<SUBMISSION>
<ACCESSION-NUMBER>0000950117-06-002135
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20060503
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20060509
<DATE-OF-FILING-DATE-CHANGE>20060509
<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>06821237
</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>a41973.htm
<DESCRIPTION>QUEST DIAGNOSTICS INCORPORATED
<TEXT>
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<P ALIGN=CENTER><FONT  SIZE=4>SECURITIES AND EXCHANGE COMMISSION<BR>
</FONT><FONT SIZE=3>WASHINGTON, DC 20549</FONT></P>

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<P ALIGN=CENTER><FONT  SIZE=5>FORM 8-K</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=3><B>CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF<BR>
THE SECURITIES EXCHANGE ACT OF 1934</B></FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>Date of Report
(Date of Earliest Event Reported): May 3, 2006</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>Commission file
number 001-12215</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=6><B>Quest Diagnostics Incorporated</B></font><BR>
<FONT  SIZE=2>1290 Wall Street West<BR>
Lyndhurst, NJ 07071<BR>
(201) 393-5000</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>Delaware<BR>
</B>(State of Incorporation)</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2><B>16-1387862<BR>
</B>(I.R.S. Employer Identification Number)</FONT></P>

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<P><FONT SIZE=2><B>Item 1.01 Entry into a Material Definitive Agreement</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May 3, 2006, the Compensation Committee of the Board of Directors (the
&#147;Compensation Committee&#148;) of Quest Diagnostics Incorporated (the &#147;Company&#148;)
approved the Company&#146;s Executive Officer Severance Plan (the &#147;Plan&#148;). The Plan
covers the following executive officers of the Company:</FONT></P>

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  <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>W. Thomas Grant II</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Robert A. Hagemann</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Robert A. Peters</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>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=2>David M. Zewe. </FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>The
Plan provides the covered executive officers with the following benefits: </FONT></P>

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 <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>Severance is paid to an executive officer if his or her
  employment is terminated by the Company other than for cause prior to a
  change in control, in an amount equal to two times the executive officer&#146;s
  annual base salary at the annual rate in effect on the date of termination of
  employment and two times the annual award of variable compensation at the
  most recent target level. The executive officer and eligible dependents would
  also be entitled to participate in the Company&#146;s group medical and life
  insurance plans, to the extent permitted by the terms of the plans and
  applicable law, for a period of two years. In addition, the executive officer
  is entitled to receive outplacement assistance for one year and a lump sum
  payment equal to the amount of any matching contributions made by the Company
  to the Company&#146;s 401(k) plan and the Company&#146;s Supplemental Deferred
  Compensation Plan on behalf of the executive officer during the year
  preceding 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>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>If, however, an executive officer&#146;s employment is terminated
        by the Company, other than for cause, or by the executive officer for
        Good Reason, during the 24-month period following a change in control,
        or under certain conditions during the 6-month period prior to a change
        in control in anticipation of a change in control, the severance benefit
        will be equal to three times the executive officer&#146;s annual base
        salary at the annual rate in effect on the date of termination of employment
        and three times the annual award of variable compensation at the most
        recent target level. In addition, the executive officer would receive
        a prorated target bonus for the year of termination (determined by dividing
        the number of days worked in the year of termination by 365). The executive
        officer and eligible dependents would also be entitled to participate
        in the Company&#146;s group medical and life insurance plans, to the extent
        permitted by the terms of the plans and applicable law, for a period of
        three years. In addition, the executive officer is entitled to receive
        outplacement assistance for one year and a lump sum payment equal to the
        amount of any matching contributions made by the </FONT></P>
  </TD>
 </TR>
</TABLE>
<BR>
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 <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>Company to the Company&#146;s 401(k) plan and the
  Company&#146;s Supplemental Deferred Compensation Plan on behalf of the executive
  officer during the year preceding termination. The executive officer is also
  entitled to receive a tax gross-up payment for any parachute excise tax
  incurred unless a reduction by not more than 5% of the portion of the payment
  considered to be parachute payments would result in no excise tax being
  incurred.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&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>A &#145;Change in Control&#146; is defined in the Plan to
  include the following: (1) the acquisition by a person of 40% or more of the
  voting stock of the Company; (2) a merger, share exchange or similar form of
  corporate transaction involving the Company unless immediately following such
  transaction (A) more than 50% of the total voting power of the resulting
  corporation is represented by Company voting securities that were outstanding
  immediately prior to such transaction and (B) certain other conditions are
  met, (3) the membership of the Board of Directors changes such that the
  directors of the Company as of May 3, 2006 (or directors subsequently elected
  who are nominated by a majority of the incumbent directors unless any such
  subsequent directors are nominated as a result of an actual or threatened
  election context) cease to constitute a majority of the Board; or (4)
  approval by the Company&#146;s shareholders of a complete liquidation or
  dissolution or the sale of substantially all of the assets of the Company to
  an entity that is not an affiliate 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>&#149;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>&#147;Good Reason&#148; is defined in the Plan to include, (1)
        any material adverse changes in the duties, responsibilities or status
        of the executive officer, (2) a reduction in the rate of annual base salary
        or annual performance bonus or equity incentive compensation target opportunities
        (including any material and adverse change in the formula for those targets),
        (3) requiring the executive officer to be based at a location that is
        more than 50 miles from the executive officer&#146;s original location
        and which increases the executive officer&#146;s commute by more than
        50 miles, (4) the Company&#146;s failure to continue any significant compensation
        and benefit plans and (5) the Company&#146;s failure to obtain the assumption
        of the Company&#146;s obligations from any successor.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&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>&#147;Cause&#148; is defined in the Plan to mean the executive
  officer&#146;s (1) willful and continued failure to perform duties, (2) willfully
  engaging in illegal conduct or gross misconduct, (3) engaging in conduct or
  misconduct that materially harms the reputation or financial position of the
  Company, (4) obstruction or failure to cooperate with any investigations, (5)
  commission of a felony, and (6) being found liable in any SEC or other civil
  or criminal securities law action.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments
under the Plan are conditioned on the executive officer&#146;s executing a release.</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the covered executive officers listed above has been designated as a
&#147;Schedule A&#148; Participant under the Plan.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
foregoing description of the Plan does not purport to be complete and is
qualified in its entirety by reference to the Plan, a copy of which is filed as
Exhibit 10.1 hereto and is incorporated by reference herein. </FONT></P>

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<P><FONT SIZE=2><B>Item 9.01 Financial Statements and Exhibits</B></FONT></P>



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 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="7%" 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><I>(d) Exhibits</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><FONT SIZE=2>10.1</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Executive Officer
  Severance Plan </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>

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 <TR style="font-size:1px">
  <TD WIDTH="50%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="45%" 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>May 9, 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/ 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 COLOR="#969696" 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>Leo C. Farrenkopf, Jr.<BR>
  Assistant General Counsel and<BR>
  Assistant Corporate Secretary</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>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>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="87%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1><B>Exhibit No.</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1><B>Description of Exhibit</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="85%" NOSHADE COLOR=BLACK ALIGN=LEFT>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="20%" NOSHADE COLOR=BLACK ALIGN=LEFT>

  </TD>
 </TR>
<TR>
  <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=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Executive Officer Severance Plan </FONT></P>
  </TD>
 </TR>
</TABLE>
<BR>
<HR COLOR=#000000 NOSHADE>

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

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

<P ALIGN=CENTER><FONT SIZE=2><B>QUEST
DIAGNOSTICS INCORPORATED<BR>
EXECUTIVE OFFICER SEVERANCE PLAN</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
  <I><U>Purpose</U></I>. The purpose of the Quest Diagnostics Incorporated Executive
  Officer Severance Plan (together with the attached schedules, appendices and
  exhibits, the &#147;<B><U>Plan</U></B>&#148;) is to secure the continued services
  of the executive officers of the Company and provide these executives with certain
  termination benefits in the event of a Qualifying Termination (as defined in
  Section 2) and to ensure their continued dedication to their duties in the event
  of any threat or occurrence of a Change in Control of the Company (as defined
  in Section 2).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
<I><U>Definitions</U></I>.  As used in this Plan, the following terms
shall have the respective meanings set forth below:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
&#147;<B><U>Annual
Performance Bonus</U></B>&#148; means the annual cash bonus awarded under the
Company&#146;s applicable incentive plans, as in effect from time to time (as of the
date of adoption of this Plan the &#147;Bonus&#148; within the meaning of Section 5(a) of
the Company&#146;s Senior Management Incentive Plan, effective as of May
13, 2003 and under the Company&#146;s Management Incentive Plan such plans referred
to herein as the &#147;<B><U>Company Incentive Plan</U></B>&#148;).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
&#147;<B><U>Base
Salary</U></B>&#148; means the Participant&#146;s annual rate of base salary as in
effect on the Date of Termination, <I>provided, however, </I>that Base Salary for
the Termination Period shall mean the Participant&#146;s highest annual rate of base
salary during the twelve-month period immediately prior to the Participant&#146;s
Date of Termination.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
&#147;<B><U>Board</U></B>&#148; means the Board of
Directors of the Company and, after a Change in Control, the &#147;board of
directors&#148; of the surviving corporation.
References herein to the Board include any committee or person to whom
the Board has designated its authority.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
&#147;<B><U>Bonus Amount</U></B>&#148; means the
Participant&#146;s target Annual Performance Bonus for the fiscal year in which the
Participant&#146;s Date of Termination occurs, <I>provided, however</I>, that if the
Participant&#146;s Qualifying Termination is on account of Good Reason pursuant to a
reduction in a Participant&#146;s compensation or compensation opportunity under
Section 2(k)(ii), &#147;Bonus Amount&#148; shall be the Participant&#146;s target Annual
Performance Bonus for the prior fiscal year if higher.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
&#147;<B><U>Cause</U></B>&#148; means (i)&nbsp;the
willful and continued failure of the Participant to perform substantially his
duties with the Company (other than any such failure resulting from the
Participant&#146;s incapacity due to physical or mental illness or any such failure subsequent
to the Participant being delivered a notice of termination without </FONT></P>

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

<P><FONT SIZE=2>Cause by the Company or delivering a notice of termination for
  Good Reason to the Company) after a written demand for substantial performance
  is delivered to the Participant by or on behalf of the Board which specifically
  identifies the manner in which the Board believes that the Participant has not
  substantially performed his duties, (ii) the willful engaging by the Participant
  in illegal conduct or gross misconduct which is demonstrably and materially
  injurious to the Company or its affiliates, (iii) the engaging by the Participant
  in conduct or misconduct that materially harms the reputation or financial position
  of the Company, (iv) the Participant (x) obstructs or impedes, (y) endeavors
  to influence, obstruct or impede or (z) fails to materially cooperate with,
  an Investigation, (v) the commission of a felony by the Participant or (vi)
  the Participant is found liable in any Securities and Exchange Commission or
  other civil or criminal securities law action. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this paragraph (e), no act or failure to act by the Participant
shall be considered &#147;willful&#148; unless done or omitted to be done by the
Participant in bad faith and without reasonable belief that the Participant&#146;s
action or omission was in the best interests of the Company or its
affiliates.  Any act, or failure to act,
in accordance with authority duly given by the Board, based upon the advice of
counsel for the Company (including counsel employed by the Company) shall be
conclusively presumed to be done, or omitted to be done, by the Participant in
good faith and in the best interests of the Company.  </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
  Participant who is designated on Schedule A (and, after a Change in Control,
  a Participant who is designated on Schedule B) shall not be considered to have
  been terminated for Cause unless and until the Company has delivered to the
  Participant a copy of a resolution duly adopted by three-quarters (3/4) of the
  entire Board (excluding the Participant from both the numerator and denominator
  if the Participant is a Board member) at a meeting of the Board called and held
  for such purpose (after reasonable notice to the Participant and an opportunity
  for the Participant, together with counsel, to be heard before the Board), finding
  that in the good faith opinion of the Board an event set forth in clauses (i),
  (ii), (iii), (iv), (v), or (vi) has occurred and specifying the particulars
  thereof in detail.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anything
herein to the contrary notwithstanding, if, following a termination of the
Participant&#146;s employment by the Company for Cause based upon the conviction of
the Participant for a felony, such conviction is overturned in a final
determination on appeal, the Participant shall be entitled to the payments and
the economic equivalent of the benefits the Participant would have received if
his employment had been terminated by the Company without Cause. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
&#147;<B><U>Change in Control</U></B>&#148; means
the occurrence of any one of the following events:</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  any person is or becomes a &#147;beneficial owner&#148; (as defined in Rule 13d 3 under
  the Exchange Act), directly or indirectly, of securities of the </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>-2-</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="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>Company representing more than 40% of the total
  voting power of the Company&#146;s then outstanding securities generally eligible
  to vote for the election of directors (the &#147;<B><U>Company Voting Securities</U></B>&#148;);
  <I>provided</I>,
  <I>however</I>,
  that any of the following acquisitions shall not be deemed to be a Change in
  Control: (1) by the Company or any subsidiary or affiliate, (2) by any
  employee benefit plan (or related trust) sponsored or maintained by the
  Company or any subsidiary or affiliate, (3) by any underwriter temporarily
  holding securities pursuant to an offering of such securities, or (4)
  pursuant to a Non-Qualifying Transaction (as defined in paragraph (ii));</FONT></P>
</TD>
</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  the consummation of a merger, consolidation, statutory share exchange or
  similar form of corporate transaction involving the Company or any of its
  subsidiaries or affiliates that requires the approval of the Company&#146;s
  stockholders whether for such transaction or the issuance of securities in
  the transaction (a &#147;<B><U>Business Combination</U></B>&#148;), unless
  immediately following such Business Combination: </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="7%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" 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>(A) more than 50% of the total voting power of (x)
  the corporation resulting from such Business Combination (the &#147;<B><U>Surviving
  Corporation</U></B>&#148;), or (y) if applicable, the ultimate parent
  corporation that directly or indirectly has beneficial ownership of 95% of
  the voting securities eligible to elect directors of the Surviving
  Corporation (the &#147;<B><U>Parent Corporation</U></B>&#148;), is represented
  by Company Voting Securities that were outstanding immediately prior to such
  Business Combination (or, if applicable, is represented by shares into which
  such Company Voting Securities were converted pursuant to such Business
  Combination), and such voting power among the holders thereof is in
  substantially the same proportion as the voting power of such Company Voting
  Securities among the holders thereof immediately prior to the Business
  Combination,</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=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>(B) no person (other than any employee benefit plan
  (or any related trust) sponsored or maintained by the Surviving Corporation
  or the Parent Corporation), is or becomes the beneficial owner, directly or
  indirectly, of securities of the Parent Corporation (or, if there is no
  Parent Corporation, the Surviving Corporation) representing 40% of the total
  voting power of the securities then outstanding generally eligible to vote
  for the election of directors of the Parent Corporation (or the Surviving
  Corporation), 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=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(C) at least a majority of the members of the board
  of directors of the Parent Corporation (or, if there is no Parent
  Corporation, the</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>-3-</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="7%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" 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>Surviving Corporation) following the consummation of
  the Business Combination were Incumbent Directors at the time of the Board&#146;s
  approval of the execution of the initial agreement providing for such
  Business Combination;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=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>(Any Business Combination which satisfies all of the
  criteria specified in (A), (B) and (C) above shall be deemed to be a &#147;<B><U>Non-Qualifying
  Transaction</U></B>&#148;);</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
  individuals who, on the effective date of this Plan, constitute the Board
  (the &#147;<B><U>Incumbent Directors</U></B>&#148;) cease for any reason to constitute
  at least a majority of the Board, provided that any person becoming a
  director subsequent to the effective date of this Plan, whose election or
  nomination for election was approved by a vote of at least a majority of the
  Incumbent Directors then on the Board (either by a specific vote or by
  approval of the proxy statement of the Company in which such person is named
  as a nominee for director, without written objection to such nomination)
  shall be an Incumbent director; <I>provided</I>, <I>however</I>, that no
  individual initially elected or nominated as a director of the Company as a
  result of an actual or threatened election contest with respect to directors
  or as a result of any other actual or threatened solicitation of proxies or
  consents by or on behalf of any person other than the Board shall be deemed
  to be an Incumbent Director; 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>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
  the shareholders of the Company approve a plan of complete liquidation or
  dissolution of the Company or the consummation of a sale of all or
  substantially all of the Company&#146;s assets to an entity that is not an
  affiliate of the Company (other than pursuant to a Non-Qualifying
  Transaction).</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, a Change in Control of the Company shall not be deemed to occur
solely because any person acquires beneficial ownership of more than 40% of
Company Voting Securities as a result of the acquisition of Company Voting
Securities by the Company which reduces the number of Company Voting Securities
outstanding; provided, that if after such acquisition by the Company such
person becomes the beneficial owner of additional Company Voting Securities
that increases the percentage of outstanding Company Voting Securities
beneficially owned by such person, a Change in Control of the Company shall
then occur.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)
&#147;<B><U>Company</U></B>&#148; means Quest
Diagnostics Incorporated, a Delaware corporation.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)
&#147;<B><U>Date of Termination</U></B>&#148; means
(i) the effective date on which the Participant&#146;s employment by the Company
terminates as specified in a prior written notice by the Company or the
Participant, as the case may be, to the other, delivered </FONT></P>

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

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

<P><FONT SIZE=2>pursuant to Section 12 or (ii) if the Participant&#146;s
employment by the Company terminates by reason of death, the date of death of
the Participant.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
&#147;<B><U>Disability</U></B>&#148; shall have the
same meaning ascribed to that term in Section 22(e)(3) of the Internal Revenue
Code of 1986, as amended.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)
  &#147;<B><U>Equity Incentive Compensation</U></B>&#148; means all equity-based
  compensation (including stock options, stock appreciation rights, restricted
  stock and performance shares) awarded under the Company&#146;s incentive plan(s),
  as in effect from time to time (as of the date of adoption of this Plan the
  Amended and Restated Employee Long-Term Incentive Plan).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)
&#147;<B><U>Good Reason</U></B>&#148; means the
occurrence of one or more of the following circumstances, without the
Participant&#146;s express written consent, and which circumstance(s) are not
remedied by the Company within thirty (30) days of receipt of a written notice
from the Participant describing in reasonable detail the Good Reason event that
has occurred:  </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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  (A) any change in the duties, responsibilities or status (including reporting
  responsibilities) of the Participant that is inconsistent in any material and
  adverse respect with the Participant&#146;s position(s), duties, responsibilities
  or status with the Company immediately prior to such Change in Control
  (including any material and adverse diminution of such duties or
  responsibilities); <U>provided</U>, <U>however</U>, that Good Reason shall
  not be deemed to occur upon a change in duties, responsibilities (other than
  reporting responsibilities) or status that is solely and directly a result of
  the Company no longer being a publicly traded entity and does not involve any
  other event set forth in this Section 2(k) or (B) a material and adverse
  change in the Participant&#146;s titles or offices (including, if applicable,
  membership on the Board) with the Company as in effect immediately prior to
  such 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>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  a reduction by the Company in the Participant&#146;s rate of annual base salary or
  Annual Performance Bonus or Equity Incentive Compensation target
  opportunities (including any material and adverse change in the formula for
  such targets) as in effect immediately prior to such 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>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
  the Company&#146;s requiring the Participant to be based at any office or location
  more than fifty (50) miles from the office where the Participant is located
  at the time of the Change in Control and as a result causing the
  Participant&#146;s commute from his residence at the time of the Change in Control
  to the new location to increase by more than fifty (50) miles; </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>-5-</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="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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
  the failure of the Company to (A) continue in effect any significant employee
  benefit plan, compensation plan, welfare benefit plan or material fringe
  benefit plan in which the Participant is participating immediately prior to
  such Change in Control or the taking of any action by the Company which would
  adversely affect the Participant&#146;s participation in or materially reduce the
  Participant&#146;s benefits under any such plan, unless the Participant is
  permitted to participate in other plans providing the Participant with
  substantially equivalent benefits in the aggregate (at substantially
  equivalent or lower cost with respect to welfare benefit plans), or (B)
  provide the Participant with paid vacation in accordance with the most
  favorable vacation policies of the Company as in effect for the Participant immediately
  prior to such Change in Control (including the crediting of all service for
  which the Participant had been credited under such vacation policies prior to
  the Change in Control); 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>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)
  the failure of the Company to obtain the assumption of the Company&#146;s
  obligations hereunder from any successor as contemplated in Section 11(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="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="97%" 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>Notwithstanding the foregoing, an isolated,
  insubstantial and inadvertent action taken in good faith and which is
  remedied by the Company within thirty (30) days after receipt of notice
  thereof given by the Participant shall not constitute Good Reason.  The Participant&#146;s right to terminate
  employment for Good Reason shall not be affected by the Participant&#146;s
  incapacities due to mental or physical illness and the Participant&#146;s
  continued employment shall not constitute consent to, or a waiver of rights
  with respect to, any event or condition constituting Good Reason.  The Participant may terminate his
  employment for a &#147;Good Reason&#148; event that is not reasonably remedied by the
  Company <I>provided</I>
  that the Participant shall have delivered a notice of termination within
  ninety (90) days after delivery of the notice describing the Good Reason
  event giving rise to such termination.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)
&#147;<B><U>Investigation</U></B>&#148;
means an investigation authorized by the Board, a self-regulatory organization
empowered with self-regulatory responsibilities under federal or state laws or
a governmental department or agency.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)
&#147;<B><U>Participant</U></B>&#148; means an
executive officer of the Company selected, from time to time, by the Board for
participation in this Plan <U>and</U> who is designated on Schedule A or B at
the applicable time but only if such executive has completed at least one year
of continuous employment with the Company and its Subsidiaries at the
applicable time (unless such one year employment requirement has been waived in
writing by the Board). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)
&#147;<B><U>Potential
Change in Control</U></B>&#148; means the execution or entering into of any
agreement by the Company the consummation of which can be expected to be a
Change in Control.</FONT></P>

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

<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)
&#147;<B><U>Qualifying Termination</U></B>&#148;
means a termination of the Participant&#146;s employment (i) prior to a Change in
Control, by the Company other than for Cause and (ii) after a Change in
Control, by the Company other than for Cause or by the Participant for Good
Reason. Termination of the Participant&#146;s employment on account of death,
Disability or Retirement shall not be treated as a Qualifying Termination.
Notwithstanding the preceding sentence, the death of the Participant after
notice of termination for Good Reason or without Cause has been validly
provided shall be deemed to be a Qualifying Termination.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)
&#147;<B><U>Retirement</U></B>&#148; means the
Participant&#146;s voluntary termination of employment on or after he or she attains
age 60 with five (5) years of service.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)
&#147;<B><U>Subsidiary</U></B>&#148; means any
corporation or other entity in which the Company has a direct or indirect
ownership interest of 50% or more of the total combined voting power of the
then outstanding securities or interests of such corporation or other entity
entitled to vote generally in the election of directors (or members of any
similar governing body) or in which the Company has the right to receive 50% or
more of the distribution of profits or 50% of the assets or liquidation or
dissolution.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)
&#147;<B><U>Termination Period</U></B>&#148; means
the period of time beginning with a Change in Control and ending two (2) years
following such Change in Control. Notwithstanding anything in this Plan to the
contrary, if (i)&nbsp;the Participant&#146;s employment is terminated prior to a
Change in Control for reasons that would have constituted a Qualifying
Termination if they had occurred following a Change in Control; (ii)&nbsp;the
Participant reasonably demonstrates that such termination (or Good Reason event)
was at the request of a third party who had indicated an intention or taken
steps reasonably calculated to effect a Change in Control; and (iii)&nbsp;a
Change in Control involving such third party (or a party competing with such
third party to effectuate a Change in Control) does occur within six (6) months
from the date of such termination, then for purposes of this Plan, the date
immediately prior to the date of such termination of employment or event
constituting Good Reason shall be treated as a Change in Control. For purposes
of determining the <U>timing</U> of payments and benefits to the Participant
under Section&nbsp;5, the date of the actual Change in Control shall be treated
as the Participant&#146;s Date of Termination under Section&nbsp;2(h), and for
purposes of determining the <U>amount</U> of payments and benefits owed to the
Participant under Section&nbsp;5, the date the Participant&#146;s employment is
actually terminated shall be treated as the Participant&#146;s Date of Termination
under Section&nbsp;2(h).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.
<I><U>Eligibility</U></I>.
</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
The Board shall determine in its sole discretion which executives of the
Company shall be Participants in this Plan and whether a Participant shall be
designated on Schedule A or B. </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>-7-</FONT></P>

<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
The Board may, in its sole discretion, remove any executive from Schedule A and
add such executive to Schedule B but may not remove any executive from
participation in this Plan entirely; <I>provided, </I>that a Participant who is
designated on Schedule A as of immediately prior to a Change in Control may not
be removed from such Schedule without his or her prior written consent within
the two year period following a Change in Control. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
The Board may delegate its authority to determine which senior executives of
the Company shall be Participants in this Plan, to designate the Participants
on Schedule A or B and to remove a Participant from Schedule A to the
Compensation Committee (or any successor committee) of the Board. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <I><U>Payments Upon Termination of Employment Prior to a Change
in Control</U></I>. If the employment of the Participant is terminated
pursuant to a Qualifying Termination, then, subject to the Participant&#146;s
execution of a Separation Agreement and Release in the form attached to this
Plan as Exhibit&nbsp;A (the &#147;<B><U>Separation Agreement and Release</U></B>&#148;), the
Company shall provide to the Participant:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
Salary continuation equal to the Participant&#146;s Base Salary multiplied by either
(i) 2.00 for a Participant designated on Schedule A or (ii) 1.00 for a
Participant designated on Schedule B, payable in accordance with the Company&#146;s
practices for similarly situated executives;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
The Bonus Amount times (i) 2.00 for a Participant designated on Schedule A or
(ii) 1.00 for a Participant designated on Schedule B, payable at the same time
Annual Performance Bonuses are ordinarily paid to similarly situated
executives;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
For (i) 24 months for a Participant designated on Schedule A or (ii) 12 months
for a Participant designated on Schedule B, following the Date of Termination,
group medical and life insurance coverage to the Participant (and his eligible
dependents), under the terms prevailing at the time immediately preceding the
Date of Termination; the Company shall continue to pay the entire amount of
such premiums (and increases therein, if any) to the same extent as the Company
pays for such coverage for similarly situated executives, <I>provided</I> that to the extent
that any plan does not permit continuation of the Participant&#146;s or his eligible
dependents&#146; participation throughout such period, the Company shall provide the
Participant, no less frequently than quarterly in advance, with an amount, on
an after-tax basis, equal to the Company&#146;s cost of providing such benefits and,
<I>provided
further, </I>that at the end of the foregoing period, the Participant
shall be entitled to the continuation of health benefits under the Consolidated
Omnibus Budget Reconciliation Act of 1986 (&#147;<B><U>COBRA</U></B>&#148;); </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
For one (1) year following the Date of Termination, the Participant will be
entitled to receive executive outplacement assistance from Lee Hecht Harrison
or </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>-8-</FONT></P>

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

<P><FONT SIZE=2>an equivalent career placement firm at the Company&#146;s
expense and in accordance with the Company&#146;s policies for similarly situated
executives; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
In a lump-sum, the amount of any matching contributions made by the Company on
behalf of the Participant to the Company&#146;s 401(k) plan and the Company&#146;s
Supplemental Deferred Compensation Plan during the year preceding the Date of
Termination.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.
<I><U>Payments
Upon Termination of Employment After a Change in Control</U></I>. If
during the Termination Period the employment of the Participant is terminated
pursuant to a Qualifying Termination, then, subject to the Participant&#146;s
execution of a Separation Agreement and Release, the Company shall provide to
the Participant:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
Within ten (10) days following the Date of Termination (or, if later, the
execution by the Participant of the Separation Agreement and Release), a lump
sum cash payment equal to the result of multiplying&nbsp;the sum of the
Participant&#146;s Base Salary <I>plus</I> the Participant&#146;s Bonus Amount by
(i)&nbsp;either 3.00 for a Participant designated on Schedule A or (ii) 2.00
for a Participant designated on Schedule B; and</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Within ten (10) days following the Date of Termination (or, if later, the
execution by the Participant of the Separation Agreement and Release), a cash
payment equal to the Participant&#146;s target Annual Performance Bonus for the
fiscal year in which the Participant&#146;s Date of Termination occurs, multiplied
by a fraction the numerator of which shall be the number of days the
Participant was employed by the Company during the fiscal year in which the
Date of Termination occurred and the denominator of which is 365; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
For (i) three (3) years for a Participant designated on Schedule A or (ii) two
(2) years for a Participant designated on Schedule B following the Date of
Termination, group medical and life insurance coverage to the Participant (and
his eligible dependents), under the terms prevailing at the time immediately
preceding the Date of Termination; the Company shall continue to pay the entire
amount of such premiums (and increases therein, if any) to the same extent as the
Company pays for such coverage for similarly situated executives, <I>provided</I>
that to the extent that any plan does not permit continuation of the
Participant&#146;s or his eligible dependents&#146; participation throughout such period,
the Company shall provide the Participant in a lump-sum an amount, on an
after-tax basis, equal to the Company&#146;s cost of providing such benefits; and, <I>provided
further, </I>that at the end of the foregoing period, the Participant
shall be entitled to the continuation of health benefits under COBRA;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
For one (1) year following the Date of Termination, the Participant will be
entitled to receive executive outplacement assistance from Lee Hecht Harrison
or an equivalent career placement firm at the Company&#146;s expense; </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>-9-</FONT></P>

<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
In a lump-sum, the amount of any matching contributions made by the Company on
behalf of the Participant to the Company&#146;s 401(k) plan and the Company&#146;s
Supplemental Deferred Compensation Plan during the year preceding the Date of
Termination; and</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
To the extent provided in Appendix A, if the Participant is subject to the
excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as
amended (the &#147;<B><U>Excise Tax</U></B>&#148;),
a gross-up payment in accordance with the provisions of Appendix A.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.
<I><U>Key
Employees</U>. </I>Notwithstanding the timing of payments set forth in
Sections 4 and 5, if the Company determines that the Participant is a
&#147;specified employee&#148; within the meaning of Section 409A of the Internal Revenue
Code and that, as a result of such status, any portion of the payment under
this Plan would be subject to additional taxation, the Company will delay
paying any portion of such payment until the earliest permissible date on which
payments may commence without triggering such additional taxation (with such
delay not to exceed six months), with the first such payment to include the
amounts that would have been paid earlier but for the above delay. The Company
shall set aside those payments that would be subject to the Section&nbsp;409A
additional tax in a trust that is in compliance with Rev. Proc. 92-64 which
may, but need not be, the trust established under the Company&#146;s Supplemental
Deferred Compensation Plan.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.
<I><U>Participant&#146;s
Obligations</U></I>. The Participant agrees that: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
Without the consent of the Company, the Participant will not terminate
employment with the Company without giving 30 days prior notice to the Company,
and during such 30-day period the Participant will assist the Company, as and
to the extent reasonably requested by the Company, to effect an orderly
transition of the Participant&#146;s duties and responsibilities with the Company. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
In the event that the Participant has received any benefits from the Company
under Section 4 of this Agreement, then, during the period of 36 months
following the Date of Termination, the Participant, upon request by the
Company: </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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  Will consult with one or more of the executive officers concerning the business
  and affairs of the Company for not to exceed four hours in any month at times
  and places selected by the Participant as being convenient to him or her, all
  without compensation other than what is provided for in Section 4 of this
  Agreement; 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  Will testify as a witness on behalf of the Company in any legal proceedings
  involving the Company which arise out of events or circumstances that
  occurred or existed prior to the Date of Termination (except for any such
  proceedings relating to this Plan), without compensation other than what</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>-10-</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="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>is provided for in Section 4 of this Agreement, <I>provided</I>
  that all out-of-pocket expenses incurred by the Participant in connection
  with serving as a witness shall be paid by the Company.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>The Participant shall not be required to perform the
Participant&#146;s obligations under this Section 7 if and so long as the Company is
in default with respect to performance of any of its obligations under this
Agreement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.
<I><U>Withholding
Taxes</U></I>. The Company may withhold from all payments due to the
Participant (or his beneficiary or estate) hereunder all taxes which, by
applicable federal, state, local or other law, the Company is required to
withhold therefrom.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.
<I><U>Reimbursement
of Expenses</U></I>. Following a Change in Control, if any contest or
dispute shall arise under this Plan involving termination of a Participant&#146;s
employment with the Company or involving the failure or refusal of the Company
to perform fully in accordance with the terms hereof, the Company shall
reimburse the Participant on a current basis for all reasonable legal fees and
related expenses, if any, incurred by the Participant in connection with such
contest or dispute (regardless of the result thereof), together with interest
in an amount equal to the prime rate as reported in <I>The Wall Street Journal</I>, but
in no event higher than the maximum legal rate permissible under applicable
law, such interest to accrue thirty (30) days from the date the Company
receives the Participant&#146;s statement for such fees and expenses through the
date of payment thereof, regardless of whether or not the Participant&#146;s claim
is upheld by a court of competent jurisdiction or an arbitration panel; <I>provided</I>,
<I>however</I>,
that the Participant shall be required to repay immediately any such amounts to
the Company to the extent that a court or an arbitration panel issues a final
and non-appealable order setting forth the determination that the position
taken by the Participant was frivolous or advanced by the Participant in bad
faith.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.
<I><U>No
Guarantee of Employment</U></I>. Nothing in this Plan shall be deemed to
entitle the Participant to continued employment with the Company or its
Subsidiaries.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.
<I><U>Successors;
Binding Agreement</U></I>.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
This Plan shall not be terminated by any Business Combination. In the event of
any Business Combination, the provisions of this Plan shall be binding upon the
Surviving Corporation, and such Surviving Corporation shall be treated as the
Company hereunder.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
The Company agrees that in connection with any Business Combination, it will
cause any successor entity to the Company unconditionally to assume all of the
obligations of the Company hereunder. Failure of the Company to obtain such
assumption prior to the effectiveness of any such Business Combination that </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>-11-</FONT></P>

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





<P><FONT SIZE=2>constitutes
a Change in Control, shall be a breach of this Plan and shall constitute Good
Reason hereunder and shall entitle the Participant to compensation and other
benefits from the Company in the same amount and on the same terms as the Participant
would be entitled hereunder if the Participant&#146;s employment were terminated
following a Change in Control by reason of a Qualifying Termination. For
purposes of implementing the foregoing, the date on which any such Business
Combination becomes effective shall be deemed the date Good Reason occurs, and
shall be the Date of Termination if requested by a Participant.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
The benefits provided under this Plan shall inure to the benefit of and be
enforceable by the Participant&#146;s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the
Participant shall die while any amounts would be payable to the Participant
hereunder had the Participant continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Plan to such person or persons appointed in writing by the Participant to
receive such amounts or, if no person is so appointed, to the Participant&#146;s
estate.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.
<I><U>Notice</U></I>.
(a) For purposes of this Plan, all notices and other communications required or
permitted hereunder shall be in writing and shall be deemed to have been duly
given when delivered or five (5) days after deposit in the United States mail,
certified and return receipt requested, postage prepaid, addressed as follows:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
to the Participant: the address listed as the Participant&#146;s address in the
Company&#146;s personnel files.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
to the Company:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
 <TR style="font-size:1px">
  <TD WIDTH="7%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="93%" 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>Quest Diagnostics Incorporated</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>1290 Wall Street West</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Lyndhurst, NJ 07071</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Attention: General Counsel</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>or to such other address as either party may have
furnished to the other in writing in accordance herewith, except that notices
of change of address shall be effective only upon receipt.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
A written notice of the Participant&#146;s Date of Termination by the Company or the
Participant, as the case may be, to the other, shall (i) indicate the specific
termination provision in this Plan relied upon, (ii) to the extent applicable,
set forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Participant&#146;s employment under the provision so
indicated and (iii) specify the date of termination, which date shall be not less
than fifteen (15) nor more than sixty (60) days after the giving of such
notice, <I>provided,
however</I>, that the Company may in its sole</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>-12-</FONT></P>

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

<P><FONT SIZE=2>discretion accelerate such date to an earlier date or,
alternatively, place the Participant on paid leave during such period. The
failure by the Participant or the Company to set forth in such notice any fact
or circumstance which contributes to a showing of Good Reason or Cause shall
not waive any right of the Participant or the Company hereunder or preclude the
Participant or the Company from asserting such fact or circumstance in
enforcing the Participant&#146;s or the Company&#146;s rights hereunder.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.
<I><U>Full
Settlement; Resolution of Disputes and Costs</U></I>. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
The Company&#146;s obligation to make any payments provided for in this Plan and
otherwise to perform its obligations hereunder shall be in lieu and in full
settlement of all other severance payments to the Participant under any other
severance or employment agreement between the Participant and the Company, and
any severance plan of the Company. In no event shall the Participant be
obligated to seek other employment or take other action by way of mitigation of
the amounts payable to the Participant under any of the provisions of this Plan
and, except as provided in the Separation Agreement and Release, such amounts
shall not be reduced whether or not the Participant obtains other employment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Any dispute or controversy arising under or in connection with this Plan shall
be settled exclusively by arbitration in New Jersey by three arbitrators in
accordance with the commercial arbitration rules of the American Arbitration
Association (&#147;<B><U>AAA</U></B>&#148;) then in effect. One arbitrator shall be selected by
the Company, the other by the Participant and the third jointly by these
arbitrators (or if they are unable to agree within thirty (30) days of the
commencement of arbitration the third arbitrator will be appointed by the AAA).
Judgment may be entered on the arbitrators&#146; award in any court having
jurisdiction. In the event of any such dispute or controversy arising during a
Termination Period, the Company shall bear all costs and expenses arising in
connection with any arbitration proceeding on the same terms as set forth in
Section 9 of this Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.
<I><U>Employment
with Subsidiaries</U></I>. Employment with the Company for purposes of
this Plan shall include employment with any Subsidiary. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.
<I><U>Survival</U></I>.
The respective obligations and benefits afforded to the Company and the
Participant as provided in Sections 4 (to the extent that payments or benefits
are owed as a result of a termination of employment that occurs during the term
of this Plan) 5, 6, 8(c) and 10 shall survive the termination of this Plan.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.
<I><U>GOVERNING
LAW; VALIDITY</U></I>. THE INTERPRETATION, CONSTRUCTION AND PERFORMANCE
OF THIS PLAN SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH
THE INTERNAL LAWS OF THE STATE OF NEW JERSEY, WITHOUT REGARD TO THE PRINCIPLE
OF CONFLICTS OF LAWS, AND APPLICABLE FEDERAL LAWS. THE INVALIDITY OR
UNENFORCEABILITY OF ANY PROVISION OF THIS</FONT></P>

<P></P>

<P ALIGN=CENTER><FONT  SIZE=2>-13-</FONT></P>

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

<P><FONT SIZE=2>PLAN SHALL NOT
AFFECT THE VALIDITY OR ENFORCEABILITY OF ANY OTHER PROVISION OF THIS PLAN,
WHICH OTHER PROVISIONS SHALL REMAIN IN FULL FORCE AND EFFECT.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.
<I><U>Amendment
and Termination</U></I>. The Board may amend or terminate the Plan at
any time; <I>provided</I>,
<I>however</I>,
that (i) Sections 3(b), 4(a) and 4(b) may not be amended in a manner which is
materially adverse to any Participant then listed on Schedule A or B without
such Participant&#146;s written consent, (ii) during the period commencing on a
Change in Control and ending on the second anniversary of the Change in
Control, the Plan (including, for the avoidance of doubt, any Schedules,
Appendices and Exhibits) may not be amended or terminated by the Board in any
manner which is materially adverse to any Participant then listed on Schedule A
or B without such Participant&#146;s written consent and (iii) any termination or
amendments to the Plan (including, for the avoidance of doubt, any Schedules,
Appendices and Exhibits) that are materially adverse to the interests of any
Participant then listed on Schedule A or B, and that occur during the period of
time beginning on a date three (3) months prior to a Potential Change in
Control and ending on the termination of the agreement that constituted the
Potential Change in Control, shall be void unless consented to in writing by
the affected Participant.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.
  <I><U>Interpretation and Administration</U></I>. The Plan shall be administered
  by the Board. The Board may delegate any of its powers under the Plan to the
  Compensation Committee of the Board (or any successor committee). With respect
  to those Participants who are not subject to Section 16 of the Securities Exchange
  Act of 1934, as amended (the &#147;<b>Exchange Act</b>&#148;), the Committee
  may delegate any of its powers under the Plan to the Chief Executive Officer
  of the Company. The Board, the Compensation Committee (or any successor committee)
  and the Chief Executive Officer (to the extent of the powers delegated to him)
  shall have the authority in its sole and absolute discretion to: (i) exercise
  all of the powers granted to it under this Plan; (ii) construe, interpret and
  implement this Plan; (iii) prescribe, amend and rescind rules and regulations
  relating to this Plan, including rules and regulations governing its own operations;
  (iv) make all determinations necessary or advisable in administering this Plan;
  (v)&nbsp;correct any defect, supply any omission and reconcile any inconsistency
  in this Plan; and (vi) amend this Plan to reflect changes in or interpretations
  of applicable law, rules or regulations. The determination of the Board on all
  matters relating to the Plan and any amounts payable thereunder shall be final,
  binding and conclusive on all parties, <I>provided, however, </I>that following
  a Change in Control, notwithstanding anything in this Plan to the contrary,
  any court, tribunal or arbitration panel that adjudicates any dispute, controversy
  or claim arising between a Participant and the Company, or any of their delegates
  or successors, in respect of a Participant&#146;s Qualifying Termination, will
  apply a <U>de</U> <U>novo</U> standard of review to any determinations made
  by such person and such <U>de</U> <U>novo</U> standard shall apply notwithstanding
  the grant of full discretion hereunder to any such person or characterization
  of any such decision by such person as final, binding or conclusive on any party.
  </FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>-14-</FONT></P>

<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.
<I><U>Claims
and Appeals</U></I>. Participants may submit claims for benefits by
giving notice to the Company pursuant to Section 12 of this Plan. If a
Participant believes that he or she has not received coverage or benefits to
which he or she is entitled under the Plan, the Participant may notify the
Board in writing of a claim for coverage or benefits. If the claim for coverage
or benefits is denied in whole or in part, the Board shall notify the applicant
in writing of such denial within thirty (30) days (which may be extended to
sixty (60) days under special circumstances), with such notice setting forth:
(i) the specific reasons for the denial; (ii) the Plan provisions upon which
the denial is based; (iii) any additional material or information necessary for
the applicant to perfect his or her claim; and (iv) the procedures for
requesting a review of the denial. Upon a denial of a claim by the Board, the
Participant may: (i) request a review of the denial by the Board or, where
review authority has been so delegated, by such other person or entity as may
be designated by the Board for this purpose; (ii) review any Policy documents
relevant to his or her claim; and (iii) submit issues and comments to the Board
or its delegate that are relevant to the review. Any request for review must be
made in writing and received by the Board or its delegate within sixty (60)
days of the date the applicant received notice of the initial denial, unless
special circumstances require an extension of time for processing. The Board or
its delegate will make a written ruling on the applicant&#146;s request for review
setting forth the reasons for the decision and the Plan provisions upon which
the denial, if appropriate, is based. This written ruling shall be made within
thirty (30) days of the date the Board or its delegate receives the applicant&#146;s
request for review unless special circumstances require an extension of time
for processing, in which case a decision will be rendered as soon as possible,
but not later than sixty (60) days after receipt of the request for review. All
extensions of time permitted by this Section 16 will be permitted at the sole
discretion of the Board or its delegate. If the Board does not provide the
Participant with written notice of the denial of his or her appeal, the
Participant&#146;s claim shall be deemed denied.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.  <I><U>Type of
Policy</U></I>. This Plan is intended
to be, and shall be interpreted as an unfunded employee welfare plan under
Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended
(&#147;<B><U>ERISA</U></B>&#148;)
and Section 2520.104-24 of the Department of Labor Regulations, maintained
primarily for the purpose of providing employee welfare benefits, to the extent
that it provides welfare benefits, and under Sections 201, 301 and 401 of
ERISA, as a plan that is unfunded and maintained primarily for the purpose of
providing deferred compensation, to the extent that it provides such
compensation, in each case for a select group of management or highly
compensated employees. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.
<I>No
Duplication of Benefits. </I>Except as otherwise expressly provided
pursuant to this Plan, this Plan shall be construed and administered in a
manner which avoids duplication of compensation and benefits which may be
provided under any other plan, program, policy, or other arrangement. In the
event a Participant is covered by any other plan, program, policy, individually
negotiated agreement or other arrangement, in effect as of his or her Date of
Termination, that may duplicate the payments provided</FONT></P>

<P></P>

<P ALIGN=CENTER><FONT  SIZE=2>-15-</FONT></P>

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

<P><FONT SIZE=2>in Sections 4
or 5, as applicable, the Company is specifically empowered to reduce or
eliminate the duplicative benefits provided for under the Plan. In taking such
action, the Company will be guided by the principles that (1) such a
Participant will otherwise be treated, for the purpose of the Sections
specified above, no more or no less favorably than are other Participants who
are not covered by such other plan, program, policy, individually negotiated
agreement or other arrangement and (2) the provisions of such other plan,
program, policy, individually negotiated agreement or other arrangement
(including, but not limited to, a special individual pension, a special
deferral account and/or a special equity based grant) which are not duplicative
of the payments provided in Sections 4 or 5, as applicable, will not be
considered in determining elimination and/or reductions in Plan benefits.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.
<I><U>Nonassignability</U></I>.
Benefits under the Plan may not be assigned by the Participant. The terms and
conditions of the Plan shall be binding on the successors and assigns of the
Company.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.
<I><U>Effective
Date</U></I>. The Plan shall be effective as of May 3, 2006.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>-16-</FONT></P>

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

<P ALIGN=CENTER><FONT SIZE=2><B><U>Schedule A</U></B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0>
 <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=2>W. Thomas Grant II</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Senior Vice President, Insurance and Employer
  Services</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Robert A. Hagemann</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Senior Vice President and Chief Financial Officer </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Robert E. Peters</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Vice President, Sales and Marketing</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Michael E. Prevoznik</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Senior Vice President and General Counsel</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>David M. Zewe</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>Senior Vice President, Diagnostic Testing Operations</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><U>Schedule B</U></B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B><U>None</U></B></FONT></P>

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


<P ALIGN=CENTER><FONT SIZE=2><B>Appendix A</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><U>Additional Reimbursement Payments by the
Company &#150; <B>Schedule A Participants ONLY</B></U></FONT></P>

<P><FONT SIZE=2>(a) Anything
in this Plan to the contrary notwithstanding, in the event it shall be
determined that any payment, award, benefit or distribution (or any
acceleration of any payment, award, benefit or distribution) by the Company (or
any of its affiliated entities) or any entity which effectuates a Change in
Control (or any of its affiliated entities) to or for the benefit of the
Participant (whether pursuant to the terms of this Plan or otherwise, but
determined without regard to any additional payments required under this
Appendix&nbsp;A) (the &#147;<B><U>Payments</U></B>&#148;)
would be subject to the excise tax imposed by Section 4999 of the Internal
Revenue Code of 1986, as amended (the &#147;<B><U>Code</U></B>&#148;),
or any interest or penalties are incurred by the Participant with respect to
such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the &#147;<B><U>Excise Tax</U></B>&#148;), then the Company shall
pay to the Participant an additional payment (a &#147;<B><U>Reimbursement Payment</U></B>&#148;) in an amount such that after
payment by the Participant of all taxes (including any Excise Tax) imposed upon
the Reimbursement Payment, the Participant retains an amount of the
Reimbursement Payment equal to the Excise Tax imposed upon the Payments. For
purposes of determining the amount of the Reimbursement Payment, the
Participant shall be deemed to (i)&nbsp;pay federal income taxes at the highest
marginal rates of federal income taxation for the calendar year in which the
Reimbursement Payment is to be made and (ii)&nbsp;pay applicable state and
local income taxes at the highest marginal rate of taxation for the calendar
year in which the Reimbursement Payment is to be made, net of the maximum reduction
in federal income taxes which could be obtained from deduction of such state
and local taxes.</FONT></P>

<P><FONT SIZE=2>Notwithstanding
the foregoing provisions of this Appendix A, if it shall be determined that the
Participant is entitled to a Reimbursement Payment, but that the Payments would
not be subject to the Excise Tax if the Payments were reduced by an amount that
is no more than 5% of the portion of the Payments that would be treated as
&#147;parachute payments&#148; under Section 280G of the Code, then the amounts payable
to the Participant under this Plan shall be reduced (but not below zero) to the
maximum amount that could be paid to the Participant without giving rise to the
Excise Tax (the &#147;<B><U>Safe Harbor Cap</U></B>&#148;),
and no Reimbursement Payment shall be made to the Participant. The reduction of
the amounts payable hereunder, if applicable, shall be made by reducing first
the payments under Section 4(a), unless an alternative method of reduction is
elected by the Participant. For purposes of reducing the Payments to the Safe
Harbor Cap, only amounts payable under this Plan (and no other Payments) shall
be reduced. If the reduction of the amounts payable hereunder would not result
in a reduction of the Payments to the Safe Harbor Cap, no amounts payable under
this Plan shall be reduced pursuant to this provision.</FONT></P>

<P><FONT SIZE=2>(b) Subject to
the provisions of Paragraph (a), all determinations required to be made under
this Appendix A, including whether and when a Reimbursement Payment is
required,</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>App. A-2</FONT></P>

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

<P><FONT SIZE=2>the amount of
such Reimbursement Payment, the amount of any Option Redetermination (as
defined below), the reduction of the Payments to the Safe Harbor Cap and the
assumptions to be utilized in arriving at such determinations, shall be made by
a public accounting firm that is retained by the Company as of the date
immediately prior to the Change in Control (the &#147;<B><U>Accounting Firm</U></B>&#148;) which shall provide detailed supporting
calculations both to the Company and the Participant within fifteen (15)
business days of the receipt of notice from the Company or the Participant that
there has been a Payment, or such earlier time as is requested by the Company
(collectively, the &#147;<B><U>Determination</U></B>&#148;).
For the avoidance of doubt, the Accounting Firm may use the Option
Redetermination amount in determining the reduction of the Payments to the Safe
Harbor Cap. Notwithstanding the foregoing, in the event (i) the Board shall
determine prior to the Change in Control that the Accounting Firm is precluded
from performing such services under applicable auditor independence rules or
(ii) the Audit Committee of the Board determines that it does not want the
Accounting Firm to perform such services because of auditor independence
concerns or (iii) the Accounting Firm is serving as accountant or auditor for
the person(s) effecting the Change in Control, the Board shall appoint another
nationally recognized public accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall
be borne solely by the Company, and the Company shall enter into any agreement
reasonably requested by the Accounting Firm in connection with the performance
of the services hereunder. The Reimbursement Payment under this Appendix A with
respect to any Payments shall be made no later than thirty (30) days following
such Payment. If the Accounting Firm determines that no Excise Tax is payable
by a Participant, it shall furnish the Participant with a written opinion to
such effect, and to the effect that failure to report the Excise Tax, if any,
on the Participant&#146;s applicable federal income tax return will not result in
the imposition of a negligence or similar penalty. In the event the Accounting
Firm determines that the Payments shall be reduced to the Safe Harbor Cap, it
shall furnish the Participant with a written opinion to such effect. The
Determination by the Accounting Firm shall be binding upon the Company and the
Participant.</FONT></P>

<P><FONT SIZE=2>As a result of
the uncertainty in the application of Section 4999 of the Code at the time of
the Determination, it is possible that Reimbursement Payments which will not
have been made by the Company should have been made (&#147;<B><U>Underpayment</U></B>&#148;) or Reimbursement
Payments are made by the Company which should not have been made (&#147;<B><U>Overpayment</U></B>&#148;), consistent with the
calculations required to be made hereunder. In the event the amount of the
Reimbursement Payment is less than the amount necessary to reimburse the
Participant for the Excise Tax, the Accounting Firm shall determine
the amount of the Underpayment that has occurred and any such Underpayment
(together with interest at the rate provided in Section 1274(b)(2)(B) of the
Code) shall be promptly paid by the Company to or for the benefit of the
Participant. In the event the amount of the Reimbursement Payment exceeds the
amount necessary to reimburse the Participant for the Excise Tax, the Accounting
Firm shall determine the amount of the Overpayment that has been made and any
such Overpayment (together with interest at the rate provided in Section
1274(b)(2) of the Code) shall be promptly paid by the Participant (to the
extent the Participant has received a refund </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>App. A-3</FONT></P>

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

<P><FONT SIZE=2>if the
applicable Excise Tax has been paid to the Internal Revenue Service) to or for
the benefit of the Company. The Participant shall cooperate, to the extent his
or her expenses
are reimbursed by the Company, with any reasonable requests by the Company in
connection with any contests or disputes with the Internal Revenue Service in
connection with the Excise Tax. In the event that the Company makes a
Reimbursement Payment to the Participant and subsequently the Company
determines that the value of any accelerated vesting of stock options held by
the Participant shall be redetermined within the context of Treasury Regulation
&#167;1.280G-1 Q/A 33 (the &#147;<B><U>Option Redetermination</U></B>&#148;), the
Participant shall (i) file with the Internal Revenue Service an amended federal
income tax return that claims a refund of the overpayment of the Excise Tax
attributable to such Option Redetermination and (ii) promptly pay the refunded Excise
Tax to the Company; <I>provided</I> that the Company shall pay all
reasonable professional fees incurred in the preparation of the Participant&#146;s
amended federal income tax return. If the Option Redetermination occurs in the
same year that the Reimbursement Payment is included in the Participant&#146;s
taxable income, then in addition to returning the refund to the Company, the
Participant will also promptly return to the Company any tax benefit realized
by the return of such refund and the return of the additional tax benefit
payment (all determinations pursuant to this sentence shall be made by the
Accounting Firm). In the event that amounts payable to the Participant under
this Plan were reduced pursuant to the second paragraph of Paragraph (a) and
subsequently the Participant determines there has been an Option
Redetermination that reduces the value of the Payments attributable to such
options, the Company shall promptly pay to the Participant any amounts payable
under this Plan that were not previously paid solely as a result of the second
paragraph of Paragraph (a) up to the Safe Harbor Cap.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>App. A-4</FONT></P>

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

<P ALIGN=CENTER><FONT SIZE=2><B>Exhibit A</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>FORM OF SEPARATION AGREEMENT AND RELEASE
(HEREIN &#147;AGREEMENT&#148;)</B></FONT></P>

<P><FONT SIZE=2>Quest
Diagnostics Incorporated (the &#147;Company&#148;) and _______________ (&#147;Executive&#148;)
agree as follows:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
Executive&#146;s employment with the Company will terminate effective <B>[Date]</B>.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
Executive agrees to make himself reasonably available to the Company to respond
to requests by the Company for information concerning litigation, regulatory
inquiry or investigation, involving facts or events relating to the Company
that may be within his knowledge.
Executive will cooperate fully with the Company in connection with any
and all future litigation or regulatory proceedings brought by or against the
Company to the extent the Company reasonably deems Executive&#146;s cooperation
necessary.  Executive will be entitled
to reimbursement of reasonable out-of-pocket expenses (not including counsel
fees) incurred in connection with fulfilling his obligations under this Section
2.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.
In consideration of Executive&#146;s undertakings herein, the Company will pay an
amount equal to $____________ in accordance with Section 4 of the Company&#146;s
Executive Severance Plan (the &#147;Severance Plan&#148;), less required deductions
(including, but not limited to, federal, state and local tax withholdings) as separation/severance
pay (the &#147;Severance Payment&#148;).  The
Severance Payment will be paid in accordance with the Severance Plan.  Payment of the Severance Payment is
contingent upon the execution of this Agreement by Executive and Executive&#146;s
compliance with all terms and conditions of this Agreement and the Severance
Plan.  Executive agrees that if this
Agreement does not become effective, the Company shall not be required to make
any further payments to Executive pursuant to this Agreement or the Severance Plan
and shall be entitled to recover all payments already made by it (including
interest thereon).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.
Executive understands and agrees that any amounts that Executive owes the
Company, including any salary or other overpayments related to Executive&#146;s
employment with the Company, will be offset and deducted from Executive&#146;s final
paycheck from the Company.  Executive
specifically authorizes the Company to offset and deduct any such amounts from
his final paycheck.  Executive agrees
and acknowledges that, to the extent the amount of Executive&#146;s final paycheck
is not sufficient to repay the full amount that Executive owes to the Company,
if any, the full remaining amount owed to the Company, if any, will be offset
and deducted from the amount of the Severance Payment.  Executive specifically authorizes the
Company to offset and deduct any such amounts from his Severance Payment.  </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.
Executive agrees that, after payment of Executive&#146;s final paycheck on <B>[Date]</B>
and the Severance Payment, Executive will have received all compensation and
benefits that are due and owing to Executive by the Company, including but not
limited to salary, vacation pay, bonus, commissions and incentive/override
compensation but excluding any benefits or services provided pursuant to
Sections 4(e) and 4(f) of the Severance Plan.</FONT></P>

<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;6. Executive
represents that he has returned to the Company all property or information,
including, without limitation, all reports, files, memos, plans, lists, or
other records (whether electronically stored or not) belonging to the Company
or its affiliates, including copies, extracts or other documents derived from
such property or information.  Executive
will immediately forfeit all rights and benefits under this Agreement and the Severance
Plan, including, without limitation, the right to receive any Severance Payment
if Executive, directly or indirectly, at any time (i)&nbsp;discloses to any
third party or entity any trade secrets or other proprietary or confidential
information pertaining to the Company or any of its affiliates or uses such
secrets or information without the prior written consent of the General Counsel
of the Company or (ii)&nbsp;takes any actions or makes or publishes any
statements, written or oral, or instigates, assists or participates in the
making or publication of any such statements which libel, slander or disparage
the Company or any of its past or present directors, officers or
employees.  Nothing in this Agreement
shall prevent or prohibit Executive or the Company from responding to an order,
subpoena, other legal process or regulatory inquiry directed to them or from
providing information to or making a filing with a governmental or regulatory
body.  Executive agrees that upon
learning of any order, subpoena or other legal process seeking information that
would otherwise be prohibited from disclosure under this Agreement, he will
promptly notify the Company, in writing, directed to the Company&#146;s General
Counsel.  In the event disclosure is so
required, Executive agrees not to oppose any action by the Company to seek or
obtain a protective order or other appropriate remedy.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.
Executive agrees that Executive&#146;s Employment and Confidentiality Agreement (the
&#147;Employment and Confidentiality Agreement&#148;) shall continue to be in full force
and effect, including but not limited to all non-competition and
non-solicitation provisions contained therein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.
Executive hereby represents that he has not filed any action, complaint,
charge, grievance or arbitration against the Company or any of its affiliates
in connection with any matters relating, directly or indirectly, to his
employment, and covenants and agrees not to file any such action, complaint or
arbitration or commence any other judicial or arbitral proceedings against the
Company or any of its affiliates with respect to events occurring prior to the
termination of his employment with the Company or any affiliates thereof.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.
Effective on <B>[Date],</B> the Company
will cease all health benefit coverage and other benefit coverage for
Executive.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.
<U>GENERAL RELEASE</U> &#150; Effective as of the Effective Date, and in return for
the consideration set forth above, Executive agrees not to sue or file any
action, claim, or lawsuit against the Company, agrees not to pursue, seek to
recover or recover any alleged damages, seek to obtain or obtain any other form
of relief or remedy with respect to, and cause the dismissal or withdrawal of,
any lawsuit, action, claim, or charge against the Company, and Executive agrees
to waive all claims and release and forever discharge the Company, its
officers, directors, subsidiaries, affiliates, parents, attorneys, shareholders
and employees from any claims, demands, actions, causes of action or
liabilities for compensatory damages or any other relief or remedy, and
obligations of any kind or nature whatsoever, based on any matter, cause or
thing, relating in any way, directly or indirectly, to his employment, from the
beginning of time through the </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>Exh. A-2</FONT></P>

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

<P><FONT SIZE=2>Effective Date
of this Agreement, whether known or unknown, fixed or contingent, liquidated or
unliquidated, and whether arising from tort, statute, or contract, including,
but not limited to, any claims arising under or pursuant to the California Fair
Employment and Housing Act, Title VII of the Civil Rights Act of 1964, the
Civil Rights Act of 1871, the Civil Rights Act of 1991, the Americans with
Disabilities Act, the Rehabilitation Act, the Family and Medical Leave Act of
1993, the Occupational Safety&nbsp;&amp; Health Act, the Employee Retirement
Income Security Act of 1974, the Older Workers Benefit Protection Act of 1990,
the Worker Adjustment and Retraining Notification Act, the Fair Labor Standards
Act, the Age Discrimination in Employment Act of 1967 (&#147;ADEA&#148;), New York State
Labor Law, New York State Human Rights Law, New York Human Rights Law, and any
other state, federal, city, county or local statute, rule, regulation,
ordinance or order, or the national or local law of any foreign country, any
claim for future consideration for employment with the Company, any claims for
attorneys&#146; fees and costs and any employment rights or entitlement law, and any
claims for wrongful discharge, intentional infliction of emotional distress,
defamation, libel or slander, payment of wages, outrageous behavior, breach of
contract or any duty allegedly owed to Executive, discrimination based upon
race, color, ethnicity, sex, age, national origin, religion, disability, sexual
orientation, or another unlawful criterion or circumstance, and any other
theory of recovery.  It is the intention
of the parties to make this release as broad and as general as the law permits.</FONT></P>

<P><FONT SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>[</B>Executive
acknowledges that he is aware of, has read, has had explained to him by his
attorneys, understands and expressly waives any and all rights he has or may
have under Section 1542 of the California Civil Code, which provides as
follows: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="80%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE="2">&#147;A general
release does not extend to claims which the creditor does not know or suspect
to exist in his favor at the time of executing the release, which if known by
him must have materially affected his settlement with the debtor.&#148;<B>]*</B> </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.
Executive acknowledges that he may later discover facts different from or in
addition to those which he knows or believes to be true now, and he agrees
that, in such event, this Agreement shall nevertheless remain effective in all
respects, notwithstanding such different or additional facts or the discovery
of those facts.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.
This Agreement may not be introduced in any legal or administrative proceeding,
or other similar forum, except one concerning a breach of this Agreement or the
Severance Plan.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.
Executive acknowledges that Executive has made an independent investigation of
the facts, and does not rely on any statement or representation of the Company
in entering into this Agreement, other than those set forth herein.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.
Executive agrees that, without limiting the Company&#146;s remedies, should he
commence, continue, join in, or in any other manner attempt to assert any claim
released in connection herewith, or otherwise violate in a material fashion any
of the terms of this Agreement, the Company shall not be required to make any
further payments to the Executive </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 COLSPAN="2" VALIGN=TOP>
<P><HR NOSHADE WIDTH=120 COLOR=GRAY ALIGN=LEFT size=1>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>*</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Include
  bracketed language for California employees.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>Exh. A-3</FONT></P>

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

<P><FONT SIZE=2>pursuant to
this Agreement or the Severance Plan and shall be entitled to recover all
payments already made by it (including interest thereon), in addition to all
damages, attorneys&#146; fees and costs the Company incurs in connection with
Executive&#146;s breach of this Agreement.
Executive further agrees that the Company shall be entitled to the
repayments and recovery of damages described above without waiver of or
prejudice to the release granted by him in connection with this Agreement, and
that his violation or breach of any provision of this Agreement shall forever
release and discharge the Company from the performance of its obligations
arising from the Agreement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.
Executive has been advised and acknowledges that he has been given forty-five
(45) days to consider signing this Agreement, he has seven (7) days following
his signing of this Agreement to revoke and cancel the terms and conditions
contained herein, and the terms and conditions of this Agreement shall not become
effective or enforceable. until the revocation period has expired (the
&#147;Effective Date&#148;).  </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.
Executive acknowledges that Executive has been advised hereby to consult with,
and has consulted with, an attorney of his choice prior to signing this
Agreement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.
Executive acknowledges that Executive has fully read this Agreement,
understands the contents of this Agreement, and agrees to its terms and
conditions of his own free will, knowingly and voluntarily, and without any
duress or coercion.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.
Executive understands that this Agreement includes a final general release, and
that Executive can make no further claims against the Company or the persons
listed in Section 10 of this Agreement relating in any way, directly or indirectly,
to his employment.  Executive also
understands that this Agreement precludes Executive from recovering any damages
or other relief as a result of any lawsuit, grievance, charge or claim brought
on Executive&#146;s behalf against the Company or the persons listed in Section 10
of this Agreement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.
Executive acknowledges that Executive is receiving adequate consideration (that
is in addition to what Executive is otherwise entitled to) for signing this
Agreement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.
This Agreement and the Severance Plan constitute the complete understanding
between Executive and the Company regarding the subject matter hereof and
thereof.  No other promises or
agreements regarding the subject matter hereof and thereof will be binding
unless signed by Executive and the Company.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Executive and the Company agree that all
notices or other communications required or permitted  to be given under the terms of this Agreement shall be given in
accordance with Section 9 of the Severance Plan. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.
Executive and the Company agree that any disputes relating to any matters
covered under the terms of this Agreement shall be resolved in accordance with
Section 10 of the Severance Plan.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.
By entering into this Agreement, the Company does not admit and specifically
denies any liability, wrongdoing or violation of any law, statute, regulation
or policy, and it is </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>Exh. A-4</FONT></P>

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

<P><FONT SIZE=2>expressly
understood and agreed that this Agreement is being entered into solely for the
purpose of amicably resolving all matters of any kind whatsoever between
Executive and the Company.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.
In the event that any provision or portion of this Agreement shall be
determined to be invalid or unenforceable for any reason, the remaining
provisions or portions of this Agreement shall be unaffected thereby and shall
remain in full force and effect to the fullest extent permitted by law.  </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.
The respective rights and obligations of the parties hereunder shall survive
any termination of this Agreement to the extent necessary for the intended
preservation of such rights and obligations.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.
Unless expressly specified elsewhere in this Agreement, this Agreement shall be
governed by and construed and interpreted in accordance with the laws of the State
of New York without reference to the principles of conflict of law.  </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.
This Agreement may be executed in one or more counterparts.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="44%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="46%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Company</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Executive</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><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>By:</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>
<TD VALIGN=BOTTOM>
<HR SIZE=1 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>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Date:</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><FONT SIZE=2>Date:</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>Exh. A-5</FONT></P>

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