Document:

Employee Agreement dated June 1, 2000

 Exhibit 10.13 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of June 1, 2000, by and between Caremark Rx, Inc., a Delaware
corporation (“Employer”), and Brad Karro (“Officer”). 
  
 RECITALS 
  
 WHEREAS, Employer
desires to continue to retain the services of Officer and Officer desires to serve Employer in the capacity of Executive Vice President of Corporate Development; and 
  
 WHEREAS, Employer and Officer desire to set forth the terms and conditions of Officer’s continued employment with
Employer under this Agreement. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual
covenants and agreements contained in this Agreement, the parties agree as follows: 
  
 1. Term. Employer agrees to employ Officer, and Officer agrees to serve Employer, on an “at will” basis for such period (such period being the “Term”) as Employer desires to employ Officer and
Officer agrees to serve Employer. Without limiting the generality of the foregoing sentence, Employer shall have the right to terminate Officer at any time for any reason or no reason without any obligation to Officer other than for Base Salary (as
hereinafter defined) earned but unpaid through the date of such termination and for the obligations of Employer pursuant to Section 4(4) of this Agreement. 
  

2. Employment of Officer. 
  
 (1) Position; Duties. Employer and Officer agree that, subject to the provisions of this Agreement, Officer will serve as Executive Vice President of
Corporate Development of Employer. 
  

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 3. Compensation. 
  
 (1) Salary. Employer shall pay Officer a salary in the amount of Two Hundred Ninety-Five Thousand Dollars ($295,000.00) per
year (pro-rated for any partial year during the Term) (the “Base Salary”) payable in equal Bi-weekly installments, less state and federal tax and other legally required withholdings. The Base Salary shall be subject to review and
adjustment from time-to-time consistent with past practice. 
  
 (2) Incentive Compensation. During the Term, Officer shall be eligible to receive from Employer incentive compensation in an amount equal to Seventy-Five (75%) percent of Base Salary (pro-rated for any partial calendar year during the
Term), less state and federal tax and other legally required and Officer-authorized withholdings. The incentive compensation contemplated by this Section 3(2) shall be payable to Officer solely at the discretion of the Chief Executive Officer
of Employer based upon Officer’s performance. The incentive compensation that Officer shall be eligible to earn under this Section 3(2) shall be subject to review and adjustment from time-to-time consistent with past practice. 

 
 4. Benefits. 
  
 (1) Fringe Benefits. In addition to the compensation and other remuneration
provided for in this Agreement, Officer shall be entitled, during the Term, to such other benefits of employment with Employer as are now or may after the date of this Agreement be in effect for employees of Employer at the same level as Officer.

  
 (2) Expenses. During the Term, Employer shall reimburse
Officer promptly for all reasonable travel, entertainment, parking, business meeting and similar expenditures in pursuit and furtherance of Employer’s business upon receipt of reasonable supporting documentation as required by Employer’s
policies applicable to its officers generally. 
  

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 (3) Stock Options. Officer shall participate in the stock options plans of the Company. The opportunity
for the grant of such options will be reviewed at least annually. 
  
 (4) Termination Benefits. Employer shall provide to Officer the applicable benefits and/or payments set forth below. 
  

	 	(a)	Termination by resignation, disability or death. If this Agreement is terminated due to Officer’s voluntary resignation, disability, or his death, then Officer shall be
entitled to only those benefits and payments he is entitled to under the Employer’s applicable controlling benefit plans and policies. Officer shall not be entitled to any severance or like payments. 

  

	 	(b)	Termination for Cause. If Employer terminates Officer’s employment for cause, then Officer shall be entitled to only those benefits and payments he is entitled to under the
applicable controlling benefit plans and policies. Officer shall not be entitled to any severance or like payments. The term “Cause” shall mean Officer (i) materially breaches any material term of this Agreement, (ii) is convicted by
a court of competent jurisdiction of a felony, (iii) refuses, fails or neglects to perform his duties under this Agreement in a manner substantially detrimental to the business of Employer, (iv) engages in illegal or other wrongful conduct
substantially detrimental to the business or reputation 

  

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 of Employer, or (v) develops or pursues interests substantially adverse to Employer; provided,
however, that in the case of clauses (i), (iii), or (v), no such termination shall be effective unless (1) Employer shall have given Officer 30 days’ prior written notice of any conduct or deficiency in performance by Officer that Employer
believes could, if not discontinued or corrected, lead to Officer’s termination under this Section 4(3) to provide Officer an opportunity to cure such non-compliant conduct or performance, and (2) Officer shall not have cured such
non-compliant conduct or performance during such notice period. 
  

	 	(c)	Termination without Cause. If Employer terminates this Agreement without cause, it shall provide Officer with the following termination benefits: (i.) 30 days written notice of
Employer’s intention to terminate Officer’s Agreement without cause; (ii.) A lump sum payment equivalent to one (1) year of Officer’s current base salary; (iii.) A lump sum payment equivalent to one (1) year of
Officer’s current annual incentive bonus; (iv.) Continued coverage under Employer’s standard and Executive benefit plans for one (1) year in accordance with the terms of the applicable plans, provided, if the terms of the applicable plan
does not permit continued coverage, then Employer shall pay to Officer the value of the applicable benefits in lump sum upon termination of employment; and (v.) The applicable Stock 

  

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 Option Plan shall control the treatment of Officer’s unexercised stock options. As a condition
precedent to receiving the payments and benefits described in this paragraph 4 (3) (c), Officer shall be required to execute a full release of all claims for the benefit of Employer in a form provided exclusively by Employer. Upon execution of
this release, Employer shall provide the payments and benefits described in this section 4 (3) (c), within 10 days. 
  

	 	(d)	Termination following a Change in Control. During the first six months following a change in control, Officer may provide the Successor Employer with written notice requesting the
Successor Employer to reconfirm in writing that it intends to continue all of the terms and conditions of this Employment Agreement. If Successor Employer fails to respond to Officer within Sixty (60) days of receipt of Officer’s written
notice, or if Successor Employer declines to continue all of the terms and conditions of Officer’s Employment Agreement, then Officer shall be deemed to be terminated following a change in control. If a successor Employer terminates this
Agreement at any time following a change in control, it shall provide Officer with the following termination benefits: (i.) 30 days written notice of its intention to terminate this Agreement; (ii.) A lump sum payment equivalent to two
(2) year’s of Officer’s current base salary; (iii.) A lump sum payment equivalent to two (2) 

  

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 year’s of Officer’s current annual incentive bonus; (iv.) Continued coverage under
Employer’s standard and Executive benefit plans for two (2) year’s in accordance with the terms of the applicable plans, provided, if the terms of the applicable plan does not permit continued coverage, then Employer shall pay to
Officer the value of the applicable benefits in lump sum upon termination of employment; and (v.) The applicable Stock Option Plan shall control the treatment of Officer’s unexercised stock options. As a condition precedent to receiving the
payments and benefits described in this paragraph 4 (3) (d), Officer shall be required to execute a full release of all claims for the benefit of Employer in a form provided exclusively by Employer. Upon execution of this release, Employer
shall provide the payments and benefits described in this section 4 (3) (d), within 10 days. For purposes of this Agreement, the term “Change in Control” shall mirror the definition of a “Change in Control” contained in the
MedPartners’ 1998 Stock Option Plan. 
  
 5. Trade Secrets and
Confidentiality 
  
 (1) Trade Secrets. Officer agrees and
covenants that, both during the Term and after termination of his employment, Officer will hold in a fiduciary capacity for the benefit of Employer, and shall not directly or indirectly use or disclose, except as Employer authorizes in connection
with the performance of Officer’s duties, any Trade Secret, as defined below, that Officer may have or acquire during the Term for so long as the such information remains a Trade Secret. The term “Trade Secret” as used in this
Agreement shall 
  

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 mean information including, but not limited to, technical or non-technical data, a formula, a pattern, a compilation, a
program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list of actual or potential customers or suppliers, including without limitation, information received by Employer or Officer from
any client or potential client of Employer, which: 
  

	 	a.	Derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value
from its disclosure or use; and 

  

	 	b.	Is the subject of reasonable efforts by Employer or the client from which the information was received to maintain its secrecy. 

  
 (2) Confidentiality. In addition to the covenants set forth in
Section 5(1), Officer agrees that, during the Term and for a period of five (5) years after termination of his employment, Officer will hold in a fiduciary capacity for the benefit of Employer and shall not directly or indirectly use or
disclose, except as Employer authorizes in connection with the performance of Officer’s duties, any Confidential or Proprietary Information, as defined below, that Officer may have or acquire (whether or not developed or compiled by Officer and
whether or not Officer has been authorized to have access to such Confidential or Proprietary Information) during the Term. The term “Confidential or Proprietary Information” as used in this Agreement means any secret, confidential or
proprietary information of Employer, including information received by Employer or Officer from any client or potential client of Employer, not otherwise included in the definition of “Trade Secret” in Section 5(1) above. The term
“Confidential or Proprietary Information” does not include information that has become generally available to the public by the act of one who has the right to disclose such information without violating any right of the client to which
such information pertains. 
  
 (3) Restrictions Supplemental to
State Law. The restrictions set forth in Sections 5(1) and (2) are in addition to and not in 
  

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 lieu of protections afforded to trade secrets and confidential information under applicable state law. Nothing in this
Agreement is intended to or shall be interpreted as diminishing or otherwise limiting Employer’s right under applicable state law to protect its trade secrets and confidential information. 
  
 6. Restrictive Covenants. As a material inducement for Employer to enter into
this Agreement, Officer agrees to the following restrictive covenants. 
  
 (1) Non-competition. During the term of this Agreement and for a period of 3 years after the termination of this Agreement, directly or indirectly, establish, engage, own, manage, operate, join or control, or participate in the
establishment, ownership, management, operation or control or be a director, officer, employee, salesman, agent or representative of, or be a consultant to, any person or entity in any business in competition with the Caremark or its subsidiaries in
any state where the they now conduct, or during such 3 year period, begin conducting, any material business. 
  
 (2) Non-solicitation. During the term of this Agreement and for a period of 3 years after the termination of this Agreement, you shall not, except with
the Caremark’s express prior written consent, directly or indirectly, in any capacity, for the benefit of any person or entity: Solicit, interfere with, or divert, any person who is a customer, patient, supplier, employee, salesman, agent or
representative of Caremark or its subsidiaries, in connection with any business in competition with Caremark or its subsidiaries. 
  
 (3) Modification of covenants. If any provision contained in subparagraphs (1) or (2) above is later adjudicated to exceed the time, geographic,
scope, or other limitations permitted by governing law, then such provisions will be reformed in such jurisdiction to the maximum permissible time, geographic, or scope limitations. 
  
 7. Miscellaneous. 
  
 (1) Succession. This Agreement shall inure to the benefit of and shall be binding upon Employer, its successors and assigns. The obligations and duties of
Officer under this Agreement shall be personal and not assignable. 
  

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 (2) Notices. Any notice, request, instruction or other document to be given under this Agreement by any
party to the others shall be in writing and delivered in person or by courier, telegraphed, telexed or sent by facsimile transmission or mailed by certified mail, postage prepaid, return receipt requested (such mailed notice to be effective on the
date of such receipt is acknowledged), as follows: 
  
 If to
Officer: 
  
 Brad Karro 
 Caremark Rx, Inc. 
 3000 Galleria Tower 
 Suite 1000 
 Birmingham, Alabama 35244 
  
 If to Employer: 
  
 Caremark Rx, Inc. 
 3000 Galleria Tower 
 Suite 1000 
 Birmingham, Alabama 35244 
 Attn.: Chief Executive Officer 
  
 or to such other place as either party may designate as to itself by written notice to the other. 
  
 (3) Waiver; Amendment. No provision of this Agreement may be waived except by a written agreement signed by the waiving party. The waiver of any term or
of any condition of this Agreement shall not be deemed to constitute the waiver of any other term or condition. This Agreement may be amended only by a written agreement signed by the parties. 
  
 (4) Governing Law. This Agreement shall be construed under and governed by
the internal laws of the State of Alabama, without regard to Alabama’s choice of law rules. 
  

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 (5) Arbitration. Any disputes or controversies arising under this Agreement shall be settled by
arbitration in Birmingham, Alabama in accordance with the rules of the American Arbitration Association relating to the arbitration of commercial disputes. The determination and findings of such arbitrators shall be final and binding on all parties
and may be enforced, if necessary, in the courts of the State of Alabama. 
  
 (6) Captions. Captions have been inserted solely for the convenience of reference and in no way define, limit or describe the scope or substance of any provisions of this Agreement. 
  
 (7) Prior Agreements. This Agreement shall supersede and void any prior
existing agreements between Employer and Officer regarding payments upon termination or due to change in control. Notwithstanding this section, nothing in this section 6(7) isintended to have any affect upon Officer’s Stock Option Awards or the
terms of Employer’s Stock Option Plans, or the terms of any benefit plans. 
  
 (8) Severability. If this Agreement shall for any reason be or become unenforceable by any party, this Agreement shall thereupon terminate and become unenforceable by the other party as well. In all other respects, if
any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect and, if any provision is held invalid or unenforceable with respect to particular circumstances, it
shall nevertheless remain in full force and effect in all other circumstances. 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 
  

			
	 CAREMARK RX, INC.
	 	 
		
	 /s/ E. Mac Crawford

	 	 /s/ Brad Karro

	 E. Mac Crawford
	 	Brad Karro
	 Chairman and CEO
	 	 

  

 10Amended and Restated Incentive Compensation Plan

 Exhibit 10.17 
  
 AMENDED AND RESTATED 
  
 CAREMARK RX, INC. INCENTIVE COMPENSATION PLAN 
  
 The Amended and Restated Caremark Rx, Inc. Incentive Compensation Plan (the “Incentive Compensation Plan”) is the result of the assumption and
adoption by Caremark Rx, Inc., a Delaware corporation, of the Caremark International Inc. 1992 Incentive Compensation Plan (the “Caremark Plan”), pursuant to the provisions of that certain Plan and Agreement of Merger, dated as of
May 13, 1996, by and among Caremark Rx, Inc., PPM Merger Corporation and Caremark International Inc. 
  
 1. PURPOSE 
  
 The purpose of this Incentive Compensation Plan is to increase stockholder value and to advance the interests of Caremark Rx, Inc. and its subsidiaries
(collectively, “Caremark Rx” or the “Company”) by awarding equity and performance based incentives designed to attract, retain and motivate employees. As used in this Incentive Compensation Plan, the term “subsidiary”
means any business, whether or not incorporated, in which Caremark Rx has an ownership interest. 
  
 2. ADMINISTRATION 
  
 2.1 Administration by the Committee. 
  
 The Incentive Compensation Plan shall be administered by the Compensation Committee of the Board of Directors of Caremark Rx or by any other committee
appointed by the Board of Directors of Caremark Rx (the “Committee”), which Committee shall consist solely of two or more Non- Employee Directors (“Non-Employee Directors”) as such are defined in Rule 16b-3 promulgated pursuant
to the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any successor provision. 
  

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 2.2 Authority. 
  

Subject to the provisions of this Incentive Compensation Plan, the Committee shall have the authority to: 
  
 (a) manage and control the operation of this Incentive
Compensation Plan; 
  
 (b) interpret and construe
any provision of this Incentive Compensation Plan and any Award Agreement granted under it; 
  
 (c) prescribe, amend and rescind rules and regulations relating to this Incentive Compensation Plan; 
  
 (d) make awards under this Incentive Compensation Plan, in
such forms and amounts and subject to such restrictions, limitations and conditions as it deems appropriate, including, without limitation, awards which are made in combination with or in tandem with other awards (whether or not contemporaneously
granted) or compensation in lieu of current or deferred compensation; 
  
 (e) modify the terms of, cancel and reissue, or repurchase outstanding awards; 
  
 (f) prescribe the form of agreement, certificate, or other instrument evidencing any award under this Incentive Compensation Plan (an
“Award Agreement”), provided that any such Award Agreement shall incorporate by reference all of the terms and provisions of this Incentive Compensation Plan as in effect at the time of grant and shall include such other terms and
provisions not contrary to the Incentive Compensation Plan as shall be approved and adopted by the Committee; 
  
 (g) correct any defect or omission and reconcile any inconsistency in this Incentive Compensation Plan or in any award hereunder; and

  
 (h) make all other determinations and take
all other actions as it deems necessary or desirable for the implementation and administration of this Incentive Compensation Plan. 
  

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 The determination of the Committee on matters within its authority shall be conclusive and binding on
Caremark Rx and all other persons. 
  
 3.
PARTICIPATION 
  
 Subject to the terms and conditions of this
Incentive Compensation Plan, the Committee shall determine and designate from time to time the employees, directors and consultants of Caremark Rx who shall receive awards under this Incentive Compensation Plan (“Participants”).

  
 4. SHARES SUBJECT TO THE INCENTIVE
COMPENSATION PLAN 
  
 4.1 Number of Shares Reserved. 

 
 Shares of common stock, $.001 par value per share, of Caremark Rx
(“Common Stock”) shall be available for awards under this Incentive Compensation Plan. To the extent provided by resolution of the Committee, such shares may be uncertificated. Subject to adjustment in accordance with Sections 4.2 and 4.3,
the aggregate number of shares of Common Stock available for awards under this Incentive Compensation Plan shall be 13,771,964 shares. 
  
 4.2 Reusage of Shares. 
  
 (a) In the event of the exercise or termination (by reason of forfeiture, expiration, cancellation, surrender or otherwise) of any award
under this Incentive Compensation Plan, that number of shares of Common Stock that was subject to the award but not delivered to the Participant shall again be available for awards under this Incentive Compensation Plan. 
  

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 (b) In the event that shares of Common Stock are delivered under this Incentive
Compensation Plan as Restricted Stock, as described in Section 6 hereof, or pursuant to a stock award and are thereafter forfeited or reacquired by the Company pursuant to rights reserved upon the award thereof, such forfeited or reacquired
shares shall again be available for awards under this Incentive Compensation Plan. 
  
 (c) Notwithstanding the provisions of paragraphs (a) or (b) of this Section 4.2, the following shares shall not be
available for reissuance under this Incentive Compensation Plan: (i) shares with respect to which the Participant has received the benefits of ownership (other than voting rights), either in the form of dividends or otherwise; (ii) shares
which are withheld from any award or payment under this Incentive Compensation Plan to satisfy tax withholding obligations (as described in Section 7.5(e)); (iii) shares which are surrendered to fulfill tax obligations (as described in
Section 7.5(e)); and (iv) shares which are surrendered in payment of the Option Price (as defined in Section 5.2) upon the exercise of a Stock Option, as described in Section 5 hereof. 
  
 4.3 Adjustments to Shares Reserved. 
  
 In the event of any merger, consolidation, reorganization, recapitalization,
spin-off, stock dividend, stock split, reverse stock split, exchange or other distribution with respect to shares of Common Stock or other change in the corporate structure or capitalization affecting the Common Stock, the type and number of shares
of stock which are or may be subject to awards under this Incentive Compensation Plan and the terms of any outstanding awards (including the price at which shares of stock may be issued pursuant to an outstanding award) shall be equitably adjusted
by the Committee, in its sole discretion, to preserve the value of benefits awarded or to be awarded to Participants under this Incentive Compensation Plan. 
  

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 5. STOCK OPTIONS 
  
 5.1 Awards. 
  
 Subject to the terms and conditions of this Incentive Compensation Plan, the Committee shall designate the employees to whom options to purchase shares of
Common Stock (“Stock Options”) are to be awarded under this Incentive Compensation Plan and shall determine the number, type and terms of the Stock Options to be awarded to each of them; provided, however, that each Stock Option designated
as an “Incentive Stock Option” (as defined below) shall expire on the earlier of the date provided by the option terms or the date which is ten years after the date of grant. In addition, each Stock Option awarded to any person who owns,
directly or indirectly (or is treated as owning by reason of attribution rules, currently set forth in Section 424 of the Internal Revenue Code of 1986, as amended (the “Code”)), stock of the Company constituting more than 10% of the
total combined voting power of the Company’s outstanding stock, or the stock of any of its corporate subsidiaries, shall expire on the earlier of the date provided by the option terms or the date which is five years after the date of the grant.
Each Stock Option awarded under this Incentive Compensation Plan shall be a “nonqualified stock option” for tax purposes, unless the Stock Option satisfies all of the requirements of Section 422 of the Code and the Committee
designates such Stock Option as an “Incentive Stock Option”. 
  
 5.2 Manner of Exercise. 
  
 A Stock Option may be
exercised, in whole or in part, by giving proper notification to the Corporate Secretary of Caremark Rx prior to the date on which the Stock Option expires; provided, however, that a Stock Option may only be exercised with respect to whole shares of
Common Stock. Such notice shall specify the number of shares of Common Stock to be purchased and shall be accompanied by payment of the Option Price for such shares (the “Option Price”). The Option Price of a Stock Option shall be
determined in accordance with the applicable provisions of the Code and shall in no event be less than the Fair Market Value (as defined in Section 7.12) of the stock covered by the Stock Option at the date of the grant; provided, however, that
the Option Price of a Stock Option granted to any person who owns, directly or indirectly (or is treated as owning by reason of attribution rules, currently set forth in Section 424 of the Code), stock of the Company constituting more than 10%
of the total combined voting power of all classes of outstanding stock of the Company or of any affiliate of the Company, shall in no event be less than 110% of such Fair Market Value. 
  

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 5.3 Payment of Option Price. 
  
 No shares of Common Stock shall be issued on the exercise of an Option unless paid for in full at the time of exercise.
Payment shall be made in cash, which may be paid by check or other instrument acceptable to the Company. In addition, subject to compliance with applicable laws and regulations and such conditions as the Committee may impose, the Committee may elect
to accept payment in shares of Common Stock of the Company which are already owned by the optionee, valued at the Fair Market Value thereof on the date of exercise. The Committee may also allow an optionee to exercise an Option by use of proceeds to
be received from the sale of Common Stock issuable pursuant to the Option being exercised. 
  
 5.4 Vesting of Stock Options. 
  
 Except as provided by the Committee in the applicable Award Agreement, Stock Options shall vest and become exercisable as follows: 
  
 (a) 34% of the Stock Options granted shall vest on the Stock Option grant date; 
  
 (b) 33% of the Stock Options granted shall vest on each of
the first anniversary and second anniversary of the Stock Option grant date; provided, however, that if during the first year after the Stock Option grant date, the stock price of the Common Stock closes at or above $12.00 (or such other price as
determined by the Committee and set forth in the applicable Award Agreement) for any twenty (20) out of thirty (30) consecutive trading days, the 33% of the Stock Options due to vest on the first anniversary of the Stock Option grant date
shall vest immediately at the end of such 20th day, and provided, however, that if during the second year after the Stock Option grant date, the stock price of the Common Stock closes at or above $18.00 (or such other price as determined by the
Committee and set forth in the applicable Award Agreement) for any twenty (20) out of thirty (30) consecutive trading days, the 33% of the Stock Options due to vest on the second anniversary of the Stock Option grant date shall vest
immediately at the end of such 20th day. 
  

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 6. RESTRICTED STOCK 
  
 6.1 Awards. 
  
 Subject to the terms and conditions of this Incentive Compensation Plan, the Committee shall designate the Participants to whom shares of “Restricted
Stock” shall be awarded under this Incentive Compensation Plan and determine the number of shares and the terms and conditions of each such award; provided, however, that newly issued shares shall be issued as Restricted Stock only to the
extent that the Committee determines that past services of the Participant constitute adequate consideration for at least the par value thereof. Each Restricted Stock award shall entitle the Participant to receive shares of Common Stock upon the
terms and conditions specified by the Committee and subject to the following provisions of this Section 6. 
  
 6.2 Restrictions. 
  
 All shares of Restricted Stock transferred or sold hereunder shall be subject to such restrictions as the Committee may determine, including, without
limitation, any or all of the following: 
  
 (a)
a required period of employment with the Company, as determined by the Committee, prior to the vesting of the shares of Restricted Stock; 
  
 (b) a prohibition against the sale, assignment, transfer, pledge, hypothecation or other encumbrance of the shares of Restricted Stock for
a specified period as determined by the Committee; 
  
 (c) a requirement that the holder of shares of Restricted Stock forfeit (or in the case of shares sold to a Participant, resell back to the Company at his cost) all or a part of such shares in the event of termination of his employment
during any period in which such shares are subject to restrictions; and 
  

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 (d) a prohibition against employment of the holder of such Restricted Stock by any
competitor of the Company or against such holder’s dissemination of any secret or confidential information belonging to the Company. 
  
 All restrictions on shares of Restricted Stock awarded pursuant to this Incentive Compensation Plan shall expire at such time or times as the Committee
shall specify. 
  
 6.3 Registration of Shares. 
  
 Shares of Restricted Stock awarded pursuant to this Incentive Compensation
Plan shall be registered in the name of the Participant and, if such shares are certificated, at the discretion of the Committee, may be deposited in a bank designated by the Committee or with Caremark Rx. The Committee may require a stock power
endorsed in blank with respect to shares of Restricted Stock whether or not certificated. 
  
 6.4 Stockholder Rights. 
  
 Subject to the terms and conditions of this Incentive Compensation Plan, during any period in which shares of Restricted Stock are subject to forfeiture or restrictions on transfer, each Participant who has been awarded shares of Restricted
Stock shall have such rights of a stockholder with respect to such shares as the Committee may designate at the time of the award, including the right to vote such shares and the right to receive all dividends paid on such shares. Unless otherwise
provided by the Committee, stock dividends or dividends in kind and, except as otherwise provided by Section 7.10, any other securities distributed with respect to Restricted Stock shall be restricted to the same extent and subject to the same
terms and conditions as the Restricted Stock to which they are attributable. 
  
 6.5 Lapse of Restrictions. 
  
 Subject to the terms and conditions of this Incentive Compensation Plan, at the end of any time period during which the shares of 
  

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 Restricted Stock are subject to forfeiture or restrictions on transfer, such shares will be delivered free of all
restrictions to the Participant (or to the Participant’s legal representative, beneficiary or heir). 
  
 6.6 Substitution of Cash. 
  
 The Committee may, in its sole discretion, substitute cash equal to the Fair Market Value (as described in Section 7.11) (determined as of the date
of the distribution) of shares of Common Stock otherwise required to be distributed to a Participant in accordance with this Section 6. 
  
 7. GENERAL 
  
 7.1 Effective Date. 
  
 This Incentive Compensation Plan became effective the date that the Caremark Plan was adopted by the Board of Directors of the former parent corporation
of Caremark International Inc. 
  
 7.2 Duration. 
  
 This Incentive Compensation Plan shall remain in force and effect until all
awards made under this Incentive Compensation Plan have either been satisfied by the issuance of shares of Common Stock or the payment of cash or been terminated in accordance with the terms of this Incentive Compensation Plan or the award and until
all restrictions imposed on shares of Common Stock issued under this Incentive Compensation Plan have lapsed. No Incentive Stock Option award may be made under this Incentive Compensation Plan after the tenth anniversary of the date that the
Caremark Plan was adopted by the Board of Directors of the former parent corporation of Caremark International Inc. 
  
 7.3 Non-Transferability of Incentives. 
  
 (a) No share of Restricted Stock under this Incentive Compensation Plan may be transferred, pledged or assigned by the holder thereof
(except, in the event of the holder’s death, by will or the laws of descent and distribution), and the Company shall not be 
  

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 required to recognize any attempted assignment of such rights by any Participant. During a
Participant’s lifetime, awards may be exercised only by him or by his guardian or legal representative. 
  
 (b) (1) Incentive Stock Options. No incentive stock option granted under the Incentive Compensation Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution. Further, all incentive stock options granted to a Participant under the Incentive Compensation Plan shall be exercisable during
his or her lifetime only by such Participant. 
  
 (2) Nonqualified
Stock Options. No nonqualified stock option granted under the Incentive Compensation Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.
Notwithstanding the foregoing, to the extent not prohibited by any statute, rule or regulation applicable to the Incentive Compensation Plan, the nonqualified stock options or the registration with the Securities and Exchange Commission of the
Common Stock to be issued upon exercise of the nonqualified stock options, the Committee may, in its discretion, authorize all or a portion of nonqualified stock options granted to a Participant to be on terms which permit transfer by such
Participant to (i) the spouse, children or grandchildren of the Participant (“Immediate Family Members”), (ii) a trust or trusts for the exclusive benefit of such Immediate Family Members, or (iii) a partnership in which
such Immediate Family Members are the only partners, provided that (x) there may be no consideration for any such transfer, (y) the Award Agreement pursuant to which such nonqualified stock options are granted must be approved by the
Committee, and must expressly provide for transferability in a manner consistent with this Section, and (z) subsequent transfers of transferred nonqualified stock options shall be prohibited except those by will or the laws of descent and
distribution. Following transfer, any such nonqualified stock options shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that for purposes of this Incentive Compensation Plan, the
term “Participant” shall be deemed to refer to the transferee. The events of termination of employment shall continue to be applied with respect to the original Participant, following which the nonqualified stock 
  

 10 

 options shall be exercisable by the transferee only to the extent, and for the periods specified in Section 7.4.
Notwithstanding the foregoing, should the Committee provide that nonqualified stock options granted be transferable, the Company by such action incurs no obligation to notify or otherwise provide notice to a transferee of early termination of the
nonqualified stock option. In the event of a transfer, as set forth above, the original Participant is and will remain subject to and responsible for any applicable withholding taxes upon the exercise of such nonqualified stock options. 

 
 7.4 Effect of Termination of Employment or Death. 
  
 (a) Except as otherwise provided in an Award Agreement or as
provided in paragraphs (b) and (c) below, each Stock Option, to the extent it has not been previously exercised, shall terminate upon the earliest to occur of: (a) the expiration of the period set forth in the Award Agreement;
(b) the expiration of 12 months following the Participant’s death or permanent disability; (c) immediately upon the date the Participant ceases to be an employee, officer, consultant or director or otherwise affiliated with the
Company for cause; or (d) the expiration of 90 days following the date the Participant ceases to be an employee, officer, consultant or director or otherwise affiliated with the Company for any reason other than cause, death or permanent
disability. 
  
 (b) Except as otherwise provided
in an Award Agreement, any Stock Option granted after September 21, 1998 (a “Secondary Option”), to the extent it has not been previously exercised, shall terminate upon the earliest to occur of: (a) the expiration of the
Secondary Option period set forth in the Award Agreement; (b) the expiration of 12 months following the Participant’s death or permanent disability; (c) immediately upon termination for Cause (as defined below); or (d) the
expiration of 90 days following the Participant’s termination of employment for any reason other than Cause (as defined below), Change in Control (as defined in Section 7.10), death or permanent disability. 
  
 For purposes of the preceding sentence only, Cause

  

 11 

 means the Company, subsidiary or an affiliate having cause to terminate a Participant’s status as an
employee, officer, consultant or director or other affiliation with the Company under any existing employment agreement between the Participant and the Company, a subsidiary or an affiliate or, in the absence of such an employment agreement, upon
(i) the determination by the Committee that the Participant has ceased to perform his duties to the Company, a subsidiary or an affiliate (other than as a result of his incapacity due to physical or mental illness or injury), which failure
amounts to an intentional and extended neglect of his duties to such party, (ii) the Committee’s determination that the Participant has engaged or is about to engage in conduct materially injurious to the Company, a subsidiary or an
affiliate, or (iii) the Participant having been convicted of a felony. 
  
 (c) Notwithstanding the foregoing, any Secondary Option, to the extent it has not been previously exercised prior to a Change in Control (as defined in Section 7.10) shall remain exercisable for its full original
term upon and following such Change in Control. 
  
 7.5 Compliance with Applicable Law and Withholding. 
  
 (a) Notwithstanding any other provision of this Incentive Compensation Plan, Caremark Rx shall have no obligation to issue any shares of Common Stock under this Incentive Compensation Plan if such issuance would
violate any applicable law or any applicable regulation or requirement of any securities exchange or similar entity. 
  
 (b) Prior to the issuance of any shares of Common Stock under this Incentive Compensation Plan, Caremark Rx or the Company may require a
written statement that the recipient is acquiring the shares for investment and not for the purpose or with the intention of distributing the shares and will not dispose of them in violation of the registration requirements of the Securities Act of
1933. 
  
 (c) With respect to any person who is
subject to Section 16(a) of the Exchange Act, the Committee may, at any time, add such 
  

 12 

 conditions and limitations to any award under this Incentive Compensation Plan that it deems necessary or
desirable to comply with the requirements of Rule 16b-3. 
  
 (d) If, at any time, Caremark Rx, in its sole discretion, determines that the listing, registration or qualification (or any updating of any such document) of any type of award, or the shares of Common Stock issuable
pursuant thereto, is necessary on any securities exchange or under any federal or state securities or blue sky law, or that the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection
with, any award, the issuance of shares of Common Stock pursuant to any award, or the removal of any restrictions imposed on shares subject to an award, such award shall not be made and the shares of Common Stock shall not be issued or such
restrictions shall not be removed, as the case may be, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to Caremark Rx. 

 
 (e) All awards and payments under this Incentive
Compensation Plan are subject to withholding of all applicable taxes and the Company shall have the right to withhold from any award under this Incentive Compensation Plan or to collect as a condition of any payment under this Incentive Compensation
Plan, as applicable, any taxes required by law to be withheld. To the extent provided by the Committee, a Participant may elect to have any distribution otherwise required to be made under this Incentive Compensation Plan to be withheld or to
surrender to the Company shares of Common Stock already owned by the Participant to fulfill any tax withholding obligation. 
  
 7.6 No Continued Employment. 
  
 The Incentive Compensation Plan does not constitute a contract of employment or continued service, and participation in this Incentive Compensation Plan
will not give any employee or Participant the right to be retained in the employ of the Company or the right to continue as a director of 
  

 13 

 the Company or any right or claim to any benefit under this Incentive Compensation Plan unless such right or claim has
specifically accrued under the terms of this Incentive Compensation Plan or the terms of any award under this Incentive Compensation Plan. 
  
 7.7 Treatment as a Stockholder. 
  
 Any award to a Participant under this Incentive Compensation Plan shall not create any rights in such Participant as a stockholder of Caremark Rx until
shares of Common Stock are registered in the name of the Participant. 
  
 7.8 Deferral Permitted. 
  
 Payment of cash to a
Participant or distribution of any shares of Common Stock to which a Participant is entitled under any award shall be made as provided in the terms of the award. Payment may be deferred at the option of the Participant to the extent provided in the
award. 
  
 7.9 Amendment of the Incentive Compensation Plan.

  
 The Committee may, at any time and in any manner, amend,
suspend, or terminate this Incentive Compensation Plan or any award outstanding under this Incentive Compensation Plan; provided, however, that no such amendment or discontinuance shall: 
  
 (a) be made without stockholder approval: (1) to the extent such approval is required by law, agreement
or the rules of any exchange or automated quotation system upon which the Common Stock is listed or quoted or (2) to the extent that any outstanding Stock Option is canceled and regranted or repriced; 
  
 (b) adversely alter or impair the rights of Participants
with respect to awards previously made under this Incentive Compensation Plan without the consent of the holder thereof; or 
  

 14 

 (c) make any change that would disqualify any provision of this Incentive Compensation
Plan, intended to be so qualified, from the exemption provided by Rule 16b-3. 
  
 7.10 Immediate Acceleration of Incentives. 
  
 (a) Notwithstanding any provision in this Incentive Compensation Plan to the contrary or the normal terms of vesting under any award, (i) the restrictions on all shares of Restricted Stock awarded shall lapse
immediately and (ii) all outstanding Stock Options will become exercisable immediately, if a Change in Control (as defined below) occurs. For purposes of this Incentive Compensation Plan, a “Change in Control” shall have occurred as
of the first day that any one or more of the following conditions shall have been satisfied: 
  
 (1) The acquisition by any Person of Beneficial Ownership of 20% or more of either (i) the then outstanding shares of Common Stock of the Company, or (ii) the combined voting power of the outstanding voting
securities of the Company entitled to vote generally in the selection of Directors; provided, however, that for purposes of this subsection, the following transactions shall not constitute a Change of Control: (A) any acquisition directly from
the Company through a public offering of shares of Common Stock of the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any
corporation controlled by the Company, or (D) any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (3) below; 
  
 (2) The cessation, for any reason, of the individuals who constitute the Company’s Board
of Directors as of the date hereof (“Incumbent Board”) to constitute at least a majority of the Company’s Board of Directors; provided, however, that any individual becoming a Director following the date hereof whose election, or
nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the Directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose 
  

 15 

 initial assumption of office occurs because of an actual or threatened election contest with respect to the election or
removal of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Company’s Board of Directors; 
  
 (3) The consummation of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of
the Company (“Business Combination”) unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the outstanding shares of Common Stock of
the Company and the outstanding voting securities of the Company immediately before such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of Common Stock and the combined
voting power of the then outstanding voting securities entitled to vote generally in the election of Directors, as the case may be, of the Company resulting from such Business Combination (including, without limitation, a corporation which as a
result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately before such Business
Combination of the outstanding shares of Common Stock and the outstanding voting securities of the Company, as the case may be; (ii) no party (excluding any corporation resulting from such Business Combination or any employee benefit plan (or
related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed before the Business Combination; and (iii) at least a majority of the members of
the board of directors of the corporation resulting from such Business Combination were members of the Company’s Board of Directors at the time of the execution of the initial agreement, or of the action of the Company’s Board of
Directors, providing for such Business Combination; or 
  
 (4) The approval by the
stockholders of the Company of a complete liquidation or dissolution of the Company. 
  

 16 

 (5) Any other condition or event (i) that the Committee determines to be a “Change in Control” within the
meaning of this Section 7.10 and (ii) that is set forth as a supplement to this Section 7.10 in the Option Agreement. 
  
 The term “Beneficial Owner” or “Beneficial Ownership”, as used in this Section 7.10, has the meaning ascribed to such term in
Rule 13d-3 of the General Rules and Regulations under the Exchange Act. The term “Person”, as used in this Section 7.10, shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections
13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof. 
  
 (b) Notwithstanding any other provision of this Incentive Compensation Plan or any Award Agreement provision, the provisions of this Section 7.10 may
not be terminated, amended, or modified on or after the date of a Change in Control to affect adversely any award theretofore granted under the Incentive Compensation Plan without the prior written consent of the Participant with respect to said
Participant’s outstanding awards. 
  
 7.11 Sale of Business
Unit of Company. 
  
 The Committee, in connection with the sale
of any subsidiary, affiliate, division or other business unit of the Company, may within the Committee’s sole and absolute discretion (1) cause any or all Stock Options granted hereunder to Participants whose Stock Options or rights under
Stock Options will be adversely affected by such transaction (a) to become immediately exercisable, or (b) to remain exercisable after such transaction for such period as the Committee deems appropriate under the circumstances, or both
(a) and (b), or (2) cause the restrictions on any or all shares of Restricted Stock awarded hereunder to Participants whose Restricted Stock will be adversely affected by such transaction to lapse immediately. The provision of this
Section 7.11 and the actions of the Committee taken pursuant to this Section 7.11 shall be effective upon action of the Committee alone without amendment to any Award Agreement or the consent of any Participant. 
  
 7.12 Definition of Fair Market Value. 
  
 Except as otherwise determined by the Committee, the “Fair 

 

 17 

 Market Value” of a share of Common Stock as of any date shall be equal to the closing sale price of a share of
Common Stock as reported on The National Association of Securities Dealers’ New York Stock Exchange Composite Reporting Tape (or if the Common Stock is not traded on The New York Stock Exchange, the closing sale price on the exchange on which
it is traded or as reported by an applicable automated quotation system) (the “Composite Tape”), on the applicable date or, if no sales of Common Stock are reported on such date, the closing sale price of a share of Common Stock on the
date the Common Stock was last reported on the Composite Tape (or such other exchange or automated quotation system, if applicable). 
  

 18

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