Document:

2010 Management Incentive Plan

 Exhibit 10.38 

 

			
	

	  	2010 Management Incentive Plan

  

	I.	Objectives and Summary 

 CVS Caremark Corporation’s Management Incentive Plan (the “MIP”) is designed to reward incentive-eligible employees (“Eligible Participants”) of CVS Caremark Corporation and its
subsidiaries (together, “the Company”) for their role in driving performance and to encourage Eligible Participants’ continued employment with the Company. Funding of incentive awards will be based on actual results measured against
pre-established financial goals. Incentive awards will be based on the performance of the Company business unit in which each Eligible Participant works as well as the performance of individual Eligible Participants. 

The Management Planning and Development Committee (the “Committee”) of the Board of Directors (the “Board”) may
delegate to officers of CVS Caremark the authority to perform administrative functions under the MIP as the Committee may determine and may appoint officers and others to assist it in administering the MIP. 

 

	II.	Plan Year 

 The
MIP is a calendar year plan, which runs from January 1 to December 31, 2010 (“Plan Year”). All dates in this document occur during the Plan Year unless otherwise stated. 

 

	III.	Eligibility 

A. Eligibility for Participation 
 The Chief Executive Officer of CVS Caremark Corporation (“CEO”) will determine which employees are eligible for participation in the MIP, provided that the Committee shall determine the
eligibility of employees who are subject to Section 162(m) of the Internal Revenue Code (“Section 162(m)”) or who have been identified by the Committee as individuals who may be subject to Section 162(m) (collectively,
“162(m) Eligible Participants” and each of whom will also be included in the term “Eligible Participants” unless otherwise noted). In general, Eligible Participants include all exempt employees who are not covered under any other
incentive plans. 
 Eligibility for participation in the MIP is contingent upon the Eligible Participant being employed in an
incentive-eligible position on the last day of the Plan Year. The CEO (or, as to 162(m) Eligible Participants, the Committee) may, for any reason and in his or her sole discretion, at any time prior to the end of the Plan Year, determine an
employee’s eligibility for participation in the Plan. Eligible Participants are subject to the terms and conditions relating to incentive awards set forth in this MIP. 
 B. 162(m) Eligible Participants 
 162(m) Eligible Participants shall
be subject to the limitations required to comply with the provisions of Section 162(m). Subject to the requirements of Section 162(m), the Committee shall retain sole discretion to determine a 162(m) Eligible Participant’s eligibility
for an award, the target award, and the amount of the actual award. In no event shall a 162(m) Eligible Participant’s award exceed the amount permitted by Section 162(m). 

 C. Newly-Eligible Employees 

An employee will be eligible for a prorated incentive award if he or she becomes an Eligible Participant on or before November 1 of
the Plan Year; provided, however, that a 162(m) Eligible Participant shall be eligible for an award for the Plan Year in which he or she was hired or otherwise becomes a 162(m) participant only to the extent that such award does not violate the
requirements of Section 162(m). 
 D. Transfers  

Participants who become newly eligible during the Plan Year may be eligible for a prorated MIP award. If a change in assignments results
in an Eligible Participant being eligible for the MIP for part of the Plan Year and other incentives during other parts of the Plan Year, the participant may be eligible to receive a prorated award for the amount of time in each incentive eligible
position, subject to the terms of the other applicable incentive plans. Change in assignments from one MIP-eligible position to another during the Plan Year does not result in pro rata award but rather an award funded on the base salary of the
Eligible Participant on December 31 and the individual award opportunity as of that date. 
 E. Demotions

 If a previously Eligible Participant is demoted to a non-incentive eligible position due to his or her violation of CVS
Caremark policy or his/her performance, or if he or she voluntarily transfers to a non-incentive eligible position during the Plan Year, and is in the non-incentive eligible position on the last day of the Plan Year, he or she will not be eligible
to earn an incentive award for the Plan Year under this plan. 
 F. Terminations 

Unless otherwise stated in Section VII of the MIP, if an Eligible Participant’s employment terminates prior to the final
determination of incentive awards for the Plan Year, he or she will not be eligible to receive an incentive award under the MIP. 
 G. Rehires 
 Eligible Participants who are rehired on or before
November 1 of the Plan Year may be eligible for a prorated incentive award. For purposes of proration, credit will only be given for time worked during the Plan Year in incentive-eligible positions. 

 

	IV.	Administration  

A. Funding and Performance Measures 
 MIP funding is based on Consolidated Company Performance, calculated as 80% Operating Profit, 10% Pharmacy Services Customer Satisfaction, and 10% Retail Customer Service. 

1. Operating Profit 
 The incentive awards under the MIP will be funded based on consolidated CVS Caremark operating profit as adjusted based on permitted financial adjustments approved by the Committee (the “Operating
Profit”). Operating Profit will be used to calculate the available pool for incentive awards (the “Total Pool”). If Operating Profit falls below the minimum threshhold as set forth in Exhibit A, no formulaic funding will be made
available for awards and there is no requirement that incentive awards be paid under the MIP. 

  

					
	2010 Management Incentive Plan	 	2	 	Confidential & Proprietary

 2. Pharmacy Services Customer Satisfaction 

Achievement of the Customer Satisfaction segment of the incentive will be determined by the aggregate actual performance against target
of the weighted composite of the following surveys: 
  

	 	•	 	 Client Relationship and Loyalty Survey (weight = 50%) 

	 	•	 	 Customer Care Survey (weight = 20%) 

	 	•	 	 Mail Service Pharmacy Survey (weight = 20%) 

	 	•	 	 Specialty Survey (weight = 10%) 

 Pharmacy Services Customer Satisfaction funding is subject to adjustment based on the Operating Profit. 
 3. Retail Customer Service 
 The Retail Customer Service segment of the
incentive will be measured using the Total Triple ‘S’ actual performance against the target. The Triple ‘S’ Score Card consists of performance in three elements of customer satisfaction: Stock, Shop and Service. 

Retail Customer Service funding is subject to adjustment based on the Operating Profit. 

 

									
	Measurement	 	Percent
Weight	 	
Measurement

Tool
	 	Achievement Measured
Against	 	Modifier
	Consolidated Operating Profit	 	80%	 	Earnings Before Interest & Taxes	 	2010 EBIT Goal	 	 CEO &
Committee
 Discretion
 Approved Permitted
 Financial Adjustments

	 Pharmacy Services
 Customer Satisfaction
	 	10%	 	 Client Relationship and
Loyalty, Customer Care, Mail Service and
 Specialty Surveys
	 	2010 PBM Customer Satisfaction Target	 	Operating Profit funding
	Retail Customer Service	 	10%	 	Triple “S” Scorecard	 	 2010 Triple
“S”
 Target
	 	Operating Profit Funding

B. Fund Allocation 
 After the funding of the MIP has been established and the Total Pool has been created, the following criteria will be used in determining individual incentive awards for the Plan Year: 

1. Business Unit  
 The Business Unit Performance is based on Business Unit EBIT results compared to target and a discretionary assessment resulting from (a) input from the President/COO, Business Unit Presidents and
Finance regarding the performance of the Business Unit to assist the CEO and the Committee in their assessment of the overall performance; and (b) the CEO’s (or, in the case of 162(m) Eligible Participants’s, the Committee’s)
assessment of the achievement of Plan Year performance goals by the business unit. 
 2. Management discretion

 The Total Pool will be available for managers to award to Eligible Participants, taking into account all components of the
Plan. The amount, if any, of the calculated incentive award for an Eligible Participant shall be detemined in the sole discretion of CVS Caremark management. The amount, if any, of the calculated incentive award for a 162(m) Eligible Participant
shall be determined in the sole discretion of the Committee. 

  

					
	2010 Management Incentive Plan	 	3	 	Confidential & Proprietary

	V.	MIP Earnings and Payout 

 A. Timing 
 Incentive awards will be paid to Eligible Participants
as soon as administratively feasible following the date the Total Pool is funded and calculation of incentive payments may be ascertained, which will be in the year following the Plan Year, on or before March 15. Payments may be subject to
delay to comply with garnishments and other state or federal requirements. 
 B. Calculations 

Calculations for full and partial awards will be based on each Eligible Participant’s annual base salary and individual target
opportunity on the last day of the Plan Year. 
 For purposes of proration, the 15th of the month will be used to determine if the month is included or
excluded from the incentive calculation. 
 Examples: 

 

	 	1.	 An Eligible Participant is hired on September 14th. Because the Eligible Participant is actively employed prior to the 15th of September, the month of September will be included in his/her
prorated incentive award and the Eligible Participant will receive a prorated incentive award covering a total of four months. The award will be calculated using the participants individual award opportunity target and base salary as of
December 31st. 

 

	 	2.	 An Eligible Participant begins a personal leave of absence on June 3rd and returns to active status on July 22nd. Assuming the Eligible Participant was incentive eligible for the entire year, the months of June and July will be
excluded from the Eligible Participant’s incentive award and the Eligible Participant will receive a prorated incentive award covering a total of 10 months. The award will be calculated using the participants individual award opportunity target
and base salary as of December 31st.

 C. Award Opportunity 

Individual target awards will be determined by position and typically will vary based on the Eligible Participant’s level in the
organization. 
 D. Obligation to Pay Total Pool 

Eligible Participants, as a group, have a right to receive an amount at least equal to the Total Pool, but no individual Eligible
Participant shall be entitled to receive an award or any specific amount of the Total Pool. In no event will the aggregate of the total awards paid from the MIP be less than the amount of the Total Pool. 

 

	VI.	Corrections to Incentive Awards 

 Any corrections to incentive calculations must be submitted through the Human Resources Business Partner to Compensation by April 15 of the year following the Plan Year. 

  

					
	2010 Management Incentive Plan	 	4	 	Confidential & Proprietary

	VII.	Eligible Participant Status 

 A. Eligible Participant Performance 
 An Eligible Participant must
be employed in good standing (e.g., not on probation, written warning or any disciplinary/ performance action plan) throughout the Plan Year and at all times prior to the final determination of the Eligible Participant’s incentive award to be
eligible to earn an incentive award. 
 B. Leaves of Absence 

An Eligible Participant on a Company-approved leave of absence at any time during the Plan Year who remains employed
in an eligible position as of the last day of the Plan Year will earn a prorated incentive award based on the number of months worked during the Plan Year, provided he or she meets all other eligibility criteria for an incentive award. For purposes
of proration, the 15th of the month will be used to
determine if the month is included or excluded from the incentive calculation. 
 C. Reduction in Force, Retirement and
Death 
 1. Reduction in Force 

If an Eligible Participant is separated from employment on or before the last day of the Plan Year due to a reduction
in force, he or she will earn a prorated incentive award based on the number of months worked during the Plan Year, provided the Eligible Participant meets all other eligibility criteria for an incentive award. For purposes of proration, the
15th of the month will be used to determine if the month
is included or excluded from the incentive calculation. 
 2. Retirement  

If an Eligible Participant is at least age 55 and has a minimum of 10 years of service with CVS Caremark or a predecessor
company/subsidiary or is at least age 60 and has a minimum of 5 years of service with CVS Caremark or a predecessor company/subsidiary and the MIP Participant retires before the end of the Plan Year, he/she will earn a prorated
incentive based on the number of months worked during the Plan Year, provided he/she meets all other eligibility criteria for an incentive award. Earned incentives will be paid at the same time as other incentives are paid under this Plan. Eligible
Participants who do not meet the minimum retirement requirements at the time of retirement and who retire before the end of the Plan Year will not be eligible to earn an incentive award. 

3. Death 

In case of the death of an Eligible Participant, a pro rated incentive award shall be paid to the Eligible Participant’s spouse, if
living; otherwise, in equal shares to surviving children of the Eligible Participant. If there are no surviving children, the benefit shall be paid to the Eligible Participant’s parents in equal shares; and in the event none of the above-named
individuals survives the Eligible Participant, the death benefit shall be paid to the executor or administrator of the Eligible Participant’s estate. The incentive award will be prorated based on the number of months the Eligible Participant
worked during the Plan Year and shall be paid as soon as administratively practicable following the death of the Eligible Participant but no later than March 15 of the year following the Plan Year. If final performance numbers are not available
at the time of the employee’s death, the incentive award will be calculated using the incentive target and the number of months worked. 
  

	VIII.	Employment Rights 

The MIP does not create an express or implied contract of employment between CVS Caremark and an Eligible Participant. Both CVS Caremark
and the Eligible Participant retain the right to terminate the employment relationship at will, at any time and for any reason. 

  

					
	2010 Management Incentive Plan	 	5	 	Confidential & Proprietary

 A. Rights are Non-Assignable 

Neither the Eligible Participant, nor any beneficiary, nor any other person shall have any right to assign, in whole or in part, the
right to receive payments under the MIP. Payments are non-assignable and non-transferable, whether voluntarily or involuntarily. 
 B. Compliance with Applicable Regulations 
 An Eligible Participant
must comply with all applicable state and federal regulations and CVS Caremark policies to be eligible to receive an incentive award under the MIP. 
 C. Change in Control 
 In the event of a change in control of CVS
Caremark, as defined in the 1997 Incentive Compensation Plan, the MIP shall remain in full force and effect. Any amendments, modifications, termination or dissolution of the MIP by the acquiring entity may only occur prospectively and will not
affect incentive earnings or eligibility before the date of the change in control, or such date as it may be modified or dissolved by the acquiring entity. 
 Provisions regarding the payment of annual incentive awards that are set forth in Change in Control agreements shall supersede those appearing in the MIP. 

D. 2007 Incentive Plan 
 Capitalized terms not otherwise defined herein shall have the meaning assigned to such defined term(s) in the 2007 Incentive Plan. In the event of any conflict between the 2007 Incentive Plan and the MIP,
the terms of the 2007 Incentive Plan shall govern. 
 E. Withholding 

All required deductions will be withheld from the incentive awards prior to distribution. This includes all applicable federal, state, or
local taxes, as well as any eligible 401(k) deductions and deferred compensation contributions as defined by the applicable plans. Incentive awards that are deferred will be taxed according to applicable federal and state tax law. 

F. MIP Amendment/Modification/Termination 
 CVS Caremark retains the right to amend, modify, or terminate the MIP at any time on or before the last day of the Plan Year for any reason, with or without notice to Eligible Participants. 

G. MIP Interpretation 
 All requests for interpretation of any provision in the MIP must be submitted to the CVS Caremark Compensation Department. Failure to submit a request for resolution of a dispute or question within
30 days of distribution of the incentive award may result in a waiver of the Eligible Participant’s rights to dispute the MIP provision or amount of the incentive award. 

CVS Caremark will comply with all applicable laws concerning incentive awards; the MIP and its administration are not intended to
conflict with any applicable state or federal law. 

  

					
	2010 Management Incentive Plan	 	6	 	Confidential & Proprietary

 H. Recoupment of Incentive Awards Due to Fraud or Financial Misconduct

 If the Board determines that fraud or financial misconduct has occurred in a manner which subjects a recipient of a MIP award
to recoupment under the Company’s recoupment policy, as in effect from time to time, the MIP award recipient shall immediately repay to the Company the entire incentive award received by the MIP award recipient, or a portion thereof as
determined by the Board. If a MIP award recipient fails to repay his or her incentive award (or portion thereof) immediately upon request by the Board, the Company may seek reimbursement of such amount from the MIP award recipient by reducing salary
or any other payments that may be due to the MIP award recipient, to the extent legally permissible, and/or through initiating a legal action to recover such amount, which recovery shall include any reasonable attorneys fees incurred by the Company
in bringing such action. If a MIP award recipient has deferred payment of any portion of an incentive award that is subject to repayment hereunder, the amount of the MIP award recipient’s deferred compensation accrual shall be reduced by the
amount subject to repayment, plus all Company matching amounts and earnings on such amount. 
 I. Section 409A of the
Internal Revenue Code 
 The Company intends that this Plan not violate any applicable provision of, or result in any
additional tax or penalty under, Section 409A of the Internal Revenue Code of 1986 (the “Code”), as amended, and that to the extent any provisions of the 162(m) Plan do not comply with Code Section 409A the Company will make such
changes in order to comply with Code Section 409A. In all events, to the extent required to avoid a violation of the applicable rules under Section 409A by reason of Section 409A(a)(2)(B)(i) of the Code, payment of any amounts subject
to Section 409A of the Code shall be delayed until the relevant date of payment that will result in compliance with the rules of Section 409A(a)(2)(B)(i) of the Code. 

  

					
	2010 Management Incentive Plan	 	7	 	Confidential & Proprietary

 Exhibit A 

 

															
	Operating Profit	 	 	 	 Customer Service
 Retail Triple ‘S’

(10%)
	 	 	 	 PBM Customer
Satisfaction
 (10%)

	Results	 	%
Payout	 	 	 	Results	 	%
Payout	 	 	 	Results	 	%
Payout
	106%	 	200%	 		 	100.0%	 	100%	 		 	100.0%	 	100%
	105%	 	180%	 		 	99.0%	 	95%	 		 	99.0%	 	95%
	104%	 	160%	 		 	98.0%	 	90%	 		 	98.0%	 	90%
	103%	 	140%	 		 	97.0%	 	85%	 		 	97.0%	 	85%
	102%	 	120%	 		 	96.0%	 	80%	 		 	96.0%	 	80%
	99% -101%          	 	100%	 		 	95.0%	 	75%	 		 	95.0%	 	75%
	98%	 	90%	 		 	94.0%	 	70%	 		 	94.0%	 	70%
	97%	 	83%	 		 	93.0%	 	65%	 		 	93.0%	 	65%
	96%	 	75%	 		 	92.0%	 	60%	 		 	92.0%	 	60%
	95%	 	68%	 		 	91.0%	 	55%	 		 	91.0%	 	55%
	94%	 	60%	 		 	90.0%	 	50%	 		 	90.0%	 	50%
	93%	 	53%	 		 	89.0%	 	25%	 		 	89.0%	 	25%
	92%	 	45%	 		 	<89.0%	 	0%	 		 	<89.0%	 	0%
	91%	 	38%	 		 		 		 		 		 	
	90%	 	30%	 		 		 		 		 		 	
	89%	 	25%	 		 		 		 		 		 	
	<89%	 	0%	 		 		 		 		 		 	

  

					
	2010 Management Incentive Plan	 	8	 	Confidential & ProprietaryChange in Control Agreement

 Exhibit 10.39 
  

 
 CVS CAREMARK CORPORATION 

Change in Control Agreement for 

DAVID DENTON 
  

 
  
  

			
	CONFIDENTIAL	  	REVISED November 2008

							
	 	  	 	  	Page	 
			
	1.	  	Definitions.	  	 	2	  
			
	2.	  	Term of Agreement.	  	 	6	  
			
	3.	  	Entitlement to Severance Benefit.	  	 	6	  
			
	4.	  	Confidentiality; Cooperation with Regard to Litigation; Non-disparagement.	  	 	9	  
			
	5.	  	Non-solicitation.	  	 	11	  
			
	6.	  	Remedies.	  	 	11	  
			
	7.	  	Effect of Agreement on Other Benefits.	  	 	11	  
			
	8.	  	Not an Employment Agreement.	  	 	11	  
			
	9.	  	Resolution of Disputes.	  	 	11	  
			
	10.	  	Assignability; Binding Nature.	  	 	12	  
			
	11.	  	Representation.	  	 	12	  
			
	12.	  	Entire Agreement.	  	 	12	  
			
	13.	  	Amendment or Waiver, Section 409A.	  	 	12	  
			
	14.	  	Severability.	  	 	12	  
			
	15.	  	Survivorship.	  	 	13	  
			
	16.	  	Beneficiaries/References.	  	 	13	  
			
	17.	  	Governing Law/Jurisdiction.	  	 	13	  
			
	18.	  	Notices.	  	 	13	  
			
	19.	  	Headings.	  	 	13	  
			
	20.	  	Counterparts.	  	 	13	  

  
 1 

 This Change in Control Agreement (“Agreement”) is made and entered into as of
December 22, 2008 between CVS Pharmacy, Inc. (“CVS”) and David Denton (the “Executive”). 
 WHEREAS, the Board of
Directors (the “Board”) of CVS Caremark Corporation (“CVS Caremark” or the “Company”) believes it is necessary and desirable for the Company to be able to rely upon Executive to continue serving in his or her position
with the Company in the event of a pending or actual change in control of CVS Caremark; 
 WHEREAS, Executive is employed by a Subsidiary
of CVS Caremark, and this Agreement shall not alter Executive’s status as an employee at will; 
 NOW, THEREFORE, in consideration of
the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt of which is mutually acknowledged, CVS and Executive (individually a “Party” and together the “Parties”) agree as
follows: 
 1. Definitions. 
  

	 	a.	“Base Salary” shall mean Executive’s annual rate of base salary at the time of Executive’s termination of employment or, if greater, as in effect immediately
prior to a Change in Control. 

  

	 	b.	“Cause” shall exist if: 

  

	 	i.	Executive willfully and materially breaches Sections 4 or 5 of this Agreement; 

  

	 	ii.	Executive is convicted of a felony involving moral turpitude; or 

  

	 	iii.	Executive engages in conduct that constitutes willful gross neglect or willful gross misconduct in carrying out Executive’s duties under this Agreement, resulting, in either
case, in material harm to the financial condition or reputation of the Company. 

 For purposes of this Agreement, an act or
failure to act on Executive’s part shall be considered “willful” if it was done or omitted to be done by Executive not in good faith, and shall not include any act or failure to act resulting from any incapacity of Executive. A
termination for Cause shall not take effect absent compliance with the provisions of this paragraph. Executive shall be given written notice by the Company of its intention to terminate Executive’s employment for Cause, such notice (A) to
state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination for Cause is based and (B) to be given within 90 days of the Company’s learning of such act or acts or
failure or failures to act. Executive shall have 20 days after the date that such written notice has been given to Executive in which to cure such conduct, to extent such cure is possible. If Executive fails to cure such conduct, Executive shall
then be entitled to a hearing before the Committee, or an officer or officers designated by the Committee, at which Executive is entitled to appear. Such hearing shall be held within 25 days of such notice to Executive, provided Executive requests
such hearing within 10 days of the written notice from the Company of the intention to terminate Executive for Cause. If, within five days following such hearing, Executive is furnished written notice by the Committee confirming that, in its
judgment, grounds for Cause on the basis of the original notice exist, Executive shall thereupon be terminated for Cause. Executive’s right to cure in accordance with this provision applies only in the event of a Change in Control as defined in
Section 1(c) below and does not alter Executive’s “at will” employment status. 

  
 2 

	 	c.	A “Change in Control” shall be deemed to have occurred if: 

  

	 	(i)	any Person (other than (w) the Company, (x) any trustee or other fiduciary holding securities under any employee benefit plan of the Company, (y) any company
owned, directly or indirectly, by the stockholders of the Company immediately after the occurrence with respect to which the evaluation is being made in substantially the same proportions as their ownership of the common stock of the Company
immediately prior to such occurrence or (z) any surviving or resulting entity from a merger or consolidation referred to in clause (iii) below that does not constitute a Change in Control under clause (iii) below) becomes the
Beneficial Owner (except that a Person shall be deemed to be the Beneficial Owner of all shares that any such Person has the right to acquire pursuant to any agreement or arrangement or upon exercise of conversion rights, warrants or options or
otherwise, without regard to the sixty day period referred to in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company or of any subsidiary owning directly or indirectly all or substantially all of the consolidated
assets of the Company (a “Significant Subsidiary”), representing 30% or more of the combined voting power of the Company’s or such Significant Subsidiary’s then outstanding securities; 

 

	 	(ii)	during any period of twelve (12) consecutive months, individuals who at the beginning of such period constitute the Board, and any new director whose election by the Board
or nomination for election by the Company’s stockholders was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of the twelve (12) month period or whose election or
nomination for election was previously so approved, cease for any reason to constitute at least a majority of the Board; 

  

	 	(iii)	the consummation of a merger or consolidation of the Company or any Significant Subsidiary with any other entity, other than a merger or consolidation which would result in the
voting securities of the Company or a Significant Subsidiary outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving or resulting entity) more than
50% of the combined voting power of the surviving or resulting entity outstanding immediately after such merger or consolidation; or 

  

	 	(iv)	the consummation of a transaction (or series of transactions within a 12 month period) which constitutes the sale or disposition of all or substantially all of the consolidated
assets of the Company but in no event assets having a gross fair market value of less than 40% of the total gross fair market value of all of the consolidated assets of the Company (other than such a sale or disposition immediately after which such
assets will be owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company immediately prior to such sale or disposition). 

  
 3 

 For purposes of this definition: 

 

	 	(A)	The term “Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 under the Exchange Act (including any successor to such Rule).

  

	 	(B)	The term “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto. 

 

	 	(C)	The term “Person” 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
“group” as defined in Section 13(d) thereof. 

  

	 	d.	“Committee” shall mean the Management Planning and Development Committee of the Board, or the corresponding committee of the board of directors of a successor to CVS
Caremark. 

  

	 	e.	“Company” shall mean, collectively, CVS Caremark and any Subsidiary or affiliate of CVS Caremark. 

 

	 	f.	“Confidential Information” shall have the meaning set forth in Section 4 below. 

 

	 	g.	“Constructive Termination Without Cause” shall mean a termination of the Executive’s employment at Executive’s initiative following the occurrence, without
the Executive’s written consent, of one or more of the following events (except as a result of a prior termination): 

  

	 	i.	an assignment of any duties to Executive that is inconsistent with Executive’s status as a member of the senior management of CVS Caremark; 

 

	 	ii.	a decrease in Executive’s annual base salary or target annual incentive award opportunity; 

 

	 	iii.	any failure to secure the agreement of any successor to CVS Caremark to fully assume the Company’s obligations under this Agreement; or 

 

	 	iv.	a relocation of Executive’s principal place of employment more than 35 miles from Executive’s place of employment before such relocation. 

 

	 	h.	“Disability” shall mean disability as that term is defined in the Company’s Long-Term Disability Plan. 

 

	 	i.	“Effective Date” shall have the meaning set forth in Section 2 below. 

 

	 	j.	“Original Term” shall have the meaning set forth in Section 2 below. 

  

	 	k.	“Renewal Term” shall have the meaning set forth in Section 2 below. 

  

	 	l.	“Severance Period” shall mean the period of 18 months following the termination of Executive’s employment with the Company. 

 

	 	m.	“Subsidiary” shall have the meaning set forth in Section 4 below. 

  

	 	n.	“Term” shall have the meaning set forth in Section 2 below. 

  
 4 

	 	o.	“termination of employment”, “employment is terminated” and other similar words shall mean with respect to Executive: 

 

	 	(i)	for any plan or arrangement that is subject to the rules of Section 409A of the Internal Revenue Code (the “Code”) a “Separation from Service” as such
term is defined in the Income Tax Regulations under Section 409A (the “409A Regulations”) of the Code as modified by the rules described below: 

 

	 	(A)	except in the case where Executive is on a bona fide leave of absence pursuant to the Company’s policies as provided below, Executive is deemed to have incurred a Separation
from Service on a date if the company and Executive reasonably anticipate that the level of services to be performed by Executive after such date would be permanently reduced to 20% or less of the average services rendered by Executive during the
immediately preceding 36-month period (or the total period of employment, if less than 36 months), disregarding periods during which Executive was on a bona fide leave of absence; 

 

	 	(B)	if Executive is absent from work due to military leave, sick leave, or other bona fide leave of absence pursuant to the Company’s policies, Executive shall incur a
Separation from Service on the first date that the rules of (A), above, are satisfied following the later of (i) the six-month anniversary of the commencement of the leave or (ii) the expiration of Executive’s right, if any, to
reemployment under statute, contract or Company policy; 

  

	 	(C)	Executive shall be considered to continue employment and to not have a Separation from Service while on a bona fide leave of absence pursuant to the Company’s policies if
the leave does not exceed 6 consecutive months (12) months for a disability leave of absence) or, if longer, so long as the Executive retains a right to reemployment with the Company or an Affiliate under an applicable statute, contract or
Company policy. For this purpose, a “disability leave of absence” is an absence due to any medically determinable physical or mental impairment of Executive that can be expected to result in death or can be expected to last for a
continuous period of not less than 6 months, where such impairment causes the Participant to be unable to perform the duties of his job or a substantially similar job; 

 

	 	(D)	for purposes of determining whether another organization is an Affiliate of the Company, common ownership of at least 50% shall be determinative; 

 

	 	(E)	the Company specifically reserves the right to determine whether a sale or other disposition of substantial assets to an unrelated party constitutes a Separation from Service
with respect to Executive providing services to the seller immediately prior to the transaction and providing services to the buyer after the transaction. Such determination shall be made in accordance with the requirements of Section 409A of
the Code; or 

  

	 	(ii)	for any plan or arrangement that is not subject to the rules of Section 409A of the Code, the complete cessation of providing service to the Company or any Affiliate as an
employee. 

  
 5 

	2.	Term of Agreement. 

 The term of this
Agreement shall commence on the date of this Agreement (the “Effective Date”) and end on the third anniversary of such date (the “Original Term”). The Original Term shall be automatically renewed for successive one-year terms
(the “Renewal Terms”) unless at least 180 days prior to the expiration of the Original Term or any Renewal Term, either Party notifies the other Party in writing that he/she or it is electing to terminate this Agreement at the expiration
of the then current Term. “Term” shall mean the Original Term and all Renewal Terms. If a Change in Control shall have occurred during the Term, notwithstanding any other provision of this Section 2, the Term shall not expire earlier
than two years after such Change in Control. 
  

	3.	Entitlement to Severance Benefit. 

  

	 	a.	Severance Benefit. In the event Executive’s employment with the Company is Terminated Without Cause, other than due to death, or Disability, or in the event there is
a Constructive Termination Without Cause within two years following a Change in Control, Executive shall be entitled to receive: 

  

	 	i.	Base Salary through the date of termination of Executive’s employment, which shall be paid in a cash lump sum not later than 15 days following Executive’s termination
of employment; 

  

	 	ii.	An amount equal to 1.5 times Executive’s Base Salary in effect on the date of termination of Executive’s employment (or in the event a reduction in Base Salary is a
basis for a Constructive Termination Without Cause, then the Base Salary in effect immediately prior to such reduction), payable in a cash lump sum following Executive’s termination of employment; 

 

	 	iii.	An amount equal to the sum of (A) the most recently established target annual cash incentive bonus amount, pro rated based on the portion of the performance year that
Executive has worked as of the date of Executive’s termination, plus (B) 25% of Base Salary (which represents an amount equal to the cash value of the target annual Performance-Based Restricted Stock unit award for the year in which
termination occurs, pro rated based on the portion of the performance year that Executive has worked as of the date of his/her termination). The Base Salary will be determined in accordance with Section 3.a.ii. Such payment of a pro rata annual
cash incentive bonus and cash in lieu of Performance-Based Restricted Stock will be payable in a cash lump sum following Executive’s termination of employment; 

 

	 	iv.	An amount equal to 1.5 times the sum of (A) the most recently established target annual incentive cash bonus amount, plus (B) 25% of Base Salary (determined in
accordance with Section 3.a.ii above), payable in a cash lump sum following the Executive’s termination of employment; 

  

	 	v.	Elimination of all restrictions on any restricted stock or restricted stock unit awards outstanding at the time of termination of employment (other than awards under the
Company’s Partnership Equity Program, which shall be governed by the terms of such awards); 

  

	 	vi.	Immediate vesting of all outstanding stock options and the right to exercise such stock options for the remainder of the full term of such option (other than awards under the
Company’s Partnership Equity Program, which shall be governed by the terms of such awards); 

  
 6 

	 	vii.	The balance of any incentive awards earned as of December 31 of the prior year (but not yet paid), which shall be paid in a single lump sum not later than 15 days following
Executive’s termination of employment; 

  

	 	viii.	Settlement of all deferred compensation arrangements in accordance with any then applicable deferred compensation plan or election form; 

 

	 	ix.	Continued participation in all medical, health and life insurance plans at the same benefit level at which Executive was participating on the date of termination of
Executive’s employment until the earlier of: 

  

	 	1.	the end of the Severance Period; or 

  

	 	2.	the date, or dates, Executive receives equivalent coverage and benefits under the plans and programs of a subsequent employer (such coverage and benefits to be determined on a
coverage-by-coverage, or benefit-by-benefit, basis); 

 provided that (1) if Executive is precluded from continuing
Executive’s participation in any employee benefit plan or program as provided in this clause (ix) of this Section 3.a, Executive shall receive cash payments equal on an after-tax basis to the cost to Executive of obtaining the
benefits provided under the plan or program in which Executive is unable to participate for the period specified in this clause (ix) of this Section 3.a, (2) such cost shall be deemed to be the lowest reasonable cost that would be
incurred by Executive in obtaining such benefit on an individual basis, and (3) payment of such amounts shall be made quarterly in advance; and 
  

	 	x.	other or additional benefits then due or earned in accordance with applicable plans and programs of the Company. 

 

	 	b.	Excise Tax Gross-Up. If while a member of the Business Planning Committee of the Company Executive becomes entitled to one or more payments (with a “payment”
including, without limitation, the vesting of an option or other non-cash benefit or property), whether pursuant to the terms of this Agreement or any other plan, arrangement, or agreement with the Company or any affiliated company (the “Total
Payments”), which are or become subject to the tax imposed by Code Section 4999 (or any similar tax that may hereafter be imposed) (the “Excise Tax”), the Company shall pay to Executive at the time specified below an additional
amount (the “Gross-up Payment”) (which shall include, without limitation, reimbursement for any penalties and interest that may accrue in respect to such Excise Tax) such that the net amount retained by the Executive, after reduction for
any Excise Tax (including any penalties or interest thereon) on the Total Payments and any federal, state and local income or employment tax and Excise Tax on the Gross-up Payment provided for by this Section 3.b., but before reduction for any
federal, state, or local income or employment tax on the Total Payments, shall be equal to the sum of (a) the Total Payments, and (b) an amount equal to the product of any deductions disallowed for federal, state or local income tax
purposes because of the inclusion of the Gross-up Payment in Executive’s adjusted gross income multiplied by the highest applicable marginal rate of federal, state, or local income taxation, respectively, for the calendar year in which the
Gross-up Payment is to be made. For purposes of determining whether any of the Total Payments will be subject to the Excise Tax and the amount of such Excise Tax: 

 

	 	(i)	 The Total Payments shall be treated as “parachute payments” within the meaning of Code Section 280G(b)(2), and all “excess parachute
payments” within the meaning of Code Section 280G(b)(1) shall be treated as subject to 

  
 7 

	 	 
the Excise Tax, unless, and except to the extent that, in the written opinion of independent compensation consultants, counsel or auditors of nationally recognized standing (“Independent
Advisors”) selected by the Company and reasonably accepted to the Executive, the Total Payments (in whole or in part) do not constitute parachute payments, or such excess parachute payments (in whole or in part) represent reasonable
compensation for services actually rendered within the meaning of Code Section 280G(b)(4) in excess of the base amount within the meaning of Code Section 280G(b)(3) or are otherwise not subject to the Excise Tax;

  

	 	(ii)	The amount of the Total Payments which shall be treated as subject to the Excise Tax shall be equal to the lesser of (A) the total amount of the Total Payments or
(B) the total amount of excess parachute payments within the meaning of Code Section 280G(b)(1) (after applying clause (i) above); and 

  

	 	(iii)	The value of any non-cash benefits or any deferred payment or benefit shall be determined by the Independent Advisors in accordance with the principles of Code Sections
280G(d)(3) and (4). 

 For purposes of determining the amount of the Gross-up Payment, Executive shall be deemed (A) to
pay federal income taxes at the highest marginal rate of federal income taxation for the calendar year in which the Gross-up Payment is to be made; (B) to pay any applicable state and local income taxes at the highest marginal rate of taxation
for the calendar year in which the Gross-up Payments is to be made, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes if paid in such year (determined without regard to
limitations on deductions based upon the amount of Executive’s adjusted gross income); and (C) to have otherwise allowable deductions for federal, state and local income tax purposes at least equal to those disallowed because of the
inclusion of the Gross-up Payment in Executive’s adjusted gross income. In the event that the Excise Tax is subsequently determined to be less than the amount taken into account hereunder at the time the Gross-up Payment is made, Executive
shall repay to the Company at the time that the amount of such deduction in Excise Tax is finally determined (but, if previously paid to the taxing authorities, not prior to the time the amount of such reduction is refunded to Executive or otherwise
realized as a benefit by Executive) the portion of the Gross-up Payment that would not have been paid if such Excise Tax had been applied in initially calculating the Gross-up Payment, plus interest on the amount of such repayment at the rate
provided in Code Section 1274(b)(2)(B). In the event that the Excise Tax is determined to exceed the amount taken into account hereunder at the time the Gross-up Payment is made (including by reason of any payment the existence or amount of
which cannot be determined at the time of the Gross-up Payment), the Company shall make an additional Gross-up Payment in respect to such excess (plus any interest and penalties payable with respect to such excess) at the time that the amount of
such excess is finally determined. 
 The Gross-up Payment provided for above shall be paid on the 30th day (or such earlier date as the
Excise Tax becomes due and payable to the taxing authorities) after it has been determined that the Total Payments (or any portion thereof) are subject to the Excise Tax; provided, however, that if the amount of such Gross-up Payment or
portion thereof cannot be finally determined on or before such day, the Company shall pay to Executive on such day an estimate, as determined by the Independent Advisors, of the minimum amount of such payments and shall pay the remainder of such
payments (together with interest at the rate provided in Code Section 1274(b)(2)(B)), as soon as the amount can be determined. In the event that 

  
 8 

 
the amount of the estimated payments exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by the Company to Executive, payable on the fifth day after
demand by the Company (together with interest at the rate provided in Code Section 1274(b)(2)(B)). If more than one Gross-up Payment is made, the amount of each Gross-up Payment shall be computed so as not to duplicate any prior Gross-up
Payment. The Company shall have the right to control all proceedings with the Internal Revenue Service that may arise in connection with the determination and assessment of any Excise Tax and, at its sole option, the Company may pursue or forego any
and all administrative appeals, proceedings, hearings, and conferences with any taxing authority in respect of such Excise Tax (including any interest or penalties thereon); provided, however, that the Company’s control over any such
proceedings shall be limited to issues with respect to which a Gross-up Payment would be payable hereunder, and Executive shall be entitled to settle or contest any other issue raised by the Internal Revenue Service or any other taxing authority.
Executive shall cooperate with the Company in any proceedings relating to the determination and assessment of any Excise Tax and shall not take any portion or action that would materially increase the amount of any Gross-Up Payment hereunder.

  

	 	c.	No Mitigation; No Offset. In the event of any termination of employment under this Section 3, Executive shall be under no obligation to seek other employment, and the
amounts due Executive under this Agreement shall not be offset by any remuneration attributable to any subsequent employment that Executive may obtain. 

  

	 	d.	Nature of Payments. Any amounts due under this Section 3 are in the nature of severance payments considered to be reasonable by the Company and are not in the nature
of a penalty. 

  

	 	e.	Exclusivity of Severance Benefit. Upon termination of Executive’s employment during the Term, Executive shall not be entitled to any severance payments or severance
benefits from the Company, or any other payments by the Company, other than the Severance Benefit provided in this Section 3, except as required by law. 

 

	 	f.	General Release of Claims. Executive agrees, as a condition of payment of the Severance Benefit provided for in this Section 3, that Executive will execute within 60
days of Executive’s termination of employment a separation agreement, in a form reasonably satisfactory to the Company, that includes a general release of any and all claims arising out of Executive’s employment or termination of
employment with the Company, other than claims for (i) enforcement of this Agreement, (ii) enforcement of Executive’s rights under any of the Company’s incentive compensation, equity and/or employee benefit plans and programs to
which Executive is entitled under this Agreement, and (iii) any tort for personal injury not arising out of or related to Executive’s employment or termination of employment. 

 

	 	g.	Subject to the provisions of Section 13(b), all payments to be made pursuant to this Section 3 upon the termination of employment of Executive shall be made or
commence, as the case may be, within 75 days after the Executive’s termination of employment provided, however, that if such termination of employment is after October 17 of a year, the payout or first payment, as the case may be, shall be
made at the end of such 75 day period. 

  

	4.	Confidentiality; Cooperation with Regard to Litigation; Non-disparagement. 

  

	 	a.	 During the Term and thereafter, Executive shall not, without the prior written consent of the Company, disclose to anyone (except in good faith in the ordinary
course of business to a person who will be advised by Executive to keep such information confidential) or make use of any confidential information except in the performance of

  
 9 

	 	 
Executive’s duties hereunder or when required to do so by legal process, by any governmental agency having supervisory authority over the business of the Company or by any administrative or
legislative body (including a committee thereof) that requires Executive to divulge, disclose or make accessible such information. In the event that Executive is so ordered, Executive shall give prompt written notice to the Company in order to allow
the Company the opportunity to object to or otherwise resist such order. 

  

	 	b.	During the Term and thereafter, Executive shall not disclose the existence or contents of this Agreement beyond what is disclosed in the proxy statement or documents filed with
the government unless and to the extent such disclosure is required by law, by a governmental agency, or in a document required by law to be filed with a governmental agency or in connection with enforcement of his/her rights under this Agreement.
In the event that disclosure is so required, Executive shall give prompt written notice to the Company in order to allow the Company the opportunity to object to or otherwise resist such requirement. This restriction shall not apply to such
disclosure by Executive to members of his/her immediate family, his/her tax, legal or financial advisors, any lender, or tax authorities, or to potential future employers to the extent necessary, each of whom shall be advised not to disclose such
information. 

  

	 	c.	“Confidential Information” shall mean all information concerning the business of the Company or any Subsidiary relating to any of their products, product development,
trade secrets, customers, suppliers, finances, and business plans and strategies. Excluded from the definition of Confidential Information is information (i) that is or becomes part of the public domain, other than through the breach of this
Agreement by Executive or (ii) regarding the Company’s business or industry properly acquired by Executive in the course of Executive’s career as an Executive in the Company’s industry and independent of Executive’s
employment by the Company. For this purpose, information known or available generally within the trade or industry of the Company or any Subsidiary shall be deemed to be known or available to the public. 

 

	 	d.	“Subsidiary” shall mean any corporation or other business entity owned or controlled directly or indirectly by CVS Caremark. 

 

	 	e.	Executive agrees to cooperate with the Company, during the Term and thereafter (including following Executive’s termination of employment for any reason), by being
reasonably available to testify on behalf of the Company or any Subsidiary in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, and to assist the Company, or any Subsidiary, in any such action, suit, or
proceeding, by providing information and meeting and consulting with the Board or its representatives or counsel, or representatives or counsel to the Company, or any Subsidiary as 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 reasonable expenses actually incurred in connection with Executive’s provision of testimony or
assistance. 

  

	 	f.	Executive agrees that, during the Term and thereafter (including following Executive’s termination of employment for any reason) Executive will not make statements or
representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage or be damaging to the Company or any Subsidiary or their respective officers,
directors, employees, advisors, businesses or reputations. Notwithstanding the foregoing, nothing in this Agreement shall preclude Executive from making truthful statements or disclosures that are required by applicable law, regulation or legal
process. 

  
 10 

	5.	Non-solicitation. 

 During the period
beginning with the Effective Date and ending 18 months following the termination of Executive’s employment with the Company, Executive, whether acting on Executive’s own behalf or by, through or on behalf of any third party, shall not
(a) hire any employees of the Company or any Subsidiary, or recruit or solicit any such employees or encourage them to terminate their employment with the Company or any Subsidiary; (b) accept business from any customers of the Company or
any Subsidiary, or solicit or encourage any customers, joint venture partners or investors of the Company or any Subsidiary to terminate or diminish their relationship with the Company or any Subsidiary or to violate any agreement with the Company
or any Subsidiary. For purposes of subsection 5(a), an employee of the Company or any Subsidiary means any person who was employed by the Company or any Subsidiary within 180 days of such hiring, recruitment, solicitation or encouragement. Executive
agrees to make any employer with whom Executive becomes employed during the 18-month period following Executive’s termination with the Company aware of this non-solicitation obligation upon commencing employment with such subsequent entity.

  

	6.	Remedies. 

 In addition to whatever other
rights and remedies the Company may have at equity or in law, the Company (a) shall have the right to immediately terminate all payments and benefits due under this Agreement if Executive breaches any of the provisions contained in Sections 4
or 5 above, and (b) shall have the right to seek injunctive relief in any court of competent jurisdiction if Executive breaches or threatens to breach any of the provisions contained in Sections 4 or 5 above. Executive acknowledges that such a
breach would cause irreparable injury and that money damages would not provide an adequate remedy for the Company; provided, however, the foregoing shall not prevent Executive from contesting the issuance of any such injunction on the ground that no
violation or threatened violation of Sections 4 or 5 has occurred. 
  

	7.	Effect of Agreement on Other Benefits. 

Except as specifically provided in this Agreement, the existence of this Agreement shall not be interpreted to preclude, prohibit or restrict the
Executive’s participation in any other employee benefit or other plans or programs in which he /she currently participates. 
  

	8.	Not an Employment Agreement. 

 This Agreement
is not, and nothing herein shall be deemed to create, a contract of employment between Executive and the Company. The Company may terminate the employment of Executive at any time and for any reason, subject to the terms of any employment agreement
between the Company and Executive that may then be in effect. 
  

	9.	Resolution of Disputes. 

 Any controversy or
claim arising out of or relating to this Agreement or any breach or asserted breach hereof or questioning the validity and binding effect hereof arising under or in connection with this Agreement, other than seeking injunctive relief under Sections
4 or 5, shall be resolved by binding arbitration, to be held at an office closest to the Company’s principal offices in accordance with the rules and procedures of the American Arbitration Association. Judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof. Pending the resolution of any arbitration or court proceeding, the Company shall continue payment of all amounts and benefits due Executive under this Agreement. All reasonable
costs and expenses of any arbitration or court proceeding (including fees and disbursements of counsel) shall be paid on behalf of or reimbursed to Executive promptly by 

  
 11 

 
the Company; provided, however, that no reimbursement shall be made of such expenses if and to the extent the arbitrator(s) determine(s) that any of Executive’s litigation assertions or
defenses were in bad faith or frivolous. 
  

	10.	Assignability; Binding Nature. 

 This
Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, heirs (in the case of Executive) and permitted assigns. No rights or obligations of the Company under this Agreement may be assigned or
transferred by the Company except that such rights or obligations may be assigned or transferred in connection with the sale or transfer of all or substantially all of the assets of the Company, provided that the assignee or transferee is the
successor to all or substantially all of the assets of the Company and such assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in this agreement, either contractually or as a matter of law. The
Company further agrees that, in the event of a sale or transfer of assets as described in the preceding sentence, it shall take whatever action it legally can in order to cause such assignee or transferee to expressly assume the liabilities,
obligations and duties of the Company hereunder. No rights or obligations of Executive under this Agreement may be assigned or transferred by Executive other than his/her, rights to compensation and benefits, which may be transferred only by will or
operation of law, except as provided in Section 16 below. 
  

	11.	Representation. 

 The Company represents and
warrants that it is fully authorized and empowered to enter into this Agreement and that the performance of its obligations under this Agreement will not violate any agreement between it and any other person, firm or organization. 

 

	12.	Entire Agreement. 

 This Agreement contains
the entire understanding and agreement between the Parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the Parties with
respect thereto. 
  

	13.	Amendment; Waiver; Code Section 409A. 

  

	 	(a)	No provision in this Agreement may be amended unless such amendment is agreed to in writing and signed by Executive and an authorized officer of the Company. No waiver by either
Party of any breach by the other Party of any condition or provision contained in this Agreement to be performed by such other Party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent
time. Any waiver must be in writing and signed by Executive or an authorized officer of the Company, as the case may be. 

  

	 	(b)	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 Code, as amended, and that to the extent any provisions of this Agreement do not comply with such Code Section 409A the parties will make such changes as are mutually agreed upon in order to comply with Code
Section 409A. In all events, to the extent required to avoid a violation the applicable rules under all Section 409A by reason of Code Section 409A(a)(2)(B)(i), payment of any amounts subject to Code Section 409A shall be delayed
until the relevant date of payment that will result in compliance with the rules of Code Section 409A(a)(2)(B)(i). 

  

	14.	Severability. 

 In the event that any
provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement 

  
 12 

 
shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law. 
  

	15.	Survivorship. 

 The respective rights and
obligations of the Parties hereunder shall survive any termination of Executive’s employment to the extent necessary to the intended preservation of such rights and obligations. 

 

	16.	Beneficiaries/References. 

 Executive shall be
entitled, to the extent permitted under any applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or benefit payable hereunder following Executive’s death by giving the Company written notice thereof.
In the event of Executive’s death or a judicial determination of his/her incompetence, references in this Agreement to Executive shall be deemed, where appropriate, to refer to his/her beneficiary, estate or other legal representative.

  

	17.	Governing Law/Jurisdiction. 

 This Agreement
shall be governed by and construed and interpreted in accordance with the laws of Rhode Island without reference to principles of conflict of laws. Subject to Section 6, the Company and Executive hereby consent to the jurisdiction of any or all
of the following courts for purposes of resolving any dispute under this Agreement: (i) the United States District Court for Rhode Island or (ii) any of the courts of the State of Rhode Island. The Company and Executive further agree that
any service of process or notice requirements in such proceeding shall be satisfied if the rules of such court relating thereto have been substantially satisfied. The Company and Executive hereby waive, to the fullest extent permitted by applicable
law, any objection which it or Executive may now or hereafter have to such jurisdiction and any defense of inconvenient forum. 
  

	18.	Notices. 

 Any notice given to a Party shall
be in writing and shall be deemed to have been given when delivered personally or sent by certified or registered mail, postage prepaid, return receipt requested, duly addressed to the Party concerned at the address indicated below or to, such
changed address as such Party may subsequently give such notice of: 
 If to CVS: 

CVS Pharmacy, Inc. 
 One CVS Drive

 Woonsocket, RI 02895 

Attention: Corporate Secretary 
 If to Executive: 
 David Denton 

38 Locksley Rd. 
 Newton, MA 02459

  

	19.	Headings. 

 The headings of the sections
contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement. 
  

	20.	Counterparts. 

 This Agreement may be executed
in two or more counterparts. 

  
 13 

 In WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above.

  

					
	CVS Pharmacy, Inc.
		
	By:	 	  

		 	Name:	  	V. Michael Ferdinandi
		 	Title:	  	Senior Vice President
		 		  	Human Resources, Corporate Communications and Community Relations

  

	
	Executive
	
	  

	David Denton
	 Senior Vice President, Finance & Controller

CVS Caremark

  
 14

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