Document:

Separation Agreement between the Registrant and EVP of Caremark

 Exhibit 10.39 
 SEPARATION AGREEMENT AND GENERAL RELEASE 
 This
Separation Agreement and General Release (“Agreement”) dated as of December 21, 2009 between Howard A. McLure (“Mr. McLure” or “Executive”) and CVS Caremark Corporation (the “Company”) shall be effective
eight (8) days after it is signed by Executive (the “Effective Date”), so long as the Agreement is also signed by the Company’s Senior Vice President, Human Resources. 
 WHEREAS, Executive’s employment was transferred from Caremark Rx, Inc. (“Caremark”) to the Company effective as of
March 22, 2007, pursuant to a Term Sheet agreement dated November 1, 2006, which Term Sheet agreement was amended effective December 31, 2008; 
 WHEREAS, Executive and the Company desire to enter into an agreement concerning the terms and conditions of Executive’s separation from employment with the Company; 
 NOW THEREFORE, in consideration of the foregoing, and of the promises and mutual covenants contained herein, Executive and the Company agree
as follows: 
 1.    SEPARATION FROM EMPLOYMENT. Executive was employed with the Company through and including
November 27, 2009 (the “Separation Date”), and his employment with the Company and/or any of its subsidiaries ended as of the close of business on the Separation Date. Executive is entitled to receive his salary and benefits through
the Separation Date, and Executive’s entitlement to salary, benefits or any other compensation from the Company ended as of the Separation Date, except as set forth in this Agreement. 
 2.    ACCRUED PAID TIME OFF AND CASH BONUS PAYMENTS. Prior to the Effective Date of this Agreement, the Company paid
Executive, and Executive acknowledges receipt, of pay for one hundred eighty-four (184) hours of earned, unused Paid Time Off, which payment the parties acknowledge Executive was entitled to receive whether or not he signs this Agreement.
Executive shall be eligible to receive a Management Incentive Plan (“MIP”) award in respect of 2009 performance, subject to the terms of the MIP for Business Planning Committee (“BPC”) members, which award shall be determined
pursuant to the terms of the MIP for BPC members and paid to Executive at the same time as other senior members of the Company’s management are paid their MIP awards, provided that the MIP award shall be calculated as though Executive had been
employed by the Company through December 31, 2009. 
 3.    DISTRIBUTION OF DEFERRAL ACCOUNT AND TERM SHEET RSU
AWARD. The Deferral Account described in the Term Sheet, including the Deferred Amount and the Deferred Stock Units, shall be distributed to Executive promptly after May 27, 2010, in accordance with the Term Sheet. In addition, the
parties agree that the 43,720 RSUs from RSU Award No. CX200702, which were granted to Executive in accordance with the provision for an RSU Award set forth in the Term Sheet, shall be vested as of the Separation Date and shall be

  

					
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delivered to Executive promptly after May 27, 2010, such delivery date being the minimum delay necessary to avoid adverse tax consequences under Section 409A. 
 4.    2008 RETENTION RSU AWARD. Pursuant to Executive’s CVS Caremark Corporation Restricted Stock Unit Grant
Agreement with a Grant Date of April 1, 2008 (the “2008 Retention RSU Agreement”), Executive was granted 121,448 Restricted Stock Units (RSUs), subject to the terms of the 2008 Retention RSU Agreement. The Company agrees that 60,724
of the RSUs granted to Executive pursuant to the 2008 Retention RSU Agreement shall vest as of the Separation Date and the Shares shall be distributed to Executive within 90 days following the Separation Date. The parties agree that the remaining
RSUs granted pursuant to the 2008 Retention RSU Agreement shall be forfeited effective as of the close of business on the Separation Date. 
 5.    LTIP AWARD. Executive shall be entitled to an Award under the Company’s Long Term Incentive Plan (“LTIP”) for LTIP Cycle VI (2007-2009), which Award shall be payable at the same time
when other senior members of the Company’s management are paid their LTIP awards for Cycle VI and in accordance with the terms of the LTIP, including the criteria established for payment of Cycle VI Awards, provided that the Award
shall be calculated as though Executive had been employed by the Company through December 31, 2009. Executive shall not be entitled to any LTIP Award for LTIP Cycles VII (2008-2010) or VIII (2009-2011). 
 6.    STOCK OPTIONS. The rights and obligations of Executive in respect of stock options granted to Executive by Caremark
prior to March 22, 2007, will continue to be governed by the terms of the compensation plans authorizing the granting of such options, as well as the agreements granting such options, and in accordance with such plans and grant agreements, such
stock options may be exercised within 90 days following the Separation Date, and if not exercised within such period, shall be forfeited. Any stock options granted to Executive by the Company after March 22, 2007, that have vested as of
the Separation Date shall be governed by the Company’s 1997 Incentive Compensation Plan (the “ICP”), as amended, and the agreements granting such options, and in accordance with the ICP and such grant agreements, such stock options
may be exercised within 90 days following the Separation Date, and if not exercised within such period, shall be forfeited. Any stock options granted to Executive by the Company after March 22, 2007, and that were not vested as of the
Separation Date, have been forfeited. 
 7.    POST-EMPLOYMENT BENEFITS. For two years following the
Separation Date, the Company shall continue to provide Executive with the following benefits: (a) medical and dental insurance under the plan (or successor to the plan) in which Mr. McLure participated as of the Separation Date, provided
that Executive makes timely payments to the Company of the portion of the monthly medical and dental premium which would have been deducted from his pay check if he were an employee of the Company; (b) life insurance under the plan (or
successor to the plan) in which Executive participated as of the Separation Date; (c) supplemental long term disability insurance under the plan (or successor to the plan) in which Executive participated as of the Separation Date; (d) an
executive survivor insurance benefit under the plan (or successor to the plan) in which Executive participated as of the Separation Date; and (e) reimbursement in accordance with applicable Company policies of the cost, up to the established
maximum amount per calendar year, of financial planning services. 
  

					
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 8.    RETIREMENT BENEFITS. The parties acknowledge and agree that
(a) Executive participated in the CareSave 401(k) plan, and Executive’s rights to benefits under that plan following the Separation Date will be governed by the terms of that plan; (b) Executive participated in Caremark’s Capital
Accumulation Account (“CAA”) plan, and shall be eligible for CAA plan benefits pursuant to the terms of that plan following the Separation Date; and (c) Executive participated in the Caremark Special Retirement Plan (“SRP”),
and shall be eligible for SRP benefits in accordance with the terms of the SRP. Nothing in this Agreement shall alter any rights Executive may have under the Caremark Rx, Inc. Deferred Compensation Plan. 
 9.    FICA PAYMENT. Executive agrees that on or before December 31, 2009, he shall deliver or cause to be delivered
to the Company a check payable to CVS Pharmacy, Inc. in the amount of $26,043.00, in respect of the Medicare FICA tax on Executive’s SRP benefit. 
 10.    RETURN OF PROPERTY. Executive agrees that on or before the Separation Date he shall return to the Company all property of CVS Caremark Corporation and/or any of its subsidiaries or affiliates
(“CVS Caremark”) in his control or possession, including but not limited to the originals and copies of any information provided to or acquired by Executive in connection with the performance of his duties for CVS Caremark or any of its
predecessors, including but not limited to all files, correspondence, communications, memoranda, e-mails, slides, records, and all other documents, no matter how produced or reproduced, all computer equipment, programs and files, and all office keys
and access cards, it being hereby acknowledged that all of said items are the sole and exclusive property of CVS Caremark. 
 11.    RESTRICTIVE COVENANTS. 
 For two (2) years following the Separation Date, Executive
shall not, without the Company’s prior written consent (i) 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 Company or its subsidiaries in any state where the Company or any of its affiliates are then conducting any
business; or (ii) directly or indirectly, in any capacity, for the benefit of any person or entity, solicit, interfere with, hire, or divert, any person who is a customer, patient, supplier, employee, salesman, agent or representative of the
Company or its subsidiaries, in connection with any business in competition with the Company or its subsidiaries. Executive acknowledges and agrees that the restrictive covenants above and the covenants of the Executive below are essential to the
Company. 
 At no time shall Executive divulge any secret or confidential information, knowledge or data relating to the Company, any of its
subsidiaries or affiliates, or any of their predecessors, which the Executive has obtained in connection with Executive’s employment or services on behalf of CVS Caremark or any predecessors and which has not become public knowledge (other than
by the Executive’s violation of the foregoing). 
 The foregoing restrictive covenants shall be enforceable by injunction, it being agreed
that the damages suffered by the Company or its subsidiaries from any breach or threatened breach of any

  

					
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of these restrictive covenants could not be adequately remedied solely by monetary damages alone. 
 12.    COOPERATION AND NOTIFICATION TO COMPANY. 
 Executive
agrees to cooperate with the Company following the Separation Date by making himself reasonably available to testify on behalf of CVS Caremark in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, and to
assist CVS Caremark in any such action, suit, or proceeding, by providing information and meeting and consulting with the board of directors of the Company or its representatives or counsel, or representatives or counsel to CVS Caremark as
reasonably requested; provided, however, that the same does not materially interfere with Executive’s then current professional activities. The Company agrees to reimburse Executive, on an after-tax basis, for all expenses actually
incurred in connection with Executive’s provision of testimony or assistance. 
 In the event Executive receives a subpoena, deposition
notice, interview request, or other process or order which requires or may reasonably be construed to require Executive to produce confidential information or trade secrets of CVS Caremark, Executive shall promptly: (i) notify the Company of
the item, document, or information sought by such subpoena, deposition notice, interview request, or other process or order; (ii) furnish the Company with a copy of said subpoena, deposition notice, interview request, or other process or order;
and (iii) provide reasonable cooperation with respect to any procedure that CVS Caremark may initiate at its expense to protect CVS Caremark confidential information, trade secrets or other interests. If CVS Caremark objects to the subpoena,
deposition notice, interview request, process, or order, Executive shall cooperate to permit CVS Caremark to ensure that there shall be no disclosure until the court or other applicable entity has ruled upon the objection or otherwise ordered
Executive to make such disclosure, and then only in accordance with the ruling so made, unless Executive is ordered by the court or other applicable entity to do so in the interim. If no such objection is made despite a reasonable opportunity to do
so, Executive shall be entitled to comply with the subpoena, deposition notice, interview request, or other process or order provided that Executive has fulfilled the above obligations. 
 13.    NON-DISPARAGEMENT. Executive agrees that he will not make any statements that disparage the business or reputation of CVS Caremark, and/or any officer, director or
employee of CVS Caremark. The Company agrees that it will instruct Thomas M. Ryan, the Company’s President, CEO and Chairman of the Board, not to make, and not to direct any other employee of the Company to make, any disparaging statements
regarding Executive. Notwithstanding the foregoing, nothing in this Agreement shall prohibit Executive or Mr. Ryan from (a) making truthful statements or disclosures that are required by applicable law, regulation or legal process;
(b) requesting, receiving or discussing confidential legal advice; or (c) making confidential statements to officers of the Company or members of the Company’s Board of Directors. 
 14.    INDEMNIFICATION. The Company acknowledges and agrees that, pursuant to Article Seventh of the Company’s
Amended and Restated Certificate of Incorporation (i) each person (and the heirs, executors or administrators of such person) who was or is a party, or is threatened to be made a party to, or is involved in any threatened, pending or completed
action,

  

					
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suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such person was or is an officer of the Company, shall be indemnified and held harmless by
the Company to the fullest extent permitted by Delaware Law; (ii) the right to indemnification in Article Seventh includes the right to be paid by the Company the expenses incurred in connection with such proceeding in advance of its final
disposition to the fullest extent authorized by Delaware law; and (iii) the right of indemnification conferred in Article Seventh is a contractual right. 
 15.    NO OTHER COMPENSATION; SUFFICIENCY OF CONSIDERATION. Executive acknowledges and agrees that the payments and benefits described above exceed that to which he is
entitled under the Term Sheet agreement, as amended, and are good and valuable consideration for the compensation, benefits, general release, covenant not to sue, and the other promises and terms in this Agreement. The parties agree that, except as
specifically set forth in this Agreement, Executive is not and shall not be entitled to any salary, bonus, equity rights, benefits or other compensation of any kind, except as required by law. 
 16.    GENERAL RELEASE OF CLAIMS. Executive hereby releases and forever discharges CVS Caremark Corporation and each of
its divisions, affiliates, subsidiaries and operating companies, and the respective officers, directors, employees, agents and affiliates of each of them (collectively, the “Released Parties”) from any and all causes of action, lawsuits,
proceedings, complaints, charges, debts, contracts, judgments, damages, and claims against the Released Parties, whether known or unknown, which Executive ever had, now has or which Executive or Executive’s heirs, executors, administrators,
successors or assigns may have prior to the date this Release is signed by Executive, due to any matter whatsoever relating to Executive’s employment, compensation, benefits, and/or termination of Executive’s employment with CVS Caremark
and/or any of its subsidiaries or predecessors (collectively, the “Released Claims). The Released Claims include, but are not limited to, any claim that any of the Released Parties violated the National Labor Relations Act, Title VII of the
Civil Rights Act of 1964, Sections 1981 through 1988 of Title 42 of the United States Code, the Employee Retirement Income Security Act, the Immigration Reform and Control Act, the Americans with Disabilities Act, the Age Discrimination in
Employment Act, the Family Medical Leave Act, and/or the Occupational Safety and Health Act; any claim that any of the Released Parties violated any other federal, state or local statute, law, regulation or ordinance; any claim of unlawful
discrimination of any kind; any public policy, contract, tort, or common law claim; and any claim for costs, fees, or other expenses including attorney’s fees incurred in these matters. Notwithstanding the foregoing, the Released Claims do not
include the release of (i) any rights that Executive cannot lawfully waive, (ii) any claims by Executive that the Company has breached the terms of this Agreement, or (iii) any rights Executive has to defense and indemnification from
the Company or its insurers. 
 17.    COVENANT NOT TO SUE. Executive agrees not to file or initiate a lawsuit
in any court or initiate an arbitration proceeding asserting any of the Released Claims against any of the Released Parties. Executive further agrees that he will not permit himself to be a member of any class in any court or in any arbitration
proceeding seeking relief against the Released Parties based on claims released by this Release, and that even if a court or arbitrator rules that he may not waive a claim released by this Release, he will not accept any money damages or other
relief

  

					
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in connection with any other action or proceeding asserting any of the Released Claims against any of the Released Parties. Executive agrees to reimburse CVS for any legal fees that CVS incurs as
a result of any knowing breach of this paragraph by Executive. 
 18.    TAX ISSUES. To the extent that
Executive receives any payments or benefits due to the merger of CVS Corporation and Caremark Rx Inc. and such payments or benefits result in an excise tax payable by the Executive under § 4999 of the Internal Revenue Code (“IRC”),
the Company shall promptly pay to the Executive an additional amount necessary to place the Executive in the after-tax position that Executive would be in if IRC § 4999 did not apply with respect to such payments or benefits received by the
Executive, provided, however, that any payment of such amount to the Executive shall be delayed to the minimum extent necessary to avoid the imposition of additional tax under IRC § 409A. 
 19.    NO PENDING ACTIONS. Executive represents that as of the date he signs this Agreement, Executive has not filed or
initiated, or caused to be filed or initiated, any complaint, claim, action or lawsuit of any kind against any of the Released Parties in any federal, state or local court or agency. 
 20.    WAIVER OF DAMAGES. Nothing in this Agreement is intended to or shall interfere with Executive’s right to participate in a proceeding with any appropriate
federal, state or local government agency enforcing federal, state or local discrimination laws and/or cooperating with said agency in its investigation. Executive shall not, however, be entitled to receive any relief, recovery or monies in
connection with any complaint or charge brought against any of the Released Parties with respect to any Released Claims, without regard as to who brought any such complaint or charge. 
 21.    TIME TO CONSIDER AND REVOKE; ADVICE OF COUNSEL. Executive acknowledges that he has been afforded at least twenty-one (21) days to consider whether to
sign this Agreement. If Executive elects not to take the twenty-one (21) days to consider this Agreement, Executive acknowledges having done so voluntarily and with the understanding that Executive is waiving a statutory right to do so. If
Executive chooses to execute this Agreement, Executive has the right to revoke the acceptance at any time within seven (7) days of signing (the “Revocation Period”) by delivering a written revocation to CVS Caremark Corporation,
Attention: V. Michael Ferdinandi, One CVS Drive, Woonsocket, RI 02895. Any such revocation shall state, “I hereby revoke my Separation Agreement and General Release” and must be signed by Executive and received by the Company before
the end of the Revocation Period. If Executive decides to revoke this Agreement, the revocation shall make this Agreement null and void and shall be deemed effective on the date received by the Company. Executive acknowledges that in the absence of
a valid and effective Agreement, Executive is not entitled to the post-employment payments and benefits set forth in the Agreement. Executive acknowledges that CVS Caremark has advised him to consult with an attorney before executing this Agreement,
and Executive represents that he has done so. 
 22.    GOVERNING LAW. This Agreement shall be governed by and
conformed in accordance with the laws of the State of Rhode Island without regard to its conflict of laws

  

					
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provisions. Any actions brought to enforce the terms of this Agreement shall be brought in a court of competent jurisdiction located in the State of Rhode Island. 
 23.    SECTION HEADINGS. Section headings contained in this Agreement are for convenience of reference only and shall not
affect the meaning of any provision herein. 
 24.    ENTIRE AGREEMENT. This Agreement, together with any
compensation, equity or benefit plan or agreement referred to herein, sets forth the entire agreement between the parties hereto with respect to its subject matter and fully supersedes any and all prior understandings, whether written or oral,
between the parties concerning the subject matter of this Agreement. Executive acknowledges that he has not relied on any representations, promises or agreements of any kind made to him in connection with his decision to accept the terms of this
Agreement, except for the representations, promises and agreements herein. Any modification to this Agreement must be in writing and signed by Mr. McLure and CVS Caremark’s Senior Vice President, Human Resources or his authorized
representative. 
 IN WITNESS WHEREOF, the parties knowingly and voluntarily executed this Separation Agreement and General
Release as of the dates set forth below. 
  

									
	HOWARD A. MCLURE	 		 	CVS CAREMARK CORPORATION
				
	 	 		 	BY:	 	 
		 		 		 		 	 V. Michael Ferdinandi
 Senior Vice President, Human Resources

					
	DATE: 	 	 	 		 	DATE: 	 	 

  

					
	Strictly Confidential	 	7Partnership Equity Program

 Exhibit 10.40 
 CVS CAREMARK CORPORATION 
 PARTNERSHIP EQUITY
PROGRAM 
 Purchased Share, Matching Restricted Stock Unit 
 and Stock Option Agreement 
 AGREEMENT, by and
between CVS Caremark Corporation, a Delaware corporation (the “Company”), and
                                        [NAME/ID
NUMBER] (“Participant”). 
 WHEREAS, Participant has been selected as an employee eligible to invest under the
Company’s Partnership Equity Program (the “Program”), and has elected to invest in the Program, subject to the terms and conditions set forth in the Program and in this Purchased Share, Matching Restricted Stock Unit and Stock Option
Agreement (the “Agreement”); 
 WHEREAS, the Company desires to provide Participant with written evidence
acknowledging Participant’s investment under the Program, his or her acquisition of Stock Units and/or acquisition of actual shares as Purchased Shares, and the corresponding grant of Matching Restricted Stock Units, under the Program, and
evidence of further acquisitions and other transactions in Participant’s Purchased Share Account and Matching Account under the Program; 
 WHEREAS, the Program provides that Participant shall be granted an option to purchase from the Company the aggregate number of shares of Common Stock, $.01 par value per share (“Common
Stock”) of the Company set forth in this Agreement, at the specified purchase price per share, such option to be exercised as hereinafter provided, and the Company desires to provide Participant with confirmation of the grant of such option
under the Program; and 
 WHEREAS, the provisions of the Program and the Company’s
             Incentive Compensation Plan (the “Plan”) are hereby incorporated by reference and shall have the same force and effect as though fully set forth herein. Participant
hereby acknowledges his receipt of a copy of the Program prior to or at the time of receipt of this Agreement, and agrees to be bound by such provisions (as presently in effect or hereafter amended). If any provision of the Program is inconsistent
with a provision of this Agreement, the Program provision shall control. Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Program. 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the parties
hereto agree as follows: 
 I. PURCHASED SHARES AND MATCHING RESTRICTED STOCK UNITS 
 (A) Purchased Shares. The Company has received from Participant an investment or a commitment to invest the amount set forth on
the attached Statement, on                                 [DATE], under the Program, in
consideration of which the Company has established for Participant a Purchased Share Account (including a Pre-Tax Sub-account and/or After-Tax Sub-account, depending on Participant’s investment election), and credited to such Account the Stock
Units, and/or issued and sold the actual shares and/or deposited the actual shares in such Account, as reflected on the Statement of Account attached hereto (such Statement of Account and subsequent statements under the Program being
“Statements”). 
 (B) Crediting of Matching Restricted Stock Units. In accordance with Section 6(a)
of the Program, the Company has established for Participant a Matching Account, granted to Participant the number of Matching Restricted Stock Units equal to the number of Purchased Shares as reflected on the attached Statement, and credited such
Matching Restricted Stock Units to Participant’s Matching Account, as set forth on such Statement. 
 (C) Additional
Transactions in Participant Accounts; Settlement. The Company may from time to time credit additional Stock Units and Matching Restricted Stock Units to Participant’s

  

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Purchased Share Account and Matching Account, in connection with the deemed reinvestment of dividend equivalents and otherwise in accordance with the Program. In addition, if the Participant has
actual shares in his or her After-Tax Subaccount (under the Purchased Share Account), the Custodian of such Subaccount may acquire additional actual shares through dividend reinvestment (if then provided for under such Subaccount) and otherwise in
accordance with the Program. Information relating to such transactions, and other transactions and events relating to Participant’s Accounts under the Program, shall be set forth in Statements furnished to Participant not less frequently than
annually. Purchased Shares and Matching Restricted Stock Units shall be settled as provided in Sections 6(c), 6(d), and 8(c) of the Program. 
 II. OPTION TO PURCHASE COMMON STOCK 
 (A) Grant of Option. The Company hereby confirms the
grant, under the Program and the Plan, to Optionee on
                                [DATE], the option and right to purchase
            [NUMBER] shares (subject to adjustment) of the Company’s Common Stock, at a Purchase Price of $             per
share (the “Option”), such Option to be exercisable as specified herein and in the Program. The Option granted hereby are non-qualified stock options subject to all of the terms and conditions set forth in the Program and the Plan.

 (B) Option Exercise and Expiration. The Options shall be and become exercisable only as provided in Sections
7(b) and 8(d) of the Program, and shall expire at the earlier of the close of business on the day before the tenth anniversary of their respective Purchase Dates or such earlier expiration or termination of the Option as provided in
Section 8(d) of the Program. The Optionee shall exercise such option by submitting a request to exercise to the Company’s stock option administrator, in accordance with the Company’s current exercise policies and procedures,
specifying the number of shares to be purchased, which number may not be less than on hundred (100) shares. The Optionee so exercising all or part of the Option(s) shall, at the time of purchase, tender to the Company cash or cash equivalent
for the full purchase price of the shares he has elected to purchase or certificates for shares of Common Stock of the Company owned by the Optionee for at least six (6) months with a fair market value at least equal to the full purchase price
of the shares he has elected to purchase, or a combination of the foregoing. Except as provided below, the Optionee shall, at the time of purchase, tender to the Company cash or cash equivalent for the amount of income taxes required to be withheld
by the Company in connection with the exercise of this option or portion thereof. In the event the Optionee is subject to the provisions of Section 16(b) of the Securities Exchange Act of 1934, such Optionee shall tender to the Company cash or
cash equivalent for the amount of income taxed required to be withheld by the Company in connection with the exercise of the Option(s) or portion thereof at the earlier of (1) the date the shares received pursuant to such exercise become
transferable or cease to be subject to a substantial risk of forfeiture within the meaning of Section 83 of the Internal Revenue Code of 1986, as amended (“Code”) or (2) if such Optionee makes a valid election under
Section 83(b) of the Code in respect of the shares received pursuant to such evidence, the date of such election. 
 (C)
Intention. The Optionee hereby agrees that upon each and every exercise of the Option(s) evidenced hereby he/she will deliver to the Company, if the Company then so requests, a written representation that it is Optionee’s intention
at the time of such exercise to acquire the shares being purchased for Optionee’s own account for investment and not with a view to, or for resale in connection with, the distribution thereof within the meaning of the Securities Act of 1933;
and the Optionee hereby agrees that the issuance of shares pursuant to the exercise of the Option(s) shall be expressly conditioned upon the receipt of such a representation at the time of exercise if such representation is requested by the Company.

 III. Non-Competition. 
 As a condition of receiving the benefits of this Agreement, Participant agrees as follows: 
 (A) During his or her employment with CVS Caremark Corporation or any of its subsidiaries (collectively, the “CVS Caremark Companies”), and for twenty-four (24) months following the termination of such employment (the
“Restriction Period”) for any reason, Participant shall not directly or indirectly engage in Competition with any of the CVS Caremark Companies. “Competition” shall mean engaging in

  

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any activity for a Competitor of any of the CVS Caremark Companies, whether as an employee, consultant, principal, agent, officer, director, partner, shareholder (except as a less than one
percent shareholder of a publicly traded company) or otherwise. A “Competitor” shall mean any person, corporation or other entity (and its parents, subsidiaries, affiliates and assigns) doing business in a geographical area in which any of
the CVS Caremark Companies are doing or have imminent plans to do business, and which is engaged in the operation of (1) 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 (2) 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, such as Medco
Health Solutions, Inc. or Express Scripts, Inc.; and/or (3) 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). 
 (B) During the Restriction Period Participant shall not, whether for himself or herself or for any other individual, partnership,
corporation or other business organization, directly or indirectly (1) solicit, recruit, offer employment to, hire as a consultant, or employ any employee or consultant of any of the CVS Caremark Companies, or (2) solicit, persuade or
attempt to persuade any employee or consultant of any of the CVS Caremark Companies to leave the employ of any of the CVS Caremark Companies or to cease or reduce the provision of services to any of the CVS Caremark Companies. 
 (C) Participant acknowledges that a breach of this Non-competition section will result in irreparable injury to the CVS Caremark Companies
for which there is no adequate remedy at law, that monetary relief will be inadequate, and that, in the event of such a breach or threat thereof, the Company shall be entitled to obtain, in addition to any other relief that may be available, a
temporary restraining order and/or a preliminary or permanent injunction, restraining Participant from engaging in activities prohibited by this Non-competition section, as well as such other relief as may be required specifically to enforce this
Agreement. 
 IV. Miscellaneous. 
 (A) Withholding Tax. Participant may be subject to withholding taxes as a result of the exercise of an Option, or other payment in respect of an Option, or settlement of Stock Units and/or
Matching Restricted Stock Units. Participant shall pay to the Company in cash, promptly when the amount of such obligations become determinable, all applicable federal, state, local and foreign withholding taxes that result from each such exercise,
settlement or payment. However, Participant may elect to have shares of Common Stock withheld by the Company or to tender shares of Common Stock to the Company to pay the amount of tax required so to be withheld by the Company. Any shares of Common
Stock so withheld or tendered will be valued as of the date they are withheld or tendered. Unless otherwise permitted by the Committee, the value of shares of Common Stock withheld or tendered may not exceed the required federal, state, local and
foreign withholding tax obligations as computed by the Company. 
 (B) Certain Terms and Conditions of Program.
Participant acknowledges and agrees that terms and conditions of the program preclude all transfers of certain Purchased Shares, all Matching Restricted Stock Units, and all Options, except in limited circumstances in the event of Participant’s
death, impose a risk of forfeiture on Matching Restricted Stock Units and Options, relieve the Company of certain obligations unless and until laws and regulations have been complied with, provide for adjustments to Purchased Shares, Matching
Restricted Stock Units, and Options upon the occurrence of certain events, and specify the state law which shall govern this Agreement, without giving effect to principles of conflict of laws. 
 (C) Binding Agreement. This Agreement shall be binding upon the heirs, executors, administrators, and successors of the
parties. In particular, Participant’s heirs, executors, administrators, and successors shall be subject to the terms and conditions of the Program, Plan, and this Agreement,

  

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and the Company may require any such person to execute an agreement or other documents acknowledging and agreeing to such terms and conditions as a condition precedent to any transfer of rights
hereunder or shares of Common Stock issuable under the Program, including upon exercise of an Option, into the name of any such person. 
 (D) Integration Clause; Amendments to Agreement. This Agreement, together with the Program, constitutes the entire Agreement between the parties with respect to the Program, and supersedes
any prior agreements or documents with respect thereto. This Agreement may be amended, but no amendment or other change which may impose any additional obligation upon the Company or materially impair the rights of Participant with respect to the
Program shall be valid unless contained in a writing signed by the party to be bound thereby. 
 (E) Employment.
Neither the execution and delivery hereof nor the granting of the Options evidenced hereby shall constitute or be evidenced of any agreement or understanding, expressed or implied, on the part of the Company or its subsidiaries to employ the
Optionee for any specific period. 
 (F) Legal Effect of Statements. A Participant’s Statements shall
be deemed a part of this Agreement, and shall evidence the Company’s obligation under the Program with respect to Purchased Shares, Matching Restricted Stock Units and Stock Options, including the numbers thereof held or credited under the
Program. Any Statement containing an error shall not, however, represent a binding obligation to the extent of such error, notwithstanding the inclusion of such Statement as part of this Agreement. 
 (G) Acceptance of Award. Acceptance may be submitted either electronically, if available, or in writing. The Option may not be
exercised unless and until the Company has received acceptance by the Participant of the terms and conditions set forth. 
 (H) Notices. Any notice hereunder to the Company shall be addressed to One CVS Drive, Woonsocket, RI 02895, Attention: Senior Vice President - Human Resources, and any notice required to be given hereunder to the Participant
shall be addressed to such Participant at the address as shown on the records of the Company, subject to the right of either party to designate in writing some other address for notices. 
  

			
	CVS CAREMARK CORPORATION
		
	By:	 	  

		 	[NAME]
		 	[TITLE]

  

			
	PARTICIPANT
		
	By:	 	  

		 	[NAME]

  

 4

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