Quest Diagnostics is committed to employee satisfaction as a cornerstone to achieving customer and shareholder satisfaction. The pay and benefit plans described below have been designed to promote employee health in all respects — physical, financial, and developmental.

The principal components of an employee's cash pay program consist of base pay and incentive pay plans. The goal of the base pay plan is to pay employees competitively based on comparisons to the marketplace and their contributions to the company.

For your convenience, your pay will automatically be deposited in your personal bank or credit union account by noon on payday. You have the ability to distribute your pay up to four different ways. This service guarantees the delivery of your pay on time every time.

Through the Company's Goalsharing Plan, employees are recognized and rewarded for the continuous improvement of their organization. This plan is paid in cash and all regular full time, part time, and on call employees with more than six months of service are eligible to participate. Eligible earnings do not begin to accrue until after six months of service.

MIP eligible and sales personnel participating in variable compensation plans are rewarded under separate incentive compensation plans. Details of these plans are outlined in the relevant plan documents.

Quest Diagnostics offers a variety of medical plans, available to employees based on their home zip code. The two national plans that are available to most employees are the Aetna Choice POS II plan (a PPO plan that does not require referrals to see a specialist), and a consumer directed plan through CIGNA (CIGNA Health Reimbursement Account Open Access Plus). Also available by region are a variety of Health Maintenance Organizations (HMOs). Quest Diagnostics contributes approximately 80% of the monthly premium for each of these plans.

You are eligible to participate in a medical or dental plan if you are regularly scheduled to work at least 30 hours per week. Eligibility is available to domestic partners for the Aetna Choice POS II plan and the CIGNA HRA OA Plus plan. In addition, domestic partner coverage is available in some of the HMOs offered. Coverage is effective the first of the month following one month of service.

Dental coverage is available through Aetna (Aetna Dental PPO) and is a stand-alone plan, which may be elected without enrolling in a Quest Diagnostics medical plan. Coverage is available to domestic partners.

Free counseling services are provided to all employees and their family members through LifeWorks (Ceridian Corporation). Employees can contact LifeWorks 24 hours a day, 365 days a year by calling (877) 234-5151 or on-line at www.lifeworks.com (User Name: quest, Password: diag).

You are eligible to join Quest Diagnostics 401(k) Plan after completing 1 month of service. Employees may invest up to 35% of pre-tax income in any one or in a combination of over 16 available investment options with Fidelity Investments. The available options include investment funds, lifecycle funds, and a Company stock fund. After 12 months of service, the Quest Diagnostics matches your contributions, dollar for dollar, up to 6%. The Company match is non-forfeitable, i.e., fully vested, at all times and is allocated to your account based on your investment elections. Company matching contributions are made on a bi-weekly basis but only in the pay periods in which you make a pre-tax contribution.

Catch-Up Contributions, additional pre-tax contributions, are permissible for eligible plan participants.

Employees may purchase Quest Diagnostics Incorporated stock each calendar quarter at a cost of 85% of the market price at the beginning or end of that quarter, whichever is lower. From each paycheck, a minimum of $10.00 and a maximum of 10% of your base pay may be invested. The ESPP is available through a quarterly enrollment to employees regularly scheduled to work at least 20 hours per week. Dividends paid on purchased stock are automatically reinvested.

Employees are provided Time Off with Pay (TOP) which may be used for vacation, personal needs, and incidental sick time. Hours are accrued each pay period based on the hours worked. In the first year of employment, accruals begin after three months of employment, and a full time employee scheduled to work 40 hours per week accrues 5.54 hours per pay period, equating to about 13.5 days for that first year. At the first anniversary of employment, the accrual increases to 6.15 hours per pay period or approximately 20 days per year. The rate of accrual increases with service. Following the second anniversary, employees begin to accrue approximately 22 days per year, and 27 days on the third anniversary.

At the end of the first calendar year, all unused TOP is carried over for use in the next year. At the end of each subsequent year, there is a limited ability to carry over and be paid out for unused TOP, subject to statutory requirements. Employees must be regularly scheduled to work 20 or more hours a week to be eligible for this benefit.

All accrued but unused TOP will be paid out at termination of employment.

In addition to the above time off, employees regularly scheduled to work 20 or more hours per week will be paid for six major observed holidays.

Quest Diagnostics Incorporated provides STD coverage after 3 months of employment for all employees regularly scheduled to work at least 30 hours per week. Benefits become payable on the 14th day of absence due to non-work related injury or illness (except for employees working in NY, NJ, RI and HI where benefits begin on the 8th day). Core STD benefits pay 60% of weekly pay for up to 26 weeks for eligible non-exempt employees at no cost to the employee. Employees have the option to buy-up to an 80% benefit. For eligible exempt employees, the plan pays 100% salary continuation for up to 26 weeks. In California and Rhode Island these benefits supplement the state disability benefits, up to the 60% or 100% benefit targets. There may be other variations in New Jersey and in New York based on state law.

Each eligible employee has LTD coverage in case of disabilities continuing after 26 weeks. Benefits will be paid monthly as long as the employee is disabled, up to age 65 (or later if the disability begins after age 60). Core LTD benefits pays 50% of the employee's monthly pre-disability earnings, up to a $15,000 per month benefit at no cost to the employee. Employees have the option to buy an additional 10% or 20% benefit. LTD coverage is effective after three months of employment for all employees regularly scheduled to work at least 30 hours per week.

After six months employment, the Company will reimburse employees regularly scheduled to work at least 30 hours per week for tuition expenses for courses that are job/career related, accredited, and pre-approved. Full reimbursement of eligible expenses is provided for two courses per semester. Eligible expenses include tuition.

An FSA allows employees to set aside (through pre-tax payroll deductions) up to $5,000 per account to pay for health care or dependent/child care expenses. Employees who are regularly scheduled to work at least 30 hours per week are eligible to participate after one month of employment.

The Company covers eligible employees with basic life insurance, basic AD&D, and business travel accident insurance at no cost to the employee. The amount of basic life insurance is 3 times the annual base pay for Exempt employees and 1½ times the annual base pay for Non-exempt employees. Employees may purchase supplemental life and AD&D insurance up to 8 times their annual base pay. Coverage is effective after one month of employment for all employees regularly scheduled to work at least 30 hours per week. Employees may also purchase Spouse's and Domestic Partner's Life and Child(ren)'s Life.

Free counseling services are provided to all employees and their family members through Employee Advisory Resource (EAR). A toll-free number 1-800-328-1952 is available 24 hours a day, 365 days a year, to connect you with a professional counselor.

All employees are eligible to participate in the Corning Credit Union immediately upon hire. All services of the Credit Union are available by payroll deduction, mail, through 1-800-677-8506 and local ATMs.

Employees may also use the following programs to their advantage:

•	Voluntary Benefits available through MetLife, some of which are employee paid programs. Available benefits include insurance for Long Term Care, Veterinary Pet Care, Legal Services, Auto, and Homeowners/Renters coverages, Financial Management consulting, Banking services and Life Advice.
•	Adoption Assistance
•	Matching Gifts to selected non-profit organizations
•	Health Risk Assessments
•	Discounted purchase programs for products and services including phone, movie tickets, and cars