Document:

Incremental Facility Amendment to Credit Agreement

 Exhibit 10.2 
 INCREMENTAL FACILITY AMENDMENT 
 April 2, 2012 

 

	To:	Toronto Dominion (Texas) LLC, 

	 	  as Agent 

	 	31 West 52nd Street 

	 	New York, New York 10019 

	 	Attention: Bernadette Collins 

Re: Incremental Term Loans 
 Ladies and Gentlemen: 
 We refer to the Credit Agreement, dated as of
October 27, 2011 (as amended to date, the “Credit Agreement”), among Compass Group Diversified Holdings LLC, a Delaware limited liability company (“Borrower”), the Lenders party thereto and Toronto Dominion
(Texas) LLC, as Agent for the Lenders (in such capacity, the “Agent”). Unless otherwise defined herein or the context otherwise requires, terms used herein have the meanings provided in the Credit Agreement. 

1. Request for Additional Loans. Pursuant to Section 2.1.3 of the Credit Agreement, the Borrower has
requested Incremental Term Loans (collectively, the “Incremental Term Loans”) in an aggregate amount equal to $30,000,000. 
 2. Agreement to Make Loans. Each of the Lenders listed on the signature pages hereto under the caption “Lenders” (individually, an “Incremental Term Lender” and,
collectively, the “Incremental Term Lenders”) hereby agrees, subject to satisfaction of the conditions precedent set forth in paragraph 4 of this letter (this “Amendment”), that it will, on April 2, 2012 (the
“Incremental Facility Effective Date”), make Incremental Term Loans to the Borrower in the respective amounts set forth opposite its name on Schedule I hereto; provided, that each Incremental Term Lender and the
Borrower hereby agree that the Incremental Term Loans shall be funded with 1% of original issue discount. 
 3.
Terms of Incremental Term Loans; Amendment to Credit Agreement. 
 (i) Each Incremental Term Loan shall
be a Term Loan for all purposes of the Credit Agreement, and each payment to be applied to the Term Loans pursuant to Section 2.12.2 of the Credit Agreement or otherwise on or after the Incremental Facility Effective Date shall be applied to
all Term Loans (including the Incremental Term Loans) held by the Lenders in accordance with their respective Pro Rata Shares thereof. 

 (ii) None of the proceeds of the Incremental Term Loans shall be used to
repay, in whole or in part, the Term Loans outstanding as of the Incremental Facility Effective Date. 
 (iii)
Subject to satisfaction of the conditions precedent set forth in paragraph 4 of this Amendment, the first sentence of Section 2.11.2 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“The Term Loans shall be paid, for the account of each Lender according to its Pro Rata Share thereof, in equal
installments of $637,500 each on the last day of each Fiscal Quarter, commencing on June 30, 2012.” 

(iv) Borrower shall give written notice or telephonic notice (followed immediately by written confirmation thereof) to the
Agent not later than (a) if the Incremental Term Loans are to be Base Rate Loans, 11:00 a.m. New York time on the Incremental Facility Effective Date, and (b) if the Incremental Term Loans are to be Base Rate Loans LIBOR Loans,
12:00 noon New York time at least three Business Days prior to the Incremental Facility Effective Date. Such notice shall be effective upon receipt by Agent, shall be irrevocable, and shall specify, in the form of a Borrowing Notice, the type
of borrowing and, in the case of a LIBOR borrowing, the initial Interest Period therefor. Not later than 1:00 p.m. New York time on the Incremental Facility Effective Date, each Incremental Term Lender shall provide Agent at the office
specified by Agent with immediately available funds covering such Lender’s applicable portion of the Incremental Term Loans and, so long as Agent has not received written notice that the conditions precedent set forth in paragraph 4 have
not been satisfied, Agent shall pay over the funds received by Agent to Borrower on the requested borrowing date. The failure of a Defaulting Lender to fund its portion of the Incremental Term Loans shall not relieve any other Incremental Term
Lender of its obligation to fund its portion thereof, but neither any other Lender nor Agent shall be responsible for the failure of any Defaulting Lender to fund its portion of the Incremental Term Loans required hereunder. 

4. Conditions Precedent to Incremental Facility Effective Date. The obligation of each Incremental Term Lender to
make any Incremental Term Loan is subject to the satisfaction of the following conditions precedent on or prior to the Incremental Facility Effective Date: 
 (i) receipt by the Agent of a counterpart of this Amendment executed by Borrower, Agent and each Incremental Term Lender; 

(ii) receipt by the Agent of a certificate of a senior financial officer of the Borrower dated the Incremental Facility
Effective Date: 
 (A) certifying and attaching the resolutions adopted by the Borrower approving or consenting
to the execution, delivery and performance by such Obligor of this Amendment; 

  
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 (B) certifying that, before and after giving effect to this Amendment and
the transactions contemplated hereby, 
 (x) the representations and warranties of Borrower set forth in the
Credit Agreement, as amended hereby, and in the other Loan Documents, are true and correct in all material respects as of the date hereof, with the same effect as though made on the date hereof (except to the extent such representations and
warranties expressly refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date), 
 (y) no Default or Event of Default has occurred and is continuing; and 
 (z) the Borrower would be in compliance on a pro forma basis with the covenants set forth in Section 7.14 as of the most recently ended Fiscal Quarter of the Borrower for which financial statements
are available as if the Incremental Term Loans had been made on the first day of such Fiscal Quarter, and providing calculations demonstrating the foregoing. 
 (iii) each Incremental Term Lender requesting a Note on or prior to the date of this Amendment shall have received a Note duly executed and delivered by the Borrower; 

(iv) payment by the Borrower of all reasonable and documented costs and expenses incurred by the Agent in connection with
this letter and the transactions contemplated hereby and otherwise owing pursuant to Section 10.4 of the Credit Agreement; 
 (v) the Agent shall have received notice of the borrowing of the Incremental Term Loans from the Borrower pursuant to paragraph 3(iii) above; and 

(vi) each of the conditions set forth in Section 4.2 of the Credit Agreement shall have been satisfied. 

  
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 5. Miscellaneous. 

(i) This Amendment may be executed by the parties hereto in several counterparts, each of which shall be an original and
all of which shall constitute together but one and the same agreement. 
 (ii) This Amendment is an amendment to
the Credit Agreement as contemplated by Section 2.1.3(e) of the Credit Agreement. 
 (iii) This Amendment
shall be a contract made under and governed by the internal laws of the State of NEW YORK. 
 (iv) THE BORROWER,
THE AGENT AND THE INCREMENTAL TERM LENDERS HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their duly authorized officers as of the day and year first above written. 
  

			
	COMPASS GROUP DIVERSIFIED HOLDINGS LLC
		
	By:	 	 /s/ James J. Bottiglieri

	Name:	 	James J. Bottiglieri
	Title:	 	Chief Financial Officer

  
 [Incremental
Facility Amendment] 

			
	TORONTO DOMINION (TEXAS) LLC,
	as Agent
		
	By:	 	 /s/ Bebi Yasin

	Name:	 	Bebi Yasin
	Title:	 	Authorized Signatory

  
 [Incremental
Facility Amendment] 

			
	TORONTO DOMINION (TEXAS) LLC,
	as Incremental Term Lender
		
	By:	 	 /s/ Bebi Yasin

	Name:	 	Bebi Yasin
	Title:	 	Authorized Signatory

  
 [Incremental
Facility Amendment] 

 Schedule I 
 Incremental Term Lenders and Incremental Term Loans 
  

					
	 Incremental Term Lender
	  	Incremental Term Loan Amount	 
	 Toronto Dominion (Texas) LLC
	  	$	30,000,000	  
	 Total:
	  	$	30,000,000Amendment dated March 29, 2012 to the Employment Agreement

 Exhibit 10.1 
 AMENDMENT TO EMPLOYMENT AGREEMENT 
 Reference is made to the Employment
Agreement between CVS Caremark Corporation (the “Company”) and Per G.H. Lofberg, dated December 16, 2009 (the “Employment Agreement”). Pursuant to Section 7(f) of the Employment Agreement, the Company and the Executive
hereby amend the Employment Agreement as follows, effective immediately: 
  

	 	(1)	Section 1(a) is amended by changing December 31, 2012 to December 31, 2013. 

 

	 	(2)	Section 2(b) is amended to replace the first sentence of such paragraph with the following two sentences: 

Until August 31, 2012, Executive shall have and perform such duties, responsibilities, and authorities as are specified by the
Company from time to time and as are consistent with his position as Executive Vice President, CVS Caremark and President, Pharmacy Benefit Services. As of September 1, 2012, Executive shall have and perform such duties, responsibilities, and
authorities as are specified by the Company from time to time and as are consistent with his position as Executive Vice President, CVS Caremark. In each of the foregoing roles, Executive shall report to the Chief Executive Officer of the Company.

  

	 	(3)	Section 3(b) is amended to add the following sentence at the end of the paragraph: “For performance years 2012 and 2013, Executive’s target bonus
opportunity under the MIP shall be 150% of Base Salary. 

  

	 	(4)	Section 3(c) is amended to add the following sentence at the end of the paragraph: “In 2012, Executive’s award shall be granted 100% in stock
options.” 

  

	 	(5)	Section 4(c) is amended as follows: 

  

	 	a.	The heading of Section 4(c) shall read: “Termination by the Company Without Cause or by Executive for Good Reason On or Before December 31, 2012”.

  

	 	b.	Section 4(c)(i) is amended to add the words “on or before December 31, 2012” in the first line after the phrase “If Executive’s employment
is terminated” and before the phrase, “by Company under circumstances that constitute a ‘Termination Without Cause’”. 

  

	 	c.	Section 4(c)(iv) is amended to add the following sentence at the end of the paragraph: “Notwithstanding the foregoing, if such 30 day period commences in one
taxable year and extends into Executive’s next taxable year, no payments provided in this Section 4(c) shall commence prior to the second taxable year.” 

 

	 	d.	Section 4(c)(v) is amended to replace the words “during the Term of Agreement” with the words, “on or before December 31, 2012”

  

	 	(6)	A new Section 4(d) is added, which provides: 

 (d) Termination by the Company Without Cause or by Executive for Good Reason after December 31, 2012. 
 (i) Severance. If Executive’s employment is terminated after December 31, 2012 by the Company under circumstances that constitute a “Termination Without Cause” or by the
Executive under circumstances that constitute a “Termination by Executive for Good Reason,” each as defined in Section 4(c), then Executive shall be entitled to and his sole remedies under this Agreement shall be: 

(A) Base Salary earned through the Separation Date and benefits due to Executive upon termination in accordance with the
plans and policies of the Company; 
 (B) severance pay in the form of Executive’s Base Salary, paid on a
monthly basis at the monthly rate in effect on the Separation Date, for the period of time from the date of the termination of employment until December 31, 2013 (the “2013 Severance Period”); 

(C) pro rata MIP award for performance year 2013, determined in accordance with the MIP and paid at such time as awards
are paid to current employees generally; 

 (D) treatment of existing stock option, restricted stock unit, LTIP and PEP
awards in accordance with the ICP and the award agreements and plans, including any provisions relating to continued vesting during the 2013 Severance Period; 
 (E) continued participation in all medical, dental and vision insurance plans pursuant to COBRA (subject to Executive’s continued contribution at the same contribution rate as current employees
receiving like coverage) until the earlier of: (A) the end of the 2013 Severance Period; or (B) the date the Executive receives coverage under the plans and programs of a subsequent employer; provided that in the event that
Executive is entitled to such participation beyond the time that Executive may participate in the plans pursuant to COBRA, the Company shall pay to Executive a monthly cash amount equal, on an after-tax basis, to the amount that the Company
contributed on a monthly basis to continue Executive’s coverage under COBRA. 
 (iv) Release and
Compliance With Executive Covenants. Executive’s eligibility for and receipt of the payments and benefits set forth in this Section 4(d) is contingent on (A) Executive’s execution of the severance agreement provided by the
Company (which will include a full release of claims against the Company and reaffirmation of the Executive Covenants set forth in Section 5) within 30 days after the Separation Date and (B) Executive’s compliance with the Executive
Covenants set forth in Section 5. “Notwithstanding the foregoing, if such 30 day period commences in one taxable year and extends into Executive’s next taxable year, no payments provided in this Section 4(d) shall commence prior
to the second taxable year.” 
 (v) Exclusivity of Severance Payments. Upon termination of the
Executive’s employment after December 31, 2012 but not later than December 31, 2013, Executive shall not be entitled to any severance payments or severance benefits from the Company or any payments by the Company on account of any
claim by Executive of wrongful termination, including claims under any federal, state or local human and civil rights or labor laws, other than the payments and benefits provided in this Section 4(d). 

(vi) Sunset of Severance Entitlement. Executive shall not be entitled to the benefits and payments referred to in
Section 4(d) above for any termination of employment that occurs after December 31, 2013. 
  

	 	(7)	Section 5(a) is replaced in its entirety with the following language: 

(a) Non-Competition. During Executive’s employment by the Company or one of its subsidiaries and during the
Non-Competition Period following the termination of Executive’s employment for any reason, Executive will not, directly or indirectly, engage in Competition or provide Consulting or Audit Services within the Restricted Area. 

(i) Engaging in “Competition” shall mean providing services to a Competitor of the Company (whether as an
employee, independent contractor, consultant, principal, agent, partner, officer, director, investor, or shareholder, except as a shareholder of less than one percent of a publicly traded company) that: (i) are the same or similar in function
or purpose to the services Executive provided to the Company during the last two years of his employment by the Company, and/or (ii) will likely result in the disclosure of Confidential Information to a Competitor or the use of Confidential
Information on behalf of a Competitor. 
 (ii) A “Competitor” for purposes of this Agreement shall
mean any person, corporation or other entity that competes with one or more of the business units of the Company. As of the Effective Date, it is understood that the Company’s business units include: (i) pharmacy benefits management
(“PBM”), including the administration of pharmacy benefits for businesses, government agencies and health plans; mail order pharmacy; specialty pharmacy; and Medicare Part D services; (ii) “Retail Pharmacy,” which
includes the sale of prescription drugs as well as over-the-counter medications, health, beauty, and other convenience items at retail; and (iii) basic acute health care clinics (“MinuteClinic”). It is understood and agreed that
Retail Pharmacy Competitors include but are not limited to chain drug store companies such as Walgreen Co. and Rite Aid Corporation, as well as mass merchants that include Retail Pharmacies, including but not limited to, Wal-Mart Stores, Inc. and
Target Corp., as well as food/drug combinations 

 
such as The Kroger Co. and Supervalu Inc. It is further understood and agreed that PBM Competitors include, but are not limited to, Medco Health Solutions, Inc., Express Scripts, Inc., SXC Health
Solutions Corp., and Catalyst, Inc., as well as health plans that provide PBM services that compete with the Company’s PBM business. A person or entity shall not be considered a Retail Pharmacy Competitor if such entity derives annual gross
revenues from its business in an amount that is less than 5% of the Company’s gross revenues from its Retail Pharmacy business. A person or entity shall not be considered a PBM Competitor unless it provides products or services that are offered
by or compete with the products or services offered by CVS Caremark’s PBM business. 
 (iii)
“Consulting or Audit Services” shall mean any activity that involves providing audit review or other consulting or advisory services with respect to any relationship between the Company and any third party, including but not limited to any
PBM clients, and that is likely to result in the use or disclosure of Confidential Information. For purposes of this Agreement, providing Consulting or Audit Services shall expressly include, but is not limited to, providing such services for Aon
Hewitt, Towers Watson, and/or Mercer, in connection with their PBM consulting business. 
 (iv) The
“Non-Competition Period” shall be the period of twenty-four (24) months following the termination of Executive’s employment with the Company for any reason. 

(v) “Restricted Area” refers to those states within the United States in which the Company conducts its
business, as well as the District of Columbia and Puerto Rico. 
  

	 	(8)	Section 5(b) is replaced in its entirety with the following language: 

 

	 	(b)	Non-Solicitation. 

 (i) During Executive’s employment by the Company or one of its subsidiaries and during the Non-Solicitation Period, which shall be twenty-four (24) months following the termination of
Executive’s employment with the Company for any reason, Executive will not, unless a duly authorized officer of the Company gives him written authorization to do so, interfere with the Company’s business relationships with a Covered
Customer by soliciting or communicating (regardless of who initiates the communication) with a Covered Customer to induce or encourage the Covered Customer to (i) stop doing business or reduce its business with the Company, or (ii) buy a
product or service that competes with a product or service offered by the Company’s PBM business. A “Covered Customer” is a customer (person or entity) of the Company’s PBM business with which Executive had business-related
contact or dealings, or about and/or from which Executive received Confidential Information, during the two years prior to Executive’s termination with the Company. A Covered Customer does not include a customer that has fully and finally
decided to cease doing any business with the Company independent of any conduct or communications by Executive or breach of these Executive Covenants, and that has, in fact, ceased doing any business with the Company. Nothing in this Paragraph shall
prevent Executive from working as a staff pharmacist or in another Retail Pharmacy position wherein he would be providing or selling prescriptions or other products directly to consumers. 

(ii) Executive also agrees that during the Non-Solicitation Period, Executive will not interfere with the Company’s
relationship with its Business Partners by soliciting or communicating (regardless of who initiates the communication) with a Business Partner to induce or encourage the Business Partner to stop doing business or reduce its business with the
Company, unless a duly authorized officer of the Company gives Executive written authorization to do so. “Business Partner” means a supplier, manufacturer, and/or pharmaceutical company (person or entity) with whom the Company has a
business relationship and with which Executive had business-related contact or dealings, or about which Executive received Confidential Information, in the two years prior to the termination of Executive’s employment with the Company. A
Business Partner does not include a supplier, manufacturer, and/or pharmaceutical company that has fully and finally decided to terminate its business relationship with the Company independent of any conduct or communications by Executive or breach
of these Executive Covenants, and which has, in fact, ceased doing any business with the Company. 
 (iii)
During the Non-Solicitation Period, Executive will not interfere with the Company’s relationship with any employee of the Company by: (i) soliciting or communicating with the employee to induce or encourage him or her to leave the
Company’s employ (regardless of who first initiates the 

 
communication); (ii) helping another person or entity evaluate such employee as an employment candidate; or (iii) otherwise helping any person or entity hire an employee away from the
Company unless a duly authorized officer of the Company gives Executive written authorization to do so. Where required by law, the foregoing restriction will only apply to employees with whom Executive had material contact or about whom Executive
received Confidential Information within the two years prior to the termination of Executive’s employment with the Company. 
  

	 	(9)	Section 7(g) is replaced in its entirety with the following language: 

(g) Taxation. The Company makes no guarantees or representations with respect to the taxability of any payments
set forth herein. Nevertheless, the Executive and Company agree that it is the intent of the parties that this Agreement not violate any applicable provision of, or result in any additional tax or penalty under, Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), and that to the extent any provisions of this Agreement do not comply with such Section 409A the parties will make such changes as are mutually agreed upon in order to comply with
Section 409A. In all events, to the extent required to avoid a violation of the applicable rules under all Section 409A by reason of Section 409A(a)(2)(B)(i) of the Code, payment of any amounts subject to Section 409A of the Code
shall be delayed until the relevant date of payment that will result in compliance with the rules of Section 409A(a)(2)(B)(i) of the Code. Notwithstanding any provision of this Agreement to the contrary, for purposes of any provision of this
Agreement providing for the payment of any amounts or benefits upon or following a termination of employment, references to the Executive’s “termination of employment” (and corollary terms) with the Company shall be construed to refer
to Executive’s “separation from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)). Whenever payments under this Agreement are to be made in installments (e.g., severance payments in the form of monthly
salary continuation), each such installment shall be deemed to be a separate payment for purposes of Section 409A. With respect to any reimbursement or in-kind benefit arrangements that constitute deferred compensation for purposes of
Section 409A, except as otherwise permitted by Section 409A, the following conditions shall be applicable: (i) the amount eligible for reimbursement, or in-kind benefits provided, under any such arrangement in one calendar year may
not affect the amount eligible for reimbursement, or in-kind benefits to be provided, under such arrangement in any other calendar year (except that the health and dental plans may impose a limit on the amount that may be reimbursed or paid),
(ii) any reimbursement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to reimbursement or in-kind benefits is not subject to liquidation or
exchange for another benefit. Any payments that qualify for the “short-term deferral” exception under Treasury Regulations 1.409A-1(b)(9)(iii), or another exception under Section 409A will be paid under the applicable exception to the
greatest extent possible. 
  

	 	(10)	The parties hereto acknowledge, confirm and agree that, except as set forth above, the provisions of the Employment Agreement have been, are and shall remain in full
force and effect and binding on the parties in accordance with their terms. 

 IN WITNESS WHEREOF, CVS Caremark
Corporation has caused this instrument of amendment to be executed by its duly authorized officer, and the Executive has hereunto put his hand, this 29th day of March, 2012. 

 

			
	CVS CAREMARK CORPORATION
		
	By:	 	 /s/ Lisa G. Bisaccia

		 	Lisa G. Bisaccia
		 	Senior Vice President, Chief Human Resources Officer
	
	Per G.H. Lofberg
	
	 /s/ Per G.H. Lofberg

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