Document:

2014Q2_Ex_10.1

EXECUTION COPY

Consulting Agreement

This Consulting Agreement (this “Agreement”) is made and entered into this 18th day of June, 2014 (the “Effective Date”), by and between PDC Energy, Inc., a Nevada corporation (the “Company”), and James M. Trimble (the “Executive”).

WHEREAS, Executive is the Chief Executive Officer and President of the Company as well as a member of the Company’s Board of Directors (the “Board”); and

WHEREAS, Executive and the Company desire for Executive (i) to step down as President immediately, (ii) to step down as Chief Executive Officer of the Company effective December 31, 2014, (iii) to retire from the Company shortly thereafter, and (iv) following such retirement to perform certain transitional consulting services in addition to continuing as a member of the Company’s Board, and the Company and Executive desire to enter into this agreement governing the terms and conditions of such arrangement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and obligations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and accepted, the parties hereto, intended to be legally bound, agree as follows:

		
	1.
	Employment through January 19, 2015.

		
	a.
	Position and Duties; Term.  Executive hereby resigns as President of the Company as of the Effective Date but shall continue to be employed by the Company as Chief Executive Officer through December 31, 2014, and shall continue to have the responsibilities, duties, and authority attendant to such position as in effect immediately prior to the Effective Date; provided, however, that during the period between the Effective Date and December 31, 2014, Executive shall also perform such succession planning and transition activities as are reasonably requested by the Company’s Board and shall use his best efforts to ensure a smooth transition of his duties to the new Chief Executive Officer of the Company, who is expected to take office effective January 1, 2015.  Executive shall resign as an officer of the Company and of the Company’s Affiliates (as defined below) effective upon the close of business on December 31, 2014, but will continue on as an employee until January 19, 2015 in a non-officer capacity and with a title determined by the Chair of the Compensation Committee of the Board.  Executive agrees to tender his resignation as an employee of the Company’s Affiliates (as defined below) immediately upon termination of his employment with the Company for any reason.  For purposes of this Agreement, the term “Affiliate” shall have the meaning ascribed to such term in the PDC Energy Executive Severance Compensation Plan (the “Severance Plan”).

		
	b.
	Compensation.  Except as specifically provided otherwise in this Agreement, Executive’s base salary, annual bonus opportunity, employee benefits and perquisites, and other elements of compensation shall remain the same as those in effect immediately prior to the Effective Date.  However, Executive hereby agrees (i) that he shall cease to be a participant in the Severance Plan as of the Effective Date, and (ii) for the period between January 1, 2015 and January 19, 2015 his salary shall be reduced to a level commensurate with his then-current position with the Company.

3187458.6

		
	c.
	Amendments to Outstanding Equity Awards.  The amendments set forth in Exhibit A and Exhibit B shall be made to Executive’s outstanding equity compensation awards, effective as of the Effective Date.

		
	d.
	Early Termination of Employment.  Executive’s employment may be terminated prior to January 19, 2015 only in the following circumstances:

		
	i.
	Cause.  Executive’s employment may be terminated by the Company prior to January 19, 2015 for “Cause,” as defined in the Severance Plan.  In such event, Executive will receive only his base salary and such other amounts, reimbursements or benefits earned as of the date of termination (the “Accrued Obligations”).  In the event of Executive’s termination for Cause, Executive shall immediately tender his resignation as a member of the Company’s Board.

		
	ii.
	Death or Disability.  Executive’s employment may be terminated by the Company prior to January 19, 2015 as a result of Executive’s death or “Disability,” as defined in the Severance Plan.  In such event, Executive will receive the Accrued Obligations, and may be entitled to certain accelerated vesting under his outstanding equity incentive awards as a result of such death or Disability.  In the event of Executive’s termination as a result of his Disability, Executive shall immediately tender his resignation as a member of the Company’s Board.

		
	iii.
	Voluntary Termination.  Executive’s employment may be terminated prior to January 19, 2015 upon Executive voluntary resignation.  In such event, Executive will receive the Accrued Obligations.  In the event of Executive’s voluntary resignation, Executive shall immediately tender his resignation as a member of the Company’s Board.

		
	e.
	Post-Employment Cooperation.  At the Company's reasonable request, Executive shall use his good faith efforts to cooperate with the Company, its Affiliates (as defined in the Severance Plan), and each of its and their respective attorneys or other legal representatives ("Attorneys") in connection with any claim, litigation or judicial or arbitral proceeding which is material to the Company or its Affiliates and is now pending or may hereinafter be brought against the Company or its Affiliates (or any of their officers, directors, agents, or assigns) by any third party; provided, that, the Executive’s cooperation is essential to the Company's case. The Executive’s duty of cooperation will include, but not be limited to: (a) meeting with the Company's and/or its Affiliates' Attorneys by telephone or in person at mutually convenient times and places in order to state truthfully the Executive’s knowledge of matters at issue and recollection of events; (b) appearing at the Company's, its Affiliates' and/or their Attorneys' request (and, to the extent possible, at a time convenient to the Executive) as a witness at depositions or trials, without necessity of a subpoena, in order to state truthfully the Executive’s knowledge of matters at issue; and (c) signing at the Company's, its Affiliates' and/or their Attorneys' request, declarations or affidavits that truthfully state matters of which the Executive has knowledge. The Company shall reimburse the Executive for the reasonable expenses incurred by him in the course of his cooperation hereunder.

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	2.
	Post-Employment Consulting Services.  The following Section 2 shall apply if, and only if, Executive retires on January 19, 2015 as contemplated by Section 1a, above.

		
	a.
	Consulting Services.  

		
	i.
	Continued Consultation.  During the period commencing on January 20, 2015 and ending on December 31, 2015, unless earlier terminated as provided in Section 2c. of this Agreement (the “Consulting Term”), Executive agrees to render consulting services to the Company on such matters as the Chairman of the Board or the Chief Executive Officer of the Company may request within Executive’s knowledge and experience related to the businesses of the Company and its Affiliates (collectively, the “Consulting Services”). The Consulting Services shall include, without limitation, assisting the new Chief Executive Officer with his transition, serving as a strategic advisor to the Chief Executive Officer and the Board, advising on the Company’s strategic planning process, assisting with preparation for Board meetings, and advising and assisting on such other matters as may be requested by the Chairman of the Board or the Chief Executive Officer and agreed to by Executive, which agreement may not be unreasonably withheld. 

		
	ii.
	Location. The Consulting Services shall be rendered at a location or locations mutually agreeable to the parties; provided, that Executive will not be provided dedicated office space and secretarial support during the Consulting Term and Executive acknowledges that, during the Consulting Term he will no longer be eligible to participate in the personal benefits provided to him in his capacity as Chief Executive Officer and President (including, without limitation, use of any corporate aircraft).

		
	b.
	Remuneration.

		
	i.
	Cash.  As compensation for Executive’s performance of the Consulting Services, the Company, having obtained the appropriate approvals from the Compensation Committee of the Board, agrees to pay Executive $350,000 per calendar quarter during the Consulting Term (the “Consulting Fees”).  For avoidance of doubt, the Consulting Fees for the first calendar quarter (January 20, 2015 through March 30, 2015) shall not be pro-rated for the January 20th start date and shall also be $350,000.  The Consulting Fees will be paid on or within 15 days following the last day of each calendar quarter during which Consulting Services are performed during the Consulting Term.

		
	ii.
	Continued Medical Coverage. Provided Executive timely elects continuation coverage under the Consolidated Omnibus Revenue Reconciliation Act of 1986, as amended (“COBRA”), the Company shall pay the full cost of such COBRA coverage for Executive and his covered spouse and/or dependents for the lesser of (i) 18 months, or (ii) the duration of such COBRA coverage.  In lieu of the foregoing, the parties may agree to make alternative arrangements for continued healthcare coverage for Executive and Executive’s spouse and/or dependents, provided such alternative arrangements are not more costly to the Company in the aggregate than the payment of COBRA premiums contemplated by the previous sentence.  Executive shall be solely responsible for all taxes that may apply to the Company’s payment of the cost of COBRA coverage or other arrangements provided pursuant to this Section.

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	iii.
	Reimbursement of Expenses.  The Company shall reimburse Executive for all reasonable out-of-pocket business expenses incurred by him in connection with the performance of the Consulting Services following his delivery of documentation of such expenses in the manner required under the Company’s applicable travel and expense policies as in effect from time to time.  In addition, as soon as administratively practicable (and in no event later than April 1, 2015), the Company shall arrange and pay for the transport of Executive’s personal effects from its corporate headquarters in Denver, Colorado to Executive’s family home.

		
	c.
	Termination of Transition Services.  The Consulting Term will end prior to December 31, 2015 upon the occurrence of any of the following events:  

		
	i.
	The Company terminates the Consulting Services for any reason other than for Cause (as defined in the Severance Plan) and other than for Disability (as defined in the Company’s Amended and Restated 2010 Long-Term Equity Compensation Plan), which the Company may do at any time;  

		
	ii.
	The Company, by written notice to Executive, terminates the Consulting Services due to Executive’s Disability (as defined in Section 2.c.i.).  

		
	iii.
	The Company terminates the Consulting Services for Cause (as defined in the Severance Plan).  

		
	iv.
	Executive dies.  

		
	v.
	Executive voluntarily terminates the Consulting Services for any reason, which Executive may do at any time with at least 30 days’ advance notice to the Company.  

		
	d.
	 Effects of Termination.  

		
	i.
	If the Consulting Services are terminated under Section 2.c.i., 2.c.ii, or 2.c.iv. of this Agreement, the Company shall perform all of its obligations under Section 2.b. of this Agreement including paying any remaining Consulting Fees through the end of the Consulting Term.  

		
	ii.
	If the Consulting Services are terminated under Section 2.c.iii. or 2.c.v. of this Agreement, the Company shall have no further obligations under Section 2.b. of this Agreement other than to pay pro-rata any Consulting Fees earned as of the date of termination of the Consulting Term.

		
	e.
	Independent Contractor Status. During the Consulting Term, Executive shall be an independent contractor, and not an employee or agent of the Company or any of its Affiliates.  Executive acknowledges and agrees that, as an independent contractor, he shall bear sole responsibility for rendering his services, including payments of all taxes and other governmental payments required for anyone to operate a business or consultancy, including without limitation, the payment of all federal, state and local income taxes, self-employment taxes, and unemployment and workers compensation payments.  Executive shall not have authority to assume, create or incur any liabilities or obligations of any kind against or on behalf of the Company or its Affiliates during the Consulting Term.

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	f.
	Release Required.  Notwithstanding anything to the contrary in this Section 2, as a condition precedent to Executive’s right to receive any Consulting Fees or to receive any other remuneration set forth in Section 2.b. above, Executive shall sign a full release of claims in a form satisfactory to the Company no later than March 30, 2015.  The release shall be provided to Executive no later than January 26, 2015 and shall cover the period of Executive’s employment with the Company.  The release shall not cover payments due under this Agreement or any other remuneration that may be earned by Executive from the Company following his termination of employment.

		
	3.
	Restrictive Covenants.

		
	a.
	Confidential Material. Executive shall not, directly or indirectly, either during the term of his employment or thereafter, disclose to anyone (except in the regular course of the Company’s business or as required by law), or use in any manner, any information acquired by the Executive during his employment by the Company or during the Consulting Term with respect to any clients or customers of the Company or any confidential, proprietary or secret aspect of the Company’s operations or affairs unless such information has become public knowledge other than by reason of actions, direct or indirect, of the Executive. Information subject to the provisions of this paragraph will include, without limitation:

		
	i.
	Names, addresses and other information regarding investors in the Company’s or its Affiliates’ drilling programs;

		
	ii.
	Names, addresses and other information regarding investors who participate with the Company or its Affiliates in the drilling, completion or operation of oil and gas wells as joint venture partners, working interest owners or in any other form of ownership;

		
	iii.
	Lists of or information about personnel seeking employment with or who are currently employed by the Company or its Affiliates;

		
	iv.
	Maps, logs, drilling reports and any other information regarding past, planned or possible future leasing, drilling, acquisition or other operations that the Company or its Affiliates have completed or are investigating or have investigated for possible inclusion in future activities; and

		
	v.
	Any other information or contacts relating to the Company’s or its Affiliates’ drilling, development, fund-raising, purchasing, engineering, marketing, merchandising and selling activities.

		
	b.
	Return of Confidential Material. All maps, logs, data, drawings and other records and written and digital material prepared or compiled by the Executive or furnished to the Executive during the term of his employment or during the Consulting Term will be the sole and exclusive property of the Company, and none of such material may be retained by the Executive upon termination of his employment or following the end of the Consulting Term, if later. The aforementioned materials include materials on the Executive’s personal computer. The Executive shall return to the Company or destroy all such materials on or prior to the applicable date of termination. Notwithstanding the foregoing, the Executive will be under no obligation to return or destroy public information.

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	c.
	Non-Compete. The Executive shall not directly, prior to December 31, 2016, engage in any Competitive Business (as defined below) within any county or parish or adjacent to any county or parish in which the Company or an Affiliate owns any oil and gas interests; provided, however, that the ownership of less than five percent (5%) of the outstanding capital stock of a corporation whose shares are traded on a national securities exchange or on the over-the-counter market shall not be deemed engaging in a Competitive Business. “Competitive Business” shall mean typical oil and gas exploration and production activities, including oil and gas leasing, drilling or any other business activities that are the same as or similar to the Company’s or an Affiliate’s business operations as its business exists on the applicable date of termination.

		
	d.
	No Solicitation. The Executive shall not, directly or indirectly, prior to December 31, 2016, (i) solicit, directly or indirectly, the services of any person who was a full-time employee of the Company, its subsidiaries, divisions or affiliates, or otherwise induce such employee to terminate or reduce such employment, or (ii) solicit the business of any person who was a client or customer of the Company, its subsidiaries, divisions or affiliates, in each case at any time during the last year of the term of employment. For purposes of this Agreement, the term “person” includes natural persons, corporations, business trusts, associations, sole proprietorships, unincorporated organizations, partnerships, joint ventures, limited liability companies or partnerships, and governments, or any agencies, instrumentalities or political subdivisions thereof.

		
	e.
	Remedies. The Executive acknowledges and agrees that the Company’s remedy at law for a breach or a threatened breach of the provisions herein would be inadequate, and in recognition of this fact, in the event of a breach or threatened breach by the Executive of any of the provisions of this Agreement, it is agreed that the Company will be entitled to equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy which may then be available, without posting bond or other security. The Executive acknowledges that the granting of a temporary injunction, a temporary restraining order or other permanent injunction merely prohibiting the Executive from engaging in any business activities would not be an adequate remedy upon breach or threatened breach of this Agreement, and consequently agrees upon any such breach or threatened breach to the granting of injunctive relief prohibiting the Executive from engaging in any activities prohibited by this Agreement. No remedy herein conferred is intended to be exclusive of any other remedy, and each and every such remedy will be cumulative and will be in addition to any other remedy given hereunder now or hereinafter existing at law or in equity or by statute or otherwise. In addition, in the event of any breach or suspected breach of the provisions of this Section 3, the Company shall have the right to suspend immediately any payments or benefits that may otherwise be due Executive pursuant to this Agreement.

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	4.
	Tax Provisions.

		
	a.
	409A.  The payments and benefits provided hereunder are intended to be exempt from or compliant with the requirements of Section 409A of the Code. Notwithstanding any provision of this Agreement to the contrary, in the event that the Company reasonably determines that any payments or benefits hereunder are not either exempt from or compliant with the requirements of Section 409A of the Code, the Company shall have the right to adopt such amendments to this Agreement or adopt such other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that are necessary or appropriate (i) to preserve the intended tax treatment of the payments and benefits provided hereunder, to preserve the economic benefits with respect to such payments and benefits, and/or (ii) to exempt such payments and benefits from Section 409A of the Code or to comply with the requirements of Section 409A of the Code and thereby avoid the application of penalty taxes thereunder; provided, however, that this Section does not, and shall not be construed so as to, create any obligation on the part of the Company to adopt any such amendments, policies or procedures or to take any other such actions or to indemnify Executive for any failure to do so.

		
	b.
	280G.  If it is determined that any payment or benefit provided to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, would be subject to the excise tax imposed by Code section 4999 or any interest or penalties with respect to such excise tax, then the parties agree to apply the optimization provisions set forth in Article VI of the Severance Plan to Executive’s payments and benefits.

		
	5.
	General Provisions.

		
	a.
	Successors.  This Agreement shall bind any successor of the Company, its assets or its businesses (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the Company would be obligated under this Agreement if no succession had taken place. In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by this Agreement, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company’s obligations under this Agreement, in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. The term “Company,” as used in this Agreement, shall mean the Company as hereinbefore defined and any successor or assignee to the business or assets which by reason hereof becomes bound by this Agreement.  

 
		
	b.
	Binding Effect.  This Agreement will inure to the benefit of and be enforceable by the Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If the Executive should die while any amounts would still be payable to him hereunder if he had continued to live, all such amounts, unless otherwise provided herein, will be paid in accordance with the terms of this Agreement to the Executive’s estate.

		
	c.
	Amendment, Modification, Waiver.  No amendments or variations of the terms and conditions of this Agreement will be valid unless the same is in writing and signed by each of the parties hereto.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer of the Company as may be specifically designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

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	d.
	Survival.  The provisions of Section 3 of this Agreement will continue to be binding upon the Executive and the Company in accordance with their terms, notwithstanding the termination of the Executive employment or Consulting Services with the Company for any reason or the expiration of this Agreement.

		
	e.
	Severability.  The invalidity or unenforceability of any provision of this Agreement, whether in whole or in part, shall not in any way affect the validity and/or enforceability of any other provision contained herein. Any invalid or unenforceable provision shall be deemed severable to the extent of any such invalidity or unenforceability. It is expressly understood and agreed that while the Company and the Executive consider the restrictions contained in this Agreement reasonable for the purpose of preserving for the Company the good will, other proprietary rights and intangible business value of the Company, if a final judicial determination is made by a court having jurisdiction that the time or territory or any other restriction contained in this Agreement is an unreasonable or otherwise unenforceable restriction against the Executive, the provisions of such clause will not be rendered void but will be deemed amended to apply as to maximum time and territory and to such other extent as such court may judicially determine or indicate to be reasonable.

		
	f.
	Governing Law.  This Agreement will be construed and enforced pursuant to the laws of the State of Colorado without regard to its conflicts of law or choice of law provisions which would result in the application of the law of any other jurisdiction.

		
	g.
	Attorney Fees; Interest. The Company agrees to pay as incurred, to the full extent permitted by law, all legal fees and expenses which Executive may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive, or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Executive about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the Code, to the extent such contest arises out of Executive’s termination of employment or termination of the Consulting Term following a Change of Control (as defined in the Severance Plan). The foregoing right to legal fees and expenses shall not apply to any contest brought by Executive (or other party seeking payment under this Agreement) that is found by a court of competent jurisdiction to be frivolous or vexatious.

		
	h.
	Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute but one document.

[Remainder of this Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the Company and the Executive have duly executed this Retirement Agreement as of the date first above written.

	
				
	 

	 
	 
	 
	 

	Company
	 
	Employee
	 

	 
	 
	 
	 

	PDC Energy, Inc.
	 
	 
	 

	 
	 
	 
	 

	By: /s/ Kimberly Luff  Wakim
	 
	/s/ James M. Trimble 
	 

	       Kimberly Luff Wakim
	 
	James M. Trimble
	 

	       Chair of the Compensation Committee
	 
	 
	 

Signature Page to Consulting Agreement

Exhibit A

AMENDMENTS TO GRANT AGREEMENT DATED JANUARY 16, 2012

The following amendments are hereby made to the Grant Agreement between PDC Energy, Inc. and James M. Trimble, dated January 16, 2012, which documents the grant of certain shares of restricted stock and certain stock appreciation rights by PDC Energy, Inc. to Mr. Trimble.  The amendments shall be effective as of June 18, 2014.

A.    Section 5 under the heading entitled “Restricted Stock” is hereby deleted and replaced in its entirety with the following:

5.    If you voluntarily terminate your employment other than for Good Reason or your employment is terminated for Cause, any non-vested shares of Restricted Stock will be forfeited as of the date of termination.  Except as specifically provided otherwise, for purposes of this Grant Agreement, the terms “Good Reason” and “Cause” shall have the meanings set forth in the PDC Energy Executive Severance Compensation Plan (the “Severance Plan”).
B.    Section 6 under the heading entitled “Restricted Stock” is hereby deleted and replaced in its entirety with the following:
6.    In the event of the termination of your employment due to death or Disability, as defined in the Severance Plan, or due to a termination without Cause or your voluntary resignation for Good Reason (as set forth in Section 5 above), any restrictions imposed on the Restricted Stock will lapse and any non-vested shares of Restricted Stock will vest as of your date of termination.  
C.    The Section entitled “Stock Appreciation Rights” is hereby deleted in its entirety and replaced with the following:

A total of 32,959 SARs shall be granted to you as of the Grant Date with an exercise price of $30.19 per SAR (the “Exercise Price”), the fair market value of a share of the Company’s stock as of the Grant Date.  The SARs will vest in equal annual installments over three (3) years beginning on the first anniversary following the Grant Date as follows, provided you remain in the employment of the Company or an Affiliate from the Grant Date to the applicable Vesting Date, as set forth below:
	
		
	Number of SARs Vested
	Vesting Date

	10,986
	1/16/2013

	10,987
	1/16/2014

	10,986
	1/16/2015

In addition to the foregoing, you may be entitled to certain accelerated vesting in the following circumstances:
In the event of your death or Disability, as defined in the Severance Plan, while in the employment of the Company or an Affiliate, all non-vested SARs shall immediately vest and become exercisable upon your date of termination.  

A-1

If your employment is terminated by the Company without Cause or you voluntarily terminate employment for Good Reason, as those terms are defined in Section 5 above under the heading entitled “Restricted Stock,” all non-vested SARs shall immediately vest.   
In the event of a “Change in Control” (as defined in the Plan) while you are in the employment of the Company, all outstanding SARs will vest and become exercisable immediately prior to the Change in Control transaction.  
Expiration and Payment
SARs may be exercised at any point in time between the Vesting Date for such SAR and January 15, 2022.  Upon exercise, and subject to applicable tax withholding, you will be entitled to the difference between the fair market value of a share of the Company on the exercise date and the Exercise Price, multiplied by the number of SARs exercised (the “Appreciation Amount”).  Payment will be made to you in a number of shares which have a Fair Market Value on the exercise date equal to the Appreciation Amount.  Notwithstanding the foregoing, any amount that would otherwise be paid to you in fractional shares shall instead be paid to you cash.
The SARs may not be exercised by you unless at the time of the exercise you are an in the Continuous Service of the Company; provided, however that the SARs can be exercised following your termination of Continuous Service during the term of the SAR as outlined below.  SARs which do not become exercisable at the time of your termination of employment shall expire and no longer be in effect upon your date of employment termination.
For purposes of this Grant Agreement, the term “Continuous Service” shall mean your uninterrupted service to the Company or an Affiliate as an Employee or Non-Employee Director.  The Committee shall determine in its discretion whether and when your Continuous Service has ended (including as a result of any leave of absence); provided, however, that your Continuous Service shall not be deemed to have ended in the event you retire or otherwise terminate as an Employee but continue to perform services as a Non-Employee Director.
1.    Death or Disability.  In the event of your death or Disability, as defined in the Plan, you or your beneficiary, legal representative or other person or persons to whom your  rights under the SARs shall pass by will or the laws of descent and distribution, may, within a period of not more than twelve (12) months after the date of termination of Continuous Service due to death or Disability, exercise the SARs.  In no event may the SARs be exercised later than January 15, 2022.
2.    Voluntary Termination other than for Good Reason.  If you voluntarily terminate your Continuous Service with the Company, or an Affiliate, other than for Good Reason (as defined in Section 3 below) you (or in the event of death, your beneficiary, legal representative or other person or persons to whom your rights under the SARs shall pass by will or the laws of descent and distribution), may, within a period of not more than three (3) months after termination of your Continuous Service, exercise the SARs if and to the extent they were exercisable at the date of termination. In no event may the SARs be exercised later than January 15, 2022. 

A-2

3.    Termination without Cause or for Good Reason.  If your Continuous Service is terminated by the Company without Cause or you voluntarily terminate your Continuous Service for Good Reason, as defined below, you (or in the event of death, your beneficiary, legal representative or other person or persons to whom your rights under the SARs shall pass by will or laws of descent and distribution), may, within a period of not more than three (3) months after termination of Continuous Service without Cause or for Good Reason, exercise the SARs.  In no event may the SARs be exercised later than January 15, 2022.  
For all purposes of determining the reason for your Continuous Service terminating, if your Continuous Service ends coincident with your termination of employment, then the terms “Good Reason” and “Cause” shall have the meanings set forth in Section 5 above under the heading entitled “Restricted Stock,” and if your Continuous Services ends coincident with your termination as a Non-Employee Director after previously having terminated employment, the term “Good Reason” shall not apply and the term “Cause” shall have the meaning set forth in Section VIII.I.3 of the Plan.  For purposes of clarity, in the event your Continuous Services ends coincident with your termination as a Non-Employee Director after previously having terminated employment because (i) you are ready, willing and able to stand for reelection but are not nominated for reelection by the Board, (ii) you are nominated for reelection by the Board but are not reelected by the stockholders, (iii) you resign at the request of the Nominating and Governance Committee of the Board (or successor committee), or (iv) you are removed by the stockholders or by the Board, your Continuous Service shall be deemed to have been terminated without Cause.
4.    Termination for Cause.  If your Continuous Service is terminated for Cause, as defined in Section 3 above, all outstanding non-vested SARs shall be forfeited as of your termination date.
The SARs may be exercised in whole or in part by filing written notice with the Company in the form specified by the Company.  You may satisfy your tax withholding obligations through the surrender of shares which you already own or from which you are entitled to receive as a result of the exercise of the SARs.  No shares shall be issued to you until full satisfaction of the minimum tax withholding obligations.
The Compensation Committee has the right to amend this Grant Agreement at any time provided that it does not reduce the benefits to which you are entitled without your consent.  This Grant Agreement is binding on both parties and their successors.

A-3

Exhibit B

AMENDMENTS TO GRANT AGREEMENT DATED JANUARY 16, 2013

The following amendments are hereby made to the Grant Agreement between PDC Energy, Inc. and James M. Trimble, dated January 16, 2013, which documents the grant of certain shares of restricted stock and certain stock appreciation rights by PDC Energy, Inc. to Mr. Trimble.  The amendments shall be effective June 18, 2014.

A.    Section 5 under the heading entitled “Restricted Stock” is hereby deleted and replaced in its entirety with the following:

5.    If you voluntarily terminate your Continuous Service other than for Good Reason or your Continuous Service is terminated for Cause, any non-vested shares of Restricted Stock will be forfeited as of the date of termination.  For all purposes of this Grant Agreement, if your Continuous Service ends coincident with your termination of employment, then the terms “Good Reason” and “Cause” shall have the meanings set forth in the PDC Energy Executive Severance Compensation Plan (the “Severance Plan”), and if your Continuous Services ends coincident with your termination as a Non-Employee Director after previously having terminated employment, the term “Good Reason” shall not apply and the term “Cause” shall have the meaning set forth in Section VIII.I.3 of the Plan.
B.    Section 6 under the heading entitled “Restricted Stock” is hereby deleted and replaced in its entirety with the following:
6.    In the event of the termination of your Continuous Service due to death or Disability, as defined in the Plan, or due to a termination without Cause or your voluntary resignation for Good Reason (as set forth in Section 5 above), any restrictions imposed on the Restricted Stock will lapse and any non-vested shares of Restricted Stock will vest as of your date of termination.  For purposes of clarity, in the event your Continuous Services ends coincident with your termination as a Non-Employee Director after previously having terminated employment because (i) you are ready, willing and able to stand for reelection but are not nominated for reelection by the Board, (ii) you are nominated for reelection by the Board but are not reelected by the stockholders, (iii) you resign at the request of the Nominating and Governance Committee of the Board (or successor committee), or (iv) you are removed by the stockholders or by the Board, your Continuous Service shall be deemed to have been terminated without Cause.
C.     Sections 1-5 under the heading entitled “Stock Appreciation Rights” are hereby deleted in their entirety and replaced with the following:
1.    Death or Disability.  In the event of your death or Disability, as defined in the Plan, while in the Continuous Service of the Company or an Affiliate, all non-vested SARs shall immediately vest and become exercisable upon your date of termination.  You or your beneficiary, legal representative or other person or persons to whom your  rights under the SARs shall pass by will or the laws of descent and distribution, may, within a period of not more than twelve (12) months after the date of termination of Continuous Service due to death or Disability, exercise the SARs.  In no event may the SARs be exercised later than January 15, 2023.

B-1

2.    Voluntary Termination other than for Good Reason.  If you voluntarily terminate your Continuous Service with the Company, or an Affiliate, other than for Good Reason (as defined in Section 5 above under the heading “Restricted Stock”), you (or in the event of death, your beneficiary, legal representative or other person or persons to whom your rights under the SARs shall pass by will or the laws of descent and distribution), may, within a period of not more than three (3) months after termination of your Continuous Service, exercise the SARs if and to the extent they were exercisable at the date of termination. In no event may the SARs be exercised later than January 15, 2023.
3.    Termination without Cause or for Good Reason.  If your Continuous Service is terminated by the Company without Cause or you voluntarily terminate for Good Reason, as those terms are defined in Section 5 and 6 above under the heading “Restricted Stock,” all  non-vested SARs shall immediately vest and you (or in the event of death, your  beneficiary, legal representative or other person or persons to whom your  rights under the SARs shall pass by will or laws of descent and distribution), may, within a period of not more than three (3) months after termination of Continuous Service, exercise the SARs.  In no event may the SARs be exercised later than January 15, 2023.
4.    Change in Control.  In the event of a “Change in Control” (as defined in the Plan) while you are in the Continuous Service of the Company, all outstanding SARs will vest and become exercisable immediately prior to the Change in Control transaction.  
5.    Termination for Cause.  If you are terminated for Cause, as defined in Section 5 above under the heading “Restricted Stock,” all outstanding non-vested SARs shall be forfeited as of your termination date.

B-2EX-10.1

 Exhibit 10.1 

Retirement Agreement and Release for Kermit Crawford 

This Retirement Agreement and Release (“Agreement”) is entered into between Kermit Crawford (“”I” or
“Employee”) and Walgreen Co., its parents, subsidiaries, affiliated companies, predecessors, successors and assigns (“Walgreens” or the “Company”), describing the application of certain
compensation, benefits, and other terms and conditions in connection with Employee’s retirement from the Company. The parties agree as follows: 

1. Retirement Date. The parties agree that Employee shall retire from employment with the Company effective December 31, 2014 (the
“Retirement Date”). 
 2. Parties. In consideration of and subject to the performance by Walgreens of its
obligations under the Walgreen Co. Executive Severance and Change in Control Plan effective as of January 1, 2013, as amended from time to time before the date hereof (the “Plan”), Employee hereby releases and forever
discharges as of the date hereof the Company and its respective affiliates, subsidiaries and direct or indirect parent entities and all present, former and future shareholders, directors, officers, agents, representatives, employees, successors and
assigns of the Company and/or its respective affiliates, subsidiaries and direct or indirect parent entities (collectively, the “Released Parties”) to the extent provided below (together with the Affirmation described in
Paragraph 3(b), the “General Release”). The Released Parties are intended to be third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in
respect of the rights granted to such Released Parties hereunder. Terms used herein but not otherwise defined shall have the meanings given to them in the Plan. 

3. Consideration. 

(a) In exchange for Employee’s obligations to Walgreens under this Agreement, including the General Release, Walgreens agrees to provide
Employee the payments and benefits set forth in the attached Exhibit A. Among the benefits listed in Exhibit A, and in recognition of Employee’s service and dedication to Walgreens, Employee will receive two years of base salary plus
target bonus following his Retirement Date, according to the terms of the Plan, which will be paid following Employee’s separation from service, within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”). In addition, Employee will receive pro-rata vesting of the stock options, restricted stock units and performance shares awarded under the 2013 Omnibus Incentive Plan and Long-Term Performance Incentive Plan, each as amended, such
that Employee shall become vested in the number of shares set forth in Exhibit A. Further, in the event of a Change in Control (as defined in the Plan) occurs prior to the Projected Termination Date as finally determined (defined in Exhibit
A) (“Termination Date”), Employee shall receive such additional amounts and benefits that he would have received under the Plan and his outstanding equity awards as if he had a Termination of Employment for Good Reason during the
Post-Change Period. 
 (b) I understand that any payments or benefits paid or granted to me under Section 4.01 of the Plan (other than
the Accrued Obligations) represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive certain of the payments and benefits
specified in the Plan unless I (i) execute this Agreement, and do not revoke this Agreement within the time period permitted hereafter and (ii) execute the Affirmation and Additional Release attached hereto as Exhibit B (the
“Affirmation”) on or within 21 days after the Retirement Date, and do not revoke the Affirmation within the revocation period set forth in the 

 
Affirmation. Such payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the
Company or its Affiliates. 
 (c) In lieu of an Annual Incentive Award under Section 4.01(a)(ii) of the Plan for the fiscal year in
which his termination of employment occurs, Employee shall receive a Pro-Rata Bonus based upon hisTarget Annual Incentive Award calculated through the Termination Date. 

4. General Release. Except as provided in paragraphs 6 and 19 below and except for the provisions of the Plan which expressly survive
my retirement with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies,
actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or
liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the
Released Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company, including, but not limited to,
any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection
Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990, as amended; the Family and Medical Leave Act of 1993; the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of
1974; any applicable Executive Order Programs; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public
policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional distress, defamation; or any claim for costs,
fees, or other expenses, including attorneys’ fees incurred in these matters (all of the foregoing collectively referred to herein as the “Claims”). 

5. No Assignment of Claims. I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or
other matter covered by paragraph 4 above. 
 6. Waiver of Rights. I agree that I hereby waive all rights to sue or obtain equitable,
remedial or punitive relief from any or all Released Parties of any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the above, I further
acknowledge that I am not waiving and am not being required to waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding (including but not
limited to the Equal Employment Opportunity Commission); provided, however, that I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding.
Additionally, I am not waiving (i) any right to the Accrued Obligations or any severance benefits to which I am entitled under the Plan or this Agreement, (ii) any claim relating to directors’ and officers’ liability insurance
coverage or any right of indemnification under the Company’s organizational documents or otherwise, (iii) my rights as an equity or security holder in the Company or its Affiliates, (iv) my rights under any equity awards that survive
termination of employment; or (v) my rights under any retirement plan that is “qualified” under Section 401(a) of the Internal Revenue Code of 1986. 

 7. Class and Collective Action Waiver. In signing this General Release, I hereby agree not
to bring or participate in any class or collective action against the Company and/or the other Released Parties that asserts, in whole or in part, any claims that arose before I signed this Agreement, whether or not such claims (if brought by me
individually) are released by this Agreement. 
 8. Release Given Full Force and Effect. In signing this General Release, I
acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its
express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if
any, as well as those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver I would not have become a
Participant in the Plan. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this
General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law. I further agree that I am not aware of any pending claim of the type described herein as of the execution of this General Release. 

9. Non-Admissions. I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall
be deemed or construed at any time to be an admission by the Company, any Released Party or myself of any improper or unlawful conduct. 

10. Confidentiality. I agree not to use or disclose any Confidential Information, as defined below, to any person or entity other than
the Company, either before or after the Termination Date, without the Company’s prior written consent. Confidential Information means information not generally known by the public about processes, systems, products or services, including
proposed products or services, business information, pricing, sales, promotions, financial performance, know-how, or trade secrets of the Company. 

11. Regulatory Disclosures. Any non-disclosure provision in this General Release does not
prohibit or restrict me (or my attorney) from responding to any inquiry about this General Release or its underlying facts and circumstances by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any
other regulatory organization or any governmental entity. 
 12. Knowledge of Potential Claims. I represent that I am not aware of
any claim by me other than the claims that are released by this General Release. I acknowledge that I enter into this agreement despite understanding that I may hereafter discover claims or facts in addition to or different than those which I now
know or believe to exist with respect to the subject matter of the release set forth in paragraph 4 above and which, if known or suspected at the time of entering into this General Release, may have materially affected this General Release and my
decision to enter into it. 

 13. Non-Disparagement. I agree that I will not make derogatory statements, either written
or oral, or otherwise disparage any Released Party or Walgreens products or services, except as may be required by law. Nor shall I direct, arrange or encourage others to make any such derogatory or disparaging statements on my behalf. The Company
agrees that no member of its executive management team, human resources department or investor relations department shall make derogatory statements, either written or oral, or otherwise disparage me, except as may be required by law. 

14. Non-Solicitation. I agree that for two years after my Retirement Date for any reason, whether voluntary or involuntary: 

(a) I will not directly or indirectly, solicit or otherwise encourage any customer, potential customer, vendor, supplier, partner, PBM or
referral source of the Company with which I had direct contact or which I learned confidential information regarding products or services at any time during the last two years of my employment with the Company from ceasing or reducing the amount of
business it conducts with the Company; 
 (b) I will not, nor will I assist any third party to, directly or indirectly (i) raid, hire,
solicit, or attempt to persuade any employee of the Company or any person who was an employee of the Company during the 6 months preceding the termination of my employment with the Company, who possesses or had access to confidential
information of the Company, to leave the employ of the Company; (ii) interfere with the performance by any such persons of their duties for the Company; or (iii) communicate with any such persons for the purposes described in items
(i) and (ii) in this paragraph. 
 15. Return of Property. I agree that, no later than the end of my services under the
Consulting Services Agreement entered into concurrently herewith, I will have returned all Company property, and no Company property will be retained by me, regardless of the form in which it was acquired or held by me. 

16. Cooperation. Subject to paragraphs 6 and 11 above, I agree to cooperate with the Company and its agents and representatives during
and in connection with all litigation, potential litigation, internal or external investigations, and business matters in which the Company is involved or may become involved, subject to reimbursement of reasonable expenses incurred at the
reasonable request of Walgreens. 
 17. Repayment. I acknowledge that I am obligated to repay all Plan benefits to the Company if I
am rehired to a comparable position within 30 days of the Retirement Date. If I am rehired more than 30 days after the Retirement Date, I may keep Plan benefits equal to my weekly rate of pay multiplied by the number of weeks between the Retirement
Date and rehire date, but must repay the remainder of Plan benefits to the Company. I further acknowledge that I am not eligible for rehire until I make the repayment described herein. 

All incentive compensation paid to Executive pursuant to this Agreement or otherwise in connection with Executive’s employment with the
Company shall be subject to forfeiture recovery by Company or other action pursuant to any clawback or recoupment policy which the Company may adopt from time to time to the extent the Board of Directors of the Company determines in good faith that
the adoption and maintenance of such policy is necessary to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or is otherwise required by the laws of the United States. 

 18. Consequences of Breach. I agree that Plan benefits are conditioned on my compliance
with all of my commitments set forth in this Agreement. In the event of a material breach of this Agreement by me, the Company shall be entitled to discontinue Plan benefits otherwise payable to me. In addition, I acknowledge that the
Confidentiality provisions of this Agreement and the Non-Competition Agreements, as defined in paragraph 21 below, are necessary to enable the Company to maintain its competitive position and any actual or threatened breach of this covenant will
result in irreparable and continuing damage to the Company for which there will be no adequate remedy at law. In the event of any actual or threatened breach of these covenants, the Company shall be entitled to injunctive relief, including the right
to a temporary restraining order, and other relief, including damages, as may be proper. The foregoing stipulated damages and remedies of the Company are in addition to, and not to the exclusion of, any other damages the Company may be able to
prove. 
 19. No Future Waiver. Notwithstanding anything in this General Release to the contrary, this General Release shall not
relinquish, diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of the Plan that occurs after the date hereof. I further agree that this General Release does not waive or release any
rights or claims that I may have, including under the Age Discrimination in Employment Act, which arise after the date I execute this General Release. 

20. Governing Law and Severability. Federal or state law within the State of Illinois shall govern the validity, enforcement and
interpretation of this General Release notwithstanding any state’s choice of law provisions to the contrary. In the event any portion of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable
law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein. 
 21. Complete Agreement. This Agreement constitutes
the parties’ entire agreement and cancels, supersedes, and replaces any and all prior proposals, understandings, and agreements (written, oral or implied) regarding all matters addressed herein, except Employee shall continue to be bound by all
obligations set forth in any prior agreements, undertakings, waivers and assignments involving confidential information, inventions, non-competition, non-solicitation, non-inducement, patents, copyrights, trademarks and other intellectual property, and compliance with laws and policies, specifically including but not limited to the
Non-Competition, Non-Solicitation and Confidentiality Agreement(s) executed by Employee in connection with one or more Walgreens Restricted Stock Unit grants (the
“Non-Competition Agreements”). With respect to the Non-Competition Agreements, the Company and Employee acknowledge and agree that the businesses that shall be considered “Competing Business Lines,” as defined therein, shall be
limited to the entities set forth on a list provided by the Company to Employee concurrently with this Agreement. The terms of this Agreement may not be altered or modified except by written agreement of Employee and the Company. In connection with
this Agreement’s acceptance and execution, neither Employee nor the Company is relying on any representation or promise that is not expressly stated in this Agreement. 

22. BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT: 

(a) I HAVE READ IT CAREFULLY; AND I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED

 
TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES
ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED; 
 (b) I VOLUNTARILY CONSENT TO EVERYTHING IN IT; 

(c) THE COMPANY HAS ADVISED ME TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION,
I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION; 
 (d) I HAVE HAD AT LEAST 21 DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO
CONSIDER IT, AND THE CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED 21-DAY PERIOD; 

(e) I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME
EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED; 
 (f) I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND
WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND 
 (g) I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY
NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME. 

23. Counterparts and Facsimile Signatures. This Agreement may be executed in counterparts which, taken together, constitute a single,
enforceable instrument. 
 24. Full Knowledge and Authority to Sign. Other than as stated herein, Employee and Walgreens attest that
each of them has the authority to enter into this Agreement (including the provisions set forth on Exhibit A hereto), that no promise or inducement other than as stated herein has been offered for this Agreement, that they are legally
competent to execute this Agreement, and that they accept the full responsibility therefor. Walgreens further acknowledges that the individual set forth below has full corporate power and authority to execute this Agreement on behalf of the Company
and to bind the Company in all respects. 
 Entered and Agreed to: 
  

							
	Dated: August 5, 2014	 	 	 	 /s/ Kermit Crawford

		 		 	Kermit Crawford
			
		 		 	Walgreen Co.
				
	Dated: August 5, 2014	 		 	By:	 	 /s/ Kathleen Wilson-Thompson

		 		 		 	Kathleen Wilson-Thompson
		 		 		 	Senior Vice President and CHRO

 EXHIBIT A 

Summary of Estimated Benefits for Kermit Crawford 

This is a summary of your separation benefits for which you are eligible. 

It is only for planning purposes and may change as more current records become available. 

 

									
	 Last Day Worked (LDW)
	 	12/31/2014	  	Hire Date	 	4/16/1983 (31 years)	  	
	 Projected Termination Date *
	 	4/30/15	  	Age	 	55	  	

  

			
	Paid Time Off (“PTO”)*	  	Your accrued unused PTO and banked vacation hours will be paid to you in a lump sum within four (4) weeks of your termination date.
		
	Severance	  	$3,300,000.00 (equal to 2X salary plus target bonus, gross amount)
		
	Fiscal 2015 Bonus	  	FY 2015 bonus, to be pro-rated based on target through Projected Termination Date, to be paid as soon as practicable following Retirement date.
		
	Stock Options	  	Options become vested three years after grant date.
		
		  	Options awarded under the Executive Stock Option Plan:
		
		  	Exercise vested options within 60 months following the Termination Date or prior to expiration date, whichever is earlier. Unvested options continue vesting for a period of 60 months after the Termination Date. These
options must be exercised between the vesting date and the end of the 60 month period following the Termination Date.

  

													
	 	 	 Grant Date
	  	 Options

Granted/

Outstanding
	  	 Grant Price
	 	 Status
	  	 Expiration Date
	  	 
	 	9/1/2006	  	17,337	  	$49.46	 	Vested	  	9/1/2016	  	
	 	9/1/2007	  	26,403	  	$45.07	 	Vested	  	9/1/2017	  	
	 	9/1/2008	  	23,552	  	$36.43	 	Vested	  	9/1/2018	  	
	 	9/1/2009	  	30,778	  	$34.04	 	Vested	  	9/1/2019	  	
	 	1/14/2010	  	3,745	  	$37.11	 	Vested	  	1/14/2020	  	
	 	9/1/2011	  	53,366	  	$35.65	 	Vests 09/01/14	  	5 yrs from Term Date	  	
	 	11/1/2012	  	96,016	  	$35.50	 	Not vested—to be fully vested as of Termination Date upon special agreement	  	5 yrs from Term Date	  	
	 	  
 Options awarded under the 2013 Omnibus Incentive
Plan:

	 	  
 Unvested options will be deemed to have 1 year of
additional service credit as of the Termination Date. Exercise vested options within 1 year following Termination Date; remaining unvested options are forfeited.

	 	 Grant Date
	  	 Options

Granted/

Outstanding
	  	 Grant Price
	 	
            Status        
    
	  	 
	 	11/1/2013	  	84,291	  	$60.52	 	 Not vested because Termination Date is more than one year prior to
the scheduled
 vesting date – to be prorated

as of Termination Date upon
 special
agreement
	  	
	 	  
 Options may only be exercised during an open trading
window.

	 	  
 Please refer to your Fidelity account
(www.Fidelity.com) to view and/or exercise your outstanding stock option awards. Detailed terms and conditions for each award can be found in the Grant Agreement under the “grant details” link

 EXHIBIT A 
  

			
	Restricted Stock Units	  	RSUs become vested and distributed in shares of Walgreen Co. stock after a three-year vesting period.
		
		  	RSUs granted under the Long-Term Performance Incentive Plan:
		
		  	Unvested RSUs will be prorated based on the number of full months worked in the vesting period and will be paid on the six-month anniversary of the Termination Date.

  

													
	 	 	 Grant Date
	  	 RSUs Granted
	  	
            Status        
    
	  	 	  	 
		 	8/15/2011	  	13,996.875	  	 Not vested—to be fully vested

as of Termination Date upon
 special
agreement
	  		  	
						
		 	9/1/2011	  	13,811.695	  	Vests 9/1/2014	  		  	
						
		 	11/1/2012	  	18,575.752	  	 Not vested—to be fully vested

as of Termination Date upon
 special
agreement
	  		  	
		
		 	RSUs granted under the 2013 Omnibus Incentive Plan:
		
		 	Unvested RSUs vesting within 12 months of the Termination Date, will vest on the Termination Date and will be paid on the six-month anniversary of the Termination Date. Remaining RSUs are forfeited.
						
	 	 	 Grant Date
	  	 RSUs Granted
	  	
            Status        
    
	  	 	  	 
		 	11/1/2013	  	14,312.279	  	 Not vested because

Termination Date is more than one

year prior to scheduled
 vesting
date – to be prorated
 as of Termination Date upon

special agreement
	  		  	
		
		 	Shares may only be sold during an open trading window.

  

			
	Performance Shares	  	Typically, performance shares become vested and distributed in shares of Walgreen Co. stock after the completion of a three-year performance period.
		
		  	Performance shares awarded under the Long-Term Performance Incentive Plan
		
		  	Upon special agreement, outstanding performance shares will be prorated and settled as soon as administratively practicable following termination of employment. Prorated shares will be determined based upon the number of months
completed in the performance period. Performance will be at the levels noted for each award.

  

													
	 	 	 Grant Date
	  	 Contingent Award
	  	
            Status        
    
	  	 	  	 
		 	9/1/2011	  	(target) 18,402	  	Vests 9/1/2014	  		  	
						
		 	11/1/2012	  	(target) 28,902	  	Not vested (to be prorated)	  		  	
		
		 	Performance shares awarded under the 2013 Omnibus Incentive Plan
		
		 	Upon special agreement, prorated shares will be settled as soon as administratively practicable following termination of employment. Performance will be assumed to be 100% of target.
						
	 	 	 Grant Date
	  	 Contingent Award
	  	
            Status        
    
	  	 	  	 
		 	11/1/2013	  	(target) 23,358	  	Not vested (to be prorated)	  		  	
		
		 	Shares may only be sold during an open trading window.

 EXHIBIT A 
  

					
			
	Profit Sharing Plan and Executive Deferred Profit Sharing Plan	 		  	 Your options for your account balance under the Profit Sharing Plan are:

 
 •   choose to have your
account distributed to you in monthly or annual installments or a single lump sum, or
  

•   leave your money in the Plan and defer payment (and taxes) to some later date, but you must
begin receiving payments when you reach age 70 1⁄2, or
  

•   defer income tax, by rolling your Plan account balance into a new employer’s plan (if
allowed) or an IRA.
  
 You will receive information regarding the timing and form of
payment of your current balance in the Executive Deferred Profit Sharing plan
  

			
	Deferred Compensation/ Capital Accumulation	 		  	Payments from Walgreen Co. Executive Deferred Compensation/Capital Accumulation Plans will start based on the normal retirement distribution schedule.
			
	Other Benefits	 		  	If you are currently enrolled in Walgreens 2014 medical (including prescription drug), dental and/or vision insurance, your coverage will continue through the last day of the month in which your employment is terminated.
Disability insurance coverage ends on your last day worked. Reimbursement of premiums for COBRA coverage with respect to medical (including prescription drug), dental and/or vision insurance for the COBRA period, but not more than 24 months after
your active benefit coverage has ended, to the extent such premiums exceed the premiums payable for similar coverage by active team members.
			
	 Retiree Medical
 &
Prescription Drug Plan
	 		  	 Eligibility criteria for continued medical and prescription drug coverage for retirees:

 
 (i) Hire date prior to 12/31/2001; (ii) at least 25 years of continuous service; (iii) be
at least age 55;
 (iv) participant in Walgreens health plan; (v) retire in good standing; and (vi) as of 1/1/2010, either (a) attained age 40 or (b)
attained age and years of service that total at least 50.

			
	Company Paid Life Insurance	 		  	$5,000 of Company-paid life insurance continued until 65th birthday, if enrolled in the Retiree Medical & Prescription Drug Plan
			
	Retiree Walgreens Discount	 		  	Eligible
			
	Other Benefits	 		  	 •   Company-paid annual physical examination up to age 70

 
 •   Continuation of preferred
flight status within the United Airlines Mileage Plus Program

  

	*	Final Termination Date will be adjusted to reflect any PTO/vacation taken that is not yet reflected in Walgreens systems. 

 EXHIBIT B 

AFFIRMATION AND ADDITIONAL RELEASE 

By my signature below, I hereby re-execute and affirm the Retirement Agreement and Release originally signed by me on August 5, 2014 (the
“General Release”). Further, I hereby release and waive any and all claims described in the General Release that exist or may exist on or prior to the date I sign this Affirmation and Additional Release (this
“Affirmation”), including, without limitation, claims under the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act) (“ADEA”). I understand that I
(a) may not sign this Affirmation until on or after my Retirement Date and (b) must return a signed copy of this Affirmation to the Company within 21 days after my Retirement Date. 

Employee, by his free and voluntary act of signing below, (i) acknowledges that he has been given a period of at least twenty-one
(21) days to consider whether to agree to the terms contained herein, (ii) acknowledges that he has been advised in writing to consult with an attorney prior to executing this Affirmation, (iii) acknowledges that he understands that
this Affirmation specifically releases and waives all rights and claims Employee may have under the ADEA on or prior to the date on which Employee signs this Affirmation, and for valuable consideration to which he otherwise would not be entitled,
and (iv) agrees to all of the terms of this Affirmation and the General Release and intends to be legally bound thereby. 

Furthermore, Employee acknowledges that the promises and benefits provided for in Section 3 of the General Release will be delayed until
the General Release and this Affirmation become effective, enforceable and irrevocable. This Affirmation will become effective, enforceable and irrevocable on the eighth day after the date on which it is executed by Employee. During the seven-day
period following the date on which Employee executes this Affirmation, Employee may revoke his agreement to accept the terms of this Affirmation by indicating his revocation in writing to the General Counsel of the Company. If Employee exercises his
right to revoke this Affirmation, Employee shall not be eligible to receive and shall forfeit his right to receive any of the payments or benefits provided in the General Release, and to the extent such payments or benefits have already been made,
Employee agrees that he will immediately reimburse the Company for the amounts of such promises and benefits. 
 Terms not defined in this
Affirmation shall have the same meaning as defined in the General Release. 
  

	
	EMPLOYEE
	
	  

	Kermit Crawford
	
	Date:

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