Exhibit 10.14
AMENDED AND RESTATED
Quest Diagnostics Incorporated
Employee Long-Term Incentive Plan
(As amended on October 31, 2008)
a) Purpose.
This Amended and Restated Quest Diagnostics Incorporated Employee
Long-Term Incentive Plan (the “Program”) is intended to
benefit the stockholders of Quest Diagnostics Incorporated (the
“Company”) by providing a means to attract, retain and
reward individuals who can and do contribute to the longer term
financial success of the Company. Further, the recipients of
stock-based awards under the Program should identify their success
with that of the Company’s stockholders and therefore will be
encouraged to increase their proprietary interest in the
Company.
b) Effective
Date. To serve this purpose, the Program will become effective upon
its approval by the holders of stock entitled to vote at the
Company’s 2005 Annual Meeting of Stockholders (the
“Effective Date”).
a) Committee.
The Program shall be administered by a Committee, appointed by the
Board of Directors of the Company (the “Board”), which
shall consist of no less than two of its members, all of whom shall
not be (or formerly have been) employees of the Company (the
“Committee”); provided, however, that from time to time
the Board may assume, at its sole discretion, administration of the
Program. Except with regard to awards to employees subject to
Section 16 of the Securities Exchange Act of 1934, the Committee
may delegate certain responsibilities and powers to any executive
officer or officers selected by it. Any such delegation may be
revoked by the Committee at any time.
b) Powers
and authority. The Committee’s powers and authority include,
but are not limited to: selecting individuals, who are employees of
the Company and any subsidiary of the Company or other entity in
which the Company has a significant equity or other interest as
determined by the Committee, to receive awards; determining the
types and terms and conditions of all awards granted, including
performance and other earnout and/or vesting contingencies;
permitting transferability of awards to eligible third parties;
interpreting the Program’s provisions; and administering the
Program in a manner that is consistent with its purpose. The
Committee’s decision in carrying out the Program and its
interpretation and construction of any provisions of the Program or
any award granted or agreement or other instrument executed under
it shall be final and binding upon all persons. No members of the
Board shall be liable for any action or determination made in good
faith in administering the Program.
c) Award
Prices. Except for awards made in connection with the assumption
of, or in substitution for, outstanding awards previously granted
by an acquired entity, all awards denominated or made in Shares
shall use as the per Share price the mean between the high and low
selling prices of a share of the Common Stock of the Company
(“Share”) on the applicable date as reported in The New
York Times, or if Shares are not traded on such date, the mean
between the high and low selling prices on the next preceding day
on which such Shares are traded; provided, however, that the
Committee may in its discretion establish a higher price as the per
Share price; and provided further, however, that where a
“reload” option is issued to an optionee who exercises
an option by tendering (either actually or by attestation) Shares
previously owned by the optionee, then the per Share exercise price
of the reload option (which shall be for the same number of shares
tendered for payment) shall be the market price at which the Shares
tendered are valued in accordance with Section 4(b). The applicable
date shall be the day on which the award is granted. Except as
provided for in Section 3(d), the per Share exercise price of any
stock option or stock appreciation right may not be decreased after
the grant of the award, and a stock option or stock appreciation
right may not be surrendered as consideration in exchange for the
grant of a new award with a lower per Share exercise
price.
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3.
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SHARES SUBJECT TO THE PROGRAM
AND ADJUSTMENTS
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a) Maximum
Shares Available for Delivery. Subject to adjustments under Section
3(d), the maximum number of Shares that may be delivered to
participants and their beneficiaries under the Program shall be
equal to (i) 48,000,000 1 Shares; (ii) any Shares that
were available for future awards under the Company’s 1996
Employee Equity Participation Program (the “Prior
Program”) as of June 29, 1999; and (iii) any Shares that were
represented by awards granted under the Prior Program of the
Company, which are or may be forfeited, which expire or are
canceled without the delivery of Shares or which have or may result
in the forfeiture of Shares back to the Company after June 29,
1999. In addition, any Shares delivered under the Program or the
Prior Program of the Company which are forfeited back to the
Company because of the failure to meet an award contingency or
condition shall again be available for delivery pursuant to new
awards granted under the Program. Any Shares covered by an award
(or portion of an award) granted under the Program or the Prior
Program of the Company, which is forfeited or canceled, expires or
is settled in cash, including the settlement of tax withholding
obligations using Shares, shall be deemed not to have been
delivered for purposes of determining the maximum number of Shares
available for delivery under the Program. Likewise, if any stock
option is exercised by tendering Shares, either actually or by
attestation, to the Company as full or partial payment for such
exercise under this Program or the Prior Program of the Company,
only the number of Shares issued net of the Shares tendered shall
be deemed delivered for purposes of determining the maximum number
of Shares available for delivery under the Program. Further, Shares
issued under the Program through the settlement, assumption or
substitution of outstanding awards or obligations to grant future
awards as a condition of the Company acquiring another entity shall
not reduce the maximum number of Shares available for delivery
under the Program.
b) Other
Program Limits. Subject to adjustment under Section 3(d), the
following additional maximums are imposed under the Program. The
maximum number of Shares that may be delivered in conjunction with
awards granted pursuant to Section 4(d) on or after the Effective
Date, shall be 7,000,000. The maximum aggregate number of Shares
that may be covered by awards granted to any one individual over
the life of the Program pursuant to Sections 4(b) and 4(c) shall
not exceed 6,000,000 Shares. The aggregate maximum payments that
can be made for awards granted to any one individual pursuant to
Section 4(d) on or after the Effective Date shall not exceed
1,200,000 Shares.
c) Payment
Shares. Subject to the overall limitation on the number of Shares
that may be delivered under the Program, the Committee may, in
addition to granting awards under Section 4, use available Shares
as the form of payment for compensation, grants or rights earned or
due under any other compensation plans or arrangements of the
Company.
d) Adjustments
for Corporate Transactions. In the event of any change in the
Shares by reason of any stock split, reverse stock split, stock
dividend recapitalization, r