Document:

Exhibit 10.12

 Exhibit 10.12 
  
 SWING LINE NOTE 
  

			
	$5,000,000	  	Winston-Salem, North Carolina
	 	  	March     , 2004

  
 For value received,
AMERICAN CAPITAL STRATEGIES, LTD., (the “Borrower”) promises to pay to the order of BRANCH BANKING AND TRUST COMPANY (the “Bank”), for the account of its Lending Office, the principal sum of FIVE MILLION AND NO/100 DOLLARS
($5,000,000), or such lesser amount as shall equal the unpaid principal amount of each Swing Line Advance made by the Bank to the Borrower pursuant to the Credit Agreement referred to below, on the dates and in the amounts provided in the Credit
Agreement. The Borrower promises to pay interest on the unpaid principal amount of this Note on the dates and at the rate or rates provided for in the Credit Agreement. Interest on any overdue principal of and, to the extent permitted by law,
overdue interest on the principal amount hereof shall bear interest at the Default Rate, as provided for in the Credit Agreement. All such payments of principal and interest shall be made in lawful money of the United States in federal or other
immediately available funds at the office of Branch Banking and Trust Company, 1909 K Street, NW, Washington, D.C. 20006, or such other address as may be specified from time to time pursuant to the Credit Agreement. 
  
 All Swing Line Advances made by the Bank, the interest rates from time to
time applicable thereto and all repayments of the principal thereof shall be recorded by the Bank and, prior to any transfer hereof, endorsed by the Bank on the schedule attached hereto, or on a continuation of such schedule attached to and made a
part hereof; provided that the failure of the Bank to make, or any error of the Bank in making, any such recordation or endorsement shall not affect the obligations of the Borrower hereunder or under the Credit Agreement. This Note is secured by,
among other security, the Credit Agreement and the other Transaction Documents, as the same may be modified or amended from time to time. 
  
 This Note is the Swing Line Note referred to in the Credit Agreement dated as of March     , 2004 among Borrower, the banks
listed therein, Wells Fargo Bank, National Association, as the Backup Servicer and as the Collateral Custodian and Branch Banking and Trust Company, as Administrative Agent, Swing Line Lender and as a Bank (as the same may be amended or modified
from time to time, the “Credit Agreement”). Terms defined in the Credit Agreement are used herein with the same meanings. Reference is made to the Credit Agreement for provisions for the prepayment and the repayment hereof and the
acceleration of the maturity hereof. 
  
 The Borrower hereby
waives presentment, demand, protest, notice of demand, protest and nonpayment and any other notice required by law relative hereto, except to the extent as otherwise may be expressly provided for in the Credit Agreement. 
  
 The Borrower agrees, in the event that this Note or any portion hereof is
collected by law or through an attorney at law, to pay all reasonable costs of collection, including, without limitation, reasonable attorneys’ fees. 
  

 IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed under seal, by its duly
authorized officer as of the day and year first above written. 
  

					
	 AMERICAN CAPITAL STRATEGIES, LTD.

			
	By:	 	 	 	 (SEAL)

	 	 	
	 	 
	 Title:
	 	 	 	 

  

 2 

 Swing Line Note (cont’d) 
 SWING LINE ADVANCES AND PAYMENTS OF PRINCIPAL 
  

									
	 Date

	 	 Interest
 Rate

	 	 Amount
 of Advance

	  	 Amount of
 Principal Repaid

	  	 Notation
 Made By

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

	 	 	 	 	 	  	 	  	 
	

  

 3Survivor Benefit Agreement

 Exhibit 10.6 
  
 SURVIVOR BENEFIT AGREEMENT 
  
 This Survivor Benefit Agreement (“Agreement”) is made and entered into on February 25, 2004, by and between Caremark Rx, Inc. (hereinafter
referred to as “the Company”) and E. Mac Crawford (hereinafter referred to as “Executive”). 
  
 WHEREAS, the Company and the Executive desire to enter into this Agreement to provide to the beneficiaries of the Executive a certain survivor benefit
upon the death of the Executive under the terms and conditions set forth herein. 
  
 NOW THEREFORE, the parties hereto agree as follows: 
  
 1. Definitions. 
  
 (a) “Beneficiary” shall mean the person(s) designated pursuant to Section 6 to receive the Death Benefit under this Agreement. 
  
 (b) “Death Benefit” shall mean the benefit payable under the Agreement to the Beneficiary
pursuant to Section 2. 
  
 (c)
“Employment Agreement” shall mean the employment agreement executed by and between the Company and the Executive, including any amendments thereto, in effect as of the date of this Agreement. 
  
 2. Death Benefit. 
  
 (a) The Death Benefit shall be paid to the Beneficiary in a lump sum cash
payment by the Company no later than 10 days following the death of the Executive. 
  
 (b) The Death Benefit shall be equal to the sum of (i) the Executive’s then-current Base Salary at the time of Executive’s death for the then-remaining term of the Employment Agreement, but in no event less
than three (3) years, and (ii) the Executive’s then-current amount of Bonus for the then-remaining term of the Employment Agreement (pro-rated for any partial calendar year during such remaining term), but in no event less than three (3) years.
To the extent the Death Benefit becomes payable at any time prior to the insurance policy transfer contemplated in Section 4 hereof, the Company also shall be obligated to pay to the Beneficiary a tax gross up amount equal to the amount of federal
income taxes recognized on the payment of the Death Benefit and such gross up amount. 
  
 (c) The parties to this Agreement hereby acknowledge and agree that the payment of benefits under this Agreement shall offset any obligations of the Company to pay a death benefit upon the death of the Executive in
accordance with the provisions of Section 10(d) of the Employment Agreement or any successor thereto. 
  
 (d) The terms “Base Salary” and “Bonus” shall have the same meanings ascribed thereto in the Employment Agreement. 
  

 3. Offset of Other Insurance Payments. Notwithstanding any provisions of this Agreement to
the contrary, in the event the Beneficiary receives any death benefits under an insurance policy (regardless of the owner of such policy) for which the insurance premiums have been paid directly by the Company, then the amount of the Death Benefit
payable hereunder shall be reduced by the amount of the death benefit payable under such insurance policy. Notwithstanding any provisions hereof to the contrary, the Death Benefit shall not be reduced by any death benefits payable on behalf of the
Executive under any group term insurance program sponsored by the Company. 
  
 4. Termination of Employment by the Executive. Upon the termination of the Executive’s employment with the Company for any reason other than Executive’s death, the Company shall be obligated to
transfer to the Executive ownership of an insurance policy with a specified minimum death benefit at the time of such transfer equal to $ 17 million and a minimum cash value at the time of such transfer determined in accordance with this Section 4.
The required amount of the minimum cash value under such insurance policy shall be determined by reference to the date on which the Executive terminates employment with the Company in accordance with the terms of Attachment A to the Agreement. Upon
the completion of such transfer, the obligations of the Company to pay the Death Benefit under this Agreement shall cease. To the extent the Executive recognizes taxable income for federal tax purposes at the time of the transfer to the Executive of
ownership of an insurance policy as provided hereunder, the Company also shall be obligated to pay to the Executive at the time of such transfer a tax gross up amount equal to the amount of federal income taxes so recognized at the time of the
transfer, including such taxes attributable to the payment of the gross up amount. 
  
 5. General Obligation of Company. The Death Benefit payable under this Agreement shall be paid solely from the general assets of the Company and shall be considered an unfunded promise to pay. Neither
the Executive nor the Beneficiary shall have any right in or claim to any asset of the Company under this Agreement other than as a general unsecured creditor of the Company. The Company may purchase and maintain insurance contracts on the life of
the Executive to pay the Death Benefit. Except to the extent set forth in Section 4, the Executive and his Beneficiary shall have no interest in any such insurance contract. 
  
 6. Designation of Beneficiary. The Executive shall designate a Beneficiary to receive the Death Benefit under
the Agreement by executing a beneficiary designation form in writing, as provided by or acceptable to the Company. The Executive may change such Beneficiary designation or add a secondary or contingent Beneficiary, provided such change or
designation is in writing (on a form provided by or acceptable to the Company) and is received by the Company before the death of the Executive. An Executive may irrevocably assign his or her rights to designate and change the Beneficiary. In the
absence of any Beneficiary designation, or the failure of any designated Beneficiary to survive the Executive, the Beneficiary shall be the Executive’s estate. 
  
 7. Amendment or Termination of Agreement. This Agreement may be amended or terminated by the parties only by
mutual action taken in a writing executed by both parties hereto. 
  

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 8. Successors. This Agreement shall be binding upon and shall inure to the benefit of the
Company, its participating subsidiaries and their respective successors, assigns, and legal representatives. 
  
 9. State Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Alabama to the extent not
preempted by federal law. 
  
 10. Withholding. The
Company shall be authorized to withhold any federal or state employment and income taxes payable with respect to any compensation paid to the Executive or the Beneficiary under the terms of this Agreement. 
  
 11. Claims. Any claim by the Executive or the Beneficiary for
benefits under this Agreement should be submitted to the Company. To the extent permitted by applicable law, any dispute in connection with any claim under this Agreement shall be handled in accordance with the dispute resolution provisions
contained in Section 15 of the Employment Agreement (or any successor provision thereto). 
  
 12. Entire Agreement. This Agreement supersedes all prior negotiations and agreements, proposed or otherwise, whether written or oral, between the parties concerning the matters covered herein, and this
Agreement constitutes the entire agreement between the parties with respect thereto. No person has any authority to make any representation or promise on behalf of any of the parties not set forth herein and this Agreement has not been executed in
reliance upon any representations or promises except those contained herein. 
  
 13. Headings Not Controlling. Headings in this Agreement are used for ease of reference and are not controlling of the interpretation of this Agreement. IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first above written. 
  

			
		
	 03/02/2004

 Date
	 	 /s/ E. Mac Crawford

 E. Mac Crawford

	
	ON BEHALF OF CAREMARK RX, INC.
		
	 02/25/2004

 Date
	 	 /s/ Harris Diamond

 Harris Diamond, Director and

	 	 	Compensation Committee Chairman
		
	 03/03/2004

 Date
	 	 /s/ Kirk McConnell

 Kirk McConnell, EVP/CAO

  

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 ATTACHMENT A 
  
 The required amount of the minimum cash value under the insurance policy transferred to the Executive, measured at the time
of such transfer, under Section 4 of the Agreement upon Executive’s termination of employment shall be determined by reference to the date on which the Executive terminates employment, for whatever reason, with the Company in accordance with
the following chart: 
  

			
	 Date of Termination

	 	 Required Minimum Cash Value

	 On or Before November 1, 2004
	 	$1,226,592
	 On or Before November 1, 2005
	 	$2,015,860
	 On or Before November 1, 2006
	 	$2,829,078
	 On or Before November 1, 2007
	 	$3,666,256
	 After November 1, 2007
	 	$4,527,827

  

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