Document:

Dated

27th September 2013

Secondment agreement

between

Alliance Boots Management Services Limited

and

Walgreen co.

Contents

Clause

	1.	Interpretation

	2.	Secondment

	3.	Services

	4.	Secondees' employment

	5.	Payments

	6.	Management during the secondment

	7.	Relationship of Parties

	8.	Leave

	9.	Data protection

	10.	Confidentiality

	11.	Intellectual property rights

	12.	Summary termination

	13.	Obligations following termination

	14.	Liability

	15.	Notices

	16.	Entire agreement

	17.	Variation and waiver

	18.	Counterparts

	19.	Third Party rights

	20.	No Rights Conferred on Secondees12

	21.	Governing law and jurisdiction

THIS AGREEMENT is dated

Parties

	
(1)

	
Alliance Boots Management Services Limited incorporated and registered in England with company number 07073433 whose registered office is at 2 The Heights, Brooklands, Weybridge, Surrey, KT13 0NY, UK (the Employer).

	
(2)

	
Walgreen Co. incorporated and registered in Illinois whose registered office is at 200 Wilmot Road, Deerfield, Illinois 60015, USA (the Host).

	
(3)

	
Employer and Host are referred to collectively in this Agreement as the "Parties" and singularly as a "Party".

Background

	
(A)

	
The Employer employs a number of employees in a variety of roles and responsibilities.

	
(B)

	
The Employer intends to second certain employees to the Host for temporary periods in order to provide certain agreed services for and on behalf of the Host.

	
(C)

	
References in this agreement to the Employer shall be deemed to include references to the Employer's Affiliates so that the provisions of this agreement shall apply equally to secondments of employees of the Employer's Affiliates to the Host.

Agreed terms

	
1.

	
Interpretation

	
1.1

	
The definitions and rules of interpretation in this clause apply in this agreement (unless the context requires otherwise).

Board: the board of directors from time to time of the Host (including any committee of the Board duly appointed by it).

Confidential Information: information relating to the business, products, affairs and finances of the relevant Party for the time being confidential to the relevant Party and trade secrets including, without limitation, technical data and know-how relating to the business of the relevant Party or any of its suppliers, clients, customers, agents, distributors, shareholders or management.

Employment Relationship: the terms and conditions of employment between the Employer and a Secondee at the date of this agreement subject to any changes in that Secondee's salary or other compensation and benefits in accordance with the Employer's usual procedures from time to time.

Employer's Affiliates: the Employer and its holding companies and subsidiaries and the subsidiaries of any such holding companies from time to time.

IP Rights: patents, rights to Inventions, copyright and related rights, trade marks, trade names and domain names, rights in get-up, goodwill and the right to sue for passing off or unfair competition, rights in designs, rights in computer software, database rights, rights to preserve the confidentiality of information (including know-how and trade secrets) and any other intellectual property rights, in each case whether registered or unregistered and including all applications (or rights to apply) for and be granted, renewals or extensions of, and rights to claim priority from, such rights and all similar or equivalent rights or forms of protection which may now or in the future subsist in any part of the world.

Inventions: inventions, ideas and improvements, whether or not patentable, and whether or not recorded in any medium.

Management Issues: all those matters under the Employment Relationship requiring action, investigation and/or decisions by the Employer including in particular (by way of illustration only and without limitation) appraisals and performance issues; pay reviews and the award of other payments and benefits under the Employment Relationship; periods of annual, sick or other leave; absence of the Secondee for any other reason; any complaint about the Secondee (whether or not that would be dealt with under the Employer's disciplinary procedure) and any complaint or grievance raised by the Secondee (whether or not that would be dealt with under the Employer's grievance procedure).

Pre-Secondment Statement: any undertaking, promise, assurance, statement, representation, warranty or understanding (whether in writing or not) of any person (whether party to this agreement or not) relating to the Secondment under this agreement other than as expressly set out in this agreement or any documents referred to in it.

Secondee: an employee of the Employer providing services to the Host on the terms of this agreement.

Secondment: the secondment of a Secondee by the Employer to the Host on the terms of this agreement.

Secondment Period: the period of this agreement as defined in clause 2.2.

Services: such services as may be agreed by the Parties from time to time.

	
1.2

	
The headings in this agreement are inserted for convenience only and shall not affect its construction.

	
1.3

	
A reference to a particular law is a reference to it as it is in force for the time being taking account of any amendment, extension, or re-enactment and includes any subordinate legislation for the time being in force made under it.

	
1.4

	
Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders.

	
1.5

	
Unless the context otherwise requires, words in the singular include the plural and in the plural include the singular.

	
1.6

	
The schedules to this agreement form part of (and are incorporated into) this agreement.

	
2.

	
Secondment

	
2.1

	
The Employer shall second Secondees to the Host on such dates and times as agreed by the Parties from time to time during the Secondment Period to provide the Services in accordance with the terms of this agreement.

	
2.2

	
The Secondment Period shall commence on the date of this agreement and shall continue until:

	
(a)

	
terminated by either Party giving not less than three (3) calendar months' prior notice in writing to the other Party at any time; or

	
(b)

	
terminated in accordance with clause 12.

	
3.

	
Services

	
3.1

	
The Employer shall use its reasonable endeavours to procure that any Secondees shall provide the Services at the offices of the Host or such other place as the Host may reasonably require for the proper performance and exercise of the Services.

	
3.2

	
The Secondees may be required to travel on the Host's business to such places by such means and on such occasions as the Host may from time to time reasonably require.

	
3.3

	
The Employer shall use its reasonable endeavours to procure that the Secondees shall work such hours as are reasonable and necessary for the proper performance of the Services.

	
3.4

	
The Employer shall use its reasonable endeavours to procure that the Secondees shall during the Secondment:

	
(a)

	
unless prevented by incapacity, devote such proportion of their working time, attention and abilities to the Services as reasonably required by the Host except for any work to be done for the Employer under clause 4.7;

	
(b)

	
faithfully and diligently serve the Host and use their best endeavours to promote, protect, develop and extend the Host's business;

	
(c)

	
not enter into any arrangement on behalf of the Host which is outside the normal course of business or their normal duties or which contains unusual or onerous terms;

	
(d)

	
promptly make such reports to the Board of the Host on any matters concerning the affairs of the Host and at such times as are reasonably required; and

	
(e)

	
comply with applicable laws, regulations and written policies and procedures of the Host, including the Host's insider trading policy.

	
4.

	
Secondees' employment

	
4.1

	
The Employment Relationship shall remain in force during the Secondment Period.

	
4.2

	
As required, the Employer shall make the necessary changes to the terms of the Employment Relationships so that it can second the Secondees to the Host to provide the Services in accordance with the terms of this agreement.

	
4.3

	
As required, the Employer shall amend the Employment Relationships to require the Secondees to comply with any such of the Host's policies and procedures as agreed by the Parties from time to time.

	
4.4

	
The Employer shall comply with the terms and conditions of the Employment Relationships during the Secondment Period.

	
4.5

	
The Host shall not, and shall not require the Secondees to do anything that shall, breach the Employment Relationships and shall have no authority to vary the terms of the Employment Relationships or make any representations to the Secondees in relation to the terms of the Employment Relationships.

	
4.6

	
The Host shall provide the Employer with such information and assistance as it may reasonably require to carry out its obligations as the Secondees' employer.

	
4.7

	
The Secondees shall be required to undertake such work for the Employer at such times as agreed by the Parties during the Secondment Period.

	
4.8

	
If any Secondee is held to be employed by the Host at any time during the Secondment Period then the Host may dismiss the Secondee and the Employer shall offer the Secondee employment on the terms that applied immediately before that dismissal.

	
4.9

	
All documents, manuals, hardware and software provided for the Secondees' use by the Host, and any data or documents (including copies) produced, maintained or stored on the Host's computer systems or other electronic equipment (including mobile phones), remain the property of the Host.

	
4.10

	
Unless otherwise agreed, during the Secondment Period and for a period of twelve months beginning with the final day therof, the Host will not solicit or entice or endeavour to solicit or entice any Secondee or former Secondee away from the Employer or employ or offer to employ any Secondee or former Secondee whether or not they would commit any breach of their Employment Relationship by leaving the service of the Employer and the Host will procure that each of its fellow group companies will observe and comply with an equivalent restriction.

	
5.

	
Payments

	5.1	The Employer shall continue to pay the Secondees' salary, Secondment- related allowances and other compensation, provide any benefits due to the Secondees or their dependants and make any payments to third parties in relation to the Secondees.  From the Secondees' salary, Secondment-related allowances and other compensation, the Employer will make any deductions or withholdings for taxes that it is required to make under applicable law or agreed to by the Secondee.

	5.2	The Host shall pay the Employer a sum equivalent to the total amount paid by the Employer to or in respect of the Secondees under the Employment Relationships for such periods of time that the Secondees are engaged in providing the Services, which shall include, but is not limited to:

	
(a)

	
the Secondees' salaries as reviewed by the Employer in accordance with the policy for the Employer's employees;

	
(b)

	
the Employer's  contributions in relation to the Secondees' retirement in accordance with applicable law and the policies and benefit plans for the Employer's employees;

	
(c)

	
any other benefits, compensation and/or Secondment-related allowances paid to the Secondees by the Employer from time to time in accordance with the policies and benefit plans for the Employer's employees;

	
(d)

	
all reasonable travel, accommodation and other expenses wholly, exclusively and necessarily incurred by the Secondees during the Secondment Period in or in connection with the exercise of the Services, if such expenses are evidenced and documented in such manner as the Employer may specify from time to time; and

	
(e)

	
all National Insurance or other social security contributions made by the Employer in relation to the Secondees.

This sum will be subject to VAT, if applicable, at the current rate.

	5.3	The Employer shall send the Host an invoice on or about the last day of each month of the Secondment Period, specifying the payment due under this agreement in relation to the preceding month and the amount of VAT due on the payment. Such invoices shall be payable by the Host within 30 days of receipt of the invoice.

	
6.

	
Management during the secondment

	
6.1

	
Secondees shall have equal and equivalent position and rank as other officers and employees of the same level within the Host.

	
6.2

	
The Employer shall continue to deal with any Management Issues concerning the Secondees during the Secondment Period, where relevant following consultation with the Host.

	
6.3

	
The Host shall use its reasonable endeavours to provide any information, documentation, access to its premises and employees and assistance (including but not limited to giving witness evidence) to the Employer to deal with any Management Issues concerning the Secondees whether under the Employer's internal procedures or before any court of tribunal. The Employer will reimburse the reasonable costs and expenses incurred by the Host in doing so subject to the prior approval of the Employer.

	
6.4

	
Although the Employer retains the right to direct and control the Secondees, the Employer delegates to the Host the day-to-day control of the Secondees' activities during the provision of any Services.  As soon as reasonably practicable, the Host shall refer any Management Issues concerning the Secondees that come to its attention to the Employer.

	
6.5

	
Both Parties shall inform the other as soon as reasonably practicable of any other significant matter that may arise during the Secondment Period relating to the Secondees or their employment.

	
6.6

	
Prior to the Employer's determination of the compensation of the Secondees from time to time, the Employer shall consult with and receive input and information from the Host concerning the Secondees and their proposed compensation and the Employer shall reasonably consider such input and information in determining the Secondees' compensation.

	
7.

	
Relationship of Parties

	
7.1

	
The relationship of Employer and Host established by this agreement is that of independent contractors, and nothing in this agreement shall be construed: (1) to give either Party the right or power to direct or control the daily activities of the other Party; (2) to constitute the Parties as principal and agent, employer and employee, partners, joint venturers, co-owners or otherwise as participants in a joint undertaking; or (3) to allow either Party (a) to create or assume any obligation on behalf of the other Party for any purpose whatsoever or (b) to represent to any person, firm or entity that such Party has any right or power to enter into any binding obligation on the other Party's behalf.

	
8.

	
 Leave

	
8.1

	
To the extent allowed under applicable law, the Secondees shall continue to be eligible for sick pay, holiday pay and any absence entitlements in accordance with the Employment Relationship, and shall remain subject to the Employer's approval and notification procedures.

	
8.2

	
The Employer shall notify and agree with the Host of any dates on which any Secondee shall take holiday.

	
8.3

	
The Employer and Host shall notify each other as applicable,  if the Secondee is or shall be absent from work for any reason as soon as reasonably practicable.

	
9.

	
Data protection

	
9.1

	
The Employer confirms that the Secondees have consented to the Host processing data relating to the Secondees for legal, personnel, administrative and management purposes.

	
9.2

	
The Employer confirms that the Secondees have consented to the Host making such information available to those who provide products or services to the Host (such as advisers and insurers), regulatory authorities, governmental or quasi-governmental organisations and potential purchasers of the Host or any part of its business.

	
10.

	
Confidentiality

The Employer shall use its reasonable endeavours to procure that the Secondees shall not:

	
(a)

	
(except in the proper course of the Services, as required by law or as authorised by the Host) during the Secondment Period or after its termination (howsoever arising) use or communicate to any person, company or other organisation whatsoever (and shall use their best endeavours to prevent the use or communication of) any Confidential Information relating to the Host that they create, develop, receive or obtain during the Secondment Period. This restriction does not apply to any information that is or comes in the public domain other than through the Secondees' unauthorised disclosure; or

	
(b)

	
make (other than for the benefit of the Host) any record (whether on paper, computer memory, disc or otherwise) containing Confidential Information relating to the Host or use such records (or allow them to be used) other than for the benefit of the Host. All such records (and any copies of them) shall be the property of the Host and shall be handed over to the Host by the Secondees on the termination of this agreement or at the request of the Host at any time during the Secondment Period.

	
11.

	
Intellectual property rights

As required, the Employer shall make the necessary changes to the terms and conditions of the Employment Relationships so that:

	
(a)

	
the Secondees shall give the Host full written details of all Inventions and of all works embodying Intellectual Property Rights made wholly or partially by them at any time during the provision of the Services;

	
(b)

	
the Secondees acknowledge that all Intellectual Property Rights subsisting (or which may in the future subsist) in all such Inventions and works made wholly or partially by them at any time during the provision of the Services shall automatically, on creation, vest in the Host absolutely and to the extent that they do not vest automatically, the Secondee holds them on trust for the Host; and

	
(c)

	
the Secondees agree promptly to execute all documents and do all acts as may, in the opinion of the Host, be necessary to give effect to this clause 11.

	
12.

	
Summary termination

	
12.1

	
The Employer may terminate the Secondment of a Secondee with immediate effect without notice or payment in lieu of notice:

	
(a)

	
on the termination of a Secondee's Employment Relationship as a result of the Secondee's gross misconduct, resignation or retirement;

	
(b)

	
if the Host is guilty of any serious or (after warning) repeated breach of the terms of this agreement; or

	
(c)

	
if the Host becomes bankrupt or makes any arrangement or composition with or for the benefit of its creditors.

Any delay by the Employer in exercising the right to terminate shall not constitute a waiver of such rights.

	
12.2

	
The Host may terminate the Secondment of a Secondee with immediate effect without notice or payment in lieu of notice:

	
(a)

	
on the termination of the Employment Relationship by the Employer;

	
(b)

	
if the Employer is guilty of any serious or (after warning) repeated breach of the terms of this agreement;

	
(c)

	
if the Employer becomes bankrupt or makes any arrangement or composition with or for the benefit of its creditors; or

	
(d)

	
if a Secondee violates an applicable law or regulation or breaches any material term of any of the Host's written policies or procedures.

For the avoidance of doubt, the Employer's violation of clause 6.5 of this agreement shall be deemed a serious breach of the terms of this agreement.  Any delay by the Host in exercising the right to terminate shall not constitute a waiver of such rights.

	
13.

	
Obligations following termination

On termination of a Secondment howsoever arising the Employer shall use its reasonable endeavours to procure that the Secondee shall (if the Host so requests):

	
(a)

	
deliver to the Host all documents (including, but not limited to, correspondence, lists of clients or customers, plans, drawings, accounts and other documents of whatsoever nature and all copies thereof, whether on paper, computer disc or otherwise) made, compiled or acquired by him during the Secondment and relating to the business or affairs of the Host or its clients, customers or suppliers and any other property of the Host which is in his possession, custody, care or control;

	
(b)

	
irretrievably delete any information relating to the business of the Host stored on any magnetic or optical disc or memory and all matter derived from such sources which is in his possession, custody, care or control outside the premises of the Host; and

	
(c)

	
confirm in writing and produce such evidence as is reasonable to prove compliance with their obligations under this clause 13.

	
14.

	
Liability

	
14.1

	
The Host shall take out and maintain in full force with a reputable insurance company for the Secondment Period adequate insurance coverage for any appropriate loss, injury and damage caused by or to the Secondees in the course of providing the Services.

	
14.2

	
During the Secondment Period, the Host shall fulfil all duties relating to the Secondees' health, safety and welfare as if it was their employer and shall comply with the Employer's reasonable requests in connection with the Employer's duties in relation to the Secondees.

	
14.3

	
The Employer shall use its reasonable endeavours to procure that the Secondees shall provide the Services with reasonable skill and care.

	
14.4

	
The Host shall indemnify the Employer fully and keep the Employer indemnified fully at all times against any loss, injury, damage or costs suffered, sustained or incurred by:

	
(a)

	
the Secondees in relation to any loss, injury, damage or costs arising out of any act or omission by the Host or its employees or agents during the Secondment Period; or

	
(b)

	
a third party, in relation to any loss, injury, damage or costs arising out of any act or omission of a Secondee in the course of carrying out the Services, except with respect to a violation by the Secondee of an applicable law or regulation or a breach by a Secondee of any material term of any of the Host's written policies or procedures.

	
14.5

	
The Employer shall indemnify the Host fully and keep the Host indemnified fully at all times against any claim or demand by the Secondees arising out of their employment by the Employer or its termination during the Secondment Period (except for any claim relating to any act or omission of the Host or its employees or agents).

	
15.

	
Notices

	
15.1

	
Any notice given under this agreement shall be in writing and signed by or on behalf of the party giving it and shall be served by delivering it personally, or sending it by pre-paid recorded delivery or registered post to the relevant Party at its registered office for the time being or by sending it by fax to the fax number notified by the relevant Party to the other Party. Any such notice shall be deemed to have been received:

	
(a)

	
if delivered personally, at the time of delivery; and

	
(b)

	
in the case of pre-paid recorded delivery or registered post, 72 hours from the date of posting; and

	
(c)

	
in the case of fax, at the time of transmission.

	
15.2

	
In proving such service it shall be sufficient to prove that the envelope containing such notice was addressed to the address of the relevant Party and delivered either to that address or into the custody of the postal authorities as a pre-paid recorded delivery or registered post or that the notice was transmitted by fax to the fax number of the relevant Party.

	
16.

	
Entire agreement

Each Party acknowledges and agrees with the other Party that:

	
(a)

	
this agreement constitutes the entire agreement and understanding between the Employer and the Host and supersedes any previous agreement between them relating to the Secondment (which shall be deemed to have been terminated by mutual consent);

	
(b)

	
in entering into this agreement they have not relied on any Pre-Secondment Statement; and

	
(c)

	
the only remedy available to it for breach of this agreement shall be for breach of contract under the terms of this agreement and it shall have no right of action against any other Party in respect of any Pre-Secondment Statement.

Nothing in this agreement shall, however, operate to limit or exclude any liability for fraud.

	
17.

	
Variation and waiver

No modification, variation or amendment to this agreement shall be effective unless such modification, variation or amendment is in writing and has been signed by or on behalf of both Parties.

	
18.

	
Counterparts

This agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be an original, and all the counterparts together shall constitute one and the same instrument.

	
19.

	
Third Party rights

	
19.1

	
Subject to the remainder of this clause 19, no person other than the Employer and the Host shall have any rights under this agreement and it shall not be enforceable by any person other than the Employer and the Host.

	
19.2

	
References in this agreement to the Employer shall be deemed to include references to the Employer's Affiliates so that the provisions of this agreement shall apply equally to secondments of employees of the Employer's Affiliates to the Host.

	
19.3

	
The Host shall be entitled and obliged to rely upon the authority of the Employer as agent for the Employer's Affiliates in all matters relating to this agreement, unless the Employer gives the Host notice in writing to the contrary.

	
19.4

	
The Employer shall be entitled to enforce this agreement on behalf of the Employer's Affiliates and/or claim for costs/losses suffered by any of the Employer's Affiliates as though it was suffered by the Employer.

	
20.

	
No Rights Conferred on Secondees

	
20.1

	
Nothing herein, expressed or implied, shall confer upon any Secondee or former Secondee any rights or remedies (including, without limitation, any right to employment by Employer or Secondment to the Host for any specified period) of any nature or kind whatsoever, under or by reason of this agreement.  It is expressly agreed that the provisions in this agreement are not intended to be for the benefit of or otherwise be enforceable by any Secondee or former Secondee.

	
21.

	
Governing law and jurisdiction

	
21.1

	
This agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the laws of England & Wales.

	
21.2

	
The Parties irrevocably agree that the courts of England & Wales shall have non-exclusive jurisdiction to settle any dispute or claim that arises out of or in connection with this agreement or its subject matter or formation (including non-contractual disputes or claims).

This agreement has been entered into on the date stated at the beginning of it.

	
Signed by Marco Pagni

for and on behalf of Alliance Boots Management Services Limited

 

	
/s/ Marco Pagni         

Director

		
	
Signed by Kathleen Wilson-Thompson 

for and on behalf of Walgreen Co.

	
/s/  Kathleen Wilson-Thompson

Senior Vice President and Chief Human Resources OfficerMr Alex Gourlay

26 September 2013

26 September 2013

PRIVATE & CONFIDENTIAL

Mr Alex Gourlay

(By e-mail)

Dear Alex

YOUR SECONDMENT TO WALGREEN CO.

This letter is to confirm the terms which will apply to you during your secondment to Walgreen Co. You will remain an employee of Alliance Boots Management Services Ltd ("the Company") and your secondment will begin with effect 1 October 2013. Your secondment will continue until 30 September 2015, subject to earlier termination (see paragraph 5 below).  Your secondment may continue beyond 30 September 2015 if both you and the Company agree to this but, in any event, the maximum duration of your secondment under these terms shall be two years. The Company will review the position with respect to the secondment duration within the last six months of the arrangement.

During this secondment you will be assigned on an accompanied status basis.

For the duration of your secondment, you will remain in the employment of the Company under the terms and conditions of your current employment contract with the Company (your "Employment Contract") and subject always to the terms set out below.  The policies developed for employees working in the UK will continue to apply to you during your secondment subject to any mandatory statutory minimum provisions which may apply to you and which are in force from time to time in the UK.

Your HR Director is currently Stephen Lehane and all consents and authorisations which you are required to obtain from the Company regarding policy should be sought from your HR Director. If you have any queries regarding support for your secondment, you should also contact Kate Low, the International Assignment Manager in the UK.

1            Job title & expectations

Your job title whilst on secondment will be Executive Vice President, President of Customer Experience and Daily Living, Walgreen Co. and you will report directly to Greg Wasson, President and Chief Executive Officer. In this role, you will have equal and equivalent position and rank as other officers of the same level within Walgreen Co.  In this role, you will be a Section 16 Executive Officer of Walgreen Co., as defined by Rule 3b-7 of the Securities Exchange Act of 1934, as amended (the "Exchange Act").  As such, this agreement is subject to the approval of the Compensation Committee of the Board of Directors of Walgreen Co. (the "Committee") and the Committee will review and approve your compensation, including salary, incentive compensation, equity compensation, perks, and certify attainment of goals for performance-based compensation. You agree to comply with all rules and regulations, including disclosure requirements, applicable to your role.

Notwithstanding anything to the contrary in this letter, during any period that you are seconded by the Company to another entity, you shall not have any authority to negotiate on behalf of the Company, or to modify or accept contracts on behalf of the Company or to otherwise bind the Company to any contract with any third party or to conduct any business in the name of or on behalf of the Company.  Further, any contract presented to you that is intended to bind the Company must be entered into by a duly authorized officer of the Company located in the principal business offices of the Company in the UK.

Your Employment Contract currently requires you to keep the Company's and its affiliates' confidential information and trade and business secrets confidential. You are also required to keep confidential any confidential information and trade and business secrets related to Walgreen Co. and its affiliates to which you have access during the secondment.

Whilst on secondment, you must give Walgreen Co full written details of all inventions and of all works embodying any intellectual property made wholly or partially by you at any time during the term of the secondment. All intellectual property rights subsisting (or which may in the future subsist) in all such inventions and works made wholly or partially by you at any time during the secondment shall automatically, on creation, vest in Walgreen Co absolutely and to the extent that they do not vest automatically, you will hold them on trust for Walgreen Co. By accepting the terms of this letter, you agree to promptly execute all documents and do all acts as may, in the opinion of Walgreen Co, be necessary to give effect to these obligations.

Upon termination of the secondment (if requested by Walgreen Co), you must:

	(a)	deliver to Walgreen Co all documents (including, but not limited to, correspondence, lists of clients or customers, plans, drawings, accounts and other documents of whatsoever nature and all copies thereof, whether on paper, computer disc or otherwise) made, compiled or acquired by you during the secondment and relating to the business or affairs of Walgreen Co or its clients, customers or suppliers and any other property of Walgreen Co which is in your possession, custody, care or control;

	(b)	irretrievably delete any information relating to the business of Walgreen Co stored on any magnetic or optical disc or memory and all matter derived from such sources which is in your possession, custody, care or control outside the premises of Walgreen Co; and

	(c)	confirm in writing and produce such evidence as is reasonable to prove compliance with these obligations.

2.            Place of work

Your normal place of work will be at Walgreen Co, Deerfield.  However, you will be required to travel to or work at other locations across the globe for the proper performance of your duties. We reserve the right to re-evaluate the ideal location for you to be based, subject to business requirements. This would be discussed with you fully were a further relocation to be required.

3.            Hours of work

Your normal hours of work will be 40 hours per week.  You are required to work such additional hours as are necessary for the proper performance of your duties.

4.            Holiday

Your holiday entitlement will be 30 days in line with the current UK policy, and you will be required to take US public holidays instead of UK bank and public holidays. You will be required to obtain Walgreen Co's prior approval before taking any such holiday and, at the same time as receiving such approval, notify the Company of the agreed holiday dates and duration.

5.            Duration of, and terms applicable on termination of, your secondment and/or employment

	(a)	The start and continuation of your secondment will be subject to you obtaining appropriate documentary evidence of your entitlement to live and work in the USA and to you remaining entitled to live and work in the USA.  You may be required to register locally with the appropriate and/or relevant authorities in the USA.

	(b)	During your secondment the provisions of your Employment Contract relating to termination of your employment with the Company will continue to apply.  Your secondment and the terms under this secondment letter will end automatically on termination of your employment.

	(c)	Your secondment may be terminated by the Company giving you not less than three months notice (or in accordance with paragraphs 5(a) or (b) above or paragraph 13(c) below).

	(d)	At the end of your secondment these secondment terms will cease to apply and, provided your employment with the Company is not terminated, you may be offered (and if offered shall be expected to accept) an alternative role within the group at the same or a more senior grade and at a salary which would not be less than your current basic salary.  If such an alternative role is offered to you, you would not be in a redundancy situation nor would you be entitled to receive any redundancy pay from the Company (or any other Alliance Boots Group Company) whether or not you decided to accept the alternative role offered to you.

(For the purposes of this secondment letter "Alliance Boots Group Company" means the Company, its associated companies and any "holding" or "subsidiary" company of the Company as those terms are defined in the Companies Act 2006, whether in the UK or abroad.)

	(e)	If no such alternative employment is offered to you on termination of your secondment (whether in the UK or abroad), you may be in a redundancy situation and therefore subject to the relevant provisions applicable to redundancy in the UK.

6.            Remuneration

	(a)	Your annual basic salary will be £572,000 (Five Hundred Seventy Two Thousand Pounds); this is your secondment salary and is effective from 1 October 2013.

	(b)	Your Cost of Living Allowance ("COLA") is £12,415 per year (Twelve Thousand, Four Hundred and Fifteen Pounds) Your COLA will not be Tax Equalised and it will be determined by the Company from time to time at its absolute discretion and may increase or decrease.  The COLA will be reviewed in June 2014 to take account of new COLA data which is not available until mid–June 2014.

	(c)	Your secondment salary will be Tax Equalised (see paragraph 9 (a) below).

	(d)	Your secondment salary will be paid to you in equal instalments (subject to appropriate deductions if applicable) monthly in arrears on or about the 28th day of the month by credit transfer to your nominated UK bank account.

	(e)	Your UK basic salary (and consequently your secondment salary) will be reviewed by the Company from time to time in consultation with Walgreen Co.  Currently, these are reviewed annually in June though you can expect your next review in April 2014.

	(f)	During your secondment you will be eligible to participate in the Walgreen corporate bonus program.  Based on your position this is targeted at 100% of salary and will be determined according to the Walgreen fiscal year from September 1 through August 31, and is subject to the Walgreen Co. Board of Directors' approval of each year's bonus.    You will be eligible for a pro-rated bonus (April to September 2013 inclusive) under the Alliance Boots bonus scheme for the current Alliance Boots fiscal year only, payable in June of 2014.  You will also be eligible for a full-year bonus under the Walgreen plan for fiscal 2014, beginning September 1, 2013 and ending on August 31, 2014 (payable in November 2014).  Any bonus payment made to you will be Tax Equalised.

	(g)	During your secondment your Long-term Incentives will continue to be earned under the Alliance Boots programs for which you are currently eligible.  You will not be eligible for any long-term incentive awards under the Walgreen Co. 2013 Omnibus Incentive Plan.

	7.	Pension

Your pension provision will continue as currently, with a supplement payment of 40% of base salary.

	8.	UK Car Allowance

You will continue to be eligible to receive your UK Car Allowance whilst on secondment.

9.            Tax and social security

	(a)	The Company will "Tax Equalise" your secondment salary and other remuneration and benefits identified as "Tax Equalised" in this secondment letter (the "Tax Equalised Amounts") and pursuant to the Company's assignment policy. This means that, at the end of each UK tax year in which you have been on secondment, the Company will review your overall tax position relating to employment related income to ensure you are no worse off from a tax perspective as a result of your secondment.

If actual taxes in the UK are no longer due, the Company will calculate the UK tax and Social Security Contributions, which would be due in respect of the Tax Equalised Amounts if you were working in the UK (your "UK Hypothetical Tax").   Please note that Tax Equalisation will not take account of the impact of your secondment on your personal investments.

	(b)	It is your responsibility to comply with UK, US and other tax and social insurance laws (including federal, state, local, provincial, cantonal, municipal, etc.) and to ensure that your tax returns are properly submitted within the relevant deadlines.  It is your responsibility to promptly recover any overpayment of tax or social security contributions made to any relevant authority for the benefit of the Company and to pay over any such sums recovered to the Company promptly.

	(c)	If any overpayment is made to you by the Company as a result of Tax Equalisation, the Company reserves the right to recover all or part of any sum(s) overpaid from you by making deductions in accordance with paragraph 10, and without prejudice to the Company's other rights and remedies for the recovery of such sums.

	(d)	You are eligible to receive tax advice annually at the Company's expense; from tax advisers nominated by the Company from time to time (and subject to such financial and/or other conditions as the Company may from time to time impose) in respect of both UK and US tax returns relating to your period of secondment. Such advice will be provided in relation to remuneration from your employment only.  The Company will not pay for additional tax planning advice, for example in relation to personal investments. The company will however consider, with the current provider, the additional services which you may require due to your absence from the UK and then make the appropriate consideration of the support required.

Any penalties or interest charges incurred because you fail to provide information or documentation requested by the nominated tax adviser promptly will be your responsibility.  The Company will not reimburse you in respect of any such costs.

10.            Deductions

By signing this secondment letter you authorise the Company to deduct from your remuneration or any other sums owed to you by the Company (whether during or after termination of your employment) all (or part of) any sum(s) due from you to the Company, and without prejudice to Company's other rights and remedies for the recovery of such sums.

11.            Business expenses

You will be reimbursed in respect of expenses incurred wholly and necessarily in the proper performance of your duties in accordance with the Company's policy from time to time.  Your expenses will be reimbursed in the US on behalf of the Company by direct credit transfer into your nominated bank account monthly in arrears, provided that you have supplied evidence satisfactory to the Company that the expenditure has been properly incurred in good time.

12.            Existing Insurance Coverage

You will continue to be covered by the Company's existing insurance arrangements, in place prior to your secondment to the US.

13.            Medical treatment and medical examination

	(a)	You will be eligible to participate in the Company's International Private Medical Scheme.   The Company reserves the right to amend and/or replace this scheme and/or the cover provided from time to time.  Further details of the current scheme will be available from your Secondment Manager.

	(b)	The Company may from time to time (whether before or during your secondment) require you to submit to a medical examination by a medical practitioner nominated by the Company at its sole discretion, and at the Company's expense.  You consent to the disclosure of the results of any such examination to the Company, in as far as they relate to your fitness to perform your duties and/or eligibility to receive benefits, and subject always to applicable laws.

	(c)	The Company reserves the right to withdraw any offer of secondment or terminate any secondment and require you to return to the UK without notice (or on short notice) if, in the Company's opinion, you are not fit to perform your duties or unlikely to return to work within a reasonable time period or if in the Company's opinion you should undergo medical treatment provided by the medical authorities in the UK.

14.            Visas and permits

The Company will, at its expense, where appropriate apply for (and where appropriate assist you to obtain) any necessary work, residential and other permits or visas required for your secondment (and the Company will reimburse you for any reasonable costs incurred in obtaining such permits or visas). The Company will also assist with the application and associated costs for residential and other permits or visas required for your dependants. You are required to assist the Company in this regard.

15.            Temporary Accommodation

The Company will meet the reasonable costs of your temporary accommodation whilst in the US up to a maximum of 90 days.

16.            US Property Taxes

In recognition of the differences between UK and US property taxes, the Company will pay you an additional allowance to represent the difference between your pre-secondment UK property taxes on your principal residence and your US property taxes on your principal residence.

17.              Relocation and repatriation expenses and home visits

The detail contained in this secondment letter supports the separate relocation document which you will have received from the relocation team in the UK.

Subject to Company policy in force from time to time (including applicable financial limits), the Company will also reimburse you the costs of the following:

	(a)	One business class one way air fare, for yourself and your dependents, between the UK and the US at the start of your secondment and, at the end of your secondment (provided that your employment does not terminate on grounds of your own conduct or resignation), between the US and the UK or the location of any alternative role within an Alliance Boots Group Company; and

	(b)	Six business class return trips per year between the UK and the US for use by you or your dependants.

	(c)	If required, transporting a reasonable amount of your personal belongings at the start and end of your secondment between the UK and the US.  The costs of the airfreight of 200 lbs per adult and a 40-foot sea freight container per relocation (approx 14,000 lbs), will be  paid for by the Company.  The relocation company will determine the best use of your total allowance when they review the items to be moved.

	(d)	If you let your property in the UK you may have items which you do not wish to leave in your property while overseas.  The Company will pay for storage and insurance costs up to 2,050 lbs to include items for you per year.  This may be increased if you rent furnished accommodation in the US.

18.            Grievances

If you have any grievance relating to your secondment or your employment you should raise it with the Company's Human Resources Director.  You should make it clear that you wish to raise a formal grievance. You may be asked to put your grievance in writing.  If the grievance is not resolved to your satisfaction you may raise the matter with me in writing and my decision will be final.

19.            Business Conduct

You are expected to comply with laws applicable to governmental payments. Except as permitted under the Alliance Boots Code of Conduct and Business Ethics and the Walgreen Co. Code of Business Conduct, you shall not, directly or indirectly, pay, give or offer anything of value to any foreign government officer, employee or representative, or to any foreign political party or candidate for or incumbent in any foreign political office, for any personal or business reasons, including in order to assist in obtaining, retaining or directing business. Further, it is understood that you will not engage in any employment or business enterprises that would in any way conflict with your service with, and the interest of, the Company or Walgreen Co.

20.            Miscellaneous

	(a)	You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this document by and among, as applicable, the Company and its affiliates and Walgreen Co. and its affiliates for the exclusive purpose of managing and administering your international assignment.

You understand that the Company and Walgreen Co. hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, email address, family size, marital status, sex, beneficiary information, emergency contacts, passport/visa information, age, language skills, drivers license information, nationality, C.V. (or resume), wage history, employment references, social insurance number or other identification number, salary, job title, employment or severance contract, current wage and benefit information, personal bank account number, and tax related information for purposes of managing and administering your international assignment ("Data").

You understand that Data may be transferred to any third parties assisting in the management and administration of your international assignment, that these recipients may be located in your country or elsewhere, and that the recipient's country may have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting me.

You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of managing and administering your international assignment. You understand that Data will be held only as long as is necessary to manage and administer your international assignment.

You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your HR Director.

	 (b)	This secondment letter and your Contract of Employment together record the whole Agreement between you and the Company in respect of your Secondment and supersede any prior agreements in this regard.

	(c)	This secondment letter shall be governed and construed in all respects by English law and you and the Company irrevocably submit to the non-exclusive jurisdiction of the Courts of England & Wales.

	(d)	You hereby acknowledge that you have understood the Company's international assignment policy

	(e)	A person, firm, company or corporation who or which is not a party to this agreement (including members of your family) shall have no right to enforce any term of this agreement.

Please would you sign, date and return to me the duplicate copy of this letter to confirm that you have read, understand and agree to its contents.  The additional copy is for you to keep.

Yours sincerely

/s/ Marco Pagni

Marco Pagni

Group Legal Counsel & Chief Administrative Officer

Signed on Behalf of Alliance Boots Management Services Ltd

I confirm that I have read, understand and agree to be bound by the contents of this secondment letter.

/s/ Alex Gourlay                                                                                                  27 / 9/ 2013

Alex Gourlay                                                                                                           Date signed

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