions</U></B>. This Share Agreement is subject in all
  respects to the Company&#146;s Amended and Restated Employee Long-Term Incentive
  Plan (the &#147;Plan&#148;), the applicable terms of which are incorporated herein by
  reference. Terms not defined in this Share Agreement shall have the meaning
  ascribed in the Plan. The Employee acknowledges that he/she has read the
  terms of the Plan. This Share Agreement shall become void and the underlying
  grant will be revoked unless this document is executed by the Employee and
  returned by mail <B><I>to the Executive Compensation Department
  to the attention of Lisa Zajac (1290 Wall Street West &#150; 5<SUP>th</SUP> Floor,
  Lyndhurst, NJ 07071) </I></B>within
  thirty (30) days from the date of transmittal to the Employee. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Calculation
  of Potential Award</U></B>.
  The Employee shall be eligible to vest in shares of the Company&#146;s stock as
  provided in this section (shares that have so vested, &#147;Vested Shares&#148;). </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Employee&#146;s
  Target Performance Shares:</B> ____________________ </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance will be
  measured over the Performance Period using Baseline Year results and Final
  Year results for the Company as well as for the companies in the Comparator
  Peer Group (see Appendix A for these defined terms). After the Final Year of
  the Performance Period, the results of each company in the Comparator Peer
  Group will be arrayed from highest to lowest. The Company&#146;s results will then
  be compared to that of the Comparator Peer Group and, based on the Company&#146;s
  relative position in this array; Vested Shares will be awarded based upon the
  following formula:</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="40%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="45%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Performance
  Relative to Peers *</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>&#147;Earnings
  Multiple&#148;* multiplied by Target<BR>
  Performance Shares = Vested Shares</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Greater Than or Equal to
  85<SUP>th</SUP>%ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2 x Target Performance
  Shares = Vested Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Equal to 55<SUP>th</SUP>
  %ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1 x Target Performance
  Shares = Vested Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Less Than or Equal to 25<SUP>th</SUP>
  %ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>0 x Target Performance
  Shares = 0 Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B>*</B>Intermediate Performance and resulting
  Earnings Multiple will be interpolated. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>For example, if the
  Company&#146;s EPS Compound Annual Growth Rate (CAGR) from fiscal year 2005 to
  fiscal year 2007 is at the 70<SUP>th</SUP> %ile relative to the companies in
  the S&amp;P500 Healthcare Index, an Earnings Multiple of 1.5 will be applied
  to the Target Performance Shares to calculate the Vested Shares.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Adjustments
  to Target Performance Shares</U></B><B>:</B>
  The Target Performance Shares will only be adjusted on a pro rata basis in the
  event either of the following occur:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>the Employee&#146;s employment
  with the Company ends prior to the end of the Performance Period, except if
  for death, disability (as defined in Section 22(e)(3) of the Internal Revenue
  Code), or retirement (defined as termination after the Employee attains age
  sixty and with the consent of the Company). In that event, the Target
  Performance Shares will be pro-rated by dividing the number of full months
  served by the Employee during the Performance Period by the number of </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>1 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>2006 Incentive Stock
  Agreement</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>months in the Performance
  Period (&#147;Pro Ration Factor&#148;). At the end of the Performance Period, the
  Vested Shares will be calculated based on the product of the Target
  Performance Shares, the Pro Ration Factor and the Earnings Multiple; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the Employee&#146;s employment
  with the Company ends prior to the end of the Performance Period as a result
  of a separation which would entitle the Employee to severance benefits under
  the Company&#146;s Severance Policy or an employment agreement between such
  Employee and the Company. In that event, the Target Performance Shares will
  be pro-rated by adding the number of full months served by the Employee
  during the Performance Period plus twelve (but not to exceed the number of
  months remaining in the Performance Period) and then dividing that total by
  the number of months in the Performance Period (&#147;Severance Pro Ration
  Factor&#148;). At the end of the Performance Period, the Vested Shares will be
  calculated based on the product of the Target Performance Shares, the
  Severance Pro Ration Factor and the Earnings Multiple.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>If prior to the end of the
  Performance Period, the Employee&#146;s employment status in the Company is
  changed such that the Employee will no longer be eligible to receive
  performance shares pursuant to the Equity Award Eligibility Policy of the
  Company as in effect on the date hereof and attached as Appendix B to this
  Agreement and such changed status continues for a consecutive 90-day period,
  then, notwithstanding any other provision in this Agreement to the contrary,
  the Target Performance Shares will be pro-rated by dividing (x) the number of
  full months served by the Employee during the Performance Period through such
  90<SUP>th</SUP> day (not to exceed 36) by (y) the number of months in the
  Performance Period (&#147;Pro Ration Factor&#148;). At the end of the Performance
  Period, the Vested Shares will be calculated based on the product of the
  Target Performance Shares, the Pro Ration Factor and the Earnings Multiple. The
  balance of the Target Performance Shares will be forfeited.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Vesting
  and Exceptions to Vesting</U></B><B>:</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Subject to the exception
  enumerated at the end of this Section 4, the Employee will vest at the end of
  the Performance Period. Vested Shares, net of required tax withholding as
  described in Section 8 below, will be transferred into the Employee&#146;s account
  at the Company&#146;s dedicated broker by March 15 after the Performance Period
  ends.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>In the event a Change in
  Control of the Company occurs prior to the end of the Performance Period (or
  prior to the determination of the final approved Earnings Multiple), then,
  upon the consummation of such transaction, a number of Vested Shares will be
  delivered to the Employee equal to the greater of: (1) the Target Performance
  Shares (as pro rated, if applicable, pursuant to section 3 above) or (2) the
  number of Performance Shares that would be Vested Shares had the calculation
  been based on the Performance Period including the most recent fiscal year
  end results of the Company and the companies in the Comparator Peer Group.
  For purposes of this Share Agreement, Change of Control shall mean and shall
  be deemed to occur if and when:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Any person (as such term
  is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
  1934) is or becomes the beneficial owner, directly or indirectly, of
  securities of the Company representing 40% of more of the combined voting
  power of the Company&#146;s then outstanding securities; or</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>2 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>2006 Incentive Stock
  Agreement</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The individuals who, as of
  the grant date, constituted the Company&#146;s Board of Directors (the &#147;Incumbent
  Board&#148;) cease for any reason to constitute at least a majority of the Board; <I>provided, however</I>, that any individual
  (other than any individual whose initial assumption of office is in
  connection with an actual or threatened election contest (as such term is
  used in Rule 14a-11 of Regulation A promulgated under the Securities Exchange
  Act of 1934)), becoming a director subsequent to the Grant Date, whose
  election, or nomination for election by the stockholders of the Company, was
  approved by a vote of at least a majority of the directors then comprising
  the Incumbent Board, shall be considered as though such individual was a
  member of the Incumbent Board; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Shareholders of the
  Company approve an agreement, providing for (a) a transaction in which the
  Company will cease to be an independent publicly owned corporation, or (b)
  the sale or other disposition of all or substantially all of the Company&#146;s
  assets, or (c) a plan of partial or complete liquidation of the Company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Employee will not vest
  and will forfeit all Performance Shares if, either:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(x)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Employee was
  terminated for Cause where &#147;Cause&#148; shall be defined as the Employee
  committing any act that shall or could cause the Company to suffer financial
  harm or damage to its reputation (either before or after termination of
  employment) through (i) dishonesty, (ii) violation of law in the course of
  the Employee&#146;s employment or violation of the Company&#146;s Corporate Compliance
  Manual and compliance bulletins or other written policies, or (iii) material
  deviation from the duties owed the Company by the Employee; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(y)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Employee breached any
  restrictive covenants of his or hers that may be in place. The Employee
  understands and acknowledges that he or she is a key employee of the Company
  which was a reason, in part, for being provided with this Grant, and, as
  such, may have restrictive covenants in place. Forfeiture under this
  subsection (b) shall not constitute a release of any claim that the Company
  may have for damages, past, present, or future in respect of any such breach.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Executive
  Share Ownership Guidelines</U></B><B>:</B>
  If the Employee has been designated as a participant in the Company&#146;s
  Executive Share Ownership Guidelines, which have been established by the
  Compensation Committee of the Board of Directors, Vested Shares earned by the
  Employee (net of tax withholdings) pursuant to this Share Agreement would
  qualify under and are subject to such guidelines.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>6.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Transferability</U></B>. Except pursuant to the laws of descent
  and distribution, the Performance Shares described in this Share Agreement
  may not be sold, assigned, transferred, pledged or otherwise encumbered by or
  on behalf of or for the benefit of the Employee. Unless otherwise provided at
  the time of delivery of the Vested Shares to the Employee, the Vested Shares
  may be so sold, assigned, transferred, pledged or encumbered.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>7.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Interpretation</U></B>. Any dispute, disagreement or matter of
  interpretation which shall arise under this Share Agreement shall be finally
  determined by the Company&#146;s Compensation Committee in its absolute
  discretion.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Taxes</U></B>: Any Vested Shares under this program will
  be considered taxable income and subject to tax and tax withholdings as
  appropriate. The Company will reduce the number of Vested Shares to be
  delivered </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>3 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>2006 Incentive Stock
  Agreement</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>to the Employee by the
  amount of the taxes due (with the shares valued at the average of the high
  and low selling prices on the date of delivery of the Vested Shares).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>9.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Governing
  Law</U></B>. This Share
  Agreement and all rights hereunder shall be governed by, and construed and
  interpreted in accordance with, the laws of the state of New Jersey
  applicable to contracts made and to be performed entirely within such state.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Acknowledgements</U></B>. By execution of this Share Agreement, the
  Employee agrees that he/she has received and reviewed a copy of:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Prospectus</B> <B>(link to Prospectus:
</B> http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_Grant/stock_Grant.htm)relating to the Company&#146;s Amended and
  Restated Employee Long-Term Incentive Plan;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Quest Diagnostics Incorporated 2004 Annual Report</B>
  <B>(link to 2005 Annual Report</B>:
  http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700to Shareholders and Form 10-K);</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Company&#146;s Policy for Purchasing and Selling
  Securities</B> (&#147;the Policy&#148;) <B>(link
  to Trading Policy:</B> http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.)
  The Employee further agrees to fully comply with the terms of the Policy;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Company&#146;s Executive Share Ownership Guidelines (link
  to guidelines: </B><U>ht</U><U>tp://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm</U>);
  and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Company&#146;s Equity Award Eligibility Policy attached
  hereto as Appendix B.</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>EMPLOYEE: </B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By:</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="30%" NOSHADE COLOR=GRAY ALIGN=LEFT>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>(NAME)</B></FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>4 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>Appendix A<BR>
QUEST DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR>
2006 &#150; 2008 Performance Period </B></FONT></P>

<P><FONT SIZE=2><B><U>Baseline Year</U></B> &#150; Results for
Fiscal Year 2005 for the Company and each company in the Comparator Peer Group.
</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="89%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fiscal Year refers to the
  year during which the last full month occurs in each company&#146;s annual
  reporting period. For the Company and most companies in the Comparator Peer
  Group, the Fiscal Year 2005 ended in December. For certain other companies,
  the Fiscal Year ended during other months in 2005. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Final
  Year</U></B> &#150; Fiscal
  Year 2008 for the Company and each company in the Comparator Peer Group.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Performance
  Period </U></B>&#150; The
  Performance Period will run from January 1, 2006 through December 31, 2008,
  the Final Year for the Company (and corresponding Peer Group fiscal years).</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Performance
  Goal(s)</U></B><B> - </B>Compound
  Annual Growth Rate (CAGR) in Fully-Diluted Earnings Per Share for the Company
  and each company in the Comparator Peer Group from the Baseline Year to the
  Final Year (i.e., for Fiscal Years 2006, 2007 and 2008).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>For the 2005 Baseline Year
  only, the Pro Forma Fully-Diluted Earnings Per Share reported in the
  Footnotes to the Financial Statements for the Company and each company in the
  Comparator Peer Group will be used. The Pro Forma Fully-Diluted Earnings Per
  Share includes the compensation cost of stock option and other equity awards.
  For Fiscal Years beginning in 2006, the reported Fully-Diluted Earnings Per
  Share results will include the annual compensation cost of each company&#146;s
  equity awards.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>If any company in the Peer
  Group has not publicly reported its Fully Diluted Earnings Per Share by
  February 28, 2009, its CAGR will be computed as of its most recent quarterly
  report.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Comparator
  Peer Group</U></B> &#150; The
  Comparator Peer Group is comprised of the companies in the Standard &amp; Poors
  500 Healthcare Index as of December 31, 2008<I>.</I></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Excluded from the list of
  companies in the Comparator Peer Group will be those companies reporting a
  negative EPS in the Baseline Year since calculating CAGR will not be possible
  for these companies.</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock
Agreement </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Appendix B<BR>
Quest Diagnostics Incorporated<BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<P><FONT SIZE=2><B><U>Option Eligibility </U></B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B>Unreduced
  Work Schedule </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B>One of
  the following salary grades: </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Corporate
  VP or Higher </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Salary
  Grade 53 or Higher </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Research
  &amp; Development - Grade RD6 or Higher </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Medical
  Director - Grade MD2 </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>For employees whose salary is administered outside the
standard Quest structure (i.e., MedPlus, International, Clinical Trials
Europe), a Quest Diagnostics salary grade has been assigned consistent with the
above requirements. This grade is stored within the Company&#146;s Stock
Administration System. </B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT: Meeting the criteria for &#147;Option Eligibility&#148; <I>does not guarantee an award</I>. All grants
are subject to a separate approval process. </B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>2 of 6</FONT></P>

<HR COLOR=#000000 NOSHADE>

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`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>11
<FILENAME>ex10-9.htm
<DESCRIPTION>EXHIBIT 10.9
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<P STYLE="MARGIN-LEFT:10%"><FONT SIZE=2><IMG SRC="questcolorlogo.jpg" ALT="(QUEST DIAGNOSTICS LOGO)"></FONT></P>

<P><FONT SIZE=2>Exhibit 10.9</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>QUEST
DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT (CEO)<BR>
(2006 &#150; 2008 Performance Period)</B></FONT></P>

<P><FONT SIZE=2>This Performance Share Award Agreement (the &#147;Share
Agreement&#148;) dated as of <B><I>February
15, 2006</I></B> (the &#147;Grant Date&#148;) is by and between Quest Diagnostics
Incorporated, 1290 Wall Street West, Lyndhurst, NJ 07071 (the &#147;Company&#148;) and <B><I>Mohapatra, Surya N</I></B><I>.</I>(the
&#147;Employee&#148;).</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Conditions</U></B>.
  This Share Agreement is subject in all respects to the Company&#146;s Amended and
  Restated Employee Long-Term Incentive Plan (the &#147;Plan&#148;), the applicable terms
  of which are incorporated herein by reference. Terms not defined in this
  Share Agreement shall have the meaning ascribed in the Plan except for the
  terms &#147;Cause&#148;, &#147;Change in Control&#148;, Disability, and &#147;Good Reason&#148;, which
  terms shall have the meanings set forth in the Employment Agreement dated as
  of November 9, 2003 (the &#147;Employment Agreement&#148; between the Corporation and the Employee.
  The terms of the Employment Agreement shall control in the event of any conflict
  between them and the terms of this Share Agreement. The Employee
  acknowledges that he/she has read the terms of the Plan. This Share Agreement
  shall become void and the underlying grant will be revoked unless this
  document is executed by the Employee and returned by mail <B><I>to the Executive Compensation
  Department to the attention of Lisa Zajac (1290 Wall Street West &#150; 5<SUP>th</SUP>
  Floor, Lyndhurst, NJ 07071) </I></B>within thirty (30) days from the
  date of transmittal to the Employee.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Calculation
  of Potential Award</U></B>. The Employee shall be eligible to
  vest in shares of the Company&#146;s stock as provided in this section (shares
  that have so vested, &#147;Vested Shares&#148;).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Employee&#146;s Target Performance
  Shares: <U>55,000</U></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance will be measured over the Performance
  Period using Baseline Year results and Final Year results for the Company as
  well as for the companies in the Comparator Peer Group (see Appendix A for
  these defined terms). After the Final Year of the Performance Period, the
  results of each company in the Comparator Peer Group will be arrayed from
  highest to lowest. The Company&#146;s results will then be compared to that of the
  Comparator Peer Group and, based on the Company&#146;s relative position in this
  array; Vested Shares will be awarded based upon the following formula:</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="95%" STYLE="MARGIN-LEFT:5%">
<TR style="font-size:1px">
<TD WIDTH="48%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="48%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=bottom>
<P><FONT SIZE=1><B>Performance Relative to Peers *</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=bottom>
<P><FONT SIZE=1><B>&#147;Earnings Multiple&#148;* multiplied by
  Target<BR>
  Performance Shares = Vested Shares</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Greater Than or Equal to 85<SUP>th</SUP>%ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2 x Target Performance Shares = Vested Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Equal to 55<SUP>th</SUP>%ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1 x Target Performance Shares = Vested Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Less Than or Equal to 25<SUP>th</SUP>%ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>0 x Target Performance Shares = 0 Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2><B>*</B>Intermediate
  Performance and resulting Earnings Multiple will be interpolated.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For example, if the Company&#146;s EPS Compound Annual
  Growth Rate (CAGR) from fiscal year 2005 to fiscal year 2007 is at the 70<SUP>th</SUP>&nbsp;%ile
  relative to the companies in the S&amp;P500 Healthcare Index, an Earnings
  Multiple of 1.5 will be applied to the Target Performance Shares to calculate
  the Vested Shares.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Adjustments to Target Performance
  Shares</U>:</B> The Target Performance Shares will only be
  adjusted on a pro rata basis in the event either of the following occur: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the Employee&#146;s employment with the Company ends
  prior to the end of the Performance Period by reason of involuntary
  termination (other than for Cause) or voluntary termination for Good Reason,
  the Target Performance Shares will be pro-rated by adding the number of full
  months </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>1 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>served by the Employee during the Performance Period plus 24 (but not
  to exceed the number of months remaining in the Performance Period) and then
  dividing that total by the number of months in the Performance Period (&#147;Pro
  Ration Factor&#148;); provided however, that there shall be no pro ration (so that
  the Pro Ration Factor is 1) if the Employee&#146;s termination of employment
  occurs within 90 days prior to a Change in Control. At the end of the Performance
  Period, the Vested Shares will be calculated based on the product of the
  Target Performance Shares, the Pro Ration Factor and the Earnings Multiple;
  or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the Employee&#146;s employment with the Company is
  terminated as a result of the non-renewal of the Employment Agreement, the
  Target Performance Shares will be pro-rated by adding the number of full
  months served by the Employee during the Performance Period plus 18 (but not
  to exceed the number of months remaining in the Performance Period) and then
  dividing that total by the number of months in the Performance Period (&#147;Non
  Renewal Pro Ration Factor&#148;). At the end of the Performance Period, the Vested
  Shares will be calculated based on the product of the Target Performance
  Shares, the Non Renewal Pro Ration Factor and the Earnings Multiple; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>If the Employee terminates his employment other than
  by reason of death or Disability or as contemplated by Section 3(a) or
  Section 3(b) prior to the end of the Performance Period, the Target Performance Shares will be pro-rated by dividing the
  number of full months served by the Employee during the Performance
  Period by the number of months in the Performance Period (&#147; Voluntary
  Termination Pro Ration Factor&#148;). At the end of the Performance Period, the
  Vested Shares will be calculated based on the product of the Target
  Performance Shares, the Voluntary Termination Pro Ration Factor and the
  Earnings Multiple.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Vesting and Exceptions to Vesting</U>:
  </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Subject to the exception enumerated at the end of
  this Section 4, the Employee will vest at the end of the Performance Period.
  Vested Shares, net of required tax withholding as described in Section 8
  below, will be transferred into the Employee&#146;s account at the Company&#146;s
  dedicated broker by March 15 after the Performance Period ends.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>In the event a Change in Control of the Company
  occurs prior to the end of the Performance Period (or prior to the
  determination of the final approved Earnings Multiple), then, upon the
  consummation of such transaction, a number of Vested Shares will be delivered
  to the Employee equal to the greater of: (1) the Target Performance Shares
  (as pro rated, if applicable, pursuant to section 3 above) or (2) the number
  of Performance Shares that would be Vested Shares had the calculation been
  based on the Performance Period including the most recent fiscal year end
  results of the Company and the companies in the Comparator Peer Group. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Employee will not vest and will forfeit all
  Performance Shares if, either:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(x)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Employee was terminated for Cause; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(y)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Employee breached any restrictive covenants of
  his or hers that may be in place, including those set forth in the Employment
  Agreement. The Employee understands and acknowledges that he or she is a key
  employee of the Company which was a reason, in part, for being provided with
  this Grant, and, as such, have restrictive covenants in place. Forfeiture
  under this subsection (b) shall not constitute a release of any claim that
  the Company may have for damages, past, present, or future in respect of any
  such breach.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>2 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Executive Share Ownership
  Guidelines:</U></B> If the Employee has been designated as a
  participant in the Company&#146;s Executive Share Ownership Guidelines, which
  haven been established by the Compensation Committee of the Board of
  Directors, Vested Shares earned by the Employee (net of tax withholdings)
  pursuant to this Share Agreement would qualify under and are subject to such
  guidelines.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>6.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Transferability</U></B>.
  Except pursuant to the laws of descent and distribution, the Performance
  Shares described in this Share Agreement may not be sold, assigned,
  transferred, pledged or otherwise encumbered by or on behalf of or for the
  benefit of the Employee. Unless otherwise provided at the time of delivery of
  the Vested Shares to the Employee, the Vested Shares may be so sold,
  assigned, transferred, pledged or encumbered.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>7.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Interpretation</U></B>.
  Any dispute, disagreement or matter of interpretation which shall arise under
  this Share Agreement shall be finally determined by the Company&#146;s
  Compensation Committee in its absolute discretion.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Taxes</U></B>: Any
  Vested Shares under this program will be considered taxable income and
  subject to tax and tax withholdings as appropriate. The Company will reduce
  the number of Vested Shares to be delivered to the Employee by the amount of
  the taxes due (with the shares valued at the average of the high and low
  selling prices on the date of delivery of the Vested Shares).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>9.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Governing
  Law</U></B>. This Share Agreement and all rights hereunder
  shall be governed by, and construed and interpreted in accordance with, the
  laws of the state of New Jersey applicable to contracts made and to be
  performed entirely within such state.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Acknowledgements</U></B>.
  By execution of this Share Agreement, the Employee agrees that he/she has
  received and reviewed a copy of: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Prospectus</B>
  <B>(link
  to Prospectus: </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_Grant/stock_Grant.htm)
  relating to the Company&#146;s Amended and Restated Employee Long-Term Incentive
  Plan;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Quest
  Diagnostics Incorporated 2004 Annual Report</B> <B>(link to 2005 Annual Report</B>: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700to
  Shareholders and Form 10-K);</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Company&#146;s
  Policy for Purchasing and Selling Securities</B> (&#147;the Policy&#148;) <B>(link to
  Trading Policy:</B>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
  Employee further agrees to fully comply with the terms of the Policy; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">the <B>Company&#146;s
Executive Share Ownership Guidelines (link to guidelines: </B><U>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm</U>). </FONT>
</P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>3 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>

<P><FONT SIZE=2><B>EMPLOYEE:</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By:</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="25%" NOSHADE COLOR=GRAY ALIGN=LEFT>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>Mohapatra, Surya
  N.</I></B></FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>4 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>Appendix
A<BR>
QUEST DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR>
2006 &#150; 2008 Performance Period</B></FONT></P>

<P><FONT SIZE=2><B><U>Baseline
Year</U></B> &#150; Results for Fiscal Year 2005 for the Company and
each company in the Comparator Peer Group. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fiscal Year refers to the year during which the last
  full month occurs in each company&#146;s annual reporting period. For the Company
  and most companies in the Comparator Peer Group, the Fiscal Year 2005 ended
  in December. For certain other companies, the Fiscal Year ended during other
  months in 2005.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Final Year</U></B> &#150;
  Fiscal Year 2008 for the Company and each company in the Comparator Peer
  Group.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Performance Period</U></B>
  &#150; The Performance Period will run from January 1, 2006 through December 31,
  2008, the Final Year for the Company (and corresponding Peer Group fiscal
  years).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Performance Goal(s)</U>
  - </B>Compound Annual Growth Rate (CAGR) in Fully-Diluted Earnings Per Share
  for the Company and each company in the Comparator Peer Group from the
  Baseline Year to the Final Year (i.e., for Fiscal Years 2006, 2007 and 2008).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>For the 2005 Baseline Year only, the Pro Forma
  Fully-Diluted Earnings Per Share reported in the Footnotes to the Financial
  Statements for the Company and each company in the Comparator Peer Group will
  be used. The Pro Forma Fully-Diluted Earnings Per Share includes the
  compensation cost of stock option and other equity awards. For Fiscal Years
  beginning in 2006, the reported Fully-Diluted Earnings Per Share results will
  include the annual compensation cost of each company&#146;s equity awards.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>If any company in the Peer Group has not publicly
  reported its Fully Diluted Earnings Per Share by February 28, 2009, its CAGR
  will be computed as of its most recent quarterly report.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Comparator Peer Group </U></B>&#150;
  The Comparator Peer Group is comprised of the companies in the Standard &amp;
  Poors 500 Healthcare Index as of December 31, 2008<I>.</I> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Excluded from the list of companies in the
  Comparator Peer Group will be those companies reporting a negative EPS in the
  Baseline Year since calculating CAGR will not be possible for these
  companies.</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR COLOR=#000000 NOSHADE>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>12
<FILENAME>ex10-10.htm
<DESCRIPTION>EXHIBIT 10.10
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>



<P><IMG SRC="questcolorlogo.jpg" ALT="(QUEST DIAGNOSTICS LOGO)"></P>

<P><FONT SIZE=2>Exhibit 10.10</font></p>
<P ALIGN=CENTER><FONT  SIZE=2><B>QUEST DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR></B><B>(2006 &#150; 2008 Performance Period)</B></FONT></P>

<P><FONT SIZE=2>This
Performance Share Award Agreement (the &#147;Share Agreement&#148;) dated as of <B>February 15, 2006</B> (the &#147;Grant Date&#148;) is by
and between Quest Diagnostics Incorporated, 1290 Wall Street West, Lyndhurst,
NJ 07071 (the &#147;Company&#148;) and <B><I>Hagemann, Robert</I></B>&nbsp;(the
&#147;Employee&#148;).</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>1.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Conditions</U></B>.
  This Share Agreement is subject in all respects to the Company&#146;s Amended and
  Restated Employee Long-Term Incentive Plan (the &#147;Plan&#148;), the applicable terms
  of which are incorporated herein by reference. Terms not defined in this
  Share Agreement shall have the meaning ascribed in the Plan. The Employee
  acknowledges that he/she has read the terms of the Plan. This Share Agreement
  shall become void and the underlying grant will be revoked unless this
  document is executed by the Employee and returned by mail <B><I>to the Executive Compensation
  Department to the attention of Lisa Zajac (1290 Wall Street West &#150; 5<SUP>th</SUP>
  Floor, Lyndhurst, NJ 07071) </I></B>within thirty (30) days from the
  date of transmittal to the Employee.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>2.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Calculation of Potential Award</U></B>.
  The Employee shall be eligible to vest in shares of the Company&#146;s stock as
  provided in this section (shares that have so vested, &#147;Vested Shares&#148;).</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Employee&#146;s Target Performance Shares:</B> <B><U>22,667</U></B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Performance
  will be measured over the Performance Period using Baseline Year results and
  Final Year results for the Company as well as for the companies in the
  Comparator Peer Group (see Appendix A for these defined terms). After the
  Final Year of the Performance Period, the results of each company in the
  Comparator Peer Group will be arrayed from highest to lowest. The Company&#146;s
  results will then be compared to that of the Comparator Peer Group and, based
  on the Company&#146;s relative position in this array; Vested Shares will be
  awarded based upon the following formula:</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="48%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="48%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1><B>Performance
  Relative to Peers *</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1><B>&#147;Earnings
  Multiple&#148;* multiplied by <BR>Target Performance Shares = Vested Shares</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Greater Than
  or Equal to 85<SUP>th</SUP>%ile</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>2 x Target
  Performance Shares = Vested Shares</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Equal to 55<SUP>th</SUP>%ile</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>1 x Target
  Performance Shares = Vested Shares</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Less Than or
  Equal to 25<SUP>th</SUP>%ile</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>0 x Target
  Performance Shares = 0 Shares</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
</TABLE>



<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="10%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>*</B>Intermediate Performance and resulting
  Earnings Multiple will be interpolated.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P style="margin-left:5%"><FONT SIZE=2>For example,
if the Company&#146;s EPS Compound Annual Growth Rate (CAGR) from fiscal year 2005
to fiscal year 2007 is at the 70<SUP>th</SUP> %ile relative to the companies in
the S&amp;P500 Healthcare Index, an Earnings Multiple of 1.5 will be applied to
the Target Performance Shares to calculate the Vested Shares.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>3.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Adjustments to Target Performance Shares</U>:</B>
  The Target Performance Shares will only be adjusted on a pro rata basis in
  the event either of the following occur:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the Employee&#146;s employment with the Company ends prior to the end of
  the Performance Period, except if for death, disability (as defined in
  Section 22(e)(3) of the Internal Revenue Code), or retirement (defined as
  termination after the Employee attains age sixty and with the consent of the
  Company). In that event, the Target Performance Shares will be pro-rated by
  dividing the number of full months served by the Employee during the
  Performance Period by the number of months in the Performance Period (&#147;Pro
  Ration Factor&#148;). At the end of the Performance Period, the Vested Shares will
  be calculated based on the product of the </FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>1of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<BR>

<P ><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>target Performance Shares, the Pro Ration Factor and the Earnings
  Multiple; or</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the Employee&#146;s employment with the Company ends prior to the end of
  the Performance Period as a result of a separation which would entitle the
  Employee to severance benefits under the Company&#146;s Severance Policy or an
  employment agreement between such Employee and the Company. In that event,
  the Target Performance Shares will be pro-rated by adding the number of full
  months served by the Employee during the Performance Period plus twelve (but
  not to exceed the number of months remaining in the Performance Period) and
  then dividing that total by the number of months in the Performance Period
  (&#147;Severance Pro Ration Factor&#148;). At the end of the Performance Period, the
  Vested Shares will be calculated based on the product of the Target
  Performance Shares, the Severance Pro Ration Factor and the Earnings
  Multiple.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>4.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Vesting and Exceptions to Vesting</U>:</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>Subject to
  the exception enumerated at the end of this Section 4, the Employee will vest
  at the end of the Performance Period. Vested Shares, net of required tax
  withholding as described in Section 8 below, will be transferred into the
  Employee&#146;s account at the Company&#146;s dedicated broker by March 15 after the
  Performance Period ends.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>In the event
  a Change in Control of the Company occurs prior to the end of the Performance
  Period (or prior to the determination of the final approved Earnings
  Multiple), then, upon the consummation of such transaction, a number of
  Vested Shares will be delivered to the Employee equal to the greater of: (1)
  the Target Performance Shares (as pro rated, if applicable, pursuant to
  section 3 above) or (2) the number of Performance Shares that would be Vested
  Shares had the calculation been based on the Performance Period including the
  most recent fiscal year end results of the Company and the companies in the
  Comparator Peer Group. For purposes of this Share Agreement, Change of
  Control shall mean and shall be deemed to occur if and when:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Any person
  (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
  Exchange Act of 1934) is or becomes the beneficial owner, directly or
  indirectly, of securities of the Company representing 40% of more of the
  combined voting power of the Company&#146;s then outstanding securities; or</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The
  individuals who, as of the grant date, constituted the Company&#146;s Board of
  Directors (the &#147;Incumbent Board&#148;) cease for any reason to constitute at least
  a majority of the Board; <I>provided, however</I>, that any individual
  (other than any individual whose initial assumption of office is in
  connection with an actual or threatened election contest (as such term is
  used in Rule 14a-11 of Regulation A promulgated under the Securities Exchange
  Act of 1934)), becoming a director subsequent to the Grant Date, whose
  election, or nomination for election by the stockholders of the Company, was
  approved by a vote of at least a majority of the directors then comprising
  the Incumbent Board, shall be considered as though such individual was a
  member of the Incumbent Board; or</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Shareholders
  of the Company approve an agreement, providing for (a) a transaction in which
  the Company will cease to be an independent publicly owned corporation, or
  (b) the sale or other disposition of all or substantially all of the
  Company&#146;s assets, or (c) a plan of partial or complete liquidation of the
  Company.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>2 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<BR>

<P ><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>The Employee
  will not vest and will forfeit all Performance Shares if, either:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(x)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Employee
  was terminated for Cause where &#147;Cause&#148; shall be defined as the Employee
  committing any act that shall or could cause the Company to suffer financial
  harm or damage to its reputation (either before or after termination of
  employment) through (i) dishonesty, (ii) violation of law in the course of
  the Employee&#146;s employment or violation of the Company&#146;s Corporate Compliance
  Manual and compliance bulletins or other written policies, or (iii) material
  deviation from the duties owed the Company by the Employee; or</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(y)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Employee
  breached any restrictive covenants of his or hers that may be in place. The
  Employee understands and acknowledges that he or she is a key employee of the
  Company which was a reason, in part, for being provided with this Grant, and,
  as such, may have restrictive covenants in place. Forfeiture under this
  subsection (b) shall not constitute a release of any claim that the Company
  may have for damages, past, present, or future in respect of any such breach.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>If prior to
  the end of the Performance Period, the Employee&#146;s employment status in the
  Company is changed such that the Employee will no longer be eligible to
  receive performance shares pursuant to the Equity Award Eligibility Policy of
  the Company as in effect on the date hereof and attached as Appendix B to
  this Agreement and such changed status continues for a consecutive 90-day
  period, then, notwithstanding any other provision in this Agreement to the
  contrary, the Target Performance Shares will be pro-rated by dividing (x) the
  number of full months served by the Employee during the Performance Period
  through such 90<SUP>th</SUP> day (not to exceed 36) by (y) the number of
  months in the Performance Period (&#147;Pro Ration Factor&#148;). At the end of the
  Performance Period, the Vested Shares will be calculated based on the product
  of the Target Performance Shares, the Pro Ration Factor and the Earnings
  Multiple. The balance of the Target Performance Shares will be forfeited.</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>5.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Executive Share Ownership Guidelines:</U></B> If
  the Employee has been designated as a participant in the Company&#146;s Executive
  Share Ownership Guidelines, which have been established by the Compensation
  Committee of the Board of Directors, Vested Shares earned by the Employee
  (net of tax withholdings) pursuant to this Share Agreement would qualify
  under and are subject to such guidelines.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>6.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Non-Transferability</U></B>.
  Except pursuant to the laws of descent and distribution, the Performance
  Shares described in this Share Agreement may not be sold, assigned,
  transferred, pledged or otherwise encumbered by or on behalf of or for the
  benefit of the Employee. Unless otherwise provided at the time of delivery of
  the Vested Shares to the Employee, the Vested Shares may be so sold,
  assigned, transferred, pledged or encumbered.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>7.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Interpretation</U></B>.
  Any dispute, disagreement or matter of interpretation which shall arise under
  this Share Agreement shall be finally determined by the Company&#146;s
  Compensation Committee in its absolute discretion.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>8.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Taxes</U></B>: Any Vested Shares under this
  program will be considered taxable income and subject to tax and tax
  withholdings as appropriate. The Company will reduce the number of Vested
  Shares to be delivered to the Employee by the amount of the taxes due (with
  the shares valued at the average of the high and low selling prices on the
  date of delivery of the Vested Shares).</FONT></P>
  </TD>
 </TR>


<TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>



 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>9.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Governing Law</U></B>.
  This Share Agreement and all rights hereunder shall be governed by, and
  construed and interpreted in accordance with, the laws of the state of New
  Jersey applicable to contracts made and to be performed entirely within such
  state.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT  SIZE=2>3 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<BR>

<P ><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>10.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Acknowledgements</U></B>.
  By execution of this Share Agreement, the Employee agrees that he/she has
  received and reviewed a copy of: </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Prospectus</B> <B>(link to Prospectus: </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_Grant/stock_Grant.htm)
  relating to the Company&#146;s Amended and Restated Employee
  Long-Term Incentive Plan;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Quest Diagnostics Incorporated 2004 Annual Report</B>
  <B>(link
  to 2005 Annual Report</B>: </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700to
  Shareholders and Form 10-K);</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Company&#146;s Policy for Purchasing and Selling
  Securities</B> (&#147;the Policy&#148;) <B>(link to Trading Policy:</B>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
  Employee further agrees to fully comply with the terms of the Policy;</FONT></P>
  </TD>
 </TR>


<TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>




 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(d)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE="2">the <B>Company&#146;s Executive Share Ownership Guidelines (link
to guidelines: </B><U>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm</U>);
and </FONT></P>
  </TD>
 </TR>


<TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>



 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(e)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Company&#146;s Equity Award Eligibility Policy attached
  hereto as Appendix B.</B></FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>EMPLOYEE:</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="21%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="73%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=2>By:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><I>Hagemann, Robert</I></B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT  SIZE=2>4 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>




<P ALIGN=CENTER><FONT  SIZE=2><B>Appendix A<BR>
QUEST DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR>
2006 &#150; 2008 Performance Period</B></FONT></P>

<P><FONT SIZE=2><B><U>Baseline Year</U></B> &#150;
Results for Fiscal Year 2005 for the Company and each company in the Comparator
Peer Group. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Fiscal Year
  refers to the year during which the last full month occurs in each company&#146;s
  annual reporting period. For the Company and most companies in the Comparator
  Peer Group, the Fiscal Year 2005 ended in December. For certain other
  companies, the Fiscal Year ended during other months in 2005.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B><U>Final Year</U></B> &#150;
Fiscal Year 2008 for the Company and each company in the Comparator Peer Group.</FONT></P>

<P><FONT SIZE=2><B><U>Performance Period</U></B>
&#150; The Performance Period will run from January 1, 2006 through December 31,
2008, the Final Year for the Company (and corresponding Peer Group fiscal
years).</FONT></P>

<P><FONT SIZE=2><B><U>Performance Goal(s)</U>
- </B>Compound Annual Growth Rate (CAGR) in Fully-Diluted Earnings Per Share
for the Company and each company in the Comparator Peer Group from the Baseline
Year to the Final Year (i.e., for Fiscal Years 2006, 2007 and 2008).</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>For the 2005
  Baseline Year only, the Pro Forma Fully-Diluted Earnings Per Share reported
  in the Footnotes to the Financial Statements for the Company and each company
  in the Comparator Peer Group will be used. The Pro Forma Fully-Diluted
  Earnings Per Share includes the compensation cost of stock option and other
  equity awards. For Fiscal Years beginning in 2006, the reported Fully-Diluted
  Earnings Per Share results will include the annual compensation cost of each
  company&#146;s equity awards.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>If any
  company in the Peer Group has not publicly reported its Fully Diluted
  Earnings Per Share by February 28, 2009, its CAGR will be computed as of its
  most recent quarterly report.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B><U>Comparator Peer Group </U></B>&#150;
The Comparator Peer Group is comprised of the companies in the Standard &amp;
Poors 500 Healthcare Index as of December 31, 2008<I>.</I> </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Excluded
  from the list of companies in the Comparator Peer Group will be those
  companies reporting a negative EPS in the Baseline Year since calculating
  CAGR will not be possible for these companies.</FONT></P>
  </TD>
 </TR>
</TABLE>
<BR>
<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive
Stock Agreement</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>Appendix B<BR>
Quest Diagnostics Incorporated<BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<P><FONT SIZE=2><B><U>Option Eligibility</U></B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="10%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B>Unreduced Work Schedule </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B>One of the following salary grades:</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P align=center><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Corporate VP or Higher</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P align=center><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Salary Grade 53 or Higher</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P align=center><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ><FONT SIZE=2><B>Research &amp; Development - Grade RD6 or Higher</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P align=center><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Medical Director - Grade MD2</B></FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>For employees whose salary is administered
outside the standard Quest structure (i.e., MedPlus, International, Clinical
Trials Europe), a Quest Diagnostics salary grade has been assigned consistent
with the above requirements. This grade is stored within the Company&#146;s Stock
Administration System. </B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT: Meeting the criteria for &#147;Option
Eligibility&#148; <I>does not guarantee an award</I>.
All grants are subject to a separate approval process.</B></FONT></P>

<HR COLOR=#000000 NOSHADE>



</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>13
<FILENAME>ex10-11.htm
<DESCRIPTION>EXHIBIT 10.11
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>



<P style=margin-left:5%><FONT SIZE=2><IMG SRC="questcolorlogo.jpg" ALT="(QUEST DIAGNOSTICS LOGO)"></FONT></P>

<P><FONT SIZE=2>Exhibit 10.11</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>QUEST DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR>
(2006 &#150; 2008 Performance Period)</B> </FONT></P>

<P><FONT SIZE=2>This
Performance Share Award Agreement (the &#147;Share Agreement&#148;) dated as of <B>February 15, 2006</B>  (the &#147;Grant Date&#148;) is by
and between Quest Diagnostics Incorporated, 1290 Wall Street West, Lyndhurst,
NJ 07071 (the &#147;Company&#148;) and <B><I>Zewe, David M.</I></B> (the
&#147;Employee&#148;).</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>1.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Conditions</U></B>. This Share Agreement is subject in all respects to the Company&#146;s Amended and
  Restated Employee Long-Term Incentive Plan (the &#147;Plan&#148;), the applicable terms
  of which are incorporated herein by reference. Terms not defined in this
  Share Agreement shall have the meaning ascribed in the Plan. The Employee
  acknowledges that he/she has read the terms of the Plan. This Share Agreement
  shall become void and the underlying grant will be revoked unless this
  document is executed by the Employee and returned by mail <B><I>to the Executive Compensation
  Department to the attention of Lisa Zajac (1290 Wall Street West &#150; 5<SUP>th</SUP>
  Floor, Lyndhurst, NJ 07071) </I></B> within thirty (30) days from the
  date of transmittal to the Employee.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>2.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Calculation of Potential Award</U></B>. The Employee shall be eligible to vest in shares of the Company&#146;s stock as
  provided in this section (shares that have so vested, &#147;Vested Shares&#148;).</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Employee&#146;s Target Performance Shares:</B>  <B><U>12,667</U></B> </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Performance
  will be measured over the Performance Period using Baseline Year results and
  Final Year results for the Company as well as for the companies in the
  Comparator Peer Group (see Appendix A for these defined terms). After the
  Final Year of the Performance Period, the results of each company in the
  Comparator Peer Group will be arrayed from highest to lowest. The Company&#146;s
  results will then be compared to that of the Comparator Peer Group and, based
  on the Company&#146;s relative position in this array; Vested Shares will be
  awarded based upon the following formula:</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="34%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="55%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1><B>Performance
  Relative to Peers *</B> </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1><B>&#147;Earnings
  Multiple&#148;* multiplied by Target<BR>
  Performance Shares = Vested Shares</B> </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Greater Than
  or Equal to 85<SUP>th</SUP> %ile</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>2 x Target
  Performance Shares = Vested Shares</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Equal to 55<SUP>th </SUP>%ile</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>1 x Target
  Performance Shares = Vested Shares</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Less Than or
  Equal to 25<SUP>th</SUP> %ile</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>0 x Target
  Performance Shares = 0 Shares</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
</TABLE>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>*</B> Intermediate Performance and resulting
  Earnings Multiple will be interpolated.</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>For example,
  if the Company&#146;s EPS Compound Annual Growth Rate (CAGR) from fiscal year 2005
  to fiscal year 2007 is at the 70<SUP>th</SUP> %ile relative to the companies
  in the S&amp;P500 Healthcare Index, an Earnings Multiple of 1.5 will be
  applied to the Target Performance Shares to calculate the Vested Shares.</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>3.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Adjustments to Target Performance Shares</U>:</B>
  The Target Performance Shares will only be adjusted on a pro rata basis in
  the event either of the following occur: </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the
  Employee&#146;s employment with the Company ends prior to the end of the
  Performance Period, except if for death, disability (as defined in Section
  22(e)(3) of the Internal Revenue Code), or retirement (defined as termination
  after the Employee attains age sixty and with the consent of the Company). In
  that event, the Target Performance Shares will be pro-rated by dividing the
  number of full months served by the Employee during the Performance Period by
  the number of months in the Performance Period (&#147;Pro Ration Factor&#148;). At the
  end of the Performance Period, the Vested Shares will be calculated based on
  the product of the </FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>1 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>target
  Performance Shares, the Pro Ration Factor and the Earnings Multiple; or</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the
  Employee&#146;s employment with the Company ends prior to the end of the
  Performance Period as a result of a separation which would entitle the
  Employee to severance benefits under the Company&#146;s Severance Policy or an
  employment agreement between such Employee and the Company. In that event,
  the Target Performance Shares will be pro-rated by adding the number of full
  months served by the Employee during the Performance Period plus twelve (but
  not to exceed the number of months remaining in the Performance Period) and
  then dividing that total by the number of months in the Performance Period
  (&#147;Severance Pro Ration Factor&#148;). At the end of the Performance Period, the
  Vested Shares will be calculated based on the product of the Target
  Performance Shares, the Severance Pro Ration Factor and the Earnings
  Multiple.</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>4.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Vesting and Exceptions to Vesting</U>: </B> </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>Subject to
  the exception enumerated at the end of this Section 4, the Employee will vest
  at the end of the Performance Period. Vested Shares, net of required tax
  withholding as described in Section 8 below, will be transferred into the
  Employee&#146;s account at the Company&#146;s dedicated broker by March 15 after the
  Performance Period ends.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>In the event
  a Change in Control of the Company occurs prior to the end of the Performance
  Period (or prior to the determination of the final approved Earnings
  Multiple), then, upon the consummation of such transaction, a number of
  Vested Shares will be delivered to the Employee equal to the greater of: (1)
  the Target Performance Shares (as pro rated, if applicable, pursuant to
  section 3 above) or (2) the number of Performance Shares that would be Vested
  Shares had the calculation been based on the Performance Period including the
  most recent fiscal year end results of the Company and the companies in the
  Comparator Peer Group. For purposes of this Share Agreement, Change of
  Control shall mean and shall be deemed to occur if and when:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Any person
  (as such term is used in Sections 13(d) and 14(d)(2) of the Securities
  Exchange Act of 1934) is or becomes the beneficial owner, directly or
  indirectly, of securities of the Company representing 40% of more of the
  combined voting power of the Company&#146;s then outstanding securities; or</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The
  individuals who, as of the grant date, constituted the Company&#146;s Board of
  Directors (the &#147;Incumbent Board&#148;) cease for any reason to constitute at least
  a majority of the Board; <I>provided, however</I>, that any individual
  (other than any individual whose initial assumption of office is in
  connection with an actual or threatened election contest (as such term is
  used in Rule 14a-11 of Regulation A promulgated under the Securities Exchange
  Act of 1934)), becoming a director subsequent to the Grant Date, whose election,
  or nomination for election by the stockholders of the Company, was approved
  by a vote of at least a majority of the directors then comprising the
  Incumbent Board, shall be considered as though such individual was a member
  of the Incumbent Board; or</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Shareholders
  of the Company approve an agreement, providing for (a) a transaction in which
  the Company will cease to be an independent publicly owned corporation, or
  (b) the sale or other disposition of all or substantially all of the
  Company&#146;s assets, or (c) a plan of partial or complete liquidation of the
  Company.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>2 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>The Employee
  will not vest and will forfeit all Performance Shares if, either:</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(x)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Employee
  was terminated for Cause where &#147;Cause&#148; shall be defined as the Employee
  committing any act that shall or could cause the Company to suffer financial
  harm or damage to its reputation (either before or after termination of
  employment) through (i) dishonesty, (ii) violation of law in the course of
  the Employee&#146;s employment or violation of the Company&#146;s Corporate Compliance
  Manual and compliance bulletins or other written policies, or (iii) material
  deviation from the duties owed the Company by the Employee; or</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(y)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Employee
  breached any restrictive covenants of his or hers that may be in place. The
  Employee understands and acknowledges that he or she is a key employee of the
  Company which was a reason, in part, for being provided with this Grant, and,
  as such, may have restrictive covenants in place. Forfeiture under this
  subsection (b) shall not constitute a release of any claim that the Company
  may have for damages, past, present, or future in respect of any such breach.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>If prior to
  the end of the Performance Period, the Employee&#146;s employment status in the
  Company is changed such that the Employee will no longer be eligible to
  receive performance shares pursuant to the Equity Award Eligibility Policy of
  the Company as in effect on the date hereof and attached as Appendix B to this
  Agreement and such changed status continues for a consecutive 90-day period,
  then, notwithstanding any other provision in this Agreement to the contrary,
  the Target Performance Shares will be pro-rated by dividing (x) the number of
  full months served by the Employee during the Performance Period through such
  90<SUP>th</SUP> day (not to exceed 36) by (y) the number of months in the
  Performance Period (&#147;Pro Ration Factor&#148;). At the end of the Performance
  Period, the Vested Shares will be calculated based on the product of the
  Target Performance Shares, the Pro Ration Factor and the Earnings Multiple.
  The balance of the Target Performance Shares will be forfeited.</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>5.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Executive Share Ownership Guidelines:</U></B>  If
  the Employee has been designated as a participant in the Company&#146;s Executive
  Share Ownership Guidelines, which have been established by the Compensation
  Committee of the Board of Directors, Vested Shares earned by the Employee
  (net of tax withholdings) pursuant to this Share Agreement would qualify
  under and are subject to such guidelines.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>6.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Non-Transferability</U></B>. Except pursuant to the laws of descent and distribution, the Performance
  Shares described in this Share Agreement may not be sold, assigned,
  transferred, pledged or otherwise encumbered by or on behalf of or for the
  benefit of the Employee. Unless otherwise provided at the time of delivery of
  the Vested Shares to the Employee, the Vested Shares may be so sold,
  assigned, transferred, pledged or encumbered.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>7.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Interpretation</U></B>. Any dispute, disagreement or matter of interpretation which shall arise under
  this Share Agreement shall be finally determined by the Company&#146;s
  Compensation Committee in its absolute discretion.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>8.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Taxes</U></B>: Any Vested Shares under this
  program will be considered taxable income and subject to tax and tax
  withholdings as appropriate. The Company will reduce the number of Vested
  Shares to be delivered to the Employee by the amount of the taxes due (with
  the shares valued at the average of the high and low selling prices on the
  date of delivery of the Vested Shares).</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>9.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Governing Law</U></B>. This Share Agreement and all rights hereunder shall be governed by, and
  construed and interpreted in accordance with, the laws of the state of New
  Jersey applicable to contracts made and to be performed entirely within such
  state.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT  SIZE=2>3 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>10.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Acknowledgements</U></B>. By execution of this Share Agreement, the Employee agrees that he/she has
  received and reviewed a copy of: </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Prospectus</B>  <B>(link to Prospectus: </B> </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_Grant/stock_Grant.htm)
  relating to the Company&#146;s Amended and Restated Employee
  Long-Term Incentive Plan;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Quest Diagnostics Incorporated 2004 Annual Report</B>
  <B>(link
  to 2005 Annual Report</B> : </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700to
  Shareholders and Form 10-K);</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Company&#146;s Policy for Purchasing and Selling
  Securities</B>  (&#147;the Policy&#148;) <B>(link to Trading Policy:</B>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
  Employee further agrees to fully comply with the terms of the Policy;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(d)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Company&#146;s Executive Share Ownership Guidelines (link
  to guidelines: </B> http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm);
  and</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(e)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Company&#146;s Equity Award Eligibility Policy attached
  hereto as Appendix B.</B> </FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>EMPLOYEE:</B> </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="19%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="75%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>By:</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><I>Zewe, David</I></B> </FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT  SIZE=2>4 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT  SIZE=2><B>Appendix A<BR>
QUEST DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR>
2006 &#150; 2008 Performance Period</B> </FONT></P>

<P><FONT SIZE=2><B><U>Baseline Year</U></B>&#150; Results for Fiscal Year 2005 for the Company and each company in the Comparator
Peer Group. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Fiscal Year
  refers to the year during which the last full month occurs in each company&#146;s
  annual reporting period. For the Company and most companies in the Comparator
  Peer Group, the Fiscal Year 2005 ended in December. For certain other
  companies, the Fiscal Year ended during other months in 2005.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B><U>Final Year</U></B>&#150; Fiscal Year 2008 for the Company and each company in the Comparator Peer Group.</FONT></P>

<P><FONT SIZE=2><B><U>Performance Period</U></B>
&#150; The Performance Period will run from January 1, 2006 through December 31,
2008, the Final Year for the Company (and corresponding Peer Group fiscal
years).</FONT></P>

<P><FONT SIZE=2><B><U>Performance Goal(s)</U>
- </B> Compound Annual Growth Rate (CAGR) in Fully-Diluted Earnings Per Share
for the Company and each company in the Comparator Peer Group from the Baseline
Year to the Final Year (i.e., for Fiscal Years 2006, 2007 and 2008).</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>For the 2005
  Baseline Year only, the Pro Forma Fully-Diluted Earnings Per Share reported
  in the Footnotes to the Financial Statements for the Company and each company
  in the Comparator Peer Group will be used. The Pro Forma Fully-Diluted
  Earnings Per Share includes the compensation cost of stock option and other
  equity awards. For Fiscal Years beginning in 2006, the reported Fully-Diluted
  Earnings Per Share results will include the annual compensation cost of each
  company&#146;s equity awards.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>If any
  company in the Peer Group has not publicly reported its Fully Diluted
  Earnings Per Share by February 28, 2009, its CAGR will be computed as of its
  most recent quarterly report.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B><U>Comparator Peer Group </U></B> &#150;
The Comparator Peer Group is comprised of the companies in the Standard &amp;
Poors 500 Healthcare Index as of December 31, 2008<I>.</I> </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Excluded
  from the list of companies in the Comparator Peer Group will be those
  companies reporting a negative EPS in the Baseline Year since calculating
  CAGR will not be possible for these companies.</FONT></P>
  </TD>
 </TR>
</TABLE>
<BR>
<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive
Stock Agreement</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>Appendix B<BR>
Quest Diagnostics Incorporated<BR>
&#147;Equity Award Eligibility Policy&#148;</B> </FONT></P>

<P><FONT SIZE=2><B><U>Option Eligibility </U></B> </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="8%" VALIGN=TOP>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="86%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B>Unreduced Work Schedule </B> </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B>One of the following salary grades:</B> </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Corporate VP or Higher</B> </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Salary Grade 53 or Higher</B> </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Research &amp; Development - Grade RD6 or Higher</B> </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Medical Director - Grade MD2</B> </FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>For employees whose salary is administered
outside the standard Quest structure (i.e., MedPlus, International, Clinical
Trials Europe), a Quest Diagnostics salary grade has been assigned consistent
with the above requirements. This grade is stored within the Company&#146;s Stock
Administration System. </B> </FONT></P>

<P><FONT SIZE=2><B>IMPORTANT: Meeting the criteria for &#147;Option
Eligibility&#148; <I>does not guarantee an award</I>.
All grants are subject to a separate approval process.</B> </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>2 of 6</FONT></P>

<HR COLOR=#000000 NOSHADE>



</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>14
<FILENAME>ex10-12.htm
<DESCRIPTION>EXHIBIT 10.12
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="20%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="70%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><IMG SRC="questcolorlogo.jpg" ALT="(QUEST DIAGNOSTICS LOGO)"></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP NOWRAP>
<P><FONT SIZE=2>Exhibit 10.12</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2><B>QUEST
DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR>
(2006 &#150; 2008 Performance Period)</B></FONT></P>

<P><FONT SIZE=2>This Performance Share Award Agreement (the &#147;Share
Agreement&#148;) dated as of <B>February 15, 2006</B>
(the &#147;Grant Date&#148;) is by and between Quest Diagnostics Incorporated, 1290 Wall
Street West, Lyndhurst, NJ 07071 (the &#147;Company&#148;) and <B><I>Prevoznik, Michael</I></B> (the
&#147;Employee&#148;).</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Conditions</U></B>.
  This Share Agreement is subject in all respects to the Company&#146;s Amended and
  Restated Employee Long-Term Incentive Plan (the &#147;Plan&#148;), the applicable terms
  of which are incorporated herein by reference. Terms not defined in this
  Share Agreement shall have the meaning ascribed in the Plan. The Employee
  acknowledges that he/she has read the terms of the Plan. This Share Agreement
  shall become void and the underlying grant will be revoked unless this
  document is executed by the Employee and returned by mail <B><I>to the Executive Compensation
  Department to the attention of Lisa Zajac (1290 Wall Street West &#150; 5<SUP>th</SUP>
  Floor, Lyndhurst, NJ 07071) </I></B>within thirty (30) days from the
  date of transmittal to the Employee.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><U>Calculation
  of Potential Award</U></B>. The Employee shall be eligible to
  vest in shares of the Company&#146;s stock as provided in this section (shares
  that have so vested, &#147;Vested Shares&#148;).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Employee&#146;s Target Performance
  Shares:</B><B> <U>10,934</U></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Performance will be measured over the Performance
  Period using Baseline Year results and Final Year results for the Company as
  well as for the companies in the Comparator Peer Group (see Appendix A for
  these defined terms). After the Final Year of the Performance Period, the
  results of each company in the Comparator Peer Group will be arrayed from
  highest to lowest. The Company&#146;s results will then be compared to that of the
  Comparator Peer Group and, based on the Company&#146;s relative position in this
  array; Vested Shares will be awarded based upon the following formula:</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="35%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="57%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Performance
  Relative to Peers *</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>&#147;Earnings
  Multiple&#148;* multiplied by Target <BR>
  Performance Shares = Vested Shares</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE   COLOR=BLACK  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE   COLOR=BLACK  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE   COLOR=BLACK  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Greater Than or Equal to 85<SUP>th</SUP>%ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2 x Target Performance Shares = Vested Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Equal to 55<SUP>th</SUP>%ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1 x Target Performance Shares = Vested Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Less Than or Equal to 25<SUP>th</SUP>%ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>0 x Target Performance Shares = 0 Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>
<div><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*</B>Intermediate
Performance and resulting Earnings Multiple will be interpolated.</FONT></div>
<BR>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For example, if the Company&#146;s EPS Compound Annual
  Growth Rate (CAGR) from fiscal year 2005 to fiscal year 2007 is at the 70<SUP>th</SUP> %ile
  relative to the companies in the S&amp;P500 Healthcare Index, an Earnings
  Multiple of 1.5 will be applied to the Target Performance Shares to calculate
  the Vested Shares.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Adjustments to Target Performance
  Shares</U>:</B> The Target Performance Shares will only be
  adjusted on a pro rata basis in the event either of the following occur: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the Employee&#146;s employment with the Company ends
  prior to the end of the Performance Period, except if for death, disability
  (as defined in Section 22(e)(3) of the Internal Revenue Code), or retirement
  (defined as termination after the Employee attains age sixty and with the
  consent of the Company). In that event, the Target Performance Shares will be
  pro-rated by dividing the number of full months served by the Employee during
  the Performance Period by the number of months in the Performance Period
  (&#147;Pro Ration Factor&#148;). At the end of the Performance Period, the Vested
  Shares will be calculated based on the product of the </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>1 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>target Performance Shares, the Pro Ration Factor and
  the Earnings Multiple; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the Employee&#146;s employment with the Company ends
  prior to the end of the Performance Period as a result of a separation which
  would entitle the Employee to severance benefits under the Company&#146;s
  Severance Policy or an employment agreement between such Employee and the
  Company. In that event, the Target Performance Shares will be pro-rated by
  adding the number of full months served by the Employee during the
  Performance Period plus twelve (but not to exceed the number of months remaining
  in the Performance Period) and then dividing that total by the number of
  months in the Performance Period (&#147;Severance Pro Ration Factor&#148;). At the end
  of the Performance Period, the Vested Shares will be calculated based on the
  product of the Target Performance Shares, the Severance Pro Ration Factor and
  the Earnings Multiple.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE="2">4. </FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Vesting and Exceptions to Vesting</U>:
  </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Subject to the exception enumerated at the end of
  this Section 4, the Employee will vest at the end of the Performance Period.
  Vested Shares, net of required tax withholding as described in Section 8
  below, will be transferred into the Employee&#146;s account at the Company&#146;s
  dedicated broker by March 15 after the Performance Period ends.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>In the event a Change in Control of the Company
  occurs prior to the end of the Performance Period (or prior to the
  determination of the final approved Earnings Multiple), then, upon the
  consummation of such transaction, a number of Vested Shares will be delivered
  to the Employee equal to the greater of: (1) the Target Performance Shares
  (as pro rated, if applicable, pursuant to section 3 above) or (2) the number
  of Performance Shares that would be Vested Shares had the calculation been
  based on the Performance Period including the most recent fiscal year end
  results of the Company and the companies in the Comparator Peer Group. For
  purposes of this Share Agreement, Change of Control shall mean and shall be
  deemed to occur if and when:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Any person (as such term is used in Sections 13(d)
  and 14(d)(2) of the Securities Exchange Act of 1934) is or becomes the
  beneficial owner, directly or indirectly, of securities of the Company
  representing 40% of more of the combined voting power of the Company&#146;s then
  outstanding securities; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The individuals who, as of the grant date,
  constituted the Company&#146;s Board of Directors (the &#147;Incumbent Board&#148;) cease
  for any reason to constitute at least a majority of the Board; <I>provided,
  however</I>, that any individual (other than any individual whose
  initial assumption of office is in connection with an actual or threatened
  election contest (as such term is used in Rule 14a-11 of Regulation A
  promulgated under the Securities Exchange Act of 1934)), becoming a director
  subsequent to the Grant Date, whose election, or nomination for election by
  the stockholders of the Company, was approved by a vote of at least a
  majority of the directors then comprising the Incumbent Board, shall be
  considered as though such individual was a member of the Incumbent Board; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Shareholders of the Company approve an agreement,
  providing for (a) a transaction in which the Company will cease to be an
  independent publicly owned corporation, or (b) the sale or other disposition
  of all or substantially all of the Company&#146;s assets, or (c) a plan of partial
  or complete liquidation of the Company. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>2 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Employee will not vest and will forfeit all
  Performance Shares if, either:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(x)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Employee was terminated for Cause where &#147;Cause&#148;
  shall be defined as the Employee committing any act that shall or could cause
  the Company to suffer financial harm or damage to its reputation (either
  before or after termination of employment) through (i) dishonesty, (ii)
  violation of law in the course of the Employee&#146;s employment or violation of
  the Company&#146;s Corporate Compliance Manual and compliance bulletins or other
  written policies, or (iii) material deviation from the duties owed the
  Company by the Employee; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(y)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Employee breached any restrictive covenants of
  his or hers that may be in place. The Employee understands and acknowledges
  that he or she is a key employee of the Company which was a reason, in part,
  for being provided with this Grant, and, as such, may have restrictive
  covenants in place. Forfeiture under this subsection (b) shall not constitute
  a release of any claim that the Company may have for damages, past, present,
  or future in respect of any such breach.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>If prior to the end of the Performance Period, the
  Employee&#146;s employment status in the Company is changed such that the Employee
  will no longer be eligible to receive performance shares pursuant to the
  Equity Award Eligibility Policy of the Company as in effect on the date
  hereof and attached as Appendix B to this Agreement and such changed status
  continues for a consecutive 90-day period, then, notwithstanding any other
  provision in this Agreement to the contrary, the Target Performance Shares
  will be pro-rated by dividing (x) the number of full months served by the
  Employee during the Performance Period through such 90<SUP>th</SUP> day (not
  to exceed 36) by (y) the number of months in the Performance Period (&#147;Pro
  Ration Factor&#148;). At the end of the Performance Period, the Vested Shares will
  be calculated based on the product of the Target Performance Shares, the Pro
  Ration Factor and the Earnings Multiple. The balance of the Target
  Performance Shares will be forfeited. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Executive Share Ownership
  Guidelines</U>:</B> If the Employee has been designated as a
  participant in the Company&#146;s Executive Share Ownership Guidelines, which have
  been established by the Compensation Committee of the Board of Directors,
  Vested Shares earned by the Employee (net of tax withholdings) pursuant to
  this Share Agreement would qualify under and are subject to such guidelines.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>6.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Transferability</U></B>.
  Except pursuant to the laws of descent and distribution, the Performance
  Shares described in this Share Agreement may not be sold, assigned,
  transferred, pledged or otherwise encumbered by or on behalf of or for the
  benefit of the Employee. Unless otherwise provided at the time of delivery of
  the Vested Shares to the Employee, the Vested Shares may be so sold,
  assigned, transferred, pledged or encumbered.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>7.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Interpretation</U></B>.
  Any dispute, disagreement or matter of interpretation which shall arise under
  this Share Agreement shall be finally determined by the Company&#146;s
  Compensation Committee in its absolute discretion.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Taxes</U></B>: Any
  Vested Shares under this program will be considered taxable income and
  subject to tax and tax withholdings as appropriate. The Company will reduce
  the number of Vested Shares to be delivered to the Employee by the amount of
  the taxes due (with the shares valued at the average of the high and low
  selling prices on the date of delivery of the Vested Shares).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>9.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Governing
  Law</U></B>. This Share Agreement and all rights hereunder
  shall be governed by, and construed and interpreted in accordance with, the
  laws of the state of New Jersey applicable to contracts made and to be
  performed entirely within such state.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>3 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" COLSPAN="2" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Acknowledgements</U></B>.
  By execution of this Share Agreement, the Employee agrees that he/she has
  received and reviewed a copy of: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Prospectus</B>
  <B>(link
  to Prospectus: </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_Grant/stock_Grant.htm)
  relating to the Company&#146;s Amended and Restated Employee Long-Term Incentive
  Plan;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Quest
  Diagnostics Incorporated 2004 Annual Report</B><B> (link to 2005 Annual Report</B>: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700to
  Shareholders and Form 10-K); </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Company&#146;s
  Policy for Purchasing and Selling Securities</B> (&#147;the Policy&#148;) <B>(link to
  Trading Policy:</B>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
  Employee further agrees to fully comply with the terms of the Policy;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE="2">the <B>Company&#146;s
Executive Share Ownership Guidelines (link to guidelines: </B><U>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm</U>);
and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Company&#146;s
  Equity Award Eligibility Policy attached hereto as Appendix B.</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>EMPLOYEE:</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="45%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="50%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>By:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><B><I>Prevoznik,
  Michael</I></B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>4 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>Appendix
A<BR>
QUEST DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR>
2006 &#150; 2008 Performance Period</B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Baseline Year</U></B>
  &#150; Results for Fiscal Year 2005 for the Company and each company in the
  Comparator Peer Group. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fiscal Year refers to the year during which the last
  full month occurs in each company&#146;s annual reporting period. For the Company
  and most companies in the Comparator Peer Group, the Fiscal Year 2005 ended
  in December. For certain other companies, the Fiscal Year ended during other
  months in 2005.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Final Year</U> </B>&#150;
  Fiscal Year 2008 for the Company and each company in the Comparator Peer
  Group.</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Performance Period</U></B>
  &#150; The Performance Period will run from January 1, 2006 through December 31,
  2008, the Final Year for the Company (and corresponding Peer Group fiscal
  years).</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Performance Goal(s)</U>
  - </B>Compound Annual Growth Rate (CAGR) in Fully-Diluted Earnings Per Share
  for the Company and each company in the Comparator Peer Group from the
  Baseline Year to the Final Year (i.e., for Fiscal Years 2006, 2007 and 2008).</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>For the 2005 Baseline Year only, the Pro Forma
  Fully-Diluted Earnings Per Share reported in the Footnotes to the Financial
  Statements for the Company and each company in the Comparator Peer Group will
  be used. The Pro Forma Fully-Diluted Earnings Per Share includes the
  compensation cost of stock option and other equity awards. For Fiscal Years
  beginning in 2006, the reported Fully-Diluted Earnings Per Share results will
  include the annual compensation cost of each company&#146;s equity awards.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>If any company in the Peer Group has not publicly
  reported its Fully Diluted Earnings Per Share by February 28, 2009, its CAGR
  will be computed as of its most recent quarterly report.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Comparator Peer Group </U></B>&#150;
  The Comparator Peer Group is comprised of the companies in the Standard &amp;
  Poors 500 Healthcare Index as of December 31, 2008<I>.</I></FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Excluded from the list of companies in the
  Comparator Peer Group will be those companies reporting a negative EPS in the
  Baseline Year since calculating CAGR will not be possible for these
  companies.</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock Agreement</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Appendix
B<BR>
Quest Diagnostics Incorporated<BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<P><FONT SIZE=2><B><U>Option
Eligibility </U></B></FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Unreduced Work Schedule </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>One of the following salary grades:</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Corporate VP or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Salary Grade 53 or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Research &amp; Development - Grade
  RD6 or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P align=center><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Medical Director - Grade MD2</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>For
employees whose salary is administered outside the standard Quest structure
(i.e., MedPlus, International, Clinical Trials Europe), a Quest Diagnostics
salary grade has been assigned consistent with the above requirements. This
grade is stored within the Company&#146;s Stock Administration System. </B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT: Meeting the criteria for &#147;Option Eligibility&#148; <I>does
not guarantee an award</I>. All grants are subject to a separate
approval process.</B></FONT></P>

<P align=center><FONT SIZE=2>2 of 6</FONT></P>

<HR COLOR=#000000 NOSHADE>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>15
<FILENAME>ex10-13.htm
<DESCRIPTION>EXHIBIT 10.13
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>

<BR>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="20%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="80%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><IMG SRC="questcolorlogo.jpg" ALT="(QUEST DIAGNOSTICS LOGO)"></FONT></P>
  </TD>
 </TR>
</TABLE>





<P><FONT SIZE=2>Exhibit 10.13</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>QUEST DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR>
(2006 &#150; 2008 Performance Period)</B></FONT></P>

<P><FONT SIZE=2>This
Performance Share Award Agreement (the &#147;Share Agreement&#148;) dated as of <B>February 15, 2006</B> (the &#147;Grant Date&#148;)
is by
and between Quest Diagnostics Incorporated, 1290 Wall Street West, Lyndhurst,
NJ  07071 (the &#147;Company&#148;) and <B><I>Peters, Robert E.</I></B> (the &#147;Employee&#148;). </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" COLSPAN="2" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Conditions</U></B>. This Share Agreement is
  subject in all respects to the Company&#146;s Amended and Restated Employee
  Long-Term Incentive Plan (the &#147;Plan&#148;), the applicable terms of which are
  incorporated herein by reference.
  Terms not defined in this Share Agreement shall have the meaning
  ascribed in the Plan.  The Employee
  acknowledges that he/she has read the terms of the Plan.  This Share Agreement shall become void and
  the underlying grant will be revoked unless this document is executed by the
  Employee and returned by mail <B><I>to the Executive Compensation Department
  to the attention of Lisa Zajac (1290 Wall Street West &#150; 5<SUP>th</SUP> Floor,
  Lyndhurst, NJ  07071) </I></B> within thirty (30) days from the date of
  transmittal to the Employee. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Calculation of Potential Award</U></B>. The
  Employee shall be eligible to vest in shares of the Company&#146;s stock as
  provided in this section (shares that have so vested, &#147;Vested Shares&#148;). </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Employee&#146;s Target Performance Shares: <U>10,000</U></B>
  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Performance
  will be measured over the Performance Period using Baseline Year results and
  Final Year results for the Company as well as for the companies in the
  Comparator Peer Group (see Appendix A for these defined terms).  After the Final Year of the Performance
  Period, the results of each company in the Comparator Peer Group will be
  arrayed from highest to lowest.  The
  Company&#146;s results will then be compared to that of the Comparator Peer Group
  and, based on the Company&#146;s relative position in this array; Vested Shares
  will be awarded based upon the following formula: </FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="38%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="53%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1><B>Performance Relative to Peers *</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>&#147;Earnings Multiple&#148;* multiplied by Target<BR>
  Performance Shares = Vested Shares</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Greater Than or Equal to
85<SUP>th</SUP> %ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2 x Target
  Performance Shares&nbsp;=&nbsp;Vested Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Equal to 55<SUP>th</SUP> %ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1 x Target
  Performance Shares&nbsp;=&nbsp;Vested Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Less Than or Equal to 25<SUP>th</SUP> %ile</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>0 x Target
  Performance Shares&nbsp;=&nbsp;0 Shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<FONT SIZE=2><B>*</B> Intermediate
Performance and resulting Earnings Multiple will be interpolated. </FONT>
<BR><BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>For example,
  if the Company&#146;s EPS Compound Annual Growth Rate (CAGR) from fiscal year 2005
  to fiscal year 2007 is at the 70<SUP>th</SUP> %ile relative to the companies in
  the S&amp;P500 Healthcare Index, an Earnings Multiple of 1.5 will be applied
  to the Target Performance Shares to calculate the Vested Shares. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE="2"><B><U>Adjustments to Target Performance Shares</U>: </B>The Target Performance Shares will only be
adjusted on a pro rata basis in the event either of the following occur: </FONT> </P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
  Employee&#146;s employment with the Company ends prior to the end of the
  Performance Period, except if for death, disability (as defined in Section
  22(e)(3) of the Internal Revenue Code), or retirement (defined as termination
  after the Employee attains age sixty and with the consent of the
  Company).  In that event, the Target
  Performance Shares will be pro-rated by dividing the number of full months
  served by the Employee during the Performance Period by the number of months
  in the Performance Period (&#147;Pro Ration Factor&#148;).  At the end of the Performance Period, the Vested Shares will be
  calculated based on the product of the </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>1 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock
Agreement </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>target
  Performance Shares, the Pro Ration Factor and the Earnings Multiple; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the
  Employee&#146;s employment with the Company ends prior to the end of the
  Performance Period as a result of a separation which would entitle the
  Employee to severance benefits under the Company&#146;s Severance Policy or an
  employment agreement between such Employee and the Company.  In that event, the Target Performance
  Shares will be pro-rated by adding the number of full months served by the
  Employee during the Performance Period plus twelve (but not to exceed the
  number of months remaining in the Performance Period) and then dividing that
  total by the number of months in the Performance Period (&#147;Severance Pro
  Ration Factor&#148;).  At the end of the
  Performance Period, the Vested Shares will be calculated based on the product
  of the Target Performance Shares, the Severance Pro Ration Factor and the
  Earnings Multiple.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Vesting and Exceptions to Vesting</U>:</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Subject to
  the exception enumerated at the end of this Section 4, the Employee will vest
  at the end of the Performance Period.
  Vested Shares, net of required tax withholding as described in Section
  8 below, will be transferred into the Employee&#146;s account at the Company&#146;s
  dedicated broker by March 15 after the Performance Period ends. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>In the event
  a Change in Control of the Company occurs prior to the end of the Performance
  Period (or prior to the determination of the final approved Earnings
  Multiple), then, upon the consummation of such transaction, a number of
  Vested Shares will be delivered to the Employee equal to the greater of: (1)
  the Target Performance Shares (as pro rated, if applicable, pursuant to
  section 3 above) or (2) the number of Performance Shares that would be Vested
  Shares had the calculation been based on the Performance Period including the
  most recent fiscal year end results of the Company and the companies in the
  Comparator Peer Group.  For purposes
  of this Share Agreement, Change of Control shall mean and shall be deemed to occur
  if and when:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Any person (as
  such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange
  Act of 1934) is or becomes the beneficial owner, directly or indirectly, of
  securities of the Company representing 40% of more of the combined voting
  power of the Company&#146;s then outstanding securities; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The
  individuals who, as of the grant date, constituted the Company&#146;s Board of
  Directors (the &#147;Incumbent Board&#148;) cease for any reason to constitute at least
  a majority of the Board; <I>provided, however</I>,
  that any individual (other than any individual whose initial assumption of
  office is in connection with an actual or threatened election contest (as
  such term is used in Rule 14a-11 of Regulation A promulgated under the
  Securities Exchange Act of 1934)), becoming a director subsequent to the
  Grant Date, whose election, or nomination for election by the stockholders of
  the Company, was approved by a vote of at least a majority of the directors
  then comprising the Incumbent Board, shall be considered as though such
  individual was a member of the Incumbent Board; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Shareholders
  of the Company approve an agreement, providing for (a) a transaction in which
  the Company will cease to be an independent publicly owned corporation, or
  (b) the sale or other disposition of all or substantially all of the
  Company&#146;s assets, or (c) a plan of partial or complete liquidation of the
  Company. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>2 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock
Agreement </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Employee
  will not vest and will forfeit all Performance Shares if, either: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(x)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Employee
  was terminated for Cause where &#147;Cause&#148; shall be defined as the Employee
  committing any act that shall or could cause the Company to suffer financial
  harm or damage to its reputation (either before or after termination of
  employment) through (i) dishonesty, (ii) violation of law in the course of
  the Employee&#146;s employment or violation of the Company&#146;s Corporate Compliance
  Manual and compliance bulletins or other written policies, or (iii) material
  deviation from the duties owed the Company by the Employee; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(y)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Employee
  breached any restrictive covenants of his or hers that may be in place.  The Employee understands and acknowledges
  that he or she is a key employee of the Company which was a reason, in part,
  for being provided with this Grant, and, as such, may have restrictive
  covenants in place.  Forfeiture under
  this subsection (b) shall not constitute a release of any claim that the
  Company may have for damages, past, present, or future in respect of any such
  breach. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>If prior to
  the end of the Performance Period, the Employee&#146;s employment status in the
  Company is changed such that the Employee will no longer be eligible to
  receive performance shares pursuant to the Equity Award Eligibility Policy of
  the Company as in effect on the date hereof and attached as Appendix B to
  this Agreement and such changed status continues for a consecutive 90-day
  period, then, notwithstanding any other provision in this Agreement to the
  contrary, the Target Performance Shares will be pro-rated by dividing  (x) the number of full months served by
  the Employee during the Performance Period through such 90<SUP>th</SUP> day
  (not to exceed 36) by (y) the number of months in the Performance Period
  (&#147;Pro Ration Factor&#148;).  At the end of
  the Performance Period, the Vested Shares will be calculated based on the
  product of the Target Performance Shares, the Pro Ration Factor and the
  Earnings Multiple.  The balance of the
  Target Performance Shares will be forfeited.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Executive Share Ownership Guidelines</U>:</B>  If the Employee has been designated as a
  participant in the Company&#146;s Executive Share Ownership Guidelines, which have
  been established by the Compensation Committee of the Board of Directors,
  Vested Shares earned by the Employee (net of tax withholdings) pursuant to this
  Share Agreement would qualify under and are subject to such guidelines.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>6.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Non-Transferability</U></B>. Except pursuant to
  the laws of descent and distribution, the Performance Shares described in
  this Share Agreement may not be sold, assigned, transferred, pledged or
  otherwise encumbered by or on behalf of or for the benefit of the
  Employee.  Unless otherwise provided
  at the time of delivery of the Vested Shares to the Employee, the Vested
  Shares may be so sold, assigned, transferred, pledged or encumbered. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>7.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Interpretation</U></B>. Any dispute,
  disagreement or matter of interpretation which shall arise under this Share
  Agreement shall be finally determined by the Company&#146;s Compensation Committee
  in its absolute discretion. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Taxes</U></B>: Any Vested Shares under this program will be considered taxable
  income and subject to tax and tax withholdings as appropriate.  The Company will reduce the number of
  Vested Shares to be delivered to the Employee by the amount of the taxes due
  (with the shares valued at the average of the high and low selling prices on
  the date of delivery of the Vested Shares). </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>9.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Governing Law</U></B>. This Share Agreement and
  all rights hereunder shall be governed by, and construed and interpreted in
  accordance with, the laws of the state of New Jersey applicable to contracts
  made and to be performed entirely within such state. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>3 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock
Agreement </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="89%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><U>Acknowledgements</U></B>.  By execution of this Share Agreement, the
  Employee agrees that he/she has received and reviewed a copy of: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Prospectus</B> <B>(link to Prospectus:
</B>http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_Grant/stock_Grant.htm) relating to the Company&#146;s Amended and
  Restated Employee Long-Term Incentive Plan;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Quest Diagnostics Incorporated 2004 Annual Report</B>
  <B>(link to 2005 Annual Report</B>:
  http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700 to Shareholders and Form 10-K);
  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Company&#146;s Policy for Purchasing and Selling
  Securities</B> (&#147;the Policy&#148;) <B>(link to
  Trading Policy:</B>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
  Employee further agrees to fully comply with the terms of the Policy;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Company&#146;s Executive Share Ownership Guidelines (link
  to guidelines: </B>http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm);
  and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the <B>Company&#146;s Equity Award Eligibility Policy attached
  hereto as Appendix B.</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>EMPLOYEE:</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="30%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="64%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=bottom>
<P><FONT SIZE=2>By:&nbsp;</FONT></P>

</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>

</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>

</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B><I>Peters, Robert E.</I></B></FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>4 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>Appendix A<BR>
QUEST DIAGNOSTICS INCORPORATED<BR>
PERFORMANCE SHARE AWARD AGREEMENT<BR>
2006 &#150; 2008 Performance Period</B></FONT></P>

<P><FONT SIZE=2><B><U>Baseline Year</U></B> &#150;
Results for Fiscal Year 2005 for the Company and each company in the Comparator
Peer Group.   </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Fiscal Year
  refers to the year during which the last full month occurs in each company&#146;s
  annual reporting period.  For the
  Company and most companies in the Comparator Peer Group, the Fiscal Year 2005
  ended in December.  For certain other
  companies, the Fiscal Year ended during other months in 2005. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B><U>Final Year</U></B> &#150;
Fiscal Year 2008 for the Company and each company in the Comparator Peer Group.
</FONT></P>

<P><FONT SIZE=2><B><U>Performance Period</U></B>
&#150; The Performance Period will run from January 1, 2006 through December 31,
2008, the Final Year for the Company (and corresponding Peer Group fiscal
years). </FONT></P>

<P><FONT SIZE=2><B><U>Performance Goal(s)</U> -
</B>Compound Annual Growth Rate (CAGR) in Fully-Diluted Earnings Per Share for
the Company and each company in the Comparator Peer Group from the Baseline
Year to the Final Year (i.e., for Fiscal Years 2006, 2007 and 2008). </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>For the 2005
  Baseline Year only, the Pro Forma Fully-Diluted Earnings Per Share reported
  in the Footnotes to the Financial Statements for the Company and each company
  in the Comparator Peer Group will be used.
  The Pro Forma Fully-Diluted Earnings Per Share includes the
  compensation cost of stock option and other equity awards.  For Fiscal Years beginning in 2006, the
  reported Fully-Diluted Earnings Per Share results will include the annual
  compensation cost of each company&#146;s equity awards.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>If any
  company in the Peer Group has not publicly reported its Fully Diluted
  Earnings Per Share by February 28, 2009, its CAGR will be computed as of its
  most recent quarterly report. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B><U>Comparator Peer Group</U>
</B>&#150; The Comparator Peer Group is comprised of the companies in the Standard
&amp; Poors 500 Healthcare Index as of December 31, 2008<I>.</I>
</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Excluded
  from the list of companies in the Comparator Peer Group will be those
  companies reporting a negative EPS in the Baseline Year since calculating
  CAGR will not be possible for these companies. </FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock
Agreement</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Appendix B<BR>
Quest Diagnostics Incorporated<BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<P><FONT SIZE=2><B><U>Option Eligibility</U></B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Unreduced Work Schedule</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>One of the following salary grades:</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Corporate VP or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Salary Grade 53 or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Research &amp; Development - Grade RD6 or Higher</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Medical Director - Grade MD2</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>For employees whose salary is administered
outside the standard Quest structure (i.e., MedPlus, International, Clinical
Trials Europe), a Quest Diagnostics salary grade has been assigned consistent
with the above requirements. This grade is stored within the Company's Stock
Administration System. </B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT: Meeting the criteria for &#147;Option
Eligibility&#148; <I>does not guarantee an award</I>. All grants are subject to a separate approval process.</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>2 of 6</FONT></P>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>16
<FILENAME>ex10-14.htm
<DESCRIPTION>EXHIBIT 10.14
<TEXT>
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  <P>&nbsp;</P>
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 <TR>
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  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
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  <P><FONT SIZE=2><IMG SRC="questcolorlogo.jpg" ALT="(QUEST DIAGNOSTICS LOGO)"></FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>Exhibit 10.14</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>QUEST DIAGNOSTICS INCORPORATED <BR>
PERFORMANCE SHARE AWARD AGREEMENT <BR>
(2006 &#150; 2008 Performance Period)</B></FONT></P>

<P><FONT SIZE=2>This Performance Share Award
Agreement (the &#147;Share Agreement&#148;) dated as of <B>February
15, 2006</B> (the &#147;Grant Date&#148;) is by and between Quest Diagnostics
Incorporated, 1290 Wall Street West, Lyndhurst, NJ 07071 (the &#147;Company&#148;) and <B>W. Thomas Grant, II</B> (the
&#147;Employee&#148;). </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>1.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Conditions</U>.</B> This Share Agreement is subject in all respects to the Company&#146;s
  Amended and Restated Employee Long-Term Incentive Plan (the &#147;Plan&#148;), the
  applicable terms of which are incorporated herein by reference. Terms not
  defined in this Share Agreement shall have the meaning ascribed in the Plan.
  The Employee acknowledges that he/she has read the terms of the Plan. This Share
  Agreement shall become void and the underlying grant will be revoked unless
  this document is executed by the Employee and returned by mail <B><I>to the
  Executive Compensation Department to the attention of Lisa Zajac (1290 Wall
  Street West &#150; 5<SUP>th</SUP> Floor, Lyndhurst, NJ 07071) </I></B>within thirty (30) days from the date of
  transmittal to the Employee. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>2.</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE="2"><U><B>Calculation
of Potential Award</B></U>. The Employee
shall be eligible to vest in shares of the Company&#146;s stock as provided in
this section (shares that have so vested, &#147;Vested Shares&#148;). </FONT> </P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Employee&#146;s
  Target Performance Shares:</B> <B><U>9,334</U></B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Performance will be
  measured over the Performance Period using Baseline Year results and Final
  Year results for the Company as well as for the companies in the Comparator
  Peer Group (see Appendix A for these defined terms). After the Final Year of
  the Performance Period, the results of each company in the Comparator Peer
  Group will be arrayed from highest to lowest. The Company&#146;s results will then
  be compared to that of the Comparator Peer Group and, based on the Company&#146;s
  relative position in this array; Vested Shares will be awarded based upon the
  following formula: </FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="48%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="48%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=bottom>
  <P><FONT SIZE=1>&nbsp;</FONT></P>  </TD>
  <TD  VALIGN=bottom>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=bottom>
  <P><FONT SIZE=1><B>&#147;Earnings
  Multiple&#148;* multiplied by Target</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1><B>Performance
  Relative to Peers *</B></FONT></P>
  </TD>

  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1><B>Performance
  Shares = Vested Shares</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Greater Than or Equal to
  85<SUP>th</SUP>%ile</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>2 x Target Performance
  Shares = Vested Shares</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Equal to 55<SUP>th</SUP>%ile</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>1 x Target Performance
  Shares = Vested Shares</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Less Than or Equal to 25<SUP>th</SUP>%ile</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>0 x Target Performance
  Shares = 0 Shares</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=2 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
 </TR>
</TABLE>



<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="10%" VALIGN=TOP>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P ALIGN=RIGHT><FONT SIZE=2><B>*</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Intermediate Performance
  and resulting Earnings Multiple will be interpolated. </FONT></P>
  </TD>
 </TR>
</TABLE><BR>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
<TR>
  <TD  VALIGN=TOP>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>For example, if the
Company&#146;s EPS Compound Annual Growth Rate (CAGR) from fiscal year 2005 to
fiscal year 2007 is at the 70<SUP>th</SUP> %ile relative to the companies in
the S&amp;P500 Healthcare Index, an Earnings Multiple of 1.5 will be applied to
the Target Performance Shares to calculate the Vested Shares. </FONT></P>
  </TD>
 </TR>
</table><BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>3.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B>Adjustments
  to Target Performance Shares:</B> The Target Performance Shares will only be adjusted on a pro rata
  basis in the event either of the following occur: </FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
</tr>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the Employee&#146;s employment
  with the Company ends prior to the end of the Performance Period, except if
  for death, disability (as defined in Section 22(e)(3) of the Internal Revenue
  Code), or retirement (defined as termination after the Employee attains age
  sixty and with the consent of the Company). In that event, the Target
  Performance Shares will be pro-rated by dividing the number of full months
  served by the Employee during the Performance Period by the number of months
  in the Performance Period (&#147;Pro Ration Factor&#148;). At the end of the
  Performance Period, the Vested Shares will be calculated based on the product
  of the Target Performance Shares, the Pro Ration Factor and the Earnings
  Multiple; or</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT  SIZE=2>1 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock
Agreement </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the Employee&#146;s employment
  with the Company ends prior to the end of the Performance Period as a result
  of a separation which would entitle the Employee to severance benefits under
  the Company&#146;s Severance Policy or an employment agreement between such
  Employee and the Company. In that event, the Target Performance Shares will
  be pro-rated by adding the number of full months served by the Employee
  during the Performance Period plus twelve (but not to exceed the number of
  months remaining in the Performance Period) and then dividing that total by
  the number of months in the Performance Period (&#147;Severance Pro Ration
  Factor&#148;). At the end of the Performance Period, the Vested Shares will be
  calculated based on the product of the Target Performance Shares, the
  Severance Pro Ration Factor and the Earnings Multiple. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>4.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Vesting
  and Exceptions to Vesting</U>:</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>Subject to the exception
  enumerated at the end of this Section 4, the Employee will vest at the end of
  the Performance Period. Vested Shares, net of required tax withholding as
  described in Section 8 below, will be transferred into the Employee&#146;s account
  at the Company&#146;s dedicated broker by March 15 after the Performance Period
  ends. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>In the event a Change in
  Control of the Company occurs prior to the end of the Performance Period (or
  prior to the determination of the final approved Earnings Multiple), then,
  upon the consummation of such transaction, a number of Vested Shares will be
  delivered to the Employee equal to the greater of: (1) the Target Performance
  Shares (as pro rated, if applicable, pursuant to section 3 above) or (2) the
  number of Performance Shares that would be Vested Shares had the calculation
  been based on the Performance Period including the most recent fiscal year
  end results of the Company and the companies in the Comparator Peer Group.
  For purposes of this Share Agreement, Change of Control shall mean and shall
  be deemed to occur if and when: </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Any person (as such term
  is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of
  1934) is or becomes the beneficial owner, directly or indirectly, of
  securities of the Company representing 40% of more of the combined voting
  power of the Company&#146;s then outstanding securities; or </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The individuals who, as of
  the grant date, constituted the Company&#146;s Board of Directors (the &#147;Incumbent
  Board&#148;) cease for any reason to constitute at least a majority of the Board; <I>provided, however</I>, that any individual
  (other than any individual whose initial assumption of office is in
  connection with an actual or threatened election contest (as such term is
  used in Rule 14a-11 of Regulation A promulgated under the Securities Exchange
  Act of 1934)), becoming a director subsequent to the Grant Date, whose election,
  or nomination for election by the stockholders of the Company, was approved
  by a vote of at least a majority of the directors then comprising the
  Incumbent Board, shall be considered as though such individual was a member
  of the Incumbent Board; or </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Shareholders of the
  Company approve an agreement, providing for (a) a transaction in which the
  Company will cease to be an independent publicly owned corporation, or (b)
  the sale or other disposition of all or substantially all of the Company&#146;s assets,
  or (c) a plan of partial or complete liquidation of the Company.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT  SIZE=2>2 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock
Agreement </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>The Employee will not vest
  and will forfeit all Performance Shares if, either: </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(x)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Employee was
  terminated for Cause where &#147;Cause&#148; shall be defined as the Employee
  committing any act that shall or could cause the Company to suffer financial
  harm or damage to its reputation (either before or after termination of
  employment) through (i) dishonesty, (ii) violation of law in the course of
  the Employee&#146;s employment or violation of the Company&#146;s Corporate Compliance
  Manual and compliance bulletins or other written policies, or (iii) material
  deviation from the duties owed the Company by the Employee; or </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(y)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>The Employee breached any
  restrictive covenants of his or hers that may be in place. The Employee
  understands and acknowledges that he or she is a key employee of the Company
  which was a reason, in part, for being provided with this Grant, and, as
  such, may have restrictive covenants in place. Forfeiture under this
  subsection (b) shall not constitute a release of any claim that the Company
  may have for damages, past, present, or future in respect of any such breach.
  </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2>If prior to the end of the
  Performance Period, the Employee&#146;s employment status in the Company is
  changed such that the Employee will no longer be eligible to receive
  performance shares pursuant to the Equity Award Eligibility Policy of the
  Company as in effect on the date hereof and attached as Appendix B to this
  Agreement and such changed status continues for a consecutive 90-day period,
  then, notwithstanding any other provision in this Agreement to the contrary,
  the Target Performance Shares will be pro-rated by dividing (x) the number of
  full months served by the Employee during the Performance Period through such
  90<SUP>th</SUP> day (not to exceed 36) by (y) the number of months in the
  Performance Period (&#147;Pro Ration Factor&#148;). At the end of the Performance
  Period, the Vested Shares will be calculated based on the product of the
  Target Performance Shares, the Pro Ration Factor and the Earnings Multiple.
  The balance of the Target Performance Shares will be forfeited. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>5.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Executive
  Share Ownership Guidelines:</U></B> If the Employee has been designated as a participant in the Company&#146;s
  Executive Share Ownership Guidelines, which have been established by the
  Compensation Committee of the Board of Directors, Vested Shares earned by the
  Employee (net of tax withholdings) pursuant to this Share Agreement would
  qualify under and are subject to such guidelines. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>6.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE="2"><U><B>Non-Transferability</B></U>. Except pursuant to the laws of descent and distribution, the
Performance Shares described in this Share Agreement may not be sold,
assigned, transferred, pledged or otherwise encumbered by or on behalf of or
for the benefit of the Employee. Unless otherwise provided at the time of
delivery of the Vested Shares to the Employee, the Vested Shares may be so
sold, assigned, transferred, pledged or encumbered. </FONT> </P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>7.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE="2"><U><B>Interpretation</B></U>. Any dispute, disagreement or matter of interpretation which shall
arise under this Share Agreement shall be finally determined by the Company&#146;s
Compensation Committee in its absolute discretion. </FONT> </P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>8.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE="2"><U><B>Taxes</B></U>: Any Vested Shares under this program will be considered taxable
income and subject to tax and tax withholdings as appropriate. The Company
will reduce the number of Vested Shares to be delivered to the Employee by
the amount of the taxes due (with the shares valued at the average of the
high and low selling prices on the date of delivery of the Vested Shares). </FONT> </P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>9.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE="2"><U><B>Governing
Law</B></U>. This Share Agreement and all rights
hereunder shall be governed by, and construed and interpreted in accordance
with, the laws of the state of New Jersey applicable to contracts made and to
be performed entirely within such state. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>10.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE="2"><U><B>Employment
Agreement</B></U>. Employee agrees that the Company&#146;s
obligations under this Share Agreement, together with Company&#146;s obligations
under the Non-Qualified Stock Option Agreement dated as of the date hereof
between the Employee and the Company, satisfy in full the Company&#146;s
obligations under Sections 2.1(e) of the Employment Agreement dated as of
August 8, 2005 between Employee and LabOne, Inc. </FONT> </P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT  SIZE=2>3 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock
Agreement </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="89%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>11.</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE="2"><U><B>Acknowledgements</B></U>. By execution of this Share Agreement, the
Employee agrees that he/she has received and reviewed a copy of: </FONT> </P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(a)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Prospectus</B><B>(link to Prospectus: <BR>
  </B>http://questnet1.qdx.com/Business_Groups/Legal/policies/stock_Grant/stock_Grant.htm)relating to the Company&#146;s Amended and
  Restated Employee Long-Term Incentive Plan;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(b)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Quest Diagnostics Incorporated 2004 Annual Report</B>
  <B>(link to 2005 Annual Report</B>:<BR>
  http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=DGX&amp;script=700to Shareholders and Form 10-K); </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(c)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Company&#146;s Policy for Purchasing and Selling
  Securities</B> (&#147;the Policy&#148;) <B>(link
  to Trading Policy:</B><BR>
  http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm.) The
  Employee further agrees to fully comply with the terms of the Policy; </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(d)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE="2">the <B>Company&#146;s Executive Share Ownership Guidelines (link
to guidelines:<BR>
</B><U> http://questnet1.qdx.com/Business_Groups/Legal/policies/policies.htm</U>);
and </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(e)</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>the <B>Company&#146;s Equity Award Eligibility Policy attached
  hereto as Appendix B.</B></FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>EMPLOYEE: </B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="45%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="50%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>By:</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE   ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>W. Thomas
  Grant, II</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT  SIZE=2>4 of 4</FONT></P>

<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT  SIZE=2><B>Appendix A<BR>
QUEST DIAGNOSTICS INCORPORATED <BR>
PERFORMANCE SHARE AWARD AGREEMENT <BR>
2006 &#150; 2008 Performance Period</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="90%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Baseline
  Year</U></B>&#150; Results for Fiscal Year 2005 for the
  Company and each company in the Comparator Peer Group. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Fiscal Year refers to the
  year during which the last full month occurs in each company&#146;s annual
  reporting period. For the Company and most companies in the Comparator Peer
  Group, the Fiscal Year 2005 ended in December. For certain other companies,
  the Fiscal Year ended during other months in 2005. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Final
  Year</U></B>&#150; Fiscal Year 2008 for the Company and each
  company in the Comparator Peer Group. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Performance
  Period</U></B>&#150; The Performance Period will run from
  January 1, 2006 through December 31, 2008, the Final Year for the Company
  (and corresponding Peer Group fiscal years). </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Performance
  Goal(s) </U></B><B>- </B>Compound
  Annual Growth Rate (CAGR) in Fully-Diluted Earnings Per Share for the Company
  and each company in the Comparator Peer Group from the Baseline Year to the
  Final Year (i.e., for Fiscal Years 2006, 2007 and 2008). </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>For the 2005 Baseline Year
  only, the Pro Forma Fully-Diluted Earnings Per Share reported in the
  Footnotes to the Financial Statements for the Company and each company in the
  Comparator Peer Group will be used. The Pro Forma Fully-Diluted Earnings Per
  Share includes the compensation cost of stock option and other equity awards.
  For Fiscal Years beginning in 2006, the reported Fully-Diluted Earnings Per
  Share results will include the annual compensation cost of each company&#146;s
  equity awards. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>If any company in the Peer
  Group has not publicly reported its Fully Diluted Earnings Per Share by
  February 28, 2009, its CAGR will be computed as of its most recent quarterly
  report. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B><U>Comparator
  Peer Group </U></B>&#150;
  The Comparator Peer Group is comprised of the companies in the Standard &amp;
  Poors 500 Healthcare Index as of December 31, 2008<I>.</I></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Excluded from the list of
  companies in the Comparator Peer Group will be those companies reporting a
  negative EPS in the Baseline Year since calculating CAGR will not be possible
  for these companies. </FONT></P>
  </TD>
 </TR>
</TABLE>
<BR>
<HR COLOR=#000000 NOSHADE><P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>2006 Incentive Stock
Agreement </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>Appendix B <BR>
Quest Diagnostics Incorporated <BR>
&#147;Equity Award Eligibility Policy&#148;</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="85%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Option
Eligibility</U></B> </FONT> </P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="3" VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B>Unreduced
  Work Schedule </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <P><FONT SIZE=2><B>One of
  the following salary grades: </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Corporate
  VP or Higher </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Salary
  Grade 53 or Higher </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Research
  &amp; Development - Grade RD6 or Higher </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=CENTER><FONT SIZE=2>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Medical
  Director - Grade MD2 </B></FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>For employees whose salary is administered outside the
standard Quest structure (i.e., MedPlus, International, Clinical Trials
Europe), a Quest Diagnostics salary grade has been assigned consistent with the
above requirements. This grade is stored within the Company&#146;s Stock
Administration System. </B></FONT></P>

<P><FONT SIZE=2><B>IMPORTANT: Meeting the criteria for &#147;Option Eligibility&#148; <I>does not guarantee an award</I>. All grants
are subject to a separate approval process. </B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>2 of 6</FONT></P>

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