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Exhibit 10.2

SUBJECT TO COMPENSATION
COMMITTEE REVIEW AND APPROVAL

CONSULTING AND NON-COMPETE AGREEMENT

        This CONSULTING AND NON-COMPETE AGREEMENT (this "Agreement"), is entered
into this 30th day of June, 2002 (the "Effective Date"), by and among CAREMARK
RX, INC., a Delaware Corporation ("Caremark"), and JAMES H. DICKERSON, JR.
("Executive").

        WHEREAS, Executive and Caremark entered into an Employment Agreement
dated May 1, 2000, as amended (the "Employment Agreement") setting forth the
terms and conditions of Executive's employment with Caremark;

        WHEREAS, Executive and Caremark have agreed to terminate the Employment
Agreement, and Caremark has agreed to retain Executive as a consultant under the
terms and conditions set forth herein.

        NOW THEREFORE, in consideration of the provisions hereof, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

        1.    Termination of Employment Agreement.    On the Effective Date, the
Employment Agreement shall be deemed terminated and of no further force or
effect. Following such termination, neither party shall have any further
obligations of payment of performance thereunder. Without limiting the
generality of the foregoing, Executive acknowledges that he is not entitled to
receive termination payments or benefits of any kind under the Employment
Agreement but instead shall receive only the compensation set forth in this
Agreement. Executive acknowledges that the compensation payable under this
Agreement is in excess of the termination payments or benefits that would have
been payable upon termination of employment under the Employment Agreement.

        2.    Term of Agreement.    As used herein, "Term" shall mean the period
beginning on the Effective Date and ending on the earlier of (a) May 1, 2005, of
(b) earlier termination of this Agreement pursuant to Section 11.

        3.    Consulting Duties.    Executive shall be engaged by Caremark as a
consultant during the Term of this Agreement, an Executive hereby accepts such
engagement. Executive shall report directly to the Chairman of the Board of
Directors of Caremark Rx, Inc. (the "Chairman") or his designee, and shall
provide such consulting services relating to strategy, finance and operational
issues related to the Restricted Business (as defined herein) as shall from time
to time be required by the Chairman. Executive shall not be authorized to bind
or act on behalf of Caremark unless specifically authorized in writing to do so
by the Chairman.

        The parties agree that Executive's consulting services are intended to
assist Caremark in its prescription benefit management, specialty distribution
and disease management services and that the benefit to be obtained under this
Agreement by Caremark is the benefit of Executive's knowledge, experience and
contacts gained in the operation of Caremark's businesses and in the healthcare
industry generally. Executive shall be provided with reasonable notice as to the
services requested hereunder, and such services shall only be requested to be
provided during normal business hours at a time that is mutually agreeable to
both parties. Consulting duties are expected to be on a limited, part-time
basis. Caremark will reimburse all reasonable expenses incurred by Executive in
performing such duties in accordance with standard corporate reimbursement
procedures. Executive will provide reports concerning consulting services
performed pursuant to this Agreement if requested by the Chairman.

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        4.    Compensation.    In consideration of the consulting services and
restrictive covenants in this Agreement, Caremark shall provide Executive with
the following compensation:

        (a)    Cash Payments.    Executive shall be paid cash payments as
follows: (i) $58,364.58 per month during the Term (pro-rated for any partial
month during the Term), payable in bi-weekly installments, (ii) quarterly bonus
payments for the second, third and fourth quarters of calendar year 2002,
payable on the dates such payments had previously been made under the Employment
Agreement, and (iii) the amount of Executive's accrued and unused PTO balance as
of July 31, 2002.

Within 30 days following a Change in Control (as defined in the Caremark Rx,
Inc. 1998 Stock Option Plan), Executive shall have the right to request that the
surviving entity following the Change in Control (the "Surviving Entity") assume
in writing all of Caremark's obligations under this Agreement. If the Surviving
Entity fails to provide such written confirmation and defaults in the payment of
any amounts owed under this Section 4(a), then all amounts due under this
Section 4(a) shall become immediately due and payable to Executive, and
Executive shall no longer be required to perform the consulting duties described
in Section 3 hereof.

        (b)    Benefits.    Executive shall continue to receive, throughout the
Term, the life insurance and other insurance, disability and medical and dental
benefits currently provided to Executive or, if the terms of the applicable
benefit plan or policy do not permit continued coverage, then Caremark shall pay
to Executive the replacement costs of such benefits and coverage.

        (c)    Stock Options.    All stock options granted to Executive by
Caremark, as set forth on Exhibit A hereto, shall be governed by the terms of
the plan and/or agreement pursuant to which such stock options were granted.
Without limiting the generality of the foregoing, Executive's stock options that
are unvested as of the Effective Date shall continue to vest during the Term in
accordance with the applicable stock option plan. Executive acknowledges and
agrees that he will remain a "Designated Individual" under Caremark's Stock
Trading Policy during the Term. Executive shall be solely responsible for
compliance with all Section 16, Rule 144 and other securities law requirements
applicable to him during the Term and thereafter.

        (d)    Arm's Length Negotiation.    The compensation to be provided to
Executive under this Agreement is the result of arm's length negotiations
between Executive and Caremark and reflects (i) their mutual desire to terminate
the Employment Agreement without any misunderstanding or dispute as to the
termination payments or benefits payable thereunder; (ii) their mutual desire
for Executive to provide his consulting services to Caremark; and
(iii) Executive's non-compete agreement and other restrictions as set forth in
Section 5 of this Agreement.

        (e)    Withholding Taxes and Other Deductions.    Caremark shall
withhold from any compensation due Executive under this Agreement any applicable
federal, state or local taxes and such other deductions as are prescribed by
law.

        5.    Restrictive Covenants.    

        (a)    Definitions.    The following terms shall have the meanings set
forth below:

(i)"Caremark Parties" means Caremark and its subsidiaries and affiliates.

(ii)"Confidential Information" means any data or information (other than Trade
Secrets) that is valuable to any of the Caremark Parties (or, if owned by
someone else, is valuable to that third party) and not generally known to the
public or to competitors in the pharmaceutical services industry, including, but
not limited to, any non-public information (regardless of whether in writing or
retained as personal knowledge) pertaining to research and development; product
costs and processes; shareholder information; pricing,

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costs or profit factors; quality programs; strategic planning; business
operations; financial condition; annual budget and long-range business plans;
marketing plans and methods; contracts and bids; and personnel. The term
"Confidential Information" does not include information that (A) has become
generally available to the public by the act of one who has the right to
disclose such information without violating any right of the party to which such
information pertains, or (B) is obtained by Officer on a non-confidential basis
from a third party and which Executive is not prohibited from disclosing by a
legal, contractual or fiduciary duty owed to any of the Caremark Parties.

(iii)"Restricted Business" means the business of providing pharmaceutical
services (including, without limitation, prescription benefit management
services, specialty distribution services and disease management services) to
employers, insurance companies, unions, government employee groups, governmental
entities, government program beneficiaries, managed care organizations,
coalitions, other sponsors of health benefit plans and/or individuals.

(iv)"Restricted Period" means for a period of 3 years after the Effective Date
for purposes of Sections 5(d), (e) and (f) and for a period of 5 years after the
Effective Date for purposes of Sections 5(b) and (c).

(v)"Territory" means the United States and Puerto Rico, or such lesser territory
in which the Caremark Parties are actually conducting business at the time of
enforcement.

(vi)"Trade Secret" means information including, but not limited to, any
technical or nontechnical data, formula, pattern, compilation, program, device,
method, technique, drawing, process (including, without limitation, any process
relating to customer bids or requests for proposal), financial data, financial
plan, product plan, list of actual or potential customers or suppliers or other
information similar to any of the foregoing, which (A) derives independent
economic value, actual or potential, from not being generally known to, and not
being readily ascertainable by proper means by, other persons who can derive
economic value from its disclosure or use and (B) is the subject of efforts that
are reasonable under the circumstances to maintain its secrecy.

        (b)    Trade Secrets.    Executive hereby covenants and agrees that he
will hold in confidence all Trade Secrets of the Caremark Parties and will not
disclose, publish or make use of such Trade Secrets at any time after the
Effective Date, for as long as the information remains a Trade Secret, unless
specifically authorized by the Chairman.

        (c)    Confidential Information.    Executive hereby covenants and
agrees that, during the Restricted Period, he will hold in confidence all
Confidential Information of the Caremark Parties and will not disclose, publish
or make use of such Confidential Information, unless specifically authorized by
the Chairman.

        (d)    Nonsolicitation of Employees.    Executive hereby covenants and
agrees that he will not, during the Restricted Period, either directly or
indirectly, on his own behalf or on behalf of others, solicit or divert or
attempt to solicit or divert for employment or other engagement to provide
services, any person who, as of the Effective Date, within one year prior to the
Effective Date or at any time during the Term, is or was employed by or engaged
to provide services for any of the Caremark Parties.

        (e)    Nonsolicitation of Customers and Suppliers.    Executive hereby
covenants and agrees that he will not, within the Territory and during the
Restricted Period, solicit or attempt to solicit on his own behalf or on behalf
of any business engaged in the Restricted Business, any person or entity who, as
of the Effective Date, within one year prior to the Effective Date or at any
time during

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the Term, is or was a customer or supplier to any of the Caremark Parties or is
an actively sought prospective customer or supplier of any of the Caremark
Parties.

        (f)    Noncompetition.    Executive hereby covenants and agrees that he
will not, within the Territory and during the Restricted Period, either directly
or indirectly, on his own behalf or in the service or on behalf of others,
engage in, establish, have any equity or profit interest in, make any loan to or
for the benefit of, or render services (of any product development or design,
operations, advertising, marketing, sales, administrative, logistics,
supervisory, strategic planning, management or consulting nature) to any
business, entity or individual engaged in the Restricted Business.

Notwithstanding anything in this Section 5 to the contrary, nothing herein shall
prohibit Executive, in the aggregate, from owning or acquiring a passive
investment of one percent (1%) or less of the issued and outstanding capital
stock of a publicly-held corporation engaged in the Restricted Business in the
Territory, provided that Executive does not, directly or indirectly, participate
in the management or operation of such publicly-held corporation or
organization.

        (g)    State Law.    The restrictions set forth in Sections 5(b) and
(c) are in addition to and not in lieu of protections afforded to trade secrets
and confidential information under applicable state law. This Agreement shall
not be interpreted as diminishing or otherwise limiting Caremark's right under
applicable state law to protect its trade secrets and confidential information.

        6.    Board Membership.    Executive hereby tenders his resignation from
Caremark's Board of Directors, effective as of the Effective Date.

        7.    Return of Materials.    On the Effective Date, Executive will
deliver to Caremark all memoranda, notes, records, manuals or other documents
(including, but not limited to, written instruments, voice or data recordings,
or computer tapes, disks or files of any nature), including all copies of such
materials and all documentation prepared or produced in connection therewith,
pertaining to the business of Caremark or containing Trade Secrets or
Confidential Information, whether made or compiled by Executive or otherwise
made available to Executive.

        8.    Reasonable and Necessary Restrictions.    Executive acknowledges
that the restrictions, prohibitions and other provisions hereof, including the
Territory and Restricted Period, are reasonable, fair and equitable in scope,
terms and duration, are necessary to protect the legitimate business interests
of Caremark, and are a material inducement to Caremark to pay the compensation
described in this Agreement. Executive covenants that he will not challenge the
enforceability of this Agreement nor will he raise any equitable defense to its
enforcement.

        9.    Specific Performance.    Executive acknowledges that the
obligations undertaken by him pursuant to this Agreement are unique and that
Caremark will likely have no adequate remedy at law if he fails to perform any
of those obligations. Executive therefore confirms that Caremark has the right
to specific performance of the terms of this Agreement and that this right is
essential to protect the rights and interests of Caremark and to protect the
benefit of Caremark's bargain with Executive. Accordingly, in addition to any
other remedies that Caremark may have at law or in equity, Caremark shall have
the right to have all obligations, covenants, agreements and other provisions of
this Agreement specifically performed by Executive and the right to obtain
preliminary and permanent injunctive relief to secure specific performance and
to prevent a breach or contemplated breach of this Agreement by Executive.

        10.    Release of All Claims.    In consideration for the promises set
forth in this Agreement, Executive hereby releases any and all existing claims
he may currently have, known or unknown, against Caremark, its successors,
assigns, directors, officers, employees, advisors and agents, including, but not
limited to, any claims under the Employment Agreement and any claims based on
wrongful discharge or state or federal age, sex, race, color, national origin or
disability discrimination laws. Executive waives his rights to consider and/or
revoke the terms of this Agreement for any time period beyond the

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date of its execution and in so doing, Executive acknowledges that this release
will become effective and enforceable simultaneously with execution of this
Agreement. The foregoing release does not preclude Executive from pursuing a
breach of contract action should Caremark fail to fulfill its obligations set
forth in this Agreement. Executive acknowledges that he has read and understands
the terms of this Section 10, has been given sufficient time to read and
understand its contents and has had the opportunity to consult with an attorney
prior to signing this Agreement.

        11.    Termination.    Caremark may terminate this Agreement prior to
the end of the Term if Executive refuses to carry out a consulting assignment
properly requested of him without justification, engages in conduct materially
detrimental to Caremark or commits a violation of Section 5 of this Agreement;
provided, however, that no such early termination shall be effective unless
Caremark shall have first given Executive written notice at least 30 days prior
to the time it intends to terminate this Agreement, detailing the reason for
such termination. Executive shall then have that 30-day period to cure the
reasons for such termination. Executive may terminate this Agreement upon 30
days written notice to Caremark. Termination of this Agreement under this
Section 11 shall extinguish all further obligations of payment or performance
hereunder, except Executive's obligations under Section 5 shall survive any such
termination. This Agreement will be terminated upon Executive's death (except
Executive's estate shall be entitled to receive any life insurance or other
benefits payable upon Executive's death), but this Agreement will not be
terminated due to Executive's illness or disability. Nothing contained in this
Section 11 shall limit remedies available to Caremark under Section 9 or
elsewhere in this Agreement.

        12.    Construction.    The parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties, and no presumption or burden of proof
shall arise favoring or disfavoring any party by virtue of the authorship of any
of the provisions of this Agreement. The parties agree that language proposed
for, deleted from, or otherwise changed in the various drafts of this Agreement
but not included herein, shall not be considered in any way in the
interpretation and application of this Agreement and shall not in any way affect
their rights and obligations.

        13.    Governing Law and Jurisdiction.    This Agreement, the rights and
obligations of the parties, and any claims or disputes relating thereto shall be
governed by and construed in accordance with the laws of the State of Alabama,
not including the choice-of-law rules thereof. All disputes arising from or
relating to this Agreement shall be subject to the exclusive jurisdiction of and
be litigated in the state courts located in the State of Alabama. All parties
hereby consent to the exclusive jurisdiction and venue of such courts for the
litigation of all disputes and waive any claims of improper venue, inconvenient
forum, lack of personal jurisdiction, or lack of subject matter jurisdiction as
to any such disputes.

        14.    Successors and Assigns.    This Agreement shall inure to the
benefit of and be binding upon Caremark, its successors and assigns. The
obligations and duties of Executive under this Agreement are personal and not
assignable.

        15.    Entire Agreement.    This Agreement contains the entire agreement
between Caremark and Executive with respect to the matters specified herein and
supersedes the Employment Agreement and all prior written agreements,
understandings and commitments between Caremark and Executive. This Section 15
is not intended, however, to have any effect on Executive's stock options,
Executive's stock option agreements, the stock option plans pursuant to which
Executive's stock options have been issued or Caremark's benefit plans.

        16.    Validity.    In the event that any provisions of this Agreement
are held to be invalid, void or unenforceable, the same shall not affect, in any
respect whatsoever, the validity of any other provision of this Agreement.

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        17.    Sections and Other Headings.    Sections and other headings
contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.

        18.    Notice.    Any notice or demand required or permitted to be given
under this Agreement shall be made in writing and shall be deemed effective upon
the personal delivery thereof if delivered or, if mailed, 48 hours after having
been deposited in the United States mail, postage prepaid, and addressed in the
case of Caremark to the attention of the Chairman of the Board and Chief
Executive Officer at Caremark's then principal place of business, presently
3000 Galleria Tower, Suite 1000, Birmingham, Alabama 35244 and in the case of
Executive to 1079 Jensen Drive, Lake Forest, Illinois 60045. Either party may
change the address to which such notices are to be addressed by giving the other
party notice of such change in the manner herein set forth.

        19.    Cooperation.    Executive acknowledges and agrees that during and
after the Term, Executive may be contacted by Caremark or its legal counsel
concerning various lawsuits or other legal matters about which Executive may
have knowledge. Executive agrees to cooperate with all reasonable requests for
assistance from Caremark in this regard without compensation except as already
provided in this Agreement, except for reimbursement of reasonable out-of-pocket
expenses incurred by Executive in providing such cooperation. Executive further
agrees to promptly notify Caremark if Executive is served with a subpoena or
other legal process, or is otherwise contacted by or asked to provide
information to any other party (including, without limitation, governmental
agencies or authorities) concerning audits, investigations, lawsuits or other
legal or administrative proceedings affecting any of the Caremark Parties.

        20.    Waiver, Amendment.    No provision of this Agreement may be
waived except by a written agreement signed by the waiving party. The waiver of
any term or of any condition of this Agreement shall not be deemed to constitute
the waiver of any other term or condition. This Agreement may be amended only by
a written agreement signed by the parties.

        21.    Announcements.    Caremark and Executive agree not to make any
public announcement regarding the subject matter of this Agreement except
pursuant to a mutually agreed upon press release to be issued by Caremark.
Caremark and Executive further agree not to disparage the other and not to make
comments to third parties inconsistent with the terms of the agreed upon press
release.

        22.    Counterparts.    This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

        IN WITNESS WHEREOF, Caremark and Executive have caused this Consulting
and Non-Compete Agreement to be duly executed as of the date first above
written.

    CAREMARK RX, INC.
 
 
By
 
/s/ MAC CRAWFORD

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Mac Crawford
Chairman of the Board and Chief Executive Officer
 
 
 
 
/s/ JAMES H. DICKERSON JR.

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JAMES H. DICKERSON JR.

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Personnel Option Status   Caremark Rx, Inc.
ID: 63-1151076
3000 Galleria Tower
Suite 1000
Birmingham, AL 35244   REDACTED
AS OF 7/1/02
 
 
 
 
James H. Dickerson Jr.
 
REDACTED
 
 
REDACTED
 
 
 
 

Number

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  Option Date

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  Plan

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  Type

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  Granted

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  Price

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  Exercised

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  Vested

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  Cancelled

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  Unvested

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  Outstanding

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  Exercisable

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    8/7/96   98no   NQ   400,000   $ 3.2500   400,000   400,000   0   0   0   0
    9/21/98   92ic   NQ   1,000   $ 3.0000   1,000   1,000   0   0   0   0    
4/8/99   92ic   NQ   100,000   $ 4.1875   100,000   100,000   0   0   0   0    
3/31/00   92ic   NQ   150,000   $ 4.1875   150,000   150,000   0   0   0   0
REDACTED   5/31/00   92ic   NQ   195,931   $ 6.4400   0   195,931   0   0  
195,931   195,931     11/7/00   92ic   NQ   350,000   $ 13.2100   0   119,000  
0   231,000   350,000   119,000                

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                1,196,931         651,000   965,931   0   231,000   545,931  
314,931

REDACTED

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QuickLinks

Exhibit 10.2

SUBJECT TO COMPENSATION COMMITTEE REVIEW AND APPROVAL

CONSULTING AND NON-COMPETE AGREEMENT