Document:

Document

Exhibit 10.1 

CVS Pharmacy, Inc.
Restrictive Covenant Agreement
(Colleagues Primarily Working or Living in Massachusetts)

I, Alan Lotvin, enter into this Restrictive Covenant Agreement (“Agreement”) with CVS Pharmacy, Inc., on its own behalf and on behalf of its subsidiaries and affiliates (“CVS”), which is effective as of the date I sign the Agreement (“Effective Date”).  In consideration of the mutual promises in this Agreement, the parties agree as follows:

1.Consideration for Agreement.  In connection with my duties and responsibilities at CVS Health Corporation or one of its subsidiaries or affiliates, including Aetna Inc. (collectively, the “Corporation”), the Corporation will provide me with Confidential Information and/or access to the Corporation’s customers and clients and the opportunity to develop and maintain relationships and goodwill with them.  In addition, the Corporation has awarded me equity contingent on the execution of this Agreement and compliance with its terms.  In consideration of the foregoing and the mutual promises in this Agreement, I hereby agree with CVS to comply with the terms of this Agreement.
2.Non-Competition.  During my employment by the Corporation and during the Non-Competition Period following the termination of my employment for any reason, I will not, directly or indirectly, engage in Competition or provide Consulting or Audit Services within the Restricted Area. I understand that unless this clause is waived by the Corporation, or I violate the terms of this Agreement during the Non-Competition Period, the Corporation will pay me, as part of its regular payroll process, ten thousand dollars ($10,000.00).  The payment described herein will be made in a lump sum, less applicable withholdings, within 14 days following my termination of employment, contingent upon my compliance with Section 2(b) and subject to the other provisions of this Agreement. Notwithstanding the foregoing, this Section 2 shall not be effective (and the compensation described herein will not be paid), following my termination by the Corporation without Cause or as part of a Corporation layoff.
a.    Competition.  Engaging in “Competition” means providing services to a Competitor of the Corporation (whether as an employee, independent contractor, consultant, principal, agent, partner, officer, director, investor, or shareholder, except as a shareholder of less than one percent of a publicly traded company) that: (i) are the same or similar in function or purpose to the services I provided to the Corporation at any time during the last year of my employment by the Corporation; or (ii) will likely result in the disclosure of Confidential Information to a Competitor or the use of Confidential Information on behalf of a Competitor.  

b.     Notice Concerning New Employer.  If a representative of the Corporation, during my employment or the Non-Competition Period, requests that I identify the company or business to which I will be or am providing services, or with which I will be or am employed, and requests that I provide information about the services that I am or will be providing to such entity, I shall provide the Corporation with a written statement detailing the identity of the entity and the nature of the services that I am or will be providing to such entity with sufficient detail to allow the Corporation to independently assess whether I am or will be in violation of this Agreement.  Such statement shall be delivered to the Corporation’s Chief Human Resources Officer or his or her authorized delegate via personal delivery or overnight delivery within five calendar days of my receipt of such request.

c.    Competitor.  A “Competitor” for purposes of this Agreement shall mean any person, corporation or other entity that competes with one or more of the business offerings of the Corporation.  As of the Effective Date, the Corporation’s business offerings include: (i) pharmacy benefits management 

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(“PBM”), including:  (a) the administration of pharmacy benefits for businesses, government agencies and health plans; (b) mail order pharmacy; (c) specialty pharmacy; (d) the procurement of prescription drugs at a negotiated rate for dispensing; and (e) Medicare Part D services; (ii) retail, which includes the sale of prescription drugs, over-the-counter medications, beauty products and cosmetics, digital and traditional photo finishing services, digital and other online offerings, seasonal and other general merchandise, greeting cards, convenience foods and other product lines and services which are sold by the Corporation’s retail division (“Retail”); (iii) retail health clinics (“MinuteClinic”); (iv) the provision      of pharmaceutical products and ancillary services, including specialty pharmaceutical products and support services and the provision of related pharmacy consulting, data management services and medical supplies to long-term care facilities, other healthcare service providers and recipients of services from such facilities (“Long-Term Care”); (v) the provision of prescription infusion drugs and related services (“Infusion”); (vi) the provision of Insurance (“Insurance”): (a) health insurance products and services; (b) managed health care products and services; (c) dental, vision, workers compensation and employee assistance program products and services; (d) wellness products and services to employers, government agencies,  health plans, other businesses or third party payers;  (e) other voluntary products that are excepted benefits under HIPAA; (vii) the creation and provision of population health management products and services (“Health Management”); (viii) the administration of (ii) – (vii) (“Administration”); and (ix) any other business in which Corporation is engaged or imminently will be engaged. 
For the purpose of assessing whether I am engaging in “Competition” under Section 2 (a) (i) above, a person, corporation or other entity shall not be considered a Retail Competitor if such entity derives annual gross revenues from its business in an amount which is less than 2% of the Corporation’s gross revenues from Retail, during its most recently completed fiscal year. For avoidance of doubt, this exclusion does not apply to a determination of whether I am engaging in “Competition” as set forth in Section 2 (a) (ii) above.
I and the Corporation acknowledge that both the Corporation’s products and services and the entities which compete with the Corporation’s products and services evolve and an entity will be considered a Competitor if it provides products or services competitive with the products and services provided by the Corporation within the last two years of my employment.
I agree to this enterprise-wide definition of non-competition which may prevent me from providing services to any of the Corporation’s PBM, Retail, MinuteClinic, Long-Term Care, Insurance, Health Management, Administration and/or Infusion Competitors or any combination thereof during the Non-Competition period.     
d.    Consulting or Audit Services.  “Consulting or Audit Services” shall mean any activity which involves providing audit review or other consulting or advisory services with respect to any relationship or prospective relationship between the Corporation and any third party that is likely to result in the use or disclosure of Confidential Information.  
e.    Non-Competition Period.  The “Non-Competition Period” shall be the period of 12 months following the termination of my employment with the Corporation for any reason. I agree that the Non-Competition Period may be extended by an additional period of up to one year (the “Extension Period”), upon written notice by the Corporation, if I have unlawfully taken, physically or electronically, property belonging to the Corporation or have breached my fiduciary duty of loyalty to the Corporation, but I will be paid no additional compensation during the Extension Period.
f.    Restricted Area.  “Restricted Area” refers to those states within the United States in which the Corporation conducts its business, as well as the District of Columbia and Puerto Rico.  To the extent I worked on international projects in Asia, Europe, Brazil and/or other countries where the 

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Corporation may conduct business, the Restricted Area includes those countries and those countries where the Corporation is actively planning to conduct business.
g.    Cause. As used in this Agreement, “Cause” for termination shall mean that the Corporation has (a) a reasonable basis for dissatisfaction with my performance, entertained in good faith, for reasons such as lack of capacity or diligence, failure to conform to the Company’s standards of conduct, or other culpable or inappropriate behavior, or (b) grounds for discharge reasonably related, in the Corporation’s honest judgment, to the needs of the Corporation’s business. A layoff shall not constitute “Cause” for termination.    
3.Non-Solicitation.  During the Non-Solicitation Period, which shall be during my employment by the Corporation and for 18 months following the termination of my employment with the Corporation for any reason, I will not, unless a duly authorized officer of the Corporation gives me written authorization to do so:
a.interfere with the Corporation’s relationship with its Business Partners by soliciting or communicating (regardless of who initiates the communication) with a Business Partner to: (i) induce or encourage the Business Partner to stop doing business or reduce its business with the Corporation, or (ii) buy a product or service that competes with a product or service offered by the Corporation’s business.  “Business Partner” means: a customer (person or entity), prospective customer (person or entity), healthcare provider, supplier, manufacturer, agency, broker, hospital, hospital system, long-term care facility, and/or pharmaceutical manufacturer with whom the Corporation has a business relationship and with which I had business-related contact or dealings, or about which I received Confidential Information, in the two years prior to the termination of my employment with the Corporation.  A Business Partner does not include a customer, supplier, manufacturer, broker, hospital, hospital system, long-term care facility and/or pharmaceutical manufacturer which has fully and finally ceased doing any business with the Corporation independent of any conduct or communications by me or breach of this Agreement and such full cessation of business has been in effect for at least 1 year prior to my separation from employment with the Corporation.  Nothing in this Section 3(a) shall prevent me from working as a staff pharmacist or in another retail position wherein I would be providing or selling prescriptions or other products directly to consumers.

b.work on a Corporation account on behalf of a Business Partner or serve as the representative of a Business Partner to the Corporation. 

c.interfere with the Corporation’s relationship with any employee or contractor of the Corporation by:  (i) soliciting or communicating with the employee or contractor to induce or encourage him or her to leave the Corporation’s employ or engagement (regardless of who first initiates the communication); (ii) helping another person or entity evaluate such employee or contractor as an employment or contractor candidate; or (iii) otherwise helping any person or entity hire an employee or contractor away from the Corporation.  
4.Non-Disclosure of Confidential Information.
    a.    Subject to Sections 7 and 8 below, I will not at any time, whether during or after the termination of my employment, disclose to any person or entity any of the Corporation’s Confidential Information, except as may be appropriately required in the ordinary course of performing my duties as an employee of the Corporation.  The Corporation’s Confidential Information includes but is not limited to the following non-public information: trade secrets; computer code generated or developed by the Corporation; software or programs and related documentation; strategic compilations and analysis; strategic processes; business or financial methods, practices and plans; non-public costs and prices; 

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operating margins; marketing, merchandising and selling techniques and information; customer lists; provider lists, details of customer agreements; pricing arrangements with pharmaceutical manufacturers, distributors or suppliers including but not limited to any discounts and/or rebates; pharmacy reimbursement rates; premium information; payment rates; contractual forms; expansion strategies; real estate strategies; operating strategies; sources of supply; patient records; business plans; other financial, commercial, business, or technical information related to the Corporation and confidential information of third parties which is given to the Corporation  pursuant to an obligation or agreement to keep such information confidential (collectively, “Confidential Information”).  I shall not use or attempt to use any Confidential Information on behalf of any person or entity other than the Corporation, or in any manner which may injure or cause loss, or may be calculated to injure or cause loss, whether directly or indirectly, to the Corporation.  If, at any time over the last two years of my employment at CVS, my position included access to Confidential Information, as described above, specifically related to the Corporation’s procurement of prescription drugs, I understand and agree my employment with a pharmaceutical manufacturer, distributor or supplier (“Pharmaceutical Entity”) would place a substantial risk of use and/or disclosure of Confidential Information with which I have been or will be entrusted during my employment with the Corporation.  In light of this risk of disclosure, I acknowledge and agree that the Corporation will be entitled to immediate injunctive relief to prevent me from disclosing any such Confidential Information in the course of my employment with any such Pharmaceutical Entity.  I agree that the disclosure of such Confidential Information, to the Corporation’s PBM Competitors with which one may negotiate in the course of employment with such Pharmaceutical Entity, would cause immediate and irreparable harm to the Corporation. For employees residing in Connecticut, these restrictions on use or disclosure of Confidential Information will only apply for three (3) years after the end of my employment where information that does not qualify as a trade secret is concerned; however, the restrictions will continue apply to trade secret information for as long as the information at issue remains qualified as a trade secret.
b.    During my employment, I shall not make, use, or permit to be used, any materials of any nature relating to any matter within the scope of the business of the Corporation or concerning any of its dealings or affairs other than for the benefit of the Corporation.  I shall not, after the termination of my employment, use or permit to be used any such materials and shall return same in accordance with Section 5 below.  
5.Ownership and Return of the Corporation’s Property.  On or before my final date of employment with the Corporation, I shall return to the Corporation all property of the Corporation in my possession, custody or control, including but not limited to the originals and copies of any information provided to or acquired by me in connection with the performance of my duties for the Corporation, such as files, correspondence, communications, memoranda, e-mails, slides, records, and all other documents, no matter how produced or reproduced, all computer equipment, communication devices (including but not limited to any mobile phone or other portable digital assistant or device), computer programs and/or files, and all office keys and access cards.  I agree that all the items described in this Section are the sole property of the Corporation.
6.Rights to Inventions, Works.  
    a.    Assignment of Inventions.  All inventions, original works of authorship, developments, concepts, improvements, designs, discoveries, ideas, trademarks or trade secrets, whether patentable or otherwise protectable under similar law, made, conceived or developed by me, whether alone or jointly with others, from the date of my initial employment by the Corporation and continuing until the end of any period during which I am employed by the Corporation, relating or pertaining in any way to my employment with or the business of the Corporation (collectively referred to as “Inventions”) shall be promptly disclosed in writing to the Corporation.  I hereby assign to the Corporation, or its designee, all 

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of my rights, title and interest to such Inventions.  All original works of authorship which are made by me (solely or jointly with others) within the scope of and during the period of my employment with the Corporation and which are protectable by copyright are “works made for hire,” as that term is defined in the United States Copyright Act and as such are the sole property of the Corporation. The decision whether to commercialize or market any Invention developed by me solely or jointly with others is within the Corporation’s sole discretion and for the Corporation’s sole benefit and no royalty will be due to me as a result of the Corporation’s efforts to commercialize or market any such Invention.
    b.     Inventions Retained and Licensed.  I have attached hereto as Exhibit A, a list describing all inventions, original works of authorship, developments, improvements, and trade secrets which were made by me prior to my employment with the Corporation (“Prior Inventions”), which belong to me and are not assigned to the Corporation hereunder.  If no such list is attached, I represent that there are no such Prior Inventions.  I will not incorporate, or permit to be incorporated, any Prior Invention owned by me or in which I have an interest into a Corporation product, process or machine without the Corporation’s prior written consent.  Notwithstanding the foregoing sentence, if, in the course of my employment with the Corporation, I incorporate into a Corporation product, process or machine a Prior Invention owned by me or in which I have an interest, the Corporation is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, process or machine. 
    c.    Patent and Copyright Registrations.  I will assist the Corporation, or its designee, at the Corporation’s expense, in every proper way to secure the Corporation’s rights in the Inventions and any copyrights, patents, mask work rights or other intellectual property rights relating thereto, including, but not limited to, the disclosure to the Corporation of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments and all other instruments which the Corporation shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Corporation, its successors, assigns, and nominees the sole and exclusive rights, title and interest in and to such Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating thereto.  My obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after my employment ends for any reason and/or after the termination of this Agreement.  If the Corporation is unable because of my mental or physical incapacity or for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Inventions or original works of authorship assigned to the Corporation as above, then I hereby irrevocably designate and appoint the Corporation and its duly authorized officers and agents as my agent and attorney in fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright registrations thereon with the same legal force and effect as if executed by me. 
d.    Exception to Assignments.  I understand that if I am an employee in Illinois, Kansas, North Carolina, Utah or Minnesota, I should refer to Exhibit B (incorporated herein for all purposes) for important limitations on the scope of the provisions of this Agreement concerning assignment of Inventions.  I will advise the Corporation promptly in writing of any inventions that I believe meet the criteria in Exhibit B and that are not otherwise disclosed on Exhibit A.
7.Cooperation.
    a.    In the event  I receive a subpoena, deposition notice, interview request, or other process or order to testify or produce Confidential Information or any other information or property of the Corporation, I shall promptly: (i) notify the Corporation of the item, document, or information sought by such subpoena, deposition notice, interview request, or other process or order; (ii) furnish the Corporation 

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with a copy of said subpoena, deposition notice, interview request, or other process or order; and (iii) provide reasonable cooperation with respect to any procedure that the Corporation may initiate to protect Confidential Information or other interests.  If the Corporation objects to the subpoena, deposition notice, interview request, process, or order, I shall cooperate to ensure that there shall be no disclosure until the court or other applicable entity has ruled upon the objection, and then only in accordance with the ruling so made.  If no such objection is made despite a reasonable opportunity to do so, I shall be entitled to comply with the subpoena, deposition, notice, interview request, or other process or order provided that I have fulfilled the above obligations.
b.    I will cooperate fully with the Corporation, its affiliates, and their legal counsel in connection with any action, proceeding, or dispute arising out of matters with which I was directly or indirectly involved while serving as an employee of the Corporation, its predecessors, subsidiaries or affiliates.  This cooperation shall include, but shall not be limited to, meeting with, and providing information to, the Corporation and its legal counsel, maintaining the confidentiality of any past or future privileged communications with the Corporation’s legal counsel (outside and in-house), and making myself available to testify truthfully by affidavit, in depositions, or in any other forum on behalf of the Corporation.  The Corporation agrees to reimburse me for any reasonable and necessary out-of-pocket costs associated with my cooperation.
8.Limitation on Restrictions.  Nothing in this Agreement is intended to or shall interfere with my right to file charges or participate in a proceeding with any appropriate federal, state or local government agency, including the Occupational Safety and Health Administration (“OSHA”), National Labor Relations Board (“NLRB”) or the Securities and Exchange Commission (“SEC”); to exercise rights under Section 7 of the National Labor Relations Act (“NLRA”); or to file a charge or complaint with or participate or cooperate in an investigation or proceeding with the US Equal Employment Opportunity Commission (“EEOC”) or comparable state or local agencies. Such agencies have authority to carry out their statutory duties by investigating a charge, issuing a determination, filing a lawsuit, or taking any other action authorized by law.  I retain the right to participate in any such action and retain the right to communicate with the NLRB, SEC, EEOC, OSHA and comparable state or local agencies and such communication shall not be limited by any provision in this Agreement. Nothing in this Agreement limits my right to receive an award for information provided to a government agency such as the SEC and OSHA.  In addition, nothing in this Agreement is intended to interfere with or restrain the immunity provided under 18 U.S.C. § 1833(b) for confidential disclosures of trade secrets to government officials or lawyers, solely for the purpose of reporting or investigating a suspected violation of law, or in a sealed filing in court or other proceeding.
9.Eligibility for Severance Pay.  If my employment with the Corporation terminates under circumstances in which I am eligible for severance under the applicable severance plan (the “Severance Plan”), the Corporation will offer me severance in accordance with the Severance Plan.  I acknowledge that I must meet certain requirements in order to receive severance, including but not limited to execution of the Corporation’s standard separation agreement and release of claims, a new non-competition agreement (not to exceed 18 months) and any requirements expressed in the Severance Plan. In the event that the Corporation fails to comply with its obligations to offer me severance according to the Severance Plan, then Section 2 of this Agreement shall be of no further effect.  I agree that if I decline the Corporation’s offer of severance, I shall continue to be subject to the restrictions in Section 2.
10.Injunctive Relief.  Any breach of this Agreement by me will cause irreparable damage to the Corporation and, in the event of such breach, the Corporation shall have, in addition to any and all remedies of law, the right to an injunction, specific performance or other equitable relief to prevent the violation of my obligations hereunder, and without providing a bond to the extent permitted by the applicable rules of civil procedure.

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11.No Right of Continued Employment.  This Agreement does not create an obligation on the Corporation or any other person or entity to continue my employment.
12.No Conflicting Agreements.  I represent that the performance of my job duties with the Corporation and my compliance with all of the terms of this Agreement does not and will not breach any agreement to keep in confidence proprietary information acquired by me in confidence or in trust prior to my employment by the Corporation.
13.Entire Agreement/No Reliance/No Modifications.  This Agreement and any compensation, benefit or equity plan or agreement referred to herein or under which equity was granted, including the CVS Health Corporation Change in Control Agreement (“CIC Agreement”), to the extent those other agreements apply to me, set forth the entire agreement between the parties hereto and fully supersede any and all prior and/or supplemental understandings, whether written or oral, between the parties concerning the subject matter of this Agreement.  This agreement shall not have any effect on any prior existing agreements between Corporation and me regarding the arbitration of workplace legal disputes and any such agreements remain in full force and effect. Notwithstanding the foregoing, if I am a party to the CIC Agreement, then I understand that in the event of a Change in Control, as that term is defined in the CIC, Section 2 of this Agreement shall be null and void.  I agree and acknowledge that I have not relied on any representations, promises or agreements of any kind in connection with my decision to accept the terms of this Agreement, except for the representations, promises and agreements herein.  Any modification to this Agreement must be made in writing and signed by me and the Corporation’s Chief Human Resources Officer or his or her authorized representative.
14.No Waiver.  Any waiver by the Corporation of a breach of any provision of this Agreement, or of any other similar agreement with any other current or former employee of the Corporation, shall not operate or be construed as a waiver of any subsequent breach of such provision or any other provision hereof.
15.Severability.  The parties hereby agree that each provision herein shall be treated as a separate and independent clause, and the unenforceability of any one clause shall in no way impair the enforceability of any of the other clauses herein.  Specifically, I understand that in no way shall the enforceability of Section 2 herein affect the enforceability of Sections 3 and 4. Moreover, if one or more of the provisions of this Agreement are for any reason held to be excessively broad as to scope, activity, duration, subject or otherwise so as to be unenforceable at law, the parties consent to such provision or provisions being modified or limited by the appropriate judicial body (where allowed by applicable law), so as to be enforceable to the maximum extent compatible with the applicable law.
16.Survival of Employee’s Obligations.  My obligations under this Agreement shall survive the termination of my employment regardless of the manner of such termination and shall be binding upon my heirs, personal representatives, executors, administrators and legal representatives.
17.Corporation’s Right to Assign Agreement.  The Corporation has the right to assign this Agreement to its successors and assigns without the need for further agreement or consent by me, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by said successors or assigns.
18.Non-Assignment.  I shall not assign my rights and obligations under this Agreement, in whole or in part, whether by operation of law or otherwise, without the prior written consent of the Corporation, and any such assignment contrary to the terms hereof shall be null and void and of no force or effect.

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19.Governing Law; Venue; Headings.  Governing Law; Venue; Headings.  This Agreement  shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. I agree that any claim or dispute I may have against the Corporation must be resolved in the Business Litigation Session of the Massachusetts Superior Court, Suffolk County, located in the Commonwealth of Massachusetts. 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.Tolling.  In the event I violate one of the time-limited restrictions in Sections 3 and 4 of this Agreement, I agree that the time period for such violated restriction shall be extended by one day for each day I have violated the restriction, up to a maximum extension equal to the length of the original period of the restricted covenant.  
21.Advice of Counsel. I acknowledge that I have been advised to and have been given the opportunity to consult with legal counsel for the purposes of reviewing this Agreement, including the noncompetition and non-solicitation covenants contained herein.
IN WITNESS WHEREOF, the undersigned has executed this Agreement as a sealed instrument as of the date set forth below.
												
	/s/    ALAN LOTVIN		/s/    LISA BISACCIA
			Lisa Bisaccia
    Chief Human Resources Officer
CVS Pharmacy, Inc.
	XXXXXXX		
	Employee ID		
			
			
	Date:	9/29/20		

          

                                                                         

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EXHIBIT A

List of Prior Inventions – See Section 6

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EXHIBIT B

Notice Regarding Invention Assignment

1.      For an employee residing in Illinois, Kansas, or North Carolina, you are hereby advised:

    Notice. No provision in this Agreement requires you to assign any of your rights to an invention for which no equipment, supplies, facility, or trade secret information of the Corporation was used and which was developed entirely on your own time, unless (a) the invention relates (i) to the business of the Corporation or (ii) to the Corporation’s actual or demonstrably anticipated research or development, or (b) the invention results from any work performed by you for the Corporation.  Illinois 765ILCS1060/1-3, “Employees Patent Act”; Kansas Statutes Section 44-130; North Carolina General Statutes Article 10A, Chapter  66, Commerce and Business, Section 66-57.1.

 2.    For an employee residing in Utah, you are hereby advised:

    Notice.  No provision in this Agreement requires you to assign any of your rights to an invention which was created entirely on your own time, and which is not (a) conceived, developed, reduced to practice, or created by you (i) within the scope of your employment with the Corporation, (ii) on the Corporation’s time, or (iii) with the aid, assistance, or use of any of the Corporation’s property, equipment, facilities, supplies, resources, or patents, trade secrets, know-how, technology, confidential information, ideas, copy rights, trademarks and service marks and any and all rights, applications and registrations relating to them, (b) the results of any work, services, or duties performed by you for the Corporation, (c) related to the industry or trade of the Corporation, or (d) related to the current or demonstrably anticipated business, research, or development of the Corporation.  Utah Code Sections 34-39-1 through 34-39-3, “Employee Inventions Act.”

3.    For an employee residing in Minnesota, you are hereby advised:

    Notice.  No provision in this Agreement requires you to assign any of your rights to an invention for which no equipment, supplies, facility, or trade secret information of the Corporation was used, and which was developed entirely on your own time, and (a) which does not relate (i) directly to the business of the Corporation, or (ii) to the Corporation’s actual or demonstrably anticipated research  or development, or (b) which does not result from any work performed by you for the Corporation.  Minnesota Statutes 13A Section 181.78.

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Exhibit 10.2

			
	

CVS CAREMARK CORPORATION
Change in Control Agreement for
Alan Lotvin
			
	

CONFIDENTIAL    Revised September 2012

    

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

    

This Change in Control Agreement ("Agreement") is made and entered into as of                 October 15, 2012, between CVS Pharmacy, Inc. ("CVS") and Alan Lotvin (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 Executive’s 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 the 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.
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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 of 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). 
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).
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(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 materially inconsistent with Executive’s status as a member of the senior management of CVS Caremark;
ii.a material 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 material 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.
In all cases, no Constructive Termination Without Cause shall be deemed to have occurred unless (a) the Executive provides written notice to the Company that an event described in subsections i. through iv. has occurred, and such notice identifies such event and is     provided within 30 days of the initital occurrence of such event, (b) a cure period of 45 days following the Company’s receipt of such notice expires and the Company has not cured     such event within such cure period and (c) the Executive actually terminates his/her employment within 30 days of the expiration of the cure period.
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.

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m."Subsidiary" shall have the meaning set forth in Section 4 below.
n."Term" shall have the meaning set forth in Section 2 below.
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       Executive to be unable to perform the duties of Executive’s 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.
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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, in each case 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, prorated 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 Executive’s 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  the most recently established target    annual incentive cash bonus amount, plus  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);
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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.    Change in Control Best Payments Determination.  In the event the Severance Benefits described in Section 3(a) are payable to Executive in connection with a Change in Control and, if paid, could subject Executive to an excise tax under Section 4999 of the Internal Revenue Code (the “Excise Tax”), then notwithstanding the provisions of Section 3(a) the Company shall reduce the Severance Benefits (the “Benefit Reduction”) under Section 3(a)   by the amount necessary to result in the Executive not being subject to the Excise Tax, if   such reduction would result in the Executive’s “Net After-Tax Amount” attributable to the Severance Benefits described in Section 3(a) being greater than it would be if no Benefit Reduction was effected.  For this purpose “Net After-Tax Amount” shall mean the net     amount of Severance Benefits Executive is entitled to receive under this Agreement after giving effect to all Federal, state and local taxes which would be applicable to such   payments, including, but not limited to, the Excise Tax.  The determination of whether any  such Benefit Reduction shall be effected shall be made by a nationally recognized public accounting firm selected by the Company (the “Accounting Firm”) prior to the occurrence of the Change in Control and such determination shall be binding on both Executive and the Company.  In the event it is determined that a Benefit Reduction is required, such reduction   of items described in Section 3(a) above shall be done first by reducing cash severance determined in accordance with Section 3(a)(ii), 3(a)(iii) and 3(a)(iv); to the extent a further Benefit Reduction is necessary, then Severance Benefits will be reduced from the amounts determined in accordance with Section 3(a)(v) and 3(a)(vi), all as determined by the Accounting Firm.
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.
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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 12(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 15 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 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 Executive’s 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 Executive’s immediate family, Executive’s 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   
7

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.

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     
8

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 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 Executive’s rights to compensation and benefits, which may be transferred only by will or operation of law, except as provided in Section 15 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.

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12.    Amendment or Waiver; 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 of 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).
13.    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 shall     be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.
14.    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.
15.    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 Executive’s incompetence, references in this Agreement to Executive     shall be deemed, where appropriate, to refer to Executive’s beneficiary, estate or other legal representative.
16.    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 he/she may now or hereafter have to such jurisdiction and any defense of inconvenient forum.
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17.    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 written notice of:
If to CVS:
CVS Pharmacy, Inc.
One CVS Drive
Woonsocket, RI 02895
Attention: Corporate Secretary

If to Executive:
Alan Lotvin
XXXXXXXXXX 
XXXXXXXXXX 

18.    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.
19.    Counterparts.

This Agreement may be executed in two or more counterparts.

In WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above.
												
		CVS Pharmacy, Inc.
		By:	/s/    Lisa G. Bisaccia
			Name:	Lisa G. Bisaccia
			Title:	Senior Vice President and
				Chief Human Resources Officer

						
		Executive
		/s/    Alan Lotvin
		Alan Lotvin
		Executive Vice President, Specialty, PBM

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