Document:

Exhibit
10.42

AMENDMENT TO
EMPLOYMENT AGREEMENT

Reference is made to the 1996 employment agreement by
and between CVS Corporation, a Delaware corporation (together with its
successors and assigns, the “Company”) and Larry Merlo (the “Executive”) (such
binding employment agreement, as previously amended, being herein referred to
as the “Employment Agreement”).  Pursuant
to Section 22 of the Employment Agreement, the Company and the Executive hereby
amend the Employment Agreement as follows, effective immediately.

1.                                       Section
3 is hereby amended to read in its entirety as it did before that certain “Amendment
to Employment Agreement for Larry Merlo” dated effective as of January 1, 1999,
which had made certain changes to the Executive’s duties and responsibilities.

2.                                       Section
4 is amended by changing “Compensation Committee” to “Management Planning and
Development Committee”.

3.                                       Section
7(b) is amended to read as follows:

“(b)         Deferral of Compensation.  The Executive may elect to defer receipt,
pursuant to written deferral arrangements (the “Deferral Election Forms”) under
and subject to the terms of the CVS Corporation Deferred Compensation Plan, the
CVS Corporation Deferred Stock Compensation Plan or any successor or
replacement plan or plans, of all or a specified portion of (i) his annual Base
Salary and annual incentive compensation under Section 4 and
Section 5 and (ii) long term incentive compensation under Section 6; provided, however, that
such deferrals shall not reduce Executive’s total cash compensation in any
calendar year below the sum of (A) the FICA maximum taxable wage base plus (B)
the amount needed, on an after-tax basis, to enable Executive to pay the 1.45%
Medicare tax imposed on his wages in excess of such FICA maximum taxable wage
base.

In accordance with such
Deferral Election Forms, the Company shall credit to a bookkeeping account (the
“Deferred Compensation Account”) maintained for Executive on the respective
payment date or dates, amounts equal to the compensation subject to deferral,
such credits to be denominated in cash if the compensation would have been paid
in cash but for the deferral or in shares if the compensation would have been
paid in shares but for the deferral.

Except as otherwise
provided under Section 10, in the event of Executive’s termination of
employment with the Company or as otherwise determined by the Committee in the
event of an unforeseeable emergency on the part of Executive, upon such date(s)
or event(s) set forth in the Deferral Election Forms (including forms filed
after deferral but before settlement in which Executive may elect to 

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further defer
settlement), the Company shall promptly pay to Executive cash equal to the
value of the assets then credited to Executive’s deferral accounts, less
applicable withholding taxes and such distribution shall be deemed to fully
settle such accounts.  The Company and
Executive agree that compensation deferred pursuant to this Section 7(b) shall
be fully vested and nonforfeitable; however, Executive acknowledges that
his rights to the deferred compensation provided for in this Section 7(b) shall
be no greater than those of a general unsecured creditor of the Company, and
that such rights may not be pledged, collateralized, encumbered, hypothecated,
or liable for or subject to any lien, obligation, or liability of Executive, or
be assignable or transferable by Executive, otherwise than by will or the laws
of descent and distribution, provided that Executive may designate one or more
beneficiaries to receive any payment of such amounts in the event of his death.”

4.                                       Section
8(b) is amended by changing the first sentence to read as follows:

“The Executive shall be
entitled to a pro rata annual incentive award for the year in which the
Commencement Date occurs based on the most recently established target annual
incentive bonus amount, payable in a cash lump sum not later than 15 days after
the Commencement Date.”

5.                                       Section
10(a) is amended by changing subparagraph (ii) to read as follows:

“(ii)         pro
rata annual incentive award for the year in which Executive’s death occurs
based on the most recently established target annual incentive bonus amount for
Executive, which shall be payable in a cash lump sum promptly (but in no event
later than 15 days or by such later date as is required to comply with Section
22) after his death;”

6.                                       Section
10(c) is amended by changing subparagraph (iii) to read as follows:

“(iii)        pro
rata annual incentive award for the year in which Executive’s termination
occurs based on the most recently established target annual incentive bonus
amount for Executive, payable in a cash lump sum promptly (but in no event
later than 15 days or by such later date as is required to comply with Section
22) following termination;”

7.                                       Section
10(c) is further amended by changing subparagraph (iv) to read as follows:

“(iv)        an
amount equal to the most recently established target annual incentive bonus
amount for Executive multiplied by two, payable in equal monthly payments over
the Severance Period;”

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8.                                       Section
10(d) is amended by adding the following text at the end of the first sentence:

“, and further provided that if the Company makes such
an election, the Company’s obligation to pay the Executive his monthly Base
Salary and the Executive’s obligation not to engage in competition with the
Company or any Subsidiary shall terminate upon the occurrence of a Change in Control.”

9.                                       Section
10(e) is amended by changing subparagraph (iii) to read as follows:

“(iii)        pro
rata annual incentive award for the year in which Executive’s termination
occurs based on the most recently established target annual incentive bonus
amount for Executive, payable in a cash lump sum promptly (but in no event
later than 15 days or by such later date as is required to comply with Section
22) following the Executive’s termination of employment;”

10.                                 Section
10(e) is further amended by changing subparagraph (iv) to read as follows:

“(iv)        an
amount equal to the target annual incentive award based on the most recently
established target annual incentive award for Executive multiplied by three,
payable in a cash lump sum promptly (but in no event later than 15 days)
following the Executive’s termination of employment;”

11.                                 Section
10(f) is amended by changing subparagraph (v) to read as follows:

“(v)         continued
vesting of all outstanding stock options and the right to exercise such stock
options (including, for the avoidance of doubt, after the Executive’s death by
any person to whom the award passes by will or the laws of descent and
distribution following the Executive’s death) for a period of one year
following the later of the date the options are fully vested or the Executive’s
termination of employment or for the remainder of the exercise period, if less
(other than awards under the Company’s Partnership Equity Program, which shall
be governed by the terms of such awards); 
provided, however, that options granted pursuant to the Company’s 1987
Stock Option Plan shall in no event be exercisable after three years following
termination of employment;”

12.                                 Section
10 is further clarified by adding a new Section 10(k) as follows:

“(k)         For
the avoidance of doubt, the provisions of this Agreement, insofar as they
pertain to any stock option awarded to Executive, apply and shall be deemed to
govern notwithstanding any contrary term in any agreement awarding such stock
option to Executive.”

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13.                                 Section
12(a) is amended by deleting the sentence that begins “A “Competitor” shall
mean . . .” and replacing it with the following:

“A “Competitor” shall mean
any corporation or other entity (and its parents, subsidiaries and affiliates)
doing business in a geographical area in which the Company is doing or has
imminent plans to do business, and which is engaged in the operation of
(a) a retail business which includes or has imminent plans to include a
pharmacy (i.e., the sale of prescription drugs) as
an offering or component of its business, including, without limitation, chain
drug store companies such as Walgreen Co. or Rite Aid Corporation, mass
merchants such as Wal-Mart Stores, Inc. or Target Corp., and food/drug
combinations such as The Kroger Co. or Supervalu Inc.; and/or (b) a
business which includes or has imminent plans to include mail order
prescription, specialty pharmacy and/or pharmacy benefits management as an
offering or component of its business; and/or (c) a business which includes or
has imminent plans to include offering, marketing or the sale of basic acute
health care services at retail or other business locations, similar to the
services provided by MinuteClinic, Inc. 
(and excluding hospitals, private physicians’ offices, or other
businesses dedicated to the direct provision of health care services); and/or
(d) any other business in which the Company is or has imminent plans to be
engaged (whether directly or indirectly, including through any joint venture)
at the time of Executive’s termination.

14.                                 Section
12(a) is further amended by adding the following sentence to the end of
Section 12(a):

The parties agree that
the purpose of this provision is to protect the Company’s confidential
information, trade secrets and/or business relationships, and that it shall
only be enforceable for such purpose.

15.                                 Section
13 is amended by changing the first sentence to read as follows:

                                                                “During the period beginning
with the Effective Date and ending at the end of the Restriction Period, as
defined in Section 12(b), the Executive shall not induce employees of the
Company or any Subsidiary to terminate their employment, nor shall the
Executive solicit or encourage any of the Company’s or any Subsidiary’s
non-retail customers, or any corporation or other entity in a joint venture
relationship (directly or indirectly) with the Company or any Subsidiary, to
terminate or diminish their relationship with the Company or any Subsidiary or
to violate any agreement with any of them.”

16.                                 Section
22 is amended by adding to the end the following:

                                                                “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, and that to the
extent any provisions of this Agreement do not comply 

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                                                with
such Section 409A the parties will make such changes as are mutually agreed
upon in order to comply with Section 409A.”

17.                                 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 Corporation has caused this instrument of amendment to be
executed by its duly authorized officer, and the Executive has hereunto put his
hand, this      day of             ,
2006.

	
  

  	
  CVS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  V. Michael Ferdinandi

  
	
   

  	
   

  	
  Senior Vice President, Human Resources and

  
	
   

  	
   

  	
  Corporate
  Communications

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Larry Merlo

  
	
   

  	
   

  	
   

  
	
   

  	
   

  

 

 5Exhibit
10.43

AMENDMENT TO
EMPLOYMENT AGREEMENT

Reference is made to the 1996 employment agreement by
and between CVS Corporation, a Delaware corporation (together with its
successors and assigns, the “Company”) and Thomas Ryan (the “Executive”) (such
binding employment agreement, as previously amended, being herein referred to
as the “Employment Agreement”).  Pursuant
to Section 22 of the Employment Agreement, the Company and the Executive hereby
amend the Employment Agreement as follows, effective immediately.

1.                                       Section
7(b) is amended to read as follows:

“(b)         Deferral
of Compensation.  The Executive may
elect to defer receipt, pursuant to written deferral arrangements (the “Deferral
Election Forms”) under and subject to the terms of the CVS Corporation Deferred
Compensation Plan, the CVS Corporation Deferred Stock Compensation Plan or any
successor or replacement plan or plans, of all or a specified portion of (i)
his annual Base Salary and annual incentive compensation under Section 4
and Section 5 and (ii) long term incentive compensation under
Section 6; provided, however,
that such deferrals shall not reduce Executive’s total cash compensation in any
calendar year below the sum of (A) the FICA maximum taxable wage base plus (B)
the amount needed, on an after-tax basis, to enable Executive to pay the 1.45%
Medicare tax imposed on his wages in excess of such FICA maximum taxable wage
base.

In accordance with such Deferral Election Forms, the
Company shall credit to a bookkeeping account (the “Deferred Compensation
Account”) maintained for Executive on the respective payment date or dates,
amounts equal to the compensation subject to deferral, such credits to be
denominated in cash if the compensation would have been paid in cash but for
the deferral or in shares if the compensation would have been paid in shares
but for the deferral.

Except as otherwise provided under Section 10, in the
event of Executive’s termination of employment with the Company or as otherwise
determined by the Committee in the event of an unforeseeable emergency on the
part of Executive, upon such date(s) or event(s) set forth in the Deferral
Election Forms (including forms filed after deferral but before settlement in
which Executive may elect to further defer settlement), the Company shall
promptly pay to Executive cash equal to the value of the assets then credited
to Executive’s deferral accounts, less applicable withholding taxes and such
distribution shall be deemed to fully settle such accounts.  The Company and Executive agree that
compensation deferred pursuant to this Section 7(b) shall be fully vested and
nonforfeitable; however, Executive acknowledges that his rights to the
deferred compensation provided for in this Section 7(b) shall be no greater
than those of a general unsecured creditor of the Company, and that such rights
may not be pledged, collateralized, 

 1
 

encumbered, hypothecated, or liable for or subject to any lien,
obligation, or liability of Executive, or be assignable or transferable by
Executive, otherwise than by will or the laws of descent and distribution,
provided that Executive may designate one or more beneficiaries to receive any
payment of such amounts in the event of his death.”

2.                                       Section
10(d) is amended by adding the following text at the end of the first sentence:

“, and further provided
that if the Company makes such an election, the Company’s obligation to pay the
Executive his monthly Base Salary and the Executive’s obligation not to engage
in competition with the Company or any Subsidiary shall terminate upon the
occurrence of a Change in Control.”

3.                                       Section
10(f) is amended by changing subparagraph (v) to read as follows:

“(v)         continued vesting of all outstanding
stock options and the right to exercise such stock options (including, for the
avoidance of doubt, after the Executive’s death by any person to whom the award
passes by will or the laws of descent and distribution following the Executive’s
death) for a period of one year following the later of the date the options are
fully vested or the Executive’s termination of employment or for the remainder
of the exercise period, if less (other than awards under the Company’s
Partnership Equity Program, which shall be governed by the terms of such
awards);  provided, however, that options
granted pursuant to the Company’s 1987 Stock Option Plan shall in no event be
exercisable after three years following termination of employment;”

4.                                       Section
10 is further clarified by adding a new Section 10(k) as follows:

“(k)         For the avoidance of doubt, the provisions
of this Agreement, insofar as they pertain to any stock option awarded to
Executive, apply and shall be deemed to govern notwithstanding any contrary
term in any agreement awarding such stock option to Executive.”

5.                                       Section
12(a) is amended by deleting the sentence that begins “A “Competitor” shall
mean...” and replacing it with the following:

“A “Competitor” shall mean
any corporation or other entity (and its parents, subsidiaries and affiliates)
doing business in a geographical area in which the Company is doing or has
imminent plans to do business, and which is engaged in the operation of
(a) a retail business which includes or has imminent plans to include a
pharmacy (i.e., the sale of prescription drugs) as
an offering or component of its business, including, without limitation, chain
drug store companies such as Walgreen Co. or Rite Aid Corporation, mass
merchants such as Wal-Mart Stores, Inc. or Target Corp., and food/drug
combinations such as The 

 2
 

Kroger
Co. or Supervalu Inc.; and/or (b) a business which includes or has
imminent plans to include mail order prescription, specialty pharmacy and/or
pharmacy benefits management as an offering or component of its business;
and/or (c) a business which includes or has imminent plans to include offering,
marketing or the sale of basic acute health care services at retail or other
business locations, similar to the services provided by MinuteClinic, Inc.  (and excluding hospitals, private physicians’
offices, or other businesses dedicated to the direct provision of health care
services); and/or (d) any other business in which the Company is or has
imminent plans to be engaged (whether directly or indirectly, including through
any joint venture) at the time of Executive’s termination.

6.                                       Section
12(a) is further amended by adding the following sentence to the end of
Section 12(a):

The parties agree that
the purpose of this provision is to protect the Company’s confidential
information, trade secrets and/or business relationships, and that it shall
only be enforceable for such purpose.

7.                                       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
Corporation has caused this instrument of amendment to be executed by its duly
authorized officer, and the Executive has hereunto put his hand, this     
day of              ,
2006.

	
  

  	
  CVS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Director and Chairman of the Management Planning and
  Development Committee of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Thomas Ryan

  
	
   

  	
   

  
	
   

  	
   

  

 

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